United Airlines AFA MEC Website

Association of Flight Attendants-CWA United Master Executive Council

Profit Sharing Payments Update

Date: February 4, 2011
Type: AFA Article

On Tuesday we advised you that due to United Airlines profits exceeding $10 million for the year 2010, our Contractual Profit Sharing Program was triggered. Section 5.J. of our Contract pays out when adjusted pretax earnings at United Airlines reach this benchmark. Fifteen percent of United’s adjusted pretax earnings forms a pool that is distributed pro-rata to all employees. All Flight Attendants who have completed one year of service as of December 31st of the year for which Pre-Tax Earnings are being measured (2010) will receive a distribution from the cash pool based on her or his Considered Earnings in the year the profit is achieved.

The amount due to Flight Attendants equals about 5.9 percent of considered earnings. The payment will be deposited to 401(k) accounts for those eligible for the tax deferred savings plans Friday, February 11, and viewable on Monday, February 14, 2011.  Previously you have self-directed Fidelity Investments as to how you wish for your Profit Sharing payments to be applied to your investments.  If you wish to make any changes to how this payment will be directed in your 401(k) account, you should log on to the Fidelity website, available through the Useful Websites section of our webpage, and make your selection prior to Friday, February 11 at 1600 EST. You may also call Fidelity at 1-800-245-9034.

In July of 2006 we were also successful in achieving such a plan in the United Kingdom, called the U.K. Group Stakeholder Plan. This plan has features that are very similar to the U.S. 401(k) plan and LHR based Members eligible for the U.K. plan will have their profit sharing directed into this account, subject to individual deferral limitations.

Internationally based Flight Attendants in FRA, HKG or NRT; and who do not have company contributions to the U.S. Flight Attendant 401(k) Plan, will receive their Profit Sharing payment through the normal payroll process, subject to taxation. Members outside of the U.S. who are enrolled in the floor rate program will receive appropriate exchange rates.

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