Northwest Air, Pilots Brace For Mechanic Strike ?

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Northwest Air, Pilots Brace For Mechanic Strike  
 
  

Monday June 6, 6:18 PM EDT 


NEW YORK (Dow Jones)--Northwest Airlines Corp. (NWAC) and its pilots union are setting contingency plans in case another employee group goes on strike.

But the one employee group closest to a legal job action, the Aircraft Mechanics Fraternal Association, says the airline is trying to push it into a strike, though union leaders prefer to continue negotiating.

"Northwest is aware of significant strike-planning activity under way at several of its unions," the Eagan, Minn., airline said in a statement on Friday. "Northwest is developing contingency plans including expanding vendor relationships and, in some cases, augmenting staff."

The union representing Northwest pilots is also making plans in case mechanics strike. The Air Line Pilots Association said in an email to members that it established an air-safety operations center to answer any safety concerns that arise if the airline's negotiations with mechanics break down.

 

Meanwhile, O.V. Delle-Femine, national director of the mechanics' union, said he wants to continue negotiating a new contract. The union is organizing a picket committee in case the situation comes to a head, he said in an interview with Dow Jones Newswires, but that doesn't mean a strike is inevitable.

Northwest has been negotiating a new contract with mechanics since October as part of the airline's push to sign new deals with all unions in order to cut annual costs by $1.1 billion. The airline has attempted to speed the process with the mechanics by calling in the National Mediation Board, and two weeks ago, Northwest asked the board to declare an impasse. Northwest said in a statement it expects the board to make a decision within two weeks.

If the board declares an impasse, the sides may agree to binding arbitration. Otherwise, they enter a 30-day cooling-off period, after which mechanics could legally strike or the airline could impose new contract terms or hire replacement workers.

The mechanics union must respond by Wednesday to the company's request that an impasse be declared. Director Delle-Femine said he prefers to continue negotiating.

"I'm going to write that we can't see an impasse at this time, it's rather premature," he said.

Typically, contract negotiations in the airline industry take months or years before either side asks the National Mediation Board to step in. And typically, both parties would together request an impasse. Delle-Femine said in his 40 years in the airline industry, he's never been part of a contract negotiation in which one party alone asked for an impasse to be declared.

"They're trying to force us to strike," he said, and pointed out that, given a 30-day cooling-off period, the mechanics would be allowed to strike around late summer, the high season for air travel.

The mechanics union said in letters to its members that negotiations have reached a few snags, particularly over an airline plan to outsource half of the mechanics' work. If mechanics go on strike, the airline could hire replacement workers right away.

A Northwest spokesman declined to comment on negotiations. The airline said in a statement it isn't currently hiring workers meant to replace mechanics, and the airline's goal is to resolve labor negotiations through voluntary consensual agreement.

In the case of a strike that cripples national air traffic, President George Bush could establish a Presidential Emergency Board to study the situation and recommend a resolution. A White House spokesman declined to comment on such a possibility because no impasse has been declared.

Northwest is in talks with other work groups as well about a plan to cut total annual labor costs by $1.1 billion. Analysts have said if labor groups don't accept salary and benefit cuts soon, executives will likely begin talking about the threat of bankruptcy, though few analysts think Northwest will face a cash crunch soon.

The situation with the mechanics, who keep airplanes fit and safe to fly, prompted the Air Line Pilots Association union to set up a safety operations center.

"We are uncertain how the (National Mediation Board) will respond to NWA management's request and there is no set timeframe for the Board's response. However, given the current political environment, it is conceivable that events could move quickly," the pilots union said in its weekly letter to members.

Representatives with the pilot union, which has already agreed to some salary and benefit concessions, have attended some of the mechanic negotiating sessions. Pilots have said other work groups should take part in the cost cuts.

-By Elizabeth Souder, Dow Jones Newswires; 201-938-4148; elizabeth.souder@ dowjones.com 


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