Delta to Slice Staff

[RamblingRose]

Chief executive says profit-sharing bonuses will temper pay and benefit cuts as airline retools

Thursday, August 19, 2004


Delta Air Lines' much-awaited turnaround plan will include job cuts and reduced pay and benefits, the company's chief executive disclosed Wednesday.

To offset the pain, Delta is working on plans to give workers profit-sharing and bonus payments, along with equity, according to a memo to employees from CEO Gerald Grinstein.

The memo was issued shortly after Delta's board of directors met Wednesday to hear an update on Grinstein's plan to retool the nation's third-biggest airline and put it on course to financial recovery.

Delta will emerge as a "leaner, simplified, more productive airline" under the plan being prepared by Grinstein's management team, the memo said.

"Regrettably, one of the consequences will be fewer jobs and additional changes to pay and benefits for all of our employees as we make operational changes to achieve the necessary cost savings," he said in the fifth paragraph of the seven-paragraph memo.


http://www.ajc.com/today/content/epaper/editions/today/news_14421416c02012fb0046.html

edited to add link

[RamblingRose]

1. Why don't they ever mention pay cuts for the CEO and senior executives n/t

[Ghetto_Boy]

2. Because there aren't any

[daa]

3. Even better

is the profit sharing. Years ago when Delta was losing their ass they cut pay and benefits and instituted "profit sharing." Of course when you are losing your ass there are no profits to share.

As soon they began to show a profit they eliminated the profit sharing (too costly).

Now, SURPRISE, they are losing their ass and "profit sharing" is back.

[Parche]

4. Delta

Get rid of SONG, and the Dallas hub
Use better yield control
Simplify the equipment, get rid of the DC-9-88