Northwest pilots will craft proposal to cut labor costs

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Northwest pilots will craft proposal to cut labor costs

BRAINERD, Minn. (AP) ? The union of Northwest Airlines pilots will develop
a plan to cut pilot labor costs, but it will also ask the airline for
something in return, the union said Wednesday. In late February, the
airline asked the Air Line Pilots Association to consider a sweeping
proposal that would cut Northwest's pilot labor costs by $442 million a
year. It would be achieved by reducing pay and benefits, altering work
rules and furloughing hundreds of pilots. Northwest ALPA leaders said
Wednesday that they would work with management and other unions to further
quantify the airline's problems and determine what steps may be necessary
to help the airline return to profitability. Spokesman Hal Myers said:
"Essentially, the pilots would view any cost restructuring of the pilot
contract to be an investment in Northwest Airlines' future. We would
reasonably expect that there would be some opportunity for a return on that
investment." A decade ago, Northwest pilots received stock in exchange for
accepting concessions. Other companies have established profit-sharing
programs. Myers said the ALPA will identify cuts and specify options for
future rewards when the company becomes prosperous again. Northwest has
lost $1.6 billion since early 2001. "We did not emerge from this meeting
with a specific counterproposal," Myers said. But the leaders did agree to
work on financial solutions. Northwest spokesman Bill Mellon said, "We look
forward to working with our pilots and other Northwest Airlines unions to
effect the needed changes to ensure the long-term success of the airline."


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