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Delta Pilots Threaten Strike Over Pay Cuts (merged)

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Old 14th Nov 2005, 14:11
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Delta Pilots Threaten Strike Over Pay Cuts (merged)

Perhaps just posturing, but if you have a Delta ticket for the holidays, you might want to make other plans.

______________________________________

Delta, pilot showdown looms

By Harry R. Weber
Associated Press

ATLANTA - A pivotal week is ahead for Delta Air Lines Inc.

The struggling carrier may release more details about its finances in a regulatory filing today, its pilots plan a rally Tuesday to defend their contract and a bankruptcy hearing is set for Wednesday to discuss whether to void that contract and allow the company to impose deep pay and benefit cuts.

There's a lot at stake as the pilots have raised the prospect of a strike if the court rejects their contract. Whether they are able to do so legally, however, is a matter open for question.

"I tend to think they probably are," said William Rochelle, a bankruptcy lawyer in New York who represents a major creditor in the Delta case. "If not, I think there's a new form of slavery in the United States."...

...At Wednesday's hearing in New York, U.S. Bankruptcy Judge Prudence Carter Beatty is expected to hear arguments from lawyers for Delta and the Air Line Pilots Association, the union that represents the Atlanta-based company's 6,000 pilots.

The judge could decide immediately on the company's request to void the pilot contract, though most people connected to the case believe she will give the sides up to 30 more days to reach an agreement before deciding on her own.

The company wants $325 million in new concessions from its pilots, which would include a 19.5 percent pay cut. The pilots union has proposed $90.7 million in average annual concessions over four years, which would include a 9 percent pay cut effective Dec. 1 to last for seven months, followed by 7 percent for six months, then 5 percent thereafter.

Delta pilots earn an average of $169,393 a year [after the earlier 33% pay cut], according to a company bankruptcy court filing. The document says the figure is a projection based on year-to-date actual earnings by people employed throughout last year and up to Sept. 16 of this year. It does not include proposed pilot pay rate reductions. Junior pilots make considerably less, while senior pilots in some cases make more. The type of aircraft a pilot flies also is a factor in the pay scale.

The company doesn't want a strike, and the pilots have made clear they don't want a judge throwing out their contract. But the pilots have pointed to their past sacrifices and argued that the new cuts they are offering are more than enough to help Delta become profitable again and compete with low-cost rivals.

If the decision gets to the judge, it's not a given how she would rule, though she indicated in an unrelated Delta bankruptcy hearing Thursday that she believes Delta's pilots are overpaid.

"The only people that make more money than Delta's pilots are you," Beatty told lawyers and company executives in the courtroom...

http://news.cincypost.com/apps/pbcs....WS01/511140350
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Old 14th Nov 2005, 17:15
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The reference to a new form of slavery really is quite apt - the suits at Delta and other legacy carriers are gently floating down to cozy retirements on golden parachutes as the slave labor force stays shackled to the sinking ship, (OK - so I mixed metaphors). The strike option does give those on the front line the ability to redistribute the pain more equitably towards the rear echelon types. In many ways though the ability to strike is a mute point. Winter weather approaches the twin Delta hubs of Cincinnati and Atlanta and it requires little effort for 6000 very unhappy pilots to turn a challenging environment into chaos. There isn't any money left in the piggy bank, the issue at stake here is a fundamental one of fairness. The Automobile industry will be the next to tip toe down the path of rescinded contracts and missing pensions, not too much political fallout yet but there perhaps will be.

What is surprising is that ALPO have finally grown a back-bone and decided to do something. Perhaps the shock of taking multiple sidewinders from 6 o'clock has abated and the quixotic tilting at windmills will cease. Wouldn't bet on it though.
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Old 14th Nov 2005, 21:29
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"Winter weather approaches the twin Delta hubs of Cincinnati and Atlanta"

Salt lake City as well.
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Old 14th Nov 2005, 21:59
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I'd have to agree that a strike could seal Delta's fate. They have gone from first to worst financially in record time...

____________________________________________


Delta pilots strike could doom carrier

Union, management square off in wage battle that could disrupt air travel

By John W. Schoen
Senior Producer
MSNBC
Updated: 3:59 p.m. ET Nov. 14, 2005

A strike threat by Delta Air Lines’ pilots, following a standoff with management over proposed wage cuts, has raised the prospect of the first shutdown of a major U.S. airline in seven years. At stake is the carrier’s survival — and a potential travel nightmare during the upcoming holiday rush.

“It’s doomsday if they go through with the strike — for everybody,” said Ray Neidl, airline analysis for Calyon Securities.

Delta agreed with that assessment, saying Monday that a pilots strike would be “murder-suicide” and in effect put the carrier out of business.

The strike threat comes as a U.S. Bankruptcy Court judge in New York is scheduled to hold a hearing on Wednesday to discuss Delta’s request to cancel its current labor contract with its pilots. The pilots union has raised the prospect of a strike if the contract is rejected by the court, and it has scheduled a rally for Tuesday.

Though a strike threat by Delta pilots at this point is a bargaining ploy, it’s a powerful one. A strike by Northwest mechanics last month fizzled after the union failed to win support from Northwest pilots. The company announced before the strike began that it had lined up enough replacement mechanics to keep flying.

But lining up replacement pilots is not an option, said Neidl. Delta said as much in an SEC filing Monday, warning Delta shareholders that it can’t predict whether it would be able to stop a walkout by its 6,000 pilots.

In its filing, Delta said a strike would be disastrous for all concerned. “Deny the motion to reject, the court is told, or the association will call a post-rejection strike that will kill the company and eliminate every pilot job — indeed every Delta job.”

And Delta argues that the Railway Labor Act prevents the pilots from striking. “Even if the threat were realistic — even if Delta’s pilots seriously intended to put the company into liquidation rather than agree to needed concessions — the threat would be a hollow one,” the airline wrote...

http://msnbc.msn.com/id/10039691/page/2/
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Old 15th Nov 2005, 01:24
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Well, the US airline scene is usually seen as an unstable one, and further, the loss of one legacy carrier almost seems certain eventually, why shouldn't it be Delta...?

I guess those Delta guys are looking back fondly at the recored high payscales just a few short years ago...silly boys.
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Old 15th Nov 2005, 16:06
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Delta pilots - charge into the guns

I really doubt it would do them any good but I almost hope they do strike. Someone has to take a stand. These bankruptices have become a feeding frenzy for lawyers etc and top management are using them as a chance to grab even more cash. For a case of legalized rape check out (Sunday, NYT) what the "management" at Delphi "needs" to keep them in place. Different industry but the same fundamentals.

Just maybe out the smoking wreckage some sense fairness might prevail. However I think I'll go buy that Big Game ticket - better odds.
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Old 16th Nov 2005, 02:36
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I think it's time, we offer all of these execs, judges and attorneys who are destroying our airlines and profession, the opportunity to strap on the left seat in and out of SLC on a cold, dark, snowy, winnnnnnnddddddddy and slipppppery night

Or the airport of of your choice in the conditions of your choice.

I'm sure we can all come up with a few scenarios.

It doesn't suprise me if the judge actually implied that those guys make too much money.

If it's true and that is what she meant, it is extremely biased and doesn't apply to anything else other than her own non expert opinion, certainly not the law.

She is no airline pilot. Therefore, she is no expert. She has no idea what an airline pilot does for a living. So how can she have any idea of what monetary value an airline pilot at Delta is worth.

Is it worth more than what the execs earn doing their thing, loosing 25 something billion in how many years?

Who is held accountable for that? Give me a break.

Is it worth more than what the attorneys earn doing what they do? Give me a major break.

She probably should be removed from the proceedings based on that statement alone.

Last edited by Joe Mirabella; 16th Nov 2005 at 03:39.
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Old 16th Nov 2005, 06:28
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she believes delta pilots are overpaid.

I wonder what her view is of judges salaries.

Some may say she is overpaid.

They have already accepted pay cuts in the past.

Are the airlines execs leading by example. They should offer to cut their pay to the airlines capts pay, I guess they would be unable to live on that salary though.
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Old 16th Nov 2005, 07:28
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Danger

How much is the average salary for an attorney working on :

United's bankruptcy? Did their fees not cost them about $1,000,000 per month? Is this not a gigantic chunk of cash, or are these bloodsuckers paid on credit? Doubt it. "Fee" comes from the Anglo-Saxon word for cattle. If the fees are a million or more per month, that is quite a herd of cattle.

An attorney working "for" USAirways?

Northwest?

Delta?

Have the airlines gone for the lowest lawyer rates available?
If not, why not?

They have already outsourced vital aircraft maintenance, and while thousands of dedicated professional (very experienced) US-based pilots have been out of work since 2001-2002, airlines have given many flying city-pairs to bottom-dollar regional carriers (pilots in the right seat make about the US minimum wage). Are they also trying to save money on bankruptcy lawyers? Some airlines threaten to give away gate agent and baggage handler jobs to a third party. This supposedly already happened to many ramp personnel at Nashville Airport (BNA).

The Cohen, Weiss 'bankruptcy team' at Northwest already 'waltzed' USAirways' status into somewhat permanent anemia. Actor Klaus Kinski and the original Nosferatu have nothing on these ruthless legal predators. Check out how many hundreds of dollars they bill an airline for each hour, and for their legal secretaries.

If a large group of employees could somehow finance a 51% takeover of company stock, they could fire their own Board of Directors, hire a new upper mgmt team (maybe leaders who already have a flight ops background, in contrast with one major airline CEO who might only stay for two years...into his own selfish cash rewards, and to hell with everybody else) and create a different corporate culture. Just an encouraging thought for the thousands of dedicated employees who are subjected to these cold-blooded (hearted) vipers.

One of our First Officers who will be laid off here his second (2nd) time, has a family member in the marketing dept of a very large, famous petroleum company: ironic? Other industries look upon the airline industry as the worst-managed in the entire US.

Last edited by Ignition Override; 20th Nov 2005 at 02:47.
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Old 17th Nov 2005, 13:38
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Delta Judge Won't Recuse Herself

By EVAN PEREZ
Staff Reporter of THE WALL STREET JOURNAL

November 17, 2005; Page A9

NEW YORK -- The federal judge overseeing the bankruptcy of Delta Air Lines rejected a request by the carrier's pilot union that she step down from the case because of comments suggesting that the pilots are paid too much.

U.S. Bankruptcy Court Judge Prudence Carter Beatty denied any antipathy toward Delta pilots, who are fighting efforts by the Atlanta-based airline to abandon the current pilot contract and slash their pay by 20%, or about $325 million a year.

Judge Beatty said union officials were misinterpreting remarks she made during hearings since Delta sought bankruptcy-court protection in September.

"I do not believe that I have a bias against the pilots," she said shortly after the start of a court hearing yesterday where Delta urged the judge to void the pilot contract. She didn't issue a ruling on that request.

The day after Delta's bankruptcy filing, Judge Beatty told Bruce Simon, a lawyer for the Air Line Pilots Association, the union representing Delta pilots, that the airline's pilot wages were "hideously high," according to a transcript of the hearing.

In another hearing last week, she said pilots were paid "an awful lot of money," adding that "the only good thing about them is they can't work after they're 60" years old, a reference to the mandatory retirement age for U.S. commercial airline pilots...
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Old 17th Nov 2005, 22:47
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Cool

Ah yes, clearly unbiased and objective thoughts from a mind unaffected by peevish prejudices and petty agendas.
Without doubt, ethics and integrity will prevail in this case.
Justice for all, including those overpaid over the hill airplane drivers.
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Old 18th Nov 2005, 16:29
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Delta pilots - charge into the guns
If they do, I fear the results will be the same as when the Eastern pilots went on strike -- the pilots will then get paid $0 when Delta goes under.

Will you consider that to be "victory"?
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Old 18th Nov 2005, 17:02
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>>Will you consider that to be "victory"?

It sure was in the Eastern strike.

As one of the IAM "Strike Coodinators", Ernie Mailhot dutifully reported:

"...After 686 days on strike against Eastern Airlines, rank- and-file members of the International Association of Machinists (IAM) and our supporters registered the final piece of our victory against the union-busting drive of the employers when the carrier folded at midnight on January 18, 1991.

Eastern strikers from coast to coast, from Puerto Rico to Canada, reacted by calling to congratulate each other and going out to airports to celebrate..."

The Miami Herald had a picture of a machinist holding up the previous day's edition about Eastern's shutdown with the caption 'We Won!'

Those were heady days...
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Old 19th Nov 2005, 00:04
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Comments by Judge Prudence Carter Beatty, such as, "the airline's pilot wages were hideously high,", and "pilots were paid an awful lot of money,", as well as, ""the only good thing about them is they can't work after they're 60 years old,", clearly indicates to me that she IS biased.

She has "cleverly" covered herself with the statement, "I do not believe that I have a bias against the pilots,".
I would ask her to swear UNDER OATH, that she is certain that she has has no bias against pilots and is able to make an UNBIASED and fair ruling, free of undue influence of any nature.
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Old 19th Nov 2005, 04:33
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Question

If many experienced attorneys and judges consider themselves under-paid, and assuming that they could hold a class 1 medical license, did they try to earn their initial ratings as either a civilian pilot, or consider qualifying for a military training slot?

If not, then why not? Many US airlines have been equal-opportunity employers regarding race, sex, and for many years.

Such legal types can not stomach the fact that in the past, market forces produced various carriers' competitive salaries (created through "pattern-bargaining", although strongly denied by some mgmts), possibly equaling a JUDGE'S SALARY? And now, market forces are slashing those same salaries. Have many JUDGES' SALARIES have been SLASHED by 30-50%?

Why don't those legal types with similar opinions, who are still young, try to enter OUR business from scratch, just as tens of thousands who preceded them, and join the same unstable, demanding, always unpredictable career? Did they not have the nerve, stamina and determination?

As a parallel, how many thousands of attorneys got laid off in the last few years, just before or after Christmas, as other law firms picked up their business while the many "on the street" found totally different work?

Last edited by Ignition Override; 23rd Nov 2005 at 05:20.
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Old 21st Nov 2005, 00:20
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Thumbs up Delta Pilot Strike? By all Means

Lessee...Eastern's "management" handpicked their bankruptcy judge. Do you suppose Delta's "management" did the same? How do you suppose "management" gets to keep their golden parachutes while the rank and file get shafted? The handpicked judge gets my vote.
But that's not the issue here. Delta pilots going on strike is the issue. I vote that Delta pilots should go on strike. More than a decade ago, Delta and ALPA screwed Eastern pilots by rejecting the written fragmentation policy in Delta's pilot's contract. Delta collected more than a few jets, gates, ground equipment, and a hangar; but did not take one pilot! So Delta pilots, I urge you to vote to strike your airline. Nothing would be more satisfying than to see Delta gone. Give those Atlanta gates to United, USAir and AirTran.
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Old 21st Nov 2005, 01:32
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EAL747:

As a former EAL pilot, do you have "issues" with Delta? Just a wee bit pissed off, perhaps.

Yes, I agree striking would mean the end of DAL which would be poetic justice considering how they always treated us, but 16 years is a long time to hold a grudge, don't you think?

BTW, if you were a 747 guy, you are fairly unique.

GF

EAL747:

I was EAL B727 at BOSFO, FYI.

GF
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Old 22nd Nov 2005, 08:26
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Yeah, they took one pilot.....Capt.B.B. cant have an ALPO big cheese without a job huh??

Last edited by ironbutt57; 22nd Nov 2005 at 09:54.
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Old 27th Nov 2005, 17:23
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Delta pilots won't strike. They will fold like cheap suits, just like the US Airways and United. Next year you'll see the American Airlines pilots fold up when AA declares bankruptsy.
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Old 28th Nov 2005, 02:07
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Strike should not be an option. Seems to me the most potent weapon a pilot has are his hands. A well organised slowdown, fly by the book, question MELs, slow taxi etc can wreak havoc with a schedule.
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