Delta Council 54
April 6, 2012
Contract Status Report
Yesterday was the day the Company and ALPA were set to exchange openers; however, as identified by the counter below, it has been 24 days since the company and your union exchanged openers. We thought this would be a good time to present a status update as to where we are in the process. We also would like to discuss some rumors and restate a few positions.
The Company and ALPA met on March 13 for the early exchange of openers. Negotiations have now been taking place for three weeks. Discussions have been characterized as professional, focused, and productive.
Progress is being made, but there are no sections closed out or tentatively agreed to (TA’d) at this time. Talks are continuing on an aggressive schedule, and key management representatives are involved. We have spent time in the crew lounge and may do so in April to help answer questions and gain additional input from you.
We will continue with these updates when there is enough information to forward. We understand you want to know what is going on, and we want to keep you in informed. Many of you are e-mailing and calling us with regard to rumors you are seeing on web boards or hearing out on the line. We are going to address the most popular RUMORS we are hearing
Is it true the Company has offered a 20% raise to the union?
No. Furthermore, economics are typically one of the last items discussed in negotiations.
I heard that the company wants more 76-seat aircraft at the DCI carriers.
It seems that in every contract we have seen, the Company asks to loosen scope. While we won’t discuss ongoing negotiations, the MEC is committed to achieving significant improvements throughout our scope language. Right now under the current PWA, Delta can increase the number of 76-seat RJs (subject to the 255 limit of 70/76-seat jets) by growing beyond 767 mainline aircraft. We do not support any larger aircraft at DCI, jet, turbofan, or turboprop. Below is the following language from the PWA found on
1-5 section d:
one of up to 120 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 120 by three 76-seat jets for each aircraft above the number of aircraft in the baseline fleet operated by the Company (in service, undergoing maintenance, and operational spares) as of October 30, 2008. The baseline fleet number will be 440+N, in which N is the number of aircraft (in service, undergoing maintenance, and operational spares, but not including permitted aircraft types) added to the Company’s baseline fleet from NWA. The number and type of all aircraft in the Company’s fleet on October 30, 2008, will be provided to the Association. The number of 70-seat jets plus 76-seat jets permitted by Section 1.B. 40 may not exceed 255. (Due to a grievance settlement in January of 2009, the 76 seat limit is set at 153, not 120.)
Is ALPA really asking for an 11% raise? I heard that from a PUB event and read it on the web board.
It would be inappropriate to discuss specifics while negotiations are ongoing, but the Delta pilots completed a comprehensive survey, and their input was used to craft the opener. Again, please review our opener. Section 3 of that document reads, “Delta pilots have been valuable business partners with Delta management in establishing our airline as an industry leader in profitability, flexibility, and performance. The value of this partnership must be recognized with a sizeable increase in compensation that reflects the integral part that the pilot group has played in the success of the corporation.”
So is it true that we are getting more narrow-body aircraft?
Various versions of this rumor have been circulating in the media recently. Management determines Delta’s fleet plans (within the constraints of the PWA), but clearly we would welcome the addition of additional aircraft to the mainline fleet.
In closing, we ask that before you pass along any rumors or gossip, please check with us. If we can address the rumor, we will. Do not think you will be bothering us, as this will be less work for us. If we do not know the answer, we will attempt to find it. Please be patient, as our call and e-mail volume has increased.
We understand that this is a time of optimism and anticipation. We look to address many areas of our contract that were attacked during bankruptcy. While the JCBA did stop the decline and help turn the trend upward, it was still negotiated at a time of $147-a-barrel oil and against the backdrop of an unproven business plan. That was four years ago, and now we are still in an environment of high fuel costs. However, the economics have shown that Delta has been able to deliver at least somewhat consistent profits. Delta is “leading the industry” in terms of profit margin and market capitalization. Delta pilots have been “leading the industry” with regard to the cooperative merger, and it’s time that this be reflected in our new PWA.
We think the industry is awakening to a day where every quarter will typically be profitable and double-digit profit margins could become the norm. Delta has the lead over the competition that can be measured in years. We think that the earlier that Delta invests in the Delta pilots’ new PWA, the sooner we all can focus on the importance of keeping Delta the premier global airline.
24 Days Since the Exchange of Openers
269 Days Until Your Contract-Amendable Date