CHICAGO, April 26 (Reuters) - Negotiators for the union representing Northwest Airlines Corp. (NWACQ.PK: Quote, Profile , Research) flight attendants have reached a tentative labor deal with the bankrupt carrier that could end a strike threat, the union said on Thursday.
The Association of Flight Attendants (AFA) said the deal achieves the requested $195 million a year savings target for the carrier but contains provisions more acceptable to the union, which previously rejected two tentative agreements.
The deal requires approval by AFA leaders before it can be sent to union members for a vote. Last July, the airline used court permission to void the workers' contract and impose concessions.
The AFA has threatened to strike against the No. 5 U.S. airline, which plans to exit bankruptcy by the end of June. But so far the union has been blocked by courts from striking.
A New York bankruptcy court earlier this month denied a motion by the AFA to change a ruling that allowed the airline to void their contract. The two parties have been in periodic labor talks for months.
The new tentative deal protects a $182 million bankruptcy claim that could yield about $15,000 to $18,000 per flight attendant, subject to market conditions, the AFA said.
Northwest has said it needs $1.4 billion a year in total labor savings to restructure.
The AFA argued that Northwest's improved financial performance since last summer invalidated the ruling allowing Northwest to impose pay cuts by voiding the previous contract.
© Reuters 2007. All Rights Reserved.
The Association of Flight Attendants (AFA) said the deal achieves the requested $195 million a year savings target for the carrier but contains provisions more acceptable to the union, which previously rejected two tentative agreements.
The deal requires approval by AFA leaders before it can be sent to union members for a vote. Last July, the airline used court permission to void the workers' contract and impose concessions.
The AFA has threatened to strike against the No. 5 U.S. airline, which plans to exit bankruptcy by the end of June. But so far the union has been blocked by courts from striking.
A New York bankruptcy court earlier this month denied a motion by the AFA to change a ruling that allowed the airline to void their contract. The two parties have been in periodic labor talks for months.
The new tentative deal protects a $182 million bankruptcy claim that could yield about $15,000 to $18,000 per flight attendant, subject to market conditions, the AFA said.
Northwest has said it needs $1.4 billion a year in total labor savings to restructure.
The AFA argued that Northwest's improved financial performance since last summer invalidated the ruling allowing Northwest to impose pay cuts by voiding the previous contract.
© Reuters 2007. All Rights Reserved.
~Abraham Lincoln
