Delta and its Pilots Reach Deal in Principle on New Labor Contract
September 30 2016 - 5:40PM
Dow Jones News
The union that represents 12,800 Delta Air Lines Inc. pilots
said Friday that it has reached an agreement in principle with the
nation's No. 2 carrier to amend the group's existing labor
contract.
The Air Line Pilots Association declined to release terms of the
potential deal. Union officers will review the language for seven
days. If they approve the pact, it will be sent to the pilots for a
ratification vote, ALPA said.
Atlanta-based Delta had no immediate comment. Delta's pilots are
the airline's only major unionized group. The bulk of the company's
workers are nonunion.
A wide majority of Delta's aviators rejected an earlier proposal
in July 2015. While that three-year deal contained pay raises and
the promise of 60 new airplanes joining Delta's fleet, it also
contained what many pilots viewed as concessions at a time when
Delta is highly profitable.
They particularly objected to a big potential reduction in the
amount of profit-sharing the pilots would receive, a new sick-leave
policy that some saw as draconian and work-rule adjustments in
scheduling and other areas.
In the wake of that rejection, the union leadership has changed
and bargaining resumed with assistance from federal mediators.
Capt. John Malone, current chairman of ALPA's branch at Delta, said
the agreement in principle raises the bar for pilots across the
industry and "recognizes and rewards the Delta pilot group" for its
contributions to the carrier's financial success.
It has been a tough few years of labor talks in the U.S.
industry, as workers have pressed for richer terms because the big
airlines have been posting record profits. And the carriers have
tried to hold the line on big increases in fears of saddling
themselves with unsustainable labor costs. Several unions have
rejected contract offers, prolonging negotiations.
(END) Dow Jones Newswires
September 30, 2016 17:25 ET (21:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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