It could be like this at Emirates
Delta just got a new contract. It is industry leading in so many ways but notice that our ammendable date is not until 6 months from now.
Also notice how mangement talks to its assests otherwise known as employees. What would it take for EK management to talk to instead of lecturing its employees?
Subject: A letter from DAL CEO, Mr. Anderson....
May 22, 2012
To: Delta Colleagues Worldwide
From: Richard Anderson
Subject: Progress On Our Journey
Delta is making significant progress on our journey toward a sustainable business model with solid financial returns. We are putting distance between us and our competitors by doing business differently – all while ensuring we maintain the core focus on running a great operation, always taking care of Delta people, providing exceptional customer service and delivering value for our shareholders.
Delta has a strong track record of treating employees fairly, and we remain committed to listening and responding to your feedback. To that end, we are announcing two modifications to our pay strategy that will both respond to employee feedback and help set the standard for pay in our industry going forward:
· On 1 January 2013, all U.S.-based noncontract merit and scale employees will receive an increase in base pay that will be designed both to recognize the upcoming change in the profit sharing program (see below) and to accelerate the planned 2013 pay increase, which would have normally been provided on 1 July 2013. This will be in addition to the 1 July 2012 pay increase. Look for more details on the January pay increase as well as adjustments for international employees in the coming weeks.
· Starting in 2013, we are adjusting our profit sharing formula to pay 10% rather than 15% on the first $2.5 billion of profits. We will continue to pay 20% on all profits over $2.5 billion. Profit sharing for 2012, which will be paid on Valentine’s Day in 2013, remains on the current formula. Our pilots will have the same modification to the profit sharing program.
Through the recent employee survey and other means, you’ve let us know that, when it comes to your earnings, you would like to have more in your paycheck and less at risk through profit sharing. These changes respond to your feedback by folding a portion of profit sharing into your base pay to provide additional income each month. Because we are making steady progress on our journey together, we felt this was the time to build in more certainty for you as we share in our success together. Delta people earned approximately $60 million in Shared Rewards throughout 2011 and payout accruals totaling approximately $22 million for this year.
We’ve talked a lot about the steps we’re taking to continue improving the products and services we offer customers, to retire less efficient aircraft and maintain capacity discipline by continuing to right-size our fleet and network to match customer demand. As part of our work with the Delta pilots, we are making a major strategic shift in our mainline fleet – once again leading the industry. It is time to complete the dramatic reduction of 50-seat RJs and significantly increase and upgrade our mainline fleet.
First, we’ve reached an agreement in principle with Southwest Airlines and Boeing – to lease 88 Boeing 717 aircraft for the mainline that will replace inefficient 50-seat RJs. The Boeing 717 aircraft will be extensively refurbished, with new seats, galleys, in-flight Wi-Fi and cabin upgrades. Once refurbished, the aircraft will seat 110 passengers with 12 first class seats, 15 Economy Comfort seats and 83 economy seats. These aircraft will give our high value customers even more opportunities to upgrade to first class and Economy Comfort seats, extending our industry leading position as the U.S. airline with the most first class seats.
Second, Delta will increase the two-class 76 seat regional jet fleet by 70 airplanes, which will increase our total large RJ fleet from 255 to 325.
One of the keys to Delta’s success in recent years has been our collective ability to work harder and smarter for our customers and for Delta’s long-term success. Our pilots will contribute additional productivity enhancements to help us continue to manage our costs effectively. These productivity enhancements combined with the ability to restructure our domestic network, and retire inefficient 50-seat aircraft, add 717s and 76 seaters, provide significant value to Delta to cover the costs of our employee investments. We have incredible momentum thanks to your hard work. Let’s continue to stay focused on delivering a reliable operation and legendary service to every customer, everyday.
Thanks for all you do.
The CEO of a world class airline is talking to his employees. Treating us fairly, asking for input not dictating terms, listening. What a concept!
If only Emirates could learn from this and more importantly act like this.
Not only is Richard acting like an adult he is paying us, his most important assests handsomely. Two unique concepts in the airline industry. Will Emirates ever learn?