Originally Posted by
Vikz09
We went from 15% to 10% as a percentage that's a 33% reduction. Sure Alpa's massages it to sound like only 5% but in reality we gave back a third or 33%. Now for real numbers. If next year the company makes 3 billion which sounds like it is a real possibility this "little 5%" reduction In profit sharing will cost the pilot group 125 million in lost profit sharing. Those are big numbers that were a concession.
Your number is off significantly. We receive roughly 1/3 of the profit sharing distribution. You need to divide $125M by 3. The net reduction in profit sharing payout for the pilots is roughly $42M, not $125M. That represents about 2% pay.
Negotiator Notepad 12-11 spells it out quite clearly and even provides a chart on profit sharing.
Under your hypothetical $3B profit next year, profit sharing for pilots would go from $166.3M to $122.5 compared to the JCBA profit sharing plan. OTOH, C2012 pilot payroll will have increased by 16.2% or $324M more in pay than the JCBA next year.
Q3 Can you provide some examples of how the profit sharing math works out?
A3 The profit sharing for the entire employee group is being reduced from 15% to 10% of the first $2.5B of pre-tax income. The pilot group’s share of that payout is roughly one-third, or 5% (1/3 of 15%) under the old formula and 3.33% (1/3 of 10%) under the TA.
Here is how the math works out:
Under today’s profit sharing plan, should Delta have a pre-tax income of $2.5B, the 15% payout would yield $375M for all
eligible employees. Of that, the pilot group would share roughly one third, or $125M. Under the TA, that amount will be reduced to $83M, with the remaining $42M having already been converted into additional pay rates that are received upfront and throughout the year.