Delta Air Lines (DAL.N) on Wednesday said employees will have to pay $200 more every month for their company-sponsored healthcare plan if they choose to not vaccinate against COVID-19.
The move to add a surcharge to health insurance contributions is the latest tactic by corporate America to push employees to get the shots to fight the pandemic.
A number of U.S. companies, including Delta competitor United Airlines (UAL.O), have mandated shots for their employees to protect their operations from the highly contagious Delta variant of the coronavirus, which has hit parts of the country with lower vaccination levels.
President Joe Biden has also urged private businesses to require employees to be vaccinated.
In a staff memo, Chief Executive Ed Bastian said the monthly surcharge would take effect on Nov. 1.
Bastian said the surcharge is necessary to address the financial risk the Atlanta-based airline faces from the decision to not vaccinate.
A Delta Air spokesperson said the average hospital stay for COVID-19 has cost the company $40,000 per person. The surcharge would apply to the entire workforce and a proof or documentation of vaccination will be needed to avoid it, the spokesperson said.
Chris Riggins, spokesman for the Air Line Pilots Association at Delta, said the union does not intend to oppose the proposed surcharge because it would not affect the healthcare plan it has negotiated with the airline for its members.
But since most of the pilots are not covered by the union-negotiated plan, Riggins said they would see an increase in their healthcare costs if they decide to remain unvaccinated.
While Delta had refrained from making the shots mandatory for its staff, its latest move was in sharp contrast to the policy being pursued by rivals such as American Airlines (AAL.O) and Southwest Airlines (LUV.N), which are “strongly encouraging” their employees to get vaccinated.
American Airlines is offering vaccinated employees an additional day off in 2022 and $50 through its employee recognition platform.