There has been a question raised by some members about whether the trade off of profit sharing for the 4.3% base pay increase was a good deal. It’s been claimed that the 4.3% raise is not worth as much as the so called 5% profit sharing program.
No profit sharing program has put a cent in our members’ pockets in 12 years. This is because AA hasn’t made a profit since 2000. To put it simply, the TWU gave up nothing in order to get our members a significant raise.
5% profit sharing does not mean a 5% pay raise. Under the program, if the company earns a profit each year, 5% of that profit will be distributed among the employees as a lump sum. Even if the company earns a billion dollars, 5% of profit sharing would be $50 million, and would produce a onetime bonus payment to the average TWU member of about $625. Compare this to the 4.3% GUARANTEED ANNUAL INCREASE THAT PAYS (AMTs) $1.20 per hour, or over $2,500 per year. Also remember that in order for a member to receive the same profit sharing payment the following year, the company would AGAIN have to earn a huge profit. In the meantime, the 4.3% pay increase is always there, compounding as new percentage increases are added each year and also compounding the value of overtime and 401k payments.
FACTS COUNT