EAGAN, Minn. (AP) -- Northwest Airlines Corp. said Tuesday it has increased the amount of money it wants to save on labor costs due record-high fuel prices, fare restructuring plans undertaken by various airlines and labor cost reductions at its competitors.
The Eagan-based carrier said it adjusted its annual labor cost-savings goal to $1.1 billion from $950 million.
Northwest said it will ask its unions to agree to a freeze of its defined benefit pension programs. The airline has proposed replacing it with at a defined contribution program.
The new $1.1 billion target includes $300 million in annual labor savings from Northwest pilots and white-collar employees that went into effect in December. The pilots ratified a contract that cuts wages 15 percent.
Airline officials are meeting with union representatives to discuss the proposals and hope to reach agreements as soon as possible, Northwest said.
Northwest shares fell 13 cents, or 1.9 percent, to close at $6.61 on the Nasdaq Stock Market.
