=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SF Gate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2004/01/29/f= inancial1346EST0175.DTL ---------------------------------------------------------------------- Thursday, January 29, 2004 (AP) Delta pilots warn that hope of wage concession deal fading fast HARRY R. WEBER, AP Business Writer (01-29) 11:17 PST ATLANTA (AP) -- Delta Air Line's pilots union warned its members Thursday that hope is fading fast on reaching an acceptable deal over wage concessions the airline says it needs to survive. In a memo to pilots, the head of the union's executive committee, Capt. John Malone, also advised members to consider setting up a contingency fund that could be used in the event of a possible job action by pilots or a bankruptcy filing by the company. "Until today's proposal from management, I was hopeful that we could rea= ch a settlement," Malone wrote. "Although optimism is fading, your union remains open to reaching a mid-contract agreement." Delta's union received an offer earlier Thursday from the Atlanta-based airline that was similar to a previous one. The union says the company is seeking a 30 percent pay cut from pilots. The union has offered a cut of 9 percent and to forego a 4.5 percent rai= se due in May. Delta spokeswoman Catherine Stengel would not discuss Thursday's negotiations or any possible future negotiations. "It's inappropriate for us to comment on details of the meeting today," Stengel said. The nation's third-largest airline has reiterated that it needs the hefty pay cuts from its pilots, who are among the highest paid in the industry, to turn around its heavy losses over the last three years. Delta, which two weeks ago reported a $332 million loss, has laid off 16,000 employees since the 2001 terrorist attacks. Malone said in his memo that the union understands the company's dire situation and is willing to make concessions, but insisted that pilot costs did not create the situation. He said arbitration or a federal mediator may be needed to resolve the impasse, which he called "disappointing." "While no one can predict what path the company will choose, I strongly encourage you to start a contingency fund and begin financially preparing for the future," Malone told pilots. Delta and its pilots have been in on-again, off-again talks for the last several months. Talks had resumed Thursday. Shares of Delta were down 7 cents at $11.47 Thursday afternoon on the New York Stock Exchange. On the Net: www.delta.com www.dalpa.com =20 ---------------------------------------------------------------------- Copyright 2004 AP