October 12, 2016
Unilateral Profit Sharing Change and Interim Pilot Pay Increase LOA
At the JetBlue ALPA MEC meeting today management announced a Company-wide change
to the profit sharing formula, introducing a 2 tier formula changing the amount of money
set aside for employees from a 15% pool of pretax profits reducing to a pool of 10% of
pretax profits. Additionally, for any amount above an 18% pretax margin JetBlue will set
aside 20% of pretax profits above the 18% margin. Calculation of plan year 2016 profit
sharing is not modified, and like last year, an early payout will occur in November.
Management will offset this reduction by implementing an across the board 8% pay
increase to all non-unionized employees effective January 1, 2017, and offered to provide
the same increase to ALPA represented pilots. The 401k match, retirement plus and
retirement advantage is not impacted by this reduction in profit sharing and will not
change.
Independently, the Association secured three new ‘special pay days’ as part of this
arrangement - July 4th and Memorial Day in 2017, and Martin Luther King Day in 2018.
We also reached agreement to provide an opportunity for those pilots who did not sign the
2013 PEA to sign new PEAs so as to allow them to be covered by the new rates. The MEC
has unanimously approved a proposed LOA (attached to this document as a PDF)
incorporating this package to be sent to the membership for ratification.
We would make several points for those considering the terms of the LOA;

Our PEAs explicitly state that profit sharing is at the sole discretion of the Company
(see PEA language below). Therefore, we have no contractual or legal basis to
challenge the change. However, signing of this LOA secures a contractual protection
that no other changes will occur.

Management does not have the right to unilaterally impose the pay increase, new
holidays, or the opportunity to sign new PEAs. Those matters have to be negotiated
with ALPA to be implemented. This means that our choice is not whether to
refuse the reduction in profit sharing; our choice is only whether we should
refuse the increase in pay that is being made available along with the other
benefits we have obtained. However, in order to secure these improvements, we
need to sign a Letter of Agreement and, by ratifying this, the profit sharing formula
will also be contractual and cannot be changed further while we are in negotiations.
The MEC believes there is no logical reason not to accept the improvements which
have been made available to our work group pursuant to the LOA.

As the LOA itself makes clear, we are not waiving arguments in collective
bargaining. We are well aware that the eight percent pay increase is in no way
equivalent to pay packages that have been negotiated throughout the industry. We
intend to negotiate further increases in pay beyond those stated in the LOA along
with many other improvements. However, we see no reason to deprive the
membership of additional pay and holidays while we are bargaining.
Our JetBlue ALPA policy manual requires all Letter of Agreements that change pay be
ratified by the pilot group. To be clear, based on the language below, profit sharing
is being unilaterally cut by management regardless of the outcome of this vote.
Online balloting will open on Monday October 17th and close on October 31st. More
information to follow.
In Unity.
STAY SAFE ▪ STAY INFORMED ▪ STAY INVOLVED
E.1 Profit Sharing
Pilots shall be eligible to participate in the JetBlue discretionary profit sharing program (which the
employee may choose to contribute to the Retirement Plan – up to IRS limits).
The discretionary profit sharing program, which is subject to change, is currently equal to the
difference, if any, between: (a) the employee’s proportionate share of a pool totaling 15% of the
Airline’s annual pre-tax profits, and (b) the amount that may be allocated equal to 5% of such
employee’s Plan-eligible pay. The Airline reserves the right to amend this program or any future
program at any time and from time to time, or to terminate the program or any such program.
Air Line Pilots Association, International
www.alpa.org
If you wish to unsubscribe, please click here to login and update your Standard Mailings/E-Mail Distribution Lists preferences.