Northwest Air: possible mechanics strike
Tuesday May 24, 12:28 pm ET
By Kyle Peterson
CHICAGO (Reuters) - The union negotiating a labor deal for mechanics at Northwest Airlines Corp. (NasdaqNM:NWAC - News) said on Tuesday that the carrier is seeking temporary mechanics to hire in event of a strike.
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The No. 4 U.S. airline, which is seeking a $1.1 billion in annual labor savings, told the union that it is bracing for a possible strike even though the Aircraft Mechanics Fraternal Association has issued no such threat, according to union representatives.
"The airline said they had alternative plans in case we couldn't get to an agreement," said AMFA President Ted Ludwig.
He said the Eagan, Minnesota-based airline has hired intermediaries to hunt for replacement workers to fill in for permanent employees in Minnesota and other locations in the upper U.S. Midwest.
AMFA and Northwest have been negotiating a labor deal that would save the airline $176 million annually. The AMFA contract became amendable on May 11, but talks have been in progress since late last year.
Northwest declined to confirm that it was lining up replacement labor, but in a statement alluded to contingency plans.
"Northwest's goal is to resolve labor negotiations through a voluntary consensual agreement," the carrier said. "In order to ensure smooth operations should those efforts fail, however, Northwest has developed contingency plans to be prepared for any eventuality."
AMFA reported on its Web site that Northwest has proposed firing 2,031, or nearly half of its mechanics, in a bid to win its needed labor savings. Northwest is one of several major airlines seeking cost savings to survive in an industry that has been battered by soaring fuel costs and weak revenues.
The airline has declined to comment on its recent proposal, but AMFA leaders have called the prospect devastating. Ludwig said the union has not yet responded to the proposal. Talks between the two parties were set to resume next week.
One airline expert said it would not be surprising if Northwest is lining up replacement mechanics.
"It's a recognition of the difficulty of locating and lining up the licensed personal," said airline consultant Robert Mann. He said finding aircraft mechanics on short notice could be difficult.
Shares of Northwest fell 15 cents, or 2.75 percent, to $5.31 in morning trade on Nasdaq.
Tuesday May 24, 12:28 pm ET
By Kyle Peterson
CHICAGO (Reuters) - The union negotiating a labor deal for mechanics at Northwest Airlines Corp. (NasdaqNM:NWAC - News) said on Tuesday that the carrier is seeking temporary mechanics to hire in event of a strike.
ADVERTISEMENT
The No. 4 U.S. airline, which is seeking a $1.1 billion in annual labor savings, told the union that it is bracing for a possible strike even though the Aircraft Mechanics Fraternal Association has issued no such threat, according to union representatives.
"The airline said they had alternative plans in case we couldn't get to an agreement," said AMFA President Ted Ludwig.
He said the Eagan, Minnesota-based airline has hired intermediaries to hunt for replacement workers to fill in for permanent employees in Minnesota and other locations in the upper U.S. Midwest.
AMFA and Northwest have been negotiating a labor deal that would save the airline $176 million annually. The AMFA contract became amendable on May 11, but talks have been in progress since late last year.
Northwest declined to confirm that it was lining up replacement labor, but in a statement alluded to contingency plans.
"Northwest's goal is to resolve labor negotiations through a voluntary consensual agreement," the carrier said. "In order to ensure smooth operations should those efforts fail, however, Northwest has developed contingency plans to be prepared for any eventuality."
AMFA reported on its Web site that Northwest has proposed firing 2,031, or nearly half of its mechanics, in a bid to win its needed labor savings. Northwest is one of several major airlines seeking cost savings to survive in an industry that has been battered by soaring fuel costs and weak revenues.
The airline has declined to comment on its recent proposal, but AMFA leaders have called the prospect devastating. Ludwig said the union has not yet responded to the proposal. Talks between the two parties were set to resume next week.
One airline expert said it would not be surprising if Northwest is lining up replacement mechanics.
"It's a recognition of the difficulty of locating and lining up the licensed personal," said airline consultant Robert Mann. He said finding aircraft mechanics on short notice could be difficult.
Shares of Northwest fell 15 cents, or 2.75 percent, to $5.31 in morning trade on Nasdaq.
