FedEx and Pilots reach TA !!!!

[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.