Monday, September 12, 2005

Turbulence at Northwest

Talks fail; N'west says it will replace workers

By Joel J. Smith / The Detroit News

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Northwest Airlines will begin permanently replacing all its 4,430 striking mechanics and aircraft cleaners on Tuesday as last-minute negotiations to reach a settlement fell apart over the weekend.

Leaders of the Aircraft Mechanics Fraternal Association said Sunday they will continue picketing, hopeful Northwest will realize the replacement workers can't handle the job and come back to the bargaining table with a better offer.

Northwest said that's not likely to happen.

If striking workers don't reclaim their jobs by Tuesday, Northwest will move ahead without them. After that, they could come back only if there was an opening, something Northwest said could take months or years.

Detroit Metropolitan Airport's largest carrier, Northwest will begin hiring permanent replacement workers Tuesday, selecting from the pool of 1,200 licensed mechanics temporarily hired to fill in for the strikers and any current mechanics who choose to cross the picket line to reclaim their job.

Negotiations ended at 1:15 a.m. Sunday after Northwest refused to budge on an improved severance package for those workers eliminated and new work rule conditions for the remaining employees. The AMFA negotiators had agreed this weekend to the elimination of 3,181 of its jobs, leaving 1,080 mechanic jobs at Northwest.

"Out of the $1.4 billion in labor cost savings target, the company let this opportunity skip away over $10 million (severance costs), clearly reflecting the fact that the issue is not money but the company is intent on driving this work group into the ground and keeping the heel of its boot on each of our throats," said Jeff Mathews, chief negotiator for AMFA, on Sunday afternoon.

AMFA went on strike Aug. 20 after Mathews and his negotiating team rejected Northwest's last offer of $176 million in concessions, but would have guaranteed about 2,700 union jobs and a severance package of up to 26 weeks with health benefits.

When Northwest came back to the bargaining table Thursday, the carrier told AMFA its financial situation had deteriorated as a result of soaring fuel prices and the airline would now need $203 million in cutbacks, costing hundreds of additional jobs. The severance package was reduced to 16 weeks.

Mathews said the AMFA negotiators considered walking, but decided to work on an agreement they could take back to their membership for a vote. He said that never materialized.

Northwest has lost $3.6 billion since 2001 and expects to lose at least another $1 billion in 2005. Rising fuel expenses will cost Northwest $1.1 billion more in 2005 than a year ago.

When AMFA walked off the job, Northwest began using 1,200 temporary replacement mechanics, 350 managers and hundreds of aircraft cleaners from third-party vendors. At the time, Northwest said no matter what the outcome of the strike was, they would continue using third-party vendors to supply the airplane cleaners along with mechanics who work at sites other than its two major hubs in Detroit and Minneapolis.

While the replacement workers got off to a slow start, resulting in numerous flight delays, Northwest said that within a week of the strike, the airline was back to operating at acceptable levels.

The success of the replacement workers and the fact no other Northwest unions honored AMFA's picket lines was a crushing defeat for the strikers.

Even today, Northwest hasn't given up on luring back some of the striking mechanics. Northwest has been telephoning them over the past week, encouraging them to report back to work.

Steve MacFarlane, assistant national director of AMFA, said he's aware of the telephone calls, but doesn't know a single striker who has accepted the offer. Six members have crossed the picket line, he said.

"The phone calls have done nothing but give our guys the opportunity to hang up midstream on them or tell them what they think of Northwest," MacFarlane said Sunday. "For us, we'll stay on the picket line and watch Northwest slowly but surely decay into an operation that can't be sustained. We've said all along that Northwest can't do it without us. We still believe that."

MacFarlane said that Northwest clearly never intended to reach a deal with AMFA.

"This is an ugly mess," he said. "I cannot believe Northwest management has maneuvered this company into this position."

You can reach Joel J. Smith at (313) 222-2556 or jsmith@detnews.com.