Delta to give all domestic employees raises in 2012

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OMG!!!

The end of civilization I tell you... The End!
We could only wish that getting a handle on gum chewing would solve all the world's problems - debt problems, hunger, nuclear arms - all of it.
Sadly, no.
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blackandblue,
pay scales are available in multiple places.... for pilots one of the best resources is airlinepilotcentral... AAnegotiations has payscales for most groups that are unionized at AA and they appear to be current.
Remember that pay includes profit sharing - and DL paid the largest amount of profit sharing among any US airline to PMDL and PMNW people (in some cases on different terms) last year but all will be paid on the higher DL scale for 2011, to be paid later this winter.
It isn't known how much the 2012 non-contract pay raises would be but I doubt they would be less than 3% - you can add that onto the scales plus whatever difference for profitsharing which I believe adds another 5%.
Others including Kev might want to include sources for other pay information.
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You apparently did not read - or choose not to include - my response that DL's pay goal is and will remain industry average/standard - not too many companies ever say they will pay X% above average. Actions do speak louder than words...
There obviously remains movement in industry pay scales - notably UA will likely settle some labor contracts as part of the merger integration process while the likelihood is rather high that AA people will see "adjustments" in the opposite direction as part of the reorganization process.
My statement about above average or "on average the highest paid network carrier employees in the US" is accurate based on current pay scales, announced pay raises to be effective in 2012, and profit sharing based on company provided estimates of profitability.
 
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Notice the indemnifying term "network." That conveniently leaves WN out, of course.

'Course, that also doesn't take into account DL's ability to reduce pay at any time, for any reason...
of course it provides the opportunity to reduce wages - or more than likely stop adding pay raises.... given that none of us can predict even a month from now, let alone a year, and pay raises have been very quickly taken away in the industry in the past regardless of how they were given out, it would seem more prudent to focus on how to keep the salaries up. DL has stated that they plan to be profitable in 2012.
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Yes, the statement is a comparison to network carriers because that is DL's peer set. We can't deny that WN and the LFCs didn't go through BK as the network/legacy carriers did and network/legacy carrier employees are still recovering part of what they gave up.
WN also doesn't fly widebodies while DL does and has about half of its int'l fleet that has pilot pay scales higher than the top of WN's pilot pay scale. And regardless of what some may want to say a DL or network carrier FA can still accumulate their paycheck faster on a trip consisting of a longhaul int'l flight than a low fare carrier employee can in the same amount of time- a WN FA cannot work for 12-16 block hours at a time while a network carrier FA can . If an employee can make their pay in far less time ON THE CLOCK then they have more time for the rest of their life.. obviously doesn't apply to ground personnel but it does very well change the calculus in how crew member pay is valued and more than 25% of DL's total payroll are crew members... and perhaps more than 30% of them fly international flights - and the percentage is probably about the same for AA and UA. And crewmembers can still accumulate time as fast as WN crew members or faster even on domestic flights where the network carriers fly longer stage lengths including some coast to coast (or near transcon) turnarounds.
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Any other resources you would like to add regarding pay, Kev?
 
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Here's something a friend of mine wrote:

"I have been looking over the booklet that the PLs have been handing out. According to them we are making huge gains as Delta aligns pay and benefits. I’m doing the math. It’s hitting home that we are stepping backward, not forward.

From now on, if I want a company match on my 401K I have to put the money toward my retirement. (The .95/hr. Delta put into my secure pension goes away.) I plan to do this because I don’t want to be in poverty in retirement. If I do a 5% match, that takes $1.05/hr. from my wage. I got OSLs nearly everyday, so that is another $1.32/hr. gone. I work afternoon shift so I will get a shift differential, but I will also have to work a half hour more each day. I come out losing 80 cents/hr. from this deal. If I add this up, I am losing $3.17/hr. So far I am down to $18.00/hr.

I also lose my line pay of .10/hr. If I buy Short Term Disability insurance, which I never needed before, that is another .28/hr. gone and I only get 50% pay. My health insurance premiums will go up. My union contract allowed my premium to be no more than 15% of the total premium. Delta charges us 23% of the total premium, so that is another .34/hr. or more. The IAM negotiated AIC pay of $1.25/hr. I got AIC pay around 2 times per week. That averages out to about .22/hr. All this adds up to .94/hr. Now I am down to $17.06/hr.

I am a 20 year employee, so I currently have 1800 hours of OJI built up. In one swift move Delta has taken $37,000 from me. The PLs have been saying that Delta OJI is better than the union OJI. I have read their literature carefully and this is just not true. By their own words, when I collect OJI I am making 90% of my regular pay. My union OJI pay was 100%. So I lose $2.11/hr when I get hurt at work and miss time. I don’t accrue sick, vacation and OJI while I am injured like I used to. If I am out more than a month, I no longer have to be returned to my position. If I am out for a year, I may not have a job at all.

If I have to go on LTD, I now have to wait 6 months instead of 3 months to collect and I get only 50% pay instead of 66%. My safety net is being shredded.

I now accrue 7 sick days per year instead of 12. The Company has put my sick time into a certified bank but I don’t control that time now. Sedgwick determines if I can use it. If I use intermittent FMLA, after I use my 7 PPT days I won’t get paid for days off work. I will never see a 5th or 6th week of vacation.

I have lost any chance of retiring early because I have lost subsidized retiree medical insurance. Now I must pay $700/month for insurance for myself or $1500 for me and my wife.

If I am disciplined I have no recourse. My case will never be heard by a neutral third party. I can see an atmosphere of snitching and favoritism starting to take hold. PLs have grown taller in their own minds as the union has disappeared.

There is no longer any work that is protected. The Company can outsource any work at any time. Delta says it has no plans to outsource work, but that is meaningless without a legally binding contract.

Overtime as we know it is gone. There is no OT equalization, no system, no checks or balances. I must be at work on my shift for 40 hours before I can get time and a half for OT. Doubles don’t count.

I no longer own my seniority. Just ask the streak van drivers whose jobs were abolished. Most wanted to bump to cargo. They were informed that Delta doesn’t allow bumping so they must come to the ramp.

With the expansion of Ready Reserve, the revolving door has arrived in full
force, undermining all jobs at Delta – full time, part time and temporary.

It is clear to me that Delta believes that I will look only at my hourly wage and nothing else. That is why they are promising another raise in July. They hope that we will all be blinded by that and not look at the entire picture. I want the raise and my benefits, job security, work rules and a voice. There is only one way I am getting that – with a union.


A few of my own thoughts:

Losing an inclusive lunch is huge. Wasn't someone on here talking about getting the max amount of hours in in the least amount of time?

Regarding OJI pay: I "only" had 1244 hours, so I'm "only" losing ~ 26k in accrued benefits.

Back to 8.5 hr. shifts: By adding .5, in many places, doing doubles in no longer feasible. Not an economic issue per se, but a big QOL issue.

The note mentioned DL not doing daily lead upgrades. This means that any Lead's ability to day trade is hampered.

Option B for insurance will be eliminated. The closest PMDL equivalent, Option A (how original!) will cost $54.00 more per month for less coverage.

Station allowances for HNL & ANC were eliminated. That's $275 & $450/mo (after tax, IIRC) that they've lost.


That's just a couple of negotiated benefits the PMNW ramp will be losing off the top of my head.

P.S. Loss of scope? Priceless.
 
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I'm glad you posted this, Kev, but I will note again that benefits are valued differently and, yes, to many people the actual wage rate is the primary difference.
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I don't know all of the benefits items and don't really want to get into a discussion but let's look at a couple...
1. Have you and other PMNW people been told that your sick bank is being eliminated? DL previously grandfathered sick time banks when the current system was implemented. It is a loss of potential sick time but only if you used it. And given that there is short and long term insurance available, it isn't a full loss because insurance would have replaced some of it.
2. You can quote whatever you old union contract provided for health insurance but you wouldn't have held onto that rate even if you had renegotiated the contract at NW.... health care costs continue to go up and companies are cutting.
3. Delta does do some level of pension match or pension contribution... I'm not sure what the level is and I woudn't rely on it but DL does provide some small level of retirement benefit.
4. I hear you on the extra half hour... but again look at the competition. The norm in the US work world is 8 1/2 hours... in other parts of the world the lunch "hour" is really longer. DL does do double shifts and swaps so there obviously is some mechanism for not counting the 1/2 hour... not sure how it works but I'm not sure it's as big as an obstacle as it would sound here.
5. I don't know the ins and outs of LTD vs STD right now but as I have mentioned DL has provided one or the other at various times. I believe there is a buyup to higher level coverage on LTD. Did you have any LTD coverage at NW? There are differences in how OJI is taxed and as I understand it, DL's OJI benefits are not taxed thus what you take home is higher than what it might appear.
6. You can receive cash for your personal leave time at DL.... could you do that at NW?

If it makes you feel better, my health care expenses are multiples - and I mean multiples - higher than what you pay. I would also bet that even with your increased health care premiums, you will pay less than the vast majority of Americans - even those in comparable pay jobs.
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You also did not factor in travel benefits which become more valuable based on a larger network. Of course not everyone uses them but the same argument can be made about other benefits.

As with any contract, it is valid for the party with whom you made it. Given that there were mergers circulating for years that NW would merge with DL post BK, then perhaps NW didn't really worry about trying to keep some costs down five years into the contract. I'm not trying to be callous, but NW isn't here anymore... look at other carriers and the contracts they have as a basis for comparison and then you might have some sense of what NW might have negotiated if it were still here... and then compare it to DL.

And then you still have to factor in higher levels of profit sharing at DL... which I don't see anywhere on this list of negatives.

I am not doubting that for some people the numbers under DL's plans won't look as rich... but benefits are valued differentliy by different people. Many people receive health insurance benefits elsewhere.
But we were reminded about how DL must match pay to the marketplace - but benefits costs are also matched to the marketplace as well. Everyone wants to hear that pay scales are matched to the markeplace but no one wants to acknowledge that benefits costs should be too.

The point remains that DL gave you a pay raise and it wasn't negotiated. I suppose you could tell them you don't want their pay raise or the larger profit sharing check but would like to retain your benefits and see how that would go.

Let's see how DL's pay and benefits compare with what UA/CO negotiate since they are in the middle of the process right now... and then you can factor in what happens at AA since those employees will undoubtedly lose a whole lot in both pay and benefits.

And once again remember all of those "guarantees" that all kinds of airline employees had on 9/12/01 and how quickly they were decimated.
 
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I don't know all of the benefits items and don't really want to get into a discussion but let's look at a couple...
1. Have you and other PMNW people been told that your sick bank is being eliminated? DL previously grandfathered sick time banks when the current system was implemented.

We retain it, but have no control over it's use. Sedgewick (yep, a "3rd party") does. Going forward, we get 7 days/yr. Prior to that, we got 12. That was already covered in what I posted.

2. You can quote whatever you old union contract provided for health insurance but you wouldn't have held onto that rate even if you had renegotiated the contract at NW.... health care costs continue to go up and companies are cutting.

True. What I forgot to mention was that we had negotiated caps on any premium increases.

Delta does do some level of pension match or pension contribution... I'm not sure what the level is and I woudn't rely on it but DL does provide some small level of retirement benefit.

Nope.

other than maintaining our frozen (NW) pensions, there will be no pension contributions going forward.


I hear you on the extra half hour... but again look at the competition. The norm in the US work world is 8 1/2 hours... in other parts of the world the lunch "hour" is really longer.

That's nice. We were talking about "advantages" of being represented. Having a perk like an inclusive lunch is both a QOL issue and an economic one.

DL does do double shifts and swaps so there obviously is some mechanism for not counting the 1/2 hour... not sure how it works but I'm not sure it's as big as an obstacle as it would sound here.

Didn't say they weren't technically allowed; I said that with the way shifts in many places are, it's no longer possible due to too much of an overlap.

I don't know the ins and outs of LTD vs STD right now but as I have mentioned DL has provided one or the other at various times. I believe there is a buyup to higher level coverage on LTD. Did you have any LTD coverage at NW?

Yes. We didn't have to do a buy up. STD was cheaper as well.


There are differences in how OJI is taxed and as I understand it, DL's OJI benefits are not taxed thus what you take home is higher than what it might appear.

... Or I could've used either my sick or OJI time (depending on what happened) and been paid at 100%. Did you not read any of what I posted earlier?

You can receive cash for your personal leave time at DL.... could you do that at NW?

All vacation time is paid out.


A look at other carriers and the contracts they have as a basis for comparison and then you might have some sense of what NW might have negotiated if it were still here... and then compare it to DL.

Jesus...

That's what this whole thread is about. Are you being obtuse on purpose?


The point remains that DL gave you a pay raise and it wasn't negotiated.

Restoration in base rate. Decrease in total compensation.
 
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Let's see how DL's pay and benefits compare with what UA/CO negotiate since they are in the middle of the process right now... and then you can factor in what happens at AA since those employees will undoubtedly lose a whole lot in both pay and benefits.

And once again remember all of those "guarantees" that all kinds of airline employees had on 9/12/01 and how quickly they were decimated.

You know what's in every OAl legally binding CBA that DL employees lack?

*Consistent application of policies and procedures

* Recourse against unjust discipline

*Scope

* Seniority language-and ownership of same

* Due process under a grievance procedure

And much, much more.

Know what else they ultimately get that people at the Widget don't? A voice in the workplace, and a say in their future.

Look, I've said all I need to on this. I know you're just narcissistic enough to want to get the last word in. Have at it.
 
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no, Kevin, the thread is about a contract with a carrier that doesn't exist anymore that has been replaced by a carrier that does not negotiate pay and benefits for the majority of its workers - who incidentally chose to PASS on being represented. It really doesn't matter what the advantages you once had if you can't get them any longer.

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I haven't seen a single comparison in this thread to how DL's benefits (the response you wrote) to any existing contract - particularly among network carriers.
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We could discuss all night long and the weekend too but the question remains, what is the point? What are you going to do about the terms of your new employment?

The question is how do YOU move forward and figure out how to survive - and hopefully thrive - in the environment in which you have been planted whether by choice or not. Life is like that.
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And the larger question is whether a person like you that has enormous abilities to communicate and lead people behind a cause can find a way to use those gifts in the facets of life around you.
My desire is that you be all you can be...
 
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I'm glad you posted this, Kev,

snip...

I don't know all of the benefits items and don't really want to get into a discussion...
Yet you write massive missives on all things financial that are germane to the company outlook.

Kevin has succinctly posted the cost of the QOL issues and you issue the above statement.

By doing this you have shown your true agenda here WT.
 
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WT reminds me of finman on the old nw board. Most likely one in the same. Unions bad, company good. Come suckle @ mother delta's breast.
I wonder when those stooopid pilots are going to get smart and dump their union?

I give you credit Kev, but I believe it's a lost cause. Hopefully richards true self never emerges and screws over yet another airline. I hope for the best out of delta because I still want that check every month that I worked 20 years for. I want it coming out of richards pocket, not the government's.

That being said I now gladly drive the 2 hours to the nearest South West serviced airport for my traveling needs if needed. It is a minimum of $250 cheaper a ticket, plus the no s__b factor.
 
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All vacation time is paid out.

Hate to quote myself, but if any PMNW people (ramp, customer service, or stores) are reading this, check your company e-mail. Looks like we have one last shot at getting a payout for any excess vacation accruals. IIRC, the deadline to request it is 1/15. Might be of particular interest for anyone that just lost their 6th week...

If you didn't get it, and think you it might apply to you, PM me, and I'll get it to you.


WT reminds me of finman on the old nw board.

Lol. Wow; that was a blast from the past!
 
WT reminds me of finman on the old nw board.
how ironic that this board merged the DL and NW forums years ago.. and if I wanted to look for those posts I would find it under the Delta forum.


Let's step back and look at how this thread is developed....it was started just days after the final representation results were announced and highlighted that DL would be giving a pay raise to its non-contract employees in mid-2012. Very quickly it turned into a debate about what the union could have done and later what was actually being lost in the pay raise - which to some people is actually a cut in total compensation.
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There have been numerous claims about the superiority of the union approach vs. the non-union approach including trying to determine what union represented employees endured or what the unions kept from happening in BK vs. what non-union employees endured or what mgmt chose to do to those employees.
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All of these arguments from each side have been made on the basis of economic issues... unions have negotiated and companies throw in QOL issues but the representation process is almost entirely an economic decision.
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Let's also be clear that I have fully acknowledged that unions have contributed a great deal to the development of middle class society and has successfully advocated for safety related improvements in many industries. I am not comfortable if ANY check and balance in western society is removed.
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But we also cannot deny that unions have been largely rendered insignificant in the scope of American society and in industry after industry, there have been processes used by companies to undo much of the advances that unions helped implement. Just as the influx of Asian built cars and US built cars made by Asian companies put enormous pressure on the US auto industry which went though a painful restructuring from which it still has not fully recovered. Same thing can be said about steel. Same thing can be said about the airline industry post 9/11.
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What is different from these other industries is that Delta Air Lines has had a distinctly different business model with respect to labor from the overall airline industry. For a multitude of reasons, of which I think labor policies are a relatively small sub-theme, DL is now one of the industry's global powerhouses - and it has become what it is in part because it has engaged in multiple mergers and acquisitions, each of which has resulted in the conversion of thousands of formerly union jobs to non-union status.
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That is exactly what happened with the NW acquisition - and is what the labor movement feared the day the DL-NW merger was announced - if not well before.
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The representation process has ended; Delta is no more unionized than it was before the merger occurred; labor lost one of the best opportunities to unionize DL that it could possibly ever have; and DL employees continue to believe they are no worse off than any other airline's employees - or if they are that there is nothing unions could do to help.
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The IAM and AFA made aggressive attempts to increase their representation at DL and I commend them for trying.
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But the reality is that the world has moved, DL continues to have a sound business plan, continues to do what they have done in the past to keep their employees at least happy enough to not want to change the relationship they have had with management - and unions in the airline industry have lost tens of thousands of more unionized jobs.
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More significantly, there are a new group of airlines that have started whose employees also do not believe that being represented by unions is in their best interests.
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Some such as Kev can argue about QOL issues and say that the new compensation package is inferior overall to what was received before. Perhaps in some respects that it true - and perhaps for some people in total that will be true. But benefits are valued differently by different people and benefits do reflect market changes just as base pay does. Benefits throughout American industry are less generous than they were in the past - not just for union represented employees but for all Americans.

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The Delta pay raise will go forward... there probably will be more attempts at unionization at DL... DL probably will acquire more airlines and may eliminate more union jobs... non-union airlines such as B6 and VX will grow while airlines like AA will see benefits and pay shredded as mgmt uses the tools it has available to it to undo the progress labor has made - and to fix a business model which no longer works today.
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I am glad that people like Kev and BigJimmy and 700 and others are passionate about preserving the American middle class lifestyle.. there is no doubt that the middle class in the entire developed western world is under attack and will continue to be.
I STRONGLY ENCOURAGE you to find solutions to the assaults on the middle class - I just don't think labor unions have or will be the answer.. and when you consider that a growing percentage of employees in the airline industry agree with me, then perhaps I represent a point of view that many believe - but few are willing to take, esp. on a forum such as this which is heavily supported by unionized airline members.
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Fight for what you believe in... but realize that at some point, you have to recognize that the strategies you have been supporting don't work and it is time for some serious reworking of your plans to obtain what you want in life... or accept that some things are beyond your ability to change and your values and ideals no longer represent a reality that is possible.
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I wish you all well in all your endeavors.
 
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