Change in PTIX formula?
 

Why did they change this. After reading something from ALPA, I get the feeling the change us actually bad for us. I don't understand it. Does it let Delta manipulate our profit sharing payouts going forward?

Where are you getting the idea they can manipulate the payouts? The only thing that has changed is the threshold from a 10% payout to 20%. It increased from $2.5B to $6.0B. As far as I've read, they dates and method of payment remain unchanged.


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That is incorrect. There is a change to the way PTIX is calculated. This is totally separate from the 2.5B to 6.0B 20% profit threshold.

I have talked about this with a few guys and it basically waters down our PS amount. The question is how much? I have heard figures ranging from 1-3%. I don't really know if this is 1-3% of our total PS pool or a 1-3% reduction on our actual PS number. For example last year was about 16%. So would it mean that number is lowered to anywhere from 15-13%?

I have no idea if this will allow them to manipulate the PS pool. Just another concession buried in this TA.

Scoop

That's interesting because I have the entire TA in my possession that shows the changes and it says nothing about this.


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I need to read it more thoroughly but in essence management compensation and bonuses are pulled out from the top line amount of profit. Then any expenses associated with running the profit sharing program are pulled. Then this DECREASED number is our profit that will be calculated and distributed to the employees.

Nice that management gets theirs first, huh?

Just one more severe and unnecessary concession DALPA is trying to gloss over.

Yes its in there but in very legalese language. Its also one of the bullets in the initial dalpa bullet paper. Definitly should have been in the begotiators notepad on compensation. I wonder what else their not telling us.

EXECS GET THEIRS FIRST

Thats right. Executive Compensation will now be calculated before our Profit Sharing; reducing our Profit Sharing. You can't make this stuff up.

Do some quick napkin math. How much do you think the top 30 executives @ Delta earn? RA alone makes what, close to $15 Mil with dozens of others hauling in north of 7 figures. I wouldn't be surprised if it takes $50,000,000 - $75,000,000 out of the pool which results in tens of millions less per year in our pockets. Another hidden turd.

Here are the relevant pages. I like to trust but verify. Please, someone educate me on legalese.

http://images.tapatalk-cdn.com/15/06...16eeeec590.jpg

http://images.tapatalk-cdn.com/15/06...e21d8a9325.jpg


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It's on page 3-2 and reads (I used blue to indicate the items struck out, but the change here is item "b" in 2015, doesn't appear in item 2016 indicating to me that executive equities etc will be subtracted from the pool of potential profit to be shared):

10. “Pre-tax income” (PTIX) means, for any:
a. the calendar year 2015, the Company’s consolidated pre-tax income calculated in accordance with Generally Accepted Accounting Principles in the United States and as reported in the Company’s public securities filings but excluding: a) all asset write downs related to long term assets, b) gains or losses with respect to employee equity securities, c) gains or losses with respect to extraordinary, one-time or non-recurring events (including without limitation one-time transition or integration costs incurred in connection with the merger of the Company and Northwest Airlines Corporation during the two year period following the merger),, and d) expense accrued with respect to the profit sharing plan., and

b. the calendar year beginning on January 1, 2016, and each calendar year thereafter, the Company’s consolidated pre-tax income calculated in accordance with Generally Accepted Accounting Principles in the United States and as reported in the Company’s public securities filings but excluding: a) all asset write downs related to long term assets, b) gains or losses with respect to special, unusual, or nonrecurring items, and c) expense accrued with respect to any employee profit sharing plan, program or similar arrangement.

Ok. It says PTIX excludes those extra expenses, so the amount before those are deducted.


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When I first read this in the TA, I honestly thought it was a pro. Turns out it's a concession. I have no idea what it's going to cost us. Could be 2-3 percent paycut in profit sharing payout on top of the 5.75 percent we are giving up. Don't hold me to this as I really don't know. I'm not sure why this change was made. Maybe so they can pay half the profit sharing in Oct. and that money will not count towards profits? I don't know.

There is a estimate floating around. I saw $0.20 loss of PS for every dollar RA makes or something but would like to see more info.

Note this may be where Credit Susie and Bloomberg came up with their numbers that the company will save more than it spends.