NW Airlines Assure Employees Pay Cuts Will Pay Off
Jul 9, 2004 7:44 am US/Central
Eagan, Minn. (AP) Northwest Airlines assured employees that pay cuts will be worth the sacrifice as the airline makes investments to ensure that it survives the airline industry shakeout.
"Once we've achieved the final piece in this puzzle -- restructuring our labor costs -- we're positioned not only to survive, but to thrive," CEO Richard Anderson said in a newsletter posted on the employee Web site Thursday.
Northwest is trying to cut its annual labor costs by $950 million. United Airlines and US Airways, two competitors that slashed their labor costs in bankruptcy proceedings, are also weighing additional pay cuts.
The Eagan-based Northwest already has reduced its annual operating costs by $1.6 billion through several rounds of cutbacks that began in 2001.
Northwest and the pilots union hope to reach a cost-cutting deal by this fall.
In the newsletter, Northwest highlighted strategic investments that the company has made to strengthen the business, including adding new airplanes. Management also praised employees for the work they've done to improve the airline's operating performance, including on-time flight departures and baggage handling.
During the next decade, Northwest said it expects annual passenger growth of about 5 percent in the Asia market. It plans to add 25 gates at its Detroit hub, and it intends to feed new passengers into its route system by joining the SkyTeam global alliance in September.
"I appreciate the fact that they are pointing out all the good in the airline and focusing on the good of the employees," said Jeff Mathews, contract administrator for the Northwest mechanics union. "I'm looking forward to being a part of the process in the future that helps ensure Northwest Airlines' survivability."
Northwest's contract with the Aircraft Mechanics Fraternal Association comes open in May 2005.
Steve Dunn, an official with the International Association of Machinists and Aerospace Workers, said he doubted his members would react favorably.
"It's like a subliminal message that (says), 'We're going to do better in the future if employees are willing to take pay cuts or concessions,"' he said.
The IAM's contract came open in February 2003. Many IAM workers are upset that Northwest has not bought back stock that employees received in exchange for concessions a decade ago, Dunn said.
"I was there in '93 when we went through this. I thought they had it figured out then, and they didn't have it figured out," he said
Look at Amfa wanting to be part of the process! Now look at the IAM Doubt members would react favorably!
I can see more concessions coming up at NWA!!!!!
Jul 9, 2004 7:44 am US/Central
Eagan, Minn. (AP) Northwest Airlines assured employees that pay cuts will be worth the sacrifice as the airline makes investments to ensure that it survives the airline industry shakeout.
"Once we've achieved the final piece in this puzzle -- restructuring our labor costs -- we're positioned not only to survive, but to thrive," CEO Richard Anderson said in a newsletter posted on the employee Web site Thursday.
Northwest is trying to cut its annual labor costs by $950 million. United Airlines and US Airways, two competitors that slashed their labor costs in bankruptcy proceedings, are also weighing additional pay cuts.
The Eagan-based Northwest already has reduced its annual operating costs by $1.6 billion through several rounds of cutbacks that began in 2001.
Northwest and the pilots union hope to reach a cost-cutting deal by this fall.
In the newsletter, Northwest highlighted strategic investments that the company has made to strengthen the business, including adding new airplanes. Management also praised employees for the work they've done to improve the airline's operating performance, including on-time flight departures and baggage handling.
During the next decade, Northwest said it expects annual passenger growth of about 5 percent in the Asia market. It plans to add 25 gates at its Detroit hub, and it intends to feed new passengers into its route system by joining the SkyTeam global alliance in September.
"I appreciate the fact that they are pointing out all the good in the airline and focusing on the good of the employees," said Jeff Mathews, contract administrator for the Northwest mechanics union. "I'm looking forward to being a part of the process in the future that helps ensure Northwest Airlines' survivability."
Northwest's contract with the Aircraft Mechanics Fraternal Association comes open in May 2005.
Steve Dunn, an official with the International Association of Machinists and Aerospace Workers, said he doubted his members would react favorably.
"It's like a subliminal message that (says), 'We're going to do better in the future if employees are willing to take pay cuts or concessions,"' he said.
The IAM's contract came open in February 2003. Many IAM workers are upset that Northwest has not bought back stock that employees received in exchange for concessions a decade ago, Dunn said.
"I was there in '93 when we went through this. I thought they had it figured out then, and they didn't have it figured out," he said
Look at Amfa wanting to be part of the process! Now look at the IAM Doubt members would react favorably!
I can see more concessions coming up at NWA!!!!!
