Delta unites bonus plans for employees, a boost to its nonpilot workers

Unifying pilots, others will bring more equitable bonuses to employees, company says.

September 29, 2017 at 2:15AM
FILE - In this Monday, Aug. 8, 2016, file photo, Delta Air Lines planes are parked at Ronald Reagan Washington National Airport, in Washington. A California family says they were forced off a Delta plane and threatened with jail after refusing to give up one of their children's seats on a crowded flight. A video of the April 23, 2017, incident was uploaded to Facebook on Wednesday, May 3, 2017, and adds to the list of recent encounters on airlines that went viral, including the dragging of a pas
Delta Air Lines is returning to a single profit-sharing system for all employees, two years after creating a separate one for non-pilot workers. (The Minnesota Star Tribune)

Delta Air Lines is unifying its profit-sharing program for employees, a move that should result in bigger bonuses for most, the company said.

Amid a giant pay raise two years ago, the company created a profit-sharing plan for nonpilot employees that was based on a different formula than the one for pilots.

Both plans yielded some of the highest payouts in the airline industry in what turned out to be very profitable years for Delta. But over time, employees complained to executives that the two profit-sharing systems weren't equal.

"You've made it clear that this change didn't align with our one-team culture and it didn't feel like Delta — and you are right," Ed Bastian, Delta's chief executive, said in a memo Wednesday announcing the return to one profit-sharing system.

The Atlanta-based carrier operates its second-largest hub at Minneapolis-St. Paul International Airport and employs about 7,500 people in the Twin Cities.

Starting next week, Delta's nonpilot employees will return to the profit-sharing system that they were on before the 2015 change — and that pilots had remained on.

In it, the company's profit-sharing pool is formed from 10 percent of its first $2.5 billion in annual profit, and 20 percent of any profit above $2.5 billion.

The company earned $4.37 billion last year and $4.53 billion in 2015, and it paid out more than $1 billion in profit-sharing both years.

Delta earned $1.8 billion through the first six months of the year, 27 percent lower than its performance in the first half of 2016.

But the company is still likely to make more than $2.5 billion for the year.

In his memo, Bastian also praised Delta employees for their work through the disruptions caused by the recent hurricanes in Texas, Florida and Puerto Rico.

"You are the very best in the business," he wrote.

Evan Ramstad • 612-673-4241

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about the writer

Evan Ramstad

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Evan Ramstad is a Star Tribune business columnist.

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