The Air Line Pilots Association said Thursday it has rejected an offer of arbitration by the National Mediation Board in its contract dispute with Delta Air Lines, setting the clock ticking on a 30-day "cooling-off" period after which Delta's 10,000 pilots could legally walk out.
"Our goal is not to strike, but to attain a new contract in direct negotiations," said Capt. Charles S. Giambusso, chairman of the Delta Master Executive Council, a unit of the ALPA.
Nevertheless, ALPA warned in a prepared statement that if an agreement is not reached by the end of the 30 days (12:01 a.m. April 29) the union is prepared to go on strike — an action earlier agreed upon by a vote of the union membership.
Atlanta-based Delta, which operates a major "hub" at Salt Lake City International Airport and is by far the largest local carrier, had earlier agreed to federal mediation in the dispute and expressed disappointment at the union's action. But the airline didn't seem too worried about a strike shutting down its operations.
"President Bush has stated his intention to 'take the necessary steps to prevent airline strikes this year' in order to protect the traveling public and the economy," Delta said in a prepared statement, adding that the airline's operations continue as scheduled.
Delta said the president may appoint a Presidential Emergency Board if the National Mediation Board tells him that the labor dispute threatens to deprive any section of the country of essential transportation service. The emergency board could extend the cooling off period by an additional 60 days, delaying any walkout until late June or early July.
"While we are disappointed ALPA did not accept arbitration, we are prepared to resume negotiations and reach agreement as soon as possible," said Delta spokesman Thomas J. Slocum.
"We are committed to working toward a settlement. That's why our contract proposal would make Delta pilots the highest paid in the industry and would provide other significant improvements."
But the pilots don't see it that way. While a few minor issues have been resolved, they still have differences with the company over pay, retirement, job security and salary levels for pilots who work for the company's Delta Express low-fare unit.
Earlier this month, Delta said it would report a first-quarter loss of between $85 million and $110 million, citing flight reductions due to a weaker economy, pilots refusing to fly overtime and passengers who have made other arrangements for fear of being caught away from home during a strike.
Reuters news service reported Thursday that the union's rejection of arbitration was expected, quoting an analyst at Goldman Sachs who said airline unions "have more leverage than almost any other labor group in this country, and they use it."
Delta and ALPA have been in negotiations over pilot contracts since September 1999, although the contract did not become amendable until last May 2.
The union's Giambusso said government intervention in "internal labor affairs" would only "prolong the period of uncertainty for passengers and employees. A prompt resolution to these talks is in all parties' best interests."
In a related action, Delta's Comair unit, whose pilots spent a fourth day on strike Thursday, said it has accepted mediators' renewed offer of binding arbitration in that labor dispute. Comair, which said on Wednesday that it was canceling all flights through the morning of April 5, asked ALPA to agree to arbitration.
E-MAIL: max@desnews.com