Posted on Thu, May. 19, 2005
Pilots urge other Northwest unions to take cuts
Associated Press
MINNEAPOLIS - In an effort to preserve jobs and save Northwest Airlines from potential bankruptcy, the head of the pilots union is urging other unions to accept cuts.
Last November, Northwest's pilots accepted a 15 percent pay cut, becoming the first of the airline's major labor groups to ratify a contract that reflects the company's financial situation.
Northwest airline lost $458 million during the first quarter and is attempting to reduce its annual labor costs by $1.1 billion.
"The time has come for all union leaders to move beyond denial and anger and act responsibly for the good of their members," said Mark McClain, chairman of the Northwest branch of the Air Line Pilots Association.
The pilots' new contract saves the Eagan-based airline $265 million a year, and Northwest has reduced the compensation of its salaried employees by $35 million a year.
"Northwest, just like the other major carriers, cannot avoid bankruptcy if it continues to lose money at the current rate. It's that simple," McClain said in a memo to Northwest pilots.
A Northwest spokesman declined Wednesday to comment on the pilots' memo. Andrea Fischer Newman, Northwest's senior vice president of government affairs, did not speculate on the potential for a bankruptcy filing.
Read it here.
Pilots urge other Northwest unions to take cuts
Associated Press
MINNEAPOLIS - In an effort to preserve jobs and save Northwest Airlines from potential bankruptcy, the head of the pilots union is urging other unions to accept cuts.
Last November, Northwest's pilots accepted a 15 percent pay cut, becoming the first of the airline's major labor groups to ratify a contract that reflects the company's financial situation.
Northwest airline lost $458 million during the first quarter and is attempting to reduce its annual labor costs by $1.1 billion.
"The time has come for all union leaders to move beyond denial and anger and act responsibly for the good of their members," said Mark McClain, chairman of the Northwest branch of the Air Line Pilots Association.
The pilots' new contract saves the Eagan-based airline $265 million a year, and Northwest has reduced the compensation of its salaried employees by $35 million a year.
"Northwest, just like the other major carriers, cannot avoid bankruptcy if it continues to lose money at the current rate. It's that simple," McClain said in a memo to Northwest pilots.
A Northwest spokesman declined Wednesday to comment on the pilots' memo. Andrea Fischer Newman, Northwest's senior vice president of government affairs, did not speculate on the potential for a bankruptcy filing.
Read it here.