Jim Haighs Letter to Judge Hardin

 

Judge Adlai S. Hardin, Jr.

United States Bankruptcy Court

300Quarropas Street

White Plains, New York 10601

Facsimile: (914) 761-0493

 

Your Honor,

 

I am writing this letter to provide insight from a trustee of DP3 who voted AGAINST the stipulation that is currently under your jurisdiction between Delta Airlines and DP3.  I was selected as one of the original trustees of DP3 and have attended every meeting of the Board over a three year period.  I have spent countless hours answering questions from our members and I care deeply about preserving the pensions earned by all of our members.  The matter before you will cause tremendous permanent damage to ALL of the retired pilots of Delta Airlines.  The stipulation is flawed in every respect and does not reflect the mission statement of DP3 and is unworthy of the respect that the retired pilots have in DP3.  As a participant in the ratification process, I am embarrassed how irresponsibly we have acted on behalf of our constituency.

 

During the last week of May the trustees of DP3 were informed that the Delta lawyers wanted to remove all objections to LOA 51 and this would be a good time to discuss the non-qualified payments that had been accruing since Delta filed for bankruptcy.  This signaled the long awaited beginning of negotiations.  At a meeting in Atlanta on Tuesday afternoon May 23rd we discussed some of the possible negotiating options and departed for our homes that evening.  At eight oclock the next morning I received a call from the chairman of DP3 stating that we had a deal with Delta and he needed my vote on the phone to ratify the agreement.  When I asked what the deal was and when would we be meeting to discuss its contents, he stated that he was calling everyone personally to brief them and to get their vote.  I indicated that I could not vote for any agreement that I have not seen or had a chance to digest.  Later that day, I was informed that we would get the language of the stipulation the next afternoon and then we would vote.  I received the email with the stipulation attached at 2:30 PM and at 3:00PM we had a conference call to discuss and vote on the most important document that DP3 had in its three years of existence.

 

It was during this conference call that we were told by our attorney that the stipulation was NOT negotiable and we had to approve it as written.  We were also told by our attorney that if we didnt sign the stipulation that Delta would not be able to continue to operate because all the pilots who were eligible to retire would take lump sums and leave Delta unable to staff the Airline.  We were also told that we must vote today because, if we didnt, Deltas lawyers would have to work over Memorial Day weekend preparing briefs to oppose our opposition to LOA 51.  It is clear to me now that an agreement had been negotiated well before the meeting of the 23rd and the attorney for DP3 was given a very lucrative incentive to sell the deal to the trustees.  The compensation in the stipulation was not discussed with the trustees and when questioned about it our attorney indicated that he was surprised to see that piece in the agreement.  It was not clear until days later that the Balance Plan would also be a part of the attorneys compensation.

 

The very short time to contest the stipulation was inappropriate.  DP3 has not been able to get a list of the retirees from Delta and our membership has grown only by word of mouth.  How is it possible for the many retirees to disagree with the stipulation when we dont have their contact information?  DP3s letter of explanation of the stipulation did not go out to our members until the 7th of June and gave our constituents less than two weeks to object to a very complex document.

 

Your Honor, it is my belief that the stipulation was created by a flawed process that has not served our membership. The agreement was reached by coercion and hollow threats and effectively muted the voice of the retired pilots in fighting the termination of the Defined Benefit Plan. Most of the retirees worked for over thirty years to EARN their pensions, and now they have been singled out as the only employee group to lose their retirement income.  Many of the retired pilots have already felt the sting of losing their non-qualified pensions, and now they will receive a double hit by losing their qualified pensions.

 

If there can be anything fair about bankruptcy, please allow the retired pilots a voice in the termination of their EARNED retirement benefits.  Whether it is DP3, DP2, or some unnamed new group, they MUST be given an opportunity to be heard.

 

Sincerely Yours,

 

James D. Haigh