Delta hands out bonuses to managers with federal aid — nothing for pilots and other workers

Delta managers are getting bonuses, some of them in the six figures, after getting pay cuts last year at the start of the Covid pandemic.

Delta Air Lines, which received billions of dollars in federal aid last year, is paying managers bonuses ranging from a few thousand dollars to more than $100,000 to help make up for pay cuts at the start of the Covid pandemic last year.

Front-line workers like flight attendants, pilots and others in nonmanagerial positions are not receiving bonuses.

Delta’s CEO, Ed Bastian, said in a note to employees on Monday that the payments brings those managers’ pay to 20% to 30% below the year-earlier levels, from cuts that previously were around 50%.

“Fairness is one of the fundamental values we share at Delta, as is our mandate to always do right by our people,” Bastian said. “That’s why we made the decision to make a one-time adjustment payment to better align the percentage impact to overall compensation for everyone below the executive officer level.”

In addition to cutting managers’ pay, Delta last year also reduced thousands of workers’ hours by 25% to help weather the pandemic’s plunge in travel demand, a policy that was criticized by some lawmakers. The Atlanta-based airline avoided involuntary furloughs or job cuts, partially thanks to the 18,000 employees, roughly 20% of Delta’s pre-pandemic workforce, who accepted buyouts and early retirement packages last year. The carrier posted a record loss of $12.4 billion in 2020.

Delta received $5.6 billion in federal aid last year as part of a $25 billion program passed as part of in the CARES Act in March that prohibited airlines from cutting employees. The carrier expects to receive $2.9 billion this quarter as part of an extension of the program that Congress passed late last year, Delta said in a filing last month.

The pilots’ union criticized the move, which was first reported Sunday by the View from the Wing travel blog, saying it went against the spirit of the CARES Act.

“While we are confident that Delta will recover quickly once the country comes through the pandemic, the payment of special bonuses to management while the airline is still burning cash is premature and inappropriate,” said Chris Riggins, spokesman for the Air Line Pilots Association, in a statement. “We also believe the payment of bonuses limited to management is inconsistent with the spirit of the CARES Act. This was an unfortunate and shortsighted decision.” 

Delta says it is following the CARES Act terms, which placed limits on top executive compensation. Managers’ compensation can vary depending on company performance. Delta says it continued to pay rewards to front-line and other employees for hitting operational targets but those amounts are lower than the bonuses.

The carrier and its U.S. competitors are on track to receive [ … ]

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partial
1 month ago

Grab everything you can until it collapses.

Mr Random
1 month ago

We are all in this together…

salty
1 month ago

Delta Airlines:
The world’s largest distributer of roasted peanuts.

https://saltydictionary.com/delta-airlines/

That's the Way
1 month ago

Make profit, pay bonus, make profit pay bonus, bad year, get bailout, pay more bonus.

wrick
1 month ago

This is why government bailouts never work. They sent money to keep the airlines afloat during the pandemic, but it never trickles down to the actual workers. Unemployment is rampant in layoffs are only going to continue, at least for a little guy.

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