UPS Cutting Guarantee?
12-06-2008 | 05:59 AM
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UPS Cutting Guarantee?
With all the talk of furlough and possibility of reducing guarantee to help the company out has myself concerned that our union is going down the wrong path. Reducing guarantee is very expensive to the union and very cheap for the company giving them reason to bluff us into a pay cut. Below is an example of a way we can help our fellow brothers in case of a furlough and keep our guarantee.
The most junior pilots that will be furloughed would most likely be flight engineers making about $78,000 annually before taxes or about $58,500 annual take home. In the State of Indiana this pilot would receive $390 per week of unemployeement insurance benefits or $20,280 annually leaving a difference of lost revenue at $38,220 per pilot furloughed.
If UPS was to furlough 200 pilots at a lost wages of $38,220 annually this amount would be $7.644 Million dollars. We as a pilot group could make up the difference and it would only cost each crew member about $213.82 per month. This is a lot cheaper than cutting our hours by 5 hours of guarantee each month or even more like is in the FedEx contract.
Bottom Line, if the union is looking at cutting our guarantee they need to look again because this is really a cheap way for the company and an expensive way for the union.
$7.644 Million/ 13 pay periods = $588,000 per pay period
$588,000/ 2,750 remaining pilots= $213.82 per pilot a month[/SIZE][/SIZE]
The most junior pilots that will be furloughed would most likely be flight engineers making about $78,000 annually before taxes or about $58,500 annual take home. In the State of Indiana this pilot would receive $390 per week of unemployeement insurance benefits or $20,280 annually leaving a difference of lost revenue at $38,220 per pilot furloughed.
If UPS was to furlough 200 pilots at a lost wages of $38,220 annually this amount would be $7.644 Million dollars. We as a pilot group could make up the difference and it would only cost each crew member about $213.82 per month. This is a lot cheaper than cutting our hours by 5 hours of guarantee each month or even more like is in the FedEx contract.
Bottom Line, if the union is looking at cutting our guarantee they need to look again because this is really a cheap way for the company and an expensive way for the union.
$7.644 Million/ 13 pay periods = $588,000 per pay period
$588,000/ 2,750 remaining pilots= $213.82 per pilot a month[/SIZE][/SIZE]
12-06-2008 | 06:23 AM
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Thanks, but this is a reality that UPS and the IPA are looking for ways not to furlough pilots and this method of cutting guarantee has been used by several airlines. It doesn’t benefit the pilot group and only helps the company take an easy and cheap way to implement a pay cut.
12-06-2008 | 06:33 AM
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If UPS cuts guarantee by 5 hours a FO would lose $630 and a Captain would lose over $1,150 a pay period. I would rather give the money to a furloughed pilot than back to the company.
12-06-2008 | 06:38 AM
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IN other words, your and independent contractor. Screw the junior guys, put 'em on the street. You must be a real joy to fly with. Are you really trying to sell that you are worried about the furloughed pilot by giving money to them. Nice try.
12-06-2008 | 06:40 AM
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What about B fund contributions, medical, dental, etc.... Looks like you are making it an easy decision for your company. Don't give the Purple MEC any ideas. If we ever furlough, I want the pain shared by all so the remedy/incentive is quicker. There are way to many stories out there about guys flying extra while people were on the street.
12-06-2008 | 06:41 AM
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12-06-2008 | 06:44 AM
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Why are we even discussing this? There will be no furlough; UPS may be slightly overmanned, but the cost of putting guys on the street and then retraining their replacements for a few months would be great. The Storm Troopers in ATL are trying to find ways to cut cost, not increase them.
Oh, BTW, UPS only made 9 hundred million last quarter.
Oh, BTW, UPS only made 9 hundred million last quarter.
12-06-2008 | 06:47 AM
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What about B fund contributions, medical, dental, etc.... Looks like you are making it an easy decision for your company. Don't give the Purple MEC any ideas. If we ever furlough, I want the pain shared by all so the remedy/incentive is quicker. There are way to many stories out there about guys flying extra while people were on the street.
What about the B fund that every pilot would lose if we cut our guarantee by 5 hours? If we need to cover health and dental I would be in favor of help covering the cost until they are able to get back online flying.
Last edited by 757Slug; 12-06-2008 at 06:55 AM.
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