FEDEX VEBA question on new contract

[Babylon]

Question for the saavy Fedex pilots on this new contract:

What's up with this VEBA charge? I see the recent union note that barely even mentioned it. Kind of convenient that this was skipped on any of the roadshows or electronic briefs about the new contract. The way it looks to me is that for an average 1000 CH year each pilot will contribute about $500 to this fund. My annual insurance premiums today for a family of 4 are a total of $1080 so this $500 is pretty significant. Now this money seems to go to current retirees and to set up a fund for future retirees. In reality there seems to be zero protection for future retirees and I suspect that this fund will go mostly to the current and very near future retirees and probably amount to nothing for the under 50 crowd.

I'd like to hear what others think - sorry for posting this here but I have no account on Airline Pilot Central.

 

[USMCFDX]

airline pilot central is free

 

[hoya saxa]

They did mention it in the Hub turn meeting I attended. $.50 per credit hour funneled to VEBA. I don't really have strong feelings about it one way or the other. I like the intent, but I too am skeptical whether the under 50 crowd (I'm 35) will see any benefit. Still, I don't mind helping control the costs for those retiring in the near term... as long as they leave when they turn 60!

 

[1st Overnite]

I thought some of the bonus money was supposed to go for this. How long are we going to be putting money into it?

 

[AlbieF15]

Let's see...I work at a company that was founded in '73 by a bunch of hard charging, never say die pilots...

I've got great union protection because a bunch of guys repeatedly stood up for me and against a lot of inertia got a solid union onboard with 97% voluntary membership...

I've got great health insurance, disability insurance, and work rules that make some guys at other carriers drop their jaws...

We are now a "verb" after a bunch of pilots made overnight delivery something everyone takes for granted, not a new crazy idea....

And finally--I just got a raise and some improvements to our contract...my pay alone jumped about 12 bucks an hour...

So explain to me why I should be P.O'd about .50 an hour to these old guys? I'm as anti Age 60 as the next guy--but OUR old guys--god bless 'em--build us one of the best and most secure jobs in the business, then helped us keep in going in the right direction with contract 06.

But...I do hope they have had enough when they are 60 and go enjoy the fruits of their labor...

 

[Babylon]

USMC - Airline Pilot Central is closed - has nothing to do with the money.

Albie - that argument could be used for anything. Why should you possibly get 7% on your B fund then? Heck you "work for a great company founded....". The point is to make a contract equitable between the various pilots - the older pilots, regardless of seniority, got a lot out of this contract and much of it was not mentioned during contract discussion. You got $12/hour increase? Probably just about entirely hourly adjustments that was less than a COLA as meansured by FICA and the gov't. If I remember correctly you're on the Boeing so you get next to zero of the int'l override, 8 hour capture, and rig changes. I don't want to rehash the whole thing here but my feeling is the VEBA contribution was "snuck" in the contract and never mentioned as a pilot contribution. For the record your contribution will last for the length of the contract. The .50/CH amounts to about 2.2 million/year - a bit less than the wet lease money - why not JUST use that money to cover it? Hmmm...whatever did happen to that money?

 

[Pecan]

??

.....and what does VEBA stand for again???

Thanks

 

[AlbieF15]

Let me say it like this....my NEGOTIATING COMMITTEE put it in there, and they signed off. My position since 02 has been I support that committee. I agree there are things that could be better--but I trusted my committees to give us the best deal they could. I'm going to focus on THOSE things verses sniping about the little things that could be better instead.

And...your concerns aren't without merit...and we can look closer at those issues on the next contract. I just don't like the "THEY gave this away, or THEY did that to us..." vibe. We worked together, got the best deal we could, and did (I think) an admirable job of supporting each other through the process. Issues, questions, and concerns (which are legitimate IMHO) like you raise all have a place...but perhaps your block rep/LEC is a good place for those answers.

And yeah...I'm on the 727. I could be somewhere else but I like my schedules. I think you guys doing the long trips and time zone changes deserve the improvements. The company has pushed guys to upgrade all along to the big jets, and with those changes there are even more financial incentives to do so. I think you guys earn it, but I'm happiest when I start and end my flights in the central time zone. I've gotten pretty old and boring and I like being able to call my kids anytime.

 

[Flybynite]

Albie, you do realize the whole "my negotiating comittee speaks for me" was to keep the company from trying to negotiate with individual groups within the crew force? It wasn't "originally" meant for members to just blindly follow and never question, although it seems to have come to that.

 

[USMCFDX]

USMC - Airline Pilot Central is closed - has nothing to do with the money.

Not going to say you are wrong without actually trying to get a new name over there myself, but I know for a fact someone just joined the other day and did their first post. Check out the Next FedEx chief pilot thread.

On this thread, I thought one of the FedEx penalty payments did go into the fund. The company also ponied up a large sum to feed the fund. All you have to do is call your rep or the office. I bet that you can even find out the value of the account. If you can not right now, I am sure that there is an end of year report that has to be public, just like out FedEx retirement values.