General Lee
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- Aug 24, 2002
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April 14, 2008, 12:30 pm
A Shutout of Northwest’s Pilots
Posted by Heidi N. Moore, WSJ Online
Well, that pesky struggle for dominance seems to be tilting heavily toward Delta Air Lines in the merger talks between Delta and Northwest Airlines.
Delta, Northwest and their respective pilots’ unions have been tussling over the issue of how pilots should be ranked and promoted in the event the two companies combine. Delta’s pilots want the combined staffs to adhere to their system; Northwest’s pilots want theirs. The two airlines considerately tried to work out the issue before announcing any deal, but, like many other good ideas in the airline industry, that seems to have fallen by the wayside. Northwest first proposed pushing the talks about seniority until after any merger, just to get a deal done; the possibility remains of the two airlines going ahead without the blessing of their pilots.
Delta remains in talks with its 6,000 unionized pilots about a contract that would cover them after the merger–and only them. That can’t be going over well with Northwest’s pilots, who were feeling left out of this whole process already–not the least because it was their own airline that suggested going ahead without the pilots’ agreement. The pilots’ spokesman, Dave Stevens, said a deal has to be “in the interests of NWA pilots, customers and employees” in order to avoid “vigorous opposition.”
It is going to be tough for the Northwest pilots to maintain negotiating leverage. Delta appears to be approaching this deal more as a takeover than a merger, and it has long tried to maintain the upper hand in the on-again, off-again negotiations. Delta even set out six principles any deal would have to meet, including that Delta’s seniority rules, pension plans and headquarters prevail in the deal.
It isn’t clear what Northwest’s pilots might be planning next, but with a deal announcement expected as early as Tuesday, they will have to be thinking fast.
Bye Bye--General Lee
A Shutout of Northwest’s Pilots
Posted by Heidi N. Moore, WSJ Online
Well, that pesky struggle for dominance seems to be tilting heavily toward Delta Air Lines in the merger talks between Delta and Northwest Airlines.
Delta, Northwest and their respective pilots’ unions have been tussling over the issue of how pilots should be ranked and promoted in the event the two companies combine. Delta’s pilots want the combined staffs to adhere to their system; Northwest’s pilots want theirs. The two airlines considerately tried to work out the issue before announcing any deal, but, like many other good ideas in the airline industry, that seems to have fallen by the wayside. Northwest first proposed pushing the talks about seniority until after any merger, just to get a deal done; the possibility remains of the two airlines going ahead without the blessing of their pilots.
Delta remains in talks with its 6,000 unionized pilots about a contract that would cover them after the merger–and only them. That can’t be going over well with Northwest’s pilots, who were feeling left out of this whole process already–not the least because it was their own airline that suggested going ahead without the pilots’ agreement. The pilots’ spokesman, Dave Stevens, said a deal has to be “in the interests of NWA pilots, customers and employees” in order to avoid “vigorous opposition.”
It is going to be tough for the Northwest pilots to maintain negotiating leverage. Delta appears to be approaching this deal more as a takeover than a merger, and it has long tried to maintain the upper hand in the on-again, off-again negotiations. Delta even set out six principles any deal would have to meet, including that Delta’s seniority rules, pension plans and headquarters prevail in the deal.
It isn’t clear what Northwest’s pilots might be planning next, but with a deal announcement expected as early as Tuesday, they will have to be thinking fast.
Bye Bye--General Lee
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