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Wed, Mar 01, 2006

Northwest Pilots OK Strike Before Contract Ruling; PFAA Reaches Deal

Gropper Says Will Rule "In Near Future"

ANN REALTIME UPDATE 03.01.06 1730EST: We're still awaiting word if Judge Allan Gropper will rule today on whether Northwest Airlines can toss aside its current contract with the airline's pilots in order to force concessions on them. However, it was just announced the Professional Flight Attendants Association (PFAA) has reached a pay-cut deal with the airline, that gives Northwest all of the $195 million in annual savings it had been seeking.

In exchange for the concessions, Northwest dropped its demand to use a greater number of non-US flight attendants on overseas flights -- which had been at the heart of the PFAA's arguments.

The agreement must now be accepted by union leaders, and then to a vote by the 9,700 members of the union.

"Certainly, Northwest management must comprehend the difficult situation this concessionary agreement puts our members in, and as such we hope that they recognize that now they must treat all employees with great respect in order to heal the damage the bankruptcy process has inflicted upon our carrier," PFAA President Guy Meek said in a prepared statement.

Before today, PFAA and the Northwest branch of the Air Line Pilots Association had presented a united front against Northwest, each vowing to strike if their demands were not met. On Tuesday, the pilot's union voted to authorize a strike if Judge Gropper ruled against them.

That ruling has yet to happen -- and at this writing, negotiations continue between pilots and airline management. Judge Gropper has stated he will rule "in the near future" on tossing the contracts out -- so now, we wait.

ORIGINAL REPORT

On Tuesday, pilots at bankrupt Northwest Airlines voted to authorize their union leaders to call a strike if a federal bankruptcy judge allows the airline to impose "onerous working conditions," in the words of the Air Line Pilots Association.

The vote came one day before Judge Allan Gropper is to rule whether to allow Northwest to toss its current contracts with its pilots and flight attendants, in the name of forcing concessions upon them the airline maintains it needs to emerge from Chapter 11.

That ruling is expected any moment now... unless Gropper decides to postpone his ruling, as he has done twice before.

In a move to put pressure on airline management, the strike was authorized by 92 percent of voting pilots.

"We continue to meet with Northwest management in an effort to reach a consensual agreement, but the outcome will be decided by management's actions at the negotiating table," Northwest ALPA Chairman Mark McClain said in a statement to Reuters. "Our goal is not to strike, but we will retain all legal self-help options if management forces our hand."

As was reported in Aero-News, Judge Gropper has twice delayed ruling on allowing the airline to impose concessions, preferring to give all parties involved time to work out their problems amicably.

At least one analyst expects the unions to reach deals with Northwest before the judge rules.

"They will reach a deal with management," said airline consultant Michael Boyd. "These are not wild-eyed, crazy people on either side. These are rational people."

Northwest is also in talks with its flight attendants on a new labor contract.

FMI: www.nwa.com, www.alpa.org, www.pfaa.com

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