IAM at Northwest bracing for possible layoffs
Tony Kennedy
Star Tribune
Wednesday, July 11, 2001
The union representing non-mechanic ground workers at Northwest Airlines is bracing for possible layoffs, but union leaders haven't been told specifics, the
International Association of Machinists (IAM) said Tuesday.
IAM spokesman John Massetti said Northwest recently told the union to expect "minimal" layoffs. Later, IAM officials heard from a reliable management source that
the airline was considering shutting down one of its reservation centers, Massetti said.
Northwest has reservation centers in Minneapolis-St. Paul; Chisholm, Minn.; Honolulu; Long Beach, Calif.; Seattle; Garden City, N.J.; Baltimore, and Tampa, Fla.
"If they close a reservation center, we don't consider that minimal," Massetti said.
Northwest spokeswoman Kathy Peach declined to comment.
The decision-making process about staffing cuts at Northwest still appears to be fluid. Massetti said the IAM was scheduled to meet with the company about staffing
early next week. But airline management recently canceled the meeting and no new meeting date was set, he said.
Throughout Northwest, fears of job cuts have intensified since June 24. That's when CEO Richard Anderson told employees that managers were involved in detailed
discussions about cutting expenses, including possible staff reductions.
"We are examining every bit of costs," Anderson told employees.
The cost review is the second at NWA since February. In the first action, about 100 management jobs were cut to help trim $209 million in annual expenses. The
austerity measures are in response to a dramatic, industrywide decline in high-yield business travel.
The slump, coupled with high fuel prices, is expected to produce a first-half net loss at Northwest of at least $221 million. Northwest reports first-half results late next
week.
Elsewhere at Northwest, a group of flight attendants in training were told last week that there would be no jobs for them immediately after their program, said Anne
Meyer, vice president of Teamsters Local 2000, the union representing Northwest flight attendants.
Meyer said the announcement was unusual because successful trainees at Northwest typically are hired right away. She said that about 80 percent of the class of more
than 100 trainees agreed to finish the program and wait for jobs later.
Meyer said Local 2000 has not been approached by Northwest about staff reductions among active flight attendants.
-- Tony Kennedy is at tonyk@startribune.com .
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