10 replies to this topic

[airline55]

Once again, NWA FA's have rejected a contract. This was a revised, less harsh deal than the original contract offer. So, NW has said it will impose the original conditions, with court permission, and the Union has said it will strike on Aug 15.


Thoughts?



I just can't see the bk court allowing a strike, especially since this is a second go-around.

[WingsOTWorld]

I suppose its a necessary evil, doubt they would have agreed from the beginning.

[airline55]

well, the second vote was much closer, only 45% to 55%. But I just don't see that NW can decrease the needed concessions anymore.

[whowey]

If the attendents do try to strike, I'll bet NWA goes for a Taft-Hartley ruling. They'll get backing from the Congress Critters from MSP and DTW and maybe MEM.

Will they get it? If Mineta hadn't quit, I would bet they get it. But the acting Sec. of Trans is a bit of an unknown. But in the past Bush has sided with the company looking for a ruling to keep a union from striking. Add to that the fact that the other airlines are at all-time load factor levels. There certainly can be made a Very good arguement to give NWA a positive Taft-Hartley declaration.

For the non-American readers here. The Taft-Hartley act is a federal law, that originally prohibited railroad workers from going on strike. The original decision was that the railroads were the pre-eminent transport medium in the US at the time. Also that a strike of any length could cripple the US economy, and possible jepordize the national security of the US.

Since its inception the act has been expanded to include other public Safety professionals in the US.

Probably the most famous usage of the Act, was when President Reagan fired the ATC's over violating the Act and striking. Another time of intrest here, would have been 1998 when then President Clinton threatened to enforce the Act if UPS pilots would not return to work.

Today even UPS pilots work without a contract, and have a federal mediator seemingly permanently assigned to keep both sides at the bargining table, and the UPS planes in the air.

[WingsOTWorld]

Lol...you obviously know this more than I do...

[whowey]

Lol...you obviously know this more than I do...

Basic Economics, and being able to read the newspapers, nothing more.

We have all the airlines shedding capacity, creating a smaller supply. We are seeing all-time record load factors, from both the airlines tightening supply and from general rise in demand.

Now attempt to subtract ALL of NWA's capacity from the already tight market. You will get a MAJOR hit on the US economy. Sec Commerce will support a Taft-Hartley ruling on that point alone. Now look at the damage to the MSP, DTW, and MEM areas. If the strike does happen NWA probably won't survive. Now add those out of work people, to the fact Mesaba, and Pinnacle would go bust also. Major holes in the transportation network. Sec Trans will use this reason to support the ruling. Two cabinet Secs, plus the Congressional delegations of MI, MN,and TN throwing their weight during an election year. This would be a no-brainer for the Pres.

[drv4truk]

Ah yes, but how quick do you think Continental and Delta would be to move in and pick up the pieces? They are partners and probably would be able to pick up many of the NWA routes before Southwest or other LCC's move in, but I doubt we would ever see the same level of service that NWA provides to the small communities in the Midwest.

[whowey]

Ah yes, but how quick do you think Continental and Delta would be to move in and pick up the pieces? They are partners and probably would be able to pick up many of the NWA routes before Southwest or other LCC's move in, but I doubt we would ever see the same level of service that NWA provides to the small communities in the Midwest.

They wouldn't be able to pick up much of the current load.

Continental posted a mainline load factor of 86%, and an overall load factor of 85.4%

I haven't found Delta's numbers yet, but I'll bet they are similar.(I found one for June 85.5%)

Right now, there simply isn't the extra capacity for them to spare. The LCC's aren't holding any extra capacity either.

The Fed's won't let NWA go under. Its too big of a blow to the affected areas. There simply isn't anyway to split up the passengers and cargo that NWA carries now.

Service never has improved when a large carrier went under.

[RAS]

But doesn't the RLA only apply to employees contracted to the company. From my understanding with the BK court invalidating the FA's contract the RLA would not apply or this is the rumour at flightinfo.

[whowey]

The bankruptcy judge invalidated the contract that was in effect at the beginning of the bankruptcy proceedings. The judge also can order them back to work without a contract. Their pay would be the same as it was under the invalidated contract, but their benefits could be changed or stopped. The judge at the same time could also order both sides to begin negotiations again, or could just impose a short term contract on the attendants.

[drv4truk]

They wouldn't be able to pick up much of the current load.

Continental posted a mainline load factor of 86%, and an overall load factor of 85.4%

I haven't found Delta's numbers yet, but I'll bet they are similar.(I found one for June 85.5%)

I can believe that. Even on some of Continental's regional operations where normally there are half empty aircraft, things have turned around. Aircraft are at or near capacity when leaving the gates.