Previous Story
NWA, union sign labor agreement
|
Posted on Nov 13 2005
Northwest Airlines announced Friday that the company had entered into its first compensation cut agreement with one of its seven labor unions, as part of the airline’s efforts to restructure costs through the bankruptcy process.
In a news statement, Northwest said that the membership of the Aircraft Technical Support Association has ratified a long-term labor cost restructuring agreement with the company.
According to Northwest, ATSA represents about 200 technical writers, trainers, and maintenance planners at Northwest.
The agreement includes a 9.9 percent wage reduction, profit sharing and benefit changes. It represents $2.25 million in annual labor cost savings for the airline and will be in effect until the conclusion of the fourth full calendar year after the airline emerges from its Chapter 11 re-organization.
Northwest is seeking to cut its labor costs by a total of $1.4 billion per year.
Northwest said the pay cuts would allow the air carrier to be more cost competitive with both low-cost carriers and airlines that have restructured their costs through the bankruptcy process.
“The membership of ATSA made an important investment in building a more competitive Northwest Airlines,” said Julie Showers, vice president of labor relations. “We appreciate the hard work and commitment that ATSA leadership showed during the negotiating process and are pleased to have reached a consensual agreement that moves us closer toward achieving our labor cost savings goal.”
Earlier, Northwest also announced reaching tentative agreements with the Transport Workers Union of America, Air Lines Pilots Association, Professional Flight Attendants Association, and the Northwest Airlines Meteorology Association. (Agnes E. Donato)
