EGL MEC corruption (Update)
04-03-2013 | 05:25 AM
#12
Line Holder
Joined: Jun 2008
Posts: 1,981
Likes: 17
From: 737 CAPT
Originally Posted by clearprop
22% tip before tax. Nice....
Originally Posted by mojo6911
Not that far out of line.
First, for a group meal at almost any restaurant I have been to with 6/8 or more people, an 18% gratuity is the standard amount added. Not all restaurants add this automatically, but most do. Guess this was one that does not.
Second, the tip amount is an issue in either one of two ways. I have no problem with a 20% tip if applied correctly. If you calculate it out, it is a 20% tip after the taxes were applied. Tips are supposed to be based on the before-tax total. As was mentioned above, if the tip was based on the pre-tax total, that is a 22% tip. So in both cases the amount given as a tip is too much for union expense purposes. I have no problem giving a waiter or bartender a great tip for great service on my own dime, but not something that gets expensed.
The proper amount of tip for this meal should have been from either a low of $237 (15%), $284.39 (18%) up to a max of $315.99 (20%) on the pre-tax subtotal.
I believe the representative is right to question the bill, the alcohol and the tip for that matter. ALPA may have done a lot of cost cutting over the years due to lower dues revenue, however that doesn't mean there still isn't some fat that can't be trimmed here and there, even in small amounts.
04-03-2013 | 06:05 AM
#13
Gets Weekends Off
Joined: Dec 2007
Posts: 453
Likes: 0
Actually, I do find that out of line.
First, for a group meal at almost any restaurant I have been to with 6/8 or more people, an 18% gratuity is the standard amount added. Not all restaurants add this automatically, but most do. Guess this was one that does not.
Second, the tip amount is an issue in either one of two ways. I have no problem with a 20% tip if applied correctly. If you calculate it out, it is a 20% tip after the taxes were applied. Tips are supposed to be based on the before-tax total. As was mentioned above, if the tip was based on the pre-tax total, that is a 22% tip. So in both cases the amount given as a tip is too much for union expense purposes. I have no problem giving a waiter or bartender a great tip for great service on my own dime, but not something that gets expensed.
The proper amount of tip for this meal should have been from either a low of $237 (15%), $284.39 (18%) up to a max of $315.99 (20%) on the pre-tax subtotal.
I believe the representative is right to question the bill, the alcohol and the tip for that matter. ALPA may have done a lot of cost cutting over the years due to lower dues revenue, however that doesn't mean there still isn't some fat that can't be trimmed here and there, even in small amounts.
First, for a group meal at almost any restaurant I have been to with 6/8 or more people, an 18% gratuity is the standard amount added. Not all restaurants add this automatically, but most do. Guess this was one that does not.
Second, the tip amount is an issue in either one of two ways. I have no problem with a 20% tip if applied correctly. If you calculate it out, it is a 20% tip after the taxes were applied. Tips are supposed to be based on the before-tax total. As was mentioned above, if the tip was based on the pre-tax total, that is a 22% tip. So in both cases the amount given as a tip is too much for union expense purposes. I have no problem giving a waiter or bartender a great tip for great service on my own dime, but not something that gets expensed.
The proper amount of tip for this meal should have been from either a low of $237 (15%), $284.39 (18%) up to a max of $315.99 (20%) on the pre-tax subtotal.
I believe the representative is right to question the bill, the alcohol and the tip for that matter. ALPA may have done a lot of cost cutting over the years due to lower dues revenue, however that doesn't mean there still isn't some fat that can't be trimmed here and there, even in small amounts.
04-03-2013 | 06:23 AM
#15
Prime Minister/Moderator
Joined: Jan 2006
Posts: 45,127
Likes: 796
From: Engines Turn or People Swim
But the real issue here is the booze on the union's dime, which is against policy, and the fact that they obviously attempted to obscure the true nature of what they were expensing.
Union folks often work hard, and maybe part of their reward should be lavish dinners washed down with gallons of booze. But if so, that should be formally spelled out in the rules so everyone knows what the score is.
04-03-2013 | 07:13 AM
#16
Gets Weekends Off
Joined: Jul 2007
Posts: 4,064
Likes: 37
From: 767 Captain
The receipt says 13 guests at the top. That's about $160 per person which is still ridiculous. I can't believe this isn't an open and shut case given the evidence. These guys need to be hammered.
04-03-2013 | 07:16 AM
#17
Gets Weekends Off
Joined: Dec 2007
Posts: 453
Likes: 0
4-5 people? That would make this even more of a crime. 4-5 people would make the average dinner charge per person between $400-$500. I like nice things but I've never spent almost half-a-grand on a dinner.
The receipt says 13 guests at the top. That's about $160 per person which is still ridiculous. I can't believe this isn't an open and shut case given the evidence. These guys need to be hammered.
The receipt says 13 guests at the top. That's about $160 per person which is still ridiculous. I can't believe this isn't an open and shut case given the evidence. These guys need to be hammered.
04-03-2013 | 08:55 AM
#18
Line Holder
Joined: Mar 2010
Posts: 1,967
Likes: 0
This sort of thing happens every meeting in every MEC. Most just don't get caught. I once attended an $1800 dinner with the full ASA and Comair MECs at the local Longhorn. I'm not saying you guys shouldn't raise hell about it, I'm just saying don't be surprised if heads don't roll and nothing changes. Yes, the union guys see this as their reward for volunteering. In in many ways, they deserve it. It's a full time, unpaid job, that you have no idea what you're getting in to to until you do it.
04-03-2013 | 10:18 AM
#20
Gets Weekends Off
Joined: Jun 2008
Posts: 2,168
Likes: 0
From: Reclined
As I understand it from an Eagle friend the problem isn't with the tip; the problem is the booze. This is what he sent me:
Our MEC was having financial issues and was going to curb comp-days for MEC reps due to funding. So, the MEC decided if they can't get comp days, they shouldn't be using union money for things like Alcohol. This was immediately after a meal where 13 of them spent over $600 on booze at one meal. They subsequently all voted to prohibit the use of union money for alcohol.
Then, the MEC leadership began having their group meals and turning in only the credit card receipt; not the detailed recipt of what was actually purchased. There was some in fighting and debate at the MEC about it, and one of the Eagle guys serving at national told them generic receipts were acceptable.
The secretary treasurer came across a recipt for "snacks" for $471 from an MEC committee guy. He asked the guy if it was a group meal that was miscoded. The guy insisted it was snacks. The treasurer called the place and got the detailed receipt, which was nothing but a booze party... no food at all.
The MEC chairman then removed the treasurer and sent him back to line flying, and revoked his computer access. The MEC finally ordered the MEC chairman to reinstate the treasurer and his computer access, and a few months later the MEC chiarman finally complied.
During that time, the chairman had himself and the vice-chairman given permenent proxy to approve expense reports. Since then the secretary treasure never sees any of their expenses.
Many pilots got ****ed off thatthis was going on and several made a journey to ALPA national headquaters to review expense records. They found that what had previously been reported was just the tip of the iceberg. Hundreds of expense reports with well over $100 per person were discovered all with only the credit card receipt, no detailed receipts. When the reports were looked at closely it became apparent that anybody submitting one of these expense reports must be on the phone with either the chairman or vice chairman at then press the enter button, so then the chairman or vice chairman would approve it before the treasurer could see it.
The several expense reports that these guys have obtained detailed receipts for thus far have all been violations of the alcohol policy they all agreed to and passed. Several of the MEC members themselves were in attendance at these group meals, and are therefore compromised themselves as being involved in the fraudulent activity themselves.
Several of the MEC committee people from SPC, P2P, Hotels and Negotiating are also involved in expensing booze in violation of the rules, or of having booze that was later reimbursed fraudulently with union money.
National is reportedly distancing themselves from these guys; and one of the national guys who supposedly reviews and approves MCF spending is finding himself with egg on his face from what these guys did.
The MEC chairman suddenly signed himself into long term training to get line qualified, since he hasn't flown in three years, and while in training has refused to discuss union business or the finance issues. Even better, he is retaining CRJ pay rate, while goign back to his original equipment the EMB. This means he will not be seat locked when the time to flow as an 824 comes along. He will flow to AA ahead of more senior guys that bid to the CRJ, but are now seat locked for a year.
Then, the MEC leadership began having their group meals and turning in only the credit card receipt; not the detailed recipt of what was actually purchased. There was some in fighting and debate at the MEC about it, and one of the Eagle guys serving at national told them generic receipts were acceptable.
The secretary treasurer came across a recipt for "snacks" for $471 from an MEC committee guy. He asked the guy if it was a group meal that was miscoded. The guy insisted it was snacks. The treasurer called the place and got the detailed receipt, which was nothing but a booze party... no food at all.
The MEC chairman then removed the treasurer and sent him back to line flying, and revoked his computer access. The MEC finally ordered the MEC chairman to reinstate the treasurer and his computer access, and a few months later the MEC chiarman finally complied.
During that time, the chairman had himself and the vice-chairman given permenent proxy to approve expense reports. Since then the secretary treasure never sees any of their expenses.
Many pilots got ****ed off thatthis was going on and several made a journey to ALPA national headquaters to review expense records. They found that what had previously been reported was just the tip of the iceberg. Hundreds of expense reports with well over $100 per person were discovered all with only the credit card receipt, no detailed receipts. When the reports were looked at closely it became apparent that anybody submitting one of these expense reports must be on the phone with either the chairman or vice chairman at then press the enter button, so then the chairman or vice chairman would approve it before the treasurer could see it.
The several expense reports that these guys have obtained detailed receipts for thus far have all been violations of the alcohol policy they all agreed to and passed. Several of the MEC members themselves were in attendance at these group meals, and are therefore compromised themselves as being involved in the fraudulent activity themselves.
Several of the MEC committee people from SPC, P2P, Hotels and Negotiating are also involved in expensing booze in violation of the rules, or of having booze that was later reimbursed fraudulently with union money.
National is reportedly distancing themselves from these guys; and one of the national guys who supposedly reviews and approves MCF spending is finding himself with egg on his face from what these guys did.
The MEC chairman suddenly signed himself into long term training to get line qualified, since he hasn't flown in three years, and while in training has refused to discuss union business or the finance issues. Even better, he is retaining CRJ pay rate, while goign back to his original equipment the EMB. This means he will not be seat locked when the time to flow as an 824 comes along. He will flow to AA ahead of more senior guys that bid to the CRJ, but are now seat locked for a year.
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