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Thu, May 01, 2008

Delta Pilots Start Voting On Merger-Friendly Contract

But New Deal Would Not Cover Northwest's 5,000 Pilots

Some 7,400 pilots at Atlanta-based Delta Air Lines started voting Thursday on a new contract that would give them pay raises, and an equity stake in a merged Delta/Northwest Airlines megacarrier... but the deal leaves pilots at Northwest out in the cold.

As ANN reported, pilots at Delta agreed to the tentative contract April 11, clearing the way for Delta to proceed with its merger plans. Earlier merger talks fell apart after pilots at Delta and Northwest -- each represented by a separate branch of the Air Line Pilots Association -- failed to reach terms in February on a deal to combine seniority lists if the merger were to proceed.

Both sides had wanted at least tentative agreement on such terms ahead of a merger announcement, but they failed to reach it. With Delta pilots onboard, the two sides announced plans to merge April 14.

Under the contract now being voted on by Delta pilots, the carrier's existing collective bargaining agreement would be extended through 2012. In exchange for a 3.5 percent pay raise and other benefits -- including retaining unique operational status, separate from Northwest -- Delta management would have greater authority over the merged airline, including control over Northwest's stake in Midwest Airlines.

What's missing from the deal is any reference to how pilots at Northwest would be integrated into the merged airline, if regulators sign off on the proposal. And that's not going to sit well with Northwest's 5,000 pilots... who will need to negotiate their own deal with management.

Voting at Delta runs through May 14.

FMI: www.delta.com, www.newglobalairline.com

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