TWU merger agreement

[jersey777]

The worthless union traded most of the profit sharing for the current bankruptcy agreement. AA offered 15% of first dollar profits, pilots traded away 10% for slightly higher pay and thanks to the me-too provisions, everyone else only got 5% of first dollar profits. I believe that the pilots also gave away their 5% for their MOU. So the AA unions, including the worthless union, give away any potential to share if things turn out profitably.

Meanwhile, over at DL, the employees will share $372 million in profit sharing plus $91 million in "Shared Rewards" (monthly/quarterly performance goal rewards) for a total of $463 million. According to WT, the profit sharing portion equals a bonus of more than 6% of Delta's W-2 wages.

Once you guys vote out the TWU and vote in AMFA, perhaps some competent negotiators will reclaim some industry-leading profit sharing.

Not so sure how much the profit sharing was worth. I think the TWU along with the APFA were sold on profit sharing which was alledged to be up to 5% of salary but yet was 5% of a fund put into profit sharing which equaled about $800 per person on a billion dollars profit.....look it up.

 

[1AA]

Funny how profit sharing started out being a company benefit to all employees. Somehow it ended up in negotiations as a pawn. How sad........

 

[jersey777]

I found a copy of the current profit sharing:


PROFIT SHARING PLAN
American’s approach to restructuring looks ahead to a point where our airline emerges a strong and
profitable company in which our people directly benefit from the company’s success.

Our agreements with the TWU and APFA, as well as changes with our Agents Representatives and
Planners, provide for a first-dollar profit sharing plan that, in contrast to our current plan, ensures a payout
in any year the company realizes a profit. We can achieve consistent profits with the right business plan
and cost structure, as demonstrated by our industry competitors that have gone through restructuring.

For our Flight Attendants, Agents, Representatives, and Planners, and TWU-represented employees, we
will implement a revised profit sharing plan on Sept. 12, 2012, that will set aside 5 percent of pre-tax
income after the first dollar of profits into a fund. Those profits will then be equitably distributed to
employees based on each individual’s eligible earnings.

The company initially proposed profit sharing of 15 percent for all of our people. However, we reallocated
some of the proposed profit sharing income to increase pay rates to address the concerns and priorities
that matter most to our Flight Attendants, Agents, Reps and Planners, and our TWU-represented
employees. We were able to do so because the company is confident in our business plan and the profits
it will generate. Maintaining employee participation in the profit sharing plan is also a priority, as all
employees should benefit from the future success of American.

For example, if American were to earn $750 million in profit, the percent the employee receives
would be approximately 1 percent. For an employee making $50,000 that would be $500.

 

[AANOTOK]

Funny how profit sharing started out being a company benefit to all employees. Somehow it ended up in negotiations as a pawn. How sad........

Exactly!!!

 

[robbedagain]

if us' ramp goes to the twu what would happen to the us employees who have a pension with them

 

[amt66]

Where can we find a US.Air mechanics seniority list?

If your not in the top 3000 to 4000 start looking for a job! Tulsa will close within two years. We have been sold out once again

As far as travel sen that blows should be first come first served on stby list like AA has. Hopefully they will keep our system

 

[FWAAA]

In a couple of weeks, DL will pass out profit sharing checks equal to $372 million based on 2012 profits:
http://news.delta.com/index.php?s=43&item=1848

Last year, DL distributed $264 million based on 2011 profits:
http://www.startribune.com/business/139097399.html?refer=y

And in 2011, DL handed out $313 million based on 2010 profits:
http://www.ajc.com/news/business/delta-to-share-profits-with-workers/nQqbR/

That's a total of $949 million in profit sharing paid since February, 2011, in addition to approx $200 million in on-time/performance bonuses paid throughout the year. If you're going to go thru bankruptcy and take painful concessions, at least secure some of the spoils in case the concessions result in a profitable business.

 

[AANOTOK]

If you're going to go thru bankruptcy and take painful concessions, at least secure some of the spoils in case the concessions result in a profitable business.

Exactly!!!

 

[jersey777]

Your joking right?



" If you're going to go thru bankruptcy and take painful concessions, at least secure some of the spoils in case the concessions result in a profitable business."


Did you read what I wrote and where have you been the last 5 years? You make it seem that all you have to do is ask and you shall receive.


Here is how the profit sharing was presented before we voted for the LFBO:


 Profit
Sharing
Eliminate current profit sharing plans and
the operational and financial components
of the Annual Incentive Plan (AIP), and
replace with new Enhanced Profit
Sharing plans.*

Eliminate current profit sharing plans and
the operational and financial components
of the Annual Incentive Plan (AIP), and
replace with new, modified Profit Sharing
plans. Beginning at the first dollar of pre-
tax income, the new Profit Sharing plan
would pay awards equal to 5% of all pre-
tax income, prorated to take into account
any groups of frontline employees who
do not participate in the plan. Pre-tax
income for the purposes of these awards
will be calculated prior to the effects on
income of any special, unusual, and non-
recurring items or incentive pay.



Where do you read that 5% would be put into a "fund" vs 5% of pre tax profit?




My point contents that the TWU gave its members more money then what they had....yet they don't even recognize when something better comes their way because they are so intent on bitching about the TWU.

 

[1AA]

This is why we need Amfa in here before this is final. The twu sold us out and surrendered. The twu will not do anymore to fight like hell. They just passed the Paton over to the iam.

If your not in the top 3000 to 4000 start looking for a job! Tulsa will close within two years. We have been sold out once again

As far as travel sen that blows should be first come first served on stby list like AA has. Hopefully they will keep our system

 

[Tex-Mech]

One thing that hasn't been pointed out here is that by the TWU givng away the profit sharing for the 4.3% raise, they stand to make approx. $50,000 a month more in dues from all the twu groups that they wouldn't of gotten from the profit sharing. It's about $24k a month from M&R ($30k for teamsters). The internationals cut from all of the groups would be about $180k a year, or enough to appoint another helper at the ATD. :huh:

 

[FWAAA]

Your joking right?



" If you're going to go thru bankruptcy and take painful concessions, at least secure some of the spoils in case the concessions result in a profitable business."


Did you read what I wrote and where have you been the last 5 years? You make it seem that all you have to do is ask and you shall receive.

You didn't even have to ask. Management offered 15% First dollar profit sharing a year ago when it handed over the term sheets. The pilots succeeded in negotiating that down to 5% which was in each of the LBFOs and now they've negotiated away the remaining 5%. It's one thing if the pilots want to give away their own profit sharing, but the other two unions went along with it thinking the "me-too" clause actually made them better off.

Perhaps history will show that the AA employees struck the correct bargain (zero profit sharing). If the new AA fails to earn profits, then the employees won't be losing anything. Of course, if the company fails to earn profits, the writing's on the wall and Bankruptcy Part Deux awaits.

It's really pretty simple. Consistent profits = much smaller chance of another bankruptcy (and corresponding concession demands). Thus, it would logically follow that most employees not looking to bail in the short term would prefer working for a profitable airline. If you're going to work for a profitable airline, getting a payout of several thousand dollars a year, on average, is desirable (like DL's employees have received three years in a row).

 

[jersey777]

The thing is that we took less deductions in pay , medical, and a slew of other concessions in place of the 15% profit sharing and then settled for 5%. Then we got screwed because the 5% profit sharing was not based on actual earnings but turned out to be 5% of whatever amount AA decided to put into a profit sharing fund. Read my above posts....written by AA...and see my point. $500 profit sharing for an employee making $50,000 if AA makes $750 million? Please, we make more money now with their AIP program.

 

[AANOTOK]

Didn't see anything in the MOU about early out options

 

[FWAAA]

One thing that hasn't been pointed out here is that by the TWU givng away the profit sharing for the 4.3% raise, they stand to make approx. $50,000 a month more in dues from all the twu groups that they wouldn't of gotten from the profit sharing. It's about $24k a month from M&R ($30k for teamsters). The internationals cut from all of the groups would be about $180k a year, or enough to appoint another helper at the ATD. :huh:

I hadn't even thought of that angle. Profit sharing doesn't increase dues revenues, but slightly higher hourly guaranteed wages do increase dues revenue. What a great feeling it must be to have "agents" working for you who enrich themselves by trading away what might be a lot of money for you.

The thing is that we took less deductions in pay , medical, and a slew of other concessions in place of the 15% profit sharing and then settled for 5%. Then we got screwed because the 5% profit sharing was not based on actual earnings but turned out to be 5% of whatever amount AA decided to put into a profit sharing fund. Read my above posts....written by AA...and see my point. $500 profit sharing for an employee making $50,000 if AA makes $750 million? Please, we make more money now with their AIP program.

The bolded portion of your post is inconsisent with what you posted earlier. It wasn't 5% of whatever AA arbitrarily decided to give the employees. From your post #24 above:

Beginning at the first dollar of pre-tax income, the new Profit Sharing plan would pay awards equal to 5% of all pre-tax income, prorated to take into account any groups of frontline employees who do not participate in the plan. Pre-tax income for the purposes of these awards will be calculated prior to the effects on income of any special, unusual, and non-recurring items or incentive pay.

Quite clearly indicates that the profit sharing abandoned by the AA unions would have paid 5% (and previously, before the pilots gave theirs away, 15%) of pre-tax profits, excluding special items. That means that if AA had a big profit but a huge non-cash writeoff, that writeoff wouldn't affect the profit-sharing. You've posted the AA example a couple of times, but here's a better example:

Delta just reported more than $2 billion of profit (excluding special items and their AIM awards) for 2012 and the result will be $372 million in profit-sharing checks in about two weeks. The payouts will be more than 6% of W-2 wages, on average (except for PMNW FAs and ground employees, who will get much less). So at DL, a $50,000 wage employee will get more than $3,000 in profit sharing (plus the periodic AIM-type bonus awards). AA's employees haven't seen profit-sharing on that magnitude since early 2001 (based on 2000 profits) and because your unions have now given away all profit sharing, you're unlikely to ever see payouts like that again, even if AA is wildly successful.

Like ususal, management won't be so shortsighted as to trade away their profit-sharing and variable pay plans, enabling the rank and file to #### and moan when the inevitable huge payouts to management occur.