Details on Delta TA
04-02-2015 | 06:01 PM
#3411
Back on TDY
Joined: Apr 2008
Posts: 12,487
Likes: 0
From: 747-400 Captain
Profit sharing. Profit sharing is at risk compensation. Profit sharing always originates from a weak bargaining position and represents a hedge. Ours originated post-bankruptcy. As it was initially envisioned it was a bargain for management and a hedge for us against runaway profitability. Initially it was a liability to us in comparison to a fixed and known pay increase, and an asset to the company. Success has changed that equation around and currently it is a huge asset to us and a liability for the company. The key point here is that there is a cycle where profit sharing can work for us or against us. It isn't a linear process. The time to capture value (de-risk) from profit sharing is when it most hurts the company to maintain it. The time to capture value is at or nearing the peak of the business cycle. Too many see no risk in profit sharing at this point. History does not support that view. We are closer to the end of the business cycle than the beginning.
So, monetizing profit sharing is a smart hedge play. This time hedging against a drop off in profitability. What percentage and for how much? Again, I do not like risk. If it were just me, I would trade all of it for a 16% increase to our book pay rates. But, I realize others have a higher appetite for risk than I do. I would be open to monetize 50% and retain the other half as a further upside hedge. I think we have an excellent case to sell it back to the company at last year's going rate or our projected rate for this year, whichever is greater. So lets say for know 8% of our current pay rates.
Bottom line: profit sharing entails risk and anyone who doesn't account for that is selling sunshine.
So, monetizing profit sharing is a smart hedge play. This time hedging against a drop off in profitability. What percentage and for how much? Again, I do not like risk. If it were just me, I would trade all of it for a 16% increase to our book pay rates. But, I realize others have a higher appetite for risk than I do. I would be open to monetize 50% and retain the other half as a further upside hedge. I think we have an excellent case to sell it back to the company at last year's going rate or our projected rate for this year, whichever is greater. So lets say for know 8% of our current pay rates.
Bottom line: profit sharing entails risk and anyone who doesn't account for that is selling sunshine.
Carl
04-02-2015 | 06:15 PM
#3414
ready for mo money
Joined: May 2013
Posts: 84
Likes: 0
From: Left Behind
I'm a shareholder, I didn't get their opener.
Yeah, and at NWA we never led at anything either... In fact we never got close to DAL rates.
Again, you have no idea why DALPA has decided to not share management's opener with us.
At NWA, we saw our detailed opening position and management's opener. We were also a responsible bargaining agent. The truth is, DALPA refuses to bend on it. Your attempt at making it sound like normal behavior betrays the lack of confidence in the position DALPA is now wed to.
At NWA, we saw our detailed opening position and management's opener. We were also a responsible bargaining agent. The truth is, DALPA refuses to bend on it. Your attempt at making it sound like normal behavior betrays the lack of confidence in the position DALPA is now wed to.
04-02-2015 | 06:53 PM
#3416
Gets Weekends Off
Joined: Jul 2009
Posts: 1,044
Likes: 3
From: Lowest Pay I Could Find
I don't GAS where you work....but you are not a seniority list delta pilot. Who cares. Not me. Ask me your question and I will answer it.
04-03-2015 | 02:14 AM
#3419
Line Holder
Joined: Oct 2013
Posts: 38
Likes: 0
From: Capt
Wow...
What a bunch of diverse BS...Our pilot group wants and needs compensation commensurate with out sacrifices...period! Unfortunately I have to exempt those who did not sacrifice, so I have no choice but ignore the voices of the newbys...they did not sacrifice.
As for the rest of us: get real! We want a better package! Profit sharing is just what it describes...SHARING what management happens to create as profits. It IS NOT part of our normal compensation! It can be thousands or it can be ZERO...and it is not our choice! But it is a result of out sacrifices! We may get it OR we don't...we have no control over that bit of money that is presented to us!!!
Treat it as such! We are "Sharing" in the success of our company based on the fact that we took pay cuts to create those profits that they now want to count as part of the compensation that we gave up! I want pay rates commensurate with our contribution...and I consider us lacking in that arena!
P.S. When they give us back the millions we lost in pension payments...we can talk "equitatable compensation"
LP
What a bunch of diverse BS...Our pilot group wants and needs compensation commensurate with out sacrifices...period! Unfortunately I have to exempt those who did not sacrifice, so I have no choice but ignore the voices of the newbys...they did not sacrifice.
As for the rest of us: get real! We want a better package! Profit sharing is just what it describes...SHARING what management happens to create as profits. It IS NOT part of our normal compensation! It can be thousands or it can be ZERO...and it is not our choice! But it is a result of out sacrifices! We may get it OR we don't...we have no control over that bit of money that is presented to us!!!
Treat it as such! We are "Sharing" in the success of our company based on the fact that we took pay cuts to create those profits that they now want to count as part of the compensation that we gave up! I want pay rates commensurate with our contribution...and I consider us lacking in that arena!
P.S. When they give us back the millions we lost in pension payments...we can talk "equitatable compensation"
LP
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