FedEx hiring as it relates to scope
05-04-2006 | 08:00 AM
#1
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Gets Weekends Off
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From: -400 CAPT
FedEx hiring as it relates to scope
Hey FedEx Flyers,
At UPS we're aware of the massive hiring you've been doing. One of the arguments some of my UPS friends make when discussing your Scope is that you all are hiring and expanding despite having a relatively weak Scope clause. We have a very strong scope clause, yet we're expanding our pilot ranks at single digits per month. You have a lesser agreement, and you're hiring four or five times our rate.
Can somebody at FedEx explain how scope can be a contentious issue for you all when your company is bringing on new hires month after month in large waves?
At UPS we're aware of the massive hiring you've been doing. One of the arguments some of my UPS friends make when discussing your Scope is that you all are hiring and expanding despite having a relatively weak Scope clause. We have a very strong scope clause, yet we're expanding our pilot ranks at single digits per month. You have a lesser agreement, and you're hiring four or five times our rate.
Can somebody at FedEx explain how scope can be a contentious issue for you all when your company is bringing on new hires month after month in large waves?
Last edited by Freighter Captain; 05-04-2006 at 08:05 AM.
05-04-2006 | 08:29 AM
#2
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From: MD-11 F/O
Three Issues on Scope:
1. Current Scope agreement only limits the ability of the company to purchase a certificated US cargo carrier and operate it separately. We could theoretically buy DAL or any other passenger carrier and operate it separately tomorrow.
2. Successorship: Executive management contracts have language that protects them with golden parachute type agreements if FDX is bought out. There is no such language for pilots.
3. Poison Pill: As soon as a strike ballot is issued at FDX, all limits on wet-leasing goes out the window along with any penalties due to that.
1. Current Scope agreement only limits the ability of the company to purchase a certificated US cargo carrier and operate it separately. We could theoretically buy DAL or any other passenger carrier and operate it separately tomorrow.
2. Successorship: Executive management contracts have language that protects them with golden parachute type agreements if FDX is bought out. There is no such language for pilots.
3. Poison Pill: As soon as a strike ballot is issued at FDX, all limits on wet-leasing goes out the window along with any penalties due to that.
05-04-2006 | 09:33 AM
#3
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From: -400 CAPT
Thanks for the quick response. So if FedEx purchases say TNT, FedEX could move FedEx packages on this purchased airline as long as it was operated separately?
I forgot, what's your limit on subcontractors?
I forgot, what's your limit on subcontractors?
05-04-2006 | 09:38 AM
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From: 767 captain
Originally Posted by SleepyF18
3. Poison Pill: As soon as a strike ballot is issued at FDX, all limits on wet-leasing goes out the window along with any penalties due to that.
05-04-2006 | 06:15 PM
#5
Thx Age 65
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From: MD11CAP
We Don't have a limit on contractors. Our scope clause relates more to time and penalty payments. Which are a pitance compared to total revenue.
Here's our scope clause.
Section 1.B. Recognition, Scope and Successorship - Scope, Operation of Company Aircraft
The Company's revenue flights conducted with aircraft owned, leased, or operated within the domestic or international operations described below, conducted with aircraft over 60,000 lbs. MTOGW, shall be flown by Federal Express pilots.
"Domestic flights" are all those Company flights wherein all flight legs within a single pairing originate and terminate at cities located solely within the contiguous 48 states.
"International flights" are all Company flights which originate from, terminate in or transit the U.S. or its territories via a location outside the contiguous 48 states. International flights also include all flights conducted by any pilots on the Federal Express Master Seniority List assigned to Foreign Duty Assignment ("FDA"), or Special International Bid Award ("SIBA").
All domestic and international revenue flights conducted with aircraft that are owned, leased, or operated by the Company, having a MTOGW of greater than 60,000 lbs., and operated pursuant to the Company's Airline Operating Certificate or any additional Part 121 Airline Operating Certificate obtained by the Company, shall be operated by pilots on the Federal Express Master Seniority List. Domestic flying conducted with aircraft at or under 60,000 lbs. MTOGW (commonly referred to as "feeder flying") shall not be substituted for Federal Express trunk flying (over 60,000 lbs. MTOGW) so as to cause a furlough, excess or downgrade of Federal Express pilots. However, if the furlough, excess, or downgrade is the result of an act beyond the control of the Company (e.g., FAA grounding of a fleet, etc.), feeder/wet lease flying may be used to replace lost trunk flying. The Company shall not deploy multiple feeder flying in the domestic system to effect a elimination/reduction of the overall flying of an affected aircraft type; however, the Company may use multiple feeders to assume some existing trunk flying when aircraft or lift shortages exist during high volume periods.
Notwithstanding any other provision of this Agreement, the Company may continue to interline, co-load, code-share, part charter and enter into block space agreements with other carriers to move freight and service international (outside the contiguous 48 states) markets as required. Within the domestic system (the contiguous 48 United States) the use of the above shall be done only: (1) when necessary to expedite or (2) when economically necessary, unless otherwise agreed to by the parties
At anytime during the year should severe damage or destruction to a hull(s) occur, in either the Domestic or International Systems, the Company may utilize wet lease on a one for one basis until the lost aircraft is actually replaced in the fleet or for a period of one year, whichever is earlier.
The Company may also wet lease aircraft above 60,000 lbs. MTOGW for up to four (4) consecutive bid periods per calendar year. The Company shall provide a minimum of 30 days' notice to the Association of any such wet lease. The following conditions shall apply to such wet lease arrangements:
The wet lease operator shall not be assigned flying belonging to the domestic flight system.
Should a wet lease operation assume flying regularly and historically performed by FedEx crewmembers, as evidenced by the FedEx bid packs, for more than two (2) bid periods in a calendar year, the Company shall pay the Association a sum of money for the period of the wet lease in excess of two (2) bid periods calculated as follows: The average pay for a Federal Express crew complement times the number of regular bid pack credit hours that would have been earned by Federal Express pilots but for the wet lease. This sum shall be calculated after the expiration of the wet lease and shall be distributed to pilots in the manner identified by the Association. Wet leases done in support of charter flying during this four month period shall not be subject to this penalty.
During the 4 consecutive bid periods described in this paragraph, the Company shall not wet lease more than the net gain of trunk aircraft scheduled to be added and brought into service in any calendar year. Should, at the end of the calendar year, the Company actually bring into service fewer trunk aircraft than were scheduled and based on the schedule, the Company wet leased more aircraft than would have been permitted if the scheduled additions were the same as the actual deliveries, then the Company shall pay to the Association the same monies it would have paid the Association as calculated under 6.b. above. Effective one day prior to the date that this agreement becomes amendable, in addition to the wet leasing otherwise permitted under this paragraph one aircraft may be wet leased each year under Section 1.B. without penalty under Section 1.B.6.b..
Should the Company violate the four bid period restriction contemplated by this paragraph, the Company shall pay to the Association the following for each wet lease conducted the greater of the number of block hours scheduled or flown, times 2.0, times the highest hourly rate for a three (3) man crew with fifteen (15) years of pay longevity, in addition to the international override, if any.
The Company may enter into wet lease and other agreements with other carriers at any time without penalty or payment to any pilot or the Association in order to deliver freight to cities that cannot be served by Federal Express trunk aircraft because:
The Company does not possess all the requisite regulatory authority (or what authority it does possess is in dispute with any government or any agency thereto), all traffic authority and foreign government approvals/authority, as are necessary to fly the scheduled or required routes; or
Foreign government or foreign authorities' action restricts the use of pilots on the Master Seniority List; or
An emergency exists that precludes the Company from utilizing Company aircraft. In the event the Company wet leases aircraft under this provision, the Vice President, Flight Operations, shall notify the Association and crew force through an FCIF as soon as practicable. Routine maintenance problems shall not constitute an emergency.
The utilization of pilots on the Master Seniority List is not, or does not continue to be, economically or operationally feasible given the low freight volume, treaty or regulatory restrictions on the right of the Company to move freight through or beyond certain countries or cities, or remoteness or isolation of the served city to the existing Federal Express international route structure.
Should the configuration of a given shipment (certain satellites, aircraft, helicopters, etc.) preclude the Company from using one of its own aircraft, then the Company may enlist the services of another carrier to handle that shipment on a sub-contract basis.
The Company shall notify the Association quarterly concerning all wet-leasing done during the period. The Company shall identify the wet lease operation, the trip(s) flown by same, and the reason and effect on Federal Express crewmembers.
The restrictions on operations of Company revenue flights contained in Section 1.B. and the restrictions on the Company's parent and affiliates contained in Section 1.C. of this Agreement shall expire completely and without possibility of continuation one day prior to the earliest of the following:
the notification by the National Mediation Board that, despite its best efforts to bring about an amicable settlement through mediation, the parties have failed to reach agreement;
the satisfaction of any of the legal conditions precedent to the Association's engagement in a job action including initial approval by the Association Board of Directors for such an action;
the commencement of the lawful self-help period following exhaustion of the procedures for changing the comprehensive bargaining agreement provided in the Railway Labor Act.
Here's our scope clause.
Section 1.B. Recognition, Scope and Successorship - Scope, Operation of Company Aircraft
The Company's revenue flights conducted with aircraft owned, leased, or operated within the domestic or international operations described below, conducted with aircraft over 60,000 lbs. MTOGW, shall be flown by Federal Express pilots.
"Domestic flights" are all those Company flights wherein all flight legs within a single pairing originate and terminate at cities located solely within the contiguous 48 states.
"International flights" are all Company flights which originate from, terminate in or transit the U.S. or its territories via a location outside the contiguous 48 states. International flights also include all flights conducted by any pilots on the Federal Express Master Seniority List assigned to Foreign Duty Assignment ("FDA"), or Special International Bid Award ("SIBA").
All domestic and international revenue flights conducted with aircraft that are owned, leased, or operated by the Company, having a MTOGW of greater than 60,000 lbs., and operated pursuant to the Company's Airline Operating Certificate or any additional Part 121 Airline Operating Certificate obtained by the Company, shall be operated by pilots on the Federal Express Master Seniority List. Domestic flying conducted with aircraft at or under 60,000 lbs. MTOGW (commonly referred to as "feeder flying") shall not be substituted for Federal Express trunk flying (over 60,000 lbs. MTOGW) so as to cause a furlough, excess or downgrade of Federal Express pilots. However, if the furlough, excess, or downgrade is the result of an act beyond the control of the Company (e.g., FAA grounding of a fleet, etc.), feeder/wet lease flying may be used to replace lost trunk flying. The Company shall not deploy multiple feeder flying in the domestic system to effect a elimination/reduction of the overall flying of an affected aircraft type; however, the Company may use multiple feeders to assume some existing trunk flying when aircraft or lift shortages exist during high volume periods.
Notwithstanding any other provision of this Agreement, the Company may continue to interline, co-load, code-share, part charter and enter into block space agreements with other carriers to move freight and service international (outside the contiguous 48 states) markets as required. Within the domestic system (the contiguous 48 United States) the use of the above shall be done only: (1) when necessary to expedite or (2) when economically necessary, unless otherwise agreed to by the parties
At anytime during the year should severe damage or destruction to a hull(s) occur, in either the Domestic or International Systems, the Company may utilize wet lease on a one for one basis until the lost aircraft is actually replaced in the fleet or for a period of one year, whichever is earlier.
The Company may also wet lease aircraft above 60,000 lbs. MTOGW for up to four (4) consecutive bid periods per calendar year. The Company shall provide a minimum of 30 days' notice to the Association of any such wet lease. The following conditions shall apply to such wet lease arrangements:
The wet lease operator shall not be assigned flying belonging to the domestic flight system.
Should a wet lease operation assume flying regularly and historically performed by FedEx crewmembers, as evidenced by the FedEx bid packs, for more than two (2) bid periods in a calendar year, the Company shall pay the Association a sum of money for the period of the wet lease in excess of two (2) bid periods calculated as follows: The average pay for a Federal Express crew complement times the number of regular bid pack credit hours that would have been earned by Federal Express pilots but for the wet lease. This sum shall be calculated after the expiration of the wet lease and shall be distributed to pilots in the manner identified by the Association. Wet leases done in support of charter flying during this four month period shall not be subject to this penalty.
During the 4 consecutive bid periods described in this paragraph, the Company shall not wet lease more than the net gain of trunk aircraft scheduled to be added and brought into service in any calendar year. Should, at the end of the calendar year, the Company actually bring into service fewer trunk aircraft than were scheduled and based on the schedule, the Company wet leased more aircraft than would have been permitted if the scheduled additions were the same as the actual deliveries, then the Company shall pay to the Association the same monies it would have paid the Association as calculated under 6.b. above. Effective one day prior to the date that this agreement becomes amendable, in addition to the wet leasing otherwise permitted under this paragraph one aircraft may be wet leased each year under Section 1.B. without penalty under Section 1.B.6.b..
Should the Company violate the four bid period restriction contemplated by this paragraph, the Company shall pay to the Association the following for each wet lease conducted the greater of the number of block hours scheduled or flown, times 2.0, times the highest hourly rate for a three (3) man crew with fifteen (15) years of pay longevity, in addition to the international override, if any.
The Company may enter into wet lease and other agreements with other carriers at any time without penalty or payment to any pilot or the Association in order to deliver freight to cities that cannot be served by Federal Express trunk aircraft because:
The Company does not possess all the requisite regulatory authority (or what authority it does possess is in dispute with any government or any agency thereto), all traffic authority and foreign government approvals/authority, as are necessary to fly the scheduled or required routes; or
Foreign government or foreign authorities' action restricts the use of pilots on the Master Seniority List; or
An emergency exists that precludes the Company from utilizing Company aircraft. In the event the Company wet leases aircraft under this provision, the Vice President, Flight Operations, shall notify the Association and crew force through an FCIF as soon as practicable. Routine maintenance problems shall not constitute an emergency.
The utilization of pilots on the Master Seniority List is not, or does not continue to be, economically or operationally feasible given the low freight volume, treaty or regulatory restrictions on the right of the Company to move freight through or beyond certain countries or cities, or remoteness or isolation of the served city to the existing Federal Express international route structure.
Should the configuration of a given shipment (certain satellites, aircraft, helicopters, etc.) preclude the Company from using one of its own aircraft, then the Company may enlist the services of another carrier to handle that shipment on a sub-contract basis.
The Company shall notify the Association quarterly concerning all wet-leasing done during the period. The Company shall identify the wet lease operation, the trip(s) flown by same, and the reason and effect on Federal Express crewmembers.
The restrictions on operations of Company revenue flights contained in Section 1.B. and the restrictions on the Company's parent and affiliates contained in Section 1.C. of this Agreement shall expire completely and without possibility of continuation one day prior to the earliest of the following:
the notification by the National Mediation Board that, despite its best efforts to bring about an amicable settlement through mediation, the parties have failed to reach agreement;
the satisfaction of any of the legal conditions precedent to the Association's engagement in a job action including initial approval by the Association Board of Directors for such an action;
the commencement of the lawful self-help period following exhaustion of the procedures for changing the comprehensive bargaining agreement provided in the Railway Labor Act.
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