Freightbird

At the risk of airing dirty laundry, I am hoping for critical review:

NOTE: Proposal made with
the assumption that Hong
Kong government authorities
approve a pilot FDA.
LETTER OF AGREEMENT
between
FEDERAL EXPRESS CORPORATION
and
THE AIR LINE PILOTS
in the service of
FEDERAL EXPRESS CORPORATION
as represented by
THE AIR LINE PILOTS ASSOCIATION, INTERNATIONAL
FOREIGN DUTY ASSIGNMENTS IN HONG KONG AND PARIS
This Letter of Agreement is made and entered into in accordance with the provisions of
Title II of the Railway Labor Act, as amended, by and between FEDERAL EXPRESS
CORPORATION (hereinafter referred to as the “Company”) and the pilots in the service
of FEDERAL EXPRESS CORPORATION, as represented by the AIR LINE PILOTS
ASSOCATION, INTERNATIONAL (hereinafter referred to as the “Association”).
WHEREAS, the Company has announced its intention to open foreign duty assignments
(FDAs) in Hong Kong, China and Paris, France, and
WHEREAS, the Company and the Association have studied certain details of basing
pilots in Hong Kong (HKG) and Paris (CDG), and have concluded that contractual
provisions other than those contained in the basic Agreement are advisable in order to
provide for the smooth and orderly establishment of those FDAs.
NOW, THEREFORE, the parties agree as follows:
A. Permanent Vacancies in CDG and HKG
Permanent vacancies for FDAs in CDG and HKG shall be posted, bid upon and
awarded as provided in Section 24 with the following modifications:
1. The 18 month bidding restriction set forth in Section 24.E.1.b. shall be waived
with respect to pilots bidding for permanent vacancies in CDG or HKG.
2. In order to be awarded a permanent vacancy in CDG or HKG, a pilot must
agree to sign a CDG/HKG FDA Agreement, agreed upon by the parties
(Attachment A), which provides, in part, that the pilot’s terms and conditions
of employment are governed by the Collective Bargaining Agreement (CBA)
and applicable laws of the United States, and not by the laws of the country
where the FDA is located.
a. In order to bid on a CDG/HKG vacancy, a pilot must first indicate, via
VIPS, his commitment to sign the agreement.
b. Pilots awarded vacancies at CDG or HKG will be provided with paper
copies of the agreement and shall sign and return such signed copies to
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the System Chief Pilot prior to the start of any training for the FDA
vacancy, or, if no training is required, then prior to the distribution of any
benefits stemming from the pilot’s FDA vacancy award (e.g., seed
money).
c. Absent extenuating circumstances, if a pilot later fails or refuses to sign
the agreement in the required time frame, he shall be frozen in his current
crew position for two years, as if his failure to sign the agreement had
been a down/lateral bid covered by Section 24.E.1.c. Such freeze shall
not result in any passover pay.
3. Visas
a. If, having been awarded a permanent vacancy in CDG or HKG, a pilot
is unable to secure or maintain any required visa, he shall contact his
flight manager immediately and shall be released from his FDA
vacancy award.
b. If a pilot’s spouse or child is unable to secure or maintain the required
visas, the pilot may elect to be released from his FDA obligation by
submitting an appropriate explanation to the System Chief Pilot. The
timing of the release shall be determined by the System Chief Pilot,
after consultation with the pilot, and shall balance the pilot’s desires
with the Company’s operational requirements.
c. The crew position of a pilot who was released from his FDA vacancy
award as described in this paragraph shall be determined as provided
in Section 13.A.6.b.ii. as if the pilot had been on a leave of absence
when the posting on which he was awarded the FDA vacancy closed.
d. The pilot’s inability to secure or maintain required visas shall not, by
itself, constitute grounds for penalty or discipline.
B. Package Options for CDG and HKG
Except as provided in paragraph I. below, within 15 days after being awarded a
permanent vacancy in CDG or HKG, a pilot shall choose from either the “existing
CBA option” or the “enhanced option” set forth in paragraphs B.1. and B.2.,
respectively.
1. Existing CBA Option (3 year commitment)
Pilots who choose the existing CBA option shall be entitled to the following:
a. Relocation benefits as described in Section 6 of the basic Agreement,
except that Section 6.E.1.e. (FDA Bonus) shall be inapplicable.
b. Tax equalization as provided in paragraph C. of this Letter of Agreement
(LOA).
2. Enhanced Option (2 year commitment)
Pilots selecting the enhanced option shall be entitled to the following, in lieu
of the benefits available under Section 6 of the basic Agreement:
a. Seed Money. Pilots who select the enhanced option shall be entitled to a
one time payment of $10,000. This shall be paid upon a pilot’s activation
into the CDG/HKG crew position.
b. Four Year Service Credit. If a pilot completes 48 months as an active
pilot in the same FDA, he shall receive an additional $5,000. This
payment shall be made within 30 days after the pilot completes his 48th
month as an active pilot in the FDA. If a pilot upgrades within the FDA,
time spent in ITU training will not be counted toward the 48 months.
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c. Storage. A pilot shall be entitled to expenses associated with the storage
of his household goods in the location of his permanent residence
immediately preceding his assignment to CDG/HKG. Reimbursement
shall not exceed $4,000 per year and the storage must be at a
commercial storage provider.
d. Housing Allowance
i. Rental Allowance. Pilots shall be entitled to a rental allowance of up
to $2,700 per month to offset the cost of rental housing in the FDA
location. Money paid to a landlord for water/utilities, internet/cable,
parking, maintenance, etc., may be included in the rental allowance.
ii. Home Ownership Allowance. Pilots who choose to own, rather than
rent their housing, shall be entitled to a monthly allowance of up to
$1,300.
iii. To be eligible for this allowance, pilots must relocate to the FDA and
occupy the housing for which an allowance is being paid. Standards
for determining whether a pilot has relocated his permanent residence
under this paragraph shall be the same as for full relocations under
Section 6 of the basic Agreement. The housing must be located
within 100 nautical miles of the base airport. A larger radius may be
approved on a case by case basis by the System Chief Pilot, if the
proposed residence affords access to the hub airport that is at least
as expeditious and reliable as comparable residences inside the 100
nm radius.
iv. The rental/housing allowance shall be provided for each month during
which the pilot is assigned to the FDA. On the first and last month of
a pilot’s assignment to the FDA, if the pilot is assigned to the FDA for
fewer than 15 days in that month(s), his rental/housing allowance for
that month(s) will be prorated. The pilot must provide adequate
substantiation including, but not limited to, a lease agreement,
canceled checks or receipts, to his flight manager.
e. Tax equalization as provided in paragraph C. of this LOA.
f. Airline Tickets. The pilot shall be entitled to one set of round-trip business
class tickets to position him and his dependents from his permanent
residence to the FDA at the beginning of his assignment and from the
FDA to his next base at the conclusion of his assignment. For each year
a pilot completes in the FDA location as an active pilot after the end of his
two year commitment, the Company shall provide one set of coach class
round-trip tickets for the pilot and his dependents living with him at the
FDA back to the location of his permanent residence (or a destination of
similar cost).
g. Commitment Period
i. A pilot must complete two years as an active pilot in the FDA, unless
released from his obligation due to extenuating circumstances by the
Vice President, Flight Operations.
ii. If a pilot fails to complete his commitment period without a release
from the V.P., he shall be obligated to repay his seed money and any
money paid by the Company for storage.
iii. If a pilot changes or attempts to change his crew status within his FDA
(e.g., upgrades from F/O/CDG to CAP/CDG), his original commitment
period shall be extended by twelve months plus the time spent in
training.