Originally Posted by
Carl Spackler
I'm certain that the NDA is a Delta authored NDA and is governed by SEC regulations. With regard to an "MEC Confidential", that's something different and not germane to what we're talking about.
You might start about 5 pages back if you want the context. The discussion centers on the veracity of claims that C2012 added ~400M per year in value to pilots. I've said that number is to date unproved because neither the company nor the union has shown the math on how that was derived. Others argue that the number had to be accurate because our pilot board member would have cried foul if the company tried to give misleading costing numbers to the union. That's the cliffs version of why we're discussing this.
Well Carl, in an aggregate yes that is about the added cost per year to the DAL PWA. As it was explained to me, the added value was just over a billion in added cost to the PWA over three years. Day one bump was about 268 million dollars. 1% equates to about 22-23 million. Johnso was correct when he made that statement on added pilot costs. It was briefed in the road shows etc that this was the added cost of the PWA.
The "zero cost" was to the company from an investor perspective. DAL had a CAPEX expense for the MRO on the 50 seat jets, and approached the MEC about finding a way out of the CPA's with the 50 seat DCI lift and transferring the CAPEX costs for the MRO to the pilot PWA. I never saw the actual costing but this was the opportunity as explained from many Reps that were there, and the genesis of "a zero cost contract." It was not zero cost to our wallets. Like it, love it or hate it, C2012 did add pilot costs to the company.
You're making it sound like the briefings are done together. To my knowledge, the MEC committees and MEC do not get briefed with the Delta board members present who are also getting their briefing. Those briefings happen separately.
I did not intend to. Briefings are separate. We get briefed last. Hence the verbiage. The DAL Execs do brief us too.
And all of that different than the Delta board member NDA governing behavior as a Delta board member.
Carl
The NDA signed by members of the MEC and select committee members is not a "alpa NDA" but a corporate SEC NDA. I do not know what the DALPA Pilot Director signs, and if there is a secondary NDA for that. If so, its of no consequence to me. As I said, there are fiduciary responsibilities as a board member. I am guessing, but I assume that pilot costing will more than likely get discussed at a very high level by the BOD. Its a line item, and they look at all of it.
The DAL BOD likely acts and functions like many boards, and certain members are precluded on sitting in on certain briefings in committee. IE they can sit on certain BOD Committees. Generally the CEO is not on the finance review committee etc. I assume the same would go with an employee pilot director. That's also part of the fiduciary responsibility of a board of directors.
In the end, I will bet that DAL and DALPA do it right as it pertains to the pilot director. Costing for the Pilot Costs are generally a Flight Ops item. Executive Level gets involved, of course, but the BOD paints with a much broader brush. We are a 2.5 billion dollar a year expense, about what the CAPEX per annum is. Most boards elect a CEO they can trust and have him and his team present to the BOD, then they vote or approve the plan.