Delta give out rewards to supervisors whose pay was cut in the pandemic

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Delta hands out bonuses to managers whose pay was cut in the pandemic

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Delta Air Lines Bombardier Boeing 757-200 airplane as seen getting here, on last method for landing in New York JFK John F. Kennedy International Airport.

Nicolas Economou | NurPhoto | Getty Images

Delta Air Lines, which got billions of dollars in federal help in 2015, is paying supervisors rewards varying from a couple of thousand dollars to more than $100,000 to offset pay cuts at the start of the pandemic in 2015.

Frontline employees like flight attendants, pilots and others in non-managerial positions are not getting rewards.

Last year, Delta cut supervisors’ pay and likewise lowered countless employees’ hours by 25% to assist weather the pandemic’s plunge in travel need, a policy that was slammed by some legislators. The Atlanta-based airline company prevented uncontrolled furloughs or task cuts, partly thanks to the 18,000 workers, approximately 20% of Delta’s pre-pandemic labor force, that accepted buyouts and early retirement bundles in 2015. The provider published a record loss of $12.4 billion in 2020.

“While all Delta people were affected by the worst year in our history, following a comprehensive pay review of all levels in our organization below the executive officer level, we identified levels that were disproportionately impacted as a result of last year’s events and made a one-time adjustment payment,” Delta stated in a declaration.

Delta got $5.6 billion in federal help in 2015 as part of a $25 billion program passed as part of in the CARES Act in March that forbade airline companies from cutting workers.  The provider anticipates to get $2.9 billion this quarter as part of an extension of that program that Congress passed late in 2015, Delta stated in a filing last month.

The pilots’ union slammed the relocation, which was initially reported Sunday by the View from the Wing travel blog site, stating it broke the spirit of the CARES Act, federal payroll assistance that airline companies got in 2015 in exchange for not involuntarily cutting employee.

“While we are confident that Delta will recover quickly once the country comes through the pandemic, the payment of special bonuses to management while the airline is still burning cash is premature and inappropriate,” stated Chris Riggins, spokesperson for the Air Line Pilots Association, in a declaration. “We also believe the payment of bonuses limited to management is inconsistent with the spirit of the CARES Act. This was an unfortunate and shortsighted decision.” 

Delta states it is following the CARES Act terms, which positioned limitations on the top executive settlement. Managers’ settlement can differ depending upon business efficiency. Delta states it continued to pay benefits to frontline and other workers for striking functional targets however those quantities are lower than the rewards.

The provider and its U.S. rivals are on track to get extra federal payroll help.

On Friday, the House passed a $1.9 billion coronavirus relief bundle that consists of a 3rd round of federal payroll assistance for airline companies. If the expense passes the Senate, U.S. airline companies would get $14 billion in exchange for keeping employees paid till Sept. 30. U.S. airline companies have actually currently gotten $40 billion in payroll assistance in 2 other coronavirus help bundles.