Delta pilots' union warns on merger job cuts

[deltawatch]

Delta pilots' union warns on merger job cuts
US Airways says committed to proposed takeover of Delta Air

WASHINGTON, Dec 6 (Reuters) - The leader of the pilots union at Delta Air Lines Inc. (DALRQ.PK: Quote, Profile , Research) said on Wednesday he opposed a US Airways Group (LCC.N: Quote, Profile , Research) proposal to take over Delta, warning that about 1,000 Delta pilots would lose their jobs.

Lee Moak, the leader of the Delta chapter of the Air Line Pilots Association, said if US Airways' $8.7 billion takeover of Delta succeeds, it would mean "several thousand employees" would lose their jobs at Delta overall.

The pilots union, on the nine-member official committee of Delta unsecured creditors, is the first Delta creditor to publicly oppose the bid since US Airways made a presentation to Delta and the committee last week.

"They have the ability to terminate employees and furlough employees," Moak said. "The vast majority of our employees do not have labor agreements, so that they can do what they want to do with them at will."

The union represents about 6,500 pilots and holds $2.1 billion in claims against Delta, which has been operating under bankruptcy protection since September 2005. Delta has some 47,000 employees overall.

US Airways has said it would cut capacity by about 10 percent in a combined airline and achieve any labor force reductions needed through attrition and voluntary leaves of absence.

"It's just like being terminated," Moak said. "I think it's disingenuous what they said."

A US Airways spokeswoman reiterated the company's position on the matter.

 

[wings396]

I think that the leader of the union is taking a shot in the dark on this one. First of all, if the merger does take place it will not happen overnight. How many DL pilots will retire prior to the operational merger? We could be looking at least a year from the date of the transaction being finalized until that time. I imagine the 10% that Parker speaks of is due to overlap. The A/C taken off the overlapping routes could very well be used for some new markets as well. This statement by the pilot group leader is nothing more that a scare tactic to raise some eyebrows in Washington. If the Delta pilot group were so concerned about furloughs, they shouldn't have let Delta permit Comair to fly hundreds of RJ's on thier routes to begin with. I'm sure they had a bit of say in this matter when they were at the table with management a few years back. The liberal RJ scope at DL set the industry standard for other Airlines to eliminate plenty of Mainline flying with RJ's. How many DL pilots would still have their jobs if Comair and ASA didn't replace a large portion of their flying? What took place in CVG is a prime example of just how much mainline flying was replaced by RJ's.

 

[DLFlyer31]

How many DL pilots will retire prior to the operational merger?

Not many. DL lost a lot of pilots to early retirement as they all bailed ship to preserve their lump-sum pension payouts. DL has a relatively small number of pilots that are near retirement age.

I'll agree with you that he is blowing this out of proportion. I don't think you'll see a lot of pilot layoffs. In fact, most of the capacity cuts will come from dumping 50 seat RJ's which would have no impact on mainline DL pilots.

The bigger concern is that DL pilots might lose out in a seniority merger with US pilots. US pilots are an older group which could create havoc for the career expectations of many of DL's junior pilots.

 

[flyingcat]

US east has a large amount of very senior pilots, one of the the most senior mix of all airlines actually.This works in favor of those worried about furloughs


The history of Doug Parker and furloughs shows that he will not do them. He will run with current staff initally and let retirements lessen the number. Some key things to remember is that HP, now US management, likes to keep fleet utilization very high, which negates planes leaving the fleet. Third the 10% reduction will be almost entirely in the RJ sector, this is straight from the CFO.

 

[flyhigh]

...he does have an important voice as DALPA hold about 1/8 of the unseccured debt votes as part of the creditor committee. What I don't understand is the choice of location. Yes a lot of the US Virginia HQ staff lost jobs, but many also were offered opportunities in Tempe. Most importantly, nobody cares what happens to mgmt folks...less if you consider what those on this board think of mgmt folks.

 

[Swaayze]

"It's just like being terminated," Moak said. "I think it's disingenuous what they said."

While he's right that a merger would not be a good thing (near term at least) for either carrier's employees, I think this is a stupid statement. How is normal attrition or a voluntary furlough "just like being terminated"? I'm guessing he's never been "terminated".

 

[john john]

"They have the ability to terminate employees and furlough employees," Moak said. "The vast majority of our employees do not have labor agreements, so that they can do what they want to do with them at will."

This is why Delta is a prime target for a takeover

The liberal RJ scope at DL set the industry standard for other Airlines to eliminate plenty of Mainline flying with RJ's. How many DL pilots would still have their jobs if Comair and ASA didn't replace a large portion of their flying? What took place in CVG is a prime example of just how much mainline flying was replaced by RJ's.

US Airways pilots scope is among the worst is the industry
The US Airways and America West collective bargaining agreements with ALPA will be modified to allow for a combined maximum of ninety-three (93) CRJ-900, or other aircraft within the seating and maximum take-off weight limits specified in Paragraph B above, to be operated in revenue service at any given time at Express Carriers except that for every two (2) aircraft in excess of the combined 360 aircraft (excluding EMB 190 aircraft) operated at both US Airways and America West, that are added to revenue service in the mainline fleet, the Company may allow three (3) additional CRJ-900, or other aircraft within the seating and maximum take-off weight limits specified in Paragraph B above, to be operated in revenue service at Express carriers.

 

[andyperkins]

December 6 2006: 6:29 PM EST


WASHINGTON (Reuters) -- The leader of the pilots union at Delta Air Lines Inc. said Wednesday he opposed a US Airways Group proposal to take over Delta, warning that about 1,000 Delta pilots would lose their jobs.

Lee Moak, the leader of the Delta chapter of the Air Line Pilots Association, said if US Airways' $8.7 billion takeover of Delta succeeds, it would mean "several thousand employees" would lose their jobs at Delta overall.

The pilots union, on the nine-member official committee of Delta unsecured creditors, is the first Delta creditor to publicly oppose the bid since US Airways made a presentation to Delta and the committee last week.

Delta to US Air: 'Thanks, but no thanks'
"They have the ability to terminate employees and furlough employees," Moak said. "The vast majority of our employees do not have labor agreements, so that they can do what they want to do with them at will."

The union represents about 6,500 pilots and holds $2.1 billion in claims against Delta, which has been operating under bankruptcy protection since September 2005. Delta has some 47,000 employees overall.

US Airways has said it would cut capacity by about 10 percent in a combined airline and achieve any labor force reductions needed through attrition and voluntary leaves of absence.

"It's just like being terminated," Moak said. "I think it's disingenuous what they said."

A US Airways spokeswoman reiterated the company's position on the matter.

Moak, who spoke to reporters in Arlington, Virginia, said he planned to lobby lawmakers in Washington as early as Wednesday to oppose the merger.

He also said the union would enforce its contract, which could stop a merger from happening.

"We do not intend to merge with US Airways," Moak told reporters. "We are not going to negotiate with them."

 

[757inthebarrel]

He also said the union would enforce its contract, which could stop a merger from happening.

"We do not intend to merge with US Airways," Moak told reporters. "We are not going to negotiate with them."

This deal is bad for both companies employees. It dooms us all to many more years of uncertainty. There are 50,000 employees who are unified against it. In the unlikely event the creditors buy the deal, Congress is sure to look very closely and use their influence with the DOJ/DOT to kill the deal. Too many districts will be adversely affected. Too many customer choices will be eliminated.

This is the worst of all possible merger combinations. It's a slimey, thinly veiled attempt to eliminate competition. Everything that can possibly be done to kill this will be done. Hope to see all available at the anti-merger rally 13 Dec in Atlanta.

 

[Bulscu]

Delta to US Air: 'Thanks, but no thanks'
"We are not going to negotiate with them."

moot/fragmentation

 

[wings396]

This is why Delta is a prime target for a takeover
US Airways pilots scope is among the worst is the industry
The US Airways and America West collective bargaining agreements with ALPA will be modified to allow for a combined maximum of ninety-three (93) CRJ-900, or other aircraft within the seating and maximum take-off weight limits specified in Paragraph B above, to be operated in revenue service at any given time at Express Carriers except that for every two (2) aircraft in excess of the combined 360 aircraft (excluding EMB 190 aircraft) operated at both US Airways and America West, that are added to revenue service in the mainline fleet, the Company may allow three (3) additional CRJ-900, or other aircraft within the seating and maximum take-off weight limits specified in Paragraph B above, to be operated in revenue service at Express carriers.

I fully agree about the US RJ scope, but it was DL that started the trend. Delta went nuts with all the RJ's to kick off the trend, and most airlines followed as quick as the could, with the exception of SWA. I still remember Wolfe telling us how urgent it was to get RJ's as US was way behind the others. Then Dave came on board, and RJ's were his #1 priority. Get lots of them, cut back mainline flying, park mainline jets, close mainline stations, all in favor of those Damn RJ's. They were the begining of the end for lots of people in the industry. They started out as 50 seaters, now they have creeped up to 90 seats. I have always hated them, and always will. They were nothing more than a tool to eliminate decent paying jobs. Flying Jets around with Express slapped on the side, with low Express wages to go along with them. :down:

 

[Mr Eagle]

While he's right that a merger would not be a good thing (near term at least) for either carrier's employees, I think this is a stupid statement. How is normal attrition or a voluntary furlough "just like being terminated"? I'm guessing he's never been "terminated".

SO Far US AIRWAYS HAS NOT LAID OFF ANY MAIN LINE EMPLOYEE'S. You know NON MANAGEMENT. So This Is A Very Week,Post. MWW

 

[757inthebarrel]

Moak has seen the plan that was presented to the creditors. He knows how bad it will be and how many jobs will be lost. He also had a chance to speak with the perpetrators and was not happy with the responses.

 

[osunut]

Moak has seen the plan that was presented to the creditors. He knows how bad it will be and how many jobs will be lost. He also had a chance to speak with the perpetrators and was not happy with the responses.

He is a pilot, they are never happy with anyones responces. You know what all the other employees should be asking, why a pilot gets paid 5x what a gate agent or ramper does and they do no physical work? Other employees should be yelling at the pilots, please, you ever been up front, I have and holy crud, I have to change alt, well turn the knob and push it in, wow!!!

Dont give me "we spend money training and it is pay back" or "we are responsible for the lives of thousands" well a ramper that doesn't do his job right can down an a/c just as quick and please 50 grand to start....i feel sorry for you....

Hush up and take it like a man.....

 

[Itestwell]

He is a pilot, they are never happy with anyones responces. You know what all the other employees should be asking, why a pilot gets paid 5x what a gate agent or ramper does and they do no physical work? Other employees should be yelling at the pilots, please, you ever been up front, I have and holy crud, I have to change alt, well turn the knob and push it in, wow!!!

Dont give me "we spend money training and it is pay back" or "we are responsible for the lives of thousands" well a ramper that doesn't do his job right can down an a/c just as quick and please 50 grand to start....i feel sorry for you....

Hush up and take it like a man.....

You are joking, right?