DISGRACEFUL: Northwest Airlines asks courts to CUT retiree benefits

Northwest Airlines asked a court for permission to reduce its contribution to retiree health insurance premiums and reduce other medical benefits to save $80 million a year. Under a plan to reduce retiree benefit costs, Northwest retirees under age 65 would pay half their monthly premium, up from 20 percent, and retirees over age 65 wouldn't be eligible for coverage. One thousand retirees over age 65 currently covered would be cut, according to a filing in bankruptcy court Friday. The changes would save $80 million, it said. Eagan-based Northwest, which filed for bankruptcy protection Sept. 14, also would "modify" some deductibles, co-pays and other parts of the retiree medical benefit plan, the filing said. The company said it submitted the plan to a committee for retired employees on Dec. 9.

Senators protest NWA foreign-hiring plan

U.S. Sen. Mark Dayton, D-Minn., and 12 Senate colleagues have asked Northwest Airlines to back off plans to replace American flight attendants with foreign workers on all or most international flights. The Northwest flight attendants union has said the airline wants to be free to staff international flights with foreign flight attendants and wants to outsource many domestic flight attendant jobs. Overall, the moves could cost union members some 2,600 jobs. "Such a move could be devastating for the more than 2,500 Americans who would lose their livelihoods, and for their families, as well as for the safety of the flying public," Dayton said. The flight attendants are in contract negotiations with Northwest, which had no comment on the letter.

http://www.twincities.com/mld/twincities/business/13426978.htm