Is Delta playing chicken?

[Kimberlyfamilyfv]

if delta wants the pilots to open their contracts then the executives at delta should have to be subject to a pay cut as well. I am sure that the executives and all their perks have not been factored into the equation as equally as it should be. Even if Delta goes into bankruptcy those executives still make out like fat rats and everyone else the heck with.


My family is still dealing with such an event due to the loss of my husbands job 4 years ago so I know what I am talking about.


My question is why do the bankruptcy courts allow these whopping payout to the executives? If they managed the business properly and made choice and not selfish ones the bottom lines of these companies would be better off.

Kimberly

 

[bicker]

Executive compensation is a red herring. In a bankruptcy liquidation, executives get nothing extra, and often lose big time, in terms of holding worthless stock and stock options. Beyond that, executive compensation is incredibly marginal as compared to the cost of union labor.

 

[Miss Jasmine]

From what I have heard from Delta pilots is that they think Delta is hiding money, and is pushing the envelope to see what it can get. Heck if Delta makes a concession of 2% (18% cut as compared to a 20% cut) that is millions of dollars back into the pilots' pockets. So the pilots go through all of this, possibly further damaging the airline it is trying to get money from. Makes a lot of sense.

 

[aloysius1992]

Delta took 100 million last month from the money allocated for employee disability payments and transferred it to pay retention bonuses to the top executives.

 

[bicker]

Actually, I believe you're mistaken. Check your source again -- post a link too, so we can see what you're actually referring to.

 

[aloysius1992]

Judge Lets Grinstein's Delta Tap Disability Fund
Greg Levine, 02.06.06, 5:16 PM ET

NEW YORK - Remember the "lock box"?

That sound bite from Al Gore's presidential campaign--and a standby on General Electric's (nyse: GE - news - people ) Saturday Night Live--looks like, in the apocryphally misquoted words of Ronald Reagan, an idea whose time has passed.

At least on Gerald Grinstein's watch. He's the chief executive of Delta Air Lines (otc: DALR - news - people ), and the bankrupt firm won permission from a judge Monday to further raid coffers earmarked for a disability and survivors' trust. The CEO's plans to revamp the firm include harnessing such funds to meet other financial obligations.

First article that came up googling Delta & disability. This one from Forbes.

 

[TammyC]

if delta wants the pilots to open their contracts then the executives at delta should have to be subject to a pay cut as well.

Kimberly

According to this article the CEO took a pay cut in the 30-35% range..


http://news.nky.com/apps/pbcs.dll/article?AID=/AE/20060413/NEWS02/604130373/1023/LOCAL03

 

[deltachi8]

The one thing you guys aren't factoring in, is how much thses guys NEED to make.

Better known as the "Patrick Ewing Argument." During a labor dispute in the NBA, Mr. Ewing, then of the Knicks, reminded everyone that while NBA Players make a lot of money, they need to because they spend alot.

From what I have heard from Delta pilots is that they think Delta is hiding money,

Ah, yes, the union rehotric play book, page 53 or 54 I believe. This often happens in a labor dispute, the corporation is accused of hiding money. In case the Pilots wish to know, inside the board room that is met with a good hearty laugh and then they move on to something worth merit.

 

[bicker]

Delta took 100 million last month from the money allocated for employee disability payments and transferred it to pay retention bonuses to the top executives.

then

... "the bankrupt firm won permission from a judge Monday to further raid coffers earmarked for a disability and survivors' trust. The CEO's plans to revamp the firm include harnessing such funds to meet other financial obligations."

So the 100 million wasn't for "retention bonsues to the top executives".

I know some of you folks are anti-business, but let's at least keep things honest, okay?

 

[Hockeymommy]

I had no idea what the pilots actually earned. Boy, if my husband earned 169k a year I'd be thrilled. My husabnd is an equipment operator and makes less than half that. Not to mention his job is crazy dangerous, he's already been run over at work and he is only 34. After reading this I think Deltas pilots need to realize how good they have it, even with a pay cut.