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MEC Special Meeting Summary
June 9 – 10
Atlanta, GA
Chairman’s Report – Captain Mike Donatelli
Transcript of Remarks:
I would like to recognize and thank the many Delta pilots who have joined us today. SMEs,
P2P cadre, and line pilots…the single reason we do what we do. And we’re meeting in open
session…to hear from your negotiators and get the strategic plan. This is an incredibly
important time for us all. The opportunity we have in front of us needs to be fully explored
and understood in total, so I appreciate that you took the time to be here to participate!
Thanks again.
Opportunity. I have said it many times, recently. Opportunity to once and for all, turn the
corner and never look back, to lock in a contract that makes certain our futures. The best
combination of pay rates and profit sharing and the best scope. The best work rules; all at a
growing airline; a growing mainline. A company that is getting bigger and better for the Delta
pilots on all levels.
But to understand where we have the opportunity to move forward, we must take a fresh look
at where we’ve been, because in this business nothing happens in a vacuum. It’s all
connected.
I had a piece put together called “An Opportunity Like No Other”. In fact, our great
communications committee crafted this into a YouTube video that many of you have seen.
This is a good a snapshot of our recent history…the highs and lows. No matter your pre-merger
airline, or if you were flying somewhere else entirely…the GREEN represents our pay rates
since 1999, the YELLOW line shows Delta profits and losses and the GRAY represents profit
sharing.
While there are lots of stories here, the main takeaway is that we must GET…and
STAY…synched to our airline.
Our Company: One whose profits fell off a cliff not long after the ink had dried on our C2K
contract. Ultimately, our rates went off the cliff with it. If you were a Delta pilot or a
Northwest pilot, I’m sure it’s etched in your memory. Then the long and tough rebuild, the
climb back. And post-merger, Delta began to hit on all cylinders, and the sine wave, the lag
between profits and pay began to dampen.
From the JCBA to Contract 2012, we stayed true to our mission…to find value anywhere,
anyhow…to keep the raises coming. C2012 was based upon a set of underlying themes that
worked. Total compensation went way up. Just look at the chart.
Except that a bunch of it…the area in gray, was variable…profit sharing. Shortly after signing
we quickly went up the ranks, and today C2012 is at the top of the industry in total
compensation: better than United, better than American, better than all of them.
But what would happen if the profits didn’t remain, if business changed, if threats like the
Middle East carriers, or an unknown, became our reality? It’s a reality at Air France…a reality
at KLM, a reality at Lufthansa, that’s for sure…and their depressed balance sheets prove it. If
such a huge piece…this area here…of our annual pay was in question, how are we, pilot
leaders, acting proactively?
So we formulated a strategic plan. We asked our pilots about a new contract. Your reps put
the plan in motion. And I met with Richard Anderson. With Ed Bastian. I met with them often.
And with the message of “Keep it Going” from the Delta pilots…We set out to do exactly that.
To execute on our strategic plan.
Flash forward to today. Right here and now. We have a deal on the table, a tentative
agreement that potentially puts us in rarified air, a contract that sets a new standard. This TA
raises the bar across the board. It is an agreement that pushes beyond industry leading.
This TA gives us rates never before seen and sets into motion six months early. Who here
knows pilots at FedEx, at Southwest or UPS? Record profits at all and they’re stuck. Stuck in
mediation. Stuck in mediation and for how long?
Nobody can answer that truthfully because nobody knows.
Well maybe this will unclog things a little. I certainly hope so.
The chart tells the story. An opportunity to set the bar
To capitalize on the rising profits, and lock in a portion of it during the best of times…exactly
when we should be doing just that. And keeping profit sharing a meaningful part of a new
contract connected to a company that, we hope, continues to do very well.
This deal will redefine getting paid as an airline pilot. And before any change to profit
sharing is realized, you will be above C2K rates…a new all-time high. Let me repeat that.
Before any change to profit sharing is realized, your rates will be above C2K.
But we all know how this works. The MEC has received briefings from economic specialists,
NMB members, Wall Street advisors, and more. They have been fully briefed on the landscape
out there. We all know what is on the horizon with the ME3, NAI and other threats. This
tentative agreement, this opportunity is about seeing what is on the horizon and doing
something about it. Here and now. Period. Record pay rates is what our pilots wanted- pay
and more pay. More than we ever saw at Northwest…By a mile. More than we ever saw at
Delta, ever, and I mean ever. Speaking of that, how many of you were here for that idolized
time we called C2K? I sure was.
And the times were pretty good. Take a look at them now: Take a look at the top rate ever on
the 777: $319/hour.
 Plus profit sharing.
 Plus a retirement in your name.
 Plus the best work rules going.
 Plus a reserve system with provisions so popular even senior pilots are opting in.
Restoration? How about Resurgent? That’s what we have in front of us, a resurgence. A
resurgence of the Delta pilots and a resurgence of the profession.
Look at the total compensation potential. This deal…this opportunity sets the bar. It is the
Best in the Business. Bar none.
Things have changed. And I’m sure folks at Southwest are paying attention now. Remember
when Southwest was the marker? How about now?
On 1/1/18 it is $265 versus $216 and that is without profit sharing. In a few short years, those
are the rates for two Seattle-based 737 Captains. One at Delta, one at Alaska. Much of these
comparisons are with carriers like Alaska, United and American that have relatively new
contracts.
How about the Big Metal? The triple/the whale/the 350?
Remember, these are zero profit numbers, just straight rates. And in 2016, our profit-sharing
distribution will be unchanged. In 2017, the rates will be at an all-time high.
Yes. Things have changed…at least they might change. And if they do, we can walk tall with a
spring in our step and our heads held high and our wings displayed proudly on our chests. We
did this and we did it together. Not on anyone’s back, and certainly, not on the government’s
clock.
So here we are. Almost a year ago we set out to get to this point, to get to an agreement so
you, the Delta pilots could decide on your future, your contract.
You told us what you wanted in surveys and via phone polling. You told us that you like the
direction we’re going together. Again, you said “Keep it Going”.
So we did. The MEC got to work. The negotiators got to work. And so did the Company. For
over nine weeks management committed SME’s from top to bottom. Decision makers were at
the table. And we kept the connection to you, the line pilots all along the way. And let me
tell your, I’m proud of what this team has accomplished.
In the end, when we needed to get over a few hurdles, I jumped in, too. (And for those of you
who know me, I did a little more than jump). And it wasn’t easy. No negotiation is easy,
whether in bad times or good.
Remember when I said that today, our compensation is at the top of the industry. Well, it is.
And that makes for a challenge to compel management to raise the bar even further.
But the work got done because we have a deal that works for everyone. Everyone on the
Delta seniority list, and for the airline that is, professionally speaking, our DNA. We are Delta.
We define the Delta difference.
Now I know that some of you aren’t happy with certain specifics. I get that. The same
feelings and thoughts circulated in a room just like this one three years ago. But that MEC saw
fit to allow the Delta pilots to decide for themselves. And, over time, Contract 2012 delivered
on what it was supposed to do: to increase pay and job opportunities for the Delta pilots.
Now, feedback we get again and again points to overwhelming pilot approval of our contract.
So back to present day…On time on target is now an opportunity. This deal on the table, when
considered in total, because that’s the only way to judge a product, is so much more than
2012. Imagine what this will mean to Delta pilots and their families.
But still, this is just an opportunity. Because, you, the MEC are here to take the next step. To
figure out if this will go to the Delta pilots, to let them decide. Well, I often hear the terms
“member driven” and “bottoms up” when describing what we do.
Well, it’s time to walk the walk, not talk the talk. It’s time to put the Delta pilots back at the
controls. It’s time to let them cast their votes as ALPA members, and as Delta pilots.
And let me be perfectly clear on one last consideration: These are mature negotiations in
which we pulled every trigger, fired every bullet, to deliver every last penny.
The idea that we can simply resume negotiations…go back to the table and pick up where we
left off is a fallacy. It simply won’t happen. It bears repeating, gentlemen: It simply won’t
happen.
The next step if we can’t move forward right here and right now is to step back and prepare
for a long slog with the NMB… Just like FedEx…. Just like Southwest. Our fate will be in the
government’s hands.
So, in closing, I say this to you…Best in the Business…This is ours to own and for our pilots to
decide. We can’t blame the Company. We can’t blame the government. If we can’t act on
the richest agreement in our history…The Best in the Business, then the blame is squarely on
us.
Let’s get to work.
Negotiating Committee report-0930
Two briefings were presented today:
• Overview
• In depth look at items
The Negotiating Committee’s slides will be posted at dal.alpa.org under the Negotiations
C2015 banner.
The presentations were followed by MEC Q and A.
In the afternoon the Strategic Planning Committee briefed the MEC on possible alternate
paths if they choose not to send the TA to the membership for its ratification, or if the
members reject the TA. That briefing will also be posted to the website.
Following the Strategic Planning briefing, Mr. Bob Savelson, attorney from Cohen, Weiss, and
Simon addressed the MEC concerning union structure and the power of membership
ratification. There ensued a question and answer period.
The meeting recessed at 1830 and will reconvene tomorrow morning. The MEC should vote
tomorrow on a resolution whether or not to send the TA for your ratification. Members are
welcome to attend all MEC meetings.
If you have any questions, contact your representatives. Please log on to https://dal.alpa.org
and select the Negotiations C2015 banner for the most up to date and comprehensive
information. You can also visit our Facebook and Twitter pages via the buttons in the upper
left hand corner of the Delta MEC homepage.