Airline Pilot Central Forums - Details on Delta TA

THE CON PAPER. READ IT AND WEEP!

(from Hanger Talk Chit Chat)

The TA Considerations, CONcerns, and CONsequences list below is read-only. While other CON papers will be more expansive, our goal is to provide a basic, concise, bullet-approach to the TA issues. It can be printed and shared with other union members unfamiliar with either some of the issues or with the pilot Chitchat forum. The associated website address is integrated in the list to help drive members to this forum.
This collaborative effort aims to shed light on areas of the contract deemed detrimental to the pilot group. Ideally, it will grow and evolve as input is received from members. Input can be provided in a separate thread, vetted for accuracy by the group, then added to an amended list.
We did not address the PRO's of the TA, as we felt the MEC road shows, PROmotions, and marketing blitz will more than adequately fill that square. Clearly, we believe the TA is inadequate in many areas, especially in the context of DAL enjoying unprecedented prosperity.
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TA 2015
CONsiderations, CONcerns, and CONsequences
All of the following should be viewed in the context of a company enjoying unprecedented profitability.
- projecting profits in the area of $6 billion for 2015
- reduced debt by $10B in past six years, two years ahead of its originally stated
goal in 2009.
- bought $1.1 billion in share repurchases in 2014, and BOD recently
announced an additional $5 billion in share repurchase from now through
12/31/17
- total net income of $13B since signing of C2012
- realized $8B windfall in 2013 due to EU carbon tax
thehangar.forumchitchat.com

1. COMPENSATION
*** Useful to keep in mind that historically-accepted average of 2.5% yearly inflation equates to 9% over the life of a 3 1/2 yr contract. Many prefer to ignore this, but if you're trying to fill a bucket, it would be helpful to know how much is leaking out the bottom.
PAYRATES:
- Increases of 8/6/3/3. After "horse-trading" 5.75% for PS adjustment, it becomes
8/ 0.25/ 3/ 3. Corrected for inflation, the net impact to our real income (i.e.
purchasing power), is 5.5 / -2.25/ 0.5/ 0.5. In other words, the last three pay
increases spanning 1/16 thru 1/18 net a loss in buying power
- There was much discussion about “soft” money increases in this deal, as a means
to increase total compensation without adding to pay rates. We are left with
three such pay adjustments virtually negated by inflation by the end of proposed
contract.
1. Vacation pay: 9.3% increase (3:15 to 3:30) coincides with compounded
inflation rate over life of contract ***. Thus, by 12/31/18, rate will be
equivalent to present rate in real income. The 15 minute increase is for pay
only, no additional credit.
2. CQ Training: Again, 9.4% increase (3:45 to 4:00) coincides with
compounded inflation rate over life of contract ***. By 12/31/18, rate will be
equivalent to present rate in real income.
3. Per Diem: Step increase to $.10/ hr ($2.35) domestic equates to a 9%
adjustment. Corrected for inflation, rate in real income is once again
completely negated by end of contract. Additionally, 2004 per diem was
$2.40.
- and DC, while Increased from 16 to 17 percent (6% increase), will not be
realized one year after the amendable date.
- Preliminary cost analysis of 2015 TA represents a total of $1.1B total value added
over 3 1/2 year term of TA. Coincidentally, DAL also repurchased $1.1B of its
stock in 2014 and lost $1.1B in fuel hedging in Q1 2015.
- TA 2015 presents diminished increase in value relative to increase from C2012,
despite Company being five times as profitable in 2015 (est.) versus 2012. C2012
resulted in a 20% cumulative increase (uncorrected for inflation) in value. 2015 TA
represents only a 13.7% premium (uncorrected for inflation) over C2012.
- We do not reach the May 2004 Delta pay rate 2017 (excluding any adjustment
for inflation) until January.
- Executive compensation is now excluded from the profit sharing formula. Pre-tax
income, the metric used to determine profit sharing, has been altered to now
exclude "ANY employee sharing plan or similar arrangement". A subtle hit to PS
with a minor change in language. More to follow with C2019?
2. SICK LEAVE
- A drastic rewrite of Section 14, it is the MOST poorly negotiated section of TA,
with potentially dire consequences.
- By moving the medical release requirement from Section 15B (limited for very
specific FAA certificate-related issues, NOT to include justifying sick absence)
Section 14, it will become commonplace for DAL to request a medical
release. You thereby automatically release your entire medical history to DAL.
- When you sign a release under Section 14 G 2, your release for a “specific
sickness” gives "Delta Health Services" (DHC) potential access to your entire
medical and social history. Your medical history should be between you, your
medical doctors and your AME. Delta has absolutely no place in this.
- TA language has been modified from medical “information” to “release.” A
medical release, in medical jargon, infers a much broader scope.
- "Medical release threshold” is met following 24 or more work days missed due
to sickness during a rolling consecutive 365 day basis (no longer 1 June to
31 May).
- 100-hour trigger for verification is now triggered following 15 missed work
days. This will reduce the amount of sick leave without verification to
approximately 76 hrs.
- It is in a rolling 365-day period, not the sick leave year (1 June to 31 May)
- Your doctor’s note now goes to a “Delta Health Services”, not CPO.
- There is no voluntary verification (i.e. you cannot get a note for a 7-day sinus
infection and turn it in to push your 15-day limit out into the future).
- Volunteer verification will no longer be allowed. Verification will only be allowed
once a pilot hits the trigger.
- Company is no longer required to pay doctor fees or reasonable expenses when
verification is required.
- “Other proof” of illness will be no longer be allowed.
- “Virtual” doctors (Clinics, etc) will no longer be allowed for verification.
3. SCOPE
JV SCOPE:
- Change from the metric of Seat Miles (Equivalent Air Seat Kilometers)
to Block Hours benefits the Company. We would only fly 50% of the BLOCK
HOURS in our trans-atlantic agreement, instead of 50% of the SEAT. In other
words, Delta could fly one 757/767 or A330 while AF is flying their A380, where
presently we would have to fly four 757s or nearly three 767s or two A330s on the
same route to match the A380’s capacity! Do we like wide body flying? This is the
largest grab at Delta Mainline flying since the invention of the regional jet. Is there
a chance the new 737-900ER order is to replace some aging 767s operated on
overseas routes? You bet there is, and yes, the -900’s are ETOPS capable. Higher
pay but a lack of movement due to reduced requirement for wide body aircraft
may end up resulting in similar or worse W-2 than lower pay but good
movement. The cost/benefit analysis of this section is crucial in weighing your
future career earnings.
- The new language also puts the current amount of flying (which is in violation
today) in compliance with a 2.5% buffer. So today the company is in violation
of the KLM/AF Joint Venture, while passage of this TA will automatically get
the company in compliance without any additional flying, with another 2.5%
buffer. What is the point of having contract language, if we are just going to
adjust the restrictions when the company fails to live up on their end?
RJ SCOPE:
- Elimination of Sections 1.D.4 - 1.D.6 eliminates the requirement for RJs
to have 85% of their ops limited to 900 statute miles.
- Also eliminates RJ requirement to have 90% of their ops per month to or from ATL,
CVG, DTW, FLL, LAX, MEM, MSP, JFK, LGA, MCO, SLC, SEA, TPA. It eliminates
their 6% cap on ops per month BETWEEN the airports listed (i.e. no nub-hub
restrictions). The elimination of these mileage and route restrictions is replaced
with a requirement to have a fixed ratio of flying relative to Mainline.
- This will eliminate the benefit of Delta moving all that flying to mainline and allow
DCI carriers to fly hub to hub.
4. SCHEDULING
- Withholding LCA trips from FO's:
- The Company will now be allowed to withhold from the PBS award pool up to
75% of OE block hours needed for the month. This will have a negative affect
throughout the First Officer categories.
- Not only will it limit the ability of a First Officer to be bought off a LCA/OE
rotation, it will also limit the amount of trips FO’s can bid. The more senior FO’s
will be required to have additional bids in case trips that he could usually hold
are held back.
- Green slips will be vastly reduced.
- Under the TA, the FO will still be required to be in the category due to the
presence of LCP trip. However, that trip will not be awarded, so reserve
staffing is now one trip's worth greater than required under the staffing formula.
Multiply that by the total amount of LCP trips withheld from PBS award, and
you have some amount of excess reserves in that category. The greater the
amount of training in a category, the greater the excess reserves in that
category.
- So, on a monthly basis a vast majority of the LCA's trips get no first officer
assigned and every FO suffers a QOL penalty because of it. And that is before
the Manpower hit that will ultimately result across the entire system.
- TLV to 81 hours ..... "Work, work, work, work..."
- "Mechanical" removed from language describing "circumstances over which the
Company does not have control" during a reroute. This will now preclude any
rerouted pilot not scheduled to release at his base within time limitation from
receiving premium pay if it was caused by a mechanical.
5. MISCELLANEOUS
- Deletion of the $1 million AD&D insurance for training or test flights. Another
stark reminder of the gap between Company rhetoric proclaiming respect for its
employees and the reality of its actions.
- Increase in new hire freeze to 24 months.