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Negotiating Update 11-01Friday, January 28, 2011 2:46 PM
From: "[email protected]" <[email protected]>View contact details
To: "fdxmec-fastread" <[email protected]>
ALPA: The Pilots Union




Negotiating Update 11-01
January 28, 2011

This is an important update. Please take the time to read it thoroughly. There will be more information forthcoming in the ensuing days.

Admittedly, you have not heard from us in recent weeks. That is not to be construed as a sign of inactivity. In fact, the opposite is true. Starting in December and continuing through yesterday, we engaged management in a very innovative and unique endeavor in attempt to address the needs of our members. We were not sure if our concept would work and did not want to whipsaw you or create distractions while you once again met and exceeded all of the challenges of a very busy peak season. Our concept took hold with management and transitioned into comprehensive, focused collective bargaining. Late yesterday afternoon, our committee reached a Tentative Agreement with the Company on a new Collective Bargaining Agreement.

Every set of contract negotiations is defined by the context in which they occur. The circumstances that mold the bargaining may be external or internal or a combination thereof. Ours were no different. We started bargaining early in August not too long after one of the most severe economic downturns in recent history. Obviously, our economy has still not yet fully recovered. However, our company weathered the downturn better than most. In fact, the company has positioned itself well for future growth as evidenced by the acquisition of new 757s/777s and the recommencement of pilot hiring. Meanwhile, we prepared for negotiations by narrowing our focus to gains of importance and defense of the sacrosanct with a mind to achieving a new Agreement in a respectable timeframe.

Not too long after we opened bargaining, the FAA issued a Notice for Proposed Rule Making (NPRM) for Flight Time/ Duty Time limits. Unlike past efforts to address flight duty time, the FAA was required by law to establish new FARs by August 1st 2011. The NPRM significantly reshaped the bargaining environment for management. From our perspective, the NPRM interjected frustrating uncertainty at a time when the bargaining environment seemed fairly positive. We considered bargaining work rules despite the prospect of new FARs. This concept conflicted with our current arrangement where the FARs represent the floor with our Agreement operating at a much higher level. It also required a willing bargaining partner.

For management, the NPRM represents a paradigm shift of such proportion that, as an entity, they could not get past this obstacle when it came to bargaining our work rules and scheduling sections (4, 12 & 25). It should be noted that it is not so much about the rules themselves as it is the operational, economic and staffing ramifications. For those interested, this URL is the company’s comments to the NPRM (FedEx Express NPRM comments).

This presented a significant challenge as it takes two parties to negotiate meaningfully. In November, the Company stated that they would soon rapidly start running out of significant items on which they could engage. Whether we believed them or not soon became irrelevant.

Another dynamic that had been running in the background was the Company’s longstanding desire to open a European Foreign Domicile Assignment (FDA) and augment the HKG FDA with MD-11s. As mentioned in updates this past fall, we engaged the company successfully on a new FDA arrangement. The final disposition of the FDA arrangement was a different matter. As much as we were pleased with the FDA arrangement and thought it worthy of your consideration, we were in RLA Section Six bargaining. The Company wanted it in place so they could put out a significant Posting. At the same time, they were telling us that they could not deal with the other broader contract issues. That was a dichotomy that we could not reconcile. In late fall, we told management that the FDA LOA was on hold until we could find a way to address the needs of every FedEx pilot.

This led to our theoretical concept mentioned earlier. We initially broached the idea of an agreement that combined our outstanding LOAs (some completed as far back as 2008), the recently Tentatively Agreed (TA’ed) CBA Sections (totaling 12), some grievance settlements of broad significance, ASAP and FOQA programs and, of course, meaningful economic improvement. After thinking about it for a while, the company agreed to more specific discussions.

The ensuing negotiations were comprehensive in what the new contract would contain and, equally important, not contain. While we recognize the company’s difficulty with NPRM, we had objectives to achieve. Real improvements were at the forefront, but strategic positioning was a relevant consideration. Notwithstanding the NPRM, we saw positives in current bargaining environment. Given the dynamic nature of the external factors related to airline contract bargaining, we did not want to commit to wait for several years to get back to the table and address unfinished business. Consequently, it was also important to put into place a mechanism that allows the parties to continue meeting in the interim with the hope of narrowing the differences so that once bargaining resumes we can resolve all outstanding issues in an expedited manner. Unlike other properties where the parties retreat to their trenches after achieving a CBA, we have a written commitment that guarantees continued discussions between now and our next amendable date.

The MEC was apprised of the TA last night, although we have been in contact throughout the process. Out of deference to your elected leaders, it would be premature to delve into great detail concerning the contents of the TA. We can tell you that all of the items mentioned above are included. Additionally, there is a unique duration clause that gives ALPA the unilateral choice to make this a 12 month or 24 month Agreement with a decision coming by January 2012. This key clause enables us to bargain the next agreement when the circumstances suit us. There is a pay raise for 2011 (and one for 2012 linked to the extension decision), a lump sum payment, and per diem increases. And so that there is no wild speculation as the MEC digests the documents, there are no changes to our Vacation or Retirement; all provisions including Age 60 as the normal retirement age remain current book. Our 2006 Agreement represented a quantum leap in gains for us. This Agreement enhances and preserves those gains, as the only thing sacrificed is some time on the calendar, which was quite likely to occur anyway. There are no give backs.

Our committee will be very busy over the next few weeks. You will receive information in an appropriate and timely manner. Our committee believes this TA is innovative, and a proactive approach that is worthy of ratification. We are committed to providing the MEC and our members facts and information about the Agreement and the decision making processes that led us to accomplish our most important task, representing you at the bargaining table. We sincerely believe that this is a contract worthy of your hard work and sacrifice, but we recognize and respect the fact that this is a group decision.

Thank you for your time, future patience and indulgence. We earnestly request that you remain focused in the cockpit at all times. Happy New Year and we will see you soon.

Fraternally,

The FDX MEC Negotiating Committee

[email protected]