NWA pilots to discuss Delta merger options on Sunday

Leaders of the Northwest Airlines pilots union will hold a rare Sunday meeting in Bloomington this weekend to discuss the potential merger between Northwest and Delta Air Lines.

Meanwhile, it was unclear what action the executive council of the Delta pilots union took at a Thursday meeting in which it was expected to consider a four-year labor deal its pilots negotiated with management. A Delta pilots spokeswoman declined to comment.

The separate pact between Delta and its pilots is considered a crucial step before the Delta and Northwest boards make final decisions about unveiling a merger plan.

The Northwest pilot leaders find themselves in an unusual position as a result of Delta's decision to focus on getting a deal only with its own pilot group. Delta management made that choice after Northwest and Delta pilot negotiators reached an impasse in March over how to integrate their seniority lists.

Delta CEO Richard Anderson, who would lead the merged carrier, wanted to follow a new path and secure labor peace between the pilot groups in advance of a merger. Once that appeared unattainable, Delta chose to work with its pilots now and negotiate with Northwest pilots later.

The four-year Delta pilots agreement includes raises of about 7 percent in the first year followed by pay increases of 4 percent each in years two, three and four, a person familiar with the deal said Thursday.

Northwest's pilot contract is not amendable until late 2011.

Any raises that the Delta pilots would receive under their new deal "ultimately will apply to the Northwest pilots as well if there is a merger," said a second source with knowledge of the talks.

If a merger finally is announced, it will be structured as a Delta acquisition of Northwest. That deal would then be reviewed by the U.S. Department of Justice for competition issues.

During that period, Delta management would be expected to negotiate with Northwest pilots on phasing in pay changes to bring the Delta and Northwest pilots under a common contract. Both pilot groups are represented by the Air Line Pilots Association.

Now, Delta pilots have higher pay rates than Northwest pilots.

Back in February, executives negotiated a four-year labor deal with both the Northwest and Delta pilot groups. It included raises of more than 30 percent for Northwest pilots.

Greg Rizzuto, a spokesman for the Northwest pilots union, said Thursday that he would withhold comments about the Delta labor deal "until details are confirmed."

He added that "any negotiations that do not involve all parties are rarely successful."

The Northwest pilots, who have more years of service on average than the Delta pilots, urged their counterparts to settle their differences through arbitration. But the Delta pilots rejected that approach.

Under ALPA merger policy, the two sides ultimately could end up in arbitration.

"A merger would be very positive for both employee groups," Mike Ristow, a retired Northwest pilot and former Northwest board member, said in an interview.

Based on the weakness in the economy, high oil prices and need for industry consolidation, Ristow said, "It is not in their best interest to have this [merger] deal go sideways."

But the seniority differences between the two pilot groups are so pronounced that Ristow said the issue would "almost certainly" end up in arbitration.

Liz Fedor • 612-673-7709