Management likes to point out the 12.5% average pay increase as of 1/1/2017 and 5% pay increase effective January 1st, 2018. However, they don’t go into detail and tell us that it was offset by the adjustment to our profit sharing.
On the Q4 2016 earnings call held on January 26, 2017 at 10:00 AM ET Savanthi N. Syth, an Analyst at Raymond James & Associates, Inc. inquired about how our wages and profit sharing would affect costs. This is the response he was given:
“And in terms of salaries and wages, the biggest impact for 2017 was about half a point which was essentially the net of the investment we made in our crew members offset by the adjustment to our profit-sharing payout model. But other than that, we didn't – we don't have a significant impact from that line in 2017.” -James E. Leddy - JetBlue Airways Corp.
FACT: RAISE OFFSET BY THE ADJUSTMENT TO OUR PROFIT SHARING PAYOUT MODEL
Our stockholders and investors must be relieved our “raise” had little impact on the bottom line! We also wonder how you can call it a raise if you are taking from one benefit to “offset” another.
While profit sharing might be a non-negotiable item, most of the items that affect our compensation are. We believe, through collective bargaining and with the support of the TWU, that we can improve our total compensation package in a way that reflects the contribution all Inflight Crewmembers make to create such a profitable and successful airline. The best part is we all get to vote to accept or reject the proposals in our first contract, which is something the Direct Relationship and IFCAT don’t offer. Voting YES for TWU gives us real power to produce the changes, improvements, and protections the thousands of you that signed cards seek.
You can read the full transcript here: https://seekingalpha.com/article/4040410-jetblue-airways-jblu-q4-2016-results-earnings-call-transcript?part=single