The mechanics union at Northwest Airlines has increased the threat of a strike or lockout at the carrier by requesting an end to federally mediated contract talks.
The request came nearly a month after a similar attempt by the airline to end negotiations -- which was opposed by the Aircraft Mechanics Fraternal Association -- was rejected by the National Mediation Board.
The board ordered both sides to continue their discussions indefinitely.
A spokesman for Northwest had no comment on the decision by the union to seek an end to mediation, which would trigger a 30 day cooling off period before a strike or lockout could occur.
Any job disruption under the federal Railway Labor Act, which governs airline workers, could be stopped temporarily by presidential order.
There is no timetable for a response from the board, and it is unclear how its members would view the union's request.
With its finances worsening and facing possible bankruptcy, Northwest is trying to cut its annual costs by USD$1.1 billion. It is seeking USD$176 million in givebacks from mechanics, but said last week that the labor group's latest offer provided less than half of the needed savings.
The union said management has not "budged" from its initial economic proposal and members have concluded the airline is refusing to take negotiations seriously. The labor group said it has been asked to assume an unfair share of concessions.
Under Northwest's plan, nearly half of the more than 4,000 machinists would lose their jobs. Hundreds of aircraft cleaner positions would also be cut. Remaining mechanics would take a pay cut of up to 26 percent.
"The truth is that Northwest's biggest problems today are the high cost of fuel and under-funded pensions, not labor," said O.V. Delle-Femine, the national director of the mechanics union.
Northwest said on Friday that it is facing USD$2.5 billion in estimated pension payments for 2006 and 2007.
The company has said it could face bankruptcy if it cannot cut costs enough or stretch out pension payments over a longer period.
