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Old 06-27-2007, 07:48 PM   #1
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Default New FedEx LOA

I guess the speculation can end. I am off to do some reading!

Beertini
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Old 06-27-2007, 08:01 PM   #2
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Thanks for the in-depth analysis.
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Old 06-27-2007, 08:06 PM   #3
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Quote:
Originally Posted by Beertini View Post
I guess the speculation can end. I am off to do some reading!

Beertini
Where is it? Can you post here or link? I would like to analyze as well
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Old 06-27-2007, 08:14 PM   #4
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https://crewroom.alpa.org/FDX/Deskto...cumentID=38673
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Old 06-27-2007, 08:29 PM   #5
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Quote:
Originally Posted by Lippy View Post
Thanks for the in-depth analysis.
I don't know how many times I have to tell you--don't drink and surf!

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.

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Old 06-27-2007, 08:52 PM   #6
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Default 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.
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Old 06-27-2007, 08:54 PM   #7
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Position: A300 Capt
Posts: 156
Default part #2 of remaing 7,000 characters (as limited)

.
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
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Old 06-27-2007, 08:56 PM   #8
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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
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Old 06-27-2007, 09:02 PM   #9
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Posts: 120
Default 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.
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Old 06-27-2007, 09:40 PM   #10
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Quote:
Originally Posted by Freightbird View Post
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.
"up to"? Could be less, no?

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.

Last edited by Sniper; 06-27-2007 at 10:19 PM. Reason: I like to hear myself talk
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