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The Honolulu Advertiser
Posted on: Thursday, August 18, 2005

Plenty of talk, but no deal yet at Northwest

By Patrick Condon
Associated Press

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MINNEAPOLIS — Northwest Airlines Corp. and the union that represents its mechanics were still trying yesterday to head off a strike, but a union spokesman said "the Grand Canyon" still separates the two sides.

"At this point, with two days and a few hours left, we have the Grand Canyon to span before we're going to be able to make an agreement," said Steve MacFarlane, with the Aircraft Mechanics Fraternal Association, which represents about 4,500 mechanics at the airline.

Representatives for Eagan-based Northwest and the mechanics union have been negotiating in Washington since Monday morning, in the hopes of heading off a strike that could start at 12:01 a.m. EDT Saturday.

"While it appears we are resolving language issues we have not yet tentatively agreed to a complete article," read an update posted on the union's Web site. It was written by Jeff Mathews, the union's contract coordinator, on behalf of the negotiating committee.

The update from Mathews is the first report from inside the negotiations, and it details a flurry of offers and counteroffers between Northwest and AMFA.

A spokesman for Northwest declined to offer comment on the AMFA update, saying only that the airline is happy negotiations are continuing and still hopes to avoid a strike.

Northwest flies an average of 13 daily roundtrips to Hawai'i, an airline spokesman said.

It's unclear what impact a strike could have on Hawai'i's tourism industry. Northwest said it plans to operate a full schedule even if mechanics walk off the job, while AMFA leaders say passengers should expect significant travel disruptions during a strike.

Northwest said on its Web site that it doesn't anticipate a disruption to passengers' travel plans but that it has contingency plans that include rebooking passengers on other Northwest flights or on other airlines' flights.

There already has been an increase of seats coming into the market, which gives Hawai'i some cushion, said Frank Haas, Hawaii Tourism Authority marketing director.

"It's not alarming, but we're always concerned about airlines and their ability to operate profitably to this market," Haas said.

"And we hope however they resolve their issues that it ends up with a healthy and profitable airline."

In the face of operating losses and possible bankruptcy, Northwest is seeking $1.1 billion in annual savings through concessions from its employees, including $176 million from mechanics.

It's asking mechanics to accept a 25 percent pay cut, and wants to lay off about 2,000 mechanics. Northwest also wants to be able to hire contractors to do some of the work now done by AMFA's mechanics, cleaners and custodians.

The AMFA update offered few specifics of the negotiations, but indicated that Northwest is not backing down from its stance that it can't retain the AMFA-represented cleaners and custodians.

Mathews wrote that the union still does not accept the proposed layoffs — but indicated that if it were to be considered, it would have to be much more generous.

Northwest is the only major airline that still has cleaners and custodians on its payroll. MacFarlane acknowledged that the airline's desire to lay off most of them could be a final sticking point.

"The reality is that in any negotiations there are compromises," he said. "Certainly if there's no way to preserve these jobs, than absolutely there has to be some method of providing severance and a bridge to making a living — better than what's being offered now."

Also yesterday, Mesaba Airlines — one of Northwest's regional partners — filed a suit in U.S. District Court in Minneapolis seeking to keep its own mechanics on the job if their Northwest colleagues walk the picket line. Mesaba mechanics also are represented by AMFA.

Mesaba, a subsidiary of MAIR Holdings Inc., serves mainly smaller cities in the Midwest. It claims in the lawsuit that a work stoppage by its mechanics could severely disrupt its operations.