Always Keep Your Deals^with executives

*EXECUTIVE COMPENSATION
INCREASES AND SERP: 

In 2002, at the same time that employees started to lose benefits and compensation, Delta reworked its executive bonus criteria to shift the focus to measures other than profits. This made it possible for executives to receive bonuses even if the company lost money. Company documents showed the top five executives got $4.8 million in cash and 55 second-tier executives got $12.5 million in cash under the plan.

Also in 2002, the Retention Program for executives was created which allowed for executives to receive a contingent cash retention award of 125%-300% of their base salary if they continued to stay at Delta in 2003 and 2004, respectively.

In 2002, Delta set up a Special Executive Pension Program (SERP) for the 35 top executives. The initial payment into the SERP was $25 million. Another payment of $20 million was made in 2003.The third installment of $20 million was scheduled for early 2004, but was not made due to government and employee outcry.

Note: at the time of the creation of the SERP, non-contract employee pension plans at Delta were underfunded by as much as $4.9 Billion.

Just Prior To First Representation Election in 2002

Management pledges to implement evaluation process for salary/benefit increases and keep flight attendants at top of industry.

February 1, 2002:

DELTA FLIGHT ATTENDANTS FAIL TO GAIN REPRESENTATION.

Management’s promised evaluation finally performed. Although management determines flight attendants are not at top of industry, final decision—no pay raise warranted.
Promises made prior to election abandoned.

2002 - 2003

July 1, 2002:

August 2, 2002:

August 15, 2002:

January 1, 2003:

March 2, 2003:

July 1, 2003:

January 1, 2004:

February - March 2004:

July 1, 2004:

January 2005:

OPERATION CLOCKWORK goes into effect: non-contract employees will receive $25 “Good4All” payouts if certain benchmarks met. Executives receive 20% of pay in bonuses if same benchmarks met.

January 31, 2005:

September 30, 2005:

November 1, 2005:

November 15, 2005:

December 31, 2005:

2006

Pension Protection Act passes in Congress: Delta allowed to reduce yearly funding to non-contract employee pension plans.

January 1, 2006:

March 31, 2006:

April 1, 2006:

April 30, 2006:

May 1, 2006:

2007

July 1, 2007:

2008

UnitedHealthcare becomes provider for all healthcare plans.

January 1, 2008:

February 7, 2008:

Executive Compensation Increases:

May 28, 2008:

DELTA FLIGHT ATTENDANTS FAIL TO GAIN REPRESENTATION.

June 12, 2008:

October 29, 2008:

Department of Justice officially approves merger between

Delta Air Lines and Northwest Airlines.

January 1, 2009:

March 2, 2009:

March 31, 2010:

July 19, 2010:

Delta AFA Representation election underway:
September 29, 2010 - November 3, 2:00 PM ET

October 1, 2010: