2017 Profit Sharing Update
Brothers and Sisters,
There has been some frustration over the shrinking amount of profit sharing for this year, especially in light of the profit sharing announcement at Delta.
The reason the committee took this approach was simple. Based upon our goal of protecting your short and long range goals; we determined, based on the economic forecasts of consultant Dan Akins, that profits would drop leading to a substantial loss in your Profit Sharing. This has been borne out as we see that the pilots have taken a stunning 60% reduction in their Profit Sharing.
While the underlying premise of Profit Sharing is good; the sad reality is that it is tied to the company’s profits and is never a guarantee. Our goal was and will always be to ensure that you are recognized for your efforts.
Based upon these concerns, the committee determined that it would be far better to capture the highest hourly rate possible, rather than have annual earnings flex with the ability of the company to make a profit, especially during any future recession. We also recognized that other airlines might increase their respective profit sharing formulae or amounts. In order to capture any possible upward change, the committee included profit sharing at other carriers in the industry reset language in LOA #29.
With our concern that of protecting your finances; and our concerns that the profits would decline, having a negative impact on you, the negotiating committee agreed to the new formula that was based on protecting your hard earned money even in any decline. The reset will occur this December and will take into account the recent increase at Delta Airlines whose profit was much higher than United's. That increase will be applied towards your future raises, and will remain, regardless of the company's profits, for the duration of the agreement and beyond.
Our goal was then and will always remain; protecting the paychecks and financial futures of you and your family. By moving Profit Sharing percentages to hard dollars in your paycheck, we have insured that regardless of United’s profits or industry economic downturns that will come, your hard work will always be recognized and protected.
National Coordinator, Technician and Related International Brotherhood of Teamsters Airline Division