Government mediators sent Northwest Airlines and the union representing its mechanics back to the negotiating table, denying the carrier's request to declare an impasse, the union said on Friday.

The ruling by the National Mediation Board was a victory for the Aircraft Mechanics Fraternal Association, which on Wednesday opposed a Northwest proposal to be released from mediation. The decision also denied the parties a 30 day cooling-off period that could have set the clock ticking for a potential strike.

Northwest complained to the board last month that after six months of negotiations the union remains unwilling to agree to a proposal.

AMFA, however, argued it was premature to declare an impasse, saying it preferred further collective bargaining on worker concessions.

"We were planning on it all along," said Jeff Mathews, AMFA national contract coordinator for Northwest. He said negotiating meetings are scheduled through August.

The AMFA contract became amendable on May 11, but talks have been in progress since late last year.

The airline industry has been battered by soaring fuel costs, weak revenues and low-cost competition.

Northwest and its mechanics have been negotiating a deal that would save the company USD$176 million annually as part of the company's bid to cut costs by USD$1.1 billion.

Northwest said it looks forward to continuing negotiations but reiterated its pressing need to lower costs.

"Because Northwest now has the highest labor costs in the airline industry, it is imperative that we reach a concessionary labor agreement with AMFA as soon as possible," the airline said in a statement.