I'm no expert on Delta Air
Lines, but I know more about the company than the average person knows
about the average big company.
As a reporter covering news
at and around Hartsfield International Airport for a couple of decades,
I've had occasion to talk to and be around some of the company's bigwigs
in the past, and I've spent some time around the rank and file covering
press conferences, new airplane roll-outs and other events. I've also
had a number of friends who worked there.
The story of Delta has always
been fascinating. Naturally, a reporter is skeptical about the hype. When
the news releases talked about the "Delta family" and trumpeted
the high morale and great relationship between workers and management,
one tended to nod and think, "Yeah, sure."
But when all the airlines were
facing tough economic times and the inevitable strike rumors several years
ago, the workers at Delta made a believer out of me ... they went out
and bought the company an airplane, just to show their solidarity.
It was a magnificent gesture.
No, getting one new airplane didn't lift Delta out of the economic doldrums,
but the psychological effect on management, workers and stockholders had
to be tremendous.
Delta workers were proud of
the fact that their company kept their pay and benefits near the top of
the industry without the need for unions, contract negotiations, strike
threats and all that.
In my conversations with pilots
recently, I can't help but notice that things have changed. When some
of the old-timers say that their current strike threat is "not about
the money," I truly believe them. There's a bitterness there that
can't be attributed solely to the heat of negotiations.
What happened to the Delta
family? Your guess is as good as mine.
If you talk to the pilots'
union, they'll tell you that the old leaders went out and the new leaders
came in with a completely different attitude. They started playing hard
ball and that old family feeling went away.
Talk to some of the managers,
I'm guessing, and you'll be told that it's the growing union influence
that's to blame. Here we are facing uncertain economic times and yet the
pilots' union is about to strike, even though the company's contract offer
would continue the tradition of keeping the pilots at the top of the heap.
From what I've seen and heard,
the folks on the ramps and in the ticket lines aren't feeling very familial
toward either group.
They were already mad at the
pilots, and if there was any of that old family feeling left, it may have
departed when the company announced a 6.6 percent raise for its CEO, Leo
Mullin, and five days later workers got a lengthy memo from CFO Michelle
Burns calling for belt-tightening to get through the economic slowdown.
Mullin's raise, which bumped
him up to $795,000 a year (plus all kinds of stock options and other benefits),
was based on "job performance" and the salaries of his peers.
And the rank and file have got to be wondering how a 57 percent drop in
revenue over the last six months qualifies as "job performance"
worthy of such a big raise.
As I've written about this
threatened pilot strike, I've been quick to dispel any idea that I'm jealous
of what they make, and I'll make that same point in Mullin's case. If
you can convince the board you're worth it, God bless you. I'm happy for
you.
Maybe he's worth it. Maybe
company profits would have been down 80 percent instead of just 57 if
somebody else had been in charge.
But if he's such a hot shot
manager, how come he couldn't figure out that the timing of this announcement
is on a par with a guy who asks his wife for nookie right after making
a crack about her weight?
And think what a boost it would
have been to morale if he had announced instead that he was going to delay
his raise as long as the company faced tough times. Then, "We're
in this together" wouldn't have such a hollow ring.
Whatever happened to the Delta
family mystique, it seems to be gone. Now the pilots and management are
playing hard ball, and that's just the way it's going to be.
But what the pilots have to
decide is how hard it's wise to push, and when it's wise to stop.
Revenues are down $300 million
to $350 million for the March quarter. How much is attributable to the
economic slowdown and how much to the fact that customers are avoiding
Delta for fear of the strike, no one knows.
Can the company withstand a
strike? Probably. The question is whether it will ever fully recover.
And what's the future of those
fat paychecks if it doesn't?






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