Northwest, Mechanics Resume Contract Talks

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alks resumed Friday at Northwest Airlines, the nation’s fourth-largest airline, after the company’s mechanics union rejected the airline’s latest contract offer Thursday, the Associated Press reported.

Union members voted in July to give their national director, O.V. Delle-Femine the option to call a strike if an agreement with Northwest could not be reached, AP said. At issue are job, wage and benefit cuts.

Northwest told AP it “had little hope of reaching a deal” before the Aug. 20 walkout date.

The Aircraft Mechanics union represents 4,200 mechanics, aircraft cleaners and custodians who work for the airline, and has been adamant about preserving member jobs after its numbers at Northwest were cut in half over five years of layoffs, AP said.

According to AP, the airline has said it must cut annual labor expense by $1.1 billion, including $176 million from the mechanics union to avoid a bankruptcy filing. The union told AP the company didn’t budge during negotiations from its demand to cut all 600 cleaners and custodians and nearly 1,250 mechanics.

Northwest has also sought a 26% pay cut for remaining mechanics, while the union offered 16%, AP said.

Meanwhile, the union representing UPS Inc.'s pilots told the company Tuesday that it would not fly cargo transferred from Northwest Airlines Corp. if the airline’s mechanics go on strike, AP said.

Northwest expects to operate a $107 million plan to maintain a full flight schedule if a strike occurs, and has not asked UPS to carry any cargo in event of a strike, reported AP.

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