Delta pilots will avoid furlough if they agree to reduce minimum wage: Memo

WASHINGTON (Reuters) – Delta Air Lines told pilots on Friday that they would avoid it if they agreed to lower the minimum wage guarantee, according to a memorandum seen by Reuters.

File photo: Birmingham, Alabama, on March 25, 2020, Delta Air Lines passenger planes were seen parked at Birmingham-Shuttlesworth International Airport to slow the spread of coronovirus disease (COVID-19) is. REUTERS / Elijah Nouvelage

The Delta is still struggling due to a dramatic drop in travel demand due to the coronovirus epidemic. This week it reported second-quarter revenue fell 91% and adjusted $ 3.9 billion pre-tax loss.

The airline is working to further cut costs and more than 17,000 employees are taking voluntary departure packages, with more than 1,700 of the 7,900 pilots ahead of Sunday’s deadline to accept voluntary packages.

Delta Flight Operations Senior Vice President John Laughter

A memo states that the company is “committed to preventing involuntary furloughs for all, if not all Delta people.”

Laughter said that the company proposed to reduce the minimum pilot salary to 15% for 12 months to guarantee no furlough for one year.

“Our vision is to spread the work of a small airline among all our pilots to preserve all jobs – which would be unheard of in our history,” Laughter wrote.

Laughter said that Delta pilots are currently being paid for more hours, as they are actually flying. In June, the pilots flew for about 10 hours and in July it will be 15.5.

A spokesperson for the Air Line Pilots Association said the union met with Delta on Thursday and suggested the airline was choosing “to negotiate directly with our pilots”, stating that it could disrupt the process is.

Laughter noted that “further bookings have stalled in parts of the American spike as infection rates and worries increase with the virus.” Demand is still down about 80%, and we do not expect to see measurable improvement until the rate of US infection falls again. ”

The memo was previously reported by CNBC.

Reporting by David Shepperson; Editing by Sonya Hepvist

Our standard:Thomson Reuters Trust Theory.