Northwest Airlines seeks earnings-friendly labor pacts

0 Comments | Deseret News (Salt Lake City), Aug 15, 2007 | by Bloomberg News

Northwest Airlines Corp., after outpacing rivals in first-half profit margin, will be able to reach new agreements with its labor unions that won't hurt earnings, Chief Executive Officer Doug Steenland said.

The airline has offered to make "cost-neutral" adjustments to the contract negotiated with the flight attendants during bankruptcy, Steenland said in an interview Monday at the company's headquarters in Eagan, Minn.

Management also is willing to talk with other employee groups about changes, as long as the $1.4 billion in annual labor savings achieved during bankruptcy remains intact, he said.