On a related (and unmentioned note in the article), Richard Anderson and Mickey Foret (CFO) continue to stress that labor cost reductions are essential for the long-term survival of NW...unfortunately, the profit posted throws some water on that fire.

So far, none of the unions are willing to agree to concessions and the mistrust between labor and management will make this a long-fought battle. I think the company primarily wants give-backs from the pilots, who were willing to forgoe a raise they were set for this month and agree to a pay-freeze for the next 24 months...the company balked and it may prove that a gross miscalculation was made...had the company at least considered the proposal, their savings might be significant. The IAM members (ramp, customer service, clerical and reservations agents) will receive a 2% lump sum "penalty" within the next 30 days due to a contract provision that states that if a new agreement had not been reached within 6 months of the amendable date, this penalty would be paid...at this point both sides are waiting for a federal mediator...they couldn't be farther apart on contract proposals. One thing is positive, morale is still fairly high.