The fourth-largest US airline found itself in the grip of a potentially crippling strike early yesterday as thousands of its mechanics, cleaners and other service employees walked off their jobs rather than agree to painful concessions.
The 5,400-member Aircraft Mechanics Fraternal Association announced its strike against Northwest Airlines shortly after midnight after marathon talks between the union and company management failed to produce agreement on a set of cost-saving measures the airline said were necessary to stave off bankruptcy.
Northwest had been seeking US$176 million worth of concessions, arguing it badly needed to cut operating costs to stay competitive amid skyrocketing fuel prices.
But as soon as a government-imposed 30-day cooling off period expired at 4:01am GMT, the association posted a one-sentence statement on its Web site, saying, "We are on strike against Northwest Airlines."
John Roby, one of the top union officials, said the company's remedy proved too bitter for workers to swallow.
"They wanted to take 53 percent of our jobs away," he told reporters in a brief telephone interview from Minneapolis, Minnesota. "And the remaining people that were left, they wanted them to take a 25-percent pay cut."
Northwest president and CEO Doug Steenland countered by saying his company's offer "was fair to our employees" while recognizing the need for equitable labor costs savings from all labor groups.
He said in a statement the airline was now invoking the federal Railway Labor Act, which allows a transportation company to impose its terms and conditions on striking workers.
But Roby said the move was meaningless because the mechanics were not going to return to their jobs.
He insisted the morale of union members was high, and they were determined to stay on strike until the airline reviewed its position.
Union officials added he could not predict if the breakdown of talks would automatically lead to Northwest's bankruptcy.
However, AMFA national director O.V. Delle-Femine argued the company's unwillingness to compromise belied its intention to seek bankruptcy in order to impose harsh terms on the union with the help of a bankruptcy judge.
"Their goal is to bust our union and all their other unions, one at a time. Northwest wanted a strike, and now they have one," Delle-Femine said.
With its future hanging in the balance, the airline rushed to assure its customers that it intended to conduct its business as usual, the walkout notwithstanding.
"Northwest customers can continue to depend on Northwest for their travel needs," Steenland said. "We intend to operate our normal schedule of domestic and international flights."
Industry analysts pointed out the airline was betting on about 1,500 replacement workers it had quietly lined up in anticipation of the strike.
This contingency plan is credited with helping the company avoid a devastating drop in its share price: Northwest stock ended Friday just 1.8 percent lower.
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