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BY 92 PERCENT VOTE TEAMSTERS RATIFY UNPRECEDENTED AGREEMENT WITH NORTHWEST AIRLINES

 Flight Attendants Win Key Role in Major Board Decisions,
 Future Wage Guarantees, Layoff Protections,
 and Eventual Repayment of $82 Million Investment
 WASHINGTON, July 30 /PRNewswire/ -- By an overwhelming margin of 5,622 to 508, flight attendants at Northwest Airlines have voted to ratify an agreement that gives the company's employees ownership of at least 30 percent of the current common stock, 15 percent of the board seats, layoff protections, and supermajority voting rights on major business decisions in exchange for an investment of $886 million over the next three years.
 "The choice for flight attendants was a difficult one because it requires them to make a sacrifice," said Teamster President Ron Carey. "But in return, they will have protections for their investment that are unprecedented in the airline industry."
 The Teamsters' contract also makes major improvements in areas of scheduling, scope, and work rules that are covered in the flight attendants' basic collective bargaining agreement.
 "The flight attendants have won major steps forward in key areas that govern day-to-day on-the-job conditions," said Mary Don Erskine, the president of Teamster Local 2000. "This contract corrects many problems that we have had to cope with for years and will put us in a stronger position when the airline has returned to health."
 The agreement ratified today provides a package of job protections and investment guarantees that is unprecedented in the airline industry. Among the main features of the flight attendants' agreement are:
 -- An innovative repayment mechanism that obligates the company to repurchase the employee stock in ten years for at least the amount of the wage concessions. (A second option enables employees who are willing to forego the repayment guarantee to opt for a larger amount of stock.)
 -- A "snapback" after the three-year concession period to return wages either to the current level or to the industry averages at large, healthy carriers, whichever is higher.
 -- Three seats on the board, with to power combine their votes with two other board members to form a supermajority of five with veto power over many key decisions -- such as mergers, acquisitions, and sales of routes or assets -- that affect the long-term health of the company and the security of employees' jobs. These unprecedented guarantees were initially negotiated by the Teamsters and the Machinists in May, and have now been ratified by both of those unions and the Air Line Pilots Association.
 -0- 7/30/93
 /CONTACT: Nancy Stella, 202-624-6911, or David Barrow, 612-854-3056, both for the International Brotherhood of Teamsters/


CO: International Brotherhood of Teamsters; Northwest Airlines ST: Minnesota, Michigan IN: AIR SU:

KD-MH -- DC038 -- 7928 07/30/93 16:41 EDT
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Publication:PR Newswire
Date:Jul 30, 1993
Words:437
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