At an employees event that was more celebration than meeting last week, Delta's top officers heaped praise on an unlikely ally of management.
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2006 file photo | ||
| Lee Moak had a key role in the Delta-Northwest merger when, as head of the Delta pilots union, he struck a labor deal directly with airline management. But Moak's deal, while beneficial to the Delta pilots, stranded fellow union pilots at Northwest on the sidelines. | ||
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Pilots union boss Lee Moak, an ex-Marine fighter pilot, strode to the podium dressed in a crisp airline captain's uniform and unabashedly soaked up the applause.
Delta executives credit Moak and his lieutenants in the Delta pilots union with salvaging a foundering merger deal and driving forward creation of the world's biggest airline. They expect to rely on him to help sell politicians and regulators on the $17.7 billion deal.
Moak, who turns 51 today, charted what industry observers call an unprecedented strategy for airline labor. But detractors say it betrayed fellow union pilots at Northwest.
Rather than waiting for management to fashion a deal and then present it for union approval, Moak's team seized an influential role early on.
First, top executives of both airlines waited for Moak's team to work out an agreement with Northwest pilots on seniority matters that control pay, routes and other working conditions. When that approach failed, Moak cut a new labor deal directly with Delta. That allowed the merger to be announced last week but stranded Northwest pilots on the sidelines.
Ed Bastian, Delta's president who has worked closely with Moak, lauded the union chief's initiative.
It "takes courage and it's a lot of risk," Bastian said, noting that the turning point came in the past two weeks when the Delta pilot leadership "stepped up and said they were willing to do a deal" on their own. "Had they not expressed a willingness to do that, it would have caused us real pause as to whether we should proceed," Bastian said.
Moak's strategy came at a price. He enraged Northwest pilots, who felt he undercut them when Delta pilots made their own deal with management. Right now, Delta pilots will get a 3.5 percent equity stake in the new airline. Northwest pilots have no agreement and no equity.
Shortly after the merger announcement last week, the head of the Northwest pilots union called Moak's actions "very unfortunate." Both groups are part of the Air Line Pilots Association.
David Stevens, the chairman of Northwest's pilot group, declined to comment for this story. But in a recent letter to members, he wrote, "The Delta pilot leadership and Delta management have made an arrangement to try to disadvantage the Northwest pilots economically and with respect to our seniority."
He added that "no amount of money can sustain a carrier which creates this level of discord. This is a recipe for failure."
With such bad blood, Moak faces another challenge. Can his team fashion peace with its detractors and avoid protracted ill will among Northwest pilots that could torpedo the merger's promise?
"If he can do that, he's Superman," said Ted Reed, a veteran aviation reporter in Charlotte who covers the industry for TheStreet.com.
Moak predicted, "Northwest pilots will be on board shortly. It's a temporary problem and we'll work through it together."
Planning ahead
Moak assumed the pilot group's top job in a closely contested race just as Delta headed into bankruptcy in 2005. A tough-talking Moak defiantly pronounced to his fellow pilots: "We will not be victims."
Before long, though, Delta dumped its pilot pension plan — forcing a takeover by a federal agency. Moak accused Delta management of "bullying tactics" but eventually agreed to additional pay cuts, though less than what the company had asked for a judge to impose.
Moak searched for ways for the pilots to control their own future.
The union and other employees teamed up with management to help crush US Airways' attempted hostile takeover of the airline. But all along, Moak's team prepared for consolidation. His group raised $1 million to analyze the prospects for mergers. The union quietly hired merger and acquisition lawyers.
"What we decided to do is prepare and become a driver or partner" in the event of a merger they could back, Moak said last week. "Everyone would prefer standalone. But economics today do not allow that."
"We talked to everybody we could find who owned Delta stock and said that we would be involved in any process that involved Delta," he said.
In recent weeks, Moak grew more resolved as he watched oil top $110 a barrel and several smaller airlines fail or file for bankruptcy.
"Time was running out," he said. "That was the catalyst for moving things forward."
Moak's strategy is rare for a union leader, said Les Hough, a labor relations expert.
"It's unprecedented" for a union leader to cut a deal with management that leaves out members of the same union, said Hough, the former director of Georgia State University's Usery Center for the Workplace. And it's unusual for union leaders to have such an influential role in shaping a merger, he said. Generally, they oppose combinations because of the job losses that ensue.
The closest situation Hough said he could recall was in the 1970s, when United Auto Workers chief Doug Fraser worked in tandem with Chrysler executives to save the auto maker during a recession and soaring oil prices.
"Fraser was accused at the time of being in bed with management," Hough said. "As it turns out, it turned out very well for Chrysler. There's a case to be made for extraordinary actions such as Moak is taking."
Moak makes no apologies for his decisions.
"We didn't sit back on the sideline and whine, which is what I see in many businesses and industries," he said. "We're ahead of it. We were productive. We helped craft the final product."
That philosophy is the underpinning of the way he operates.
"He can't stand to let things go undone," said FedEx pilot Brady Muth, a hunting buddy who served in the U.S. Naval Reserves with Moak.
"He's the kind of guy who thinks if you want it done right, you do it yourself," Muth said.
What some see as decisive, others view as autocratic.
"There is an arrogance and condescending attitude toward the pilots group," said Mike Stark, a Delta captain in Marietta who helped lead a recent unsuccessful campaign to oust union leaders.
Stark said Moak's style is, " 'We know better. When we think you need to know something we will let you know what it is.' "
Moak has been criticized by some pilots for keeping them in the dark at key moments. At the same time, Stark said, Moak failed to get pilots enough pay and benefits from Delta executives. "A lot of us have observed what we feel is a too cozy relationship with Delta management."
Stark said Moak and his team have gone to social events with Delta bosses, including president Bastian's birthday party last year. Many labor leaders would eschew such events, viewing it as inappropriate for people in their position.
Moak dismisses such complaints.
The union group, which represents 6,000 Delta pilots, helped craft a merger that gives employees and the company "a substantially viable future," he said. "If that's what they want to call 'chummy,' that's what it is. Bottom line, look at the results and what we've achieved for everyone."
The role of union leader isn't particularly rewarding, said Reed of TheStreet.com. "It's a horrible time for airlines. He decided this was the best way to do what he can for his members."
The job follows Moak everywhere, whether at his home in New Orleans, on routes to Europe he still flies for Delta or during what's supposed to be his down time.
Muth remembered being in a duck hunting blind at
5:30 in the morning in Louisiana when Moak's union cell phone went off.
"He can never get away from it," Muth said.
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Comments
By M
Apr 21, 2008 10:29 AM | Link to this
My fellow airline pilots. Your post on here are disgraceful and an embarrasment to our profession. Take the discussion to the webboards of the union or other known boards. Venting our problems in the AJC only helps to foster the poor opinions the public has of pilots. Grow up, and act as you should.
By stormywx
Apr 21, 2008 6:46 AM | Link to this
Tony, typical.... enjoy your retirement.
By AA737CA
Apr 21, 2008 12:51 AM | Link to this
Well well, what do we have here...Lee being refered to as an ex-Marine(vise "former") and a divisive ALPA who only strengthens the airlines management's hand. I've known Moak since college and I can assure you he was "lookin out for his Troops" as it were, doing what he thought was in the best interest of the "Delta" pilots when pitted against NWA. The thing is they are both APLA and the ALPA have been their own worst enemy since allowing differing wages/retirements/etc. between airlines. The real enemy ,legacy management, is laughing all the way to the bank while the ALPA fights among themselves. Not that we, at the APA have done much better, but this emboldens management to take advantage of pilot vs. pilot within the ALPA. WE, That is ALL pilots need to have a common resolve if we are ever going to restore this profession to the level it once was. By the way, Unions only exist because of piss-poor management and the lack of leadership skills of todays MBA's. The only class they aced seems to be union-busting.
No one is capable of pleasing everyone all the time, but at least Moak has the fortitude to do something rather than nothing. It's not only time for NWA and DAL pilots to get their S$&% together, but for all of us to unite and send these self-serving arrogant and incompetent legacy management teams packing!
By kel
Apr 20, 2008 9:01 PM | Link to this
Sparton, anachronistic is a big word for someone who has put no thought what so ever into your post, in fact it is you out of touch unions are not dying out and most union members i know, know what there self worth is reason they are in a union in the first place, after all its there skills for sale why sell yourself short.
By Tony
Apr 20, 2008 8:05 PM | Link to this
Stormywx, thanks for your very polite reply. Please do not target individual comments on this web. Not polite or a show of education on your part. By the way, I'm a 747-400 Captain with NWA, 3 years from retirement (10 years on the airplane)By the time Moak gets done with these two ALPA groups there's not going to be Delta, Northwest or New Global Delta. I'll be sailing the Caribean. Good luck to you Stormy-what ever!
By Two sides to every story
Apr 20, 2008 3:29 PM | Link to this
Dear Delta bretheren:
How can you possibly like the agreement(senority integration) when NOBODY except the negotiators know what was presented.This has absolutly nothing to do with an economic agreement. We were both being brought up to the same hourly wages and benefits. Yes NWA was being brought up more but DAL is making more. We are all going to make the same, so stop the lies that we did not like the contract..our negotiators did not like the seniority list integration.
And guess what, you all are not privy to what it was that your guys walked away from either. Tell the truth Lee.
By Pat767B
Apr 20, 2008 2:21 PM | Link to this
I'm afraid that most of the posts are correct. This one-sided agreement will be extremely divisive to the combined pilot group. For a short-term gain for the Delta pilots, Lee Moak has alienated the NW pilots in the process. Let the whipsawing begin!
No doubt he'll be up on the fourth floor within a few years, leaving us to work with 5200 angry and bitter coworkers.
Nice.
By Delta Passenger
Apr 20, 2008 2:03 PM | Link to this
The bitter retired pilot is funny. He wanted the active Delta pilots to take even MORE sacrifice to save him and HIS pension.
The bitter Northwest pilots are funny. The Northwest union guys were so busy trying to screw Delta pilots over on seniority, they missed out on hundreds of millions of dollars.
And that Mike Stark guy sounds like a toad. He gets it both ways...Moak stands up for Starks best interest...gets attacked by Northwest pilots...Stark benefits from Moak's controversial decision...and Stark throws spears at Moak while pocketing the money Moak negotiated for him! What a troll! (By the way I knew someone who used Mike Stark's investment service company...the pompous buffoon lost him a ton of dough!)
From what I can see, Moak tried to treat all pilots (Delta & Northwest) like ONE group...fairly.
The Northwest union guys wanted to SCREW the Delta pilots. They spent so much time on that, they left hundreds of millions on the table for their own members.
If the Northwest pilots have any sense, they should get on board and get Moak representing them...sooner rather than later! (What is the Northwest ALPA track record at getting their pilots any money?)
By stormywx
Apr 20, 2008 7:27 AM | Link to this
dlflyer, Im Laughing at your post...post something you actually know about ok....dont embarrass yourself
By Tony
Apr 20, 2008 12:16 AM | Link to this
If the Letter of Agreement between DAL Pilots and DAL management is approved, we could see 5100 NWA pilots out of ALPA before the meger takes place. Not so smart move for CA. Moak. Worse for CA. Pratter (ALPA National) if he signs. This could turn into a USAIR-America West scenario.
According to the New Delta and CA. Moak, 5100 NWA pilots will be working for lesser pay until a common contract is negotiated for the combined group (2012). Has anybody ever thought that the New Delta could transfer the flying from Moak's higher paid pilots to the lesser paid NWA pilots. Moak's plan is a disaster. Good luck to us all!!!
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