Northwest Airlines pilots have overwhelmingly approved a two-year contract that will save the struggling carrier $265 million a year and hopefully keep it from a bankruptcy filing during the duration of the pact.

With that “breathing room,” Northwest should be able to negotiate cost-cutting deals with its other unions, the pilots’ union expects.

Of the 4,129 pilots who voted, 89 percent favored the agreement and 11 percent were opposed, the union said Friday.

But unions for the airline’s mechanics, flight attendants and ground workers continue to insist that they won’t agree to wage concessions or other givebacks. And Northwest’s disclosure that it again is granting millions of dollars in stock awards to its top executives will only steel their resolution, several union leaders said.

Wage cuts for all Northwest employees are inevitable, though, said Mark McClain, chairman of the pilot union’s Master Executive Council.

“Everyone is hesitant to take a pay cut,” he said. “But the reality in the industry today is that concessions … are part of the environment. … They (other unions) will participate in the end, either voluntarily or when it is forced on them.”

The pilot pact calls for a 15 percent pay cut for the airline’s some 5,300 active pilots, who earn about $130,000 a year on average. In addition, pilots will assume payment of 20 percent of the cost of medical premiums.

The deal would give the airline a per-mile pilot cost of 1.14 cents, vs. 1.81 for Delta Air Lines, 1.22 for American, 1.12 for Southwest, 1.05 for Continental and .98 of a cent for United. The pact also allows Northwest to add six seats to 60 44-seat regional jets flown for Northwest by regional carrier Pinnacle Airlines.

Eagan, Minn.-based Northwest has lost about $2.1 billion and cut some 17,000 employees since the start of 2001.

On Friday, the airline said it appreciates the financial sacrifice made by its pilots and other employees but it remains committed to eventually reducing labor costs by $950 million a year. That would mean another round of giveback bargaining with the pilots after extracting concessions from other unions.

Northwest says its wants deals with other unions as soon as possible. It took more than 19 months for Northwest to get a pact with the pilots.

The pilot contract is contingent on Northwest refinancing a $975 million loan due next October. When the loan is refinanced – and it appears that it will be – Northwest should be clear of any imminent threat of a bankruptcy.

Also as part of the deal, Northwest executives, managers and other salaried employees will take pay cuts ranging from 2 percent to 23 percent, said McClain. Overall, management will contribute $35 million in savings, with pay cuts averaging 15 percent.

Doug Steenland, who became the airline’s president and chief executive officer with the recent departure of CEO Richard Anderson, was slated to get a $175,000 raise to $675,000.

Steenland had not received a base salary increase since April 2000. But with a 15 percent pay cut, his pay will be shaved to $573,750. And when the impact on possible performance pay is considered, he could end up with a 23 percent pay reduction, the union said.

The airline, however, disclosed this week that it is awarding Steenland 150,000 shares of Northwest stock under its restricted stock award program. They’d be worth about $1.4 million now. They cannot be immediately converted to cash. They vest over three years.

Executives Barry Simon and Andrew Roberts each will get 75,000 restricted stock awards, Tim Griffin and Phil Haan, 50,000.

Last year, Anderson received 175,000 restricted stock awards, Steenland, 130,000; Griffin, 125,000; Haan, 125,000 and chief financial officer Bernie Han, 75,000.

Northwest’s deal with the pilots prohibits the airline from granting any additional stock awards or other compensation to executives after this year for the duration of the agreement, McClain indicated.

Northwest doesn’t need to dish out stock awards to retain executives, he argues.

“That’s a myth,” he said. “The level of compensation is unwarranted.”

Northwest can’t grant executives generous stock awards while asking rank-and-file employees to accept wage cuts, said Jim Atkinson, president of Aircraft Mechanics Fraternal Association, Local 33. “They should forgo the stock awards. That’s the way it’s viewed on the floor,” he said.

Flight attendants are incensed about the stock awards, said Andy Damis, secretary-treasurer of the Professional Flight Attendants Association.

“This is outrageous, when they come to us saying, `We need help to make it through these tough times,”’ he said.