Dalpa Concerned

[General Lee]

Reuters
UPDATE - Delta pilots ponder productivity in give-back deal
Friday July 9, 1:19 am ET
By Meredith Grossman Dubner

(Adds details of proposals, paragraph 11)

CHICAGO, July 8 (Reuters) - As the pilots union at Delta Air Lines Inc. (NYSE:DAL - News) prepares to make a formal offer of concessions to management in the coming weeks, the union's top official said on Thursday he was seeking ways to make pilots more productive.

Capt. John Malone, head of Delta's unit of the Air Line Pilots Association (News - Websites) , told Reuters in an interview the union was not pleased with changes to work rules made at rivals American Airlines and bankrupt United Airlines.

Atlanta-based Delta has been in talks on concessions for the last year with its 7,300 pilots, among the industry's highest paid. Discussions had stalled in recent months, but the union has said its new proposal would contain more givebacks than its last.

Delta, the No. 3 U.S. airline, has warned it may be forced to file for bankruptcy if it cannot secure major cost cuts.

"The idea is to make the pilots more productive. I'm not against productivity increases, they just have to be done humanely," Malone said, adding that improved productivity would lead to big savings for Delta. He would not specify an amount.

"We haven't been crazy about the way the work rules have shaped up at either American or United -- and sort of the panic situation they got in at the end -- so we're trying to get in there early and shape them in a way that's a little bit more palatable for both sides while at the same time increasing productivity."

Pilots at No. 2 United, part of UAL Corp. (OTC BB:UALAQ.OB - News), agreed to heavy concessions in bankruptcy, and pilots at American, part of AMR Corp. (NYSE:AMR - News), agreed to major givebacks to help keep the world's largest carrier out of Chapter 11.

Malone said Delta had not asked pilots for a reduction in pension benefits. Pilot pensions are a sensitive issue after pilots at US Airways Group (NasdaqNM:UAIR - News) had their pension terminated in bankruptcy and replaced with a cheaper one.

PRODUCTIVITY AND PENSIONS

United, which has told employees it will need deeper cost savings to emerge from bankruptcy, could ask pilots for more concessions or try to alter their pension plan as well.

"Of course, we're familiar with what occurred at US Airways and we're watching very closely what is going on at United," Malone said. "The question would be -- is that applicable to Delta? Our pension is not as distressed as US Airways' was, and that's the biggest difference."

Pilots have offered pay cuts of 13.5 percent and other work rule changes. Delta has said it must cut pilot costs by 45 percent, including pay cuts of 34.5 percent and other changes.

John Darrah, former head of the pilots union at American Airlines, said Delta and its pilots face a dire situation in a market dominated by low-fare carriers such as Southwest Airlines Inc. (NYSE:LUV - News)

"Delta is not competitive in the new marketplace," Darrah wrote in a June 30 letter to members of his union as he departed from his post.

There are many reasons why a deal between Delta and its pilots sooner rather than later would benefit both sides, analysts have said.

For one, Chief Executive Gerald Grinstein is expected to complete a strategic review of Delta by August, which analysts expect will shed more light on its worsening financial state.

Delta's financial outlook is expected to decline as autumn and winter approach and cash dwindles -- leading to a liquidity crisis and possible bankruptcy filing, analysts have said.

Productivity, work rules and pension benefits are all up for discussion. Malone declined to prioritize those issues or pinpoint any one he considered nonnegotiable.

He said he is in constant communication with a group of creditors organized by restructuring firm Saybrook Capital. Malone, whose two-year term as head of Delta's only major union began in October, said he talks to Grinstein weekly and is pleased with his access to top management.

"He's got a very difficult job to do," Malone said. "I'm glad it's not my job."




Sounds like Grinstein and Malone talk a lot....(weekly) Hmmmmm....

Bye Bye--General Lee

 

[spinproof]

...its been flowing down hill our entire lives! While we have been aware of the stinch from above it appears you will soon!!!
...add whiney, arrogant,self asorbed Dhead to that Doeboy and private!!!

Bye Bye....

 

[spinproof]

Doeboy the craps been flowing on us for years funny how you guys puke in your plate and want to pass it on....."here we're just trying to help you poor guys out".....Please!!!!

....now you want my support for your plight...take another hit on that "scope" pipe!!! Quit trying to blame your problems on everyone else. Quit sacrificing others for your well being!....then maybe we can be friends....maybe...otherwise F.O.

...I mean that with all due respect.

Bye Bye ;-)

 

[~~~^~~~]

he will probably add a percent or two to the newly proposed pay cut instead of giving up as many work rules, which are harder to get back.

He ISN'T rolling over and giving up jobs

General: I think you are right. I'm trying to find the source of the "6,000" number that I remember reading. More important to ALPA than the furloughs - is that 6,000 is very close to the number it would lake to wrestle ALPA back from those who hijacked the union and the hijackers are not giving up that easy. Those in power ( with half million dollar ALPA compensation packages ) do not want to risk "democracy" at a BOD meeting.

You are also assuming the RJDC litigation, filed prior to the Statute of Limitations for a cause of action resulting from changes when the C2K scope took effect, doesn't exist.

Cohen, Weiss and Simon may have to put a leash on the Delta MEC, or the Delta MEC may have to leave ALPA in order to successfully take jobs from ASA and Comair pilots. Your jets for jobs proposals will get a different reception from the ASA and Comair pilots and we have already seen ALPA's play book by watching what mainline did to the US Air Express pilots.

General, it is nothing personal, but we will defend ourselves. Your MEC sold scope and now those "permitted aircraft types" are being flown by other ALPA members with just as much right to negotiate as you have. I believe this is the last time we will see mainline lock out other ALPA members on the property because the Courts will intervene. All the pieces are already in place and yet, ALPA is walking right into the breach.

 

[Vortilon]

Fins,

ALPA has polled the membership a couple of times in recent months as to what our collective concerns are, including issues important to furloughees. There has been NO mention of J4J or anything even close to that. There are no rumors to that effect either. Again, I think the collective DCI Consipiracy theorists are being paranoid right now. Hard not to be, I understand, but I think its unfounded.

The negotiating committee sends us updates on what they are working on and there's no mention of anything like that.

 

[~~~^~~~]

Vortilon :

I would hope you are right, but indications are otherwise.

The Delta MEC is picking their words very carefully and new words like "constituencies" and "stakeholders" cover negotiatings involving employees that are not represented by the Delta MEC, yet are having their jobs negotiated by the Pilots' union.

With the ongoing litigation, the Delta MEC is not going to come right out and say that "we will take their jobs and burn them to the ground." Instead I think that once a back room deal is made it will be forced on the ASA and Comair MEC's as "take it, or the airplanes will be diverted to a new certificate." Then ALPA's defense will be that the ASA and Comair MECs actually voted for it.

You might find this hard to believe, but I want to see the Delta pilots recalled and the company succeed. But, the best way to accomplish this is to end ALPA apartied - instead it appears ALPA's negotiations are sticking to the same formulas that failed elsewhere in the industry.

 

[80drvr]

I read the article and thought it was good. Malone isn't biting on the UAL or AA type productivity, and he will probably add a percent or two to the newly proposed pay cut instead of giving up as many work rules, which are harder to get back. He ISN'T rolling over and giving up jobs--he also stated that UAL and AA have had the highest "sick call" rate ever.

That is correct--AA's sick rate nearly doubled after the concessions! And the ivy leage bean counters are spending all sorts of effort trying to figure it out. Too funny.

 

[Vortilon]

Fins,

I think the Comair MEC would be issuing similar statements if they were the only ones being singled out for concessions by the company...its human nature. If Comair management was saying "only Comair pilots can save the company", you'd find it an equally laughable and non-comprehensive game plan. In the end, Dalpa can't negotiate for anyone besides the pilots, and management will decide how they want to proceed with other employee groups. Maybe they'll come for cuts, maybe they won't...none of us knows.

Personally at a MINIMUM I'd like to see the wholly-owned DCI carriers merged. It will be interesting to see if GG's corporate game plan addresses the inefficiencies of operating 2 identical companies. I ran into a Comair mechanic that was flown out to Atlanta to work on a CRJ. Apparently ASA mechanics aren't allowed to work on them. I know this is oversimplified and management probably fears allowing labor a larger unfied voice but if they are seriously trying to make Delta a lean-mean brand that will do well even during the tough times, they've got to look at this. (sorry for the run-on sentence)

Ideally, it'd be great to have DCI & DAL merged....I think there could be many efficiencies gained there as well and keep all DL flying under one roof. And I'm not just saying that because I'm a bottom feeder at DAL. If it were up to me I'd then ditch DCI Acadamy & AirElite and focus on the core business of being an airline. We could still license the name to the flight school. The charter company could exist on its own...it doesn't really provide much value to the Delta "brand" anyway.

But the only questions the CEOs let me answer these days is "how long until we get there, what's the weather like, and where is the toilet?"

 

[JohnDoe]

spinproof:
"Doeboy the craps been flowing on us for years funny how you guys puke in your plate and want to pass it on....."here we're just trying to help you poor guys out".....Please!!!!

....now you want my support for your plight...take another hit on that "scope" pipe!!! Quit trying to blame your problems on everyone else. Quit sacrificing others for your well being!....then maybe we can be friends....maybe...otherwise F.O."



Doeboy??? What are you, in highschool?? Guess I was just shown the mental capacity I am dealing with (rather than make an intelligent response, use insults.....).

No, I do not want your support. I have no dog in the Delta/DCI fight that goes on here. Never did, never will.

And no, I am not blaming my problems on anybody (you got that from where??). I just find it entirely laughable that people like you enjoy the gutting of mainline contracts, yet ignorantly believe it won't eventually affect you. It is going to affect us all in the end.

And finally, if the roles were reversed and you were at mainline, you would be doing the EXACT same thing to protect your own career, so get off your high horse. You can deny it all you want, but everybody on this forum knows its the truth. Its 10's of thousands of years worth of human nature at work.

 

[CF34-3B1]

Fins,

Personally at a MINIMUM I'd like to see the wholly-owned DCI carriers merged. It will be interesting to see if GG's corporate game plan addresses the inefficiencies of operating 2 identical companies. I ran into a Comair mechanic that was flown out to Atlanta to work on a CRJ. Apparently ASA mechanics aren't allowed to work on them. I know this is oversimplified and management probably fears allowing labor a larger unfied voice but if they are seriously trying to make Delta a lean-mean brand that will do well even during the tough times, they've got to look at this. (sorry for the run-on sentence)QUOTE]


The MX aspects are just the tip of the iceberg. 2 VPs of toilet paper, 2 parts inventories, 2 of everything, plus my personal favorite, dozens of CMR crews at the ATL Westin, costing who knows how many hundreds of thousands in hotel fees alone, in the name of strike proofing ATL.

We obviously don't have the big picture.