Delta grants bonuses to managers whose pandemics have been reduced

Delta Air Lines, which received billions of dollars in federal aid last year, pays managers bonuses of several thousand dollars to more than $ 100,000 to offset pay cuts at the start of last year’s pandemic.

Front-line workers, such as flight attendants, pilots and others in non-managerial positions, do not receive bonuses.

Last year, Delta cut managers ‘salaries and also cut thousands of workers’ hours by 25 percent to help withstand the decline in the pandemic in travel demand, a policy that has been criticized by some lawmakers. The Atlanta airline avoided unintentional courses or job cuts, in part because of its 18,000 employees, about 20 percent of Delta’s pre-pandemic workforce, which accepted acquisitions and early retirement packages last year. The carrier recorded a record loss of $ 12.4 billion in 2020.

“While all people in the Delta have been affected by the worst year in our history, following a comprehensive salary review at all levels of our organization below the executive officer level, we have identified levels that have been disproportionately affected as following last year’s events and we made a time adjustment payment, “Delta said in a statement.

Delta received $ 5.6 billion in federal aid last year as part of a $ 25 billion program passed as part of the March CARES Act, which banned airlines from downsizing employees. The carrier expects to receive $ 2.9 billion this quarter as part of an extension of that program that Congress adopted late last year, Delta said in a filing last month.

The pilots’ union criticized the move, which was first reported on Sunday by View on the Wing travel blog, saying it was against the spirit of the CARES Act, federal wage support received by airlines last year in exchange for involuntary layoffs.

“While we are confident that Delta will return quickly once the country goes through a pandemic, the payment of special bonuses to management while the airline is still burning cash is premature and inadequate,” said Chris Riggins, a spokesman for the Pilots Association. Airline, in a statement. “We also believe that the payment of bonuses limited to management is incompatible with the spirit of the CARES law. This was an unfortunate and short-sighted decision.”

Delta says it complies with the terms of the CARES Act, which has set limits on the compensation of top executives. Managers’ compensation may vary depending on the company’s performance. Delta says it continued to pay rewards to first employees and other employees for achieving operational goals, but these amounts are less than bonuses.

The carrier and its US competitors are well on their way to receiving additional federal payroll assistance.

On Friday, the House adopted a $ 1.9 billion coronavirus aid package, which includes a third round of federal payroll support. If the bill passes the Senate, US airlines would receive $ 14 billion in exchange for keeping employees paid until September 30. US airlines have already received $ 40 billion in support of pay in two other coronavirus aid packages.