DAL and NWA to take contracts to the judge today

[andy]

In a nutshell (in case you missed it):

Delta Air Lines went to U.S. Bankruptcy Court today to ask a judge to basically void the pilots' contract. In return, the pilots are threatening to strike although Delta maintains a strike would cripple the company and force a shutdown.
Delta is seeking to will cut hourly pay rates by 23.9%, saving the airline $215 million a year. This is in addition to a 15% pilot wage reduction that took effect last year.


Northwest is asking the court today to reduce the wages paid to IAM employees by 19% and the amount paid as sick pay to a rate of 75% of the prevailing wage rate after taking into account the temporary pay reduction. This is in addition to the IAM trying to negotiate a new contract (without success) for nearly 1000 days.
Northwest has stated that if the judge approves the temporary emergency relief, it will postpone its separate 1113(c) motion calling for the bankruptcy court to reject collective bargaining agreements for members of the IAM and other unions.

[markovol]

Not that anyone will be surprised but the judge approved the 1113c today and here is the iam's response posted on the district 143 website.


November 16, 2005
Judge Approves Temporary Cuts for IAM Members
U.S. bankruptcy judge Allan Gropper today approved Northwest Airlines? Section 1113(e) motion for emergency temporary relief that reduces the wages paid to IAM employees by 19 percent and compensation for sick leave to 75 percent of the prevailing wage rate for each day of paid sick leave taken. The judge?s order is effective immediately and will be posted on the District 143 website, www.iam143.org, as soon as it is available.

The Machinists Union did not agree to these terms, but the bankruptcy law does not require union agreement for temporary contract changes. The Machinists Union will not agree to any long-term contract changes unless they are first presented to and ratified by the membership.

The judge also approved temporary agreements between Northwest and its pilots and flight attendants, and long-term agreements with the carrier?s dispatchers, meteorologists and technical support workers. The mechanics were not involved because Northwest already has the ability to set whatever wage, benefit and work rule terms it wants for the mechanic group.

The temporary cost savings suspends the airline?s Section 1113(c) motion to terminate IAM collective bargaining agreements and provide IAM negotiators with valuable time to craft fair and equitable restructuring agreements for IAM members at Northwest.

We are disappointed Northwest has chosen to inflict these hardships on their employees, but we welcome the additional time to achieve a long-term agreement that is acceptable to the membership.

Sincerely and fraternally,

Bobby DePace
President/Directing General Chair
IAMAW Air Transport District 143

[andy]

Just got the call here about it... you beat me to the post!

Ahhh - nothing like starting the day with a $1000 a month paycut. cryaby:
I'd much rather have the 2 to 5% wage reduction that our managers received!

UPDATE: The Payscales page (http://www.simtechonline.com/payscales.htm) has been updated to reflect the new NWA wages. It ain't pretty folks... let's hops this isn;t a trend that will ripple through the industry. Base pay for a NWA tech now starts at just over $13 an hour (at year one).