Delta to Give Cash to Employees

[General Lee]

The "note" and the "claim" are two different animals. The claim floats on the market and its value may vary depending on who buys it and when, apparently it sold and is selling at better than expected rates. Most pilots have already pre sold their claim and whatever financial institution bought it, pays out on that claim once we exit BK. That money then get's distributed to the pilots in our 401k up to the IRS 415 limit for both 2006 and 2007 immediately upon bk exit, 44k and 45k respectively. Any remaining funds are distributed as cash with applicable tax deductions.

The "note" has a guaranteed value, $650M. It is issued within 120 days of bk exit and is converted to cash thereafter. The cash from the note must equal $650M and it is then distributed within 6 to 12 months of bk exit, once again into the 401k up to the IRS 415 limit. The note will most likely be distributed in early 2008, in order to maximize the tax benefit.

Both the note and the claim are part of DAL's court approved POR and they are binding on the company and any successor.

Once the claim and the note are distributed the company is still on the hook for a 9% defined contribution and 2% 401k contribution (not match), since the IRS 415 limit will be met for all DAL pilots on the seniority list as of June 1 2006, for tax years 2006 and 2007 and most likely 2008, each pilot will receive the 9% DC and 2% 401K money as ordinary income. Effectively an 11% pay raise on top of our contractually agreed upon pay raises and any profit sharing or performance pay outs.

DAL is on track to exit BK in less than 2 months. The company has stated that it is ahead of it POR at this time and actually posted an operational profit for the full year 2006. Confirmation hearings are scheduled for April 25th.

Don't talk logically to WD, he doesn't understand it.

Bye Bye--General Lee

 

[retired guy]

BTW..the money that is to be given to the non-contract people is the same money that my former employers screw me and the rest of the retired pilots out of. (Sorry to end a sentence with a preposition.)

 

[Heavy Set]

BTW..the money that is to be given to the non-contract people is the same money that my former employers screw me and the rest of the retired pilots out of. (Sorry to end a sentence with a preposition.)

Did you have to go? You could have stayed and gambled, and maybe gone to age 65 if it happens. What about the guys that didn't have the choice you had, like the 49 year olds? It was your choice.

 

[dtfl]

Not necessarily true. Pilots will participate in any profit sharing, and we have a "me too" clause in our contract which covers any broad employee pay increases. We have minimum pay rate increases also in our PWA, however if the company continues to track along as described in its disclosure statement, could be more substantial than the contractually agreed to increases. Additionally, pilots participate in any monthly performance bonuses.

I believe there might be a small cash pay out to the employees once we exit BK, but it will hardly match the pilots $2.1B claim.

Interesting how the releases I have read are worded so it seems only the salaried folks (ie non contract) are getting the pay raises.

 

[BILL LUMBERG]

Hey FDJ and GL,

Where exactly is the me-too clause written in the PWA......I know it's urban legend but I can't find the exact language......Is it in our stellar attempt at a recovery compact??

Thanks

 

[Pat Fabin]

Bill,

I think its either in the section about profit sharing, or its at the end of the compensation section. If all else fails, try the side letters at the back.

Yeah I could have gotten off my ass and went upstairs and found my contract, but...

 

[BILL LUMBERG]

Bill,

I think its either in the section about profit sharing, or its at the end of the compensation section. If all else fails, try the side letters at the back.

Yeah I could have gotten off my ass and went upstairs and found my contract, but...

Yeah,

Don't bother.......I'm just curious about number 382 of the things I could give 2 $hits about.....

I just think we gave the most concessions as a group and then the company turns around and awards the blind mice (non-union employees) a reward so they don't go union. Personally, I wouldn't want another union here but we just give and give and this just reeks of 1996 payraises.

 

[BILL LUMBERG]

Yeah,

Don't bother.......I'm just curious about number 382 of the things I could give 2 $hits about.....

I just think we gave the most concessions as a group and then the company turns around and awards the blind mice (non-union employees) a reward so they don't go union. Personally, I wouldn't want another union here but we just give and give and this just reeks of 1996 payraises.

Nevermind, found it on page 66 of the contract.........

We get whatever the highest (i.e. MX versus janitor) lump sum the sheep get.....

If there is a bump in sheeps pay, then a pay review is forced and we get the increase of the percentage of the Big 6 airlines 757 top-scale captain and our 757 top Captain pay...........

Guess that's a me-too clause if I've seen it........
I guess AMR is the highest paid at 169 per hour and DL gets 158 per hour...so an increase will be in order.

 

[Pat Fabin]

Bill,

I hate to rain on your parade but if you read the clause, it compares the average of 757/767 captain rates at a few peer carriers. I did the math and unfortunately we're in the middle of the pack. Hopefully we'll be able to tag onto future wins at other carriers, otherwise we're stuck with the contractual raises for the next few years.

I wouldn't expect huge raises for the non-contracts...DAL has been espousing industry standard, nothing fancy...so some groups might see more than others. And I'll take our claim money over their cash lump any day.

I know what you mean...the pilots have helped this company greatly, especially with the recent USAirways debacle. We'll just have to pat ourselves on our backs because nobody else cares or notices....we'll always be spoiled rich pilots to some.

I love you man....