The IAM, which represents about 14,000 Northwest employees, has been aggressively opposing the airline's drive to shift the work of up to 5,000 of its members to a new company called GroundCo. The outsourcing of jobs was the chief stumbling block in contract negotiations.Northwest is attempting to reduce its annual labor costs by $1.4 billion, and wants $190 million to come from the IAM, which represents employees such as customer service agents and clerical and equipment service workers.
In mid-November, a bankruptcy judge imposed 19 percent temporary pay cuts on IAM members, and the flight attendants and pilots unions agreed to double-digit interim cuts to buy more time to negotiate long-term contracts.
But all three unions have little time left to reach consensual agreements and win ratification votes from rank-and-file members.
On Tuesday, Northwest management will go before a bankruptcy judge in New York City to start making its case for abrogating existing labor contracts. The judge will make a decision on whether to nullify the contracts within 30 days of the trial's start.
Members will vote yes or no on the contract offer. There also will be a strike vote connected to the ratification vote, DePace said. If IAM members reject the contract offer and the judge abrogates the existing contract, then the IAM might strike if the members approve. Northwest has said that it would be illegal for its unions to strike if contracts are nullified and new terms imposed.
Star Tribune (Minneapolis/St. Paul)
If a strike took place, it would not be good for the airline. It could possibly be the end of NWA if it took place.
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