NORTHWEST AIRLINES, INC.
and
AIRCRAFT MECHANICS FRATERNAL ASSOCIATION
STRIKE SETTLEMENT AGREEMENT
WHEREAS, Northwest Airlines, Inc. (“Companyâ€) and the Aircraft Mechanics Fraternal Association (“AMFAâ€) have agreed to submit terms and conditions of employment for a ratification vote by the AMFA membership, and;
WHEREAS, the parties have agreed that, should such terms and conditions be ratified and executed, thereby resulting in a new collective bargaining agreement covering technicians and related personnel (hereinafter, the “Agreementâ€), the strike will end;
THEREFORE, it is hereby agreed that the following terms, together with the Agreement will govern the continuing employment status of AMFA represented employees who were on strike:
“On Strike†to Layoff Status. Upon ratification of the terms and conditions of employment and execution of the same as the Agreement (hereinafter, the “DOSâ€), AMFA represented employees whose employment status had been “on strike,†including those employees who placed themselves on the preferred striker reinstatement list, will be placed off payroll on lay-off status, from the permanent positions they held at the time of the strike, without a right to exercise seniority for purposes of displacing any new hire permanent replacement employee or AMFA represented employees who made unconditional offers to return to work and were reinstated prior to DOS. Except as stated herein and in paragraph 2, below, employees placed off payroll on layoff status will be subject to the terms and conditions of the Agreement. Individual layoff notices will be mailed to such employees at their addresses of record with Corporate Human Resources Department. Such employees will be entitled to layoff pay pursuant to paragraph 2, below. AMFA represented employees who on DOS are already off payroll on layoff status will remain in such status and will not be entitled to any layoff pay pursuant to this strike settlement agreement (hereinafter, the “Settlementâ€). The status of former AMFA represented employees who have been discharged or who terminated employment through death, resignation, retirement, or other means prior to DOS, will not change as a result of this Settlement.
Layoff Pay. Notwithstanding any provision of Article 22 of the Agreement to the contrary, employees whose status was converted from “on strike†to off payroll on layoff pursuant to paragraph 1, above, will be entitled to four (4) weeks of layoff pay calculated at the base rates of pay set forth in Schedule A of the Agreement. Such employees will also be entitled to payment of any accrued vacation at the base rates of pay set forth in Schedule A plus the applicable number of license premiums each employee had been receiving at the time of the strike at rates set forth on page A.3 of the Agreement. AMFA represented employees who on DOS are already off payroll on layoff status or who were discharged or who terminated employment through death, resignation, retirement, or other means prior to DOS will not be entitled to any such layoff pay.
Right of Recall. AMFA represented employees whose status is converted from “on strike†to off payroll on layoff pursuant to paragraph 1, above, will be deemed to have a right of recall to the permanent positions from which laid off, without filing a Request for Recall for the calendar year 2006. Thereafter, such employees will be subject to all of the terms of the Agreement concerning renewal of such right, seniority, and all other re-employment rights. Such employees will also be eligible to file system bids based upon their established and retained classification seniority.
Preferred Striker Reinstatement List and Future Vacancies. On DOS, the list of striking employees who have offered unconditional acceptance of the implemented terms and conditions during the strike but who had not yet been reinstated to an open available position on DOS will be extinguished as a result of this settlement. Future vacancies will be filled subject to the terms and conditions of the Agreement.
No Contest of Unemployment Compensation Claims. Following ratification and execution of the Agreement, the Company agrees that it will immediately withdraw any pending appeals as to any strike related unemployment claims filed by AMFA represented employees and will not thereafter contest payment of unemployment compensation benefits to any AMFA represented employee whose status is converted from “on strike†to off payroll on layoff status.
No Displacement Of Permanent Replacement Employees Or Crossover Employees. New hire permanent replacement employees and AMFA represented employees who made unconditional offers to return to work and were reinstated prior to DOS will not be displaced in order to create vacancies for striking employees converted to off payroll layoff status, nor will they be displaced under this strike settlement agreement consistent with paragraph 1, above.
No Retribution, Retaliation, or Harassment Due To Participation Or Non-Participation In The Strike Or Permanent Replacement Status. The Company and AMFA agree that: (a) neither party shall, in any manner, punish or discipline any person for his/her decision to participate or not to participate in the strike which commenced on August 20, 2005, provided, however, that neither the filing of an internal complaint or charge pursuant to the AMFA Constitution, nor the expulsion of a member by AMFA as a result of such complaint or charge, will, standing alone, be considered a violation of this provision; (B) there shall be no fines, harassment, recriminations, sanctions, actions, reprisals, grievances, threats, or other manifestations of hostility by either the AMFA or any of its agents, members or employees represented by AMFA, or by the Company or its supervisors or agents against any person as a result of such person working or not working for the Company, during the period 11:01 p.m., CDT, August 20, 2005, and 12:01 am CDT on the day following ratification of an AMFA collective bargaining agreement. This paragraph 7 shall not prohibit present or future prosecution of criminal actions and/or present or future Company discipline against individuals for violence against persons or damage to property, misconduct or other good cause. It is expressly agreed that any such actions prohibited by this paragraph 7 shall be treated as exceptionally serious misconduct and grounds for immediate discharge, without further warning, subject to the normal grievance and arbitration provisions of the Agreement.
Ratification Period. This Settlement is contingent upon the ratification vote on the Agreement being completed and tallied no later than December __, 2005. In the absence of such ratification, this Settlement shall be null and void and of no further force or effect.
Bankruptcy Proceedings. Notwithstanding the execution and delivery of the Agreement by Northwest or any other provision or condition set forth in the Agreement, (a) Northwest, as debtor in possession, is not assuming any liabilities or obligations under any prior agreement or any claims which otherwise may be alleged to have arisen against Northwest at any time prior to the execution of the Agreement; (B) any obligations of Northwest under the Agreement shall not constitute costs and expense of its pending Chapter 11 case and are limited by the terms of the order with respect to wages and benefits entered by the Bankruptcy Court having jurisdiction of Northwest's pending chapter 11 case on September 14, 2005 ; and © Northwest continues to have all of its rights to seek rejection and modification of the terms and conditions of the Agreement under sections 1113 and 1114 of the Bankruptcy Code or otherwise, on the same basis as if the Agreement had been executed and delivered by the parties prior to the commencement of Northwest's chapter 11 case on September 14, 2005.
Signed on this ___ day of December, 2005.
For the Company: For the Aircraft Mechanics Fraternal Association:
___________________________ _____________________________
Julie H. Showers Jim Young
Vice President Labor Relations Region 2 Director