SEARCH
Northwest Execs Gain from Employees’ Pain |
|
Flight attendants and pilots at Northwest Airlines (NWA) and machinists are livid over a decision by the carrier’s top executives to reward themselves with nearly $400 million in bonuses after the company emerges from bankruptcy. While Northwest executives get bonuses, the employees whose wage and benefit concessions and hard work brought the company back from the brink of collapse are being left out in the cold.
Today, at the Detroit Metropolitan Wayne County Airport, members of the Flight Attendants-CWA (AFA-CWA), the Air Line Pilots (ALPA) and the Machinists (IAM) will hold an informational picket and rally to highlight the need for fair and equitable treatment of Northwest employees.
Northwest Airlines declared bankruptcy Sept. 15, 2005, just days before new laws passed by Congress limiting executive compensation and bonuses in corporate bankruptcies took effect. The airline’s reorganization plan includes an executive stock plan that would award the top 400 executives as much as $995,000 each—a total of about $382 million.
For many corporations, bankruptcy no longer is a sign of a failed business. In fact, corporations are filing for bankruptcy not as a last resort, but as a business strategy to make more money—jettisoning pension plans on their way to Chapter 11 and throwing off long-term commitments they made to America’s working families.
Last year, Northwest pilots agreed to give up $358 million annually (including a 23.9 percent pay cut) during the next five years to help the company avoid liquidation. This sacrifice was in addition to the $265 million (including a 15 percent pay cut) annual wage concession Northwest pilots gave in December 2004. Altogether, Northwest pilots gave up a whopping $4 billion through 2011.
Meanwhile, the same executives who are looking to gain nearly $1 million each, cut Northwest flight attendants’ pay and benefits by 40 percent in 2006 and imposed draconian work rules. On top of cuts in pay, Northwest flight attendants also are working 20 percent more with minimum rest and no food.
“Our pay cuts are being converted into increased compensation for NWA executives,” said Capt. Dave Stevens, chairman of ALPA’s Northwest Airlines unit.
It is unconscionable to use employees’ pay cuts to provide huge bonuses to the same executive team that led our company into bankruptcy. Northwest executives will profit while the employees who suffered the most by having our pay, work rules, benefits, and retirement slashed will receive pennies.
Jay Hong, president of AFA-CWA’s Northwest Master Executive Council, says the airline is $800 million ahead of its recovery plan, “but they refuse to offer their own employees and their families and communities relief.”
Instead, they want our pain to be the gain for 400 Northwest executives. Workers at Northwest Airlines are joining each other to say that it can’t continue this way; enough is enough. It’s time for Northwest to negotiate a fair, consensual agreement with the flight attendants that fully recognizes our role and our value as safety and security professionals.”
After Northwest flight attendants twice voted down a concession-loaded contract, the company last July imposed a new contract and work rules. The flight attendants have asked the National Mediation Board to release them from mediation and to offer binding arbitration to the parties.
8 Comments
Sorry, the comment form is closed at this time.
NorthWest CEO’s only care about their own profits and not about what the people that do the work need. Why can’t they share the profits instead of taking all of it for themselves???? After all who made the sacrifices that saved the NorthWest Airlines anyway?
What does it say about our government when this kind of thing is legal? It’s disgusting. I’m not sure how the workers can stand it. But maybe that’s what the executives want, so seasoned employees quit and they can higher new workers at lower pay.
And why isn’t this moral outrage on every newscast imaginable? This is a morally reprehensible thing going on right now that will get less than a minute coverage in the mainstream media, if that. Are the billion dollar corporate companies running the media protecting other billion dollar companies? Do they do it for the advertising dollars or out of a sense of elitism - thinking those who have money should be able to take all they can from those who don’t?
One thing is for sure. I’ll never fly Northwest again and I will tell everyone I know about what Northwest is doing to its workers to make sure they don’t fly with them either. Northwest is filthy.
ANNE FEENEY,
I KNOW YOU WROTE A PARODY FOR THE AFA ABOUT UNITED AND I ADMIT I STOLE THE IDEA BUT NOT FOR PROFIT BUT TO HELP MY SISTERS AND BROTHERS AT NORTHWEST. I HAVE PROBABLY NOT DONE AS FINE A JOB AS YOU BUT THEIR RALLY IS TODAY AT SFO AT 11:00AM. SHELLY KESSLER WILL BE THERE AND THE SAN MATEO COUNTY CENTRAL LABOR COUNCIL.
DAVE HURLBURT CWA 9410
paraphraze Anne Feeneys reply:
It is a terible world where you can write a zipper song and just add the names of the company and the executives who are robbing workers. Dave you did a fine job…
Northwest parody song
Down dooby do down down, we can shut ya down dooby do down down
We can shut ya down dooby do down down
Shut ya down is what we’ll do……
Not long ago we flew those northwest skies
Morale was high - Our stock was on the rise
Now you’re giving us the royal screw
And shut ya down is what we’ll do
You say our wages are to blame
Steenland should hang his head in shame
Martha Stewart did nothing compared to you
And shut ya down is what we’ll do
Our future is in chaos - We’ve given so much
Those guys on top are way out of touch
Insider trading! What gives you the right????
Douglas Steenland how do you sleep at night!
The AFA is gonna have its say
The CHAOS game is one that two can play
Northwest workers deserve more from you
And shut ya down is what we’ll do
Well first we tried your ESOP - We gave back our pay
Now you take our pensions away!
Your plans are destined to fail
Northwest workers need a raise, and, Steenland you belong in jail!
The day will come, just wait and see
What we can do in solidarity
Northwest workers deserve more from you
And shut you down is what we’ll do
Dooby do down down; we can shut ya down dooby do down down
We can shut ya down dooby do down down, and shut ya down is
what we’ll do!
——————————————————————————–
I live in Michigan and I will still patronize Northwest, as it is an organized airline, rather than the non-union competition. It is disgusting to read this, though.
From FDR’s 1937 Inaugural speech:
“We have always known that heedless self-interest was bad morals; we know now that it is bad economics. Out of the collapse of a prosperity whose builders boasted their practicality has come the conviction that in the long run economic morality pays. ”
Just read those words. Our country was coming thru the depression that occurred after a period of increase for the owners and less for the workers.
They are as true today as they were 70 years ago. When will the owners begin to see that what they are doing is morally wrong? When our legislators find the courage and the conscience to regulate these out-of-control companies.
http://newdeal.feri.org/speeches/1937a.htm
I am planning a trip to San Fran over Mem. Day. Guess I know which airline I won’t be traveling on!
Alas, this story not unique. Many CEO’s enrich themselves on the back of worker’s sacrifices as politicans do nothing for worker’s rights. Free enterprize Republican style, let the CEO’s reap all the gains while workers sacrifice. Maybe “trickle down” theory will kick in and workers will get a few cents back.
Like hollyh, it will not be a mystery what airline I will take next trip. (most likely Amtrak the way many an airline is treating its employees)
The only thing about this story that is unique, is that we at usairways have already been there. We can not allow this to continue in the entire airline industry. We have taken a 40percent paycut, no health benefits for retirees, lost vacation weeks, lost sick time, lost holiday pay, lost overtime pay, lost shift differential,and No PENSION. YES No pension. Changing c.e.o.s with more bonuses for management and golden parachutes,while we can hardly put food on a table, or fuel in our car. How could it possibly be legal that these companies, that are so large have the legal right to do this to people that serve the flying public. How do these Companies get away with blatant pompous attitudes that we should be lucky to just have a job. 25 years later, something has to change immedietly. Enough is Enough. OH……….and forget about a cost of living rate, we have never seen that . I would be that the majority of congress and the flying public has no idea of all of this. CHANGE Must happen NOW. This is all morally wrong………….to the utmost degree. It is actually criminal