Yesterday I shared a leaked Delta memo showing that the airline would be giving 4% raises to flight attendants and ground employees. In addition the airline said employees could expect bigger bonuses. That’s big news this Labor Day weekend.
Naturally the airline’s union employees, such as their pilots, don’t participate in the pay increase. Their wages are determined by collective bargaining.
The authenticity of the memo was being called into question in some quarters because another (obviously fake) memo was circulating earlier in the week promising 9% raises.
The fact that there was a bogus memo out there made me begin to question what seemed to be the legitimate one. However several employee sources confirmed that the leaked pay increase memo was real, and now official Delta sources have as well.
Here’s the memo:
This is big news because other flight attendants are going to look to this increase and demand more from their own U.S. airlines. Southwest, for instance, is offering union flight attendants a 3% raise. American’s mechanics, who have been unable to come to terms on a new contract, may become more intransigent.
It’s also a demonstration to Delta’s employees that they do better without a union, or at least that a union isn’t likely to drive better pay. The airline is paying them more not because of a threat of a strike but because employees are contributing to the airline’s profitability. Union work rules, and union expenses, risk dragging down employee compensation.