War in Iraq Coverage from National Public Radio Discuss the conflict Audio Josh Marks, chief of staff of The George Washington Aviation Institute (Midmorning - 3/25/03) Curt Kruse, airline pilots' union spokesman Rep. Jim Oberstar talks with All Things Considered host Lorna Benson about problems airlines are facing Photos A breakdown of the layoffs at Northwest Airlines Willing to help More from MPR NWA pushes for cost cuts (02/13/2003) Tough times ahead for Northwest (09/16/2002) Northwest cuts 10,000 jobs after Sept. 11 attacks (09/21/2001) Your Voice News Forum: Does this impact someone you know? How will this affect our economy?

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Thousands to lose jobs at Northwest Airlines
March 21, 2003

A breakdown of the layoffs at Northwest Airlines (Source: Northwest Airlines)

Eagan , Minn. — (AP) - Northwest Airlines plans to cut about 4,900 jobs as a result of the war in Iraq, the airline said Friday.

Northwest said it was taking the move as it reduces its systemwide flight schedule by about 12 percent and idles 20 planes.

	Willing to help

"The carrier is taking this action because of a drop in passenger demand due to both the threat of and now the commencement of hostilities with Iraq," the airline said in a statement. "As world events unfold, Northwest will continue to monitor passenger demand to determine whether additional actions are necessary." The cuts include 2,000 mechanics, 1,400 flight attendants, 630 baggage handlers and customer service agents, 250 pilots, 125 cleaners, 300 management and 150 clerical positions, and 40 stock clerks, said Paul Volker, legislative officer for the Aircraft Mechanics Fraternal Association Local 33.

Northwest said it would use layoffs, attrition, voluntary leaves and leave open positions unfilled to make the job cuts. A relief package including pay, medical coverage and flight privileges will be offered to the affected employees, the airline said.

Northwest had already laid off about 12,000 employees due to the slump in the airline industry.

"Clearly, the last two years have been a difficult and painful period for our employees," chief executive Richard Anderson said. "Due to the weak demand for business travel which emerged in March, 2001, the subsequent impact of the terrorist attacks on the United States in September of that year, and now, armed conflict with Iraq, we have been forced to reduce our work force by some 17,000 employee positions."

Anderson apologized to passengers for the inconvenience but said cutting flights was necessary due to the drop in demand.

Gov. Tim Pawlenty said the state would seek federal help for the employees.

The carrier is taking this action because of a drop in passenger demand due to both the threat of and now the commencement of hostilities with Iraq. - Northwest Airlines statement

"This is a terrible day for thousands of Minnesota workers and their families. ... We will do everything we can to assist these workers and their families," Pawlenty said.

The state Department of Trade and Economic Development will ask for a National Emergency Grant through the U.S. Department of Labor. The state received $8 million in federal emergency aid for dislocated airline employees after the Sept. 11 attacks.

The state agency will soon conduct a series of meetings for affected workers to answer questions about unemployment insurance, training assistance and other services.

U.S. Rep. James Oberstar of Minnesota, the ranking Democrat on the House Transportation Committee, said Northwest's announcement shows the need for Congress to act quickly on a federal aid package for the airlines that he introduced earlier in the week. It would reimburse airlines for any financial losses directly attributable to the war, extend war-risk insurance and offer loan guarantees to absorb fuel price hikes.

"The airlines have already shouldered, and continue to shoulder, a disproportionate share of the costs associated with the September 11th attacks," Oberstar said. "We must not force the airlines to bear a disproportionate share of the direct and indirect costs of a war with Iraq."

Volker said Northwest officials told his union's leaders earlier Friday that the airline intended to invoke the "force majeure" clauses in its labor contracts. That's the legal term for uncontrollable events that release parties from their contractual obligations. That would free Northwest from union-negotiated agreements related to seniority and work rules - stipulations that can make it difficult to cut jobs.

Analysts said earlier this week that the war could give airlines reason to cut costs via the force majeure clause, which they used after the Sept. 11 terrorist attacks. Most of the major carriers are suffering under excessive labor expenses, poor economic conditions and the decrease in spending by business travelers.

Last month, Delta Air Lines was forced by an arbitrator to cancel the planned furlough of 20 pilots because of a lawsuit filed by the Air Line Pilots Association. Earlier battles against the Atlanta-based carrier's use of force majeure were unsuccessful, though.

Since the Sept. 11 attacks, major airlines have laid off roughly 100,000 employees and industrywide capacity is down about 14 percent from where it was two years ago. But passenger traffic and ticket prices have also fallen sharply, resulting in bankruptcy filings by US Airways, United Airlines, Hawaiian Airlines and industrywide losses of $9 billion in 2002.

Eagan-based Northwest is the world's fourth-largest airline with hubs at Detroit, Minneapolis-St. Paul, Memphis, Tokyo and Amsterdam, and approximately 1,500 daily departures.

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