Delta Air Lines Interim Agreement, Part 1
Letter #50
LETTER OF AGREEMENT
Between
DELTA AIR LINES, INC.
and the Air Line Pilots in the service of
DELTA AIR LINES, INC.
as represented by the
AIR LINE PILOTS ASSOCIATION, INTERNATIONAL
DECEMBER 2005 INTERIM AGREEMENT
This LETTER OF AGREEMENT is made and entered into in accordance with the provisions of the Railway Labor Act, as amended, by Delta Air Lines, Inc. (“the Company”) and the Air Line Pilots Association, International (“the Association”).
The Company and the Association are parties to a collective bargaining agreement setting forth the rates of pay, rules and working conditions for the Company’s pilots signed November 11, 2004 (“Pilot Working Agreement” or “PWA”).
NOW THEREFORE, the parties agree to this interim modification of the PWA as follows:
1.
Composite Hourly Rate Reduction
The composite hourly rates set forth in
Section 3 B. of the PWA will be reduced by 14%
effective December 15, 2005.
2.
Night Pay and International Pay
The provisions regarding night pay in
Sections 3 A. 9. and 3 D. and throughout the PWA will be eliminated effective December 15, 2005. International pay in Section 3 C. and throughout the PWA will be $5 for Captains and $3 for First Officers effective December 15, 2005.
3.
Per Diem
Effective December 15, 2005, amend
Sections 5 B. 1. and 2. to read:
1. Domestic per diem: $1.85
2. International per diem: $2.40
4.
Miscellaneous
a. Effective January 1, 2006 amend
Section 24 L. 2. to add a note:
Note: The Company may charge a yearly pass usage fee that will be the same charge as for other employees, but will not exceed $50 per year per primary pass rider.
b. Effective December 15, 2005, add an Exception to
Section 9 B. 2. to read:
Exception: In the event such rotation is removed from open time within 96 hours of report time for such rotation, the pilot(s) who would otherwise have performed such flying will not receive pay protection.
c. Effective December 15, 2005, amend
Section 12 A. 19. b. 1) to add an exception to read: Exception: Flight segments to/from Hawaii will have a 60 minute report.
5.
Post-Retirement Pilots
The Tentative Agreement regarding LOA #49 between the Company and the Association dated November 11, 2005, will become effective as of December 15, 2005.
6.
Membership Ratification; Bankruptcy Court Proceedings
A. The Negotiating Committee agrees that it will actively support ratification of the Letter of Agreement by the MEC and by the pilots. The MEC Chairman agrees that he will
1) represent to the members that the relief provided by this Letter of
Agreement is important to give the parties the opportunity to reach a
comprehensive agreement on changes to the PWA in a timely manner;
and,
2) actively support ratification of this Letter of Agreement by the pilots by 5
p.m. Eastern time on December 23, 2005 if possible, but no later than 5
p.m. Eastern time on December 28, 2005.
B. If this Letter of Agreement is ratified by the MEC by 5:00 p.m. Eastern time on December 11, 2005, the Association and the Company will jointly request the Bankruptcy Court to suspend the hearing on the Company’s section 1113 motion and will consent to extend the December
16, 2005 statutory date for a court decision on that motion, subject to resuming the hearing the week of January 2, 2006, and establishing a new statutory date of seven days after the hearing resumes, but not later than January 13, 2006, for a Court decision on the section 1113 motion pursuant to Paragraph 6. C. of this LOA.
C. If this Letter of Agreement is not ratified by the pilots by 5 p.m. Eastern time on December 23, 2005, or December 28, 2005 as applicable, the Association and the Company will jointly ask the Court to resume the hearing on the section 1113 motion the week of January 2, 2006 or as soon thereafter as the Court’s schedule permits, with a decision date of seven days after the hearing resumes, but not later than January 13, 2006, for a Court decision on the section 1113 motion.
D. If this Letter of Agreement is ratified by the MEC and the pilots by the times set out in Paragraphs 6. A. and 6. B., the Association and the Company agree to fully commit their resources and representatives to seek to reach a comprehensive agreement. The Company and the Association agree that in those comprehensive negotiations they will seek to reach agreement on the terms and conditions that would be implemented if the pilot defined benefit
pension plan is terminated. The Company and the Association agree that in those comprehensive negotiations they will seek to reach agreement regarding profit sharing and the sharing of equity when the Company reorganizes. In such equity discussion, the parties will acknowledge the December 2004 pilot cost reductions. The time limits for reaching a
comprehensive agreement are as follows: (i) tentative agreement by the negotiating committees by 5:00 p.m. Eastern time on March 1, 2006; (ii) ratification by the MEC by 5:00 p.m. Eastern time on March 8, 2006; and (iii) ratification by the pilots by 5:00 p.m. Eastern time on March 22, 2006.
E. Subsequent to the MEC ratification contemplated by paragraph B. hereto, the parties will jointly request entry of an order by the Bankruptcy Court that provides that if a comprehensive agreement on permanent changes to the PWA is not reached and ratified by the respective times set out in Paragraph 6. D., the Association and the Company will promptly proceed to submit the matter at issue in the Company’s section 1113 motion to binding decision by a third party neutral panel, under the following terms and conditions:
(1) The third party neutral panel will be Frederick Horowitz, Robert Harris
and Richard Bloch;
(2) The legal standards governing the third party neutral panel’s decision will
be the standards of section 1113 of the U.S. Bankruptcy Code, as
applied by the U.S. Court of Appeals for the Second Circuit, including
the requirement that the third party neutral panel’s decision be limited
to granting or denying the Company’s section 1113 motion;
(3) Neither the Company nor the Creditors’ Committee will assert that the
Bankruptcy Protection Letter (“BPL”), as part of the pre-petition PWA, is
itself rejectable under section 1113 of the Bankruptcy Code and
therefore unenforceable. Except as provided in the prior sentence, the
Company and the Association each will retain the right to assert
that the interpretation of the BPL by the third party neutral panel must
or must not be consistent with other laws, including, without limitation,
section 1113 and other provisions of the United States Bankruptcy
Code;
. I can only hope second year pay will be that nice at big brown with the new contract, but we don't have different equipment pay and the monthly guarantee is also different.....ssssoooooooooo. Not really holding my breath, time will tell.
TC
