Bombardier Boeing 757-200 plane from Delta Air Lines arriving, in final approach for landing at New York’s JFK John F. Kennedy International Airport.
Nicolas Economou | NurPhoto | Getty Images
Delta Air Lines, which received billions of dollars in federal aid last year, is paying bonuses to managers ranging from a few thousand dollars to more than $ 100,000 to offset wage cuts at the start of the pandemic last year.
Frontline employees, such as flight attendants, pilots and others in non-managerial positions, are not receiving bonuses.
Last year, Delta cut managers’ pay and also reduced the working hours of thousands of workers by 25% to help resist the pandemic’s drop in travel demand, a policy that has been criticized by some lawmakers. The Atlanta-based airline avoided involuntary leave or job cuts, thanks in part to 18,000 employees, about 20% of Delta’s pre-pandemic workforce, who accepted acquisitions and early retirement packages last year. The carrier posted a record loss of $ 12.4 billion in 2020.
“While all Delta employees have been affected by the worst year in our history, following a comprehensive pay review at all levels of our organization below the level of CEO, we have identified levels that have been disproportionately impacted as a result of 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 CARES Act in March that prohibited airlines from firing employees. The carrier expects to receive $ 2.9 billion this quarter as part of an extension to the program that Congress passed late last year, Delta said in a filing last month.
The pilots’ union criticized the measure, which was first reported on Sunday by the travel blog View from the Wing, saying it went against the spirit of the CARES Act, support for the federal payroll that airlines received last year in exchange of not cutting workers unintentionally.
“While we are confident that Delta will recover quickly as soon as the country overcomes the pandemic, paying special bonuses to management while the airline is still burning money is premature and inappropriate,” said Chris Riggins, spokesman for the Association of Airline pilots, in a statement. “We also believe that the payment of limited bonuses to management is inconsistent with the spirit of the CARES Act. This was an unfortunate and short-sighted decision.”
Delta says it is following the terms of the CARES Act, which imposes limits on executive compensation. Managers’ compensation may vary depending on the company’s performance. Delta says it has continued to pay rewards to the front line and other employees for reaching operational goals, but those amounts are less than bonuses.
The carrier and its American competitors are on their way to receive additional federal payroll assistance.
On Friday, the House approved a $ 1.9 billion coronavirus relief package that includes a third round of federal payroll support for airlines. If the bill passes the Senate, American airlines will receive $ 14 billion in exchange for keeping workers paid until September 30. American airlines have already received $ 40 billion in payroll support in two other coronavirus aid packages.