November 7, 2005 - “The immediate sacrifice being asked from our members is unfortunate and regrettable,” said Bobby DePace, President of International Association of Machinists and Aerospace Workers (IAM) District 143 following Northwest Airlines’ bankruptcy court request to impose temporary, emergency contract terms on IAM members.
Northwest is asking the court to reduce the wages paid to IAM employees by 19% and the amount paid as sick pay to a rate of 75% of the prevailing wage rate after taking into account the temporary pay reduction. This amounts to 60% of their final cost savings target, a goal the IAM does not agree with. The company is asking to make these temporary changes effective November 16, 2005.
Northwest has stated that if the judge approves the temporary emergency relief, it will postpone its separate 1113(c) motion calling for the bankruptcy court to reject collective bargaining agreements for members of District 143 and other unions.
“The postponement of the 1113(c) trial allows us time to craft long-term solutions to Northwest’s financial problems,” said DePace. “Northwest’s crisis took years to develop and its problems will not be solved overnight. The IAM intends to utilize any additional time to obtain the best possible outcome for our members.”
The negotiations required to achieve a long-term resolution will continue even if temporary modifications are imposed. The temporary modifications would only be in effect until a date determined by the judge, or he rules on an application to reject the agreements, or permanent modifications to the agreement are negotiated, ratified by the membership and approved by the bankruptcy court.
Complete explanations of both the Sections 1113(c) and 1113(e) processes and a copy of Northwest’s 1113(e) filing are available on the District 143 website, www.iam143.org.
