Includes Roadmap To Determine Seniority
It's a big step forward for the planned merger of Delta Air
Lines and Northwest Airlines. On Monday, pilots at both carriers
ratified a joint contract agreement that includes, among other
items, a roadmap to determine seniority rankings at the merged
airline.
"This historic milestone marks the first time that a labor
agreement has been reached in advance of the close of an airline
merger," said Lee Moak, chairman of the Delta chapter of the Air
Line Pilots Association, to Reuters.
The agreement also represents a notable achievement when
compared to the last US airline merger, the 2005 pairing of US
Airways and America West. Pilots at those airlines are still
working under separate contracts... and while there's little sign
that situation will change any time soon,
the airline did begin talks with the US Airline Pilots
Association -- which replaced ALPA after that union
was voted out -- in June.
Hoping to avoid similar strife down the line, officials at Delta
and Northwest had tried for at least a tentative agreement on pilot
pay before both sides declared their intentions to merge. Bickering
over seniority rankings stalled merger talks in February; while the
two airlines did ultimately agree to merge April 14, they did so
with only the backing of Delta's 7,000 pilots.
Terms of the agreed-upon deal weren't disclosed, though
officials have previously said pilots on both sides will receive
pay raises and other benefits, including an equity stake in the new
airline.
"It is far superior to the traditional well-worn labor role in
that all pilots will receive financial returns from day one for the
value we provide to the merger," Moak said. The contract likely
represents a sharp increase in pay for Northwest's 5,000 pilots, to
bring them inline with their Delta compatriots.
Less certain is how the two airlines will ultimately resolve
pilot seniority, especially as Delta looks to possibly cut pilot
jobs as part of its capacity reduction efforts. Delta and Northwest
pilots did agree to a basic plan to handle the difficult task,
however; they also agreed to arbitration, should negotiations
fail.
Delta hopes to complete its acquisition of Northwest by the end
of this year, assuming US regulators sign off on the merger.
Officials in the European Union signed off on the proposal last
week, saying the merged carrier poses little risk of stifling
competition on trans-Atlantic routes.