Demand To Know Executive Salary Schedule Post-Bankruptcy

Northwest flight attendants objected this week to the airline's failure to disclose how much its executives and directors are scheduled to be paid when the company emerges from bankruptcy later this year.

A disclosure statement was filed on February 15 regarding financial details -- but omitted information such as executive compensation packages, according to the Associated Press.

The company stated it would add this information at a later date... but the flight attendants union, the Association of Flight Attendants, filed an argument with the bankruptcy court Monday complaining they need to evaluate the company's reorganization plan of not only pay issues, but director selection processes as well.

The union argument states pay cuts imposed on them would be applied to management as well.

"For that reason, the flight attendants are clearly entitled to disclosure of the amount of management's post-confirmation compensation, and to some measure of confidence that Debtors intend to honor their pledge of shared sacrifice after exit," union attorneys wrote.

Flight attendants have not reached an agreement and are currently working under terms imposed last year by Northwest with the permission of a bankruptcy judge unlike other unions which have reached agreements with the carrier.

According to the union, the rub lies with the July 31, 2006 bankruptcy court decision that "allowed Northwest management to throw out the flight attendant contract and impose a 40% wage and benefit cut. Since that time, Northwest has posted a $301 million profit, clearly showing that management overreached in their bankruptcy demands.

"Since the business plan that was used to justify these Draconian cuts was flawed, AFA-CWA is asking the court to reevaluate the current situation and reduce the amount of annual concessions being taken from the flight attendants," the union added.

FMI: www.afanet.org, www.nwaafa.org