Delta to Cut Employee Pay 10%

In an effort avoid bankruptcy, Delta Airlines announced on Tuesday that it will cut pay by 10% for all employees. Executives are also subject to the pay cut, in fact, Delta’s CEO will not be paid the rest of the year.

Delta pilots agreed to allow Delta to contract with retired pilots if needed. Their agreement was in exchange for Delta’s assurance that they will not cancel the pension plans of their pilots before February 1, regardless of the company’s bankruptcy status. Delta is also going to increase the amount it pays into employee shared health costs while offering two voluntary exit packages to employees. Chief Executive Gerald Grinstein is seeking the cooperation of all employees. In a memo to employees, Grinstein stated ``We have a small window of opportunity available to us to avoid Chapter 11 that some other carriers do not have. It is in everyone's best interest that we protect Delta's future by taking these steps together now.''