Profit Sharing Fantasy
#21
Once the TA1 was voted down (the first time in Delta history a TA was rejected), we were pizzed. Many of the reps were recalled, “Green means Go!” Donatelli screamed “PEB! PEB!” In PTC in an attempt to save the flagging agreement, and he was effectively forced to resign. Note: UA basically went through the exact same process from their recent “Tumi TA”.
Then JM come back after having led the MEC in C2000 (the high water mark for DL pilots). He led us to TA2, which was in effect until March of this year.
Totally agree this pilot group owes him much.
#23
Yes he was, and I think you are in the definite minority, btw. I’m not saying it was fantastic, but it was a massive improvement on TA1 (and kept the PS formula unchanged, forcing the company to reinstate the non-cons back up to our rate). And it certainly did not suck.
#24
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Joined APC: Jan 2020
Posts: 379
Yes he was, and I think you are in the definite minority, btw. I’m not saying it was fantastic, but it was a massive improvement on TA1 (and kept the PS formula unchanged, forcing the company to reinstate the non-cons back up to our rate). And it certainly did not suck.
#25
Gets Weekends Off
Joined APC: Sep 2014
Posts: 4,909
And I’ll add that by maintaining status quo on our PS formula, ALPA effectively lowered the transition point that exists between 10% and 20% profit sharing. $2.5B in inflation-adjusted value in November 2023 is over 20% lower than the same number in January 2019. I’m not sure if the company ever tried to index that cutover point to inflation, but it’s a small win amidst many losses resulting from inflation.
#26
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Joined APC: Aug 2011
Posts: 167
A fuller picture for anyone not here at the time: C15’s TA1 was voted down in late 2015 after a groundswell of organic/grassroots outcry, which is where the “Widget TA discussion” FB group started (which has morphed into the current “Widget Pilot Contract/Cateer Discussion page” - aka Triangle Big Mad). Social Media played a HUGE role in voting down TA1. The attempted “trade” of the PS formula to fund the meager raise was the catalyst for it all. Basically, it took money from one pocket, put it in the other, and called it a raise. BS.
Once the TA1 was voted down (the first time in Delta history a TA was rejected), we were pizzed. Many of the reps were recalled, “Green means Go!” Donatelli screamed “PEB! PEB!” In PTC in an attempt to save the flagging agreement, and he was effectively forced to resign. Note: UA basically went through the exact same process from their recent “Tumi TA”.
Then JM come back after having led the MEC in C2000 (the high water mark for DL pilots). He led us to TA2, which was in effect until March of this year.
Totally agree this pilot group owes him much.
Once the TA1 was voted down (the first time in Delta history a TA was rejected), we were pizzed. Many of the reps were recalled, “Green means Go!” Donatelli screamed “PEB! PEB!” In PTC in an attempt to save the flagging agreement, and he was effectively forced to resign. Note: UA basically went through the exact same process from their recent “Tumi TA”.
Then JM come back after having led the MEC in C2000 (the high water mark for DL pilots). He led us to TA2, which was in effect until March of this year.
Totally agree this pilot group owes him much.
#27
Gets Weekends Off
Joined APC: Jul 2008
Posts: 4,921
I still remember contract 2011 where we lowered the ps percent from 15 to 10 percent for the first 2.5 billion for a 2 percent raise that was low enough that our me too clause kicked in essentially giving the ps away for absolutely nothing. I believe that scumbag LM was still in charge then. He’s a real piece of ****. I believe he made a comment about bringing a tear to his eye seeing our contract completely matured. Nevermind that we weren’t even close to what the prebankruptcy contract paid.
#28
Because of supply and demand mostly, but also because you don't have a union.
#29
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Joined APC: Feb 2007
Position: Big ones
Posts: 708
Many of you may have read the ATL November base newsletter. In it, once again, is the typical disingenuous management article about Delta Air Lines employee profit sharing. This type of article seems to appear at regular intervals during the runup to the profit-sharing payout in February. The gist of the article is that Delta expects you to do a lot of extra things while “technically” not being paid for them. But it’s ok, because “Delta says thank you by paying out profit sharing that no other airline can rival”. Translation…Delta pays you this profit sharing check out of the goodness their hearts. The writer of this article has been on the seniority list for 32 years…so he should know better.
Let’s remind our uninformed and/or “koolaid” drinking members that the Delta Air Line Pilot’s Association, our Union, negotiated the profit-sharing payout in 2004 under LOA #46 (2004) [refer to Delta Pilot’s Contract History document]. This was the agreement where our pensions were terminated/frozen, and we received the first of two large pay cuts. The first pay cut was a 32.5% paycut. LOA #46 was pushed through with the management telling us, “These pay and benefit cuts are necessary to avoid bankruptcy”. So, the Union approved the agreement. Ten months later Delta filed for bankruptcy 9/14/05, the same day as NWA filed for bankruptcy…coincidence hmm? The Delta bankruptcy led to and LOA #50 (2005) and LOA #51 (2006) and the dumping/termination of our pilot pension to the governments PBGC. The second pay cut was for an additional 14% pay cut. FOR ALL OF THESE concessions the PILOT’S UNION negotiated profit sharing at 15% pre-tax payout, 20% on pre-tax income over $1.5B. Delta and NWA announced the merger 4/14/2008.
Delta management has since tried and successfully reduced the profit-sharing payout a few times. The first reduction came in 2008. Profit sharing reduced to a 10% payout of pre-tax income up to 2.5%, and the 20% payout trigger raised from $1.5B to $2.5B.
Every year around profit sharing time there is a propaganda campaign where management takes full credit for the development of, and payout of the profit-sharing payout. It’s a flat out lie. The profit-sharing check was brought to you by the Pilot’s UNION and management has tried to reduce the payout several times (out of the goodness of their hearts).
Let’s remind our uninformed and/or “koolaid” drinking members that the Delta Air Line Pilot’s Association, our Union, negotiated the profit-sharing payout in 2004 under LOA #46 (2004) [refer to Delta Pilot’s Contract History document]. This was the agreement where our pensions were terminated/frozen, and we received the first of two large pay cuts. The first pay cut was a 32.5% paycut. LOA #46 was pushed through with the management telling us, “These pay and benefit cuts are necessary to avoid bankruptcy”. So, the Union approved the agreement. Ten months later Delta filed for bankruptcy 9/14/05, the same day as NWA filed for bankruptcy…coincidence hmm? The Delta bankruptcy led to and LOA #50 (2005) and LOA #51 (2006) and the dumping/termination of our pilot pension to the governments PBGC. The second pay cut was for an additional 14% pay cut. FOR ALL OF THESE concessions the PILOT’S UNION negotiated profit sharing at 15% pre-tax payout, 20% on pre-tax income over $1.5B. Delta and NWA announced the merger 4/14/2008.
Delta management has since tried and successfully reduced the profit-sharing payout a few times. The first reduction came in 2008. Profit sharing reduced to a 10% payout of pre-tax income up to 2.5%, and the 20% payout trigger raised from $1.5B to $2.5B.
Every year around profit sharing time there is a propaganda campaign where management takes full credit for the development of, and payout of the profit-sharing payout. It’s a flat out lie. The profit-sharing check was brought to you by the Pilot’s UNION and management has tried to reduce the payout several times (out of the goodness of their hearts).
#30
Super Moderator
Joined APC: Dec 2007
Position: DAL 330
Posts: 6,868
I still remember contract 2011 where we lowered the ps percent from 15 to 10 percent for the first 2.5 billion for a 2 percent raise that was low enough that our me too clause kicked in essentially giving the ps away for absolutely nothing. I believe that scumbag LM was still in charge then. He’s a real piece of ****. I believe he made a comment about bringing a tear to his eye seeing our contract completely matured. Nevermind that we weren’t even close to what the prebankruptcy contract paid.
Yep, and when they tried the same game plan in 2015 it became obvious that the companies plan was to fund our pay raises through decreasing PS. This would have been a disaster for us because over time our PS would have greatly reduced if not outright eliminated and our pay rates would be…………………... You guessed it - industry standard. What blew me away was the fact that DALPA could not see this and gave C2015 the full court press. We wisely rejected that TA overwhelmingly and effectively took PS trades off the table.
DALPA did a good job in securing PS when our PWA was decimated and then was promptly willing to give it away. As far as the company goes we got PS when a record year was about 1B in profits. They would never have agreed to our current plan if they had any idea how profitable we would become. Just goes to show how well that the then management team new the industry and their complete lack of ability to forecast and plan accurately. All they did was extrapolate the past linearly. Granted it’s extremely hard to do but isn’t that why they demand 7 figure compensation?
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