Delta to Cut Wages 10 Percent

Delta Airlines Inc., the third airline in the U.S., stated on Tuesday that it will cut wages by 10 percent starting January 1 for its nonunion employees. The chief executive of Delta will also go unpaid for the remainder of the year. The airline reported that it will be forced to file for bankruptcy soon if more cuts are not enforced. As a result of the pay cuts being made, the airline is in need of $1 billion in annual cost savings from its 7,400 pilots who are part of its only principal unionized group. To save costs, Delta announced earlier this month that it will also cut up to 7,000 employees over the next year and a half. Consequently, if staffing levels fall too low, Delta pilots have signed an agreement allowing the airline to use retired pilots. Delta is currently taking these cost-saving measures in an attempt to save $5 billion a year by 2006.