Delta 20% Pay Cuts Next Week

[Beer Guzzler]

Look for an annoucement outlining pay and job cuts within the next 2 weeks.

20% across the board and pilots looking at 10 to 15% or BK gonna happen before 10/17!!

Yahoo Message Board... DAL gonna give paycuts next Week

 

[luv2fly]

Yahoo Message Board... DAL gonna give paycuts next Week

[post="286442"][/post]​

News flash..... Employees could take 50% paycuts and BK will still happen. Employee pay has nothing to do with it.

 

[TheDog2004]

99% of the stuff posted on the Yahoo! board is total b/s. I would take this rumor with a very large grain of salt.

 

[aislehopper]

I was at one of those manditory flight attendant meetings a couple of weeks ago. The question about more paycuts came up. The reply from the managment person leading the meeting was "Jerry has said that their will be no more paycuts outside of bankruptcy."

With bankruptcy looming, I doubt that they would have pay cuts before October.

 

[coolflyingfool]

Don't believe what you here until you see it in your paycheck. BK will be the way that DL cuts the pay. This way they came blame it on the courts. Just my thoughts...........

 

[WorldTraveler]

I believe you are right, cool. The real reason, though, is that DL doesn't want to go through another battle w/ ALPA. If pay cuts are needed again, they will do it through the bankruptcy process where there isn't much to talk about and it certainly doesn't go on for ever.

With oil prices as high as they are, there is no assurance that DL or any other airline won't pull out all the stops to stave off a financial meltdown.

 

[artiefufkin]

There is no reason to believe that paycuts will not occur in an effort to stay out of Chapter 11. There are already rumors going around as to what the cuts will entail.
There has been a poll circulated by the company asking employees if more cost cutting should be done in addition to the Transformation Plan. Also ask yourself this, how did the last round of paycuts go? Was Delta not able to hire people? Did the on-time not improve? Did they see bottom line reductions in CASM? Is there a new unionization effort underway? No, it did, yes, no.

And keep what the analysts say with a grain of salt. They paint the direst picture they can to encourage action on the part of unions/management.

And keep in mind Delta does not need to make money in order for the cash position to improve. The losses you will see from here are 85% depreciation.
Labor cuts in the range of 600 Million would remedy the situation and the cost cuts in the pipeline will do the rest.

 

[artiefufkin]

Let's be clear on the "debt burden" as well. Delta's debt service CASM is .062 of 1 cent. The industy average is .036 cents. That's just not a big deal. To further put that in perspective. Do you know Delta has a .017 cent advantage in landing fees because of Hartfield's low costs? That alone offsets the minor disadvatage Delta has here.

 

[TheDog2004]

What I heard from friends at Delta is that if they filed Ch 11 that there would just be another 10% paycut.

Things could change, however.

 

[artiefufkin]

It doesn't even need to be to that extent. A 5% cut on the part of non-contract would yield 270 Million yearly, a 10% cut on the part of DALPA would yield 255 Millon. 525 Million

Not to get Delta into profitablity, but to allow for the TP to take it's course and the cash drain to stop. (Assuming Pension Relief is passed)

 

[Bob Owens]

How much of a paycut have Delta workers given so far? At AA the unionized workers gave up 25% when benifits are included. (The pilots got back nearly 10% the first year though)

 

[luv2fly]

How much of a paycut have Delta workers given so far? At AA the unionized workers gave up 25% when benifits are included. (The pilots got back nearly 10% the first year though)

[post="286677"][/post]​

Pilots took a 32% pay cut, as well as the company wide increase in healthcare premiums. Benefit reductions would probably place that number closer to 35-40%. There are no annual raises for the remainder of the contract.

 

[Beer Guzzler]

There is talk on Wall Street and within industry circles that Delta would seek another $400 million in cuts from its employees.

According to one scenario, Delta would ask pilots to agree to another $275 million in cuts, while its other employees would be required to grant $125 million in cuts. The cuts would be effective by Oct. 1., according to the speculation from within the financial community.

Shares of Delta Air Lines Sink After Two More Executives Resign

 

[Bob Owens]

Pilots took a 32% pay cut, as well as the company wide increase in healthcare premiums. Benefit reductions would probably place that number closer to 35-40%. There are no annual raises for the remainder of the contract.

[post="286713"][/post]​

Are your planes flying empty? If not dont give them another dime.

 

[luv2fly]

Are your planes flying empty? If not dont give them another dime.

[post="287052"][/post]​

Not planning on it.