Marathon negotiations between Northwest Airlines and the unions representing its pilots and flight attendants are at a crucial point this week, raising the possibility that a bankruptcy judge will cancel existing labor contracts on Friday and set the stage for threatened strikes.
If that happens, the workers would enter uncharted legal territory. The company contends that a strike in bankruptcy over imposed contracts is prohibited by a federal law governing airline workers. The unions say they couldn't be forced to work after their contracts are voided.
When U.S. Bankruptcy Judge Allan Gropper opened a Northwest labor trial on Jan. 17, he strongly advised the unions and management to solve their differences in negotiations rather than force him to decide whether to reject existing contracts and allow Northwest to set new terms.
A month later, the unions and management still are battling over the outsourcing of jobs and the severity of concessions. The law requires Gropper to issue a labor ruling by Friday.
The showdown between the parties escalated Monday when the pilots and flight attendants started taking strike authorization votes, but there still is time to avert a strike and gain more time for bargaining.
The unions and the airline could tell the judge that they want to extend the negotiations, or the judge could simply direct the parties to continue talks for a set number of days.
Will Holman, a pilots union spokesman, said Tuesday that there has been no decision on an extension. But two airline sources familiar with the talks said that the parties appear to be leaning that way because they want to negotiate deals and avoid a new court battle over the right to strike.
James Sprayregen, lead counsel in the United Airlines bankruptcy case, said "a strike is not an available option" if the judge voids existing contracts and Northwest imposes new pay rates and work rules.
The Northwest and United bankruptcy cases are similar because both airlines filed motions seeking to nullify their labor contracts if the unions didn't agree to new contracts.
Labor negotiations for U.S. airlines and railroads are governed by the Railway Labor Act. "Its first policy is to avoid interruptions to rail and air transportation," said Jack Gallagher, veteran Northwest labor attorney.
Continue Reading This Story at the MSP Star Tribune
Comment Preview