It means equal to 30% of your W2 for the year. This year they are saying that the profit sharing check will equal about 15-16% of your W2.

 

So you will give up all of your profit sharing if your 2016 W2 goes up by any amount, and call it an "improvement."

Where do we find such men?

 

It was mentioned about a month ago, that Richard made the comment that in 2016, Delta 'might' make as much as $10Billion.

Want to guess what our profit sharing payout would be on that amount?

If $4B profits net us roughly 15%, then 2.5X that amount is 37%.

So how much of a 'raise' would you trade for that? Another 4,8,3,3? Spare me.

We would have made an additional $1.3 Billion in 2014 but for our fuel hedge losses.

I'm guessing by 2016 they -might- have the hedge thing sorted out...or not.

The point I'm trying to make is, WHY would you trade profit sharing at all?

RESTORE our PAY RATES and keep the profit sharing. When they came to us to save them from bankruptcy, they didn't ask for a pay cut OR our retirement plan, they took BOTH!

It's PAYBACK time! (It's actually LONG PAST payback time!)

We are STILL below 2004 pay rates! And our retirement funding SUCKS!

WAKE UP!

 

Of course in 2016 the profit might also be zero. Historically that's probably a far more likely number then 10 billion. I would also be willing to bet oil is in the 80 to 100 dollar range then. We are going to get killed by our hedges next year. american is projected to pay 30 cents a gallon less then us in 15. Combined with the billion dollars invested in the refinery between purchase, upgrades and quarterly losses fuel has not been a bright spot despite managements attempts to justify the purchase.

 

I would like to see a study that takes our fuel hedges, refinery purchases, etc, and added it all up for 20 years, then compared it all to a "no hedge, buy a market price" strategy and see if we are even one dollar ahead. It seems like we have wasted a lot of time and effort for very little (if any) aggregate benefit, fuel wise.

 

Fear, Uncertainty, and Doubt.

Whose side are you on?

 

Won't the mark to market adjustment already be baked into the Q4 2014 numbers? If oil pops up to 80-100 range, this should have a positive effect on the hedge positions further increasing 2015 Profit Sharing.

 

Math is not quite on your side with that.... The math I showed equals a 18.58%/4%/4%/4$ over the life of a 4 year deal.

Using your numbers would mean in mathematical terms that the PS plan would go approximately:
2016 18.58% 0-2.5B 0%, above 20%
2017 7.58% 0-3.75B 0%, above 20%
2018 7.58% 0-5.00B 0%, above 20%
2019 7.58% 0-6.25B 0%, above 20%
(I'd be in favor of that BTW)

You can use the same math formula with the previous contract and all of my reps during C2012 know that it was a very wise choice to make the conversion.

I don't agree with a 4/8/3/3. It is more accurately described as a 2% signing bonus on 2012 with 10.84/3/3 starting on the amendable date.

They got 4% after getting nothing for 27 months.... I wouldn't make that comparison. I agree, this round needs to have bigger increases than 2.5 years ago... DAL is in a much better position, and so are our peers.

 

Absolutely true and possible. But with all the evidence available to us, I'm willing to take that risk.

 

You misunderstand my point.
I'm not advocating negotiating in public. I'm just pointing out that publishing the "opener" has little or nothing to do with negotiating.
Its useless but it seems to make people feel better so the union does it.
What gets put out is nothing but platitudes. If I was DALPA I also wouldn't put out any actual table positions.