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Tue, Aug 16, 2005

NWA And Mechanics: Still Talking...

But Union Remains Concerned About Maintaining Schedule During Strike

Last-ditch negotiations between Northwest Airlines (Nasdaq:NWAC) and the Aircraft Mechanics Fraternal Association (AMFA) began today amid the carrier's stated concerns about maintaining its flight schedule during a strike that looms on August 20.

Northwest has publicly stated that its plan to use replacement mechanics and additional outsourcing will keep the airline running smoothly, but the company's quarterly financial report issued on August 9 said "there can be no assurances" Northwest will be able "to continue operating a full schedule in the event of a strike."

Last week, the Saint Paul Pioneer Press reported that an internal Northwest document dated June 28 conceded "there is inherent risk in the plan due to its scope and complexity."

"A strike is only five days away now. For the sake of the flying public and the company we helped build, we hope Northwest will finally take the negotiating process seriously and stop proposing terms the airline knows have zero chance of being approved by our members," said AMFA National Leader O.V. Delle-Femine.

"Through five months of negotiations, Northwest has refused to abandon its initial proposal that would require AMFA members to approve a contract in which 53 percent of them would lose their jobs. Remaining employees would receive pay cuts of 25-26 percent, and there would be no job security for the positions," according to Delle-Femine. Northwest dismissed AMFA's earlier offer of 16.1 percent pay cuts and other concessions, but to date the airline has not presented a comprehensive counter-proposal.

A strike by AMFA mechanics, cleaners and custodians could begin at any point after 12:01 a.m. Eastern time on August 20, 2005. In July, an overwhelming 92.4 percent of its Northwest members voted to authorize Delle-Femine to call a strike.

FMI: www.amfanatl.org

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