DAL Pilots to Picket in MSP and DTW

[NuGuy]

http://www.clickondetroit.com/news/15828596/detail.html

Nu

 

[FDJ2]

If it's called for I'm glad we are organized and ready to act in a variety of ways.

Still no telling exactly how this will play out, but it's good to be prepared to respond.

Pilot Talks Could Boost
Delta, Northwest Deal
By SUSAN CAREY and PAULO PRADA
April 8, 2008 7:56 p.m.
Delta Air Lines Inc. and Northwest Airlines Corp. could be in a position to proceed with their long-delayed merger announcement as early as next week if Delta management succeeds in current talks with its own carrier's pilots, said people familiar with the situation.

With fuel prices at historically high levels and the economy weakening, Delta and Northwest are under increasing financial pressure that has made a merger look even more compelling. A combination of the nation's No. 3 and 5 airlines by traffic would create the world's biggest airline, with a larger network that could boost revenue and reduce some costs.

They also are running out of time to get a transaction vetted by the current Bush Administration Justice Department, a strategy they prefer to waiting for a new team to arrive in Washington in January.

The complicating factor all along has been their pilots, who have been at loggerheads over how to integrate their separate seniority lists in a merged airline. Now it seems that Delta at least is leaning toward treating the pilot groups differently -- at least initially -- if the combination goes ahead, these people said.

Delta and its 6,000 pilots, represented by the Air Line Pilots Association union, have in recent days been in talks about a new contract that would go into effect if the merger is consummated, but only for Delta aviators, said knowledgeable individuals. A spokesman for the Delta pilots group declined to comment. A spokeswoman for the airline declined to comment on any discussions with its pilots or other airlines.

The Delta pilots are being asked to agree to drop certain restrictions in their current labor agreement in order to give the combined airline more flexibility during the first phase of the merger. In return for dropping language that would limit the merged carrier's flexibility,the Delta pilots would receive pay raises, equity and a board seat, sweeteners perhaps not as generous as those contemplated a few months ago but similar, said one person.

Northwest's 5,000 aviators, represented by another branch of the same union, would keep their current contract, which pays them less generously than the Delta pilots even today.That inequity would give the Northwest group an incentive to find accord with the Delta group on seniority, either through negotiation or arbitration, because they then would be able to negotiate improved, Delta-level pay either when the deal closes or afterward, these people indicated.

A spokesman for the Northwest union group declined to comment.

The current Northwest pilot contract doesn't have as much language that would restrict Delta and Northwest in a combination, people familiar with the matter said. But the quicker the Northwest and Delta pilots have the same contract and are on a single seniority list, the faster the combined company could begin integrating its fleet, scheduling and other operations, reaping immediate savings.

People close to the situation said Delta and its pilots are negotiating, and Delta hopes to reach a decision about how and when to proceed by the end of this week. But issues still could arise to delay or kill the deal. It's also not certain the Delta pilot leadership will agree to final terms of a new, post-merger contract in time for a deal to be announced next week, they said. The new contract terms also would need to be ratified by the Delta pilot membership in the coming months.

But the gist of the transaction would contain many of the same features as the one the two carriers were close to announcing in late February, before the pilot seniority dispute derailed that plan. Terms include a share swap a near market rates, with a slight premium for Northwest holders; an investment by European marketing partner Air France-KLM SA; and retention of the Delta name, headquarters and chief executive officer, Richard Anderson.

Seniority is important to pilots because it dictates which types of planes they fly and whether they are captains or first officers, two determinants of pay, along with when they can take time off and whether they would be laid off in a downsizing. Delta pilots claimed Northwest pilots' proposals would jeopardize their members' seniority and hurt their career prospects. Northwest's pilots offered to put the issue to a neutral arbitrator, a plan the Delta pilots rejected.

After a lull last month, Northwest revived the merger idea, making a proposal to Delta that the two go ahead -- but without a common pilot labor contract and seniority agreement covering all 11,000 aviators upfront. That is the way most airline mergers work, leaving it to the pilots after consummation to wrangle over seniority, ultimately put the matter to arbitration, and then bargain with management on a new contract. The process can take years.

By reaching agreement with Delta pilots sooner, the merged airline could shorten that process. Such a step also could win the Delta pilots' support and set the tone of Delta labor relations right from the date of the merger, said one person familiar with the matter. Mr. Anderson, Delta's CEO, has said he doesn't want to do a deal unless his workers' seniority is protected. He was a proponent of trying to work everything out with both pilot groups before the merger, an idea that now is losing currency.

 

[ACL65PILOT]

Wondered where you have been FDJ...

 

[NuGuy]

If it's called for I'm glad we are organized and ready to act in a variety of ways.

Still no telling exactly how this will play out, but it's good to be prepared to respond.

Heyas,

Since rumors are a hot topic here...the latest one around NWA is that the Delta BOD gave RA marching orders to do the deal with or without the pilots.

An WSJ article has mentioned that the BoD itself could be subject to replacement by the equity holders if this doesn't happen.

More scuttlebutt is that the DAL guys/gals are only going to protest NWA management, not DAL, for pushing the merger.

But enough rumors...I assume you guys are going to picket in ATL, JFK and SLC, too, right?

Nu

 

[Clacker]

"...In return for dropping language that would limit the merged carrier's flexibility,the Delta pilots would receive pay raises, equity and a board seat, sweeteners perhaps not as generous as those contemplated a few months ago but similar, said one person.

Northwest's 5,000 aviators, represented by another branch of the same union, would keep their current contract, which pays them less generously than the Delta pilots even today.That inequity would give the Northwest group an incentive to find accord with the Delta group on seniority, either through negotiation or arbitration, because they then would be able to negotiate improved, Delta-level pay either when the deal closes or afterward, these people indicated..."


Ah yes, the ol' "carrot and stick" approach.

This should go a long ways towards achieving labor harmony...

 

[FDJ2]

Heyas,

Since rumors are a hot topic here...the latest one around NWA is that the Delta BOD gave RA marching orders to do the deal with or without the pilots.

We'll see what happens. In an ideal world we would all play nice in the sand box, resolve our issues expeditiously and create a strong and growing airline that benefits us all.

Unfortunately, we're not in an ideal world, so it's best to be prepared to smack the other guy upside the head with a shovel if he tries to kick sand in your face.

However, there are no guarantees of success, so again, we'll see what happens.

An WSJ article has mentioned that the BoD itself could be subject to replacement by the equity holders if this doesn't happen.

Anything is possible.

More scuttlebutt is that the DAL guys/gals are only going to protest NWA management, not DAL, for pushing the merger.

I'm not saying that's necessarily true or not, but I suppose it depends on who may or may not need that shovel smacked across his head.

But enough rumors...I assume you guys are going to picket in ATL, JFK and SLC, too, right?

We're ready if need be to picket anywhere it's needed. Having said that, don't assume that picketing is the only response available. It's just the most visible response and tends to get the most attention.

I'm sure NWAALPA is also strategically prepared to respond if need be.

Hopefully things will work out for the best for all of us. However, hope isn't a strategy.

 

[Occam's Razor]

Harmony through leverage?

Human nature, even PILOT human nature, is relatively predictable.

I predict not everybody will be able to rationalize this.

 

[tomgoodman]

Don't do it

I predict not everybody will be able to rationalize this.

I certainly hope not. It sounds like "stick 'em with a B-scale until they cave." That would lay an egg of disunity which would hatch during the next contract negotiation, to the delight of management. :bomb:

 

[Fly4hire]

http://www.clickondetroit.com/news/15828596/detail.html

***A source close to the situation said the decision to protest came after Delta Board of Directors reportedly ordered CEO Richard Anderson to move ahead on merger talk with Northwest Airlines, with or without, the support of the pilots' union***.

Do you still think RA is your buddy, or that all of this is not another scene in the ballet of a carefully orchestrated plan for a long ago predetermined outcome?

Do you really think that it's the evil Doug Steenland who is pushing this merger, after uncle Richard said he'd wouldn't do the merger without the cooperation of the two pilot groups?

Sure, go picket in MSP, that'll show em'. RA is your friend - he even told you so.

Be careful you don't slip on the ice and hurt yourselves.....

 

[~~~^~~~]

Who knows what this means!?! This sounds like another scope sale to me.

The Delta pilots are being asked to agree to drop certain restrictions in their current labor agreement in order to give the combined airline more flexibility during the first phase of the merger. In return for dropping language that would limit the merged carrier's flexibility,the Delta pilots would receive pay raises, equity and a board seat,

In other oddly timed news I recieved a draft of a shot across the bow to Prater from the RJDC leadership on scope negotiations in this deal.

Again, who knows what this means? We do know that NWA's fragmentation language was thought to be an issue.

Using Occam's Razor to determine the most likely truth, it sounds like a scope sale with NorthWest's DC-9 pilots put on the front lines.

Crud, I hope we do not outsource more flying. ...