Originally Posted by
FDXLAG
Your assumption that the 18% B fund does not hold a candle to what we have now is only valid if the cap gets raised. If the cap does not get raised then 15 or 20 years down the road when pay tops out at 450K per year that A fund will look pretty chintzy and guys will be wishing they had that 18% tucked away somewhere. As the high 5 average creeps above 260K you are no longer effectively getting 2% per year, so you will effectively have the UPS A Fund without the UPS B Fund.
Now it is your turn to say well we just wont sign a deal unless we get a raise in the cap. Here is how I think it played out.
FDX went to the mediator and said we want PBS and they wont talk to us. The mediator says ALPA why wont you talk about PBS. ALPA says we like it the way it is. The mediator says suck it up FedEx.
Next FDX went to the mediator and said we want New hires off the A Fund and ALPA wont talk to us. The mediator says ALPA why wont you talk about the A Fund. ALPA says we like it the way it is no reason to change. The mediator says suck it up FedEx.
Next ALPA goes to the mediator and says we want the A Fund cap raised and FedEx wont talk to us. The mediator says FedEx why wont you talk about the A Fund cap. FedEx says says we like it the way it is no reason to change. The mediator says suck it up ALPA.
My math may be way off, and i'm sure someone will correct me if i'm wrong...but, when I crunch my numbers I come up with ~$370,000 average earnings required at 18% b fund and a 7% return each year to equal a 2%A / 9%B fund with the same 7% return using current pay rates. Just a wag though. I'd much rather keep what we have. BUT, the fact that the cap wasn't raised is huge in my opinion, and is concerning.
I do think that the conversation you listed may have been exactly how it went down.