A question on ethics
#46

Join Date: Aug 2006
Location: Boston environs
Programs: AAdvantage
Posts: 559
It seems to me that the perfect rational market value of the TSP payment
would be the cost to upgrade from the level of ticket bought by the
company. Then the person can either use the TSP to upgrade, or replace
it with the [obviously same market value] miles/status that is rightfully
their own to spend.
Obviously, this is not feasible, since that market value changes with
every trip!
--LG
would be the cost to upgrade from the level of ticket bought by the
company. Then the person can either use the TSP to upgrade, or replace
it with the [obviously same market value] miles/status that is rightfully
their own to spend.
Obviously, this is not feasible, since that market value changes with
every trip!
--LG
#47
FlyerTalk Evangelist
Join Date: May 2001
Location: LAX; AA EXP, MM; HH Gold
Posts: 31,789
So here's what happened here:
*Coworker A buys a $4000 J ticket as he is allowed to.
*Coworker B takes the $1000 (our company's amount) to buy a Y ticket (to save the company money). The lowest available Y ticket is $1000. So, the company should save $2000. She, however, bought the lowest upgradeable fare and upgraded with miles. That ticket was $2400. The company only saves $600 (and spent $1000 to save that $600).
*Coworker A buys a $4000 J ticket as he is allowed to.
*Coworker B takes the $1000 (our company's amount) to buy a Y ticket (to save the company money). The lowest available Y ticket is $1000. So, the company should save $2000. She, however, bought the lowest upgradeable fare and upgraded with miles. That ticket was $2400. The company only saves $600 (and spent $1000 to save that $600).
Although the company's total savings were only $600, co-worker B's travel still cost the company less $$$ than co-worker A.
A better policy (in my view) would be one that splits the savings evenly between the employer and the employee. If I wrote the policy, co-worker B would have been given $800, not $1,000. Co-worker C, who bought the non-upgradable ticket, would have received $1,500. That way, the employee and the employer would evenly share the savings.
If it were my company, I'd fix the policy. Why? Because it's capable of producing absurd results. What if the absolute cheapest available coach fare is $3,200? Employee opts to take $1,000 (your company's flat payment for opting to fly coach) and buys that $3,200 ticket and upgrades. Looks to me like the employee is better off by $1,000 but the company is worse off by $200. Unless your company policy prohibits buying coach when the price difference is less than $1,000, one could comply with the policy yet end up costing the company more $$$ than did the recently fired employee.
#48


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#50


Join Date: Jun 2007
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I seem to have lost a post on this thread too - not that it said anything that violated the TOS. I just said that I thought the OP's Director was right that there was an ethical issue: the compensation is for forgoing the privilege of travelling in business and suffering in Y. If you don't travel in Y, then you don't earn the compo. This is the way you initiate a general change of policy to fly everyone in Y - by demonstrating that people will trade down for far less than they expect the company to trade up.
#51


Join Date: Feb 2005
Location: Boulder, CO
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Posts: 7,055
The compensation isn't there as a reward for some sort of self-flagellating masochistic mentality, it is there to encourage employees to act in a way that saves the company as much money as possible. If employees can preserve the maximum savings possible in a given situation, then there is no ethical violation if they choose to use their own resources to upgrade.
#52
Original Poster
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Join Date: Mar 2006
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A better policy (in my view) would be one that splits the savings evenly between the employer and the employee. If I wrote the policy, co-worker B would have been given $800, not $1,000. Co-worker C, who bought the non-upgradable ticket, would have received $1,500. That way, the employee and the employer would evenly share the savings.
.
#53
Join Date: Oct 2003
Location: LAX
Programs: Legacy UA 1K MM (new UA has downgraded me to Premier Gold or former 1P), AA ground level, Marr X4
Posts: 20
This is a clear ethical violation. You should have returned the plane ticket and expensed your mileage at the going rate.
What if the only ticket your company could find had been a $5000 first class ticket - would you still have been comfortable doing what you did?
A quick ethics test - Did you tell your manager what you did?
What if the only ticket your company could find had been a $5000 first class ticket - would you still have been comfortable doing what you did?
A quick ethics test - Did you tell your manager what you did?
In my own defense, the 2 x 300-miles of driving was on my own time at my
own expense.
I did not order up the Y-ticket. I walked into the office, it was handed
to me, with the words "be there Monday".
If the company did not think the value of my presence at the convention
was worth the full fare Y ticket, they wouldn't have sent me.
Having decided they needed me there, THEY ordered up the ticket through
our contracted travel agent. I didn't even know I was going until I
walked in Monday (no opportunity to whisper to the tvl agent to get the
full fare ticket).....indeed on countless other times, I sent back a
fullfare or nearly fullfare ticket and instead volunteered to come back
Sunday so that the company can spend $298 instead of $750+ for
a non-stayover ticket.
While the ethics might be gray (the company didn't ask me or require
me to drive and expense the mileage), without any influence on my
part in the issuance of the ticket, I certainly do not see the
illegality of it.
If the company had asked me to drive, the driving time would be
considered a work day and I'm not sure my salary for the time plus
the mileage expense would not come out worse for the company.
The company saved my airport parking expense for a week; 2 extra
days per diem, 600 miles reimbursement.
I didn't do the math (maybe I should have before posting this), but
it's possible that it would have cost the company more if they asked
me to drive.
Our state labor laws make a distinction between someone voluntarily
doing something and someone being required to do something, even
if the something is the same thing. (in this case driving instead of
flying).
#55
Join Date: Oct 2003
Location: LAX
Programs: Legacy UA 1K MM (new UA has downgraded me to Premier Gold or former 1P), AA ground level, Marr X4
Posts: 20
Indeed - William Collins, the former Chief Dental Officer in Northern Ireland was sacked and jailed for claiming the same expenses from the Government and from the Dental Council. Either body would have been happy to pay the expenses, but it was not OK for them both to pay the same expenses, leaving Mr Collins to pocket the difference:
http://www.highbeam.com/doc/1P2-12818053.html
I presume Mr Collins thought the amounts were small, the net effect to his employer was negligible and that he was too important to be called to account.
http://www.highbeam.com/doc/1P2-12818053.html
I presume Mr Collins thought the amounts were small, the net effect to his employer was negligible and that he was too important to be called to account.
and it is fraud.
But the moment we take a personal phone call on a company phone, use
a company pencil to write a note to ourself on a company Post-It Note,
use company lighting to read a personal magazine, haven't we stolen from the company?
#56
Moderator: Delta SkyMiles, Luxury Hotels, TravelBuzz! and Italy




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#57
Original Poster
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Join Date: Mar 2006
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Double dipping is clearly illegal and unethical. We call it unjust enrichment,
and it is fraud.
But the moment we take a personal phone call on a company phone, use
a company pencil to write a note to ourself on a company Post-It Note,
use company lighting to read a personal magazine, haven't we stolen from the company?
and it is fraud.
But the moment we take a personal phone call on a company phone, use
a company pencil to write a note to ourself on a company Post-It Note,
use company lighting to read a personal magazine, haven't we stolen from the company?
#58
Join Date: Jun 2006
Location: BOS
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On another occasion, I needed to report to OKC on Monday for a job interview. A Y-ticket was sent to me. Again, I kept the Y-ticket, found a M-class ticket (requiring Sat overnight) to DFW. On Sat, I flew to DFW, hung around DFW eating delicious BBQ, and got in my self-paid rental car and drove to OKC Sunday night. I turned in my bargain National car, and picked up the Hertz car that was already waiting for me. Monday night, I turned in the Hertz car, got into another rental car and drove to DFW for my flight home. Even after the additional hotel, car rent, and BBQ charges, I came out ahead.
#59
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Are payments under a TSP taxable? (reported to the government as imputed income)?
Are payments under a TSP taxable? (reported to the government as imputed income)?
#60


Join Date: Jun 2007
Location: MEL
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But it's not; the compensation is for foregoing having someone else pay a large cost for you to be guaranteed travel in business class, and thus to save the company as much money as possible by buying the cheapest possible Y ticket. If the cheapest possible Y ticket is upgradeable and if the traveler chooses to spend his/her own miles/certificates/money to upgrade, then the company's policy has been followed and there is no ethical issue.
The compensation isn't there as a reward for some sort of self-flagellating masochistic mentality, it is there to encourage employees to act in a way that saves the company as much money as possible. If employees can preserve the maximum savings possible in a given situation, then there is no ethical violation if they choose to use their own resources to upgrade.
The compensation isn't there as a reward for some sort of self-flagellating masochistic mentality, it is there to encourage employees to act in a way that saves the company as much money as possible. If employees can preserve the maximum savings possible in a given situation, then there is no ethical violation if they choose to use their own resources to upgrade.
Pretty sure they would be in the UK. I believe FF points are also a taxable benefit when they are accrued through work.



