Employees to get 15 percent of Delta's equity after merger

[dapoes]

From AJC article:
http://www.ajc.com/business/content/busine...ger_equity.html

Published on: 08/06/08

Delta Air Lines plans to issue 15 percent of its equity to employees of the combined carrier resulting from its proposed merger with Northwest Airlines, according to a Wednesday regulatory filing.

That breaks down as 3.5 percent for about 600 to 700 management employees; 3.5 percent for Delta pilots; 2.38 percent for Northwest pilots; and 4 percent for other employees. Another 1.62 percent will be set aside for future grants to employees.

 

[DLtoWN]

Since the retirees got hosed at a much higher per-cent than any other group, ya think that the dipsticks that run the crystal palace will give any to us???????

Nah, they won't even take a meeting with the retiree committee, so why even dream........

 

[Don Smith]

Just a fair warning to the employee groups at Delta. Your CEO may not be the inventor of the carot and stick approach to employee pay and benefits but believe me he is the MASTER at the technique. No CEO can compare to Dick Anderson in the appearance of giving something while pulling the rug out from under you. He may offer something now but read the fine print. Most agreements end up with the money portion of any deal going back to his end of the business. You will still get to work harder than ever before for less and less. The grunts get the shaft every time.
Like I said, fair warning from a FORMER nwa grunt.

 

[Kev3188]

Delta Air Lines plans to issue 15 percent of its equity to employees of the combined carrier resulting from its proposed merger with Northwest Airlines, according to a Wednesday regulatory filing.

That breaks down as 3.5 percent for about 600 to 700 management employees; 3.5 percent for Delta pilots; 2.38 percent for Northwest pilots; and 4 percent for other employees. Another 1.62 percent will be set aside for future grants to employees.

Okay, let's see...

We have:

3.5% for management (600-700)

~6% for the combined pilot group (12,000 or so?)

1.62% for people that don't yet exist (0)

4% for everyone else (80,000 ish)?

Yeah, that seems fair. I can't wait. Looks like those that have contracts are doing pretty well.

 

[dapoes]

Come on Kev you are smarter then that. We are not pilots and we will never "get what they get".

 

[Kev3188]

Come on Kev you are smarter then that. We are not pilots and we will never "get what they get".

I certainly don't expect to make what they do, but ~9x less is a bit too much of a disparity for my tastes.

 

[dapoes]

I certainly don't expect to make what they do, but ~9x less is a bit too much of a disparity for my tastes.

I think your going to find that at most, if not all airlines.

 

[lineguy43]

Just a fair warning to the employee groups at Delta. Your CEO may not be the inventor of the carot and stick approach to employee pay and benefits but believe me he is the MASTER at the technique. No CEO can compare to Dick Anderson in the appearance of giving something while pulling the rug out from under you. He may offer something now but read the fine print. Most agreements end up with the money portion of any deal going back to his end of the business. You will still get to work harder than ever before for less and less. The grunts get the shaft every time.
Like I said, fair warning from a FORMER nwa grunt.

You got that right Don, I really like how they paid us the promised "Put" price on the stock after it was their time to pay it back.. I keep trying to tell these idiots at FedEx who want the reamsters that just because you have something in writing doesn't mean they will honor it.

 

[Don Smith]

I remember it was the fine print that tripped us up on that one. The IAM lawyers didn't catch the company "out", or they were told to overlook it (the likely story). I sold as much as I could at $59 so I was one of the lucky ones. I know some guys that held on to that toilet paper and have nothing but bitterness to show for it. We all believed the company line...just like the Delta guys are about to do.

You got that right Don, I really like how they paid us the promised "Put" price on the stock after it was their time to pay it back.. I keep trying to tell these idiots at FedEx who want the reamsters that just because you have something in writing doesn't mean they will honor it.

 

[lineguy43]

I remember it was the fine print that tripped us up on that one. The IAM lawyers didn't catch the company "out", or they were told to overlook it (the likely story). I sold as much as I could at $59 so I was one of the lucky ones. I know some guys that held on to that toilet paper and have nothing but bitterness to show for it. We all believed the company line...just like the Delta guys are about to do.

I am afraid I am one of the idiots who held on to that worthless "toilet paper".

 

[groundcontrol]

I am afraid I am one of the idiots who held on to that worthless "toilet paper".

You're not alone. Pretty soon (after the merge) we will own 1.25 x the amount of NW stock.
I think we'll be ok.

Ideally we will make out great if Delta remains non union. Since I have no ties to the airlines anymore, except as an investor, I am hoping Richard gets everything he wants in order to protect the stock holders.

JMO

 

[phlgreaser]

Equity? Can't spend equity.

 

[2BlacknBlue]

You're not alone. Pretty soon (after the merge) we will own 1.25 x the amount of NW stock.
I think we'll be ok.

Ideally we will make out great if Delta remains non union. Since I have no ties to the airlines anymore, except as an investor, I am hoping Richard gets everything he wants in order to protect the stock holders.

JMO

Well, I hope the DL employees realize the error of their ways and organize, causing your back to be exposed to inclimate weather by you losing your shirt!

 

[groundcontrol]

Well, I hope the DL employees realize the error of their ways and organize, causing your back to be exposed to inclimate weather by you losing your shirt!

By what I read on these links there doesn't seem to be any worries about them organizing.

As far as losing my shirt, been there done that. Matters not anymore to me. I've come to realize that airlines are there for their share holders and paychecks. Not the workers who actually keep the business operating. It always falls on the employees backs to save the company. My back was constantly hurting, this is BTW why I am out of the airline business.

I don't mean to seem callous, I just want my stock to go up and whatever way that has to happen is OK by me.

 

[2BlacknBlue]

From AJC article:
http://www.ajc.com/business/content/busine...ger_equity.html

Published on: 08/06/08

Delta Air Lines plans to issue 15 percent of its equity to employees of the combined carrier resulting from its proposed merger with Northwest Airlines, according to a Wednesday regulatory filing.

That breaks down as 3.5 percent for about 600 to 700 management employees; 3.5 percent for Delta pilots; 2.38 percent for Northwest pilots; and 4 percent for other employees. Another 1.62 percent will be set aside for future grants to employees.

Yeah, and as a result of the merger:

Highlights of the NEW Pilot Contract


24 month Furlough Protection - No pilot can be furloughed

Stronger Scope Language

5% pay increase on 1/1/09,
4% pay increase on 1/1/10,
4% pay increase on 1/1/11,
4% pay increase on 1/1/12,

Int'l pay for all pilots ($5.20 p/hr for Captains, $3.90 for F/Os)

Increased Profit Sharing

Per Diem increases

Reimbursement of real estate commissions in the event a base is closed within 24 months. Max; $35,000.00

Full pay sick leave hours increased from 240 to 300 hours on a rolling three-year basis

Seat on the Delta Board of Directors

Medical Insurance Retirement improvements

Additional 1% to Defined Contribution Plan (with increases in 2011 and 2012)

3.5 Equity in the merged Company

Delta Air Lines agrees to pay the Union's "costs and fees" incurred as a result of the merger.
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Yoo-Hoo? Hello? Ahhhh, anybody out there still listening to the "direct relationship"rhetoric?