WASHINGTON , June 3 /PRNewswire-USNewswire/ -- The International Association of Machinists and Aerospace Workers (IAM) today announced its has contacted Northwest Airlines Corporation and Delta Air Lines Incorporated shareholders to voice concerns over the proposed Northwest-Delta merger.
"I urge shareholders of Delta and Northwest to protect their interests and speak out to oppose this proposed merger," said IAM International President R. Thomas Buffenbarger. "In addition to my concern with the treatment of employees in the proposed merger, I also believe that this transaction destroys shareholder value by combining two vastly different entities with few expected synergies."
The Machinists Union sent letters outlining their concerns to the largest 60 percent of each company's shareholders. The letters are available at www.goiam.org/mergers.
Among the financial hurdles that the combined airline would face is a crushing long-term debt burden of
"To date, Delta and Northwest have failed to provide shareholders with a convincing argument that consolidation would increase shareholder value," said Buffenbarger. "The checkered history of airline mergers since deregulation has shown us that they inevitably result in disgruntled customers, turmoil within the workforce, and diminished returns."
The IAM is the largest airline and rail union in North America, representing more than 170,000 Flight Attendants, Customer Service Agents, Reservation Agents, Ramp Service Personnel, Mechanics, Railroad Machinists and related transportation industry workers, including 12,500 Northwest Airlines employees. Additional information about the IAM is available at www.goiam.org/transportation.
SOURCE International Association of Machinists and Aerospace Workers
The Machinists Union sent letters outlining their concerns to the largest 60 percent of each company's shareholders.
General Vice President Robert Roach ,Jr. testified before Senate Commerce, Science and Transportation Committee on the potential impact of airline mergers and industry consolidation.
"Mergers will not help troubled airlines; sane federal regulation of the industry will," Union says.
The tentative agreement would bring US Airways and former America West Mechanic & Related employees under the same contract and wage scale for the first time in more than two years.