WHY ARE W-2 EARNINGS USED TO CALCULATE A POTENTIAL PAYOUT?
Although the profit sharing plan is in our contract, the provisions of the plan were not the result of a negotiated process. The plan details were the result of the bankruptcy court and the POR. The plan contains the following provisions with regard to plan payments based on W-2 earnings (Contract Section 30.M). An individual flight attendant’s profit sharing payment will be based on such flight attendant’s gross W-2 earnings (prior to any elective deferrals) for the prior calendar year divided by the gross W-2 earnings (prior to any elective deferrals) of all eligible flight attendants for the prior calendar year. “Eligible flight attendants” may include retired or furloughed flight attendants who had gross W-2 earnings (prior to any elective deferrals) for the prior calendar year, subject to applicable law. The above contract section is a direct result of the approved POR. The contract language was not a negotiated provision. While some may feel that basing each share on W-2 earnings
