Mgmt Bluff
 

For NA15, management attempted to steamroll us by using an artificially condensed timeline.

Now, they're trying the opposite: attempting to wear us down with threats of an artificially drawn-out timeline.

A ploy to control the timeline is really the only leverage they have at this point. With that counterproposal, they are hoping to institute a feeling of hopelessness and futility to "soften us up." Maybe they'll take a couple hostages to further test our resolve.

But their needs are still acute--and our wants are not.

I can see management bumping up their pay offer--maybe even to 22/7/7--in short order, in an attempt to peel off a few votes and maybe jam it through this MEC before March 1. Of course, they will want those original scope, PS, and QOL concessions in return.

We've got to keep our wits about us, take a deep breath, and calmly cash our profit sharing checks. We need to buy into Malone's leadership.

Let's not allow management to set the timeline, or get into our heads psychologically.

We are in a comfortable position to ride this out and wait for them to pay up.

Why management thinks stalling us will force concessions is beyond me. Our current contract is better and most everyone knows it.

I'm happy waiting till they get it right. The alternative is concessions.

Having Atlanta reps that are on our side instead of management's is a game changer.

The best thing that has happened to our profession in over a decade.

Along with breaking records of profitability every quarter. If not now, when?

Delta Air Lines sees profit margins doubling from cheap fuel

Also, be cautious of wishing Uniteds TA for us. They have nice pay rates but several turds floating in their new TA!!
DAL = Rates & QOL + PS!!

Not wishing their TA... Wishing their precendent of no concessions (arguably some with FRMS) and no changes to PS. They have set that bar for us. We know its achievable.

How long are we willing to wait for them to pay up? Indefinitely? It would seem there has to be some kind of limit. Just wondering.

A strike is usually when you've hit the limit!

No limit. 3B4 can and will be triggered again if the company wants to fight off a FA union after we get our next PS checks. Our contract will essentially keep extending itself with pay raises every 18 months.

Our contract is future proof. Our work rules are good enough but not great and we can live with them. We certainly cant live without them. Out PS is variable and will ride the economic waves both good and bad. Our 3B4 in its current form excludes PS and will keep us in good shape. Holding e190 and 321 rates as part of section 6, and we'll keep great leverage.

So when is 3b4 triggered again?

preach it, brother Ghillis!

18 month rolling calendar, and the next time we'll see the noncons get restless is when they see our 2017 PS check estimations at the end of this year. The company can skirt that by giving them a bonus but bonuses cannot be counted as part of ptix (one time special expense) so it wouldnt affect our payout.

So... What does all of this mean for a new hire awaiting Indoc? Lots of military new hires entering this world of contracts, etc... Rather wide-eyed... Thoughts?

It means follow the mentorship of your fellow brothers and sisters flying the line. We'll take care of you. Your job will be to get through training and get through probation, smile, and learn the contract. We'll need you after probation.

As a military retiree, this is different. It's a job. You are an employee. That said, overall Delta is a good company to work for. Most of what you will hear about the contract will be from those holding views at either extreme. Do your research and search for those who are in the middle and willing to discuss both sides, then make up your mind about what you think is the right thing to do.

It means nothing to you. Hardly means anything to us right now anyways. DALPA folks and DAL folks will do their job.

Great advice. Having been thru 2 mergers and 1 strike, the best advice I could give is don't panic and keep you family (especially your wife or husband) informed. There will be strong opinions on both sides of the debate. Stay educated. Stay calm and stay focused. It will all get resolved sooner or later and life will eventually return to some resemblance of normal

The other half are new hires with decade plus exposure to negotiations at the regional level. Where management plays three card Monty with airplanes, essentially leaving them powerless. The muzzle comes off these old dogs now that they're at the Majors.

It means the rah rah you will hear from the company is lip service. Delta is corporate America and profits are the bottom line. We're pretty much an expense on the ledger. Do what's best for you and your family at all times with regard to DAL.

So if you had another option, and you were just entering the business, would you go elsewhere versus wading into this fray?

Contract negotiations happen all the time, it's nothing new. Management trying to bend the union to its will, is nothing new. It's all business as usual.

What's your other option? Another airline or some completely different career?

Delta is a good company to work for, it's just contract time again so you're hearing what you're hearing.

The worst that can happen is we get a raise and pay for it with work rule and profit sharing concessions.

Thx... Good info

Capn,
Speaking from the South side, this is different. But not a surprise from this management team. This place has never been adversarial outside of the 49 guys the company went after some years back. I believe it's about to become a more hostile work environment. My opinion.
The corporate greed is beyond anything I've seen here in 30 years. These guys don't care about shareholders, they care about their personal wealth and legacies. The fact that their mouthpiece is still on our seniority list is a joke.
The time off is the best thing about being a Delta pilot.

Hank

Hank.... it just has not SEEMED adversarial..... mostly because dalpa and this group has historically been a compliant, cooperative, and even submissive enabler of management.

Why be adversarial... when dalpa lets you off the hook for hundreds of millions a year in pension funding with a handshake and a 'we trust you IOU in a paper sack?'

All without even the formality of that bothersome memrat?

New hires today are asking for lodging......I wonder how they would feel about also being handed no jumpseat....no pass privileges.... and working for half scale? dalpa has long been managements handmaiden.

Finally..... this group has said 'NO' to management and its alpa enabler.... and you think they suddenly turned into frank Lorenzo?

No.... management hasn't suddenly changed. Not one iota.

But just maybe..... this pilot group has.

Exactly Bob.... This past year has seen the Delta Pilots stand up for themselves for the first time in 15 years. A decade and a half of good faith went unrewarded and ended in broken promises. Delta management is just like the others, but worse in the sense they manipulated employees to go the extra mile for a reward that they reneged on.

When I tell new hires we had no jumpseat and no pass privileges to go along with the below poverty level wages..... their expressions are of incredulity.

And the one question predictable.....'how were you supposed to get to work?'

I remind them.... that's what $50 million a year buys at alpamart.

With every passing month, the restoration that has been advocated is getting farther and farther away. As time goes by, we are going to need more money to reach that particular goal. I just do not see how we can wait indefinitely even with the 3B4 component. At some point compromise will be necessary no matter how much money Delta is making because they are the ones that ultimately write the checks and they can wait us out.

Why did United increase their pilot compensation by hundreds of millions with ZERO concessions?

So guys will just never learn Moak/Hanson/Harwood gave away then farm when it was not necessary.

Why don't Richard and Ed make concessions when their negotiate their compensation?

Why do Richard and Ed get high double digit raises each and every year?

Because they see their value.

Who contributed more by billions and billions to the success Delta enjoys today?

THE DELTA PILOTS

Seems like a defeatist mentality...

Most have been waiting 10+ years for restoration, what's another year? The elements have finally lined up, don't give up with the finish line in sight.

The last time we "went to the mattresses" was c2k. We received retro pay going back to the amenable date. I don't see any reason why this would be different.

A two year delay in Section 6, a streamlined FRMS waiver process with UALPA support and a flight duty period extension regime is what UAL management got in return for 13%/0%/2% annual pay raises and $30 million to make furloughees relatively whole.

We also benefitted from DALPA and SWAPA's no votes and our new CEO's desire to reengage United's employees. I think he stole a page out of Anderson's tattered playbook.

I hope our agreement helps DALPA avoid watering down your PS provisions.

We will not compromise our profession to die a death by a thousand cuts.

Backpack down, Sack Up!!

Not exactly.

With every passing month our compensation grows. The returns on the equity stakes from Virgin Atlantic, AeroMexico, Gol, and China Eastern haven't been realized yet in the financials. There is huge value yet to be unlocked in profit sharing while our rates increase as non-cons eventually get raises.

At some point compromise may be reached but it will never be necessary. We can wait them out, they have goals too. Their personal compensation is tied to performance and stock price. They "need" their JD power, performance metrics to guarantee corporate contracts, and investment grade credit ratings from S&P, Fitch, and Moody's.

If we just sit on our profit sharing it will grow faster than rates as the company "grows." That's the way they get paid and now we are aligned with their efforts. 90% of managements compensation is at risk. Do you think they will mitigate the risk by rewarding us with a contract or mitigate it without a contract and pay us more profit sharing? Every extra dollar of profit pays the pilots 7 cents this year. They are predicting a $3B increase on fuel alone. Win win, either way we will be restored.

You do understand that the change the company tried to push in the profit sharing would have no real impact on what you post above. The reduction was a fixed amount. We would still capture all the above things you mention at the 20% rate. If the company wanted to prevent that they would have needed a different approach to PS like they took with the non contract employees.

And your point is?

If the same dollar value exists, does it matter where it is? Rates or profit sharing? The TA failed for several reasons. You keep living in the past, I am living in the present. Because we didn't monetize it, we have leverage. For that reason alone it has more value in profit sharing. The 8% you keep going back to was deemed not an adequate reward for our efforts and labor peace by 2 out of every 3 pilots surrounding you. Shall we discuss concessions now?

The same dollar value was not there. Your point seemed to be that somehow we saved future value in the profit sharing and that provides leverage with management. We simply traded 5.74% in profit sharing for a 6% raise. We made no changes in upside increases in profit sharing. The TA provided no upside protection for management. That is not by the way what the company wanted as the non contract employees have discovered.

Or in other words... we gained nothing. The profit sharing is the crown jewel they are after. Why? It has tremendous value going forward. If we continue to incrementally trade that for rates are we extracting value or writing checks to ourselves?

I don't recall what that fixed amount was because I don't remember seeing what number, % or detailed amount was mentioned when it came to a change to how Profit Sharing was computed with management bonuses being deducted.

If it was a fixed amount as you say, what was that fixed amount?

If you don't have the number I don't see how that can be said to be a fixed amount.

There were bulletins that pointed out what the reductions would be. Even if management doubled their current level of bonuses it would not make much of a dent in the PS. Regardless they can simply raise their pay and accomplish the exact same thing this afternoon.

So again. No gain for the change except it would have been "official." What ever you want to believe. I guess we have ruled out any reason for that language change. Now it can be removed from any proposal.