March 14, 2004
NWA Pilots’ Elected Reps Recommend Investment Strategy
St. Paul, Minn. --- The elected pilot representatives for Northwest Airlines, as represented by the Air Line Pilots Association International (ALPA), voted unanimously today to recommend to its membership that the group consider an investment agreement with NWA management.
The union has been monitoring and analyzing NWA’s financial condition since November 2002, and the leadership’s recommendation comes after six days of deliberations at its Second Quarter Master Executive Council (MEC) meeting in St. Paul, Minn. Pilot leaders concluded that NWA has financial challenges that need to be addressed and that an investment negotiation has the potential to provide a better result for all parties than a traditional negotiations process.
The pilot union leadership recommended an agreement that targets a $200 million annual pilot investment. The duration of the agreement would be through Dec. 31, 2006. The agreement would include appropriate quid pro quos and protections to ensure that pilots share in the company’s future success and that any pilot investment is used properly. If an investment negotiation were to fail, ALPA would resume traditional Section 6 negotiations.
"We believe an investment by NWA pilots can have a meaningful effect to help ensure NWA’s future success while also providing future benefits for NWA pilots," Master Executive Council (MEC) Chairman, Capt. Mark McClain said. "Although we believe an investment is warranted, we do not believe pilot cost reductions of the magnitude being sought by Northwest management are necessary."
Detailed information regarding the possible investment agreement will be presented to the NWA pilot group over the next few weeks at informational pilot road shows. Union leaders will evaluate pilot feedback and give direction to the negotiating committee at an April MEC meeting.
ALPA and NWA management began contract negotiations in July 2003 and the pilot contract became amendable in September 2003.
Founded in 1931, ALPA is the world’s oldest and largest pilot union and represents 62,000 airline pilots at 42 airlines in the U.S. and Canada. Visit the ALPA Web site at http://www.alpa.org.
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SOURCE: Air Line Pilots Association
ALPA CONTACT: Will Holman, (612) 840-7749, Hal Myers (717) 805-7929