Voice Of Reason
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- Joined
- Sep 21, 2004
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Thought you guys would be interested in this...
From detfreep.com: (Detroit "FREE PRESS" alternative paper, 4 hrs ago...the only one I saw carry this)
"Leaders of the pilots union at Northwest Airlines recommended expedited arbitration Tuesday as a way to resolve the dispute over seniority that's holding back a possible merger between Northwest and Delta Air Lines.
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In a letter to all Northwest pilots, three top officers of Northwest's pilots union wrote, "If management feels the time is now for consolidation, they would be wise to encourage both pilot groups to accept expedited arbitration. While not perfect, with the right economic incentive, this approach could get the job done in time for the merged entity to reap the benefits of the efficiencies much earlier than with two frustrated pilot groups engaged in a traditional merger."
After weeks of talks, Northwest and Delta pilots haven't been able to agree on how to merge their seniority lists and negotiations have stalled. To prevent future labor unrest and gain maximum benefits from a merger, management at both carriers had sought a combined pilot seniority list in order for any deal to proceed.
For pilots, seniority determines almost everything, from their pay and work schedules to who gets furloughed during tough times, so they are extremely reluctant to do anything to jeopardize it.
Besides arbitration, the letter suggested that management at both airlines could encourage both pilot groups to resume talks with realistic business plans. It also warned pilots that the airlines, under pressure from their hedge fund investors, may decide to do a deal without a combined pilot seniority list.
According to the letter, Northwest and Delta pilots had agreed to create a new seniority ranking for the combined carrier by using a slotted list. The slots would be allocated by a ratio for each pilot group. However, the Northwest pilots felt the ratio proposed by the Delta pilots "was too favorable to them," the letter states.
"The fundamental issue was the ratio or ratios to be used to combine the lists," the letter explains. "Complicating this issue was the disparate standalone business plans at the two carriers, the greater amount of premium wide-body flying at NWA and the older ages of NWA pilots."
Northwest said Tuesday it had no comment about the letter, which was released a day after Delta's pilots union had announced that the seniority integration talks had proven unsuccessful. Delta also declined to comment.
Separately, Northwest said Tuesday it probably will reduce U.S. passenger capacity again when it unveils a new flight schedule in August or September.
Also, Delta, faced with a weak economy, dimmer hopes of a combination with Northwest and record fuel prices that are eating up profits, said Tuesday it will offer voluntary severance buyouts to roughly 30,000 employees -- more than half its workforce -- and cut U.S. capacity by an extra 5%.
Executives at Delta said in a memo to employees that the airline's goal is to cut 2,000 frontline, administrative and management jobs through the severance program, attrition and other initiatives.
Contact KATHERINE YUNG at 313-222-8763 or [email protected]. The Associated Press and Bloomberg News contributed to this report."
From detfreep.com: (Detroit "FREE PRESS" alternative paper, 4 hrs ago...the only one I saw carry this)
"Leaders of the pilots union at Northwest Airlines recommended expedited arbitration Tuesday as a way to resolve the dispute over seniority that's holding back a possible merger between Northwest and Delta Air Lines.
In a letter to all Northwest pilots, three top officers of Northwest's pilots union wrote, "If management feels the time is now for consolidation, they would be wise to encourage both pilot groups to accept expedited arbitration. While not perfect, with the right economic incentive, this approach could get the job done in time for the merged entity to reap the benefits of the efficiencies much earlier than with two frustrated pilot groups engaged in a traditional merger."
After weeks of talks, Northwest and Delta pilots haven't been able to agree on how to merge their seniority lists and negotiations have stalled. To prevent future labor unrest and gain maximum benefits from a merger, management at both carriers had sought a combined pilot seniority list in order for any deal to proceed.
For pilots, seniority determines almost everything, from their pay and work schedules to who gets furloughed during tough times, so they are extremely reluctant to do anything to jeopardize it.
Besides arbitration, the letter suggested that management at both airlines could encourage both pilot groups to resume talks with realistic business plans. It also warned pilots that the airlines, under pressure from their hedge fund investors, may decide to do a deal without a combined pilot seniority list.
According to the letter, Northwest and Delta pilots had agreed to create a new seniority ranking for the combined carrier by using a slotted list. The slots would be allocated by a ratio for each pilot group. However, the Northwest pilots felt the ratio proposed by the Delta pilots "was too favorable to them," the letter states.
"The fundamental issue was the ratio or ratios to be used to combine the lists," the letter explains. "Complicating this issue was the disparate standalone business plans at the two carriers, the greater amount of premium wide-body flying at NWA and the older ages of NWA pilots."
Northwest said Tuesday it had no comment about the letter, which was released a day after Delta's pilots union had announced that the seniority integration talks had proven unsuccessful. Delta also declined to comment.
Separately, Northwest said Tuesday it probably will reduce U.S. passenger capacity again when it unveils a new flight schedule in August or September.
Also, Delta, faced with a weak economy, dimmer hopes of a combination with Northwest and record fuel prices that are eating up profits, said Tuesday it will offer voluntary severance buyouts to roughly 30,000 employees -- more than half its workforce -- and cut U.S. capacity by an extra 5%.
Executives at Delta said in a memo to employees that the airline's goal is to cut 2,000 frontline, administrative and management jobs through the severance program, attrition and other initiatives.
Contact KATHERINE YUNG at 313-222-8763 or [email protected]. The Associated Press and Bloomberg News contributed to this report."
TC
