Salt Lake Tribune
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Pilot issues keeping merger on hold
This is an archived article that was published on sltrib.com in 2008, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

An announcement of a merger between Delta Air Lines and Northwest Airlines won't come until union negotiators for the carriers' pilot groups finish the tedious work of combining their seniority lists, sources close to the negotiations said Wednesday.

Integration of the lists has been complicated by the fact that Northwest's pilots generally are older and more experienced than their Delta counterparts, the result of a buyout that cleared 2,000 pilots from Delta's ranks before its bankruptcy in 2005. Both groups are reluctant to relinquish elite seniority spots.

"No one is more selfish than airline pilots, and each of us wants the very best for ourselves, sometimes at the expense of other pilots," Delta pilot Michael Dunn told The Salt Lake Tribune on Wednesday.

The Detroit Free Press reported Wednesday that pilot leaders from Northwest Airlines will meet today and Friday in Minneapolis. Air Line Pilots Association spokesman Greg Rizzuto confirmed the meetings, but declined to disclose details.

Sources confirmed that most other details of the pilots' proposed joint contract have been worked out, including an equity stake for pilots that would equal 5 percent of the value of the combined carrier and a voting seat on the board of directors.

The boards of Delta and Northwest had been expected to meet Wednesday, but it was not clear whether they did. A vote on a merger agreement isn't likely until the pilots association finalizes a seniority list.

A spokesman for the union, which represents 11,100 pilots at the two airlines, said creating a fair seniority list is a crucial issue for the pilots. Although the list is unlikely to stand in the way of a merger, having one in place could help speed up the integration of the companies down the line.

"Most of our economic and contractual issues have been favorably resolved, and we are very enthusiastic about the growth that a consolidation could inspire," Rizutto said.

Two people chosen to speak for the Delta branch of the pilots union have been less willing to discuss the progress of merger talks, which has led to confusion over how far apart the two pilot branches are in negotiations. Although both are part of ALPA, they operate independently, said a person familiar with union policies who asked to remain unidentified because he is not authorized to speak on behalf of the union.

The same person said other issues besides seniority are important to pilots. Delta's pay scale is higher, while Northwest pilots continue to have a defined retirement benefits program, something Delta pilots lost while the airline was in bankruptcy.

Northwest's pilots may be trying to get a pay raise, become the most senior pilots that they can in the combined company and keep their retirement package, the source said.

A person quoted by the Minneapolis Star Tribune said Northwest pilots risk losing pay raises of more than 30 percent because of the stalemate over seniority.

The merger deal "is at risk [because of] a handful, just a couple, of renegade Northwest Airlines pilots who are insisting on stapling thousands of Delta pilots at the bottom of the seniority list," the source said.

Sources told The Detroit News on Tuesday that front-line employees for Northwest would not face major job cuts under a merger with Delta. Instead, most of the cost savings for the new merged company would come from expected operating efficiencies and be supplemented by revenue gains. Any staff reductions would come mostly from the management ranks.

Delta employs abut 3,500 people in Utah, including 600 pilots and 700 flight attendants based at its Salt Lake City International Airport hub.

Union negotiators at work combining the seniority lists of the two airlines
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