True, long ago under CEO Donald Nyrop, "his" Northwest company provoked unions into strikes.
Here is why: the airlines all contributed money to the emergency fund called the "Mutual Aid Pact".
Well, good old Nyrop was able to make more money during a strike than he could under normal airline operations, by pulling lots of money out of the fund; for this reason, such a cynical airline "leader" preferred a strike.
Because of this financial abuse, the other airlines dissolved the "Mutual Aid Pact". Northwest Orient reportedly had the best debt/equity ration of any US airline. Why was their cynical treatment of labor considered necessary?
My friend also told me that their Tentative Agreement would allow the first 90 Embraer 190s etc, to go to a new subsidiary company, "S-Jet". But, for example, if NWA parked large numbers of DC-9s, there would be no replacement, unless NWA decided to buy dozens more than 90 EMB-190s to replace the flying.
If not, then about 1200 DC-9 pilots could, in theory (legally), be laid off! They already have about 600 pilots laid off. Only the number of Emb-190s etc ABOVE those first 90 aircraft, would be flown by mainline NWA pilots. Maybe this info. is not accurate. Their NWA CFO Cohen came from USAirways. After USAirways pilots signed their contract, their company STILL dissolved their retirement. So much for bargaining strategies, but maybe the guy has the wrong interpretation.
Any contradictions based on facts are welcome.
Last edited by Ignition Override; 8th March 2006 at 00:09.