NWA and Pilots reach a deal

[zulaya]

This in the local news website and Yahoo news...basically they have reached a deal but no details have been released yet, plus the union membership will have to vote on it.

Good news is no strike in the immediate future...we can all go about our travel business as planned.

 

[zulaya]

Here's the text of the story from kare11.com

Pilots reached a tentative pay-cut deal with Northwest Airlines Corp. on Friday, a major step toward ending a showdown that put the bankrupt airline's future in doubt.

The Northwest branch of the Air Line Pilots Association announced the agreement.

The Airline released a statement around 3 p.m. saying it had reached a tentative deal with the union that included $358 million in labor and benefit savings. Northwest says it must cut annual labor costs by $1.4 billion.

The deal would still have to be approved by the union's leadership and members. The union said its Master Executive Council would meet Friday night to consider the agreement. If they approve it, the membership will then vote and are likely to follow their leadership.

Pilots were the next to last Northwest union without a deal. The mechanics are still on strike, though all have been replaced.

"The tentative agreement is a painful but necessary part of a successful restructuring of Northwest Airlines," said Mark McClain, head of the Northwest branch of ALPA. "If all of us can distance ourselves from these recent labor struggles and focus on ensuring the future success of Northwest we can begin looking forward to our emergence from bankruptcy as a proud and profitable airline."

Northwest had been seeking to reject its contract with pilots if they didn't agree to pay-cuts and changes in work rules. Intense negotiations took place in New York all week. The stakes rose on Wednesday, when a judge could have ruled on Northwest's request but chose to wait to give negotiators more time.

The bankruptcy law would have allowed Northwest to impose its terms even without the judge's ruling, but pilots threatened to strike if that happened. Northwest has said a strike could have put it out of business for good.

Northwest filed for bankruptcy protection on Sept. 14,2005 and continued its pre-bankruptcy push for $1.4 billion in pay cuts from all its workers.

Pilots had already taken a 15 percent pay cut in late 2004 and another, temporary 24 percent pay cut in bankruptcy. A permanent pay cut was part of the latest round of talks, along with Northwest's push for more flexibility in who flies its smaller jets. Pilots were seeking to own part of Northwest once it emerges from Chapter 11.

On Wednesday, flight attendants reached their own tentative agreement with the airline. The airline's baggage handlers and other groundworkers are also voting on whether to accept their own tentative agreement with Northwest.

By Joshua Freed, AP Business Writer

(Copyright 2006 by The Associated Press. All Rights Reserved.)

 

[disneymom3]

Honestly, while it would be a blow to the employment levels in MN, I think it would be an overall benefit to the airline situation here if NWA were to go under. My airline pilot BIL agrees with me.

 

[hercamore]

Ok, thanks for posting.

Much as I don't love NW, our local airport needs the airline.

herc.

 

[zulaya]

disneymom3 - I agree with you. In the short term, it might be a little dicey, but I can't see the other airlines letting a hole like MSP stay unattended with the traffic that already operates out here.

 

[TheShellys]

That's great vacation news especially as we just got our tickets yesterday on NWA. Now i can truly concentrate on going and having fun!

 

[Rock'n Robin]

Let it overall benefit the industry after my vacation please! I can call my TA with my ME information now. Hurray!!
Robin M.

 

[vfb2girls]

The only problem with NWA going under is for the people who live in North Dakota we do not have the same options that many have when choosing an airline to fly with. Losing NWA would be a big blow to this state and like one of our senators said there are no other airlines that are just jumping at the chance to provide service to us, so for right now I am happy to hear that they have reached an agreement and we will be able to leave on Tuesday for Disney.

 

[cudworth]

I agree with you VFB we fly out of Minot all the time if they lost NWA we would be lost.

 

[ClassicPooh2]

I have to agree with VFB & Cudworth. We also use Minot's airport and if NWA would "end", we would be without any airline. We could drive the extra 3-4 hours to Bismack and Fargo to fly United, but a trip to Florida would involve flying to Denver from ND to get to Florida. Not the best arrangements. We will continue to support NWA in North Dakota! (unless someone knows how to convince another airline of our great state!)

 

[petrymom]

yahhooo!!!!!! I booked my NWA tickets for Decmeber last night - finally. I feel much better about the trip now that I am booked. Was going to fly out of MSP, but Milwaukee saved me $400. Even with having to stay overnight in MKE before and after Disney, it is still cheaper this way..

 

[Skroops]

Get the tickets and travel while you can!

I am not confident that the employees will vote yes for these hideous contracts. If either group votes no on the contract, there will be a stand-still between the unions and NWA,and then the 30 day cooling off period begins with a strike following. NWA insists that it will liquidate if this occurs. I'm betting it will. The employees have given about all they are going to. We'll see. Either way, it should be interesting to see what happens.

 

[zulaya]

petrymom...if you don't mind my asking, what fare did you get flying out of MKE vs. MSP?

I think it's a crap shoot on what the rank and file will do. If they vote no, and the company liquidates, those members have no job. The rest of the airline industry isn't exactly hiring.

Maybe some of the members have something to fall back on, but I would be just about everyone would have to go into a different trade/industry and basically start over.

Never having been in that position, I don't know what I personally would do. I think if I was faced with starting over, having to take time to be retrained, and only had to worry about myself, I could probably do it. If I had children to take care of, I'd be hard pressed to vote no on the principle of thing, "sticking it to management" as it were.

It'll be interesting to see what happens, that's for sure.

 

[CarolA]

I think the rank and file will vote to accept. They may not like it, but they know it's what they are going to get.

If they are really unhappy I assume they will do what most of America does when they don't like thier Job, polish that resume and LOOK for a new one.

I know FAs don't make a ton so the "fall back on thier savings" theory may be weak there. Pilots are famous for thier toys. When DL was doing this for the first time last year the paper here kept interviewing men who made well into 6 figures, but couldn't figure out how they would keep the house, food on the table, etc. for a week if DL went under.... (It was hard to feel sorry for them in their $500,000 homes)

 

[zulaya]

CarolA - I hear you...sometimes people get used to "luxuries" and don't know how to do without. If you have that 500K house, time to downsize in my opinion.

Although I have to say that if those guys live anywhere near the Twin Cities, 500K in these new developments is becoming the norm and not the exception. Housing is frighteningly high up here. My average sized three level split that I bought 8 years ago as an existing home is now more than doubled in price if I chose to sell.

 

[petrymom]

petrymom...if you don't mind my asking, what fare did you get flying out of MKE vs. MSP?

I think it's a crap shoot on what the rank and file will do. If they vote no, and the company liquidates, those members have no job. The rest of the airline industry isn't exactly hiring.

Maybe some of the members have something to fall back on, but I would be just about everyone would have to go into a different trade/industry and basically start over.

Never having been in that position, I don't know what I personally would do. I think if I was faced with starting over, having to take time to be retrained, and only had to worry about myself, I could probably do it. If I had children to take care of, I'd be hard pressed to vote no on the principle of thing, "sticking it to management" as it were.

It'll be interesting to see what happens, that's for sure.

I don't mind your asking at all -

I paid $220.00 for round trip - 12-19-06 to 12-26-06. (total for family of four - 880.00. I was contemplating flying out of MSP because our dog needs to go to Gramma's in Eau Claire, Wi and it would save an extra trip to my mom's, BUT flights from MSP were $1200 for 4 when I went to book. For $320.00 less, I will take the 3 hour drive to my mom's twice. Before I booked, I checked with CC company and they will Reimburse if NWA goes bankrupt. I just can't see it happening. I guess we will gamble!!!!! I love the flight times and the idea that it is non-stop!!!!!

 

[zulaya]

I hear you. $220 is closer to what I would call reasonable. We go 12-9-06 to 12-16-06 and so far the best price on NWA is $312 and it's crappy flight times. Sun Country has the same price and much better flight times. I have time to I am going to wait it out for a price closer to what you got.

 

[petrymom]

Good Luck - I hope you find cheaper flight pricing. Have fun in December. I hate to wish my life away, but this is going to be THE LONGEST year for me. I can't stop thinking about going. I think it is worse this time than our first trip.

 

[disneymom3]

I agree the $200 range is entirely reasonable. The prices that bum me out are when it gets in the $300 range. That is a lot of budget for a family of 5. One of the many reasons we usually drive.

 

[Rock'n Robin]

We got our tickets for $197. Not the best ever (that was $135 after 9/11, and we have averaged around $185) but I am happy to get under $200 each for the 5 of us. We have to go to Detroit, but we are saving $250 total over flying out of Toledo, and this way we get a nonstop. We flew nonstop last time from Toledo to Sanford on Trans Meridian (now bankrupt) and we realized how much we like not having to run through Atlanta or Cincinnati!
Robin M.