After new proposals, gap remains
08/18/2005
Liz Fedor, Greg Gordon and Terry Fiedler,
Star Tribune
August 18, 2005
Northwest Airlines and its mechanics union exchanged new cost-cutting proposals Wednesday, but the airline said the two sides remained far apart.
Steve MacFarlane, assistant national director of the Aircraft Mechanics Fraternal Association (AMFA), was skeptical of Northwest’s approach at the bargaining table Wednesday—two days before a strike deadline.
“Are they just going to stubbornly stand there with their arms crossed demanding that we accept their extreme proposal or are they going to negotiate?” MacFarlane said shortly after 10 p.m. Wednesday.
That was MacFarlane’s reaction to Northwest’s analysis of a new proposal AMFA offered late Wednesday.
The AMFA proposal, which Northwest did not describe, “appears to fall far short of the $176 million in annual cost savings that the company requires from AMFA,” Northwest spokesman Kurt Ebenhoch said. “Our preliminary estimate of the value of AMFA’s proposal is $100 million.”
MacFarlane said that AMFA negotiators made a good-faith offer several weeks ago to accept pay cuts of 16 percent but that Northwest deemed it insufficient. Now, he said, AMFA leaders once again demonstrated their willingness to accept some cutbacks.
But he questioned Northwest’s negotiating tactics. “It’s beyond belief that they would think that their opening position [of $176 million] could be their last position,” he said.
In Washington, D.C., Northwest offered a new economic proposal to AMFA on Wednesday morning. Jeff Mathews, AMFA spokesman and contract coordinator, did not provide details of the offer management made during a third day of talks at the National Mediation Board headquarters.
It’s unclear how it may have differed from the company’s proposal made in May, which included about a 25 percent pay cut and the elimination of about 2,000 jobs.
Northwest, attempting to avoid bankruptcy in the face of $11.8 billion in debts to lenders and underfunded pension plans, is seeking $1.1 billion a year in permanent pay and benefit concessions from all of its employees.
When Northwest put its proposal on the table, MacFarlane said, it appeared that management was “inching their way toward us.” But, he added, “With two days left, I really think they ought to put on their jumping shoes and make a leap.”
He said, “For us, it’s all about jobs. They have really fallen short of really meeting the needs that we have to get this deal done. I think that is cause for some pessimism.”
Also Wednesday, AMFA issued a report indicating Northwest said that “there was no viable way to retain ... [AMFA-covered] cleaners and custodians,” who number more than 800. Northwest laid out a severance proposal for those workers, but AMFA negotiators called it “grossly inferior” to one provided to the same employee group at bankrupt United Airlines.
If Northwest and AMFA fail to reach an agreement and a strike ensues after the Friday deadline, Northwest will be operating a smaller airline than passengers saw this summer.
Beginning Saturday, Northwest’s U.S. capacity will be 17 percent less than it was during its summer peak travel season. The company said Wednesday that it typically reduces its schedule by about 13 percent when the fall season begins.
This year, the smaller schedule is being phased in on the first day of a potential strike.
Mike Klemm, AMFA’s strike committee chairman, said Wednesday that Northwest management also has ensured that many Twin Cities mechanics will leave their shifts at 8 p.m. Friday, three hours ahead of the strike deadline.
“They don’t want any confrontations,” Klemm said. So mechanics on the second shift will leave Buildings B and C at 8 p.m., instead of finishing work between 10:30 and 11:30 p.m.
After the mechanics leave their shifts Friday night, Klemm said managers are expected to be on site in Buildings B and C. He said he’s been given assurances that replacement workers would not be brought in until after a strike deadline passes.