Pilots Run Out of Patience With Pay Cuts (AP)

[DAL_Scope]

Northwest and Delta pilots have agreed to more than $1.2 billion in pay cuts over the last year and they're willing to give more. But talk of strikes this week from pilots at both bankrupt carriers signaled that they're running out of patience with demands to work for less.

http://us.rd.yahoo.com/finance/news/rss/st...ilots.html?.v=2

 

[WorldTraveler]

It's tough moving from being at the top of the industry compensation rankings to being in the bottom half (similar to UA for DL, slightly below for NW although both still w/ pensions).

DL pilots particularly resisted giving because they did not see the need. It is here and they will give. The bankruptcy court's job is to protect the value of the estate. Neither DL or NW have put their creditors on the witness stand but both will say in a New York minute that they will not support those airlines if labor costs are not brought down to market levels. At that point, the court has little choice but to side with the airlines - particularly when there is no convincing evidence that the companies are anywhere near turning the ship around and the winter is shaping up to be plenty long.

 

[lpbrian]

Are they being offered anything in return? They should, like some stock and some say in corporate governance. I'm no fan of pilots unions, but I think they could receive some stock incentive, and at least veto power over any dumd-arsed management merger idea.

 

[WorldTraveler]

stock options have done wonders for airline employees in the past - pilots aren't stupid enough to sign up for more of that. And actually there is a change of control clause in DL's current pilot contract and it's coming out.