Northwest attendants asked to take pay cut

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Northwest attendants asked to take pay cut

MINNEAPOLIS (AP) =97 Northwest Airlines is asking flight attendants to take=
 a=20
9.8% pay cut as part of a plan to reduce annual costs by $950 million. The=
=20
Eagan, Minn.-based carrier, which posted a first quarter loss of $396=20
million, pitched the plan Wednesday during a meeting with the Teamsters=20
union, which represents roughly 10,000 Northwest flight attendants.=20
Northwest has also presented the cost-cutting plan to ground workers,=20
pilots and mechanics. In total, flight attendants are being asked to=20
concede to $134 million in annual savings through reduced pay and benefits,=
=20
fewer vacation days and less assistance from the carrier for health=20
insurance. The restructuring plan covers the period from July 1 to Dec. 31,=
=20
2009. The proposed work rule changes would result in the furlough of about=
=20
925 flight attendants. Northwest has already furloughed 871 flight=20
attendants this month.

Mollie Reiley, Teamsters Local 2000 trustee, said Northwest's plan =97 which=
=20
would save $864 million in flight attendant costs over 6.50 years =97 was=20
"outrageous" and demonstrates a "complete lack of respect" for union=20
members. Reiley said flight  attendants plan to express their displeasure=20
at the company's annual meeting April 25 in New York. The company,=20
meanwhile, said its operation was approximately the same size in 2002 as it=
=20
was in 1996 but with $1.2 billion more in expenses and $400 million less in=
=20
revenue. Flight attendant costs have increased nearly 42% to $559.2 million=
=20
over that period, the company said.
The union has forwarded the proposal to a team of financial and industry=20
analysts to examine the financial data on which the company is basing its=20
plan. On Wednesday, Northwest Airlines reported its first-quarter losses=20
more than doubled as the war in Iraq and higher fuel costs battered the=20
travel industry. Chief Executive Richard Anderson said he saw no signs that=
=20
business would improve anytime soon and he warned that more cost-cutting=20
was needed. In March, the carrier cut its work force by 4,900 and grounded=
=20
20 airplanes. On Monday, Northwest told mechanics, custodians and cleaners=
=20
that it wants to eliminate 1,000 jobs. On Tuesday, the company asked its=20
other ground workers to absorb about $120 million in annual cuts, including=
=20
1,450 job cuts


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