Tentative Agreement Goes Up For Vote In June

A last-minute deal reached last week between Northwest Airlines and ground workers represented by the International Association of Machinists and Aerospace Workers could mean as many as 700 of those workers would lose their jobs, the union said Monday.

As Aero-News reported, the airline reached the deal with the IAM just hours before a bankruptcy judge was to rule on whether Northwest could toss out its current contract with the union representing approximately 5,600 workers, and impose its own terms -- as is allowed under bankruptcy guidelines with judicial approval.

IAM branch manager Bobby De Pace told the Associated Press the exact number of layoffs depends on what positions Northwest decides to eliminate, and whether workers decide on accept a company buyout.

Workers will vote on the new contract -- which maintains an earlier 11.5 percent pay cut, and would save Northwest an estimated $190 million a year -- over a two-week period in June.

The new deal would allow Northwest to hire outside contractors to replace nearly 500 ground workers who handle baggage and move aircraft at its Minneapolis and Detroit hubs, as well as at a few other airports. The company would also be able to replace 63 stock clerks outside the two hubs, as well as hire a contract caterer at the Minneapolis hub. That would mean the loss of another 126 union jobs.

Despite the losses, the IAM maintains the new agreement is better than one the union rejected in March. Improved severance package provisions and a profit-sharing plan (once Northwest turns a profit) are among the changes.

FMI: www.nwa.com, www.iamaw.org