Wage Cuts, Profits, Union

The union representing Delta Airlines' pilots has offered to cut the wages of pilots by 9%, as well as forgo a 4.5% pay raise next year, in an attempt to stem company losses. Such a move will make the income earned by pilots more in line with other pilots in the industry.
Delta pilots are currently the best-paid in the industry, earning up to 1/3 more than pilots at other airlines, with beginning pilots earning $48,000, and veteran Boeing 777 pilots earning up to $275,000 annually. The proposed cuts are part of a company-wide cost-cutting plan to stem $2.87 billion in losses since 2001.

The pilots' union is emphasizing that this concession should be considered an "investment in the airline," implying that they want profit-sharing incentives in return for their current cooperation. The union is also asking for similar moves by "other stakeholders," including suspension of stock dividends, cuts in benefits for nonunion employees, and reductions in perks for top executives at Delta.

(Updated February, 2004)