April 22, 2004
NWA Pilots Offer to Help Company Clear Financial Hurdles
Bloomington, Minn. --- The elected representatives for Northwest Airlines pilots, as represented by the Air Line Pilots Association International (ALPA), unanimously voted today to direct the pilots’ negotiating committee to present NWA management with an investment agreement proposal that would help NWA clear financial hurdles and ensure NWA pilots share in the company’s future success.
The NWA pilot proposal targets a $200 million annual pilot investment through Dec. 31, 2006 in return for appropriate quid pro quos, including stock, and protections to ensure the pilots’ investment is properly used. Pilot leaders expect to propose the agreement to NWA management next week. If an investment negotiation were to fail, ALPA and NWA management would resume traditional Section 6 negotiations.
"Northwest pilots acknowledge our company’s financial difficulties and, as we have in the past, are offering to help our company through a challenging time," NWA Master Executive Council (MEC) Chairman, Capt. Mark McClain said. "Although we believe an investment is warranted, we do not believe pilot cost reductions at the level currently being sought by Northwest management are necessary."
The pilot union has been monitoring and analyzing NWA’s financial condition since November 2002 and concluded all stakeholders need to assist the company to overcome its financial challenges. If an investment negotiation were successful, the pilots’ contract would become amendable in December 2006, after NWA has had an opportunity to negotiate contracts with the other employee groups.
"Other Northwest stakeholders must realize that Northwest pilots can not and will not solve Northwest’s long-term problems by themselves," McClain said. "All stakeholders, including management, must help address our company’s financial challenges."
Founded in 1931, ALPA is the world’s oldest and largest pilot union and represents 64,000 airline pilots at 42 airlines in the U.S. and Canada. Visit the ALPA website at http://www.alpa.org.
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SOURCE: Air Line Pilots Association
ALPA CONTACT: Will Holman, (612) 840-7749 or Hal Myers (717) 805-7929