Another 4,900 Going Home

Northwest Airlines, after having laid off roughly 12,000 workers since the terrorist attacks, announced that one in nine of who's left -- nearly 5,000 -- will be going home, soon.

The airline, which has lost $1.2 billion in the post-September 11 timeframe, is hoping the cut in workers' expenses can stem the flow of red ink. The unions, of course, are not too happy with the continued requests for lowered wages and benefits.

Northwest, like all airlines, has seen its bookings drop in the past year and a half; and the past week or so has been devastating. The question of the duration of the falloff in travel looms large in management's portfolio of problems.

Some of the layoffs started yesterday; most will be effected by April 6th. Covered are 2,000 mechanics, 1,400 flight attendants, 630 baggage handlers, 300 managers, 250 pilots, and 315 others.

Northwest President Doug Steenland said of the layoff notice, "It was in the best interest of the airline to reduce our overall capacity and bring it in line with the demand we are now seeing."

An AMFA spokesman was more cynical, saying, "I don't believe for a minute that this is necessary. They're looking at a 12 percent schedule reduction, but they're laying off 30 percent of their mechanics."

Even as most airlines beg Congress for insurance coverage for troubles the war is piling on them, Northwest says it will indeed invoke its force majeure clause, to get around contract language that otherwise proscribes layoffs on such short notice.

Laid-off employees will receive base pay of one to four weeks, as well as medical coverage through next month. They will also retain full travel privileges through the end of the year.

FMI: www.nwa.com