Delta/Airways Execs take pay cut

[Weasil]

Watching CNN this morning they announced the 10% cut but delta execs and a 20%pay cut by US Airways execs. They they pronounced that this should be a lesson to pilots. Now it's my understanding that the Delta Pilots offered concessions a year ago but it was hinged on management not taking any raises and the Delta management walked away. And airways pilots have already given paycuts. They made it sound on CNN like we are big bad Unions who won't negotiate. WOW!

 

[doh]

10%? Wtfo, they are asking the pilot's for what,30%? Come on Grinreaper, you can do better than that!

 

[OPECJet]

When they FURLOUGH some execs, then I'll be impressed.....

You can start with the Vice President of Sanitary Napkin Procuring Operations and work your way up from there.

 

[737 Pylt]

Here's the full article

Associated Press
Delta Announces Details of Wage Cuts
Tuesday September 28, 9:09 pm ET
By Harry R. Weber, AP Business Writer Delta Announces Details of Benefits and Wage Cuts; Pilots Ratify Retirement Agreement

ATLANTA (AP) -- Delta Air Lines Inc.'s chief executive said Tuesday he is declining his six-figure salary for the rest of the year as he detailed a 10 percent pay cut that will affect senior officials, administrative staff and ticket and gate agents.

CEO Gerald Grinstein also said in a memo to employees that the Atlanta-based company will increase the shared cost of health care coverage and make changes to retirement benefits as part of its turnaround plan.

"In distressed times like these, when everyone must sacrifice, it is especially important that leadership participates, and they have. It is also necessary for me to lead the way," Grinstein wrote in the memo, adding that he has declined his salary.

Delta would not immediately say how much salary Grinstein is relinquishing. His predecessor, Leo Mullin, earned about $500,000 a year.

Also Tuesday, Delta's pilots said they have ratified an agreement allowing Delta to employ newly retired pilots to prevent staffing shortages. Delta has warned it would have to file for bankruptcy if it didn't slow the pace of early pilot retirements by the end of September.

The agreement between Delta and its pilots also includes written assurance from management that the company will not file notice of intent to terminate the pilots' pension plan before Feb. 1, even if the company files for bankruptcy protection by then.

Of voting pilots, 90 percent supported the tentative agreement, with 76 percent of eligible pilots casting a ballot.

Delta shares gained 40 cents, or 13.6 percent, to close at $3.34 in trading Tuesday on the New York Stock Exchange.

The cost cuts, meanwhile, are part of efforts by the nation's third-largest airline to avoid bankruptcy. The cuts do not affect pilots, who are unionized and work under a contract.

"We have a small window of opportunity available to us to avoid Chapter 11 that some other carriers do not have," Grinstein said in his memo to employees. "It is in everyone's best interest that we protect Delta's future by taking these steps together now."

Among the cuts he detailed in the memo:

-- an across-the-board pay reduction of 10 percent for executives, supervisory and administrative, and what were called frontline employees (with smaller reductions for some entry-level positions).

-- increases to the shared cost of health care coverage.

-- a five-week, instead of a six-week, maximum annual vacation accrual.

-- the elimination of the Delta subsidy for retiree and survivor health care coverage at age 65 and after, effective for those retiring after Jan. 1, 2006.

-- company officers will experience a total targeted compensation reduction of 25 percent to 45 percent from 2003 to 2004.

Also, Grinstein said Delta will offer two voluntary exit programs -- one an early retirement medical option and the other a travel-based exit package -- to minimize the number of involuntary reductions that must take place.

"This is painful and difficult, particularly because you already have been affected in various ways and you are working harder than ever before," Grinstein told employees. "I did not want nor intend to ask everyone for more sacrifice. But regrettably, the industry environment and our company's worsening financial situation have deepened the gap between where we are and where we must be to survive and succeed over the long term."

Delta has already reduced its work force by 16,000 employees in the last three years. Earlier this month, it said it would cut up to another 7,000 jobs over 18 months and shed its Dallas hub. The airline has lost more than $5 billion since 2001 and has racked up $20 billion in debt as it has faced higher fuel prices and increased competition from low-fare carriers.

Delta also is seeking $1 billion in concessions from its pilots.

Pilots union spokesman Chris Renkel said in a memo to pilots Tuesday that the overall talks with management are expected to resume by the end of the week. http://www.delta.com

 

[General Lee]

It's a good start. Now, if they don't take options or have bonuses when we take huge cuts, then I will be impressed. But wait, then they won't be able to attract "good people"---like the ones that all bailed AFTER they received their RETENTION bonuses.....(Who sold those fuel hedges..????I think the PILOTS did)



Bye Bye--General Lee

 

[~~~^~~~]

Who sold those fuel hedges..????I think the PILOTS did)

Bye Bye--General Lee

The #1 Gen faulted again. The QRH reads as follows:

Delta no longer had the credit to continue their fuel hedging program. You can determine who you blame for Delta's credit standing, Leo, Comair, Comair Strike, 9/11, or Contract 2000.

 

[General Lee]

I was told we sold the hedges to make a yearly pension payment (not the pilot's pension, the non-union people) and two weeks later Congress gave pension relief. We sold them and made an $83 million profit, and then lost $600 million and counting.....Also, I believe we offered by then some sort of pay cut, maybe 10% and change(about $250 million in savings), and that probably could have allowed us to keep our "great" credit---so blaming it on Contract 2000 at that time doesn't stick.


Bye Bye--General Lee

 

[737 Pylt]

I was told we sold the hedges to make a yearly pension payment (not the pilot's pension, the non-union people) and two weeks later Congress gave pension relief. We sold them and made an $83 million profit, and then lost $600 million and counting.....Also, I believe we offered by then some sort of pay cut, maybe 10% and change(about $250 million in savings), and that probably could have allowed us to keep our "great" credit---so blaming it on Contract 2000 at that time doesn't stick.


Bye Bye--General Lee

Yeah:
But it makes for a nice rjdc spin doesn't it General??
737

 

[FDJ2]

Yeah:
But it makes for a nice rjdc spin doesn't it General??
737

Spin is all the RJDC has, so why should we expect anything else from them?