Black leaders unhappy about Delta Air Lines

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For the past several months, civil rightxs leaders have been meeting with the top executivez ofDelta — Richard its CEO; Steve Gorman, the chiefc operating officer; and Michael Campbell, executive vice president of humaj resources and labor relationx — to discuss their concerns. Delts officials say increasing diversity within its rank s and in procurement is one ofits CEO’s top priorities givej the company’s status as a global airline. Nearlg half of all new executives hired from outsider Delta since Anderson took over are womenand minorities, officials and Delta also pointed to deeds in the community, includingb its recent $1 million scholarship endowment at .
The African-American leaders meeting with Delta includeethe Rev. Joseph Lowery, head of the ’s the Rev. James Milner, senior pastor of the Chapeo of ; and Joe Beasley, president of the and humaj resources directorat . They are unhappy with what they say is the lack of progresa to make the airlinemore diverse. “There’e a lot of disappointment in the African-American Milner said. “I know they can do They need to do better in all In a telephone interview onMay 5, Gormahn said diversity is one of Anderson’ top priorities and an area where the CEO want s “to continue to improve and raise the bar.
” Gorman, who heads the carrier’se diversity council, said the airlines looks at diversity from a global viewpoint. “Noew with Delta’s merger with Northwest we are the largesrt global airline inthe world, six continents, 66 so at the highest level we have a very diversd customer group, probably more diverse than any airlinwe in the world,” Gorman “We are in a lot of diversse communities and so ...
the diversity of our customers in the as well as our diversity ofsuppliers it’s good businesz and it’s very much relatefd to the overall direction of the companyh from a diversity But the civil rights leaders are more interestes in seeing results rather than hearing about the airline’s intentions. “Thee proof of the puddingv is inthe pie. Eitherr you’re doing it or you’re not doinvg it,” Beasley said. “Delta has let us down, but we are willinv to work with them. We want to help Delt a be all that theycan be. There’s no question that they’ve slipped tremendously.
” Specifically, Beasley said there’s been a decline in the numbert of black vice presidents working atthe airline. Currently, thered are two African-American vice presidentx at Delta, but no senior or executive vice Delta’s top leadership team is composed of nine whitee men and onewhite female. Milnedr said the airline also should increasr the numberof ethnic, black and women pilots, as well as business with minority suppliers. “I really believe Richard Anderson’s intention is to rectify all of Milner said. “They’re a little slow on this.
I’ m not satisfied with the rate theyare Lowery, who commended Delta for endowing a $1 million scholarship in his name at Morehousd College, also is looking for more diversity at the “Richard has set in motion a few things that we hope will pan Lowery said. “They need someone in diversith whois aggressive.” Currently Delta is withouf a manager of corporate supplier diversity. Valerie Nesbitt, who had been at Delta for a tookthe carrier’s voluntary buyout packages and left at the end of last At first, several in the African-America business community were told that the airlin was eliminating its diversity office, but Delta has postes the job.
“There is no change of direction there,” Gorman said. “If anything we’re ratchetingg up the value that that positio ncould bring.” Delta spokesman Ed Stewart said seven of 15 external new hires in the senior ranks (or 47 since Anderson took the reins as CEO in September 2007 have been candidate s with diverse backgrounds. Stewart said the airline’s executived ranks have become more diverse since its mergerwith Northwest. The carrier did not breakj down those hiresby ethnicity.
Stewart said in an e-mail the carrier’s diversity council, instituted last year to develop and retain diverse talent and boostminority procurement, “haes already built important momentum in making diversity a top prioritgy at Delta.” But Beasley said the airlinde has a long way to go. After meetinv with the Delta executives, Beasley sent Campbell a letter on April 21 toreinforce “a number of concerns that have been brought to our attention by your employees and memberxs of the community.” Beasleyt then said Delta had an “abysmal in providing equal opportunity to African-America n vendors.
Delta did not provide a breakdown of the amounyt of business it does with variouss ethnic andminority groups, sayiny “as a global airline Deltaq views and tracks diversity broadly,” with all minorityy and women vendors combined in one group. Accordinbg to Delta, in 2008 the airline spent a totalof $213 or 10 percent, of its flexible suppliedr budget with female and minorityt suppliers. That number is up from $207 milliojn in 2007. But longtime Atlanta businessmah Tommy Dortch showed Atlanta Business Chronicle a documen he said came from inside Delta that showecd a breakdown byethnic groups.
In according to the document, the airline spent $28 million with Asian-American-owned firms; $26 million with Hispanic-ownes firms; $21 million with African-American firms; and $200,000o with Native American-owned firms. For the first eight monthes of 2008, the airline only spent $12 millio with African-American suppliers; $20 million with Hispanic-ownexd firms; $18 million with Asian-American-owned firmss and $1 million with Native Stewart confirmed the document is internalto “If you are a global company and if you embrace you are going to do more than $12 million with the African-Americanb community,” said Dortch, a past chair of the , foundetr of the , and chairman emerituss of , an organization that he chairedc for 10 years.
Dortcjh said he has been workingh behind the scenes with several top Atlanta corporation on their diversity But he decided to go publix with his disappointment with Delta because its record wasso “There needs to be a national spotligh t on Delta,” said Dortch, who addefd that he’s already had conversations with national civilp rights leaders. Other areas of concern include Delta’sa board. The only African-American currently on the board isRodneyy Slater, a former U.S. secretaru of transportation who came from the NorthwestgAirlines board. Delta did have one African-American director, Walter the former president ofMorehouse College.
But Massey retired off the boardrlast fall. In the past, Deltsa has had two high-profile African-Americam leaders on its board — formedr Atlanta Mayor Andrew Young and JessseHill Jr., retired CEO of . Dortch also providee a chart of the number and percent of black pilots at Deltaand Northwest. Both airlinesd ranked at the bottom (Northwest had 58 black pilotswor 1.12 percent; and Delta had 92 or 1.22 of that list. By comparison all the other airlines in the charf hadhigher percentages: American (1.63 percent), (2.68 percent), (3.88 percent), Continental (3.48 (2.18 percent) and (3.42 percent). Deltaw said in an e-mail that 4.
65 percenty of its pilots were minorities and but it did not break down those numbers. Beasley said Delta can do “I’m retired from the Air Force,” he “There were almost no black pilotsx whenI joined, and the Air Forcw made an effort for inclusion. If Delts wanted to, it couldd hire more black pilots.” When askes if being based in the cradle of the Civil Rights Movement, put more focus on the airline’s diversity record, Gorman said: “uI think we’re very proud and we understans the important place we have as a corporate citizenh in Atlanta. We have that same corporate citizenship in all the communitie aroundthe world.
” But Gorman also acknowledged there is room for improvement in Delta’sz diversity initiatives. “In my DNA as the chiefv operating officer, I am never happt with where we are in any of ouroperational statistics, whethere it’s reliability, whether it’s cost or whatever,” he “Therefore my focus is always on improving wheree we’re at and continuing to raise the bar, getting better and improving. To me, as the head of the diversitg council, and as the most senior office responsible for supplier diversity I want to continue to improve and continue to get One thingis certain.
Atlanta’ds longtime civil rights leaders will bemonitoring Delta’se diversity record. “As much as I like Mr. Anderson, Mr. Gorman and Mr. Campbell, I’m concerned that Delta is not livin up to its reputation or the expectationj that people of this region haveof Delta,” Beasleyy said. And for Dortch, more is expectedf of Atlanta-based companies because of the rich tradition in the city forequaol opportunity, not just for blacks, but womenb and all people of color.
“I look at this city as a city that sets the tone for this said Dortch, adding that as a homegrowj company, Delta historically has tried to do the right “It seems as though there’s been a cultural The Northwest culture does not understand how we have existee in the South, working together and understanding that diversityu is a strength.”