Proportionate Love

Very interesting bit of Valentine’s Day news – for a change.  Delta Airlines announced they are giving their 90,000 workers a cumulative bonus of $1.6 billion dollars.  The details don’t indicate whether this is a one-time thing or part of an ongoing profit-sharing program.

Curious monkey that I am, I ran the math.  The video indicates every one of the 90,000 employees will get an additional two months worth of pay.  If you divide $1.6 billion dollars by 90,000 employees, it comes out to just shy of $18,000 each.  Sounds impressive!  Divide that by two, and you get a monthly salary of nearly $9000, or a salary of $108,000 year.

Managers and other specialized and upper-level administration types may get $108,000 a year (or more), but many employees get paid half that.  Or less.  So many employees will end up with a two-month salary bonus of $7000 or so.

Don’t get me wrong, it’s still an amazing thing to do and undoubtedly a huge help to many employees and their families.  But it would have been fascinating if they had just divided the $1.6 billion up equally among all their employees.  It would have meant that top earners – like CEO Ed Bastian, who pulls in tens of millions of dollars a year in salary – wouldn’t much notice the extra dollars (and could have added a PR bonus by not taking the bonus himself!).  But it would mean the lowest paid workers would get a bonus that could really make a huge difference in their lives (either for better or worse, to be sure).  I imagine when you earn $20 million or more a year not many bonuses make too big a difference in your immediate living situation.  But if you’re making $15/hour, wow.  A $17,000 windfall (before taxes, of course, which could be challenging to some unprepared for that hit) could be a real game changer.

Likely Bastian is stinging a bit from last year’s exchange with Bernie Sanders, who accused Bastian and Delta of enriching themselves at the expense of poorly paid lowest-tier employees.  If Bastian had really wanted to do so in style, an across the board, equal bonus for everyone would have really made a statement.

 

 

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