Thursday, May 3, 2012

ALPA President Receives Huge Pay Increase!

What! How could that be, we were told that he took a reduction in direct compensation!

How the DPA loves to change the numbers to fit their own facts. Once again they have succeed in manipulating the LM-2 numbers to show something that is a flat out misrepresentation.

What they fail to explain and fail to show is the difference between the the two LM-2 lines in their chart. Take line (D) and the fact that it shows that the 2011 President made more than his counterpart in 2010. Remember, the Presidents direct salary is based on what the top five paying ALPA carriers or his own airline whichever is higher plus taxable per diem. In this case the DAL payrates are significantly higher than the CAL payrates explaining the appearance of an "increase." His pay is based on DAL pay rates. (Even more reason to get us a raise!)

Moving onto line (E) we see that it's $0 in 2011. This money in 2010 was payed directly to the President, not so in 2011 and was the reduced direct compensation we hear about so much from our reps. The 2010 BOD did reduce the direct compensation of the President. Do not believe the DPA lies.

Line (F)? That's approved business (audited) expenses payed out of the salary (D) and then later reimbursed as approved expenses for the association.

So what's the deal with (G)? The housing, automobile, including utilities, insurance, and other costs for the year adds up to (G). This is a taxable liability, which the LM-2 shows as a disbursement.

This means that he paid taxes on an imputed value of (H) while actually earning (D). The previous president earned both (D) and (E) as income. He is not being paid $500K+ but he is being taxed as if he did. He was paid $318,872 plus per diem. That's it. This is in contrast to the previous President who did get the full amount in direct compensation.

Of course, this brings us back to the DPA premise of using the SWAPA guidelines.

  • SWAPA paid their President of approx $268,050* using Company Paid FPL to fund it and a 30% premium for running SWAPA per SWAPA Policy
  • The ALPA President made a base salary of approx $239,154 which is $318,872 including a 25% premium for running the entire 60,000+ member operation paid from dues money

Why the big difference?

The ALPA President makes his salary based on his airline rate plus a 25% increase for running the entire association. If you do the math between SWAPA and ALPA you'll see that the base salary is within $2000 of each other. So, if you exclude the SWAPA 30% override, the DPA President would then make a higher base salary than that of both SWAPA and ALPA. The alleged savings come from the DPA President moving to ATL and not needing a place to live when he is not home doing his work.

How much are CAPA dues?

*SWAPA 2011 Approved Budget