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updated 03/05/2008 9:45 AM

July 6, 2007
The chart listed below represents the 1114 Committee’s (Retirement Committee for NWA Bankruptcy) work in securing affordable medical healthcare for IAM Represented NWA Retirees who retired prior to August 1, 2006.  Applicable retirees shall receive information packets from NWA detailing the highlights of the plan, along with additional information.  Please review this information in its entirety.  Click on the link below for an “at-a-glance” overview of the new medical premium.

Chart of Northwest Airlines Retirees Medical Premiums

Again, District 143 would like to thank the entire 1114 Committee for their efforts in securing an affordable healthcare plan for our retirees

April 20, 2007
As reported, we have reached an agreement with Northwest Airlines regarding the Section 1114 trial that will protect the health care benefits for our retirees.  As noted, the agreement, if approved by the courts, would provide for an unsecured claim of $120,000,000 which will be used to offset the premiums of our retirees.  There are still numerous details to be worked out from the Retiree Committee and more information will be forthcoming.  District 143 would like to thank the hard work of the Retiree Committee in securing these benefits.

January 19, 2007
There have not been any face-to-face negotiations since October 2006; however, the attorneys representing the employees in the 1114 hearing have had dialogue with the Company to see if they would change their original position.  The Company has not and is still maintaining that the retired employees pay 50% of the health premiums.  The IAM Retiree Committee believes this is unrealistic as not only can the retirees not afford these premiums but also the Company finances have changed since last June and they do not need these concessions.

November 29, 2006
Many questions have been forwarded to District 143 about retiree insurance rates. Hopefully, this recap will help explain how the blended rates were arrived at.

The original IAM tentative agreement reached with NWA in late January included a proposed settlement about retiree health insurance stating, "For future pre-age 65 retirees, same coverage as active employees. Company pays 50% of cost for retirees age 55 or over with at least 23 years of service. Provides that employees may convert unused sick leave banks to reduce the contribution to 35%. Every 10 hours of unused sick leave equals one month of buy-down to 35%"

In addition to that proposal, an insurance rate chart was worked up showing proposed amounts with/without the buy down for the insurance. (Remember, this chart is no longer to be used for retiree health insurance premium calculations. Please just use it for comparison purposes to the present blended rates chart.)

When the ESSC members voted their first tentative agreement down, their negotiators renegotiated the original proposed retiree health insurance proposal; and in their second tentative agreement with NWA, the language still had the Company paying 50% of the cost, but they also negotiated new language stating, "...subject to a maximum annual increase in the retiree contribution of 8%. Retiree contribution based upon blended experience of active and retired participants."

What that means is that they not only negotiated a cap to how much our retiree health insurance rates could go up each year, but they also negotiated the health insurance premium payments on a more equal basis for everyone participating. Realizing that retirees on fixed incomes would struggle more with higher premium payments, the negotiators negotiated the blended concept and a new insurance rate chart was worked up showing quite an improvement in the rates for retirees (use this chart for retiree health insurance premium calculations). With the ratification of the ESSC contract, the new blended concept (with cap) replaced the original proposal, and that concept also applies to retirees of the COFPS agreement (me-too provision).

Should you have any further questions about this concept, please contact your union committee person or your general chair.

November 9, 2006
The Company has contacted the Retiree Committee’s attorneys to have dialog about movement of their position regarding present retirees. That meeting should take place within one week.

Questions have come up about the new company pass policy – Why don’t the new pass policy changes apply to retirees? Why aren’t retirees treated the same as employees?