Gentlemen.....take the time to read the details of the new Delta Contract as listed below. Once you have, contemplate the situation here at CX...and resolve to stand up for what we know we are worth....
The Road to Contract 2000: The Next Chapter
ALPA Summary of the Delta Air Lines/ Pilots Tentative Agreement
Editor's Note: This week, we bring you the summary that was distributed on Monday of the tentative agreement between Delta Air Lines and its pilots' union. We stress that this is the summary that was provided by the ALPA negotiating team to its members.
April 23, 200 -- In an attempt to update you as quickly as possible, we have put together the following highlights of the final issues settled on Sunday afternoon in Washington, D.C., at the National Mediation Board's offices. Contractual language for these sections will be posted on the
www.dalpa.com MEC web site as soon as possible.Once you receive that language, you will have all 28 sections to review.
This agreement is the product of twenty months of long, and at times contentious, negotiations. During the last several weeks tremendous pressure was applied from the federal government, and the agreement was reached in the final week of the cooling off period after the company finally put money on the table in Express, retro and retirement.
The MEC will begin meeting on Saturday, April 28, to review the tentative agreement. When your elected representatives ratify the TA, we will be conducting road shows prior to the membership vote and will provide you with a schedule. We anticipate they will begin in early May.
Scope
* Delta Connection Permitted Small Jets
* Limited to 50 certificated seats/65,000 pounds Exception for up to 57 RJ-70s (current orders), plus one RJ-70, up to a maximum of 75, for each 10,000 Delta block hours above the contractual block hour plan in the contract (10,000 hours are equivalent to approximately three mainline jets)
* Delta Connection Operations
* At least 85% of Delta Connection flight segments under 900 statute miles
* At least 90% of Delta Connection flight segments to operate to or from hubs
* No more than 6% of Delta Connection flight segments between hubs (exception in certain Florida operations)
* New limits on size of aircraft operated by non-affiliate Delta Connection carriers for non-Delta Connection operations
* Delta Connection Growth Limits
* Delta Connection flying, as percentage of combined Delta Connection and Company flying, may not be planned to exceed 34% (2002), 36% (2003), 37% (2004 and after)
* Penalty for noncompliance on Delta Connection percentage: reduction in planned percentage in following year; applicable percentage may not be exceeded for any two consecutive years. Example: If the actual percentage of Delta Connection flying in 2002 exceeds the planned 34% level by one percentage point, then in 2003 the percentage limit of 36% is reduced to 35%.
* Permitted reset to increase permitted percentages if financial performance tests or U.S. growth rate tests are not met. The reset would increase the planned Delta Connection percentage to 35% in 2002, 37% in 2003, and 39% in 2004 and after. These tests are: Company's operating margin for any two consecutive quarters falls below 95% of the combined operating margin in the same two quarters for United, American, Northwest, and Continental; or the Company has an operating loss (excluding the effect of the retroactive costs of the PWA) in any two consecutive quarters commencing with the first full quarter after the date of signing of the PWA; or 3) the United States gross domestic product (GDP) growth rate falls more than 25% below the Company's GDP growth rate assumptions as set forth in the chart below: (see web site for chart)
* Codifies company block hour plans of no less than 2,212,000 block hours(2001), 2,267,000 block hours (2002), 2,346,000 block hours(2003), 2,443,000 block hours (2004 and after). These numbers are Delta Company Flying, not including Delta Connection
* If Company does not achieve block hour plans, there will be a penalty for noncompliance of one, two, or three percent of earnings to each pilot on active payroll status of December 31 of year of noncompliance, depending upon extent of noncompliance from greater than 0 up to 10%
* Permitted reset of block hour planned growth if financial performance tests or U.S. growth rate test not met (same tests as for Delta Connection percentages). The reset reduces the Company's block hour requirements to 2001: 2,099,000; 2002: 2,173,000; 2003: 2,256,000; 2004 and thereafter: 2,313,000
* International Flying
* Growth test for Company International Widebody Flying from 20,000 (present contract: 15,500) monthly block hours (2001) to 24,500 monthly hours (2004)
* Penalties for noncompliance include restrictions on international partner growth and limit on international flex cap
* Growth targets are subject to exception for"force majeure" (circumstances beyond company's control) (same as present contract). Example: grounding of a fleet by government agency. Force majeure specifically does not include economic or financial circumstances, state of the economy, Company profitability or unprofitability.
* Company to oppose change in cabotage laws
* Company cannot place its code on foreign carrier picking up passengers or cargo within U.S. with U.S. destination
* Profit/loss sharing agreement with international partners
* Limited to carriers whose home countries are also served by Company
* No reduction in Company flying between the two countries compared to period before profit/loss sharing agreement, subject to existing force majeure
* Pilot base outside U.S. must be covered by contract Railway Labor Act without regard to visa or immigration requirements
* Furlough Protection
* Protects all pilots on seniority list as of Date of Signing of contract (subject to existing force majeure clause, same as above under International Flying)
* Fragmentation Protection
* Applies in transaction in which company disposes of aircraft, route authority or slots (net of acquisitions) that produce at least 22.5% of operating revenue, block hours or ASMs
* Transfer opportunity for Delta pilots to acquiring carrier, with seniority integration rights
* Change in Control/Successor/Affiliate
* Control level reduced to 30 percent ownership (increased to 49% for company interest in a foreign carrier)
* Delta pilot block hours not subject to reduction during period between acquisition and operational merger, subject to force majeure or government requirement
* In case of acquisition of control over Company, ALPA can serve a Section 6 notice or extend agreement for up to three years with 3% increases each year
* Maintain seniority integration rights under present contract
* Labor dispute involving code-sharing partner
* Company and affiliates cannot train pilots to scab the partner's operations, except affiliate can train for its own operation
* Pilot Board member:
* Remains at status quo
* Remedies
* Timetable for expedited system board decisions under Section One Compensation (see link below)
http://www.dalpa.com/pilots/mec/payrates.htm
* Rates represent 1% more than United Airlines on all aircraft for the entire duration of the contract
* Rates on 5/1/04 vary from 24% to 39% over present book on the mainline and 63% at Express (note: 4/22/01 code-a-phone message contained typo regarding pay rates; incorrectly stated range was 24% to 34% rather than 39%)
* Increased first year pay from $36.03 to $48 ($50/52/54/56 in 01/02/03/04 respectively)
* Increase new-hire pilots training pay from $2000 to $2,750 per month
*Retroactivity
* Full retroactivity on wages back to 5/1/00 * Mainline B-737-200 retro pay based on B-737-300 pay rate
* Full retroactivity on International override back to 5/1/00
* ALL RETRO PAY IS PENSIONABLE ( any pilot who retired on or after May 2, 2000 or later will receive a retro check and have his retirement pay recomputed)
* B-757, B-767-200 and B-767-300 combined at B-767-300ER rates
* MD90 rate matches B-727 rate
* International override increased from $6.50 to $8.00. Override applied IAW present rules
* Night pay of $15/$10/$5 per hour for Capt/FO/SO for all ops between 2300 and 0559 airport of last departure time Section 3F (New Aircraft Models)
* Company to notify ALPA of intent to acquire new aircraft model
* Meetings to negotiate pay and work rules to start within 15 days, to last no more than 90 days
* If no agreement, either side may submit issues to five-member system board of adjustment
* Board must render decision within 60 days
* Board to give controlling weight to aircraft mission, rates of pay and work rules of most closely comparable aircraft models in terms of speed, passenger capacity, range, fuel economy and gross weight and at the three other largest domestic air carriers
* Company can establish pay and work rules for training and flying pending outcome of negotiations or arbitration
* Agreement or award retroactive to date of first conversion Delta Express
* Some differences from the mainline still exist but are now reflected in each contract section where appropriate. To compensate for the pay differential, there is a five hour thirty minute duty period average for Delta Express enabling a pilot to be credited with more flying per duty day.
* Provide 62.9% pay raise over three years for pilots in Delta Express categories as follows: Current Rate 5/1/00 5/1/01 5/1/02 5/1/03 5/1/04 126.95 148.19 161.08 175.27 190.42 206.79
* Allow the introduction of B-737-700 aircraft to be used on Delta Express system with pay as follows: Current Rate 5/1/00 5/1/01 5/1/02 5/1/03 5/1/04 N/A N/A 178.89 194.65 211.47 229.67
* Establish Designated Monthly Maximum (Cap) of 75-85 hours
* Pay guarantees as follows: o 75:00 reserve guarantee o 5:30 Duty Period Average for rotation and line construction resulting in:
* 15 days max for 85 hour cap
* 13 days max for 75 hour cap o 5:30 DPA "look back" for regular line holders raised from 4:30 o 5:30 DPA "look back" for reserve line holders
* 14 duty periods breaks guarantee
* 15 duty periods = 82:30
* Pilots rerouted to mainline paid as follows and mainline work rules apply: o B-737-200 pilots paid mainline B-737-300 rates o B-737-700 pilots paid B-737-800 rates Premium pay increased from 1.5 to 2 times hourly rate
* Eliminate reserve system differences (DEX same as new mainline rules)
* Elimination of X-day pror
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