United Mechanics Contract

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After a cursory look the only thing industry leading is the vacation accrual and license premium. 8 year top out sucks but the steps are closer together pay wise. Hope you guys get some closure.
 
What I do like to see is the buy-out option. I like the 100K max. To get people to paticipate in a good buy-out program it should be about a years salary. If the co. wants people to leave to save on cost then offer them something they will take. Win win for both sides. Heck if they would offer me a buy-out worth 1 years salary right now I would take it and move on in a heart beat...
 
swamt said:
Heck if they would offer me a buy-out worth 1 years salary right now I would take it and move on in a heart beat...
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Having taken the AA buyout I can tell you taxes put a huge dent in takehome and counting on the medical prefund match to offset will probably never happen.
 
Let me ask you this. Is a buy-out taxed any differently than our regular income rates? The fact that it is a large sum at once makes for a higher tax bracket for the year. I would expect with receiving 100K on top of your regular income (depending on when you leave) would put us in the 28-35% range would it not? Just going by a guess here as I do not know the tax law numbers by memory. Some might get as high as 39% maybe. Can you give an idea of what the tax % was on yours? And maybe how much of your regular pay was added in for the entire year that you received the buy-out? Just trying to get an idea of how much of the 100K buy-out would have to be set aside for tax reasons. sorry if some of this is a little personal but please only reveal whatever you want to, thx for any info..
 
swamt said:
Let me ask you this. Is a buy-out taxed any differently than our regular income rates? The fact that it is a large sum at once makes for a higher tax bracket for the year. I would expect with receiving 100K on top of your regular income (depending on when you leave) would put us in the 28-35% range would it not? Just going by a guess here as I do not know the tax law numbers by memory. Some might get as high as 39% maybe. Can you give an idea of what the tax % was on yours? And maybe how much of your regular pay was added in for the entire year that you received the buy-out? Just trying to get an idea of how much of the 100K buy-out would have to be set aside for tax reasons. sorry if some of this is a little personal but please only reveal whatever you want to, thx for any info..
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Due to the complexity of this country's tax code and your financial situation it's hard to give a straight forward answer how you would come out. My lump sum was approx. $52k and they deducted taxes at the 28% rate. Yes, it did bump my wife and I's income for the year to a higher tax bracket and we wound up paying half of the $52k in taxes. $100k lump sum would have raised those rates considerably.
Many who took the early out package at AA wound up seeking employment elsewhere making much less. For the record I'm already making more at WN than when I left ($14 an hour less to date than if I'd stayed). This may sound ridiculous but I would do it again in a heartbeat since I was so disgrutled. In my opinion, unless your within a couple of years till retirement AND a pension whether at UA, AA, or WN, leaving at $47+ and hour with benefits for a lump sum may not be the best solution.
 
Birdman said:
Due to the complexity of this country's tax code and your financial situation it's hard to give a straight forward answer how you would come out. My lump sum was approx. $52k and they deducted taxes at the 28% rate. Yes, it did bump my wife and I's income for the year to a higher tax bracket and we wound up paying half of the $52k in taxes. $100k lump sum would have raised those rates considerably.
Many who took the early out package at AA wound up seeking employment elsewhere making much less. For the record I'm already making more at WN than when I left ($14 an hour less to date than if I'd stayed). This may sound ridiculous but I would do it again in a heartbeat since I was so disgrutled. In my opinion, unless your within a couple of years till retirement AND a pension whether at UA, AA, or WN, leaving at $47+ and hour with benefits for a lump sum may not be the best solution.
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Buyouts always favor the company as a whole. That is why they offer them.
 
Last edited:
Birdman said:
Due to the complexity of this country's tax code and your financial situation it's hard to give a straight forward answer how you would come out. My lump sum was approx. $52k and they deducted taxes at the 28% rate. Yes, it did bump my wife and I's income for the year to a higher tax bracket and we wound up paying half of the $52k in taxes. $100k lump sum would have raised those rates considerably.
Many who took the early out package at AA wound up seeking employment elsewhere making much less. For the record I'm already making more at WN than when I left ($14 an hour less to date than if I'd stayed). This may sound ridiculous but I would do it again in a heartbeat since I was so disgrutled. In my opinion, unless your within a couple of years till retirement AND a pension whether at UA, AA, or WN, leaving at $47+ and hour with benefits for a lump sum may not be the best solution.
Click to expand...

Sage advice.
Why leave a job that pays pretty decent for 6 mos pay (after taxes)?
If you have to take a job at Wally World later in life, that would suck big time.
Some people will take it as they feel that they can't work there anymore without considering the ramifications.
Never quit a job until you have secured another.
It worked out for me but not so much for others.
Think with your financial head instead of your disgruntled heart.
I used to make my own stress at the Lazy'U because I felt it was important to give my company my best at all costs and upset when I wasn't recognized for my effort.
When you accept that 'to the company' your are a liability and seldom an asset, you will do much better.
Me, I have no regrets.
Best to You ALL!
-:cool: xUT
 
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