Originally Posted by
GunshipGuy
To FTB's point, the primary reason they are monetizing PS isn't because it allows them to reduce the other employee's PS. The primary reason they're monetizing PS is because we're willing to do it during sec 6 negotiations. We're thus enabling the company to exchange PS for pay increases during this period. We're funding payrate increases we would otherwise get by taking it in the form of monetized PS.
The bonus is the company will then be able to do the same for other employee groups. But if we did this 8 months after agreeing to a TA they would not be interested in a 1:1 exchange.
Granted, the big money in PS is with all the other employee groups as a whole, and yes, they have to get ours first or look like the heals they are. But they want to use PS to fund ours and other employee's pay increases.
Don't forget that the exec's get their compensation and bonuses
BEFORE PS for the pilot group is calculated. This is big for 2 reasons:
1. Their compensation and bonuses are tied to profits too, meaning that they get a cut at the full total (ie. they eat at the banquet before anyone else does). PS is calculated after their compensation lowers the amount leftover.
and
2. It is possible, after executive bonuses and compensation is accounted for, that remaining profits will be below the threshold for PS for the pilot group.
Dislcaimer: I'm not sure about #2 (see: "It is possible"), but would it surprise you to learn it's true?? #1 is certain sure. No question.
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