Monday, July 3, 2006

Bankruptcy Judge Permits Northwest to Reject CBA with Flight Attendants

Images_47 Bankruptcy Judge Allan Gropper has ruled that Northwest Airlines may reject its collective bargaining agreement with the Professional Flight Attendants Association.  Section 1113 of the Bankruptcy Code permits a debtor to reject a cba if the rejection is, among other things, "necessary" to the debtor's ability to reoganize.  Judge Gropper held that Northwest's dire financial situation satisfied this test.  He has stayed the order permitting rejection for fourteen days to give the parties time to attempt a settlement.  The case is In re Northwest Airlines Corp., ___ B.R. ___, 2006 WL 1776455 (June 29, 2006) (Westlaw passowrd required).

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Comments

As a New York reserve flight attendant for Northwest Airlines I am compelled to write to you after sitting in your courtroom yesterday. The testimony by Ms. Julie Hagen-Showers, the Northwest Airlines Labor Relations Manager was absolutely appalling. Many of the statements made by Ms. Showers are all out lies. Ms. Showers stated that NWA flight attendants only took a 12% pay cut after TA1, and that Northwest Airlines flight attendants are still among the highest paid. This is simply not true!

I am enclosing a copy of my Social Security Statement, a federal document, so that you may see what a seven year veteran at Northwest Airlines actually makes. When you calculate another 40% pay cut (the actual amount taken in TA1) from this amount you will see that it barely equals $20,000 per year.

Please take this information into consideration when making your decision in the coming days. If you would like to discuss this matter further, or if you need more information please feel free to email me at *** or call me directly at ***-***-****.

Posted by: Merlot | Aug 10, 2006 5:45:11 PM

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