Northwest, 2 Largest Unions Agree on Tentative Contract

EAGAN, Minn. —  Leaders of two of Northwest Airlines’ largest unions agreed Monday on a proposed contract that would include pay cuts.

In exchange for concessions from the machinists’ and flight attendants’ unions, the company would give them a greater voice in operations and take financial steps to improve the airline’s long-term outlook. Full details of the proposed pact were not immediately released. A ratification vote on the agreement is not expected to be completed until May 17.

The International Assn. of Machinists & Aerospace Workers, which represents 25,000 Northwest workers, said the pact involves labor cost savings, job security, employee stock ownership, corporate governance and financial restructuring.

The pact, if approved, would end talks for two of the six unions that have been mired in negotiations with Northwest since early this year.

“Precise language will be worked out over the next several days,” the machinists’ union said in a statement. “Details will be released after the unions’ ratification processes are completed.”

Northwest Airlines’ six unions forged a unified negotiating team late last year to seek financial guarantees from the airline in exchange for $900 million in givebacks.

But a schism formed in the coalition, and the machinists, the largest union at Northwest, said in March that it had split from the group.

Northwest Airlines, in a separate release, said talks with representatives of other labor groups continue.