New FedEx LOA
I guess the speculation can end. I am off to do some reading!
Beertini |
Thanks for the in-depth analysis.
|
Originally Posted by Beertini
(Post 186289)
I guess the speculation can end. I am off to do some reading!
Beertini |
|
Originally Posted by Lippy
(Post 186304)
Thanks for the in-depth analysis.
Hong Kong isn't spelled C-O-L-L-I-E-R-V-I-L-L-E, but thanks for being ever so cordial (as always). You are cooking the steaks next time I'm in town. Loser.:D Beertini |
copy / pasted LOA proposal ( first 13,00 characters)
At the risk of airing dirty laundry, I am hoping for critical review:
NOTE: Proposal made with the assumption that Hong Kong government authorities approve a pilot FDA. LETTER OF AGREEMENT between FEDERAL EXPRESS CORPORATION and THE AIR LINE PILOTS in the service of FEDERAL EXPRESS CORPORATION as represented by THE AIR LINE PILOTS ASSOCIATION, INTERNATIONAL FOREIGN DUTY ASSIGNMENTS IN HONG KONG AND PARIS This Letter of Agreement is made and entered into in accordance with the provisions of Title II of the Railway Labor Act, as amended, by and between FEDERAL EXPRESS CORPORATION (hereinafter referred to as the “Company”) and the pilots in the service of FEDERAL EXPRESS CORPORATION, as represented by the AIR LINE PILOTS ASSOCATION, INTERNATIONAL (hereinafter referred to as the “Association”). WHEREAS, the Company has announced its intention to open foreign duty assignments (FDAs) in Hong Kong, China and Paris, France, and WHEREAS, the Company and the Association have studied certain details of basing pilots in Hong Kong (HKG) and Paris (CDG), and have concluded that contractual provisions other than those contained in the basic Agreement are advisable in order to provide for the smooth and orderly establishment of those FDAs. NOW, THEREFORE, the parties agree as follows: A. Permanent Vacancies in CDG and HKG Permanent vacancies for FDAs in CDG and HKG shall be posted, bid upon and awarded as provided in Section 24 with the following modifications: 1. The 18 month bidding restriction set forth in Section 24.E.1.b. shall be waived with respect to pilots bidding for permanent vacancies in CDG or HKG. 2. In order to be awarded a permanent vacancy in CDG or HKG, a pilot must agree to sign a CDG/HKG FDA Agreement, agreed upon by the parties (Attachment A), which provides, in part, that the pilot’s terms and conditions of employment are governed by the Collective Bargaining Agreement (CBA) and applicable laws of the United States, and not by the laws of the country where the FDA is located. a. In order to bid on a CDG/HKG vacancy, a pilot must first indicate, via VIPS, his commitment to sign the agreement. b. Pilots awarded vacancies at CDG or HKG will be provided with paper copies of the agreement and shall sign and return such signed copies to 1 the System Chief Pilot prior to the start of any training for the FDA vacancy, or, if no training is required, then prior to the distribution of any benefits stemming from the pilot’s FDA vacancy award (e.g., seed money). c. Absent extenuating circumstances, if a pilot later fails or refuses to sign the agreement in the required time frame, he shall be frozen in his current crew position for two years, as if his failure to sign the agreement had been a down/lateral bid covered by Section 24.E.1.c. Such freeze shall not result in any passover pay. 3. Visas a. If, having been awarded a permanent vacancy in CDG or HKG, a pilot is unable to secure or maintain any required visa, he shall contact his flight manager immediately and shall be released from his FDA vacancy award. b. If a pilot’s spouse or child is unable to secure or maintain the required visas, the pilot may elect to be released from his FDA obligation by submitting an appropriate explanation to the System Chief Pilot. The timing of the release shall be determined by the System Chief Pilot, after consultation with the pilot, and shall balance the pilot’s desires with the Company’s operational requirements. c. The crew position of a pilot who was released from his FDA vacancy award as described in this paragraph shall be determined as provided in Section 13.A.6.b.ii. as if the pilot had been on a leave of absence when the posting on which he was awarded the FDA vacancy closed. d. The pilot’s inability to secure or maintain required visas shall not, by itself, constitute grounds for penalty or discipline. B. Package Options for CDG and HKG Except as provided in paragraph I. below, within 15 days after being awarded a permanent vacancy in CDG or HKG, a pilot shall choose from either the “existing CBA option” or the “enhanced option” set forth in paragraphs B.1. and B.2., respectively. 1. Existing CBA Option (3 year commitment) Pilots who choose the existing CBA option shall be entitled to the following: a. Relocation benefits as described in Section 6 of the basic Agreement, except that Section 6.E.1.e. (FDA Bonus) shall be inapplicable. b. Tax equalization as provided in paragraph C. of this Letter of Agreement (LOA). 2. Enhanced Option (2 year commitment) Pilots selecting the enhanced option shall be entitled to the following, in lieu of the benefits available under Section 6 of the basic Agreement: a. Seed Money. Pilots who select the enhanced option shall be entitled to a one time payment of $10,000. This shall be paid upon a pilot’s activation into the CDG/HKG crew position. b. Four Year Service Credit. If a pilot completes 48 months as an active pilot in the same FDA, he shall receive an additional $5,000. This payment shall be made within 30 days after the pilot completes his 48th month as an active pilot in the FDA. If a pilot upgrades within the FDA, time spent in ITU training will not be counted toward the 48 months. 2 c. Storage. A pilot shall be entitled to expenses associated with the storage of his household goods in the location of his permanent residence immediately preceding his assignment to CDG/HKG. Reimbursement shall not exceed $4,000 per year and the storage must be at a commercial storage provider. d. Housing Allowance i. Rental Allowance. Pilots shall be entitled to a rental allowance of up to $2,700 per month to offset the cost of rental housing in the FDA location. Money paid to a landlord for water/utilities, internet/cable, parking, maintenance, etc., may be included in the rental allowance. ii. Home Ownership Allowance. Pilots who choose to own, rather than rent their housing, shall be entitled to a monthly allowance of up to $1,300. iii. To be eligible for this allowance, pilots must relocate to the FDA and occupy the housing for which an allowance is being paid. Standards for determining whether a pilot has relocated his permanent residence under this paragraph shall be the same as for full relocations under Section 6 of the basic Agreement. The housing must be located within 100 nautical miles of the base airport. A larger radius may be approved on a case by case basis by the System Chief Pilot, if the proposed residence affords access to the hub airport that is at least as expeditious and reliable as comparable residences inside the 100 nm radius. iv. The rental/housing allowance shall be provided for each month during which the pilot is assigned to the FDA. On the first and last month of a pilot’s assignment to the FDA, if the pilot is assigned to the FDA for fewer than 15 days in that month(s), his rental/housing allowance for that month(s) will be prorated. The pilot must provide adequate substantiation including, but not limited to, a lease agreement, canceled checks or receipts, to his flight manager. e. Tax equalization as provided in paragraph C. of this LOA. f. Airline Tickets. The pilot shall be entitled to one set of round-trip business class tickets to position him and his dependents from his permanent residence to the FDA at the beginning of his assignment and from the FDA to his next base at the conclusion of his assignment. For each year a pilot completes in the FDA location as an active pilot after the end of his two year commitment, the Company shall provide one set of coach class round-trip tickets for the pilot and his dependents living with him at the FDA back to the location of his permanent residence (or a destination of similar cost). g. Commitment Period i. A pilot must complete two years as an active pilot in the FDA, unless released from his obligation due to extenuating circumstances by the Vice President, Flight Operations. ii. If a pilot fails to complete his commitment period without a release from the V.P., he shall be obligated to repay his seed money and any money paid by the Company for storage. iii. If a pilot changes or attempts to change his crew status within his FDA (e.g., upgrades from F/O/CDG to CAP/CDG), his original commitment period shall be extended by twelve months plus the time spent in training. |
part #2 of remaing 7,000 characters (as limited)
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3 h. Return Household Goods Shipment. Upon successful completion of his commitment period, a pilot is entitled to household goods shipments via FedEx Express, on a space available basis, of up to a total of 3,000 pounds. Unless different locations are authorized by the Managing Director, Human Resources Operations Support, shipments shall be from the FDA base where the pilot served his commitment to his last pre-FDA permanent residence or his new base at his option. This provision shall not limit or abridge any relocation rights which accrued to the pilot prior to his FDA assignment (e.g., rights accrued by SFS and ANC pilots under 1999 and 2006 LOAs) i. In the event the Company closes an FDA, pilots who have not met their commitment period shall not be required to repay any seed money or monies paid by the Company for storage and shall be permitted to return up to a total of 3,000 pounds of household goods as provided under paragraph B.2.h. j. Upon a pilot’s activation into the CDG or HKG crew position, he shall be entitled to a household goods shipment to his FDA location via FedEx Express, using international economy (IE) service (or the most comparable such service if IE is discontinued), not to exceed a total of 500 pounds. If the pilot’s shipment exceeds 500 pounds, the pilot shall be responsible for paying the cost of the excess. k. Orientation and Housing Search Services During the first 30 days of a pilot's assignment to the FDA, the Company shall make available to pilots awarded CDG/HKG local real estate and orientation assistance. This shall be provided through individuals who are fluent in the local language and who are familiar with the FDA location. This service may last up to two days and may be provided individually or in small groups. If a pilot chooses to live in a local hotel during the first 30 days of his assignment , instead of the housing allowance for that month, the Company will reimburse the pilot for the cost of hotel arrangements up to $250 per night, for up to 30 days. C. Federal Tax Equalization Services Pilots accepting permanent vacancies in CDG or HKG are both entitled and required to use the tax equalization procedures and tax return filing services (US and foreign) offered by the Company through its vendor. The purpose of tax equalization is to provide that a pilot bears approximately the same US Federal tax burden as he would pay if he were assigned to a domestic base rather than CDG or HKG. To facilitate accurate tax computations and reporting, pilots will be required to provide all necessary tax information to the appointed tax provider. 4 D. Special Temporary Vacancies for CDG and HKG In lieu of Section 24.B.2., the following rules shall apply to Special Temporary Vacancies (STVs) at CDG or HKG. STVs shall only be available for the first two years after each FDA opens. Thereafter, if the Company advises ALPA in writing of its intent to close CDG or HKG, the STV rules contained in this paragraph shall once again become available in the FDA that is closing, when the Company is regularly operating fewer than 50% of the aircraft which it regularly operated in that base at the time of the notification of its intent to close. The use of STVs in conjunction with a base closure is limited to 540 days from the Company’s first use of the STV application rule in that context. 1. STV awards shall have a duration between one and three bid periods. 2. STV awards shall begin and end concurrent with a bid period. 3. A STV posting shall specify the crew position(s) from which bids will be accepted and, if applicable, the number of bids which will be awarded at each domicile from which bids are accepted. 4. A pilot shall be entitled to one business class ticket positioning him to the STV location at the beginning of his assignment and back to his permanent base at the conclusion of his assignment. The Company shall also provide a pilot’s dependents with one round-trip coach class ticket from the pilot’s permanent residence to the FDA location during the assignment. 5. The pilot shall be entitled to per diem for the duration of his STV assignment, when the pilot is not otherwise being paid per diem (e.g., on a trip). This shall be accomplished by the submission of a pay log unless pay automation eliminates the necessity for a pay log. 6. The pilot shall be entitled to Company paid lodging in accommodations of quality similar to that of the local contract hotels. 7. Notwithstanding Section 24.C.5., if a STV position(s) remains unfilled following the STV award process, the Company may inversely assign the most junior qualified pilot(s) holding the applicable crew position to the remaining STV positions. If a pilot is inversely assigned, the following shall apply: a. A pilot shall not be inversely assigned to a temporary vacancy at CDG or HKG more than once in any period of six times the duration of the STV (e.g., for a temporary vacancy of 3 bid periods, a pilot could not be assigned more than once every 18 bid periods). b. The pilot may not be inversely assigned for more than three bid periods at a time. c. The pilot shall be positioned and de-positioned to the temporary vacancy using business class accommodations. If the pilot so elects, his dependents may join him using round-trip coach class tickets provided by the Company. d. The pilot shall be entitled to per diem for the duration of his STV assignment, when the pilot is not otherwise being paid per diem (e.g., on a trip). This shall be accomplished by the submission of a pay log unless pay automation eliminates the necessity for a pay log. 5 E. Pilots Relocating from SFS to HKG or CDG Provided he otherwise qualifies, a pilot may elect to take his FDA move back provided in Section 6.E.2.b., prior to his activation into CDG/HKG. Once moved back to the United States, a pilot who selects the “enhanced option” may take advantage of the household goods storage provided in paragraph B.2.c. F. Pilots Relocating from ANC to HKG or CDG For an ANC pilot who is entitled to a "return move" relocation package from ANC, the pilots may elect to be treated in the same fashion (except that their base is in ANC and not SFS) as the SFS pilots in paragraph E. above. G. Surface Transportation from Hong Kong to Guangzhou Surface transportation from HKG to CAN is estimated to be slightly over three hours. The limitations contained within Section 8.B.1. of the basic Agreement are waived for purposes of this LOA. H. FDA Maximum Time Limitation Should an FDA have a maximum stay time limitation established by the host governmental authority, the Company shall advise the Association as to how it intends to transition pilots to this restriction without abrogating seniority as articulated in the CBA. I. Crew Position Changes to Different FDAs in the Same Geographic Location If the Company opens multiple FDAs in the same geographic location (e.g., 757 MEM/CDG; A300 MEM/CDG), the following shall apply to pilots who activate into a different FDA within the same geographic location (e.g., a 757 F/O MEM/CDG upgrades to A300 F/O MEM/CDG). 1. The following shall apply to pilots who chose the enhanced option as part of their original award: a. Such pilots shall be eligible for the benefits described in paragraph B.2.a. (seed money) and B.2.b. (Four Year Service Credit), treating their new award as a completely separate award to an FDA in CDG or HKG. b. The commitment period for the new award shall be accounted for treating their new award as a completely separate award to an FDA in CDG or HKG. c. The benefits described in paragraph B.2.c. (Storage), B.2.d. (Housing Allowance), B.2.e. (Tax Equalization), B.2.f. (airline tickets), B.2.h. (Return Household Goods Shipment), and B.2.k. (500 lb. household goods shipment) shall be administered as if the pilot had not changed FDAs, but rather, had been on one continuous assignment in the same FDA. d. If a pilot’s crew position changes to a different FDA in the same geographic location and the pilot has not completed his original commitment period, the pilot shall not be eligible to receive the seed money otherwise provided by paragraph I.1.a. above. 2. Pilots who chose the existing CBA option as part of their original award shall continue to receive tax equalization benefits provided by this LOA. 6 J. Unexpected Unavailability In FDA If a pilot assigned to an FDA becomes unavailable for line flying in his FDA and the absence is expected to last longer than one year, then the affected pilot may request that he and his dependents be returned from his FDA to his previous permanent residence in the U.S. without penalty. Requests for such a return shall not be unreasonably denied. If no request is made by the pilot after one year or more of absence (e.g., loss of medical, LTD, extended LOAs, etc.), his circumstances shall be reviewed to determine if he is expected to be available to return to active flying within two years from the date of his first absence. If the pilot’s absence is the result of a medical condition, the Company may have the pilot’s medical condition reviewed by the Company’s aeormedical advisor. The Company’s aeromedical advisor may have the pilot examined for purposes of determining how much longer the pilot is expected to continue to be absent from active flying. The Company’s aeromedical advisor shall advise both the pilot and the Company of his findings. If the pilot disagrees with the Company’s aeromedical advisor’s finding, the pilot may enlist the Association’s aeromedical department at his own expense for a second opinion. If the physicians agree on the determination, the Company and the pilot will act accordingly. If the physicians disagree, the findings and recommendations of each physician shall be submitted to a mutually acceptable third physician who shall make a determination as to the pilot’s anticipated return to active flying. The third physician’s decision shall be binding on both parties. In the event the decision is that the pilot will not be able to return to active flying during the two year period, then the pilot will be given the option to either return home to his U.S. permanent residence without penalty or lose his monthly housing allowance for the period of his continued absence. In no event shall the Company be obligated to provide a housing allowance to an absent pilot for longer than 26 months. K. Effective Date and Duration This Letter of Agreement is effective on the date signed and shall remain in full force and effect concurrent with the basic Agreement. IN WITNESS WHEREOF, the parties hereto have signed this Letter of Agreement this ____ day of July, 2007. FOR THE COMPANY FOR THE ASSOCIATION __________________________ _________________________ Donald W. Maliniak Captain John Prater Vice-President, Labor Relations Law President __________________________ _________________________ John D. Maxwell Captain David Webb Managing Director, Labor Relations Law Chairman, FedEx MEC 7 8 WITNESS: WITNESS: _________________________ _________________________ John M. Lewis II Captain Robert Chimenti Managing Director, Flight Operations Chairman, Contract Administration MEC Negotiating Committee |
As a point of comparison - from the APC Cathay page.
-Pilots may take 15.5% retirement contribution as taxable cash salary instead -Cathay covers 70% of international school fees for children, or 100% if they go to English Foundation School (a local and cheaper version of international school) -Expat housing allowance (for direct entry second officer), first 2 years, is HKD24000/mo. (approx. USD3000) in addition to salary. From third year onward, HKD48000/mo. (approx. USD6000) -Hong Kong housing allowance: SO 1st 24 months = HKD$252k, SO = HKD$360k/ year, FO = HKD$540k/ year, captain = HKD$780k/ year Housing allowance goes directly for any rental or mortagage of properties in Hong Kong -16% tax rate in Hong Kong -Mandatory retirement age is 55 |
Pensionable??
It sounds like the $2700 is an allowance. That would make it non-pensionable, correct??
Also...NOTHING about an education/schooling allowance. We pay taxes here domestically and have the option of sending kids to public schools. Not the case in CDG or HKG. Compared to many expat's bennies, this seems pretty weak!! Think I'll be staying put. |
Originally Posted by Freightbird
(Post 186340)
d. Housing Allowance
i. Rental Allowance. Pilots shall be entitled to a rental allowance of up to $2,700 per month to offset the cost of rental housing in the FDA location. Money paid to a landlord for water/utilities, internet/cable, parking, maintenance, etc., may be included in the rental allowance. ii. Home Ownership Allowance. Pilots who choose to own, rather than rent their housing, shall be entitled to a monthly allowance of up to $1,300. Is there a minimum "allowance" guarantee in there that I missed, or any ties to the direct costs incurred for rent, mortgage, or utilities? Seems like an "allowance" could be used to pay for housing, but there is no concrete link between owning housing costs and this "allowance" other than the title "housing allowance". One might argue that the term "allowance" by itself does not imply a link directly to housing costs or utilities, and the link between the allowances' upper monetary limit and the pilot's choice of housing options is the only direct link. You could choose to spend an allowance on anything you want, and do not have to use it for housing costs. As such, if your housing costs go up, should there be an obligation for your allowance to be readjusted as well? What if your costs go down? Should your allowance? How often must these costs be readjusted? What if the real value of the allowance changes as a result of a large exchange rate fluctuation b/t the Euro and the $? All it says it that you could get an allowance of up to $2700 if you rent, and $1300 if you own. If you rent, the allowance is to offset the rental housing costs, but isn't linked to them directly. If you own, the allowance is merely that, an allowance. There is no mention of exactly what it is for, though it's upper monetary limit is based on your choice to own housing, not necessarily on the costs you incur while owning. I can feel the lawyer circling for the kill.:D |
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