Real Dollar Benefit and why I am NO vote
#1
Gets Weekends Off
Thread Starter
Joined APC: Jul 2007
Position: MD-11
Posts: 395
Real Dollar Benefit and why I am NO vote
Just a simple monetary analysis of the benefit of this TA in real dollars for the first year puts this into some perspective:
Running the numbers, I find the following:
10% Pay raise $17200
1% B-Fund Bump 1700
Bonus 24000
Savings in Travel Bank 3000
10 cent increase per diem 220
Net Benefit first year $46120
Less costs:
Taxes $14420
ALPA Dues paid last 4yrs 13072
Inflation 922
Total costs $28414
Net value of TA First Yr $17706
So essentially, not taking into account the increase in healthcare costs, the net value to me is $17706 for the first year. Quite an underwhelming value after four years of negotiating. And this doesn't address the many give backs or open ended clauses in the TA.
I'm a NO vote!
Running the numbers, I find the following:
10% Pay raise $17200
1% B-Fund Bump 1700
Bonus 24000
Savings in Travel Bank 3000
10 cent increase per diem 220
Net Benefit first year $46120
Less costs:
Taxes $14420
ALPA Dues paid last 4yrs 13072
Inflation 922
Total costs $28414
Net value of TA First Yr $17706
So essentially, not taking into account the increase in healthcare costs, the net value to me is $17706 for the first year. Quite an underwhelming value after four years of negotiating. And this doesn't address the many give backs or open ended clauses in the TA.
I'm a NO vote!
#2
Gets Weekends Off
Joined APC: Jul 2014
Posts: 296
And I asked this and I haven't heard much comment. Anyone look at the Union's what this contract is worth on the Union website?
I was just looking at the Alpa document on the Union website that describes what the TA is worth. I was looking at the retirement section. There is a part that says, "Total additional cash out the door"? Is the Union trying to say that the pay raises from DOS until 2021 for a WBCA that total $305.151 are part of a "retirement benefit? I thought the pay raises were to offset the cost of inflation. Is the Union really trying to sell the pay raises as a retirement increase
I was just looking at the Alpa document on the Union website that describes what the TA is worth. I was looking at the retirement section. There is a part that says, "Total additional cash out the door"? Is the Union trying to say that the pay raises from DOS until 2021 for a WBCA that total $305.151 are part of a "retirement benefit? I thought the pay raises were to offset the cost of inflation. Is the Union really trying to sell the pay raises as a retirement increase
#3
Gets Weekends Off
Thread Starter
Joined APC: Jul 2007
Position: MD-11
Posts: 395
Did some more number crunching and an NVP analysis.
Assumptions: 7% annual rate of return, 3% rate of inflation, 6 yrs.
Bonus is worth $18979 over six years
B-fund increase worth $14634 over six years
Pay increase (WB FO) worth $32150 after taxes over six years
Adding it all together, with interest, deducting taxes, rate of inflation, and ALPA dues for last four years, contract is worth $55282 over six years for an avg of $9213/yr., not including increased medical costs, and any give backs on class of service, or other reinterpreted clauses. YMMV!
Assumptions: 7% annual rate of return, 3% rate of inflation, 6 yrs.
Bonus is worth $18979 over six years
B-fund increase worth $14634 over six years
Pay increase (WB FO) worth $32150 after taxes over six years
Adding it all together, with interest, deducting taxes, rate of inflation, and ALPA dues for last four years, contract is worth $55282 over six years for an avg of $9213/yr., not including increased medical costs, and any give backs on class of service, or other reinterpreted clauses. YMMV!
#4
This is copied and pasted from Jetflyers Facebook page, from captain CT who has provided some in-depth, factual, unemotional analysis, section by section:
"Section 27 Insurance.
So I'm a buy-up plan kind of guy. I'm paying $208.10 a month now for that plan. Cost the same in '16. Goes up to $252 in '17, $277 in 18, and $304 in '19 (adios in '19).
I can live with those numbers.
Then I look at page 489 and see that my max out of pocket for the family went from $3450 to $9750.
Now let me spin that the way the 28% B-Fund was spun:
THAT IS A 182% INCREASE!
Takes a bite out of that not quite 3% a year pay increase.
Not saying that my share of the health costs should't go up. Just saying I need to consider the whole TA not just the flashy new pay rates".
"Section 27 Insurance.
So I'm a buy-up plan kind of guy. I'm paying $208.10 a month now for that plan. Cost the same in '16. Goes up to $252 in '17, $277 in 18, and $304 in '19 (adios in '19).
I can live with those numbers.
Then I look at page 489 and see that my max out of pocket for the family went from $3450 to $9750.
Now let me spin that the way the 28% B-Fund was spun:
THAT IS A 182% INCREASE!
Takes a bite out of that not quite 3% a year pay increase.
Not saying that my share of the health costs should't go up. Just saying I need to consider the whole TA not just the flashy new pay rates".
#5
Gets Weekends Off
Joined APC: Nov 2006
Position: 767 FO
Posts: 8,047
What ever you think about the per pilot cost increases for medical insurance you will have to pay just remember the company's increase will likely be 4 times as much per pilot. This vote will impact your quality of life, unfortunately not nearly as much as the vote for Obamacare you made in 2008.
#7
Gets Weekends Off
Joined APC: Nov 2013
Posts: 2,756
See, I'm not sure if that is correct. Maybe I can find the answer on the Q&A website. It's pretty confusing, because on page 488, it says a zero deductible, but that seems to refer only to pharmacy, mental health and substance abuse. Page 489 shows a max out of pocket in network for the rest of the expenses being $3,250 individual/$9,750 family. If you have a lot of expenses, or lab tests, that could be really expensive. My family tends to spend a great deal of money on lab tests, so this could be a very bad deal for us. No big deal for those who don't use medical benefits, but you certainly might not know when you'll need them.
#8
Gets Weekends Off
Joined APC: Nov 2013
Posts: 2,756
"So I'm a buy-up plan kind of guy. I'm paying $208.10 a month now for that plan. Cost the same in '16. Goes up to $252 in '17, $277 in 18, and $304 in '19 (adios in '19).
I can live with those numbers.
Then I look at page 489 and see that my max out of pocket for the family went from $3450 to $9750.
Now let me spin that the way the 28% B-Fund was spun:
THAT IS A 182% INCREASE!"
Okay, I reread the Q and A section, and I think I understand the confusion now. For the TA, the buy up deductible is still $0. However, the max out of pocket has a number on it. There isn't a max out of pocket number right now. I think I (and perhaps the person who wrote this) was confusing deductible with max out of pocket. The max out of pocket being now limited, is a positive change, unlike what I had thought, if I understand this correctly.
I can live with those numbers.
Then I look at page 489 and see that my max out of pocket for the family went from $3450 to $9750.
Now let me spin that the way the 28% B-Fund was spun:
THAT IS A 182% INCREASE!"
Okay, I reread the Q and A section, and I think I understand the confusion now. For the TA, the buy up deductible is still $0. However, the max out of pocket has a number on it. There isn't a max out of pocket number right now. I think I (and perhaps the person who wrote this) was confusing deductible with max out of pocket. The max out of pocket being now limited, is a positive change, unlike what I had thought, if I understand this correctly.
#9
Gets Weekends Off
Joined APC: Jul 2009
Posts: 1,224
What ever you think about the per pilot cost increases for medical insurance you will have to pay just remember the company's increase will likely be 4 times as much per pilot. This vote will impact your quality of life, unfortunately not nearly as much as the vote for Obamacare you made in 2008.