Originally Posted by
Southerner
His point is that the 15% is an anomaly, and saying that the 8% is really 3% assumes that the 15% profit sharing would continue. This LOA not only codifies the 10%, which is good, but it also gives an 8% bump in base pay. Sure, if profit sharing were going to be 15% forever, this pay raise would be smaller, but there is never a guarantee with PS.
The company even says that this LOA moves pay from not guaranteed profit sharing to guaranteed base pay. Even if it were 1 for 1, that's a good thing for us.
Yes, it's also a PR move from the company, but so what? We take our 8% and continue negotiating.
15% or 10% of Pre Tax earning determines the profit sharing pool not the percentage of profit sharing. To equate that number you first have to divide the profit sharing pool by total wages eligible.
Also the LOA does nothing to guarantee no further changes because the LOA references a formula in the Plan. The plan has no formula to reference. Doubt that? Look it up and find it.
Hint: it's not there.
Moving pay from profit sharing only works if pay is tied to the leading base pay plus XX%. Right now we have 30% lagging base pay and our PS was just cut and no work rules, health at will, retirement at will no time off, etc. Also the De minimis years would have netted no less than 4% Profit Sharing if it wasn't stolen for retirement. Without the PS in the retirement plan we would have 8%. The company thinks 5+3 = 13 and so do many of my fellow Jetblue pilots on this forum.
Not a good thing.