The binding arbitration process would pose risks for Delta and the Air Line Pilots Association, which represents the airline's 6,000 pilots.
For example, a term sheet filed today in U.S. Bankruptcy Court in New York says the panel's decision would be final and binding on both sides, subject to limited rights to appeal. The union, however, believes it could still strike if the panel were to reject its contract.
Another risk is both sides have agreed to bear the costs of employing the arbitration panel, which could additionally award damages to Delta if it were to throw out the pilots contract, according to the term sheet.
For Delta, the risk would be that the arbitration panel will be less friendly than the bankruptcy court, which has often sided with other airlines in their disputes with labor unions.
Delta had asked the court to reject the pilot contract so the airline could impose $325 million in concessions on its pilots. A tentative agreement on temporary pay cuts worth more than $152 million a year that the sides worked out Sunday has prompted Delta and the union to ask the court to suspend the contract rejection request.
(Copyright 2005 by The Associated Press. All Rights Reserved.)
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