Originally Posted by
DC8DRIVER
Why should we negotiate for ANYTHING that is not guaranteed to be there???
Following is a direct quote from our current contract:
"Profit sharing, to the extent there are profits to be distributed, shall be paid..."
Regardless of whether you call it a retirement plan or simply a bonus (because we are such darn nice guys), there is a very real possibility that instead of the insultingly low checks that we now get, there could very well be ZERO to share. As we have seen during these last years of $100 million(+/_) annual profits crew members are lucky to break four figures after tax on their profit sharing check.
Profit sharing is an illusion. The company can make any profit above their $75 million threshold disappear or at lease shrink to the point of being worthless. Eventually, the cost of administering a profit sharing system that nets a pilot a few dollars a year is barely worth the company's time and it sure isn't worth the union's time to negotiate or review for accuracy.
Furthermore, the IBT retirement fund is overextended and we will end up funding a plan that pays more in benefits to retired IBT members than we are putting into it. Again, the money is not guaranteed to be there for us when we retire.
We urgently need to move away from the ancient but fond memories of huge profit sharing checks and into the mindset of a guaranteed, company funded, and employee owned and controlled retirement plan.
8
Your comment about the IBT retirement indicates a lack of understanding about their plans, of which there are several...some excellent.
Profit sharing has always been an illusion, regardless of whatever company. You keep remaking my point. Take the profit sharing, make it hard dollars in a paycheck and then go in and negotiate a retirement plan. 401(k)'s aren't the answer alone because they are as voliatle as the markets. They can be an adjunct, but should not be the only component.