3B4 coal in your stocking
11-13-2015 | 05:06 AM
#181
Thread Starter
Racketeer
Joined: Mar 2015
Posts: 13,364
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From: N60.4858 W149.9327
Why Delta pilots won’t be getting their contractual raise on January 1, 2016
Our current contract (C2012) will continue in effect until a new agreement is reached. Within the contract are two clauses that are mechanisms for recovery instituted with LOA 46 and LOA 51. These two clauses are 3.B.4. and 3.I. They are better known as the “me too” clause and “profit sharing.”
The “me too” clause is the pay rate adjustment clause that syncs Delta pilot pay rates with the industry average. There are two parts to this clause that make it work. The first is the trigger and the second is the comparison. These two parts are mostly controlled by the decisions management makes regarding the compensation of other non-pilot employees.
The first part of the clause is the trigger date. The trigger date is the date that the non-pilot employees raises take affect. The second part of the clause is the actual comparison. The effective dates and amounts of the raises are at the sole control of management. All decisions made by management are deliberate and have been designed to exclude pilots from the contractual raises due to the “me too” clause.
Our pay rates as of April 1, 2015 are synced to the industry average calculation in the “me too” clause. This means as our industry peers defined as United and American get rate increases, our rates increases when raises are given to Delta employees. On January 1, 2016 the industry average increases by 3%. Delta management has decided to give non-pilot employees a raise on December 1, 2015. This date was chosen specifically to exclude pilots from their “me too” raise.
The announced pay raise on December 1, 2015 is unique and unprecedented at Delta. There are three items unique to this compensation change.
1) The pay rate increase is actually the second raise during the 2015 calendar year. Never before has Delta given two raises in a single calendar year, and these two raises are only 8 months apart.
2)The total raise is the largest given to non-pilot employees ever. The first raise on April 1, 2015 was 3% and the second on December 1, 2015 is 14.5%. The total raise for 2015 will be 17.5% and will be large enough to fore go additional raises for the immediate future.
3) The last and most telling action by management is the timing of the raise. The timing of December 1, 2015 was chosen intentionally to trigger the comparison before the industry adjustment on January 1, 2016. Another unusual change is the compensation plan has two effective dates. December 1, 2015 only applies to the pay raise which triggers the comparison for pilots. The remaining portions of the compensation change are effective on January 1, 2016. The date the additional 401k contribution, and the profit sharing changes take effect is on January 1, 2016. The raises were intentional separated from the rest of the compensation change to specifically exclude pilots from their raise.
This deliberate attempt to exclude pilots from their contractual raise has several benefits to management. By excluding this raise they are attempting to suppress pay rates for an enhanced bargaining position. Effectively C2012 has two and potentially more annual rate increases based on industry average. As of now, the industry rate increases are 3% on January 1, 2016 and an additional 3% on January 1, 2017. These two raises at a minimum should be built in to the C2012 assumptions for negotiating. The fact that C2012 has pay enhancements that continue beyond the amendable date is a unique and valuable situation that effectively negates the time penalty associated with section 6 bargaining. Management would very much like to reverse this situation for future bargaining.
Some history about this clause is key to understanding the reason for and designed intent of the “me to” clause. First, the clause was originally written into the Delta PWA during the LOA 46 negotiation. This letter was negotiated to help Delta avoid bankruptcy. As a mechanism of recover for the loss in negotiated pay rates, the “me too” was intended as a backstop for pilot rates tied to other Delta employees raises and the industry average for pilot pay rates. Second, because there was concern about the possibility of management trying to avoid this raise in the future, language was crafted to secure these raises. Once 30% of the non-pilot workforce was granted a raise, a pilot comparison was triggered. Additionally an 18 month revolving window was added to protect against management’s manipulation of raises to avoid the trigger. This was supposed to protect the integrity of the relationship between other Delta employees’ raises and pilot raises. Can we expect all of management’s future manipulations to be for seen and preventions written into the PWA or are we able to rely on the trust assumed and written into the current PWA in LOA 4?
As is now evident our management has found and exploited a weakness in the language to circumvent the intent of the “me too” clause. This situation was for seen but the language used to protect against managements manipulation may now not be completely adequate. This brazen disregard for contractual intent and disrespect of the pilots’ efforts in saving Delta speaks volumes about how pilots are viewed by management. Pilots’ efforts both now and in the past are not to be rewarded even though their statements at the time were a complete contradiction to today’s actions. (see below)
Not only is this action a clear violation of the intent written into the contract over 10 years ago, but it is done at a time when the status quo requirement of the Railway Labor Act requires that changes involving compensation are prohibited. The company is making record profits and the affordability of the raise is not an issue, now is the time intended and appropriate for this clause to continue in effect. The “me too” clause history shows a precedent that must be considered. If this action remains unchallenged we have accepted management’s manipulation and have set a precedent that we will not challenge misinterpretation of our PWA. This action is no less than stealing 3% of your pay in 2016 and even more in future years.
Are we as Delta pilots willing to stand by and allow this or are we going to defend our contract and take action of our own to stop the abuse of our PWA by management? Let your representatives know your opinion of this attempt to circumvent our contract. Show your support for a grievance requiring compliance with 3.B.4. on January 1, 2016. The MEC is meeting all next week in ATL, your representatives need to hear your voice. The current PWA has to be defended while negotiations continue. 3.I. “profit sharing” may need defending next. Set the right precedent.
Excerpted from SEC filing dated March 22, 2007: While the emergence compensation for Delta’s pilots and flight dispatchers is covered by collective bargaining agreements, both of these groups have fully participated in the measures that were essential to Delta’s survival, recovery and planned emergence from Chapter 11 as a strong, healthy competitor. These groups also will fully share in the successes that their sacrifices and contributions are making possible. “A bedrock principle of Delta’s transformation is that Delta people around the world would benefit from the success their hard work helped make possible,” said Gerald Grinstein, Delta’s Chief Executive Officer. “Thanks to their remarkable efforts, Delta is poised for success. We are extremely pleased to honor our commitment by ensuring that all Delta people will have a new, competitive and more rewarding compensation package when the company emerges from Chapter 11 later this spring.”
Our current contract (C2012) will continue in effect until a new agreement is reached. Within the contract are two clauses that are mechanisms for recovery instituted with LOA 46 and LOA 51. These two clauses are 3.B.4. and 3.I. They are better known as the “me too” clause and “profit sharing.”
The “me too” clause is the pay rate adjustment clause that syncs Delta pilot pay rates with the industry average. There are two parts to this clause that make it work. The first is the trigger and the second is the comparison. These two parts are mostly controlled by the decisions management makes regarding the compensation of other non-pilot employees.
The first part of the clause is the trigger date. The trigger date is the date that the non-pilot employees raises take affect. The second part of the clause is the actual comparison. The effective dates and amounts of the raises are at the sole control of management. All decisions made by management are deliberate and have been designed to exclude pilots from the contractual raises due to the “me too” clause.
Our pay rates as of April 1, 2015 are synced to the industry average calculation in the “me too” clause. This means as our industry peers defined as United and American get rate increases, our rates increases when raises are given to Delta employees. On January 1, 2016 the industry average increases by 3%. Delta management has decided to give non-pilot employees a raise on December 1, 2015. This date was chosen specifically to exclude pilots from their “me too” raise.
The announced pay raise on December 1, 2015 is unique and unprecedented at Delta. There are three items unique to this compensation change.
1) The pay rate increase is actually the second raise during the 2015 calendar year. Never before has Delta given two raises in a single calendar year, and these two raises are only 8 months apart.
2)The total raise is the largest given to non-pilot employees ever. The first raise on April 1, 2015 was 3% and the second on December 1, 2015 is 14.5%. The total raise for 2015 will be 17.5% and will be large enough to fore go additional raises for the immediate future.
3) The last and most telling action by management is the timing of the raise. The timing of December 1, 2015 was chosen intentionally to trigger the comparison before the industry adjustment on January 1, 2016. Another unusual change is the compensation plan has two effective dates. December 1, 2015 only applies to the pay raise which triggers the comparison for pilots. The remaining portions of the compensation change are effective on January 1, 2016. The date the additional 401k contribution, and the profit sharing changes take effect is on January 1, 2016. The raises were intentional separated from the rest of the compensation change to specifically exclude pilots from their raise.
This deliberate attempt to exclude pilots from their contractual raise has several benefits to management. By excluding this raise they are attempting to suppress pay rates for an enhanced bargaining position. Effectively C2012 has two and potentially more annual rate increases based on industry average. As of now, the industry rate increases are 3% on January 1, 2016 and an additional 3% on January 1, 2017. These two raises at a minimum should be built in to the C2012 assumptions for negotiating. The fact that C2012 has pay enhancements that continue beyond the amendable date is a unique and valuable situation that effectively negates the time penalty associated with section 6 bargaining. Management would very much like to reverse this situation for future bargaining.
Some history about this clause is key to understanding the reason for and designed intent of the “me to” clause. First, the clause was originally written into the Delta PWA during the LOA 46 negotiation. This letter was negotiated to help Delta avoid bankruptcy. As a mechanism of recover for the loss in negotiated pay rates, the “me too” was intended as a backstop for pilot rates tied to other Delta employees raises and the industry average for pilot pay rates. Second, because there was concern about the possibility of management trying to avoid this raise in the future, language was crafted to secure these raises. Once 30% of the non-pilot workforce was granted a raise, a pilot comparison was triggered. Additionally an 18 month revolving window was added to protect against management’s manipulation of raises to avoid the trigger. This was supposed to protect the integrity of the relationship between other Delta employees’ raises and pilot raises. Can we expect all of management’s future manipulations to be for seen and preventions written into the PWA or are we able to rely on the trust assumed and written into the current PWA in LOA 4?
As is now evident our management has found and exploited a weakness in the language to circumvent the intent of the “me too” clause. This situation was for seen but the language used to protect against managements manipulation may now not be completely adequate. This brazen disregard for contractual intent and disrespect of the pilots’ efforts in saving Delta speaks volumes about how pilots are viewed by management. Pilots’ efforts both now and in the past are not to be rewarded even though their statements at the time were a complete contradiction to today’s actions. (see below)
Not only is this action a clear violation of the intent written into the contract over 10 years ago, but it is done at a time when the status quo requirement of the Railway Labor Act requires that changes involving compensation are prohibited. The company is making record profits and the affordability of the raise is not an issue, now is the time intended and appropriate for this clause to continue in effect. The “me too” clause history shows a precedent that must be considered. If this action remains unchallenged we have accepted management’s manipulation and have set a precedent that we will not challenge misinterpretation of our PWA. This action is no less than stealing 3% of your pay in 2016 and even more in future years.
Are we as Delta pilots willing to stand by and allow this or are we going to defend our contract and take action of our own to stop the abuse of our PWA by management? Let your representatives know your opinion of this attempt to circumvent our contract. Show your support for a grievance requiring compliance with 3.B.4. on January 1, 2016. The MEC is meeting all next week in ATL, your representatives need to hear your voice. The current PWA has to be defended while negotiations continue. 3.I. “profit sharing” may need defending next. Set the right precedent.
Excerpted from SEC filing dated March 22, 2007: While the emergence compensation for Delta’s pilots and flight dispatchers is covered by collective bargaining agreements, both of these groups have fully participated in the measures that were essential to Delta’s survival, recovery and planned emergence from Chapter 11 as a strong, healthy competitor. These groups also will fully share in the successes that their sacrifices and contributions are making possible. “A bedrock principle of Delta’s transformation is that Delta people around the world would benefit from the success their hard work helped make possible,” said Gerald Grinstein, Delta’s Chief Executive Officer. “Thanks to their remarkable efforts, Delta is poised for success. We are extremely pleased to honor our commitment by ensuring that all Delta people will have a new, competitive and more rewarding compensation package when the company emerges from Chapter 11 later this spring.”
Last edited by notEnuf; 11-13-2015 at 05:37 AM.
11-14-2015 | 07:02 AM
#182
La Familia Delta
Joined: Oct 2006
Posts: 2,467
Likes: 0
From: B-717 FO / C-17 AC
NYC and DTW (and who else?) passed a resolution to file a 3B4 grievance. Does that mean it now has to be voted on at the MEC meeting? This is a great grievance to fast track to arbitration. This really only applies for 2016 since the non-pilot employees will eventually get another raise between now and 2017.
11-14-2015 | 08:20 AM
#183
Gets Weekends Off
Joined: Sep 2008
Posts: 6,971
Likes: 0
From: Kickin’ Back
NYC and DTW (and who else?) passed a resolution to file a 3B4 grievance. Does that mean it now has to be voted on at the MEC meeting? This is a great grievance to fast track to arbitration. This really only applies for 2016 since the non-pilot employees will eventually get another raise between now and 2017.
This is where I think you are wrong. I do not think this will happen.
By giving a big raise to the non contracts the company achieves a number of goals. 1. Make the non contracts happy with getting a close to 18% raise in one year. 2. Cutback of the non contracts PS. 3. Can now avoid 3.b.4 for at least a couple of years if not more by not giving out any raises because they gave such a big one. 4. This has the secondary effect of essentially taking the PS away from the non contracts for nothing.
Denny
11-14-2015 | 08:40 AM
#184
Back on TDY
Joined: Apr 2008
Posts: 12,487
Likes: 0
From: 747-400 Captain
[/B]
This is where I think you are wrong. I do not think this will happen.
By giving a big raise to the non contracts the company achieves a number of goals. 1. Make the non contracts happy with getting a close to 18% raise in one year. 2. Cutback of the non contracts PS. 3. Can now avoid 3.b.4 for at least a couple of years if not more by not giving out any raises because they gave such a big one. 4. This has the secondary effect of essentially taking the PS away from the non contracts for nothing.
Denny
This is where I think you are wrong. I do not think this will happen.
By giving a big raise to the non contracts the company achieves a number of goals. 1. Make the non contracts happy with getting a close to 18% raise in one year. 2. Cutback of the non contracts PS. 3. Can now avoid 3.b.4 for at least a couple of years if not more by not giving out any raises because they gave such a big one. 4. This has the secondary effect of essentially taking the PS away from the non contracts for nothing.
Denny
That's secondary however IMO. The serious leverage for us is maintaining our contract. Even IF there are no more 3.B.4 raises, the profit sharing and current provisions will really hurt management as the training churn begins in full force. We truly have time on our side.
Carl
11-15-2015 | 12:32 AM
#185
Gets Weekends Off
Joined: Sep 2008
Posts: 6,971
Likes: 0
From: Kickin’ Back
I disagree Denny. The non-contracts realize they got no pay raise at all. They just got their profit sharing changed to pay rates. Will they tolerate no pay raises for a couple of additional years? I don't think so...not without a demonstrable change in enthusiasm.
That's secondary however IMO. The serious leverage for us is maintaining our contract. Even IF there are no more 3.B.4 raises, the profit sharing and current provisions will really hurt management as the training churn begins in full force. We truly have time on our side.
Carl
That's secondary however IMO. The serious leverage for us is maintaining our contract. Even IF there are no more 3.B.4 raises, the profit sharing and current provisions will really hurt management as the training churn begins in full force. We truly have time on our side.
Carl
Second paragraph, to a degree, I agree with you.
Denny
11-15-2015 | 02:43 AM
#186
Gets Weekends Off
Joined: May 2015
Posts: 181
Likes: 0
I disagree Denny. The non-contracts realize they got no pay raise at all. They just got their profit sharing changed to pay rates. Will they tolerate no pay raises for a couple of additional years? I don't think so...not without a demonstrable change in enthusiasm.
Carl
Carl
Carl,
I believe they can give the non-contract employees a "bonus" v. pay raise, and that would not trigger a raise for us. (There had been language that protected us with non-contracts getting a bonus, but that goes away at the end of 2015, I think)
11-15-2015 | 07:03 AM
#187
Moderator
Joined: Dec 2007
Posts: 7,265
Likes: 112
From: DAL 330
Totally correct check out PWA 3.B.5.
Scoop
11-21-2015 | 11:50 AM
#189
Straight QOL, homie
Joined: Feb 2012
Posts: 4,202
Likes: 1
From: Record-Shattering Profit Facilitator
The resolution was watered down this week:
"The MEC Chairman has been directed by MEC Resolution to investigate and "if appropriate" pursue a grievance on behalf of the Delta pilots."
"if appropriate" being the loophole
"The MEC Chairman has been directed by MEC Resolution to investigate and "if appropriate" pursue a grievance on behalf of the Delta pilots."
"if appropriate" being the loophole
12-01-2015 | 08:17 AM
#190
Otto
Joined: Jul 2013
Posts: 1,806
Likes: 0
From: Turkish Pile Driver
Per the Deltanet login page "Eligible ground, flight attendant and merit employees around the world will earn more in base pay starting today – 14.5 percent more, a number unprecedented in Delta’s history."
Doesn't this statement add weight to the assertion that this raise was given specifically to avoid 3.B.4?
Doesn't this statement add weight to the assertion that this raise was given specifically to avoid 3.B.4?
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