[QUOTE=SharpestTool;1855570]Do you really believe this? Wow!



We know that PS is currently 16% plus. We should know that somewhere down the line it will be worth less. Our risk is that if profitability wanes, we see smaller PS payouts. To mitigate that risk we wish to receive par or even a premium in the form of additional fixed pay rates.

If this becomes a bargaining position, the company will justify their value with an economic analysis by there team. DALPA has an economic team as well and will present the justification for their number. If an agreement can be made within both parties' parameters, we get a deal. If not, no deal. This is not rocket science.

Both will try to quantify risk and value PS accordingly.

My view is simple and I have passed it along via survey and direct input to the reps. The risk for a recession and reversion of the business cycle is rising and in my estimation the period of economic expansion is nearer the end than the beginning. In OTW, we are nearer to the peak of the cycle than the beginning. Or, we are closer to the maximum value of PS than not. If there is a time to capture max valuation from the company for a portion of our PS, it is now or within the period covered by our next contract. Additionally, the downside risk outweighs the upside risk where we leave some money on the table. Further, if we do miss some upside potential I consider it an acceptable time risk premium to play.



ST,

Yes - Profit sharing will most likely go down some time in the future. But We are talking about a contract that covers 3-4 years - in which time PS will most likely continue to rise. Out biggest threats are all more than 4 years off. What "peak" are you referring to? We have been making record profits in a "down" economy and oil continues to decrease.

So why the rush to monetize it now when it is increasing yearly? If PS goes down for a year then we take a hit in PS - so what?

Are you saying that the industry will take a downward turn that will permanently affect profits negatively?

If the dreaded Black Swan does swoop in do you not think industry leading pay-rates would also be at risk? Don't kid yourself, there is no longer any stigma attached to BK and it could be used again. If we are hit with something big enough to permanently affect profits all bets are off.

I for one am more than willing to risk the upside of PS against a bad year or two. Besides, why would management want to monetize PS at a rate that would be more than projected future profit sharing? They know better than we do what the future may hold and I don't think they plan on giving us a premium.

Lets get a straight pay raise and not lose too much sleep over our increasing Profit sharing.

Scoop