Air Transport
Delta Pilots Accept Pay Cuts, Comair's Review Them
Aviation Week & Space Technology
01/02/2006, page 62
James Ott
Cincinnati
Delta pilots accept temporary agreement. Comair crews face a similar fate.
Printed headline: Cuts That Bind
Painful cuts are preferable if they avert even the chance that a labor contract can be canceled in bankruptcy. Pilots at Delta Air Lines demonstrated that point last week in a close balloting on a temporary 15% pay cut. Their Chapter 11 colleagues at Delta Connection carrier Comair face the same dilemma this month: Take a cut or else.
Eligible voters in the Delta cockpit group accepted an interim agreement by a 3,001-2,165 vote. John Culp, a Boeing 767 captain, says the favorable balloting indicates pilots are willing to give management more time to produce a definitive business plan. Delta and the Air Line Pilots Assn., which represents the 6,500 pilots, have agreed to try to reach a comprehensive labor contract by Mar. 22. If they fail, a motion by management to void the contract under Section 1113 of the bankruptcy code will be heard by a neutral third-party panel.
Delta had been seeking a deeper cut before negotiators settled on the temporary agreement, averting a courtroom showdown and strike by the pilots' group (AW&ST Dec. 19/26, 2005, p. 42). ALPA Chairman Lee Moak, saying he's hopeful a contract will be agreed upon, added, "We will not work willingly without a contract."
The airline is nearing the end of its first, $5-billion cost-reduction plan and has initiated a second, $3-billion cost-paring plan for 2007.
COMAIR'S FINAL CONTRACT PROPOSAL to pilots, calling for a 9-21% pay cut, will be put to a vote soon. ALPA, though not endorsing the proposal, will present contract details during a road show. Negotiations with management deadlocked last month, resulting in the final management proposal and a decision by the union's Master Executive Council to forward the proposal to a rank-and-file balloting.
If accepted by a majority of the 1,914 Comair pilots, the pilots' group would lose much of what it won in a 2001 contract after an 89-day strike, the longest in the U.S. in two decades. The largest pay cut is proposed for first officers, 13-21%. Management is seeking to place first officers in one class no matter what type of aircraft they fly. Captains are looking at a pay cut of 9-15%.
One of the more significant changes would be elimination of the company program to match a pilot's contribution to their pensions. Under that program, says Brian Moynihan, the union's communications chairman, the company matched contributions dollar for dollar up to 5% of the pilot's annual income.