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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Wednesday, September 27, 2006

Northwest and Flight Attendants Must go Through the Motions

The National Mediation Board (NMB) told Northwest Airlines and its flight attendants represented by the AFA-CWA to get back to the negotiating table yesterday. I think you could almost hear the heavy sigh from the NMB as they rubber stamped this decision. No one expected them to declare an impasses despite being requested to do just that by the AFA-CWA. By the same token I think there are serious doubts by many, including the NMB, that telling the two sides to negotiate again will change anything. The two remain worlds apart. Interesting that neither Northwest or the AFA-CWA issued press releases this morning. Normally both sides have prepared statements canned and ready to rock. Are they waiting each other out to see what the posture will be?

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Thursday, September 21, 2006

Northwest Flight Attendants Set the Tone for Upcoming Meeting

The AFA-CWA wasted no time in setting the tone for the Sept 26 meeting between Northwest flight attendants and the airline at the National Mediation Board (NMB). In a statement today the AWA-CWA states they have asked the NMB to declare an impasses to invoke a 30 day cooling off period prior to a strike. Kinda throws a bucket of ice water on any warm fuzzies you might have had about this meeting next week doesn't it.

I'll point out the rhetoric the AFA-CWA is using because, again, I think its indicative of the desparation of their strike tactic.
"When management unilaterally cut flight attendant pay, benefits and work rules, they mocked the integrity of the NMB's role in promoting consensual resolution of labor disputes," said Patricia Friend, AFA-CWA International President.

So apparently the NMB should be offended by Northwest's actions and its the AFA-CWA's job to point that out? Once again they are casting a wide net trying to gather others underneath the umbrella of their "cause". Airline consultant Michael Boyd, who tends to say some pretty smart stuff has this quote regarding the AFA-CWA's position:

"It moves it closer to a resolution," said airline consultant Michael Boyd. "Frankly, I think the flight attendants have gotten stuck in a difficult situation. They may have maneuvered themselves into a corner."

Exactly.

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Friday, September 15, 2006

The Gavel Falls Yet Again on Northwest Flight Attendants

The latest effort by Northwest Airlines flight attendants to invoke their right to strike has once again been thwarted. The courts have overturned the decision made by the bankruptcy judge and have granted Northwest Airlines an injunction preventing its flight attendant from striking. Simply put, No Strike for You!

I think you can measure the desperation in the efforts of the AFA-CWA on behalf of the Northwest attendants. All you need to do is look at the rhetoric in their press release sporting the catchy title "Court Tramples Right to Strike". They have resorted to wholesale condemnation of the legal system and corporate greed. They paint broad strokes in attempt to spread this issue to the protection of the "working family" and "...not only for Northwest flight attendants, but for all flight attendants who will walk in our footsteps". You see words like "fight" and "crusade" sprinkled in for good measure. I think its safe to say that this is the end game for their strike tactics.

Update: Please don't confuse the opinion in this post with support for the tactics that Northwest is using on this or any other union. While I do believe pay cuts are necessary I believe the airlines are given far to much latitude under bankruptcy to impose these cuts. I believe this ham-fisted approach is unwarranted and ultimately counter-productive.

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Wednesday, September 13, 2006

Courts to Northwest Airline: 25 Percent Paycuts are a Lockout

The Minnesota Court of Appeals has granted Northwest Airlines mechanics who went on strike last year the right to claim unemployment benefits from the state of Minnesota. While this is really good news for some 1600 mechanics that's not what really drew my attention to this story. What caught my eye was the reason the court made its decision. The court determined that the 25% pay cut that was imposed by Northwest Airlines constituted a lock out. Now that is interesting. Not because it could help the cause of striking mechanics but because of the timing of this ruling in conjunction with an imminent strike by its flight attendants for the same reason, pay cuts.

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Tuesday, September 12, 2006

Northwest Flight Attendants May Create Their Own CHAOS

A recent update to the Northwest flight attendant union website is once again encouraging its members to rally to behind plans for a CHAOS (Create Havoc Around Our System) strike. The approach should worry any flight attendant at Northwest that wants to keep a job. Union leadership believes a strike will, in their own words, "level the playing field"
"We remain committed to reaching a negotiated agreement with the company regardless of the hurdles along the way," said Mollie Reiley, Interim Master Executive Council President. "However, at this time it appears that the company is more focused on their legal strategy than meaningful discussions. Until the time comes when they are willing to sit down and negotiate a fair contract, it is necessary that we level the playing field and exercising our right to strike does just that."

I disagree. In the industry today the bankrupt airline has a significant advantage negotiating with any union, strike or not. The trail left by US Airways, United and Delta clearly illustrate this. Yes, Northwest has claimed repeatedly that a flight attendants strike could put the airline out of business. That's necessary language to get the bankruptcy court to delay a strike. In the meantime Northwest is (and has been for months) training any office worker that moves to be a flight attendant. Not an ideal situation but it could certainly blunt the effect of a strike. Either way flight attendant jobs are at risk if (a) the airline can survive without them or (b) the airline folds.

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Friday, September 08, 2006

OPINION: Northwest Flight Attendants Need Some Spin Control

Note to Association of Flight Attendants representatives at Northwest Airlines, start proofing what you type, watch what you publish, ask your members to be careful what they say in a public forum. I do appreciate the difficult times you face and the pay cuts that are staring you in the face. Not fun...battle on. But the following statement should not have gotten out the door:
"Most of us don't even care about the survival of NWA anymore. How can a company survive under these toxic conditions," flight attendant Kathryn Swarts wrote in a letter to the judge overseeing its bankruptcy.

I think the majority of folks still employed at Northwest Airlines might have an issue with that statement. It comes across as terribly self-serving and isolates you from what should be the common goal...the survival of an airline for the benefit of all who make their living at that airline. Even if that quote is being taken out of context in this article you need to realize that is the risk of saying it in the first place.

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