Reputation Gurus

A lot has been written in both MSM and online about Delta Air Lines’ emergence from bankruptcy, and the company has earned a new-found respect from industry insiders for using bankruptcy protection to completely overhaul its operations. I saw one comment about Delta being the “one who did bankruptcy right,” compared to its competitors and others who have sought Chapter 11 protection in the US.

The company has also gotten a lot of kudos for how it treated its employees during the time that it was in Chapter 11, as well as what it has done for employees as it emerged from protection at the end of April. Delta’s CEO Jerry Grinstein made a noble announcement that he would forego any additional compensation or bonus that he earned by navigating the company through this arduous restructuring. Instead, he has asked Delta to give that money to financially strapped employees as well as to a scholarship fund for Delta employees’ children.

As someone who worked with Delta just as they were going into Chapter 11 protection, I know that the company did everything right when it came to employee communications — before, during and now after the bankruptcy. They provided complete transparency with everything that was happening, including when they asked employees for paycuts and furloughs. They had a robust intranet for disseminating information, and they even held regular town-hall meetings to allow employees to vent their frustrations and fears. After they emerged from bankruptcy, the company announced modest raises for everyone — a true sign that they appreciate what their employees did during rougher times.

Delta is on its path to recovery, and hopefully has a loyal employee base to rely upon as it tries to grow internationally — it needs its employees now more than ever. Any company wishing to engender positive employee relations would be smart to talk with Delta’s employee communications team.