SFGate: Northwest Airlines pilots say concessions deal could be close

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Friday, October 8, 2004 (AP)
Northwest Airlines pilots say concessions deal could be close
JOSHUA FREED, AP Business Writer


   (10-08) 16:30 PDT MINNEAPOLIS (AP) --
   Pilots at Northwest Airlines said a deal on concessions could come "in t=
he
very near future," putting the airline within striking distance of savings
it has said are key to its future.
   But officials from the Air Line Pilots Association warned that the deal
could still fall through, too.
   The union had said previously that Northwest wanted $300 million in
concessions, versus a $200 million proposal from pilots. On Friday, the
union released a newsletter update saying both sides have moved from those
positions, although it didn't specify by how much. "A significant
difference remains in our positions," the union said.
   ALPA spokesman Will Holman declined to say how much the two sides had
moved, or whether the movement involved pay or work rules.
   The union update sounded cautious: "It is entirely possible this process
will not lead to a satisfactory agreement. However, if we continue to see
progress at the table and the necessary pieces fall into place, it is
conceivable we could conclude an agreement in the very near future."
   The union also said it is in "active negotiations" over its proposed
restrictions on increases in management compensation. "Not surprisingly,
management is resistant to some of ALPA's proposals in this area," the
union said.
   Northwest spokesman Thomas Becher said the airline does not comment on
labor negotiations.
   The airline has said it needs $950 million in labor concessions to be
competitive.
   Northwest's pilots have been the first group to offer concessions,
although negotiations are also under way with the union that represents
ground workers. Contracts for mechanics and flight attendants come open
next year.
   Other airlines have been slashing employee costs, too. United Airlines c=
ut
labor expenses last year by more than $2.5 billion annually, and wants
another $1 billion in cutbacks. Delta Air Lines want $1 billion in
concessions from its pilots.
   Shares of Northwest Airlines Corp. closed down 8 cents at $7.96 on the
Nasdaq Stock Market.

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Copyright 2004 AP

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