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The Airline Pilots Association (ALPA) today ratified an agreement
with Northwest Airlines (NYSE:NWA) on contract issues and work rules
that will help improve the airline's operational performance and
reliability. The vote by the Northwest ALPA Master Executive Council
(MEC) confirms a tentative agreement reached August 1, 2007.
"We're pleased that the MEC has agreed to this important step that
will help Northwest Airlines return to its historical status as one of
industry's most reliable airlines," said Doug Steenland, Northwest
Airlines president and chief executive officer. "We look forward to
continuing to collaborate with our pilots and their representatives to
drive operational improvements and better serve Northwest's customers.
We know we have to earn our customers' business and trust every day,
and we are confident that this agreement, combined with other steps we
are aggressively implementing, will help us achieve that."
As previously announced, the agreement ratified today implements
contractual changes on work rules pertaining to international flying,
as well as the settlement of an outstanding grievance, in exchange for
the reinstatement of premium pay of 50 percent for all pilots flying
more than 80 hours a month, effective Aug. 1, 2007. The agreement is
economically neutral, with the cost to Northwest of the premium-pay
element offset by the value of the work-rule changes and grievance
settlement.
Northwest wants to continue discussions with each of its unions to
explore cost-neutral ways to improve employees' work environment, and
the airline also has established a Summer Reliability Incentive
Program under which all contract employees, including pilots, will
receive incentive pay equal to 15 percent of eligible earnings, up to
$1,000, for achieving appropriate attendance standards from Aug. 4
through Sept. 3, 2007, inclusive.
Northwest Airlines is one of the world's largest airlines with
hubs at Detroit, Minneapolis/St. Paul, Memphis, Tokyo and Amsterdam,
and approximately 1,400 daily departures. Northwest is a member of
SkyTeam, an airline alliance that offers customers one of the world's
most extensive global networks. Northwest and its travel partners
serve more than 1,000 cities in excess of 160 countries on six
continents.
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