The following essay comes from one of the most respected Instructors ever minted at Federal Express. Like E.F. Hutton, when Captain V talks, people listen. Please give your attention:
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A Perspective and Opinion of the Current TA
from a Senior Wideboby Captain Approaching Retirement
To the reader, know this opinion paper comes from the perspective of thirty-two years of service, over 20 of which have been as a wide body Captain. This is an important overlook as I have been paying the highest level of dues to our union over a long period of time. I mention this because I expect a return on this "investment". In my case, I have been a union member/supporter at all times.
This TA is both appalling and an insult to those in the twilight of their careers after funding the coffers of FedEx ALPA. The MEC appears to have forgotten those whom they serve by constantly re-manipulating the so-called "pillars" of negotiable desires polled from the constituency and that which was promised by the former MEC Chair. There is "nothing" in this TA that values the financial support of the senior ranks thus insulting their multi-decade contributions. Thank you to "the four" who dissented!
Specifically:
There is no change to the A-plan. This is an incredible slap in the face as it was the most important "pillar" to be captured in negotiations. The increase to the B-plan is worthless to those who will retire in the next 18 to 36 months. (No time to accrue/compound). It would appear that the SLB and SLB Plus are attempts to mitigate the absence of A-plan changes via a buy-off. It is abhorrently flawed. Specifically the clause tied to one's DSA; because it is the lesser of the (3) provisions which gives a pilot with a zero bank NOTHING! So hypothetically a pilot who has been fighting cancer for 2 years has no retirement bonus other than maybe the PLUS, IF he qualifies. This is inexcusable. I cannot imagine anyone developing or proposing such a thing. This in itself nets a no vote regardless of what is contained in the rest of the TA. Those 500+ eligible to retire have no time left to truly benefit from the monetary increases proposed. (Which are woefully low).
Supposedly, at the end of negotiations for the existing CBA, any A-plan modifications were deferred to this round of negotiations. This is a six-year deal! It is not likely to be re-negotiated for another (8) when history repeats itself! For those of a younger demographic, your retirement future needs to be secured now. Retirement is your family's security. Any talk about how defined benefit plans are a thing of the past are mere rubbish. We just happen to have one and it needs to stay and provide meaningful vehicles to keep up with cost of living increases, etc.
IF the SLB and SLB Plus elements of the TA are truly intended as a retirement buyout from the general accounting funds of FedEx instead of overloading the overall pension fund via a cap increase, COLA, increase in multiplier, etc., it would have to be considerably more. Consider that the average male will live to 85, 20 years beyond mandatory retirement age. In very rough numbers, a $285,000 cap would net an additional $12,000 per year retirement income, a 10% increase. So, if the company pension fund can't support that draw, any buyout would have to provide an equivalent plain and simple. In the example provided, it would have to be $240,000 versus the $150,000 proposed in the TA. (Note the $150,000 is the max anyone can draw). Remove the highly discriminatory and insulting tie to the DSA. Sure, keep the retirement date guarantee clause but with one more modification. If the regulatory retirement age changes again after a pilot has guaranteed a date, he can withdraw and gets one more chance should he choose to stay employed. The company can still plan its manning around that. This proposal is only $90,000 more per pilot retiring. This is $1M per 4 pilots retiring over the 6-year term, a very reasonable figure. Without a doubt, while senior pilots are the most experienced and safe, they can be less productive due to higher susceptibility to injury/illness and maximizing of (5) weeks of vacation. If a retirement "buyout" of this reasonable magnitude is accepted, the company gains more productive and less expensive senior pilots and many more pilots will move up the list. And one more point: we no longer foster flying sick or feeble (foregoing corrective surgeries) because retirement bonuses are tied to the DSA.
Don't be timid about voting no. Take a look at what's been going around you. Unions at other airlines have recently turned down TAs. Some have already renegotiated. The post-no process needs to be lean and fast. A short poll, main points identified and mediated negotiations resumed and concluded all within 60 days. UPS has called for a strike vote. Typically, Union unrest at a sister cargo company nets additional business. We are undermanned with peak looming. We can close a good deal before Thanksgiving, one worthy of our dedicated service!
I joined our union for two main reasons: I don't believe in a free ride and I wish to have a voice. I've never been a militant member of the constituency and never will be. But I am a realist and this incredibly underwhelming TA which has taken a criminal amount of time to finish is a stunning insult to the support I have given to both the ALPA and FedEx. We need and deserve better.
Captain Daniel T. Ventre
B777
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