Gilding the Lily
Veteran
- Oct 30, 2006
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Relevant portions of an article in "The Deal" dated December 29, 2006:
Delta Air Lines Inc. subsidiary Comair Inc. and its pilots' union on Thursday, Dec. 28, reached a tentative deal that would give the disputing parties 45 more days to negotiate a new contract.
Bankrupt Comair, which received court permission to terminate its labor agreement with the Air Line Pilots Association, was planning to impose court-approved terms on the pilots on Dec. 30.
The airline is seeking about $15.8 million in annual concessions from its pilots as part of its restructuring.
Meanwhile, the pilots voted overwhelmingly to back their union's effort to strike should the commuter airline attempt to terminate their labor contract.
However, according to Thursday's agreement, Comair wouldn't cut pilots' pay or change work rules.
In return, the airline will be able to avoid $11.5 million annually in costs from increased pilot pay rates and contributions to pilots' defined benefit pension plan.
Union leadership was set to vote on the proposed agreement late Thursday.
If the pilots don't approve the deal, the two sides plan to ask Judge Adlai S. Hardin Jr. of the U.S. Bankruptcy Court for the Southern District of New York in Manhattan on Friday whether the pilots can strike if Comair imposed its terms on them.
Delta Air Lines Inc. subsidiary Comair Inc. and its pilots' union on Thursday, Dec. 28, reached a tentative deal that would give the disputing parties 45 more days to negotiate a new contract.
Bankrupt Comair, which received court permission to terminate its labor agreement with the Air Line Pilots Association, was planning to impose court-approved terms on the pilots on Dec. 30.
The airline is seeking about $15.8 million in annual concessions from its pilots as part of its restructuring.
Meanwhile, the pilots voted overwhelmingly to back their union's effort to strike should the commuter airline attempt to terminate their labor contract.
However, according to Thursday's agreement, Comair wouldn't cut pilots' pay or change work rules.
In return, the airline will be able to avoid $11.5 million annually in costs from increased pilot pay rates and contributions to pilots' defined benefit pension plan.
Union leadership was set to vote on the proposed agreement late Thursday.
If the pilots don't approve the deal, the two sides plan to ask Judge Adlai S. Hardin Jr. of the U.S. Bankruptcy Court for the Southern District of New York in Manhattan on Friday whether the pilots can strike if Comair imposed its terms on them.
