New flaw in TA scope
#341
Rates are only a portion of what makes up a W-2. But I know you already know this.
Carl
#342
You've read the TA.
We're taking credit for reducing DCI by 150 aircraft.
We're taking credit for having a requirement for JV and profit/loss sharing production balances.
We're taking credit for a block hour ratio that protects Delta pilot flying.
We're taking credit for shifting more flying to mainline.
There was no trade of scope for pay.
We're taking credit for reducing DCI by 150 aircraft.
We're taking credit for having a requirement for JV and profit/loss sharing production balances.
We're taking credit for a block hour ratio that protects Delta pilot flying.
We're taking credit for shifting more flying to mainline.
There was no trade of scope for pay.
Also, I will admit freely that the TA has many good items in it. My concerns are the fine print or what was not locked down air tight (ratios, republic holding company carve out language, the fact that a code share type revenues plan is not included in the JV) aside from that section 1 has some major steps in the correct direction, many of which I wanted.
I would have wanted to see the ratio on the top end at least six basis points higher based on the block hr plan. (1.65-1) after DAL went through it. Makes us less of an accumulator. I wanted it specifically written that "any type of JV requires a production balance with at least 50% of the metric used. I would have liked to seen DAL and DAL metal have exclusivity rights as the only US alliance airline(taken care of any worries with RJET) these were wants and they "may" get improved down the line.
The question I pose to myself Is; " are the gains along with the work rule concessions good enough to vote yes?"
It's not a perfect TA but it is my belief that it needs to be heavily vetted and presented on its facts and in a best case/ worts case light to the pilot group. They need to know exactly what they are agreeing or disagreeing with with their vote. No more no less.
*of note those that will vote no because of more large rj's need to understand that even a reworked deal will likely include em. The truer question is; " are the quids worth the trade?"
slow, one guesting since I will miss the road show.
If a reserve pilot picks up a reserve day and is used do they get the greater of pay for the day or pay for the trip?
Also, if used does their utilization hit the reserves required formula?
Guess that is two questions.
Where is the second one spelled out?
Thank you.
#343
For the 5 years leading up to C2K Delta had a pre-tax income of $7.4 Billion dollars. Our margin peaked in 1998 at 12%, and averaged well north of 10% for that time. For the 5 years leading up to C2012 Delta had a pre-tax income of $1.1 billion. Our pre-tax margin averaged 3.7% for that time. Oh, and those numbers for C2K are for a Delta standalone operation. Adding in NWA takes the total profit to well over $10 billion.
Having a company with C2K style economics makes C2K style wages achievable.
Having a company with C2K style economics makes C2K style wages achievable.
So if Delta expects to make $2 billion a year in 2013-2015, then C2K wages are achievable now, right?
#344
When I made the jab that maybe SWA/FDX/UPS make more than us because they have better scope clauses you said why didn't their scope clauses give them our C2K rates? So C2K rates became a benchmark of success.
However, we don't have C2K rates either and we have a liberal scope policy. We can't throw stones at them for not having C2K rates and I just wanted to point that out.
So to me a C2K rate comparison is extraneous to this point- they have better scope now, they make more money now.
However, we don't have C2K rates either and we have a liberal scope policy. We can't throw stones at them for not having C2K rates and I just wanted to point that out.
So to me a C2K rate comparison is extraneous to this point- they have better scope now, they make more money now.
The only problem is I said Why instead of But, when But was my point.
#346
Gets Weekends Off
Joined: Jun 2007
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From: CA
Last edited by shoelu; 06-04-2012 at 07:58 AM.
#347
Because FDX, UPS, SWA never chose to sell out their scope. It is easy to gain hefty raises when you decide you are going to allow the company to outsource half the flying to the lowest bidder. When the company is allowed to hugely increase their profit margins due to outsourced labor they are obviously willing to share some of those profits with the very group that allowed them the increased profitability. The company is still way ahead in the game even while sweetening the pilots paycheck. The only problem is it is an unsustainable position on the part of the pilot group. The company will always desire more outsourcing because it always helps the bottom line. If you make the work that your group does a liability to the bottom line where do you go from there? Why is everyone clamoring to put the genie back in the bottle now? The answer is because trading scope for pay was a terrible decision in the first place.
#348
Gets Weekends Off
Joined: Nov 2010
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Has the DAL MEC addressed the following language precludes the mainline/DCI block hour ratios from being enforced unless DALPA has control over the language in the DAL & DCI CPAs?
Company will be excused from compliance with the provisions of this Note in the event a circumstance over which the Company does not have control is the cause of such non-compliance.
Also, is this T/A really cost-neutral for DAL in the face of a projected $2B profit before oil dropped to $83/barrel?
Company will be excused from compliance with the provisions of this Note in the event a circumstance over which the Company does not have control is the cause of such non-compliance.
Also, is this T/A really cost-neutral for DAL in the face of a projected $2B profit before oil dropped to $83/barrel?
#349
However I have seen three contracts where Delta came to ALPA with "limited time offers" full of promises. And every time, the fine print (or a trusting BK judge) allowed Delta to walk away from their obligations and shrink my company (and my family's paycheck) further. So that's why I'm so vocally distrustful of Delta's 477-page, vague and legally unenforceable TA.
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