Delta Air pilots offer to take 9 pct pay cut

Eagle

New Member
Thursday December 4, 11:43 AM EST
By Julie MacIntosh

NEW YORK, Dec 4 (Reuters) - Pilots at Delta Air Lines Inc. (DAL) have offered to take a 9 percent pay cut -- much less than the airline requested earlier this year -- to help the carrier rein in costs, according to a pilots union memorandum.

Talks are progressing again between the No. 3 U.S. airline and the union, which represents about 8,500 Delta (DAL) pilots, after falling apart over the summer.

But a considerable gap between the pilots' proposal and Delta's request could signal trouble, one analyst said.

In April the airline asked the pilots to take a 22 percent cut in hourly pay and give up scheduled 4.5 percent raises for 2003 and 2004.



"While the market may respond positively to the simplistic notion of labor progress at Delta, the inadequacy of the pilots' proposal highlights that serious, protracted negotiations lay ahead," JP Morgan airline analyst Jamie Baker said on Thursday.

Delta's stock posted moderate gains in early trading on the New York Stock Exchange but then turned lower. It was down 6 cents at $11.78 by late morning.

Delta's pilots are the highest-paid in the industry. A 2001 contract awarded them a package that topped that at UAL Corp.'s (UALAQ) United Airlines. UAL has since filed for bankruptcy and secured cuts in its workers' wages.

Atlanta-based Delta has said its pilots' pay puts it at a $1 billion per year disadvantage to its competitors.

EFFECTS COULD BE WIDESPREAD

The union's negotiating committee, in a memorandum to members on Wednesday, said Delta has now proposed a contract extension the union had said was necessary for talks to resume.

Included in the pilots' proposal is an offer to eliminate the planned pay increase in 2004 in exchange for the extension.

The committee felt Delta was looking to secure pilot costs similar to those at airlines that have restructured. But the union group said it "does not believe (Delta's) pilot costs must be aligned with the pilot costs at restructured or bankrupt airlines for our company to be profitable."

JP Morgan's Baker warned that the airline industry could suffer if the pilots' proposed rates are accepted, though he said Delta is not likely to agree to the offer. The pilots' plan would still eventually put their pay 45 percent above pay at the two biggest U.S. airlines, AMR Corp.'s (AMR) American Airlines and United, he said.

Pilots at Delta start at hourly rates that equate to annual pay of about $41,000, according to the union. A few senior pilots can earn as much as $275,000.

Union officials were not immediately available for comment on Thursday.

MOVEMENT AFTER EXECUTIVE SHUFFLE

Delta Chief Executive Leo Mullin unexpectedly announced his retirement late last month in the midst of the stop-and-start talks with pilots. Industry analysts at the time cited hopes that his departure would help the airline win pay cuts.

Mullin came under fire earlier this year after retention bonuses and pension perks given to senior Delta management, and his own hefty compensation, inflamed workers and shareholders.

His departure, which came with a $16 million pretax retirement package, leaves each of the top three U.S. airlines with new leaders since the Sept. 11, 2001, attacks.

The CEO of AMR Corp.'s (AMR) American Airlines, Donald Carty, recently resigned after infuriating unions with an untimely disclosure on executive retention plans. And James Goodwin was forced to retire as CEO of United Airlines when a firestorm erupted after he told workers the airline might "perish" without massive cost cuts.
 

Kristie

Mama Bear....
Staff member
How come I have to hear this on the forum???


I knew nothing about this... nice way of keeping the SO on the outside...
 

ready2fly

Well-Known Member
[ QUOTE ]
How come I have to hear this on the forum???

I knew nothing about this... nice way of keeping the SO on the outside...

[/ QUOTE ]

Uh-oh!!! Sounds like SOMEBODY needs to call SOMEBODY!
 

Kristie

Mama Bear....
Staff member
Nah - he's workin
.....I'm just trying to clue him in that what happens at his work happens to me too and vice versa.... and I think all husband/wives should feel that way - KWIM? He just isn't talking to me enuff about what's going on there....

Like if any paycut is going to occur - we need to talk about that and how it's going to affect us and how to handle it - all that fun stuff.....I do the same thing when stuff happens at my job....and he knows more about what's going on with my job than I do his...
 

sorrygottarunway

Well-Known Member
is this only for pilots, or does the management take a pay cut too? Call me stupid, but it seems that sometimes the "worker bees" take too much of the flack for the "guard/queen bee's" mistakes. If there is some sort of cut that has to be made, everyone should distribute the cut equally... ", even %10 is a hefty price to pay, with all that living costs are.

I bet that if this is implemented and the company sees a partial recovery, we might be seeing some big "pat on the back" bonuses going out to the mismanagers...
 

ready2fly

Well-Known Member
[ QUOTE ]
Nah - he's workin .....I'm just trying to clue him in that what happens at his work happens to me too and vice versa.... and I think all husband/wives should feel that way - KWIM?

[/ QUOTE ]
Duly noted.
 

aloft

New Member
[ QUOTE ]
Pilots at Delta start at hourly rates that equate to annual pay of about $41,000, according to the union. A few senior pilots can earn as much as $275,000.

[/ QUOTE ] Kudos to the reporter(s) for including this instead of insinuating that all Delta's pilots are making $250k/yr.
 
When this new contract came out I had read it in the USA Today. They said a top Delta pilot would make $375,000 a year. not $275k though that is nice too
.



Matthew

formerly Zen~Aku
 

Kristie

Mama Bear....
Staff member
I betcha any amount at all that there is no single delta pilot there making that high of an amount - maybe upper management is, but not the pilots... technically, it's less than 1% of all the pilots making over $200K, most are in the $100-$150K area (just don't forget what they go thru every year to get that amount tho!)...and doug was telling me tonight that there's been no vote on those conditions and that's only the "offer" the the union gave to management - so it is not a done deal as the paper specifies....

my bet is that management won't take it - in which management will get zero then cuz the pilots aren't going more than that if anything at all...
 
[ QUOTE ]
I betcha any amount at all that there is no single delta pilot there making that high of an amount - maybe upper management is, but not the pilots... technically, it's less than 1% of all the pilots making over $200K, most are in the $100-$150K area (just don't forget what they go thru every year to get that amount tho!)...and doug was telling me tonight that there's been no vote on those conditions and that's only the "offer" the the union gave to management - so it is not a done deal as the paper specifies....

my bet is that management won't take it - in which management will get zero then cuz the pilots aren't going more than that if anything at all...

[/ QUOTE ]


Why would only 1% of the pilots at Delta be making over $200K. Don't all pilots make the same salary.

Example: All MD-88/90 captains make the same salary and all MD-88/90 f/o's make the same salary.

So then if that is true wouldn't 767,777 captains and f/o's the highest paid pilots at the airline.

With 777 captains and f/o's being the highest paid...right?

Because I have heard that pilots get paid by how many seats the planes they fly carry.

There by a 757 pilot would make more then a 737 pilot right?


Matthew

formerly Zen~Aku
 

Kristie

Mama Bear....
Staff member
nope - that's not how it works....

pilots are paid based on their seniority, what seat they sit and what plane they fly... all LAX 777 F/O's don't make the same salary because it depends on how long they've been in the company and how long they've been sitting right seat and flying the 777...

typically the larger planes do pay more - but it also takes longer to get off of the reserve line which again, is based on seniority... when you enter a company, you typically start on the smaller planes like a 737 and can work your way up and back down during the lifetime of your career - but the pay is (if i'm right) based mostly on seniority then the other two (seat/plane)...

oh - and it's typically the guys that have been with the company for 25-30 years, flying captain 767/777's that are making $200-$250K (guys that are about to retire)... that's where the 1% or less comes into play...the new hires start around $25K (from what i recall) and work their way up via plane, seat, base and seniority...

If i'm wrong guys - correct me!
 
Well thanks for the info Kristie...I would love to hear your husband weigh in on this subject as well.

Guess my dream of everyone getting paid the same depending on plane seats was a pipe dream.

Cute new avatar btw....


Matthew

formerly Zen~Aku
 

Kristie

Mama Bear....
Staff member
yeah - we'll see if he wants to weigh in on the subject haha
... once you get him started, it's hard to stop him from saying "sheeeet, pilot pay is not where it should be - if anything, it should be based on a per pax per plane per hour scenario or by tips - then all pilots would be multimillionaires by their 40's"

which technically - doug's only paid (after 6 years seniority) about $1.20 per passenger.. per plane...
 
Top