Delta reaches tentative deal with pilots
Sunday December 11, 8:00 PM EST
NEW YORK (Reuters) - Delta Air Lines Inc. (DALRQ) said on Sunday it reached a tentative interim agreement with the Air Line Pilots Association, International (ALPA), the bargaining representative of the company's more than 6,000 pilots.
Delta said subject to pilot ratification by no later than December 28, 2005, the tentative interim agreement provides for a 14 percent hourly wage reduction "and reductions in other pilot pay and cost items equivalent to approximately an additional 1 percent hourly wage reduction."
Delta said the interim cost reductions would be effective December 15, 2005, and would remain in effect while the parties seek to reach a comprehensive agreement. The company and ALPA would seek to negotiate a tentative comprehensive agreement by March 1, 2006, with pilot membership ratification by March 22, 2006.
"This agreement reflects the resolve of Delta people to work together to help save the company," said Ed Bastian, Delta's chief financial officer, in a statement. "We recognize and appreciate the additional sacrifice this will represent."
Delta and ALPA will request that the Bankruptcy Court suspend the hearing on the company's motion to reject the existing Delta-ALPA collective bargaining agreement, pending the ratification process for the new agreement, Delta said.
Delta said that achieving pilot labor cost reductions is an important element of its restructuring plan. The restructuring plan calls for an additional $3 billion in annual cost reductions and revenue improvements to be realized by the end of 2007.
©2005 Reuters Limited.