propjob27
I have people skills!
- Joined
- Jan 15, 2003
- Posts
- 469
Please review these concerns and educate yourself before voting. Issues, are listed below for your reference. I wish I could spell out every detail of every issue but that’s not possible. I’m just hoping to get you thinking—if you want an in-depth analysis, I encourage you to do some digging for yourself (in some cases I have provided hyperlinks- if a link does not work please cut and paste the URL address in the browser as they should be valid addresses). Most of my references address the HKG domicile as I’m more familiar with Asia, but I think these issues are also applicable to CDG.
1) Precedent: In ratifying this LOA, we are setting a precedent. We will only get incremental benefits, if any, over time. We are determining the base line from which all future FDAs will be negotiated. In favor of voting the LOA in now, then addressing these issues next contract? We could be stuck with this LOA for several more years. If this contract goes two years past the amendable date, we’re looking at OCT 2012 before we revisit this FDA. For a guy with twenty years left, those five years represent 25% of his remaining career!! Also, during contract negotiations, the FDA will be one of thirty-one sections on the agenda; we need to fix this now, while it is the only item “on the table.”
2) Concessions: While there are benefits to this LOA (the “enhanced” option offers housing allowance, tax equalization, coach class tickets home after two years), there are also numerous concessions (see CBA Sect 6 - Relocation Expenses for more). Here is an incomplete list of things you will LOSE by choosing the "enhanced option":
--$10,000 or 79 CH (whichever is greater) relocation allowance
-2 round-trip tickets for the purpose of house hunting
-3 additional shipments of up to 1000 pounds
-Monthly personal shipments of up to 100 pounds
-Up to $1000.00 toward the cost of shipping pets
-90 days of temporary storage of household goods
-Shipment of household goods with a limit of 12,500 pounds plus 1500 pounds for each non-spousal dependent and one automobile (instead you will get 500 pounds—your clothes, your DVD player, big screen TV and bed. That’s about it)
-Reimbursement for payment of packing and storage of goods at permanent home at a reasonable rate (with this LOA, we concede to a $4000.00 annual cap and no mention of packing and transportation to storage facility)
-Insurance for replacement cost of household goods of up to $250.000
-Marketing assistance for home sale
-Reimbursement for cost associated with sale of current residence to include realtor's' commission, title search and title insurance fees, abstract continuation fees, reasonable attorneys' fees, escrow agent settlement fee, deed preparation fee, notary fee, legally required inspection fee, termite inspection fee, transfer tax, document stamps, and recording fees, one appraisal fee if legally required, loan transfer fees, up to $2500.00 discount points if required (VA loan)
-3rd party home purchase plan (basically a guaranteed buy of your house at a price based on multiple appraisals)
-Lease cancellation reimbursement for up to 6 months rent
-Reimbursement for reasonable expenses occasioned by a delayed shipment
-Relocation allowance for return from FDA shipment
3) STV: Short Term Vacancy (LOA para D). You can be “junior manned” into HKG or CDG for up to 3 months. Too senior to be affected by the STV? First, consider the other guy who might not be so senior and who may not want to leave his family for three months. Second, think of the number of guys who will be able to opt out of an STV award because of MIL leave or whatever. Not to mention the number of guys who will accept, and then click "sick" in VIPS the day before the deadhead leaves. This might go more senior than you think.
3) Housing: It’s been beat to death that $2700 is not near enough to cover rent and the MEC has admitted that this amount is only intended to “subsidize” your rent. Find a decent place for upwards of $4000 to $5000 and you’ll be THROWING AWAY about $2000/month in rent. No equity, just money in the trash. How many of us have not figured out that owning is better than renting? Want to be smart and buy your place? You’ll only get $1300/month if you do that. I'm not sure why the financially savvy are "punished."
I was in HK last week (08JUL) and found a place for about $2700. It was 35 minutes from downtown, on the 23rd floor of a high rise, and 1100 sq ft (in HK a portion of the hallway leading to the elevator is included in your total square footage). Can housing be found for $2700? Yes. Is it anything close to what we are “accustomed”? No. For that matter, cheap housing can be found in any city, but we all know that you usually get what you pay for.
For more: http://residential.savillsproperty.com/
http://www.statelyhome.com.hk/
4) Tuition assistance: None. Not only is tuition expensive in HK ($10,000 to $30,000 US per kid), it’s hard to get them enrolled.
For more: http://www.iht.com/articles/2007/07/12/business/sxb4.php
What if the FDAs get staffed with new hires, like the guy who just can’t pass up widebody F/O in HKG his first year? Maybe our “family oriented” company could at least help this guy out. Remember, he'll be making first year widebody pay-- $59.77/hr (effective OCT 2008). What about the guy in Paris? $57.66 for narrowbody.
5) The financial improvements are worth approximately $40,000 a year to any pilot: (from the Communications Chairman email, 29JUL07). True? Yes. . . but it looks better than it is. You do get rent money, storage paid for and the "seed money", but most of this is transparent to the pilot. Keep in mind that the majority of this money ($2700/month x 12 month = $32,400) will be nothing more than a subsidy for your rent. Also remember that your rent will probably be close to $4000 and most places will ask for two months deposit. On move-in day, you’ll owe $12,000. There goes your "seed money" (which, by the way, was taxed). For grins, assume you find that $4000/month place and you cover the difference ($4000 - $2700 = $1300). In one year, you'll be shelling out $15,600 for rent.
(continued on next post, too long to cut and paste in Flight Info)
1) Precedent: In ratifying this LOA, we are setting a precedent. We will only get incremental benefits, if any, over time. We are determining the base line from which all future FDAs will be negotiated. In favor of voting the LOA in now, then addressing these issues next contract? We could be stuck with this LOA for several more years. If this contract goes two years past the amendable date, we’re looking at OCT 2012 before we revisit this FDA. For a guy with twenty years left, those five years represent 25% of his remaining career!! Also, during contract negotiations, the FDA will be one of thirty-one sections on the agenda; we need to fix this now, while it is the only item “on the table.”
2) Concessions: While there are benefits to this LOA (the “enhanced” option offers housing allowance, tax equalization, coach class tickets home after two years), there are also numerous concessions (see CBA Sect 6 - Relocation Expenses for more). Here is an incomplete list of things you will LOSE by choosing the "enhanced option":
--$10,000 or 79 CH (whichever is greater) relocation allowance
-2 round-trip tickets for the purpose of house hunting
-3 additional shipments of up to 1000 pounds
-Monthly personal shipments of up to 100 pounds
-Up to $1000.00 toward the cost of shipping pets
-90 days of temporary storage of household goods
-Shipment of household goods with a limit of 12,500 pounds plus 1500 pounds for each non-spousal dependent and one automobile (instead you will get 500 pounds—your clothes, your DVD player, big screen TV and bed. That’s about it)
-Reimbursement for payment of packing and storage of goods at permanent home at a reasonable rate (with this LOA, we concede to a $4000.00 annual cap and no mention of packing and transportation to storage facility)
-Insurance for replacement cost of household goods of up to $250.000
-Marketing assistance for home sale
-Reimbursement for cost associated with sale of current residence to include realtor's' commission, title search and title insurance fees, abstract continuation fees, reasonable attorneys' fees, escrow agent settlement fee, deed preparation fee, notary fee, legally required inspection fee, termite inspection fee, transfer tax, document stamps, and recording fees, one appraisal fee if legally required, loan transfer fees, up to $2500.00 discount points if required (VA loan)
-3rd party home purchase plan (basically a guaranteed buy of your house at a price based on multiple appraisals)
-Lease cancellation reimbursement for up to 6 months rent
-Reimbursement for reasonable expenses occasioned by a delayed shipment
-Relocation allowance for return from FDA shipment
3) STV: Short Term Vacancy (LOA para D). You can be “junior manned” into HKG or CDG for up to 3 months. Too senior to be affected by the STV? First, consider the other guy who might not be so senior and who may not want to leave his family for three months. Second, think of the number of guys who will be able to opt out of an STV award because of MIL leave or whatever. Not to mention the number of guys who will accept, and then click "sick" in VIPS the day before the deadhead leaves. This might go more senior than you think.
3) Housing: It’s been beat to death that $2700 is not near enough to cover rent and the MEC has admitted that this amount is only intended to “subsidize” your rent. Find a decent place for upwards of $4000 to $5000 and you’ll be THROWING AWAY about $2000/month in rent. No equity, just money in the trash. How many of us have not figured out that owning is better than renting? Want to be smart and buy your place? You’ll only get $1300/month if you do that. I'm not sure why the financially savvy are "punished."
I was in HK last week (08JUL) and found a place for about $2700. It was 35 minutes from downtown, on the 23rd floor of a high rise, and 1100 sq ft (in HK a portion of the hallway leading to the elevator is included in your total square footage). Can housing be found for $2700? Yes. Is it anything close to what we are “accustomed”? No. For that matter, cheap housing can be found in any city, but we all know that you usually get what you pay for.
For more: http://residential.savillsproperty.com/
http://www.statelyhome.com.hk/
4) Tuition assistance: None. Not only is tuition expensive in HK ($10,000 to $30,000 US per kid), it’s hard to get them enrolled.
For more: http://www.iht.com/articles/2007/07/12/business/sxb4.php
What if the FDAs get staffed with new hires, like the guy who just can’t pass up widebody F/O in HKG his first year? Maybe our “family oriented” company could at least help this guy out. Remember, he'll be making first year widebody pay-- $59.77/hr (effective OCT 2008). What about the guy in Paris? $57.66 for narrowbody.
5) The financial improvements are worth approximately $40,000 a year to any pilot: (from the Communications Chairman email, 29JUL07). True? Yes. . . but it looks better than it is. You do get rent money, storage paid for and the "seed money", but most of this is transparent to the pilot. Keep in mind that the majority of this money ($2700/month x 12 month = $32,400) will be nothing more than a subsidy for your rent. Also remember that your rent will probably be close to $4000 and most places will ask for two months deposit. On move-in day, you’ll owe $12,000. There goes your "seed money" (which, by the way, was taxed). For grins, assume you find that $4000/month place and you cover the difference ($4000 - $2700 = $1300). In one year, you'll be shelling out $15,600 for rent.
(continued on next post, too long to cut and paste in Flight Info)
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