Summary of Class Action against ALPA
05-09-2016, 05:06 PM
#1
Banned
Thread Starter
Joined APC: May 2016
Posts: 62
Summary of Class Action against ALPA
Dear Fellow Pilots,
I want to answer some important questions that have been asked concerning the Class Action lawsuit.
First, I speak for myself in saying that I could not retire from this Company and keep all of the information which I and others had gathered, just let it be swept under the rug, when the tens of millions of dollars we pay in dues every year, and our quality of life and our future contracts were at stake. My dedication is to the pilot group in this lawsuit, not to ALPA. “Hope for change” is not enough.
- I will add that all of the four named plaintiffs are still dedicated union members, as we are sure you are as well.
The lawsuit filing date: Filed on April 19, 2016.
The lawsuit is well written and lays out “the story” of ALPA’s breaches of its Duty of Fair Representation. It can be read in approximately 15 minutes. Please take the time to read it.
http://static.politico.com/b1/9b/97a...on-lawsuit.pdf
Please forward it to your fellow pilots so that they can make their own evaluation.
We need your support to fund this Class Action lawsuit on behalf of all FedEx pilots! We are asking for your $500 contribution. All contributions will be kept confidential.
A bank account will be established this week to make direct deposits or transfers. Or, send contributions to:
Payable to: FedEx Pilots Action Fund, LLC
Send to: 2809 Kirby Pkwy, Suite 116
#116
Memphis TN 38119
Please message me with any other questions, and we will keep you updated.
I speak for myself and the other named plaintiffs in stating that the Truth must and will come out, and that there must be Accountability for actions.
Sincerely,
The Named Plaintiffs
Stephen Valdez
Jeffrey Ware
Ruben Freyre
Armando Castroverde
I want to answer some important questions that have been asked concerning the Class Action lawsuit.
First, I speak for myself in saying that I could not retire from this Company and keep all of the information which I and others had gathered, just let it be swept under the rug, when the tens of millions of dollars we pay in dues every year, and our quality of life and our future contracts were at stake. My dedication is to the pilot group in this lawsuit, not to ALPA. “Hope for change” is not enough.
- I will add that all of the four named plaintiffs are still dedicated union members, as we are sure you are as well.
The lawsuit filing date: Filed on April 19, 2016.
The lawsuit is well written and lays out “the story” of ALPA’s breaches of its Duty of Fair Representation. It can be read in approximately 15 minutes. Please take the time to read it.
http://static.politico.com/b1/9b/97a...on-lawsuit.pdf
Please forward it to your fellow pilots so that they can make their own evaluation.
We need your support to fund this Class Action lawsuit on behalf of all FedEx pilots! We are asking for your $500 contribution. All contributions will be kept confidential.
A bank account will be established this week to make direct deposits or transfers. Or, send contributions to:
Payable to: FedEx Pilots Action Fund, LLC
Send to: 2809 Kirby Pkwy, Suite 116
#116
Memphis TN 38119
Please message me with any other questions, and we will keep you updated.
I speak for myself and the other named plaintiffs in stating that the Truth must and will come out, and that there must be Accountability for actions.
Sincerely,
The Named Plaintiffs
Stephen Valdez
Jeffrey Ware
Ruben Freyre
Armando Castroverde
Last edited by ClassActionALPA; 05-09-2016 at 05:42 PM. Reason: added text and link
05-09-2016, 05:06 PM
#2
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Thread Starter
Joined APC: May 2016
Posts: 62
What exactly will we gain by suing?
Question 1: What exactly will we gain by suing?
Answer: Accountability and Damages for ALPA’s breaches of its Duty of Fair Representation. The lawsuit is demanding a jury trial to gain accountability and damages for the factual allegations of:
1) Pay rates - ALPA misrepresented that we needed only an 8% pay rate raise on November 2, 2015 to equal a 3% slope from our last pay raise in March 2012, and that we were receiving 10%. When
in fact, an 11.46% pay raise was required to equal the 3% slope. The November 2, 2015 pay rate was the foundation for the follow-on pay raises. ALPA made this representation despite having actual knowledge of the shortfall in the pay rate scale prior to any representation. These damages are calculated at approximately $92 million.
2) Signing Bonus Shortfall - The TA Signing Bonus fell short of the same 3% slope, and also fell short of the “5% year-over-year” recapture stated by ALPA. ALPA made this representation despite
having actual knowledge of the shortfall in the signing bonus prior to any representation. These damages are calculated at approximately $13 million.
3) Retirement - ALPA consistently stated the fixes to retirement were “affordable” and “reasonable improvements” during the almost 5 years of negotiations. But in the very end game, just a few days before the TA was first presented to the MEC, the Company disclosed data concerning liabilities. The Negotiating Committee then reversed course about the affordability of the retirement fixes.
- Upon information and belief, the Negotiating Committee greatly exaggerated the liabilities provided by FedEx in order to get the MEC and the FedEx pilots as a whole to agree to the drastically lowered
retirement benefits, including no improvement in A Plan benefits, and pass the Tentative Agreement. The exact amount of the damages relating to retirement are unknown at this time.
4) Sick Leave Buy Back (SLB) - ALPA stated the maximum $110,000 Sick Leave Buy Back would be available to “any pilot on property… if they retire at age 60 or later” and that all FedEx pilots would
be able to “max out every component” of the Sick Leave Buyback, when in reality, only Wide Body Captains (40% of the crew force) will ever be able to reach the maximum. Retiring Narrow Body First
Officers will never receive any SLB money. The exact amount of damages relating to the SLB are unknown at this time.
5) Mismanagement of Your Dues - FedEx ALPA spent over $14.5 million dollars of our dues over the past 5 years of negotiations.
- In June to July 2015, the MEC realized we were down to only $1.2 million dollars remaining in our reserves to continue negotiations.
- In the very end game, the MEC “scrambled” to find out what was available from ALPA National’s Major Contingency Fund (MCF), known as ALPA’s “war chest”. Upon information and believe, when
FedEx ALPA asked for a $5 million dollar loan and access to the “war chest” to continue our negotiations, ALPA National required that we disclose our “books” prior to the loan being approved. ALPA
National does not approve our FedEx ALPA budgets.
- Upon information and believe, ALPA had discovered $1 million in missing monies, and we withdrew our request for a loan from the MCF.
- At the end of negotiations, our reserves were down to $260,000.
6) ALPA intentionally leaked the MEC Only Document to the FedEx pilots. This was a successful yet bad faith attempt to encourage the FedEx pilots to pressure their MEC voting members to send
the Tentative Agreement to a vote.
7) ALPA intentionally leaked the National Mediation Board’s confidential “self help” comment to the FedEx Pilots while the Tentative Agreement was up for ratification. This was a bad-faith
attempt to encourage ratification.
8) ALPA intentionally or recklessly refused to address the shortfalls in the Tentative Agreement on multiple occasions. ALPA was repeatedly informed of the shortfalls yet did nothing, despite
ALPA’s stated intent to get the FedEx pilots “accurate information.”
9) ALPA intentionally hushed dissenters of the new Tentative Agreement in a bad-faith attempt to get it ratified by refusing to let MEC members present dissenting opinions at road shows and not
posting any dissenting opinions of the Tentative Agreement on its website until the voting deadline was less than a month away.
10) ALPA intentionally or recklessly posted the total value gained by the Tentative Agreement as $200 million more in total and $15,000 more per pilot than it actually was. This was a bad-faith misrepresentation designed to encourage ratification.
The list of ALPA’s breaches of its Duty of Fair Representation are on pages 30-31 of the complaint.
Answer: Accountability and Damages for ALPA’s breaches of its Duty of Fair Representation. The lawsuit is demanding a jury trial to gain accountability and damages for the factual allegations of:
1) Pay rates - ALPA misrepresented that we needed only an 8% pay rate raise on November 2, 2015 to equal a 3% slope from our last pay raise in March 2012, and that we were receiving 10%. When
in fact, an 11.46% pay raise was required to equal the 3% slope. The November 2, 2015 pay rate was the foundation for the follow-on pay raises. ALPA made this representation despite having actual knowledge of the shortfall in the pay rate scale prior to any representation. These damages are calculated at approximately $92 million.
2) Signing Bonus Shortfall - The TA Signing Bonus fell short of the same 3% slope, and also fell short of the “5% year-over-year” recapture stated by ALPA. ALPA made this representation despite
having actual knowledge of the shortfall in the signing bonus prior to any representation. These damages are calculated at approximately $13 million.
3) Retirement - ALPA consistently stated the fixes to retirement were “affordable” and “reasonable improvements” during the almost 5 years of negotiations. But in the very end game, just a few days before the TA was first presented to the MEC, the Company disclosed data concerning liabilities. The Negotiating Committee then reversed course about the affordability of the retirement fixes.
- Upon information and belief, the Negotiating Committee greatly exaggerated the liabilities provided by FedEx in order to get the MEC and the FedEx pilots as a whole to agree to the drastically lowered
retirement benefits, including no improvement in A Plan benefits, and pass the Tentative Agreement. The exact amount of the damages relating to retirement are unknown at this time.
4) Sick Leave Buy Back (SLB) - ALPA stated the maximum $110,000 Sick Leave Buy Back would be available to “any pilot on property… if they retire at age 60 or later” and that all FedEx pilots would
be able to “max out every component” of the Sick Leave Buyback, when in reality, only Wide Body Captains (40% of the crew force) will ever be able to reach the maximum. Retiring Narrow Body First
Officers will never receive any SLB money. The exact amount of damages relating to the SLB are unknown at this time.
5) Mismanagement of Your Dues - FedEx ALPA spent over $14.5 million dollars of our dues over the past 5 years of negotiations.
- In June to July 2015, the MEC realized we were down to only $1.2 million dollars remaining in our reserves to continue negotiations.
- In the very end game, the MEC “scrambled” to find out what was available from ALPA National’s Major Contingency Fund (MCF), known as ALPA’s “war chest”. Upon information and believe, when
FedEx ALPA asked for a $5 million dollar loan and access to the “war chest” to continue our negotiations, ALPA National required that we disclose our “books” prior to the loan being approved. ALPA
National does not approve our FedEx ALPA budgets.
- Upon information and believe, ALPA had discovered $1 million in missing monies, and we withdrew our request for a loan from the MCF.
- At the end of negotiations, our reserves were down to $260,000.
6) ALPA intentionally leaked the MEC Only Document to the FedEx pilots. This was a successful yet bad faith attempt to encourage the FedEx pilots to pressure their MEC voting members to send
the Tentative Agreement to a vote.
7) ALPA intentionally leaked the National Mediation Board’s confidential “self help” comment to the FedEx Pilots while the Tentative Agreement was up for ratification. This was a bad-faith
attempt to encourage ratification.
8) ALPA intentionally or recklessly refused to address the shortfalls in the Tentative Agreement on multiple occasions. ALPA was repeatedly informed of the shortfalls yet did nothing, despite
ALPA’s stated intent to get the FedEx pilots “accurate information.”
9) ALPA intentionally hushed dissenters of the new Tentative Agreement in a bad-faith attempt to get it ratified by refusing to let MEC members present dissenting opinions at road shows and not
posting any dissenting opinions of the Tentative Agreement on its website until the voting deadline was less than a month away.
10) ALPA intentionally or recklessly posted the total value gained by the Tentative Agreement as $200 million more in total and $15,000 more per pilot than it actually was. This was a bad-faith misrepresentation designed to encourage ratification.
The list of ALPA’s breaches of its Duty of Fair Representation are on pages 30-31 of the complaint.
Last edited by ClassActionALPA; 05-09-2016 at 05:44 PM. Reason: Format
05-09-2016, 05:07 PM
#3
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Joined APC: May 2016
Posts: 62
Is the result purely financial?
Question 2: Is the result purely financial?
Answer: No. The results we also expect are Accountability for what happened over the almost last 5 years of negotiations, for current and future pilots at FedEx. “Hope for change” is not enough.
- We expect future representation from ALPA that is in line with the tens of millions of dollars we pay every year in dues.
- A conservative estimate of the amount of money paid in ALPA dues by FedEx pilots yearly, based on current pay rates, 1000 credit hours and 4190 pilots on the seniority list, is over $19.5 million dollars.
Answer: No. The results we also expect are Accountability for what happened over the almost last 5 years of negotiations, for current and future pilots at FedEx. “Hope for change” is not enough.
- We expect future representation from ALPA that is in line with the tens of millions of dollars we pay every year in dues.
- A conservative estimate of the amount of money paid in ALPA dues by FedEx pilots yearly, based on current pay rates, 1000 credit hours and 4190 pilots on the seniority list, is over $19.5 million dollars.
05-09-2016, 05:08 PM
#4
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Thread Starter
Joined APC: May 2016
Posts: 62
Will our Dues Increase?
Question 3: Don't we fund Fedex ALPA, so won't we be just draining any funds left in our ALPA account and need to increase dues to cover the short comings?
Answer: No. This lawsuit is against ALPA National. ALPA National will have to defend against this lawsuit. There will be no drain of our FedEx ALPA funds that we are aware of.
Additionally, in the $53 million dollar settlement of Brady vs. ALPA, Lee Moak, then ALPA National Chairman, made the following statements:
“Despite speculation, the facts are as follows:
- Your dues will not go up. In fact, your dues rate went down on January 1, 2014 as planned.
- There will be no assessment of our membership. You bear no personal liability for the settlement.
- The settlement will in no way impair or affect ALPA’s ability to continue its tireless advocacy on your behalf.”
Reference: Brady Info > Home
Answer: No. This lawsuit is against ALPA National. ALPA National will have to defend against this lawsuit. There will be no drain of our FedEx ALPA funds that we are aware of.
Additionally, in the $53 million dollar settlement of Brady vs. ALPA, Lee Moak, then ALPA National Chairman, made the following statements:
“Despite speculation, the facts are as follows:
- Your dues will not go up. In fact, your dues rate went down on January 1, 2014 as planned.
- There will be no assessment of our membership. You bear no personal liability for the settlement.
- The settlement will in no way impair or affect ALPA’s ability to continue its tireless advocacy on your behalf.”
Reference: Brady Info > Home
05-09-2016, 05:09 PM
#5
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Thread Starter
Joined APC: May 2016
Posts: 62
Who are our attorneys?
Question 4: Who are our attorneys?
Answer: Jacobson Press & Fields P.C., St. Louis, Missouri and BOURLAND HEFLIN ALVAREZ MINOR & MATTHEWS, PLC, Memphis, Tennessee.
- Allen Press and Joe Jacobson represented the TWA pilots in their Duty of Fair Representation lawsuit against ALPA National in Brady vs. ALPA. They proved what was considered would be extremely difficult
to prove.
I’ve met with them in St. Louis and I feel confident they are the right attorneys to represent us, and they have extensive experience with ALPA and this type of lawsuit. They feel we have a valid case and that there is
evidence of numerous beaches of ALPA’s Duty of Fair Representation, otherwise they would not represent us.
- Jacobson Press & Fields is also currently representing the Class Action lawsuit on behalf of owners of Volkswagen diesel vehicles in the state of Missouri for the German company's rigging of emissions technology
to pass air-quality tests.
Reference: Class-action suit filed on behalf of Missouri VW owners
- We’ve agreed to a set amount we will pay Jacobson Press & Fields in return for a contingent, so there is no “bottomless pit” to attorney fees.
- We’ve also agreed upon an attorney’s rate at 50% of their normal rate.
- We’ve also agreed that any attorney fees paid will be refunded to each pilot from the contingent, if there is a judgement or settlement for damages, subject to Court approval.
- In Brady vs. ALPA, the contributing pilots were refunded their contribution, in addition to their individual settlement payment.
With any lawsuit though, there is no guarantee of the outcome.
- BOURLAND HEFLIN ALVAREZ MINOR & MATTHEWS is a well respected Memphis law firm that has also dealt with these types of lawsuits and will used only for administrative matters which pertain to
Tennessee law.
Answer: Jacobson Press & Fields P.C., St. Louis, Missouri and BOURLAND HEFLIN ALVAREZ MINOR & MATTHEWS, PLC, Memphis, Tennessee.
- Allen Press and Joe Jacobson represented the TWA pilots in their Duty of Fair Representation lawsuit against ALPA National in Brady vs. ALPA. They proved what was considered would be extremely difficult
to prove.
I’ve met with them in St. Louis and I feel confident they are the right attorneys to represent us, and they have extensive experience with ALPA and this type of lawsuit. They feel we have a valid case and that there is
evidence of numerous beaches of ALPA’s Duty of Fair Representation, otherwise they would not represent us.
- Jacobson Press & Fields is also currently representing the Class Action lawsuit on behalf of owners of Volkswagen diesel vehicles in the state of Missouri for the German company's rigging of emissions technology
to pass air-quality tests.
Reference: Class-action suit filed on behalf of Missouri VW owners
- We’ve agreed to a set amount we will pay Jacobson Press & Fields in return for a contingent, so there is no “bottomless pit” to attorney fees.
- We’ve also agreed upon an attorney’s rate at 50% of their normal rate.
- We’ve also agreed that any attorney fees paid will be refunded to each pilot from the contingent, if there is a judgement or settlement for damages, subject to Court approval.
- In Brady vs. ALPA, the contributing pilots were refunded their contribution, in addition to their individual settlement payment.
With any lawsuit though, there is no guarantee of the outcome.
- BOURLAND HEFLIN ALVAREZ MINOR & MATTHEWS is a well respected Memphis law firm that has also dealt with these types of lawsuits and will used only for administrative matters which pertain to
Tennessee law.
05-09-2016, 05:14 PM
#6
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Joined APC: May 2016
Posts: 62
Will I receive Damages: I'm not a plaintiff?
Question 5: I’m not a named Plaintiff, so I will receive damages if they are judged or there is a settlement?
Answer: Yes - All FedEx Express pilots on the seniority list during the 2015 TA ratification are represented. If there is a judgement or settlement for damages, all of these pilots are included.
Answer: Yes - All FedEx Express pilots on the seniority list during the 2015 TA ratification are represented. If there is a judgement or settlement for damages, all of these pilots are included.
05-09-2016, 05:16 PM
#7
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Thread Starter
Joined APC: May 2016
Posts: 62
What will occur next?
Question 6: What will occur next?
Answer: ALPA National must now reply to the complaint by June 12, 2016. ALPA National asked for a 30 day extension from the original May 12th deadline and our attorneys agreed to this. The two Federal judges that are assigned to our case will then conduct a scheduling conference after ALPA replies to the complaint. At that time, and based on the judges’ ruling, a schedule will be entered for discovery, during which we will gather documents.
Answer: ALPA National must now reply to the complaint by June 12, 2016. ALPA National asked for a 30 day extension from the original May 12th deadline and our attorneys agreed to this. The two Federal judges that are assigned to our case will then conduct a scheduling conference after ALPA replies to the complaint. At that time, and based on the judges’ ruling, a schedule will be entered for discovery, during which we will gather documents.
Last edited by ClassActionALPA; 05-09-2016 at 05:56 PM.
05-09-2016, 05:19 PM
#8
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Thread Starter
Joined APC: May 2016
Posts: 62
Do you think money was left on the table?
Question 7: Do you think any money was left on the negotiating table?
Answer: On March 16, 2016, FedEx announced its:
“highest profit and margin results for any third quarter in segment history despite general softness in the global economy and industrial production, and while funding pay and benefit actions in the quarter in
the form of merit increases and higher benefits expense.”
You decide…
We need your support to fund this Class Action lawsuit on behalf of all FedEx pilots! We are asking for your $500 contribution. All contributions will be kept confidential.
A bank account will be established this week to make direct deposits or transfers. Or, send contributions to:
Payable to: FedEx Pilots Action Fund, LLC
Send to: 2809 Kirby Pkwy, Suite 116
#116
Memphis TN 38119
Please message me with any other questions, and we will keep you updated.
I speak for myself and the other named plaintiffs in stating that the Truth must and will come out, and that there must be Accountability for actions.
Sincerely,
The Named Plaintiffs
Stephen Valdez
Jeffrey Ware
Ruben Freyre
Armando Castroverde
Facebook Page: “Shortfall2015”
Website: Is under Construction and will be up soon.
Answer: On March 16, 2016, FedEx announced its:
“highest profit and margin results for any third quarter in segment history despite general softness in the global economy and industrial production, and while funding pay and benefit actions in the quarter in
the form of merit increases and higher benefits expense.”
You decide…
We need your support to fund this Class Action lawsuit on behalf of all FedEx pilots! We are asking for your $500 contribution. All contributions will be kept confidential.
A bank account will be established this week to make direct deposits or transfers. Or, send contributions to:
Payable to: FedEx Pilots Action Fund, LLC
Send to: 2809 Kirby Pkwy, Suite 116
#116
Memphis TN 38119
Please message me with any other questions, and we will keep you updated.
I speak for myself and the other named plaintiffs in stating that the Truth must and will come out, and that there must be Accountability for actions.
Sincerely,
The Named Plaintiffs
Stephen Valdez
Jeffrey Ware
Ruben Freyre
Armando Castroverde
Facebook Page: “Shortfall2015”
Website: Is under Construction and will be up soon.
05-09-2016, 05:24 PM
#9
The NeverEnding Story
Joined APC: Sep 2005
Posts: 7,511
Originally Posted by ClassActionALPA
3) Retirement - ALPA consistently stated the fixes to retirement were “affordable” and “reasonable improvements” during the almost 5 years of negotiations. But in the very end game, just a few days
before the TA was first presented to the MEC, the Company disclosed data concerning liabilities. The Negotiating Committee then reversed course about the affordability of the retirement fixes.
- Upon information and belief, the Negotiating Committee greatly exaggerated the liabilities provided by FedEx in order to get the MEC and the FedEx pilots as a whole to agree to the drastically lowered
retirement benefits, including no improvement in A Plan benefits, and pass the Tentative Agreement. The exact amount of the damages relating to retirement are unknown at this time.
before the TA was first presented to the MEC, the Company disclosed data concerning liabilities. The Negotiating Committee then reversed course about the affordability of the retirement fixes.
- Upon information and belief, the Negotiating Committee greatly exaggerated the liabilities provided by FedEx in order to get the MEC and the FedEx pilots as a whole to agree to the drastically lowered
retirement benefits, including no improvement in A Plan benefits, and pass the Tentative Agreement. The exact amount of the damages relating to retirement are unknown at this time.
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