Originally Posted by bluejuice (Post 261500)

Did anyone read the new AOD magazine? Great article from the CFO about how each revenue dollar is broken down in terms of costs. Wages and salaries were approximately 1/3 of our costs. So let's consider what the over 60 policy is doing to FDX financially. Approximately, we have 200 over 60 SO's in the DC10 and another 200 in the Boeing. We'll assume DOS+1 and 15 year longevity for all SO's.

DC10
((1) crewmember x 140.90/hr) x 1000 hrs = $140,900 per yr
200 * 140,900 = 28.2 million dollars per year

727
((1) crewmember x 123.91/hr) x 1000 hrs = $123,910 per yr
200 * 123,910 = 24.8 million dollars per year

So, as of now, FDX is spending 53 million dollars per year for labor from the over 60 engineers, of which they see very little productivity due to sick time, vacations, lack of flying, and general over-populus of the seats. This number accounts for only wages and no other costs are factored in.

Now, considering the AGE 60 debacle looms for another two years, FDX is expecting to retire another 500 guys, assuming 80% hang around and "take" an engineer seat, that's another 400 guys and puts FDX over 100 million per year just in wages alone.

Now, there are two arguments to this. First, if I was over 60 and I knew I'd be able to sit on my butt and make $140 grand per year with minimal effort, I would do it. In contrast, from a non-over 60 perspective, this situation has the potential to really hurt FDX and ALL of its employees. I'm pretty sure JL didn't think of the financial impact when he put his retirement policy in motion, but looking at the rough numbers, it's in everybody's interest, except the over 60 guys, to close that loophole. It's nothing but fat that needs to be trimmed.

Sure, you'll hear "it's none of your business" and some other condascending comment, but in reality, it is our business considering it affects every employee of FDX. I'm sure at least 50 or 100 million could be better spent for the future of FDX (FDA's, LOA's, contract 2010, new airframes, new hires, COLA's) than spending it on over 60 SO's that are dead weight.

Originally Posted by frozenboxhauler (Post 262898)

Even though no one else does:( Remember their last strike, lasted all of about two seconds before Clinton stepped in. There are a few good things about being tied to the AFLCIO. Don't get me wrong, I voted against "W" both times.
fbh

Originally Posted by bluejuice (Post 261500)

First, if I was over 60 and I knew I'd be able to sit on my butt and make $140 grand per year with minimal effort, I would do it.

Originally Posted by gderek (Post 262939)

You're right, the last strike didn't accomplish much. Although their sick out cost them a fortune. I just find it interesting that they are doing more to "take it back" than ALPA is (pay demands). They also seem to remove their leadership without a major production. It's also rather interesting that the union that broke away from ALPA partly over age 60 is now trying to keep it in place.

Originally Posted by Bohica (Post 262974)

Not many ALPA fans at FedEx right now either.

Originally Posted by MaydayMark (Post 270802)

Hey JetJok ...
Maybe you and FoxHunter could get a job flying this privately owned VIP MD-11. Just think, with your retirement AND a retirement job, you guys would be rolling in dough.

http://www.airliners.net/open.file?i...=NEXTID&size=L