Feb 9, 2006 5:12 pm US/Central
Flight Attendants' Tentative Contract Extended
NEW YORK (AP) ―
The judge overseeing Northwest Airlines Corp.'s bankruptcy case extended a tentative contract on Thursday between the carrier and the union representing its 9,000 flight attendants.
The tentative agreement with the Professional Flight Attendants Association (PFAA) was first reached in November and was set to expire on Monday. Flight attendants opposed an extension of the contract saying the airline had not negotiated in good faith over wage and benefit cuts it is looking to impose.
Judge Allan Gropper said the agreement had to be extended to keep the airline running smoothly and to ensure that negotiations between Northwest and its employees do not completely break down. Lack of a tentative agreement "would truncate ongoing negotiations," Gropper said, adding "the court is convinced the differences between the PFAA and the debtors are very narrow."
Northwest had asked Gropper to extend the contract, saying failure to do so would collapse similar tentative agreements with its pilots and baggage handlers unions, would cost the airline $9 million a week and would create problems with the scheduling of flights. Neither Northwest nor Gropper specified the length of an extension.
The interim agreement from all three unions began on Nov 16. and provided Northwest with about 60 percent of the labor savings it asked for. The Eagan, Minn.-based carrier wants to save $2.5 billion in costs, including $1.4 billion in labor expenses, to emerge from bankruptcy.
Northwest filed for bankruptcy protection in September because of rising fuel costs and competition from low cost carriers.
Hearings on Northwest's request to do away with contracts made with its flight attendants and pilots ended last Friday, but the judge has yet to issue a ruling.
Both sides have said they are trying to reach a consensual agreement over the contracts.
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Northwest Airlines was founded in 1926, when it began carrying air mail from the Twin Cities to Chicago on a pair of rented, open-cockpit biplanes. The company began transporting ticketed passengers almost a year later.
(© 2009 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)
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