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Saturday, October 26, 2002

Delta date set for voluntary leave



By James Pilcher
The Cincinnati Enquirer

Delta Air Lines has set the deadlines for employees wishing to sign up for voluntary severances, leaves or early retirement as the airline looks to cut 8,000 jobs by the end of the year.

But the airline, which employs nearly 6,000 locally at its second-largest hub at the Cincinnati/Northern Kentucky International Airport, has also told workers that it doesn't expect voluntary programs to cover the necessary cuts, meaning layoffs will probably be necessary.

"We do not expect to reach our full need through voluntary options, and do expect furloughs will result," Delta spokeswoman Kristi Tucker said Friday.

Delta used many of the same programs to cut about 10,000 jobs last year, shortly after the Sept. 11 attacks, although the new round of voluntary choices is not quite as generous as last year's. The Atlanta-based airline has said the current round of cuts is necessary due to the continued lack of demand and an imminent cut in capacity at the nation's No. 3 carrier.

Under the new program, workers wishing to take the voluntary severance program can sign up between Oct. 28-Nov. 15; workers who are eligible for the voluntary retirement program can sign up between Nov. 18-Dec. 6; and those wishing to take a voluntary leave can enroll Oct. 28-Dec. 6.

Delta, which lost $326 million in the third quarter alone, hasn't said how much it expects to save with the new round of cuts, but the last round of cuts (which included 1,400 pilot layoffs) saved the company between $600 million and $700 million so far. Industry analysts have said the new reduction could save the company $500 million to $600 million.

The voluntary programs are similar to last year's, although those taking voluntary severance will not be granted full travel benefits, instead being asked to pay a small fee every time they fly.

Ms. Tucker said that more than 8,000 workers meet the eligibility requirements for early retirement (at least 52 years old and at least 10 years with Delta), but that the company has not made any projections on how many would actually sign up.

When workers would actually exit the company through either voluntary leaves, severances or retirements would be determined on a case-by-case basis, based upon the need of the particular department.

If layoffs were necessary, they would be by seniority in ground-level jobs, and by performance and need in the administrative ranks.

E-mail jpilcher@enquirer.com



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