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.