Negotiation sessions scheduled

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09-02-2016 | 07:26 PM

#111

BobZ

Gets Weekends Off

Joined: Jun 2015

Posts: 4,116

Likes: 1

Quote:

Originally Posted by Tanker1497

Great point BobZ...Industry standard pay should be achieved without blinking an eye, just because Delta is in the game. Any "unlocking" value should be further rewarded with tangible gets. As to PS, how much does it pay when there is no P? I'm with you, pay the bills based on tangibles. If the P is there, everyone benefits, and I'll use that money to buy the next toy...maybe a high performance wake board boat!

its helpful in my mind to view the ps as a huge block of dividend paying stock in the business. for which we paid a dear, dear price to obtain.

in good years the dividend check shows up in feb.....in bad....it wont. and if the business folds? well that is that.

in the meantime? we have a day job....and wondering if the boss pays us fairly for making widgets .....is an entirely different calculation

09-03-2016 | 11:14 AM

#112

notEnuf

Racketeer

Joined: Mar 2015

Posts: 13,332

Likes: 820

From: N60.4858 W149.9327

Quote:

Originally Posted by FL370esq

No one said to set PS at zero but it is clearly a variable out of our control. If we turn a profit, great, if not, well...we should still have industry leading pay after these negotiations. Why (and how) do we have to place value on a variable? It should be a disbursement over and above to compensate and motivate for windfalls.

This is a cyclic industry with huge variables. Oil, weather, IT meltdowns, stupid management decisions...any and all of which can affect the profit margin. Hopefully we had our one and only "Black Swan" event on 9/11 but I still believe in the business cycle and it isn't always going to be upward. Not sure when it comes down but it will correct itself. It always does.

The last paragraph proves the value of profit sharing. Through all of these "variables" we have continued to make record breaking profits. The business is diversified and de-levered. This is not your fathers airline. The bankruptcy reset was more than just pilots. The business was reset to be a true business that is positioned to weather cyclicality. The entire industry is moving in this direction and Delta is years ahead of the competition.

The "black swan" will come and Delta is best positioned to grab it by the neck. We already have. $4 billion lost on fuel and posted never before seen profits. Pension fund is projected to be a net gainer. Debt levels are at record lows, and bond ratings are investment grade only 9 years removed from bankruptcy. United and American are vulnerable with debt and little diversification. We don't need to out run the bear, just the other runners.

https://www.sec.gov/Archives/edgar/d..._8k-ex9901.htm

Last edited by notEnuf; 09-03-2016 at 11:26 AM.