I'm with you 100% on this one thug.

Wow,

I can't believe so many are ready to condemn/blame the pilots without knowing all the facts. So let's throw out a scenario. One of our own goes to HKG, signs document stating they and their spouse have moved to HKG. I'm not really sure of what other stipulations they agree to on that document except tax equalization(in essence turning over their tax benefits pertaining to foreign earned income exclusion to the company). The spouse does indeed live with Fedex pilot in HKG. However, the spouse commutes to the US to work. Sort of like our guys living in one state and commuting to Memphis for week on-week off. When not working, the spouse returns to HKG.

In the above scenario, it appears the pilot has abided by the document to receive housing allowance, no? Only one problem. Apparently, the fact that the spouse is based in the US disallows the couple from the foreign earned income exclusion. Even if that spouse's business was predominantly in another country(Even if in Hong Kong). Therein lies a problem, the company wants the tens of thousands of dollars they would get back a year for the foreign earned income exclusion. Now they may not. Did the document spell this out? Even if it did, how many folks out there are so sure they are following the tax code and filing certain deductions properly, only to find out during an audit they were incorrect?

Money magazine previously put out yearly scenarios of a family filing with numerous deductions. They sent it out for filing to 100 different tax preparers only to get 100 different payments owed/refunds due.

The pilots in HKG deserve to be heard. They don't deserve the condemnation that many are hurling at them without knowing the facts. Many, I'm guessing know little about the tax consequences while working and living abroad. It reminds me of so many crews I heard state they were voting for the FDA LOA because the $2700 offered was more than the folks in Subic were getting. Geez! They would continue by stating the MEC says it is the best we were going to get.

Now BM is stating the "facts" and making it sound as if our guys are being offered the deal of a lifetime for their "wrongdoings." Maybe, just maybe, his side of the story may be "leaning" a tad to one side...maybe.

Exactly why some of us told the union what the company "wants" is for pilots to qualify for the foreign income exclusion. But they are not "telling" us to qualify for the foreign income exclusion and there will be trouble. The union was not impressed. Sounds like they still arent.

This story does not seem the type to be heard by either an arbitrator or judge. Probably the proper venue would be the court of public opinion. It sounds like a great human interest story that would run great on CNN, MSNBC, CNBC, Bloomberg, FOX, BBC. I have no doubt a company spokesman explain the details how well the FedEx pilots based in Hong Kong are in comparison to other expats working there. It would also be interesting a how they would explain the problem with the spouse that lives in Hong Kong but commutes back to the States for their job. Sounds to me like a huge public relations problem.

And, it is comical how voluntary vacation cancellation is being asked for the L seat. You all in HKG keep a mirror handy! ;) Remember that MEM will never be able to affect change. It is usually the outstations. We have a fair history of that.

You're kidding right? Who gives a rats arse between the comparison of Fedex pilots to other expats? Unless of course you want comparisons for future contract talks for improving our FDA's. I'm all for that. Unlike our past NC chairman BC...but I digress. However, we're now talking about pilot's livelihoods. Are those other expats getting fired? NO! "Court of public opinion?" I think not. The IRS codes are not affected by public opinion. Next time you get audited, try writing your local paper or contacting the local media.

More than twenty five years ago a group of Tiger pilots purchased homes and lived abroad. They flew international trips, and therefore worked outside of the US. Yes, they sometimes transited the states, however, they spent less than 30 days in the US per year. Important to meet qualifications. They claimed the foreign earned income exclusion. After several years of doing so, they were audited, and you guessed it, they lost their appeal.

One of those pilots, Neville Huglemeyer(sp) was forced to work as long as he could maintain his medical. He past away a year ago, but he had worked well into his seventies. He was a great guy. But that and public support had no affect on his "obligation" to repay the IRS the hundreds of thousands of dollars they claimed he owed. Of course, he was given the option to go to jail.

Foxhunter, the scenario I gave was just one. Each of the other pilots stories are similar, but certainly not the same. And for those of you who think there are only the 5 pilots, a word of caution. There are dozens who are being looked at. If you have buddies in HKG, ask them, don't take my word.

Again, the problem is with tax equalization, as the company seems to interpret it. The company now has a financial vested interest. They are no longer in just the freight moving business. They are now venturing into the IRS code enforcement business. Never a good thing. The problem appears to be they wanted the pilots to move their families. Most did. But now they want them to abide by the IRS guidelines to ensure they get the bennies for the foreign earned income exemption. I don't believe that was part of the agreement. Perhaps someone from one of the FDA's could enlighten us. I would love to see the agreement the company has the pilots sign. But until then, I wish them all the best. My heart goes out to them and their families. I wish many on this forum would, as a minimum, stop condemning them.

That's all I have to say bout that.

Well said, it seems as if there are a few "it doesn't affect me" people on this forum. The reality is reach out to your HKG friends and find out what's really going on. It's not pretty at all.

The agreement is available for all FDX pilots to read on pilot.fedex.com

Contract Administration - "Signed FDA Agreement" (link to .pdf document) - on left side of Contract Admin home page

The full FDA LOA is also available on the same page.

Underdog, for some reason I didn't interpret FH's post the same way that you did, because it seemed to me that he was saying that the Hong Kong guys' story, if told, would put a lot of pressure on the company to explain just exactly where these guys went wrong. It didn't seem to me that he was in any way, either passing judgement on them or condemning them. However, I could be wrong.... I do believe that these guys will get their turn in front of an arbitrator, who will hopefully attempt to read and understand the LOA, etc, and then find that because it's so screwed up, give these guys their jobs back, with back benefits, if for no other reason than: the poor wording; expectations; and company interpretations of the LOA.

JJ