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Delta pay: Airline wisely rewards workers for their sacrifice
This is an archived article that was published on sltrib.com in 2007, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

Many companies pay lip service to the idea that rank-and-file employees should share the wealth when the firm thrives. Often that performance-based philosophy is reflected in executive compensation but not on the shop floor.

That's why Delta Air Lines made news the other day with its compensation package that will lift pay and benefits for front-line workers by about $1 billion. Employees throughout the company have made major wage and benefit concessions over the past couple of years to help Delta restructure and prepare to emerge from bankruptcy in May. Now that the airline is moving toward profitability, it is going to share that wealth with the workers who helped to make that possible.

That makes sense. Share the pain, share the gain. We can't think of a better way to show workers that their sacrifices for the company were worthwhile. As Jean-Luc Picard would say, make it so.

Because Delta operates a hub at Salt Lake City International Airport that employs 3,300 eligible workers, the higher pay and benefits will pump an estimated $42 million into the Utah economy in May.

The package includes a combination of common stock in the company, a lump-sum cash payment, retirement contributions to a 401(k) plan, incentive pay, a base-pay increase and profit-sharing. The value to each employee depends upon individual earnings and other factors.

As it is fully implemented over the next 14 months, the plan could amount to $67 million for Utah workers, or about $20,000 per eligible employee.

That's welcome news not only because of the obvious impact on local trade and taxes but because Utahns who don't work for Delta have worried about the company's fortunes and what would happen if the airline were acquired or forced to abandon its hub here, or both.

It didn't help when Delta had to forgo renewing its naming contract on Larry H. Miller's downtown arena that houses the Utah Jazz. That had been an important symbol of the company's position in the community.

But no one has made more sacrifices to turn Delta's fortunes around than its employees. Now that the effort appears to be succeeding, it is good that they will share the rewards.

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