Delta's merger opposed
Unions tell Congress the plan would hurt consumers, workers
But the carriers' chief executives insisted they must combine to compete effectively worldwide and deal with soaring fuel prices.
"In order for these two carriers to do right by employees, by shareholders, by the communities we serve, we should be given opportunity to act on our own," Delta CEO Richard Anderson told a Senate Commerce subcommittee.
Anderson and Northwest CEO Douglas Steenland repeated their claim that after a merger, Delta does not plan to reduce service to smaller communities or raise prices. While Anderson told two other committees last month that about 1,000 headquarters jobs could be cut in Minnesota and Atlanta, where the combined airline will be based, the CEOs said again Wednesday that layoffs will be minimal elsewhere.
Merger opponents, however, told the senators that the merger is just another quick fix that will not solve industry-wide problems such as high fuel prices and high executive salaries.
"I've been in this industry for 33 years, and I've heard a lot of promises — and the commitments made today will mean nothing tomorrow," said Robert Roach, general vice president of the International Association of Machinists and Aerospace Workers union.
Patricia Friend, international president for the Association of Flight Attendants union, said she was concerned that a new, bigger Delta could use its heft to cut labor costs and keep out unions. She said the financial problems facing all airlines today demand attention from regulators.
"We believe Congress must take a hard and very serious look at where this industry is heading," Friend said. The current airline industry, she added, "is failing employees, consumers and communities."
Asked whether the new Delta would try to keep out union organizers, Anderson said the company would only try to make sure employees were educated and that fair elections were held.
"We've tried very hard to create a positive work environment at Delta," Anderson said, prompting some chuckles from Delta employees in the audience.
Groups representing airline workers have taken the lead in opposing mergers. On Wednesday, the head of United Airlines' pilots union issued a statement saying a merger with US Airways, now under discussion, would do little to solve United's financial problems.
The congressional hearing on the Delta and Northwest merger was designed to explore whether the deal to create the world's largest airline would hurt consumers or decrease competition.
Recent comments
"It's time we fix the (industry's) problems instead...
Amen... | May 8, 2008 at 3:28 p.m.
