spinproof
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Saturday, July 24, 2004
[font=aria,helvetica]Delta pilots: Share the pain[/font] [font=arial,helvetica]Most willing to take cuts, but want them throughout [/font]
By James Pilcher
Enquirer staff writer
They may not like it, but many local Delta Air Lines pilots say they are willing to take a 23 percent pay cut or perhaps a little more, along with productivity increases offered by their union earlier this week.
After all, they say, their future is tied to the company as much as any shareholder. Many said they still distrust management over past pay scandals and said they would look for sacrifices by others within the corporation as a whole, including at Erlanger-based regional subsidiary Comair, before agreeing to any concessions.
"It's not like we can go to another airline and keep our same jobs," said one MD-88 pilot. "We would start at the bottom at that airline, even if we could get jobs anywhere."
Said another MD-88 captain: "If an intelligent man thinks about it, not giving something back would be like cutting your own throat."
The Enquirer interviewed several area Delta pilots Friday and is withholding their names because stated policies at both at Delta and the union could mean reprimands, suspensions, fines or termination for speaking to news organizations.
The Atlanta-based airline, the nation's third largest, is negotiating concessions with its nearly 8,000-member branch of the Air Line Pilots Association as a way to help turn the financially struggling company around.
Nearly 900 of those pilots are based at the Cincinnati/Northern Kentucky International Airport, Delta's second-largest hub. Delta has lost $5 billion since the Sept. 11 terror attacks, including a $1.96 billion loss in the second quarter of this year.
On Tuesday, the union presented the company with a proposal of a 23 percent pay cut and other concessions, including major work rule changes, saying it would save the company between $655 million and $705 million annually. In return, the pilots are seeking a full-voting seat on Delta's board of directors, an equity share in the airline and a profit-sharing plan.
Thursday, the union provided further details to its pilots on the proposal, giving more specifics on changes in productivity and to health care costs.
"From the onset of negotiations a year ago, we have maintained high levels of support from the membership regarding our negotiating positions," union spokeswoman Karen Miller said Friday.
With respect to feedback specifically to Tuesday's proposal, Miller said the pilots "understand Delta's deteriorating financial position and the need to be part of the solution."
Delta had previously asked for a 30 percent cut, but reportedly has asked for more cuts that are worth a total of $1 billion annually, and implied earlier this week that the latest pilot proposal may not be enough.
Delta officials would not comment Friday. But in memos earlier this week, company chief executive officer Gerald Grinstein said the company was undergoing a massive restructuring plan due next month. He added that all stakeholders, including workers, lessors and even vendors would be asked to participate.
[size=+1]Money, lifestyle changes
A Delta MD-88 captain with 10 years' experience is guaranteed a minimum annual salary of $180,960, according to the Web site www.airlinepilotpay.com. A 23 percent pay cut would drop that to $139,339 a year, and many pilots say that such a cut would hurt.
"I'm in an OK situation, but I know a lot of guys with $400,000 houses who are sweating right now," said one MD-88 pilot.
Still, most interviewed also said that the proposed changes in scheduling and other work rules are as much an issue as salary levels, because they could have a drastic impact on lifestyle.
"That could be huge, and could mean I work a heck of a lot more and that I am away from home a lot more," said another MD-88 pilot. "And we could be facing much higher health care premiums on top of that."
One 737 pilot said that another key for him was to protect pilot jobs in the case of a merger or spin-off of parts of the airline - both of which are provisions of the pilot proposal.
"At the end of all of this, I want a job, even if we merge with another airline or if parts get sold off," he said. "I don't want to be out on the street, so I'm willing to give some to get that protection."
[size=+1]Share the pain?
[/size]Many of those interviewed Friday say there is a small but vocal minority of Delta pilots arguing that they should fight for "max pay until the last day."
But they said that the majority hopes that pilots as a whole won't be the only ones to sacrifice, saying employees and other segments of Delta - including at Comair and fellow regional subsidiary ASA - also will have to give something up.
"Personally, I have a lot of friends who are Comair pilots, but I will definitely not vote for it and just about everyone else I know won't vote for this deal unless it includes a provision that cuts will be made elsewhere," said another MD-88 first officer, who said his wife is getting a job to help offset the anticipated loss in salary.
He said many Delta pilots resent the growth at Comair and the fact that pilots there are the highest-paid in the regional industry at a time when mainline pilots are considering a major pay cut.
"It's nothing personal ... but guys (at Delta) are mad," he said. "For us to give back and not see cuts throughout the company is not going to fly with any pilot."
Officials with Comair and that airline's pilot union would not comment on Delta's negotiations with its pilots.
An MD-88 captain echoed the thought on spreading the pain throughout Delta, especially given past actions by executives, referring to the pay scandal that enveloped previous CEO and chairman Leo Mullin and the generous buyout his predecessor also received.
"I would personally vote against any contract if it is not tied to a comprehensive reduction throughout the corporation, not just the company, especially given the corporate greed of the past," he said. "There's no fairness in targeting one specific group over another - this is something that has got to be done as a corporation."
---
E-mail [email protected]
[/size]
[font=aria,helvetica]Delta pilots: Share the pain[/font] [font=arial,helvetica]Most willing to take cuts, but want them throughout [/font]
By James Pilcher
Enquirer staff writer
They may not like it, but many local Delta Air Lines pilots say they are willing to take a 23 percent pay cut or perhaps a little more, along with productivity increases offered by their union earlier this week.
After all, they say, their future is tied to the company as much as any shareholder. Many said they still distrust management over past pay scandals and said they would look for sacrifices by others within the corporation as a whole, including at Erlanger-based regional subsidiary Comair, before agreeing to any concessions.
"It's not like we can go to another airline and keep our same jobs," said one MD-88 pilot. "We would start at the bottom at that airline, even if we could get jobs anywhere."
Said another MD-88 captain: "If an intelligent man thinks about it, not giving something back would be like cutting your own throat."
The Enquirer interviewed several area Delta pilots Friday and is withholding their names because stated policies at both at Delta and the union could mean reprimands, suspensions, fines or termination for speaking to news organizations.
The Atlanta-based airline, the nation's third largest, is negotiating concessions with its nearly 8,000-member branch of the Air Line Pilots Association as a way to help turn the financially struggling company around.
Nearly 900 of those pilots are based at the Cincinnati/Northern Kentucky International Airport, Delta's second-largest hub. Delta has lost $5 billion since the Sept. 11 terror attacks, including a $1.96 billion loss in the second quarter of this year.
On Tuesday, the union presented the company with a proposal of a 23 percent pay cut and other concessions, including major work rule changes, saying it would save the company between $655 million and $705 million annually. In return, the pilots are seeking a full-voting seat on Delta's board of directors, an equity share in the airline and a profit-sharing plan.
Thursday, the union provided further details to its pilots on the proposal, giving more specifics on changes in productivity and to health care costs.
"From the onset of negotiations a year ago, we have maintained high levels of support from the membership regarding our negotiating positions," union spokeswoman Karen Miller said Friday.
With respect to feedback specifically to Tuesday's proposal, Miller said the pilots "understand Delta's deteriorating financial position and the need to be part of the solution."
Delta had previously asked for a 30 percent cut, but reportedly has asked for more cuts that are worth a total of $1 billion annually, and implied earlier this week that the latest pilot proposal may not be enough.
Delta officials would not comment Friday. But in memos earlier this week, company chief executive officer Gerald Grinstein said the company was undergoing a massive restructuring plan due next month. He added that all stakeholders, including workers, lessors and even vendors would be asked to participate.
[size=+1]Money, lifestyle changes
A Delta MD-88 captain with 10 years' experience is guaranteed a minimum annual salary of $180,960, according to the Web site www.airlinepilotpay.com. A 23 percent pay cut would drop that to $139,339 a year, and many pilots say that such a cut would hurt.
"I'm in an OK situation, but I know a lot of guys with $400,000 houses who are sweating right now," said one MD-88 pilot.
Still, most interviewed also said that the proposed changes in scheduling and other work rules are as much an issue as salary levels, because they could have a drastic impact on lifestyle.
"That could be huge, and could mean I work a heck of a lot more and that I am away from home a lot more," said another MD-88 pilot. "And we could be facing much higher health care premiums on top of that."
One 737 pilot said that another key for him was to protect pilot jobs in the case of a merger or spin-off of parts of the airline - both of which are provisions of the pilot proposal.
"At the end of all of this, I want a job, even if we merge with another airline or if parts get sold off," he said. "I don't want to be out on the street, so I'm willing to give some to get that protection."
[size=+1]Share the pain?
[/size]Many of those interviewed Friday say there is a small but vocal minority of Delta pilots arguing that they should fight for "max pay until the last day."
But they said that the majority hopes that pilots as a whole won't be the only ones to sacrifice, saying employees and other segments of Delta - including at Comair and fellow regional subsidiary ASA - also will have to give something up.
"Personally, I have a lot of friends who are Comair pilots, but I will definitely not vote for it and just about everyone else I know won't vote for this deal unless it includes a provision that cuts will be made elsewhere," said another MD-88 first officer, who said his wife is getting a job to help offset the anticipated loss in salary.
He said many Delta pilots resent the growth at Comair and the fact that pilots there are the highest-paid in the regional industry at a time when mainline pilots are considering a major pay cut.
"It's nothing personal ... but guys (at Delta) are mad," he said. "For us to give back and not see cuts throughout the company is not going to fly with any pilot."
Officials with Comair and that airline's pilot union would not comment on Delta's negotiations with its pilots.
An MD-88 captain echoed the thought on spreading the pain throughout Delta, especially given past actions by executives, referring to the pay scandal that enveloped previous CEO and chairman Leo Mullin and the generous buyout his predecessor also received.
"I would personally vote against any contract if it is not tied to a comprehensive reduction throughout the corporation, not just the company, especially given the corporate greed of the past," he said. "There's no fairness in targeting one specific group over another - this is something that has got to be done as a corporation."
---
E-mail [email protected]
[/size]
