CAL Pilots offered 100,000 to Leave

[Ex737Driver]

Part 2

Furlough Mitigation LOA Q&A​

COLA Q&A

Q1. Who is eligible for a COLA?
A1. Any pilot can apply for a COLA. Pilots actually furloughed, however, cannot be awarded a COLA. Pilots who are projected to be a double bid pilot due to leave of absence may be considered for a COLA on a case-by-case basis.

Q2. How many COLAs will be awarded?
A2. COLAs will be awarded to the extent they prevent furloughs.

Q3. When do I submit my request for a COLA?
A3. You can submit your request for COLA anytime from June 26, 2008 up to and including Aug. 6, 2008. COLAs will be awarded by Aug. 14, 2008.

Q4. What if I change my mind? Can I withdraw/revoke my request for a COLA?
A4. Once awarded, a COLA cannot be withdrawn.

Q5. What happens to my benefits during a COLA?
A5. All benefits for COLAs are as provided for in the current CBA - Section 13, Part 3, and for Personal Leaves in Section 13, Part 1.

Q6. I received a furlough notification letter from the Company. Can I still apply for a COLA?
A6. Yes. If you end up being above the furlough line, you will be awarded a COLA.

Q7. When will the COLA be effective, and for what duration?
A7. Continental will determine the start date for each participant, but in no case will they provide less than 30 days’ notice. If a pilot wishes to start on another date, the Company will consider that request based on seniority and staffing requirements. COLA extensions will only be offered as long as they mitigate furloughs.

Q8. Can I extend my COLA past 18 months?
A8. All COLAs will be for a minimum of 18 months, with the guaranteed right to extend, either through a COLA extension or a PLA until April 30, 2012. Pilots wishing to extend their COLA must notify the Company prior to each System Bid, and that extension will be granted to each pilot whose COLA either prevents the furlough or allows the recall of another pilot, on a one-for-one basis. In the event that the extension of a pilot’s COLA would not provide that relief, the pilot may apply and will be granted a PLA, to end no later than April 30, 2012.

Q9. What is the difference between a COLA and a PLA?
A9. The main difference is pilots on COLA receive accrual for longevity and active pilot rates for benefits, while pilots on PLA do not.

 

[Ex737Driver]

Part 3

Furlough Mitigation LOA Q&A​

Scheduling Modifications Q&A

​

Q1. How does changing the Line Production Average (LPA) mitigate furloughs?
A1. It is estimated that this provision alone will save 100 to 150 pilot jobs. By lowering the minimum LPA to 76 hours, the Company is able to retain more pilots to accommodate the schedule. For example, in a BES with 1,000 hours of flying and a 100 hour LPA, only ten (10) pilots would be required to cover the schedule. That same amount of flying with an 80 hour LPA would require 13 pilots.

Q2. How does limiting the average LPA help to mitigate furloughs?
A2. While it doesn’t immediately help to mitigate furloughs, it will ensure that the Company cannot constantly run the pilots remaining on property up to the maximum LPA without recalling pilots. Over time, if the Company runs the LPA above 82:30, eventually they will have to recall pilots in order to maintain the LPA average.

Q3. Why change the LineConstructionRange (LCR)?
A3. PBS seems to give the best results when there is a ten (10) hour range with the LPA in the middle. If the LPA were lowered to 76 and the LCR was not lowered below 74, then the “splat” that would occur would be unacceptable.

Q4. Does this mean that my pay will decrease?
A4. The compensation section of our CBA has not changed and the MPG for lineholders will remain unchanged at 72 hours. However, it is foreseeable that since these provisions are intended to spread the available flying over more pilots, lower line credit will be awarded to individuals. Pilots may still pick up open time and use the waive credit function in PBS to increase their line credit.

Q5.Why has the 55 hour minimum been eliminated?
A5. Removal of the 55 hour minimum benefits pilots who want to modify their schedules, and pilots who truly want to drop time. At the end of the month, if a pilot’s schedule reflects less than 40 hours of credited time (including training, deadhead, vacation, etc.) not including any overs, then vacation and sick leave accrual will be reduced by 50% for the month. The LOA contains a table that illustrates the reduced vacation rates.

Q6. How will Long Term VRFs (LTVRF) mitigate furloughs?
A6. Each pilot who is awarded an LTVRF will have his pay essentially capped at 75% of normal by having a Personal Block Cap (PBC) placed on his master schedule. Since the savings is 25% per pilot on LTVRF, one pilot’s job can be saved for every four who are awarded LTVRFs within a particular BES.

Q7. Why would I want to bid for LTVRF?
A7. LTVRF is for the pilot who has other things going on in his life and is constantly trying to drop time every month due to his personal need for time off. LTVRF is a long term commitment to lower pay in exchange for more days off, while keeping a fellow pilot from being furloughed.

Q8. Can I pick up open time as an LTVRF pilot?
A8. Yes, but your artificial PBC would limit the amount of time that you could pick up. However, the Company may, at its option, remove your PBC after lines are awarded. Do not bid LTVRFs as a way of getting a reduced line award with the plan of picking up open time later. The PBC is there to ensure pilots cannot use this provision to “game” the system.

Q9. Can I back out of my LTVRF line before the 18th Bid Period?
A9. No, but if you can find another pilot who is willing to take it, you may trade your LTVRF position with any other pilot in your specific BES. The only other way out is if you are displaced or all of the furloughed pilots are recalled.

Q10. Can I bid out of my BES while on LTVRF?
A10. No. Pilots awarded a LTVRF position will be frozen until the first system or adjustment bid occurring after Dec. 1, 2009.

 

[pianoman]

Wow. That is a pretty solid offer. I think we'll have the 251 take it.

I would really like you to be right. I just don't see the senior guys taking it. Pretty hard to be talked out of $200,000/yr part time job that involves working 9-10 days a month.

 

[Wingman10]

I can not stress this enough.....

Note to AMR, please follow CAL's lead.........

 

[Hutchman]

I would really like you to be right. I just don't see the senior guys taking it. Pretty hard to be talked out of $200,000/yr part time job that involves working 9-10 days a month.

Just because you are old does not mean you are a 777 CA working 12 days a month. There are plenty of guys who (use to) retire off the 737. It is definitely worth a look. With oil at these prices your A-fund may not be as secure as you think when all airlines file for BK. If I was 58+ and had $800K + in an A fund I would take the time to talk to a financial planner and decide if it makes since or is worth the risk to stay.

Right now oil is over $140, no airline that is paying the market rate for gas can survive for a prolonged period of time. The Delta guys had the right idea a few years ago.

 

[bizicmo]

Also the A fund lump sum payout goes down starting next year when it starts to get tied to the corporate bond rate.