Originally Posted by
Wasatch Phantom
I didn't forget the "Delta Dot", but omitted its discussion for brevity. I also didn't bring up the so called "Bankruptcy Protection Letter" for the same reason.
Ideally I would like a cooperative atmosphere between the company and the union representing Delta pilots that's based in large part upon trust and mutual respect. When times are good. and the company is making record profits, we participate (in a big way) and when times are tough we don't. Unfortunately, I don't see that trust and mutual respect coming from Delta. I see that Delta pilots are working very hard to help the company on a daily basis. I also see a merger that is probably the definition of a successful airline merger (and there are precious few of those) due again in large part to the contributions of the Delta pilot group.
My perception is the company is making record profits (despite a very tough economy). In no small part the reason they are making that money is we (Delta pilots) are still working under work rules and (slightly improved) payrates "negotiated" in bankruptcy.
I do not accept that letter 46 lowered the baseline for Delta pilots in perpetuity. That hugely concessionary agreement was intended to keep Delta out of bankruptcy. I think the majority of Delta pilots felt the concessions would be gone in the next section six negotiations.
As far as the PERPs: I think DALPA and Delta came up with a lousy solution, but I also think it was probably the best solution available to them.
We had guys literally faxxing their retirement papers in minutes before midnight on the last day of the month. These were by definition senior pilots who were Captains on widebody (premium and otherwise) aircraft.
Delta literally couldn't train their replacements fast enough as those same replacements often retired while still in training! If DALPA had said "tough toenails" the company would have been forced to park a large percentage of the widebodies, and suffer a huge loss in revenue.
Were furloughed pilots kept on the street longer than necessary? Probably. But I honestly don't know of a better solution.
You are right, "but for..." could go on all day long. I still see LOA #46 as the reset trigger. It happened outside of bankruptcy and was voted in by the pilots. The same pilots now aren't interested in participating directly in/for Delta's survival or a business plan than may succeed but want every dime of revenue up front. Our current management, by and large, was not here prior to the bankruptcy and couldn't care less about who gave what to whom.
LOA #46
- Increased limit for number of 70-seat RJs to a maximum of 150, based on scheduled mainline block hours.
- 32.5 percent reduction in hourly pay rates.
- Reduction in per diem, night pay, and international pay.
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International pay only for international flights actually operated (not for sick, vacation, or reserve guarantee).
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Value of vacation day reduced.
- PBS implemented.
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Monthly cap replaced by average line value (ALV).
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FO recovery obligation if removed for another pilot’s Operating Experience (OE).
- Recovery and reroute rules broadened.
- Reserve high/low yellow slip system replaced by reserve assignment weighting (RAW).
- Green slip (GS), green slip with conflict (GSWC), and reroute pay reduced.
- Defined-benefit plan was soft-frozen.
- Accident leave reduced.
These are all the items I keep hearing in the lounge that guys want restoration for. If you look at LOA #51 a.k.a The Bankruptcy Contract, it's actually pretty benign compared to LOA #46.
LOA #51
- RJ seats increased from 70 to 76 (limited number tied to mainline growth; included furlough penalties).
- Fewer restrictions to international code-share.
14 percent pay rate reduction, effective Dec. 15, 2005.
- Per diem and international pay reduced.
- Night pay deleted.
- Value of vacation day and vacation accrual reduced.
- Sick bank decreased; paid at 75 percent after first 240 hours in rolling three-year period.
- Required recall of all furloughed pilots by August 1, 2008, deleted.
- Requirement to be at 75-hour ALV in certain categories for three months prior to furlough deleted.
Retiree medical premiums increased (access only after Medicare eligibility).
- Survivorship plan replaced by $500,000 life insurance.
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1.5 percent increase in pay rates on January 1, 2007.
- 1.5 to 6 percent increase in pay rates on January 1, 2008, based on corporate financial performance.
- 1.5 to 6 percent increase in pay rates on January 1, 2009, based on corporate financial performance.
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1 percent increase in pay rates on December 31, 2009.
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Profit sharing increased to a 15 percent payout at first dollar of pre-tax income and 20 percent payout on pre-tax income over $1.5B.
- $2.1B ALPA bankruptcy claim in consideration of contract concessions.
- $650M ALPA note in the event DB plan was terminated.
- DC Plan contribution of 9 percent to all pilots in the event the DB plan terminated.
- Process established to repair and improve employee-management relations.
In fact, it makes less sense when you read it on paper. LOA #46 gave them PBS, took the first pay hit, started the increase in RJ's, the soft -freeze on the DB plan...and all things we want back now. LOA #51 took a tiny bite of that left-over apple core but added raises based on the company doing well (POS 96 lesson learned?), Profit Sharing increased, DC increased and the Note and Claim. In hindsight (reading the Contract History finally) I find it more amazing that we got anything at all from the bankruptcy, yet somehow, someone at ALPA got all that when we were on the floor being kicked in the teeth. From a historical point of view it's really quite interesting. We could have easily been bought by USAirways and wondering where that $330 an hour went.