Dear AFA Recording: Jan 20, 2015
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- Third Round EEOP Travel Purchase Deadline
- United Will Announce 2014 Fourth-Quarter Financial Results
- Profit Sharing Election Window Open through January 25
- FAOM Revision #13 - Effective February 1
- Union Plus Scholarship Deadline
- Joint Negotiations Continue in Houston This Week
Good evening Ladies and Gentlemen and welcome to Dear AFA. We are a democratic, Member driven Union of Flight Attendants for Flight Attendants. Today is Tuesday, January 20, 2015 and this is Washington, D.C. Council 21 Volunteer and United Master Executive Council Communication Committee Chairperson Jeffrey Tonjes reporting.
Third Round EEOP Travel Purchase Deadline
Flight Attendants participating in the EEOP who have a release date of January 30, 2015 and wish to purchase the extended travel benefits must submit their request no later than January 21, 2015 at noon Central Time. This is your one and only opportunity to purchase extended travel.
To submit a request to purchase the extended travel benefits please visit Flying Together > Inflight Services > Administration > Enhanced Early Out > Early Out Travel Purchase.
If you have any questions about the early out or the travel purchase program please email email@example.com.
United Will Announce 2014 Fourth-Quarter Financial Results
United Continental Holdings, Inc. will hold their quarterly conference call on Thursday, January 22, at 9:30am CST. Those interested in listening in can do so via United's live webcast. The webcast can be accessed on United's Investor Relations website at ir.united.com and will be archived on the website for 24 hours.
United expects to record its 2014 fourth-quarter special chargers at approximately $226 million. These charges include $141 million in severance and benefit costs related to the recent Flight Attendant Enhanced Early Out Program. The company also includes in its special charges, $17 million in integration-related costs including compensation costs related to systems integration and training, as well as $16 million for impairment of assets.
In the event the company has more than $10 (ten) million in pre-tax earnings, then the annual profit sharing pool shall be 15% of pre tax earnings. Be mindful, pre tax earnings is United consolidated net income excluding (I) federal, state and local income taxes (II) unusual, special or non-recurring charges or (III) charges with respect to grant, exercise or vesting of equality, securities or options granted to United and United employees and (IV) expenses associated with profit sharing contributions.
Profit Sharing Election Window Open through January 25
This year's Profit Sharing elections can be made now through January 25, 2015 at 11:59 pm CST during which time you can decide to defer all, or a percentage of your Contractual profit sharing payment to your:
- 401(k) retirement savings account or,
- Roth 401(k) Plan account, if applicable.
- UK Stakeholder Plan Account
Please keep in mind that if NO election is made, you will receive your profit sharing as a cash payment subject to all applicable state, federal and local income tax withholdings. We anticipate that United will once again make the payment mid-February.
The Contract modification which provides Flight Attendants the ability to self-direct the Profit Sharing proceeds changed the nature of the Profit Sharing payment from an employer contribution to an employee contribution. This was not an insignificant change.
As a result, this money even when directed into the tax deferred 401(k) account, is subject to FICA (Social Security and Medicare) withholding, CA state disability withholding taxes (where applicable) as well as some other State and Local. The money withheld from the Profit Sharing payment to pay these FICA, state disability and other taxes is considered wages for the purposes of the Federal tax code. As a result, the money withheld from the Profit Sharing to pay these various tax and disability amounts is reported as wages and is further subject to Federal tax withholding. It is for this reason that you will see Federal Taxes withheld from the Profit Sharing proceeds that have been directed into the 401(k) accounts.
For more information about our Contractual Profit Sharing plan visit our website.
FAOM Revision #13 - Effective February 1
FAOM Revision 13 is currently available at your local domicile and has an effective date of February 1, 2015. Please be sure to take time to review, insert and record Revision 13 into your FAOM prior to the February 1, 2015 effective date.
Union Plus Scholarship Deadline
Since 1992, the Union Plus Scholarship Program has awarded more than $3.6 million to students of working families who want to begin or continue their post-secondary education. Last year alone, 116 Union members and Union family members were awarded $150,000 in scholarships, ranging from $500 to $4,000.
The deadline for the 2015 Union Plus Scholarship application is January 31, 2015, and this scholarship is open to any student who is attending or planning to attend a college or university. Applications are evaluated according to academic ability, social awareness, financial need and appreciation of labor.
If you are interested in participating in the application process for this program, we encourage you to visit the Union Plus website for more information.
Joint Negotiations Continue in Houston This Week
Joint Negotiation continues this week in Houston. The Joint Negotiations Committee (JNC) is expected to provide an update through the OurUnited newsletter this Friday after this session.
As a reminder, all JNC updates can be found on the JNC website at ourunited.org. If you are not signed-up to receive the OurUnited Newsletter please do so also on ourunited.org.
Industry Update: Delta Airlines Announces 2014 Fourth Quarter and Yearly Profits
Today, January 20, 2015, Delta Air Lines announced their 2014 pre-tax fourth-quarter profit, excluding special charges, amounted to $1.0 billion, more than $474 million more in the same period in 2013. Delta's 2014 full-year pre-tax profit, including special charges, was $4.5 billion, a $1.9 billion increase over 2013.
That's all for tonight and thank you for calling.
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