DELTANOMICS 101

DOMESTIC CAPACITY CUTS COMING…
ANDERSON TO ‘SCRUB’ INDUSTRY STANDARD PAY NUMBERS


With a recession looming, Delta is preparing to take steps to lessen the economic impact. One of these steps looks to be a decrease in flights out of two of our hubs; SLC and CVG. Whether these flights will be mainline or regional partners has yet to be announced. We are all aware of the increase in international emphasis as the domestic market weakens due to the American economic downturn.

All of the bad news seemed to come upon us suddenly and took us by surprise but we all really should have seen it coming. As this article is being written, Congress has announced a stimulus package that is supposed to put money in the hands of common American consumers allowing us to have a little more “walking around” money to spend and help chase the doldrums out of the economy.

Wasn’t it just a few short years ago that we didn’t need a handout? We made a decent living and our benefit package took the worry out of those bad moments that happen now and again. Back when more of us were Union?

Remember the old days when companies focused on what was good for their customers, providing them a quality product and in doing so, made sure that employees were happy and fairly compensated? It was a synergistic relationship that sustained itself; content employees, happy in their work providing the customer with a quality experience.

We don’t recall the moment the emphasis shifted from the employee/customer focus to what we are left with today; shareholder/investor and management enriching oriented companies. The whole goal shifted from providing a service to the paying customer, to the curious goal of maximizing the stakeholders' return on risk and investment and obscene payments to upper management. That’s a hell of a lousy way to run an airline or any other company. No wonder most airlines’ reportable numbers have been tanking for years.

Our airline has for quite some time regarded most employees as a necessary evil and have been squeezing all the money and value they could out of us. As our pay has gone down, most employees have tapped their savings, run up their credit cards and many have borrowed against the value of their only growing asset; their homes. We, and to a large extent most American workers, are at their ropes end. We have no money left to stimulate this economy. It doesn’t take a genius to figure out why we are heading into a recession. Isn’t it ironic? American companies cut back on benefits and salary to enrich themselves and their investor friends, and ultimately destroyed their base of support — customers and employees!

It is no secret that the most successful airline in the world right now is also the highest paid airline around. Southwest continues to dominate because they take care of their passengers by taking care of their employees. Southwest airline's IAM represented employees make on average, $1,000 dollars a month more than Delta non-contract employees. Again, they are nearly 100% unionized and their company has little or no debt. That’s proof that it pays to have consistent, long serving and competent leadership that respects its employees and their unions.

Our CEO, Richard Anderson recently announced (for a third time) a change in our pay rate evaluation timetable. The assessment will now be done sometime towards the end of this quarter (March). Why the constant changes? Do you think that the announcement was initially changed to coincide with the Northwest merger and now, since the talks have stalled, there’s no rush to make any commitments? Just a thought! Anderson now wants to “take a little more time to study the oil situation and scrub the numbers.”

The IAM union represented carriers have date specifics on when their catch-up pay will be arriving, with much being returned already. Why can’t our management team seem to be able to determine what industry standard pay is and when we will be getting it? Keep scrubbing Richard.

Without unionizing and the strength of a contract, we will always be just a promise away from the pay we desperately need and deserve; a promise and commitment that will most likely never be met or fulfilled without pressure a union will provide.

Let’s not continue to be a promise away. In reality we are just a vote away – from a better future with the IAM.

Sign your IAM A-card today!