Even in the face of economic headwinds, Delta announced today its non-union workers worldwide will receive a 4% raise, marking the fourth year in a row of pre-emptive raises. This move serves a dual purpose of rewarding employees for their hard work and disincentivizing them from unionizing.

Delta Announces 4% Pay Raise For Non-Union Employees Worldwide

Delta Air Lines continues to laudably invest in its employees. Today, Delta revealed plans to award a 4% pay raise to eligible (non-unionized) employees around the world, marking the fourth straight year of compensation increases.

Following a $1.4 billion profit-sharing payout earlier this year, Delta is once again demonstrating that it views its people as the cornerstone of its success (and I think it’s fair to say you generally see that when you fly on Delta). In fact, since 2022, Delta has increased total compensation for its largest frontline workgroups by 25% or more–an impressive commitment that few airlines, or companies in any sector, can match.

Of course, there’s an ulterior motive…Delta also has the least unionized workforce among major airlines and these pay raises also dampen enthusiasm for union membership. Employees enjoy the best of both worlds: no union dues, but de facto union benefits driven, ironically, by Delta’s policy to dissuade its work groups from unionizing.

CEO Ed Bastian had first teased the raise back in January during a leadership conference, confident that strong travel demand had positioned Delta for its best financial year ever. Even as Delta has chucked its full-year profit forecast, it did not sacrifice what amounts to a generous cost-of-living increase for its employees. As Bastian put it, “For a century, Delta has acted on the belief that when we invest in our people first, they deliver excellence for our customers.”

“As we navigate these headwinds, we will continue to stay focused on protecting our people, our business, and our future, and strengthening Delta for the long term.”

Beyond base pay, Delta employees have access to other generous perks:

• Up to $100 monthly bonuses for operational goals
• Free financial coaching with a $1,000 emergency savings incentive
• 401(k) plans with up to 9% in company contributions
• Profit-sharing that in some years has equaled five weeks of extra pay

Delta’s compensation philosophy has set it apart not only from its airline peers but from virtually all U.S. employers. Over the last decade, Delta has paid out more than $10 billion in profit-sharing alone–more than any other U.S. airline or company.

Delta touts its reputation too, pointing out that it recently ranked #15 on Fortune’s 100 Best Companies to Work For list and was recognized as the #1 airline on the JUST Capital and CNBC “Just 100” list, which measures how well companies “support worker well-being and pay fair, living wages.”

CONCLUSION

While the industry faces pressures from rising costs, softening fares, and geopolitical turbulence, Delta is betting on a simple formula: invest in your people and they will deliver…and vote against unionization.

It’s a strategy that’s worked for 100 years and one that continues to set Delta apart…at least for now.

Tomorrow, we’ll take a look at how United Airlines flight attendants have fared so differently over the last four years.

image: Delta