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Details on Delta TA

Old 05-31-2015 | 04:52 AM
  #5201  
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Originally Posted by notEnuf
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.

Might want to check that math after the .55% increase from 3.B.4. Its about 17.4(5)% across the board.
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Old 05-31-2015 | 04:53 AM
  #5202  
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Originally Posted by notEnuf
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

Does this number include, DPSP, etc? I do not think so and the number is higher.
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Old 05-31-2015 | 05:01 AM
  #5203  
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Originally Posted by forgot to bid
You know what would've been cool?

If DALPA had laid out the exact cost to operate CRJ900s/E175s here and taken into account the quality control, productivity and ROI that operating those jets at mainline instead of DCI provided the company and then published it and flight for it.

Whatever nickle and dime short comings we'd had because of pilot hourly pay would've been more than made up for with improved QC, productivity and roi.

You could have made that argument and the it down for all to know is what you demanded.
Not to mention all the over head associated with running separate companies. Just think of all the bonuses that have to paid out to all of those executives for keeping pilot costs low. I can't imagine how fielding not one, but several companies full of managers, vice presidents, board of directors, ETC... saves us money!
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Old 05-31-2015 | 05:15 AM
  #5204  
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Default A+b=c

Part C

Profit sharing is worth 10% of 2.5B + 20% of 2.5B+

2014 was 4.5B

250M + 400M based on 2014 payout. = 650M

If monetized dollar for dollar: 650M

That's a 28.8% pay increase day 1. If you keep profit sharing at 20% above 4.5 billion this is a cost neutral deal.

The original Question was:

Is this to much to ask?

NO!, its too Little!

Cost neutral is a 28.8% raise if we reset profit sharing to 4.5B

Ed Bastian could still say "cost neutral" and we would still participate in the upside.


Disclaimer:

That's just pay. We need to make gains. For every dollar value we give up we are a cost savings to management. Notice I said gains not the c word. I can't even use that word in this, the best negotiating environment in our history.
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Old 05-31-2015 | 05:30 AM
  #5205  
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Originally Posted by notEnuf
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
I remember those tables.
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Old 05-31-2015 | 05:33 AM
  #5206  
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Originally Posted by notEnuf
Part C

Profit sharing is worth 10% of 2.5B + 20% of 2.5B+

2014 was 4.5B

250M + 400M based on 2014 payout. = 650M

If monetized dollar for dollar: 650M

That's a 28.8% pay increase day 1. If you keep profit sharing at 20% above 4.5 billion this is a cost neutral deal.
You might want to check your math. The pilots are now about 37% of the profit sharing pool.
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Old 05-31-2015 | 05:52 AM
  #5207  
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The scrutiny is welcome. Please show me the data and I will adjust it.

Payout Calculation PTIX Levels
% of PTIX Paid under Program $0 to $2.5 billion 15.0% in 2012 10.0% in 2013 and each year thereafter Over $2.5 billion 20.0%

This is from section 3 compensation I. profit sharing of the current PWA
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Old 05-31-2015 | 05:58 AM
  #5208  
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Originally Posted by forgot to bid
You know what would've been cool?

If DALPA had laid out the exact cost to operate CRJ900s/E175s here and taken into account the quality control, productivity and ROI that operating those jets at mainline instead of DCI provided the company and then published it and flight for it.
So just how are you going to get management to publish competitively sensitive data (CPA costs)?

Btw, the analysis was done. The MEC was briefed. With the actual numbers, not speculation and assumption. It didn't work out as you wish it did. Ask the current and former code-share guys if you want another source.

Originally Posted by forgot to bid
Whatever nickle and dime short comings we'd had because of pilot hourly pay would've been more than made up for with improved QC, productivity and roi.
Management disagrees with your assumptions, and they have the data to back it up. Since C2012 the cost differences have grown more stark, as our costs are up 20% and DCI costs are down substantially (PCL bankruptcy reset, contract renegotiations). DCI is down about 150 jets, mainline is up a bunch. And that's with fuel dropping 40%, which makes the RJ's more competitive.

Oh, and before you trot out your 3 year old spreadsheets (how do those look now anyway ) UAL is just beginning their RJ reductions this year. Other than upgauging, AMR hasn't really gotten started in a meaningful way except for transferring Envoy assets. So for something that was "going to happen anyway" it took our competitors 3 years to begin. We're already back in negotiations for a new deal. FDX, SWA, and UPS "wound the clock." UAL won't negotiate for another year and still lags us by a year. APA traded the guts of their contract (scope, sick leave, disability, work rules) for pay, but is now stuck until 2020 (new amendable date).

And you're flying in a shiny "new" jet, and DCI has about 30% fewer pilots.
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Old 05-31-2015 | 06:21 AM
  #5209  
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In 2012, our economic analysis folks did not predict the billions in profits. So we accepted paltry pay raises and concessions. Now we know the truth moving forward. The company wants a fast contract because it will be difficult to negotiate in this climate of ridiculous profits, including stock buy backs, dividends, etc. I would predict they go on another buying spree, i.e. Virgin Atlantic, refineries, GOL and RJ purchases. They did it post C2102.

"Those who can not remember the past are condemned to repeat it".
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Old 05-31-2015 | 06:22 AM
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Originally Posted by EdGrimley
Fixed your statement....

Not if we keep writing more outsourced jumbo RJ's into these TA's every 3 or 4 years. Let's hold the line for once. I understand many of those crafting these TA's are looking after their own seniority situation and don't mind horse trading larger RJ's keeping the divisive outsourced RJ dream of Leo alive. It's unnecessary and short sighted. Let's do something good for the industry.

Gloopy suggested creating a timeline to sunset outsourced flying. This is the correct way to go. Fight scope on the top and bottom end. It creates solidarity. We write letters to our government leaders to fend off the middle east carriers while we let our union take us down the primrose path of further scope creep that harms all Delta pilots. It's the definition of insanity.
GREAT post Ed.

Carl
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