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Old 05-30-2020 | 08:05 AM
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Default Operation Early Out

A question for you contract hawks.

Is this sequence of events legal per PWA?

OBJECTIVE:
Get as many Delta pilots to participate in an early retirement program as possible

METHOD:

Steps-

1) Create the maximum incentive for the most number of pilots to retire early by undergoing a temporary and exaggerated process of demotion. Issue a displacement bid that begins by creating space for large scale downward progression by placing 2,500+ pilots in UNA status. Next, by forcing pilots to downgrade, move to 2nd and 3rd preference bases, and effecting QOL by downshifting seniority position. This shift would be presented as permanent, but in reality would quickly be followed up with the cancelling of many demotions through the use of targeted bid cancellations, cancelled training, and re-bids. Merely a pre-planned exercise. Cover for the quick re-bid would be provided by an "unexpected strengthening in demand".

2) Offer an early retirement package that allows pilots to now compare their NEW/TEMPORARY positions with the incentives of an early retirement package.

3)Once the election window has closed, quickly move to substantially reduce the logistical and financial costs of the previous bid by targeted bid cancellation, cancelled training, and re-bids.

Essentially, does the contract allow the company to pull off this pre-planned 3 step operation?

The company already ran a similar successful program with non-cons.

1) Get a massive payroll check from the government.
2) Double dip and incentivize non-cons to take unpaid leaves. Achieve this by downgrading workers job quality. They achieved this by reducing hours by 25% and promising that when those employees returned they would not be subject to 25% cut in hours. They also advertised the very generous unemployment benefits. They set up an in-house machine to assist employees with applying for unemployment. They explained that taking unpaid leaves would help prevent furloughs.
3) Rescind the offer of avoiding 25% cut in hours when they returned from leave.
4) Begin the process of furloughs by putting the onus on employees to take permanently leave programs and informing them that a 25% cut in hours as active employees would be ongoing.
5) Furlough/Paycuts


There are a rumored 6,500+ MDs. Junior Captain dropped by 3,000.
Was some of this gonna happen naturally with the drop in passenger demand? Definitely.

But is a large portion of this bid a ploy, a temporary exercise, that purposely exaggerates the level of demotion during a short window in which it serves the purpose of achieving a desired outcome?

The outcome being a large take rate on early retirements.
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Old 05-30-2020 | 08:15 AM
  #2  
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Originally Posted by mikea72580
A question for you contract hawks.

Is this sequence of events legal per PWA?

OBJECTIVE:
Get as many Delta pilots to participate in an early retirement program as possible

METHOD:

Steps-

1) Create the maximum incentive for the most number of pilots to retire early by undergoing a temporary and exaggerated process of demotion. Issue a displacement bid that begins by creating space for large scale downward progression by placing 2,500+ pilots in UNA status. Next, by forcing pilots to downgrade, move to 2nd and 3rd preference bases, and effecting QOL by downshifting seniority position. This shift would be presented as permanent, but in reality would quickly be followed up with the cancelling of many demotions through the use of targeted bid cancellations, cancelled training, and re-bids. Merely a pre-planned exercise. Cover for the quick re-bid would be provided by an "unexpected strengthening in demand".

2) Offer an early retirement package that allows pilots to now compare their NEW/TEMPORARY positions with the incentives of an early retirement package.

3)Once the election window has closed, quickly move to substantially reduce the logistical and financial costs of the previous bid by targeted bid cancellation, cancelled training, and re-bids.

Essentially, does the contract allow the company to pull off this pre-planned 3 step operation?

The company already ran a similar successful program with non-cons.

1) Get a massive payroll check from the government.
2) Double dip and incentivize non-cons to take unpaid leaves. Achieve this by downgrading workers job quality. They achieved this by reducing hours by 25% and promising that when those employees returned they would not be subject to 25% cut in hours. They also advertised the very generous unemployment benefits. They set up an in-house machine to assist employees with applying for unemployment. They explained that taking unpaid leaves would help prevent furloughs.
3) Rescind the offer of avoiding 25% cut in hours when they returned from leave.
4) Begin the process of furloughs by putting the onus on employees to take permanently leave programs and informing them that a 25% cut in hours as active employees would be ongoing.
5) Furlough/Paycuts


There are a rumored 6,500+ MDs. Junior Captain dropped by 3,000.
Was some of this gonna happen naturally with the drop in passenger demand? Definitely.

But is a large portion of this bid a ploy, a temporary exercise, that purposely exaggerates the level of demotion during a short window in which it serves the purpose of achieving a desired outcome?

The outcome being a large take rate on early retirements.
I think many assume your last sentence was one of the main goals of this MOAD s—- sandwich. Since CR effectively stated they were built with “flexibility” in mind... I’d say they can absolutely get away with it. Especially when they say the ER package will be based on April 1 pay rates like the non-cons. 🤷‍♂️
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Old 05-30-2020 | 08:40 AM
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Originally Posted by mikea72580
A question for you contract hawks.

Is this sequence of events legal per PWA?

OBJECTIVE:
Get as many Delta pilots to participate in an early retirement program as possible

METHOD:

Steps-

1) Create the maximum incentive for the most number of pilots to retire early by undergoing a temporary and exaggerated process of demotion. Issue a displacement bid that begins by creating space for large scale downward progression by placing 2,500+ pilots in UNA status. Next, by forcing pilots to downgrade, move to 2nd and 3rd preference bases, and effecting QOL by downshifting seniority position. This shift would be presented as permanent, but in reality would quickly be followed up with the cancelling of many demotions through the use of targeted bid cancellations, cancelled training, and re-bids. Merely a pre-planned exercise. Cover for the quick re-bid would be provided by an "unexpected strengthening in demand".

2) Offer an early retirement package that allows pilots to now compare their NEW/TEMPORARY positions with the incentives of an early retirement package.

3)Once the election window has closed, quickly move to substantially reduce the logistical and financial costs of the previous bid by targeted bid cancellation, cancelled training, and re-bids.

Essentially, does the contract allow the company to pull off this pre-planned 3 step operation?

The company already ran a similar successful program with non-cons.

1) Get a massive payroll check from the government.
2) Double dip and incentivize non-cons to take unpaid leaves. Achieve this by downgrading workers job quality. They achieved this by reducing hours by 25% and promising that when those employees returned they would not be subject to 25% cut in hours. They also advertised the very generous unemployment benefits. They set up an in-house machine to assist employees with applying for unemployment. They explained that taking unpaid leaves would help prevent furloughs.
3) Rescind the offer of avoiding 25% cut in hours when they returned from leave.
4) Begin the process of furloughs by putting the onus on employees to take permanently leave programs and informing them that a 25% cut in hours as active employees would be ongoing.
5) Furlough/Paycuts


There are a rumored 6,500+ MDs. Junior Captain dropped by 3,000.
Was some of this gonna happen naturally with the drop in passenger demand? Definitely.

But is a large portion of this bid a ploy, a temporary exercise, that purposely exaggerates the level of demotion during a short window in which it serves the purpose of achieving a desired outcome?

The outcome being a large take rate on early retirements.
There's certainly a reason they seemingly went against the more sensible sequence of offering early outs before a massive displacement bid.
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Old 05-30-2020 | 08:44 AM
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Originally Posted by clear4approach
There's certainly a reason they seemingly went against the more sensible sequence of offering early outs before a massive displacement bid.
According to JL he wanted us to know our "options".
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Old 05-30-2020 | 09:24 AM
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I believe they look at ERP at giving away money and bad optics. Displace the living crap out of us, furlough, encourage voluntary early retirements, then see what shakes out. If you really don't care what we think, and they don't. I'd do they same thing.
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Old 05-30-2020 | 11:07 AM
  #6  
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This is exactly their strategy. Plus the additional cost savings using the “flexibility” in the contract to push folks to lower paying categories in the meantime.

This is the negotiating partner we have. And Ed wants us to have trust in them...
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