Slot Denial Pay
It is imperative to understand the new System Bid procedures to understand Slot Denial Pay (SDP) (24.E). I believe Slot Denial Pay is a weakness of our TA and is less valuable than Passover Pay. Although exploring a bid for training system was an honorable effort by the Negotiating Committee, the TA would be stronger, in my opinion, if they hadn’t created this new mechanism. As I explained in my prior article, I believe that the process and timeline bargained for the training bid leaves most with less certainty of when they will start training and therefore less quality of life for most. The timeline for the training bid will provide the pilot holding a training slot with their individual training date prior to the opening of the monthly bid, which is greater than the 7 days required today. But most others will have no idea when their own training date could occur because they don’t know which slot they will successfully bid in the future. This is exacerbated by large bids and not limited in this agreement. Unfortunately, along with bidding for training comes the concept of Slot Denial Pay.

A pilot qualifies for Slot Denial Pay by being denied a training slot award (24.E.1). Unlike Passover Pay, Slot Denial Pay is not a change in the pay rate at which all current activity is paid. It is a set dollar amount for denial of a training slot as shown in a chart (24.E.7 and 8). The use of a charted value doesn't capture the dollars lost for all pilots. Passover Pay captures all pay activity. Slot Denial Pay only provides the dollar amount shown. Importantly, Slot Denial Pay is paid in the month denied the training slot and potentially future months (through the month the pilot starts training 24.E.3) while Passover Pay occurs only upon the junior pilot’s activation. Perhaps this caveat makes it more appealing to some. However, Slot Denial Pay is discontinued if the pilot does not bid on a future training slot that his seniority could hold.

Unlike Passover Pay, SDP has only one eligible pilot eligible for continuous SDP (24.E.6). A denied training slot may also pay one time for one other pilot denied a training slot but given a training slot in the same bid period (24.E.2 and 6). Having SDP payable on a one for one is certainly not as good as a deal as Passover Pay for the aggregate group. Currently, the activation of a junior pilot can trigger Passover Pay for all pilots trained out of seniority order into a given base and seat position if that junior pilot holds the same crew position from the same or subsequent posting and the junior pilot’s activation delays the training and activation of the senior pilot.

Please review the charts in 24.E.7 and 8. Importantly, any fair consideration will also consider the note (which I originally missed—and don't want others to as well) below the chart in 24.E.8. This states that the chart values increase with pay rate increases beginning with the first hourly rate increase beyond DOS other than "Lateral or Up," or “Singles." In other words, the rates rise 3 percent at DOS plus one year and so on. Therefore, the charted values will be 3 percent higher. For the values that do not increase with pay, those will decrease in real value over time and may or may not be bargained in future agreements.

These amounts do not adequately compensate a pilot for a slot denial in some circumstances. (There are also circumstances where an individual pilot will do better depending on their BLG and the length of the SDP, but as mentioned above is one for one and Passover Pay is one for all.) SDP captures 77.91 hours per bid month or 934 hours annually. It won’t capture earnings like vacation buy back or sick contribution account. For those receiving regulated age SDP, it won't allow for the higher pay rate in the computation of DSA buy back (24.F.4.B). If the 767 LOA could be constructed so that some 757 pilots are paid at the wide body rate for all activity in certain months (767LOA C.2.b), how can we agree that pilots having their seniority violated in bidding for training aren’t entitled to the same?

Finally, consider the pilot denied a training slot and receiving SDP. The only way to maintain SDP is to continue bidding for future training slots. This defeats the entire purpose of bid for training as I understand it. Supposedly, one would want to control the timing of when they were in a training cycle. While you are not going to be forced to bid for future slots, the financial make up for being denied the opportunity to go to training when you bid will be lost.

Please take the opportunity to review Section 24 of the TA on your own. I have shared my opinion. As you cast your ballot for the entire agreement, I hope this has been helpful for your consideration. Please review the webcasts and TA Q&A for more information.
DC