Northwest Airlines Corp.'s mechanic union on Friday said it would accept pay cuts in order to save jobs, according to media reports.
The Aircraft Mechanics Fraternal Association proposed cutting 16.1 percent of base pay in the first year of a two-year contract. The deal would save the airline approximately $64.4 million in 2006, according to the union.
But union negotiators said Northwest is demanding more concessions.
Northwest (NASDAQ: NWAC - News) recently laid off about 700 mechanics in the Twin Cities. The Eagan-based carrier has proposed eliminating 2,031 mechanics, or nearly half of the workforce. The airline has also asked the remaining 2,381 mechanics to take a 26 percent pay cut.
The mechanics job and pay cuts are part of Northwest's plan to cut $1.1 billion in labor costs.
