NWA continues to operate during AMFA strike

Labor Update from nwa.com :

http://www.nwa.com/features/laborupdate/index.html .

Northwest continues to operate its early-fall flight schedule despite a strike by the Aircraft Mechanics Fraternal Association. The airline has implemented its comprehensive operating plan involving the use of experienced, licensed mechanics who are trained and prepared to safely and professionally maintain aircraft, according to Federal Aviation Administration regulations.

On Tuesday, August 23, 99.5% of all NWA passengers confirmed on the airline's domestic and international flights completed their travel to their final destination. Those who did not complete travel that day were able to be reaccommodated on Wednesday.

We will follow our existing policy of accommodating customers in the event of flight disruptions. Examples include the rebooking of passengers to other Northwest flights, waiving of fare rules, allowing the refund of non-refundable tickets, and in some cases, re-booking passengers on other airlines' flights.

Northwest customers may check flight status, reconfirm travel plans and provide their telephone number, cell phone number or email address so that we can contact them in the event of a change in travel plans. Visit the airline's web site, www.nwa.com or call the NWA flight information line at (800) 441-1818.

August 24, 2005

Northwest's mechanics facing uncertain future
In Indianapolis, some strikers look beyond the airline industry

By Daniel Lee
[email protected]

Dale Greaves of Indianapolis is tightening his household budget and searching for other jobs.

The striking Northwest Airlines mechanic paid off his credit cards and the loan on one of his cars in recent months as he prepared to walk the picket line and still provide for his wife and infant daughter.

http://www.indystar.com/apps/pbcs.dl...NESS/508240391

Potential for long strike emerges

Last update: August 25, 2005 at 12:29 AM

Liz Fedor and Joy Powell, Star Tribune


Northwest Airlines said Wednesday that it is prepared to use replacement mechanics "for an indefinite period of time," suggesting that it's willing to endure a long strike.

Meanwhile, the national director of the Aircraft Mechanics Fraternal Association (AMFA) agreed with that assessment in an interview with the Star Tribune.

http://startribune.com/stories/1778/5577900.html

^ Northwest Ground Workers Take Some Work
Updated: 8:03 p.m. ET Aug. 25, 2005

MINNEAPOLIS - Northwest Airlines Corp. will hand some of its aircraft cleaning work to ground workers, the workers' union said Thursday, :-: returning jobs that were lost to the mechanics in 1998.

:-: Northwest has followed through on its strike plan to give baggage handlers in Minneapolis and Detroit so-called "turn cleaning" _ the quick cleaning done between flights. Those ground workers already perform that work at other locations, said Bobby De Pace, President of District 143 of the International Association of Machinists.

His union represents Northwest baggage handlers, ticket agents and other ground workers. That union used to represent mechanics and airplane cleaners, too, before those workers bolted for their current union in 1998.

:-: The IAM also took over the task of pushing aircraft back from the gate, which used to be the mechanics' job before they struck. The IAM is also pushing to get back the more extensive overnight cleaning.

Northwest spokesman Kurt Ebenhoch said he had no comment on the cleaning issue.

AMFA Assistant National Director Steve MacFarlane said the IAM shouldn't get too attached to those cleaning jobs.

"Those used to be AMFA jobs, and of course now they want to make them IAM jobs. And six months from now they belong to nonunion replacement workers just like they're doing to mechanics and the flight attendants," MacFarlane predicted. "It's naive to think they can make a deal with Northwest Airlines."

Northwest mechanics and cleaners entered the sixth day of their strike on Thursday, and no new talks were scheduled.

:-: Eagan-based Northwest said its operations were normal on Thursday. Ebenhoch said the airline is prepared to operate "indefinitely" with its new maintenance system.

Also Thursday, lawyers for Northwest flight attendants said the airline has agreed to pay $64.7 million to settle a dispute over its failure to buy back stock granted to flight attendants for concessions in 1993.

The agreement obligated Northwest to buy the shares back in November 2003, but it said legal restrictions under Delaware law, where it is incorporated, prevented it from doing so. But a judge ruled in March that Northwest had to buy the shares. The settlement averts a trial that had been set to begin next month to determine how much Northwest would have to pay.

http://msnbc.msn.com/id/8381505/ .

Very interesting - recent developments - NW and IAM Union NOW working together during the AMFA Mechanics Union Srike! A good step I believe!!

TravelerJim

Gee, I'll bet the AMFA folks are just thrilled...

Isn't it heartening to see union brotherhood?

How is it that NW had $100 million to prepare for a strike? if they wanted $176 million from the mechanics union (AMFA)? Maybe if they had negotiated $76 million in pay cuts, they wouldn't have had to waste $100 million preparing. What a joke. And this is competent management????

After spending $100 million to gird for a strike by a union that has conceded millions in pay cuts, Northwest is using a mix of supervisors and nonunion mechanics to see if the brave new era of airline economics permits it to fly without its loyal workforce.
http://www.startribune.com/stories/1778/5575700.html

Management's "last, best offer" proposed job protection for 2,750 technicians. But top-scale mechanics' pay would fall from $36.14 an hour to $27.17 per hour. That's a drop from $75,171 in annual pay for the most experienced mechanics to $56,513. ...
Mathews revealed Tuesday that "we offered a 16.8 percent cut off of the base pay." But Northwest rejected AMFA's concessionary proposals because the company did not view them as achieving $176 million in permanent cuts.
http://www.startribune.com/stories/1778/5575864.html

I believe it was $176M annually in concessions they were seeking.

channa is correct. If you were offered the chance to be paid $176 every year forever in return for $100 forked over today, would you accept? This is not a trick question.

That's the problem Lex...it is a trick question for some people.

Not quite the same scenario, but companies take a similar approach frequently with packages to entice people to "retire/leave". Pay someone 6-12 months of their salary to take the package. Short-term, you feel a bit of pain... longer-term, the financial obligation is gone.

We're talking over $1 billion savings in six years...yes, I would call that competent management..

The Star-Tribune article made it sound like it was a total concession, rather than annual. In any case, the contract only lasts until Jan 2010 (see http://www.amfa33.org/nwanegotiation...pdate%2027.pdf )

So that's almost $25 million per year of the contract that could have gone to the mechanics, rather than NW preparing for a strike. That's about 14% of what they're asking for in the $176 million of annual cuts. Had NW said upfront: Look, we can try to do this for $150 million of cuts because if we can avoid preparing for a strike, we'll save $100 million right there. They would have been a lot closer ($25 million) to a middle point than they are now - that 25 million represents over a 1/3 of the amount by which they differ. If each party had conceded another $25 million, they would have had an agreement.

Not factored in is the value of the bad will with the public that this strike will create for Northwest, nor the lost value in having a less loyal labor force (25% pay cuts is going to make any employee unhappy and unlikely to give 110% for the company). NW may get to pay mechanics a lot less, but some of that will be eaten up by lost productivity due to less experienced and less loyal employees.
I alone have not purchased 2 tickets on NW as a result of the strike. Depending on what happens in the next few weeks, I may decide that NW will not be the airline of choice for my travel.

I'd be extremely unhappy if I found out my employer was trying to cut my pay by 26%, and then found out the company was prepared to waste 14% annually of what I conceded.

With the salaries lowered, the new lower base would continue on beyond 2010, or at least be a new starting point for future negotiations. In other words, the $176M annual cut was more or less indefinite.

Further, there is a cost to cutting or striking staff. Whether it's a firing, a layoff or a strike, it costs money to get rid of people (severance packages if a layoff, hiring and training replacements, moving expenses for a closed facility, whatever the circumstance may be). Had NW not spent the $100M preparing for this strike, then when they did not reach an agreement (as just happened), they would be stuck either cancelling flights, shutting down the airline, or giving in to whatever the mechanics wanted.

Basically it cost NW $100M to "bust" the union. Yes, it's a gamble, and nobody knew if it would work or not, but so far it looks like it's working...

Well, let's see. $176mil saved anually over the span of let say 3 years. That's $528mil. To get that they had to spend $100 this year. So, for each $1 spent this year they will get $5.28 over the span of next 3 years.

I wish my savings account was this effective...

That is your union "brotherhood".

It is unfortunate that the economy evolves ever more quickly. Most folks have had to get used to the idea that their jobs are very likely to be temporary. We (GG & I) reinvent our business every five years or so -- otherwise, it would dry up.

The mechs would be much better positioned to preserve their jobs today if they had stayed allied to the "lesser breeds" seven years ago. Alas, they were "better", and cut the ties to their unskilled no-longer brethren.

We have lots of friends in publishing and bookselling. Many, many years ago the publishers and booksellers discovered that more than enough people LOVED working in those jobs that they could pay peanuts. Well, for really high level folks, macadamias. That is the way it is. You work at editing, you have another source of income or you live poor, but you love it.

Airlines have learned that enough folks LOVE working on airplanes that they don't hafta pay as much as car repair shops. So they won't any longer. The legacies are just longer catching up than the others. Catch any of those news stories interviewing the temps (aka "skabs")? Many talk about how great it is to get back to working airplanes. Sorry guys, that's the way it is.

If they had just stuck with their "brothers" seven years ago they might be saving their jobs today.