New Delta TA - Part 1

[av8n]

Pay cut of 14% from LOA #46 followed by annual pay raises starting January 1,2007.

Additional pay increases tied to Company financial performance (protection against the
Contract ’96 debacle).​

• Limited authority to operate 71-76 seat DCI jets, provided that no pilot on the
current seniority list (Troy Kane and above) is placed on furlough. This

protection is not subject to a force majeure clause.
• There are no changes to any of our duty rigs or scheduling (except for Hawaii
reporting); our quality of life items.
• The MPPP will be terminated and the money will be placed in your account that
you control.
• Notes and Equity to return a substantial part of our concessions.
• Duration of 3.5 years (12/31/2009, same as LOA #46).
• The effective date of the agreement will be June 1, 2006 if the T/A is ratified and
is approved by the Bankruptcy Court.​

The following is a summary of the T/A:

Scope
• 76-seaters will be allowed at DCI, with strict limitations on numbers, and with

incentives for mainline growth.
• If the Company furloughs a pilot on the current seniority list (Troy Kane and above), DCI
cannot fly any of the 71-76 seat jets with more than 70 seats. In fact, they must then
physically remove the excess seats from ALL such aircraft for the balance of this
contract.
o Beginning January 1, 2007, DCI is allowed to operate fifteen jets
configured with 71-76 seats. They may operate these aircraft prior to this
date, but with a maximum of 70 seats.
o On January 1, 2008, DCI is allowed to operate an additional fifteen 71-76
seat jets.
o Additional 71-76 seaters can be added, but only on the basis of mainline
aircraft growth (three 71-76 seaters for one growth mainline aircraft).​

• Delete minimum block hours and planned percentages.
• Delete designated flying block hours.
• Change in control provisions allow flexibility in Chapter 11, but preserve
essential protections in an airline-to-airline transaction during Chapter 11.
• Delete the required recall of all furloughed pilots by August 1, 2008.
• Delete the requirement to be at a 75 hour ALV in certain categories for 3 months
prior to furloughing. Maintain the three month furlough notice requirement.​

Compensation​

• Composite hourly pay rates will remain at 14% below the LOA 46 rates for the
balance of 2006.
• On January 1, 2007, rates will be increased 1.5%.
• On January 1, 2008, rates will increase by at least 1.5%, and may increase up to
6% based on corporate financial performance.
• On January 1, 2009, rates will increase by at least 1.5% above the minimum 2008
rates, and may increase up to 6% above the actual 2008 rates, based on corporate
financial performance.
• On December 31, 2009 rates will increase another 1%.
• See attached minimum and maximum pay rate tables.
• The 12 year captain rate for the EMB-190/CRJ-900 will be $95.70 on June 1,
2006 and subject to the above adjustments.
• The 12 year captain rate for the EMB-195 will be $112.50 on June 1, 2006 and subject to
the above adjustments.
• Delete night pay.
• International pay is $5.00/hr for captains and $3.00/hr for F/Os.
• Increase profit sharing pool divided among all employees from LOA #46 to a 15% payout
at first dollar of pre-tax income; 20% payout on pre-tax income over $1.5B divided
proportional to W-2 income.
• Domestic per diem is $1.85/hr.
• International per diem is $2.40/hr.​

Hotels​

• Expanded hotel reviews and a stated preference for nationally branded hotels.​

Relocation​

• To be eligible for relocation at company expense, a pilot must move within 125 miles of
his new base. Pilots who currently have a moving entitlement retain their eligibility.
• Increase lump sum to cover miscellaneous moving expenses to $2000.​

Vacations​

• Effective April 1, 2007, reduce the value of a vacation day to 3 hours.
• Effective April 1, 2007, delete the 6th week of vacation and reduce the vacation
accrual rate.​

Administrative Flying​

• Administrative pilots may fly a rotation from open time without a line pilot being paid for
the rotation. The rotation may only be removed within 96 hours of report and, in most
instances, it must have gone through at least one PCS run prior to removal by the
administrative pilot.​

Training​

• Improve MEC oversight of CQ material preparation.
• Clarification of pay time for distributed training that is not on a CD, but could be
in another form of media, such as a workbook.​

Hours of Service​

• Sixty minute report for flight segments to/from Hawaii.
• Increase DBMS displays for flight hour and PWA limitations.​

Sick Leave​

• The new sick leave year will be from June 1 – May 31 for all pilots.
• Pilots in their 9th year and above will have 240 sick leave hours each year.
• On a rolling 3 year basis, a pilot will have 240 hours at full pay and the rest at 75% pay.
• Pilots returning from disability will have their full pay sick leave credit hours
recharged (once in a career).​

Scheduling​

• The company must comply with the TLV limits commencing April 1, 2007.
• A Delta jumpseat reservation will now satisfy the commuting policy.​

 

[av8n]

New Delta TA - Part 2

General​

• Flow back jumpseat to be negotiated with Alaska, Northwest and Continental​

immediately and with US Airways and United beginning January 1, 2007.
• A flight attendant jumpseat may be occupied by a pilot, but only if it is the only
seat available on the aircraft and no flight attendant (working or not) has
requested the jumpseat.
• Yearly non-rev pass fee of 50 dollars maximum, and no more than other
employees.
• Pilots on the FOQA monitoring team will be covered under Section 24 J. 2. and
not subject to GS charges to ALPA.
• LOA #52 establishes the Civil Reserve Air Fleet procedures.
• Financial advisory fees and major ALPA costs paid by Company.​

Medical and Dental Benefits​

• Increase premiums for future retired pilots and survivors prior to Medicare
eligibility.
• Provide “access only” medical coverage post-Medicare eligibility.
• Provide for modifications to medical insurance to capture savings from the Health
Coverage Tax Credit.​

Retirement, Insurance, and Disability and Survivor Benefits​

• Money Purchase Pension Plan accounts will be distributed to individual pilots for
self-directed investment.
• Defined Contribution (DC) Plan contribution of a flat 9% to all pilots after Pilot
Defined Benefit (DB) Plan termination.
• Maintain company 2% 401(k) cash contribution.
• ALPA will not oppose DB Plan termination.
• Implement Roth 401(k) accounts and permit contributions up to the IRS limits for
all plans.
• Disabled pilots receive disability income until mandatory FAA retirement age.
• Disabled pilots will continue to receive DC Plan and 401(k) contributions at two
times their disability benefit. This provides a retirement benefit for a disabled
pilot for the years of service while disabled.
• Income offset once a pilot on long-term disability (LTD) achieves outside income
that equals LTD income.
• Limited neutral medical examiner process for continued LTD eligibility.
• $500,000 life insurance (with guaranteed insurability) replaces current survivor
annuity beginning 1/1/08.
• Life insurance decreases to $250,000 on retirement, and then steps down in
$50,000 segments during first five years of retirement, ending with the current
$10,000 benefit.
• Company authorized to expend up to $60 million per year from the D&S Trust to
pay legally permissible pilot expenses. Establish D&S Trust re-funding
mechanism.
• Amend D&S Plan to assure that only persons who are or have been on the
seniority list (and their survivors and beneficiaries) are eligible to be beneficiaries
of the D&S Trust.
• Amend D&S Plan to clarify that in the event of DB Plan termination, disability
benefits are offset by calculated (not actual) retirement benefits.
• Clarify MPPP offset in the event of DB Plan termination.​

Bankruptcy Protection Covenant, ALPA Claim, and Notes​

• The Bankruptcy Protection Covenant is an extensive legal document that
supersedes the LOA #46 Bankruptcy Protection Letter.
• The company cannot file another Section 1113 motion to reject the PWA during
this bankruptcy unless in imminent danger of losing its DIP financing and
satisfaction of other tests.
• Legal protections for ALPA and its representatives.
• The company must propose and may only support a Plan of Reorganization
(POR) that contains the ALPA Notes, the ALPA Claim (equity), and other terms,
including assumption of the PWA as modified.
• If the company's POR does not comply with the ALPA terms, procedures are
established to return to the PWA in its entirety as it existed prior to LOA #50.
• $650 million note or cash (at company option) in consideration of contract
concessions if the DB plan terminates. MEC to determine allocation.
• $2.1 billion bankruptcy claim in consideration of contract concessions. In a
bankruptcy, a claim is usually paid in equity (stock in the reorganized company
when it exits bankruptcy). The value of equity resulting from a claim will depend
on the value of the company at exit from bankruptcy and the size of the total
claim pool. The value of the stock is usually much less than the nominal value of
the claim itself. For example, in the United Airlines bankruptcy, at the time of
exit from bankruptcy, the newly-issued United stock traded at about 24% of the
nominal value of the claim; today the stock is trading at about 16% of the nominal
value of the claim.
• The MEC may be able to decide that the notes, cash and equity described above
may be allocated to qualified retirement plans, up to Section 415(c) limits.​

Recovery Compact​

• Process established to repair and improve employee-management relations.​

Delta’s Section 1113 (c) demands that were not achieved

• 19.5% pay cut with no pay raises
• Delete 401 (k) company contribution
• Five year duration
• Delete all furlough protections
• No financial returns
• $325 million concessions per year and no recognition of DB Plan termination
• 79-seat jet DCI aircraft
• Delete the change of control provisions
• Establish a sick leave reliability program and impose draconian sick leave terms
• Minutes under offset by minutes over
• 15 minute release per duty period
• No captain on relief crew for flights over 12 hours
• Change max scheduled duty time​

 

[av8n]

This TA would let the camel's nose underneath the tent again concerning Scope. I guess we didn't learn from the PRP program.

No furlough protection - let's just completely forget about the guys on the street.

I will vote NO.

 

[Heavy Set]

Vote No!!!!

This TA would let the camel's nose underneath the tent again concerning Scope. I guess we didn't learn from the PRP program.

No furlough protection - let's just completely forget about the guys on the street.

I will vote NO.

Again, why can't the negotiators understand that SCOPE is off the table? Are they deaf? This is a complete joke of an agreement in my opinion - they ignored the will of the DALPA members... It would be really interesting to hear the SPIN in the roadshows - spin from super-senior pilots who don't even consider the concerns of junior, mid-level or furloughed pilots who will be impacted the most.

Get the aircraft on the property and then negotiate pay for them later - that makes sense to me. E170s can be operated in a 70 seat configuration if you take out Economy seats and replace them with First Class seats - aren't people considering this loop hole? Air Canada mainline pilots fly both the E170 and the E190. Why should Delta mainline be any different? At the very least, Delta pilots should be given the left seats on any INCREMENTAL E170/CR9 aircraft. E190s should be flown by mainline like they are at JetBlue and USAirways/AWA.

SCOPE is the big issue, and until it is protected, I would vote this TA down - VOTE NO!!!!!

 

[Dave Benjamin]

• Limited authority to operate 71-76 seat DCI jets, provided that no pilot on the
current seniority list (Troy Kane and above) is placed on furlough. This

protection is not subject to a force majeure clause.

 

[h25b]

Agreed... This TA should never even make it to a vote. Scope was the great ALPA screw up that helped get us in to this mess to begin with. Any concessions along that line should be non-negotiable.

 

[HarryParatestes]

It will be ratified. 50.1%. Guys are scared of losing their jobs forever.

 

[HarryParatestes]

"B" scale

Get ready "B" scale is coming back for everybody.

 

[lowecur]

The scope on the limited number of 70-76 seaters for DCI is there for one reason and one reason only....................MERGER WITH NWA. NWA will either get what it wants from DL through liquidation, or they will get them through the merger channel. No way for DL to survive on it's own.

imp:

 

[filejw]

NWA guys would like to know is that a 14% pay cut from the pay rate that is in effect now?I am unfamiliar with LOA #46.

 

[Heavy Set]

The scope on the limited number of 70-76 seaters for DCI is there for one reason and one reason only....................MERGER WITH NWA. NWA will either get what it wants from DL through liquidation, or they will get them through the merger channel. No way for DL to survive on it's own.

imp:

And you used to say that UAL would be liquidated. You have no credibility and most people on this board either ignore you or just laugh at your contributions.

I think Delta mainline pilots should agree to "competitive" wages for both the E170 and the E190 and then renegotiate those wages years down the line. Air Canada mainline pilots fly both types - why shouldn't Delta pilots so long as their wages on those aircraft are competitive? Scope should not be a "cost" issue if you renegotiate the wages to meet the competitive cost threshold. Scope is a bargaining issue - not necessarily a cost issue. At the very least, displaced Delta pilots should be given the left seat on any incremental aircraft - haven't we seen that before at MDA/USAirways? Instead, they are offered "preferential" hiring - so, they will be offered right seats on a CRJ at $19/hr.? Gee, thanks for being so generous with your once-loyal employees... That's a joke.

NWA is in a worse position than Delta - its wage levels for 76 seaters will have no major strategic impact on the likelihood of any merger. If they want to merge they will. It is a small detail in the overall scheme of things and the Delta management is just attempting to squeeze more out of the already battered Delta pilot group. It is very clear to everyone except the senior Delta pilots who will not be impacted by scope issues in their 777s.

I would vote this TA down. Vote NO!!!!

 

[AA717driver]

NWA guys would like to know is that a 14% pay cut from the pay rate that is in effect now?I am unfamiliar with LOA #46.

The current pay quoted on airlinepilotcentral.com shows 12-yr. MD88 CA pay at $138.00/hr.

14% of that would be $19.32 so the new rate would be $118.68. At 80 hours that would work out to around $115k/yr.

Please correct me if I'm wrong.TC

 

[atlcrashpad]

$19/hr is what most Regional guys start out being paid. Do you think that someone on furlough deserves more? $19/hr is 19 above Zero. When you are on furlough, you don't get paid. Just because you were hired at a Major carrier doesn't mean you're any better than someone hired at a Regional. Flow agreements are great if used. Some pilot groups refused to accept any flow agreements. Flows work both ways.

 

[formerdal]

The 14% reduction IS the current payrate. The reduction is off of letter 46 payrates. Basically payratees will remain status quo.

 

[filejw]

AA, Thanks I hope you are wrong.I did that computation already and am hoping LOA#46 is something higher to start with.Our guys are using pay comparisons to make a decision on our TA. Thanks

 

[800Dog]

The 14% reduction IS the current payrate. The reduction is off of letter 46 payrates. Basically payratees will remain status quo.

What he said.

 

[AA717driver]

Well, that's good. At least AA/APA has a place to start from now... TC

 

[lowecur]

And you used to say that UAL would be liquidated. Don't recall that one, but since your memory is so good perhaps you can retrieve an archive for me. While you're at it, I believe the last post I had regarding that subject was an AMR/UAL merger. Pull that one too, as you must give equal time to all my pts of view. You've no credibility and most people on this board either ignore you or just laugh at your contributions. Well a little luv is better than no luv at all. Just what horse do you have in this race? At least I need to support my family with ERJ stock. You look to be either a furloughed pilot with too much junk in his trunk, or a retired Eastern MEC.

I think Delta mainline pilots should agree to "competitive" wages for both the E170 and the E190 and then renegotiate those wages years down the line. Air Canada mainline pilots fly both types - why shouldn't Delta pilots so long as their wages on those aircraft are competitive? You sure like to compare scopes with the froggies. Don't forget they have a very socialized infrastructure that gives them much better benefits that are not included in their contract. Scope should not be a "cost" issue if you renegotiate the wages to meet the competitive cost threshold. It's all cost at the end of the day. Do you really believe DL is not going to replace a ton of MD & Boeing flying with 190/195? Just what will the cost be to the pilots on that? Scope is a bargaining issue - not necessarily a cost issue. At the very least, displaced Delta pilots should be given the left seat on any incremental aircraft - haven't we seen that before at MDA/USAirways? Instead, they are offered "preferential" hiring - so, they will be offered right seats on a CRJ at $19/hr.? Gee, thanks for being so generous with your once-loyal employees... That's a joke.

NWA is in a worse position than Delta (not economically)- its wage levels for 76 seaters will have no major strategic impact on the likelihood of any merger. If they want to merge they will. It is a small detail in the overall scheme of things and the Delta management is just attempting to squeeze more out of the already battered Delta pilot group. It is very clear to everyone except the senior Delta pilots who will not be impacted by scope issues in their 777s.

I would vote this TA down. Vote NO!!!!

We'll know by the beginning of June.

imp:

 

[filejw]

Thanks ...........

 

[CapnVegetto]

It'll pass in the low 50% range. Every single TA that every major pilot has bitched about up to this point has passed in that range. This one will be no different.

 

[gkrangers]

It'll pass in the low 50% range. Every single TA that every major pilot has bitched about up to this point has passed in that range. This one will be no different.

The only question now is who's next?

 

[surplus1]

At the very least, Delta pilots should be given the left seats on any INCREMENTAL E170/CR9 aircraft. E190s should be flown by mainline like they are at JetBlue and USAirways/AWA.

You're completely off your rocker!

First -- except for a company like Skywest (non-union), there are CBA's in place at all regionals that protect the seniority rights of the pilots employed at those airlines. I imagine that you have similar protections in your contract, wherever you work (unless you are non-union). Those contracts prevent such activity.

If I were dispaced from my airline would you allow me to come to your airline in the left seat of your "new" equipment? If not, why not?

Second - Any pilot group (regional or mainline) that would give up their seniority and allow it to be "stolen" in that way, is a collection of fools! Yes, I know that some groups have "agreed" to do that (having been coerced by their own union). I'll say it again; they are fools.

Maybe I'm wrong but I do not think there is any pilot at my airline that would ever agree to such a concept. Mutual preferential hiring is not a problem for the simple reason that who is hired by the airline is a management right. Abrogation of seniority is NOT a management right; and it dam* sure is not the right of a union to negotiate anything like that against its own members.

Anyone that would permit his seniority to be abrogated in favor of a foreign pilot group is stupid in the extreme. Any pilot group that seeks to abrogate the seniority of another pilot group is a thief, plain and simple and morally decadent on top of it.

Whether or not this TA is good for Delta pilots or not is a separate issue for them to decide however they please and that doesn't bother me any.

However, the idea that some of you people have that you can just walk in and roll over somebody's seniority because YOU think it's in YOUR best interest is absurd. When your labor union, which represents both groups, is willing to push for that, it sucks, and it is also engaged in illegal activity. Illegal -- as in violation of the law.

You people are just incredible.

 

[Flip Conroy]

When your labor union, which represents both groups, is willing to push for that, it sucks, and it is also engaged in illegal activity. Illegal -- as in violation of the law.

You people are just incredible.

Speaking of "incredible", I guess you have the power to simply declare something "illegal--as in violation of the law" just by proclaiming it so. Just because YOU say so simply doesn't make it true. NO court has made this determination and your so-called lawsuit will prove you wrong.

Your arrogance is beyond that of ANY "mainline pilot" which you so vehemently accuse of the same thing. In fact, it is beyond laughable how you do exactly that of which you so contemptuously accuse others.

Yep, "incredible" is exactly the word I would use for it. Maybe that and pathetic.

 

[General Lee]

You're completely off your rocker!

First -- except for a company like Skywest (non-union), there are CBA's in place at all regionals that protect the seniority rights of the pilots employed at those airlines. I imagine that you have similar protections in your contract, wherever you work (unless you are non-union). Those contracts prevent such activity.

If I were dispaced from my airline would you allow me to come to your airline in the left seat of your "new" equipment? If not, why not?

Second - Any pilot group (regional or mainline) that would give up their seniority and allow it to be "stolen" in that way, is a collection of fools! Yes, I know that some groups have "agreed" to do that (having been coerced by their own union). I'll say it again; they are fools.

Maybe I'm wrong but I do not think there is any pilot at my airline that would ever agree to such a concept. Mutual preferential hiring is not a problem for the simple reason that who is hired by the airline is a management right. Abrogation of seniority is NOT a management right; and it dam* sure is not the right of a union to negotiate anything like that against its own members.

Anyone that would permit his seniority to be abrogated in favor of a foreign pilot group is stupid in the extreme. Any pilot group that seeks to abrogate the seniority of another pilot group is a thief, plain and simple and morally decadent on top of it.

Whether or not this TA is good for Delta pilots or not is a separate issue for them to decide however they please and that doesn't bother me any.

However, the idea that some of you people have that you can just walk in and roll over somebody's seniority because YOU think it's in YOUR best interest is absurd. When your labor union, which represents both groups, is willing to push for that, it sucks, and it is also engaged in illegal activity. Illegal -- as in violation of the law.

You people are just incredible.

First of all, you don't abrogate a seniority list, you would still have a bottom number, but just sit in the left seat. It could be done, and has been done in the past. Even AA does that with their furloughed pilots at Eagle. They start in the left seat, but are junior to the Eagle pilots.

I doubt that could be done at Comair or ASA/SkyWest, because the pilots would revolt, but Mesa or CHQ could be tempted, and Mesa did it before for USAir. (so did PSA) IF Delta stated in future feed contracts that any furloughed pilot at DL would have to be hired into the left seat in a NEW airplane, it would field a couple carriers, who are interested in MONEY and not their employees. But, I honestly doubt that will happen.

I think there will be some growth and the current furloughed pilots will be recalled eventually. But, I will vote NO anyway because I think they (Dalpa) were weak on the scope section in general.

And Surplus, one more thing, our union negotiates for each of us, but they negotiate with Delta directly for us, and you negotiate with Comair only, and then your management negotiates with DL. You do NOT negotiate with DL for anything--you negotiate with COMAIR. IT is too bad Comair didn't negotiate their own scope with DL, and maybe you should have done that with Comair yourselves after your strike, instead of going for the money. Big mistake. Big. Back then you could have gotten your own scope for DL feed since CHQ and Freedom hadn't joined yet, but nope, you didn't.


Bye Bye--General Lee

 

[labbats]

First of all, you don't abrogate a seniority list, you would still have a bottom number, but just sit in the left seat. It could be done, and has been done in the past. Even AA does that with their furloughed pilots at Eagle. They start in the left seat, but are junior to the Eagle pilots.

Ask anyone at Eagle how well this works. It's not something to be imitated.

 

[FlyBoeingJets]

It'll pass in the low 50% range. Every single TA that every major pilot has bitched about up to this point has passed in that range. This one will be no different.

I bet the Captains vote yes. I bet more than a few FO's will vote yes if they feel Captain is around the corner.

Sorry General. I think its going to pass too. Not enough FO votes to turn it down. I'm thinking, amongst those that vote, it will pass with a 60-70%. I wonder how many will fail to vote.

 

[SkyWench]

i belive that the 14% is on top of the 32% that was already given. correct me if im wrong.

 

[N2264J]

First of all, you don't abrogate a seniority list, you would still have a bottom number, but just sit in the left seat.

Brain damage.

Of course this is an abrogation of the seniority list.

 

[General Lee]

Brain damage.

Of course this is an abrogation of the seniority list.

I mean number wise. You don't come in and assume a NUMBER that someone else had. Also, guys at Eagle would do it for new airplanes also, which wouldn't displace anyone. Don't worry, I don't see that happening.

Bye Bye--General Lee

 

[General Lee]

i belive that the 14% is on top of the 32% that was already given. correct me if im wrong.

Correct, but we have had that 14% additional pay cut since December of last year. It was a temporary agreement, that turned into a full time agreement. No additional pay cuts after that, and actually a small 1.5% pay raise Jan 1st 07 if this TA passes.


Bye Bye--General Lee