Profit "sharing"

[screwed again]

Yes, I understand that this is small potatoes to all the other issues with our new contracts. But has anyone really looked at the new profit sharing plan? If the company makes $750 million in pre tax earnings, an employee making $50,000 gets a whopping 500 pre tax dollars! Whoopee!

 

[screwed again]

Sorry, I didn't see this in the other thread already

 

[Vortilon]

This profit sharing plan is an insult! This plan is even worse than the one we had back in the 90s, and that one sucked as well. Southwest was paying their employees profit sharing checks in the tens of thousands of dollars each - I mean life changing dollar amounts, and here was AA paying out 3 and 4 thousand dollars each. Now, this pathetic excuse for a profit sharing plan is foisted upon us, holy crap, the company makes lets say a billion in profits, and we get around a grand..... Really, you just have to laugh.

It has become evident that most of what we are seeing imposed now, has been engineered to reduce the almost non existant morale to nil.

 

[Bob Owens]

Yes, I understand that this is small potatoes to all the other issues with our new contracts. But has anyone really looked at the new profit sharing plan? If the company makes $750 million in pre tax earnings, an employee making $50,000 gets a whopping 500 pre tax dollars! Whoopee!

If the choice is to go out there and give 110% to get the plane out on time and hope to see some profit sharing a year later or maybe put in the effort that bottom of the industry pay commands and work the OT instead, for a sure thing in the next paycheck, which one do you think will pay better?

The more profitable AA is the less you will make. Lets say AA makes a ton of money, how will that affect the rest of the industry? It will drive wages down as less profitable carriers demand concessions from their workers so they can compete with AA, so in three years time when the wage adjustment provision kicks in we will get less instead of more.

Figure if AA makes the $3 billion in Profits the most you will get according to your numbers would be around $2000. However if AA was earning that kind of money all the other carriers would rush into BK to try and lower their workers wages like AA did. If AA can file for BK with $4 billion, bump that up to $5 billion and report profits and still get a Judge to abrogate labor contracts then what's stopping Delta, United and USAIR from filing because they are so much "less profitable " than AA? Nothing, because the court doesnt challenge the debtors claim to need relief, he simply asks "how much do you need to make whatever you feel you need to make?" They could use the same exact arguement that AA made, that they will not be able to attract capital in the future unless they can compete. So by the time 2015 rolls around instead of the average pay being around $38/hr it would be more like $34/hr. So instead of getting a wage adjustment of around $4/hr , or around around $8300 we would get a one time Profit sharing of just $2000. On top of that we would lose another $450 in the matching 401K.

So a very profitable AA is not in our best interests, then add in how much more you can make working OT and you can see how going the extra mile would be very costly.

 

[1AA]

One of the sales pitch to the members was the reinstatement of profit sharing. I wonder how many idiots bought into it and voted Yes. Keep listening to the TWU leadership.

 

[Frank Szabo]

One of the sales pitch to the members was the reinstatement of profit sharing. I wonder how many idiots bought into it and voted Yes. Keep listening to the TWU leadership.

It's really not a bad deal - that is, if your only other option was a poke in the eye with the proverbial sharp stick. What there was in print re: this "contract" to vote on seemed much more of an insult than an attempt to settle things with the employees. No matter, now.