MikeF16

Ok, I read your excerpt and feel like a dog watching TV. To me, the quoted passage validates what DPA has warned us of, not put it to bed. Extraordinary or 1 time events don't go against PTIX, regular charges do. How is it ok that the company can arbitrarily take a 1-time event and rename it as ordinary? Please explain.

Timbo

I think it comes down to this; are they still using 'Generally Accepted Accounting Principles' or are they changing the way they account for some expenses, that Ed said other airlines write off as 'one time, special expenses'?

Maddogflier

It's simple. The company decides how they want to handle accounting issues not ALPA. The contract decides how profit sharing will be determined. The two are separate issues as can easily be noted by looking at past profit sharing numbers. The company can report these items any way they choose within the law however when calculations for PS are complete they have to back out 1 time events. Here is a clip on the 2014 profits. Note that the actual profit sharing pool of over 1 billion bears no resemblance to the reported profit.
Delta Air Lines reported 2014 net income of $659 million, down 94% from a $10.54 billion net profit in 2013, although the 2014 result reflects a significant special charge related to fuel hedging while the 2013 result included a huge tax valuation gain. Delta’s 2014 net income excluding special items was $2.8 billion, a slight increase over a $2.7 billion net profit excluding special items in 2013.

Even using the 2.8 billion number the PS pool would only have been 260 million.

If people are worried about the amount of PS they should look at the 18.5% increase in non contract wages. That will have a big impact on 2016 profit sharing since it impacts both profit and our percentage of the distribution. It's a double whammy well planned by the company and will reduce your pay 2% or more next year.

BobZ

IOW.... nothing to see here folks.... move along.... management has no intent or history of violating the PWA.....and will always do what is required.... and in our best interest.... and benefit..... and if you rocket surgeons hadn't voted down the Ta the company wouldn't be screwing us on next years PS payout by giving the non contracts a raise.

Oh, and btw, the pension is still fully funded...... alpa and company has told us so.....

capncrunch

Only 3 posts to your account and they are all to tell us there is nothing to see here. Hmmmm

Something is rotten in Denmark.

I'm getting a bit tired of these throwaway accounts that pop up that clearly have an agenda.

BobZ

Btw MDF.....your post assumes the 2016 PWA PS pool will be status quo IN SPITE OF the new and ADDITIONAL PS program the company has now established for the non contracts.

That is a big IF...... unless you have information that our $50m/YR CBA has NO intention of challenging that intention by management.

Maddogflier

I would love to know what Agenda I might have. The contract is clear on the issue. If the company decides to try and reduce the PS by including one time items it will be simple to detect. It might even be a criminal action post Enron. If they try something more nefarious such as keeping two sets of books it would be criminal without question.
They have already reduced the PS payment next year substantially and legally yet no one discusses it. We should be talking about making sure that retro includes recalculating the PS distribution pool to get that money back. We should also be talking about the latest statement from the company which I will post.
There is a thread about the importance of unity. This is clearly a DPA attempt to discredit the union and further divide the pilot group. The sad thing is that before sending it out they were not smart enough to read the contractual definition of PTEX.
In summary here is what you should be discussing!


Item 1. Negotiations Update: Our Negotiating Committee presented the Company with our proposal for re-engaging in Section 6 negotiations this past Tuesday, December 22nd. Negotiators Notepad 15-16 listed the content of the proposal and was sent to all Delta pilots on Tuesday afternoon. Management received our proposal and had no questions. Due to the significant differences between this proposal and the last positions, the Company indicated that a quick resolution was unlikely and that they would take some time to review it. Management made no counter proposal and we expect that they will respond to us in January.

BobZ

That is hilarious.

Anyone with half a brain should recognize by now Alpa needs no help in discrediting either their competence or veracity.

At least now we know what you are about.

I'm guessing the unity imperative is in regards to group cohesion with each other...... and NOT with a $50M/yr CBA who's record would kindly be described as.......disastrous.

If alpa had its way...... we wouldn't even have that NC update to be talking about.....

DALMD88FO

I agree with your assessment about their increase in pay hitting us in the PS check for February 2017, however I don't see how the distribution is changing other than we get more of the 20% pie as it is right now.

Maddogflier

The numbers I will use are not exact. I had this discussion several weeks ago and don't remember exact numbers. The 2016 profit sharing will be reduced two ways. The first is obvious. More pay equals less profit.
The second part has a bigger impact. I have heard various numbers on what 19% in raises equals. It's going to be somewhere around 850 million dollars assuming just over 4.3 billion in current non contract employee costs. Let's say for this year we end up with a 1.4 billion dollar profit sharing pool. The percentage we get of that 1.4 billion pool is the straight percentage of pilot pay verses non contract. Currently we are about 36% so we as pilots would get about half a billion dollars. (Valentine's Day will be nice in 16!)
Fast forward to the 2016 PS calculations and the non contract slice of the pie will be 5.2 billion while we stay exactly the same. I think we are around 2..3 billion. Our 36% of the pool is now reduced To around 30%. On the same 1.4 billion dollar pool we now get 420 million. That's a loss of 80 million or over 3% in pay. The new percentage will be based on the same 2.3 billion for pilots but around 5.1 billion for non contracts. It's a big shift.
I know people are going to say that the non contract profit sharing has changed and it has however in this case our portion will be calculated based on the old formula for everyone so the change has zero effect. The company pockets the reduced payout to the non contract employees. It does not go to us.
My point is we need to insure this is reflected in any retro pay calculations. If the contract takes two years we could be talking a big check. If 2016 profits go up as predicted that 80 million number easily gets up to 100 million and the average pilot sees around a 8000 dollar hit in PS per year.