Project:
Employee
Interests for the DAPA
Background:
Delta & the Delta Airlines Pilots Assoc (DAPA)
are engaged in contract negotiations.
The Pilots have given back wages & benefits
over the last 10 yrs. Their wages & benefits are 12 % below the
industry standard.
Delta had a long history of profitability, paying
out large dividends & stock splits. Beginning in the 90s they
borrowed to finance modernization. High interest
payments, the increase in fuel prices, & a
decline in ridership since 9/11 have driven Delta into bankruptcy.
The positions:
Delta is asking for a 9% pay cut, having pilots
pay for half of their health care benefits, a reduction in pension benefits,
& a cut of 15% of pilots.
The Pilots are asking for no pay cut, paying for
10% of health care, no reduction in pensions, & no job reductions.
Other issues: Schedule flexibity, safety
in the air, training, future job security
Briefly, answer the following questions:
1. What are the employee interests for DAPA?
2. Is DAPA concerned w/ long run interests?
How? Why or why not?
3. Is DAPA concerned w/ influence in the workplace?
Should they be?
4. Should DAPA be risk adverse?
5. Should DAPA let the threat of bankruptcy influence
them?
6. How might a profit sharing program be integrated
into the the negotiations?
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