Originally Posted by
kronan
Yep, that's what we all focused on going into 2015. That FedEx can afford it. Q1 of 6 years ago FedEx's operating income was 987M.
FedEx can easily afford to up the Income replacement ratio for our Intl Capts, that's what my Union told me.
6 years ago FedEx made a direct dealing attempt. A hard freeze to the A plan for a 16.5% Cash over Cap B plan.
Not a shock to me since every private company has eliminated their Pension obligations if they could.
Just laughed at that offer though, because FedEx can easily afford to improve my Pension. My MEC Chairman and NC Chairman told me so.
Then, in the midst of highly profitable years, my NC said they just couldn't get the company to budge on improving my Pension. That it was a line in the sand.
After ratification, my Union sought the actuarial data from FedEx. And finally obtained it after signing a non-disclosure with the company. My Union went outside of ALPA for a hired gun to evaluate FedEx managements claim that improving our Pensions was excessively expensive due to changes in funding, administrative, and indirect costs due to the Pension Protection Act of 2006. And, both consulting groups, with a fiduciary duty to FedEx ALPA...confirmed those costs.
So, you can either believe that. Or rationalize that our hired guns just told our Union what we wanted to hear. You can believe people whose sole business is evaluating finances and pensions. Or you can believe what a Pilot posts on the internet, about how easy it would be for FedEx to improve our Pension. (Certainly doesn't address FedEx's willingness to do so)
The one thing that I know to be absolutely true, is every action FedEx has taken for the past 6 years shows me they want to be out of the Pension business altogether.
To the extent of paying MetLife 210 Million to transfer Pension obligations for 41,000 retirees.
To the extent of giving vested former employees a lump sum, to the extent of $1.3B to 18,300 takers.
So Yes, FedEx is profitable-and can support ponying up a Filet Mignon for all of us.
Equally true in 2015, they just don't want to sign that blank check. Not quite sure why their approach will be different, this time.
But,
I'm just fine working under our current CBA until they do. Might take awhile.
And, don't forget, regardless of what the TA is...we have to show FedEx who's the boss by rejecting it.
Hired guns? Cheiron and Blitzstein? Dumb and dumber?
I love that term, “line in the sand”. What if a small pay raise is a “line in the sand”? Why couldn’t we have our own line in the sand? We were way undermanned and going into peak. And we fold like a cheap suit.
They can afford to up our pension, but they don’t want to. It’s our job to help them want to. I get it, you don’t have the stomach to fight...
Oh, I mentioned the union mantra, the company wants out of “the pension business”. I see you parroted this once again. They also want in the PBS business, should we go along with that too?