Northwest reaches labor cost saving agreements with two unions
Northwest Airlines has reached wage cut packages with two unions representing its pilots and flight attendants, as part of its ongoing efforts to reduce its labor costs, Northwest Airlines.
The Air Lines Pilots Association (ALPA) agreed to temporary pay and other reductions of $215 million on an annualized basis, subject to membership ratification, while leaders of the Professional Flight Attendants Association agreed to cuts of $117 million.
Northwest said it has also reached tentative agreements on permanent wage and benefit reductions with employees represented by the Aircraft Technical Support Association and the Northwest Airlines Meteorology Association, and hopes to shortly reach an agreement with the Transport Workers Union of America.
The airline has filed a Section 1113(e) motion with the U.S. Bankruptcy Court seeking temporary wage and benefit reductions of $114 million from the International Association of Machinists and Aerospace Workers’ (IAM) union, after an interim agreement between the two parties could not be reached. Northwest has asked for a mid-November hearing date.
Northwest said it is continuing to negotiate a permanent cost reduction agreement with the IAM.
“All of our union leaders understand the need for labor cost reductions, and this interim agreement with ALPA and PFAA will provide additional time to reach final agreements, while providing Northwest Airlines with the immediate costs savings that it requires,” said Doug Steenland, Northwest’s president and chief executive officer.