DON"T FALL FOR RUMORS, HERE ARE THE FACTS !
Pay
Yes this is not what we were aiming for. It is however an increase (5.1% to 10.6% for CAs and 13.4% to 23.9% for FOs). We tried to split the FO rates but simply did not have the leverage to do so. We did increase what was a low combined 34 seat turboprop rate for all FOs to a middle 50 seat Turbo Jet rate. Is it enough, that is for our membership to decide.
We did get an average of 3% annual increases (2% DOS +1, 2% DOS +2, 4% DOS +3, 4% DOS+4). This is 1.2% higher than the industry average. This 3% average increase allows us to move up through the pack toward the top throughout our contract, not fall behind (please refer to the pay charts in the T.A. Powerpoint Presentation).
As for the Pinnacle piece, yes it is true, for 8 months Pinnacle’s 50 seat rate is around 1% higher than our rate, in an airplane we do not fly. And in 2005 we are around 2% higher, 2006 5% higher, etc. One thing you need to look at is the overall contract. With the difference in our work rules alone (block or better, trip guarantee, and min day) we are paid 8%-10% higher than Pinnacle.
Min Day & Rigs
Yes we did not get rigs. We tried for look forward and look back rigs and we could not get them. Looking at our peers who have rigs, look back rigs are the most common. When we costed the rigs with our schedules on a look back basis the gain us less than 0.5% and in many cases they added no money to a pilot’s paycheck. We did achieve a look forward minimum day of 4:00. When we costed this, it added 2%-3% to a pilot’s W-2 on a scheduled line only; it is hard to predict a percentage increase based on integration and premium pay/junior manning, as it will vary for each pilot, but it could net a large increase based on a 6 hour min day for premium pay.
Retirement
Our retirement package is far from a failure. We costed hundreds of combinations of front loading and end loading the plans. When comparing other Retirement Plans that front load, we saw they did not achieve a higher value in the end, because the pay rates that F.O.’s and junior Captains are paid throughout the industry. Compounding on 3% of $30k for 30 years is not nearly as valuable as compounding 12.5% of $90k for 10 years. By setting up the retirement plan, making larger enhancements to the later years cost less and got us much more money for retirement. With a modest 5% average market return for 30 years our plan will allow you to retire at age 60 with 55% of our final average earning every year for the rest of our lives. This puts us at the top of our peer group, above ARW, ACO, PCL, EGL only being exceeded by Comair by 3%.
Retro Pay
This is retro pay. It is not 100% retro pay, but it is on an average 82% retro pay. We went 19 months past our amendable date. If you total the raises you missed to get us to the rates in our TA, that would be 100% retro pay. We were not able to achieve 100%, but we did get close (82.4%-91.3%).
Scheduling Provisions
We made leaps in the scheduling section. The consolidation of CDOs into pure CDO lines, should reduce CDOs and increase the days off for regular line holders. We made reserve lines biddable in the bid package allowing a reserve pilot the ability to use his seniority to enhance his quality of life. We improved out trip displacement provision and improved our inviolate days. In addition, there is now language that forces the Company to post all available open time until 48 hours prior to the trip and there is also a provision that allows a pilot that is Junior Assigned to opt to have the trip remain in open time until 6 hours prior to the trip.
Impact on the industry
How does this TA impact the industry? I have had my nose in every contract for the last 3 years. I know all of them well enough to know this TA as an overall package keeps us in the top quarter of the pack. When you look at not just the wages but the work rules, retirement, job security, training and testing and every other provision we have, we are not under cutting anyone. In fact we stopped a real threat to every pilot contract out there, Big Sky.
Big Sky’s contract is 20% to 30% lower than ours. They were bidding on every bit of flying they could get there hands on. Next time you bump into a Comair pilot ask them who they would be more concerned about; Mesaba with our TA that is not as high as theirs, but with start up costs are more expensive to do Delta flying, or Big Sky who’s contract is cheap enough to absorb the start up costs and still undercut every regional airline in the US. Our scope stopped Big Sky from under cutting virtually every airline in the industry. We protected our jobs and others. I think the TA’s Job Security provisions are the best in the regional industry. We captured our holding company and bound them to our contract. If they want to start up another company and grow outside the NWA family, they have to do it with our pilots under the terms of our contract. Not having scope in our last contracted costed our pilots LOA 15, we will never again be put in that position.
This TA has enhancement in every area. Are the enhancements enough? That’s for the 844 pilots at Mesaba to decide. I am not trying to sell this TA to anyone. All I ask is you get the facts and ignore the rumors you hear in the crew rooms. If you have any questions about the TA call one of your reps, MEC officers or call me. If after you hear the facts you still want to vote no, I’ll dial the phone for you to cast your vote, because it is important the each and every pilot vote (Yes or No) on this T.A.
Pay
Yes this is not what we were aiming for. It is however an increase (5.1% to 10.6% for CAs and 13.4% to 23.9% for FOs). We tried to split the FO rates but simply did not have the leverage to do so. We did increase what was a low combined 34 seat turboprop rate for all FOs to a middle 50 seat Turbo Jet rate. Is it enough, that is for our membership to decide.
We did get an average of 3% annual increases (2% DOS +1, 2% DOS +2, 4% DOS +3, 4% DOS+4). This is 1.2% higher than the industry average. This 3% average increase allows us to move up through the pack toward the top throughout our contract, not fall behind (please refer to the pay charts in the T.A. Powerpoint Presentation).
As for the Pinnacle piece, yes it is true, for 8 months Pinnacle’s 50 seat rate is around 1% higher than our rate, in an airplane we do not fly. And in 2005 we are around 2% higher, 2006 5% higher, etc. One thing you need to look at is the overall contract. With the difference in our work rules alone (block or better, trip guarantee, and min day) we are paid 8%-10% higher than Pinnacle.
Min Day & Rigs
Yes we did not get rigs. We tried for look forward and look back rigs and we could not get them. Looking at our peers who have rigs, look back rigs are the most common. When we costed the rigs with our schedules on a look back basis the gain us less than 0.5% and in many cases they added no money to a pilot’s paycheck. We did achieve a look forward minimum day of 4:00. When we costed this, it added 2%-3% to a pilot’s W-2 on a scheduled line only; it is hard to predict a percentage increase based on integration and premium pay/junior manning, as it will vary for each pilot, but it could net a large increase based on a 6 hour min day for premium pay.
Retirement
Our retirement package is far from a failure. We costed hundreds of combinations of front loading and end loading the plans. When comparing other Retirement Plans that front load, we saw they did not achieve a higher value in the end, because the pay rates that F.O.’s and junior Captains are paid throughout the industry. Compounding on 3% of $30k for 30 years is not nearly as valuable as compounding 12.5% of $90k for 10 years. By setting up the retirement plan, making larger enhancements to the later years cost less and got us much more money for retirement. With a modest 5% average market return for 30 years our plan will allow you to retire at age 60 with 55% of our final average earning every year for the rest of our lives. This puts us at the top of our peer group, above ARW, ACO, PCL, EGL only being exceeded by Comair by 3%.
Retro Pay
This is retro pay. It is not 100% retro pay, but it is on an average 82% retro pay. We went 19 months past our amendable date. If you total the raises you missed to get us to the rates in our TA, that would be 100% retro pay. We were not able to achieve 100%, but we did get close (82.4%-91.3%).
Scheduling Provisions
We made leaps in the scheduling section. The consolidation of CDOs into pure CDO lines, should reduce CDOs and increase the days off for regular line holders. We made reserve lines biddable in the bid package allowing a reserve pilot the ability to use his seniority to enhance his quality of life. We improved out trip displacement provision and improved our inviolate days. In addition, there is now language that forces the Company to post all available open time until 48 hours prior to the trip and there is also a provision that allows a pilot that is Junior Assigned to opt to have the trip remain in open time until 6 hours prior to the trip.
Impact on the industry
How does this TA impact the industry? I have had my nose in every contract for the last 3 years. I know all of them well enough to know this TA as an overall package keeps us in the top quarter of the pack. When you look at not just the wages but the work rules, retirement, job security, training and testing and every other provision we have, we are not under cutting anyone. In fact we stopped a real threat to every pilot contract out there, Big Sky.
Big Sky’s contract is 20% to 30% lower than ours. They were bidding on every bit of flying they could get there hands on. Next time you bump into a Comair pilot ask them who they would be more concerned about; Mesaba with our TA that is not as high as theirs, but with start up costs are more expensive to do Delta flying, or Big Sky who’s contract is cheap enough to absorb the start up costs and still undercut every regional airline in the US. Our scope stopped Big Sky from under cutting virtually every airline in the industry. We protected our jobs and others. I think the TA’s Job Security provisions are the best in the regional industry. We captured our holding company and bound them to our contract. If they want to start up another company and grow outside the NWA family, they have to do it with our pilots under the terms of our contract. Not having scope in our last contracted costed our pilots LOA 15, we will never again be put in that position.
This TA has enhancement in every area. Are the enhancements enough? That’s for the 844 pilots at Mesaba to decide. I am not trying to sell this TA to anyone. All I ask is you get the facts and ignore the rumors you hear in the crew rooms. If you have any questions about the TA call one of your reps, MEC officers or call me. If after you hear the facts you still want to vote no, I’ll dial the phone for you to cast your vote, because it is important the each and every pilot vote (Yes or No) on this T.A.
