Total Compensation Lags Behind Delta [graphs]
 

http://i.imgur.com/mL95GTr.png

Source: APA

There has been much debate over the company's December 23, proposed pay rates. With the exception of Group I, we believe the proposed hourly rates are in the ballpark, however, when comparing the total pay compensation between pilots at American and Delta, we believe it may fall a bit short.

It's certainly no big secret that unlike Delta CEO Richard Anderson, Doug Parker does not see the value in having everyone pulling in the same direction via profit sharing. Nonetheless, in order to truly get an apples to apples pay comparison, we must also take into account other pay compensation such as profit sharing.

In 2014, pilots at Delta are scheduled to receive an additional 15% in compensation in the form of profit sharing. In looking ahead to 2015, airline analyst are predicting profits at Delta that will result in an additional 20% of pay in the form of profit sharing. For some lineholder captains, this additional pay will be in excess of $55,000 for 2015. Not too shabby.

While it is important to compare the payrates in the current proposal with those in the MTA, we also believe it's just as important to compare total pay compensation between pilots at American and our closest competitor, Delta. Below are several charts to compare total pay compensation between Pilots at American and our peers at Delta.

The first 3 charts represent total annual pay compensation (pay and profit sharing) at both American and Delta. In determining the annual compensation we used the current Delta rates as well as the proposed American rates. We also assumed pilots at both airlines receives 1020 annual pay hours (same number negotiating committee and company use) and we assumed pilots at Delta will receive 15% profit sharing (actual) in 2014 and 20% profit sharing (current estimate based on analysts) in 2015. As you will see, with the additional profit sharing compensation there is still a considerable pay gap between pilots at American and Delta. Of course, this annual pay compensation gap will likely become even greater when Delta pilots negotiate a new CBA sometime this year as expected.

The following 9 charts compare hourly rates by converting the total annual pay compensation into an hourly rate. This is accomplished by adding annual salary + profit sharing and then dividing that number by 1020 hours. Using the Delta B777 above as an example: ($270.55*1020) + ($55,139(profit sharing))/1020 produces a comparable annual hourly rate of about $324 an hour. In other words, if B777 pilots at Delta earned $324 an hour they would earn the same if they did making $270 an hour plus projected 2015 profit sharing. Looked at it yet another way, the following charts depict the hourly pay rate American pilots would have to attain to be compensated equally with pilots at Delta.

We fully understand profit sharing is not an absolute with respect to pay, however, even with the proposed pay rates we are still well below our peers at Delta. Furthermore, we have also heard rumblings that Delta pilots may modify their profit sharing in return for a higher payrate, this of course would increase their guaranteed pay as well as have a positive impact on next year's mid-contract adjustment.

http://i.imgur.com/voFu12O.png

http://i.imgur.com/vMQbUDP.png

Analysts predict that Delta pilots will earn profit sharing at 20% rate for 2015.

http://i.imgur.com/xTHCgmr.png

Good graphs.. Only problem is that pilots are stupid at math...

I could pass out $5 coupons to LaLa Land and pilots would buy a $30 ticket to LaLa Land, even before they knew what LaLa Land is, just so they wouldn't lose the $5 I gave them.

Why don't they have a dal +20% compared with the rates you get in arbitration up?

If this gets voted down, I believe we will go back to the table because management needs HBT/int/dom and vacancy bid leeway. If we go to arbitration our 2016 pay looks like:

Industry comparable Pay Rate adjustment (Delta and United ASM/fleet weighted average) provides for a Jan. 1, 2016, pay rate adjustment.

On a weighted average, using today’s Delta and United contracts, the Jan 1, 2016 increase would be 14.3%.
The following are the pay rate increases that would have to be achieved by Delta pilots no later than Jan. 1, 2016, in order to match American Airlines' proposed pay rates and do not include Delta or United profit-sharing.

Delta's profit-sharing history: 2013 = 8%, 2014 = 15%.
"In 2016 For Group '___,' for MTA pay rates to equal the JCBA pay rates, Delta would have to achieve a ___% increase no later than Jan. 1, 2016:
Group 4: +17% (widebodies)
Group 3: +23% (B757/767)
Group 2: +19% (A320/B737)
Group 1: +9% (E190/B717)

Dal has to lock in at least 20% raise by July for the mou to even be even with this offer.

The $10 Billion that Parker is scooping up from last year and this year.... He can afford to pay off his promises.

He doesn't have to wait any longer to keep his promises! He can do it now!

He can also you pay you less, can't he? You aren't in section 6 bub, you got a cost neutral arb staring you down if this fails.

Yep, let's see those MTA rates compared to DL.

You are slipping. You eat Parker's useless crew news propaganda about Sec 6 and make excuses for Parker reneging on his promise to pay us Delta Pay. He is negotiating with us. He has made an offer. We can accept his pathetic POS offer or we can tell him to stuff it and come back with a reasonable offer when he is ready to buy the 7 concessions he wants...

And don't forget that this POS offer has many more concessions that he never told us about... Just for one he is taking away all crew meals for domestic flights... that is just spiteful. He can afford to keep his promise to pay us Delta Pay, and he will get a lot closer to that if we demand he keep his promise... If we prostrate ourselves and sell cheep he will that too.

When are we gonna see some of the "boss" s!ht out of you? Grow a pair. :D

Factcheck. It's not July.

"The following are the pay rate increases that would have to be achieved by Delta pilots no later than Jan. 1, 2016, in order to match American Airlines' proposed pay rates and do not include Delta or United profit-sharing."

Lets see our DOM/INT and HBT contract compared to Anderson's contract at Delta.. Glass has so many hidden concessions in this contract, we will pay for our own "pay raise" twice over if we jump at his bait. Parker can afford to keep his promise to pay us Delta Pay, but he won't if we sell out cheep.

Come on you guys, didn't you boys ever chase girls when you were in high school or college? :D You are the chick, and Parker is the horn dog.... Put your skirts down, already. :eek:

Haven't read the mou huh?

Hey I downloaded the JCBA, care to point out where it says domestic meals are gone?

Yep...and please list all the hidden concessions. So far all the ones I've seen people claim were "hidden" were already in the MTA.

Go read MTA page 206, those rates have to be agreed to by end of July with arbitration starting no later that September 1st. So dal has to have a deal in place no later than September for their new rates to count. Oh and they also need a 20% minimum raise for the "adjustment" to go over our current offer.

The MTA doesn't include any of the Concessions Parker is trying to buy. Not one. :)

Total Compensation Lags Behind Delta [graphs]
 

Compare this offer to the MTA & arbitration, not DAL. It should be easy to pick the better choice.

Compare this offer to what Parker promised to pay us and is able to pay us now that the company is raking in $10 Billion from last year and this year...

He has $10 Billion and things he wants to buy. Yes, the choice is easy. No. Not, yet. Pay up *****es.

Cacti,
It's a common misconception but this is incorrect.
What the July 1 date signifies is the beginning of calculating the appropriate ASMs, in order to start the PROCESS of calculating pay, into motion. Not the actual pay rates.
So Delta has until 1/1/16 to come up with their new contract.
This has been verified by a union officer for me.
I, too, thought July 1 was the drop dead date. It's not.
Regards,
73

Not July, September. Unless you think arbitrators can time travel

Settle down Homey. Yes, I realize the arbitration would happen in September. I'm just pointing out that the process would begin July 1 and be arbitrated in September, and that the actual Delta pay rate would be for 1/1/16, not July 1 2015 as many believe.

But the rate has to be in place by September, and that rate has to be 29% more than they make now, odds of that?

Anderson would jump on that like white on rice! He is a CEO that can think past the end of his nose.

There isn't a Dal guy that believes that.

How will they agree to or arbitrate a pay rate adjustment with pay rates that don't exist in July/August/September 2015?

LOL.... So you think that he will increase his costs by 29%, not to mention the increase in the DC that comes with it, just so AAs costs go up a small fraction of that after averaged with DL & UAL....
Genius!!

It isn't a "cost" comparison... .. Never mind.

It won't matter. Anderson's cost will be much higher than Parker's because Glass is the genius. He has folks doing double back flip jack knifes trying to calculate 500 different variables... But the only one that matters is that Parker is raking in $10 Billion and is prepared to buy what he needs that he can't get in arbitration. Even so, pilots always go ugly early for Glass. Always.

The union president showed indignation that Kirby took away Retro.. How convenient for Kirby... If Wilson wanted to help Kirby more I don't know how he would.... Great timing. Haven't heard much else. :rolleyes:

Actually, I know for a fact many of the chiefs and even Parkirby themselves got a lot of emails from those wanting to vote yes saying their coup-de-gras was in jeopardy over retro (two months bribe pay). Talk about a large chunk of the membership actually subverting their own union !

This group is toast and it's future as the bottom feeders of the legacy carriers is assured. 2020 is going to a downright hilarious combination of mirth and melodrama as the rats feed on each other. :rolleyes:

Wait till 2020. Many of us will be falling over each other to help Parkirby and Glass hose the minority again for quick $$$.

2020? My hip replacement is good only to 2019--- with moderate usage. ;-)

Of course they showed the same indignation as their union president... He's the leader.. It's over. The president stepped in and kneecapped us all while he was swinging at Kirby. Kirby laughed that Wilson ignored every single item proposed in the BODs counter.. But instead he keyed up over retro that Kirby yanked and planned to put back... Now everyone thinks Kirby "caved" into the mighty president... It was like poetry, bro. A choreographed freaking play. Acts 1, 2, and 3. The end.

We would have been happier if we were born with our skirt flipped over our head like the rest of them.

Found some video from when APA was negotiating the MOU...
http://i.imgur.com/3OvwxRR.gif

The APA BOD counter was extremely reasonable, and no one was celebrating the counter, especially not the LAX kneecapper BOD meberbers.

I'm starting to think a yes vote will be better so there will be one extra year of retirements before the next negotiations. Maybe enough regional guys that remember how important work rules are will be on property at that time and will actually have the numbers to matter in the vote.

Sarcasm. Sort of.

An Early Agreement
 

I'm a Delta guy. RA has said as well as our Sr. VP Flight Ops that one of their goals is to have an agreement in place before the amendable date. That will probably happen. We did last time. RA wants labor peace. Our profit sharing for 2014 was %16.5 of our annual W2. Next years forecast by some is for our PS to equal %25 of our annual pay. Delta's debt after the merger was $17Billion. Now its around $7Billion and the goal is $5Billion in two years. That saves major interest dollars. Investment grade credit rating is on the horizon. Fuel is down, RASM is up, inefficient 50 seat RJs are shrinking. 2014 profit was about $4.5Billion. 2015 is forecast to be around $6Billion. Delta seems to be printing money.

Having said all of that, our Profit Sharing for the future looks stellar. I hear the pilot survey was strong and clear that we don't want to give up any profit sharing. We can put up to %100 of it into our 401K up to the IRS limit.

I'm sure American will be in the same state in the future that Delta is now. Not sure if it's still possible but you may want to consider holding out for some type of profit sharing formula if possible. Nice way to get more without having to visit with Dougweiser. Anyway, good luck.

Tom

I apologize for changing the subject, but quick question. With all the weather cancellations upcoming, if your trip and/ or flight gets cancelled, does LUS pilots get paid for it now? I thought I heard that with green book now you should. Do you need to file a claim?

If you're asking me the Delta guy, the answer is yes we get paid for the trip. No we don't have to file a claim. We may be subject to recovery flying if it falls within the contractual guidelines but we are paid the trip guarantee or actual flying whichever is greater. Minimum daily pay is 5:15 per day.

Tom

Thanks for the info, but I was hoping a LUS guy could give a heads up on our current rule for cancelation pay.