General Lee
Well-known member
- Joined
- Aug 24, 2002
- Posts
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Analyst: 'Profit sharing is dead' at American Airlines
November 11, 2014
By Trebor Banstetter
The lack of a profit-sharing program was a significant force behind American Airlines flight attendants rejecting a tentative contract this week, but analysts say there's no chance of them gaining the benefit through arbitration.
"Profit sharing [at American Airlines] is dead, and will almost surely stay dead through the arbitration process," wrote Hunter Keay, an airline industry analyst at Wolfe Research.
BusinessWeek noted after the vote "American had negotiated an end to profit-sharing payments in the deal, an element that many flight attendants did not like," while the Dallas Morning News wrote that the pay packages at other airlines were clearly on attendants' minds when they voted down the tentative contract.
Delta is expected to pay out more than $1 billion in profit sharing to employees for 2014, more than United Airlines, Southwest Airlines and JetBlue Airways combined. American employees will receive no profit sharing bonuses despite what the airline forecasts will be a record 2014 profit.
American CEO Doug Parker told the Morning News in August that he doesn't believe in profit sharing.
"We just think it's an inefficient way to pay team members," he said.
Offfffffcourse he does........ But I bet Doug will get some profit sharing himself...
Bye Bye---General Lee
November 11, 2014
By Trebor Banstetter
The lack of a profit-sharing program was a significant force behind American Airlines flight attendants rejecting a tentative contract this week, but analysts say there's no chance of them gaining the benefit through arbitration.
"Profit sharing [at American Airlines] is dead, and will almost surely stay dead through the arbitration process," wrote Hunter Keay, an airline industry analyst at Wolfe Research.
BusinessWeek noted after the vote "American had negotiated an end to profit-sharing payments in the deal, an element that many flight attendants did not like," while the Dallas Morning News wrote that the pay packages at other airlines were clearly on attendants' minds when they voted down the tentative contract.
Delta is expected to pay out more than $1 billion in profit sharing to employees for 2014, more than United Airlines, Southwest Airlines and JetBlue Airways combined. American employees will receive no profit sharing bonuses despite what the airline forecasts will be a record 2014 profit.
American CEO Doug Parker told the Morning News in August that he doesn't believe in profit sharing.
"We just think it's an inefficient way to pay team members," he said.
Offfffffcourse he does........ But I bet Doug will get some profit sharing himself...
Bye Bye---General Lee
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YIKES! Are you stalking me HeavyLoad while I'm stalking your sister Jenny???? You're scaring me man. :laugh:
