DAL Mgmt Asks Pilots for $ 1 Billion

[Space Wrangler]

Just off the AP newswire: it's being reported that DAL Mgmt is asking the pilots for $1 Billion. I'll try to find a link and post it.

Here we go:

Delta asks pilots for $1 billion in cost cuts

The Associated Press
Published on: 07/30/04


Delta Air Lines Inc. chief executive Gerald Grinstein told pilots Friday the financially troubled carrier needs $1 billion in concessions from them, insisting their proposal for up to $705 million in cuts is inadequate.

Grinstein said in an open letter to pilots that the money the airline is asking for is the minimum amount it needs to survive.

"While I respect the negotiating process and believe details are best resolved privately at the table, the sheer life-altering magnitude of the need — approximately $1 billion in annual savings — deserves acknowledgment, hard truths and assurances from me personally," Grinstein wrote.

He added, "So, unlike traditional talks where a company's opening proposal represents a ceiling from which it can afford to lower its target, this level of savings must be achieved."

At the same time, Grinstein said he was open to input and comments from the pilots.



In other words, "let's air this crap out in the court of public opinion so we can make airline pilots look like shi t."

 

[General Lee]

I doubt Dalpa would go for that, especially since Grinstein hasn't laid out any plans for other cuts--internally or with creditors. This will get interesting! How much are "personal assurances" worth these days? He also wants a 6 year contract, and atleast a 35% pay cut. We shall see!


Bye Bye--General Lee

 

[tittyjet]

How did I know you'd be the first reply...doesn't your grass need to be mowed, dog walked, kids played with -- something?

 

[General Lee]

You funny, funny man!

 

[lowecur]

Delta Air Lines Inc. chief executive Gerald Grinstein told pilots Friday the financially troubled carrier needs $1 billion in concessions from them, insisting their proposal for up to $705 million in cuts is inadequate.

Grinstein said in an open letter to pilots that the money the airline is asking for is the minimum amount it needs to survive.

"While I respect the negotiating process and believe details are best resolved privately at the table, the sheer life-altering magnitude of the need — approximately $1 billion in annual savings — deserves acknowledgment, hard truths and assurances from me personally," Grinstein wrote.

He added, "So, unlike traditional talks where a company's opening proposal represents a ceiling from which it can afford to lower its target, this level of savings must be achieved."

What a shock!!!!!!!

 

[tittyjet]

Hey lowecur, what's that screen name mean -- lowoccurrence of getting puss y?

 

[jetblue320]

Last Wednesday?

Hey General Old Buddy,

What was the outcome of the rumored meetings/announcements last Wednesday? I read somewhere that DAL Mgt. was to present the restructuring plans to the masses. Any info you have would be appreciated, seriously.

Is this latest news part of that as well? Wow.

C yaaaa

 

[miles otoole]

Grinstein said in an open letter to pilots that the money the airline is asking for is the minimum amount it needs to survive.

At the same time, Grinstein said he was open to input and comments from the pilots.

Well, I guess one option is that the pilots could give more than the minimum.

 

[DL_Infidel]

DALPA Code-A-Phone 07.30.2004

This is Chris Renkel, MEC Communications Committee Chairman, on Friday, July 30, with one item.

Today Delta management presented a counterproposal to ALPA’s July 20, 2004 proposal. Management valued their proposal at $1.02 billion annually, which included a 35% pay reduction off May 2004 rates for a six-year contract. The proposal included major economic and non-economic changes to virtually every section of the Pilot Working Agreement. Your negotiating committee is closely examining the full proposal, and more information will soon follow. Unfortunately, the proposal contained no specifics on equity, economic returns, no-cost items or any plan for a comprehensive economic restructuring that would include all other Delta stakeholders.

These items must be addressed in a meaningful manner before the Delta pilots can respond to management’s latest proposal.
==============================================
==============================================

Try again management...incomplete proposal. General, I don't know about you, but there's no way I'd go for that...of course I think GG is betting that this won't fly with the membership. I may go for a 4 year contract and maybe a 28% pay reduction. Give DL 4 years to get it together, then a snapback to our current rates. But that's just me.

DL_Infidel
Thinks GG has reached the senility stage of life.

 

[General Lee]

Jetblue320,


I believe there was a meeting between Grinstein and 25 employees (from different groups including one Dalpa representative) and they talked about "change." There wasn't really any negotitations going on, though.

I personally thought the last offer of $705 million was a little low, but maybe this is more pressure to up it to 30% instead of the 23% we just offered. I know he says this is the "minimum"---but who knows? These higher fuel prices aren't helping though---but that all could go down depending on what happens with the Russians and their Yukos oil problems. What a mess!

I know Dalpa is looking this over, and I bet more early retirements will be one result. Why would someone want to work for 35% less, when they could get 40% less (or 60% of what they make now) and live on the beach and maybe live longer than age 62! I think there will be another 300-400 early outs easily in the next few months....



DL Infidel,

I think you are pretty close. Some guys would give more, and some would give less. A plan is really needed here, and cuts from all areas--not just one big one. I think this is another show of brinksmanship---a good one though!


Bye Bye--General Lee

 

[Ace757]

Well, I guess one option is that the pilots could give more than the minimum.

Or they could say FU, to GG and take there chances in Chapter 11. Thats where its going anyway. Why take any cuts now. Just hold out for the next section 6 DL guys. You don't need to be taken to the cleaners by management. If you take cuts now your only going to have to do it again in CH-11. I wonder howmany section 6's it would take to recoup 35% pay + work rules. hmmm. This whole thing is crazy. If you asked anyother professional group if they would reduce their pay and work rules by 50% they would laugh at you. You gotta be f'kin kidden me. This is so rediculous(sp) I have an idea, how about management lead by example and cut their pay and work rules by the same amount. What? they won't do that. I wonder why.

 

[Vortilon]

I think before anybody gets their underpants in a wad, lets see what the details are and what the ALPA response is. GG's damage control letter stated that they are working on equity, profit sharing, and productivity based incentives....I would have to imagine those would be part of any final deal as it would be the only chance to get a raise and would, in a sense, be what we get in return...to share in the future (hopefully) success of DAL. He also said, although thinly veiled, further changes to non-contract employees will have to be made. You can use your imagination on what that means but I suspect pay cuts for other workers.

Keep in mind if this sucker goes 6 years before going into another section 6 negotiation, we're talking 2012 realistically before we have a new contract. (figure the 18-24 months it always takes for section 6)

Sadly enough, 35% off would still result in a huge pay raise for me....

I do have to respect him for writing direcly to the pilots though....I hope he sticks to what he says in the letter.

Ugh.

 

[General Lee]

I think this was his way of ensuring his 30% cuts---remember he didn't really say what was included in the $1 billion. I think we all were sort of surprised with the 23% pay cut offer (I thought it was a bit low---I don't like that, either). He will have to make some pretty big assurances if he wants this to stick--and I bet it will. I forsee around 30% in wage cuts, maybe some per diem cuts, and the aforementioned cuts already offered--including healthcare premium raises etc... He also stated he needed some pension discussions--but not saying that he would get rid of it. I don't know what that means exactly---and I also want Dalpa to look at this and figure out what it means. I have faith that something will be negotiated in the near future. (Maybe by late AUG)


Bye Bye--General Lee

 

[MedFlyer]

I think this was his way of ensuring his 30% cuts---remember he didn't really say what was included in the $1 billion. I think we all were sort of surprised with the 23% pay cut offer (I thought it was a bit low---I don't like that, either). He will have to make some pretty big assurances if he wants this to stick--and I bet it will. I forsee around 30% in wage cuts, maybe some per diem cuts, and the aforementioned cuts already offered--including healthcare premium raises etc... He also stated he needed some pension discussions--but not saying that he would get rid of it. I don't know what that means exactly---and I also want Dalpa to look at this and figure out what it means. I have faith that something will be negotiated in the near future. (Maybe by late AUG)


Bye Bye--General Lee

Scary...but I actually agree with the General. Without knowing all the details, it's hard to know where all the $1 Billion is coming from.

Cuts will come from other employee groups, but not until GG has the pilots lined up.

Sorry DL Infidel, but I wouldn't hold my breath that you'll snap back to your original rates in four years. You'll be pretty lucky if you ever return to your original rates nevermind four years. It sucks, but that is the state of this industry.

 

[xanderman]

Hey lowecur, what's that screen name mean -- lowoccurrence of getting puss y?

That is quite possibly THE funniest thing I've ever read on this board!!!!!!!!
Andy

 

[sleepy]

I doubt Dalpa would go for that, especially since Grinstein hasn't laid out any plans for other cuts--internally or with creditors. This will get interesting! How much are "personal assurances" worth these days? He also wants a 6 year contract, and atleast a 35% pay cut. We shall see!


Bye Bye--General Lee

So DALPA won't go for it? Well in that case won't GG just go to plan B (or plan CH 11 I should say)?

I am sorry General, but I just don't see where you guys have much room to wiggle. So you may have to give up one of your vacation homes or your airplane, isn't that better than giving up both vacation homes and the boat too?

 

[lowecur]

Hey lowecur, what's that screen name mean -- lowoccurrence of getting puss y? As a matter of fact you're right. At my age Cialis means "see Alice" in my minds eye.

.....

 

[captain caveman]

That is the current state of the industry. It will come back eventually. And then it will all be gone with the do-away of true and required pilots.

 

[General Lee]

Sleepy,


You chose to post my first response rather than my more current one---the second one. I then stated I thought Grinstein would get his 30% (not the original 23%). I don't think Delta will go into Chap 11---and I think Dalpa will dance---but it will be interesting to see what we will get in return for the cash.....

How is the Falcon 50 job going? Any interesting trips?

Bye Bye--General Lee

 

[Indapool]

BOHICA