IPA shifts to "unpredictable" open time ban
Fellow Association members, this is IPA President Bob Travis with a message from the IPA Executive Board.
Today we have an important announcement:
Effective for Bid Period 12-04, which starts on Sunday, May 20, 2012, the Executive Board has unanimously determined to modify the IPA Solidarity Policy. From May 20 through the bid period’s close on July 14, 2012, the Association encourages members to pick up open time and to accept JA assignments as you are able. The Association’s “no waivers, no favors” recommendation will remain in place and unchanged.
From now until the official start of the next bid period on May 20th, the Executive Board respectfully requests the membership to continue following the current Solidarity Policy. The Association’s intent is to make a bid period-by-bid period call on “turning on, turning off” the open time/JA spigot as we move forward until every furloughed member has been offered recall.
Why this action and why now? It’s really just math. Our action is based on calculations that very soon, as early as June, we will reach an “economic tipping point” whereby the monthly savings realized by the Company from our non pick-up of OT/JA will start exceeding amounts saved by UPS from having pilots on furlough.
The Solidarity Policy really has two sides. The first side represents a cost to UPS. UPS has to carry more staffing than they otherwise would be willing to carry—that of course costs them money. The other side of the Solidarity Policy actually saves them money, dollars they would normally pay out in OT pick-up and JAs. To date, the Solidarity Policy has represented a net cost to UPS. As the number of pilots on furlough shrinks, that equation is getting ready to change.
Our own Andy Murphy has placed this data in chart form that we are posting on the IPA web site for your review.
(Click here to view Andy’s chart)
So what does this mean for us? It means that as the number of pilots on furlough decreases, if we take no action, UPS will actually start enjoying a Solidarity Policy generated net cost advantage. Our concern is that this could inadvertently lead to an artificial prolonging of the furlough--just to keep the OT/JA cost savings in place (about $1.2 million per month.)
To date, the Company’s approach has been “on again, off again” with no consistent recall pattern. In fact, when asked to confirm whether or not they intend to continue the recall next month and beyond—the Company would not commit to any further recalls.
While we don’t question management’s right to run the business, we have a responsibility to act in the best interest of the pilot group. It is for this reason that we have decided that an “unpredictable” application of the IPA Solidarity Policy now provides the best opportunity to support the recall process.
Each bid period from now until the last furloughed IPA member is given an opportunity to return to service, the Association will announce whether the solidarity recommendation is “on” or “off” for that upcoming bid period. Our announcement will be made after the Company publishes the schedule bids, but before crewmember schedule bidding starts. The idea is to give the membership 100% visibility as to whether the ban is in place or not prior to schedule bidding.
In other words, the Solidarity Policy will be unpredictable for the Company, but not for you. You know each bid period, before you bid your schedule, whether the spigot is “ON” or “OFF.” We will not provide that same notice to UPS. UPS number crunchers will not be able to “count” on the Solidarity Policy OT/JA cost savings. Neither will the operation be able to count on us not reinstituting the OT/JA ban as is our contractual right for any given bid period.
We have reason to take pride in our over 2 year application of the current version of the IPA Solidarity Policy. That policy and your strong support accomplished the following:
1) A UPS planned furlough of up to 500 IPA members was arrested, reduced to 300, and finally stopped at 109.
2) In the face of continued pressure for cost savings, Company number crunchers found themselves unable to re-start the furlough.
3) Finally, the Company began recalling crews last December.
As of now, 42 IPA members have been offered recall to service. To date, 61 IPA members have not yet been offered the option to return and remain furloughed. Obviously, our work remains unfinished until every IPA member is offered the opportunity to return to work.
Success in this endeavor depends on you. Your solidarity with each other and support of the Executive Board in Bid Period 12-04 will be just as critical as always. Our strongest asset in dealing with UPS is moving together as a united group. We can demonstrate this unity to the Company just as effectively by following the recommendations of the leadership in turning “on” the pick-ups as well as remaining committed to turning them “off” if/when requested in the future.
Now is a time to reflect on our past success in navigating our way through an extraordinarily difficult period. Together, we have stepped up and sacrificed for the betterment of each other. Individually, we would be hopelessly outmatched. As a group, we continue to confound and surprise. Let’s make this next chapter in our solidarity as successful as the last.
As always, fly safe, be professional, and remain united.