Originally Posted by
MoonShot
So, does anyone care to explain how the profit sharing works? I read through the PWA but it doesn't really explain how DALPA divides its % of the $. Looking for a ballpark # for a 3 year FO. Also, is a check issued or can you elect some or all of the $ into the retirement account pretax? I'm reading Mar-Apr 2011 for the $?
Hopefully record profits will continue through 2012 negotiations and beyond.
Basically, you take 15% of the company's pre-tax profit (20% of the amount over $2.5 Billion) and put it in a pool. You then take your W-2 earnings and divide it by the total W-2 earnings of the entire work force and you get your share of the pool. For example a person that makes $50,000 that year would get half as much profit sharing as a person that makes $100,000. There is no decision to be made by the MEC it is all a math calculation.
Historically, total pilot earnings are about one third of the pool. If total profit was $1 billion, then the pool would be $150 million. The pilots' share would be estimated to be around $50 million. With 11,000 or so pilots eligible for profit sharing, each pilots share would AVERAGE out to $4,500. Again, an MD-88 first officer would get less than a 747 captain, assuming they both worked a full year.