Northwest Airlines

“Me Too” Update
April 25, 2008

District 143, along with Financial Advisor Tom Roth, will finally be meeting with NWA representatives to discuss the looming “Me Too” clause related to the NWA pilot’s agreement. The meeting will tentatively take place on May 7, 2008; location has yet to be determined.

As we have previously reported, District 143 has informed the Company that we are prepared to go to arbitration for proper resolution. This will be our final discussion with NWA regarding this matter. Once the meeting concludes, District 143 will inform the membership of the details, and future plans.

IAM “Me – Too”Clause

April 14, 2008: District 143 has advised NWA that IAM would like to proceed to arbitration regarding the modified ALPA collective bargaining agreement. As you may or may not recall, in late 2007 the Air Line Pilots Association at NWA entered into an agreement with the company that radically changed the dynamics of their concessionary contract. Subsequently, District 143 and our advisors internally reviewed ALPA’s new agreement and believe that the pilot’s achieved monetary gains that were not originally negotiated. Therefore, District 143 believes that this new agreement between both parties completely changed the dynamics of the original agreement thereby triggering the “me-too” clause. NWA representatives disagree with our position throughout our discussions. The District has informed NWA that we believe our disagreement should be decided in arbitration, and we are currently waiting for NWA to inform the District of available dates in which we can proceed. Once dates and a neutral are decided District 143 will inform the membership.

NWA to Cut Domestic Schedule

District 143 has been advised by NWA representatives that due to the continuing rise of fuel costs, NWA has made a business decision to reduce the domestic flight schedule by 5 percent beginning in September in an effort to preserve cash. NWA has also stated that they will raise fares and make changes to their checked luggage policy.

“While we do not know the immediate implications these decisions will have towards our membership, we have been advised that NWA would try to make any reductions in head count through attrition,” stated President/Directing General Chair Stephen Gordon.

NWA will remove approximately 15-20 aircraft from operation. Those aircraft will be a combination of DC-9, 757, and A319 & A320’s. It is our understanding that these reductions will not take place until after the summer travel season.

Local 1040 Organizing Training

On April 1, Local 1040 hosted organizing training for approximately 60 members from various air carriers and local lodges. Attendees included Transportation Educator Monica Silbas, District 143 Education Director Raymond Painter, District 141 Education Director Bob Kraves, Transportation Communicator Joe Tiberi, District 143 Legislative Director Lisa Stager, Grand Lodge Representative Tim Klima, District 143 General Chairs Nan Otto, Jackie Fay, and Terry Quinn, along with District 143 President/Directing General Chair Stephen Gordon.

“Air Transport Local 1040 President Diane Tomevi and her entire executive board should be commended for their efforts in putting together this outstanding event,” stated President/DGC Stephen Gordon. “Their success should be measured by the dozens of participants who came from various local lodges including Local 1040, Local 2202, Local 601, as well as participants from other district lodges”.

The day-long training included education on how to effectively organize the unorganized, effective communication tools, and how legislation impacts organizing. Throughout the day members watched videos, participated in group discussion, and shared their personal experiences in organizing.

District 143 would like to thank everyone who participated in this event. We would like to especially thank the executive board from Local 1040 and Local 2202 for putting this first class training together.

Pre-Petition Bankruptcy Grievances

As many of you are aware your District Lodge inherited thousands of backlogged and unresolved grievances many of which were filed long before Northwest declared bankruptcy on September 14, 2005. As a protective matter all pre-petition grievances that were pending at the time of the bankruptcy filing regardless of merit were listed and filed with the Bankruptcy Court in a proof of claim with the agreement that the parties would meet to determine which grievances had sufficient merit to be considered allowed claims. After an intensive review and evaluation process with District Lodge 143 representatives and our counsel, a number of claims, particularly the older ones, were found lacking in merit. Each individual grievant was then advised of the decision to dismiss the claim.

Following Northwest’s emergence from bankruptcy, representatives of District Lodge 143 and our counsel met with Northwest Airlines to discuss the pending claims believed to have merit and to reach agreement with Northwest as to the total amount which would be allowed for them. A settlement was reached which must now be approved by the Bankruptcy Court. As with all allowed claims in the Bankruptcy Court, the settlement amount will be paid in common stock which would have to be sold. The proceeds from the sale would then be placed in a Northwest interest bearing account under the IAM’s direction. At this point in time, we understand that for every dollar of allowed claims once converted to common stock and sold about 33 cents on the dollar will actually be realized.

Those grievances filed prior to the bankruptcy which were determined to have potential merit were resolved as follows subject to the Bankruptcy Court’s approval:

In full and final satisfaction of the Grievances, (i) Claim No. 8961 is liquidated and fixed in the amount of $3,000,000.00 and Allowed as a General Unsecured Claim (as such terms are defined in the Plan) against the estate of Northwest (the “Unsecured Claim”); and (ii) IAM shall also have a $1,000,000.00 Allowed Administrative Expense Claim (the “Administrative Claim,” and together with the Unsecured Claim, the “Allowed Claims”) as a result of the 1113(c) process and the ratified IAM restructuring letters of agreement. Any amount in excess of the Allowed Claims is disallowed in its entirety.

The $1,000,000 settlement refers to the indoor sky cap arbitration which was resolved and distributed as appropriate.

Again it is important to note that in the bankruptcy proceeding allowed claims are paid in shares of NWA common stock. Those shares will have to be sold by NWA’s transfer agent Merrill Lynch. Again, currently we understand that we will end up with one-third of the $3,000,000 allowed amount once the stock is sold. The agreement further provides that the IAM with the assistance of a third party neutral will determine the amount of each distribution. At the direction of the IAM, NWA will make distribution of the proceeds to IAM members through the payroll department with all applicable taxes and withholding amounts made by Northwest. A portion of the proceeds will be used to defray the administrative expenses and professional costs associated with the distribution.

A hearing has been scheduled for March 20, 2008, for approval of the settlement with objections due by March 17, 2008. Assuming the agreement is approved by the Bankruptcy Court, the common stock will be issued, sold and the proceeds deposited in a Northwest interest-bearing account under the IAM’s direction. Thereafter a neutral will be appointed to assist in the distribution process. Once the funds are deposited we anticipate that the final evaluation process involving the neutral for each of the allowed claims will take a number of months.