FedEx and Pilots reach TA !!!!

[Purpled]

Correct me if I'm wrong but the only reason the B-Fund came into existence in the airline industry was because pilots have to retire at age 60. I guess at the time age 65 was the normal retirement age. They were not able to acrue retirement for those 5 years like other professions. So the IRS allowed pilots companies to create and contribute to the B-Funds. If pilots are allowed to go to age 65 I could see the rational for the B-Fund not being allowed by the IRS. I'm not tring to hijack the thread but this back and forth on the B-Fund may become a mute point when the age 65 goes into effect.

Sounds like one more reason not to change the age.

 

[FoxHunter]

Correct me if I'm wrong but the only reason the B-Fund came into existence in the airline industry was because pilots have to retire at age 60. I guess at the time age 65 was the normal retirement age. They were not able to acrue retirement for those 5 years like other professions. So the IRS allowed pilots companies to create and contribute to the B-Funds. If pilots are allowed to go to age 65 I could see the rational for the B-Fund not being allowed by the IRS. I'm not tring to hijack the thread but this back and forth on the B-Fund may become a mute point when the age 65 goes into effect.

Tax law is written by the Congress, not the IRS. Today the move is toward more Defined Contribution plans (B Plans), not Defined Benefit plans (A Plans).

 

[tomgoodman]

Another monger

Rumor mongering?!? What else have you heard?

FedEx/UPS merger imminent. New corporate name: Fed Up.

 

[Purpled]

FedEx/UPS merger imminent. New corporate name: Fed Up.

We already tried merging, with these results:

http://www.captionmachine.com/archives/2002/03/20/ups-and-fedex-crash/

 

[Brian a300]

If your Negotiating Committee truly speaks for you as most of you have said, you should be voting yes without even looking at the TA.
I know I will vote yes, those guys are true heros. Wouldn't it be great if the vote came in at 95% pass. This would send a true messasge that the Negotiators do truly speak for us. Congrats to all!!!​

 

[VaB]

If your Negotiating Committee truly speaks for you as most of you have said, you should be voting yes without even looking at the TA.
I know I will vote yes, those guys are true heros. Wouldn't it be great if the vote came in at 95% pass. This would send a true messasge that the Negotiators do truly speak for us. Congrats to all!!!​

LOL! I love you P3 guys, the eternal optimists.

Screw it, I'm with ya, where's my ballot?

 

[donger]

If your Negotiating Committee truly speaks for you as most of you have said, you should be voting yes without even looking at the TA.​

I know I will vote yes, those guys are true heros. Wouldn't it be great if the vote came in at 95% pass. This would send a true message that the Negotiators do truly speak for us. Congrats to all!!!​

Our MEC has not released the TA to the members. They themselves may not have had a chance to review its language. At that point they will release it to the members along with their "vote recommendation".

The days of the home run died with Delta's contract before 9/11.

 

[Echopapa]

If your Negotiating Committee truly speaks for you as most of you have said, you should be voting yes without even looking at the TA.


I know I will vote yes, those guys are true heros. Wouldn't it be great if the vote came in at 95% pass. This would send a true messasge that the Negotiators do truly speak for us. Congrats to all!!!​

I disagree. There is a reason for the membership vote..one of which being that our negotiating commitee had to make some compromises.

Be a responsible union member, read the TA, discuss, and then vote. If you vote no be prepared to walk...if you vote yes...no more bitchin for 4 years about the contract.

Oh...a 95% vote sends the message that the company gave in to easily. Their goal is 51%...the crappiest deal that 1% over 50% would accept.

 

[Boxav8r]

Just curious... where'd the 7% retro figure come from?

 

[Brian a300]

Just curious... where'd the 7% retro figure come from?

THAT WAS THE TABLED DEAL THE UNION WANTED!!

 

[Fox2]

Regarding the 3%/yr. pay increase: It costs each pilot 1.95%/yr in union dues, plus 1.6% Rate of Inflation = 3.55%. That's a LOSS of 0.55%/yr in real dollars in years two through four. Even if one discounts the rate of inflation, one must at least subtract the costs of doing business. So 3.0%/yr. - 1.95%/yr. = 1.55%/yr. pay increase.

Over the life of the contract, the entire pay raise equation might look like this:
9% first year pay increase + 3%/yr over following three years = 18% total.
1.95% union dues X 4 yrs = 7.8% cost of doing business

18% - 7.8% = 10.2% pay raise before rate of inflation factored in.

1.6% Rate of Inflation (conservatively) X 4 yrs. = 6.4%.

So, 10.2% - 6.4% = 3.8% real increase in pay over four years.
3.8% divided by 4 yrs. = .95% pay increase per yr. in real dollars.

With inflation on the rise and the Feds correspondingly raising interest rates, it doesn't seem like much after two plus years of negotiating. Hopefully, there are other work rule improvements that translate into REAL dollars.

 

[Purpled]

So 3.0%/yr. - 1.95%/yr. = 1.55%/yr. pay increase.

This is the worst math I've seen since the Gore campaign.

1.95% of 3.00% is .02535% The union gets an extra quarter of a percent compared to what they are getting now.

Do you also think that when you make that last dollar which puts you into the next higher tax bracket that you are actually losing money now because of that raise?

 

[USMCFDX]

Purpled I guess he likes fuzzy math. Fox2 spent all that time on that post just to get it wrong.

Fox2 probably spells potato with an e.

 

[Attkpuke]

Gearup"s comment...

"FedEx dosen't have brokerage option. All we have is around a dozen standard type funds. S&P index, agressive, international, bond, ect."

is incorrect. You may, by contacting the plan administrator via employee benefits, opt out of the funds offered and self-direct. Not many do it and I'm not sure of the ramifications of doing so but I have spoken personally with a crew member who is doing it. I believe this goes for the 401k as well as the B fund...the important thing is make sure it's done within the/a "qualified" account, ie a a tax deferred account.

 

[Brian a300]

Why not stop speculating and wait for the TA? I believe we will all be happy, but again I do think the glass is half full..

 

[VaB]

Why not stop speculating and wait for the TA? I believe we will all be happy, but again I do think the glass is half full..

Happy or not, ya gotta vote the first one down.

 

[Brian a300]

Happy or not, ya gotta vote the first one down.

Wait and read it 1st, u may be surprised!!

 

[LivinDaDream]

VaB,

I'm not sure where you get this "vote the first one down" mantra from. Is this your first contract ever, or what?

Go back through the negotiating history of all airlines and show me one positive outcome from a "vote the first one down" philosophy. That is SO short-sided and naive.

Like several wise folks on this thread have said, wait for the TA, read it, attend road shows, ask questions, think it through, and then vote your best interest. I would actually encourage you to contact a rep or a negotiating committee member and ask them what they think about "vote the first one down". Then explain to them why you think that makes so much sense. I would actually like to hear your arguments for this stance.

I'm not telling you how to vote, I would just hope that my fellow pilots are using a little more responsible approach to an important matter.

 

[PurpleTail]

Regarding the 3%/yr. pay increase: It costs each pilot 1.95%/yr in union dues, plus 1.6% Rate of Inflation = 3.55%. That's a LOSS of 0.55%/yr in real dollars in years two through four. Even if one discounts the rate of inflation, one must at least subtract the costs of doing business. So 3.0%/yr. - 1.95%/yr. = 1.55%/yr. pay increase.

.

Also, on a side note, your Union dues are tax deductable so you get a lot of that money back...quit crying about you RAISE when 90% of the industry have been taking DEEP cuts.

 

[twgordy]

Here is an idea! If you guys don't like working at FedEx may I suggest you put your app in with ASA, Skywest, Comair, etc....! Mabey you would be happier.