Delta plans wage cuts, layoffs of up to 9,000
Delta did not specify how or if the wage and staffing adjustments will affect its Utah operations or the 3,900 workers at its Salt Lake City hub. The plan, announced in a memo to Delta employees, is expected to deliver $3 billion in annual financial benefits by year-end 2007 on top of the $5 billion already slated for next year.
Of that $3 billion, $930 million is expected to come from reduced employment costs: $325 million from Delta pilots and $605 million from the airline's non-pilot work force.
"The final number of positions eliminated will depend upon changes to our fleet," Gerald Grinstein, Delta chief executive officer, wrote in the memo. "Our transformation plan will better balance our enterprise and result in a smaller, more formidable Delta by the end of 2007."
A Delta pilot from Ogden, who requested anonymity, said Thursday's announcement wasn't a complete shock but was rather just the worsening of an already-bad situation.
"I can't live on my income," the pilot said. "I've been living a bit on savings. My wife is going back to work. I have my house up for sale."
The Ogden pilot said he took a 32.5 percent pay cut on Dec. 1, 2004, along with reductions in overtime pay rates and benefits coverage. On Thursday, he said that though he'll likely keep flying for Delta, he's already looking at taking on another job, or possibly going back to school.
"When you get on with an airline, you're basically married to that airline," he said. "If I wanted to go someplace else right now to a freight hauler like UPS, or even to JetBlue or Southwest I'd have to start all over again with seniority, and I can't live on that. I've got three kids, a wife and a mortgage. Three dogs. I guess I can get rid of some of those things, the mortgage and the dogs, but the rest I'm keeping."
Grinstein's memo comes one week after Delta, the nation's third-largest air carrier, filed for Chapter 11 bankruptcy protection, citing skyrocketing fuel prices, employment costs and competition from discount carriers like JetBlue Airways and Southwest Airlines Co. Northwest Airlines Corp., with similar concerns, declared bankruptcy the same day.
Delta employees making less than $25,000 per year aren't expected to see further wage cuts, Grinstein said. On average, employees making more than that can expect wage cuts between 7 percent and 10 percent.
"Our compensation levels will be based largely on market-to-market comparisons," Grinstein told workers. "This means that instead of instituting the same across-the-board pay cut for all work groups, new pay rates will be set by work group. The rates will vary depending on the level of adjustment needed to bring each group in line with the lower pay scales of their peers in Delta's new competitive set."
Comments
- Funds for new courthouse approved 1:48 a.m.
- Godfrey vetoes Ogden budget 1:48 a.m.
- Odd Fellows Hall move 1:47 a.m.
- 2 country groups to perform 1:47 a.m.
- Rumor has Boozer with Bulls 1:20 a.m.
- Jazz in back of line for free agents 1:19 a.m.
- Okur signs two-year extension 1:18 a.m.
- Marion to Mavs, Stackhouse to Griz 1:16 a.m.
- Price for redistricting plan challenged 1:04 a.m.
- Basketball campers learn service 1:02 a.m.
- Rumor has Boozer with Bulls
- Stadium of Fire flag burning was fake
- Jazz in back of line for free agents
- Okur signs two-year extension
- Restaurant destroyed by fire
- Jazz won't meet Lopez on Europe trip
- A primer for the 6th Potter film
- AK will not play for Russia this summer
- Jazz rally for OT win at Orlando
- Blazers may offer Millsap a contract
- Bronco collecting a galaxy of recruits
138 - Letters: Palin mistreated
136 - Teachers struggle with district cuts
134 - Blazers may offer Millsap a contract
122 - Rumor has Boozer with Bulls
82 - Fairness of BCS debated
81 - Moon landing: Let's hear from you
73 - Chaffetz eyes challenging Bennett
72 - Services bids farewell to Jackson
70 - Letters: Time for a revolution
69
Through the years, I've always raised eyebrows whenever I tell people...
The photographs are mysterious, brooding, dark. They show dimples and...
Blazers get the unbalanced trade they seek while not signing Millsap away...
Ricky Bobby - THE JAZZ DO NOT WANT TO TAKE BACK EQUAL SALARIES. They want to...
Despite the fact that logging has all but stopped in the pacific northwest...
My understanding of what FAIR is trying to do, is to provide well thought out...
Jazz will resign Milsap. If they don't it will be ahuge mistake. First off,...
I was waiting for it to be burned on the big metal structure right by the...
Hey Ute fan... the Utes had a good season. And keep throwing that BCS bowl...
Tyrus Thomas is in the last year of his contract too so what is the point for...
CougarKeith, people don't know how to properly retire the flag, what they did...
It is just talk but since it was brought up: IF we can get Prizbilla &...




You can be the first to comment on this story.