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Delta MEC Opinion/Editorial in the AJC

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FDJ2

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Atlanta Journal & Constitution

Opinion/Editorial – Delta Pilots’ Viewpoint
July 7, 2004

Over one year ago, the Delta pilots offered to give up pay, benefits and work rules to help our company survive through the massive losses of the airline after terrorist attacks and years of the worst economy in recent memory. Our efforts to help, unfortunately, bore no fruit. Even as managers lined their pockets with bonuses and left Delta for greener pastures, and even as our company continued to hemorrhage cash, management showed little interest in engaging in negotiations.

Now, many months and hundreds of millions in losses later, pilots’ paychecks alone continue to be singled out as the crux of Delta’s crisis. Management’s statements regarding the increasing urgency for pilot givebacks are contrasted with the almost glacial pace of a nine-month “strategic review,” which, to date, has not yielded even a hint of what the airline will look like once restructuring has occurred. As the airline continues to bleed and the possibility of bankruptcy looms larger, the only obvious element of management’s strategy has been to focus on pilot costs. We’ve said this before: simply slashing workers’ pay and benefits will not solve this company’s problems. A broader solution is necessary.

It is with this broader view in mind that the Delta pilots’ union is attempting to reengage in negotiations with Delta management to agree on a restructured pilot contract. However, the pilots cannot turn Delta around on our own. Management must be successful in gaining cost reductions from all of Delta’s stakeholders. Only then will Delta be able to return to profitability. We are participating on an ad hoc committee of Delta’s creditors with the hope of making this possible.

The Delta pilots stand ready to participate in Delta’s recovery contingent upon a comprehensive restructuring plan in which all of the company’s costs are addressed. Management’s task is formidable, and our collective futures as employees are in their hands. We will hold them to a high standard. For now, we’ll keep flying the record numbers of Delta customers safely around the world everyday, delivering the service that made Delta great.

Capt. John J. Malone
Chairman, Delta Master Executive Council
Air Line Pilots Association, Int’l.
 
(1) The senior guys got their three high years, guess they want to negotiate now since bankruptcy might result in a significant adjustment to the nest egg.

(2) (D)ALPA wanted to negotiate cuts involving employees they do not represent and who were already at industry standard wages ( or below ). The former Delta management had a problem with that. Grinstein seems to be more ready to recognize that a "dollar is a dollar." (D)ALPA "representation" of employees they do not represent is a landmine. It is amazing to watch ALPA, predictably, walk right into it.

(3) Pay rates on 100 seat aircraft are in the toilet thanks to mainline under-bidding the Regional pilots. Now there is better economic justification to sell the junior Delta pilots on Mesa style compensation to fly the "permitted aircraft types" to 130 seaters.

ALPA's failed scope policy is going to cost pilots dearly, as the largest pilot group, amongst the Delta pilots, leads the race to underbid the others. Delta management will have to work around ALPA's scope policy, as they have since 1996, and will employ less than optimal airplanes to fit in ALPA's arbitrary world view of preferred aircraft and preferred pilots.

John Malone is a smart guy and an excellent politician. However, I've read nothing that indicates ALPA has figured out that alter ego flying is a problem.

~~~^~~~
 
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What a load of crap. You were told last year that 30% was needed, but the fact that you had $2.8B made it seem like you could diddle for the next 2 years. Well two things have happened.....oil prices, and a faster attrition of pricing power.

"We’ve said this before: simply slashing workers’ pay and benefits will not solve this company’s problems. A broader solution is necessary. Management must be successful in gaining cost reductions from all of Delta’s stakeholders. Only then will Delta be able to return to profitability." This will not cut it alone. DL needs to adjust their business model to compete with the LCC's (see below).

The last president of APA at American Airlines recently wrote to union members before leaving office that he is worried about AMR's future, even with all the cost reductions from payroll and stakeholders......he doesn't think they can make it.

In other words a total revamp is probably necessary that would include the scrapping of unprofitable hubs, more furloughs, and the addition of a 100 seater close to Jetblue's rates that would replace the MD's. Add on top of that the cancellation of contracts with Skywest, and a complete make over of the pension plan.

Think you can do all that without 11? Good Luck.
 
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Lowecur,


What needs to be done is getting cost cuts from every group---not just the pilots. We're all in this together, and singling out one group--even the highest paid thanks to paying for union representaion---is not right. There also needs to be a plan.

As far as more furloughs----unlikely since we have retired more senior Capts than ever before--and more to follow with huge pay cuts. We probably will be short---we have another huge bid coming out shortly to cover vaccancies. Also, Malone has said that he will not sacrifice jobs--and with the new Jetblue rates--the current furloughs will come back to rates that compare to Comair's current rates--yet on larger aircraft. Some of the current furloughs may choose not to even come back----preferring to stay where they are now with higher pay.

We did offer some pay cuts (14%) a year back--and that would have been a good start, we even had left the door open to more talks--but nothing was done---instead the "9 month review" has taken place with very little progress so far that we know about.

Bye Bye--General Lee
 
What a load of crap. You were told last year that 30% was needed, but the fact that you had $2.8B made it seem like you could diddle for the next 2 years. Well two things have happened.....oil prices, and a faster attrition of pricing power.


No...the load of crap is what management left DL and it's employees with....$20+ billion of debt. Management diddled and continued to spend while not accepting relief from DALPA more than a year ago. GG has been with DL for 17 years and he needs a 9 month "top to bottom" review of the company...right!

This burden will not be shouldered by the DL pilot group alone, and if it comes to Ch. 11, it will ensure that the pain is spread out. It's amazing how many guys think that when mngmt says it needs XX%, that's what they really need...BS.


"We’ve said this before: simply slashing workers’ pay and benefits will not solve this company’s problems. A broader solution is necessary. Management must be successful in gaining cost reductions from all of Delta’s stakeholders. Only then will Delta be able to return to profitability." This will not cut it alone. DL needs to adjust their business model to compete with the LCC's (see below).


It's not up to the pilots to manage this airline or pay for the mistakes of incompetent Harvard MBA grads.


The last president of APA at American Airlines recently wrote to union members before leaving office that he is worried about AMR's future, even with all the cost reductions from payroll and stakeholders......he doesn't think they can make it.


What Capt. Darrah thinks is irrelevant to the posted article. So, with all the cuts he believes the APA just helped prolong the inevitable? I'm glad John Malone is working on our behalf. If BK is unavoidable for DL, then I'd rather hold onto our current contract until then.


In other words a total revamp is probably necessary that would include the scrapping of unprofitable hubs, more furloughs, and the addition of a 100 seater close to Jetblue's rates that would replace the MD's. Add on top of that the cancellation of contracts with Skywest, and a complete make over of the pension plan.

Think you can do all that without 11? Good Luck.


I guess we will see what the plan is sometime in August. Luck has nothing to do with it.


DL_Infidel
 
~~~^~~~ said:
(1) The senior guys got their three high years, guess they want to negotiate now since bankruptcy might result in a significant adjustment to the nest egg.

(2) (D)ALPA wanted to negotiate cuts involving employees they do not represent and who were already at industry standard wages ( or below ). The former Delta management had a problem with that. Grinstein seems to be more ready to recognize that a "dollar is a dollar." (D)ALPA "representation" of employees they do not represent is a landmine. It is amazing to watch ALPA, predictably, walk right into it.

(3) Pay rates on 100 seat aircraft are in the toilet thanks to mainline under-bidding the Regional pilots. Now there is better economic justification to sell the junior Delta pilots on Mesa style compensation to fly the "permitted aircraft types" to 130 seaters.

ALPA's failed scope policy is going to cost pilots dearly, as the largest pilot group, amongst the Delta pilots, leads the race to underbid the others. Delta management will have to work around ALPA's scope policy, as they have since 1996, and will employ less than optimal airplanes to fit in ALPA's arbitrary world view of preferred aircraft and preferred pilots.

John Malone is a smart guy and an excellent politician. However, I've read nothing that indicates ALPA has figured out that alter ego flying is a problem.

~~~^~~~
Another clueless post from the terribly ill informed. Nuff said.
 
xdays said:
Another clueless post from the terribly ill informed. Nuff said.
I don't always agree with fins, but one thing he is most definitely not, is illinformed.
 
That was the equal time response to an editoral in the AJC that basically said that DAL's problems are due to high pilot salaries. This is coming from what is normally a left-wing rag newspaper editoral page. If a union labor force has lost the support of one of our nations most liberal newspapers, who is left to support them? John Kerry?
 
Insurgent

No...the load of crap is what management left DL and it's employees with....$20+ billion of debt. Management diddled and continued to spend while not accepting relief from DALPA more than a year ago. Yeah, I'm sure that $300M would have done wonders. GG has been with DL for 17 years and he needs a 9 month "top to bottom" review of the company...right! Good Point.

This burden will not be shouldered by the DL pilot group alone, and if it comes to Ch. 11, it will ensure that the pain is spread out. It's amazing how many guys think that when mngmt says it needs XX%, that's what they really need...BS. United thought that if their pilots sat on the board, their mgt skills would be better than those MBA's....not.


It's not up to the pilots to manage this airline or pay for the mistakes of incompetent Harvard MBA grads. The board has to hire somebody. It's obvious the pilots can't do it.


What Capt. Darrah thinks is irrelevant to the posted article. So, with all the cuts he believes the APA just helped prolong the inevitable? I'm glad John Malone is working on our behalf. If BK is unavoidable for DL, then I'd rather hold onto our current contract until then. It's very relevant. As a practical matter you are looking at a similar situation that AMR faced in 2003. They headed things off at the pass, and look where they stand.......an airline that will either lose money in each of the next 5 years, or make a marginal profit that will not be enough to sustain the airline long-term.


I guess we will see what the plan is sometime in August. Luck has nothing to do with it. Whatever you see in August, rest assured John Malone will not have the big ones needed to go to you guys and get what is needed. Like you said, "I'd rather hold onto our current contract until then."
 
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bvt1151 said:
I don't always agree with fins, but one thing he is most definitely not, is illinformed.
From the perspective of a 27 year employee, his post was ill-informed, as are most regarding DAL. You are certainly entitled to your opinion, as is everyone on this board, that's what it is all about. But my opinion is his facts, as he states them, are for the most part not correct.
 
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John Malone is absolutely the best person we can have as our MEC Chairman right now. He is not a super-senior guy who might be tempted to look out for his interests, hose everyone junior to him and leave in a year. He's going to be living under the new agreement for another 15+ years just like the rest of us and certainly wants to do whats best for DAL & DAL Pilots.

I'm as junior as can be and I feel I'm in good hands.
 
Too little, too late

"A quote from General"

"We did offer some pay cuts (14%) a year back--and that would have been a good start, we even had left the door open to more talks--but nothing was done---instead the "9 month review" has taken place with very little progress so far that we know about."

But didn't you guys at Delta take @ a 4.5 % pay RAISE in May? Tough to get any sympathy when actions speak louder than letters to the AJC........
 
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Sandmann,

Not sure you can just NOT accept pay midway through a contract? Just like getting a raise the company and union need to agree, vote, sign papers.

Not working for DAL I only have it under that "friend of a friend" lingo. DAL let them just take the raise, they hoped it would give the pilots a black eye in the media and public circuit.

Considering how ugly these things get, and witnessing first hand the crap both sides pull during these periods it would not surprise me.

AA
 
Yeah, it wouldn't surprise me if DAL Management had hoped for the pilots taking the May raise all along, works to their benefit, and puts "egg on the faces" of the pilots during negotiations.
 
Vortilon said:
John Malone is absolutely the best person we can have as our MEC Chairman right now. He is not a super-senior guy who might be tempted to look out for his interests, hose everyone junior to him and leave in a year. He's going to be living under the new agreement for another 15+ years just like the rest of us and certainly wants to do whats best for DAL & DAL Pilots.

I'm as junior as can be and I feel I'm in good hands.
Vman, You are in good hands with JM, without a doubt one of the sharpest MEC chairman that I've seen at DAL.
 
bvt1151 said:
I don't always agree with fins, but one thing he is most definitely not, is illinformed.
Then he should know that the Delta MEC Chairman as well as the negotiating committee are not senior Delta pilots, but rather mid career Delta pilots in their mid 40's.
 
sandman2122 said:
Yeah, it wouldn't surprise me if DAL Management had hoped for the pilots taking the May raise all along, works to their benefit, and puts "egg on the faces" of the pilots during negotiations.
Sandman, perhaps you were unaware that the Delta pilots had offered to not take our negotiated pay raise in May, plus give th company an extra 9% back. That offer had been extended to management for quite some time, but management didn't want it.
 
You might get what you ask!

This burden will not be shouldered by the DL pilot group alone, and if it comes to Ch. 11, it will ensure that the pain is spread out. It's amazing how many guys think that when mngmt says it needs XX%, that's what they really need...BS.

Are you sure this is what you want? You are absolutely correct in your above statement. Most likely the Judge will bring you down to industry average which would be somewhere around a 67% decrease in pay. By pay, he would also be bringing your A fund, B fund (or whatever they call all of those funds) and pension plan in alignment with the other carriers. At that point, he would then start taking additional funds from all of the employees to the tune of 10% or so below industry average. To bring ASA to 10% below industry average would be a 4-5% cut.
I think your MEC is well aware of this and will work to protect the upper half of the seniority list.


From the perspective of a 27 year employee, his post was ill-informed, as are most regarding DAL. You are certainly entitled to your opinion, as is everyone on this board, that's what it is all about. But my opinion is his facts, as he states them, are for the most part not correct.

OK, exactly what was not correct? Then explain why.

Sandman, perhaps you were unaware that the Delta pilots had offered to not take our negotiated pay raise in May, plus give th company an extra 9% back. That offer had been extended to management for quite some time, but management didn't want it.

Mngmnt stated way back when that the cut was not enough. It was DALPA that sat on it. GG stated the amount required was the minimum. DALPA offered a bandaid for a gushing wound. Remember all of the guys stating that "we have plenty of cash on hand to last untill 2005", the "analysts said we would not file BK", "mngmnt is just bluffing", etc. What a world we live in.
 
Re: Delta MEC Opinion...

bvt1151 said:
I don't always agree with fins, but one thing he is most definitely not, is illinformed.


Originally Posted by xdays

From the perspective of a 27 year employee, his post was ill-informed, as are most regarding DAL...But my opinion is his facts, as he states them, are for the most part not correct.
Translation: That's not what the DMEC is telling me.
 
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