OrionIsDaddy
Well-Known Member
Will this be the end of the MIP?
"Pay Mix" update...
- Thread starter OrionIsDaddy
- Start date
APeonInALandOfCorpLackies
Member
I think it will be something like this:
Increase midpoints by x%. Reduce MIP by x*2%.
Most likely:
Sup: Increase midpoint by 3.5%, reduce MIP by 7%.
Mgr: Increase by 7%, reduce MIP by 14%.
Director: Increase by 14, MIP reduce by 21%.
Anyone that ends up below the new range gets a bump to the bottom of the range, anyone else gets no salary increase.
That would keep a uniform MIP of 10% for Sup, 20% for Mgr, 30% for director.
They wouldn’t give out a ton of raises since most people are unlikely to be that close to the bottom of their range AND they get to reduce MIP payout.
Welcome to your “enhanced” pay package. You don’t get a raise but you get more potential!!! Even though 70% of workforce must only get a 2.5% increase as mandated by Corp Comp bell curve/forced distribution 1980s IBM pay model.
(Funny that when they reworked retirement that their projections on what you’ll end up with were based on impossible 4% yearly raises that our Corp Comp explicitly attempts to prevent.)
Increase midpoints by x%. Reduce MIP by x*2%.
Most likely:
Sup: Increase midpoint by 3.5%, reduce MIP by 7%.
Mgr: Increase by 7%, reduce MIP by 14%.
Director: Increase by 14, MIP reduce by 21%.
Anyone that ends up below the new range gets a bump to the bottom of the range, anyone else gets no salary increase.
That would keep a uniform MIP of 10% for Sup, 20% for Mgr, 30% for director.
They wouldn’t give out a ton of raises since most people are unlikely to be that close to the bottom of their range AND they get to reduce MIP payout.
Welcome to your “enhanced” pay package. You don’t get a raise but you get more potential!!! Even though 70% of workforce must only get a 2.5% increase as mandated by Corp Comp bell curve/forced distribution 1980s IBM pay model.
(Funny that when they reworked retirement that their projections on what you’ll end up with were based on impossible 4% yearly raises that our Corp Comp explicitly attempts to prevent.)
Facility Engineer
New Member
Whatever it is will not be in our favor.
Scuba_Steve
Well-Known Member
We all knew the plan was to get rid of MIP when they went to 1 year vesting.
I am almost certain they will be announcing that MIP will go away next year completely to be replaced by a salary increase that will in no way make up for it.
It makes perfect sense because starting in 2023 the base salary of management no longer counts to retirement benefit calculations. The benefit calculations are forever frozen as of 12/31/22.
They could not do away with MIP, and give everyone a salary increase to "make up for it" (we know whatever small increase they do won't) until after the end of the retirement plan this year because any salary increases would have increased benefits that would have to be paid 'forever'.
The MIP going away totally coincides with the retirement elimination plans made back in 2017, the changing of MIP to 1 year vest 5 years ago, and the management retirement benefits accruals ending at the end of this year, and probably also to coordinate with the teamsters contract year.
Make no mistake, this was ALL planned together, many years ago as part of one big plan to drastically reduce management benefits and pay.
I am almost certain they will be announcing that MIP will go away next year completely to be replaced by a salary increase that will in no way make up for it.
It makes perfect sense because starting in 2023 the base salary of management no longer counts to retirement benefit calculations. The benefit calculations are forever frozen as of 12/31/22.
They could not do away with MIP, and give everyone a salary increase to "make up for it" (we know whatever small increase they do won't) until after the end of the retirement plan this year because any salary increases would have increased benefits that would have to be paid 'forever'.
The MIP going away totally coincides with the retirement elimination plans made back in 2017, the changing of MIP to 1 year vest 5 years ago, and the management retirement benefits accruals ending at the end of this year, and probably also to coordinate with the teamsters contract year.
Make no mistake, this was ALL planned together, many years ago as part of one big plan to drastically reduce management benefits and pay.
DELACROIX
In the Spirit of Honore' Daumier
So...Once they get rid of your MIP...You will be given a good raise..Then you will be given an option to contribute to a matched 401K in lieu of any future pension credits.
The elimination of the management's pension vesting does have a connection to the 2023 Contract, the timetable is obvious. I believe that the Company is trying to get rid of ALL their defined pension obligations, the UPS Pension Plan for the Part Timers is next. They can transfer funds and pension credits into the IBT/UPS pension plan for every full timer that had credit as a part timer, right now it pays peanuts. The current part timers will be able to contribute to a (portable) matched 401K and still retain any previous pension credits if they are vested.
It would be very similar to the Western..those part time years are automatically transferred into their full time years for vesting and benefits, you get one pension check instead of two or three paid from the same trust. Every participant under the IBT/UPS pension plan will benefit if that happens.
OrionIsDaddy
Well-Known Member
Nobody would quit this close to the end of the year. Forfeit your last MIP ever if you leave.
"Pay mix" are the key words here.
And Tome eluded to it during her town hall last month. "We are going to reswizle the dials to get more pay in your pocket each month" aka turn down the mip a lot and turn up your salary a little
Most negative announcements have been made right before or during Peak. Think benefits. Or the RSU system. And the redetermination of how management vacations work. As in can’t use all your vacations and then retire. Get prepared for bad news and Happy Peak
RandomUPSDude
New Member
If they get rid of MIP, what happens to the Ownership Incentive? Will that disappear with it? That would be a hit, but I can't imagine they would continue it without the MIP.
DELACROIX
In the Spirit of Honore' Daumier
Just how many incentive award programs do you guys have?
MIP’s, OIA’s, RPU’s ...PIA’s (are there more on the executive levels)?
Commercial Inside Release
Well-Known Member
Its holiday time and management is doing what's important: counting their money.
Countdown to peak. Cha Ching…
Just heard management insurance is going to be more expensive, (more money in your pocket??) just think you get to work extra hours for less money. So glad my insurance is covered as a teamster.
LongTimeComing
Air Ops Pro
I don't know....Tome hasn't given me bad vibes yet. She would be entering her entire foot into her mouth if this turned out to be a net loss for us.
I do think MIP will be Jones'd with, but I don't think it'll be the doom and gloom like had been suggested.
I do think MIP will be Jones'd with, but I don't think it'll be the doom and gloom like had been suggested.
OrionIsDaddy
Well-Known Member
Cause they werent needed. Ill be honest my position is unnecessary. Im just waiting to get bought out and im gone!
Bought out? No way…. Ride your gravy train as long as you can.
Promote the business and you’ll survive.
LongTimeComing
Air Ops Pro
People were getting let go in bunches long before she took over... are you new?
It's the nature of big business.
And to John's point, it was mostly unnecessary staff. I say 'mostly' because I don't agree with the complete gutting of HR. At all.
Ops management, in particular, is long overdue for a compensation reassessment. But I'm not ignorant...I wouldn't be surprised if this turned out to be another "enhancement" that's ultimately
tier than what we have now... I'm just saying that I don't think so. It would fly in the face of what they've been hinting lately... including chirps in the internal grapevines that I'm privy to. I guess we'll see...
LongTimeComing
Air Ops Pro
You in OE or PE? Lol
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