Very short sighted- now is the time to reel it in and finally shove the camel out of the tent.

Concessions needed for it? nah... but it's time to lock it in.

Delta C2015
 

Delta doesn't need anymore long term debt, contracts or leases associated with 76 seat jets. We are in this for the long haul, managers pump the stock and retire.


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Exactly. And clean up the Alaska Marketing Agreement before that resurfaces with Bastian at the helm.


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A + b = c
 

Attachment 2119

Is this too much to ask?

Can we restore this pay scale on the date of signing? The answer requires two pieces of information. In this vacuum of information I will try to explain how we get there. Some of the information I will reference is not public but every Delta pilot has access to it. I would like this to be a fact based argument that can be logically presented to any Delta pilot so your scrutiny is very welcome.

A - the cost of the increase in pay rates

B - can they be palatable enough to management to be accepted

A + b =c
 

Part A

This document was put out by DPA. I am posting it for reference only. This is NOT an endorsement of DPA. I am unwilling to duplicate work already done. (lazy and don't mind stealing information)

This only a screen shot of the document. It shows a single number is representative of the percent needed to get to the scale. The other pages of their document mirror this for other positions.

18.3%

Attachment 2120


We are asking for an 18.3% increase in pilot salaries.

Since it appears you have the contract details that have been TA'd at this point could you please post them. It would be nice to know what our fate actually is. So far all I know is what has been put out in the contract updates which for the most part are far to vague to be of any use. In reading your post you must have the details. Please Post!!!!

That ignores inflation. My calculations, using the miserly USGov CPI is that to get to the posted C2k rates in 2015, it would need to be a 62% raise, bringing the 12yr 777/747A rate to $439.14.

Not saying that is attainable, or that it in any way takes into account other factors, but such is the effect of even relatively flat inflation if we look solely at pay rates.

A+b=c
 

What is 18.3% in dollars.

You will have to use your surface or go to Deltanet for this one.

Inside our business: Flight Operations - page 5 the flight ops expense graph shows pilot salaries at 75% of a 3 billion dollar budget or 2.25 billion.

2.25B X 18.3% = 411.75M

We are asking for:

$412 million/year

I am a bit confused by your post. If the forum rumor is to be believed that is where we are in negotiations. A 9% signing bonus 1 July and 9% more on the amendable date which compounds to about 18.8%. You want to reduce that to 18.3%??? Personally I would like to see a bit more but will need to see the entire package to decide.

a+b=c
 

Part B

Is there a way to make this scale acceptable to management?

Management is accountable to the board but more importantly wall street. This group of managers has done an excellent job with the merger and the climb from bankruptcy. Credit is due here and their track record must be respected.

If this is going to happen they need to be able to frame it as an acceptable reward of our partnership or as at minimal cost or cost neutral.

We have some things that are in our control.

1) This deal and its timeline are about labor peace.

Labor peace is the foundation of the brand. They have a lot to lose if we were less motivated and moral was bad. Think about all the effort to get you out in front of the customer. Your hello my name is captain xxx cards. The HVC recognition efforts. The podium presentations when we are late. All of this goes away and that filters to other work groups. Gate agents upset because flight crews are late. Flight attendants who are not pleasant because they are boarding without pilots because we aren't willing to hustle to the next gate. That sets a negative tone when people are on airplanes waiting for crew. The operation is humming so well we have to be told to slow down occasionally.

Right now we command a 15% premium domestically. That disappears quickly if we go much beyond the amendable date.

2) They need to take back some profit sharing.

This is hugely unpopular, I know and agree we should keep it. Here's why. The goal is to be recognized as a high quality industrial company that is able to consistently return cash to shareholders. We are almost there. Our financials are inline, margins are good, debt load improving, credit improving. (very close to investment grade bond rating 6 years out of bankruptcy)
A major hurtle is compensation structure. High quality industrials don't pay profits to labor. The 2014 16.58% profit sharing is about as high as they can go with out breaking the mold. Normally pay based on company performance is for only the top tier not labor. If you pay a percentage the recipient has to be bringing revenue to the company. Sales is the obvious example. This is evident in the Q+A portion of the earnings transcript I posted earlier. If you heard the audio you know Mr. Anderson wanted nothing to do with this question but telegraphed a change.


The flip side is that you don't pay more than your peers for labor unless they are worth it. We are worth it. Our operational statistics are stellar. Again this would suffer if we are less happy.

How can they reward us and save face on cost?