Delta announced what, on the surface, looks like big pay raises for non-union employees this week. Wages will rise 14.5 percent. In addition, Delta will match 401k contributions at a rate of up to 6 percent of salary (vs 5 percent previously). Of course, there is a catch. While employees will still get 10 percent of all profits, the threshold for moving up to the 20 percent level changes. Today, 20 percent of any annual profits over $2.5 billion goes to employees. Going forward, only the amount of profit above the prior year’s level will be paid at 20 percent. So it pays on improved profit, not just high overall profit.
Pilots didn’t like when management tried to reduce profit-sharing in its last rejected contract, but this is a bit different than that anyway. Do you like it? Would you trade profit-sharing for wages?