Northwest pilots consider pay cuts
MEMPHIS, Tenn. (AP) =97 Pilots for Northwest Airlines are leery of the=20
company's proposal to cut their pay and benefits by up to 37%, a union=20
spokesman said Tuesday. "I think most pilots feel that management is=20
overreaching," said Hal Myers, a Northwest pilot and spokesman for the=20
Northwest Master Executive Council of the Air Line Pilots Association,=20
which is meeting this week in Memphis. The council expected to have its own=
=20
report on the company's finances in time for the quarterly meeting of=20
Northwest union leaders, but the study likely will not be finished until=20
next month, Myers said. "Based on our own analysis, we're going to decide=20
what we think is right," he said. Myers said the pilots realize Northwest=20
and the nation's other major airlines are losing money because of the 2001=
=20
terrorist attacks and the possibility of war with Iraq. "We're not staking=
=20
out hard positions," he said. After reviewing the financial report being=20
prepared by the Peter J. Solomon Co., the executive council will offer a=20
recommendation to union members. The quarterly meeting runs through Friday.=
=20
A special meeting of the council is expected late next month in Minnesota,=
=20
where Northwest is headquartered.
Northwest's contract with the ALPA can be amended beginning in September.=20
Northwest, the county's fourth-largest airline, says the proposed=20
concessions from its 5,700 pilots would save $2.76 billion over the next 6{=
=20
years. Northwest also has told the pilots it wants to furlough 343 more=20
fliers. That would bring the total number of pilots on furlough to 1,036.=20
Union leaders say the company's proposal would reduce pilot salaries by=20
17.4%, eliminate a 5.5% pay increase scheduled for Sept. 12 and provide no=
=20
pay increases until July 1, 2006. Then pilots would get 2% annual raises=20
for four years. Northwest pilot pay now ranges between $35,000 to $213,000=
=20
a year, with an average of $110,000. Other savings sought by the company=20
would come from adjustments in work rules and cuts in benefits, including=20
reduced vacation, sick leave and medical benefits. Myers said the pilots=20
are willing to discuss contract concessions if those losses would be=20
returned should the company's finances improve. "If you create success in=20
the company, you need to be guaranteed some return, that you also share in=
=20
the success," he said. "Pilots historically have been very realistic in=20
responding to the company's problems." Northwest has declined discussing=20
its talks with the pilots or other workers. A report released Tuesday by=20
the Air Transport Association estimates the nation's airlines could lose=20
$13 billion if the United States goes to war with Iraq. The report=20
described the airline industry as "struggling to survive." United Airlines=
=20
and US Airways already have filed for bankruptcy. Northwest says it must=20
cut annual costs by $1 billion to $1.5 billion to become profitable again.=
=20
The company has cut about 12,000 jobs.
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