Delta May Use Court to Make Pilots Deal
Posted on: Monday, 10 October 2005, 06:00 CDT
By Harry R. Weber
Delta Air Lines Inc. is prepared to use the bankruptcy court to achieve $325 million in cost concessions from its pilots if the company and union can't reach a deal on their own, chief executive Gerald Grinstein said Thursday.
Grinstein made the comment after an event at the Carter Center in Atlanta to announce the airline's plans to launch nonstop service from its Atlanta base to Tel Aviv in March.
On Sept. 22, eight days after filing for bankruptcy, Delta said it is targeting $930 million in annual savings from its employees, including $325 million from pilots. The cuts are part of a new turnaround plan that will shed up to 9,000 more jobs.
Unlike Delta's other work groups, the pilots union has to agree to its cuts or have the cuts imposed on the union in bankruptcy court.
Asked Thursday if Delta is prepared to use the courts to get the cuts it is seeking from pilots, Grinstein told the Associated Press, "Yes."
Grinstein said the union so far has been unwilling to negotiate the cuts with the company.
A union spokeswoman did not immediately return a call Thursday seeking comment.
A year ago, the union agreed to $1 billion in annual concessions to help Delta avoid bankruptcy at that time. But fuel prices soared, and Delta was forced to file for Chapter 11 anyway.
Source: Cincinnati Post
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