Tentative agreement reached

[xdays]

Tentative Agreement between DALPA and management. Details later...

 

[Capt. X]

Delta, ALPA Reach a Tentative Interim Agreement

ATLANTA, Dec. 11, 2005 – Delta Air Lines, Inc. confirmed today that it has reached a tentative interim agreement with the Air Line Pilots Association, International (ALPA), the collective bargaining representative of the company’s more than 6,000 pilots.

Subject to pilot ratification by no later than December 28, 2005, the tentative interim agreement provides for a 14 percent hourly wage reduction and reductions in other pilot pay and cost items equivalent to approximately an additional one percent hourly wage reduction. The interim cost reductions would be effective December 15, 2005 and would remain in effect while the parties seek to reach a comprehensive agreement. The company and ALPA would seek to negotiate a tentative comprehensive agreement by March 1, 2006, with pilot membership ratification by March 22, 2006.
“This agreement reflects the resolve of Delta people to work together to help save the company. We recognize and appreciate the additional sacrifice this will represent,” said Ed Bastian, Delta’s chief financial officer.
Delta and ALPA will request that the Bankruptcy Court suspend the hearing on the company’s motion to reject the existing Delta-ALPA collective bargaining agreement pursuant to section 1113 of the U.S. Bankruptcy Code, pending the ratification process for the tentative interim agreement.
Delta has said that achieving additional annual pilot labor cost reductions is an important element of its restructuring plan. The restructuring plan calls for an additional $3 billion in annual cost reductions and revenue improvements to be realized by the end of 2007. The $3 billion improvement target is in addition to the approximately $5 billion in annual financial benefits the company says it is on track to deliver by the end of 2006, as compared to 2002.
Delta Air Lines (OTC: DALRQ) is the world's second-largest airline in terms of passengers carried and the leading U.S. carrier across the Atlantic, offering daily flights to 505 destinations in 93 countries on Delta, Song, Delta Shuttle, the Delta Connection carriers and its worldwide partners. Delta's marketing alliances allow customers to earn and redeem frequent flier miles on more than 14,000 flights offered by SkyTeam and other partners. Delta is a founding member of SkyTeam, a global airline alliance that provides customers with extensive worldwide destinations, flights and services. Customers can check in for flights, print boarding passes and check flight status at delta.com.
This press release contains various forward-looking statements which represent the company’s estimates or expectations regarding future events. All forward-looking statements involve a number of risks and uncertainties that could cause the actual results to differ materially from the projected results. Additional information is contained in Delta's Securities and Exchange Commission filings, including its Form 10-Q filed with the SEC on November 14, 2005. Caution should be taken not to place undue reliance on Delta's forward-looking statements, which represent Delta's views only as of the date of this presentation, and which Delta has no current intention to update.

 

[michael707767]

I've seen all I need to see. No F**king way.

Voting no.

 

[Oakum_Boy]

When you walk the walk, you gotta like, talk too.

 

[PHXFLYR]

I've seen all I need to see. No F**king way.

Voting no.

What didn't you like?


PHXFLYR

 

[michael707767]

What didn't you like?
PHXFLYR

oh, we just agree to let a third party decide whether or not the company can throw out the contract if we don't reach a full deal by March. That gives away any strike threat and leverage we had. I am beyond belief that our union we even talk about this, let alone TA it.

 

[magrs]

Face it, ALPA sucks!

They have pissed away every single opportunity to unify this profession. It started way before the TWA debacle, but was certainly evident then, and now the results of their mis-management. Good luck ALPA carriers, it is a race to the bottom!

 

[whymeworry?]

Face it, ALPA sucks!

They have pissed away every single opportunity to unify this profession. It started way before the TWA debacle, but was certainly evident then, and now the results of their mis-management. Good luck ALPA carriers, it is a race to the bottom!

ALPA only sucks because of Duane Worthless's leadership skills... or lack thereof. He's apparently more interested in protected his half million dollar plus ALPA salary than by protecting the profession. DALPA may prove to suck if their pilots accept an agreement which appears to be yet another paycut (they already gave a billion last year). Remember what was said in Flying the Line VOL II, "All politics is local." Meaning, what happens at the local level is the fault, or the result, of a specific carriers pilots actions. To blame ALPA national shouldn't have anything to do with DALPA... though National certainly deserves blame for letting labor get pummeled over the past 4 years.

If the pilots accept this cut, well that is their choice, not ours. However, this time mgmt should be have it's feet held to the fire as well... in fact, mgmt should take a bigger hit for lying to the pilots when it said it would never come back for more cuts, and for failing in their duty to fund the pension over the years.

 

[rjcap]

If I understand this, you have a 2.5 month cooling off period with a 15% paycut ( total benefits and pay ) thrown in.

Real Nice.

 

[michael707767]

If I understand this, you have a 2.5 month cooling off period with a 15% paycut ( total benefits and pay ) thrown in.

Real Nice.

don't forget the binding arbitration on whether or not the company can through out the contract and we have to live with the decision. This TA gives away any strike threat.

Nope.

 

[densoo]

Anyone have a new pay scale chart put together?

 

[aa73]

Anyone have a new pay scale chart put together?

12 year MD88 CA $160/hr... minus 14% = $137/hr and change...

 

[ferlo]

NO WAY TO BINDING ARBITRAITION!!!!!!!!!!!!!


My Lovely company, Alaska, paid off our arbitraitor and he raped us of 90 million dollars a year. F.O.'s lost up to 34.3% of their pay. This is from a company that posted a 106 million dollar profit for the 3rd quarter. Needless to say we don't have binding arbitraition anymore and I highly recommend killing this thing before it gets too much steam..

 

[Capt. X]

12 year Capt on 737NG was $173/hr ..less 15% is $147/hr
12 year F/O on 737NG was $118/hr .. less 15% is $100/hr
Per Airline pilot pay
http://www.airlinepilotcentral.com/content/view/44/36/

 

[YourPilotFriend]

So the ask was 19% and the TA is 15%. How did DALPA suddenly slide that far.

 

[BID]

Any info with regards to scope, is SkyWest going to fly the 90 seat aircraft?

Did they at least save the pensions or is that still up in the air?

 

[michael707767]

So the ask was 19% and the TA is 15%. How did DALPA suddenly slide that far.

The ask was for 19.5% on the pay rates, DALPA TA'd 14%.

The total ask was for 325 mil, of which the 19.5% pay cut reprsented about two thirds. DALPA TA'd a deal with a 14% pay cut and 1% in other savings (still wondering what that will be).

Not saying its a good deal, I agree, how did DALPA slide that far. But, wanted to put out the correct numbers.

 

[michael707767]

Any info with regards to scope, is SkyWest going to fly the 90 seat aircraft?

Did they at least save the pensions or is that still up in the air?

noting on scope, nothing on pensions. Those are among the many items to be worked out. This is just an interim agreement pending a deal on the full contract.

 

[L'il J.Seinfeld]

12 year MD88 CA $160/hr... minus 14% = $137/hr and change...

That's roughly close to what a SECOND year FO at UPS/FedEX will be making shortly (as already offered up by the respecive mgts).

 

[Networ-King]

ddddduuuuuddddeeee you must be smoking some good stuff....

wish I could believe you on those pay rates.......

now puff puff give .... you fu@kin up the rotation......

 

[StaySeated]

Just curious, are you saying that this TA contains a provision that includes binding arbitration? Please tell me that I read that wrong. Before 2001 and after the NWA 98 strike and UAL slowdown a few senators wanted to rewrite some laws and get rid of the RLA so they could impose pay and work rules with binding arbitration (they used pro ball players as an example to fool us into thinking we were going to get athlete coin). I am very afraid that they have figured out a way to include arbitration into a standard RLA negotiation. Imagine this outside of BK, you have a 4 year contract, add 2.5 to negotiate a new one, and then throw in binding arbitration language that basically negates everything that was negotiated during the last 2.5 years AND eliminates self help. Oh my, can you say totally fcuked.

 

[L'il J.Seinfeld]

ddddduuuuuddddeeee you must be smoking some good stuff....

wish I could believe you on those pay rates.......

now puff puff give .... you fu@kin up the rotation......

I said close duuude. Point being that this Delta TA is horse****. BTW current FedEx second year FO widebody (which is everything they have except the 72) is already $117!

 

[Captain Overs]

You know it's a sad state of the industry when Delta pilots bend over. They have been the strongest for a long time. I think we may all be in trouble.

 

[michael707767]

Just curious, are you saying that this TA contains a provision that includes binding arbitration? Please tell me that I read that wrong.

here is the exact wording from the code-a-phone.

"Finally, in the event a comprehensive agreement cannot be reached, the TA commits both sides to a neutral third party panel for a binding decision on management's 1113 motion. This neutral panel process is subject to court approval. The panel includes two members of ALPA's choosing and one of Delta's. All panel members have extensive experience with labor relations in the airline industry."

Doesn't use the words binding arbitration, which I think is a spin job on the part of the union, but thats what it is. Amazing isn't it?

I don't object to the 14% pay cut, it's about what I expected. I also knew there would be some other give backs. But to agree to arbitration with big items like scope still on the table has got to be the worst move I have ever heard of by a pilot union.

Only thing left to do is vote no and hope the pilot group realizes just how crazy this would be.

 

[~~~^~~~]

But to agree to arbitration with big items like scope still on the table has got to be the worst move I have ever heard of by a pilot union.

It makes sense if you consider that ALPA has no leadership on the issue, no moral authority and a lawsuit hanging over their heads. This way no one is responsible or accountable. Plus ALPA pays their folks trip drops so they get a lot of nice dinners and bar tabs in swanky hotels without having to blow their own money.

 

[737 Pylt]

It makes sense if you consider that ALPA has no leadership on the issue, no moral authority and a lawsuit hanging over their heads. This way no one is responsible or accountable. Plus ALPA pays their folks trip drops so they get a lot of nice dinners and bar tabs in swanky hotels without having to blow their own money.

Fins:
While I have absolutely zero love for alpa, if you think that the rjdc lawsuit has anything to do with a "fear tactic" for negotiating scope, you are even more stupid than I give you credit for!
737

 

[FDJ2]

oh, we just agree to let a third party decide whether or not the company can throw out the contract if we don't reach a full deal by March. That gives away any strike threat and leverage we had. I am beyond belief that our union we even talk about this, let alone TA it.

Michael, read section 6.G. If I read it correctly, if the third party nuetrals reject our PWA, we still retain the same rights as if the court rejected our PWA through the 1113 motion, with the exception of certain appeals processes. Those rights I believe include the right to strike if our PWA is rejected. It's also my understanding that ALPA got to choose 2 of the 3 nuetrals.

Let me know if you draw the same conclusion.

 

[Networ-King]

I said close duuude. Point being that this Delta TA is horse****. BTW current FedEx second year FO widebody (which is everything they have except the 72) is already $117!

Yeah....yeah.... I know could you not see the sarcasm oooozzzzing out of your computer when your read my post? . 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.

by the way.... second year pay for the widebody is 117, but with the international overide its 121.50. So you were even closer then you though.

 

[9rj9]

so....

you take a 15% pay cut now and agree to binding arbitration. Better hope the arbitration goes your way, you cannot strike if you agreed to it.
Management's way of getting you guys to eat the giant crap sandwich a little at a time. Seems management is much smarter than we thought.

 

[ultrarunner]

Imagine this outside of BK, you have a 4 year contract, add 2.5 to negotiate a new one, and then throw in binding arbitration language that basically negates everything that was negotiated during the last 2.5 years AND eliminates self help. Oh my, can you say totally fcuked.

Makes you wonder what's the point of the union in the first place. But hey, the memberships keep ratifying what their MEC's are thowing at them, so only themselves to blame on that, IMO. I think unity is a think of the past.