Nwa Looks To Send More Of Its Repairs Out

Checking it Out

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Apr 3, 2003
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NWA looks to send more of its repairs out

BY MARTIN J. MOYLAN

Pioneer Press



Northwest Airlines is bumping up against its spending cap on aircraft maintenance work it can outsource. So the airline wants to negotiate authority to send more maintenance work to outside vendors in the U.S. and overseas, says the union representing the airline's mechanics.

It's a move that's part of the airline's plan to cut labor costs, one that includes additional layoffs, the union says.

The Eagan-based airline's existing contract with the mechanics union gives it the authority to spend 38 percent of its aircraft maintenance costs on outside vendors. Until the last year or so, restrictions on the layoffs of its own mechanics have kept Northwest from hitting that limit, keeping outside maintenance spending between 20 percent and 25 percent of total costs, the union says. It simply didn't make sense for Northwest to send work outside the company while still having to pay idle union mechanics.

But that has changed with Northwest's layoff of some 2,700 mechanics in the past three years, made possible by invoking the "force majeure" clause in the contract. The clause permits work force reductions in response to certain forces beyond the carrier's control, and Northwest cited the Sept. 11, 2001, terrorist attacks, the Iraq war and the SARS outbreak in Asia.

"Now, Northwest is saying it'll be at 37.9 percent (outsourced maintenance) for the year,'' said Jim Atkinson, president of Aircraft Mechanics Fraternal Association Local 33. "And they've told us they want to outsource 48 percent of maintenance and lay off another 1,000 mechanics."

Northwest won't comment on the union's account. The mechanics contract is amendable in May 2005. Contract talks could begin in October this year.

Northwest, as part of its push for $1 billion in wage and labor savings form its employees, has said it wants givebacks worth about $174 million a year from its mechanics.

The airline has lost more than $2 billion on its operations in the past three years, and currently is in contract talks with its pilots' and ground-workers' unions.

A
MFA has long questioned the quality of outsourced maintenance and expressed alarm about the security of U.S. planes maintained by foreign nationals.

"FAA (Federal Aviation Administration) oversight of outsourcing is minimal," said Atkinson.

But Northwest has deemed the outsourcing of aircraft maintenance a "competitive tool" in its drive to regain profitability.

The airline has insisted that while costs for outsourced maintenance are lower than for in-house maintenance, quality and safety are not compromised.

Northwest says its uses overseas maintenance facilities that are at least as secure as its U.S. maintenance bases.

Northwest primarily outsources work on its DC-10s, 747-200s and DC-9s. These older fleets have peaks and valleys in their major maintenance scheduling, the airline says.

"This peak-and-valley problem makes the economics of in-house maintenance unjustified,'' said Kris Bauer, vice president-aircraft maintenance, in the May 2003 issue of Passages, the airlines in-house newsletter. " …To be cost-competitive in a globally interdependent marketplace we need to outsource some of our maintenance."

As of last May, about half of Northwest's outsourced aircraft maintenance work was done in Asia, an area that accounts for about a fifth of Northwest's revenue.

The shifting of work to Asia is a real sore point with AMFA, which argues Northwest is exporting jobs that could stay in the U.S. and Minnesota.

"We are talking about a company that received millions in U.S. taxpayer dollars, only to take that money and provide jobs to Singapore and China,'' said Atkinson, who adds that an increasing amount of maintenance is going to Asia.


Why is it all we hear about with Amfa is Layoffs? Layoffs and more Layoffs!!!!!


At the TWU read the latest release!

TWUATD
 
Well lets see if AMFA gives up the company desired increase without further ratification.

It is one thing for a company to ask, it another when the union gives what they are asking for!

Why is it you try to make this appear as if it has already happened?

What would you do if AMFA agreed to the TWU pay and benefit scale without further ratification and ALL NWA Mechanics were returned to work? You be beating a drum about AMFA taking Concessions then, wouldn't you?
 
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Track Record of Amfa speaks for itself! We have all seen what happens when NWA just mentions layoffs!

Wasn't it 31 cleaners in Seatle last week?

on and on and on!!!!!!!!!!
 
The working man in this country has enough problems without having a company union like the twu setting the bar lower and lower on wages and benefits. It's supposed to be nonunion companies that are the bane of the industry.

In 1983 the twu created the B scale mechanic, then in 1985 the C scale, in 1995 they created the SRP or D scale mechanic. With each concessionary contract the twu sold to the membership other airlines had to become more innovative to reduce their costs whether it be in maintenance labor or in other areas to compete with AA.

On the maintenance end of it other airlines had to get their unions to give up concessions or outsource their work in order to reduce their costs.

So heres a question for anyone who cares to answer.
Where would outsourcing and overseas maintenance be if the twu had never created the cut rate , market rate , union/non union mechanic???

Isn't it about time to stop cutting our brothers throat and stand together as one? All these concessionary contracts over the years are coming back to haunt us and the only way to stop it is to unite in one union with all our energy focused on protecting our craft and class. We can't protect our profession if the companies we work for use us as a tool to give them a cost advantage over their competitors like the twu and AA have.

In Tulsa the twu acts as if they have some sort of bragging rights about the possibility of doing some of N/W Airlines maintenance. This is scab work and only a scab union would make a brag about the possibility of doing it. Whatever happened to proud unionism?
 
It is very interesting that instead of going out and organizing the third party vendors with vigor to raise their pay and benefit standards, the TWU just lowers the pay and benefit standards at the largest carrier in the world.

Then they brag that because AA has the lowest average wage scale in the industry amongst the majors, that we can now "get more work in-house" from the other airlines "who pay their mechanics" much more than AA.

What the hell kind of strategy and success is that?

I think this is why Bob Owens coined the phrase "TWU-ATD WalMarting Aricraft Maintenance"

I bet if AA Mechanics would work for min. wage and no benefits, we could put all the other carriers out of business, they would lay-off there over paid mechanics, we would then have ALL the work in-house and we could then re-call our own laid-off and hire all the other mechanics of the world at AA.

Job creation - work in-house, all that is needed to be a success under TWU unionization.

This type of leadership and vision is nothing more than union busting and profession destruction.
 
Let us pray...

Let us pray that CIO can answer my questions withoit ging off on a tangent...Pray tell CIO, why have all laid off Fleet Service Clerks been recalled and new ones hired off the street.... yet AMT's are still on lay off with rumors of more lay offs to come?...The TWU allows outsourcing from within with SRPs and OSMs...who benefits with reduced maintenance costs and increased dues revenues?
Put down the jug and wipe off the chew drivel off your chin and answer, CIO...
For all these things we pray...
B)
 
why outsource when twu/aa can do it cheaper inhouse? preserving jobs at any cost to its members? no its preserving DUES FLOW at any cost. soon under the leadership of the twu we will be able to undercut the sweat shops such as timco, dalfort, associated air, and any other third party hack shop. the next twu slogan "MORE CONCESSION'S, MEANS MORE JOBS".....at least you have a job brother!
 
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So what is your point?

Do you want a $9.25 an hour job with no benifits? Or a Union that stands tall to save your dignity and respect and receive a wage and benifits above the industry standard? Simple math to me!!!!

Layoff 1000 members= AMFA =$9.25 an hour plus no benifits

Keep 1000 members employed =TWU= $25.25 plus license plus benifits

No Brainer to me!!!!!!!!!!!!!!

The smart choice in Representation is the TWU!!!!!!!!!!!
 
local 12 proud said:
why outsource when twu/aa can do it cheaper inhouse? preserving jobs at any cost to its members? no its preserving DUES FLOW at any cost. soon under the leadership of the twu we will be able to undercut the sweat shops such as timco, dalfort, associated air, and any other third party hack shop. the next twu slogan "MORE CONCESSION'S, MEANS MORE JOBS".....at least you have a job brother!
I wonder why cio exspects AMFA to stop the outsourcing in one four year contract? Again cio, outsourcing was started when the IAM was representing mechanics at NWA. The IAM is the worthless industrail union the let the DC-10's and the 747's start going to Asia. Why don't you tell us why that is cio? If AMFA is so bad why haven't they been replaced with the twu?? Hmmmmm?

Unlike our contract, AMFA will never give a carrier a sell-out program like SRP/OSM. The twu has continuously LOWERED the bar for all mechanics. It is not something to be proud of. The twu cares about dues, and dues alone. The twu will do anything to keep sell-outs like cio in power.

Get ready cio, oil up those tools, you are going back to work very soon.


The twu is out the door in 04!!!!!!
 
Let us pray...

Let us pray for CIO...that among the double speak, lies and tangled webs of TWU deception he may regain what ever sanity he may have had...that he have the fortitude to look at the man in the mirror and admit the error of his cowardly, drunken punk TWU ways...that he realize that the "I got mine" mentallity so prevalent among TWU lackeys, is the core of his blindly following the darkness eminating out of 1700 Broadway, New York, NY 10019 and 1791 Hurstview Dr., Hurst, TX 76054...That he cease his persecution of the AMFA warriors who are trying to save our profession from the collution of corporate greed and industrial union incompetance...For these things we pray...day by day and kumbaya... B)
 
cio,

"Do you want a $9.25 an hour job with no benifits? Or a Union that stands tall to save your dignity and respect and receive a wage and benifits above the industry standard? Simple math to me!!!!"

I want to be paid fairly for my responsibilities. I want a union that stands tall to save OUR dignity and respect and receive a wage and benefits above the industry standard. The twu IS NOT that union. That is simple logic to me!!!!

cio, your posts continue to have no merit. First you and the twu say that AMFA Organizers will not get enough cards to file with the NMB. After we get enough cards you and the twu say that there will not be an election. Guess what? There will be an election. Why have the Tulsa Stewards been told to stop saying there will not be an election?

The twu smells fear... and it is their own!

GO AMFA! :D
 
Checking it Out said:
So what is your point?

Do you want a $9.25 an hour job with no benifits? Or a Union that stands tall to save your dignity and respect and receive a wage and benifits above the industry standard? Simple math to me!!!!

Layoff 1000 members= AMFA =$9.25 an hour plus no benifits

Keep 1000 members employed =TWU= $25.25 plus license plus benifits

No Brainer to me!!!!!!!!!!!!!!

The smart choice in Representation is the TWU!!!!!!!!!!!
Where do you come up with $9.25 an hour?

Is that the OSM starting rate after May 1st?

Dignity, where is the dignity of accomplishing your work when you know you are underpaid. You know CIO, lowest paid of the major airlines.

Are we supposed to trade benefits for wages?

Above whose standard? You proved on another thread that AMT's at AA are below average and did not even include the OSM classification.

averageindustry.gif



Where do you get $9.25 an hour and no benefits?

Again you misstate yourself, (you are a lier). Wages for AMT's at American are $25.25 plus license for some and OSM wages minus license for others.

You are correct about one thing, it is a no brainer for you, because you would have to have one first.

And possibly could you use a spellchecker?

Spell Checker
 
Checking it Out said:
So what is your point?

Do you want a $9.25 an hour job with no benifits? Or a Union that stands tall to save your dignity and respect and receive a wage and benifits above the industry standard? Simple math to me!!!!

Layoff 1000 members= AMFA =$9.25 an hour plus no benifits

Keep 1000 members employed =TWU= $25.25 plus license plus benifits

No Brainer to me!!!!!!!!!!!!!!

The smart choice in Representation is the TWU!!!!!!!!!!!
hhmmm!
1000 members laid off, 1000 x $60 = 720,000 per year loss in dues, ouch that hurts.

Oh!!! I get it now cio its union dues that are important. Thanks for helping me see the twu light and your point.

As far as the $9.00 an hour I'm assume your talking about unemployment benefits! I really doubt that these professionals your talking about are so destitute that their totally dependant on this as their only form of income. Most people work for cash on the side until they see their unemployment running short than get serious about finding a real job. You make it sound as if once a person gets laid off the world stops.

The point is the twu and AA have been setting a trend for the last 21 years of beating down mechanics wages and benefits to the point its spreading like a disease thats hurting the whole proffession.
 
If he is referring to unemployment benefits, he surely recalls that his members are on the street also. Does he not care for them?

And if it is unemployment benefits CIO refers to, then they are higher than the starting OSM rate. Nice negotiating job CIO.
 
This is Jim Atkinson, President of AMFA Local 33. Today is Monday, April 19, 2004.



The Saturday article in the Pioneer Press titled “ NWA looks to send more of its repairs outâ€￾ has lead to some confusion amongst our members. The main confusion seems to be based around the 1,000 additional job losses and the desire to increase the outsourcing cap to 48%. With all of the movement and layoffs that took place during 2003 it is hard to remember everything that happened last year. Back in April AMFA received the companies restructuring proposal, dated April 14, 2003. In this proposal Northwest asked us to increase the sub-contracting percentage for all groups, this included raising Tech Ops from 38% to 48%. Our total estimated average annual givebacks were to be $174 million; these savings assumed an additional 900 mechanics and 100 cleaners/custodians layoffs above and beyond the current layoffs at that time.



This was not current news but reconfirming what had been offered to our group last April. I apologize for the confusion, however I do not have the ability to oversee the editing of articles from the newspapers so at times it may lead to confusion. Feel free to contact me on any issues that may arise.



Thank you

Visit our website at www.amfa33.org.
 

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