The pilots of Delta Air Lines (DAL stock) have decided to strike if talks for new contracts fall down, the pilots union for the airline announced on Monday.
Since negotiations have “dragged on for too long,” according to the Air Line Pilots Association, 99% of Delta pilots agreed to allow union leaders to initiate a strike if necessary.
The wages and contracts that Delta pilots are currently operating under were negotiated in 2016. After the Covid pandemic broke out in March 2020, negotiations for a new agreement came to a halt.
“After overcoming the epidemic, Delta is now stronger than ever, reporting record third-quarter revenue. During this time, our negotiations have gone on far too long, according to Jason Ambrosi, president of the pilot union for Delta.
“Agreement, not strike, is what we’re trying to achieve. The management now has the initiative,” he continued.
That final sentence may be crucial. The Delta pilots have approved allowing a strike if necessary, but they haven’t approved going on strike—and that distinction is crucial.
A strike during the holiday season is improbable due to the drawn-out nature of the discussions. In reality, it seems improbable at this point that there will be a strike.
The process of renegotiating pilot contracts across the industry has also been influenced by proposed agreements by other carriers.
The pilots of American Airlines will discuss a proposal put forth by the company at the conclusion of the previous month. According to a draft deal, American has promised pilots a 12% boost on the day the contract is signed, with another 5% hike after one year, followed by a 2% hike the following year.
According to JPMorgan analysts, the airline’s new compensation agreement is “twice what was envisioned last summer.” They claimed that the higher-than-expected increase would “likely form the basis for negotiations between United and Delta.”
As of 10:11 AM on Tuesday, Nov. 1, Delta Air Lines, Inc. (DAL stock) is down $0.13, or 0.38 percent, from its previous closing price of $33.93. So far today, the stock has fluctuated between $33.62 and $34.43. Today’s volume is minimal. 12,362,194 shares have moved so far, versus 1,501,135 shares so far today.
After striking a tentative agreement in June, United Airlines became the first significant airline to offer pilots a new contract. However, by the deadline in July, the agreement had not been confirmed. Between the time of the agreement and the deadline, American presented pilots with an offer that was more lucrative than United’s.
Featured Image – Megapixl © Xiphias
Author Valerie Remorosa 
