Originally Posted by
Scoop
Guys,
Lots of misleading and incomplete information in this thread.
The PS formulas are a percentage on pre-tax income (PTIX). Exactly how PTIX is calculated is important - think of it as the "fine-print."
So AMR just announced 5% of PTIX into a PS pool. No details yet on now that will be distributed - my guess is a formula based on earing's which is as close to an industry standard as we have.
DAL contributes 10% of income up to 2.5 Billion and 15% of income for all profit above 2.5 Billion PTIX. For the past two years this has resulted in approximately 16% and 22% respectively of each employees qualified earnings.
UAL has a similar system but I believe it is based on profit margins vice a flat PTIX number like DAL but both pay similarly with similar profits.
As mentioned another important fact is if your PS generates a 401 contribution. At DAL if you make $40,000 in PS you also will also receive an additional 15% of that as a 401K contribution. I am not sure if UAL or AMRs PS have this provision or not.
So when people are saying that AMR is getting 5% and DAL is getting 22% they are comparing apples to oranges.
In any case this is great news. Hopefully DALPA can leverage this into a zero or much smaller PS capitulation during our current negotiations. It also raises the bar for all legacies, and hopefully AMR can increase the PS amount in the future to closer match the DAL and UAL plans.
Scoop
I believe it's a comparison of dimes to dollars. Even with a few more dimes, does this REALLY change the perception of Parker and his "team" which is the fundamental problem ?
I think Parker just gave up a little more money, but ultimately it won't have much of an impact in turning AA into something that competes with Delta product and experience wise, let alone the premium foreign carriers and I think that will be frustratingly evident over time. IMO, most employees here be they LAA or especially LUS have simply been screwed over too much and for too long for a superficial Band-Aid (applied a year from now) like this to have much impact. It isn't walking the walk, but kicking the can. Just my .02..........