Profit sharing checks cut early

[Kev3188]

I said employee-borne costs are going up. You agreed in a following post.

Please start "close reading" what I post. It'd save a lot of heartburn all around.

 

[Kev3188]

You do realize in most CBAs there are caps on healthcare cost increases, does DL have that for their non-union employees?

They do not...

 

[WorldTraveler]

no, there are not caps on the increase in the costs. There may be caps on what can be passed along to employees but it is an artificial cost increase and you will pay for it elsewhere. Companies don't just eat cost increases - whether it be for their employees or their fuel suppliers or to Boeing and Airbus. Someone pays.

You think that you are getting something for free when health care costs go up.

You aren't.

Airlines don't provide health care. They buy the service.

They can give you time off and it is their internal costs. Health care is a purchased service.

What you think you are saving in capped costs (which really aren't capped at all), you are losing somewhere else.

Further, I can absolutely assure you that the difference in total compensation including profit sharing and performance incentive payments between DL and its network peer employees is far higher in favor of DL employees.

 

[WorldTraveler]

sorry but I asked

Tell me ANYONE who has maintained their same amount of out of pocket expenses. Maybe the less than 2% of Americans who have totally free health care coverage.

you raised your hand

and then

Sorry.... but I asked

I said employee-borne costs are going up. You agreed in a following post.

Please start "close reading" what I post. It'd save a lot of heartburn all around.

If DL's employee-borne costs are going up but your out of pocket expenses are going down, then the answer is that you are using less health care.... which most would see as a good thing.

Doesn't change my statement that health care costs are going up across the board for American workers. If you are healthier and/or are using less health care coverage, then that is great news and should be reason for rejoicing.

 

[Kev3188]

If DL's employee-borne costs are going up but your out of pocket expenses are going down, then the answer is that you are using less health care.... which most would see as a good thing.

...Or that I no longer have insurance through DL.

Less cost, better coverage. That is a good thing.

 

[WorldTraveler]

ah, yes. and that is the free market working. and it is indeed a good thing. Congratulations.

There have been a number of employees who have shifted coverage to their spouse since that is how most employees are able to drop their employers insurance. Some plans require that if your spouse can get coverage from their employer and choose to get it from your plan, there is an extra charge. that is also the free market working.

If someone can make the math work, by all means do so.

And it still says that whatever costs you shift off of DL, the more you will improve their profits. If you stand, theoretically, to get more profit sharing from your employment than your spouse's or your insurance costs are less as a single from another plan, then there is an incentive to shift costs to them and away from where the free market will reward you with profit sharing for reducing costs and increasing their revenues.

I'm sure you have made a wise choice and I hope you are healthy regardless.

 

[700UW]

You do realize most large corporations are self-insured and the insurance companies handle the paperwork and money.
 
At US we were self-insured and at PM USA we were and we had a hard cap of 10% increase only allowed per year at PM USA, Philip Morris paid 90% of the cost and the employee paid 10% at Freightliner we had no monthly costs for health insurance and we had a top of the line CIGNA plan.

 

[WorldTraveler]

yes, I know that but it doesn't change that airlines don't provide health care coverage. It is a cost to them to provide coverage to their employees. The fact that they pay the costs directly from their own pockets argues even more that there is no such thing as capped costs. They pay it.

They will also pass on the cost. The notion that they will absorb a cost that is given to them is not correct.

Health care is an employee benefit and companies aren't willing to write larger and larger checks to employees. They will find other ways to reduce employee costs. They don't expect customer service or fuel costs to be cut so the company can pay health care costs.

 

[700UW]

So you dont believe that CBAs can and do contain a clause with a cap on increases?
 
Then you really have no idea, because I worked under them.

 

[WorldTraveler]

No, you succeeded at capping a part of what you had to pay but you paid for it elsewhere.

If you think you really capped the company's costs and they absorbed those increases for you because you had a CBA, then you truly don't have a clue about how businesses operate. Hate to be harsh but that is the reality.

Companies don't just absorb costs, esp. for a purchased product for their employees. They know how much they are going to allow for total compensation and if one part of the cost goes up, then they take the cost from someplace else... and if a CBA is too rigid to allow them to shift the costs, the employees under the CBA will pay for it down the road - with interest. We have seen that happen repeatedly in the airline industry.

Airlines don't absorb increased health care costs just because there is a CBA... they "loan" the increased costs to the employees who pay for it later.

that is a fact.

 

[Glenn Quagmire]

...The leading response right now is "pay bills."...

Congratulations Delta employees, enjoy the ride while it lasts. I hope it continues.