Originally Posted by sailingfun

How accurate is this statement from the company?

In early 2021, our Teamsters Local 2118 was newly formed. Per Teamsters International rules, new locals are begun under trusteeship as they develop their bylaws and management teams. The Teamsters designee to lead Allegiant’s Local was an Allegiant pilot. He proved to be a good politician, a good communicator - he had the support of the crews. But he and his team had never been involved in the management of a union. He did not build the necessary infrastructure to run a Local, did not develop the appropriate policies and procedures and did not delegate authority. The lack of experience, lack of basic business knowledge was readily apparent. At the bargaining table for the past three years, none of the 2118 representatives (including their legal counsel) had any previous experience at airline labor negotiations. The president of the union was also the head of every committee including the negotiating committee. In three years of negotiation, from early 2021 through the end of 2023, the Company and the union did not agree on any substantive updates to the contract.

Is the below program still in effect and how much are the raises?

As I write this, the combination of our increased compensation (in May 2023 we agreed to provide the pilots a substantial raise which would be accrued and paid 60 days after the completion of an agreement between the pilots and the Company) and the general slowdown in pilot hiring have decreased the demand for crews – it appears the worst is behind us. During this three year whirlwind, the industry has seen pilot pay rates increase as much as 40%. Going forward we and the industry will be paying more for the same product. But we at Allegiant still have our unique business model highlighted by minimal competition. With the change in the Teamsters 2118 management, we should be in a much better place.

Originally Posted by pipercub

Well to date nothing substantal has been agreed apon in contract negotiations. The increased compensation is misleading as it is in the form of a retention bonus to be paid 60 days after a contract. It does not increase any pilots pay right now, it will also be taxed as a bonus and will not contribute to retirement. The retention bonus is 35% above current pay except year one is I believe 80%. In most cases the Retention bonus is way below the difference in pay from us and the industry. It also profides no compensation for the poor retirement, work rules, and things like long tern disabilty.

Originally Posted by sailingfun

Thanks for finally giving the answer. Thats a pretty big hammer that appears to have resolved FO retention issues. Smart move on managements part and kills your principal leverage.
I will point out there is no such thing as taxed as a bonus. Bonuses are taxed as ordinary income.

Originally Posted by Bitcoin

Correct, it's common to confuse taxes withheld with taxes paid. To answer your other quetion, why was it agreed to? Our previous union regime signed it in and their logic was that there was nothing in the current CBA to prevent the company from setting this money aside and advertising it to the pilots so might as well get it in writing to make sure it will actually be paid out. I agree it was a win for the company as attrition did slow after.

Originally Posted by tom11011

I am not sure I understand your question. Pilots contractually get the same bonus offered to other work groups, if any. Haven't really seen a bonus in a while and the last ones we have received have been pizza money. The hotel has really hurt them in my opinion, not that they can't climb out of the hole and make the hotel profitable and worth it, its possible, but for the time being it remains unprofitable.

Originally Posted by captnate702

Tom - you never fail to deliver some laughs on here.

You trying to pretend that the "bonus" that Sailing was asking about was profit sharing and not the retention bonus literally had me chuckling out loud. never stop being tom the teamster.

Originally Posted by sailingfun

Thanks for finally giving the answer. Thats a pretty big hammer that appears to have resolved FO retention issues. Smart move on managements part and kills your principal leverage.
I will point out there is no such thing as taxed as a bonus. Bonuses are taxed as ordinary income.

Originally Posted by ESQ702

FOs will start bailing again, with or without the retention bonus, when they hit competitive mins for better carriers. Hiring slowing above has stopped the loss of pilots. That won't last forever.

Originally Posted by captnate702

I agree attrition won't completely stop like it has the past several months - to the point we have stopped hiring until the spring. But even if attrition picks up it will never be what it was when the retention bonus started. Attrition was like 2 a day. That was a once in a generation hiring boom. EVERYBODY was hiring EVERYBODY.

Unfortunately i do not think the union will be able to rely on attrition to create leverage. the only leverage for a contract is the old fashioned RLA leverage: the threat of release. it sucks because a release is probably 0% in most circumstances but even more with republicans in the whitehouse. i know i know trump and the teamsters are tight, etc. but i'll believe it when i see it. no matter how labor friendly trump and republicans are, i don't believe for a second that they will be more friendly than the biden whitehouse. Biden released the rail workers after a few months of mediation - that will never happen with republicans.

Originally Posted by captnate702

I agree attrition won't completely stop like it has the past several months - to the point we have stopped hiring until the spring. But even if attrition picks up it will never be what it was when the retention bonus started. Attrition was like 2 a day. That was a once in a generation hiring boom. EVERYBODY was hiring EVERYBODY.

Unfortunately i do not think the union will be able to rely on attrition to create leverage. the only leverage for a contract is the old fashioned RLA leverage: the threat of release. it sucks because a release is probably 0% in most circumstances but even more with republicans in the whitehouse. i know i know trump and the teamsters are tight, etc. but i'll believe it when i see it. no matter how labor friendly trump and republicans are, i don't believe for a second that they will be more friendly than the biden whitehouse. Biden released the rail workers after a few months of mediation - that will never happen with republicans.