Search

Northwest and Mechanics Reach Accord

  • 10-10-2006
Northwest Airlines, which is operating under bankruptcy protection, said yesterday that it had reached a tentative labor deal with the union representing its mechanics, who have been on strike for more than a year.þþA ratification vote by members of the union, the Aircraft Mechanics Fraternal Association, will be held within 30 days, Northwest said.þþThe deal would allow striking employees to accept layoff status and receive one week of layoff pay per year of service, up to five weeks. Alternatively, employees may leave Northwest and receive one week of separation pay a year of service, up to a maximum of 10 weeks.þþThe positions of current Northwest mechanics will not be affected by the proposed agreement, the airline said. But striking employees who accept layoff status may bid on open technician positions.þþThe deal maintains the $203 million in annual labor savings that Northwest has said it needs from employees represented by the mechanics’ union.þþNorthwest mechanics walked off the job in August 2005 after failing to reach a contract with the airline. Northwest responded by replacing the workers and outsourcing some jobs.þ

Source: NY Times