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Published on 2/8/2006 in the Prospect News Distressed Debt Daily.

Northwest flight attendants' union objects to requested extension of interim bargaining agreement

By Caroline Salls

Pittsburgh, Feb. 8 - Northwest Airlines Corp.'s request to extend the expiration date of its interim collective bargaining agreement with the Professional Flight Attendants Association drew objection from the flight attendants' union, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

According to the objection, Northwest has not satisfied its burden of proof in connection with the requested extension.

Also, the flight attendants said the court should not grant Northwest any further interim extensions of the agreement because its bargaining tactics are in violation of bankruptcy code.

The union said the company has failed to provide it with any credit or value in connection with the union's voluntary 20% pay reduction, voluntary and involuntary furloughs and for the future retiree medical; attributed valuations of head count reductions at less than full value without any explanation; failed to value the cost of any proposed buyout of incursions into CBA scope provisions; and refused to consider union proposals that would have provided the same economic value using Northwest's own valuations.

As previously reported, Northwest wants to extend the collective bargaining agreement until a consensual permanent agreement takes effect. The interim agreement is set to expire on Monday.

According to the motion, extending the flight attendants' agreement for this brief period will put the interim agreement for all three collective bargaining unions - the flight attendants, the Air Line Pilots Association, International and the International Association of Machinists and Aerospace Workers - on the same schedule and prevent the premature termination of the interim agreements with the pilots and machinists.

Northwest said expiration of the interim agreement would jeopardize the final negotiations over consensual agreements, disrupting the scheduling system at the airline and leading to an inability to properly schedule flights.

Also, the company said expiration would disrupt the payroll systems and result in cash losses.

A hearing is scheduled for Thursday.

Northwest, an Eagan, Minn.-based airline, filed for bankruptcy Sept. 14. Its Chapter 11 case number is 05-17930.


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