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Question for DAL,CAL,NWA,UAL Pilots RE Mergers and Pay Raise/Work Improvements....

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120% Torque

Well-known member
Joined
Oct 17, 2002
Posts
277
For each of you flying for one of these carriers what would you hope to attain in pay increases and work rules as a minimum for merging? If I am reading the press releases correctly from DALPA and NWA ALPA they are telling their respective managements they "could" be on board with a merger if it made sense for their pilots, with little job loss and increases in the areas mentioned above. They obviously intend to use managements desire to merge as leverage to bargain for gains (or some restoration) of pay and work rules.

Once again, what do each of you think is realistic and what would you hope to see as a result of this? (ie Delta had two pay cuts forced upon them during BK....a 32.5% pay cut followed by a 14% pay cut....would it be reasonable to ask for the 14% immediately with more to be negotiated in 2009/10?) Thoughts please?
 
For each of you flying for one of these carriers what would you hope to attain in pay increases and work rules as a minimum for merging? If I am reading the press releases correctly from DALPA and NWA ALPA they are telling their respective managements they "could" be on board with a merger if it made sense for their pilots, with little job loss and increases in the areas mentioned above. They obviously intend to use managements desire to merge as leverage to bargain for gains (or some restoration) of pay and work rules.

Once again, what do each of you think is realistic and what would you hope to see as a result of this? (ie Delta had two pay cuts forced upon them during BK....a 32.5% pay cut followed by a 14% pay cut....would it be reasonable to ask for the 14% immediately with more to be negotiated in 2009/10?) Thoughts please?

They don't have the stones to do this. Their "raise" this year wasn't even half of what inflation was for '07.
 
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False hopes

For each of you flying for one of these carriers what would you hope to attain in pay increases and work rules as a minimum for merging?

A better question: "How severe will the pay cuts and work rule concessions be?" Management and the creditors want "synergies", by which they mean less for labor and more for them. If any workers see an improvement, it will only be at the expense of what other workers have or would have had. The trend is, unfortunately, very clear.:(
 
A better question: "How severe will the pay cuts and work rule concessions be?" Management and the creditors want "synergies", by which they mean less for labor and more for them. If any workers see an improvement, it will only be at the expense of what other workers have or would have had. The trend is, unfortunately, very clear.:(

Tom,

Most analysts have said this is the time to actually take back some of the things that were taken in BK. As far as "synergies" go, can you name some? Most of the local politicians will be all over management to make sure hubs don't close and to try to save as many jobs as possible.

As far as pay raises, that is up to the MECs, and I am sure the NWA work rules (which were mostly trashed to keep the pensions) will be brought up to par with Delta's (which are better). A Northwest DC9 guy I talked to said he was on a 5 day trip that had the first day worth 1 hour (he had one leg MSP-ORD). That would likely be gone. Things will be cleaned up, and you can bet job protections would also be involved, like adding additional people to that infamous no furlough clause. (unless another 9-11 happens, it is better than nothing)

Bye Bye--General Lee
 
Tom,

Most analysts have said this is the time to actually take back some of the things that were taken in BK. As far as "synergies" go, can you name some? Most of the local politicians will be all over management to make sure hubs don't close and to try to save as many jobs as possible.

As far as pay raises, that is up to the MECs, and I am sure the NWA work rules (which were mostly trashed to keep the pensions) will be brought up to par with Delta's (which are better). A Northwest DC9 guy I talked to said he was on a 5 day trip that had the first day worth 1 hour (he had one leg MSP-ORD). That would likely be gone. Things will be cleaned up, and you can bet job protections would also be involved, like adding additional people to that infamous no furlough clause. (unless another 9-11 happens, it is better than nothing)

Bye Bye--General Lee

This coming from the guy who said that taking pay cuts would keep them out of Ch 11.
 
Tanky, I actually have you on ignore, and it might be the best thing I have ever done.

You bring nothing to this board.

Bye Bye--General Lee
 
If you are ignoring me, then why are you replying to me?

tClown I dont know who wears a bigger bleeding heart about not getting hired by a major, you or Pocono Pilot. There are many people who are happy at their current employer, who dont have a desire or a need to fly for a major, you are not one of those people. Your jealousy is like a cancer based upon your constant sad replies on this board. It eats at you and make you strike out on this board. Get some help. You are showing a sad and pathetic side of yourself that many including myself dont care to see. your angered posts only serve to clog up this board with useless information.

Also, you dont seem to have a sound basis in facts and mostly you just try to stir the pot. At least the General, as abrasive as he can be brings some facts to back up his claims whereas yours is mostly hostilities wrapped around conjector.

That said I think you need a little review in what happened and how the pay cuts at Delta occurred. Delta management used a BK judge with a Guillotine hanging over the pilots heads to force the issue. The pilots were close to striking a strike that was being called a "murder suicide" by most, including ananlysts outside the company. Even now after the fact a look at the cash in the bank at the time showed the company was about two weeks away from chapter seven liquidation. There was very little leverage to do anything at the time....ever try to negotiate with a gun to your head? Ultimately the stategy taken was "live and fight another day". Now that some profits are trickling back in and some leverage is coming back and Delta managment no longer has the advantage of a BK judge it is generally agreed the momentum needs to shift and the bar pushed back up.

Finaly the question remains, TO THOSE WHO WORK FOR ONE OF THE NAMED AIRLINES ABOVE what would you hope to achieve in work rule changes and pay increases during the posturing/negotiating coming as a result of managements desire for a merger?

http://www.msnbc.msn.com/id/10028262/

Delta warns of possible pilots strike

Beleaguered carrier says move would be 'murder-suicide'

ATLANTA - Delta Air Lines Inc. said Monday that if its pilots strike should their contract be rejected in bankruptcy court, it would be “murder-suicide” and in effect put the nation’s third-largest carrier out of business.
The comments by the Atlanta-based airline came two days before a U.S. Bankruptcy Court judge in New York will hold a hearing to discuss Delta’s request to reject its pilots’ collective bargaining agreement.
Delta said in the filing that if its motion is granted, it will impose $325 million in concessions it is seeking from its pilots.
Story continues below ↓ advertisement The Air Line Pilots Association, which represents Delta’s 6,000 pilots, has raised the prospect of a strike if the contract is rejected by the court, and it has scheduled a rally for Tuesday to defend the contract.

But in its filing Monday, Delta said a strike would be disastrous and, it maintains, illegal.
“ALPA devotes substantial space in its objection to the balance of the equities, using as its centerpiece a ’murder-suicide’ threat,” the airline wrote. “Deny the motion to reject, the court is told, or the association will call a post-rejection strike that will kill the company and eliminate every pilot job — indeed every Delta job.”

Delta argued in the filing that the Railway Labor Act prevents the pilots from striking.

“Even if the threat were realistic — even if Delta’s pilots seriously intended to put the company into liquidation rather than agree to needed concessions — the threat would be a hollow one,” the airline wrote.

A union spokesman did not immediately return a call Monday seeking comment.
Even though it believes it’s on solid legal ground, Delta said it can’t predict whether it will be able to prevent or stop a strike if its pilots choose to walk off the job if their contract is thrown out in bankruptcy court.

Delta said in its quarterly report to the Securities and Exchange Commission earlier Monday that it believes a strike by its pilots would be illegal, but at the same time it warned that it doesn’t know if it would be able to get a court order to stop it.

“In addition, if we or our affiliates are unable to reach agreement with any of our unionized work groups on future negotiations regarding terms of their collective bargaining agreements, or if additional segments of our work force become unionized, we may be subject to work interruptions or stoppages,” Delta said.
Delta said it needs the $325 million in concessions it is seeking from its pilots as part of its recovery. The pilots have offered $90.7 million in average annual concessions over four years.

Delta said in Monday’s bankruptcy court filing that it offered the union on Friday to reduce the pay reduction portion of its concessions proposal from 19.5 percent to 19 percent, but with other changes that would actually increase the value of the concessions to $326.2 million.

The cuts would be on top of $1 billion in annual concessions the pilots agreed to in a five-year deal reached in 2004. That deal included a 32.5 percent pay cut.

In Monday’s SEC filing, Delta also said it can’t predict whether its defined benefit pension plan will continue when it emerges from Chapter 11. Delta pilots have tried without success to get the company to continue making certain contributions to the pension plan during the bankruptcy case.

Delta estimates that its funding requirements under its defined benefit pension plan are roughly $3.4 billion between 2006-2008. The cash-strapped airline said it may be required to fully fund required contributions at the time it exits bankruptcy if it decides to keep the plan going.

Delta, which filed for Chapter 11 on Sept. 14, has recorded losses of more than $11 billion since January 2001 and over that period has announced that it would cut up to 33,000 jobs. Its loss in the third quarter, reported Thursday, was $1.13 billion.
 
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and I am sure the NWA work rules (which were mostly trashed to keep the pensions) will be brought up to par with Delta's (which are better). A Northwest DC9 guy I talked to said he was on a 5 day trip that had the first day worth 1 hour (he had one leg MSP-ORD). That would likely be gone.
Work rule changes in the BK contract had nothing to do with keeping the pensions. NWA management wanted to keep the pensions as much as we did to avoid having the PBGC take a huge equity stake in the post BK corp.

We gave up 4:15 minimum day for 5hr average day, so if the DC9 guy you talked to flies back to MSP the next day then his 2-day is worth 10hrs. If it was a one day trip only then it is still 4:15 like before. NWA has higher max vacation and sick leave accrual, duty and trip rigs are virtually the same as DAL, international override is higher than DAL, pay over 80 is 150%, junior man callout is 185% pay.

Sure, we gave up work rules in BK (and got some big ones back when NWA boneheads realized they couldn't run the airline with the concessions they won), but they are not as draconian, or as different from yours, as you have been led to believe.
 
Caution light

Tom,
Most analysts have said this is the time to actually take back some of the things that were taken in BK.

General,

I certainly hope you guys can do it, but that is not on management's agenda. Beware of attractive lures such as "expansion plans", which could be nothing more than a baited hook. After the merger is locked in, stand by for unpleasant surprises. And if you sound a "brace for concessions" alarm, don't let the MEC ban you from the DALPA forum. ;)
 
Work rule changes in the BK contract had nothing to do with keeping the pensions. NWA management wanted to keep the pensions as much as we did to avoid having the PBGC take a huge equity stake in the post BK corp.

We gave up 4:15 minimum day for 5hr average day, so if the DC9 guy you talked to flies back to MSP the next day then his 2-day is worth 10hrs. If it was a one day trip only then it is still 4:15 like before. NWA has higher max vacation and sick leave accrual, duty and trip rigs are virtually the same as DAL, international override is higher than DAL, pay over 80 is 150%, junior man callout is 185% pay.

Sure, we gave up work rules in BK (and got some big ones back when NWA boneheads realized they couldn't run the airline with the concessions they won), but they are not as draconian, or as different from yours, as you have been led to believe.
Please, no facts here on FI. It will ruin all the debates. But if you insist. Just looked at the ALPA NWA/DAL Merger document. Contracts are very close and with a few minutes in work rules and a few dollars an hour, will be easy to blend. EBITDAR Margins, NWA 13.4% DAL 10.9%. Operating Margins, NWA 9.4%, DAL 5.9%. Pre-tax Margin NWA 6.7%, DAL 2.8%. Unrestricted cash, NWA $3.1 Billion, DAL $2.35 Billion. Cash on Hand, NWA $3.9 Billion, DAL $2.9 Billion. Cash on Hand as Mulitple of Monthly Expense, NWA $3.2 Billion, DAL $1.5 Billion. NOLs, DAL $8.5 Billion, NWA $3.1 Billion. These Net Operating Losses could be negated with a change of ownership. Costing a loss of considerable tax deductions.
 
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Diesel - After looking at the EF&A document, what are your thoughts on the success of the merged venture? Does the merger make any sense? What about furloughs? What about the bilateral flow with the Regional(s)?

Heard and interesting theory that Mesaba, Compass, and Comair were being packaged together to Republic Airlines Holdings for cash in this deal.... Republic made a similar move during the US Air deal and now operates the World's largest E170 fleet.
 
Tom,

Most analysts have said this is the time to actually take back some of the things that were taken in BK. As far as "synergies" go, can you name some? Most of the local politicians will be all over management to make sure hubs don't close and to try to save as many jobs as possible.

As far as pay raises, that is up to the MECs, and I am sure the NWA work rules (which were mostly trashed to keep the pensions) will be brought up to par with Delta's (which are better). A Northwest DC9 guy I talked to said he was on a 5 day trip that had the first day worth 1 hour (he had one leg MSP-ORD). That would likely be gone. Things will be cleaned up, and you can bet job protections would also be involved, like adding additional people to that infamous no furlough clause. (unless another 9-11 happens, it is better than nothing)

Bye Bye--General Lee


Again you know it all...The one hr/one day credit that NW has would be gone? Says who? YOU? I forget that if a merger takes place you and all your Delta cronies will have the final say in what happens...Uh huh, keep telling yourself that and keep believin what DALPA is telling you. I'm sure you'll get everything and NW will get nothing because that's what you've heard from DAL management. Yep, you've once again nailed it with your observations. You bring SOOO much to this board.
 
Most analysts have said this is the time to actually take back some of the things that were taken in BK.
Bye Bye--General Lee
Well, the competitive landscape will be US Air, American, Continental and United at an airline that is way too big to strike.

Scope will be an issue. Hope there are no more sales and "bargaining credits" recieved for mainline flying.

Anyone know why ALPA is supporting this thing? Is this a reprise of ALPA's support for age 65 (it is happening anyway, so we might as well make like a puppy, do the happy dance and pee on the floor when the hedge fund guys approach)

Once again, I hope I'm wrong about the crystal ball, but the visibility is getting pretty good.

Tom Goodman has the same view of the threats.
 
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Please, no facts here on FI. It will ruin all the debates. But if you insist. Just looked at the ALPA NWA/DAL Merger document. Contracts are very close and with a few minutes in work rules and a few dollars an hour, will be easy to blend. EBITDAR Margins, NWA 13.4% DAL 10.9%. Operating Margins, NWA 9.4%, DAL 5.9%. Pre-tax Margin NWA 6.7%, DAL 2.8%. Unrestricted cash, NWA $3.1 Billion, DAL $2.35 Billion. Cash on Hand, NWA $3.9 Billion, DAL $2.9 Billion. Cash on Hand as Mulitple of Monthly Expense, NWA $3.2 Billion, DAL $1.5 Billion. NOLs, DAL $8.5 Billion, NWA $3.1 Billion. These Net Operating Losses could be negated with a change of ownership. Costing a loss of considerable tax deductions.


Hey Diesel, where did you find that document, been looking for it myself. Thanks in advance.
 

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