Delta reaches tentative wage cut agreement with pilots union
Bankrupt Delta Air Lines Sunday said it has reached a tentative interim agreement with the Air Line Pilots Association (ALPA), to reduce the pay of its more than 6,000 pilots.
The tentative agreement includes a 14 percent hourly wage reduction and reductions in other pilot pay and cost items equivalent to approximately an additional 1 percent hourly wage reduction. The interim cost reductions would be effective Dec. 15 and would remain in effect while the parties seek to reach a comprehensive agreement by March.
The Atlanta-based airline aims to lower costs by $3 billion a year by the end of 2007, with measures including 7,000 to 9,000 jobs being cut system-wide.
“This agreement reflects the resolve of Delta people to work together to help save the company. We recognize and appreciate the additional sacrifice this will represent,” said Ed Bastian, Delta’s chief financial officer.
Delta said it is on target to deliver its previous cost-savings goal of $5 billion a year by the end of 2006.