Delta, pilots headed to arbitration over pay cut plans

ATLANTA — No deal was reached by a Wednesday deadline between Delta Air Lines Inc. and its pilots over long-term pay and benefit cuts, sending the carrier’s request to throw out its pilot contract to arbitration.

The union that represents the Atlanta-based airline’s 6,000 pilots says it will strike if its contract is voided. The nation’s third-largest carrier has described a strike as “murder-suicide” and said such action would put it out of business.

The two sides had until 5 p.m. EST to reach a deal on their own or have a three-member panel of arbitrators step in.

The sole purpose of the arbitrators, who will hold two weeks of hearings at a downtown Washington hotel starting March 13, is to decide whether to grant Delta’s request to throw out its contract with its pilots so the airline can impose $325 million in cuts unilaterally. Nothing precludes the sides from continuing to negotiate up to and through the hearings.

The two sides agreed to arbitration instead of letting the bankruptcy court make the decision. Delta filed for bankruptcy in New York in September.

Negotiators for both sides met Wednesday, but did not reach a deal by the deadline. Another negotiating session was expected Friday, company spokesman Bruce Hicks said.

There was no immediate comment from the union, though a spokesman said a statement was expected.

The company had offered to reduce its long-term concessions request to $315 million, while the union is currently offering about $115 million in average annual concessions. Late Wednesday, the company said it lowered its request another $10 million to $305 million. The pilots, in late 2004, agreed to a five-year deal that cut pay and benefits by $1 billion annually. It included an immediate 32.5 percent pay cut.