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Monday, November 23, 
10:02 pm

Delta/Northwest pilots approve joint contract

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Pilots at merger partners Delta Air Lines Inc. and Northwest Airlines Corp. on Monday approved a joint collective bargaining agreement, clearing a key obstacle to Delta's hope of integrating the two airlines without major issues.

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Delta's chapter of the Air Line Pilots Association told members Monday that 61.7% of Delta aviators who voted approved the agreement, while 86.7% of Northwest pilots approved the plan. The deal was expected to be more popular with Northwest pilots because it extended to them raises and an equity stake in the combined company that Delta's union had already secured for its membership separately.

Delta CEO Richard Anderson in a statement called the approval a "historic milestone in creating the world's premier global airline." Delta officials hope to close the transaction prior to year end, assuming it receives the green light from regulators and shareholders.

The pilots still do not have a plan to integrate their seniority lists, a key stumbling block in past airline mergers as pilots use seniority to determine who gets to fly choice routes and better customize their schedules. The two sides have agreed to submit to binding arbitration if they are unable to come up with an integration plan of their own by Tuesday, an event that now seems likely.

Pilots are the only major unionized work force inside of Delta, but the airline could still face troubles from unions active at Northwest. Unions representing Northwest flight attendants and ground workers testified before Congress last month that they were concerned they might not get a fair chance to organize workers at the merged company, but pledged to fight for union elections at the combined carrier. - Lou Whiteman

See statement from Delta's pilot union
See Delta's statement
See Dealscape post on testimony before Congress
See Dealwatch: Airlines





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