Northwest Seeks Court OK for Pay Cutbacks

Northwest Airlines Corp. couldn’t get its baggage handlers to agree to pay cuts, so it’s taking them to court.

Northwest wants a judge to throw out its union contracts with baggage handlers and other ramp workers. A trial on that request begins today in U.S. Bankruptcy Court in New York.

Similar trials for Northwest and Delta Air Lines Inc. pilots and Northwest flight attendants ended without a ruling by the judge or, in Delta’s case, by arbitrators. But the threat of a ruling prompted the unions and airlines to make a deal.

Mediated talks between the International Assn. of Machinists and Northwest last week in Minneapolis quickly fizzled, and there were no new talks over the weekend.

This year 60% of those workers rejected Northwest’s proposed pay cuts and layoffs, and authorized a strike in case the bankruptcy judge allows Northwest to impose its terms. The union believes a strike by its 5,600 members could shut down the airline.

In statements, Northwest said it preferred a negotiated agreement but would “take whatever actions are required” to meet its labor cost reduction targets. The airline said it believed that a strike would be illegal, and if the union attempted a walkout, it would seek an immediate injunction.

Northwest pilots have approved a 5 1/2 -year wage-cutting deal. Most other Northwest ground workers, including reservations agents represented by the machinists’ union, are under cost-cutting contracts, and flight attendants are voting through June 6 on wage cuts. Northwest is hoping to save $1.4 billion a year in labor costs.