Delta Air Lines is once again offering sizable bonuses to its employees in the form of $1.4 billion in profit sharing from 2023. But union organizers, desperate for more Delta workers to unionize, insist this is not good enough.
Even Generous Employee Profit Sharing From Delta Air Lines Draws Union Scorn
Each year on Valentine’s Day, Delta employees receive a profit sharing bonus commensurate with the carrier’s profits the previous year. Rather than a flat fee to each employee, employees receive a percentage of their annual earnings based upon how profitable the carrier was. This year, based on 2023 profits, each employee will receive an approximately 10.4% bonus on their annual earnings. That amounts to about $1.4 billion in total, representing about 30% of Delta’s total $4.6 billion profit in 2023.
Delta is the most profitable US airline and also the most generous with its bonus program. Since 2007, Delta has paid over $11 billion in employee bonuses. To contrast, American Airlines flight attendants recently received a 1.1% profit sharing bonus (1.1% of their annual salary).
Delta CEO Ed Bastian explained:
“Rewarding our people is fundamental to who we are at Delta. It’s always my No. 1 priority to take care of the Delta team, and today is a prime opportunity to recognize their dedication and efforts in 2023. This year’s $1.4 billion payout along with our global annual celebrations represent just one of the ways we’re able to demonstrate our gratitude and love for a well-deserving team.”
Your #1 priority isn’t safety?
(I jest)
This is unmitigated good news for Delta and for its employees. Kudos to Delta for rewarding its employees, who are an essential reason why Delta is so profitable in the first place.
But not everyone is happy. Delta has the highest percentage non-unionized employees of any major airline in the US, including its flight attendants. IAW Air Transport Coordinator James Carlson, who is working to organize Delta employees to unionize, told Georgia Public Broadcasting:
“They get less vacation pay; they get less holidays. They don’t have the overtime rules that we have. So when you add it all up, these Delta workers are getting shortchanged — and they know that.”
No, sir. They don’t know that. They don’t know that because they are actually doing much better than all their unionized peers. No one is being short-changed. In the case of flight attendants, Delta pays its workers more than American or United, pays them for boarding, and of course the profit sharing is simply magnitudes better. Plus, workers keep more of their paycheck each month instead of paying union dues.
Delta may be generous because it fears unionization, but its workers are the beneficiaries and it is more lucrative to work for Delta, all things considered, than for any airline peer.
CONCLUSION
Delta has awarded its employees generous profit sharing checks once again representing 10.4% of their annual pay. But union organizers are still crying foul, saying Delta is shortchanging its workers. That’s some strong cognitive dissonance at play…
image: Delta Air Lines
I find this interesting. The unions can cry foul, but the reality is DL is the only airline that has given it’s FA raises. AS, AA, WN and UA FA’s are still all working under old contracts.
IMO, the unions are really doing a disservice to their members. They are so intent on getting a better deal than DL to prove a point that they are passing up acceptable deals. I believe AA offered to match DL and the FA union passed it up.
Also, IMO the FAs need to realize they are not going to get what the pilots got. Pilots are in short supply, FAs are not. Also, the barrier to becoming a pilot is much higher than a FA.
Agreed 100%.
I think the whole system is broken. Senior FAs are paid very well while junior FAs, doing the same work (and often more) struggle to make ends meet. Boarding pay does not exist because senior FAs deemed it more lucrative to accept higher hourly wages for flight time (Since they can hold lines on longer routes). The system is stacked against juniors and I’d love to see a union actually stick up for its junior members FIRST.
Fantastic article and agree. Great job giving this airtime
@Bob … +1 .
Flight attendants are not being served well by the unions. Unrealistic expectations will not raise morale and likely result in disgruntled employees long after new contracts are in place. This will not improve company nor customer relations and is bad business. The structuring of the pay plan is flawed.
@Maryland … +1 .
This shows that unions steal from the employees they are supposed to represent
“Leaders” like Sara Nelson should be sentenced to labor camps for stealing from their junior members. Teach her what an honest day’s work is
Speaking of “cognitive dissonance”, if Delta is paying $1.4 billion because it “fears unionization” what do they fear? Do they fear the billions more they should be be paying for wages and benefits? Maybe they fear the cost of work rules that give employees fairness and guaranteed lunch or dinner periods and much more. Delta absolutely fears the whole union thing which is why the employees are rising up and uniting and are not fooled by your little hack “article” and the sophistry of your “conclusion.” Read a book Matt.
Every Delta worker I speak to is happy.
The only ones unhappy are the union hacks who want a piece of their paycheck…
You must not speak to many of them. Delta brings in more revenue then all the other airlines but take their ramp for example, they are currently 4 place in pay. Southwest, United and even Alaska pay more than Delta. Employees would much rather have a better hourly pay than a bonus and the bonus this year is only where it is because of pressure from them wanting to unionize. Look at last year before the campaign started 5%.
If you want to see what a union can do, ask the Delta pilots. They just got a 34% increase with their new contract and if any other airline tops them, they get to march that increase plus 1%.
Do more research before spouting off on things you apparently know nothing about.
Still the Teamsters, the IAM or any other union can’t get 50% plus 1 of ramp employees to support unionization.
Continental when rumors started swirling they would merge with United their ramp voted in the Teamsters almost overnight. We’ve seen other airlines vote unions in so if things are really as bad as you say it shouldn’t be difficult for the Teamsters or the IAM to unionize Delta Ramp and Customer service agents. If Delta isn’t paying their ramp agents and CS agents the same pay as employees at UA, AA, WN, and if the working conditions and rules are so terrible why is it such a struggle for unions to get that all important 50% plus 1 support?
Alaska only has in-house ramp staff within the state of Alaska, everywhere else has been outsourced since 2005.
Nothing wrong with a union. Just so long as the product end user understands and accepts that every DIME that the union collects is going to passed on in the form of higher prices.
And causes that many of the base do not support.
If what you said were even remotely close to being the truth Delta’s nonunion employees would already be union right now. All you need to unionize in this country is 50% plus 1 to vote in favor. If any of these unions that are trying to get their claws into Delta Airlines had enough workers on their side they would have that vote today. The fact that no vote has been schedule for any nonunion work group tells me that perhaps Delta employees are happy.
There is no such thing as a perfect company especially when talking about a large corporation like an airline but Delta must be doing something right because every time these union pushes happen they always fail. If Sarah Nelson had 50% plus 1 she’d call for a vote to unionize right now. I fly Delta but I also fly United and sometimes American and what I hear from Delta FA’s is the AFA has failed to deliver on promises made to United flight attendants so why should the vast majority of Delta FA’s believe anything Sarah Nelson is trying to sell them especially when there seems to be a good mutual relationship between Delta and its FA’s right now.
Another W from DL, another typical, common L for these grifters posing as FA unions.
There are airlines where history/culture/current leadership certainly warrants unions. Delta has made it so long without for a reason (aside from certain groups like the pilots, dispatchers – but even with PAFCA they’ve got a pretty good relationship, worked together when the company needed it, gave productivity increases, and were given some gains when it came time to negotiate).
Contrast the other big airline at ATL (that’s done nothing but shrink)… Southwest. When they took over AirTran, that group’s ramp and CS workers (who had been non-union until the acquisition happened when they basically unionized to stop themselves getting screwed by TWU and IAM… and AirTran leadership didn’t even fight it) may have gotten a pay increase but they are paying union dues (DL isn’t), they had their part time shifts that offered same healthcare as full time eliminated (AirTran gave PT same benefits as FT, unions don’t like PT because it’s less dues), and had to start paying for parking. Delta does what AirTran used to…. gives employees parking, or a monthly MARTA pass (which can be used unlimited rides, more than just to/from work). That there is another $80 per month.
I respect that unions exist and at certain companies they are necessary. But respect to Delta for treating its employees right (if they’d treat customers right….).
“They get less vacation pay; they get less holidays. They don’t have the overtime rules that we have. So when you add it all up, these Delta workers are getting shortchanged — and they know that.” Ohhh, go work somewhere else if not happy.
https://flightattendant.pro/american-delta-united-hourly-pay-comparison/
Is this info accurate? (Just le googled)
Seriously Matthew? Junior employees working the same work as senior employees, wanting workplace equality with same pay? So much for ” paying your dues ” in your budding career in the airline. What’s next for these entitled new hires… Weekends? Give me a break, I worked for a major airline, and we new hires respected seniority rules throughout our early years, until some junior clerks started complaining about not having weekends, and unfortunately our union ok’d them to give them weekends too, which shortened available weekends for full timers
( So much for earning your seniority perks ) I’m sorry if you think otherwise, but I didn’t put 30 years in just to have a 10 year low seniority co-worker have my Sat/Sun off, when I did my time to have the right to bid it to enjoy it.
You are a personification of the union scourge on this country
paying ones dues? Total and utter BS!
Best employees should be paid the most, regardless of seniority
Isn’t there legislation in the USA against age discrimination? That sort of seniority rules went out of the window decades ago here in the UK and are all but prohibited by employment law. Similar provisions exist in the EU [although some countries may not take their enforcement as seriously as others do].
FWIW, United’s unionized FAs got 9ish% profit sharing this year, and the company was less profitable than DL
Kudo’s to Big D for doing the right thing. (And they have being doing the right thing for generations) If the Union has a better plan, present it. But sour grapes over a longstanding policy of employee recognition at Delta is not going to win the day for them.