Delta pilots give more ground
Delta Airlines pilots’ agreed to a temporary 14 percent hourly wage reduction negotiated by its union that will reduce pilot labor costs for the bankrupt airline by $143 million next year.
Atlanta-based Delta and the Air Line Pilots Association will now attempt to negotiate a long-term deal by March 2006, at which point Delta could request binding arbitration to jettison the current contract if the parties are unable to reach an agreement.
The third largest U.S. airline had warned its pilots that if they didn’t agree to restructure pay scales that it would seek permission from the bankruptcy judge to unilaterally impose wage cuts.
The airline’s restructuring plan calls for $3 billion in annualized cost savings by 2007 on top of the $5 billion in costs it has cut since 2002.
“Given the critical nature of our financial situation, this provides much needed financial relief while we seek to reach a comprehensive agreement with ALPA,” said Gerald Grinstein, Delta's chief executive officer.
Delta pilots give more ground
