Just get a damn good contract before you guys merge...so AMR and UAL/CAL can follow.
Not sure about damn good but it looks like they're working on something. Yikes.....
Delta, Northwest Focus
On Joint Pilot Contract
By SUSAN CAREY and PAULO PRADA
February 9, 2008
Executives at Delta Air Lines Inc. and Northwest Airlines Corp. are trying to build a common labor contract for the 11,000 pilots at both airlines before they complete a merger deal, according to people familiar with the matter.
The negotiations, considered essential for smooth integration of those key labor groups, center on organizing a fair way of forming a unified, seniority-based roster. Without a prior agreement, talks with those pilots, represented by the Air Line Pilots Association, are tasks that could take years of bargaining to accomplish.
Delta and Northwest want to quickly achieve the synergies that would flow from a merger and avoid a messy, protracted labor wrangle that could arise if they wait to get pilots' agreements after a merger were announced or consummated, those people said. US Airways Group Inc. and America West Airlines, which merged in 2005, still haven't been able to integrate their pilots, leading to inefficiencies and hard feelings.
The pilot talks, which also include provisions for pilots to get equity in the combined carrier, are determining the pace for what otherwise is viewed as a straightforward transaction, said one person close to the situation. Because the pilot talks could lead to improved contract terms for both groups compared with their current contracts, the union is engaged, one person said.
Still, it is taking time despite a rush by executives to complete merger discussions quickly in hopes of getting approval by regulators this year. Given the ongoing discussions, people familiar with the situation said, Delta and Northwest might not be able to finalize their proposed merger until late next week at the earliest.
For Delta, an agreement with pilots is crucial because they represent the carrier's only major labor union. The possibility of a merger, however, is leading other labor groups to grow increasingly vocal.
Labor organizers among Delta flight attendants recently received enough support to make plans next week to announce a vote on whether to join the Association of Flight Attendants, a national union. The attendants now have support from well over half of the airline's 12,000 flight attendants, according to people familiar with their efforts, and next week they are expected to file their plans for a vote with the National Mediation Board.
Betsy Talton, a spokeswoman for Delta, said the airline is "not surprised" by the attendants' plans and that the airline continues to believe that "Delta employees have always benefited from a direct relationship with management." She declined to comment on any negotiations with Northwest or the pilots. Northwest also declined to comment on merger talks.
Delta directors, who met Thursday and Friday, were given a presentation of what a combined airline would look like, said one person familiar with the situation. Though Delta has also discussed a merger with UAL Corp.'s United Airlines, according to people familiar with those discussions, talks with Northwest have been more productive.
Delta's board was also briefed on several other points in the deal negotiations, the person familiar with the meeting said.
The role of Doug Steenland, Northwest's chief executive officer, in a merged company has been resolved, two people familiar with the discussions said. While Mr. Steenland wouldn't be a member of the executive management team, he could take part as a board member.
One point that must be resolved is the possibility that Air France-KLM SA, which has marketing ties with both Delta and Northwest, could invest nearly $1 billion in a combined carrier, according to people familiar with the situation. A spokeswoman for Air France in the U.S. said corporate investments must be addressed by the airline's offices in France; a representative in Paris couldn't be reached late Friday
