(posted 3/16/04)
Dear Fellow Pilot:
In my last letter, I outlined your union's shift of focus from mid-contract talks to full-scale Section 6 negotiations. While we remain open to mid-contract discussions with management, the Section 6 timeline requires us to prepare now for the exchange of contract "openers" in late summer. To that end, your Negotiating Committee is finalizing work on the contract survey, which you will be able to complete online using the MEC website. This is the most important step in determining pilot goals and priorities for the upcoming talks.
Also on the horizon is our May 1 contractual pay raise of 4.5 percent. As you know, the union offered to forego that pay raise as part of an overall mid-contract package. Absent an agreement prior to May 1, which appears unlikely, that pay raise will become effective as scheduled. To engage in negotiations on this point alone would put us in the position of seeking piecemeal solutions, something that has not worked in the past and is unlikely to work now.
In addition to negotiations, your union is active on many other fronts, not the least of which is contract compliance issues. Your MEC Contract Administration Committee is busy trying to resolve daily problems and grievances as quickly as possible. The nature and implications of our more recent grievances bring into focus the bigger question of trust and our working relationship with the company. I encourage each of you to closely monitor and enforce your contract.
Regarding another critical area, the MEC Retirement & Insurance Committee, along with ALPA actuaries, meet quarterly with Delta to receive updates on the retirement plan and funding levels. At the most recent meeting, held on March 2, two important issues were discussed: Delta's actuary for the Delta Pilots Retirement Plan was changed from Northern Trust to Towers Perrin, and the new actuary has restated two previously-issued actuarial reports. For these reasons, and because it is the union's responsibility to monitor the management of our retirement plan, ALPA has requested to perform an actuarial audit of the Delta Pilot Retirement Plan for the plan year beginning July 1, 2003. We will keep you apprised of Delta's response to our request, and any developments arising from our audit.
In addition to auditing the Delta Pilots Retirement Plan, the union also continues to closely monitor Delta's financial condition. ALPA's Economic & Financial Analysis Department meets quarterly with management to receive economic data and verify the company's financial projections. Our most recent analyses of Delta do not support management's position that it needs the level of concessions it is requesting from pilots. Depending on the number of block hours flown in a given year, management's demand equates to 40 to 44% of our contract. We will continue to request the most recent data from management so your union can make decisions based on facts and figures that are verifiable.
As we turn our focus to Section 6 negotiations, your level of involvement will increase as we ask you to educate yourself on other pilot contracts, complete the Contract 2005 survey, attend LEC meetings and MEC road shows, and continue to stay informed of developments that may arise in the interim.
Despite the challenges facing us, the Delta pilots remain unified and focused. I am confident that this unity of purpose will serve us well over the coming weeks and months.
Fraternally,
Capt. John Malone
Chairman, Delta MEC