BEHIND THE SCENES OF USAPA INSURANCE
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It is clear to anybody paying attention that USAPA's only plan is to purchase a date-of-hire seniority list from Doug Parker with a cost neutral contract. There is no back up plan, and there are few if any plans to address any of the other representational needs of pilots (and particularly the needs of America West pilots). There has been little thought given by USAPA to other representation matters. Obviously, a union whose slogan is "Seniority Matters" is willing to accept the loss of important representational protections in pursuit of the ultimate goal of stapling 90% of another pilot group to the bottom of the seniority list.
Don't believe us?
Consider how USAPA has responded to the "noise" (USAPA's term) that ALPA has made in regards to insurance products. Insurance might seem like a small component of union representation to some, but over 2500 pilots East and West use ALPA insurance products. Because of the overwhelming concern of those pilots, ALPA sent out an informational mailer about insurance in mid-February. Prior to that mailer, USAPA had done little to address that issue.
Still don't believe us?
Consider the following email from USAPA Communications Chairman Scott Theuer to the other USAPA leaders (we've highlighted some interesting points):
From: "Scott Theuer"
To: "USAPA President-Bradford Steve" , , "USAPA-Sec Treas-King Mark"
Subject: Insurance, Aeromedical and Line of Credit
Date: Sat, 23 Feb 2008 18:27:03 -0500
Gents,
Unfortunately, because it has taken us awhile, ALPA has, through a spiffy glossy mailer delivered today, defined our insurance response for us. It is:
These are the products we need to offer:
Monthly Loss-of-License (must be "own-occupation")
Lump-Sum Loss-of-License (must be "own-occupation")
Group Term Life (without any exclusions)
Ten-Year-Level Term Life (without any exclusions other than suicide)
Short-Term Disability (must be "own-occupation")
AD&D
Long-Term Care
We need to be able to supply these without requiring new medical evidence of insurability, and without pre-existing condition limits. Also, we committed to insuring non-members , ALPA says this is not possible.
Costs must be competitive.
Life insurance must be available as a "transfer" program.
We need specifics on plan design, limitations, or exclusions for pre-existing conditions.
We need to be able to refute the claim that by having the insurance companies responsible for the support, enrollment, billing and claim processing it will still be competitive cost-wise.
I've just spoken to Harvey Watt regarding my own insurance. To-date, they have no LOL insurance available for age 60-65. ALPA says, "ALPA is in the process of amending plans affected by the age change to incorporate extension of active members to age 65 where possible, without new evidence of insurability requirements." This will be a problem.
Insurance roll-over applications must be available so that on day one, a pilot is covered.
>From ALPA, "For a true transfer to occur, a USAPA member would wake up in the morning after the ALPA termination with exactly the same terms. and no additional hoops to go through to keep what the member had with ALPA. We think it unlikely that any insurance carrier would go unprotected into that risky situation."
Then, there's Aeromedical. All the following is my opinion: Pete's a good guy, and highly respected. However, we're fussing around with him, and (to-date) he has said he will not work with/above/under Harvey Watt. Pete is developing his "own program." I believe there is zero chance that Pete could have a credible Aeromedical program, staffed by more than just Pete, up-and-running on day one. (If anyone noticed, he actually said, on video, that it would be difficult to replace ALPA Aeromedical and "of course it wouldn't all be running on day one." Wrong answer.) Spike's been talking to him, but we're not making any real headway. In my opinion, at the very least, it's Harvey Watt. It might be Harvey Watt with Pete as a liaison or over-seeing. It might be Harvey Watt with Pete taking the "difficult" cases.
It might be Harvey Watt now and Pete later. But it's Harvey Watt, with or without Pete, and we need to get a contract and plan setup ASAP. Spike was trying to setup a meeting with Pete on the 26th - Pete said he's unavailable the entire day. Spike's now working on afternoon or evening of the 25th.
Spike will be here, and I am available. While I am willing to do this with just Spike, it's not really my gig. He knows Steve B. better and Steve's President so I think, unless it is impossible Steve should be there too.
So, I believe we need, within the next very few days, the following:
Commitments and contracts on all the above insurance products, with complete and full details
Aeromedical plan contracted and committed-to, with all plan details available
A commitment on our Line of Credit. The bank has had more than enough time to make this decision, and we now have an election. In my view I would call them on Monday, and let them know that absent a commitment by end-of-business we're shopping our business (which I think we should be doing anyway). I can get a signature loan for damn near a year's salary.
We're asking for a line of credit worth 13% of our annual CONTRACTED income.
I have multiple credit cards, each with 15-20% of my annual income in credit line. They should have committed two weeks ago.
Anything that is missing or unaddressed from all the above items will be picked-up on by ALPA.
I don't mean to be an alarmist Gents, but we have fires going everywhere which will be challenging enough; we shouldn't even be dealing with basic infrastructure and services 53 days out. By the end of this week, I would like to be able to address every one of the above items. At that point we'll be 47 days out. I believe our internal deadline for services and complete infrastructure should be 40 days, and not a day less. Even at that point we will start losing credibility and votes. After 30, ALPA will eat us alive.
Right now, 5,300 pilots have nothing more than our promise that they will have services, Reps, insurance and Aeromedical in 53 days. For a group as downtrodden as this, I'm amazed they've hung in there this long. I believe we will start losing them soon.
Again, not trying to scream too loud, but did I mention we have 53 days?
Scott
After receiving the above email, USAPA's fearless self-appointed leader, Steve Bradford, desperately forwarded it to Harvey Watt:
From:
[email protected] [mailto:
[email protected]]
Sent: Saturday, February 23, 2008 9:40 PM
To:
[email protected]
Subject: Fwd: Insurance, Aeromedical and Line of Credit
xxx,
The other side is starting to beat us up. This is an election. One of USAPA's weapons in this election is Harvey Watt. We have no ammunition. We need product!
The "perfect is the enemy of the good." Please light a fire under your ING guys or whomever is going to supply this product and tell them that the other side is beating us because we cannot put contracts on the table.
Thanks
Steve Bradford