Originally Posted by
Alan Shore
I understand (and agree with most of) your point, but the statement above pre-supposes that the increase in hourly rates has exactly the same value as the reduction in profit sharing. In C2012, hourly rates increase by 8.5% in 2013 offset by a 33% reduction in our profit sharing up to $2.5B.
That reduction had a value of up to $42M, which is roughly equivalent to a 2% increase in hourly rates. So our W2 went up in 2013, but by only 6.5% and not 8.5%, all other things being equal , e.g., hours flown, etc.
Your also leaving out the early raise of 4%. As of the amendable date the actual raise including the profit sharing reduction was about 10.8% for lineholders on most equipment. There was a additional raise for the 88's and reserves saw another 8 Percent raise. In addition the average pilot saw 10 to 12 hours more vacation and training pay for about 1 percent more in W2. Raise at signing was a minimum of 11.8 at the bottom to 20.8 for a mad dog reserve at the high end assuming the airline made at least 2.5 billion in pre tax profit. That includes the reduction in profit sharing.