Flight Attendants Gain as Northwest Exits Bankruptcy

Eligible AFA-CWA flight attendants at Northwest Airlines will receive a cash payment and pension contribution worth about $14,500 within the next two to three weeks. The funds will be distributed as the result of the union's sale of a $182 million equity claim against Northwest that was preserved in their recently ratified contract.

"The sale of the equity claim will provide some much needed cash and 401(k) contributions to our flight attendants," said Jay Hong, AFA-CWA MEC president at Northwest. "But we should be clear: this sale recoups only a small fraction of the financial sacrifices our members have made in this bankruptcy."

Said Andy Wisbacher, MEC vice president, "Our fight to rebuild our contract and recover what management has taken from us has already begun."

Sale of the equity claim came on May 31, just two days after the Northwest flight attendants ratified their contract and on the same day that Northwest emerged from bankruptcy. A federal judge ruled that the flight attendants claim would be void unless a new contract was ratified.

The proceeds from the sale will be distributed 40 percent in cash and
60 percent as a 401(k) contribution. Of the 8,000 Northwest flight attendants represented by AFA-CWA, all with seniority date of Nov. 15, 2005 or earlier are eligible for the distribution.