Northwest Airlines said on Wednesday that if it can get temporary savings worth 60 percent of its total USD$1.4 billion labor savings goal, the airline could delay a hearing on its request to void its contracts.
Northwest said it was in talks with unions representing its pilots, flight attendants and ground workers about possibly extending until mid-January the deadline for the request in a bankruptcy court hearing. The hearing on Northwest's motion is set for November 16.
Northwest has asked for court permission to void contracts of work groups that do not yield required savings.
The Professional Flight Attendants Association said it would agree to temporary concessions worth about USD$117 million to the bankrupt airline in exchange for more time to negotiate a new contract.
The proposal, posted in a letter on the union's web site, would allow the airline to achieve about 60 percent of the USD$195 million in average annual savings the carrier says it needs from the flight attendants.
A Northwest spokeswoman declined to say whether the carrier would accept the PFAA proposal.
In exchange for the temporary concessions, the PFAA hopes to win more time to bargain on a permanent contract.
"This difficult decision allows us to retain that control, which remains ours to retain, given the nightmare scenario that could be forced upon us through the bankruptcy court should we not offer realistic relief in return for time to fashion a more satisfactory agreement," PFAA said in a letter to members.
The proposal, which would grant Northwest 60 percent of the total USD$195 million, would cut worker wages 20 percent to 25 percent, reduce international premium pay and change some work rules.
"The proposal is pure and brutal, and is designed to impress upon the bankruptcy court our acknowledgment of the drastic situation Northwest Airlines faces," PFAA said.
Northwest, which filed for bankruptcy protection from creditors in September, has said it must reduce its labor costs to achieve USD$2.5 billion in overall savings to the carrier.
Northwest, along with other major US airlines, has been battered by soaring fuel costs, weak revenue and low-fare competition. The carrier hopes to use its court protection to restructure into a leaner, more competitive operation.
