Hub Meeting topics
Here are some of the topics that were discussed at the Hub Turn Meeting
Legacy Carriers
DW started the meeting with some information about a lot of the legacy carriers that are having serious financial problems in today's environment. He underscored that FedEx is doing better relatively to those carriers but we are not completely immune to what is going on around us. He commented on the business models of the legacies and our own airline and how the model price for Oil was around $85/ Barrell and how everyone is struggling to make the numbers work when the oil is so high. The more cash reserves the better off the airline and he highlighted some of the carriers that may not have much time left.
Age 60
DW also commented that the change to the law and the applicability of retro-activity was definately aggravating a situation with the seniority list regression/stagnation; but that the problem would have been there anyway due to the situation of our nations economy and declining profits. He saw the ruling as one of many factors that are now creating a "perfect storm" Something he has not seen in his 23 years here at FedEx. DW claims there are only about 100 guys that by hanging around are adding to the problem of the regression in seats and in the grand scheme of a pilot group of over 4500 that is not the main crux of the problem. A lot of this discussion was spurred by a member who wanted DW to address the perceptions that the junior guys at the company by going backwards in seat progression were financing the seat grab by the over 60 crowd to further fill their pocket before they are out of the door.
ALPA National structure Cutbacks
DW commented on how losing the pilots from US Airways caused ALPA National to reorganize their structure due to the loss of dues from those pilots and they have had to show some people the door. And in light that there maybe some other large ALPA carriers that may shutdown operations; that there will have to be additional restructuring to make sure ALPA national is the appropriate size to serve the membership.
Airplane retirements and Acquisitions
The -27 and -10 retirements are still going away as has been talked about for years. And the airplane delivery schedule has not changed either. So as they iron out the conversion line for the -57 things should be better. Also as it stands now we are still looking to add the 777 to the fleet next year (No discussion of 777 payrates).
Seniority List reorganization/ Purple Nuggets/ Furloughs
The word from the company is that they wanted to have about 200 extra bodies in the Wide Airplanes to cover the initial bid for the 777. This would allow all of those 200 crew members to go to training and not affect the ability of the airline to staff the wide airplanes. Right now, we have more than the desired 200 people so that is what is driving the upcoming excess of the Wide airplanes. This is being done to reorganize the seniority list look more like a "normal progression" would have been. And by normal meaning, everyone starts in the back of the -27 and moves up. DW says that the Purple Nugget program and hiring people directly into the -27 created some problems that need to be fixed now. He mentioned many times that the company is still making money and that the company did not want to furlough but if the company has to furlough they have to have the seniority list fixed. And the excess bids are a part of that process.
VEBA vs HRA
DW explained the differences between VEBA and the HRA.
VEBA--- A plan that all of the pilots are putting money in that all pilots will have access to help differ the cost of medical insurance after the age of 65 when everyones primary healthcare converts to Medi-Care.
HRA--- A one time payment for members that were 53 at the date of the last contract signing time and that covers healthcare costs from the period of time from 60-65.
Now as I sit here and type this, I realize that there are probably many things I'm leaving out. But I was paying close attention to what was being said. If you have any questions about things that I did not mention or topics that you thought would have been discussed, please ask and I'll let you know what I remember. And of course anyone else who was at the meeting please chime in on things I didn't mention.
JP