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-   -   LCAL Profit Sharing 2011 Possibility (https://www.airlinepilotforums.com/united/63999-lcal-profit-sharing-2011-possibility.html)

EWRflyr 12-11-2011 05:33 AM


Originally Posted by APC225
UAL gets profit sharing by contract in perpetuity, CAL is by "agreement." Last year UAL pilots got 5.9% of W2, CAL got 3.9%. A $6400 check at UAL becomes a $4300 check at CAL. Good on UAL for getting it.


Originally Posted by APC225
Plus, the profit set aside through 3Q2011 already exceeds all of 2010. If 4Q2011 holds up, the profit sharing pool will be 20% more than last year. I don't know how the UAL contract is written, but this 20% should increase CAL pilots to about 4.5% of W2 because the TPA basically pulls the CAL pilots into the current plan for the rest of the CAL employees.

First, let me point out you are comparing apples to oranges.

The Continental Airlines Employee Profit Sharing Plan prior to January 1, 2011 was based on a completely different formula method. This is not just pilots but all employees. Our profit sharing for 2010 and earlier was based on varying percentages at different thresholds of profit. As an example: 25% of the first $250 million, 20% of $250-500 million, 15% of the next XXX, etc. I no longer have the prior plan document so I don't know the exact percentages and income levels. These are examples.

If I am not mistaken, UAL during that time, along with DL, was using a flat 15% on all profits. United earned more than Continental for 2010 and thus had a bigger profit sharing pool even with the flat 15% level.

Last year after the merger was approved, one of the things management announced was an alignment of the new profit sharing plan starting January 1, 2011. It calls for the flat 15% of prior year's profits to be put into the pool for distribution.

Various percentages of W2 in the past won't really mean anything going forward considering we have gone from two vastly different profit sharing plans to one uniform plan.

APC225 12-11-2011 07:29 AM

EWRflyr, thanks. Aren't UAL pilots covered by their own CBA? I didn't realize theirs had been substituted by the TPA. Both estimates are guesses on my part based simply on last year's and this year's numbers.

A320 12-11-2011 10:02 AM

Wouldn't be the first time the UAL MEC had side lettered around the CBA and gave something away.

Coach67 12-12-2011 05:08 AM


Originally Posted by APC225 (Post 1100092)
EWRflyr, thanks. Aren't UAL pilots covered by their own CBA? I didn't realize theirs had been substituted by the TPA. Both estimates are guesses on my part based simply on last year's and this year's numbers.


You are correct that UAL pilots are covered by their own Profit sharing Plan that still exists in their CBA.


Exhibit C {of LOA 05-02 UAL CBA}
Profit Sharing
Effective Date of Profit
Sharing Plan
Profit Sharing Pool In the event that the Company has more than $10 million in Pre-Tax Earnings in the relevant calendar year, 7.5% of Pre-Tax Earnings in 2005 and 2006 and 15% of Pre-Tax Earnings in each calendar year thereafter.

Pre-Tax Earnings UAL consolidated net income as determined in accordance with GAAP, but excluding (i) consolidated federal, state and local income tax expense (or credit); (ii) unusual, special, or non-recurring charges, (iii) charges with respect to the grant, exercise or vesting of equity, securities or options granted to UAL and United employees, and (iv) expense associated with the profit sharing contributions.

Eligibility All domestic employees of UAL Corp. or United Airlines, Inc. (including all pilots) who have completed one year of service as of December 31st of the year for which Pre-Tax Earnings are being measured.

Allocation For each eligible employee, a pro rata share of the Profit Sharing Pool for each calendar year based on the ratio of the employee's Considered Earnings for the year to the aggregate amount of Considered Earnings for all eligible employees that year.


The T&PA didn't make any changes to the UAL Profit Sharing Plan. It did however change the CAL Profit Sharing Plan which had expired.


Section 8 {of T&PA}
Continental Profit Sharing
Continental Pilots will participate in the Continental Profit Sharing Plan adopted on February 17, 2010, in accordance with the terms of that Plan, for calendar year 2010.

The CAL pilots are only covered for the 2010 year not the 2011 year since their provision in their CBA expired. That's their rub as I understand it. There would be a possible violation of the Status Quo if any employee group (ie CAL pilots) were given additional compensation outside of their CBA (without agreement by the parties thru an amended T&PA). Reference the ATLAS Air pilots and Polar Air pilots in their quest for a merged JCBA.


Originally Posted by A320 (Post 1100154)
Wouldn't be the first time the UAL MEC had side lettered around the CBA and gave something away.

The UAL-MEC didn't change the current Profit Sharing in the current UAL CBA which is why UAL pilots are still getting it and CAL pilots are not..

APC225 12-12-2011 08:08 AM


The T&PA didn't make any changes to the UAL Profit Sharing Plan. It did however change the CAL Profit Sharing Plan which had expired.
That was my understanding.

Coach67, I agree there is problem with giving one group a check beyond their CBA while everyone else has to live within the bounds of their contract. And it's not just the pilots. Anyone can make the same complaint.

It is shameful that CAL pilots voted in the contract that they did, including sunset of profit sharing, no snap backs, PBS--you name it, but they did. At some point they've got to stop working around the margins and just stand up and go get a real contract.

MXDUDE 12-12-2011 11:02 AM


Originally Posted by APC225 (Post 1100539)
That was my understanding.

Coach67, I agree there is problem with giving one group a check beyond their CBA while everyone else has to live within the bounds of their contract. And it's not just the pilots. Anyone can make the same complaint.

It is shameful that CAL pilots voted in the contract that they did, including sunset of profit sharing, no snap backs, PBS--you name it, but they did. At some point they've got to stop working around the margins and just stand up and go get a real contract.

It's shameful UCAL mgmt won't negotiate in good faith for a new contract. Both pilot groups are fighting with both hands tied behind their back, and mgmt knows this. Quit blaming labor for mgmt's lack of leadership (and for that matter ALPA's leadership). Contract 02' is a disaster, but unless you were on property here at the time move on.

APC225 12-12-2011 11:55 AM


Originally Posted by MXDUDE (Post 1100632)
It's shameful UCAL mgmt won't negotiate in good faith for a new contract. Both pilot groups are fighting with both hands tied behind their back, and mgmt knows this. Quit blaming labor for mgmt's lack of leadership (and for that matter ALPA's leadership). Contract 02' is a disaster, but unless you were on property here at the time move on.

I was and management's behavior is shameful--and completely expected--because their bonuses are not based on shame.

MXDUDE 12-12-2011 01:07 PM


Originally Posted by APC225 (Post 1100648)
I was and management's behavior is shameful--and completely expected--because their bonuses are not based on shame.

" I was" ? did you find greener pastures? I don't mean to get personal, but when people Monday morning quarter back it gets to me. The last 12 years has been a very trying time for labor.

APC225 12-12-2011 01:20 PM


Originally Posted by MXDUDE (Post 1100632)
unless you were on property here at the time move on.


Originally Posted by apc225
I was


Originally Posted by MXDUDE (Post 1100676)
" I was"?

Huh? How else would you reply to "unless you were on the property at the time"?

Yea, let's move on.


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