Alan Shore

Good back-of-the-napkin math, my fellow flamingo. I agree.

Timbo

Here's my 'go to' litmus test when it comes to major changes in our contract or the way we get paid:

Who asked for it?

If Management asked for it, it is a benefit to them, not us, just like PBS and/or opening early, to reduce our profit sharing, just prior to record earnings.

sailingfun

Kind of odd however how they asked to reduce the profit sharing. The way they did it was essentially a fixed amount and would have the greatest impact in times of small earnings. With the projected earnings this year it seems they made a big mistake.

Carl Spackler

First of all, they didn't "ask" for anything. They told our guys this is how it's going to be...or you're not going to like what plan B is. Second, how is it odd? They knew their profits were going to be strong for the duration of our contract, so they said we must accept getting it cut in half. We said, oh yes sir Mr. Anderson. Nothing odd at all here at Delta.

It was not a fixed amount..."essentially" or otherwise. The reduction we accepted was 50% above ~2.5 billion. That makes the reduction variable depending on the amount of profit above ~2.5 billion.

They sure did. I'm certain they're thinking now they should have demanded 0% profit sharing above 2.5 billion...or watch out for plan B. Our guys would have said, oh yes sir Mr. Anderson. Big tactical mistake by Richard, and one he won't be making again.

Carl

Alan Shore

Proof, please, as this is not at all what I heard from my reps.

What on Earth are you talking about here, big guy? The employee group went from 15% of PTIX below $2.5B to 10% of PTIX below $2.5B. We still get 20% of PTIX above $2.5B.

I agree that the reduction is variable, but it ranges from zero (if Delta has zero or negative PTIX) to $125M (if Delta has at least $2.5B PTIX), and we lost about 35% of that amount. But we all still share in the same 20% of PTIX above $2.5B.

Carl Spackler

The reps didn't negotiate C2012, the NC and certain MEC administrators did. Those guys posted here (and stated during road shows) that this was the best we were going to get and that we would not like plan B if the pilots voted it down.

My apologies, I got that reversed in my head. I said above 2.5 when I should have said below.

Apologies again.

Carl

johnso29

So in one post you claim the NC didn't ask for anything. They were simply TOLD what the deal would be. Then in the following post you state that the NC and certain MEC administrators negotiated the deal. So which one was it? Did they negotiate? Or did they just wait for something to be passed across the table, and then accepted it?

Carl Spackler

That's correct.

That's correct.

When you're in the room to negotiate a deal, and hold the titles of being members of a negotiating committee, then your activities are considered to be that of negotiations...even if you just do what you're told by the "opposing" party.

Don't know if they waited. Just know they accepted what was passed across the table to them because they knew what management's Plan B would be if they didn't. But hey, time value of money and not angering our partner is important.

Carl

johnso29

So to summarize your post, you have absolutely no proof that negotiating didn't occur. Thanks for clarifying what was already known.

Carl Spackler

Oh there absolutely was negotiations. Here's a video from it:





Carl