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ATTENTION NON-UNION SUPPORTERS

DELTA TO - LAY OFF - PILOTS

The Delta pilots union says the carrier has proposed a voluntary early retirement program designed to cut an unspecified amount of pilot jobs.

Delta Air Lines Inc., wants to cut an unspecified number of pilots through an early retirement program, according to a Friday memo from the carrier’s pilots union.

Lee Moak, chairman of the Delta Air Line Pilots Association union, said Delta (NYSE: DAL) has proposed “a pilot retirement incentive program designed to address what management perceives to be a current pilot staffing overage.”

Moak did not state in the letter how many pilot jobs Delta seeks to cut.

Under the proposal, pilots would have to meet certain length of service and age metrics to be eligible. Pilots opting for the program would receive a severance payment, retiree travel benefits and medical benefits “for a limited time.”

“At this point, a detailed discussion is premature, because the proposal is just that—a proposal,” Moak said. “No tentative agreement has been reached with Delta management, and no program is in place.”

The union’s negotiating committee received the proposal from Delta in April. The union’s master executive council reviewed it May 7 in New Orleans.

Moak said the union will negotiate with Delta management to reach a tentative deal, and it would be up to individual pilots whether or not to opt in.

Atlanta-based Delta acquired Northwest Airlines last October. There are more than 12,000 pilots for the combined airline.

Airlines across the globe have struggled to match capacity with declining demand in the wake of the recession. Delta and other U.S. carriers have slashed domestic and international capacity as demand has waned, and Delta has previously announced plans to cut additional 7 percent to 9 percent of its international capacity starting in September.

Delta’s passenger traffic dropped 7.7 percent in April compared to April 2008, but load factors generally leveled out.

Delta has cut about 6,500 jobs throughout the company through voluntary buyouts and early retirements, but pilots have not previously been included in earlier job reduction programs.

About 2,500 employees who opted for the latest buyout program are set to leave Delta after the busy summer travel season, airline officials have said.
Delta operates a hub at the Cincinnati/Northern Kentucky International Airport.
Letter from Delta pilots union chairman Lee Moak

May 8, 2009

Dear Fellow Pilot,

Yesterday, your MEC concluded a special meeting in New Orleans. As part of the agenda, your MEC was presented with a briefing from the Negotiating Committee on a Delta management proposal for a pilot retirement incentive program designed to address what management perceives to be a current pilot staffing overage.

When management provides your union with a proposal, we follow a time-proven process. This process consists of the following basic steps:

1. Receive – The proposal is received by the Negotiating Committee on behalf of the MEC.

2. Analyze – The proposal is analyzed by the Negotiating Committee, professional staff and subject matter experts, and a briefing is prepared for the MEC.

3. Direct – After the MEC is briefed, the MEC may direct the Negotiating Committee to take further action which could include, for example, further analysis or direction to engage management in negotiations; alternatively, the MEC may elect to take no action on the proposal.

4. Negotiate – If the MEC provides the Negotiating Committee with direction to negotiate, the committee will engage with Delta management. Negotiations may or may not end with a tentative agreement.
 

5. Ratify – If a tentative agreement is reached between the committee and Delta management, the agreement is presented to the MEC, and at some point the MEC may elect to vote on the agreement.

Steps 3 and 4 of this process may and often are repeated many times before an acceptable tentative agreement can be reached. The direction phase is always confidential and is accomplished in closed session.

Management’s pilot retirement incentive program proposal is being processed in the same methodical manner as any other proposal. Late last month, the Negotiating Committee received and analyzed the proposal. The proposal was presented to the MEC this week, and the MEC directed the Negotiating Committee to engage in negotiations with Delta management with the goal of reaching a tentative agreement.

Under the terms of the proposal, active pilots who have met certain age and length-of-service metrics would be eligible to participate in the program. Participating pilots would receive a severance payment, medical and dental benefits for a limited period of time and retiree travel benefits.

At this point, a detailed discussion is premature, because the proposal is just that—a proposal.

No tentative agreement has been reached with Delta management, and no program is in place. The proposal is a unilateral offer from the Company, and as such, the economics of the program belong to the Company. If an agreement is reached and ratified, the decision to participate would belong to eligible pilots. Your union’s role will be to ensure that any agreement that may be reached is implemented on a fair and equitable basis consistent with the terms of the Pilot Working Agreement. If an agreement is reached and ratified, it will occur without any quid pro quo considerations on the part of the Delta pilots.

The Negotiating Committee will soon meet with Delta management at the direction of the Delta MEC, and as is typical for these situations, this direction as well as the negotiations themselves, will remain confidential. If the committee is able to reach a tentative agreement with management, the MEC will again meet in special session to consider the agreement.

On a separate note, Delta management recently announced the closure of the 747-200 categories (both in Anchorage and Minneapolis) and the Anchorage base. Your elected representatives received a briefing from the Negotiating Committee on contractual language relevant to the closure including a discussion of category displacements and relocation benefits and considerations. The 747-200 pilots have been e-mailed a list of frequently asked questions and can expect additional information as the closure approaches.

You will be provided with an update on major developments related to these issues as they occur.
 

Fraternally,

Lee Moak
 

Chairman
Delta Master Executive Council
Air Line Pilots Association, Int’l