Originally Posted by
sailingfun
I
The average pay was 180k in 2013. When the 2014,numbers are posted with the raise and increase in PS it will be near or over 200k. The reduction in profit sharing was about 1.9%. I don't know where you got your numbers. The math has been posted many times. A simple recap is the profit sharing amount was reduced 125 million dollars. The reduction was a fixed amount. The pilot share of that is about 34 to 35% or just under 44 million. 1% in pay equals just under 23 million dollars.
The average Delta pilot credits about 87 hours per month. Some more and some less.
Keep in mind that pay and w2 are not the same. You need to view your 31 DEC pay check and view the gross for the year to get a accurate amount.
Directly from my LEC during C2012...
How can a reduction in my profit sharing (return on investment in delta) by 5 percent over the next 20 years equal only 2 percent of a 1-year increase?
The profit sharing for the entire employee group is being reduced from 15 percent to 10 percent of the first $2.5B of pre-tax income. The pilot group’s share of that payout is roughly one-third, or 5 percent (1/3 of 15%) under the old formula and 3.33 percent (1/3 of 10%) under the TA. Here is how the math works out:
Under today’s profit-sharing plan, should Delta have a pretax 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 been con- verted into additional pay rates that are received up front and throughout the year.
Now consider that in 2011, Delta had a pretax income of $1.522B. The 15% payout yielded $228M, of which the pilot group received roughly one-third, or $76M. Under the TA, that amount would have been reduced to $51M, but the pilot group would still have received the same $42M in additional pay rates up front throughout the year as described above, for a total payout of $93M or $17M more than had profit sharing not been con- verted to pay.
Because the profit-sharing payout above $2.5B has not been changed, we will see no difference in payouts above that amount should Delta’s pretax income exceed it.
Now I'm just spitballing some basic math here, but basically the PS giveback during C2012 was approximately $42 million/year for the past 3 years. (1/3 of 5% on $2.5 billion)
That amounts to approximately $3,500 divided evenly amongst roughly 12,000 pilots. I don't really like percentages because they have a tendency of clouding facts to persuade an opinion.
That being said...
For a pilot who made $100K that amounted to 3.5% giveback.
For a pilot who made $200K that amounted to 1.8% giveback.
The percentages above are all in relation to gross pay because that is what we use to calculate our individual payouts. I'm not really concerned on how the 42 millions divided up, but it's a point with merit seeing as cumulatively we gave up $126 million in C2012.
I didn't write the above to persuade anyone, mearly wanted to show how misleading percentages can be at times.
I'll take a look at my W-2 and get back to you, but honestly 87 hours per month seems high to me. Perhaps I'm in a minority, but I typically fly between 75-80.