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Old 05-09-2016, 05:06 PM
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ClassActionALPA
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Joined APC: May 2016
Posts: 62
Default What exactly will we gain by suing?

Question 1: What exactly will we gain by suing?

Answer: Accountability and Damages for ALPA’s breaches of its Duty of Fair Representation. The lawsuit is demanding a jury trial to gain accountability and damages for the factual allegations of:

1) Pay rates - ALPA misrepresented that we needed only an 8% pay rate raise on November 2, 2015 to equal a 3% slope from our last pay raise in March 2012, and that we were receiving 10%. When
in fact, an 11.46% pay raise was required to equal the 3% slope. The November 2, 2015 pay rate was the foundation for the follow-on pay raises. ALPA made this representation despite having actual knowledge of the shortfall in the pay rate scale prior to any representation. These damages are calculated at approximately $92 million.

2) Signing Bonus Shortfall - The TA Signing Bonus fell short of the same 3% slope, and also fell short of the “5% year-over-year” recapture stated by ALPA. ALPA made this representation despite
having actual knowledge of the shortfall in the signing bonus prior to any representation. These damages are calculated at approximately $13 million.

3) Retirement - ALPA consistently stated the fixes to retirement were “affordable” and “reasonable improvements” during the almost 5 years of negotiations. But in the very end game, just a few days before the TA was first presented to the MEC, the Company disclosed data concerning liabilities. The Negotiating Committee then reversed course about the affordability of the retirement fixes.

- Upon information and belief, the Negotiating Committee greatly exaggerated the liabilities provided by FedEx in order to get the MEC and the FedEx pilots as a whole to agree to the drastically lowered
retirement benefits, including no improvement in A Plan benefits, and pass the Tentative Agreement. The exact amount of the damages relating to retirement are unknown at this time.

4) Sick Leave Buy Back (SLB) - ALPA stated the maximum $110,000 Sick Leave Buy Back would be available to “any pilot on property… if they retire at age 60 or later” and that all FedEx pilots would
be able to “max out every component” of the Sick Leave Buyback, when in reality, only Wide Body Captains (40% of the crew force) will ever be able to reach the maximum. Retiring Narrow Body First
Officers will never receive any SLB money. The exact amount of damages relating to the SLB are unknown at this time.

5) Mismanagement of Your Dues - FedEx ALPA spent over $14.5 million dollars of our dues over the past 5 years of negotiations.

- In June to July 2015, the MEC realized we were down to only $1.2 million dollars remaining in our reserves to continue negotiations.

- In the very end game, the MEC “scrambled” to find out what was available from ALPA National’s Major Contingency Fund (MCF), known as ALPA’s “war chest”. Upon information and believe, when
FedEx ALPA asked for a $5 million dollar loan and access to the “war chest” to continue our negotiations, ALPA National required that we disclose our “books” prior to the loan being approved. ALPA
National does not approve our FedEx ALPA budgets.

- Upon information and believe, ALPA had discovered $1 million in missing monies, and we withdrew our request for a loan from the MCF.

- At the end of negotiations, our reserves were down to $260,000.

6) ALPA intentionally leaked the MEC Only Document to the FedEx pilots. This was a successful yet bad faith attempt to encourage the FedEx pilots to pressure their MEC voting members to send
the Tentative Agreement to a vote.

7) ALPA intentionally leaked the National Mediation Board’s confidential “self help” comment to the FedEx Pilots while the Tentative Agreement was up for ratification. This was a bad-faith
attempt to encourage ratification.

8) ALPA intentionally or recklessly refused to address the shortfalls in the Tentative Agreement on multiple occasions. ALPA was repeatedly informed of the shortfalls yet did nothing, despite
ALPA’s stated intent to get the FedEx pilots “accurate information.”

9) ALPA intentionally hushed dissenters of the new Tentative Agreement in a bad-faith attempt to get it ratified by refusing to let MEC members present dissenting opinions at road shows and not
posting any dissenting opinions of the Tentative Agreement on its website until the voting deadline was less than a month away.

10) ALPA intentionally or recklessly posted the total value gained by the Tentative Agreement as $200 million more in total and $15,000 more per pilot than it actually was. This was a bad-faith misrepresentation designed to encourage ratification.

The list of ALPA’s breaches of its Duty of Fair Representation are on pages 30-31 of the complaint.

Last edited by ClassActionALPA; 05-09-2016 at 05:44 PM. Reason: Format
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