Delta Air Lines CEO Ed Bastian has today announced that employees will be getting a 5% pay raise. Well, all non-union employees…
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Non-union Delta employees get pay bump
As of June 1, 2024, Delta is offering a 5% base pay increase for ground and flight attendant employees, at all steps of the pay scale. Furthermore, Delta is instituting a $19 minimum wage across the company. This is Delta’s third pay increase in the past couple of years — we saw a 5% pay increase in April 2023, and a 4% pay increase in May 2022.
This latest pay bump amounts to a $500 million annual investment in employees. This arrangement includes all employees worldwide, other than those covered by an industry or government requirement, or a collective bargaining agreement. For example, pilots are the biggest group at Delta that are unionized, and they ratified a lucrative contract in March 2023, with massive pay raises.
Delta also does more profit sharing than any other US airline, and back in February 2024, Delta paid $1.4 billion in bonuses. That amounts to about 10.4% per eligible employee (and this includes union employees too), which is more than the profit sharing pool of all competitors combined.
Here’s how Bastian described these latest pay increases in a memo to employees:
“Delta’s leading position comes thanks to a simple concept that dates back nearly a century – invest in our people first, and they will deliver great service and experiences for our customers. That’s exactly what you do, and it always sets us apart.”
Delta does a good job keeping employees non-unionized
Delta is unique among US airlines when it comes unionization. Delta has the fewest unionized workgroups of any major US airline. While there have been efforts for many years to get more groups to unionize, in the end a majority always voted against it.
Delta does a good job finding a balance, by treating employees well, aligning them with the company’s mission, incentivizing them with big profit sharing, and providing plenty of proactive pay raises. Ultimately unions at other airlines don’t have a lot to show when it comes to pay negotiation compared to Delta.
As long as a majority of non-unionized Delta employees continue to be happy with that arrangement, I think Delta should be commended for being able to maintain such good relations. These kinds of pay raises, along with being the first airline in the US to start paying flight attendants during boarding, go a long way to earning the trust of employees.
Bottom line
Delta employees are getting a pay raise of 5% as of June 2024. This follows a 5% pay increase in 2023, a 4% pay increase in 2022, and a recent 10.4% profit sharing payout, worth $1.4 billion. Congrats to Delta employees on their upcoming pay bumps!
What do you make of Delta’s pay raise for non-union employees?
$500 million is a minor cost compared to what unions would cost them in even more exorbitant compensation as well as inefficiency due to unreasonable work rules and intransigent union employee attitudes. And that doesn't assume any of that attitude doesn't make it's way into the way customers are treated. Keep the unions at bay and Delta - any company - will be better off.
If not for the other Airline Unions, do you think that Delta would be offering such a significant pay increase? Delta employees are enjoying the benefits of being unionized without having to pay for their own Union.
@Thomas - Not sure I can agree when Delta personnel are doing BETTER than their unionized counterparts at other US airlines. Arguably the unions are riding Delta's coattails...
There are two unionized groups at Delta, the pilots and the dispatchers. While the pilots don't get this raise, the dispatchers will due to the collective bargaining agreement that has a "me too" clause in it.
I was on the Delta DFW Business Advisory group ... execs flew in a couple times a year just to listen ... hotel at DFW, ATL group came in laughing, down the hall they'd run into a retired Delta exec headed to his meeting: AA had hired him to do seminars for their top managers: 'HOW TO BE MORE LIKE DELTA!'
How much did Tim Dunn get?
ZERO because he isn't a Delta employee
Delta along with its subsidiaries should ALL get this raise.
They help Delta look good as well, so it's only fair.
I'd love to see Ed Bastian live on $19/hour.
$19/hr is more than a lot of teachers make in many cities across the country. I don't think anyone in a major city is only making $19/hr at Delta.
Ed Bastian will live comfortably on $0.19/hour.
Good example of the difference between wealth and income and why we should tax wealth in addition to income.
No way should we tax wealth. That would be bottomless pit for the big spending vote buyers in Washington. If they ever figure out to get their hands on that bucket of money, kiss your freedom goodbye, watch your retirement accounts start to stagnate if not dwindle, etc. On that day every last one of us should figure out how to legally park as much of our money off-shore as possible to keep a certain couple of comrade senators our of financial accounts.
This falls behind what other unionized carriers offer in their contracts. After SWA signed a contact with back pay for exceeding what Delta offered, it wouldn’t surprise me if they become union members soon.
No it doesn't Delta ramp is making the same dollar amount as union ramp workers at United, Delta CS is not making the same hourly wage as union workers at United, Delta cabin service is making oh wait a minute United got rid of all their cabin service workers, Delta load planners are making the same wage as unionized United load planners. Delta Flight attendants starting pay is already higher than United Flight attendants and...
No it doesn't Delta ramp is making the same dollar amount as union ramp workers at United, Delta CS is not making the same hourly wage as union workers at United, Delta cabin service is making oh wait a minute United got rid of all their cabin service workers, Delta load planners are making the same wage as unionized United load planners. Delta Flight attendants starting pay is already higher than United Flight attendants and American flight attendants now that wage goes even higher. I saw on social media today Delta FA's starting pay will go from $33.81 per hour to 35.50 per hour, I believe United FA's starting pay is $29.31 an hour. While top scale FA's at Delta wlll now top out at $79 dollars an hour compared to top scale at United which is somewhere around $64 an hour. It appears as though Delta employees are getting all the money while American and United employees are stuck in endless negotiations. While there is now no difference in pay for ground employees at Delta vs United, Delta FA's continue to pull away from United and American in terms of pay scale;
I don't have a dog or pony in this show but it seems to me like Delta FA's are better off than their unionize brothers and sisters at American and United.
“ Ultimately unions at other airlines don’t have a lot to show when it comes to pay negotiation compared to Delta.”
The primary purpose of a union is to allow workers to negotiate for a higher pay, better benefits and improve working conditions. If a company if doing that without all these proactively, then there ja no need for a union. But how many companies in the world are proactive like Delta is and takes...
“ Ultimately unions at other airlines don’t have a lot to show when it comes to pay negotiation compared to Delta.”
The primary purpose of a union is to allow workers to negotiate for a higher pay, better benefits and improve working conditions. If a company if doing that without all these proactively, then there ja no need for a union. But how many companies in the world are proactive like Delta is and takes care of its employees? Not just other airlines, but other companies across industries can learn from Delta
Way to go Delta!
I can't wait for the unions to take credit for this!
Says the unions hatter
Great for airlines recognizing their employees.
Now, maybe you can help convince the public that the FAA needs to do the same for their underpaid and overworked controllers, many of whom make less hourly than F.As.
Low wage offers leads to low wage talent.
If a company is not savage, non-union is better. If a company is savage, then the inefficiencies that a union brings may be worthwhile.
Well, that's...two sentences with one perspective.