State of the Airlines

Monday, October 09, 2006

Northwest and Mechanics Have Tentative Agreement

Northwest Airlines and its mechanics represented by AMFA have finally reached a tentative contract agreement (Yahoo!). The agreement could provide monetary relief to striking mechanics in one of two ways. First, they can accept layoff status and pull in layoff pay, one week per year employed up to 5 weeks total. Doing so also makes them eligible for furloughed status for up to two years. Or they can choose termination and receive one week per year employed up to 10 weeks total. Nothing changes regarding the mechanics now working for Northwest though mechanics accepting the layoff option are eligible to apply for open positions. Finally, Northwest would agree to halt the appeals process on a recent ruling that allowed striking mechanics to claim unemployment benefits.
Despite the possibility of monetary relief for the mechanics most of this agreement is really a final victory for Northwest. Look at the way the terms skew the payouts. It sweetens the pot for senior mechanics take the "I quit" option. You can bet that this offer is going to cost Northwest less than it would to continue unemployment benefit payouts while racking up legal fees trying to appeal the ruling of the courts on that matter. The agreement doesn't do anything to change current contract terms for pay scale or benefits and doesn't bring any jobs for striking mechanics. Moving on...nothing more to see here.

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