Originally Posted by
GetRealDude
There are a few key elements of leverage I would throw into the pot.
The biggest one is the A plan and B plan situation. The company is highly motivated to eradicate the A plan because of long term costs and liability. That's indusputible.
It's widely known that a few block reps dug their heels in on retaining the A plan for everyone including those not even on the property.
There are viable solutions that result in a win-win for the company and the pilots that will result in tremendous savings and added incentives. The company approached the union with these options and the union took no measures to truly study the options and extend those options to the pilots. It might have been done internally, behind the scenes, but I received ZERO official info from the MEC or NC.
We just got wound up based on rumors and the "Fear Train" of comments ... The company wants to can the A plan. Guess what? There are options that can make sense for us all!
The A plan is a diminishing commodity as it relates to COLA - comparing it to the 1999 implementation, it's now significantly less valuable and will continue to decline. The company WILL NOT under any circumstances increase the high five or any multipliers. Their liability makes it untenable.
Freezing the A plan based on years of service and a significantly increased B plan (with cash over cap) is a possibility. We need to see the numbers. A company buyout plan for the value of each pilot's A plan has some strong appeal. I'd rather have that money NOW (in installments) and put it to work.
This is real leverage whether the TA passes or not. The company will want to deal with this issue. If the TA passes, we work this as a separate issue as an LOA after extensive study, presentation, and voting. If the TA fails, we re-engage once the dust settles. The long term savings justifies additional pay increases IMO.
In the short term: there is a manning concern, retirements are looming, peak is around the corner, they have the money, surcharges are increased, UPS has a strike vote looming (posturing but it matters in public opinion), etc.
The union reps that blocked the study and release of retirement OPTIONS to the pilots prior to the end of negotiations failed us. The MEC and NC failed to see the wisdom of doing this. It's tough to say my negotiating committee and my union speaks for me when we were not properly represented with the options. Personally, a 6 year contract with all of the work rule concessionary givebacks is unattractive to me. Voting NO means we reject what we see. Simple as that. The big money is in retirement liability. The company will not ignore this.
Pure B.S. The cost of the pension today is no more than it was in 1989 in inflation adjusted dollars. No doubt the 1989 forward pension is less than the previous pension cost when the 25 yr pension yielded only 40% FAE BUT the benefit had a COLA. I suspect the pilot pension very overfunded because it is funded for pilots to retire at age 60 and the pension is no longer paying 50% FAE because of the $260,000 cap when it should be $420,000 in agreement with IRS limits. I see there is some wording about the normal retirement now being age 62 but will still have no reduction for an age 60 retirement. Looks like that is there to reduce funding requirements. At some point management will recover that excess funding and adding it to the FedEx bottom line while rewarding themselves with the huge bonus they claim they deserve. Suggest you read or listen to the audio book.
Retirement Heist - Pension Fraud Book - Ellen Schultz
I hate to break it to you but the company offers a very bad deal. Pilots are no more qualified to manage their pension money as professional money managers would be qualified to fly a B777 or MD11 around the world. Yes the B fund is nice to have in addition to the A plan, but it can never replace it.