Delta TA Is Out!

[ScareBusA320]

http://biz.yahoo.com/ap/060421/delta_pilots.html?.v=5



AP
Delta Pilots Union Leaders Ratify Deal
Friday April 21, 11:56 pm ET
By Harry R. Weber, AP Business Writer Delta Pilots Union Leaders Ratify Tentative Agreement That Includes 14 Percent Wage Cuts
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 percent 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.
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."

[ScareBusA320]

Here is a portion of the TA.

C.

Section 1

SCOPE

Amend

Section 1 B. 17. c. to read: :

c. one of up to 200 jet aircraft configured with 51-70 passenger seats and certificated in the United States with a maximum gross takeoff weight of 86,000 pounds or less (“70-seat jets”).

Add a new

Section 1 B. 17. d. and e. to read:

d. beginning January 1, 2007 one of up to the number specified in the chart below jet aircraft configured with 71-76 passenger seats and certificated in the United States with a maximum gross takeoff weight of 86,000 pounds or less (“76-seat jets”). The number of 76-seat jets may be increased above the number specified in the chart below by three 76-seat jets for each aircraft above the number of aircraft in the fleet operated by the Company (in service, undergoing maintenance and operational spares) as of January 1, 2007. The number and type of aircraft in the fleet on January 1, 2007

will be provided to the Association in writing no later than January 15, 2007. Such a report will also be provided to the Association at the scheduled quarterly financial update. The number of 70-seat jets plus 76-seat jets permitted by

Section 1 B. 17. may not exceed 200. Once the number of permitted 76-seat jets is established, it will not be reduced except as provided in the Note below.

Letter #51 Bankruptcy Restructuring Agreement T/A

3

Year Permitted 76-seat Jets

2007 15

2008 and beyond 30

Note: If a pilot on the seniority list as of June 1, 2006 (

i.e., Troy Kane and above) isplaced on furlough after April 13, 2006, the Company will convert all 76-seat jets for operation as 70 seat jets.

e. A carrier that operates any of the 70- or 76-seat jets not being operated as of November 1, 2004, may do so only if that carrier and the Company have agreed to terms for a preferential hiring process for pilots furloughed by the Company (i.e., a pilot furloughed by the Company will be given preferential hiring at a Delta Connection Carrier if he completes all new hire paper work, meets all new hire airman and medical qualifications, satisfies background checks and successfully completes an interview). The Company will offer preferential interviews for employment to airmen employed by a Delta Connection Carrier that offers preferential hiring to furloughed pilots in accordance with this paragraph, subject to the Company’s objectives for diversity and experience among newly hired pilots. A pilot hired by a Delta Connection Carrier operating any of the 70 or 76-seat jets not being operated as of November 1, 2004 will not be required to resign his Delta seniority number in order to be hired by such carrier.

...Looks like scope will be destroyed if this is passed. Vote it down Doug and the rest of DL pilots!

[Doug Taylor]

It's got a 50-50 chance of passing.

I think if we're able to convince about ~400 (I think that was the number) more pilots that this is bullcrap, we can drop this turkey back in management's lap.

Basically the 'temporary' deal which barely passed in December which more or less this TA makes it permanent (well 3 years) barely squeaked thru.

Just a few more people to convince...

[Kristie]

How did you get this Scarebus?

[MQAAord]

Originally Posted by Kristie

How did you get this Scarebus?

Probably off of FlightInfo, that particular section was posted over there moments after it was released to the pilot group.

[Grumpy01]

First a disclaimer. I know nothing about airline systems, but I did sleep in a Holliday Inn Express at one time.

This is not intended to be a troll either. It is just asking a question.

Two years or so ago, Delta Pilots agreed to a 32.5% pay cut. [Now the people who negotiate for them] is that right ?. Have agreed to another 14% pay cut AND the [if this is accepted] signing away of the right to oppose the company if it decides to remove benifits ?

Since benifits are a major part of all working peoples reason for working at a paticular company, Isn't this a complete surrender on the part of the pilot negotator ?

If passed, it will mean that in two years, the Pilots will have lost nearly 50% of thier pay and [more than likely] a large percentage of the benifits .

[Mr_Creepy]

"benefits"

You only get them if you can spell

[Tim]

Looks like this will come to down to final vote. How will the pay and benefits be affected with this TA

[MDPilot]

I'll tell you my vote.......NO!!!!

[Doug Taylor]

I'm so not looking forward to circular debates with flight simmers about how I should vote 'yes' to this deal!

[MQAAord]

Well, it's like I posted on FlightInfo last night. The contents of this TA were kind of like the contents of the mystery Tupperware in the back of the fridge. We weren't sure what was in there, but we were pretty sure we weren't going to like it.

Sure enough, now that the 'word' is out, I can smell it's rotten-ness clear across the room. Instead of taking those nasty leftovers and trying to put enough curry on them so people will eat it, THROW IT OUT and start again.

[Doug Taylor]

I had to borrow that quote for a different forum!

Thanks in advance!

[alphaone]

Direct quote from Anet...."IMO the pilots gave too little too late." Ah yes, the qualified minds of Airliners.net weigh in on the pilots contract. By qualified I mean they have memorized every registration number on Delta 777's.....

[Timbuff10]

So from everything I have read, it looks like about 90% of the pilots will vote NO.

Where does this leave us? More pictures of empty lockers or will a strike be assured if it gets voted down?

[mike295855]

Originally Posted by alphaone

Direct quote from Anet...."IMO the pilots gave too little too late." Ah yes, the qualified minds of Airliners.net weigh in on the pilots contract. By qualified I mean they have memorized every registration number on Delta 777's.....

Classic!

[ScareBusA320]

From Flightinfo more concise info on the TA

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.

[ScareBusA320]

New Delta TA - Part 2

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

• The Bankruptcy Protection Covenant is an extensive legal document that
supersedes the LOA #46 Bankruptcy Protection Letter.
• The company cannot file another Section 1113 motion to reject the PWA during
this bankruptcy unless in imminent danger of losing its DIP financing and
satisfaction of other tests.
• Legal protections for ALPA and its representatives.
• The company must propose and may only support a Plan of Reorganization
(POR) that contains the ALPA Notes, the ALPA Claim (equity), and other terms,
including assumption of the PWA as modified.
• If the company's POR does not comply with the ALPA terms, procedures are
established to return to the PWA in its entirety as it existed prior to LOA #50.
• $650 million note or cash (at company option) in consideration of contract
concessions if the DB plan terminates. MEC to determine allocation.
• $2.1 billion bankruptcy claim in consideration of contract concessions. In a
bankruptcy, a claim is usually paid in equity (stock in the reorganized company
when it exits bankruptcy). The value of equity resulting from a claim will depend
on the value of the company at exit from bankruptcy and the size of the total
claim pool. The value of the stock is usually much less than the nominal value of
the claim itself. For example, in the United Airlines bankruptcy, at the time of
exit from bankruptcy, the newly-issued United stock traded at about 24% of the
nominal value of the claim; today the stock is trading at about 16% of the nominal
value of the claim.
• The MEC may be able to decide that the notes, cash and equity described above
may be allocated to qualified retirement plans, up to Section 415(c) limits.

Recovery Compact

• 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

[Bandit_Driver]

I can't believe the MEC even accepted that. Hopefully, it gets voted down by the pilots.

[ScareBusA320]

Originally Posted by Bandit_Driver

I can't believe the MEC even accepted that. Hopefully, it gets voted down by the pilots.

Yea...Lee Moak really sold out the DL pilots. Guess I was right when I said originally stated the TA caleld for $240 million in cuts. Time to get new MEC leadership at DL, Doug,MDPilot,B767Driver.

[Doug Taylor]

I think it's a 'turkey' and won't fly because there are a lot of pissed off people. It more or less solidifies the 14% (with a goofy promise of raises during the duration) given up the first of the year and guts scope.

Nothing personal, but I'm kind of tired of throwing public tirades for everyone's amusement so perhaps some of the other southernjets guys could volunteer to serve that role.

Or not.

[BobDDuck]

Wow. What a bunch of trash. There isn't ANY protection of ANYTHING in that contract. I was expecting it would suck, but I thought they would at least throw the pilots a bone.

[MQAAord]

Originally Posted by Doug Taylor

I had to borrow that quote for a different forum!

Thanks in advance!

Anytime And yes, it's an Amber-Original.

[Kingairer]

Whats special about 76 seats? Is there a particular airplane that targets? Is that the CRj705?

[GaTechKid]

I'm confused since DCI already flies the CRJ-700. How would this TA change the existing scope at Delta?

[OldTownPilot]

The 76-seats is the CRJ-705 (basicly a CRJ-900 with first class). A bunch of the CMR management is happy about this one. They say that with the cuts we took (F/A pending) these planes should be ours....ok whatever. Even our management is drinking Southernjets kool-aid...

Oh wait, I am just a know knothing ramper that will believe whatever the company says. This announcement of bigger jets is GREAT.