AIP is dogshit

[digits_]

100 * 1.10 * 1.091 = 120
100 * 1.20 = 120

The effective amount is 19.1% as the the 10% and 9.1% are added together, not multiplied.

On a $100,000 base salary, you are losing $9000. The benefit is that you're getting $91,000 right away instead of waiting a year for it.

They are multiplied. You get 9.1% on your salary, and then you get 10% of the total amount in the pension. There were some earlier related posts clarifying that. Unless that info was wrong.

[RockSalty]

9.1%

100 * 1.10 * 1.091 = 120
100 * 1.20 = 120

The effective amount is 19.1% as the the 10% and 9.1% are added together, not multiplied.

On a $100,000 base salary, you are losing $9000. The benefit is that you're getting $91,000 right away instead of waiting a year for it.

You obviously arent a westjet pilot or didnt go to any of the roadshows, because they explained it to us and that 9.1% they added to our rates is indeed multiplied by the 10%.

And just FYI 0.9% of 100k is $900

[cloak]

The contract is done, with high approval rate, largely to do with the demise of Swoop. For all its faults, "the fighter brand" as they liked to call it!, had established itself and seemingly succeeded in guarding the rear and limiting competitors' growth. And time will tell the merits of this contract.

The new contract is not without shortcomings of its own. Raise of 24% over four years barely covers inflation of the last two, let alone what's to come, which is not going to be insignificant if Justin is left in Ottawa. Pension is still unclear, and most "gains" are largely reshuffling. And while it is nice to lock some of the variable compensation under rates of pay, the possibility of a meaningful pay-out at the time of next IPO, is unclear and seemingly untapped.

And now, it is clear that the company has been forced into an "unplanned" road which it is trying to navigate. Time will tell if this contract helps it recruit more pilots. Although it seems unlikely due to its low starting pay and very long upgrade times. In spite of unjustified four years of flat pay, Air Canada is still in the lead in recruitment due to its known growth plans, known pension plan, and various avenues of growth for pilots, especially if "younger".

[dontcallmeshirley]

They are multiplied. You get 9.1% on your salary, and then you get 10% of the total amount in the pension. There were some earlier related posts clarifying that. Unless that info was wrong.

Encore pilot and apparently misinformed.

You obviously arent a westjet pilot or didnt go to any of the roadshows, because they explained it to us and that 9.1% they added to our rates is indeed multiplied by the 10%.

And just FYI 0.9% of 100k is $900

I missed a zero when calculating it.

Thank you both for pointing out my error. I have edited my post in question to prevent further confusion.

[Maxpwr]

They are multiplied. You get 9.1% on your salary, and then you get 10% of the total amount in the pension. There were some earlier related posts clarifying that. Unless that info was wrong.

Encore pilot and apparently misinformed.

You obviously arent a westjet pilot or didnt go to any of the roadshows, because they explained it to us and that 9.1% they added to our rates is indeed multiplied by the 10%.

And just FYI 0.9% of 100k is $900

I missed a zero when calculating it.

Thank you both for pointing out my error. I have edited my post in question to prevent further confusion.

#confidentlyincorrect lol

Again, this was explained previously as well as at the roadshows. It’s basic math and the pilots lost nothing with this move.

100k + 20%= $120k (old system)

100k + 9.1%= $109100 + 10% = $120010 (new system)

$10 more. Yay.

[Romain]

So if I understand, WSP is the pension for 10% and CEP is Cash equivalent payment that will figure on the paystubs for 9.1% and will be taxable right away like source of income?

[Maritimer]

So if I understand, WSP is the pension for 10% and CEP is Cash equivalent payment that will figure on the paystubs for 9.1% and will be taxable right away like source of income?

Nope.

WSP is 10% unmatched under the new contract. Under the old contract it was 20% matched.

Under the new contract, 9.1% of the company's 20% has been added to the hourly rates and leaves 10% unmatched to be contributed by the company.

As has been posted above, 10% added to the higher rate (salary plus 9.1%) is slightly higher but basically the same as 20%.

CEP is the Cash Equivalent Payment, formerly the stock options. Used to be paid once a year, now to be paid on 24 pay periods, equally.

[Commonwealth]

Are the CEP available to new hires? How much are they?

[Aviator12]

FO first year:
81.81 x 77.5 MMG x 12 months = 76 083
X1.1 WSP= 83 691
+$7312 Stock option replacement (CEP) 24 equal payments (assuming 1st year gets it. Old contract was after 1 year on property. Language to follow on this contract)
= $91 003

2 years completed is when the nice big hike comes:

$130 072

Potential additional unknown amounts:
-profit share
-owners performance award

[Nashbandicoot]

Are the CEP available to new hires? How much are they?

After 1 year on property currently.