Delta Air Lines Avoids Delta Variant Wording, Charges Unvaccinated Employees More For Health Care

A controversial item companies are navigating is how to manage whether they can or will require employees to get vaccinated against COVID-19. One airline is giving its employees an ultimatum that could affect their bank accounts if they are not vaccinated.

What Happened: Delta Air Lines Inc (NYSE: DAL) CEO Ed Bastian sent a companywide memo to employees that outlined how the company is handling the COVID-19 pandemic and the safety of its employees.

“Since the earliest days of the pandemic, our number one priority has always been to protect our people and customers,” Bastian said.

The CEO said that Delta Air Lines passed the milestone of 75% of employees being vaccinated, which puts the company closer to getting back to “running the best airline on the planet.”

One notable item in the memo has circulated on social media, with the CEO not referring to the delta variant of COVID-19.

“Over the past few weeks, the fight has changed with the rise of the B.1.617.2 variant – a very aggressive form of the virus.”

It shouldn’t come as a huge surprise that Delta is shying away from its company name being associated with such a deadly virus

Constellation Brands (NYSE: STZ) faced a similar hurdle when many referred to COVID-19 as the coronavirus.

This caused some havoc for the company’s Corona beverage line and its marketing efforts. Ultimately, sales of Corona saw no impact from the name association.

Related Link: TSA Reports Post Pandemic Record Screenings: 3 Airlines Stocks To Watch

What’s Next: Delta Air Lines announced that it is trying to get to 100% vaccinated employees.

“While we can be proud of our 75% vaccination rate, the aggressiveness of the variant means we need to get many more of our people vaccinated and as close to 100% as possible,” Bastian said.

Going forward, Delta employees are required to wear masks indoors if unvaccinated. Starting Sept. 12, Delta employees who are not vaccinated will be required to take a weekly COVID-19 test.

After Nov. 1, all unvaccinated Delta employees who use the company’s health care plans will pay an additional $200 monthly. Delta said the surcharge will help cover “the financial risk,” as COVID-19 hospital stays cost an average of $50,000 per person.

“In recent weeks since the rise of the B.1.617.2 variant, all Delta employees who have been hospitalized with COVID were not fully vaccinated.”

The FDA approval of the vaccine from Pfizer Inc (NYSE: PFE) is cited as a reason to expect all employees to get vaccinated against the disease.

The mandates from the company will be widely followed by other companies who are looking to make decisions. Companies are facing hurdles to hire new employees and can’t risk losing employees.

Delta could see backlash against the call for mandatory vaccines and could also gain new customers knowing that they are taking safety as a priority for their flights.

DAL Price Action: Delta shares were down 2.06% at $40.45 at last check Thursday.