Ace757
Well-known member
- Joined
- Aug 2, 2003
- Posts
- 267
Employee Impact
7. Will I still receive my paycheck on time?
We anticipate there will be no changes when you receive your paycheck.
8. Will there be job and pay reductions, and changes to employee benefits?
Yes. Restructuring will not be painless. Our financial condition has reached a point where further job reductions and changes to pay and benefits – coupled with substantial network and operational improvements and contributions from many other Delta stakeholders – are necessary to help save our company. As Delta becomes a leaner, more productive company that can provide stable and rewarding opportunities for its people in the long-term, much more change and sacrifice will be required in the near-term.
There is no question that there will be additional hardship before we begin to see improvement, and that is why we are determined to move forward together equitably – meaning we all will participate, and so will other Delta stakeholders. Any changes in pay and benefits will be in the context of a comprehensive business plan.
9. Will there be any changes in the senior management team or Board of Directors as a result of the Chapter 11 filing?
There have been no changes in Delta's management team or Board of Directors as a result of the Chapter 11 filing. Earlier this year, we realigned and strengthened Delta's leadership organization for maximum efficiency and effectiveness as we move forward with our transformation plan.
10. If employees will be asked to give more, will there be an upside for employees?
Delta will provide employees with an opportunity to share in any success employees help make possible. We have plans to provide you with a much more meaningful way to share in your company's success and any profits it generates.
11. What will happen to employee pensions as a result of the Chapter 11 filing?
Delta has been doing everything it can, within the bounds of what it can afford to continue to provide its active and retired Delta people with already-earned qualified retirement benefits. However, given the seriousness of our financial situation and the need to preserve cash, we do not plan to make upcoming qualified defined benefit plan funding contributions. Missing contributions does not mean that our qualified plans stop paying monthly retirement benefits or that we have initiated the process to terminate those plans.
Our financial condition has reached a point where further pay and benefits changes will be required to help save our company. If there are changes to the pension plans, such changes could affect how our future pension benefits are accrued or determined. Any such changes would be announced as soon as possible through Delta's normal communications channels.
Delta remains supportive of airline pension reform efforts and continues to work with Congress, ALPA, and other airlines toward pension reform legislation that might make the pension plans affordable. But there can be no guarantees that we will be able to maintain our pension plans – even with pension reform – because of the growing financial pressures that the company faces.
12. Now that Delta has filed for Chapter 11, what will happen to the Delta common stock and stock options I own?
It is not uncommon for the stock, and stock options, of a company that files for Chapter 11 to have little or no value, and ultimately to be cancelled, as a result of the reorganization proceedings. It is also not uncommon for a company's stock to be de-listed from trading on a major stock exchange and, instead, to then trade in the over-the-counter market, where it may be more difficult to buy and sell shares of the stock and to obtain an accurate stock price. On the other hand, the stocks of some companies in Chapter 11 do continue to trade and do, in rare instances, retain some value during and after bankruptcy proceedings. You may wish to consult a professional investment advisor with questions regarding your personal investment decisions.
13. What happens to the accounts of employees who are participants in the 401(k) Plan?
Irrespective of a Chapter 11 filing, all investments contained in an individual's 401(k) account are subject to some level of market risk. The assets in our 401(k) Plan are held in a trust, which is separate from the company's funds. These assets are protected under federal law against the claims of Delta's creditors. Delta cannot use any of these assets to meet its obligations or to pay its debts. It is likely, however, that the filling will adversely impact the value of any remaining Delta preferred and common stock in your savings plan account.
14. Are the funds and accounts in the Delta Employees Credit Union protected from the Chapter 11 filing?
Yes. The Credit Union is an independent entity that is regulated by the Georgia Department of Banking & Finance and the National Credit Union Administration. Credit Union accounts are federally insured by the National Credit Union Administration, a federal government agency, for up to $100,000 per account. Neither the company nor its creditors have any rights or ability to access or control Credit Union funds or accounts.
15. Bankruptcy courts have authorized other companies that filed for Chapter 11 to make provisions to avoid the departure of key employees. Does Delta have any plans in this regard?
After a filing, any program to retain key employees generally require Bankruptcy Court approval because the court wants to make sure the programs are reasonable and necessary to help complete a company's restructuring. We will monitor our ongoing business conditions, and should we conclude that any such programs are needed to successfully carry out our own restructuring, we may decide to seek court authorization to provide them. Any plan that might be proposed would be in keeping with the court's standards. In recognition and appreciation of the additional sacrifices our people will be asked to make as Delta works through its financial challenges, Jerry Grinstein and Jim Whitehurst will not participate if the company decides to pursue such a program.
16. Are there any plans now that Delta is in Chapter 11 to recover payments to former senior executives? What about any benefits they are still receiving?
Payments to former senior executives were authorized to be made based on the circumstances at the time. Accordingly, we have no plans to seek recovery of such payments. However, we are now barred by law from continuing to pay pre-petition obligations unless authorized by the Bankruptcy Court. We are not requesting any authority from the Bankruptcy Court to continue benefits provided to former executives under individual agreements. All such benefits provided to former executives pursuant to individual agreements will be terminated.
General
17. What effect would/does a Northwest filing have on Delta?
The action does not have an immediate impact on Delta, but it does underscore the impact that high costs – including fuel – and the competitive business environment are having on our entire industry. Delta will continue to stay focused on executing our transformation plan, taking care of our customers, and providing safe and reliable service.
7. Will I still receive my paycheck on time?
We anticipate there will be no changes when you receive your paycheck.
8. Will there be job and pay reductions, and changes to employee benefits?
Yes. Restructuring will not be painless. Our financial condition has reached a point where further job reductions and changes to pay and benefits – coupled with substantial network and operational improvements and contributions from many other Delta stakeholders – are necessary to help save our company. As Delta becomes a leaner, more productive company that can provide stable and rewarding opportunities for its people in the long-term, much more change and sacrifice will be required in the near-term.
There is no question that there will be additional hardship before we begin to see improvement, and that is why we are determined to move forward together equitably – meaning we all will participate, and so will other Delta stakeholders. Any changes in pay and benefits will be in the context of a comprehensive business plan.
9. Will there be any changes in the senior management team or Board of Directors as a result of the Chapter 11 filing?
There have been no changes in Delta's management team or Board of Directors as a result of the Chapter 11 filing. Earlier this year, we realigned and strengthened Delta's leadership organization for maximum efficiency and effectiveness as we move forward with our transformation plan.
10. If employees will be asked to give more, will there be an upside for employees?
Delta will provide employees with an opportunity to share in any success employees help make possible. We have plans to provide you with a much more meaningful way to share in your company's success and any profits it generates.
11. What will happen to employee pensions as a result of the Chapter 11 filing?
Delta has been doing everything it can, within the bounds of what it can afford to continue to provide its active and retired Delta people with already-earned qualified retirement benefits. However, given the seriousness of our financial situation and the need to preserve cash, we do not plan to make upcoming qualified defined benefit plan funding contributions. Missing contributions does not mean that our qualified plans stop paying monthly retirement benefits or that we have initiated the process to terminate those plans.
Our financial condition has reached a point where further pay and benefits changes will be required to help save our company. If there are changes to the pension plans, such changes could affect how our future pension benefits are accrued or determined. Any such changes would be announced as soon as possible through Delta's normal communications channels.
Delta remains supportive of airline pension reform efforts and continues to work with Congress, ALPA, and other airlines toward pension reform legislation that might make the pension plans affordable. But there can be no guarantees that we will be able to maintain our pension plans – even with pension reform – because of the growing financial pressures that the company faces.
12. Now that Delta has filed for Chapter 11, what will happen to the Delta common stock and stock options I own?
It is not uncommon for the stock, and stock options, of a company that files for Chapter 11 to have little or no value, and ultimately to be cancelled, as a result of the reorganization proceedings. It is also not uncommon for a company's stock to be de-listed from trading on a major stock exchange and, instead, to then trade in the over-the-counter market, where it may be more difficult to buy and sell shares of the stock and to obtain an accurate stock price. On the other hand, the stocks of some companies in Chapter 11 do continue to trade and do, in rare instances, retain some value during and after bankruptcy proceedings. You may wish to consult a professional investment advisor with questions regarding your personal investment decisions.
13. What happens to the accounts of employees who are participants in the 401(k) Plan?
Irrespective of a Chapter 11 filing, all investments contained in an individual's 401(k) account are subject to some level of market risk. The assets in our 401(k) Plan are held in a trust, which is separate from the company's funds. These assets are protected under federal law against the claims of Delta's creditors. Delta cannot use any of these assets to meet its obligations or to pay its debts. It is likely, however, that the filling will adversely impact the value of any remaining Delta preferred and common stock in your savings plan account.
14. Are the funds and accounts in the Delta Employees Credit Union protected from the Chapter 11 filing?
Yes. The Credit Union is an independent entity that is regulated by the Georgia Department of Banking & Finance and the National Credit Union Administration. Credit Union accounts are federally insured by the National Credit Union Administration, a federal government agency, for up to $100,000 per account. Neither the company nor its creditors have any rights or ability to access or control Credit Union funds or accounts.
15. Bankruptcy courts have authorized other companies that filed for Chapter 11 to make provisions to avoid the departure of key employees. Does Delta have any plans in this regard?
After a filing, any program to retain key employees generally require Bankruptcy Court approval because the court wants to make sure the programs are reasonable and necessary to help complete a company's restructuring. We will monitor our ongoing business conditions, and should we conclude that any such programs are needed to successfully carry out our own restructuring, we may decide to seek court authorization to provide them. Any plan that might be proposed would be in keeping with the court's standards. In recognition and appreciation of the additional sacrifices our people will be asked to make as Delta works through its financial challenges, Jerry Grinstein and Jim Whitehurst will not participate if the company decides to pursue such a program.
16. Are there any plans now that Delta is in Chapter 11 to recover payments to former senior executives? What about any benefits they are still receiving?
Payments to former senior executives were authorized to be made based on the circumstances at the time. Accordingly, we have no plans to seek recovery of such payments. However, we are now barred by law from continuing to pay pre-petition obligations unless authorized by the Bankruptcy Court. We are not requesting any authority from the Bankruptcy Court to continue benefits provided to former executives under individual agreements. All such benefits provided to former executives pursuant to individual agreements will be terminated.
General
17. What effect would/does a Northwest filing have on Delta?
The action does not have an immediate impact on Delta, but it does underscore the impact that high costs – including fuel – and the competitive business environment are having on our entire industry. Delta will continue to stay focused on executing our transformation plan, taking care of our customers, and providing safe and reliable service.
