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Jun28
Union Wants To Tie Management Bonuses with Flight Attendants
Tired of your management team earning bonuses while you get nothing?  Tired of your airline not making money, you losing a fifth of your salary, and your management team earning stock options?  Union leaders at Northwest Airlines want to tie stock options and bonuses of the management team with those employees.  If flight attendants, pilots, grounds workers, and other employees don't get stock options or don't get a bonus, why should the management team get one?   Makes sense to me...
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711.jpgAs Northwest Airlines and its flight attendants union run out of time to negotiate a new contract, the union has asked the airline to award management raises, bonuses and stock options only when it awards union members similar incentives.

Union leaders said negotiators for Northwest, Detroit Metro Airport's largest carrier, rejected the proposals that would have linked executive compensation to that of union workers.

The union proposes that, if union members don't receive raises or stock options, neither would management.

Northwest spokesman Kurt Ebenhoch, said the airline does not comment on negotiations, but he added, "we remain committed to reaching a consensual agreement" with the flight attendants union.

Negotiators from Northwest and the union are slated to conduct a conference call today and meet in person Thursday to reach a deal before a Friday deadline, said Andy Damis, secretary/treasurer of the Professional Flight Attendants Association, which represents 9,300 working and furloughed flight attendants.


The union's suggestions, Damis said, result from worries that flight attendants would be stuck in a long-term concessionary contract and would see little windfall during more prosperous times, even with a profit-sharing plan.

The airline, which is reorganizing under Chapter 11 bankruptcy protection, seeks $195 million in annual concessions from its flight attendants, the last group the airline needs to negotiate with.

"We're not asking for any pay raises. We just want to make sure nobody else gets them either," Damis said. "It's about fairness. "

During the latest round of talks, the union has also asked for more specific changes, such as reinstating nominal pay flight attendants receive when they're on the ground during delays and scaling back cuts in vacation time.

The requests regarding executive compensation seem unrealistic to Gary Chaison, professor of management at Clark University in Worcester, Mass.

"But it's very symbolic at the same time," he said. "It's a very potent argument that goes along with concessions."

In a message to workers Friday, Northwest CEO Doug Steenland acknowledged the rift between employees and management.

In the message, Steenland said, ". . . we realize that no one wanted to see their pay or benefits reduced, and we recognize that this has created among many of our employees a level of anger and distrust. Solving that problem won't be easy. From now on, creating an atmosphere of openness and collaboration will be one of our top priorities."

Detroit Free Press


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