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Delta Pilot Union Leaders OK Concessions  
User currently offlineN839mh From United States of America, joined Mar 2001, 373 posts, RR: 0
Posted (8 years 5 months 3 days 3 hours ago) and read 5037 times:

Report: Governing board's 12-1 vote sends package to 6,000 rank-and-file for final approval.
April 22, 2006: 12:33 AM EDT


NEW YORK (CNNMoney.com) - Leaders of the union representing Delta Air Lines' pilots have overwhelmingly endorsed a tentative concessions deal aimed at getting the carrier out of bankruptcy, the Wall Street Journal reported late Friday.

The paper, quoting an Air Line Pilots Association message to its members, said the 13-member governing board voted 12-1 to send the accord to its 6,000 members for a final vote, which is slated to be completed by May 31.

The $280 million-$290 million concession package, agreed to a week earlier, includes a 14 percent pay cut, the Journal said. It also gives the union a claim in the bankruptcy proceedings worth about $2.1 billion and a $650 million note should Delta, as expected, terminate its pension plan with the pilots, the paper said.

The agreement avoided a ruling from a three-judge arbitration panel that could have agreed with Delta's request to reject the existing union contract that would have imposed terms on the pilots. That would probably have led to a strike that could have permanently shut the airline


Solodude!
52 replies: All unread, showing first 25:
 
User currently offline727LOVER From United States of America, joined Oct 2001, 6437 posts, RR: 17
Reply 1, posted (8 years 5 months 3 days 1 hour ago) and read 4996 times:

Another hurdle crossed. I imagine DL took a large revenue hit in the 1st quarter.


Listen Betty, don't start up with your 'White Zone' s*** again.
User currently offlineH53Epilot From Israel, joined Mar 2004, 177 posts, RR: 2
Reply 2, posted (8 years 5 months 2 days 18 hours ago) and read 4895 times:

Quoting 727LOVER (Reply 1):
imagine DL took a large revenue hit in the 1st quarter.

And with oil at $75 a bbl and climbing, the losses will increase. Many pundits saying $5.00 a gallon by mid-summer. Uggh. IMO, the pilots gave too little too late.

[Edited 2006-04-22 16:30:31]

User currently offlineWorldTraveler From , joined Dec 1969, posts, RR:
Reply 3, posted (8 years 5 months 2 days 18 hours ago) and read 4871 times:

We haven't really seen the impact of their restructuring yet so I'm not sure I'd say that this won't work... DL had the ability to force the issue if they knew they could never make a plan work w/ the amounts being offered by DALPA. I think DL managment, like AA's, realizes you can't continue to expect employees to bear the brunt of conditions beyond their control as long as there is some hope of viability for the airline.

There is no doubt that the airlines can cope with the current fuel situation through the summer - demand is strong and pricing power has returned. The question is what happens after Labor Day and if the Gulf will get whacked by multiple hurricanes again this summer resulting in major fuel disruptions and further price hikes. You can bet, though, that all airline managements are modeling that scenario.


User currently offlineFlyPNS1 From United States of America, joined Nov 1999, 6608 posts, RR: 24
Reply 4, posted (8 years 5 months 2 days 18 hours ago) and read 4863 times:

Here's a synopsis:

• 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.
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



• 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

• Change duty period minimum
• Delete duty period average
• Delete duty period credit (1 for 2)
• Reduce rotation credit (1 for 3.5)
• Delete OJI
• Increase category freeze
• 100 seater upgrade restrictions
• Change trip assignment ladder
• Reserves assignment up to ALV+15
• Delete pay back X-days for reserve
• Reduce inverse assignment pay
• Establish flight attendant satellite base parking without benefit to pilots


User currently offlineOttoPylit From , joined Dec 1969, posts, RR:
Reply 5, posted (8 years 5 months 2 days 17 hours ago) and read 4808 times:

Was perusing the copy of the gist of the contract when I opened my email this morning, and I believe its a pretty fair and balanced contract. Here are a couple of problems I see.

1. Financial advisory fees and major ALPA costs paid by Company. Medical and Dental Benefits.

Are they implying here that the advisory fees and ALPA costs should be paid by the company, as compared to ALPA footing their own bill? Isn't ALPA a business? Don't they make their own money? I sure hope I am reading that wrong. I am also interested to know if that means the pilots get all Med and Dental benefits paid by the company, as compared to the rest of us who used to get that, and now bascially pay for most of it ourselves. If I am correct in these observations, I see it as being wrong.


2. On a rolling 3 year basis, a pilot will have 240 hours at full pay and the rest at 75% pay.

And does this mean that once you pass the 240 hrs of paid sick time(which I don't agree with. why is it that everyone else at Delta gets roughly a week of paid sick time?), any other time after that is at 75%? If so, wouldn't that basically translate into, "No matter how often you are sick, your getting paid for it?" Whereas if everyone else uses up their sick time, anything beyond that is unpaid. Just hope I'm reading that wrong as well.



Other than those 2 things, I see it as a pretty fair and balanced contract. I see it as very beneficial to the company, hardly negatively affecting the pilots. Took'em long enough.


OttoPylit


User currently offlineFlyPNS1 From United States of America, joined Nov 1999, 6608 posts, RR: 24
Reply 6, posted (8 years 5 months 2 days 17 hours ago) and read 4783 times:

Quoting OttoPylit (Reply 5):
which I don't agree with. why is it that everyone else at Delta gets roughly a week of paid sick time?),

That's the upside of being in a union. You can negotiate for these types of things.

Quoting OttoPylit (Reply 5):
so, wouldn't that basically translate into, "No matter how often you are sick, your getting paid for it?" Whereas if everyone else uses up their sick time, anything beyond that is unpaid. Just hope I'm reading that wrong as well.

I believe you are reading it wrong. What it says is that over the course of 3 years you only get full pay for 240 hours of sick leave. Any sick leave that you have earned and used thereafter is at 75%. You still only get paid for the actual sick leave you have on the books.

For example, a pilot in his 9th year earns 240 hours of sick leave per year. Over three years, he would earn 720 hours of sick leave. Of that 720, 240 would be at full pay and 480 would be at 75%. Any sick leave beyond 720, would be unpaid.

Overall, I don't think the contract is too bad. However, I think the scope clause is still going to upset many pilots. My guess is that this TA will pass 55/45.


User currently offlinePeterPuck From Canada, joined Jun 2004, 323 posts, RR: 3
Reply 7, posted (8 years 5 months 2 days 17 hours ago) and read 4783 times:

Pilots can't fly with a cold.

User currently offlineH53Epilot From Israel, joined Mar 2004, 177 posts, RR: 2
Reply 8, posted (8 years 5 months 2 days 15 hours ago) and read 4682 times:

Quoting PeterPuck (Reply 7):
Pilots can't fly with a cold.

But many often do fly sick. How ironic. Gotta save up those sick days.


User currently offlineLongbowPilot From United States of America, joined Jan 2005, 577 posts, RR: 3
Reply 9, posted (8 years 5 months 2 days 15 hours ago) and read 4669 times:
Support Airliners.net - become a First Class Member!

UA was in CH11 for 3 years, DL just started, so i think the have time.

User currently offlineSkibum9 From United States of America, joined Nov 2001, 1229 posts, RR: 0
Reply 10, posted (8 years 5 months 2 days 15 hours ago) and read 4658 times:

Quoting PeterPuck (Reply 7):
Pilots can't fly with a cold.

No doubt they shouldn't fly with a cold, but many a pilot abuse the sick time poilicies and use them to supplement their vacation time. In fact, at some airlines, their union encourages the pilots to use all of their sick time in a year. I understand that being sick for a beginning of a trip cancels the entire trip, but 240 hours is a little high, in my opinion, and encourages abuse.

With regard to the scope clause, since DCI is capped at 76 seats, and there is pay rates for the EMB-190/ 195 and CRJ-900, does that mean that mainline will be flying anything greater than 77 seats?



Tailwinds!!!
User currently offlineH53Epilot From Israel, joined Mar 2004, 177 posts, RR: 2
Reply 11, posted (8 years 5 months 2 days 15 hours ago) and read 4658 times:

Quoting LongbowPilot (Reply 9):
UA was in CH11 for 3 years, DL just started, so i think the have time.

Apples and oranges. DL lost $12 billion since 2001 and is still bleeding heavily. UA quickly declared CH 11, reorganized, and has a large head start. If oil stays low, there are no 2005 style hurricanes, and they can command fare premiums for the summer, they will be in fair shape.


User currently offlineFlyPNS1 From United States of America, joined Nov 1999, 6608 posts, RR: 24
Reply 12, posted (8 years 5 months 2 days 14 hours ago) and read 4645 times:

Quoting Skibum9 (Reply 10):
With regard to the scope clause, since DCI is capped at 76 seats, and there is pay rates for the EMB-190/ 195 and CRJ-900, does that mean that mainline will be flying anything greater than 77 seats?

Yes. The EMB190/195 and CRJ900 rates are for mainline. Whether or not DL actually buys any of these planes is an entirely different issue. But if they do, the payrate has been established.


User currently offlineAlitalia744 From United States of America, joined Mar 2000, 4750 posts, RR: 44
Reply 13, posted (8 years 5 months 2 days 14 hours ago) and read 4619 times:

Quoting H53Epilot (Reply 11):
Apples and oranges. DL lost $12 billion since 2001 and is still bleeding heavily. UA quickly declared CH 11, reorganized, and has a large head start. If oil stays low, there are no 2005 style hurricanes, and they can command fare premiums for the summer, they will be in fair shape.

Except UAL's post-Chap11 plan called for oil at significantly lower rates than it is currently trading at.

DL's plan was based on $70+/pbl...



Some see lines, others see between the lines.
User currently offlineOOer From United States of America, joined Oct 2005, 1466 posts, RR: 2
Reply 14, posted (8 years 5 months 2 days 14 hours ago) and read 4606 times:

So I guess this means we can see Skywest and ASA flying the CRJ705 really soon!!!!?????

User currently offlineH53Epilot From Israel, joined Mar 2004, 177 posts, RR: 2
Reply 15, posted (8 years 5 months 2 days 14 hours ago) and read 4606 times:

Quoting Alitalia744 (Reply 13):
Except UAL's post-Chap11 plan called for oil at significantly lower rates than it is currently trading at.

DL's plan was based on $70+/pbl...

Is that spelled out anywhere or is it a rumor? I didn't know that-thanks.


User currently offline767-332ER From United States of America, joined Mar 2001, 2030 posts, RR: 10
Reply 16, posted (8 years 5 months 2 days 14 hours ago) and read 4583 times:

Quoting OOer (Reply 14):
So I guess this means we can see Skywest and ASA flying the CRJ705 really soon!!!!?????

That's what it sounds like to me. Maybe the Embraer 175 is in sight also!!!!

Glad that everything was worked out. It seems fair at the current position in time, and hopefully the sacrifices that everyone has been given will not go unoticed and will be rewarded later on when the company returns to profitability.



Twinjets...if one fails, work the other one twice as hard!!!
User currently offlineAlitalia744 From United States of America, joined Mar 2000, 4750 posts, RR: 44
Reply 17, posted (8 years 5 months 2 days 13 hours ago) and read 4558 times:

Quoting H53Epilot (Reply 15):
Is that spelled out anywhere or is it a rumor? I didn't know that-thanks.

Look through the DTP and UAL's version and you'll see what their respective plans were based on.



Some see lines, others see between the lines.
User currently offlineWorldTraveler From , joined Dec 1969, posts, RR:
Reply 18, posted (8 years 5 months 2 days 13 hours ago) and read 4544 times:

Thank you, FlyPNS1. I don't think there will be too many people that will find this proposal terribly objectionable.

As I predicted and I am glad to see, DL is able to agree to a plan that doesn't result in further wage cuts and provides some minimal increases which can become much higher based on the company's profitability. That's the way pay raises should be.

As for the RJ issue, these are really very small steps forward for DL unless they grow the mainline fleet. They could well put 64 seats in a CR7 in a 2 class config as some airlines have done but 76 seats in a CR9 will provide lots of legroom. Either way, I think you'll see 2 class RJs at DL soon.

Glad to see the provision for the EMB195. How does DL's proposed rates compare w/ B6's rates and OH/EV's rates for the CR7? Since the 195 would be the entry level airplane, the lower seniority rates are probably more important and I would like to know where 1st year captains and first officers start.

I think DL's 1st priority among regional carriers is to salvage Comair and I
think they will give any larger RJs to them if they can get their costs down - and it could provide a guaranteed revenue stream that would be necessary for them to be successfully sold off. Since DL and OH probably won't be able to place an order until one or both are out of BK, DL may have to order some early CR705s through Skywest/ASA.

As for the 100 seater, the proposed rates for the EMB look quite a bit better than for the 737-700 which is heavier and larger than what DL really wants so I think you could well see an EMB 190/195 order soon after DL's exit unless Boeing can quickly put together a proposal for a 737NG lite. DL's stature in Brazil would certainly increase if it became a major EMB operator instead of just having them in contract fleets.

Overall, I think the agreement does lay the path for DL to grow while managing DL pilot costs. DL pilots will still fare quite well compared to those of any other recently bankrupt carrier and there are strong incentives to grow. If rumors that DL is shopping for MD80s and 757s are true and if EMB195s are ordered and start arriving, the CR705 fleet won't stay small for long. DL will have a strong position and the aircraft with which to grow its domestic system.

And as for UA vs DL comparisons, DL's costs have been lower than UA's for some time and still are as of the last quarter. Further, DL has reportedly cut a substantial portion of its revenue gap vs. other carriers according to some
analysts. That is pretty impressive six months into bankruptcy and before most of the plan (transatlantic growth, Song restructuring) has had time to take effect.

DL does have a bright future and I'm glad the DL pilots have chosen to do what it takes to return the company to its position of leadership in the industry.


User currently offlineMD88Captain From United States of America, joined Nov 2001, 1330 posts, RR: 20
Reply 19, posted (8 years 5 months 2 days 12 hours ago) and read 4516 times:

I think DAL would sell Comair tomorrow if there was a viable offer. The regional airliners will be affected by the "lowest bidder" curse for the forseeable future. And it would appear that Mesa can underbid just about anyone. No one seems to care that you get what you pay for. Except passengers.

Comair still has not reached cost structure that approaches Mesa. And who knows what will come out of the Northwest situation. Bottom line is that employees at Comair are scratching their heads wondering what hapened.


User currently offlineMD88Captain From United States of America, joined Nov 2001, 1330 posts, RR: 20
Reply 20, posted (8 years 5 months 2 days 12 hours ago) and read 4500 times:

Regarding the DALPA/DAL TA and it's sick leave provisions, It looks pretty OK. I've never used 240 hrs of sick leave over a 3 year period. And it was my intention to vote "No" on any agreement that included the company's initial demands on sick leave. That initial agreement would have forced pilots to fly sick. That is a legitimate safety issue. Plus, I hate caring the other guys load because he did not stay home in bed. Ask any lawyer whether sick pilots in the cockpit is a good idea. I cannot imagine the liability of that assine proposal that DAL wanted to make us eat.

I never abuse sick leave. Pilots who do piss me off. But if I am sick, I do not fly. This agreement addresses the need to keep sick pilots out of the cockpit and I think it does so adequately. And 240hrs at full pay and then 75% after protects the guy who has a broken leg, prostate surgery, and arortic valve replacement all in the same month.


User currently offlineB777ER From United States of America, joined Jun 2004, 548 posts, RR: 0
Reply 21, posted (8 years 5 months 2 days 12 hours ago) and read 4485 times:

Here is a little bit more on the MEC approval. Voting starts in mid-May and will be open for 15 days. Thats just freaking great. I am due to travel on DL on May 28th and again on Juve 4th. So if they vote it down..I am royally screwed! It will be too late to rebook as I am sure every other carrier will be full over the Memorial Day weekend. The only hope I have is that the MEC voted 12-1 so it was not even a close vote.

Delta pilots union ratify tentative agreement
Posted 4/21/2006 11:44 PM ET

ATLANTA (AP) — The leaders of the pilots union at Delta Air Lines Inc. have ratified a tentative agreement, endorsing concessions that include an initial 14% wage cut and assurances the union won't block any company effort to terminate its pension plan.

The vote by the leadership was 12-1 in favor of ratification, according to a memo sent late Friday to pilots, who will be asked to approve it.

The agreement was reached between the nation's third-largest carrier and union negotiators on April 14, clearing one hurdle for Atlanta-based Delta by avoiding a crippling strike. The airline also has a hub in Salt Lake City.

Now comes what could be the harder part — getting the airline's 5,930 pilots, who came to the brink of a walkout, to approve the deal.

Union leaders had been meeting since Wednesday in New Orleans to discuss the agreement.

The deal represents "a concessionary agreement," Lee Moak, chairman of the union's executive committee, told pilots.

But, he said, "Our goal throughout the Chapter 11 process has been to reach a comprehensive consensual agreement that will lead to our working for a profitable airline with long-term viability that protects the major terms of our (contract) and that provides strong returns for our sacrifices. I believe this agreement meets that goal."

The balloting will begin in mid-May and will remain open for 15 days.

Delta spokesman Bruce Hicks said the company would release a statement Saturday.

According to the agreement obtained by The Associated Press, effective June 1, pilots' composite hourly pay rates will be reduced 14% from the composite hourly pay rates that were in effect on Dec. 14.

But on Jan. 1, composite hourly pay rates will be increased 1.5%. Further pay increases are included in later years of the revised contract.

Delta, which filed for bankruptcy in September, has said its pilots who worked all of last year made an average of $157,000.

The agreement also says that in the event of termination of the Delta Pilots Retirement Plan, the pilots' defined contribution plan will be amended to provide a single company contribution rate equal to a flat 9% of earnings.

The total value of the concessions was not immediately able to be determined because of the complexity of the agreement.

Before the tentative agreement was reached, Delta had been seeking to void its contract with its pilots so it could impose up to $325 million in annual concessions. The union had threatened to strike if the contract was rejected by an arbitration panel.

The panel decision is now on hold with the tentative agreement, but it could resurface if the rank-and-file pilots reject the accord.

Delta's pilots previously agreed to $1 billion in annual concessions, including a 32.5% wage cut, in a five-year deal in 2004. But Delta, which has imposed pay cuts on other employees, said it needed more from its pilots.


User currently offlineB777ER From United States of America, joined Jun 2004, 548 posts, RR: 0
Reply 22, posted (8 years 5 months 2 days 12 hours ago) and read 4475 times:

And DL's statement that was released today:


ATLANTA, April 22, 2006 – Delta Air Lines (Other OTC: DALRQ) today confirmed that the Air Line Pilots Association (ALPA), the union representing the airline’s approximately 6,000 pilots, has ratified the tentative agreement and has agreed to present it to its membership for ratification by May 31, 2006.

“This is a reflection of a shared commitment to work together to help deliver the cost savings the company needs to successfully emerge from bankruptcy and to become the fierce competitor we know we can be,” said Gerald Grinstein, Delta’s chief executive officer.

“Together we are making real progress on our business plan and this agreement represents an important piece of our restructuring puzzle. It also represents additional hardship for our pilots and I appreciate their consideration of something that is vitally important to the future of this company.”

The tentative agreement’s terms and conditions provide the necessary pilot savings through a combination of changes to pay, benefits and work rules.

Because the company is reorganizing through the Chapter 11 process, the tentative agreement is subject to the U.S. Bankruptcy Court’s approval. If ratified by the pilots and approved by the Court, the agreement’s terms and conditions will be effective June 1, 2006 and become amendable on Dec. 31, 2009.

“We believe the structure and key elements of this agreement provide the competitive framework necessary for the company’s successful reorganization,” said Edward H. Bastian, Delta’s executive vice president, chief financial officer and head of the company’s in-court restructuring efforts. The four-year deal provides approximately $280 million in average annual pilot labor cost savings.

The company’s business plan had called for $325 million in annual pilot labor savings. “We agreed to reduce our proposal and make improvements to the overall package recognizing the likelihood the pilot pension plan would be terminated,” said Bastian.

“All Delta employees have made significant contributions to help Delta succeed, and they continue to demonstrate a level of professionalism and dedication unrivaled in this industry. Thanks to everyone’s sacrifice and continued focus on taking good care of our customers, coupled with the network and revenue improvements we are making, we are delivering real results,” Grinstein said. “We have a solid plan for the future; one that holds great opportunity for all Delta people.”

Barring any disruptions, the company is on track to achieve approximately 70 percent of its business plan’s benefits by the end of this year, with the goal of successfully emerging from bankruptcy in 2007.


User currently offlineFlyPNS1 From United States of America, joined Nov 1999, 6608 posts, RR: 24
Reply 23, posted (8 years 5 months 2 days 12 hours ago) and read 4459 times:

Quoting WorldTraveler (Reply 18):
Either way, I think you'll see 2 class RJs at DL soon.

The Shuttle America EMB170's operating for Delta already have a 2 class config.

Quoting WorldTraveler (Reply 18):
How does DL's proposed rates compare w/ B6's rates and OH/EV's rates for the CR7?

12 year Captain Rate:
DL EMB195 $112.50
DL EMB190 $95.70
US EMB190 $95
B6 EMB190 $89
OH CRJ700 $94
EV CRJ700 $86
OO* CRJ700 $78

*SkyWest has one payrate for all RJ's between 50 and 99 seats.

The DL rates are competitive with JetBlue and USAirways, the other two EMB190 operators. They aren't so good when compared with OH and EV which fly smaller planes for rates almost as high.

I doubt DL will get anymore paycuts from Comair pilots. The last cut barely passed and still hasn't been implemented because of the FA's. ASA pilots have been in contract negotiations for 4 years, but likely won't get raises. SkyWest will whipsaw them against SkyWest's own non-union pilots.

I agree that DL wants to sell Comair, but may have a tough time getting Comair's costs down.


User currently offlineWorldTraveler From , joined Dec 1969, posts, RR:
Reply 24, posted (8 years 5 months 2 days 11 hours ago) and read 4432 times:

Thanks again, FlyPNS1. I think you can almost count on an EMB order for DL mainline. Good job. What is the new 737-700 rate?

I think you can extrapolate the pilot agreement to include some provisions for non-contract personnel such as the revised profit sharing and equity goals. I am quite sure DL will not give the pilots a benefit (esp. ownership in the company) that it is not going to the other employees.

I do realize the Shuttle America 170s are 2 class but there are very few of those.

I don't think DL/OH is after any more OH pilot pay cuts. But if these rates are current, I don't think you'll see any CR7s going to OO. I thought OH pilots just agreed to some cuts and the F/As are the only ones left to have their contract reworked. Can you correct/update the OH situation?

777ER,
don't worry about your trip. Even if this proposal is voted down (highly unlikely), there are alot of steps both sides would have to go through in order for any labor action to take place. The arbitration process might have replaced the mandatory 30 day cooling off period (not sure since that was a first) but if this agreement is rejected, they will have to go back to a process that will take months at least to conclude.


25 FlyPNS1 : The OH pilots did agree to cuts and those cuts are the current rate I quoted for Comair. However, I mistakenly quoted the 18year rate for Comair, the
26 Swissy : Agree 100%, safety comes first, these the "abusers" everywhere....... and I hope that the pension issues can be solved for the future for good. Cheer
27 B777Fanatic1 : After reading that new contract and comparing new pay to other airlines 'i have realized that pilots in other countries make more than Delta pilots, i
28 H53Epilot : I wonder what management at AM makes compared to peers at DL. I'll bet it's much, much less.
29 WorldTraveler : seems to me that the economics of operating the 190/195 are very strong and much more favorable than the 732/3. It will be interesting to see what DL
30 Alitalia744 : I think you'll be fine. I just booked a flight for travel on 5/27 with a return on 6/7. Even if the pilot's vote "NO", there won't immediately be a s
31 OttoPylit : Eh, true. Of course, I always thought you should be able to accrue sick time. So many hours a month, rather than one lump amount that leaves you coun
32 H53Epilot : Much like DL lowering fares to match AirTran. US matching WN. Nothing regional about it. DL matching B6. I think DL would hire cheaper Comair pilots
33 WorldTraveler : No, DL and OH are not the same family. Related, yes. Although I believe OH employees are some of the best in the regional business, I would still rath
34 Bucky707 : I agree. I have told union reps that we are to blame for the companies request for the sick leave changes. Every time a union rep goes in and defends
35 AvConsultant : Justrnsitting back looking at things, OH future does not look promising atrnall. DL has gone around OH to grow. I question the concessionsrndependent
36 OttoPylit : Then whats with the explosion of LCC's in recent years? People were willing to sacrifice service frills for lower fares. Ever wonder why airlines hav
37 KAUSpilot : It's all fine except for the scope erosion. I expect to see it voted down simply because it allows 76 seaters at DCI. Not good.
38 H53Epilot : How would 76 seaters hurt the current seniority list at DL, especially the senior members? I expect it will pass with 80% approval.
39 KAUSpilot : Everytime you let the cat out of the bag on larger planes at DCI, it becomes nearly impossible to get those back to mainline. Everytime you allow a la
40 AvConsultant : The scope clause is the only thing ALPA has left. Work rules and pay can be cut, but scope is the one thing the unions need to protect inorder to mak
41 WorldTraveler : Scope is an issue of principle only. It doesn't affect pilots that are on the active payroll now since DL has given them furlough protection. Most pil
42 Post contains images Dl757md : Actually, it's the other way around. Any benefits offered to the non-union employees are automatically given to the pilot group. For instance any pay
43 KAUSpilot : Yeah, what's your point Dl757? You're in favor of outsourcing more pilot jobs? I'm sure you realize that this is what a regional jet is: an outsource
44 DAL767400ER : When was actually the last time mainline operated a 76-seater? Must have still been during the mainline pro years. The closest was probably the DC-9s
45 AvConsultant : If DL agreed to this, then shame on the mgt. The pilots are protected by their contract where as non-union employees have taken hits in pay for the l
46 OttoPylit : I love it when I hear this stuff about "the profession." Well, whatever your views on it, you better hang on, because its gonna happen. It may be des
47 KAUSpilot : I'm definitely dissappointed with the continual lowering of pay in the piloting profession. I'm going to do everything within my own meager power to s
48 Post contains images OttoPylit : Then hold on to your seats, because this ride has just begun. Welcome to the Walmart world, and the name of the game is to do whatever, however, just
49 WorldTraveler : Av consultant, I have to disagree with you. Employee costs are the primary costs in the airline business and based on the pilot rates, DL can fly an E
50 Post contains images Halls120 : Just who is demanding $99 cross country flights? I have seen lots of protests in the news lately, but I must have missed that particular protest marc
51 FlyPNS1 : Something isn't quite right with this story. ASA has horrible relations with its pilots. They've been locked in a 4 year battle over a new contract a
52 Post contains images OttoPylit : But do you see management trying to have them take massive paycuts or the pilots threatening to strike since they have been without a contract for 4
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