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Old 04-03-2015 | 08:11 AM
  #3438  
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Carl Spackler
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Originally Posted by SharpestTool
I don't view any distinction between PS and other fixed rates of compensation, other than the risk element.
Your view doesn't matter anymore than mine. What matters is that you can't cost out profit sharing when developing the future cost of a contract.

Originally Posted by SharpestTool
Management has a total cost figure in mind that they will draw the line at when costing our contract. We intuitively understand that and I refer to it as the pie.
And if they try to use profit sharing in their total cost figure, they will run afoul of the NMB.

Originally Posted by SharpestTool
How we allocate the slices is to be determined by the negotiating committee and the MEC. PS is merely a slice of the pie.
All correct except your addition of profit sharing.

Originally Posted by SharpestTool
My view on pay rates is grounded by what is possible. What is possible is grounded in what is responsible. Specifically, what is responsible management from the board's and shareholders perspective. That ultimately will determine the size of the pie. So I like to start with what is rational, but likely pushing the envelope. That sets my upper bound. My lower bound will be established by industry standard plus a dollar, which is pushing the envelope in the other direction. I expect something in between those bounds.
You're describing a non-union airline which is to allow management and shareholders to determine the size of the pie, and then we employees fight amongst ourselves for the allocation of that pie. A union is supposed to define the size of the pie via the maximum allowable under the law. That definition is always far more than the company wants to give. If we're just accepting what management is already willing to give, we're just like any non-union shop.

Carl
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