Can someone explain the scope penalty math?
06-16-2023 | 09:36 AM
#11
Where's my Mai Tai?
Joined: Aug 2006
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From: fins to the left, fins to the right
Outsourcing to ASL is a separate topic, to my knowledge. But as many have pointed out, international rules dont allow us to control that aspect of their planning. I have seen the suggestion that a mutual agreement between the union and the company can exist and be free of the RLA restrictions, but has any other company successfully negotiated something similar?
Scope question for you guys
06-16-2023 | 10:58 AM
#12
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Line Holder
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From: B767
I have some very serious problems with this TA. But I just want to make sure I understand Section 1…
If the company decided to start a bunch of wet leasing instead of hiring pilots, let’s say by wet leasing 100,000 block hours.
This means the company would have to payout $197,500,000 to the pilots. This comes out to $1,975/block hour paid to the pilots. That’s quite a penalty, and I don’t see how that would be financially advantageous for FedEx to furlough and then wet lease. Am I missing something here?
If the company decided to start a bunch of wet leasing instead of hiring pilots, let’s say by wet leasing 100,000 block hours.
This means the company would have to payout $197,500,000 to the pilots. This comes out to $1,975/block hour paid to the pilots. That’s quite a penalty, and I don’t see how that would be financially advantageous for FedEx to furlough and then wet lease. Am I missing something here?
06-16-2023 | 11:24 AM
#13
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I'm curious in the same way. A realistic example of furlough payments would be helpful.
I'm also curious what negative effects the company may face in terms of cost to re-qualify these furloughed pilots and any business losses due our inability to quickly adjust to an improving market (expected to happen in 2024). If the answer to that is, in fact, that it would always be more beneficial to the company to not bring those pilots back and continue wet-leasing then how does that scenario end?
I'm also curious what negative effects the company may face in terms of cost to re-qualify these furloughed pilots and any business losses due our inability to quickly adjust to an improving market (expected to happen in 2024). If the answer to that is, in fact, that it would always be more beneficial to the company to not bring those pilots back and continue wet-leasing then how does that scenario end?
06-16-2023 | 12:33 PM
#14
New Hire
Joined: Oct 2011
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From: Treading water in the pool.
Outsourcing to ASL is a separate topic, to my knowledge. But as many have pointed out, international rules dont allow us to control that aspect of their planning. I have seen the suggestion that a mutual agreement between the union and the company can exist and be free of the RLA restrictions, but has any other company successfully negotiated something similar?
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This is what UPS has negotiated… It’s an excerpt from their scope section of their 2016 contract.
All international flights presently conducted by IPA represented crewmembers will continue to be flown by such crewmembers. The Company will continually pursue additional route authority on a good faith basis. As the Company secures additional international route authority, it will take all reasonable steps to assure that such routes are flown by IPA crewmembers in accordance with this Agreement within two (2) bid periods of the date the route authority was granted.
06-16-2023 | 01:09 PM
#15
Gets Weekends Off
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Anyone know how many block hours we fly? If we fly 100,000 like the example, then our pilots would be paid almost double that in credit hours to fly the same block. So that's $200 million for a three man crew, a $2.5 million savings right off the bat. Then start deleting our training costs, idle reserves, employer contributions, hotels, airfare, maintenance, parts....
06-16-2023 | 01:39 PM
#17
Gets Weekends Off
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From: Reverse Apexed
06-16-2023 | 02:21 PM
#18
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From: FO
All we have is that someone’s friend, is friends with the vice chair and that they were told by this friend that the vice chair is concerned with the TA scope language.
So it’s like 3 degrees of separation. A little suspect. If he is so concerned I feel he should put it out there publicly.
I’m concerned to about the wording, but don’t exactly trust that someone’s friend, friend told them something.
06-16-2023 | 02:37 PM
#19
On Reserve
Joined: Sep 2007
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I need to go to law school first
Since I’m not a contract attorney I don’t understand most of the language and loopholes, but I get the impression that the company is going to announce a fleet plan and outsourcing plan after the contract is signed and we’ll be caught with our pants down.
06-16-2023 | 02:46 PM
#20
Banned
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God you are funny!
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