General Lee
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American CEO to airlines: Stop sharing profits
December 16, 2014 Reuters
By Trebor Banstetter, Corporate Communications
Despite pressure from his employees to implement a profit-sharing program, American Airlines CEO Doug Parker said Monday that profit sharing is outdated.
In an interview with Reuters, Parker suggested that all airlines should stop sharing profits with employees. "We should move back to what normal industrial companies do, which is pay people [what] they earn" without profit-sharing, Parker said.
American's unions have been pushing the company to share profits "which are expected to be at record levels this year" with employees. The lack of profit sharing was cited by many flight attendants when they voted down a tentative contract agreement last month. Pilots also have been calling for the company to share its record profits with employees.
Profit-sharing gives workers "a feeling of being valued," said Leslie Mayo, a spokeswoman for the Association of Professional Flight Attendants, which represents workers at American, told Reuters.
Parker wasn't always opposed to sharing profits. In 2007, when US Airways distributed profit-sharing checks to employees Parker said in a press release that "I'm delighted that today our employees will share in this success through our profit sharing program." He was the airline's CEO at the time.
Reuters reported that the Allied Pilots Association, which represents American's pilots, said a recent contract offer still leaves its members far behind their counterparts at Delta because of profit-sharing.
Delta is expected to pay more than $1 billion in profit sharing to employees for 2014, the highest payout in the industry. Total 2014 profit sharing for Delta employees will average nearly two months' salary.
According to Delta's latest competitive review of compensation, Delta people will earn on average 26 percent more total pay in 2014 than their American Airlines counterparts.
Southwest Airlines, United Airlines and Alaska Airlines also have profit-sharing programs.
The APA recently estimated and stated that DL would give out profit sharing worth 19% of the W2 (2014's W2) for 2015. (Feb 14th, although 5% was already given in October, so 14% in Feb). That's in addition to the higher rates. Plus, that profit sharing check (s) also has an additional 15% DC fund tagged onto it. So, a $20K check (pre tax) would have an additional $3K put into the DC fund as well. It's a great deal.
What will the APA settle for? What will Parker do?
Bye Bye---General Lee
December 16, 2014 Reuters
By Trebor Banstetter, Corporate Communications
Despite pressure from his employees to implement a profit-sharing program, American Airlines CEO Doug Parker said Monday that profit sharing is outdated.
In an interview with Reuters, Parker suggested that all airlines should stop sharing profits with employees. "We should move back to what normal industrial companies do, which is pay people [what] they earn" without profit-sharing, Parker said.
American's unions have been pushing the company to share profits "which are expected to be at record levels this year" with employees. The lack of profit sharing was cited by many flight attendants when they voted down a tentative contract agreement last month. Pilots also have been calling for the company to share its record profits with employees.
Profit-sharing gives workers "a feeling of being valued," said Leslie Mayo, a spokeswoman for the Association of Professional Flight Attendants, which represents workers at American, told Reuters.
Parker wasn't always opposed to sharing profits. In 2007, when US Airways distributed profit-sharing checks to employees Parker said in a press release that "I'm delighted that today our employees will share in this success through our profit sharing program." He was the airline's CEO at the time.
Reuters reported that the Allied Pilots Association, which represents American's pilots, said a recent contract offer still leaves its members far behind their counterparts at Delta because of profit-sharing.
Delta is expected to pay more than $1 billion in profit sharing to employees for 2014, the highest payout in the industry. Total 2014 profit sharing for Delta employees will average nearly two months' salary.
According to Delta's latest competitive review of compensation, Delta people will earn on average 26 percent more total pay in 2014 than their American Airlines counterparts.
Southwest Airlines, United Airlines and Alaska Airlines also have profit-sharing programs.
The APA recently estimated and stated that DL would give out profit sharing worth 19% of the W2 (2014's W2) for 2015. (Feb 14th, although 5% was already given in October, so 14% in Feb). That's in addition to the higher rates. Plus, that profit sharing check (s) also has an additional 15% DC fund tagged onto it. So, a $20K check (pre tax) would have an additional $3K put into the DC fund as well. It's a great deal.
What will the APA settle for? What will Parker do?
Bye Bye---General Lee
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