article on profit sharing

[MetalMover]

Profit sharing program still exists 20 years later.
Company offered if as a thank you for a job well done.
So what happened to the same profit sharing today that we had back in the 80's?
It became a union negotiated issue. Profit sharing still existed during this change.
Today the TWU just gave it away for a pay raise. Profit sharing program still exists today for the same reason, Thank you for a job well done. TWU did not think so.
 
Pay raises are negotiated in contracts. Profit Sharing should have never been put in the contract in exchange for a pay raise. Profits will continue and the company says Thank You for a job well done. But this time there is no show me the money for a job well done. Maybe the company will direct the next Thank You for a job well done to the TWU for giving it away. And the profits continue to roll on and on with the Thank yous.

I am already on record saying that I rather have a raise rather than PS....Having said that, the TWU should have at least asked the members whether or not they would rather have it..

 

[WeAAsles]

I am already on record saying that I rather have a raise rather than PS....Having said that, the TWU should have at least asked the members whether or not they would rather have it..

There was not enough time to send it out to the members for a vote Metal. Remember it was an offer made to us by a company that at that moment would only have the opportunity to implement it if the merger came through. That wasn't a guarantee.  With the PS formula it was a better move to grab the direct pay when the opportunity was there.

 

[swamt]

Profit sharing program still exists 20 years later.
Company offered if as a thank you for a job well done.
So what happened to the same profit sharing today that we had back in the 80's?
It became a union negotiated issue. Profit sharing still existed during this change.
Today the TWU just gave it away for a pay raise. Profit sharing program still exists today for the same reason, Thank you for a job well done. TWU did not think so.
 
Pay raises are negotiated in contracts. Profit Sharing should have never been put in the contract in exchange for a pay raise. Profits will continue and the company says Thank You for a job well done. But this time there is no show me the money for a job well done. Maybe the company will direct the next Thank You for a job well done to the TWU for giving it away. And the profits continue to roll on and on with the Thank yous.

You are correct.  The TWU should have never allowed PS to get into the contract.  Because now I believe the mechanics are the only group to not have it.  Can only hope you guys get it back during JCBA talks.  But be very, very careful.  Notice in the article it mentions that SWA has givin 2.5 billion and Delta gave 1.5 billion in the last 4 years into the PS.  The reason for this is the structural way the PS is set up.  SWA's is 15% of profits.  Delta's is set up at 10% of first 2.5 billion then 20% for there after.  Understand that Delta HAS to make 2.5 billion or more for any PS to be distributed out.  Where at SWA it's 15% of any profit.  Big difference in the 2.  Moral of story;  If you guys are able to get it back then get it at a % of total profits not a % of a minimum set PS.  Now If I took the 2.5 billion wrong and it is 10% up to the first 2.5 billion, then that would be a little different.  NM I re-read it and it does indicate first 2.5 billion in the article, my bad.  But, it does still apply on cautious on how to nego it, and it is still sad that you guys would have to nego it back in.  Like 1AA said, it should have never gotten into the contract.  Sorry for the confusion.
 
On a side note, and this is just my opinion here.  Maybe, just maybe it was the intended by the co to nego away the PS from the mechanics group, knowing that the US guys still have their pensions being paid into, and use the PS as a tool to nego away the pension.  Either way the pension and PS will be hot topics as well as the pay scale.  I still think you guys should have continued to get PS and raises.  The TWU screwed up nego it away for a raise...

 

[swamt]

I am already on record saying that I rather have a raise rather than PS....Having said that, the TWU should have at least asked the members whether or not they would rather have it..

Bingo sir.  With AMFA the membership would have dictated that.  And it's right there in the constitution for all to read.  

 

[UPNAWAY]

Stock Options would be way better and would give the same buy in as profit sharing and out right stock.

 

[AANOTOK]

So, exactly what did the frontline employee's get for AA earning a 1.5B record profit? Anyone??

 

[700UW]

Stock Options would be way better and would give the same buy in as profit sharing and out right stock.

No a guaranteed raise is better than stock options or profit sharing.

 

[WorldTraveler]

Equal payout would be nice, but apparently it's too, well, equitable. Not sure how it would play out at AA, but doing that here at DL would mean a *massive* boost to Ready Reserve employees, and others at the low end of the scale. Given that they do the same work as we do to generate said revenue, it'd be the right thing to do.

no, it's not equitable.

the fact that you couldn't find a single large company with employees of varying salary levels who use such a system should provide proof that your expectations are out of whack.

No a guaranteed raise is better than stock options or profit sharing.

how many pay raises were contained in those contracts that were ripped up in BK?

UA pilots would love to have back those "guaranteed" pay raises.

 

[WeAAsles]

Nutjob alert. Nutjob avatar currently .on all threads. Beware, avoid at all costs. The white wagon has been dispatched

 

[WeAAsles]

So, exactly what did the frontline employee's get for AA earning a 1.5B record profit? Anyone??

A 4.3% raise that has more overall value for the year especially compounded year over year.

 

[WeAAsles]

Bingo sir.  With AMFA the membership would have dictated that.  And it's right there in the constitution for all to read.

This topic has nothing to do with AMFA. Please take your comments to another thread.

 

[La Li Lu Le Lo]

This topic has nothing to do with AMFA. Please take your comments to another thread.

I wish you would take yourself to another forum.

 

[WorldTraveler]

A 4.3% raise that has more overall value for the year especially compounded year over year.

sorry but a 4.3% pay raise doesn't come close to being equal to 8.2% profit sharing which is expected to rise.

profit sharing IS compounded because all employees who get profit sharing are also getting pay raises.


the author of the article, not me, made the calculations.

feel free to defend what AA employees have relative to others in the industry. The facts are out there for all to see, AA employees know them, and they aren't going to sit on the sidelines and sing out of the company songbook.

 

[WeAAsles]

I wish you would take yourself to another forum.

Ha Ha LuLu. Now go sweep a floor or flip a burger. Whatever you do to earn a living I suspect.

 

[Vortilon]

The recent profit sharing plan that we just lost - was really pretty pathetic.  IIRC, even if the company made a 2 billion dollar profit, the payout would only be a couple thousand bucks.  Given that, the pay increase was the obvious choice to make.  Profit sharing shouldn't contractual.  Now, the company is only rubbing it in our faces, and pissing most of us off even more.  I don't ever see Parker being able to bring morale up unless he starts sharing the good fortune with the people that made it possible.