At $1.2 billion, the employees would get 15 percent of $700 million, or about $105 million.
In other words "At $1.2 billion, the employees would get about $105 million, which is less than 10% of the profits".
Then tell us, please, what percentage of the profits
should the employees receive, since 15% of the excess over $500 million is too small, according to you.
I suppose 100% is the correct answer.
AA borrowed about $3 billion from mid-September, 2001 thru April, 2003, to pay wages when expenses greatly exceeded revenue.
If you wanted all the profits, you should have bought all the stock. And if you wanted more than 15% of the excess over $500 million, you should have negotiated for it.
Sounds like there's not much consensus on profit sharing in the ranks:
TWU Informer posted above that he prefers guaranteed pay over variable potential pay.
Management employees (stupid as they are) generally like the possibility of variable compensation based on profits or stock price. Usually because it pays off - in a big way. Like the PUP payments of which you all now complain.
Hopeful said:
AA's money was no good to the APA when they had to withdraw their route application for China's Beijing route.
Oh, come on, now. I'm the most vocal cheerleader here, but even I could see that DFW-PEK was a loser from the get-go. Yet another huge management blunder in not applying for ORD-PEK (which might have had a fighting chance).
The APA didn't have anything to do with AA losing the 2007 frequncy lottery. Just another management attempt to divert attention from its mistakes.