United workers get profit sharing pay

United Airlines said Wednesday it has distributed $110 million in profit-sharing payments to U.S.-based employees.

The means 51,000 U.S.-based employees can expect to receive a profit-sharing payment of about $1,200, before withholdings, for every $30,000 of eligible earnings.

For the year, employees earned about $170 million in payments related to the airline's 2007 performance.

"This was based on having a good year," United spokeswoman Megan McCarthy said.

This is the second year United provided profit sharing to its employees and the benefit is part of the union contracts.

But United's Association of Flight Attendants believes the "shared pain, shared rewards" mantra during the airline's bankruptcy still hasn't translated well for employees.

"Remember, this is a product of negotiations during the bankruptcy. It is in our contract," union spokeswoman Sara Nelson said about the profit sharing. "This doesn't change the fact that executives have re-negotiated their contracts since that time. This is not meaningful success sharing for employees."

Nelson said profit sharing is triggered when the profits are at least $10 million. Then a pool is created for distribution to employees.

For 2006, the annual profit was less, about $25 million, and the pool was only 7 percent of the profits. In 2007, the profits were around $700 million and the pool was 15 percent, Nelson said. For example, this year's payout for 2007 is about $1,200, compared to $108 for the prior year, she said.

AFA-represented employees elected to receive their profit-haring award in the form of a company contribution to their 401(k) to the extent possible.

"I don't think that this profit sharing will have a big impact on employee relations because it was in their contracts and based on the company's performance, said David Stempler, president of the Air Travelers Association.