Regional Elite to be dissolved into DGS
#1
Original Poster
Join Date: Apr 2006
Posts: 1,572
Regional Elite to be dissolved into DGS
Following up from the ironic other thread on the topic from earlier this week:
http://www.flyertalk.com/forum/delta...nal-elite.html
Delta today announced that Regional Elite is going away and that a majority of its staff will more than likely be dissolved into Delta's other handling company, Delta Global Services.
Thoughts? This is probably a huge blow to DL's workforce, and I imagine there's going to be a mass exodus as DGS employees do not get the same NRSA benefits that REAS employees did.
http://www.flyertalk.com/forum/delta...nal-elite.html
Delta today announced that Regional Elite is going away and that a majority of its staff will more than likely be dissolved into Delta's other handling company, Delta Global Services.
Thoughts? This is probably a huge blow to DL's workforce, and I imagine there's going to be a mass exodus as DGS employees do not get the same NRSA benefits that REAS employees did.
Last edited by iTanNicNic; Aug 7, 2012 at 3:51 pm Reason: Clarifying NRSA
#2
Join Date: Dec 2005
Location: Likely being followed...
Programs: DYKWIA Extraordinaire. TrollSlayer Mega Diamond. [insert esoteric sounding status level(s) here]
Posts: 5,240
Interesting to consider if there are net positive or negative financial ramifications for this action...
#4
Original Poster
Join Date: Apr 2006
Posts: 1,572
If I had to guess, Delta is going to use "well you can work for DGS!" in lieu of an appropriate severance. I hope that they at least are eligible for unemployment assistance.
#5
Join Date: Aug 2012
Posts: 10
I work ramp for REAS at MSP. Apologies if your experience at DTW was lacking, but lets face it, DTW sucks.
Current morale at MSP has hit an all time low. Word is that we will be DGS employees by November, which is disappointing, considering that DGS flight benefits are terrible.
I am wondering what happened, especially since we all received profit sharing checks a couple weeks ago for meeting our performance goals. Seemed like a lot of good things were happening with REAS winning bids on other stations.
Mainly I am angry about our flight benefits degrading. There are some full time employees here, I don't know what will happen to them if they start over at day 1 on the pay scale. All part time employees have day jobs and work at REAS only for flight benefits and we shall see if it is enough to keep people from quitting. Limited flight days, flying s3cr on DCI and no ZEDs is a joke.
Current morale at MSP has hit an all time low. Word is that we will be DGS employees by November, which is disappointing, considering that DGS flight benefits are terrible.
I am wondering what happened, especially since we all received profit sharing checks a couple weeks ago for meeting our performance goals. Seemed like a lot of good things were happening with REAS winning bids on other stations.
Mainly I am angry about our flight benefits degrading. There are some full time employees here, I don't know what will happen to them if they start over at day 1 on the pay scale. All part time employees have day jobs and work at REAS only for flight benefits and we shall see if it is enough to keep people from quitting. Limited flight days, flying s3cr on DCI and no ZEDs is a joke.
#6
Join Date: Dec 2006
Location: ORD
Programs: AA EXP,2MM, DL Gold,Starwood PLT
Posts: 3,876
That was a big part of the problem. REAS actually LOST most of the RFP's up for bid recently on stations. They won very few. Stated reason is that costs were too high..now i dont know how true that is, but it's what the company put out in a press release.
#7
Join Date: Aug 2012
Posts: 10
Yeah, I would have gladly not received some meager bonus if that would have kept us from not being absorbed in to DGS.
I have read that airlines do this occasionally to reduce legacy costs and those HR costs are what the VP has said in the past were the largest chuck of REAS's overhead. Quite a few people were topped out on the pay scale on day one that REAS was created. I am guessing this is why REAS is closing.
I have read that airlines do this occasionally to reduce legacy costs and those HR costs are what the VP has said in the past were the largest chuck of REAS's overhead. Quite a few people were topped out on the pay scale on day one that REAS was created. I am guessing this is why REAS is closing.
#8
Join Date: Jun 2007
Programs: National ES
Posts: 176
#9
Join Date: Mar 2011
Programs: DL ♦, Marriot Plt, NATL EE
Posts: 526
Yeah, I would have gladly not received some meager bonus if that would have kept us from not being absorbed in to DGS.
I have read that airlines do this occasionally to reduce legacy costs and those HR costs are what the VP has said in the past were the largest chuck of REAS's overhead. Quite a few people were topped out on the pay scale on day one that REAS was created. I am guessing this is why REAS is closing.
I have read that airlines do this occasionally to reduce legacy costs and those HR costs are what the VP has said in the past were the largest chuck of REAS's overhead. Quite a few people were topped out on the pay scale on day one that REAS was created. I am guessing this is why REAS is closing.
#10
Join Date: Jun 2012
Location: Michigan
Programs: DL PM
Posts: 854
#11
FlyerTalk Evangelist
Join Date: Nov 2004
Location: 45 North
Programs: DL DM MM, HH Diamond
Posts: 10,196
That part of the article stuck out to me as well. When I was in and out of AGS often (mostly last year) RE employees were there. Maybe they lost that contact recently?
#12
Join Date: Aug 2012
Posts: 10
Well, I suppose that article will be true in a few months, since there will be no REAS and thus no REAS employees in GA.
At MSP we start at 8.50/hr and top out at 10/hr after a few years. There are some employees from the old XJ days, but the most senior guy at MSP has 25 years under his belt and makes 14/hr, IIRC. Even those guys aren't getting rich. Maybe some of the problem is that we are always understaffed, so there is always a bit of overtime available and if those guys get it, REAS is paying out a bit more than what a normal employee would be getting to fill it.
I had lunch with the SVP once, he said that the main overhead for REAS was HR related: wages & benefits. REAS had one amazing thing going for them that I don't see other suppliers have: part-time flex scheduling + good flight benefits (depending how you look at it). Part time flex employees worked at most 36 hours per pay period and retained full flight benefits, but with none of the other benefits (health, retirement, pension, etc). Some schedules were 4 hour shifts, 4 days per week, maybe a 12 hour day and a 4 hour shift and other schedules were every other weekend.
Most of these people have day jobs else where and are just there to fly. Some of my coworkers were originally from overseas, made well over 100k annually and would use the benefits so they could take their family back home several times per year.
I believe that they should have axed full time employees all together and gone solely with the part time flex model. Corporate had 3 years to get their house in order, so I squarely place the blame on them.
At MSP we start at 8.50/hr and top out at 10/hr after a few years. There are some employees from the old XJ days, but the most senior guy at MSP has 25 years under his belt and makes 14/hr, IIRC. Even those guys aren't getting rich. Maybe some of the problem is that we are always understaffed, so there is always a bit of overtime available and if those guys get it, REAS is paying out a bit more than what a normal employee would be getting to fill it.
I had lunch with the SVP once, he said that the main overhead for REAS was HR related: wages & benefits. REAS had one amazing thing going for them that I don't see other suppliers have: part-time flex scheduling + good flight benefits (depending how you look at it). Part time flex employees worked at most 36 hours per pay period and retained full flight benefits, but with none of the other benefits (health, retirement, pension, etc). Some schedules were 4 hour shifts, 4 days per week, maybe a 12 hour day and a 4 hour shift and other schedules were every other weekend.
Most of these people have day jobs else where and are just there to fly. Some of my coworkers were originally from overseas, made well over 100k annually and would use the benefits so they could take their family back home several times per year.
I believe that they should have axed full time employees all together and gone solely with the part time flex model. Corporate had 3 years to get their house in order, so I squarely place the blame on them.
#13
Original Poster
Join Date: Apr 2006
Posts: 1,572
Of note, the Regional Elite website is now mostly dead. You get a landing page, and the only link available is to apply for a job there (which seems counterproductive?)
#15
Join Date: Jun 2012
Location: Michigan
Programs: DL PM
Posts: 854
I contacted the article's author and she said she noticed the same thing but "new numbers" she got from Delta showed differently. You are probably correct that they recently lost the contract.