Delta Air Lines’ decision to raise its starting minimum wage to $19 an hour and increase pay by 5% for all eligible employees worldwide reflects the company’s commitment to compensation leadership in the industry. This marks Delta’s 12th wage increase in the last 15 years, resulting in a substantial average increase of 85% in base pay during that time period. The pay raise will become effective on June 1.
Delta’s move aligns with its profit-sharing compensation strategy, which involves sharing a portion of the company’s annual earnings with employees. This approach aims to motivate employees by directly linking their performance to their rewards. Delta’s profit-sharing payment in February amounted to 10.4% of eligible earnings, totaling $11 billion since the strategy’s inception in 2007.
While profit-sharing is not unique to Delta and is offered by other airlines like Southwest, United, and American, Delta’s payout percentage appears to be industry-leading. However, despite these efforts, Delta is currently facing a union-organizing campaign among its flight attendants. The Association of Flight Attendant’s Delta campaign highlights the airline’s significant earnings but suggests that its flight attendants are not earning more than their counterparts at other airlines.
It’s worth noting that while Delta’s pilots are unionized, most of its workforce remains nonunionized. Employers should be cautious about increasing pay or benefits during union-organizing campaigns, as such actions could be perceived as attempts to discourage labor activity.
Overall, Delta’s decision reflects its ongoing commitment to fair compensation practices and employee well-being, positioning itself as a leader in the airline industry.