Northwest has already reached agreements with unions representing its other employees including pilots and flight attendants, but so far has failed to reach a deal with the International Association of Machinists.
The group is the largest union at Northwest, representing 5,600 baggage handlers and some other ground staff, and has threatened to strike if the bankruptcy judge allows Northwest to impose terms on the union.
Despite the testy relations, the two sides do agree on what separates them: pensions; severance payments; and higher compensation, either in wages or a lump-sum payment.
Trials had occurred with other Northwest unions, but those groups eventually reached agreements with the airline. The judge overseeing Northwest's bankruptcy reorganization, Judge Allan Gropper, said Monday he was still hopeful that this roadblock would also be overcome.
"I remain of the view that a negotiated settlement is the best settlement," said Gropper, a judge in the U.S. Bankruptcy Court in the Southern District of New York.
Lawyers for Northwest told the court that the airline is eager to resolve the dispute with the baggage handlers, partly because flight attendants are voting through June 6 on their own agreement. The agreements with other unions only go into effect if deals are reached with all labor groups.
Brian Leitch, a lawyer for the airline, told the court that Northwest was losing some $30 million every month, or $360 million on an annual basis, by not having the new labor agreements in place.
Northwest is Michigan's largest air passenger carrier and has a hub at Detroit Metropolitan Airport. The airline is seeking a number of concessions from its workers in order to exit bankruptcy, including $190 million in payroll savings from the baggage handlers' union. Northwest says it has among the highest labor costs in the airline industry.
Sharon Levine, a lawyer for the union, said the group had given the airline what it had asked for and has involved a mediator in hopes of resolving the remaining issues. Levine said labor relations at Northwest had been "more difficult" than at other airlines.
Tom Brickner, a senior official with the baggage handlers' union, testified that the group's members would find it more difficult than other employees to make concessions because many of them were sole breadwinners in their families. Brickner also said those workers had not made as many advances in their compensation as other workers at Northwest.
However, Brickner also sounded a hopeful note, saying: "I believe there are reasonable compromises that can be made on the remaining issues."
Chicago Tribune
Comment Preview