Delta pilots accept 15 percent pay cut

[Frequency]

http://www.cnn.com/2005/TRAVEL/12/11/delta.pilots/index.html

Delta pilots accept 15 percent pay cut


Monday, December 12, 2005; Posted: 1:12 a.m. EST (06:12 GMT)

ATLANTA, Georgia (CNN) -- Leaders of the pilots union for Delta Air Lines have agreed to a 15 percent pay cut, the company announced Sunday, temporarily averting a threatened strike that analysts warned might kill the bankrupt carrier.
Sunday's interim deal calls for a 14 percent cut in hourly pay and another 1 percent in other pay and cost items, according to a statement issued by the airline.
The concessions would become effective Thursday and remain in place while both sides work toward a comprehensive agreement by March, Delta said.
"This agreement reflects the resolve of Delta people to work together to help save the company. We recognize and appreciate the additional sacrifice this will represent," said Ed Bastian, Delta's chief financial officer.
The union's 6,500 members must approve the tentative agreement by December 28.
On Thursday members of the Air Line Pilots Association authorized leaders to call a strike vote if no deal was reached by December 16. (Full story)
Delta had earlier asked a bankruptcy court in New York to suspend the company's contract with the pilots.
Its restructuring plan calls for an additional $3 billion in annual cost reductions and revenue improvements within two years.
When Delta filed for bankruptcy in September, company officials told the court that the airline was losing $5 million a day -- mostly because of high jet fuel prices.

 

[Archie Bunker]

It's not a done deal yet. This TA must be approved by a majority of Delta pilots.

 

[Widow's Son]

It is absolutely a done deal. ALPA is ready to immediately petition the court to suspend the current hearing on tossing the contract. If the pilots reject the agreement after the judge suspends the breach the end result will make this agreement look gilded.

The real question will be how many days or weeks will the supposedly permanent March agreement stand in place before the company comes back to the well again. I predict about May.

 

[9rj9]

how much....

How much of the original 325 million does this represent? The TA will fly through after much chest pounding.

 

[9rj9]

no more retired dudes

Under the tentative deal, the company agreed to end a program to rehire recently retired pilots on a contract basis to fly some of its routes, The Journal said, noting active pilots disliked the program because the retired pilots held higher-paid slots that they otherwise could move into.

 

[densoo]

Anyone have a new pay scale chart yet?

 

[Caveman]

"How much of the original 325 million does this represent?"

I heard on the local radio news (CVG) that it totals $152 million of the requested $325 million.

My take on this, without seeing any details, is there were very few contractual changes other than pay. The company was asking for the $325 million which was based on a 19% cut plus other changes. Since they got most of the 19% rate cuts but the deal only amounted to less than half of what they were asking where were the other changes? I'm guessing that the mainline pilots relaxed 70-110 seat scope to keep work rules and retirement. I'd be interested in seeing if any rates were established for 70-110 seat a/c. I don't believe that those a/c will ever be flown at mainline but if Ma Delta can establish lowball rates for them at mainline she can use those lowball 'mainline' rates to try and coerce the DCI pilots to fly those a/c at even lower rates.

Comair, you're up..........

 

[AMANSWORLD]

Cannot believe DALPA gave in to management again. I hope it was worth it. Not trying to be rude, just thought DALPA was standing their ground about more loss of compensation.

 

[AKMD80GUY]

I saw ferlo on another thread and he is dead right about arbitration. I know I don't have a dog in this fight but having your career determined by an outside party is not the way to go. I know 15% looks great compared to what Delta was asking but with the way this industry is being run and the biass toward big business, you WILL loose in arbitration. Just look at us at Alaska and we MADE money. Delta is scared of a strike. They know the pilots at Delta are serious. If you give up the strike card you loose the one bargaining tactic that can save you in March. Just because you can strike doesn't mean you have to, but it is nice to have that threat in your back pocket.

 

[YourPilotFriend]

If you do the math if $325mil is 19% of the pay, the total pay is $1.7 billion, so a 14% pay cut would be roughly $240mil.