NWA Ratifies TA
 

This is total bullsh!t :mad:


Press Release Source: Northwest Airlines


Northwest Airlines Pilots Ratify Agreement
Wednesday May 3, 12:50 pm ET


EAGAN, Minn., May 3 /PRNewswire-FirstCall/ -- Northwest Airlines Corporation (OTC: NWACQ - News) today announced that its pilots, represented by the Air Line Pilots Association International (ALPA), have agreed to a new contract with the carrier. Sixty-three percent of the pilots' voting ratified the agreement.
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(Logo: http://www.newscom.com/cgi-bin/prnh/20060421/NWALOGO )

"Our pilots have played an extraordinary leadership role in helping Northwest achieve the cost reductions necessary to restructure the airline successfully. They led the way with the December 2004 bridge agreement. With today's vote, our pilots and their families have made another significant sacrifice to help secure Northwest's future," said Doug Steenland, Northwest Airlines president and chief executive officer.

"ALPA's contract ratification is a major step in ensuring the long-term success of our airline. We look forward to continuing to work with ALPA's leaders as we reshape Northwest going forward. In particular, we will be working with our pilots to help secure expeditious passage of pension legislation that would secure the pensions that our pilots have earned and deserve," Steenland added.

To date, in addition to ALPA, Northwest has reached agreements on permanent wage and benefit reductions with the Aircraft Technical Support Association (ATSA), the Transport Workers Union of America (TWU), and the Northwest Airlines Meteorologists Association (NAMA). Also, the airline's International Association of Machinists and Aerospace Workers-represented customer service and reservations staff employees have ratified a new contract, providing for permanent wage and benefit reductions. In addition, two rounds of salaried and management employee pay and benefit cuts have been implemented and the needed aircraft maintenance employee labor cost savings have been achieved.

Since beginning its restructuring process in September of last year, Northwest has remained focused on its plan to realize $2.5 billion in annual business improvements in order to return the company to profitability on a sustained basis. The restructuring plan continues to be centered on three goals: resizing and optimization of the airline's fleet to better serve Northwest's markets; realizing competitive labor and non-labor costs; and restructuring and recapitalization of the airline's balance sheet.

Northwest Airlines is the world's fifth largest airline with hubs at Detroit, Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam, and approximately 1,200 daily departures. Northwest is a member of SkyTeam, an airline alliance that offers customers one of the world's most extensive global networks. Northwest and its travel partners serve more than 900 cities in excess of 160 countries on six continents.



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Source: Northwest Airlines

Sucker play?
 

When (and if) pension legislation is passed, it would be all too easy for management to say: "Aw, Gee! Congress didn't give us enough relief. We'll have to terminate the pensions after all. So Sorry." :rolleyes:

By what kind of margin did this loaf pass?

I read 63% in another article.

Look out Below !!!!

That's higher than I expected.

NWA TA details
 

Per http://www.nwaalpa.org/news/index.html:

"The new agreement retains the current 23.9 percent pay cut NWA pilots agreed to in November 2005 and provides NWA pilots with significant scope protections against the outsourcing of mainline flying to small jets. NWA pilots successfully retained all flying on 77-seat and higher aircraft while limiting the number of small jets to 55 (or 90 if placed at an affiliate) 51-76 seat aircraft. In addition, NWA pilots receive an $888 million unsecured claim in NWA and participate in profit sharing and success sharing once the company emerges from bankruptcy."

Can someone explain the pros/cons to each of these items? Which 77 seat aircraft are they currently flying that they have retained the right to continue flying? Isn't the DC9 the smallest that they fly? What effect would NWA acquiring 51-76 seat aircraft have on Pinnacle? Or is this actually a good thing (assuming Pinnacle being an "affiliate") for Pinnacle meaning more 51-76 seat aircraft could come their way? Enlighten me, please. I'm still getting used to all of this airline business.

This truly is a new low-point in Avaition. If the ferocious "Cobra's" can't hold the line, than who can.

Probably the most dismal day in the history of organized labor.

Does anyone have the new payscales for the 77-110 seaters. I know it horrible but I'm starting to like that kicked the balls feeling.

As dismal a day as this may be, the Delta line will follow in lockstep. Any payscale is better than no payscale. The bloom is off the rose, and the airline industry is finally falling back into reality...at least by comparative salaries with professions like teachers, cops, etc.