I agree with Tim Parker. Here is a quote from Tim from the mini roar from the spring of 2008.
“While the Railway Labor Act is a much amended, complicated beast, the real substance behind it is not. The Act was put in place to prevent the disruption of passenger and freight service in the United States caused by disputes between railroads and their employees, and was later amended to cover airlines. Its weapon is time; unions representing employees are bound not to disrupt the status quo while the process continues. The process dictates goodfaith bargaining, followed by mediation and the eventual release to self-help if previous efforts fail. This is a very political process influenced greatly by whichever political party has control. During the tenure of the current president, the National Mediation Board, whose three members are appointed by the president, has released not one single major hub-and-spoke airline to self-help.”
The current agreement provides for two ways to increase pay beyond the amendable date.
1) 3.B.4. ties our pay to the industry average. While management’s current tactics may delay the effectivity of this clause, they can’t eliminate it unless we agree to do so. The pay rate accumulation from other airlines will accrue while we are in negotiations. If management intends to hold our pay at current levels, that means they can never give an additional pay raise to non-contract employees.
2) 3.I is our profit sharing and ties our variable compensation to the profitability of Delta. This is key because it also aligns us with management’s goals and personal compensation. The payment is based on a percentage and is variable meaning it also increases automatically beyond the amendable date. The added benefit of not requiring further negotiations to increase the benefit allows for a continued share of the profits every year. If a year results in a loss, compensation costs remain in line with the rest of the industry because hourly rates would be the only expense. If the following year a profit is achieved, the profit sharing again pays a return automatically.
To remove the effectivity of these clauses is to return to the punitive process section 6 has always been. We need mechanisms in the contract that reach beyond the amendable date to ensure a backstop for delay. 3.B.4. alone has the potential to raise pay rates by 2.5 times the current rate over a 30 year career without ever agreeing to change the current agreement. While this is not the plan, retaining this provision ensures we don’t lose ground to the industry average. We will automatically hit a single every year non-contract employees get a raise.
Profit sharing continues beyond the amendable date and ties our pay to the profitability of the entire business. As Delta grows its equity holdings and JV operations we will become a smaller percentage of the operation generating profits. This keeps us relevant and compensated for the decisions to not expand organically.
We have finally achieved a counter to the section 6 time penalty. These clauses should be vigorously defended and expanded.