April 1, 2004
Captain John Malone, Chairman
Members of the Delta MEC
100 Hartsfield Centre Parkway
Suite 200
Atlanta, GA 30354
Dear Captain Malone and Elected Representatives;
As we all know, it is hard to sit on the sidelines and watch events unfold that will dramatically impact the security of our families and future. Retired Delta pilots and non-contract employees, active Delta employees world wide, Delta stockholders, the traveling public and Wall Street are all watching the uncertain fate of Delta unfold as mid-contract negotiations between ALPA and Delta management remain stalled.
Both sides have publicly agreed that significant changes to the Pilots Working Agreement are needed, but when and how much is undecided. No further talks have been announced and those of us on the sidelines can merely watch with concern as the possibility of bankruptcy casts an ever-longer shadow.
There is, however, now an opportunity to send an encouraging message to the waiting stakeholders: The Delta MEC, on behalf of the Delta pilots, can voluntarily offer to forego the contractual May 1, 2004 pay raise. Simply decline the raise as a gesture of good faith, ask nothing in return, no strings attached.
We know that eliminating the May 1 pay raise has been part of ALPA’s table position in mid-contract negotiations for several months, but unilaterally offering to give it up now could provide several benefits in addition to the financial:
An agreement to forego the pay raise will show to all that the Delta pilots recognize the urgency of Delta’s financial distress and demonstrate their willingness to participate in a solution.
The Delta pilots would avoid the anger and backlash from other Delta employees that would occur if the raise were to go into effect during this time of acute financial distress.
A pay raise agreement would signal to Wall Street and others a possible end to the impasse in current negotiation and could act as a catalyst to continue mid-contract negotiations.
An agreement could have a positive impact on Delta’s stock price and credit worthiness while avoiding further negative consequences should the pay raise go into effect.
By making this unsolicited offer, the Delta MEC would provide strong and visible leadership at a critical time in Delta’s struggle for survival. As for the retired Delta pilots and the rest of the sideline watchers, it would provide a measure of confidence in Delta’s long-term financial health.
Thank you for your consideration of these views.
Fraternally,
Bill Houseman, Chairman
Board of Trustees
Delta Pilots Pension Preservation Organization, Inc.
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ALPA has advised us there will be no response to this letter.