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NEW YORK (CNN/Money) - Northwest Airlines' mechanics union announced early Saturday morning that it was going out on strike, but unions representing the carrier's pilots and flight attendants will not be joining it on the picket lines.

Airline management has pledged to keep flying its normal schedule of 1,600 daily flights, carrying an average of 177,000 passengers.

But the leadership of the Aircraft Mechanics Fraternal Association said it doubts that the No. 4 airline will be able to maintain a normal schedule on a prolonged basis.

The mechanics union represents 4,400 employees at Northwest, including 3,200 maintenance employees, with the rest having other ground duties such as pushing back aircraft from gates or cleaning aircraft.

However, the mechanics union was dealt a blow in the first minutes after its announcement when the unions representing pilots and flight attendants announced they had voted against striking in sympathy -- making it more difficult for the mechanics' stike to affect operations.

There was at least one indication, however, that some disruptions for flyers are expected. The statement from the pilots union leadership to its members noted that Northwest management had warned that "operations will likely be affected over the coming days," resulting from a large number of aircraft currently out of service as well as "non-critical" maintenance issues.

A Northwest spokesperson said the pilots' statement would be addressed at a press conference Saturday morning.

Bankruptcy?
The statement on the mechanics union's Web site blamed management for the strike, saying the final offer called for even harsher terms than earlier offers, including elimination of the jobs of more than half the union members.

"Northwest wanted a strike and now they have one," said a statement from O.V. Delle-Femine, the union's national director.

In a statement, Northwest CEO Doug Steeland defended the offer. "The Northwest final offer was fair to our employees while recognizing the need for equitable labor costs savings from all labor groups so that Northwest could restructure successfully."

Management had said it needs $176 million in labor cost savings from the mechanics union, as part of a target of $1.1 billion in total cost cuts it says it needs to stay out bankruptcy court.

The airline has seen many other airlines win concession contracts from their unions, but so far the pilots union is the only Northwest union to agree to a concession deal.

The airline industry and investors will closely watch the strike.

If management is able to make good on its vow to keep its schedule normal or close to normal, it would be seen as further weakening union's leverage.

Northwest's example could lead the way for some of the nation's largest carriers to make even more drastic cost cuts than they were able to win in the four years since the Sept. 11 attacks, making them more competitive with the lower-cost, low-fare carriers that have become the major force in the industry.

Some analysts raised their recommendation on Northwest stock in the past week, writing to clients that they believed management would be able to win a strike, giving it the leverage it needed to wrest concessions from its other unions as well.

But if the mechanics union at Northwest is able to essentially shut down operations, a bankruptcy court appearance is likely, perhaps as soon as this weekend.

That could prompt other filings in the industry as well.

No. 3 Delta Air Lines is also struggling to stem losses, and it warned pilots union Friday that its cash stockpile had dropped below a key level that could allow it to seek more concessions. Delta shares were at an all-time low this week on bankruptcy speculation.

The strike is the first work stoppage to hit a major U.S. airline since Northwest pilots went on strike for two weeks in 1998, although a Delta Airlines feeder airline was hit by a nearly 3-month pilots strike in 2001.

President Bush has the power to appoint a board to order the union back to work while a federal panel looks at the two sides' offers to each other. He used that power to stop AMFA from striking Northwest in early 2001. But this time management had asked that the President not intervene and earlier in the week the White House said it had no intention of taking such action.


Hair, not Air!
Rob Martin

 
Posts: 395 | Location: Florida's Fabulous East Coast | Registered: 26 February 2004Reply With Quote
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With all the trouble the airline industry is in, these guys ought to be glad they are still employed at all.
 
Posts: 18352 | Location: Salt Lake City, Utah USA | Registered: 20 April 2002Reply With Quote
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Of course! Anyone care to guess what airlines I'm using Sept 21 to TZ? NW says they've got enough outside mechanics with additional FAA oversight. I beiieve that, but what I'm concerned about is support from baggage handlers' union, etc.
Oh well. It's all part of the adventure, eh?
Dave


"What we obtain too cheap, we esteem too lightly: it is dearness only that gives every thing its value."
-Thomas Paine, "American Crisis"
 
Posts: 816 | Location: Llano, CA Mojave Desert | Registered: 30 April 2005Reply With Quote
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Flights are coming and going with no problems....as of today.
Please call and reconfirm your flights if you are traveling over the next few days.

North West # 1-800-225-2525


Kathi

kathi@wildtravel.net
708-425-3552

"The world is a book, and those who do not travel read only one page."
 
Posts: 9497 | Location: Chicago | Registered: 23 July 2003Reply With Quote
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My experience with Northwest is that the people on the plane are the nicest in the indusrty and the people in the terminal are the least helpful and surliest of any in the industry. I do know which group the strike will effect-- if either. But if they can replace the ticket agents and gate people, I am all for it.
 
Posts: 5713 | Location: Ohio | Registered: 02 April 2003Reply With Quote
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I've been sitting here for about an hour just wondering if I could think up a good reason for union to strike a semi-belly-up company in a failing industry. I've come up with two:

1. To pressure management to reorganize, cut deadwood and to operate more profitably, maybe even force Chapter 11 so that debt can be re-structured (and even union contracts be broken... the altruistic strike, I suppose... so that SOMEBODY has a job).

2. To commit suicide by demanding more money when there just ain't any.

So, someone in the industry... Why is the union taking the second road... and can the industry survive? Delta has an unfunded 5 billion retirement debt and loses 2 billion a quarter. Others are in the same boat, yet some prosper. Is it just better management, hedged fuel costs, lower pay scales, better routes, flight attendants with bigger hooters?

I like some stability in my transport. Worrying if an airline will still be around when it's time to use the ticket is angst that I don't need. Maybe I just need to buy my own Gulfstream VI or something?

Honestly, can someone tell us why the airlines seem to be self-destructing... with the advice and consent of the unions.

I just want to go hunting and it's a long drive to East Africa.


JudgeG ... just counting time 'til I am again finding balm in Gilead chilled out somewhere in the Selous.
 
Posts: 7697 | Location: GA | Registered: 27 February 2001Reply With Quote
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I flew Hooter's airline from Orlando to the Carolinas once. Not bad service. If we could get them to buy a 747 and fly to Africa, I bet they'd sell a bunch of tickets!


Hair, not Air!
Rob Martin

 
Posts: 395 | Location: Florida's Fabulous East Coast | Registered: 26 February 2004Reply With Quote
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