Contract 2018
08-23-2018, 06:44 PM
#11
Gets Weekends Off
Joined APC: Sep 2011
Position: lav dumper
Posts: 707
For the other side to see:
23 August 2018
For some time now, XJT ALPA has had concerns about the solvency of our current long-term disability (LTD) plan based on the way the program operates and the ever-shrinking number of pilots enrolled in and paying into the program. The current LTD plan that we enjoy at ExpressJet is structured not as an insurance plan, but instead as a trust fund that is paid into by both the pilots (45%) and the company (55%). Without pilot participation, there is no income into the fund.
As our pilot force has decreased, the income into the fund has also decreased. At the same time, the number of pilots receiving benefits from the plan has increased. Over the past few years, as the number of participating pilots decreased, premiums were increased to ensure the fund can pay out the benefits for current and future claims. Unfortunately, the premium increases have resulted in even more pilots opting out of the plan, which in turn requires even higher premiums. The cycle repeats until eventually (in the very near future) there will not be enough pilots paying into the fund to be able to pay the current beneficiaries. Your MEC has concluded that our current LTD plan will no longer be able to remain solvent.
For months your XJT Retirement and Insurance Committee, along with ALPA national and other resources, has been evaluating our plan and considering ways to address the issue. In the recent pilot survey, we asked a question about potential changes to the LTD program. We asked the survey question the way we did to understand, if we needed to make a change to the plan, whether the pilot group would be more interested in a zero-pilot-cost plan with a shorter term (similar to the current ASA plan and that of many other carriers) and an option to purchase supplemental coverage or a plan similar to our current plan with a longer coverage period in which the pilot pays a large percentage of the premium. The survey was intended to provide the committee with guidance as to which type of replacement plan to pursue.
As you know, we currently have one of the best LTD plans in the entire U.S. airline industry, but unfortunately our research has revealed that plans like ours, which provide benefits for "own occupation" until age 65, are no longer offered due to unsustainability. As a result, we have no choice but to change our current LTD plan to one with shorter coverage (at no cost to the pilot) with options for additional supplemental coverage.
To be absolutely clear, this required change has nothing to do with contract negotiations. Regardless of anything that happens with our negotiations, this change will have to take place because the fund is simply going to run out of money based on the number of pilots on LTD vs. the number of pilots paying into the program. The current program will simply become completely unaffordable for those paying into it. Once a replacement plan is selected and approved by the company and the association, our next goal will be to protect those pilots currently out on LTD the best we can for as long as we can.
This purpose of this message is to educate you on the current issues with our LTD plan so that, as we move through negotiations, this change does not get misinterpreted as a concession. We will keep you informed as we continue to search for a plan that is best for our pilot group.
23 August 2018
For some time now, XJT ALPA has had concerns about the solvency of our current long-term disability (LTD) plan based on the way the program operates and the ever-shrinking number of pilots enrolled in and paying into the program. The current LTD plan that we enjoy at ExpressJet is structured not as an insurance plan, but instead as a trust fund that is paid into by both the pilots (45%) and the company (55%). Without pilot participation, there is no income into the fund.
As our pilot force has decreased, the income into the fund has also decreased. At the same time, the number of pilots receiving benefits from the plan has increased. Over the past few years, as the number of participating pilots decreased, premiums were increased to ensure the fund can pay out the benefits for current and future claims. Unfortunately, the premium increases have resulted in even more pilots opting out of the plan, which in turn requires even higher premiums. The cycle repeats until eventually (in the very near future) there will not be enough pilots paying into the fund to be able to pay the current beneficiaries. Your MEC has concluded that our current LTD plan will no longer be able to remain solvent.
For months your XJT Retirement and Insurance Committee, along with ALPA national and other resources, has been evaluating our plan and considering ways to address the issue. In the recent pilot survey, we asked a question about potential changes to the LTD program. We asked the survey question the way we did to understand, if we needed to make a change to the plan, whether the pilot group would be more interested in a zero-pilot-cost plan with a shorter term (similar to the current ASA plan and that of many other carriers) and an option to purchase supplemental coverage or a plan similar to our current plan with a longer coverage period in which the pilot pays a large percentage of the premium. The survey was intended to provide the committee with guidance as to which type of replacement plan to pursue.
As you know, we currently have one of the best LTD plans in the entire U.S. airline industry, but unfortunately our research has revealed that plans like ours, which provide benefits for "own occupation" until age 65, are no longer offered due to unsustainability. As a result, we have no choice but to change our current LTD plan to one with shorter coverage (at no cost to the pilot) with options for additional supplemental coverage.
To be absolutely clear, this required change has nothing to do with contract negotiations. Regardless of anything that happens with our negotiations, this change will have to take place because the fund is simply going to run out of money based on the number of pilots on LTD vs. the number of pilots paying into the program. The current program will simply become completely unaffordable for those paying into it. Once a replacement plan is selected and approved by the company and the association, our next goal will be to protect those pilots currently out on LTD the best we can for as long as we can.
This purpose of this message is to educate you on the current issues with our LTD plan so that, as we move through negotiations, this change does not get misinterpreted as a concession. We will keep you informed as we continue to search for a plan that is best for our pilot group.
08-23-2018, 07:22 PM
#12
Gets Weekends Off
Joined APC: Oct 2016
Posts: 592
Originally Posted by andili61
To me the math is simple. Everyone at this company makes this year "x" amount of money plus 10,000 dollars bonus. Now take the bonus apart and divide it by 12 months, then divide it by 75 (minimum guarantee) and it gives you 11.11 per hour. ((10000÷12)÷75). So what it means to me is that if we were offered any amount less than 11 per hour increased, we would be making less money the following years than this year. That's without considering any benefit that the company may want us to give up, and / or, any concession they may want us to take. At a minimum, we should be offered 11 dollar across the board, and no concessions. If they want us to give up something, then it should be more than 11 and we can talk.
08-23-2018, 07:26 PM
#13
Gets Weekends Off
Thread Starter
Joined APC: May 2017
Posts: 142
Originally Posted by andili61
To me the math is simple. Everyone at this company makes this year "x" amount of money plus 10,000 dollars bonus. Now take the bonus apart and divide it by 12 months, then divide it by 75 (minimum guarantee) and it gives you 11.11 per hour. ((10000÷12)÷75). So what it means to me is that if we were offered any amount less than 11 per hour increased, we would be making less money the following years than this year. That's without considering any benefit that the company may want us to give up, and / or, any concession they may want us to take. At a minimum, we should be offered 11 dollar across the board, and no concessions. If they want us to give up something, then it should be more than 11 and we can talk.
08-24-2018, 04:20 AM
#14
Gets Weekends Off
Joined APC: May 2013
Position: Flaps & Ldg Gear Executive Director
Posts: 100
Originally Posted by Arliss
We made more than that in retention. It was $13500 for FOs plus $1500 profit sharing, $15000 total. So it should be $16.67 additional per hour at least.
08-24-2018, 02:09 PM
#16
Gets Weekends Off
Joined APC: Oct 2016
Posts: 592
Originally Posted by andili61
I guess you're counting the payout done at the beginning of the year for staying up to December 31. If so, yes you're right; however, for year pay purposes we are being paid 10k for this year. Tax purposes though, we made 15k as you stated. I guess you can see this issued in different ways, but at the end we all should agree that no concessions must be part of the contract negotiation.
08-24-2018, 03:45 PM
#18
On Reserve
Joined APC: Jan 2013
Posts: 21
Originally Posted by afterburn81
I’ve been told to not expect anything close to 9E. From management folk.
I heard from a CP that the company was investing $16m in this new contract. That’s $10k per pilot...which is just the retention bonus shuffled.
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08-24-2018, 07:56 PM
#20
Remember the Cant...
Joined APC: Aug 2010
Position: E145
Posts: 132
Originally Posted by afterburn81
I’ve been told to not expect anything close to 9E. From management folk.
Heard that we can expect to be in the top 3 best paid. Didn’t specify single or dual class. Again, management visit.
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