Old 06-10-2012, 02:28 AM
  #5  
DeadHead
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Joined APC: Mar 2008
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Originally Posted by Bill Lumberg View Post
This comes from a poster on the Dalpa website, and I think it's a good representation of the contrast between "time value of money" and holding out for more pay during "normal" section 6 negotiations.


Assuming starting pay of $150k

2012 pay - $153,000 (4% raise last half of year)
2013 pay - $169,260 (150k *1.04 *1.085)
2014 pay - $174,337.80 (150k *1.04 *1.085 *1.03)
2015 pay - $179,567.93 (150k *1.04 *1.085 *1.03 *1.03)

Actual TA:
Total pay 4 years = $676,165.74
Avg annual pay = $169,041.43

Hypothetical "Plan B"; New contract, 2 years from amendable date which includes a 25% pay raise on day 1:
Total pay 4 years = $637,500
Avg annual pay = $159,375 (Inferior to TA.)

Hypothetical "Plan C"; New contract, 2 yrs fr amendable date and has a 30% pay raise on day 1:
Total pay 4 years = $645,000
Avg annual pay = $161,250 (Inferior to TA.)

Hypothetical "Plan D"; New contract, 1.5 yrs from amendable date and has a 25% pay raise on day 1 and another 3% the following year:
Total pay 4 years = $661,875
Avg annual pay = $165,468.75 (Inferior to TA.)

Hypothetical "Plan E"; New contract, 1.5 year from amendable date and has a 30% pay raise on day 1 and another 3% the following year:
Total pay 4 years = $673,350
Avg annual pay = $168,337.50 (Inferior to TA.)

Hypothetical "Plan F"; New contract, 1 year from amendable date which includes a 25% pay raise on day 1 and another 3% the following year:
Total pay 4 years = $680,625
Avg annual pay = $170,156 (Marginally superior to TA.)

Hypothetical "Plan G"; New contract, ON the amendable date which includes a 25% total raise (8.3% pay raise each year):
Total pay 4 years = $678,919.17
Avg annual pay = $169,729.79 (Marginally superior to TA.)

There was a rumor that non-contract employees are getting raises of 10/5/5/5, starting Jan 2013, and that this is better than 4/8.5/3/3.

Hypothetical "Plan H"; New contract, ON the amendable date which includes annual raises of 10%, 5% and 5%:
Total pay 4 years = $670,162.50
Avg annual pay = $167,540.63 (Inferior to TA.)
I think the pilots who are in support of this TA are making ALOT more assumptions then the pilots who against this TA.
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