Old 04-09-2008 | 03:18 PM
  #204  
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DelDah Capt
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Originally Posted by AV8ER13
Why do you think NWA pilots have no leverage, and why do you think that DALPA should do the neg. for both pilot groups. By agreeing to this you would be "screwing" the other pilot group, whether you think that or not.

AV8ER13,

I'm going to repost my 'possible' merger scenarios again for clarity:

-We could come up with a premerger seniority list and a negotiated contract with all the pay, work rule, and benefits goodies for all. This method has been tried and did not produce results. For better or worse, that ship has sailed and it ain't coming back.

-The merger could be forced upon us in the traditional sense. We would battle out a post merger seniority list (possibly by arbitration), and nobody gets any pay, work rule, or benefit improvements.

-The merger could take the form of holding company/subsidiary so that the combined entity could take advantage of some (but not all) synergies. DALPA could use it's leverage to negotiate some pay/work rule/benefit/equity while limiting the amount of whipsawing that the holding company could do (remember, DALPA has language that prohibits this scenario from even happening). The hope would then be that a merged seniority list can be accomplished and then NWA would get access to the negotiated 'goodies'

Within the past week, the 'time pressure' on this merger has been increased. The pressures are both economic and political. Oil is out of control, airlines are failing, and the economy is in the tanks. The Delta board is being told that this needs to happen now if either company is going to survive. Furthermore, if they want the help of the more business friendly government, they better start the process now because no one knows who will be in power come November. Because of these time pressures, my Option A is off the table. They are not going to wait around for the pilots to sort things out.

The easiest thing for Delta management to do is just start the merger process without the pilots and not spend any money on new pay and benefits package for them. This is Option B and truth be told, neither the DAL nor NWA pilots could do anything about it. Under this scenario, neither pilot group gets any improvements, they still have an acrimonious seniority list battle to face, and management is left with two ticked off groups.

For whatever reason, DAL management is wary of this.....and make no mistake, for better or worse, it is the DAL management in Atlanta that will be left in charge of this mess. The NWA management has one foot out the door and has cut their pilots loose. The only thing the NWA mangement is hanging around for is their 'Going Away' bonuses. The DAL MEC has spent considerable time, even before this merger was even thought up, convincing DAL management that the pilots will play a role in a merger. I'm not sure if they even have any right or power to demand a role in this, but it's clear they convinced Delta that they did since they were even able to negotiate contract improvements as part of the initial attempt to merge....that whole process was precedent setting. Even if DAL doesn't want to let the pilots have a role, they are looking at the debacle occuring at USair where 3 years after the merger announcement, they are still no closer to a merged operation.

So how does DAL management start the merger ball rolling under the time pressure while trying to get the two pilot groups to come together amicably? Well, apparently they're considering starting the merger process with the government while operting the two airlines seperately under a holding company. This allows them to get things started and take advantage of some of the efficiences. Meanwhile, they negotiate a new pay/work rule/equity package with the DAL pilots and use it as a carrot for the NWA side of the house. They tell the NWA pilots that they will receive the exact same improved package when they come to an agreement on a new List with the DAL pilots. The word is that the NWA pilots have nothing in their contract to stop this. There is no need for DAL management to ask them for anything. However, DAL pilots do have contract language that would stop this. So, if DAL management wants to try this 'Carrot/stick' approach, they have to negotiate with the DAL pilots. This gives the DAL pilots leverage to demand a better 'goodies' package and it also allows them to keep protections that would prevent whipsawing of the two groups.

In the end, the NWA pilots have no way to prevent either of the two scenarios on the table. Further, they have no relationship with the surviving management group and the surviving management group has no need or desire to negotiate with them. To be brutally honest, the NWA pilots have really run out of options. If management decides to force a merger, both pilot groups lose and get nothing in return. If they go with the other option, the DAL pilots can try to get something in return and the NWA pilots will get the same deal as soon as a list is agreed to. Further, the NWA pilots still have a say in the merged list, but they will have to negotiate with the DAL pilots.....about the only thing they likely lose is the ability to demand arbitration.

That's why I say that NWA is lacking in leverage. Of course none of the above is written anywhere offically and it's all conjecture on my part. Further, I reiterate that I would not be comfortable with the "Carrot/Stick" approach at least until I get more information. However, if you can show me where NWA pilots have some leverage or even someone in the new management who's williing to listen to them, I'd be glad to hear about it.

Last edited by DelDah Capt; 04-09-2008 at 03:24 PM.
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