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Northwest Air and the Convention: Proof Capitalism Works PDF Print E-mail
Written by Nicole Russell   
Friday, 04 January 2008 08:19

Yesterday the RNC's Committee on Arrangements announced Northwest Airlines is going to be the "official" airline of the 2008 Republican National Convention. No surprise there. Not only are there global headquarters based in Eagan, Minnesota, but the President and CEO of the company, Doug Steenland is a member of the non-partisan (must I remind you), Host Committee.

Being the proud Republican and somewhat-educated capitalist that I am, though, I'm reminded that this business transaction is proof of the many qualities of a free-enterprise system like ours, though it has been tainted by demanding unions. The mechanics at Northwest were on strike for some time; it ended in November of 2006. Since they were part of a union, business was affected.

But then, someone at Northwest, (perhaps our member of the Host Committee/CEO of the airline?) decided a picky union shouldn't affect the bottom line of his company and he hired someone else to do their job:

The strike by 1,600 mechanics long ago ceased to have a visible effect on Eagan-based Northwest, which hired permanent replacement workers and outside contractors to replace the mechanics.

Same thing happened with the flight attendants, who, as a band of union workers, asked Northwest to reconsider their pay cuts:

After flight attendants refused to ratify an agreement, U.S. Bankruptcy Judge Allan Gropper allowed Northwest to cut flight attendant pay and change their work rules to save $195 million a year beginning July 31. Gropper had found that Northwest needed the concessions from flight attendants and other workers if it was to make money.

Do I feel bad for the union mechanics or flight attendants? Not in the slightest. I am proud that the business practices of Northwest are not didacted by union workers, but by the ambition to improve their bottom line. Sound selfish or uncaring? Nope. Sounds like capitalism to me.

Now, since that step was taken, Northwest is back to (somewhat) usual business (though there are not as many flights going out this year, as in the past) and the Republican National Convention is able to take advantage of that.


Last Updated ( Friday, 04 January 2008 08:58 )