Thread: LTD Price Drop
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Old 01-19-2018 | 07:59 PM
  #40  
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From: B777 CA
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Originally Posted by Probe

LTD is a wonderful insurance backstop, but it should not be such a sweetheart deal that it incentivizes its' use. And most of us would balk at the premium if they made it that attractive.
Sweethart deal? In 1998 CAL negotiated a contract with LTD at $7500 per month cap tax free benefit. In that contract widebody 12 yr. CA rate was approximately $190. 737 12 yr CA was approximately $165.

CAL was negotiating a contract for 2 years prior to the merger and a contractual objective was to increase the LTD cap and obtain B plan company contributions for those on LTD. The merger happened and the CAL section six negotiations like UAL’s ended.

The JCBA yielded a $500 monthly increase in LTD benefit to $8000 a month maximum cap. When asked of the JCBA negotiators why such a minmual increase to our LTD benefit? The response, due to bringing LUAL up to the LCAL type of LTD plan (as discussed earlier in this thread LUAL LTD was terrible post bankruptcy contract) all we could negotiate was the $8000 monthly max cap.

A 5 year FO shouldn’t be able to reach the max LTD benefit. This reflects a LTD benefit that severely trails pay rate increases.

That being said. Why should we as UAL pilots have significantly lower LTD benefits as compared to DAL and SWA? How is this any different from fixing reserve, training pay, vacation pay etc. all areas needing improvement in our next contract? Lastly LTD benefits shouldn’t be surpressed due to potiential pilot abuse. No one should allowed to be able to stay on LTD if there is any feasible way to obtain a FAA medical. That happened many times in the CAL LTD plan. Pilots were told by the LTD committee your eligible to regain your medical get it back or your cut off LTD.
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