WorldTraveler
Corn Field
- Dec 5, 2003
- 21,709
- 10,662
- Banned
- #16
avek,
I would argue that DL has followed the statute in meeting all 8 of the requirements so far, including presenting financial evidence that the cuts are needed for the company's survival. DL's challenge at this point is to make it through the winter so the route restructuring can bear some fruit and they are doing that with borrowed money - the only funds they will likely see until they emerge from bankruptcy. It is highly incumbent on all parties involved to halt the flood of red ink at Delta or the company will simply not even get to the point of being able to develop a plan of reorganization. However, I do agree that it is probably not necessary for the company to get everything it is asking for the period of time it is asking for that to happen; ie it is probably in DL and DALPA's interest to take a deeper cut for a short term with some snapback clauses (which companies hate) that are also accompanied by clauses that trigger further cuts. Part of the reason DL is trying to cut so deep is because the process of getting pilot costs down when needed is so incredibly difficult. I am confident DL would not reach as far if they felt they could manage pilot costs better as the business changes but airline labor contracts simply don't work that way. And I'm also certain that DL's non-contract employees will see a return of some of their rewards sooner than the pilots because the company can much more easily control non-contract labor costs. WN pilots are ALPA represented and yet they have historically been much more willing to work with the company to ensure each other's mutual success.... it's a novel concept DALPA should embrace.
and NHBB,
the judge did not say that DL has no obligation to its non-contract employees; she did say that what DL has done to them is not a consideration of how the pilot case is handled. She deals with contracts; there is no contract at issue with DL's non-pilot employees and the judge has absolutely no interest or concern with DL's relationship w/ those employees. She also will have no interest or concern if DL chooses to change non-contract pay and benefits after a pilot agreement is reached - even if it is for the better.
I would argue that DL has followed the statute in meeting all 8 of the requirements so far, including presenting financial evidence that the cuts are needed for the company's survival. DL's challenge at this point is to make it through the winter so the route restructuring can bear some fruit and they are doing that with borrowed money - the only funds they will likely see until they emerge from bankruptcy. It is highly incumbent on all parties involved to halt the flood of red ink at Delta or the company will simply not even get to the point of being able to develop a plan of reorganization. However, I do agree that it is probably not necessary for the company to get everything it is asking for the period of time it is asking for that to happen; ie it is probably in DL and DALPA's interest to take a deeper cut for a short term with some snapback clauses (which companies hate) that are also accompanied by clauses that trigger further cuts. Part of the reason DL is trying to cut so deep is because the process of getting pilot costs down when needed is so incredibly difficult. I am confident DL would not reach as far if they felt they could manage pilot costs better as the business changes but airline labor contracts simply don't work that way. And I'm also certain that DL's non-contract employees will see a return of some of their rewards sooner than the pilots because the company can much more easily control non-contract labor costs. WN pilots are ALPA represented and yet they have historically been much more willing to work with the company to ensure each other's mutual success.... it's a novel concept DALPA should embrace.
and NHBB,
the judge did not say that DL has no obligation to its non-contract employees; she did say that what DL has done to them is not a consideration of how the pilot case is handled. She deals with contracts; there is no contract at issue with DL's non-pilot employees and the judge has absolutely no interest or concern with DL's relationship w/ those employees. She also will have no interest or concern if DL chooses to change non-contract pay and benefits after a pilot agreement is reached - even if it is for the better.