Tue, May 23, 2006
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.
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