News as of 8-12-03

[Kristie]

I think us "other" family members may have to step in and start voicing our opinions on how our union leaders are doing. Even though we don't pay dues, we are PART of the union because it DOES affect us and our families...

the final statement in this article makes me think they're not doing their "elected" duty for their group. I personally don't care one way or another how the union does it, but there should be absolutely ZERO wage cuts or contract negotiations UNTIL management either gives back the MILLIONS of $$ they took or agrees to concessions themselves FIRST!

AMR and United (among others) should have done the same thing! :x :x
__________________________________________________ ______
William Buergey, chairman of the leadership council of the Air Line Pilots
Association at Delta, said union leaders recognize the need to help rescue
Delta, but that any agreement they make with the company will have to be
approved by the pilots, many of whom are angry over the issue of the
pensions and management compensation.

Delta officials say the 35 employees benefiting from the special trusts
were chosen on the basis of salary and years of service, not job title.
None of the three officials who have left has gone to a competitor, which
was a major aim of the program. Thomas Slocum, Delta's vice president of
corporate communications, said more relevant than three people leaving the
company "is that the vast majority of Delta executives have remained and
are continuing to work to strengthen Delta during this financial crisis."

Delta established its trusts last year, but their existence didn't become
public until it made filings with the Securities and Exchange Commission
this spring. It has declined to disclose who had been chosen to benefit,
arguing that it is a private matter. The company explained that after the
Sept. 11, 2001, terrorist attacks it needed to secure its management team
in order to "weather the storm." By setting up trusts in the names of the
selected airline employees, then funding the trusts with enough cash to
guarantee the employees' retirement benefits, Delta says it hoped to
protect them from any financial troubles the airline encountered,
including
the possibility -- however remote -- of bankruptcy. Frederick Reid,
Delta's
president, said in a recent interview that "leadership has played a role
in
making Delta's prospects pretty good" compared with other carriers.

The Delta documents list the 33 people enrolled in the trust program when
it started last year. Although two more have been added since, the early
list shows that the program went beyond top executives. The documents
detail $25.6 million in trust payments made in 2002, including payments
the
company made to cover tax liabilities for the employees. The top five
executives accounted for $14 million of that. At the top of the list was
Mr. Mullin, who received an $8.2 million trust payment, including the
company's payment to cover his taxes.

Also included are General Counsel Robert Harkey, who received a $2.4
million trust payment, and seven attorneys under him. Eight company
attorneys received a total of $4.2 million in trust payments. Mr. Harkey
recently said he would retire at the end of the year. Two other trust
beneficiaries, John Boatright, a vice president of corporate real estate,
who received a $363,000 trust payment, and Michael Young, vice president
of
community relations, who received a $111,000 payment, already have left.

Mr. Boatright didn't return a message left with his secretary at his new
job at the Atlanta airport. Delta said Mr. Harkey wouldn't comment. Mr.
Young said he left in June to open a consulting company for not-for-profit
organizations, and thought the trusts were "a very important program" for
retaining Delta's top talent.

In some cases, lower-level managers received trust payments but their
senior level bosses were skipped, according to a company document. Delta's
Mr. Slocum said the company used a straight formula and some employees
didn't make the cut under that formula.

William Williams, president and chief executive of the Delta Employees
Credit Union, received a $251,000 payment to a pension trust in his name,
according to a company document. Mr. Slocum said all credit-union
employees, including Mr. Williams, are Delta employees. Mr. Williams has
been an employee for 35 years, the company said.

Mr. Slocum, who is among those receiving trust payments, said it is
important to note that the payments represent a part of the employees'
regular Delta pensions. "These are not extra payments, this is money that
was earned," he said. "This is just a different way to access the funds."
Delta officials routinely listen to concerns from employees about the
program, he said. "We're certainly aware of the concerns, and we've
listened to them carefully."

Under the trust arrangement for those still employed by Delta on Jan. 1,
the trusts will pay their assets out in a lump sum when the recipient
leaves Delta or turns 52, whichever is later. But they can get their hands
on the money sooner if they want: Within 10 days after each contribution
from the company, the trust-owner can ask to receive some or all of the
cash within three days.

AMR's trust program and retention package also hasn't kept the entire team
together. The company says nine of the 45 participants have left,
including
Mr. Carty.

The friction at Delta over its executives pension trusts comes as the
nation's third biggest carrier, behind American and UAL Corp.'s United
Airlines, is seeking ways to cut costs everywhere it can. The company had
a
net loss of $1.3 billion last year, and expects to lose between $200
million and $250 million in the current quarter.

United and American, also saddled with losses, have won substantial pay
cuts from their employees. Delta has asked its pilots for a 26.5% pay cut
and cancellation of a 4.5% raise next year, plus a later round of talks on
work rules changes to raise productivity. [b:57b459d5e0]The pilots union, which
represents over 9,000 Delta pilots, has offered to take less-drastic wage
cuts.[/b:57b459d5e0] [u:57b459d5e0][i:57b459d5e0](ABSOLUTELY UNBELIEVABLE!!!!)[/i:57b459d5e0][/u:57b459d5e0]