Profit Sharing

[SKY HIGH]

http://ireport.cnn.com/docs/DOC-555642

Employees at United Continental holding will share 224 million in profit sharing.What the headlines don't say is that the Flight Attendants, United's Front line employees don't get a share of the pie.

 

[WorldTraveler]

http://ireport.cnn.com/docs/DOC-555642

Employees at United Continental holding will share 224 million in profit sharing.What the headlines don't say is that the Flight Attendants, United's Front line employees don't get a share of the pie.

I presume you mean PMUA FAs? Did PMCO FAs? How many of UA/CO's joint employees did not participate in the profit sharing - just PMUA FAs? and did PMUA's FA union fail to negotiate profit sharing as part of their CBA?

Finally, do you have the average percentage that each PMUA and PMCO employee received in profit sharing? Given that DL and the new UA are similar sized in terms of employees, it would appear that DL's profit sharing was richer since they paid out over $300M, even considering that alot of PMNW employees did not receive the same amount as their PMDL counterparts because of unresolved representation issues. IF there were a significant number of UA/CO employees that did not participate in profit sharing then perhaps that would explain the differences.

 

[ua767fo]

Employees at United Continental holding will share 224 million in profit sharing.

There is nothing here about sharing. It is a contractually negotiated benefit equal to about 2 weeks pay.......after the hundreds of thousands of $$ the average pilot has given up.

DENVER, CO

 

[SKY HIGH]

http://ireport.cnn.com/docs/DOC-555642

Employees at United Continental holding will share 224 million in profit sharing.What the headlines don't say is that the Flight Attendants, United's Front line employees don't get a share of the pie.

Being discussed here as well: http://travel.usatoday.com/flights/post/2011/02/united-continental-distributes-224-million-in-profit-sharing-to-employees-/143108/1

kelly
1:28 PM on February 15, 2011
The CO flight attendants were excluded from the profit sharing program in a move by the company in late 2010 that only included them in the program if the tentative agreement was ratified.
It wasnt ratified.

 

[WorldTraveler]

Being discussed here as well: http://travel.usatoday.com/flights/post/2011/02/united-continental-distributes-224-million-in-profit-sharing-to-employees-/143108/1

kelly
1:28 PM on February 15, 2011
The CO flight attendants were excluded from the profit sharing program in a move by the company in late 2010 that only included them in the program if the tentative agreement was ratified.
It wasnt ratified.

was there a provision in the previous CO CBA FA agreement regarding profit sharing? I'm a little lost as to how UA/CO mgmt (which is heavily CO run now) could exclude profit sharing just because the CO FAs did not approve the new tentative contract. The old contract should still be in force until a new one replaces it... unless the CO FA union somehow signed away their rights to profit sharing... help me understand how this happened.

I also read that the UA FAs did receive some sort of profit sharing... it was just direct deposited into their retirement plans (401ks) based on a majority vote of the UA FAs in the past. true or false?

help me understand what has actually happened to both groups..... but it doesn't bode well for labor relations at the new UA, esp. if CO is now playing hardball w/ former CO groups that they generally got along pretty well with.... are there expectations that PMCO people are in for a bumpy ride?

 

[JAMAKE1]

I also read that the UA FAs did receive some sort of profit sharing... it was just direct deposited into their retirement plans (401ks) based on a majority vote of the UA FAs in the past. true or false?

help me understand what has actually happened to both groups.....

You are 100% correct, WorldTraveler. Legacy United F/A's did receive their profit sharing through a disbursement into their 401k accounts. This method for profit sharing was put out for a vote by AFA about 5 years ago, or around the time UAL was emerging from bankruptcy proceedings. At that time, the majority who voted in the special election, elected to have all future profit sharing payments go into each F/A's respective 401k account. Profit sharing would have been taxed as a bonus and subject to heftier tax liabilities so the membership voted to have such payments tax-deferred through disbursements into their respective 401k accounts.

As it relates to the situation with CO F/A's; their FY 2010 profit sharing was contingent upon the work group negotiating and then ratifying a tentative contract agreement. The TA had to be ratified by the time disbursements came due, but the F/A's did not bite. As such, they were not awarded profit sharing when checks were cut for the other CO work groups.

As both IAM and AFA are vying for the right to represent F/A's at the combined carrier, it doesn't exactly send a good message to legacy UAL F/A's that the IAM would draft contract language that made profit-sharing payments contingent upon ratification of a tentative agreement.

I can also tell you that the situation with regard to CO's F/A's has caused a significant morale problem on the CO side with echos that the new United Airlines is not Bethune's, nor Kellner's way of conducting business...

 

[xUT]

The 'SMART' people take stock....

 

[strfyr51]

You are 100% correct, WorldTraveler. Legacy United F/A's did receive their profit sharing through a disbursement into their 401k accounts. This method for profit sharing was put out for a vote by AFA about 5 years ago, or around the time UAL was emerging from bankruptcy proceedings. At that time, the majority who voted in the special election, elected to have all future profit sharing payments go into each F/A's respective 401k account. Profit sharing would have been taxed as a bonus and subject to heftier tax liabilities so the membership voted to have such payments tax-deferred through disbursements into their respective 401k accounts.

As it relates to the situation with CO F/A's; their FY 2010 profit sharing was contingent upon the work group negotiating and then ratifying a tentative contract agreement. The TA had to be ratified by the time disbursements came due, but the F/A's did not bite. As such, they were not awarded profit sharing when checks were cut for the other CO work groups.

As both IAM and AFA are vying for the right to represent F/A's at the combined carrier, it doesn't exactly send a good message to legacy UAL F/A's that the IAM would draft contract language that made profit-sharing payments contingent upon ratification of a tentative agreement.

I can also tell you that the situation with regard to CO's F/A's has caused a significant morale problem on the CO side with echos that the new United Airlines is not Bethune's, nor Kellner's way of conducting business...

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That's actually a pretty good way to handle it. I got mine and incurred a 33% tax penalty after my 7% 401k deduction.
Some of the other unions opted for 1-2% raise and opted out of the profit sharing all together at UAL. I can't say blame them because Senior management can manipulate the revenues any way they please to reflect any level of profit they wish to report. United has retired debt in the past to mask ANY profits. Many at UAL believe the $325M loss they claimed 4Q 2010 had already been accounted for and they brought it out to reduce the Profit sharing percentage threshold. I'm not YET sure if Jeff and Co are up to the same financial treachery as Tilton and CO but we Will find out soon enough.