True Headings 15-08; TA Bullet Points. The general tone, as previously mentioned, is hyperbolic throughout; here’s some notable haze and smoke:
· Medical. Also partially addressed in an earlier section.
o “Most pilots will never have to verify any sick leave with a doctor’s note”. Sure, but if 30% will, that’s an approximate not insignificant 4000 pilots. Many issues which affect far less pilots are still big priorities.
o “If you’re out 20 days for surgery, hospitalization, and fractured bones, the time is not counted… towards the verifications thresholds”. 21 days or greater, not 20.
o “Maintains our industry leading sick time and policies”. Certainly a matter of opinion and previous experience. The fact is, with our current system and a long term sick event, our PWA provides for;
§ A 10-15% pay cut (based upon the temporary disability benefit and how the DPMA benefit is calculated).
§ Pilots on disability are no longer considered an active employee and all that comes with that.
§ The Company responsibility for anything more that 50% (disability benefit) pay terminates after a maximum of 3-4 months, while other comparable carriers’ pilots receive full pay and maintain employee status for much longer with a bank system combined with short term and long term disability.
o “FAA Leave”. A good deal for those with special issuance medical issues, but much more narrowly useful than highlighted.
o “Mental health disability now unlimited”. Except if there’s more than a 50% increase in usage during the term of the contract, in which case the Co can set up a schedule to limit it again or eliminate it, including for existing cases.
o “Establishes a disability bank”. Which can’t be used until after exhaustion of your DPMA benefit. Only accrues at 50% value for annual unused sick hours < 80, then charged at two hours for every one used. The actual benefit is only 15 minutes out of every hour of sick leave <80 hrs. annually not used.
· OE / TOE Rotation Removal.
o “Designated OE time still counts towards staffing formula – no positions will be lost due to this change”. Although this accounts for the single largest staffing reduction in the costing (of course, the actual values are confidential). Since the staffing formula uses a 12-month rolling reference, and includes components such as GSs, reserve usage, etc. that will be affected, the staffing won’t be affected initially, but will eventually.
o (Under) states the small number of pilots affected, both by withholding rotations from FO bidding and the resultant extra reserves. Again, even if the number is relatively small, it is so only at a point in time; it still affects all passing through the affected seniority ranges.
o “Is this a concession? It was key to unlocking gains realized in the rest of the TA”. The limited gains being the most significant problem with this TA.
· Compensation.
o “8% July 1, 6% Jan 1, 2016 – compounded to 14.48% first six months with no change in profit sharing”. Simply isn’t true! The profit sharing formula change (worth 5.74% of W2) is effective concurrent with the Jan 1, 2016 raise. This is a fact, regardless of when the actual reduced PS is paid out.
o “Raise includes change to PS trigger which offsets 5.74% of present wages at assumed PTIX of $6B – the offset is less if PTIX less than $6B”. As discussed earlier, at the Co’s current pre-tax income levels, PTIX is $1B to $1.5B MORE than the publicly reported pre-tax income that most are familiar with. Even at 2014’s $4.5B pre-tax income, the PTIX was already $5.8B, with the projections for this year and beyond to be well above the $5B pre-tax income / $6.5B PTIX range. See chart below for current formula PS W2 / PTIX estimate.
o “Puts pre-merger Delta pilots in line with 1991 wages adjusted for inflation”. But not above 1985 wages adjusted for inflation. I guess it just matters that you select the statistic parameter most favorable to your argument. Both are after deregulation.
o “Puts pre-merger NWA pilots ahead of 1991 wages adjusted for inflation”. But we’re all Delta pilots now, right?
o “Wages 3.5% above American / 15% above United before PS”. But including the PS trade. Without the PS trade the rates never reach the American rates.
o “In 2018, the rates are the highest rates any airline on the planet has paid anyone on all equipment”. Wow, why not just go all out and say the highest rates in the galaxy…. Or even the universe. The data available to prove those are just as readily available as the planetary data for 2018…. Or really even now….. And of course not even considering past inflation adjusted rates. Definitely wins the breathless hyperbole award.
· SCOPE.
o “Tightens AF/KL/AZ JV compliance measurement from 3 years to 1 year and improves tolerance from 1.5% to 1%”. After the metric is changed to block hours and reduced to a level with an additional tolerance that’s at least 2.5% below the current level (which has been below the existing production balance EASK range for the past 4 years).
o Ties SCOPE relief to the purchase of new mainline aircraft that the Co would have to decide whether their business plan supported anyway.
· TA Rejection. Obviously there are significant differences of opinion on this one, we’ve covered our view earlier and in previous updates, but a couple from this TH are worth addressing……
o “No examples at all of management increasing its offer with any group anywhere once the last best offer given (and they’ve said this is it).” Really? What else could they possibly say? “Here’s our final offer but we might have more if you ask nicely”? There’s not any examples with any other employee groups because there’s only really one large unionized group and we’ve never said “NO” (as a group).
o “Any future negotiations faces the same set of priorities on their part and the same hurdles on ours”. What about our priorities and their hurdles? There are still things, as we’ve discussed, that they need from a deal too (productivity, SCOPE, profit sharing reductions ultimately for all employees, and of course sick – and its effects on productivity, to name the main items).