Here is one of the guaratees that the YES vote will provide.
1)It guarantees that you will be earning les six years from now than you are presently.
The agreement call for a 17.5% cut with 5-1.5% increases till 2009. So in 2009 our pay will be 10% lower than it is today without taking into account inflation which has averaged 3%/yr for the last thirty years. So six years from now our salary will likely be 28% less than it is now. Guaranteed.
But what about profit sharing?
Profit sharing only kicks in after $500 million. We are not getting 15% profit sharing. 15% of the profits above $500 million are going into the fund to be distributed among ALL employees. In order for us to get back what we are giving up the company would have to have an annual profit of $27 billion. Thats more than the companys entire combined profits since it was founded.
But what about the stock options?
Options are not a gift. Options are the option to buy stocks at a set price that is independant of the market. In other words if the excercise price is set at $5, you can excersice that option at that price even if its market value is $20 or 2 cents. So the option only has value if the current market price is above the option price.In order to buy these stocks you first must have money though. Normally the options have a 10 year period in which to be excercised. This allows the recipient more time to allow it to gain in value without tieing up his money. He can wait till he feels it is at max value, pay the option price and resell it at current market value for a guaranteed return as long as it has gone up in value during that period. If it does not go up in value he loses nothing. So while the options are a better deal than profit sharing the cost for getting the opportunity to be in the plan is too excessive, the amount of options are limited making it is most unlikely that the $20,000 annual concession that is required will ever be earned back.
1)It guarantees that you will be earning les six years from now than you are presently.
The agreement call for a 17.5% cut with 5-1.5% increases till 2009. So in 2009 our pay will be 10% lower than it is today without taking into account inflation which has averaged 3%/yr for the last thirty years. So six years from now our salary will likely be 28% less than it is now. Guaranteed.
But what about profit sharing?
Profit sharing only kicks in after $500 million. We are not getting 15% profit sharing. 15% of the profits above $500 million are going into the fund to be distributed among ALL employees. In order for us to get back what we are giving up the company would have to have an annual profit of $27 billion. Thats more than the companys entire combined profits since it was founded.
But what about the stock options?
Options are not a gift. Options are the option to buy stocks at a set price that is independant of the market. In other words if the excercise price is set at $5, you can excersice that option at that price even if its market value is $20 or 2 cents. So the option only has value if the current market price is above the option price.In order to buy these stocks you first must have money though. Normally the options have a 10 year period in which to be excercised. This allows the recipient more time to allow it to gain in value without tieing up his money. He can wait till he feels it is at max value, pay the option price and resell it at current market value for a guaranteed return as long as it has gone up in value during that period. If it does not go up in value he loses nothing. So while the options are a better deal than profit sharing the cost for getting the opportunity to be in the plan is too excessive, the amount of options are limited making it is most unlikely that the $20,000 annual concession that is required will ever be earned back.