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Northwest under gun to cut costs.

Publication: Knight-Ridder Tribune Business News
Publication Date: 01-JUN-05
Format: Online - approximately 836 words
Delivery: Immediate Online Access

Article Excerpt
Byline: Jewel Gopwani

Jun. 1--Now it's Northwest Airlines' turn.

Because its competitors have found ways to shed labor costs, Detroit Metro Airport's dominant carrier now has the highest labor costs in the industry and is one of the last to extract hundreds of millions of dollars in concessions from its union contracts.

The spotlight has been on United Airlines, which has gained approval to hand off its pension bills to the government and negotiated cost-saving contracts with its unions through bankruptcy court.

Northwest, which seeks $1.1 billion in concessions from its seven unions, has told its employees to look toward United as an example of what's to come.

"As United continues to restructure itself, the changes it experiences clearly will impact NWA," Northwest said...

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