Carl Spackler

Here's the problem Scambo. This is from our Council 20 chairman's letter just released:

"As one of my peers recently commented, “Scope must stand on its’ own (in this contract). It must be an improvement”. Thus, improvements in other areas of the PWA cannot overcome a reduction in scope protection. I agree. Section I is about much more than RJs, though one of the goals of our contract opener is to “improve the balance of flying between Delta and DCI”."

Notice everyone singing from the EXACT same playbook. Never any talk of not allowing any more large RJ's (or God forbid reduce them), ONLY the nebulous "improving the balance".

We'll only win this with a totally unified front from the bottom half of the list. The junior guys are so critical this time.

Carl

hockeypilot44

They are going to allow more 76 seaters and tell us that our scope overall improved. I flat out asked my rep is there was any possibility of more 76 seaters being allowed. He said he is not allowed to discuss specifics. The answer above is politically correct. It means nothing though.

Elliot

Carl,

Since I normally don't agree with you, I am going to ask you, with all due respect, how you interpret the above bold text. I received the same letter. I happen to be not such a "glass half empty" type of guy.

First, as stated above, it was communicated to C20 members that "SCOPE MUST STAND ON IT'S OWN. IT MUST BE AN IMPROVEMENT". My interpretation of that communication is that we "reel scope back in". How else can scope be "improved" if we don't regain what was previously lost?

Secondly, it's stated again that "IMPROVEMENTS IN OTHER AREAS OF THE PWA CANNOT OVERCOME A REDUCTION IN SCOPE PROTECTION". Again, as I mentioned above, how do you interpret the statement of, "other areas ..... cannot overcome a reduction in scope protection"?

Thanks,

GJ

acl65pilot

May 2, 2012

From: Council 20 Chairman

To: Council 20 Pilots

Subj: Contract Negotiations



Early last year the Delta MEC began the path towards contract negotiations. We began by defining the process necessary to achieve our goal to improve the pay, working conditions, retirement, benefits, and job security of Delta pilots. The MEC created a time line which included duties and responsibilities, projects to be completed (e.g. contract survey, costing, contract history, contract comparison, etc.). We held special MEC meetings that allowed for MEC internal discussions and eventual direction to the Negotiating Committee.



In January 2012, at a special MEC meeting held in Washington D.C., Mr. Anderson, Mr. Bastian, and Mr. Campbell spoke to the MEC. In very general terms, Mr. Anderson laid out his near term goals for the airline and potential time constraints that could affect those objectives. After listening, careful consideration and much debate, the MEC agreed to further investigate the opportunity to open Section VI negotiations early. These discussions led to our current expedited negotiations.



As MEC Chairman Captain Tim O’Malley noted in his recent Chairman’s letter, negotiations have progressed at “a pace that one would normally not expect to see until the late stages of negotiations.” This is the result of:

· Extensive preparation by the MEC and our pilot volunteers/ ALPA staff/contract professionals

· Letters of Agreement and Memorandums of Understanding completed in the last three years

· Recent Scheduling and Training Optimization Team results; implemented via these recent LOAs, which have cleared much of the “underbrush” that would normally have been addressed in Section VI negotiations

· Statistically valid contract survey results

· The right negotiating team

· Definitive MEC direction to the Negotiating Committee

· A mutual interest in actively seeking an agreement

Though the information in the Chairman’s Letter is welcome news, and certainly all sections of the PWA have value, there remain two critical sections of the PWA among others that have just entered the discussion phase; Sections 1 and 3 (scope and compensation). Since we are in uncharted territory, even for an expedited negotiation, there is not sufficient information to suggest that agreements on scope and pay will occur at the same rate as the other sections of the PWA. The MEC must continue to follow the process, not hurry, and continue to adhere to and be guided by the priorities of our members. We have not reached the point where the expedited negotiations should be placed in the critical “limited time bucket” and fall prey to a self-imposed sense of urgency. Any agreement must be the right agreement regardless of the timeline under which it is negotiated. Until and unless the MEC alters the parameters of our direction, the Negotiating Committee is bound to work within those parameters.



To expand on comments I made in the Council 20 Newsletter, our contract opener is a reasonable and measured response to pilot sacrifices, the compensation of our peers, and the current and future financial health, stability, and market force of Delta Air Lines. As I have discussed previously with you, there are many opportunities available to grow the revenue and market share of Delta Air Lines. The crucial step to reach those goals is a stable work force with known costs. This can be achieved via a comprehensive pilot contract as the other employee groups are non-union.



As Captain Dickson noted in his April 29th Flight Ops Weekly Bulletin, “Even with fuel prices 14% higher than last year, this week we announced a March quarter pretax loss of $36M, excluding special items, which is $355M better than the first quarter of 2011. This places us $123M ahead of our plan year…we are outpacing all carriers in year-over-year margin improvements. Our Network strategy is working extremely well, and that’s causing our revenue generation to outpace the industry. For example, United saw a 2.6 point decline compared to our 4.6% pre-tax margin expansion…ancillary revenue is continuing to give us a big boost, and we are hoping to have an incremental $135M improvement compared to last year…we expect 2012 to be more profitable than 2011, even with higher fuel prices”. Richard Anderson also spoke of strong future profit expectations, in the range of $2.5B, at the Line Check Airman meeting the week of April 17th.



As I wrote you last month:



“Pilots have sacrificed pay, benefits, promotions, and pensions over the last decade. We have worked with the company through the merger and the JCBA process. We have crossed the deep water of Chapter 11 and a merger and created a combined airline that has the opportunity to be the preferred domestic and international airline.



Delta Air Lines is not:

· a low cost carrier

· an airline in bankruptcy

· a merged airline still flying a separate route structure and not enjoying the synergy benefits

· a company where management and ALPA cannot work together to reach a contract

Delta Air Lines is:

· two years ahead of the competition in the merger process

· a profitable airline even during a slow economy

· enjoying a higher PRASM (Passenger revenue per available seat mile) than our competitors

· able to pass on most fuel costs with fare increases

· increasing our market share

· acquiring high profit corporate accounts from our competitors



The ability to leap ahead even further rests with the decisions of Delta management”.





Linear thinking is a characteristic of pilots. I assure you that Delta management’s thought process is multi-faceted. The purchase of an oil refinery with numerous components and players is an example of management’s innovative strategy to increase revenue and address/reduce costs.



As one of my peers recently commented, “Scope must stand on its’ own (in this contract). It must be an improvement”. Thus, improvements in other areas of the PWA cannot overcome a reduction in scope protection. I agree. Section I is about much more than RJs, though one of the goals of our contract opener is to “improve the balance of flying between Delta and DCI”.



So far, I am pleased with the progress of negotiations and the agreements (in principle) that have been reached. If all sections are completed, a comprehensive tentative agreement will be presented to the MEC. When my questions and concerns have been answered and addressed, only then will I consider a decision on how to vote on this agreement. I ask you to do the same and to do your best to not be distracted by the numerous unfounded rumors that are circulating.



For many of the pilots that I represent this will be our last contract. I request that you consider the current state of our profession compared to when we were hired. We may be the first pilot group to negotiate and approve a contract in this post-bankruptcy and merger era. We have a responsibility to our profession and to our fellow pilots to move the bar higher…..and by a considerable distance. The opportunity is before us. We should not pass on this opening to set a new standard for pilot compensation, working conditions, benefits, and scope for the sake of expediency or short term rewards. We have many differing backgrounds and have arrived at this point in time through numerous merged airlines. We, the pilots of Delta Air Lines, can return our profession to the proper course through our resolve and participation in the negotiation process. Do not let past frustrations and disappointments distract you from this rare opportunity to make a difference not only in the life of your family, but in the direction of this industry and the recovery of our profession. If we reach an agreement and if the MEC ratifies that agreement, through your vote you will have the last word in the form of membership ratification.



Scott, Drew, and I are always available to listen and respond to your concerns.



Fraternally and respectfully,



Tom

Sink r8

Great letter. I only fear it cuts through the fog a little too much, and ruins much of the discussion. It's not quite like getting the ending to the book, but it's like getting good cliffnotes for the first 2/3 rds.

100,000 posts is within our grasp. Let's ignore this letter, and speculate some more.

Cubdrick

For anyone curious, all LEC reps email addresses and phone numbers are easily found after logging into the "Members Only" portal @ "www.alpa.org"

Would anyone be willing to post or PM me an outline of key points (or exact wording) they recently reiterated with their LEC reps? It seems I hit send and always feel I left out something. The last thing I want to convey to my reps is that I "must be OK with [fill in the blank]" since I didn't address the issue.

Junior guys: our votes and input count just as much as anyone else's. Take the time to let your reps know your concerns!

Thanks to any and all in advance!

newKnow

Amen! I love DTW reps! I couldn't have said it better.

acl65pilot

I was most impressed too. Good letter, and they are stating the obvious; They are doing their due diligence.

Scoop

GJ,

The answer to your question is simple - Scope improvements will all come via tradeoffs within section 1. Theoretically, Scope will not be sourced as a "bill payer" to fund other contractual improvements. When you consider that Scope covers DCI, Joint Ventures, Code-sharing, alliances and whatever other term you can think of to describe what it actually is........... Outsourcing, it becomes easier to visualize.

So saying Scope will stand on its own does not mean we will hold the line at 255 large RJs at all, it means if you consider all of section 1, it will be improved.

Say for example (hypothetical numbers) that Delta Pilots currently fly 55% of the passengers who buy a Delta ticket. If under the new TA we increase that to 60% or 65% we have improved Scope. Here is the catch, our current Scope is so bad that we can easily allow 50 more large RJs and still improve our Scope.

Scope is my number 1 issue for this TA - without Scope improved payrates hardly make up for an extended stay in the right seat. I am against any more large RJs but that is not the only weakness in our section 1.

The problem is not that we will be selling Scope - Scope has already been taken/sold/traded etc, depending on your interpretation of the last 10 years. Currently our Scope sucks. I hate the fact that while I was furloughed DCI was hiring by the hundreds, but all aspects of section 1 are equally important - what good would recapturing 76 Scope do if we double our code shares and JVs?

I want growth and hiring at Delta. If the best way to do that is tradeoffs within section 1 than so be it.

Finally, my interpretation of "Scope must stand on its own" means that we will not be trading Scope for something other than Scope - say higher pay-rates for example. The problem with this is how do we, the line pilots know what was traded for what, and how things were actually costed behind closed doors etc. I guess we have to trust our Negotiating Commitee and I have no reason not to.

Scoop

acl65pilot

Scoop, good post, and is brutally honest.