What Delta Really Wants.

[AAflyer]

What Delta really wants.


Delta managements proposed changes -

Section 1 Scope

Up to 200 79 seat jets at the regionals.


Section 3 Compensation

19% pay cut from book rates
[777 12th year rate ~ $175, 767 12th year rate ~ $147, S80 12th year rate ~ $130]


New pay rates for 100 - seater
12 year Ca $88.93 FO $60.74

Delete International and Night pay

Profit sharing improved to pay 15% payout from first dollar of profit and 20% on pre-tax income over $1.5B

Delete stock option plan


Section 5 Lodging and Expenses

Per Diem

Dom $1.80
Int $2.05


Section 7 Vacation


Vacation day 2:45

Eliminate fifth and sixth weeks of vacation

New accrual rate:

Year 1-8 2 weeks
Year 9-15 3 weeks
Yea 16 and up 4 weeks


Section 12 Hours of Service

Delete duty period average

Duty period minimum 3:00

Delete duty period credit

Reduce rotation credit to 1 for 4


Section 14 Sick Leave

Sick leave provides full pay/credit for first 20 hours of sick leave and then 60% pay and full credit for hours used therafter


Section 21 Furlough Recall

Reduce furlough pay

Eliminate scheduling restrictions when pilots on furlough


Section 22 Filling of Vacancies

First Officers in Delta 100 seat operation can only bid to Delta 100 seat Captain positions

Increase category freeze from 24 months to 36 months


Section 25 Medical and Dental

Pilots who retire after September 01, 2005 will have access to retiree healthcare at 100% of costs.


Section 26 Retirement

Hard freeze of DB plan effective December 31 , 2005

Eliminate 401K contributions


Section 28 Duration

December 31, 2010



Excerpt from September 20, 2005 letter to Delta pilots:

On September 1, management informed us that the lump sums payable to the 202 pilots
who retired September 1 will create a liquidity shortfall (as defined above) and trigger a
liquidity shortfall contribution. If the company fails to make this required contribution,
the plan will be prohibited from paying lump sums unless and until a future quarterly
calculation reveals that the plan no longer has a liquidity shortfall. The timing of this
prohibition will depend on when the lump sums are paid to the September 1 retirees.
Towers Perrin has determined that if all the lump sums for September 1 retirees are paid
in the month of September, then the plan will have a liquidity shortfall as of September
30. This would trigger a liquidity shortfall contribution, due on October 15, and the plan
will be prohibited from paying any lump sums for pilots retiring October 1 and beyond
unless the Company makes the required contribution or a future quarterly calculation
reveals that the plan no longer has a liquidity shortfall. Conversely, if none of the lump
sums for September 1 retirees are paid until October, then the plan will not have a
liquidity shortfall as of September 30, no liquidity shortfall contribution will be due
October 15, and lump sum payments could continue through the next quarter. In that
case, however, the plan assets will be reduced by future lump sum payouts, likely leading
to a liquidity shortfall as of December 31. At this time, the Company has stated that it
intends not to make upcoming plan contributions.

Historically, retiring pilots have received their lump sum payouts in approximately 4-5
weeks. Management today is faced with the dilemma of when to pay the September 1
retiree lump sums. Although this is the plan Administrative Committee’s decision, the
Committee decided to turn this decision over to an outside group. They have hired
Fiduciary Counselors, Inc., as an independent fiduciary, to make the decision for them.
There are at least four possible scenarios for Fiduciary Counselors, Inc.’s decision:

1. Pay all lump sums in September
2. Pay enough lump sums in September to trigger a liquidity shortfall as of
September 30
3. Pay all lump sums in October
4. Allow the lump sums to be paid on a normal basis.

The first scenario obviously affects the September 30 quarterly calculation, and unless
the Company makes a large liquidity shortfall contribution on October 15, future lump
sum payouts would be suspended unless and until a future quarterly calculation reveals
that there is no longer a liquidity shortfall.

The second scenario also affects the September 30 quarterly calculation, and unless the Company makes a small liquidity shortfall contribution, future lump sum payouts would be suspended unless and until a future quarterly calculation reveals that there is no longer a liquidity shortfall.

The third scenario would seem to preserve lump sum payouts at least until the end of December.

The fourth scenario may leave the outcome uncertain until on or after September 30, and
would leave pilots contemplating early retirement on October 1 with great uncertainty as
to whether their lump sums will be available.

If lump sum payments are suspended, and a future quarterly calculation reveals that there
is no longer a liquidity shortfall, then lump sum payments will resume. In that case, lump
sum payments will be made not only to future retirees, but also to each pilot who had
previously retired and elected a lump sum but was not paid a lump sum due to a liquidity
shortfall (their lump sums will be adjusted for monthly payments made in the interim).
At the very least, pilots contemplating retirement effective on or after October 1 need to
understand there is a significant likelihood that a lump sum payment will not be available
upon their retirement.

 

[737 Pylt]

Our new logo:

Delta Airlines, the lowest paid of the majors!!
BTW, AA, how did you get a hold of this??
737
agressively working on a new plan A!

 

[CitationLover]

heres the law. they're trying to avoid paying a tax on the shortfall (a tax that is basically throwing money away which they do not have).

http://www4.law.cornell.edu/uscode/html/uscode26/usc_sec_26_00004971----000-.html

this one shows why lump sums can't be paid out during a liquidity shortfall (1056(e)(2))

http://www4.law.cornell.edu/uscode/html/uscode29/usc_sec_29_00001056----000-.html

 

[AAflyer]

Our new logo:

Delta Airlines, the lowest paid of the majors!!
BTW, AA, how did you get a hold of this??
737
agressively working on a new plan A!

Our union posted it on the ORD domicile blast. AA is pretty much the last man standing in regards to traditional retirement (A and B fund), and traditional work rules. You can bet all eyes are on you and NWA and what we can expect, or what we need to do to stay competitive.

We are supposed to open sect 6 next spring. A great time for it>>


God Luck Delta Pilots.

AA

 

[michael707767]

We are supposed to open sect 6 next spring. A great time for it>>


God Luck Delta Pilots.

good luck to you. My humble opinion, with a few small changes this will be TA'd and will pass a vote.

 

[imacdog]

With the filling of vacancies section, does that mean that Delta 100 seat FOs are able to bid FO on larger aircraft, or is 100 seat Captain the only position they can progress to?

 

[michael707767]

With the filling of vacancies section, does that mean that Delta 100 seat FOs are able to bid FO on larger aircraft, or is 100 seat Captain the only position they can progress to?

Not sure, but I think it means that an FO on the 100 seater can only bid up to Capt on the 100 seater. They don't want a new hire down the road to go 190 FO, 737FO, then 190 capt. They are trying to cut down on training events. Plus probaby quicker and easier to take a guy/gal straight from the right seat on the 190 to the left seat, vs training him/her on the 190 after flying something else.

Doesn't JetBlue have something saying there will be limited movement from the E-190 to the Airbus? Delta management is not original enough to come up with something like that on their own. Look at the pay rate. Its essentially the JetBlue rate.

 

[dtfl]

So how do you leave the 190 to go to a 73 or 76?????????

 

[Tim47SIP]

Some good news?

Up to 200 79 seat jets at the regionals.

I wonder if this is a 90 seater with first class? At least they are not talking about the 100 set aircraft at the regionals, but the pay is very comparable to the current regional scale. No number though of aircraft in the 100 seat range.

I wonder if this is just the first round of attacks.

Reduce furlough pay

What exactly does this mean? Do the furloughed guys get paid? Just curious.

 

[michael707767]

So how do you leave the 190 to go to a 73 or 76?????????

you upgrade to captain on the 190, and then after your lock in time, you can bid off.