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Old 08-01-2007, 06:35 AM
  #15  
HerkyBird
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Joined APC: Sep 2006
Posts: 118
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<< ... the CBA-which has no provisions for any housing allowance, education allowance, tax-gross-up ... >>

WHOA, WHOA, WHOA, NELLIE !!! Let's get one thing perfectly clear here ... THERE IS NO TAX GROSS-UP IN THE LOA. This is a particular bone of contention, as a matter of fact. Where on earth did you get that idea? Or do you misunderstand the meaning of that term? "Tax gross-up" means that if the host country taxes an employee, say 15% (call it $15,000 for this example), the employer will raise that employee's gross pay by a like amount, so it is the employer who actually pays it, and the employee does not feel the effect of it. In fact, the employer usually raised the gross pay by a bit more, to cover the IRS's share of that $15,000 gross-up (the IRS will tax you on the amount of gross-up provided by your employer). If you think FedEx is going to raise the pay of any pilot bidding CDG/HKG by an amount to cover the foreign taxes, you have been out to lunch. You need to seriously rethink your backing of this LOA, because obviously, you do not see the issues clearly.
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