Delta Air Lines, Inc (NYSE:DAL) has always stood out from the rest when it comes to profit sharing with its workers. It has been giving its employees good bonuses but that hasn’t been the same thing happening at American Airlines Group Inc (NASDAQ:AAL).
The state of affairs at American Airlines
The employees at American Airlines have been receiving meager bonuses with a large number expressing dissatisfaction in the management and how it conducts its business. This won’t be the case anymore! That is considering that the business guru has decided that it will be giving the employees double of what they have been receiving in bonuses.
Reports indicate that $213 million has been set aside for about 130,000 employees which they will share in the form of bonuses. Analysts say that the amount s 1.4% of the annual salaries of the employees which also translates to an extra payment of about four days.
The most outstanding attribute about new changes is that the employees will be receiving higher economics gains than those in other companies. The President for the Transport Workers Union known as John Samuelson has commended the business guru upon its latest strategy.
Employees can look forward to better times ahead
For a long time employees at American Airlines have been watching employees in other businesses take home larger profit-sharing margins. It was jaw-dropping witnessing Dela about $1.6 billion to employees in the form of bonuses. This was rather motivating to the workers and at the same time quite discouraging to those working at American Airlines.
Another incident involved Southwest Airlines which is based in Dallas. The company took to giving its employees bonuses that amounted to almost $667 million. This was representative of pay of almost six weeks.
Business analysts have spoken about the matter outlining that profit sharing is indeed a good thing. According to him, profit-sharing went a long way in helping companies give a major boost to what employees earn and at the same time protects the corporate finances through the difficult times.
They add that employees work harder whenever they understand that they have something to gain from the efforts they make. As a result, the company ends up reaping higher profits.