100/hour/5y
Well-known member
- Joined
- Nov 1, 2002
- Posts
- 188
Council 153 Update for November 30th, 2012
Friday, November 30, 2012
I. TWO DOWN, THREE TO GO
We would like to thank all those pilots- both from the L-CAL side and the L-UAL side- who attended our special LEC meetings the last two days. The turnout was better than expected (always a little reassuring for us) and the discussions were excellent. Having so many perspectives definitely brought an amazing amount of value to the conversations.
For those of you unable to attend- or even for those of you who want to participate again- we will have another round of meetings next week. Based on your suggestions, we are extending our invitation and formally inviting our fellow L-UAL Council 57 Representatives and all United pilots. We hope to see you there!
II. “NO”, MAYBE, AND NOT ENOUGH
Between the two meetings, there a couple of consistent questions that we would like to share here with everyone.
Q: Why did you vote against this TA?
A: The four cornerstones of this TA are insufficient and not industry leading and like it or not, this contract will form the bedrock of future agreements for years to come . While there are some improvements in certain areas, we feel there are still too many areas where we lag behind. Our MEC made a commitment to our pilot group to achieve an industry leading contract. Slowly but surely, the tone changed from “industry leading” to “mostly industry leading” to “industry standard” before finally stopping at “well, it's comparable to Delta's or American's contracts" (in bankruptcy, no less). You expected more and we promised more. This TA fails to deliver.
Furthermore- and this is something we are really trying to convey to our L-UAL brothers & sisters- this TA is ripe for the abusive practices of our management to continue to exploit. Trust us- we've seen it happen so many times, that it's practically common sense for us now! When Mother Nature so much as sneezes and the operation falls apart, lineholders will be treated like reserves and reserves will feel like indentured servants. It will happen!
Q: If this TA fails, what happens?
A: That is the million dollar question, and since our crystal ball has been MEL'd, our answer is partly empirical and partly gut feeling. The spectrum runs anywhere from being stagnant for a long time and rehashing everything to jumping right back into it and making enough improvements to make this TA palatable to enough people. Perhaps we are giving management too much credit, but Rob & Mike believe that the company is prepared to re-engage quickly in order to get this done. Josh feels it will take longer as management has not set a past precedent of moving quickly in our negotiating process.
Particularly if the margin against this TA is close- the quickest way to seal the deal before the momentum fades would be for management to reach a little deeper into their pockets. Bringing us up to parity with DAL's pay rates, adding more towards the lump sum and some contractual language changes would be three quick fixes. We believe those are easily achievable. Labor is the last “hurdle” standing between management and their bonuses (as well as bragging rights), and we believe they are becoming more desperate to get this done.
Q: How much will this TA cost the company?
A: As part of our “ground school” education about this TA, we were briefed by ALPA's Economic & Financial Analysis committee on this very subject. While there are many assumptions and estimations thrown into the calculations, the net result is that yes- this will cost the company a lot of money, but not enough to put them near the brink of disaster. (Obviously one of the assumptions is that our management can figure out how to run an airline with at least some measure of success.) There is no doubt that adequately paying (and respecting) those professional pilots who safely operate multi-million dollar aircraft full of precious cargo at all hours of the day & night and in all types of risky environments costs money. That's just the way it is.
By the way, if someone from senior management happens to be reading this (we suspect they do)- here's a little secret: treat your employees well and watch the transformation. But we digress.
These are just a few of the topics discussed at our meetings. They sound much better live and interactive. You should come to one of our meetings and experience it for yourself.
III. DIAMONDS IN THE ROUGH...OR STEPPING ON A LANDMINE?
We've already made our reasons for not supporting this TA abundantly clear, but here are a few more little “gems” that may have been buried in that mountain known as Obscurity.
Lump sum taxes- even if this TA is ratified December 15th, the lump sum distribution will not occur until 2013, and you are responsible for the employer contributions of taxes. So on top of the federal 25% tax, you will pick up not only your share of FICA taxes (around 7%), but the company's share as well- to the tune of another 7% (give or take), for a total of approximately 40% right off the top. We also find it somewhat ironic (or comical?) that we end up paying the company's tax on money that is supposed to be compensation for the loan we gave the company as part of Contract '02. Who has the last laugh indeed?
Scope- while it sounds nice to hear that outsourced regional jets will be reduced from the current number of 588 down to 450, and express block hours will be reduced down to 68% of narrow-body block hours, there is one rather large assumption included in there. Those numbers are based on the assumption that the company is not satisfied with only 153 76-seat RJs, and moreover, that the company has any desire to add 90-100 seat jets to the mainline fleet. Without that assumption becoming reality, the company may outsource up to 153 76-seaters while keeping the regional block hour ratio capped at 120% of single-aisle mainline block hours (which is currently in the neighborhood of 110%).
Thirteen days off in a 31 day month- interestingly enough the company has attempted to change the way we track time and unilaterally modified the traditional Gregorian calendar to their benefit. Perhaps acting a little prematurely, they recently adjusted our current six 31-day bid months down to three and completely removed the 30th and 31st of December as if those dates never existed. (The end of the world notwithstanding, we expect those days will show up in the January 2014 bid month.) Coincidentally, this will result in a loss of three days off next year for our reserves; but not to worry, the rest of the contract will not be subject to any creative management interpretations.
The Implementation Timeline- perhaps this TA (if it passes) should be called “Preview 2013” rather than “Contract 2012” with all the significant changes that are delayed for nine months- or longer. Yes, some of the attention-getting pay improvements happen at three months or sooner, but the majority of the true quality of life improvements don't kick in until later...much later. For example, one of the biggest "gains" in this TA- line construction based on a minimum of five hours per day- does not go into effect until the "ninth bid Period after effective date". And since so many of you have asked, the target date for “implemented with combined CMS” is September 2013, in preparation for the FAR 117 changes scheduled for January 2014. So, while the target date is nine months away, the real deadline is a year away. This is an “IT company with wings.” Plan accordingly.
IV. ANOTHER WORD TO OUR L-UAL FAMILY
We've said it before, but we want there to be absolutely no question about it. We are not interested in delaying getting a new contract at all- no one benefits from that. We all want what we deserve right now. We just don't see this TA as being adequate. Quite honestly, we believed from the beginning that having the formidable UAL pilot group standing shoulder to shoulder with us would help all of us achieve our goals. We looked to you guys (and gals) to strengthen our resolve.
Unfortunately, as this story unfolds, it seems as though this TA is not being judged on its merit alone, but rather the fear that we have something up our sleeve or that the once industry giant of United Airlines will whittle away. Both are untrue. The former is likely the result of an individual paranoia that caught like wildfire and the latter is based on incomplete knowledge, which we would like to briefly address.
While certain provisions of the TPA can be terminated by the company after March 31, 2013- including furlough protection and flying ratios- the concern over being “Easternized” simply cannot happen. Section 1-F of the L-UAL 2003 Agreement (which is still active) dictates the minimum number of block hours that L-UAL will operate. That is still in effect and will be until superseded by a successor agreement. You don't have to rush to get this done before March 31, 2013!
Furthermore, we don't have a strategy to screw you in the SLI process. We realized long ago that we have no control over the integrated seniority list. It will be decided by an arbitrator (who thus far has refused to accept any unmarked bills from us [kidding!]), and the results will be whatever they will be.
Management has successfully pitted our two pilot groups against each other while they sit back and enjoy the show. Unless we realize that, and turn our focus toward getting what we all collectively deserve, we all will fail.
Rob, Mike, and Josh
I. TWO DOWN, THREE TO GO
We would like to thank all those pilots- both from the L-CAL side and the L-UAL side- who attended our special LEC meetings the last two days. The turnout was better than expected (always a little reassuring for us) and the discussions were excellent. Having so many perspectives definitely brought an amazing amount of value to the conversations.
For those of you unable to attend- or even for those of you who want to participate again- we will have another round of meetings next week. Based on your suggestions, we are extending our invitation and formally inviting our fellow L-UAL Council 57 Representatives and all United pilots. We hope to see you there!
II. “NO”, MAYBE, AND NOT ENOUGH
Between the two meetings, there a couple of consistent questions that we would like to share here with everyone.
Q: Why did you vote against this TA?
A: The four cornerstones of this TA are insufficient and not industry leading and like it or not, this contract will form the bedrock of future agreements for years to come . While there are some improvements in certain areas, we feel there are still too many areas where we lag behind. Our MEC made a commitment to our pilot group to achieve an industry leading contract. Slowly but surely, the tone changed from “industry leading” to “mostly industry leading” to “industry standard” before finally stopping at “well, it's comparable to Delta's or American's contracts" (in bankruptcy, no less). You expected more and we promised more. This TA fails to deliver.
Furthermore- and this is something we are really trying to convey to our L-UAL brothers & sisters- this TA is ripe for the abusive practices of our management to continue to exploit. Trust us- we've seen it happen so many times, that it's practically common sense for us now! When Mother Nature so much as sneezes and the operation falls apart, lineholders will be treated like reserves and reserves will feel like indentured servants. It will happen!
Q: If this TA fails, what happens?
A: That is the million dollar question, and since our crystal ball has been MEL'd, our answer is partly empirical and partly gut feeling. The spectrum runs anywhere from being stagnant for a long time and rehashing everything to jumping right back into it and making enough improvements to make this TA palatable to enough people. Perhaps we are giving management too much credit, but Rob & Mike believe that the company is prepared to re-engage quickly in order to get this done. Josh feels it will take longer as management has not set a past precedent of moving quickly in our negotiating process.
Particularly if the margin against this TA is close- the quickest way to seal the deal before the momentum fades would be for management to reach a little deeper into their pockets. Bringing us up to parity with DAL's pay rates, adding more towards the lump sum and some contractual language changes would be three quick fixes. We believe those are easily achievable. Labor is the last “hurdle” standing between management and their bonuses (as well as bragging rights), and we believe they are becoming more desperate to get this done.
Q: How much will this TA cost the company?
A: As part of our “ground school” education about this TA, we were briefed by ALPA's Economic & Financial Analysis committee on this very subject. While there are many assumptions and estimations thrown into the calculations, the net result is that yes- this will cost the company a lot of money, but not enough to put them near the brink of disaster. (Obviously one of the assumptions is that our management can figure out how to run an airline with at least some measure of success.) There is no doubt that adequately paying (and respecting) those professional pilots who safely operate multi-million dollar aircraft full of precious cargo at all hours of the day & night and in all types of risky environments costs money. That's just the way it is.
By the way, if someone from senior management happens to be reading this (we suspect they do)- here's a little secret: treat your employees well and watch the transformation. But we digress.
These are just a few of the topics discussed at our meetings. They sound much better live and interactive. You should come to one of our meetings and experience it for yourself.
III. DIAMONDS IN THE ROUGH...OR STEPPING ON A LANDMINE?
We've already made our reasons for not supporting this TA abundantly clear, but here are a few more little “gems” that may have been buried in that mountain known as Obscurity.
Lump sum taxes- even if this TA is ratified December 15th, the lump sum distribution will not occur until 2013, and you are responsible for the employer contributions of taxes. So on top of the federal 25% tax, you will pick up not only your share of FICA taxes (around 7%), but the company's share as well- to the tune of another 7% (give or take), for a total of approximately 40% right off the top. We also find it somewhat ironic (or comical?) that we end up paying the company's tax on money that is supposed to be compensation for the loan we gave the company as part of Contract '02. Who has the last laugh indeed?
Scope- while it sounds nice to hear that outsourced regional jets will be reduced from the current number of 588 down to 450, and express block hours will be reduced down to 68% of narrow-body block hours, there is one rather large assumption included in there. Those numbers are based on the assumption that the company is not satisfied with only 153 76-seat RJs, and moreover, that the company has any desire to add 90-100 seat jets to the mainline fleet. Without that assumption becoming reality, the company may outsource up to 153 76-seaters while keeping the regional block hour ratio capped at 120% of single-aisle mainline block hours (which is currently in the neighborhood of 110%).
Thirteen days off in a 31 day month- interestingly enough the company has attempted to change the way we track time and unilaterally modified the traditional Gregorian calendar to their benefit. Perhaps acting a little prematurely, they recently adjusted our current six 31-day bid months down to three and completely removed the 30th and 31st of December as if those dates never existed. (The end of the world notwithstanding, we expect those days will show up in the January 2014 bid month.) Coincidentally, this will result in a loss of three days off next year for our reserves; but not to worry, the rest of the contract will not be subject to any creative management interpretations.
The Implementation Timeline- perhaps this TA (if it passes) should be called “Preview 2013” rather than “Contract 2012” with all the significant changes that are delayed for nine months- or longer. Yes, some of the attention-getting pay improvements happen at three months or sooner, but the majority of the true quality of life improvements don't kick in until later...much later. For example, one of the biggest "gains" in this TA- line construction based on a minimum of five hours per day- does not go into effect until the "ninth bid Period after effective date". And since so many of you have asked, the target date for “implemented with combined CMS” is September 2013, in preparation for the FAR 117 changes scheduled for January 2014. So, while the target date is nine months away, the real deadline is a year away. This is an “IT company with wings.” Plan accordingly.
IV. ANOTHER WORD TO OUR L-UAL FAMILY
We've said it before, but we want there to be absolutely no question about it. We are not interested in delaying getting a new contract at all- no one benefits from that. We all want what we deserve right now. We just don't see this TA as being adequate. Quite honestly, we believed from the beginning that having the formidable UAL pilot group standing shoulder to shoulder with us would help all of us achieve our goals. We looked to you guys (and gals) to strengthen our resolve.
Unfortunately, as this story unfolds, it seems as though this TA is not being judged on its merit alone, but rather the fear that we have something up our sleeve or that the once industry giant of United Airlines will whittle away. Both are untrue. The former is likely the result of an individual paranoia that caught like wildfire and the latter is based on incomplete knowledge, which we would like to briefly address.
While certain provisions of the TPA can be terminated by the company after March 31, 2013- including furlough protection and flying ratios- the concern over being “Easternized” simply cannot happen. Section 1-F of the L-UAL 2003 Agreement (which is still active) dictates the minimum number of block hours that L-UAL will operate. That is still in effect and will be until superseded by a successor agreement. You don't have to rush to get this done before March 31, 2013!
Furthermore, we don't have a strategy to screw you in the SLI process. We realized long ago that we have no control over the integrated seniority list. It will be decided by an arbitrator (who thus far has refused to accept any unmarked bills from us [kidding!]), and the results will be whatever they will be.
Management has successfully pitted our two pilot groups against each other while they sit back and enjoy the show. Unless we realize that, and turn our focus toward getting what we all collectively deserve, we all will fail.
Rob, Mike, and Josh
