Is Frequent Flyer Miles ownership moving from employees, to employers?

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@awilcockson – With all due respect, your posting makes a key incorrect assumption about me in the sentence "Let us not forget … ".

With no respect at all, many of us saw your original post and zero doubt about your intentions.

@lovetravellingoz – please, please, why are you painting me like this?

perhaps because your first post said something along the lines of "hey employers, are you interested in finding out how you could save money by screwing your employees out of their FF points?". And sorry, but the reading books to kids defense is hilarious, thanks you've made my day.

Edit: because apple's spell checker hates me
 
I stringly suspect than any employer that tried to claim ownership of FF points (or indeed points in any consumer loyalty program), would find itself on some shaky legal ground.

Consider the reason that points and redemptions aren't taxable (except in a couple of specific cases). This is because the courts have ruled that the benefits of a consumer loyalty program accrue because there is a contract between the consumer and the loyalty program.

I suspect an employer may run into trouble trying to push itself into that contractual relationship.
 
I had dealings in the 90's with a pharmaceutical company based in New Jersey who used UA business class for their staff & it was their philosophy that as their employees were frequently away from their families for work, the ability to earn points & redeem for free personal travel was a 'perk' they were happy for their staff to have.

I think this is the way most (responsible) companies and employers look at it.

I worked in government some years ago (prior to the no-FF-points deals) and I'm pretty sure the only reason this stupid new system ever came into force was because some do-gooders kept bleating in the media about politicians and public servants accruing points "at the the taxpayers expense" as though this was somehow immoral !! :evil:
 
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@rtyuiop – Danny, thank you, thank you, thank you! I'm glad you agree. Sometimes, things are taken away from us, but other things are given in return. So, the question in this context is what would you accept in exchange for losing your FF miles, given your status (gold card, lounges, etc) is not affected?

I'm not looking for answers to the above, because everyone will have a different personal demand. Sometimes, employers do things that are out of our control, as employees .. salary freezes, car policy downgraded, no more business class travel, having to pay for drinks at work, hard toilet paper instead of soft (!), etc. It's too easy to conclude the company is doing it to spite the employees, but I think it's usually a last resort. When we're faced with such changes, it's far healthier to see the glass half full than half empty. If we always see it as half empty, we can always leave, but in most developed countries in the world today, leaving, and looking for a new job, isn't the preferred option.

Danny, I agree the recession is location/industry dependent … it's just that it seems to cover a lot of countries and industries at the moment.

Anyone remember the TV program Dallas. As that nasty, nasty man, J.R. Ewing, used to say "everyone has his price" …

@medhead – Interesting point that governments haven't gone back to negotiate cheaper fares, but have banned the earning of FF points. So, aren't the governments leaving money on the table? Whether they use them to reduce future spend, or make employees happier by letting them benefit from them, aren't they still a currency that has value?

Genuinely pleased to hear economic situation in Australia is so much better than in other countries. How are property prices in the main cities? That's one good indicator. Where I am, property is still going up!


See @rtyuiop's comment on the generic idea of getting something when something was taken away, and my reply, above. You've clearly had some bad experiences with employers .. I didn't say they'd give you something for free. Let's say, the company took away benefit A from you, but in return, you got new benefit B. You are just as happy with B as you were with A. By definition, you don't have a problem here. Now, if you knew benefit A cost the company $100, but benefit B cost them only $50, do you now have a problem? If so, why? They've made you no less happy, but cut their expenses. In tough times, the accumulation of those savings could save jobs .. yet all the employees are happy, as A = B on a satisfaction level. What could be wrong with that?

I've been called some things over the year, but never an HR person! No, I'm not.

No idea what Citrix is …

@moody – Good points, even though you got a bit emotional in your final paragraph! Just wanted to make sure that my terminology was not ambiguous. By referring to public company, I meant one traded on the stock exchange, not a government owned company.

@wilcockson – Hey, I humbly admitted a few postings ago that I misjudged the rules of this forum with my original posting. That's why I reposted with a generic question, and I think that some really good points and thoughts have been raised by many throughout these answers. Having said that, it doesn't change the fact that what you wrote in your sentence "Let u not forget .." has a key error/incorrect assumption in it. I'm not going to discuss the details, because that would take the discussion away from the generic question.

As for my children's books, I'm really glad I made your day. I've changed my avatar to one of the illustrations from my first book, specifically for you. Oh, it sold 10,000 copies, in this country with a population a third of the population of your country. Can't tell you the name or point you to the website of the books, as I'd be accused of trying to sell my books in Australia :D

@oz-mark – You have made an excellent point here. Having said that, certainly, in the US, there are huge companies that own the miles and use them to reduce travel cost .. so it cannot be illegal there.

You might be interested to know what I've learned about how it works in France (and no, I'm not from France!). French taxation law means that FF miles are seen as revenue and as a result, are taxable. So, French companie don't want to touch the miles, as they don't want the tax bill. So they let the employees have the points. Oh, nice French companies, you may say? Let's all move to France? Well, there's more. The French employees book their flights o ntheir personal credit cards. The companies reimburse them in about 60 days, but the employees hae to pay off their credit cards in about 30 days. So, firstly, the French companies use their employees a banks, for interest free loans. But there's more. Because the majority of employees have modest limits on their cards, they choose to book the cheapest flights. So, the companies reduce their travel bill. So now, Jean-Pierre gets the minimum points from the cheapest flights, has to check he can but food at the supermarket because his card hasn't hit the limit, whilst the employer gets an interest free loan and reduce travel cost. I'd prefer the employer paid for the tickets, got the FF points, and I could confidently buy food for the kids…. But that's just me.

Regards

Stuart
 
:evil:

I think this is the way most (responsible) companies and employers look at it.

I worked in government some years ao (prior to the no-FF-points deals) and I'm pretty sure the only reason this stupid new system ever came into force was because some do-gooders kept bleating in the media about politicians and public servants accruing points "at the the taxpayers expense" as though this was somehow immoral !! :evil:

Spot on! It was brought in because of exactly that. You can thank KRudd for that one, pandering to the minority being...

Personally I had no issue with Government workers accruing them (The only difference is they are paid by the taxpayer not a private enterprise at the end of the day). Heck I didn't care that politicians accrued them either.
 
With no respect at all, many of us saw your original post and zero doubt about your intentions.

perhaps because your first post said something along the lines of "hey employers, are you interested in finding out how you could save money by screwing your employees out of their FF points?". And sorry, but the reading books to kids defense is hilarious, thanks you've made my day.

Edit: because apple's spell checker hates me

A friend of mine said the other day "when you think you're screwing someone else, someone else is screwing you". :idea:
 
@rtyuiop – Danny, thank you, thank you, thank you! I'm glad you agree. Sometimes, things are taken away from us, but other things are given in return. So, the question in this context is what would you accept in exchange for losing your FF miles, given your status (gold card, lounges, etc) is not affected?

That's easy - an equivalent pay rise to pay for the tickets my miles buy otherwise. Which would cost my employer many times more than the saving they get from a miles-less airfare...

Signing off this thread now, I think it's gone well past being productive.

Danny
 
AFAIK they still do.

Interesting, as the change last year was for all government travel - Considering politicians were the ones being targetted. Might need to investigate..
 
Spot on! It was brought in because of exactly that. You can thank KRudd for that one, pandering to the minority being...

Personally I had no issue with Government workers accruing them (The only difference is they are paid by the taxpayer not a private enterprise at the end of the day). Heck I didn't care that politicians accrued them either.

Fair dinkum for a journo should know how to perform basic fact checking. FF points for APS employees were abolished well before Rudd, I've been with the APS for many years and have never received them.

http://www.apsc.gov.au/circulars/circular996.htm

http://www.apsc.gov.au/values/conductguidelines12.htm

Scroll down to the FF point section and you can see the link for a 2000 follow up audit re Management of Public Sector Travel Arrangements.

Well before the Rudd era.


Here's another perspective, FF points and their associated benefits are generally considered intangible. If you could actually hold something your employer paid for would you still consider that you own it rather than just are using the item whilst employed and that it must be returned when you leave?
 
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@medhead – Interesting point that governments haven't gone back to negotiate cheaper fares, but have banned the earning of FF points. So, aren't the governments leaving money on the table? Whether they use them to reduce future spend, or make employees happier by letting them benefit from them, aren't they still a currency that has value?

I guess you ignored when I said there are other much easier ways to save on airfares purchased for business and government, rather than stuffing around of FF points.

How are property prices in the main cities?

Mixed but still going up on average. Yes, we are trapped by a house price bubble.

See @rtyuiop's comment on the generic idea of getting something when something was taken away, and my reply, above. You've clearly had some bad experiences with employers .. I didn't say they'd give you something for free. Let's say, the company took away benefit A from you, but in return, you got new benefit B. You are just as happy with B as you were with A. By definition, you don't have a problem here. Now, if you knew benefit A cost the company $100, but benefit B cost them only $50, do you now have a problem? If so, why? They've made you no less happy, but cut their expenses. In tough times, the accumulation of those savings could save jobs .. yet all the employees are happy, as A = B on a satisfaction level. What could be wrong with that?

I've been called some things over the year, but never an HR person! No, I'm not.

Here is the total failure of you trading off benefits idea. I will only trade off for something that is better - not the same. Your premise assumes that employees are not capable of assessing equivalent value. Good luck with pushing that.

IME HR people are agents of the employer who are used to subjugate the employees. Sounds like you are pushing the same stuff.


Spot on! It was brought in because of exactly that. You can thank KRudd for that one, pandering to the minority being...

Fair dinkum for a journo should know how to perform basic fact checking. FF points for APS employees were abolished well before Rudd, I've been with the APS for many years and have never received them.

Well before the Rudd era.

Exactly, and earning of points in one of the state government was also excluded long before Rudd was around. IME
 
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Fair dinkum for a journo should know how to perform basic fact checking. FF points for APS employees were abolished well before Rudd, I've been with the APS for many years and have never received them.

Archive

APS Values and Code of Conduct in practice

Scroll down to the FF point section and you can see the link for a 2000 follow up audit re Management of Public Sector Travel Arrangements.

Well before the Rudd era.


Here's another perspective, FF points and their associated benefits are generally considered intangible. If you could actually hold something your employer paid for would you still consider that you own it rather than just are using the item whilst employed and that it must be returned when you leave?

Actually I'm not a journo HVR ;). I was referring to this:

Swan axes politician's frequent flyer points

however when it came out last year I was working on the Henry Tax review lockup so didn't pay much attention to it.
 
Actually I'm not a journo HVR ;). I was referring to this:

Swan axes politician's frequent flyer points

however when it came out last year I was working on the Henry Tax review lockup so didn't pay much attention to it.

Why weren't pollies included in the cull first time round along with APS, they are still classed as Public Servants are they not?

Oh let me guess - the ol' 'do as I say not do as I do' mantra.
 
Federal public servants lost their FF points during the Howard government. Most state governments followed suit. (Not sure if all are now that way).

KRudd axed the points for politicians. Not sure what the case is for ministerial staff (they are not public servants).

Then there's local government ..... whole different ballgame there!
 
I guess you ignored when I said there are other much easier ways to save on airfares purchased for business and government, rather than stuffing around of FF points.

Here is the total failure of you trading off benefits idea. I will only trade off for something that is better - not the same. Your premise assumes that employees are not capable of assessing equivalent value. Good luck with pushing that.

. IME

"Missed" rather than "ignored" is perhaps more accurate! Went back to your original posting ... OK .. good point.

Most companies I've worked for announce new policies ... some are better than what they replace :), but many are not :( . For latter, IMHO, employees are not usually in a position to negotiate. When the car policy was downgraded, I couldn't say "I'll accept it only if you give me free fuel" .. or whatever .. it was the new policy. Next best alternative was a door marked "exit"
 
Spot on! It was brought in because of exactly that. You can thank KRudd for that one, pandering to the minority being...

Personally I had no issue with Government workers accruing them (The only difference is they are paid by the taxpayer not a private enterprise at the end of the day). Heck I didn't care that politicians accrued them either.
I do not believe politicians should be able to accrue FF points. That may indeed have stopped as I remember articles in newspapers in the last couple of years listing the number of FF points accumulated by some politicians.

IME HR people are agents of the employer who are used to subjugate the employees. Sounds like you are pushing the same stuff.
Human Resources? Sorry, but they are waste of time and on the side of the employer 99.67% of the time.

A HR mistake cost me ~$1,000 in superannuation in my current job but I did not pick it up until ~18 months later. Even though I have proved that I did nothing wrong and it was an error on the part of HR they still do not want to know anything about it.

What would need to happen for Human Resources to help me?
 
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Human Resources? Sorry, but they are waste of time and on the side of the employer 99.67% of the time.

A HR mistake cost me ~$1,000 in superannuation in my current job but I did not pick it up until ~18 months later. Even though I have proved that I did nothing wrong and it was an error on the part of HR they still do not want to know anything about it.

What would need to happen for Human Resources to help me?

I think that is what I meant by saying the HR subjugate employees. In order to get HR to help you then you would need to become management.

On the super, there is a statutory requirement to pay everything you are owed. If that hasn't happened then I would pursue it as per the link provided.

Federal public servants lost their FF points during the Howard government. Most state governments followed suit. (Not sure if all are now that way).

Then there's local government ..... whole different ballgame there!

There is one state government that was still allowing points in 2009. You'd hope that local government didn't have as much flying travel as the higher levels of government just because most of their activities should be local.
 
John if you believe you have a genuine complaint re super you could pursue through here

I think that is what I meant by saying the HR subjugate employees. In order to get HR to help you then you would need to become management.

On the super, there is a statutory requirement to pay everything you are owed. If that hasn't happened then I would pursue it as per the link provided.
Probably should have given some more information but I don't believe I can get any help from anywhere which is why I was hoping Human Resources would admit the mistake and credit back ~$1,000 to my super account.

When I started at my current job I was given a form to fill in for super derails. It also included information about life insurance and income protection. I don't want life insurance and income protection is complimentary. I was not too sure how to fill out the form so I sent HR an email and they explained how to fill out the form.

So I fill out the form as explained that I do not want life insurance or whatever it is called.

Fast track 18 months later and I finally look at a super statement and notice that ~$170 a quarter in life insurance charges. What? Yes it has been happening for 18 months, so for 6 quarters.

I have been in touch with superannuation company but they cannot do anythng as the super has changed hands from Legg Mason, to ING and now Onepath.

So what has happened is Human Resources or someone at the previous superannuation company has included the life insurance option on my superannuation when I clearly stated I did not want it.

Apparently it is my responsibility to check the statements and they take absolutely no responsibility for making mistakes. :confused: How about if the superannuation company should have been paying 10% interest and were only paying 1% instead. Are they responsible or am I responsible for this mistake? How about if payroll was only paying me 70% of my salary for 18 months and I realised the mistake. Do they owe me any money or is it my responsibility again?

I am guilty of not checking. They are guilty of making a mistake. It should be their responsibility to fix it.
 
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