BTW, you left off the entire top portion of the C54 email. Here is what you cut off that was above what you posted.


Pat Harney—Chairman’s Perspective
As your elected officer, I want to give you an accounting for my actions on the current MEC-approved Tentative Agreement. I voted in favor of sending the TA to you, the Delta pilots, for your consideration and vote. When the window is open for the membership to vote on the TA, I will vote yes for the new contract. I will not spin or try to “sell” you on the provisions of the TA. There are good and not so good elements. I will present both the facts and the risks of not supporting the agreement; then, you decide what is best for you and your family.

My first reaction to the TA was that I am underwhelmed as it relates to pay. For the first three days of deliberations, I was not in favor of sending the TA out for member ratification. As more provisions were deliberated, I began to see value in the other sections that had been negotiated. While pay was less than my expectations, scope has industry-leading provisions and the early retirement package is impressive (except for the at-risk portions of the medical retirement account). In short, the agreement might fall short of pilot expectations on pay, but the early retirement and scope provisions are good, as are all of the other provisions relating to work rules and benefits. The scope provisions are event-based and require Delta to acquire Small Narrow Body (SNB) A/C. As they add the SNB A/C, it will force a hard ceiling on RJs; end state reducing from current 598 A/C in the DCI fleet to 450. The agreement adds more mainline flying for Delta pilots and results in a decrease of approximately 7,000 less seats available in the DCI fleet.

It was my expectation that we could have sent the negotiators over for one last plea regarding additional pay, but there was an agreement on a TA and an unwillingness of a majority of the MEC to send the negotiators back over for the additional ask. The risk was seen in loss or changes to the Early Retirement Plan and scope provisions. In addition, the negotiators said that they had already exceeded the line drawn in the sand with respect to the cost of the early agreement, and any other asks just before they agreed to the TA was met with other adjustments in other provisions. Remember this is a negotiation, not a go ask and get process.

The pilot expectation on pay was SWA book rates plus, on the amendable date. That would have required a minimum of 14.4 percent to match on their low side of pay based on performance or over 19 percent on the high side. On the amendable date, if ratified, we will receive a 12.8 percent pay increase. Short of expectation! However, one and a half years into the agreement, if one includes our DC as compensation, we beat SWA as it relates to pay, since bankruptcy Delta pilots will be up 53 percent on January 1, 2015. PMNW will exceed book rates at the time of their bankruptcy in January 2015. On January 1, 2015, our B-747/777 captains will exceed UPS and FedEx captain rates. Prior to the start of negotiations, I was not sure that we would have been able to achieve this. Yes, the referenced carriers will have an opportunity to negotiate higher rates between now and January 2015, but my response to that comment is, “I hope they do.” It will just give us additional leverage when we start new Section 6 negotiations in three years.

Are there elements that seem like self-funding/quid-pro-quo? Yes. In the survey, the Delta pilots asked for a higher reserve guarantee. The unintended consequence of this request is higher productivity of reserve pilots, which in turn requires fewer pilots on the list. On the other hand, pilots asked for more value for training and more vacation, both of which require more pilots. The early retirement option will help with the staffing side. The company wanted help to balance the high block hours of summer and holiday flying with the shoulder months by redefining the months in June through September and a higher ALV window. As you review the agreement, there will be other sections that have give-and-take provisions. Again, it is a negotiation, with requests made by both sides.

Why did I vote yes on the TA? Several reasons—advice from the three ALPA National Professional Negotiators and labor law attorneys, the twice unanimously-elected four-member Delta ALPA Negotiating Team, and Phil Comstock from the Wilson Polling Center, along with a careful review and debate with my fellow MEC members on the merits of the deal. The deal we have is real money today with incremental increases that get us to the likes of SWA, UPS, and FedEx pay rates in 2015; it is not just a hope of increases for tomorrow. There are real gains in scope provisions, and a desired Early Retirement Plan with substantial money in severance pay and a retiree medical account. Three years from now, we could still be stuck in traditional Section 6 negotiations with no changes to our current contract, or instead we could be starting a new round of negotiations to build on what we already achieved in this 2012 TA.

The conflict is this: can Delta Airlines afford higher pay rates and better work rules today? With a forecast of $1.6 to over $2 billion in profits this year, absolutely yes! Are they willing to spend more on this early TA? According to the negotiators, absolutely not! This is a business decision by management. They had a dollar amount that they were willing to spend on this early deal, and I’m confident that we hit that amount. I was not willing to vote no and risk losing the scope and early retirement provisions.

Carefully consider the entire TA; then vote what is best for you and your family. If the TA is approved, we will have work to do on the implementation of the provisions of this agreement. If you, the line pilots, determine it is not good enough, vote it down, and we will go back to the drawing board. It is up to you now, please vote when the window opens.

Let me be clear—this is your union, this is your contract, and this is your decision.

Art Aaron—Vice Chairman’s Perspective
Art is on vacation and will send his perspective as soon as he can, possibly next week.