Northwest Secures Pay Cuts

The technical support union agrees to $2.25 million a year in concessions.
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Bankrupt carrier

Northwest Airlines

(NWACQ)

said Friday that members of the Aircraft Technical Support Association ratified pay cuts that will save the the company $2.25 million a year.

The agreement includes a 9.9% wage reduction, profit sharing and benefit changes that Northwest claims will allow it to compete with low-cost carriers and with other airlines that have restructured through bankruptcy.

The ATSA represents about 200 technical writers, trainers and maintenance planners at the airline.

Earlier this week, Northwest, the world's fourth-largest airline, reached interim agreements with the Air Lines Pilots Association and the Professional Flight Attendants Association that would cut labor costs by a combined $332 million.

Northwest also said it signed a tentative agreement with workers represented by the Northwest Airlines Meteorology Association.

Minnesota-based Northwest filed for bankruptcy in September. The carrier is trying to get $1.4 billion in labor concessions.

The airline didn't come to an interim pact with the heads of the International Association of Machinists and Aerospace Workers, and it has filed a motion with the U.S. Bankruptcy Court in New York asking for temporary wage and benefit reductions of $114 million from that union. Northwest is seeking a mid-November hearing date.