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Old 04-14-2006, 03:30 AM
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fireman0174
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Default Gains hinted in talks at Delta

Gains hinted in talks at Delta
Saturday ruling may be delayed
By RUSSELL GRANTHAM
The Atlanta Journal-Constitution
Published on: 04/14/06

Talks on a strike-averting contract deal continued Thursday between Delta Air Lines and its pilots union, with hints of progress that might at least delay a showdown.

Spokesmen for both sides declined to characterize the talks, being held in New York with the help of one member of an arbitration panel that has been involved in the dispute since last month.

People familiar with the situation said negotiators were trading proposals and narrowing differences.

Even if no deal is reached today, they said, the arbitration panel might delay a scheduled Saturday ruling on whether Delta can void its pilots contract and impose new terms. Pilot union leaders have said such a ruling would prompt a strike, and the union chairman is authorized to call one anytime after Monday.

The arbitration panel chairman, Richard Bloch, told The Associated Press he might have a statement by the end of the week, but he declined to elaborate on what the statement might say.

The strike threat has fliers and Delta workers nervous, although the airline has maintained travelers can continue booking "with confidence" as it seeks a negotiated settlement. Delta on Thursday issued a routine news release touting new flights and routes this summer from New York.

Delta wants to impose more than $300 million in annual cost cuts as part of its broader Chapter 11 recovery effort. It includes an 18 percent pay cut — the second major round of concessions in less than two years.

The airline says it's seeking the minimum package needed, while the pilots union says it's too much.

In earlier negotiations, the Airline Pilots Association offered a package it valued at $140 million a year. Another issue is the amount and form of compensation that pilots would get for retirement changes likely as part of Delta's court restructuring.

Negotiators were said to be dealing with such issues by informally swapping package proposals rather than dealing with pay cuts, pensions and other items as separate points. They have been meeting in a New York hotel under the guidance of arbitrator Robert Harris.

The panel of arbitrators entered the case in March, after the two sides failed to meet a deadline for a deal. They have urged the two sides to keep working toward a negotiated settlement rather than wait for a ruling due Saturday on whether Delta can impose terms.

Delta contends a pilot strike as a result of such a ruling would be illegal, but the issue falls in a legal gray area between labor and bankruptcy law.

Separately, Delta said it increased fuel surcharges starting today on overseas flights by up to $38 round-trip to offset rising jet fuel prices.

Find this article at:
http://www.ajc.com/business/content/...4bizdelta.html
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