May 31, 2007 - Northwest Airlines (NWA) today begins operating outside of bankruptcy court protection for the first time in 20 months. While the process has been full of sacrifices and difficult decisions, IAM members fared far better than other employees at the troubled carrier.
The IAM is the only union at Northwest to successfully negotiate a replacement defined benefit pension plan for our members. In accordance with IAM collective bargaining agreements, Northwest will begin contributing to the IAM National Pension Plan upon emergence from bankruptcy. Important information about the plan is available at www.iamnpf.org.
Many observers believed that bankruptcy marked the end of the line for the carrier’s obligation to repay employees for concessions granted in 1992. The IAM continued to vigorously press its case throughout the bankruptcy court process. While it was the IAM who ultimately won this case, the victory benefits all Series C stock holders, including former IAM members and flight attendants.
The IAM also represented retirees throughout the bankruptcy process, securing substantial reductions in the cost of medical insurance premiums. As a result, IAM retirees will pay only 2.5 percent of the cost of medical premiums. Retirees from other employee groups will pay from 5 percent to 25 percent of their insurance premiums for the same coverage.
