When Doug Wolff was coming out of the Air Force and looking for a commercial pilot's job in 1979, he followed his father's advice. As an economic analyst at United Airlines, the elder Mr. Wolff knew the industry inside and out - and recommended working for Delta.

        “It was known for strong employee relations — employees were well-paid, well-treated,” says Mr. Wolff, now a 757/767 pilot. “Delta was the place to be.”

        But then the Anderson Township resident adds: “Somewhere along the line, things changed.”

Then: Delta employees, grateful for no layoffs, bought the airline its first Boeing 767 jet as a Christmas present in 1982. (>Enquirer file photo) | ZOOM |

        Indeed, for years the carrier had such industry-leading morale and customer service, it was known among its employees as “the Delta family.” Today, however, a potential pilot strike — along with a wave of unionization attempts and employee discontent — illustrate how dysfunctional that Delta family has become.

        Employees say the change came as management made profits a priority over people. Saying Delta management remains committed to good employee and customer relations, an airline spokeswoman said any differences at Delta have more to do with competitive and business pressures.

        “While it may seem the culture has changed, the whole industry has changed,” Delta's Cindi Kurczewski said. “The atmosphere in which we operate our business is significantly different these days.”

        The unions trying to organize Delta see that, too, and say that's why the employees need contracts. No new major union has succeeded at Delta since 1935, when the pilots organized mostly for safety reasons. Part of that is due to Delta being based in Atlanta, the heart of a union-averse South.

Now: Delta Air Lines pilots sit as a group to show support for their contract negotiations during the company's annual shareholders meeting in October in Cincinnati. (Associated Press photo) | ZOOM |

        But union officials say that Southern anti-union sentiment is changing. If all current efforts are successful, the company's union representation would jump from about one-tenth to two-thirds.

        Over the years, it would be other carriers that suffered crippling labor strikes. Delta workers were kept so happy with union-scale wages and working conditions that unions hardly even bothered to attempt to organize Delta workers.

        “There weren't many unions because there didn't have to be many unions,” Mr. Wolff said. “The company took care of its employees, employees took care of customers, and everybody made a lot of money.”

        Still, the years following deregulation in the late 1970s were shaky for all airlines. But where other carriers laid off a total of 40,000 workers, Delta didn't. And in a profoundly unprecedented move, more than three-quarters of Delta employees gave $30 million to buy the airline its first 767 to show their appreciation.

        That was in 1982 — and many people say that wouldn't happen today.

        Consider:

        • Delta could have its first-ever pilot strike by April 29 if the union contract isn't settled. The next contract talks are Wednesday. (The continuing Comair strike involves pilots that work for a newly acquired subsidiary of Delta.)

        • Delta's 110 flight instructors voted in October 1999 to join the Transport Workers Union.

        • The TWU conducted the largest union vote in Delta history last year. The 10,800 ramp and cargo workers twice voted against joining the union by a ratio of 4-to-1, but union officials say organization efforts are continuing. Another vote could take place in October.

        “Nobody's ever had an election like we had,” said Steve Roberts, TWU organizer.

        • The Association of Flight Attendants wants to unionize Delta's 20,000 flight attendants.

        • The TWU also is working to organize mechanics, ticket agents, reservationists and clerical workers — about another 23,000 workers in all.

        Some of those nonunion employees declined to be quoted on the record for this story, fearing harrassment and retribution from the company.
       

Ron Allen blamed
        Both company officials and employees have pointed their finger to one man for breaking up the family: Ronald W. Allen, Delta's former chief executive.

        Mr. Allen took the helm of Delta in August 1987, as the airline industry was still working out the kinks of deregulation and starting a period of brutal consolidation. In 1991, he shelled out $416 million and assumed about $166 million in debt to buy much of what remained of Pan American World Airways. With Pan Am's extensive European routes, Mr. Allen hoped the acquisition would propel Delta from a predominantly U.S. carrier to a major international player.

        It was a big risk, and it backfired. In fiscal 1991, Delta posted a $343 million net loss, which widened to more than $500 million in each of the next three years.

        It was only the second year Delta lost money since 1947.

        In the third year of the financial tailspin, Mr. Allen instituted a cost-cutting program many called unrealistic and Draconian. “Leadership 7.5” was aimed at pulling Delta back into profitability.

        The name alluded to the central goal of the crusade: To hack operating costs by almost 20 percent, or about $2 billion, to 7.5 cents per “available seat mile” from 9.26 cents at the time. (Cost per seat mile is a benchmark of airline efficiency and refers to the cost of flying one passenger seat one mile.)

        Employees were asked to take pay cuts; many were made part-time workers. The plan also called for layoffs of 15,000 of the airline's then-69,000 employees. It was Delta's first layoff — and to some it all represented a sort of familial betrayal that they would never forget or recover from.

        Mr. Allen reportedly acknowledged the tumbling morale in 1997 and ensuing plunge in customer service. “But so be it,” he said. To some Delta employees, however, those were fighting words.
       

Mr. Mullin vs. the unions
        Some employees started calling the unions.

        “They don't trust Delta management anymore,” TWU's Mr. Roberts said. “They feel lied to and are fed up.”

        Mr. Allen was fired in April 1997 — even though his efforts were financially successful. Delta posted record profits in 1995 after severe losses in the previous four years. But Delta's board — blaming him for driving a wedge between the company and its employees — declined to renew his contract.

        In a move that still burns many Delta employees, however, the board paid Mr. Allen $4.5 million in a lump-sum severance payment and $500,000 annual consulting fee for seven years. Government filings also show the then-55-year-old received supplemental pension benefits worth $765,000 annually and retiree life and medical insurance as though he'd retired at age 65.

        Employees continue to ask at annual meetings that the board be required to get shareholder approval before offering such so-called golden parachutes. The proxy resolution — along with a proposal that executive compensation be based on employee morale — has always been voted down.

        Later in 1997, Mr. Allen was replaced with Leo Mullin, a veteran of train, banking and utility companies. As the first Delta chief executive from outside the company, he was eyed with suspicion by some — but welcomed wholeheartedly by most.

        Mr. Mullin said in his first days at Delta that his primary goals would be to restore Delta's reputation for superior customer service and employee relations. By most measures, he has succeeded.

        Since then, Delta employees have gotten as raises, company-sponsored deals on computers, and expanded benefits. Many of the new perks are said to be aimed at quelling the unionization drives.

        Still, at Delta's 1999 annual meeting, Mr. Mullin told the Enquirer that his efforts were making some headway. He acknowledged the “Delta family” of old was likely gone forever — but that the new culture forming wasn't necessarily an inferior one.

        Ms. Kurczewski, Delta's spokeswoman, said that still holds true.

        “Has the culture changed? Absolutely,” she said. “It's a new millennium, a new time. It will never be what it was ... but at the core of most Delta people, that commitment and loyalty to customer service is still there.”

        Mr. Wolff, the 22-year veteran pilot, agreed.

        “I still love Delta Air Lines,” he said. “I just know it's not as much fun as it used to be.”
       

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