DELTA’S ENHANCEMENT PLAN
INDUSTRY LEADER OR FOLLOWER?


Lately we’ve heard lots of rumors and purposefully leaked information about what we can expect to be receiving from Delta for our long shared financial suffering. You have all read newspaper articles and seen excerpts from staged in house interviews between carefully chosen employees and company executives. We have been informed that we will soon, individually be receiving DVDs and personal letters giving us more details about this package.

There’s nothing wrong with being rewarded for our prolonged monetary pain and we all look forward to some relief but why are the specifics of the package not being release all at once?

While we are being told by Delta Board Council people that our profit sharing will be much better than other carriers, it is significant to point out that virtually all of the other Union represented airlines have already paid out profit sharing checks, bonuses and proceeds from the sell of unsecured claims. We talk a good game but where’s the beef?

Northwest Airlines, which entered bankruptcy the same day we did, has already shared with its employees 32.6 million in profit sharing or about 1000$ per person. Their profit sharing excluded bankruptcy reorganization costs, which is why they had money to give out this year. Northwest has also distributed checks from the sale of unsecured equity; one significantly large check 5 weeks ago and another to follow in a couple of weeks. All of this made possible because of union negotiations during bankruptcy.

Delta is now taking steps to respond in kind. They are simply reacting to the realities of the market place and will not be able to compete with the other carriers without a relatively stable, happy workforce. In the past, in order to keep the unions at bay, Delta would match any pay and benefits that the union represented airlines were guaranteeing. It was a safe, easy, happy existence we had carved out for ourselves, being de facto union members without actually paying any dues. We would simply let the other carriers’ union negotiating teams do the heavy lifting, and we would reap the benefits.

When everything came crashing down around most airlines a couple of years ago and cuts had to be made, union represented carriers got concessions from their workers. Delta, on the other hand, just took what it thought was necessary without our say or input because we had no contract. Had we been union and had a contract, we would be reaping the rewards the union people already have. The money would be in our pockets, not hidden in Delta’s promises.

Now that everyone else is getting healthy and taking care of their employees who have guarantees and contracts, Delta has no choice but to respond. When it comes to employee compensation, they are not industry leaders-they are followers.

You should know that, without a doubt, our recent union activity has played a significant role in any partial reimbursement of our pay (it’s not a raise until we get the original 20% back!) But activity alone is not enough. We still have the worst sick/OJI plan. Our new 401k matching pension plan pales in comparison to the IAM represented carrier’s National Pension Fund. We have little more than catastrophic medical insurance. Have you been to the Doctor lately to see how much you pay for tier 2, 3 and 4 medications?

You have seen what they did to us without a contract; we will not survive another one of these economic downturns without real representation. Let’s finish the job of organizing to stabilize and improve what benefits and pay we have. Let’s focus upon what we don’t have. Our many management teams of the past have proven that trust, without a contract in writing, is an assured guarantee of financial disaster.