Eric,
Your equation doesn't hold water, indeed. The East operation was responsible for at least 70% of that profit being that the East operation is much larger than the West. Wouldn't you agree?
Here is the East f/a contractual formula during concessionary bargaining: (not the West)
10% of the Company's pre-tax year end profits go into the profit sharing pool for all labor groups.
AFA portion of the pool is 14.5%. This figure is established by the percentage of the annual average concessions AFA gave in relation to the total concessions given by all labor groups.
Each individual Flight Attendants share is determined by such Flight Attendants gross W-2 earnings divided by the gross W-2 earnings of all eligible Flight Attendants.
That factor is divided into the amount of money in AFA's share of the profit pool and the result is each individual's share of the profit pool.
This is a quote from the East MEC President, Mike in an E-line yesterday:
AFA average annual concession amount is $154.7 million. The total average annual concessions by all labor is $1.082 BILLION meaning our part of the total concessions is 14.5%
14.5% of $30 million is $4.35 million. Let's stop right there for a minute and examine that figure a bit more closely. We made an investment in the salvation of US Airways which led to the merger which led to the profit. We gave up an annual amount in excess of $154 million in pay, benefits and work rules and will get back in return only $4.35 million. That, my friends is only a return of 2.82% on our annual investment of $154 million. I can do better than that on a six-month Certificate of Deposit at the Credit Union.
He goes on to write:
"Since the individual profit share amount is based on each Flight Attendants gross W-2, I will, for simplicity, assume we all make the same amount - let's say $ 35,000 per year and use a figure of 8,000 total Flight Attendants. Each individual share would, all things being equal, be $543.75 before taxes ($4.35 million divided by 8000). It is true that this is $543.75 (before taxes) more than each of us has now but hardly an adequate return on our investment.
We deserve more and will expect nothing less. We will share in this merger or there will be no real merger.
This example is illustrative in nature and does not factor in two components in determining each share. The first is obviously everyone will not have the same year end W-2 amount. The second is that AFA has the latitude to determine whether those Flight Attendants who had W-2 earnings during the year but retired or took the VFLR are to be considered eligible. The MEC will meet in late August to consider that question.
Where in the f/a East E-line did he say that the East MEC voted earlier this year to take that 14.5% of the profit sharing pool and share it with 3,000 more f/as from the West????
Answer: No where.
And the f/a amount of concessions was just for concession #3. This amount does not include the other two previous concessions. The profit sharing % was only negotiated for the concessions give in #3. So, you can see, the MAJOR sacrifice given by the East driven by a whopping $1 billion more for this particular concession.
I suggest the f/as write to their LECPs on this one and ask for their logic in voting to subject the East to yet another concession for the sake of this merger of labor leaving the company off the hook to negotiate a separate West profit sharing.
Here is the easy way to understand what happened in laymen terms...I'd rather split a lotto pot of 4 million with 5,000 people rather than 8,000.
Wouldn't you agree?
Keep in mind that certain select MEC members have a much larger W-2 as the real kick in the butt. Could the ETB flying be included in this total W-2?
I should just not even look at this crap anymore its just so fruastrating to view...and it angers the hell out of me that the f/as from the East are still expected to continue to give these kinds of concessions with no real thought of the financial impact it has.