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Delta gives 14.5% pay bump for thousands of Twin Cities workers

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Thousands of Twin Cities Delta employees will get a 14.5 percent raise, the airline giant announced on Wednesday.

The company said it will pump more money into employees' base pay, and increase its 401(k) contributions after a period of bumper profits, but will scale back its profit-sharing plans for employees.

The Star Tribune reports this will see the pay of nearly 1,800 flight attendants in Minnesota and 3,100 ground crew workers at Minneapolis-St. Paul International Airport rise by double digits.

"When combined with the April (annual pay) increases, pay rates for most employees will be up 18 percent or more in 2015, providing you with record pay raises in a year of record," Delta CEO Richard Anderson and President Ed Bastian said in a memo to employees. "Few companies can match that."

All of Delta's ground and flight attendant workers around the world will benefit from the change in conditions, which follows a year in which the airline made $4.5 billion pre-tax profit, as well as having reduced debt by $10 billion and returned $3 billion to shareholders in the past two years.

Meanwhile the company will increase its dollar-for-dollar match for employees enrolled in its 401(k) plan from 5 percent contributions to 6 percent.

On the flip side however, the company is changing its profit-sharing formula. Currently, employees share a 10 percent slice of profits, and 20 percent if the company exceeds $2.5 billion.

Under the new plan, which will go live in 2017, the airline will pay 10 percent up until the point the company matches the previous year's profits, and 20 percent thereafter.

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