- Jul 26, 2004
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NWA seeks ground worker pay cuts
Thursday September 29, 12:06 am ET
Northwest Airlines is asking for $190 million in annual cost cuts from ground workers.
Affected are baggage handlers, clerks, reservation agents and other ground workers represented by the International Association of Machinists and Aerospace Workers. Northwest had previously sought $107 million in cuts. Now it proposes to lay off many of them permanently, outsourcing their work to contractors, and cut pay for some of them by more than 12 percent.
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Minneapolis-based Northwest (Pink Sheets: NWACQ - News) said Wednesday it will ask the bankruptcy court to impose givebacks if workers don't grant them.
(IAM is commonly described as a mechanics' union but it no longer represents the actual mechanics at Northwest. They quit the IAM and joined the Aircraft Mechanics Fraternal Association, which took them out on strike last month over Northwest demands to lay off half of them and cut pay for the rest about about 25 percent.)
In other news, bankrupt Northwest has sent a much smaller payment to one of its feeder carriers than that airline had been expecting. Northwest had missed a $19 million payment to the parent company of Mesaba Airlines altogther. This week it has made a payment, but it is only a fraction of what was due. The payment of less than $2 million appears to represent two days of service, the small part of the payment period that falls within the bankruptcy.
Published September 28, 2005 by Pacific Business News
This can't be good.
Thursday September 29, 12:06 am ET
Northwest Airlines is asking for $190 million in annual cost cuts from ground workers.
Affected are baggage handlers, clerks, reservation agents and other ground workers represented by the International Association of Machinists and Aerospace Workers. Northwest had previously sought $107 million in cuts. Now it proposes to lay off many of them permanently, outsourcing their work to contractors, and cut pay for some of them by more than 12 percent.
ADVERTISEMENT
Minneapolis-based Northwest (Pink Sheets: NWACQ - News) said Wednesday it will ask the bankruptcy court to impose givebacks if workers don't grant them.
(IAM is commonly described as a mechanics' union but it no longer represents the actual mechanics at Northwest. They quit the IAM and joined the Aircraft Mechanics Fraternal Association, which took them out on strike last month over Northwest demands to lay off half of them and cut pay for the rest about about 25 percent.)
In other news, bankrupt Northwest has sent a much smaller payment to one of its feeder carriers than that airline had been expecting. Northwest had missed a $19 million payment to the parent company of Mesaba Airlines altogther. This week it has made a payment, but it is only a fraction of what was due. The payment of less than $2 million appears to represent two days of service, the small part of the payment period that falls within the bankruptcy.
Published September 28, 2005 by Pacific Business News
This can't be good.
