Pay Attention - Just Another Example of....
 

December 31 Retiree Final Pay Period Issue: FedEx management recently denied our grievance regarding compensation of vacation time for pilots who retire December 31.

This grievance covers pilots who retired on December 31, 2016 and 2017, as well as any future December 31 retirees.

After many years of compensating pilots in January of the year (January 15) following a pilot's December 31 retirement, management began to pay that compensation on December 30—the day before the pilot's retirement date.

In doing so, management avoided paying out the 8% DC contribution on those earnings and created other negative consequences for our pilots (e.g. income tax bracket issues and Medicare premium issues for some).

There was no advance notice of this change nor has there been a justifiable explanation. The case is set for arbitration on May 22-23, 2018

This is why they try to get you to retire December 31 instead of January 1.

Part of the way they recoup the cost of the contract in six months.

We go played, again.

We are so dumb!!

So,
in the past People retired Dec 31st and the vacation time was paid Mid-January.

Mgt arbitrarily changed that payment to an earlier date....and that's a Result of us "go played, again"

In the past, people retired throughout the year, many waiting until the middle of the 10th month in order to accrue a full vacation bank for the following year, and vacation buy-back was paid AFTER retirement.

We, along with management, created a powerful monetary incentive to extend retirement through "1 MORE PEAK!" relying on past practice instead of tight language, and The Company found another way to take advantage of loose (or non-existant) CBA language.

And we're shocked.






.

I’m worried about the potential variable benefit retirement plan and how we always seem to be playing checkers when the company is playing chess. Retirement is too important for this loose language problem we always seem to have.

If the variable benefit retirement numbers don’t have a 130k floor, don’t harm any of the pilot group—especially the middle years pilots as I hear are the least benefitted, and have spectacular upside numbers, I just can’t get over the risk we will assume and the gamesmanship the company will do with our language to save $$.

I’m very, very leery of the train that seems to be rolling right along. I’m willing to be educated further and look at numbers, but I’m worried we are potentially getting played.

Raptor - I share you sentiments exactly. Why the sell job? Why negotiate outside of normal contract talks? Who wins....who loses?

We may need a very aggressive campaign to combat this effort, and as a minimum, allow those of us that are unsure to continue in the existing plan.

MEC - Thanks for your "help", but no thanks. I made my retirement decision when I was hired and will be just fine without your assistance. Stop helping......because your killing me.

Again, people in the Past retired during CY XX and were paid, the year after.

People retired in October, and were paid for their vacation January 15th.
I'd venture a guess that at least 1 Person retired after CBA 2015 was implemented during CY 2015 and was paid their vacation January 15th, 2016.

And then, for Retirees in 2016 and 17, management moved the payment date up.
And we're fighting that, think Past Practice would support our efforts in this battle.
But time will tell

(I want to say California always required payment by the end of the year, but I could be mistaken)