Oak Creek-based Midwest Airlines today announced that it plans to reduce the workforce of Midwest Airlines and its Skyway subsidiary by about 1,200 employees, or 40 percent of current staffing levels.

The majority of the jobs affected are related to the airline's previously announced decision to remove its 12-plane MD-80 fleet from service this fall, as well as other schedule adjustments to be announced.

"In order to successfully restructure, there is no way to avoid deep and painful reductions to our current workforce," said Timothy E. Hoeksema, chairman and chief executive officer. "We will go about this task with compassion and dignity. Midwest has always been a place where employees take care of one another -- in times that are good and in times that are hard. Perhaps more than any other time in our history, we must hold true to this value."

The company said it would begin notifying affected employees today. The reductions will take the form of furloughs or position eliminations, depending on job function. The reductions are spread throughout the airline's flight operations, inflight, operations, maintenance and general administrative functions. The effective date of the reductions will vary by job function, but most will take place no later than mid-September.

In addition, the company said it is continuing talks this week with the Air Line Pilots Association and the Association of Flight Attendants, to reach agreements on concessions necessary to reduce the airline's cost structure.

However, last week, in a statement to its members, the ALPA said that the company is not bargaining in good faith and refuses to budge from its request for drastic pay cuts.

Faced with substantial losses caused by skyrocketed fuel prices that are crippling the airline industry, Midwest Airlines is demanding that its pilots take pay cuts of 45 to 65 percent. A junior captain's annual salary would drop from $120,000 to $31,000. A Midwest senior captain's salary would drop from $150,000 to $79,000 under the company's proposal.

The union made a counter offer to the company's demands, but the company has refused to move from its wage cut demands, said Jay Schnedorf, a captain and chairman of the Midwest unit of the Air Line Pilots Association.

"We are making concessions worth millions of dollars," Schnedorf said. "The company's proposal has not changed one penny. It looks like they have no intention to deal with us outside of the bankruptcy procedure."

Schnedorf said the pilots union is still open to negotiating with the company, but they will not accept the company's steep wage cut demands.

"They are not going to fly airplanes for Midwest Airlines at those wages," he said.