EMPLOYEES CAST WARY EYE ON NORTHWEST-DELTA MERGER

Friday, April 18, 2008

(Workday Minnesota/PAI)

By Workday Minnesota

and Press Associates

BLOOMINGTON, Minn. (PAI)--Months of speculation ended April 14 with the announcement that Northwest and Delta Air Lines will merge. But for employees of Minnesota-based Northwest, the uncertainty is just beginning. Delta is another story.

The merged carrier, to be called Delta Air Lines, "will serve more U.S. communities and connect to more worldwide destinations than any global airline,"

Northwest said in a statement e-mailed to frequent fliers. "Our hubs--both Delta's and Northwest's--will be retained and enhanced."

Northwest is headquartered in the Twin Cities, one of its two main hubs, along with Detroit. It employs about 31,000 workers, most of them unionized, including pilots, ground crews, mechanics and flight attendants.

Atlanta-based Delta has about 47,000 workers, but only its pilots are unionized. A mail ballot election among Delta’s 13,400 attendants about whether the Association of Flight Attendants -CWA will be their bargaining agent will run from April 23-May 28.

A combined Northwest-Delta will control nearly 18% of U.S. air traffic, making it the largest carrier in the world—at least for right now--industry analysts said. Some speculated the merger, if approved, could lead to other mergers among U.S. airlines.

The new airline's headquarters will be in Atlanta, affecting some 1,000 employees at Northwest's headquarters at Minneapolis-St. Paul International Airport. Perhaps of greater concern is the fact that, except the pilots, all of Delta's employee groups are non-union.

"We will need the solidarity of the membership if we are to have any success protecting our jobs, our contracts and our pensions," Machinists Air Transport Lodge 143 President Stephen Gordon wrote to his members after the merger announcement. Lodge 143 represents Northwest’s reservation agents, baggage handlers and other ground workers.

"It will come as no surprise if airline executives attempt to manipulate the merger process to reduce or eliminate the presence of union contracts at the combined carrier," Gordon warned. The Machinists will continue to oppose the merger as it makes its way through the regulatory process, Gordon said.

"IAM will be calling on our members to help protect their jobs by taking action in

the halls of Congress, visiting politicians in their home states, and participating in rallies nationwide. We are 700,000 active and retired members strong. The politicians must

listen to us,” Gordon added.

At least one key politician is already listening to union qualms about the merger. House Transportation and Infrastructure Committee Chairman James Oberstar (D-Minn.) plans hearings on its impact on workers and communities. Federal regulators, including the Justice Department, must also sign off on the merger.

Regardless of action in D.C., "If this proposed merger actually does occur, we intend to remain the collective bargaining representative at the combined airline and will need your full support to accomplish that goal," IAM’s Gordon vowed.

The merger was held up over the issue of merging the Northwest and Delta pilot seniority lists. No resolution was reached on that issue, and it could be a thorny one. For that reason, Northwest pilots--represented by the Air Line Pilots Association–will oppose the merger, said Dave Stevens, their chairman. Delta’s pilots, also ALPA members, agreed to the merger, said their chairman, Capt. Lee Moak.

“Delta pilots are not opposed to a rational and sensible consolidation scenario. We have consistently said the ‘right’ merger opportunity could draw our support and result in a successful merger,” Moak said. The Northwest-Delta merger, which Moak’s board sent to his members on April 12, includes contractual improvements and financial returns for the value the pilots’ participation provides to the merger, Moak added

The Northwest pilots almost got to the same point, Stevens told his members in a letter. "We were very close to concluding a truly cooperative merger which would have served the interests of everyone. We regret that an agreement was not obtained."

Without a plan to merge the seniority lists of the two ALPA pilot groups--and with the rising cost of jet fuel-- the merger "is a recipe for failure. Under these conditions, Northwest Airlines and all the stakeholders, including the pilots, other employees and

customers, are better served by a stand-alone airline," Stevens stated.

AFA-CWA, which represents Northwest’s attendants, will simultaneously oppose the merger and continue its efforts to help Delta flight attendants organize. The vote is its second try at Delta. The first one failed, several years ago, because the union did not get an absolute majority of all bargaining unit members, as unions must under the Railway Labor Act, which governs airlines.

"Regardless of management's intentions, our union is prepared to defend our contract, uphold our bargaining rights, and demand an end to concessions and a stake in the merged entity equal to equity granted other labor groups," AFA-CWA said on its website. It added Delta’s management has a “history of labor apartheid at the airline.”