PuffDriver
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- Jun 23, 2002
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Now that it is announced, here are some details of what the Delta pilots negotiated:
A three and one-half percent equity stake in the merged Company in fully tradeable stock at the close of the merger
Annual pay raises beginning with a five percent raise on January 1, 2009 and followed by four percent raises every January 1 through January 1, 2012. On January 1, 2011, Delta pilot pay rates will exceed the Letter 46 rates, without even considering the equity each pilot will receive.
A one percent increase to the DC Plan contribution rate beginning in January 2010.
Furlough protection—with certain exceptions, no pilot may be furloughed as a result of the merger for a period from merger announcement until 24 months after the close of the merger.
An increase in the full-pay sick leave bank from 240 hours to 300 hours.
The ability for a pilot returning from disability to refill his full pay sick leave bank once every four years instead of once in a career.
An increase in 737-700 pay rates to match the 737-800 pay rates.
In return for these improvements, we would provide various modifications to our scope clause to enable Delta to proceed with the merger. For example, we would allow the Company to place the Delta code and brand on Northwest flights on an unlimited basis after the close of the merger, provide greater flexibility on minimum block hour protections during the merger process, and permit the Company to retain Northwest’s large stake in Midwest Airlines (previously purchased by Northwest Airlines) while maintaining their separate operational status.
A three and one-half percent equity stake in the merged Company in fully tradeable stock at the close of the merger
Annual pay raises beginning with a five percent raise on January 1, 2009 and followed by four percent raises every January 1 through January 1, 2012. On January 1, 2011, Delta pilot pay rates will exceed the Letter 46 rates, without even considering the equity each pilot will receive.
A one percent increase to the DC Plan contribution rate beginning in January 2010.
Furlough protection—with certain exceptions, no pilot may be furloughed as a result of the merger for a period from merger announcement until 24 months after the close of the merger.
An increase in the full-pay sick leave bank from 240 hours to 300 hours.
The ability for a pilot returning from disability to refill his full pay sick leave bank once every four years instead of once in a career.
An increase in 737-700 pay rates to match the 737-800 pay rates.
In return for these improvements, we would provide various modifications to our scope clause to enable Delta to proceed with the merger. For example, we would allow the Company to place the Delta code and brand on Northwest flights on an unlimited basis after the close of the merger, provide greater flexibility on minimum block hour protections during the merger process, and permit the Company to retain Northwest’s large stake in Midwest Airlines (previously purchased by Northwest Airlines) while maintaining their separate operational status.
