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``The
debtors cannot wait until a strike occurs to obtain injunctive
relief because the harm caused by the potential strike activity
cannot be undone,'' Northwest lawyer Gregory Petrick said yesterday
in a court filing. Northwest seeks to prevent ``significant,
potentially disastrous, and irreparable harm that would result from
any strike activity,'' he said.
Northwest, the fifth-largest U.S. carrier, is trying to save $1.4
billion a year in labor costs to help it exit bankruptcy and repay
creditors.
Baggage handlers vetoed a tentative contract in March, leading to
more talks and a new agreement on which voting ends tomorrow.
Northwest said in its filing that if it doesn't meet its savings
goal soon, it will have to reduce its schedule ``for the remaining
summer months and lose additional millions of dollars in revenue.''
An agreement with pilots to save $358 million a year was contingent
on other unions' approving concessions.
Attendants' Agreement
The flight attendants' agreement, approved March 1 by airline and
union negotiators with the Professional Flight Attendants
Association, would have saved Eagan, Minnesota-based Northwest $195
million a year. Besides cutting pay, the accord would have reduced
benefits and changed work rules.
The union's executive board, a separate body from the negotiating
committee, split on whether to recommend approval of the accord. Two
recommended a no vote and one a yes vote. One member was undecided,
and the president abstained.
The bankruptcy case is in Northwest Airlines Corp., 05- 17930, and
the suit against the flight attendants is Northwest Airlines Corp.
v. Professional Flight Attendants Association, 06- 1537, both U.S.
Bankruptcy Court, Southern District of New York.
Source:
Bloomberg |