Mar 1, 2006 11:49 am US/Central
NWA, Pilots Await Judge's Decision
Minneapolis (WCCO) ―
Everything that was on the table Tuesday night remained on the table Wednesday morning, a union representative for Northwest Airlines pilots said Wednesday.
Northwest and its pilots' union are negotiating in New York on new contracts for the pilots that could include hefty pay cuts. Two pay cuts have already sliced 39 percent from their wages.
The pilots' union announced Tuesday that pilots overwhelmingly voted to authorize a strike. More than 4,000 pilots voted, and 92 percent said they would be willing to walk off the job if a bankruptcy judge in New York throws out the current contract and Northwest then imposes new terms.
The Eagan, Minn.-based carrier filed for bankruptcy protection Sept. 14 and is the nation's fourth-largest carrier. Bankrupt carriers can ask a judge to let them reject their contracts, including union contracts. Northwest has said it needs worker concessions to be profitable again.
"The message is get serious at the negotiating table," said pilot Don Burnham. "Let's get an agreement. Let's avoid the necessity of having a strike."
Northwest said it would be illegal for pilots to strike.
Negotiations continued until 4 a.m. Wednesday morning and both sides returned to the bargaining table at 8 a.m.
Mark McClain, the head of the Northwest unit of the pilots' union, said Wednesday morning there were "major philosophical differences" in the negotiations.
On Tuesday, McClain said the framework for an agreement about who will fly Northwest's smaller jets is still in place. That had been one of the key sticking points early in negotiations.
The bankruptcy judge had imposed a 10 a.m. CST deadline for a deal. His ruling is expected to come later Wednesday.
If there is no settlement, the judge could either throw out the contracts and impose new contract terms or give both sides more time to negotiate.
Carlson School of Management Professor Rajesh Aggarwal believes the pilots and airline will eventually reach a settlement and that the pilots will have to bend.
"The latest results from Northwest suggest there really isn't that much room that Northwest has with which to negotiate off its demands," Aggarwal said.
Pilots disagree, saying the airline can give them more.
Northwest executives and airline analysts said if the pilots do strike, the airline will not survive. Despite that outlook, pilots insist they are ready to walk.
"This pilot group is unified and they will support whatever actions their leadership determines are necessary," pilot Burnham said.
Flight attendants are also in negotiations with Northwest about their contract. The president of the flight attendants' union said there was movement in those negotiations. Flight attendants are also voting on whether to authorize a strike. That voting runs through March 6.
(© MMVI, CBS Broadcasting Inc. All Rights Reserved.)
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