Northwest has lost billions of dollars since 9/11, and is currently under bankruptcy protection - yet they have the money to do this?
http://www.twincities.com/mld/twincities/b...ss/15997834.htm
Bankrupt Northwest Airlines, seeking to refresh its image, is looking to make over the navy blue uniforms worn by its flight attendants, ticket agents and other employees for the past 14 years.
Northwest would be the latest airline to glide down the fashion runway. Other carriers, including Air Canada, Air France and Delta Air Lines, have given employees — and other parts of their businesses — a new look in recent years following a merger, restructuring or other major event.
These makeovers come as carriers are just beginning to turn an operating profit but continue to wrestle with high fuel costs and ticket prices that, while higher than a year ago, remain below the average prices at the beginning of the decade.
While cutting costs has ruled the industry for the past several years — they've tossed meals, pillows and even magazines off planes — airlines are focusing on restoring some of flying's allure with plusher seats, enhanced entertainment systems and faster aircraft. They're also recalling workers laid off years ago and gradually adding flights to slimmed-down schedules.
The uniform makeover at Northwest comes as the employees who will wear them cope with a legacy of recent lean times: smaller paychecks, more-demanding work schedules and a bleaker retirement outlook.
"It's very silly at this point to be spending money on uniforms when the company is in bankruptcy," said Jeff Musto, a flight attendant at Northwest for 28 years. "No one's complaining about the old uniforms. They're very comfortable, very functional."
The Eagan-based airline is looking at uniform changes for thousands of employees who deal directly with customers, according to the two unions that separately represent flight attendants and ground workers. Northwest plans to start phasing out the old look next fall before launching the new one, according to a survey sent to flight attendants and obtained by the Pioneer Press.
"As part of our continued restructuring efforts, we are committed to enhancing our corporate image," the company survey says. "You may wonder why we would elect to pursue new uniforms in our current financial environment. While we need to be very prudent about how we invest in our corporation, reinvesting in our product and people are top priorities."
Northwest spokesman Roman Blahoski confirmed that the airline is "exploring a new uniform as a normal course of uniform replacement," but wouldn't provide details. He also declined to estimate a price tag for the project.
Other airlines have spent tens of millions of dollars on image and uniform overhauls, with some even hiring famous fashion designers to help them. Perhaps the most extravagant example came last year from Air France, which spent about $25 million and hired Parisian couturier Christian Lacroix to design some 100 uniform pieces, such as dresses, scarves and a parka, for 36,000 employees. Air France wanted to replace some items that were designed 19 years ago and celebrate its position as a top international airline, said spokeswoman Kristen Loughman.
"It makes everyone feel like they're part of a new enterprise," said John Pincavage, an aviation consultant in Westport, Conn. Uniforms typically are last in a corporate makeover after repainting planes, revamping airport ticket and gate areas and upgrading aircraft interiors, he said.
Northwest gave its planes a new look three years ago, with a simplified logo and a new paint job — its previous look had been compared to a bowling shoe — and it has been adding new planes and updating seats. Its uniforms, the airline said in the employee survey, are outdated and expensive.
Northwest, which has been in bankruptcy reorganization for more than a year, plans to shave $2.2 billion off its annual operating costs, with more than half of that coming from labor concessions. The nation's fifth-largest airline posted a net loss of $2.6 billion for the first nine months of 2006, though it posted operating profits during that period. The airline plans to emerge from bankruptcy protection by mid-2007.
The union for Northwest's 9,000 flight attendants opposes new uniforms as an imprudent use of money during bankruptcy.
"I realize that it's important for a company to come up with an image to sell but I think you could come up with an image by having your front-line employees be happy," said Ricky Thornton, a spokesman for the flight attendants' union at Northwest. "Personally, I'd rather just wear the thing and keep the money in my pocket."
Some flight attendants questioned Northwest's timing.
"This is not a good time," said Lisa Caldecott Gilbertson, a resident of Stillwater and a flight attendant at Northwest for 21 years. "Northwest needs to get their ducks in a row regarding bankruptcy. They need to get the flight attendants contract signed."
Northwest still is negotiating with the flight attendants' union on a new contract after imposing terms at the end of July. A judge has barred flight attendants from striking, a decision that's under appeal.
If Northwest were to switch to a new uniform, the company would pay for the new apparel, Blahoski said.
New flight attendants must buy their own basic uniform, which costs about $500, plus optional accessories such as a sweater. Northwest pays to replace the uniforms. Northwest has stopped paying for flight attendants' luggage and international laundry expenses under the contract imposed this summer.
For the International Association of Machinists, which represents about 14,000 ground workers at Northwest, many other issues outrank uniforms. The union's membership includes ticket and gate agents and baggage handlers. New ground workers buy their initial uniform, but Northwest pays for replacement items.
"Uniforms would be toward the bottom of the list in terms of gripes about spending money," said Stephen Gordon, district president of IAM's unit at Northwest. "The biggest question is why in bankruptcy are they spending money on new planes and new regional carriers."
This spring, Atlanta-based Delta Air Lines took some flak from flight attendants and other employees over new uniforms after cutting the pay of 20,000 workers by about 19 percent last year.
"Certainly, the question was posed about expenses versus cuts. But we had a great reaction," said Delta spokeswoman Betsy Talton. Delta believes that nice uniforms translate to better service and happier customers, which is proven by higher monthly company customer satisfaction results, she said. Talton declined to disclose those numbers.
In Northwest's case, it's seeking input from employees to help develop the new uniforms by forming committees at its union groups and surveying employees. Topics include their likes and dislikes about the current clothing and what style and fabric they'd most want in new outfits.
Here's my idea for the new uniforms - an orange jumpsuit with "PROPERTY OF NWA" and the person's employee number stenciled on it - since that's how NW management considers their union workforce nowadays.
http://www.twincities.com/mld/twincities/b...ss/15997834.htm
Bankrupt Northwest Airlines, seeking to refresh its image, is looking to make over the navy blue uniforms worn by its flight attendants, ticket agents and other employees for the past 14 years.
Northwest would be the latest airline to glide down the fashion runway. Other carriers, including Air Canada, Air France and Delta Air Lines, have given employees — and other parts of their businesses — a new look in recent years following a merger, restructuring or other major event.
These makeovers come as carriers are just beginning to turn an operating profit but continue to wrestle with high fuel costs and ticket prices that, while higher than a year ago, remain below the average prices at the beginning of the decade.
While cutting costs has ruled the industry for the past several years — they've tossed meals, pillows and even magazines off planes — airlines are focusing on restoring some of flying's allure with plusher seats, enhanced entertainment systems and faster aircraft. They're also recalling workers laid off years ago and gradually adding flights to slimmed-down schedules.
The uniform makeover at Northwest comes as the employees who will wear them cope with a legacy of recent lean times: smaller paychecks, more-demanding work schedules and a bleaker retirement outlook.
"It's very silly at this point to be spending money on uniforms when the company is in bankruptcy," said Jeff Musto, a flight attendant at Northwest for 28 years. "No one's complaining about the old uniforms. They're very comfortable, very functional."
The Eagan-based airline is looking at uniform changes for thousands of employees who deal directly with customers, according to the two unions that separately represent flight attendants and ground workers. Northwest plans to start phasing out the old look next fall before launching the new one, according to a survey sent to flight attendants and obtained by the Pioneer Press.
"As part of our continued restructuring efforts, we are committed to enhancing our corporate image," the company survey says. "You may wonder why we would elect to pursue new uniforms in our current financial environment. While we need to be very prudent about how we invest in our corporation, reinvesting in our product and people are top priorities."
Northwest spokesman Roman Blahoski confirmed that the airline is "exploring a new uniform as a normal course of uniform replacement," but wouldn't provide details. He also declined to estimate a price tag for the project.
Other airlines have spent tens of millions of dollars on image and uniform overhauls, with some even hiring famous fashion designers to help them. Perhaps the most extravagant example came last year from Air France, which spent about $25 million and hired Parisian couturier Christian Lacroix to design some 100 uniform pieces, such as dresses, scarves and a parka, for 36,000 employees. Air France wanted to replace some items that were designed 19 years ago and celebrate its position as a top international airline, said spokeswoman Kristen Loughman.
"It makes everyone feel like they're part of a new enterprise," said John Pincavage, an aviation consultant in Westport, Conn. Uniforms typically are last in a corporate makeover after repainting planes, revamping airport ticket and gate areas and upgrading aircraft interiors, he said.
Northwest gave its planes a new look three years ago, with a simplified logo and a new paint job — its previous look had been compared to a bowling shoe — and it has been adding new planes and updating seats. Its uniforms, the airline said in the employee survey, are outdated and expensive.
Northwest, which has been in bankruptcy reorganization for more than a year, plans to shave $2.2 billion off its annual operating costs, with more than half of that coming from labor concessions. The nation's fifth-largest airline posted a net loss of $2.6 billion for the first nine months of 2006, though it posted operating profits during that period. The airline plans to emerge from bankruptcy protection by mid-2007.
The union for Northwest's 9,000 flight attendants opposes new uniforms as an imprudent use of money during bankruptcy.
"I realize that it's important for a company to come up with an image to sell but I think you could come up with an image by having your front-line employees be happy," said Ricky Thornton, a spokesman for the flight attendants' union at Northwest. "Personally, I'd rather just wear the thing and keep the money in my pocket."
Some flight attendants questioned Northwest's timing.
"This is not a good time," said Lisa Caldecott Gilbertson, a resident of Stillwater and a flight attendant at Northwest for 21 years. "Northwest needs to get their ducks in a row regarding bankruptcy. They need to get the flight attendants contract signed."
Northwest still is negotiating with the flight attendants' union on a new contract after imposing terms at the end of July. A judge has barred flight attendants from striking, a decision that's under appeal.
If Northwest were to switch to a new uniform, the company would pay for the new apparel, Blahoski said.
New flight attendants must buy their own basic uniform, which costs about $500, plus optional accessories such as a sweater. Northwest pays to replace the uniforms. Northwest has stopped paying for flight attendants' luggage and international laundry expenses under the contract imposed this summer.
For the International Association of Machinists, which represents about 14,000 ground workers at Northwest, many other issues outrank uniforms. The union's membership includes ticket and gate agents and baggage handlers. New ground workers buy their initial uniform, but Northwest pays for replacement items.
"Uniforms would be toward the bottom of the list in terms of gripes about spending money," said Stephen Gordon, district president of IAM's unit at Northwest. "The biggest question is why in bankruptcy are they spending money on new planes and new regional carriers."
This spring, Atlanta-based Delta Air Lines took some flak from flight attendants and other employees over new uniforms after cutting the pay of 20,000 workers by about 19 percent last year.
"Certainly, the question was posed about expenses versus cuts. But we had a great reaction," said Delta spokeswoman Betsy Talton. Delta believes that nice uniforms translate to better service and happier customers, which is proven by higher monthly company customer satisfaction results, she said. Talton declined to disclose those numbers.
In Northwest's case, it's seeking input from employees to help develop the new uniforms by forming committees at its union groups and surveying employees. Topics include their likes and dislikes about the current clothing and what style and fabric they'd most want in new outfits.
Here's my idea for the new uniforms - an orange jumpsuit with "PROPERTY OF NWA" and the person's employee number stenciled on it - since that's how NW management considers their union workforce nowadays.
