US Airways profit sharing

[ToiletDuck]

Mr. Parker added, "At US Airways, we are extremely confident in our own stand-alone plan. Earlier this week, we announced a 2006 profit (excluding charges) of over $500 million, far and away the best performance by a network airline. Our employees will share $59 million of well-deserved profit sharing payments as a result.

This was from the recent news of the merger not going through. Was there profit sharing in the past or is this some way to keep the hourly pay low and only have to pay the pilots "if" everything goes as planned?

 

[G2T]

only have to pay the pilots "if" everything goes as planned?

I may be wrong here, but I believe that is the whole idea of profit sharing. You can't share the profits if there aren't any!

 

[Crzipilot]

The profit sharing was put in place with the concessions Main Line gave during BK.........everyone else was included by the sweep of Parkers hand...

 

[ToiletDuck]

I may be wrong here, but I believe that is the whole idea of profit sharing. You can't share the profits if there aren't any!

That wasn't the question. The question was if there was profit sharing along with higher pay in the past or if it was just higher pay. And if it was just higher pay is profit sharing the new standard to come out so they can keep the overall hourly pay low and guys earn a good livin only if management does their job.

 

[nethan]

Mainline pilots (and I think FAs) agreed to some of the BK1 and BK2 concessions only because they put a profit sharing clause in the CBA. (From what I've been told they agreed to the rest because the GAG did it anyways)

Anyhow.... nobody else had profit sharing in their CBA (or as part of their salary for the non union types.) As CRZI said, Parker waved his hand and everybody got it. I don't think their was profit sharing in the past with the higher salary, although there could have been. The profit sharing now isn't really to offset the lower wages, but rather as part of the deal of the concessions made during BK. The hope of course would be to get wages up and keep the profit share. Time will tell.

Either way, everybody who didn't actually have it in their CBA got a nice hand out from management, but it wasn't really worth much. One of those things that looks good on paper, but in reality is more there for managment to brag to the media about how good they are then to win over the employees. My .02 anyways.

 

[LowlyPropCapt]

The concessionary contract that PDT agreed to in BK part 1 had a provision for a profit sharing arrangement.

 

[phishn@daves]

I'm not a business major but..........How can a company not pay retirement to their pilots but try and buy Delta and then profit share?

I really don't know how that works.

 

[WSurf]

I'm not a business major but..........How can a company not pay retirement to their pilots but try and buy Delta and then profit share?

I really don't know how that works.

It's magic!!!!!

 

[WSurf]

This was from the recent news of the merger not going through. Was there profit sharing in the past or is this some way to keep the hourly pay low and only have to pay the pilots "if" everything goes as planned?

The profit sharing for PDT comes to about 100.00!!!!! Yeppie!!!! I guess I can go buy a nice expensive bourbon!!!

 

[asayankee]

I'm not a business major but..........How can a company not pay retirement to their pilots but try and buy Delta and then profit share?

I really don't know how that works.

There was something in the paper about that the other day. The PBGC is considering legal action against US airways to start refunding their pension. Apparently, they are a little miffed at the HUGE cash offering for Delta which is almost equal to the underfunded portion of the defaulted pensions.

 

[LowlyPropCapt]

The profit sharing for PDT comes to about 100.00!!!!! Yeppie!!!! I guess I can go buy a nice expensive bourbon!!!

Bourbon... MMMMMMM. :beer:

I was expecting a wheel of cheese.

 

[ToiletDuck]

There was something in the paper about that the other day. The PBGC is considering legal action against US airways to start refunding their pension. Apparently, they are a little miffed at the HUGE cash offering for Delta which is almost equal to the underfunded portion of the defaulted pensions.

Considering legal action is taken what would the time frame on something like this be? If they can keep it in court for 5-10yrs they could still screw the pilots over anyway.