Delta Air Lines is giving pay raises to most of its nearly 80,000 employees next year after reporting record quarterly profits earlier this year.
Atlanta-based Delta said it will give customer-facing employees raises of up to 3 percent effective April 1, following previous rounds of pay increases. Meanwhile, other employees will get raises of varying amounts from a 3 percent merit pool, based on performance and other factors.
Unionized employees — at Delta, primarily pilots — get raises on different terms according to their contracts.
But one key factor will cut into employees’ take-home pay: An increase next year in Delta’s health care costs because of health care reform and health care inflation. Delta said it will absorb about 85 percent of the $100 million in additional costs. The rest will be borne by plan participants through premium increases ranging from $3 to $22 per month in account-based plans, along with other changes, according to a memo from Delta Chief Executive Richard Anderson.
The company said it will restore a benefit for employees with at least 25 years of continuous service: a fifth week of vacation. The benefit had been eliminated in 2005, the year the airline filed for Chapter 11 bankruptcy protection before emerging in 2007 and following a bumpy road to recovery.