It cost the company the amount they increased the non con plan. With the lower plan that money was just not distributed, it was not given to pilot’s instead.

 

That's what I used to think, but this thread has made me think otherwise. So the FAs getting our profit sharing formula didn't affect our payout?

 

…correct……

 

I don’t think this is accurate. I’ve been told multiple times that the PS pot is created by our PWA, but that money is then shared through all employees. Every other group that gets PS reduces our %.

 

The pot of money is PROFIT, that is created by DAL, Inc from REVENUE-COST. The PWA has some items that help increase this number, like the exclusion of special charges. ALPA EF&A monitor this number for compliance. Once the pot number is agreed upon, we get a % of that pot. Other employee groups getting a % of that same pot (their profit sharing) makes no difference to our money. The only time other employee groups can hurt profit sharing is when they cost the company more (eg raises and benefit raises). We have the same effect on their profit sharing when we have raises and benefit raises, ie we are a cost that lowers profit. Usually our raises, their raises, revenues all tend to go up together. Despite this, our % of the pot only changes based on the table in Sec 3. Another way to say this more plainly, if the other employees have 0 profit sharing or 50% profit sharing, it makes no difference to us. We get the same amount.
Other employee groups getting profit sharing really only impact the company and its shareholders- they would have less money available for retained earnings if other employee groups get more profit sharing.

 

The only things that effect your payout are:

1. PTIX
2. your personal eligible wages
3. the eligible wages of all employees in the pilot plan or the ground/fa plan.

Because PTIX calculations exclude profit sharing expenses, how much they give the non-cons doesn’t change anything.

The item that was discussed here and is frequently misunderstood is that the wages of the non-cons does have an effect.

To make an example, assume a calculated pool of $1 billion with pilot wages 60% of the total, and non con wages 40%. With the plans being the same, non cons will get $400 million, and pilots get $600 million. If the company cut the value of the non con plan in half, pilots would still get $600 million, non cons would get $200 million, and the other $200 million would not be distributed.

 

SO…. If they hire 20,000 more employees, that will raise the wages, and therefore the % of the Noncon “take”, thereby diluting our payout some amount? Do I understand that right?

Appreciate the answers, because I’m one of those who is confused… 😂

 

Yes your ps take home as a pilot will decrease, but the reason technically is that your percentage of total payroll is smaller.

 

Ok, fair enough. Still, good to know that the company growing from 80,000 pre-covid to 100,000 post-covid has impacted our PS, even if by some unknown amount.