Northwest seeks employee ideas for cost-cutting

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Northwest seeks employee ideas for cost-cutting  =

 =


Thursday September 12, 2:44 PM EDT =


CHICAGO, Sept 12 (Reuters) - The chief executive of Northwest Airlines (N=
WAC) has asked employees to submit ideas for cost-cutting and revenue-gen=
erating measures in an effort to meet the company's goal of being the low=
est-cost carrier among major U.S. airlines.

In a recorded message to employees on Wednesday, the anniversary of the S=
eptember, 2001 attacks that devastated the airline industry, CEO Richard =
Anderson said the airline needed to keep its costs in check and revenues =
growing so it can avoid going the route of competitor US Airways, which f=
iled for Chapter 11 bankruptcy protection in August.

"I wish I could report an end to the tough times, but I think the most di=
fficult decisions are yet again ahead of us," Anderson said. "The fact th=
at our business hasn't returned to profitability and we do not know when =
it will is our main challenge."

  =


Anderson asked employees to submit their ideas through the company's inte=
rnal computer system by October. He said he will head a committee that wi=
ll review each idea and plans to implement the new ideas by the end of th=
e year.

Employees who submit the the top 50 ideas that are adopted will receive t=
wo passes for travel on Northwest's system.

"We need to hear from you about how Northwest can further reduce costs an=
d increase revenues," Anderson said. "This is a substantive program to ta=
ke your ideas and implement them quickly."

Eagan, Minnesota-based Northwest has about 43,000 employees. The carrier =
said last week it laid of 670 temporary workers after the U.S. Labor Day =
holiday and planned to cut another 350 full-time jobs by mid-September.

In another effort to trim costs, Northwest said earlier this week that ef=
fective January, 2003 it would require employees who participate in its m=
edical and dental managed care plans to contribute 20 percent toward the =
monthly cost of coverage. Anderson said Northwest will also increase copa=
ys for prescription drugs under certain plans.

"This is going to be the first step in basically analyzing every cost we =
have on the table to make sure that the business is viable," Anderson sai=
d of the health care coverage changes. =



=A92002 Reuters Limited. =


Roger
EWROPS

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