JetBlue Latest and Greatest
#1351
I agree it's not an 8% raise with our current profits. Our profit sharing is being cut, can you explain how if we turn it down we can keep our existing profit sharing program. I get it... we want our industry leading wages and keep our existing profit sharing program. Our union will have to fight to get a good PS program in our first CBA, because our PEA is a POS and gives us no leverage. Take the 8% now or lose it. Don't count on a retro check this go around with a PEA in place.
#1353
Let's say we had $1bil in pretax profit for the year. 15% of that is $150mil. JetBlue spent $900mil on eligible wages that same year, so 5% of $900 mil is $45mil. That leaves $105mil to be given out for PS. To find the percentage everyone gets you take $105mil divided by $900mil and get 11.6% payout.
New plan is focused on pretax margin. So let's say we had $1bil in pretax profit. We then look at our total revenue for that period, which we'll say was $6bil total revenue. That comes out to 16.6% pretax profit margin. Since that's less than 18% we would get 10% of the pretax profit ($1bil * 10% = $100mil for profit sharing).
If we had $1bil pretax profit, and only $5bil in total revenue that would equal a 20% profit margin. We'd get $100mil for PS like the above example, plus 20% of everything above 18% margin. 18% margin on $5bil is $900mil (we had $1bil pretax profit). So you take that extra $100mil * 20% and get an additional $20mil. Making a total of $120mil for PS.
Confused yet?
Just for reference, our current year to date results put us at 18.77% pretax margin.
Last edited by Flyby1206; 10-12-2016 at 05:46 PM.
#1354
Line Holder
Joined APC: Jun 2015
Posts: 79
Now that I've read into it, I'll give my opinion. It's a PR move. If we don't vote it in, they'll have the opportunity to tell the NMB that they offered and we voted it down. If we vote it in, it gives them a PR advantage if we end up picketing. All in all, I think taking the deal is in our better interest right now.
#1355
Gets Weekends Off
Joined APC: Dec 2014
Posts: 155
Current plan is 15% of pretax profit, minus 5% of eligible wages.
Let's say we had $1bil in pretax profit for the year. 15% of that is $150mil. JetBlue spent $900mil on eligible wages that same year, so 5% of $900 mil is $45mil. That leaves $105mil to be given out for PS. To find the percentage everyone gets you take $105mil divided by $900mil and get 11.6% payout.
New plan is just focused on pretax margin. So let's say we had $1bil in pretax profit. We then look at our total revenue for that period, which we'll say was $6bil total revenue. That comes out to 16.6% pretax profit margin. Since that's less than 18% we would get 10% of the pretax profit ($1bil * 10% = $100mil for profit sharing).
If we had $1bil pretax profit, and only $5bil in total revenue that would equal a 20% profit margin. We'd get $100mil for PS like the above example, plus 20% of everything above 18% margin. 18% margin on $5bil is $900mil (we had $1bil pretax profit). So you take that extra $100mil * 20% and get an additional $20mil. Making a total of $120mil for PS.
Confused yet?
Let's say we had $1bil in pretax profit for the year. 15% of that is $150mil. JetBlue spent $900mil on eligible wages that same year, so 5% of $900 mil is $45mil. That leaves $105mil to be given out for PS. To find the percentage everyone gets you take $105mil divided by $900mil and get 11.6% payout.
New plan is just focused on pretax margin. So let's say we had $1bil in pretax profit. We then look at our total revenue for that period, which we'll say was $6bil total revenue. That comes out to 16.6% pretax profit margin. Since that's less than 18% we would get 10% of the pretax profit ($1bil * 10% = $100mil for profit sharing).
If we had $1bil pretax profit, and only $5bil in total revenue that would equal a 20% profit margin. We'd get $100mil for PS like the above example, plus 20% of everything above 18% margin. 18% margin on $5bil is $900mil (we had $1bil pretax profit). So you take that extra $100mil * 20% and get an additional $20mil. Making a total of $120mil for PS.
Confused yet?
#1357
In the future I doubt we will make 18+% margins, so this plan probably won't be as good as the old one.
#1358
Gets Weekends Off
Joined APC: Mar 2012
Posts: 992
This one won't even affect us if we happen to get a CBA before 2017 ends.
#1359
Gets Weekends Off
Joined APC: Feb 2013
Position: CA
Posts: 1,226
The new plan defines it.
#1360
Nailed it.
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