Dizel8
Douglas metal
- Joined
- Feb 27, 2003
- Posts
- 2,817
I apologize for the cut and paste job, however, I figured this would be interesting to post.
DTW/COUNCIL 20 SPECIAL UPDATE
UPDATED NWA CONCESSION PROPOSAL
October 5, 2005
NWA Management’s 09/27/05 Pilot Concession Proposal
The NWA management presented ALPA with an updated (post-C11 filing) Labor Cost Restructuring “Term Sheet” on September 27. Most, if not all, of this proposal will be included in the 1113© filing that NWA is expected to present in Bankruptcy Court as early as this week.
An Across the Table from the Negotiating Committee, which gives an overview and perspective of the proposal from the Negotiating Committee, was distributed to all pilots via e-mail and USPS on September 28. This update will address some of the specifics and offer some perspectives regarding management’s proposal.
· Management’s estimated “steady state” (once all of the contract changes’ benefits are fully realized) value for this proposal is approximately $362M annually (averaged from 2007 to 2010). Their 2006 value is $325M.
· These values still do not include credit for a pension freeze or benefits from any potential legislative relief, even though both would result in a substantial decrease in Pilot Cost per Available Seat Mile (P-CASM). This is the parameter that management is using to compare us to other carriers and target our cost reduction. They are attempting to require the full reductions to be derived from pay and work rule changes only (even though the cost savings due to pension freeze and any legislative relief will result in additional P-CASM savings below the cost target).
· These values do not include any credits for their proposed changes to scope.
· The proposed contract term is through 1/1/2011.
Pay Rates
Disclaimer. Please note that the discussion/analysis of this and the other components of management’s proposal should NOT be construed as an endorsement, or even tacit acceptance, of management’s proposal. Management’s proposal is a disgusting, opportunistic, overreaching, greedy, shameless attempt to permanently decimate our careers at NWA, and substantially contribute to the degradation of the profession. This update is intended not only to convey elements of their proposal, but also to show the absurdity and potential impact of some of their proposals.
· Average 28.4% reduction in hourly rates achieved through five pay groupings. The cuts are not across the board. Generally, the more senior wide-body positions receive lesser (%) reductions, and more junior positions receive the greatest (%) reductions. (B747 CA & FO would see a 19% reduction, while a DC9 FO would see a 45% reduction. A320 CA & FO would also see a disproportionate reduction in the 30% + range.) See the following tables.
· These hourly pay rates were derived in the following manner (for both CA and FO positions).
o B747-400 and B747 rates are UAL B747-400/B777 rates.
o B787, A330, and DC10 rates are US Airways A330 rates.
o B757 & A320 rates are the respective US Airways rates.
o DC9 rates are US Airways/America West Embraer 190 rates. (Generally a 90-seat aircraft.)
o B747 and DC10 SO rates are US Airways B757 FO rates.
· Additional 5% pay rate reduction while NWA remains in C11.
· No pay raises for the term of the agreement (through 1/1/2011).
· Premium Pay and International Premium eliminated.
· These pay rates were “cherry picked” from the worst in the industry for each category.
Tables
· The first pay table shows management’s proposed pay rates and the % reduction from the current Bridge Agreement (BA) rates. Pay rates for category and years of service combinations that don’t currently, or won’t likely, exist in the pilot group have been omitted. The last row represents Year 12 rates –5%.
· The second table shows actual % pay reductions which include a change in category/seat.
· The third table is a pay rate comparison with other airlines.
Proposed Rates / percentage reduction from BA. Rounded to the nearest $ and 0.1%.
YOS B744
CA B747
CA B787
CA A330
CA DC10
CA B757
CA A320
CA B744
FO B747
FO B787
FO A330
FO DC10
FO DC9
CA B757
FO B747
SO DC10
SO A320
FO DC9
FO
BA-
SIS UAL
777 UAL
777 US
330 US
330 US
330 US
757 US
320 UAL
777 UAL
777 US
330 US
330 US
330 US
E190 US
757 US
757 US
757 US
320 US/HP
E190
12 179
-22.9 179
-19.0 160
-25.2 160
-23.7 160
-23.3 144
-23.0 125
-30.6 122
-22.6 122
-18.6 109
-24.9 109
-23.4 109
-23.0 99
-39.3 98
-22.6 98
-25.8 98
-21.2 85
-30.3 61
-44.7
11 123 121
-22.8 121
-18.9 108 108
-23.7 108
-23.3 97
-39.6 97
-23.0 97
-25.5 97
-20.9 84
-30.7 60
-45.0
10 122 120 120
-18.6 106 106
-23.5 106
-23.1 96
-39.9 96
-22.8 96
-25.8 96
-21.3 83
-30.6 59
-44.9
9 118 118 105 105 105 95 94
-22.3 94
-25.9 94
-21.3 82
-30.3 58
-44.7
8 103 103 103 94 93
-20.7 93
-24.8 93
-20.2 81
-28.9 58
-43.6
7 101 101 101 93 91
-20.8 91
-24.7 91
-20.0 79
-28.9 56
-43.6
6 98 98 98 93 89
-21.1 89
-24.8 89
-20.2 77
-29.3 55
-43.9
5 96 96 96 92 87
-21.2 87
-24.8 87
-20.1 75
-29.5 53
-44.1
4 94 94 94 91 85 85 85 73 52
3 79 79 79 90 72 72 72 62 44
2 73 73 73 89 66 66 66 57 41
-51.5
1 25 25 25 89 25 25 25 25 25
12
-5% 170 170 152 152 152 137 119 116 116 104 104 104 94 93 93 93 81 58
Aggregate pay reductions
· The next chart shows percentage pay reductions that would result from management’s proposed pay reductions and changes in category/position as a result of displacements and, in a few cases, awards.
· The table is arranged with the highest-paying categories beginning at the top/left, and the lowest-paying categories at the bottom/right.
· Rate reductions to a lower paying category are shown in red; reductions that include movement to a higher paying category, are shown in blue.
· The pay category moves not represented in the chart are moves that will likely never occur (i.e., B744 CA to A320 FO).
· Moves from the B787 are not shown since there are not currently any pilots in that category.
· C = Captain; F = First Officer; S = Second Officer
· All rates are year 12.
· Three pay categories down and one pay category up are bolded due to the reasonable expectation of movement direction during the term of the next contract.
· These reductions are in addition to the 15% pay reductions included in the Bridge Agreement.
Current Category vs. Displaced / Awarded Category. Percent change rounded to nearest 0.1%
744C 747C 787C 330C D10C 757C 320C 744F 747F 787F 330F D10F DC9C 757F 747S D10S 320F DC9F
744C -22.9 -22.9 -31.3 -31.3 -31.3 -38.0 -46.2 -47.4 -47.4 -53.1 -57.6 -57.6
747C -19.0 -19.0 -27.8 -27.8 -27.8 -34.8 -43.5 -44.7 -44.7 -50.7 -55.5 -55.5
787C -25.2
330C -14.4 -14.4 -23.7 -23.7 -23.7 -31.1 -40.3 -41.6 -41.6 -47.9 -47.9 -53.0 -53.0
D10C -14.0 -14.0 -23.3 -23.3 -23.3 -30.8 -40.0 -41.3 -41.3 -47.6 -47.6 -47.6 -52.6 -52.7 -52.7
757C -4.3 -4.3 -14.7 -14.7 -14.7 -23.0 -33.2 -34.6 -34.6 -41.7 -41.7 -41.7 -47.3 -47.4 -47.4 -47.4
320C -0.6 -0.6 -11.3 -11.3 -11.3 -20.0 -30.6 -32.1 -32.1 -39.4 -39.4 -39.4 -45.2 -45.3 -45.3 -45.3 -52.6
744F +13.3 +13.3 +1.1 +1.1 +1.1 -8.8 -20.9 -22.6 -22.6 -31.0 -31.0 -31.0 -37.6 -37.7 -37.7 -37.7 -46.0 -61.3
747F +19.0 +19.0 +6.2 +6.2 +6.2 -4.1 -16.9 -18.6 -18.6 -27.4 -27.4 -27.4 -34.4 -34.5 -34.5 -34.5 -43.2 -59.3
787F -24.9
330F +26.0 +26.0 +12.2 +12.2 +12.2 +1.3 -12.2 -14.1 -14.1 -23.4 -23.4 -23.4 -30.7 -30.8 -30.8 -30.8 -40.0 -57.0
D10F +26.5 +26.5 +12.8 +12.8 +12.8 +1.8 -11.7 -13.6 -13.6 -23.0 -23.0 -23.0 -30.3 -30.5 -30.5 -30.5 -39.7 -56.8
DC9C +9.2 +9.2 -1.8 -1.8 -1.8 -11.4 -23.2 -24.8 -24.8 -32.9 -32.9 -32.9 -39.3 -39.5 -39.5 -39.5 -47.5 -62.4
757F +40.1 +40.1 +25.5 +25.5 +25.5 +13.3 -1.8 -3.9 -3.9 -14.3 -14.3 -14.3 -22.5 -22.6 -22.6 -22.6 -32.9 -51.9
747S +35.0 +35.0 +20.4 +20.4 +20.4 +8.7 -5.8 -7.8 -7.8 -17.8 -17.8 -17.8 -25.6 -25.8 -25.8 -25.8 -35.6 -53.9
D10S +43.3 +43.3 +27.8 +27.8 +27.8 +15.4 0.0 -2.1 -2.1 -14.6 -14.6 -14.6 -21.0 -21.2 -21.2 -21.2 -31.7 -51.0
320F +46.2 +46.2 +30.4 +30.4 +30.4 +17.7 +2.1 -0.1 -0.1 -10.9 -10.9 -10.9 -19.4 -19.6 -19.6 -19.6 -30.3 -50.1
DC9F +61.9 +61.9 +44.4 +44.4 +44.4 +30.3 +13.0 +10.6 +10.6 -1.4 -1.4 -1.4 -10.8 -11.0 -11.0 -11.0 -22.8 -44.7
DTW/COUNCIL 20 SPECIAL UPDATE
UPDATED NWA CONCESSION PROPOSAL
October 5, 2005
NWA Management’s 09/27/05 Pilot Concession Proposal
The NWA management presented ALPA with an updated (post-C11 filing) Labor Cost Restructuring “Term Sheet” on September 27. Most, if not all, of this proposal will be included in the 1113© filing that NWA is expected to present in Bankruptcy Court as early as this week.
An Across the Table from the Negotiating Committee, which gives an overview and perspective of the proposal from the Negotiating Committee, was distributed to all pilots via e-mail and USPS on September 28. This update will address some of the specifics and offer some perspectives regarding management’s proposal.
· Management’s estimated “steady state” (once all of the contract changes’ benefits are fully realized) value for this proposal is approximately $362M annually (averaged from 2007 to 2010). Their 2006 value is $325M.
· These values still do not include credit for a pension freeze or benefits from any potential legislative relief, even though both would result in a substantial decrease in Pilot Cost per Available Seat Mile (P-CASM). This is the parameter that management is using to compare us to other carriers and target our cost reduction. They are attempting to require the full reductions to be derived from pay and work rule changes only (even though the cost savings due to pension freeze and any legislative relief will result in additional P-CASM savings below the cost target).
· These values do not include any credits for their proposed changes to scope.
· The proposed contract term is through 1/1/2011.
Pay Rates
Disclaimer. Please note that the discussion/analysis of this and the other components of management’s proposal should NOT be construed as an endorsement, or even tacit acceptance, of management’s proposal. Management’s proposal is a disgusting, opportunistic, overreaching, greedy, shameless attempt to permanently decimate our careers at NWA, and substantially contribute to the degradation of the profession. This update is intended not only to convey elements of their proposal, but also to show the absurdity and potential impact of some of their proposals.
· Average 28.4% reduction in hourly rates achieved through five pay groupings. The cuts are not across the board. Generally, the more senior wide-body positions receive lesser (%) reductions, and more junior positions receive the greatest (%) reductions. (B747 CA & FO would see a 19% reduction, while a DC9 FO would see a 45% reduction. A320 CA & FO would also see a disproportionate reduction in the 30% + range.) See the following tables.
· These hourly pay rates were derived in the following manner (for both CA and FO positions).
o B747-400 and B747 rates are UAL B747-400/B777 rates.
o B787, A330, and DC10 rates are US Airways A330 rates.
o B757 & A320 rates are the respective US Airways rates.
o DC9 rates are US Airways/America West Embraer 190 rates. (Generally a 90-seat aircraft.)
o B747 and DC10 SO rates are US Airways B757 FO rates.
· Additional 5% pay rate reduction while NWA remains in C11.
· No pay raises for the term of the agreement (through 1/1/2011).
· Premium Pay and International Premium eliminated.
· These pay rates were “cherry picked” from the worst in the industry for each category.
Tables
· The first pay table shows management’s proposed pay rates and the % reduction from the current Bridge Agreement (BA) rates. Pay rates for category and years of service combinations that don’t currently, or won’t likely, exist in the pilot group have been omitted. The last row represents Year 12 rates –5%.
· The second table shows actual % pay reductions which include a change in category/seat.
· The third table is a pay rate comparison with other airlines.
Proposed Rates / percentage reduction from BA. Rounded to the nearest $ and 0.1%.
YOS B744
CA B747
CA B787
CA A330
CA DC10
CA B757
CA A320
CA B744
FO B747
FO B787
FO A330
FO DC10
FO DC9
CA B757
FO B747
SO DC10
SO A320
FO DC9
FO
BA-
SIS UAL
777 UAL
777 US
330 US
330 US
330 US
757 US
320 UAL
777 UAL
777 US
330 US
330 US
330 US
E190 US
757 US
757 US
757 US
320 US/HP
E190
12 179
-22.9 179
-19.0 160
-25.2 160
-23.7 160
-23.3 144
-23.0 125
-30.6 122
-22.6 122
-18.6 109
-24.9 109
-23.4 109
-23.0 99
-39.3 98
-22.6 98
-25.8 98
-21.2 85
-30.3 61
-44.7
11 123 121
-22.8 121
-18.9 108 108
-23.7 108
-23.3 97
-39.6 97
-23.0 97
-25.5 97
-20.9 84
-30.7 60
-45.0
10 122 120 120
-18.6 106 106
-23.5 106
-23.1 96
-39.9 96
-22.8 96
-25.8 96
-21.3 83
-30.6 59
-44.9
9 118 118 105 105 105 95 94
-22.3 94
-25.9 94
-21.3 82
-30.3 58
-44.7
8 103 103 103 94 93
-20.7 93
-24.8 93
-20.2 81
-28.9 58
-43.6
7 101 101 101 93 91
-20.8 91
-24.7 91
-20.0 79
-28.9 56
-43.6
6 98 98 98 93 89
-21.1 89
-24.8 89
-20.2 77
-29.3 55
-43.9
5 96 96 96 92 87
-21.2 87
-24.8 87
-20.1 75
-29.5 53
-44.1
4 94 94 94 91 85 85 85 73 52
3 79 79 79 90 72 72 72 62 44
2 73 73 73 89 66 66 66 57 41
-51.5
1 25 25 25 89 25 25 25 25 25
12
-5% 170 170 152 152 152 137 119 116 116 104 104 104 94 93 93 93 81 58
Aggregate pay reductions
· The next chart shows percentage pay reductions that would result from management’s proposed pay reductions and changes in category/position as a result of displacements and, in a few cases, awards.
· The table is arranged with the highest-paying categories beginning at the top/left, and the lowest-paying categories at the bottom/right.
· Rate reductions to a lower paying category are shown in red; reductions that include movement to a higher paying category, are shown in blue.
· The pay category moves not represented in the chart are moves that will likely never occur (i.e., B744 CA to A320 FO).
· Moves from the B787 are not shown since there are not currently any pilots in that category.
· C = Captain; F = First Officer; S = Second Officer
· All rates are year 12.
· Three pay categories down and one pay category up are bolded due to the reasonable expectation of movement direction during the term of the next contract.
· These reductions are in addition to the 15% pay reductions included in the Bridge Agreement.
Current Category vs. Displaced / Awarded Category. Percent change rounded to nearest 0.1%
744C 747C 787C 330C D10C 757C 320C 744F 747F 787F 330F D10F DC9C 757F 747S D10S 320F DC9F
744C -22.9 -22.9 -31.3 -31.3 -31.3 -38.0 -46.2 -47.4 -47.4 -53.1 -57.6 -57.6
747C -19.0 -19.0 -27.8 -27.8 -27.8 -34.8 -43.5 -44.7 -44.7 -50.7 -55.5 -55.5
787C -25.2
330C -14.4 -14.4 -23.7 -23.7 -23.7 -31.1 -40.3 -41.6 -41.6 -47.9 -47.9 -53.0 -53.0
D10C -14.0 -14.0 -23.3 -23.3 -23.3 -30.8 -40.0 -41.3 -41.3 -47.6 -47.6 -47.6 -52.6 -52.7 -52.7
757C -4.3 -4.3 -14.7 -14.7 -14.7 -23.0 -33.2 -34.6 -34.6 -41.7 -41.7 -41.7 -47.3 -47.4 -47.4 -47.4
320C -0.6 -0.6 -11.3 -11.3 -11.3 -20.0 -30.6 -32.1 -32.1 -39.4 -39.4 -39.4 -45.2 -45.3 -45.3 -45.3 -52.6
744F +13.3 +13.3 +1.1 +1.1 +1.1 -8.8 -20.9 -22.6 -22.6 -31.0 -31.0 -31.0 -37.6 -37.7 -37.7 -37.7 -46.0 -61.3
747F +19.0 +19.0 +6.2 +6.2 +6.2 -4.1 -16.9 -18.6 -18.6 -27.4 -27.4 -27.4 -34.4 -34.5 -34.5 -34.5 -43.2 -59.3
787F -24.9
330F +26.0 +26.0 +12.2 +12.2 +12.2 +1.3 -12.2 -14.1 -14.1 -23.4 -23.4 -23.4 -30.7 -30.8 -30.8 -30.8 -40.0 -57.0
D10F +26.5 +26.5 +12.8 +12.8 +12.8 +1.8 -11.7 -13.6 -13.6 -23.0 -23.0 -23.0 -30.3 -30.5 -30.5 -30.5 -39.7 -56.8
DC9C +9.2 +9.2 -1.8 -1.8 -1.8 -11.4 -23.2 -24.8 -24.8 -32.9 -32.9 -32.9 -39.3 -39.5 -39.5 -39.5 -47.5 -62.4
757F +40.1 +40.1 +25.5 +25.5 +25.5 +13.3 -1.8 -3.9 -3.9 -14.3 -14.3 -14.3 -22.5 -22.6 -22.6 -22.6 -32.9 -51.9
747S +35.0 +35.0 +20.4 +20.4 +20.4 +8.7 -5.8 -7.8 -7.8 -17.8 -17.8 -17.8 -25.6 -25.8 -25.8 -25.8 -35.6 -53.9
D10S +43.3 +43.3 +27.8 +27.8 +27.8 +15.4 0.0 -2.1 -2.1 -14.6 -14.6 -14.6 -21.0 -21.2 -21.2 -21.2 -31.7 -51.0
320F +46.2 +46.2 +30.4 +30.4 +30.4 +17.7 +2.1 -0.1 -0.1 -10.9 -10.9 -10.9 -19.4 -19.6 -19.6 -19.6 -30.3 -50.1
DC9F +61.9 +61.9 +44.4 +44.4 +44.4 +30.3 +13.0 +10.6 +10.6 -1.4 -1.4 -1.4 -10.8 -11.0 -11.0 -11.0 -22.8 -44.7