Originally Posted by
DeadHead
Pushing for a 5% reduction n profit sharing should be a pretty good indicator to all that DAL is looking to make a hefty profit this year.
I'm sure there forecast as of now probably puts them just over the $2.5 billion dollar range. The 4% increase in pilot payroll maybe the extra few million to keep profits under that $2.5 billion dollar mark.
If Delta was worried about "hefty profits" (isn't that a good thing?) wouldn't they have gone after the 20% number? That wasn't even discussed.
A 4% pay raise (second half of this year) is worth over $40 million during the 6 months that it is paid, and this year's (2012) profit sharing is still paid at 15%. That's additional cost prior to the amendable date of our current agreement with no profit sharing savings. For 2013, the maximum reduction in profit sharing is about $42 million. The 2013 pay increase is about $260 million. Again, for any profit less than $2.5 billion that $42 million is reduced.
Last year's profit was based on just over 3% PTIX margin. Since 2001 Delta has had positive PTIX in just 3 of the 11 years averaging 3.7% margin. Compare that to C2K, where in the 5 years leading up to the agreement Delta average over 8% PTIX margin, and in 1998 we had a 12% PTIX margin. In the 5 years leading up to C2K Delta had earned over $7billion pre-tax. In the 5 years leading up to C2012 Delta has earned $1.1billion pre-tax.
Originally Posted by
DeadHead
I think we, as pilots, need to cautious about voting this thing in to quickly.
That in itself isn't a reason to say NO, just something to be weary about.
I agree. I am weary of this discussion!
Originally Posted by
DeadHead
Since I bring that up, what kind of possible timeline, barring a typical section 6 negotiation timeline, could we expect if we vote it down and have the negotiators sit back down to revise the TA?
I have hard time believing both sides will scrap the whole thing without trying to sweeten it a little in hopes to get it through.
The process agreement for this negotiation allows either party to return to the beginning of Section 6 should the process not result in a new contract.
Can you show me an example where Delta has "sweetened it a little" in any negotiation? I see our JCBA and LGA slot swaps where the deals got worse over time. I look at Delta's management of DCI contracts and the results for those carriers and don't see much sweetening. What is your belief that it will be sweetened based upon?
