Northwest asks court to cancel labor agreements

Northwest asks court to cancel labor agreements    Bankrupt Northwest Airlines Wednesday asked the U.S. Bankruptcy Court for the Southern District of New York to reject its existing labor agreements should the airline fail to reach new terms with its labor groups.
   The airline submitted a voluntary petition for reorganization last month and hopes to achieve $2.5 billion in overall savings by reducing its flight schedule and labor costs. The airline has previously announced it intends to lay off 1,400 flight attendants by January.
   “We must quickly reduce our labor costs by $1.4 billion annually. Our court motion gives union leaders and Northwest management time to reach the necessary agreements, before the court would be compelled to intervene and impose new contracts,” said Doug Steenland, Northwest’s president and chief executive officer.
   Northwest said salaried and management employees will take a second round of pay and benefit cuts soon.