Northwest’s Union Won’t Accept Pay Cuts: Two...

Northwest’s Union Won’t Accept Pay Cuts: Two unions at Northwest Airlines say they will accept layoffs, but not wage cuts, to help reduce expenses at the Minneapolis-based airline owned by Los Angeles investor Alfred A. Checchi. But if the unions accept layoffs, officials said, some Northwest managers should take leaves of absence to lower expenses. According to spokesmen for the Teamsters and the Machinists unions, Checchi prefered 10% wage cuts so he wouldn’t have to reduce flights or other operations. With air travel softening, Northwest--bloated with debt from the June, 1989 leveraged buyout--is under pressure to trim costs.