Airline RC
Well-known member
- Joined
- Mar 4, 2006
- Posts
- 64
Delta Notepad
March 2, 2006
March 1st marked the date set for the two negotiating committees to
reach a consensual agreement in accordance with Letter of Agreement
(LOA) 50. The deadline has passed without a tentative agreement. As a
result, we feel that this is an appropriate time to update you on the
progress of negotiations and what we expect in the weeks ahead.
After the Special MEC meeting at the end of January, we set an
aggressive schedule for negotiations through February. The committees
agreed to meet on Tuesday through Thursday of each week in February,
except for meeting only one day during the week of the Regular MEC
meeting. In addition to these negotiating sessions, we have participated
in costing sessions and financial update meetings.
After months of negotiations starting last autumn, we must continue to
report that management is not negotiating in the traditional sense. They
have made only minor movement with regard to the major issues of
economics and job security. Despite a small reduction in their original
demand, their current arbitrary position is far too high to provide the
basis for an agreement. Further, management now admits that our defined
benefit plan will very likely be terminated, but they have yet to
provide the pilot group with any cost savings credit associated with
this radical change to our benefit structure. They also continue to seek
major changes in our scope protections with no corresponding credit. In
other words, management in reality demands over one-half billion dollars
in the restructuring of our PWA.
As required by LOA 50, management has addressed equity and profit
sharing, and the offered terms if the DB Plan terminates. But they have
not come close to addressing these issues in a way that can produce an
agreement.
The parties have reached tentative agreements on the following issues:
An initial 12-year Captain rate on the EMB-190 of $95.70.
Rate increases during the term of the agreement are yet to be agreed to.
. Deletion of night pay.
. Deletion of the contractual language concerning the previously
awarded stock options (also treated in a separate motion by the Company
that applies to all current and former employees). The stock option
program from LOA 46 contains a provision to award any forfeited stock
options in November 2006 and this language will continue.
. Relocation changes requiring a pilot to move within 125 miles
of his new base if he wants to use a Company paid move.
. A management pilot may fly a rotation without a line pilot
being pay protected if the rotation is picked up from open time within
96 hours of report time. The rotation must be included in at least one
PCS run under certain conditions.
. Report time for Hawaii flights of 60 minutes.
. Annual pass charge of $50 per pilot family.
. Contract duration of 4 years, through December 31, 2009.
. CRAF Letter of Agreement.
Management has withdrawn a number of the items from their original
1113(c) proposal, such as:
. A change to the maximum scheduled duty time.
. Changes to the PBS staffing formula.
. Category freeze changes.
. Changes to the trip coverage sequence in Section 23.N. & O.
. The change to not consider a reserve pilot as full until ALV +
15 hours.
. Parking at a satellite flight attendant base.
The parties have resolved a few items that ALPA included as no cost
items, such as:
. Contractual language on the method to determine the pay time
for distributed training.
. ALPA involvement in the development of distributed training.
. Allow a jumpseat reservation to count in the call-in-honest
commuting policy.
. Provide e-mail addresses under protective rules.
Glaringly missing from this list of resolved issues are the major items
in management's 1113(c) proposal that they continue to demand from us:
. Scope provisions.
. Pay rate reduction.
. Vacation changes.
. Furlough changes.
. Sick leave and other medical benefit changes.
. Scheduling work rule changes.
. Retirement changes.
And, of course, the largest chasm is the total value of a restructured
pilot contract. Management is still demanding over $300 million per year
in general contract concessions, plus the value of a terminated Pilot
Retirement Plan, plus items they consider of no monetary value, such as
scope protection. We have repeatedly advised the management negotiators
that their demands do not create a framework for a consensual agreement
with ALPA.
Our current table position includes $140 million per year in general
contract concessions (including some changes to scope), plus additional
value from the savings of our Pilot Retirement Plan in the very likely
event that it is terminated. Our proposal also includes economic returns
to the pilot group over the term of the contract, with our pay rates
returning to LOA 46 rates by the amendable date of December 31, 2009. We
have discussed equity and profit sharing for the pilots in a reorganized
Delta, but have not yet found common ground.
We plan on continuing negotiations as we prepare for the hearings before
the three-member neutral panel. Some items or positions will change as
negotiations evolve. Any further items in the proposals that both
negotiating committees can reach agreement on will allow us to focus on
the most important issues, such as scope, pay rates and retirement.
The week of March 6th will be spent preparing for the hearing with our
litigation team in New York, but we continue to be available for
negotiations and in all likelihood will continue to exchange proposals.
The Neutral Panel hearings have been scheduled for the week of March
13th and March 20th in Washington, D.C. The three neutrals are not
required to make a final decision on management's 1113(c) motion until
mid-April.
So what does this all mean to you? We will proceed in our negotiations
as we have been directed by the MEC. We will continue to have this
discussion with management at the negotiating table.
March 2, 2006
March 1st marked the date set for the two negotiating committees to
reach a consensual agreement in accordance with Letter of Agreement
(LOA) 50. The deadline has passed without a tentative agreement. As a
result, we feel that this is an appropriate time to update you on the
progress of negotiations and what we expect in the weeks ahead.
After the Special MEC meeting at the end of January, we set an
aggressive schedule for negotiations through February. The committees
agreed to meet on Tuesday through Thursday of each week in February,
except for meeting only one day during the week of the Regular MEC
meeting. In addition to these negotiating sessions, we have participated
in costing sessions and financial update meetings.
After months of negotiations starting last autumn, we must continue to
report that management is not negotiating in the traditional sense. They
have made only minor movement with regard to the major issues of
economics and job security. Despite a small reduction in their original
demand, their current arbitrary position is far too high to provide the
basis for an agreement. Further, management now admits that our defined
benefit plan will very likely be terminated, but they have yet to
provide the pilot group with any cost savings credit associated with
this radical change to our benefit structure. They also continue to seek
major changes in our scope protections with no corresponding credit. In
other words, management in reality demands over one-half billion dollars
in the restructuring of our PWA.
As required by LOA 50, management has addressed equity and profit
sharing, and the offered terms if the DB Plan terminates. But they have
not come close to addressing these issues in a way that can produce an
agreement.
The parties have reached tentative agreements on the following issues:
An initial 12-year Captain rate on the EMB-190 of $95.70.
Rate increases during the term of the agreement are yet to be agreed to.
. Deletion of night pay.
. Deletion of the contractual language concerning the previously
awarded stock options (also treated in a separate motion by the Company
that applies to all current and former employees). The stock option
program from LOA 46 contains a provision to award any forfeited stock
options in November 2006 and this language will continue.
. Relocation changes requiring a pilot to move within 125 miles
of his new base if he wants to use a Company paid move.
. A management pilot may fly a rotation without a line pilot
being pay protected if the rotation is picked up from open time within
96 hours of report time. The rotation must be included in at least one
PCS run under certain conditions.
. Report time for Hawaii flights of 60 minutes.
. Annual pass charge of $50 per pilot family.
. Contract duration of 4 years, through December 31, 2009.
. CRAF Letter of Agreement.
Management has withdrawn a number of the items from their original
1113(c) proposal, such as:
. A change to the maximum scheduled duty time.
. Changes to the PBS staffing formula.
. Category freeze changes.
. Changes to the trip coverage sequence in Section 23.N. & O.
. The change to not consider a reserve pilot as full until ALV +
15 hours.
. Parking at a satellite flight attendant base.
The parties have resolved a few items that ALPA included as no cost
items, such as:
. Contractual language on the method to determine the pay time
for distributed training.
. ALPA involvement in the development of distributed training.
. Allow a jumpseat reservation to count in the call-in-honest
commuting policy.
. Provide e-mail addresses under protective rules.
Glaringly missing from this list of resolved issues are the major items
in management's 1113(c) proposal that they continue to demand from us:
. Scope provisions.
. Pay rate reduction.
. Vacation changes.
. Furlough changes.
. Sick leave and other medical benefit changes.
. Scheduling work rule changes.
. Retirement changes.
And, of course, the largest chasm is the total value of a restructured
pilot contract. Management is still demanding over $300 million per year
in general contract concessions, plus the value of a terminated Pilot
Retirement Plan, plus items they consider of no monetary value, such as
scope protection. We have repeatedly advised the management negotiators
that their demands do not create a framework for a consensual agreement
with ALPA.
Our current table position includes $140 million per year in general
contract concessions (including some changes to scope), plus additional
value from the savings of our Pilot Retirement Plan in the very likely
event that it is terminated. Our proposal also includes economic returns
to the pilot group over the term of the contract, with our pay rates
returning to LOA 46 rates by the amendable date of December 31, 2009. We
have discussed equity and profit sharing for the pilots in a reorganized
Delta, but have not yet found common ground.
We plan on continuing negotiations as we prepare for the hearings before
the three-member neutral panel. Some items or positions will change as
negotiations evolve. Any further items in the proposals that both
negotiating committees can reach agreement on will allow us to focus on
the most important issues, such as scope, pay rates and retirement.
The week of March 6th will be spent preparing for the hearing with our
litigation team in New York, but we continue to be available for
negotiations and in all likelihood will continue to exchange proposals.
The Neutral Panel hearings have been scheduled for the week of March
13th and March 20th in Washington, D.C. The three neutrals are not
required to make a final decision on management's 1113(c) motion until
mid-April.
So what does this all mean to you? We will proceed in our negotiations
as we have been directed by the MEC. We will continue to have this
discussion with management at the negotiating table.
