Nwa Spend $107 Million On Scabs

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Jan 20, 2003
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WCCO) Minneapolis Northwest managers have been preparing for a strike by mechanics and flight attendants.

Now, we know how well. In a board of director's report obtained by WCCO, Northwest said it expects to spend $107 million to get ready for the August 19 strike date.

That includes money for extra plane parts, recruiting replacement workers and training them, too.

And, it's three times as much money as what it would take to cut a deal with mechanics for two years.

Northwest wants to cut $176 million per year. The union has offered to slash $143 million for each of the next two years.

"Quite a few employees at Northwest have always laughed about the issue that Northwest Airlines would fall over dollar bills just to pick up pennies and this is a pretty good example," said Guy Meek, union president for flight attendants.

Northwest's report also said it will move "...spare aircraft to cover potential maintenance inefficiencies" to accommodate customers and even "...focus on reduction of markets where bus transportation can be... an alternative."

That means customers could be taking a bus instead of a plane.

Northwest defends that plan saying, "we are looking at all options. In other cases...we have occasionally utilized surface transportation to get customers to their final destination."

But the airline said it will "...ensure proactive communication to customers and optimal re-accommodation."

"They've thrown down the gauntlet," airline analyst Terry Trippler said of the airline. "'We need to save $1.1 billion. This is the pilot's share and the pilot's are coming back with some more. This is the mechanic's share,' etcetera. And, there just isn't a lot of wiggle room."

Northwest did not dispute the figures in the report, but only said the company has spent $20 million already and won't disclose any more.

AMFA negotiators working on a mechanics deal declined to comment about whether they could have settled the dispute for less than $107 million.
 
That includes money for extra plane parts, recruiting replacement workers and training them, too.
And, it's three times as much money as what it would take to cut a deal with mechanics for two years.
Northwest wants to cut $176 million per year. The union has offered to slash $143 million for each of the next two years.


Northwest is not blowing this money. They might be gambling it but they honestly see it as an investment. They foresee themselves being a union free or as most of you like to say, a non-union company. This is their ultimate goal.
 
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