Delta Air Lines will give pay raises to most of its approximately 80,000 workers next year after record quarterly profits earlier this year.
The airline reports plans to give customer-facing employees raises of up to 3 percent effective April 1, following previous rounds of pay increases. Other employees will recieve raises of varying amounts from a 3 percent merit pool, based on performance and other factors.
Unionized employees recieve raises on different terms according to their contracts.
An increase in Delta’s health care costs in 2014 because of health care reform and health care inflation will affect the pay these workers actually receive. Delta plans to absorb approximately 85 percent of the $100 million in additional costs. The remaining amount will be paid by plan participants through premium increases ranging from $3 to $22 per month, according to a memo from Delta Chief Executive Richard Anderson.
Delta Airlines also plans to restore a benefit for employees with at least 25 years of continuous service: a fifth week of vacation. This benefit had been eliminated in 2005.
Both companies are losing billions in industries dogged by overcapacity, as new competitors with lower costs flex their muscles and grab market share.
The pamphlet was short on specifics, but it said employees will also receive cash lump sums, profit-sharing and company contributions to a new retirement savings plan.
The bankruptcy judge could wind up deciding on the cuts.
Northwest plans to charge some of its workers who smoke an additional fee for health insurance.