I didn't spend much time looking to see if this was posted already, but if not here is what was emailed tonight:
To: Comair Pilots
From: The Comair MEC
Date: December 22, 2005
Re: The Company Proposal
Attached to this letter is the proposal given to the MEC Negotiating Committee as the Company's “last, best, and final offer.” The MEC spent two days reviewing all aspects of this proposal and unanimously agreed to present this offer to Comair pilots for your consideration. As we have stated, this proposal is not a tentative agreement (TA). The MEC is steadfast in its desire that Comair pilots should enjoy the highest level of pay and benefits possible, while simultaneously, we recognize the extremely difficult times in which we find ourselves.
Make no mistake, Delta is in extremis, and our own management appears to have little, if any, control over our future. Due to the Delta Air Lines, Inc. bankruptcy, our Company faces a confusing and difficult struggle. The MEC will immediately provide as much information to the pilot group as we ourselves have to allow individual pilots and their families the opportunity to decide how best to meet these imposing challenges.
Delta has stated clearly that they will allow Comair to remain a Delta Connection carrier only within a specific labor cost structure. Acceptance or rejection of this proposal should be based on its merits to enable Comair to continue as an airline. Should Comair pilots elect to reject this proposal, the MEC has been told by management that Delta may exercise unpleasant options.
We encourage each pilot to vote based on factual information which we will make available to you immediately and over the next couple weeks. During the week between Christmas and New Years, a detailed letter will be sent to each pilot outlining exactly what has occurred over the last two months of negotiations, including as much relevant information as allowable by law from that process. Also, as soon as final “proposal” language is completed, we will forward that to each pilot as well. Expect that during the first week of January. Then, most likely beginning the second week of January, road shows will begin and occur in each of our four domiciles. We encourage each pilot to attend at least one road show to receive a full briefing on what has occurred and our best guess at what the future may hold so as to make your decision an informed and educated decision based on our best and most accurate information.
Bullets of Company Proposal
A. Economic Relief
· Rescind the February 2005 LOA including paragraphs;
i. H.1., H.2., H.3.d. and H.4. – aircraft delivery and minimum aircraft fleet commitments
ii. H.3. - snapback of 4.5% wage increase and snapback of June 2005 longevity step
· From the February 2005 LOA, maintain the following paragraphs;
i. D. – Management Compensation Reduction
ii. E. – Longevity restoration, now effective June 1, 2006
iii. J. – Company paid union leave and travel
iv. K.2. and K.3. – pay above guarantee and report times
v. L. – miscellaneous, including Successorship language
· Pay Table (see rate table page 4)
i. CL-700 Capt. at SKW rates + 1% (15.5% reduction on average)
ii. CL-65 Capt. at DCI average rates (8.9% reduction on average)
iii. CL-700 F/O & CL-65 F/O at DCI average rates, blended rate (20.8% & 13.6% reduction on average)
· Resume longevity steps June 1, 2006, includes 89 day restoration
· Per diem @ $1.50 per hour
· MPP retirement plan – full funding for year 2005 paid no later than March 1, 2006, eliminate any future Company contribution in 2006 and beyond
B. PBS and Duration
· Agree to test and then if successful, implement Carmen System no later than first quarter 2007
§ KRONOS or other PBS agreed PBS replacement for pilots only upon failure of Carmen
· Duration – 4 years from date of signing, maintain current early open language
C. Returns
· Increase rates of pay at Date of Signing (DOS) plus 36 months – 2% (see rate table page 4)
· Increase per diem at DOS plus 36 months - $1.55 per hour
· Maintain PPP plan for 2006
· Implement Profit Sharing Plan
§ January 2007
§ Based on net income percentage (net margin), paid each quarter
§ Allocated to W-2 earnings
§ Caps @ 6% in 2007, 7% in 2008, 8% 2009 and beyond
§ Pilot options on payouts (to MPP or cash out)
· Stock option, grants, equity plan, or stock purchase on a “me too” basis except if offered to Management, Directors or Officers
· After 10 years of service, Company will match 401K @ 70% of first 5% of eligible earnings
D. Grievance Resolutions
· 04-10-GG (Staffing) – resolved via ongoing process discussions, includes specific triggers to increase staffing
· 04-13-GG and 04-16-GG (reassignment issues) – ALPA will withdraw
· 05-11-GG (Insurance) – continue with grievance/arbitration
E. Commitments
· This LOA submitted to court for approval
· Comair Capacity Purchase Agreement (CPA) with DAL Inc., submitted to court for approval
· Future Aircraft Award
· Included in CPA
· No less than 40% of all future CRJ 70-80 seat turbojet aircraft
§ Only applies to uncommitted and unawarded aircraft not already promised to any other carrier
§
§ Only applies to aircraft “awarded” by Delta in either 2006 or 2007, for delivery possibly beyond 2007
§
§ Provided CMR achieves cost reductions goal of $42 million based on Dec 2005 schedule on ongoing basis
§ Provided CMR is able to attain financing
§ Remedy for failure to award aircraft as promised in 2006 or 2007 is normal Section 6 bargaining effective January 1, 2008
· CMR first right of refusal on any Q-400 “provided economics are competitive”
· Company acknowledges that modifications are based on the most complete and reliable information
F. Contingency
· Agreement becomes effective only if all other employee groups, including management, grant relief as outlined by the Company in the November 1, 2005 restructuring document, equivalent to the relief imposed on ALPA
G. Additional Issues
· Eliminate all “No Furlough” provisions of the Agreement and LOA’s
· Reserve days off
§ 11 for all bid periods
§ 1 moveable day moved 1 time
§ If moveable day moved, all others become locked
§ JM provisions still applicable to “locked” moveable days
· Institute three tiered Long Call / Short Call system
§ Short call = current system, percentage of reserves TBD
§ Long Call 1 = 9 hour callout, 10 hour window, percentage of reserves TBD
§ Long Call 2 = 12 hour callout, 2 hour window, percentage of reserves TBD
· Day prior notification window = 2 hours
· Process for moving to different windows
· All based on seniority bid
· Reserve leveling system
§ Similar to monthly rundown, by pass once at 74 credit hours
· Specific credit TBD
· All junior available provisions still apply
· Displacement / Reassignment time frame – day of operations
§ Company allowed 60 minutes to reassign
§ Release no later than scheduled release
· Future meet and concur to discuss how reserve system is working
· Vacation credit reduced to 20 hours per week
· NFP credit reduced to 4 hours
§ Assigned first to available reserves, then to instructors, then to volunteers
· Deadhead credit and pay @ 75%
§ Schedules built with 100% block
§ Ground deadhead maintains 100% credit and pay
· New equipment clause applies when turbo jet a/c with greater than 80 seats are placed into operation, with addition of binding arbitration if rates are not agreed
