NW Flight Attendands File Suit...

[FlyingPhotog]

The union representing Northwest Airlines Corp.'s flight attendants said it has sued the airline for what it calls the improper training of replacement workers.
The Professional Flight Attendants Association (PFAA) filed suit this week in U.S. District Court against Eagan-based Northwest, seeking to block the airline from trying to train replacement workers on board existing flights.

Guy Meek, PFAA president, said in a statement that the union's contract prohibits anyone but existing flight attendants to perform cabin service operations.

"The company is effectively asking our members to violate their own agreement by allowing non-employee trainees to engage in our work," said Guy Meek, president of PFAA in a statement. "To place these replacement workers on board our planes and expect us to train them is unconscionable."

http://biz.yahoo.com/bizj/050722/1138496.html?.v=1

Just what NW doesn't need, another labor dispute.

[MikeD]

Just what NW doesn't need, another labor dispute.

Man, you aren't kidding. I don't think any of the legacies can afford a major labor dispute these days. It's bad enough that NW has advertised for replacement FAs and mechs. With the impasse declared and a 30 day cooling off period announced between labor and management, we'll see where this goes.

It really is a shame to see the proud carriers going through this kind of thing. Never would I have thought United, for example, would be in the position it's in now.

[bbuse]

Man, you aren't kidding. I don't think any of the legacies can afford a major labor dispute these days. It's bad enough that NW has advertised for replacement FAs and mechs. With the impasse declared and a 30 day cooling off period announced between labor and management, we'll see where this goes.

Unfortunately the CEO at NWA appears to want a showdown with labor instead of working with them to settle their differences. I tend to side with labor in these disputes since they realize that NWA is in trouble and they are willing to make concessions, but they also want management to put together a sound business plan to help NWA that involves more than JUST labor cost cuts. They also want to see NWA management give up some of their compensation, along with labor giving up some of theirs. The NWA CEO makes something like $3 million a year and so far hasn't given up any of his compensation.

[chrisburns]

Unfortunately the CEO at NWA appears to want a showdown with labor instead of working with them to settle their differences. I tend to side with labor in these disputes since they realize that NWA is in trouble and they are willing to make concessions, but they also want management to put together a sound business plan to help NWA that involves more than JUST labor cost cuts. They also want to see NWA management give up some of their compensation, along with labor giving up some of theirs. The NWA CEO makes something like $3 million a year and so far hasn't given up any of his compensation.

Yes, almost nobody at NW likes Steenland. However, he has given up some of his pay, all of management did along with the pilots.

However, the mechanics are being stupid, NW offered them a very good deal, still making upwards of about $75,000 a year plus some other benefits and they rejected it, its starting to look a lot like DALPA.

[FlyingPhotog]

Yes, almost nobody at NW likes Steenland. However, he has given up some of his pay, all of management did along with the pilots.

However, the mechanics are being stupid, NW offered them a very good deal, still making upwards of about $75,000 a year plus some other benefits and they rejected it, its starting to look a lot like DALPA.

Maybe the investors or board of directors needs to throw his butt to the curb, or at least cut his pay by about 2/3.

[MikeD]

I tend to side with labor in these disputes since they realize that NWA is in trouble and they are willing to make concessions, but they also want management to put together a sound business plan to help NWA that involves more than JUST labor cost cuts.

I believe this statement of yours is key, in the sense that JUST labor cuts don't work. I find it akin to, say, owning a restaraunt. If your revenue/business is getting slow, do you take paycuts from your chef and wait staff? No. You make changes to the menu, the decor.....ie- the business model, in order to attract the customer base back, IMHO. Paycuts from labor may help solve the short-term problem, but the underlying problems that got the airline where it is WILL come back. What then? Pretty soon everyone, except the six-figure CEO, will be working for free, with all the concessions. What then?

[bbuse]

I believe this statement of yours is key, in the sense that JUST labor cuts don't work. I find it akin to, say, owning a restaraunt. If your revenue/business is getting slow, do you take paycuts from your chef and wait staff? No. You make changes to the menu, the decor.....ie- the business model, in order to attract the customer base back, IMHO. Paycuts from labor may help solve the short-term problem, but the underlying problems that got the airline where it is WILL come back. What then? Pretty soon everyone, except the six-figure CEO, will be working for free, with all the concessions. What then?

I agree with what you said here!!

Management needs to make sound business decisions. An example of a BAD business decision that is hurting NWA right now was their decision to not hedge fuel. CEO Doug Steenland has stated that NWA management believed the war with Iraq would lead to lower oil prices and hedging fuel would have been irresponsible. History of past wars and conflicts leading to higher oil prices should have proven the idea of lower oil prices to be wrong.

[chrisburns]

I agree with what you said here!!

Management needs to make sound business decisions. An example of a BAD business decision that is hurting NWA right now was their decision to not hedge fuel. CEO Doug Steenland has stated that NWA management believed the war with Iraq would lead to lower oil prices and hedging fuel would have been irresponsible. History of past wars and conflicts leading to higher oil prices should have proven the idea of lower oil prices to be wrong.

The end result though, as like the gulf war was lower oil prices after

I dont think that NW was counting on the war lasting this long.