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NWA faces pilots strike
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July 30, 1998: 1:34 p.m. ET
Talks between airline, union reach impasse; pilots decline arbitration
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NEW YORK (CNNfn) - Talks between Northwest Airlines Inc. and its pilots were declared at an impasse, clearing the way for the union to strike the nation's fourth-largest domestic carrier after a mandatory 30-day "cooling-off" period.
The Air Line Pilots Association announced Thursday it has declined an offer by the National Mediation Board for "voluntary but binding arbitration."
The impasse clears the way for the pilots' union to hit the picket lines if no new contract is reached by Saturday, Aug. 29, at 12:01 a.m., EDT.
Airline pilots last struck a major U.S. carrier in February 1997, prompting President Clinton to intervene between the Allied Pilots Association and American Airlines, a unit of AMR Corp.
Officials of Minneapolis-based Northwest Airlines weren't available for comment.
At issue are the economic terms a new multi-year contract covering roughly 6,200 pilots. The talks began in August 1996 and entered federal mediation in July 1997.
"Unfortunately, by March 1998, it became apparent Northwest management was unwilling or unable to make the decisions necessary to conclude these talks," the union said in a statement.
In May, the pilots overwhelmingly voted to authorize a strike against Northwest if issues remained unresolved. But under the Railway Labor Act, only the National Mediation Board has the sole authority to declare talks at an impasse.
The independent government agency offered the arbitration as a customary last ditch effort but was rejected, a spokesman said. The board will continue to work with both parties to try to reach a settlement.
"Our job is not to judge. It's to enable the parties to resolve their differences," said Jim Armshaw, spokesman for the National Mediation Board.
Still, the pilots expressed optimism that issues could be resolved within the next 30 days. Northwest pilots have tentatively agreed to 22 of 29 contract sections.
"We are confident in our ability to negotiate a contract," said Paul Omodt, a spokesman for the Air Line Pilots Association.
"However, it takes two parties to negotiate and we need Northwest Airlines to come to the table with decision-makers that have the authority to make a deal," Omodt said.
The St. Paul, Minn.-based company is offering a five-year contract with a 10 percent wage increase over the life of the agreement -- terms comparable to the 1997 contract covering American Airlines' pilots.
But the union wants a three-year agreement and is requesting the equivalent of a 15 percent increase over five years. Omodt contended Northwest's offer translate to only a 8 percent annual gain.
In addition, Omodt argued the Northwest offer isn't comparable to the contract covering American's pilots because it doesn't include profit sharing or stock options.
The issues of job protections, work rules and retirement also remain unresolved.
-- by staff writer Robert Liu
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