Mon, Oct 09, 2006
Northwest Airlines
tells ANN that it has reached a tentative agreement with the
Aircraft Mechanics Fraternal Association (AMFA) to end an ongoing
labor dispute with the airline's technicians. A membership
ratification vote will be conducted during the next 30 days.
The agreement, in part, provides striking employees with the
option of accepting layoff status and receiving one week of layoff
pay per year of service, up to a maximum of five weeks, or
employees may leave Northwest and receive one week of separation
pay per year of service, up to a maximum of ten weeks.
Employees accepting layoff will be entitled to remain on
furlough status for two years from the signing date of the
agreement.
The positions of current Northwest technicians will not be
affected by the proposed agreement. Striking employees who accept
layoff status may bid on open technician positions. The agreement
maintains the necessary $203 million in annual labor costs savings
from AMFA-represented employees.
Northwest said that if
the agreement was ratified by AMFA members, the airline would
withdraw appeals of state unemployment compensation determinations,
thereby ensuring that members now receiving benefits would not be
subject to having those benefits recouped should Northwest's appeal
be successful.
Northwest has reached agreements on permanent wage and benefit
reduction agreements with the Air Line Pilots Association (ALPA),
the International Association of Machinists and Aerospace Workers
(IAM), Aircraft Technical Support Association (ATSA), the Transport
Workers Union of America (TWU), and the Northwest Airlines
Meteorologists Association (NAMA). Two rounds of salaried and
management employee pay and benefit cuts have also been instituted
and the needed flight attendant labor cost savings have been
implemented, allowing Northwest to meet its goal of achieving $1.4
billion in annual labor savings.
Since beginning its restructuring process in September of last
year, Northwest has remained focused on its plan to realize $2.5
billion in annual business improvements in order to return the
company to profitability on a sustained basis. The restructuring
plan continues to be centered on three goals: resizing and
optimization of the airline's fleet to better serve Northwest's
markets; realizing competitive labor and non-labor costs; and
restructuring and recapitalization of the airline's balance
sheet.
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