Originally Posted by
Denny Crane
Now this is the logic I don't understand. If you are going to negotiate to get it back in the next downturn, do you really think we will get such a lucrative PS plan?
Here is what I see more likely happening. (This is assuming we are negotiating pay reductions because of a severe downturn.) we negotiate it away for a 5.74% pay increase now but in the downturn we negotiate away 5.74% of pay for a 2% net gain in possible PS.
Denny
No clue whether we will get the same profit sharing plan back in low times. I would guess that during the high profit era of the late 90s when the 6% profit sharing was monetized folks were likely asking the same question.
I do get your point of view on it though. My opinion about the PS is that it'll be a de-facto 20% pay cut for all of us within 5 years. Pure opinion, but it's definitely at least as historically likely as profits above $6 billion forever.
I realize they can take the rates in a downturn as well. At the very least that path takes a little longer. But the rates also help others pattern up. I'm sure our PS does to some extent as well, but I'd guess getting any airline mgt to give out more in PS in the current environment would be cost prohibitive.