Delta Airlines 2008 Annual Report Download - page 17

Table of Contents
Index to Financial Statements
The NMB has utilized certain procedures to address and resolve representation issues arising from airline mergers which generally have included the
following:
• Where employees in the same craft or class at the two carriers are represented by the same union, that union will be certified to represent the
combined group, without an election.
• Where employees in the same craft or class at the two carriers have different representation status—either they are represented by different
unions or one group is represented by a union and the other is not—the NMB's rules provide for a representation election among the combined
employee groups if the groups are "comparable" in size. In general, the NMB has considered two groups to be comparable in size if the smaller
group is at least 35% of the combined group. If the representation election results in the combined group not being represented by a union, the
collective bargaining agreement covering the group that had previously been unionized will terminate.
• If the two groups are not comparable in size, the smaller group will be folded into and have the same representation status as the larger group.
Even where the two groups are not comparable in size, the smaller group can still obtain an election if, within 14 days after the NMB's single
carrier determination with respect to that group, the smaller group submits a showing of interest from at least 35% of the combined group. The
showing of interest can consist of authorization cards as well as the seniority list of the smaller group, if the smaller group had been represented
by a union.
In view of these procedures, we believe that a representation election may occur in one or more combined employee groups. Under the NMB's rules, a
labor union generally will be certified as the representative of the employees in a craft or class only if more than 50% of those employees vote for union
representation. If a labor union is certified to represent a combined group, the terms and conditions of employment of the combined work group ultimately
will be subject to negotiations toward a joint collective bargaining agreement. Completing joint collective bargaining agreements covering combined work
groups that choose to be represented by a labor union could take significant time, which could delay or impede our ability to achieve targeted synergies from
the merger.
With respect to integration of seniority lists, where the two employee groups in a craft or class have different representation status, federal law requires
that seniority integration be governed by the procedures first issued by the Civil Aeronautics Board in the Allegheny-Mohawk merger – known as the
Allegheny-Mohawk Labor Protective Provisions. In general, Allegheny-Mohawk Labor Protective Provisions require that seniority be integrated in a "fair and
equitable" manner and that any disputes not resolved by negotiations may be submitted to binding arbitration by a neutral arbitrator. This requirement is
consistent with the seniority protection policy that has been adopted by the Delta board of directors. Where both groups are represented by the same union
prior to the merger, seniority integration is governed by the union's bylaws and policies. The integration of the seniority lists of the pilots of Delta and NWA
as well as flight dispatchers, meteorologists, and technicians and related Technical Operations employees have been resolved.
Executive Officers
Richard H. Anderson, Age 53: Chief Executive Officer of Delta since September 1, 2007. Executive Vice President of UnitedHealth Group and
President of its Commercial Services Group (December 2006 to August 2007); Executive Vice President of UnitedHealth Group (November 2004 to
December 2006); Chief Executive Officer of Northwest (2001 to November 2004).
Edward H. Bastian, Age 51: President of Delta and Chief Executive Officer of NWA since October 2008; President and Chief Financial Officer of
Delta (September 2007—October 2008); Executive Vice President and Chief Financial Officer of Delta (July 2005—September 2007); Chief Financial
Officer, Acuity Brands (June 2005—July 2005); Senior Vice President—Finance and Controller of Delta (2000—April 2005); Vice President and Controller
of Delta (1998 – 2000).
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