Misc - HL 129 (3)

Illness Notice

From: John Owens

Date: 5/26/2012 6:32:25 PM

To: illness@pilotcommunication.net

Subject: Ron Pedro

Retired Delta pilot Ron Pedro (2002) is living in Hammond, Louisiana and has been teaching at Southeastern University there.

Early April he was walking up concrete stairs at school and fell backwards and cut open the back of his head. Spent several weeks in the hospital. He has fallen several times since and after tests, has been told that he has Lou Gehrig's disease. He is having trouble walking. He would like to hear from his pilot friends and his email is

ronald.pedro@charter.net and his cell phone is (504) 481-9755

John Owens

jo@fastband.net

+++++++++++++++++++++++++++++++++++++++++++++++++++

From: k1fjm@aol.com

Date: 5/24/2012 11:29:53 AM
To: mark@pilotcommunication.net
Subject: Fwd: From The Delta MEC Chair... TA Summary and Scope.

FYI, this from the DAL MEC Chair,

Subject: From the Delta MEC

From the Delta MEC:

Our amendable date in the current agreement is December 31, 2012. Just one day later, on January 1, 2013, pay rates will be 12.8 percent greater than they are today. Four percent of that increase will take place once the agreement is ratified with an additional increase of 8.5 percent on January 1, 2013. This will be followed by pay increases of three percent at the beginning of 2014 and 2015. Just two years after the amendable date of our current agreement, pay rates will be almost 20 percent above where they are today. Pilots will also receive an additional one percent contribution to their defined contribution plans effective January 1, 2014. Importantly, we have eliminated the pay differential that exists between the MD-88 and the MD-90; MD-88 pay rates will now match those of the MD-90.

Some will argue these increases are not enough and that we should hold out for more, but this ignores the time-value of consistent year-over-year increases. Southwest pilots, for example, are where they are today because they work for a consistently profitable company and have received a series of modest pay increases. On the other hand, some pilot groups have stagnated with no increases for years waiting for the elusive home-run payout. Since the merger, and through the end-rate gains of this agreement, same-seat compensation (pay and defined contribution increases) at Delta will, on average, increase over 53 percent. A 737 captain, for example, earned $153.42 per hour in 2008 and received an 11 percent DC contribution. On January 1, 2015, he will be paid $216.92 per hour and receive a 15 percent DC contribution.

In terms of scope, we were able to achieve important improvements, from the smallest jets through international joint venture protections. Scope is the most complex section of the contract. At its core, it is about who flies Delta’s passengers and ultimately, about Delta pilot jobs.

Importantly, we will have a block hour ratio, which establishes a minimum amount of mainline flying relative to DCI flying and a cap on the total number of 50 to 76 seat DCI aircraft. Delta will be permitted accelerated access to 76-seat jets, but this access can only occur if Delta first acquires small narrow-body jets flown by Delta mainline pilots and if there is a significant reduction in the number of 50-seat aircraft. Without the acquisition of these new mainline aircraft, Delta will be capped at the current level for 70/76-seat jets. Ultimately, under this agreement, Delta’s access to 76-seat jets will be capped at 32 less than what is allowed in the current PWA. Additionally, Delta will no longer be permitted to convert 70-seat jets to 76-seat jets going forward, regardless of the size of the mainline fleet.

Delta management decides which aircraft it operates, but we have every reason to believe that Delta will soon announce the purchase of aircraft contingent on the ratification of this agreement. This will represent a major opportunity for many of our pilots to upgrade from the right seat to the left seat and will also create a need for additional hiring for the right seat. While the details are complex and best left for a dedicated Negotiators’ Notepad, let me summarize by saying that if Delta executes its plan for the small narrow-body jet flying, the result will be a major shift of block hours to Delta mainline. The share of mainline domestic flying will increase by 21 percent and the ratio of mainline domestic to DCI flying will increase by 57 percent over the life of this agreement.

We achieved a number of improvements in the scheduling arena, and one of the most significant is in the area of reserve flying. The reserve guarantee will be established as two hours below the average line value (ALV) with a floor of 72 and a ceiling of 80. This improvement alone will result in a monthly pay increase for reserves of between 2.9 - 14.3 percent depending on the monthly ALV, before the pay table increases are applied. Combined with the other improvements to reserve, it is my view that when viewed in aggregate, we will have the best reserve system in the industry.

The complicated and often punitive 75 percent sick leave bank has been eliminated. All sick leave up to a pilot’s yearly accrued maximum will be paid at 100 percent, and for pilots with over 20 years of service, the sick leave accrual will increase from 240 to 270 hours per year.

The agreement also includes an early retirement program similar in scope to the program offered to other Delta employees earlier this year, and this program will also be the subject of a standalone communication.

There are many other improvements in the tentative agreement such as “vacation any,” average daily guarantee (ADG), elimination of the sick leave monitoring program and others too numerous to cover here. In addition to the communications I’ve already discussed, the MEC administration and the Negotiating Committee will begin a series of system-wide road shows commencing after the Memorial Day weekend. We will also produce a streaming video for those unable to make it to a road show. In short, we will do everything in our power to provide you with all the information you need to cast an informed vote once the ratification window opens next month.

This tentative agreement provides for an amendable date of December 31, 2015, three years after our current amendable date. Under the current PWA, we would not enter mediation until March 2013. In mediation, the average time spent to reach an agreement is 29 months. Our time in mediation could be more; it could be less. But if we take the average, that means we might not reach an agreement until the fall of 2015, just months ahead of the amendable date of the recently achieved tentative agreement. Put another way, we’ll be deep into negotiations for our follow-on agreement (Contract 2015) even before we might have reached an agreement on Contract 2012.

In a recent Chairman’s Letter to you, I wrote somewhat cryptically about fleeting opportunities, and earlier in this letter, I wrote about Delta’s fleet plan. The value the Delta pilots receive in conjunction with this TA is a result of Delta’s desire to execute its business plan in a timely fashion. It is in large part due to this leverage that we were able to seize the opportunity to reach this agreement over seven months ahead of the amendable date. Delta can execute a portion of its fleet plan without an agreement with ALPA, but this is a rare opportunity to accelerate and enhance that plan to the benefit of both Delta and the Delta pilots.

Finally, I would like to thank the MEC Negotiating Committee and their expanded team for the incredible work they have done over the past 18 months and in particular, during the last two months. The Delta pilots have once again set the bar for pattern bargaining, and shattered the paradigm of drawn-out negotiations. Importantly, if this agreement is ratified, we don’t intend to stop there. Your MEC will continue to make incremental but significant improvements at every opportunity, just as we have for the past several years.
The Delta MEC Negotiating Committee wholeheartedly endorses this agreement, and the Delta MEC has approved and endorsed this agreement. It is my recommendation that when the time comes to cast your vote, you vote to ratify the agreement

May 22, 2012

12-03

Contract 2012 – Overview

On May 21, 2012, after a week of review and deliberation, the Delta MEC voted to approve the

Tentative Agreement (TA) and forward it to the pilot group for your consideration.  We believe it is

unprecedented to have a comprehensive agreement on a new PWA more than seven months ahead

of the amendable date.  This is the result of eighteen months of work by the MEC and its expanded

negotiating team.  It included: 

•  Extensive preparations for negotiations including the Delta Pilots’ Contract History, Contract

Comparison and Contract Survey

•  The MEC’s strategic decision months ago to capitalize on every opportunity to provide value

for the Delta pilots

•  Utilizing these opportunities to provide value well ahead of the normally lengthy and in

many cases unproductive timelines 

•  Two months of intense negotiations

Yesterday’s Chairman’s Letter provided a broad overview of the TA.  This Negotiators’ Notepad will

explain the circumstances that led to the successful conclusion of these negotiations and provide a

more detailed overview of the TA that is now in your hands for membership ratification.  Additional

Notepads will follow in rapid succession providing more detailed explanations of the changes to each

area of the PWA.  Importantly, full contract language was made available to you soon after MEC

approval of the TA and is posted on the Section 6 page of the Delta MEC website.  

Soon, the Negotiating Committee will embark on a month of road shows around the system to give

you an opportunity to learn more about the TA and the circumstances surrounding it.  We

encourage you to make every effort to attend.  Our goal is to provide you with all the information

you need to make the most informed decision possible. Look for a road show schedule to be

published some time next week.

Strategic Opportunity

Earlier this year, Delta management presented the MEC with the framework of a proposal that

involved up-gauging Delta’s domestic network. Their proposal, if enacted, would ultimately result

in a substantial increase in the total amount of aircraft at and flying performed by the Delta

mainline.  The management proposal included adding new small narrow-body aircraft to the

mainline fleet, which would result in a permanent shift in pilot block hours to the mainline.  After

extensive deliberation and analysis, the MEC directed your Negotiating Committee to engage the

Company to determine whether such an arrangement would be possible on terms that met the goals

of the Delta pilots.

Tentative Agreement Summary

Due to the comprehensive changes to most sections of the PWA, a full explanation of this TA in a

single Notepad would be impractical.  The remainder of this Notepad will provide an overview of the

TA, some of which was previously published in Negotiators Notepad 12-02.  Succeeding Notepads will

provide full details of every section of the TA.

Compensation

  Hourly Pay Rates

          Effective    Cumulative

January 1, 2013       12.8%*            12.8%

January 1, 2014        3.0%            16.2%

January 1, 2015        3.0%            19.7%  

*Includes 4% increase effective on 7/1/12 

•   CQ Training Pay  –  Increased from 3:15/day to 3:45/day
•   Distributed Training Pay –  Increased from 1 minute pay for 3 minutes run time to 1 minute pay for 2 minutes run time, an increase of 50 percent
•   Vacation Pay –  Increased from 3:00/day to 3:15/day
•   International Pay –  Captain:  Increased from $6.00 to $6.50     –  First Officer:  Increased from $4.00 to $4.50
•  MD-88 pay increased to MD-90 pay (2.4% increase)
• Per Diem  –  Increased $0.10 on 1/1/13  •  $2.10 Domestic/$2.60 International –  Increased $0.10 on 1/1/14  •  $2.20 Domestic/$2.70 International
• Defined Contribution increased by 1% on 1/1/14 –  Results in 13% DC + 2% DPSP (401k) = 15% total
•  A portion of profit sharing has been converted into pay rates, effective with the February 2014 profit sharing payout.  Note: Do not make the mistake of confusing PTIX paid in the table below with a direct effect on pay rates; Examples will be provided in a subsequent

Notepad

–  Guarantees pay regardless of company performance

–  PTIX Levels - % of PTIX Paid under Program

  Current        Effective Calendar Year 2013 

  $0 to $2.5 billion - 15.0%    $0 to $2.5 billion - 10.0%

  Over $2.5 billion - 20.0%    Over $2.5 billion - 20.0%

Scope

•   Currently, the Company operates 598 regional jets through their DCI partners.  This agreement establishes a hard overall cap of 450 DCI aircraft (and now includes large turboprops in that number) when the Company takes delivery of additional 76-seat aircraft –  Includes a hard cap of:

•  125 50-seat aircraft 

•  102 70-seat aircraft 

•  223 76-seat aircraft 

•  Minimum required ratio of flying between mainline and DCI –  If mainline block hours decrease beyond threshold in the future, a corresponding decrease in DCI block hours will be required
• Eliminated conversion of 70-seat aircraft to 76-seat aircraft based on mainline growth –  3:1 conversion to 76-seat aircraft above 767 mainline jets eliminated
•  Established Joint Venture (JV) production balance protections (share of flying) –  Provides additional restrictions on new or amended JV agreements if negotiated production balance is not achieved
•  Established code share restrictions on holding companies (Republic issue)–  Requires that the same restrictions that apply to a DCI carrier will apply to a holding company that owns such carriers –  Existing relationships with Chautauqua and Shuttle America (current total of 54 aircraft) are not affected
•  Improved foreign ownership protection–  Requires Delta to now oppose any changes to laws regarding foreign ownership of U.S. carriers
•  Improved SLI language –  Requires Delta to accept ALPA-proposed seniority list in the event of a merger or acquisition
•  Expanded and improved furlough protections –  Requires 90 days’ notification to furlough to pilots on the seniority list at date of signing –  Requires the physical removal of six seats from all 76-seat aircraft if a pilot on the seniority list at date of signing is furloughed; these seats cannot be reinstalled until the most junior furloughed pilot is offered recall –  Requires there be no furlough of Delta pilots for 24 months in the event of a merger

Other

•  Increased reserve guarantee and number of awarded X-days–  Provides reserves an average pay increase of 8% on top of pay rate increases
•  New sick leave system that increases yearly sick credit and deletes the 75% pay provision and the Sick Leave Monitoring Program
•  Hotel, laundry, and relocation benefits improved
•  Contract medical plan improved
•  Disability benefits improved
• ALV window increased from 72-82 to 72-84
•  Changed summer month bid period dates
•  Incremental improvements to minimum staffing formula
•  Early retirement program –  Targets maximum participation possible while maintaining operational reliability –  Up to $120,000 in Retiree Medical Account –  Up to 39 weeks of severance pay
•  Introduced a new rig – Average Daily Guarantee –  Provides for a daily average of 4:30 to a rotation.  This addresses the issue, for example, of a three day trip with only two duty periods.  –  Exception for rotations that have a duty period reporting after 2200 or releasing prior to 0200 pilot base time Duration
•  Effective on July 1, 2012
•  Implementation of certain items subject to programming constraints, start of vacation or sick leave year, etc. (Timeline will be published shortly.)
•  Duration through December 31, 2015 –  Openers may be exchanged up to 270 days prior to amendable date –  In the absence of an agreement by March 31, 2016, the parties agree to jointly petition the National Mediation Board for mediation services

Conclusion

The Negotiating Committee would like to thank the Delta pilots for their support, diligence,

participation, and patience throughout this process. Your input and guidance through the Contract

Survey and communications with your elected representatives provided the committee with the

foundation needed to begin negotiations.  Line pilot input was the bedrock for committee

deliberations throughout the process. 

In the weeks ahead, there will be much to study and learn concerning the extensive changes to the

PWA that this TA brings. Additionally, we will provide you with a thorough comparative review of

this TA in relation to our peers throughout the industry. 

The MEC has determined that there is sufficient time between now and July 1, 2012 for an

appropriate membership ratification process.  The ratification window will open in mid-June and

close on or prior to June 30, 2012.  If the agreement is ratified, this timeline will allow for

implementation on July 1, 2012 in order to obtain the full benefit of the first pay increase and other

provisions.  Specific details will follow.

Please take the time to study the materials that will be provided to you in the days and weeks ahead,

share the material with your families, attend one of the road shows, and ask as many questions as

you need to ask.  The Delta Pilot Network call center will be manned throughout the pilot

ratification process and DPN volunteers will have direct access to members of the Negotiating

Committee to provide answers to all your questions in a timely manner. 

Lastly, your Negotiating Committee believes that this is a significant agreement for the Delta pilots

and our families. As such, we strongly endorse this agreement and recommend that when the voting

window opens, you vote in favor of ratifying C2012. 

Delta MEC Negotiating Committee

Parri Olmstead, Matt Coons, Heiko Kallenbach, and Dan Vician

 ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

From: Wayne La Liberte

Date: 5/14/2012 1:24:44 PM

To: Mark Sztanyo

Subject: Finality

Mark;

I recently received a letter from the Executive Suites at Delta indicating that my H.R. FILE had been purged of any vilification regarding events surrounding FLT 36 IN August of 94and shows me retiring on schedule on 30 Sept 1997

I also received my reissued licenses back from the FAA as a result of the NTSB DISMISSAL OF CHARGES

I WON, and you won with a reaffirmation 0f part 121.557!

The only thing that can be said is that chronic fatigue continues to be a major player in aviation incidents and that communication between crew members is essential in preventing incidence like this from happening. My engineer dropped the ball.

W.R.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ The above post is not necessarily the opinion or shared view of the editor. Some posts may be excluded from the current issue because of too much content or deemed inappropriate. All PCN subscribers are welcome to post. PCN Home Page is located at: http://pcn.homestead.com/home01.html