Delta-Northwest Deal Could Oust Unions

Stock quotes in this article: DAL , NWA , UAUA , CAL , LCC , AMR  

Meanwhile, IAM president Tom Buffenbarger appeared last week at the Senate Judiciary Committee hearing on the merger, and said airline executives "want to use this merger as a weapon" to eliminate the union representation that exists at Northwest.

IAM spokesman Joe Tiberi says one potential result, were the IAM to depart, would be to force 12,500 Northwest members to switch out of the IAM pension plan. (Accrued benefits would be retained.) "Our members are the only ones on the property who still accrue money in a defined benefit pension plan," he said. During Northwest's bankruptcy, other unions were compelled to move to defined contribution pension plans.

The merger does have a potential benefit for the AFA, which, even if it loses the current vote, would get another shot if the merger occurs -- this time with the added participation of 9,000 Northwest flight attendants who are already members.

Still, "this could very well be the last chance Delta flight attendants get to gain a voice in their workplace," says AFA spokeswoman Corey Caldwell. "The Delta/Northwest merger is not a guarantee."

Know What You Own: A Delta-Northwest merger could very well be followed by others in the industry. A joining of United and US Airways (LCC Quote), a deal that was attempted in 2000 but never materialized, is back on the front burner, according to sources, after talks between Continental (LCC Quote) and United, a unit of UAL (UAUA Quote), collapsed over the weekend. Meanwhile, British Airways says it is talking with American (AMR Quote) and Continental about "opportunities for cooperation."

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