Delta: Tentative Deal With Pilots on Pay

Malko

ughhh
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Delta: Tentative Deal With Pilots on Pay


Associated Press Last update: December 11, 2005 at 8:16 PM



ATLANTA (AP) - Delta Air Lines Inc. said late Sunday it has reached a tentative agreement on wage reductions with its pilots' union.


The agreement, subject to ratification no later than Dec. 28, provides for a 14 percent hourly wage reduction and reductions in other pilot pay and cost items equivalent to approximately an additional 1 percent hourly wage reduction.
The interim reductions with the 6,000 Air Line Pilots Association members at Delta would take effect Thursday and remain in place while the parties attempt to reach a comprehensive agreement. Both sides said they hope to do so by March 2006.
The nation's No. 2 airline and ALPA will ask a bankruptcy court to suspend a hearing on the company's motion to reject the existing Delta-ALPA collective bargaining agreement.
"This agreement reflects the resolve of Delta people to work together to help save the company,'' said Ed Bastian, Delta's chief financial officer. "We recognize and appreciate the additional sacrifice this will represent.''
An ALPA spokesman, John Culp, called the agreement "a positive step in the right direction.''
"The Delta MEC (master executive coumcil) remains committed to reach a consensual agreement that responds to the legitimate needs of the corporation in bankruptcy,'' Culp said.
Atlanta-based Delta sought Chapter 11 bankruptcy protection in September. It had said it needs $325 million in annual labor cost savings to successfully reorganize. The airline's restructuring plan calls for an additional $3 billion in annual cost reductions and revenue improvements to be realized by the end of 2007.
Delta has lost more than $11 billion since January 2001.
 
To be honest I was shocked that a deal got done. I never figured the company would budge. I was prepared for the pilots to strike if needed. They have alot of support from the non union people once they were able to understand what is was all about. Dont get me wrong I am glad its over for now but luckily my wife has a good income. Its over for now anyway.
 
Very Happy for Dougs sake

But It is time for the pilots to take as much of a stand as they can. Thsi amounts to about a what 40% cut in a year? Ouch. I couldn't stomach that. not without management taking severe cuts.
 
I don't think it's over.. word on the street says that the pilots are pretty darn pissed off at the union for agreeing on a TA before even going in front of the BK judge to give their speil...Personally, I would have thought they would have waited until they went for their session with the BK judge before agreeing to anything with mgmt - just kind of feels like a cop out on my end - esp when we really need to be taking a stand and standing strong, as a united unit for all pilots.

going from 19% (via mgmt) to 9% (via union) to now 14% is a bit higher than we expected! I tend to wonder what contract QOL issues have changed along with the salary cut...
 
Kristie said:
I don't think it's over.. word on the street says that the pilots are pretty darn pissed off at the union for agreeing on a TA before even going in front of the BK judge to give their speil...Personally, I would have thought they would have waited until they went for their session with the BK judge before agreeing to anything with mgmt - just kind of feels like a cop out on my end - esp when we really need to be taking a stand and standing strong, as a united unit for all pilots.

going from 19% (via mgmt) to 9% (via union) to now 14% is a bit higher than we expected! I tend to wonder what contract QOL issues have changed along with the salary cut...

Can ALPA agree to cuts without getting pilots approval? They after all work for the pilots not the otherway around!

-Matthew
 
Maximillian_Jenius said:
Can ALPA agree to cuts without getting pilots approval? They after all work for the pilots not the otherway around!

-Matthew

The agreement, subject to ratification no later than Dec. 28, provides for a 14 percent hourly wage reduction and reductions in other pilot pay and cost items equivalent to approximately an additional 1 percent hourly wage reduction.

Matthew,

The agreement is subject to ratification. While I am not in ALPA, I have been in unions before. Generally the governing board will negotiate a contract with the employer and then forward it onto the union members when they feel it is acceptable. If the board feels it is acceptable, the union members can still vote the contract down.
 
Maximillian_Jenius said:
Can ALPA agree to cuts without getting pilots approval? They after all work for the pilots not the otherway around!

-Matthew

It depends on the bylaws of the union. For big issue stuff the union "managment" (MEC mostly) is often required to get ratification from the union members. For little things they are empowered to make their own deals. It is normally worded that pay, pension and QOL issues need membership ratification.
 
Kristie trust me I am backing the pilots on this whole deal but by taking this now could be better than the judge saying you are going to give more than the 19% the company wanted. I would like to have seen the pilots hold out longer to make the company play its hand. But if not ratified then its back to letting the judge handle it.
 
BobDDuck said:
It depends on the bylaws of the union. For big issue stuff the union "managment" (MEC mostly) is often required to get ratification from the union members. For little things they are empowered to make their own deals. It is normally worded that pay, pension and QOL issues need membership ratification.
to expand on that, this particular change in contract needs a ratification from the pilots...or in layman terms, a vote.
 
Don't mistake a tentative deal with the "union" as a tentative deal with the "pilots".

The media certainly isn't covering this, but we're there's certainly a 'riot' of sorts underway. Even got to drop a couple of 'f' bombs and scream at some reps today!

The "union" the "company" and the "pilots" are three mutually exclusive entities.
 
I read that online somewhere that the pilot group isnt to happy with negotiating commitee....
 
If I said "F Bomb" yes they're not happy with the TA, it would be a grand understatement.

I even sent Kristie a picture of the near riot that ensued this morning. Holy cow! I was literally waiting for people to start throwing blows, and this is "laid back" SLC -- I can't even imagine ATL. They'll probably have Argenbrite do security. And I'm not kidding.
 
Callous said:
Too bad, I had hoped the pilots would strike -- for a long time.

I for one was hoping that Delta & Union would work something out, and did not want to see a strike, which does nobody any good.

As for what the Union negotiation team agreed to, looks like they have some explaining to do, to the pilots, if this is not what the pilots wanted.
 
Doug Taylor said:
If I said "F Bomb" yes they're not happy with the TA, it would be a grand understatement.

I even sent Kristie a picture of the near riot that ensued this morning. Holy cow! I was literally waiting for people to start throwing blows, and this is "laid back" SLC -- I can't even imagine ATL. They'll probably have Argenbrite do security. And I'm not kidding.

Doug

Has the ALPA team released why yet they agreed to this deal?
 
No, seriously, mad luv for the Pengy, but the union is out-to-lunch and I'm unwilling to be the 'point man' for their dastardly deeds.
 
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