Delta pilots call company counteroffer 'overreaching'; threaten to strike if contract rejected
2/10/2006The Delta Air Lines unit of the Air Line Pilots Association said the carrier's pilots will strike if their contract is rejected as part of the Atlanta-based carrier's Chapter 11 bankruptcy reorganization, according to published reports.
Earlier this week, Capt. Lee Moak, chairman of the Delta ALPA unit, told pilots in a recorded message that Delta's counterproposal on a second set of long-term concessions consisted of "little more than their same over-reaching demands, packaged with some minor cosmetic changes." Delta pilots, in November 2004, ratified concessions totaling about $5 billion over five years. That agreement included a pay cut of 32.5 percent. Delta reportedly wants additional cost savings of about $325 million annually.
Moak, who added in the recorded message that he believes Delta is "intent on rejecting our contract," also reportedly told the Associated Press that Delta informed ALPA that it believes the pilots' defined benefit pension plan will be terminated. Defined benefit pensions at US Airways and United Airlines both were terminated during those carriers' reorganization efforts, while Northwest and its pilots have agreed to freeze the pilot defined benefit pension plan at that carrier. Delta pilots, as part of the 2004 concessions package, also agreed to a defined benefit pension freeze. Although legislation that would grant funding extensions to airlines with underfunded pensions has been introduced in Congress, no action has been formally taken.
ALPA, on Thursday, opened a strike center in East Point, Ga., near the company's headquarters at Hartsfield Jackson International Airport
2/10/2006
Earlier this week, Capt. Lee Moak, chairman of the Delta ALPA unit, told pilots in a recorded message that Delta's counterproposal on a second set of long-term concessions consisted of "little more than their same over-reaching demands, packaged with some minor cosmetic changes." Delta pilots, in November 2004, ratified concessions totaling about $5 billion over five years. That agreement included a pay cut of 32.5 percent. Delta reportedly wants additional cost savings of about $325 million annually.
Moak, who added in the recorded message that he believes Delta is "intent on rejecting our contract," also reportedly told the Associated Press that Delta informed ALPA that it believes the pilots' defined benefit pension plan will be terminated. Defined benefit pensions at US Airways and United Airlines both were terminated during those carriers' reorganization efforts, while Northwest and its pilots have agreed to freeze the pilot defined benefit pension plan at that carrier. Delta pilots, as part of the 2004 concessions package, also agreed to a defined benefit pension freeze. Although legislation that would grant funding extensions to airlines with underfunded pensions has been introduced in Congress, no action has been formally taken.
ALPA, on Thursday, opened a strike center in East Point, Ga., near the company's headquarters at Hartsfield Jackson International Airport
