A judge told pilots and flight attendants that they have until Wednesday to reach new contracts with Northwest.
Northwest Airlines pilots and flight attendants won a reprieve Friday from a bankruptcy judge, who gave them until Wednesday to negotiate new contracts with the airline.
U.S. Bankruptcy Judge Allan Gropper has the power to reject existing contracts and allow Northwest to impose new pay rates, but he gave both sides a second extension because of progress in talks this week.
"We're glad the judge hasn't given up on us yet. It's been a long and arduous process for our members and our union negotiators," said Peter Fiske, a spokesman for the Professional Flight Attendants Association (PFAA).
Northwest wants annual concessions worth $195 million from the flight attendants. The union said it has met that target, but Fiske said the parties are still battling over Northwest's desire to hire foreign workers to staff some of its international flights. They also disagree on job protection and severance language in the event of a merger or sale.
The Northwest branch of the Air Line Pilots Association (ALPA) has agreements in principle on job protections, but spokesman Will Holman said Friday that the parties remain "far apart" on many economic issues. The company wants $358 million in annual savings from its pilots in this round of bargaining. The unions said negotiations will be held in New York.
In a statement, Northwest said it appreciated Gropper's willingness to give the parties more time to negotiate, but the carrier stressed that "achieving the needed labor cost savings as soon as possible is critical to the success of Northwest Airlines."
The airline continues to lose about $3 million per day, and it is attempting to reduce its labor costs by $1.4 billion a year.
Liz Fedor 612-673-7709

As you read this blog entry, angel investors and start-ups are flocking to Madison, Wisconsin for the annual Wisconsin Early Stage Symposium and the Mid West Health Care Venture forum.
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