Originally Posted by AirbusPTC

Many of you may have, by now, read the 13JAN26 “Profit Sharing” article published today by management. Articles like this appear regularly in the run-up to the February profit-sharing payout. Typically, the message implies that Delta pays profit sharing purely out of goodwill. This year’s first letter is somewhat more restrained and does not state that directly, but once again there is no mention of the Delta Air Line Pilots Association’s role in securing employee profit sharing.

Now is a good time to remind the uninformed that the Delta Air Line Pilots Association—our union—negotiated the profit-sharing program in 2004 under LOA #46 (2004) (see Delta Pilot’s Contract History). This agreement coincided with the termination/freeze of our pensions and the first of two major pay cuts. That initial cut was 32.5%. Management told us these concessions were necessary to avoid bankruptcy, and the union approved the agreement on that basis. Ten months later, Delta filed for bankruptcy on 9/14/05—the same day as NWA. Coincidence?

The bankruptcy led to LOA #50 (2005) and LOA #51 (2006), along with the termination of our pilot pension and transfer to the PBGC. A second pay cut followed—an additional 14%. In exchange for these concessions, the pilot union negotiated profit sharing at 15% of pre-tax income, and 20% on pre-tax income over $1.5 billion. Delta and NWA announced their merger on 4/14/08.

Since then, Delta management has repeatedly sought—and in some cases succeeded—in reducing the profit-sharing formula. The first reduction occurred in 2008: profit sharing dropped to 10% of pre-tax income up to $2.5 billion, and the 20% threshold was raised from $1.5 billion to $2.5 billion.

Each year around profit-sharing season, management promotes a narrative that they deserve full credit for both creating and paying out profit sharing. That is simply false. The profit-sharing program exists because it was negotiated by the pilot union—period. Since its inception, management has worked to reduce its value, not expand it. I am merely setting expectations for the next profit-sharing letter.

PS. I post this every year. Because every year there is some management letter that tells us Delta gives us the PS payout out of the goodness of their hearts. If that were true why do they try to cut the payout scheme every chance they get?