DELTA ROBBER BARONS
ONLY HALF AS GREEDY


I got my “Previewing Your Rewards” glossy brochure in the mail and was going over the details (lack of). Under stock ownership, I noticed that the top 1000 leaders will be given “restricted stock, stock options and performance stock and will vest over periods of up to three years.”

The AJC is reporting that the “Delta executives and midlevel managers will receive a 2.6 percent stake in the new Delta worth roughly $260 million, with another 1.4 percent in reserve for future rewards.” If you apply fairness to the mathematical equation, that would mean that each of them would end up with $260,000. I wouldn’t worry about these executives being egalitarian. You can rest assured that the top level executives will take roughly 90% of the $400 million in play, leaving the low level managers to fight over the leftovers.

The thing that gave me the biggest belly laugh was how fast Delta executives pointed out that this amount they were taking was only about half as large as the amount that United Airlines execs took when they exited bankruptcy. How “slim fast” of them! They really do feel our pain.

What is also interesting is how fast details seem to be changing. In Delta’s initial Joint Disclosure Statement to the bankruptcy court, only pilots were mentioned to be receiving profit sharing of the initial 1.5 billion in pre-tax income (15%) and 20% of income over 1.5 billion. Now, conveniently since our organizational efforts, the rest of us get to participate in the pre-tax income up to 15% in profit sharing, instead of the old criteria of participating in profit sharing only above and beyond profits of 1.5 billion.

Anyone can throw together a glossy brochure full of promises and future rewards when there are no written contracts that have to be abided by. Cash lump sum, profit sharing, shared rewards, pay reimbursement, retirement. The program sounds good when there are no details (except for the execs!) Those of us who have been around for these economic rollercoaster rides have heard and seen it all before.

The hard facts, however tell the truth. Without a contract, everything that is given now, can and will be taken away in a heartbeat. Delta history doesn’t lie. I am making the exact same money today that I was making for Delta in 1989, with much worse benefits and sick time. Think about that when you receive the pittance Delta is about to give you.

The following disclaimer comes with every Delta program:

“Delta reserves the right to unilaterally amend, modify or terminate all or any of its benefit plans in its sole discretion at any time for any reason. Any such amendment, modification or termination may apply to active employees, their dependents and survivors, as well as, former employees, inactive employees, retirees, disabled employees, furloughed employees and employees on leave of absence and each of their dependents and survivors…”

These are not my words, they are Delta’s words. These words pretty well cover all of us except, of course, the pilots who happen to have a contract.

When you receive your new “rewards package” this summer and if it satisfies you, the only way to secure and keep it is through a union negotiated contract. If you are not satisfied with it, the only way to improve it is by unionizing and securing a contract. It is that simple. Glossy brochures don’t pay the bills or take care of medical set backs, they don’t put your children through college, or get you a mortgage.

While we were receiving pamphlets and promises, the union represented carriers got actual rewards. These are inescapable facts not Delta Board Council generated conjectures. Whom do you really want representing you? People who produce or people who pontificate. Let’s vote in a union and get real results.