CAL Pilots offered 100,000 to Leave

[pdub20s]

I talked to a very credible source over at CAL today. He tell me the Co. announced that it is offering the "Senior" guys $100,000 each to resign. Any other CAL guys care to comment?

 

[Morgoth]

I talked to a very credible source over at CAL today. He tell me the Co. announced that it is offering the "Senior" guys $100,000 each to resign. Any other CAL guys care to comment?

It would be nice, but I'll believe it when I see it.

 

[imisscorplife]

I talked to a very credible source over at CAL today. He tell me the Co. announced that it is offering the "Senior" guys $100,000 each to resign. Any other CAL guys care to comment?

Hows Mesa?

 

[bizicmo]

I was thinking easily $90,000. That’s win, win for everyone. Junior guy gets to stay on property, senior guy gets a ton of money to do something they were probably thinking about doing anyways and the company gets happy employees and a small break in payroll expenses. At a $90,000 payout and keeping the junior guy on property probably comes out to about 2/3 of what they would have had to pay the senior guy for the year.

 

[Ex737Driver]

My two cents.................

It's a tiered progression based upon how many guys take the actual "ERW" or early retirement window. Smallest amount is $50,000 total for a 2 year period, payable in 24 months. The max is $100,000 total for a 2 year period, payout in 24 months. It's all variable based upon the total number of pilots that put in for each award.

It does show that the max number of pilots needed to trigger the $100,000 payout is 251 to a max of 300. That would imply, I think, that the company would be looking for at least 251 pilots for furlough.

There are some other items such as the standard COLA for duration of 18 months. There are some new scheduling rules for line construction ranges inside of PBS that are lower than previous in order to keep more pilots on property. They have also reduced the hour limit on flying in order to receive benefits. It was previously 55 and anything below that did not allow accural of, i.e., vacation, sick time, etc. The new limit is 40 hours and any fling below that allows for 50% accural. Last there is a LTVRF or long term voluntary reduced flying. Pays out 75% of your PBS cap max.

The general consensus taken so far is that this sucks and it needs to be voted on by the membership, which may or may not happen. The final word, I would think, would be whether the guys about to retire thinks that it sucks or not.

 

[Flopgut]

My two cents.................

It's a tiered progression based upon how many guys take the actual "ERW" or early retirement window. Smallest amount is $50,000 total for a 2 year period, payable in 24 months. The max is $100,000 total for a 2 year period, payout in 24 months. It's all variable based upon the total number of pilots that put in for each award.

It does show that the max number of pilots needed to trigger the $100,000 payout is 251 to a max of 300. That would imply, I think, that the company would be looking for at least 251 pilots for furlough.

There are some other items such as the standard COLA for duration of 18 months. There are some new scheduling rules for line construction ranges inside of PBS that are lower than previous in order to keep more pilots on property. They have also reduced the hour limit on flying in order to receive benefits. It was previously 55 and anything below that did not allow accural of, i.e., vacation, sick time, etc. The new limit is 40 hours and any fling below that allows for 50% accural. Last there is a LTVRF or long term voluntary reduced flying. Pays out 75% of your PBS cap max.

The general consensus taken so far is that this sucks and it needs to be voted on by the membership, which may or may not happen. The final word, I would think, would be whether the guys about to retire thinks that it sucks or not.

Where can I read the whole thing??

 

[atlcrashpad]

Hows Mesa?

MESA SUX......
bouyyyyyyy...uke:

 

[AA717driver]

I'll take it. I'll resign from AA if CAL gives me a hundred grand. TC

 

[Captain Overs]

If CAL is willing to open their wallets to get people off property, you'd think they could fork over some money for the new contract and the guys who still work there.

 

[Morgoth]

Well apparently it is true after all. (My apologies to Pdub20s! It is a tiered system, with more being awarded the more pilots accept the early out offer. The amounts being offered range from nothing (if less than 75 sign up for it) to $100,000 if more than 250 sign up for it. It only goes up to 300 pilots, so I wonder if that's the number of furloughs they're planning?

Should be interesting to see if any geez.....uh, I mean SENIOR pilots take the bait. ;-)

 

[Flopgut]

I don't see it on the website...where is it?

 

[geshields]

go to calalpa website(login) and look under the negotiating committee tab and it is on the right...

 

[Flopgut]

Got it!! Thx.

 

[Flopgut]

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

 

[Ex737Driver]

Part 1

Union just asent out a blast mail detailing the agreement.


Furlough Mitigation LOA Q&A


ERW Q&A

Q1. How does the ERW mitigate furloughs?
A1. The ERW provides incentives for more senior pilots who are eligible for retirement to voluntarily separate employment and still receive their retirement benefits. The ERW thereby reduces the number of junior pilots who will be involuntarily separated through furloughs.

Q2. Can I still get my A-Plan lump sum if I submit a bid in the ERW and it is awarded?
A2. Yes. Your lump sum is payable on your retirement date. You will need to submit the appropriate paperwork to request payment. Requests can be made by contacting the Benefit Center at 800-651-1007 or by logging onto resources.hewitt.com/continental (also accessible via CCS and mycoair.com: Select a category then YBR+Employee Benefits and click on the blue highlighted words Your Benefits Resources).

Q3. If 300 pilots retire under the ERW and receive their lump sums from the Continental Pilot Retirement Plan (CPRP), will that cause any problems for the CPRP?
A3. The plan’s actuaries (Towers Perrin) have done an analysis of this issue. Based on what they believe are conservative assumptions (meaning that they really expect the actual results will be better for the plan than they assumed in their analysis); they do not believe that these lump sum payments will cause a problem for the plan.

Q4. Which pilots are eligible for the ERW?
A4. Pilots or flight instructors who are actively employed (or on family/medical leave or military leave) and eligible for early or normal retirement by Nov. 30, 2008 (age 50 with 20 years of service; age 55 with 10 years of service or age 60 with any number of years of service) may participate.

Q5. I’m on LTD. Can I participate in the ERW?
A5. The Company will review bids for participation from pilots who are on other leaves of absence on a case-by-case basis.

Q6. I’ve already turned in my retirement paperwork. Can I participate in the ERW?
A6. Yes, provided you are eligible for early or normal retirement by Nov. 30, 2008.

Q7. Why are there greater monetary incentives if more pilots participate and are granted ERW awards?
A7. The calculations to determine the actual savings derived by having pilots take an ERW rather than by having other pilots furloughed were complex. They included issues such as difference in longevity, system bid award flows up for early outs and down for furloughs, training costs (including whether or not pilots would require full course or short course training), probability of retirement, compounded savings based on multiple pilots leaving, restrictions on training, vacation accruals, sick time usage estimates and accruals, LTD premiums both with the ERW and with furloughs, and even the savings to the Company for not having to contribute the full 6.2% on Social Security for pilots who make more than the current $94,500 maximum. After taking all these factors into account, we were able to negotiate amounts and levels of participation that we believe are favorable to the pilots.

Q8. I’m a junior B-777 Captain. If only 12 B-777 Captains are accepted by the Company in the ERW, why should I even bid?
A8. There is no limit on the number of B-777/B-756 Captains who can be awarded the ERW, other than the 300 pilot maximum. The only limitation is that some B-777 and B-756 Captains may have retirement dates beyond Nov. 30, 2008.See question 16 for further details.

Q9. If I’m a B-777 Captain or a B-756 Captain and I’m not one of the pilots who can leave before Nov. 30, won’t I take a big hit with my lump sum due to changes in the interest rate used to calculate my lump sum?
A9. The payments you receive via the ERW, in addition to the pay and benefits you receive while you continue working, will likely more than compensate for any loss due to the change in your lump sum calculation.

Q10. When do I have to tell the Company that I want to participate in the ERW?
A10. You must submit your bid no later than Aug. 8, 2008.

Q11. What if I change my mind after I submit my bid for the ERW?
A11. You have until Aug. 15, 2008 to revoke your bid.

Q12. What happens if my ERW bid is not awarded?
A12. You are still eligible to take the Company’s “Summer 2008 Early Out Program.” Or, you do not have to take any option.

Q13. What’s the best strategy for bidding for the ERW? Bid low? Bid high?
A13. You should bid the minimum supplemental severance amount (lowest level) that you will accept to participate in the ERW. You can feel confident that you can bid your minimum without the fear of leaving money on the table. As an example of this, if 285 pilots bid only the minimum level of $50,000 and no one bids higher, every pilot will receive severance at the level five (5) funding of $100,000, even though no one actually bid at level five (5). See the examples in the LOA (ERW Section G) and carefully review them.

Q14. Can I still use my sick bank hours for the bridge medical program if I participate in the ERW?
A14. Yes. A pilot who is eligible to participate in the retiree/survivor medical (as provided in Section 27 of our current CBA) may elect to use his unused sick bank to offset his employee contributions for continued benefits coverage. Pilots who do not elect or qualify for retiree/survivor bridge medical at the date of retirement will not later acquire eligibility.

Q15. I have no sick bank hours to use toward the retiree bridge medical due to a previous LTD leave. Should I still consider the ERW?
A15. Yes. In certain circumstances, a pilot’s sick leave bank will be increased at retirement by sick leave hours the pilot used within the ten (10) years prior to the pilot’s retirement (in accordance with Section 27, part 6.A.4 and parts 6.A and 6.B of Contract ’02).

Q16. I’m older than age 59½ and under the CBA wasn’t required to give six (6) months notice to retire and receive retiree health benefits. This LOA changes that. What now?
A16. Pilots who sign up for the ERW but are not awarded their bid are exempt from the six (6) month provision until Nov. 30, 2008. Thus, any pilot retiring after this date will be subject to the new six months notice to receive retiree health benefits. This change to the CBA does not modify the normal or early retirement age, or any other provision of the Continental Pilots Retirement Plan.

Q17. Can I pick my own retirement date for the ERW?
A17. No. Ideally, the Company would have preferred to schedule all retirements on Aug. 30, 2008, but could not due to training and staffing issues. Continental will determine the date of retirement for each participant in the ERW Plan, and shall provide no less than thirty (30) days notice of such date to the participant. The retirement date for each participant shall be no earlier than Aug. 30, 2008 and no later than Nov. 30, 2008. See the question below for exceptions. Requests for specific retirement dates will be considered based upon seniority and staffing requirements.

Q18. How will the retirement dates for B-777 Captains and B-756 Captains be set?
A18. If more than (12) B-777 Captains and (55) B-756 Captains elect to bid in the ERW, the Company will contact each pilot to determine his/her willingness to extend past Nov. 30, 2008, with retirement dates offered in seniority order.