Delta Pilot's Pay Raise (part 1)

[ATR-DRIVR]

46J,
We can beat our gums to death showing exactly how it works but they just don't get it, don't want to get it and won't ever get it.
The last post shows that.

 

[bafanguy]

Re: re: Swab comments

If and when DAL pilots decide to contribute to the company (something no other group at Delta is even considering) it will be at their own time. They are still the only group at Delta that has volunteered to give money and this despite losing over 2500 members, 1000 to furlough. It would be nice for a change to see somebody like InclusiveScope recommend his group give a token 10% or DaveGriffin advocate baggage handlers or whoever he works for share in the pain... but alas all we hear is how much others should give.

SB

By what mechanism would the non-pilot employee groups at DAL "...decide to contribute to the company..." by giving back, taking paycuts, etc. ? They are not represented and have no collective voice. My guess is that when they ( management ) finish with the pilots, they'll go after the non-contract types as this is merely done with the stroke of a pen. They can't justify taking from the non-contract people if the pilots are still making industry-leading pay.

Face it, the non-contract people already hate the pilots...always did in my 30 years there. If Grinstein and his Band of Merry Men want to create a real attitude crisis in an already demoralized company, just take from the non-contraact types while the pilots are still NOT giving back.

 

[jetstream]

I once worked for a small company that fell on hard times. We all took a pay cut in order to help the company survive. Then when we started making money again our salaries went back to what they were before the pay cuts. Why can't the DAL pilots work out some sort of similar agreement?

 

[acarpe3448]

The Delta pilots did come up with an agreement like that. They took pay cuts, formed Delta Express, gave up a lot on work rules, and the company demanded all of this just at the start of the biggest economic expansion in the history of our country. Then Mr. Leo came into office and when asked by our union about the cuts we had made and the current healthy condition of the airline, they were told "a contract is a contract."

 

[bvt1151]

N2246J

Comair does not have it's own business model. Comair flies where Delta tells them to go, just like we do at mainline. Comair gets a free ride on a lot of expenses thanks to mother Delta. I don't believe you pay any advertising, you pay no expenses for the reservations, you print no airline schedules, and you all are paid a fee per departure that guarentees you all a profit. I don't see anyone outside the regionals that are paid a set price per flight completion. Hell, from my understanding if you have a flight that is two hours late and you transfer all the passengers, yet still fly that segment under it's flight number, you all get paid regardless of the number of pax onboard, or lack there of. Same principal at Pinnacle, "give us all the jets we want and pay us a set price and we will make a profit."

But Comair did have their own business model. A business model that was so profitable, Delta decided to buy it. Remember that Comair set their own prices, had their own marketing and planning departments and researched all new markets before Delta bought them. Only after Delta bought Comair did they become a fee for departure carrier. That being said, Comair makes about as much now, with 155 airplanes under fee for departure, as it did then, with 100 airplanes (20 or so of which were Brasilias) and their own marketing.

If Comair made $100 million a year with 100 30- and 50-seaters, the should be making well over $150 million a year with 150 40, 50 and 70-seaters, right?

The money made before the buyout included reservation fees, advertising, aircraft, etc. etc. etc. I think you'll find that the same DOT info that shows the $100 million profit also shows the reservations, advertising and aircraft expenses. Of course Delta no longer allows Comair to advertise like it was once able to. They gutted Comair's marketing department.

I still don't understand how you can argue that RJ's are here because we'll fly them for nothing, and at the same time preach for concessions at ASA & CMR. What explaination, other than ego, can there be?

 

[TurboAWD]

Comair does not have it's own business model. Comair flies where Delta tells them to go, just like we do at mainline. Comair gets a free ride on a lot of expenses thanks to mother Delta. I don't believe you pay any advertising, you pay no expenses for the reservations, you print no airline schedules, and you all are paid a fee per departure that guarentees you all a profit.

Yeah. And if you think that isn't fair, you have nowhere to look but your own management. Oh, and ALPA for deciding that creating two groups of jet pilots (the have's and the have-not's, or "mainline" and regional", if you prefer) was a good idea.

The real solution to all this bickering and problems is an integrated seniority list, people. "Strength in Unity", right??

And no, I don't think it would be fair to just do integration by DOH, a staple is fine, as long as there is furough protection for the guys getting stapled.

 

[FDJ2]

"Delta chief financial officer Michele Burns said Delta pays for all but operational costs for a Comair passenger, with such costs including the debt for new airplanes, marketing and distribution and other costs. "

I guess it's easy for CMR to make a profit when Mother Delta is paying the bills.

 

[bvt1151]

"Delta chief financial officer Michele Burns said Delta pays for all but operational costs for a Comair passenger, with such costs including the debt for new airplanes, marketing and distribution and other costs. "

I guess it's easy for CMR to make a profit when Mother Delta is paying the bills.

That may be correct, however even when those numbers are accounted for in Comair's books, they still pull a $100 million profit.

Michelle may be correct, that Delta pays for many fixed costs, however the DOT data includes all of those costs in Comairs numbers. The end result, with the fixed costs included...over $100 million profit. If Delta released Comair's true profitability (without fixed costs as your former CFO supposedly stated were not included) would be much much higher than $100 million.

Oranges to Oranges.

 

[General Lee]

Just got back from a long 4 day, and I thought I would throw in my 2 cents. (of course) Yes, I can see that higher fuel costs lately have not helped the situation. And, the May pay raise didn't help either, even though we did offer that initially in our first low ball offer, and I am sure the next offer will include that too plus a lot more. The article had some good points, and the "trust" issue is huge for the pilots ---but that can't get in the way of saving this boat. We do need to give some pay back, and even Duane Worth thinks we will AFTER we see the plan---or get the gist of the plan. If you were a mainline pilot, how would you feel if you gave 30% of your pay etc. and then found out that most of the proceeds went to buying more RJs? A bad plan---not going to help in the future with lower fares--Airtran is proving this. And, look at USAir---what a case study there! They took a lot from labor and didn't have a plan. It didn't work---and now they kinda have a plan--but it may be too late. Also, Grinstein has the ability to save money NOW by taking it from the other employees IF HE HAS TO. I hope he doesn't, and I hope we get some concessions done on our side before that would happen---but he has the FLEXIBILITY to do so if needed. Also, we are getting slammed with higher fuel bills---but LUCKILY it is happening when we are going to be the most full. That won't really help us bring back profits---but it won't erode the cash on hand as fast. Then in the Fall hopefully we can have the needed pay cuts in place and start rebuilding and going forward. No, the picture isn't very pretty at the moment, and hopefully there will be some negotiating eventually. I don't know why it is taking so long (now AUG) for the "plan"---but I have a suggestion---"Work nights and weekends!" Let's negotiate and get this over with......


Bye Bye---General Lee

 

[InclusiveScope]

Part 7

There's more - I couldn't post it all, it locked me out.
==============================================


His own compensation package is sparse compared to other CEOs in the United States. No bonus. No options. A flat $500K. He's not here for the money or fame.

He's also not here as a stepping stone to his next CEO job. Jerry and his wife Lyn could be fly fishing out West on some pristine river - enjoying life - instead of enduring long-winded questions and concerns in DFW, CVG, PTC, or the Cobb Galleria. If he surrounds himself with good people, he can do both - and should. It's healthy to remember one of my favorite lines, "you'll never see a U-Haul behind a hearse".



He's responsible for two departures we all agree with - Fred Reid and Terry Erskine. More changes in the plus column are sure to follow. Michele's departure was different but not unexpected. Michele represents a professional loss of expertise for the company, but she was the architect behind the SERP, so the tears will dry quickly.



He wants to aggressively challenge our competitors. We're losing money in Atlanta.



He doesn't think RJs should be flown on long flights. And some people like to golf and ski in places other than their hometown. RJs don't work in some markets. Whoever decided to put RJs from Atlanta to Myrtle Beach should have gone to Virgin with Fred with all our other secret weapons.



He thinks we should have more big aircraft and leverage our Domestic route structure, Atlantic dominance, Frequent Flyer program and code share alliances. A 10-15% valued premium for our product and services is realistic and attainable. Starbucks has us all beat, but the concept is universal. They will pay more if we offer a consistent and discernible difference.



He wants In-Flight Entertainment (IFE) systems and leather seats on every jet.



He's flexible and open to surprises as they present themselves. SONG started making money in the first quarter of 2004.



He wants our flight attendants and aircraft to look sharp again and be proud to walk through any concourse or pull up to any gate in the world.



He thinks our Operations Department should manage all things tied to flying.

He believes there were originally 15 Commandments, but Moses dropped the 3rd stone tablet and it shattered. We'll never know what the other five were supposed to be. Actually, I don't know what Jerry believes here but wanted to see if you were still paying attention after this many pages of reading material.



The Negative



"My way or the highway" won't work with this group of pilots. And they deserve more consideration. This attitude rankles even the most conservative and loyal among us.

Of all the unions in the United States, Delta's ALPA may be one of the best to work with over the course of their history. No one probably views it in this context - but I think if you look around you'd have to say the Delta pilots also deserve credit for doing what's necessary to keep this airline flying for 75 years. ALPA is the pilots.



We now face our greatest challenge ever. We have capable and intelligent people in place to work out a deal both sides can stomach and allow the egos room to breathe. The pilots know the company needs cash and we want to help.



How about showing the rest of the industry what Delta's people are capable of accomplishing? We used to brag how we were different. As John Morgado, from the Dallas LEC stated so simply, "Deeds, Not Words".

The burden lies squarely on the shoulders of both sides -- 50/50. But my fear is that holding out for every last dollar will be destructive. As I've discussed before, the company has a monetary goal but there is the intrinsic value of your people we must not lose sight of with regard to all employees. When you de-value human capital, you lose everything else you think you gained elsewhere.


One Outside Analysts' Opinion



Following the release of our First Quarter earnings, Jerry and Michele held the traditional conference call with analysts. There were many pointed questions from folks like Sam Buttrick and other airline analysts.

There was also a review from Holly Hegeman who writes a weekly newsletter covering the entire airline industry. Holly is out there on the fringe sometimes, but like analysts Sam Buttrick (UBS) and Jamie Baker (JP Morgan) - she tells it like she sees it and I respect her for that approach. I've copied her closing comments and impression of Delta that she wrote in her latest newsletter. Here are Holly's thoughts:


"Overall my impressions were these. It was clear that Michele was not into the call. Not surprising that her departure from the airline was then announced shortly thereafter. I just sense there was an oil and water situation there with Gerry.

As for Grinstein, more power to him. He seems to believe that between his sheer will and a complex strategic review of the airline, he can do what needs to be done to the airline, if it is going to survive going forward. It appears to me that his initial moves have all been in the right direction.

To be honest, he's one of only a handful out there in legacy airline management who seem to be moving in the right direction. While he may not know now what that direction is going to eventually be -- at least he does not seem afraid to tear the company apart, looking for the right combination that will work going forward.

That is more than I can say for other airlines.

We'll see how the plot develops when next quarter's results roll around, but I have a sense we really won't know the good stuff until later in the summer, when we learn more about what Grinstein's strategic review has revealed.

In the meantime -- it's simple. The airline cannot continue to operate as it is now. It will simply run out of money. And, with nothing to leverage, and more debt out of the question, heaven help the airline if some unforeseen event occurs which strains the cash coffers before Air Grinstein has had a chance to work its magic."

-- Holly Hegeman, PlaneBusiness Banter, 4/19/04

 

[InclusiveScope]

Part 8

The Honeymoon Window



The honeymoon window of opportunity that naturally accompanied Jerry's arrival is shrinking - even with all the good things said, actions taken, and initial positive impression many feel. He has further changes in the works which should be welcome, but the circle remains broken until the deal with the pilots is consummated.



The fear is that all of Jerry's efforts to turn the tide go no where without the pilots on board. When I look at what he has said and done since January 1st, it is encouraging to see leadership emerging from the front office. But leadership without trust and mutual cooperation won't allow us to shift out of first gear.





ALPA's Initiatives - Last Year and Present



Again, to be fair, ALPA put last May's pay raise (4.5% in 2003) on the table in January of 2003. At the same time, or shortly thereafter, the Executive bonuses became public knowledge and all hell broke lose.

My guess is: at the time, better than 75% of the pilots felt the 2003 pay raise should also have been rescinded, but after the SERP issue became red hot, it would have been impossible for ALPA to get the votes needed to give back the raise last year.

The current pay raise of 4.5% is part of ALPA's proposed concessions - combined with a reduction in salary of 9% - for a total of 13.5%. From the company's side this is not nearly enough to make a meaningful difference. The 13.5% equates to less than $300 million. ALPA has other pieces on the table that equate to more concessions and efficiencies, but it still isn't enough and both sides know it.

Jerry's point is we need more immediate help if we expect to be competitive and turn the corner. To piecemeal it step by step doesn't get us there. I understand his position and why - especially if you or I were running the business - trying to pay off debt and regain profitability.



The counter argument is, "Hey, we've been trying to give them money for two years and no one will take our offers." This is what makes the pilots skeptical and suspicious about the company's true intentions. This is how talk of Chapter 11 as a "strategy" gets mileage.

It's also likely the other employees don't realize how much the pilots - via ALPA - have helped the company since 9/11 by granting waivers and side letters on issues like SILs, bow wave, monthly caps, bank provisions, and overtime flying. New agreements on the CRAF and MAC flying during/after the Iraq war also took a cooperative effort from ALPA.

Some of the reps like former Chairman Will Buergey and Lee Moak may never get the credit they deserve for work done behind the scenes to help the company between 9/11 and the time they relinquished control to the current MEC. Much of the cooperative effort that occurred since 9/11 was crafted and accomplished by these folks and others still on the MEC in the spirit of what was "the right thing to do" for both sides. We need that to continue, not stall.

Other important long-term initiatives like the code share agreement with NWA/CAL don't just happen without ALPA's concurrence. The hard work required is soon forgotten. These and similar efforts show the pilots, via their elected reps in the union, have been willing, to step up and be counted when needed - which usually benefits all of us from top to bottom.

These efforts show how both sides share a "win-win" when adjustments to the contract are made which make sense and accomplish the mission when the environment shifts in ways that can't be anticipated.

Public companies do not purposely go into bankruptcy. They have a fiduciary and legal responsibility to their shareholders. But when the company won't accept any offerings for the past couple years, you wonder if they understand the time value of money already lost.

Now Jerry is here - trying to fix it - and the bite of the apple required has grown larger. This makes him - the messenger - look like the real bad guy - when in truth, I think he is the first one who has the cojones to tell us what we need to survive and thrive again.



The board didn't listen to him two years ago. Now they have to. There are few, if any, other choices - given the nature of the beast. But ultimately, ALPA is holding their ground because these concessions should be negotiated - not dictated.



Why don't we use this opportunity as a fresh springboard to get the whole deal worked out - including concessions? Most appear ready to get it done and move on. We know we are going to hit our thumb with a hammer but we're afraid to stick our hand out and get it over with.

We know cuts are coming. Why not let the healing process begin sooner? Otherwise the pain is going to be far deeper. The longer we wait the more painful the cuts will be and the more bodies we'll see on the street - especially if we force the company to reduce the number of hubs, aircraft, and block hours - to save money.



Delta flew the highest block hour months it has ever flown in 2001 - in the months prior to 9/11. It was at that point, combined with the bubble in the U. S. economy and the stock market that Delta was starting to realize they had hired 1000 pilots too many. The reduction in the non-contract workforce had already begun and culminated with 16,000 employees getting pink slips or offers to retire early.



There are approximately 1100 pilots between the ages of 55-60. As they retire it will help bring back furloughed pilots, but it would also help if we would get our act together, get competitive, and start growing the airline instead of shrinking - particularly with the big jets.



As we all know, but no one wants to talk about - the biggest savings for any company is when you reduce the size of the workforce and do the same job more efficiently with less bodies. We can whisper and skirt the issue all day long, but this is the cold hard truth. Without growth, our furloughed pilots will be on the street even longer. And we can't grow if we don't get competitive on costs first.



One interesting side note of trivia was pointed out recently. Of the major European cities that people around the world find most attractive, Delta only serves 75% directly. That looks like opportunity knocking - in light of the fact nearly 80 million baby boomers in the U.S. are starting to retire and travel more. Berlin, Prague, Hamburg, Lisbon, Stockholm, Vienna, Budapest, Shanghai, Hong Kong, Caribbean, South America? Don't the numerals 767 and 777 roll off the tongue nicely?

 

[InclusiveScope]

Part 9

The Numbers - Where Is the Disconnect?

Here's where folks keep scratching their heads. How can there be such a disparity between what the company says they need and ALPA's financial needs analysis?

It seems like the two sides aren't even discussing the same company. If it comes down to a philosophical difference in the size of the cuts needed - then ALPA may be leading us down a perilous path. It will not be good enough to enable the company to borrow even more money at ever higher rates.

Our increasing debt load will crush us under the weight of its ballooning burden. Let's not falter in the same manner we are watching our brothers at ALPA struggle with the facts at United and USAir or APA at American.

The company's view is we need to take the hard medicine now. As Jerry has said - we've had a heart attack and need a stent - not just aspirin. Their reasoning is many good things can happen if we get our cost structure down.

The value of the stock starts to rise again as we regain favor with both Wall Street and other investors. We regain access to capital markets at much lower rates of borrowing. We are able to finance growth at a reasonable cost. Profit sharing can become a reality instead of a pipedream.



Company's request - $830 million ($750 million + May pay raise of $80 million)

ALPA's offer - somewhere between $350 - 450 million (9% + 4.5% May raise + work rules/benefits)

ALPA's offer on the table has been hard to nail down since I don't have access to the confidential numbers. When these guys sign confidentiality agreements, they mean it. The numbers used above are a best guess as to what has been offered.



What's necessary? - No one really knows but it's possibly the whole $830 million.

What's reasonable as a first bite? $600-650 million. Any family needs time to adjust and many pilots will take an even bigger hit by sliding backwards.



Why won't the company take at least a 70-80% deal to get the ball rolling and then come back to the pilots if they need more? It will be no surprise if that becomes necessary, so I no longer believe the argument which says it must be all or nothing in one shot.

This pilot group is very capable of doing what's necessary. If that takes two bites of the apple - they'll do it for job security and to maintain control of their fate. Pilots do not like to be out of control - another trait our passengers appreciate.



What does it take to give back $600-650 million? There are numerous paths - and it will hurt some more than others. But the alternative of bankruptcy and job losses isn't acceptable either. One route is a 20-25% pay cut, raise the cap to 80 hours, modify the work rules, reduce vacation pay, reduce the 401k match to 2%, raise the medical premiums, and fly the entire fleet more efficiently, more often - each day/night.



What if the company needs $200 million more on top of that? It would require an additional 10% pay cut or fewer bodies to fly the same block hours.

There may be some slop in these numbers depending on which side is doing the valuation, but these days, the valuation of each item has been generally agreed to by both sides and is simply a matter of changing a number in the laptop spreadsheet and pressing "Enter".

The company is asking for close to $830 million. Given our debt load and balance sheet status, is there anyone who believes 13.5% is enough to help turn the corner?



The Milestone Partners Group is based out of Washington, D.C. They assisted ALPA's internal team (headed by Ms. Anna Schulz at ALPA National) with the Economic and Financial Analysis (E & FA). The analysis is now a year old. ALPA is reviewing the latest numbers again in this month (April) with Michele Burn's team.

Originally, Milestone advised our union leaders in order for Delta to gain access the capital markets again; the pilot's contribution would have to be more than there is on the table now. If that was the guidance offered, why is ALPA still appear low with their current offer?

For every 5% the pilots give back, it equals about $100 million in savings for the company. Thus, a 30% cut in wages equals a $600 million dollar savings for the company. The rest of the package the company is trying to achieve would come in the form of work rules and benefits changes to the tune of another $230 million if they got every dollar they are asking for.

Where would this place the Delta pilots compared with their peers in the industry? Still in the top percentile for pay and benefits of all pilots in the industry. Add profit sharing, reasonably priced stock options ($8-10) to the mix and it could be surprising how well the picture might look 2-3 years from now.

Or we could be sucking wind (I know - that's what jets do), have only 5000 pilots on the property, and be flying a much lower number of block hours. We hold our own fate in our hands.





What's the Right Thing to Do? -- Social Contract with Fellow Employees



Someone once said "ethics is doing the right thing when nobody's looking."

It seems disingenuous to hide behind ALPA since we - the pilots - are ALPA. We - the pilots - have an opportunity to show true gutsy leadership. In many ways at Delta, we have another contract which is just as important as the PWA (Pilot Working Agreement). And that is the social contract we share with our fellow employees. Both contracts add great value to our lifelong careers at Delta, whether some appreciate it or not.

A number of pilots I've spoken with agree that accepting the pay raise is potentially divisive. A smaller group is still very militant - but that number has declined over the past 12 months. The silent majority understand the marketplace, the analysts, investors, and the credit rating agencies - can't all be wrong. Now it's just a matter of time before reality hits the blue envelope.


There is a small number who refuse to accept we have a real problem - or want to believe the company is either lying or bluffing. Same thing happened at United. Their pilot Forum had a handful of folks with limited information who were the most vocal and adamant. Then reality came knocking in the form of a vote.

The UAL pilot group voted overwhelmingly (90%) to accept concessions ($450 million) in favor of keeping their jobs. Where else were they going to go? Same with USAir. Where else are airline pilots going to go with over 9000 pilots currently on the street - able and willing to learn to fly any airplane available?

In case we've forgotten, in the United case, the bankruptcy judge took another $700 million in wage and benefit cuts for a total of $1.1 billion out of the current UAL pilot contract. Has anyone talked with those guys? They're flying 90 hours a month for 40-50% less pay. At American they carved out approximately $2 billion in concessions from their employees - both pilot and non-pilot combined.

While we're looking at United, let's ask another fair question - where were ALPA reps when it came to doing an economic and financial analysis? And if one was done, how far off were they from what was truly needed? Don't United's pilots and their ALPA reps have the same concerns we have at Delta? Were some in denial there, too?

Until we have more folks on the street by judge's order or see our W2's reduced inline with the rest of the industry it is very tough to have a reasonable discussion with the naysayer group. Our black hats will cast an even darker shadow from those folks and you will find other employees just shake their heads in disbelief.

Times like this determine whether the pilots can be counted on to be leaders. Those who refuse to believe the depth of our problems or fail to take the initiative to help the company that feeds them are hoping beyond hope it magically gets better.

The May pay raise of 4.5% equals $80 million annually. (The SERP was originally tagged at $65 million). That's $80 million our company can't afford right now. That's $80 million more in the wrong column on the balance sheet. That's $80 million being subsidized by sacrifices our other employees have already made with changes to their retirement plan, higher medical premiums, work rule changes, new sick leave policies, and 16,000 layoffs.

Accepting an additional $80 million does not help the families of pilots on furlough. It doesn't help pay off an airplane. It doesn't give us cash required to compete head to head with the competition. It doesn't help fund pension plans. It doesn't help keep our medical premiums from rising even higher. It doesn't help pay for high cost fuel. Accepting another $80 million doesn't send any positive message - but it could - if it was put in escrow and used for something besides lining our pockets further.




"Each time we make a decision it is determined by either good or evil forces, respectively, which are dominant."

-- Erich Fromm, from the book, "Man For Himself"

 

[InclusiveScope]

Part 10

Become That Which We Loathe?



Why allow ourselves to become what we loathe?



We were visibly angry at upper management for accepting the SERP. And rightfully so. We insisted they could have - and should have - stopped it. We've all said we'd have more respect and trust towards them if they had stopped it. Every employee was unified in these feelings across all departments, cubicles, and cockpits. We all asked, "How could they be so blind and insensitive?"



So I ask all of us to consider - Where is the same anger and disbelief among the pilot group when the tables are turned? The money is now going to flow into our pockets. Is there honestly any perceived difference in the bottom line between the two scenarios?

We will be accepting additional compensation when we know the company is in trouble and needs our help. It doesn't matter what justification may exist for the additional compensation. Just like it didn't matter when senior management tried to justify the SERP.



Some have suggested we may as well take the money now and we're better off in bankruptcy because then everyone shares the pain, and it's not just the pilots who are giving concessions. This sort of thinking highlights shallow thought processes and a great misunderstanding of what bankruptcy can do to a company's soul across every stratum.



Are the laws of physics stopping ALPA from rescinding the May pay raise? Is there any criminal or civil law that says ALPA can't halt the pay raise? Are pay issues exempt from side letters? Doesn't a handshake count for anything in our culture anymore?

We talk vehemently in strong terms about maintaining Captain's authority and how we want to be given the respect our leadership position should command. Yet when it comes to true leadership during what is probably the toughest time Delta has ever faced - where are our leaders? How can we ever earn unwavering respect if we don't lead by example?

There is no argument we can defend that makes us any better than other greedy mongers in the U.S. who accept compensation when the organization they work for is hurting. We have a fragile balance sheet. It would seem prudent not to inflict any further hardship on the company our livelihood and future job security depend upon.



"Most of the things we decide are not what we know to be best. We say yes, merely because we are driven into a corner and must say something."

-- Dr. Frank Crane





On the heels of management accepting the SERP, is our acceptance of more dollars at this juncture more noble or deserved? Are our actions any different than theirs? By saying or doing nothing aren't we giving tacit approval to the same greed we've relentlessly condemned the past 12 months?



I can't think of any good reason to accept or promote selfishness. Regardless of the excuses some will pose I don't believe there is any justifiable reason that holds water or allows each of us to look in the mirror. How do we consider ourselves as leaders when the chips are down everywhere else in our company?





"Some persons are very decisive when it comes to avoiding important decisions."

-- Brendan Francis


Is Goodwill Dead?



The goodwill and respect that would come from rescinding the May pay raise is immeasurable. Some say the good deed would soon be forgotten by most. I disagree. Sometimes we only get one chance to make the correct decision at the fork in the road. That doesn't mean you have to keep getting credit for it during each subsequent issue that arises.

We might consider moving beyond rescinding the raise and use this opportunity to craft a more meaningful concession package. We know we need more than 13.5% to turn the Mothership in the right direction and regain a competitive posture. So why can't we get there? It would seem no excuse is quite good enough to allow the situation to deteriorate beyond repair.



If you agree we should forego the May pay raise, send John and your reps a note with your comments; or if you don't agree, tell them. Maybe if our ALPA leadership receives enough input, they can take action to indicate the pilots are trying to help the company. We've always been counted on to step up and do the right thing. Why not now?



Since only 25% of eligible voters (896 of 3539) in the latest Council 44 election voted, I'm not making any assumptions anyone will make the effort to look up their ALPA reps e-mail addresses or phone number. They are both provided below for easy access.

In the same spirit of providing our ALPA reps e-mail addresses and phone numbers below, it is only fair that you be able to contact me directly as well with any comments, suggestions, criticism, or questions at anytime:

[email protected]

ALPA Offices Toll Free: 800-872-2572
Atlanta: 404-763-4925



(ALPA reps email addresses and phone numbers deleted from forwarded email. Ken)





Conclusion


You can accomplish anything in life you truly want to.

 

[InclusiveScope]

The preceding 10 part message was written by a Delta pilot. I posted parts 1-6, then for some reason I couldn't post anymore. It might have been an anti-spam filter, or just my computer. Later I was able to post the rest of the message(parts 7-10). I offer it only as information. I am hearing that this is now the "silent majority" at Delta.

 

[General Lee]

Inclusivescope,

I think I know who wrote this, and this guy is getting slammed by everyone. He has his own agenda. I do think everyone knows that we should take pay cuts---and Dalpa is watching this carefully. Remember, if Grinstein really really needs the cash now---he has the flexibility to do it with most of the other employees. He probably will get concessions from us---especially if his future "plan" does NOT include extra RJs---well, maybe a small number of 70 seaters might do---but that is it. I can see why you might be nervous.

Bye Bye--General Lee

 

[InclusiveScope]

Inclusivescope,

I think I know who wrote this, and this guy is getting slammed by everyone. He has his own agenda. I do think everyone knows that we should take pay cuts---and Dalpa is watching this carefully. Remember, if Grinstein really really needs the cash now---he has the flexibility to do it with most of the other employees. He probably will get concessions from us---especially if his future "plan" does NOT include extra RJs---well, maybe a small number of 70 seaters might do---but that is it. I can see why you might be nervous.

Bye Bye--General Lee

"Slammed by everyone"? I find that hard to believe. Slammed by the "vocal minority" - that I can see. Sometimes telling the truth is unpopular. This guy doesn't post as much as you General, but he is a hell of a lot smarter than you. You might learn something from him General - that is if you actually take the time to listen for a change.

 

[~~~^~~~]

General Lee :

If you have explained it, I've missed it. Please explain why non seniority list employees should take pay cuts to supplement Delta pilots making 65 to 70% more than the industry average.

Most folks will simply go to another employer who pays more.

Not to mention the effect this would have on employee morale - it just is not fair. Seems you would prefer your crew meals without the extra 6 hour old saliva dressing.

At least our Delta snack mix and the "surprise and delight" goodies are sealed for our own protection. Wish they would bring back the toasted almonds.

~~~^~~~

P.S. Welcome back.

P.S.S. With the "productivity enhancements" wouldn't Delta need fewer pilots? Why not do the Airtran deal, cut the guarantee to 65 hours and bring folks back?

 

[General Lee]

Yeah ok inclusivescope...............


A lot smarter than me? Not if you knew who he was---and I do. I continue to say that we should give pay cuts---and we all can see what is going on. How would you like to give up 44% of your contract when nobody else in the company is giving up squat because they are making "industry standard"---even though the industry standard age and longenvity is 30 years less per employee? Have you seen the average age and longevity of our average mainline stew? They are all on top pay and are in their 70's..... Figure that one out. I hope they come to a conclusion too that is beneficial---but everyone should help out---starting with us. And, if you get any more propoganda---make sure you post it too. Maybe I will write a long diatribe too (with Surplus1's help) about why you should vote for me for President of ALPA or maybe the United States of Iraq! (Fins can be Governor of the South incuding Basra, and Surplus1 can be the Mayor of Najaf)




Fins,

Obviously Dalpa would not agree to more furloughs or huge productivity gains because they have publicly called for the furlough recalls with the RPM trigger. It would be very hypocritical to then approve more furloughs when guys have left current jobs to come back to DL. There may be a slight increase---to 80 hours on some aircraft or maybe all---but with the current early retirements and further training required to cover those early outs---it shouldn't affect the whole group much. There are probably many things in the works---like lowering the reserve guarantee to 65 hours from 70(?), lowering per diem,lowering the amount of vacation pay for each day of vacation, etc... that we have no idea about---and that is if they are actually negotiating. I don't really see that happening until after the "master plan" is given to Dalpa.....

And, it is good to be back----those long 4 days with an allnighter in there really hits you like a ton of bricks.....

Bye Bye--General Lee:

 

[jetflyer]

General,
Wake up and smell the coffee. The writer of that message appears to REALLY know what is going on.

If the VOCAL MINORITY like you continue to rule at Delta and try to shut up WITH INSULTS people like the writer of that message, Delta is in for a lot of trouble. Delta guys will be crying like the United and US Airways guys in the next 1-2 years. Just wait and see! I just hope you're saving some of that INDUSTRY OBLITERATING PAY for rougher days ahead.

Good luck to everyone associated with Delta,
Jet

Pan Am, Eastern, Braniff, Delta..........

 

[jetstream]

The Delta pilots did come up with an agreement like that. They took pay cuts, formed Delta Express, gave up a lot on work rules, and the company demanded all of this just at the start of the biggest economic expansion in the history of our country. Then Mr. Leo came into office and when asked by our union about the cuts we had made and the current healthy condition of the airline, they were told "a contract is a contract."

I've heard this argument before from Delta pilots and I first I agreed with their point of view. But now I'm not so sure. What good is a contract with a company that is out of business?

Also, as a major/regional pay comparison I just gave myself a six figure income ($100K) then took a 20 percent pay cut and still ended up with a 25 percent pay increase over what I make now. As I've said before pay cuts at ASA/Comair are out of the question as far as I am concerenced. It would force many of us into poverty.