Delta and its Pilots Reach Deal in Principle on New Labor Contract

The union that represents 12,800 Delta Air Lines Inc. pilots said Friday that it has reached an agreement in principle with the nation's No. 2 carrier to amend the group's existing labor contract.

The Air Line Pilots Association declined to release terms of the potential deal. Union officers will review the language for seven days. If they approve the pact, it will be sent to the pilots for a ratification vote, ALPA said.

Atlanta-based Delta had no immediate comment. Delta's pilots are the airline's only major unionized group. The bulk of the company's workers are nonunion.

A wide majority of Delta's aviators rejected an earlier proposal in July 2015. While that three-year deal contained pay raises and the promise of 60 new airplanes joining Delta's fleet, it also contained what many pilots viewed as concessions at a time when Delta is highly profitable.

They particularly objected to a big potential reduction in the amount of profit-sharing the pilots would receive, a new sick-leave policy that some saw as draconian and work-rule adjustments in scheduling and other areas.

In the wake of that rejection, the union leadership has changed and bargaining resumed with assistance from federal mediators. Capt. John Malone, current chairman of ALPA's branch at Delta, said the agreement in principle raises the bar for pilots across the industry and "recognizes and rewards the Delta pilot group" for its contributions to the carrier's financial success.

It has been a tough few years of labor talks in the U.S. industry, as workers have pressed for richer terms because the big airlines have been posting record profits. And the carriers have tried to hold the line on big increases in fears of saddling themselves with unsustainable labor costs. Several unions have rejected contract offers, prolonging negotiations.

(END) Dow Jones Newswires

September 30, 2016 17:25 ET (21:25 GMT)

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