Astar/ABX -- Teamster or ALPA?

[aviatrix767]

 FedEX HKG LOA is out, and boy is it funny... I can not BELIEVE that this was voted in favor of 11-1 by our Union. Between this and DW's stand on the retro age 60 fiasco, I don't wear an ALPA pin or Lanyard anymore.

For MEM, ANC, and LAX guys who don't want to take the time to read the whole thing (and/or who aren't lawyers) before voting, here is a summary:


1--Housing allowance of $2700/mo (LOA B.2.d.i) if you rent. You'll get $1300/mo (LOA B.2.d.ii) if you buy. You have to live within 100 miles (LOA B.2.d.iii) of HKG (assuming HKG is the "base airport") Please remember that a "normal" apartment big enough to house you, your wife, and one kid is roughly 8500++ USD per month in any desirable area of HKG, and that you are RENTING, and not building equity in anything.

2--Remember the two hour limit on ground transport? That's gone. Get ready for a midnight van ride to Guangzhou for a 3 am show (LOA sect. G).

3--Want to go back to visit the folks stateside? You'll be able to do just that (along with your family) on an annual basis. . . in coach class. . . after having been in your new base for two years (LOA B.2.f). Perhaps after that amount of time you will have forgotten about Grandma. Out of sight out of mind?

4--Relocation allowance of $10K or 79 credit hours (contract 6.C.2) is now just $10,000 (LOA B.2.a) and you'll get an additional $5000. . . after 4 YEARS of staying in your new base. (LOA B.2.b)

5--Minimum commitment is 2 years (LOA B.2). Let's be conservative and assume you are single with no wife and kids, and can live in a very nice van down by the river in HKG for $6000/mo. You're paying $3,300 out of pocket (utilities aside) for rent (which we all know it lost money). . . $3300/mo for min commitment of 24 months equals your cost for living in HKG for two years-- $79,200!! Remember, that's for the van down by the river. . .

6--We're getting "tax equalization." In other words, you will pay the exact same taxes as if you lived in the USA. Isn't that the whole point of being an ex-pat, to avoid paying US Federal income tax (on the 1st 84K anyway) Take away that benefit, and still expect guys to live in THE most expensive, one of the MOST polluted (complete with air you can see), and crowded cities in the world?? I have never, ever, in the history of any US company basing employees overseas, heard of taking away the tax benefit Is FedEX honing its stand-up routine or what?

I hope FedEX is ready to fill the FO side of HKG with new hires. And I hope FedEX is ready to change its typical hiring practice. I'd love to listen in on the phone call from Kim to the typical, 38 year old, ex-military guy, with a wife and 3 kids... "Hello, congrats, you are hired at FedEX and we're ready to offer you a class date! You'll be going to Hong Kong, the most expensive city for ex-pat housing in the world. You can not afford to bring your wife, and we will not assist you in any way at all in schooling your children, because that only costs around $15,000 per year, EACH. And, we're going to pay you 52 bucks an hour! Welcome aboard!"

FedEX is going to need start hiring guys like the Commuter airlines do. 24 years old, no wife, no kids, little debt, still getting money from mom and dad, still suffering from Shiny Jet Syndrome, and willing to take ANY offer to get out of their CFI job.

This is what ALPA brings to the table. This piece of garbage ranks right up there with the 16 year deal that ALPA forced down the throats of the American Eagle pilots. Small group of pilots - - - you don't matter!

 

[Whistlin' Dan]

The goal will be to kick the support out from under ABXA's share price so that Daz's $7.75 looks to good to turn down. The key will be what DHL does. If they in turn announce they are considering not renewing ABX's ACMI...

Even that may be only a part of the story. Most hard-ball negotiations involve one or both parties walking away from the table at least once. True, DHL could be waffling on the ACMI contract to drive the stock price down, but where is it written that Astar would have to buy it? Couldn't DHL just as easily buy 49% of it, and continue to run the company independently from Astar ?

Perhaps DHL is saying to ABX that they're not going to renew the contract, unless they get exclusive use of the 767's.

Maybe this is being driven by DHL's need to re-fleet. The 767 conversion slots have some real value...is that what DHL really wants out if this?

It sounds as if DHL is putting a pincers move on ABX, and that by actively seeking flying outside the DHL network, Hete is saying to his BOD that he doesn't want any part of it. He's probably correct in his belief that the real growth in this business is in the Asian marketplace. Joe Hete and his 767's are no different from a guy with a back-hoe...on any given day, he's going to take it to the job that pays the best.

There are a number of principals and a LOT of variables at play in this, of which we know only a few. I wouldn't put anything past any of them.

 

[erichartmann]

Even that may be only a part of the story. Most hard-ball negotiations involve one or both parties walking away from the table at least once. True, DHL could be waffling on the ACMI contract to drive the stock price down, but where is it written that Astar would have to buy it? Couldn't DHL just as easily buy 49% of it, and continue to run the company independently from Astar ?

Perhaps DHL is saying to ABX that they're not going to renew the contract, unless they get exclusive use of the 767's.

Maybe this is being driven by DHL's need to re-fleet. The 767 conversion slots have some real value...is that what DHL really wants out if this?

It sounds as if DHL is putting a pincers move on ABX, and that by actively seeking flying outside the DHL network, Hete is saying to his BOD that he doesn't want any part of it. He's probably correct in his belief that the real growth in this business is in the Asian marketplace. Joe Hete and his 767's are no different from a guy with a back-hoe...on any given day, he's going to take it to the job that pays the best.

There are a number of principals and a LOT of variables at play in this, of which we know only a few. I wouldn't put anything past any of them.

Dan, you might want to re-read what I wrote. In-so-far as I know DHL/DPWN hasn't made any public announcement regarding ABX's ACMI with them. I was speculating as to what might occur.

Pure speculation on my part, but FWIW, IMHO, Joe has already told Daz to go take a long walk on a short pier. The board performing "due diligence" on Daz's offer is proforma while Joe and the ABX board make their own moves. The hiring of a COO is only the first. DHL will not get any of the 767F's not already on the ACMI at current ACMI rates. ABX may sub one of the ex Delta 767's for one of the ACMI 767's at and for it's own convienence, but that's about it.

 

[PCL_128]

This is what ALPA brings to the table.

You've gotta be kidding me! Of all the ALPA carriers, you're going to criticize FedEx ALPA? The FedEx pilots have the best contract in the industry right now! You'll ignore the industry leading contract that they just got, but complain about an LOA that they'll probably vote down. Ridiculous.

This piece of garbage ranks right up there with the 16 year deal that ALPA forced down the throats of the American Eagle pilots. Small group of pilots - - - you don't matter!

ALPA didn't "force" anything "down their throats." The 16 year contract is certainly not ideal, but it secured scope with AMR under a single list for the EGL pilots. Ask the ASA pilots how much they'd like to have scope over DAL regional flying right about now.

 

[Whistlin' Dan]

Dan, you might want to re-read what I wrote. In-so-far as I know DHL/DPWN hasn't made any public announcement regarding ABX's ACMI with them.

I was basing my statement on numerous references on this board (and others) to DHL's supposed dissatisfaction with Hete and ABX's performance.

Could be total BS for all I know. I thought ABX was doing a pretty good job. But you know how it is when you're asking the "boss" for a raise...all he wants to talk about are the things you're doing wrong.

Clearly, Hete doesn't want the fortunes of his company tied solely to those of DHL. That's really got to be pi$$ing the krauts off.

 

[Whistlin' Dan]

A Eastern scab for a D/O and Evergreen maint noid for the Senior VP. You have a right to worry.

Yea, but at least those guys wear their colors up front. The scab never denied being a scab, and the "maint 'noid," well, you knew whose side he was going to be on, didn't you? The pilots didn't pick those guys to be their leaders, they were foisted upon them.

What bothers me are the company snitches and hitmen who populate the seniority list. ALPA 917 seems to tolerate those guys a lot better than other MEC's, and a he11 of a lot better than the IBT. Has a known, documented scab ever "bought" his way back into the IBT? Ours bought his way back into ALPA. All he had to do was write a check...a check he most likely expensed back to the company.

ALPA has done a great deal for the safety of air travel and the advancement of our profession, but in the end, it's still an Association. In an "association," loyalty to your fellow members is highly specious...it can be greater or less, depending upon what your particular needs or wishes are. Think, "Aircraft Owners and Pilots Association" or "National Bromeliad Association." They're great for organizing fly-in's to Baja, or "Raising the National awareness of bromeliads," but neither organization will put anything on the line to protect your right to pursue those interests.

The IBT, on the other hand, calls itself a "brotherhood." In a brotherhood, the bonds between individuals are much tighter, and are focused on the belief that the soul and strength of the organization lies in it's unity. A brotherhood polices it's own, but it protects it's own as well. In short, it's family. Think, "Band of Brothers" or "The Aryan Brotherhood." You only join a brotherhood once, and while you're in, you're expected to support your "brothers," even if it's not what you would choose to do on your own.

Pilots are notoriousy opinionated, individualistic, and hard to organize. The level of devotion that a true "brotherhood" entails is something that few ALPA members would be willing to support.

I belong to several "associations," including the one that represents airline pilots They're nice. I pay my "dues" and get their magazines. Sometimes, I take part in their activities. But when my a$$ is coming under fire, I want brothers on the firing line, not "associates."

 

[ABXbooger]

Great email from 1224 pres today. answers a lot of q's.

 

[LarryinTN]

Any preliminary info out on who got the 767 classes in the bid that closed today?

 

[GoABX]

Huge sucking sound

The Huge sucking sound you hear is all the pilots leaving Training and the Chief pilot's offices.

Hmmm, I guess people want to be active on the seniority list for integration and under union protection. So unless the company can get a radio controlled DC-9s passed by the FAA we will have to have a proffer soon. Too bad there is no one to train them. I guess the 'Everything will be okay' letter sent out to the management pilots didn't work.

 

[GoABX]

Huge sucking sound

The Huge sucking sound you hear is all the pilots leaving Training and the Chief pilot's offices.

Hmmm, I guess people want to be active on the seniority list for integration and under union protection. So unless the company can get a radio controlled DC-9s passed by the FAA we will have to have a proffer soon. Too bad there is no one to train them. I guess the 'Everything will be okay' letter sent out to the management pilots didn't work.