Northwest Air Flight Attendants Reject Contract Again By Jeff Bailey, New York Times, 08/01/2006 For the second time in less than two months, flight attendants at Northwest Airlines overruled their union leaders, rejecting a proposed contract that includes concessions and threatening a strike that could put Northwest out of business. The contract calls for $195 million in annual concessions. The vote, which was announced yesterday, was 3,266 to 2,637, the union said, or about 55 percent against the contract. The airline has about 8,700 flight attendants. Flight attendants, along with other work groups across the industry, are upset about facing pay cuts after seeing many airlines return to profitability in recent quarters. Managements contend that the cuts are needed for the carriers to survive and to compete against lower-cost airlines. Either side — the union or Northwest executives — could overplay its hand with disastrous consequences. A strike could halt Northwest's operations and, if lengthy, force its liquidation. The move by the flight attendants appeared to take both union leadership and company management by surprise. It throws uncertainty into a bankruptcy process that had been moving swiftly since Northwest filed for protection from creditors last September. "Never a dull moment," said Bill Mellon, a Northwest spokesman. Northwest plans to impose concessions on the flight attendants, beginning today, which will reduce benefits, lengthen working hours and, to a lesser extent, cut pay of flight attendants. The carrier earlier received bankruptcy court approval to impose new work conditions, but it did not use that authority until the vote by the flight attendants. About 60 percent of the $195 million in concessions had already been put into place under a temporary agreement with workers late last year. It was in essence a down payment on concessions that the union and the airline had agreed to negotiate. Leadership of the union, the Association of Flight Attendants, was huddled last night weighing options. Corey Caldwell, a spokeswoman, said: "We would like to meet back with the company. It would be great if we could meet with management." The union, however, said it could begin unannounced work stoppages at various Northwest operations, or actually call a full strike, if the concessions are imposed. In early June, the attendants rejected an earlier proposed contract, with about 80 percent voting no. Then they switched unions, abandoning the Professional Flight Attendants Association, and the new union began renegotiating. Concessions on each proposed contract were equal to $195 million a year. The second deal salvaged some pay and benefits in exchange for switching to longer hours sooner in the contract — 100 hours a month, as opposed to a former schedule set at about 75 hours a month. Northwest has been sensitive to the notion that, even without the full concessions from its workers yet in place, it is on the verge of being profitable. It invited reporters on a conference call last week to argue that monthly results it files with the bankruptcy court are often reported in a way that makes the carrier's results look better than they really are. And executives have often talked about the danger of rising fuel prices. Contracts already ratified with pilots and other workers are contingent on the flight attendants agreeing to similar concessions. Mr. Mellon, the spokesman, said the flight attendants union had agreed to give Northwest 15 days' notice of any work stoppage and that the company would ask the bankruptcy court to enjoin any strike. "We believe it's illegal," he said. The union says it believes it has the right to strike. Failing to wrap up labor agreements could also keep Northwest from participating in a merger with another airline. The company will not comment on merger possibilities. "Northwest must continue to move forward with its restructuring efforts," said Michael J. Becker, senior vice president for human resources and labor relations.