Northwest workers To vote on contract
Jan. 15, 2006
The union representing about 14,000 ground workers at bankrupt Northwest Airlines said on Saturday that it would let members vote on a settlement proposal that could eliminate the need for the airline to void the workers' contract as it seeks savings.
The International Association of Machinists said it has found some common ground with the airline, which requires USD$190.4 million in concessions from the workers.
"Our negotiators were able to convince Northwest to move off of some of their initial proposals," said IAM District 143 President Bobby DePace. "Many of our ideas are contained in the company's settlement proposal."
Northwest has secured temporary savings from its ground workers, pilots and flight attendants but says it needs USD$2.5 billion in permanent annual savings to emerge from bankruptcy.
If the airline cannot reach deals with its workers by Tuesday, Northwest plans to renew an earlier request that the judge let the carrier void its collective bargaining deals and impose new contracts that yield the needed savings. A trial on the matter is set to begin on Tuesday.
IAM said it will ask the court to postpone its portion of that trial until the ratification vote is complete.
Northwest is still in contract negotiations with its pilots and flight attendant unions.
The carrier filed for bankruptcy protection in September, battered by high fuel and labor costs. Northwest has achieved USD$203 million in savings from its mechanics after the workers went on strike last year. Northwest used the opportunity to replace those employees with cheaper labor.