Sunday, August 27, 2006

Federal judge to rule on Northwest strike threat

Decision, expected Friday afternoon, could open the door for airline's 7,300 active flight attendants to take some type of job action.
NEW YORK -- A federal judge is set to rule Friday on whether Northwest flight attendants can strike, in what may be a make-or-break ruling for the bankrupt airline.
The decision, expected Friday afternoon, could open the door to some type of job action by Northwest's 7,300 active flight attendants, who have threatened to disrupt services as early as 10:01 p.m. EDT on Friday.
On Friday, Judge Victor Marrero in New York federal court is set to hear arguments from both sides on whether a strike would violate the federal Railway Labor Act.
That could delay some Northwest flights and likely cause travelers to start booking with other carriers, a move which would seriously endanger Northwest's plans to exit bankruptcy.
The No. 5 U.S. carrier, which entered bankruptcy protection in September, is looking to save $1.4 billion a year by cutting labor costs. It struck deals with its pilots and ground workers but has not managed to get its flight attendants to agree to pay cuts.
Earlier this month, Northwest got bankruptcy court approval to impose pay cuts on the flight attendants - saving $195 million a year - after the attendants rejected two interim deals with the airline.
The Association of Flight Attendants (AFA), the attendants' union, has since threatened sporadic, unspecified actions if the airline does not negotiate a contract.
Northwest asked the bankruptcy court to block any strike by its flight attendants, but last week Judge Allan Gropper declined, saying the matter was out of his jurisdiction.
On Friday, Judge Victor Marrero in New York federal court is set to hear arguments from both sides on whether a strike would violate the federal Railway Labor Act, which requires that both sides of an airline labor dispute be released from mediation before workers can take job action.
The flight attendants say that by imposing contract terms, the airline has already effectively abandoned mediation.
The Department of Justice filed a brief with the court earlier this week saying a strike should not be allowed, as it would cause serious disruptions to the air transport system.
"It is a clear-cut case," AFA spokesman Ricky Thornton said. "We are quite confident that Judge Marrero will continue to rule in the favor of the flight attendants."
A Northwest spokesman said the airline has a contingency plan to counter any job actions. "It all depends on what the AFA is looking to do," said spokesman Roman Blahoski. "The scope of their actions will determine our actions."
As the slower fall season approaches, a strike could damage the airline, said Helane Becker, an analyst at the Benchmark Co., in a research note.
"We believe random strikes will hurt Northwest because business travelers will likely book away from the airline," Becker wrote.

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