Delta defends mgmt. severance plan
02-21-2006, 09:39 AM
#1
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Position: Dallas, Texas
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Delta defends mgmt. severance plan
Posted on Tue, Feb. 21, 2006
Delta defends management severance proposal
HARRY R. WEBER
Associated Press
ATLANTA - Delta Air Lines Inc. defended Tuesday its proposal for a severance plan for officers and directors, saying in a bankruptcy court filing that "management attended to the rest of the company's employees first and itself last."
The company was responding to an objection filed last week by the Air Line Pilots Association, which asked the court to reject the Atlanta-based company's severance proposal in light of the deep wage and benefit cuts that Delta's 6,000 pilots are being asked to take.
A hearing on the severance proposal is set for Wednesday in U.S. Bankruptcy Court in New York, where the nation's third-largest airline filed for protection from its creditors in September.
The company said that under the program, severance pay of six to 12 months would be granted to certain employees whose jobs are terminated because of specified organizational or business changes. Employees who quit or are fired for cause would not receive severance.
If all 144 employees eligible were terminated under the program, the cost to Delta would be $14.2 million, the company has said. CEO Gerald Grinstein and Chief Operating Officer James Whitehurst would not participate in the program.
Delta said in its filing Tuesday that a more likely cost is $3 million if 20 percent of officers and directors are let go as part of the airline's plan to cut $200 million in corporate overhead costs.
The company said failure to implement the severance plan could increase unwanted attrition among upper-level employees.
"Delta cannot wait any longer," the airline said in the filing.
It added that it believes the plan is "modest" and that its pilots' claim that a select few would receive special treatment because of their position is "pure fantasy."
A spokesman for the pilots union, John Culp, said he wanted to review the filing before commenting.
The union has said previously that approval of the company's severance proposal could hurt negotiations over new pilot concessions the company wants.
Delta has been seeking $325 million in new concessions from its pilots. It recently offered to lower the request to $315 million. The pilots are currently offering about $115 million in new annual concessions.
The cuts would be on top of $1 billion in concessions the pilots agreed to in a five-year deal reached in 2004.
If negotiators for the pilots union and company can't reach a comprehensive deal on new concessions by March 1, a three-person arbitration panel would decide the company's request to reject the pilot contract so Delta can impose the cuts it is seeking unilaterally.
The pilots union has said it will strike if the contract is thrown out.
Delta defends management severance proposal
HARRY R. WEBER
Associated Press
ATLANTA - Delta Air Lines Inc. defended Tuesday its proposal for a severance plan for officers and directors, saying in a bankruptcy court filing that "management attended to the rest of the company's employees first and itself last."
The company was responding to an objection filed last week by the Air Line Pilots Association, which asked the court to reject the Atlanta-based company's severance proposal in light of the deep wage and benefit cuts that Delta's 6,000 pilots are being asked to take.
A hearing on the severance proposal is set for Wednesday in U.S. Bankruptcy Court in New York, where the nation's third-largest airline filed for protection from its creditors in September.
The company said that under the program, severance pay of six to 12 months would be granted to certain employees whose jobs are terminated because of specified organizational or business changes. Employees who quit or are fired for cause would not receive severance.
If all 144 employees eligible were terminated under the program, the cost to Delta would be $14.2 million, the company has said. CEO Gerald Grinstein and Chief Operating Officer James Whitehurst would not participate in the program.
Delta said in its filing Tuesday that a more likely cost is $3 million if 20 percent of officers and directors are let go as part of the airline's plan to cut $200 million in corporate overhead costs.
The company said failure to implement the severance plan could increase unwanted attrition among upper-level employees.
"Delta cannot wait any longer," the airline said in the filing.
It added that it believes the plan is "modest" and that its pilots' claim that a select few would receive special treatment because of their position is "pure fantasy."
A spokesman for the pilots union, John Culp, said he wanted to review the filing before commenting.
The union has said previously that approval of the company's severance proposal could hurt negotiations over new pilot concessions the company wants.
Delta has been seeking $325 million in new concessions from its pilots. It recently offered to lower the request to $315 million. The pilots are currently offering about $115 million in new annual concessions.
The cuts would be on top of $1 billion in concessions the pilots agreed to in a five-year deal reached in 2004.
If negotiators for the pilots union and company can't reach a comprehensive deal on new concessions by March 1, a three-person arbitration panel would decide the company's request to reject the pilot contract so Delta can impose the cuts it is seeking unilaterally.
The pilots union has said it will strike if the contract is thrown out.
02-21-2006, 05:20 PM
#2
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Joined APC: Feb 2006
Posts: 16
No, upper-management shouldn't get a severance package.....Just give 'em a jet, I mean really, give them a 737 or something so they can fly to their next huge salaried position, then complain they don't take home a pilot's salary as a bonus each quarter. All right I'm done venting...
02-21-2006, 05:42 PM
#3
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jesus. they don't even need to invent anything new, they just have to vomit up the same old crap.
"bonuses are needed to retain top management to keep them from going to other companies." yes, they're so "top" they ran a formerly hugely profitable airline into the ground.
"we took care of the employees first and ourselves last." right. you took care of the employees pay cuts first, and your huge bonuses last.
these people should be tied to a post and beaten with a baseball bat. and then shot.
"bonuses are needed to retain top management to keep them from going to other companies." yes, they're so "top" they ran a formerly hugely profitable airline into the ground.
"we took care of the employees first and ourselves last." right. you took care of the employees pay cuts first, and your huge bonuses last.
these people should be tied to a post and beaten with a baseball bat. and then shot.
02-21-2006, 06:17 PM
#5
Self Employed.
Joined APC: May 2005
Position: Corporate Pilot
Posts: 7,119
Mba
If a pilot wishes to make an executive salary then they can go to business school and take their chances. Everyone loves to bash the suits but I wouldn't wish to trade places for anything in the world. As soon as the ground power is on the pilots mind is on the lounge and working the stews. An executive is on the job 24/7. When they will go on a 4 day business trip they work the entire time and are expected to show up for work again the day after returning. No fun.
SkyHigh
SkyHigh
02-21-2006, 06:31 PM
#6
Gets Weekends Off
Joined APC: Nov 2005
Position: Former 757/767 F/O, now MD-11
Posts: 148
Huh????
Skyhigh...
What are you smokin'? On the job 24/7? Highly qualified? Anybody besides me see the clip about the Radio Shack CEO and his "inflated" resume? Bet he is not the only one.
AI
What are you smokin'? On the job 24/7? Highly qualified? Anybody besides me see the clip about the Radio Shack CEO and his "inflated" resume? Bet he is not the only one.
AI
Originally Posted by SkyHigh
If a pilot wishes to make an executive salary then they can go to business school and take their chances. Everyone loves to bash the suits but I wouldn't wish to trade places for anything in the world. As soon as the ground power is on the pilots mind is on the lounge and working the stews. An executive is on the job 24/7. When they will go on a 4 day business trip they work the entire time and are expected to show up for work again the day after returning. No fun.
SkyHigh
SkyHigh
02-21-2006, 07:15 PM
#7
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Joined APC: Jan 2006
Posts: 345
There seems to be lots of complaints about money here(i know the pay is way to low for what it sould be). Everyone says they could be making better money elsewhere. Heck people could drop out of HighSchool tommorow and be making $100,000 a year by the weekend working on the Oil Rigs. But those rig pigs with all their money look upon that RJ FO that makes $20,000 a year with a $50,000 debt and wish they had that job. Ive seen millionaire bussiness men in awe listening to stories from pilots.
Just about everyone that is a pilot had a choice a while ago, do something you love or settle for something you hate but pays better.
Pilots have character, they just dont live to make money.
Just about everyone that is a pilot had a choice a while ago, do something you love or settle for something you hate but pays better.
Pilots have character, they just dont live to make money.
02-21-2006, 07:36 PM
#8
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Posts: n/a
Originally Posted by SkyHigh
If a pilot wishes to make an executive salary then they can go to business school and take their chances. Everyone loves to bash the suits but I wouldn't wish to trade places for anything in the world. As soon as the ground power is on the pilots mind is on the lounge and working the stews. An executive is on the job 24/7. When they will go on a 4 day business trip they work the entire time and are expected to show up for work again the day after returning. No fun.
SkyHigh
SkyHigh
management like this should be shot.
02-21-2006, 08:49 PM
#9
Freightmama!
Joined APC: Dec 2005
Position: 757/767 FO
Posts: 2,880
Originally Posted by Kill Bill
jesus. they don't even need to invent anything new, they just have to vomit up the same old crap.
"bonuses are needed to retain top management to keep them from going to other companies." yes, they're so "top" they ran a formerly hugely profitable airline into the ground.
"we took care of the employees first and ourselves last." right. you took care of the employees pay cuts first, and your huge bonuses last.
these people should be tied to a post and beaten with a baseball bat. and then shot.
"bonuses are needed to retain top management to keep them from going to other companies." yes, they're so "top" they ran a formerly hugely profitable airline into the ground.
"we took care of the employees first and ourselves last." right. you took care of the employees pay cuts first, and your huge bonuses last.
these people should be tied to a post and beaten with a baseball bat. and then shot.
02-22-2006, 04:04 AM
#10
Self Employed.
Joined APC: May 2005
Position: Corporate Pilot
Posts: 7,119
Bill
Originally Posted by Kill Bill
hey, sky--i respect GOOD management, like greg brenneman (who now runs burger king) whom we used to have at CAL. the clowns now in power have a single talent: enriching themselves by taking pay, taking retirement, taking benefits, from the people who have devoted their lives to their airlines and then bailing with multi-millions when they just can't seem to manage. not to worry: they'll soon be hired some other place because they are part of the "club". that would be the "i'll sit on YOUR BOD and vote you astronomical salaries and stock options and you sit on MY BOD and vote me astronomical salaries and stock options".
management like this should be shot.
management like this should be shot.
Yes Bill I agree, that doesn't sound like a good way to operate. Kind of like when a union is lead by only senior captains and they negotiate a huge pay raise for those with more than 20 years in and agree to cut everyone else's. No matter how you slice it power corrupts.
SkyHigh
Thanks for your reply by the way. It has been a while.
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