Originally Posted by Timbo

3.B.6 was a clause in our contract that basically said, on any 'new' equipment, for which no pay rates existed, the pilots would fly it for 6mo (or was it 9 mo?) while they negotiated a pay rate for it.

If at the end of that time, no pay rate had been established, the aircraft would be parked until a pay rate could be agreed upon.

Our CEO at that time was Leo Mullin, from McKinsey Associates, king of all out sourcing. Leo said he would sell them (we only had two on property, but many more coming) and cancel the orders for more. Our then MEC called his bluff and we settled for a higher pay rate. ($265 in 1998 I believe).

The answer to both of your follow on questions is the same, "Labor Risk".

Too bad it's off the table now!

Oh, and we gave 3.B.6 away in a subsequent contract...sigh. We could have used it to get much higher pay rates on the 717's.