Project:
Factors
Impacting Bargaining: Centralization & Delta Bargaining
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. Briefly, is airlines bargaining centralized or
decentralized?
2. Would bargaining work if it were the opposite?
3. What are the internal consequences of centralization?
4. How do these internal consequences of centralization
affect the bargaining btwn Delta & the DAPA?
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