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Pilots Union Panel Seeks Strike OK *** Delta Waits for Judges Ruling on Request for Contract Concessions

Posted on: Tuesday, 3 January 2006, 09:00 CST

By HARRY R. WEBER

Pilots union panel seeks strike OK *** Delta waits for judges ruling on request for contract concessions

ATLANTA The executive committee of the pilots union at Delta Air Lines Inc. voted unanimously Thursday to ask rank-and-file members to authorize a strike.

The decision came after a daylong closed-door meeting in New York, Lee Moak, chairman of the executive committee, said.

Its my recommendation that the pilot group vote for the strike ballot, Moak said.

The vote comes as the nations third-largest airline, which filed for bankruptcy protection in New York on Sept. 14, has asked the court to reject the pilots contract so it can impose $325 million in concessions on its 6,000 pilots, which would include a 19 percent pay cut.

Delta lawyers have asserted in court that the company believes it could impose new contract terms on its pilots starting Dec. 16 even if the judge doesnt rule on Deltas contract rejection request by then. Its not clear if the judge extends the hearings beyond that date what Deltas position would be.

The pilots, represented by the Air Line Pilots Association, initially offered $90.7 million in average annual concessions over four years. They have since reviewed their proposal and now value it at $150 million, which would include a 9 percent pay cut for seven months followed by lower cuts thereafter.

The cuts would be on top of $1 billion in annual concessions the pilots agreed to last year.

A Delta spokeswoman, Chris Kelly, said the company would continue to try to reach a pact with its pilots.

This was an expected procedural vote by the pilots union leadership and in no way impacts our operations or our preference to reach a consensual agreement in time to save the company, Kelly said.

A successful strike authorization would allow the union to call a strike without having to come before the rank-and-file again. The process calls for balloting to occur over 15 days. The timing of sending out ballots is uncertain, union spokesman John Culp said.

We remain committed to a consensual agreement, but we just have seen no movement, Moak said. At this moment, management has refused to negotiate. They are still at $325 million.

The airline has said a strike by its pilots would put the company out of business. It believes a strike would violate the Railway Labor Act. The union has argued that if its contract is thrown out by the court, it would be allowed to strike.

During a visit to Atlanta on Thursday to meet with executives from area companies, Commerce Secretary Carlos Gutierrez said he is aware of the situation at Delta, but declined to say whether the Bush administration would step in if the pilots strike.

We hope that ultimately they come to a conclusion that is good for everyone, Gutierrez said.

He said pension reform is a key part of helping Delta get back on its feet.

If workers are made a promise regarding pensions, those pensions need to be respected and they need to be delivered, Gutierrez said. Thats been the administrations policy.

On Wednesday, Culp said Delta pilots may consider a vote to strike if the bankrupt airlines managers impose changes on their contract.

It is our contention that if they start imposing their terms we will start defending the contract, Culp said. If we hit Dec. 16 and they stick to their plan to start imposing conditions ... well consider any and all legal options.

Delta spokeswoman Kelly said Wednesday the airline would consider extending the Dec. 16 deadline if we felt a consensual agreement could be reached.

Our strong preference is to negotiate in good faith and reach a consensual agreement, she said.

Bankruptcy law provides that a debtor can impose changes to a contract 30 days after making a request in court. Delta made such a request for contract changes in mid-November.

ON THE INTERNET:

Delta Air Lines Inc.:

http://www.delta.com

Source: Advocate; Baton Rouge, La.

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