Delta Flying Into Union Storm

Updated with Delta's closing stock price.

ATLANTA (TheStreet) -- Delta(DAL Quote) is flying into the toughest, most crucial labor battles it has ever faced.

In October 2008, Delta merged with heavily unionized Northwest, bringing thousands of union members into the tent. The following month, Democrat Barack Obama was elected president, enabling him to alter the composition of the National Mediation Board, which oversees airline industry labor issues. Obviously, both events involve potential drawbacks for Delta.

Over the past few decades, unions have repeatedly made runs at Delta, an outlier in one of the country's most unionized industries. As an example, Northwest was 96% unionized at the time of the merger. At Delta, only pilots and dispatchers, or 15% of workers, are unionized.

Now, two of the airline industry's biggest unions, which for the moment continue to represent thousands of Northwest workers, are organizing at Delta and gearing up for a series of elections. The stakes are extraordinarily high, because if the unions lose, they not only fail to gain new members but also lose members they already have.

"If Delta is the largest airline in the world, then we are going to be the largest union at the largest airline in the world," says Robert Roach, general vice president of the International Association of Machinists. "With the support we have both from current Northwest members and from Delta employees who have shown interest in organizing, we think we have a good chance of winning these elections."

Unlike the IAM, the Association of Flight Attendants has a benchmark by which to gauge its prospects. It staged a union election at Delta in May and won support from about 5,300 of the 13,400 eligible flight attendants. "As in every organizing campaign, we built support and structure," says Ed Gilmartin, AFA general counsel. Now the list of eligible voters has expanded by about 7,000 Northwest flight attendants. "We are very optimistic," Gilmartin said.

Shares of Delta closed Wednesday at $8.28, down 17 cents.