Northwest under gun to cut costs (NWA using UAL as a model)

[Bozita]

The race to the bottom continues.

Article is frontpage below the fold.

http://www.freep.com/money/business/nwa1e_20050601.htm

Northwest under gun to cut costs

BY JEWEL GOPWANI
FREE PRESS BUSINESS WRITER

June 1, 2005


Now it's Northwest Airlines' turn.


Because its competitors have found ways to shed labor costs, Detroit Metro Airport's dominant carrier now has the highest labor costs in the industry and is one of the last to extract hundreds of millions of dollars in concessions from its union contracts.


The spotlight has been on United Airlines, which has gained approval to hand off its pension bills to the government and negotiated cost-saving contracts with its unions through bankruptcy court.


Northwest, which seeks $1.1 billion in concessions from its seven unions, has told its employees to look toward United as an example of what's to come.


"As United continues to restructure itself, the changes it experiences clearly will impact NWA," Northwest said in its employee newsletter in December.

more...

[Oreo]

1. They just cut pretzels from flights to save $2 million

I'm sure Bush would be more willing to fly NW now that they don't have pretzels.

[Bozita]

2. Check the link. You're gonna be paying for more than pretzels

How about a bag check-in fee?

[amandabeech]

3. Time to check out Midwest Airlines.

n/t

[On the Road]

4. I Think It's So Funny Northwest Renamed Themselves

"NWA". Isn't anyone in corporate branding aware of rap music? They are seriously lacking in "attitude" to call themselves by those initials.

[Bozita]

5. ABC WorldNews led with the looming crisis in private pension funds

scary stuff

pensions of 45 million Americans at risk

GM and Ford owe more to their employee pension funds than the corporations are worth.