New Profit Sharing Scheme
Joined: Oct 2006
Posts: 651
Likes: 0
From: Hong Kong
I am a little suspicious of this phrase
"
Margin - The percentage of ‘Airlines’ profit divided by audited airlines’ turnover net of recoveries’
As far as I can recall we used to receive 25% of the profit on all profit in excess of 7.5% of turnover(not turnover net of recoveries). A numerical example might help. If turnover was $40B and profit was $4B, well 7.5% of $40B is $3B and so we get to keep $250million(25% of excess). This new scheme, prima facie, seems to provide 3/4qtrs of their percentage of their profitmargin. So in the previous example the profit margin was 10% - take 3/4s of that and we get 7.5% of the total profit($4B)...or a total of $300million...so more generous at that level.
If we had made $3B profit on turnover of $40B, under old scheme that equates to exactly 7.5% so no profit share. Under new scheme it would equate to 3/4s of 7.5% profit margin so almost 5.6% which would be about $168million.
In 2000 we made about $5B which equated to 14.5% profit on turnover. The amount attributable to profit share was 25% of profit in excess of 7.5% or about $600m which if my memory serves me correctly, was about 6weeks? Please any correct me if that is wrong.
You can't equate profit share lump sums from the past to present as they get divided by an ever increasing staff costs pie. But it would be fare to say that if we did make 7.5%, like we did last year, it would probably equate to between 1 adn 2 weeks profit share...but closer to 1 week.
"
Margin - The percentage of ‘Airlines’ profit divided by audited airlines’ turnover net of recoveries’
As far as I can recall we used to receive 25% of the profit on all profit in excess of 7.5% of turnover(not turnover net of recoveries). A numerical example might help. If turnover was $40B and profit was $4B, well 7.5% of $40B is $3B and so we get to keep $250million(25% of excess). This new scheme, prima facie, seems to provide 3/4qtrs of their percentage of their profitmargin. So in the previous example the profit margin was 10% - take 3/4s of that and we get 7.5% of the total profit($4B)...or a total of $300million...so more generous at that level.
If we had made $3B profit on turnover of $40B, under old scheme that equates to exactly 7.5% so no profit share. Under new scheme it would equate to 3/4s of 7.5% profit margin so almost 5.6% which would be about $168million.
In 2000 we made about $5B which equated to 14.5% profit on turnover. The amount attributable to profit share was 25% of profit in excess of 7.5% or about $600m which if my memory serves me correctly, was about 6weeks? Please any correct me if that is wrong.
You can't equate profit share lump sums from the past to present as they get divided by an ever increasing staff costs pie. But it would be fare to say that if we did make 7.5%, like we did last year, it would probably equate to between 1 adn 2 weeks profit share...but closer to 1 week.
Joined: Feb 1999
Posts: 58
Likes: 0
poay rise instead
I think we should forget profit share and trade it for a 2% pay rise. This of course should be on top of the pay rise we should have coming our way too.
This way they can BS all they want and it wont affect us, we wont even have to listen!!
Some years we'll be better off, some worst but think of the time saved on being frustrated by their rhetoric!!
Just a thought!
This way they can BS all they want and it wont affect us, we wont even have to listen!!
Some years we'll be better off, some worst but think of the time saved on being frustrated by their rhetoric!!
Just a thought!
Joined: May 2004
Posts: 1,841
Likes: 0
From: Europe
Joined: Jun 2006
Posts: 335
Likes: 0
From: Asia
Not sure what is so funny about loosing your profit share and not getting any raises for six years.
Perhaps if you are on the outside looking in to you it might be funny. Of course I am sure your benefit and pay package is just fine.
FG
Perhaps if you are on the outside looking in to you it might be funny. Of course I am sure your benefit and pay package is just fine.
FG
Joined: Nov 2005
Posts: 217
Likes: 0
From: Hotels everywhere
What is the latest on a payrise anyway??? Am a bit out of the loop but would like to know why there has been no increase in all this time? While the company has made profits.
At average inflation of 3-4% everybody is substantially poorer ...... no need to introduce lower payscales - just let inflation reduce your payroll expenses while the ticket prices/income go up. Management must love it.
The very least should be a yearly cost of living adjustment??
At average inflation of 3-4% everybody is substantially poorer ...... no need to introduce lower payscales - just let inflation reduce your payroll expenses while the ticket prices/income go up. Management must love it.
The very least should be a yearly cost of living adjustment??
Joined: Oct 2006
Posts: 651
Likes: 0
From: Hong Kong
ACMS
I have been thinking about it some more. I think the funny phraseing about turnover has to do with fuel levies...as they are surcharges rather than turnover...but that is just a guess.
To answer your question about salaries above $12K, they did this a few years back as well. The way I read it is everyone gets an equal amount until we get $6K and then it increases pro rata on your salary. So if enough profit was generated to give half a month's profit share, no one is 'ripped off'.
I think whingeing and being a pilot are synonmous. Most people are too busy doing their job to have time to whinge...we get all that free time in the cruise to whinge;-)
I have been thinking about it some more. I think the funny phraseing about turnover has to do with fuel levies...as they are surcharges rather than turnover...but that is just a guess.
To answer your question about salaries above $12K, they did this a few years back as well. The way I read it is everyone gets an equal amount until we get $6K and then it increases pro rata on your salary. So if enough profit was generated to give half a month's profit share, no one is 'ripped off'.
I think whingeing and being a pilot are synonmous. Most people are too busy doing their job to have time to whinge...we get all that free time in the cruise to whinge;-)
Joined: Nov 2005
Posts: 315
Likes: 0
From: Extreme
I hear that the KA boyz are not happy as they have lost their "exgratia payment" and will now be subject to CX profit share! I guess that conditions will be pared down to the lowest extant. Do all CX guys/gals get 13th month, travel fund, gratuity, overtime, travelling allowance, profit share, Chinese New Year bonus? Let the good times roll.
...........
Joined: May 2004
Posts: 1,040
Likes: 2
From: 3.5 from TD
I think we should forget profit share and trade it for a 2% pay rise. This of course should be on top of the pay rise we should have coming our way too.
This way they can BS all they want and it wont affect us, we wont even have to listen!!
Some years we'll be better off, some worst but think of the time saved on being frustrated by their rhetoric!!
Just a thought!
This way they can BS all they want and it wont affect us, we wont even have to listen!!
Some years we'll be better off, some worst but think of the time saved on being frustrated by their rhetoric!!
Just a thought!
Profit share, sure I'll take it. Now lets talk about a raise that should have happened years ago...
I hope you don't work as a union negotiator.
Joined: Feb 1999
Posts: 58
Likes: 0
what tha
Hey squawk, what ya mean give something up. A 2% pay rise would more than cover the ups and downs of profit share, all i am saying is that it would be preferable than listening to excuses every year.
This way the money is in our pockets no matter what poor excuses the company has for not wanting to pay profit share.
So as a union neg that i am not, after i fight to get hard earned pay rises, i would offer this and maybe say, factor in 13th month to our monthly pay so again they lose control of paying or not paying. Again this is all AFTER we get the pay rises that are long over due!!
Dont think that sounds all bad, maybe it is for those who cant put away the dollars for tax month by month!
This way the money is in our pockets no matter what poor excuses the company has for not wanting to pay profit share.
So as a union neg that i am not, after i fight to get hard earned pay rises, i would offer this and maybe say, factor in 13th month to our monthly pay so again they lose control of paying or not paying. Again this is all AFTER we get the pay rises that are long over due!!
Dont think that sounds all bad, maybe it is for those who cant put away the dollars for tax month by month!
Joined: Mar 2003
Posts: 9
Likes: 0
From: Asia
EX Gratia payment
Re read the message from the CEO :
A profit-sharing scheme is to be introduced for eligible staff of Dragonair for the very first time. It will replace, the less transparent ex-gratia payment of past
A profit-sharing scheme is to be introduced for eligible staff of Dragonair for the very first time. It will replace, the less transparent ex-gratia payment of past
