Northwest to cut management pay and benefits by up to 15% MINNEAPOLIS (AP) =97 Northwest Airlines plans to cut the salaries and=20 benefits of its 3,000 management employees by 5 to 15% to help the company= =20 return to profitability. Northwest CEO Richard Anderson said in a memo to=20 employees that he wants to reduce management compensation effective July 1.= =20 Last week, the Eagan-based carrier announced a $396 million first-quarter=20 loss and asked three of its largest unions =97 flight attendants, mechanics= =20 and ground workers =97 for substantial cuts in pay and benefits. Northwest's= =20 proposed restructuring plan, which covers the period from July 1 to Dec.=20 31, 2009, would save about $950 million annually in total labor costs.=20 "It's our responsibility to find effective and fair solutions that will=20 enable Northwest to achieve profitability once again," Anderson said. "It=20 requires that we all share in the salary and benefit reductions needed to=20 make sure Northwest avoids the plight of United and US Airways." Those=20 airlines filed for bankruptcy protection last year. Northwest spokesman=20 Bill Mellon said a memo was sent to management employees late Monday night,= =20 but he declined to reveal the total amount of management cuts. Union leaders have blasted managers for accepting performance bonuses for=20 2002, and have said repeatedly that executives cannot expect union workers= =20 to accept pay cuts unless they do the same. Assuming Anderson and Northwest= =20 President Doug Steenland take the maximum hit, they'd both lose $75,000=20 based on their 2002 annual salaries of $500,000. In addition, Anderson got= =20 a $250,000 bonus last year, along with stock awards worth $1.9 million.=20 Steenland received a $200,000 bonus and stock awards worth $1.4 million.=20 Anderson said in his memo that management wage and benefit cuts would be in= =20 addition to the reductions already implemented. In this month's newsletter,= =20 Anderson said management ranks have been cut by 33 percent since early=20 2001. "Management has already participated in sacrifices and will continue= =20 to share in any future sacrifices," he said. About 1,300 management jobs=20 were cut by mid-March, with the company now cutting another 300 management= =20 jobs, Mellon said. The latest reductions are among 4,900 layoffs that were= =20 announced March 21 in response to the Iraq war. Anderson said, overall, the total cost of salaries and benefits for=20 Northwest's director level and above represents 1.9 percent of the=20 airline's total annual payroll and benefits cost. "We all have a lot at=20 stake together and must fly through this difficult time," he said. *************************************************** The owner of Roger's Trinbago Site/TnTisland.com Roj (Roger James) escape email mailto:ejames@xxxxxxxxx Trinbago site: www.tntisland.com Carib Brass Ctn site www.tntisland.com/caribbeanbrassconnection/ Steel Expressions www.mts.net/~ejames/se/ Site of the Week: http://www.pscutt.com TnT Webdirectory: http://search.co.tt *********************************************************