Delta Execs take pay cut

[winedndined]

Delta Air Lines says executives to take pay cut
Wednesday February 5, 4:19 pm ET
ATLANTA, Feb 5 (Reuters) - Delta Air Lines'' (NYSEAL - News) chief executive and president will take 10 percent pay cuts, while other company executives will give up 8 percent of their wages to help lighten the airline''s costs, according to an internal memo to employees.

Delta''s Chief Executive Leo Mullin and President Fred Reid will take pay cuts along with the airline''s vice presidents and higher-ranked officers beginning March 1, according to the Tuesday memo obtained by Reuters.
Atlanta-based Delta, the third-largest U.S. air carrier, said it was completing its annual pay reviews, but it said it was not planning to cut pay for its non-contract mid-level workers.
U.S. airlines reported $7 billion in losses for 2002, and every major airline is scouring its operations to find ways to cut costs.
Delta acknowledged it faces the same types of financial challenges as its competitors, but said it hoped to extract most of its expense cuts by improving efficiency. It is, of course, possible that events beyond our control could force us to reassess this approach, the memo said.
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Wow! There''s a switch! Nice to see management take the initiative for once.

 

[Flufdriver]

You guys need to get off the "Kool-Aid" cuts are coming. The "Dixie" Darlings are bleeding!! Song's is NOT going to save the losses!!

 

[flyhigh]

No doubt that, as was mentioned today, Delta will be going to the pilot group at least. They currently work at a 28% premium (approx) to competitors. Obviously, that has to change should there be an interest in seeing Delta avoid bankruptcy. The fiscal conservative approach Delta has worked with is helping now more than ever. A quick injection of competitive wages puts Delta in the driver's seat. I would suggest that profit sharing (obviously when profits return) be the primary tenet of any wage reduction.

 

[luv2fly]

[blockquote]
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On 2/5/2003 803 PM Flufdriver wrote:

You guys need to get off the "Kool-Aid" cuts are coming. The "Dixie" Darlings are bleeding!! Song's is NOT going to save the losses!!
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[/blockquote]
The "Dixie Darlings" are far from the titanic position that U and UA find themselves in. Delta has been extremely proactive in cost cutting, and is light years ahead of U and UA. With the exception of the pilot group, there is no major unionized group on property allowing DL to unilaterally impose wage and benefit cuts when needed without having to run to a BK judge. Among the hub and spokes, DL may be the prettiest pup in an ugly litter. DL stands to benefit if and when U or UA file for Chap 7.

 

[Vikedog64]

Good post, DL Flyer. I agree with you that productivity changes will be the main order of the day. With the impending war, who knows? The pilot contract is fine as long as the business supports it. However, we all know that is not the case today. The pilot group is not stupid nor are they as militant as other carriers. They will agree to changes as long as they feel they are treated fairly.

 

[DLFlyer31]

Cuts are coming and most at DL know it. However, it's all in the execution of those cuts. It looks far better for Leo to take a cut first and then ask employees for cuts, instead of doing it the other way around.

I think DL is also going to focus more on productivity than simply wage cuts. The only real challenge for DL will be the pilots and hopefully DALPA will have a little sense and be willing to negotiate when the time comes.