I hope all the yes voters think about this.
10-19-2015, 09:16 AM
#1
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I hope all the yes voters think about this.
While this was a fairly generous contract offer -- and FedEx's pilots were already near the top of the industry in pay -- FedEx's management stated that it won't impact the company's projected profit growth trajectory. Other productivity-enhancing initiatives will more than offset the pilots' higher pay.
10-19-2015, 09:24 AM
#3
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Originally Posted by jetstar1
While this was a fairly generous contract offer -- and FedEx's pilots were already near the top of the industry in pay -- FedEx's management stated that it won't impact the company's projected profit growth trajectory. Other productivity-enhancing initiatives will more than offset the pilots' higher pay.
How do you think they can generate savings for the pay rates alone within the CBA only? Name the new provisions that could save, say 1 billion, over 6 years?
10-19-2015, 09:38 AM
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To my knowledge, our Block 1 Rep, among others via the Q&A, have been requesting the actual monetary value of the 'gained efficiencies' the company got through our 'gives', to really gauge the true number of the TA.
$1.67B - gained efficiencies = actual value of TA. That's the context in which I read the CFO's commentary on the Motley Fool interview.
$1.67B - gained efficiencies = actual value of TA. That's the context in which I read the CFO's commentary on the Motley Fool interview.
10-19-2015, 10:32 AM
#6
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The gained efficiencies of the age change alone, almost pays for what the NC is saying we gained in this TA. And, the lack of A Plan improvement, increased retirement healthcare costs, etc. will drive more to stay.
Company saves $130,000 per year/per pilot for every year a pilot stays after age 60.
So, say 1700 guys retire at age 65, in the next 8 years...
$130,000 X 5 X 1700 = $1.10 Billion
Company saves $130,000 per year/per pilot for every year a pilot stays after age 60.
So, say 1700 guys retire at age 65, in the next 8 years...
$130,000 X 5 X 1700 = $1.10 Billion
10-19-2015, 01:14 PM
#7
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I do like to see that in the retirement summary info I got recently, our retirement funds are 3 Billion over funded. Just a little amount that adds up to $666,666 for each of our 4500 pilots. I'd say the MEC is right. I don't see how they could pay for an A fund increase
. It looks like the company expected to increase the requirements so they've been over funding. Since we did not press hard enough to get to use those funds, now they have a surplus.
Now they can use that extra 3 Billion to buy back more stock. In 2014 when they wanted to buy back stock, they just floated 4 Billion in 4% corporate bonds to pay for it. This is much easier for them than paying 4%. Just get the pilots to fund the stock buybacks.
. It looks like the company expected to increase the requirements so they've been over funding. Since we did not press hard enough to get to use those funds, now they have a surplus. Now they can use that extra 3 Billion to buy back more stock. In 2014 when they wanted to buy back stock, they just floated 4 Billion in 4% corporate bonds to pay for it. This is much easier for them than paying 4%. Just get the pilots to fund the stock buybacks.
10-19-2015, 06:53 PM
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Originally Posted by Busboy
The gained efficiencies of the age change alone, almost pays for what the NC is saying we gained in this TA. And, the lack of A Plan improvement, increased retirement healthcare costs, etc. will drive more to stay.
Company saves $130,000 per year/per pilot for every year a pilot stays after age 60.
So, say 1700 guys retire at age 65, in the next 8 years...
$130,000 X 5 X 1700 = $1.10 Billion
Company saves $130,000 per year/per pilot for every year a pilot stays after age 60.
So, say 1700 guys retire at age 65, in the next 8 years...
$130,000 X 5 X 1700 = $1.10 Billion
BTW your math is not accurate, it would be accurate if every single pilot in your example had at the time the age changed 1) 25 YOS and 2) achieved their high five. We know that is true for many but not anywhere close to all and as such there are now people accruing more YOS and getting to or at least a higher FAE which results in a large amount of extra pension payments over the lifetime of those pilots. Is it a net increase over the potential savings of not paying pensions for up to 5 years? not likely but certainly not a billion dollar nugget.
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