MEC Summary of Nicolau Remedy [edit:AmEagle]
 

Fellow American Eagle Pilots:
As you are all now aware, this morning we received Arbitrator Nicolau’s remedy award. We have spent
the better part of today reviewing the award. While we strongly encourage you to read the award for
yourselves, we are now able to provide for you this initial bullet point summary:

1. 244 American Eagle pilots will transfer to AA with the following:
a. In determining their initial equipment, the Arbitrator’s opinion requires that their initial
equipment be determined no differently than the transfers that had previously occurred
under Letter 3.
b. Their initial pay scale will be determined by when they should have flowed to AA under
Arbitrator Nicolau’s initial award (October 2009). For example, if the pilot should have
transferred to AA in June of 2007 and actually transfers to AA in June of 2010, he will be
placed on the 4th
pay step upon his arrival at AA.
c. Their A‐Fund vesting will begin based on when they should have transferred to AA under
Arbitrator Nicolau’s initial award but their “time of service” for A‐Fund calculations won’t
begin until they actually arrive at AA. When a pilot retires from AA, his A‐Fund benefit is
determined by a calculation that includes his ‘final averaged earnings’ and his time of
service. There is also a vesting requirement in order to participate in the A‐Fund. Under the
award, these pilots will receive retroactive credit for vesting, but not for time of service.
d. Upon transfer to AA, pilots will have their B‐Plan fund retroactively credited at 11% of 73
hours per month at MD‐80 First Officer rates of pay. The applicable rate of pay will begin at
first step based on the date pilots would have transferred to AA under Arbitrator Nicolau’s
original award and increase one pay step for each year thereafter.
e. Their sick bank will be adjusted to reflect AA’s higher accrual and higher cap. Therefore,
pilots transferring to AA will transfer their sick bank hours and have additional hours to
reflect the appropriate level of the sick bank had the pilot transferred to AA under Arbitrator
Nicolau’s initial award.
f. Their vacation bank will be adjusted to reflect any higher accrual rate at AA had the pilot
transferred to AA under Arbitrator Nicolau’s initial award.

2. To determine the 244 pilots who will receive the items listed in paragraph 1 above, the most
senior 286 flow‐through pilots will be asked to decide whether or not they are willing to transfer
to AA under these provisions. Once 244 out of the 286 have been identified, that will constitute
the maximum number of pilots who will receive the transfer benefits listed in paragraph 1
above.

3. Once the 244 pilots from paragraph 2 have been identified, the most senior 35 will transfer to
AA in June of 2010. AA may accomplish this transfer in one or two training classes, but must
complete the transfer in the month of June.

4. Following the June transfer of the 35 most senior flow‐through pilots who accept transfer, AA will
offer recall to all of the pilots furloughed on February 28, 2010.

5. Once the most junior AA pilot furloughed on February 28, 2010 has been offered recall, all flow‐
through pilots will be permitted to transfer to AA in strict AA pilot seniority order, but only the
most senior 244 who accept this transfer will be provided with the additional benefits identified
in paragraph 1 above.

6. Once AA has offered recall/transfer to all pilots on the AA pilot seniority list, including all Eagle
flow‐through pilots, 1 out of every 2 new hire positions will be offered first to American Eagle
pilots. American Eagle will not be required to release more than 20 pilots per month but is
required to make every effort to meet this ratio.

7. Once 824 Eagle pilots have transferred to AA under the provisions of paragraph 6 above, AA will
not be obligated to transfer any additional pilots to AA.

8. The Arbitrator has ordered the affected parties to negotiate the specifics associated with
accomplishing the transfer of 824 Eagle pilots to AA, noted in paragraph 6 above.
We are fully aware that there are additional questions surrounding this award and we are diligently
working to provide answers. We will post this bullet point letter on the ALPA.org website and update it
with a working Q&A as soon as possible.
Thank you for your patience as we analyze this award and determine the answers to your questions.
Fraternally,

EGL‐MEC Vice Chairman

Beagle what were your thoughts about the ruling? Just interested because you were pretty vocal about the subject.

I think it is a definite positive. Not as great as we'd like or deserve, but definitely a positive outcome to a nightmare of a problem.

Like anything in life, it devil is in the details so seeing how this all pans out over the next few months will be very telling on how good it really is for us.

In all, it is pretty much the type of outcome many were expecting. Hoping he'd offer a remedy to all Eagle pilots who'd be harmed by holding back the 244 was nice, but unrealistic. Arbitrations aren't about justice, they are about the law and we got a decent outcome based upon the law. It's not justice, but it is all we are going to get.

Agreed. It's good that people will be going over as a 2007 DOH more or less, concerning the vesting. I just wonder what the deal breaker is for some of those guys on the fence about going over.

IMHO, 90% of it is all about the money. Going over at the bottom would cost me $100,000 in the first two years. It'd take at least 8 years to break even. I'm 54 now. There's no quarantee I'd pass my First Class medical next month much less two years from now, so I'm throwing away $100,000 for what? So I can act like an Arrogant Anus in a big shiny jet? So I can sit reserve on an antique in LGA? What's the upside for someone like me?

For the first 150 or so going over at 3rd pay and vested into their retirement 2-3 years, there is a very positive upside. For the remaining middle-aged pilots and older, the negatives begin to outway the positives. For younger guys, it is the other way around.

I'm positive the first 35 seats will be filled and expect 90-95% of the 244 seats will be filled. Once hiring resumes at AA, I expect enough younger CAs will be found to fill the 1 out of 2 classes....but I don't expect that to happen for at least 4 years if not 5 or 6.

Aside from a few hundred flowthroughs (35 this summer and the other 250 or so, maybe in 1-3 years) all those slots are below the most junior AA furloughee. For any real benefit for either AA pilots or Eagle pilots, AA will have to start inviting both groups back to the party in substantial numbers.

I guess you could say AA pilots took a hit of having a few hundred flowthroughs come at some point before street furloughees, but considering they've got 9000 pilots, it's really a bump in the road. The real benefit or lack therof will be AA growth or lack therof and that's what should be the goal.

With AA growth everyone wins.

Just spewed a little... LOL

give me an industry perspective of just what you "deserve". -And please qualify that with happenings elsewhere in the industry

What if you all flow to AA, then APA rolls on scope, giving the ever so "deserving" eagle group the 100 seaters... then AA furloughs 3k guys because some start up contractor, (not eagle) gets the jets... LOLLLL!!!

ROFLMAO. Always fun to see another APA sock puppet spewing hate for Eagle pilots. What puzzles me is why the "World's Greatest Pilots" never have the yams to just stick to only one user name. Anyone know the answer? Is it because they have free internet in their hotel rooms?

MTF are you dudes talkin' about.

Some members of the APA are so rattled by this last ruling they have to use separate user names to express their dissatisfaction in a childish and taunting manner. No matter. All their taunts, rants and foot stomping won't change the arbitrator's ruling. Maybe they can resign from ALPA, form an in-house union and attempt a second bite at the apple...oh snap. Never mind.