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ERJ135 04-02-2013 11:00 AM

EGL MEC corruption (Update)
 
Keeping everyone who cares up to date...

April 2, 2013


Fellow DFW pilots:


On March 8, I appealed to you for assistance regarding the fraudulent use of your dues money. The issue was regarding a pattern of abuse that was highlighted in an expense by the MEC Chairman for a group meal on August 3, 2012, for $2085.54. My characterization of that expense has been described by the chairman and vice chairman as misrepresenting the facts and full of deceit. They have also publicly accused me of having difficulty telling the truth.

I asked the MEC leadership to provide three things to put this issue to rest:

· Show that the MEC chairman did not expense any group meals that were in violation of the MEC policy regarding alcohol expenditures.

· Show that the MEC vice chairman has not approved any expense that he knew violated that same policy.

· Have the MEC chairman or vice chairman provide a detailed receipt for the group meal expensed on August 3, 2012, for $2085.54 to back up their statement.

No attempt was made by either the chairman or vice chairman to answer these three simple questions.

I verified through ALPA Finance that this expense report was submitted by the MEC chairman on August 9, 2012, at 11:20 a.m. One minute later, at 11:21 a.m., the vice chairman logged into the system to review and approve the expense report.

I have also managed to obtain a copy of the receipt that details those items purchased at the meal. A total of $674.95 was spent on alcoholic beverages. I have attached a copy of the receipt for your consideration.

My goal in putting this issue before you is an attempt to stop the abuse and hold those who are responsible accountable for their actions. The accountability needs to be applied to anyone who has violated MEC policy and the pilots trust. Sadly, this expense is only one of many. There are pages and pages of similar expenses submitted by the chairman, vice chairman, and several committee members.

The alcohol policy is not intended to prevent any member from consuming alcohol. A member can drink as much as he or she wants, just not at your expense.

In a response to a letter from ALPA National demanding that he explain another expense that was in violation of MEC policy or repay it, the chairman suggested that the MEC may decide that the expense was appropriate and requested that the matter be put off until after the meeting in May. I do not believe that this issue can wait until May to be resolved. It is imperative that we address these integrity issues with our leadership before we are able to effectively move forward with AQP, PBS, and merger negotiations.


Please direct your comments to Val and myself. We appreciate your input.

KXXXy Pxxxl, Vice Chairman

EGL Council 83


Air Line Pilots Association, International


and here is the detailed receipt....



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RyanP 04-02-2013 12:00 PM

Some of the stuff not highlighted are drinks also..

mojo6911 04-02-2013 12:11 PM

$10 for a sparkling water? GTFO

RJ Pilot 04-02-2013 12:20 PM

Remember, these are the same "leaders" that keep telling us how good the fleet plan is.

Hopefully, some of you kool aid drinkers will wake up.

Mojito 04-02-2013 12:23 PM

What?! A union breaking its own rules? Haha. Be thankful you're not in the IBT--you'd have a few bricks through your kitchen window by now. And many, many more corruption charges to keep you busy, that is until they "stop" you.

CaptainCarl 04-02-2013 02:47 PM

Hahaha, this is one of many reasons why unions suck. SMH.

clearprop 04-02-2013 03:07 PM

22% tip before tax. Nice....

Salukipilot4590 04-02-2013 03:35 PM

When is it mine turn for monies?

mojo6911 04-02-2013 04:13 PM


Originally Posted by clearprop (Post 1383936)
22% tip before tax. Nice....

Not that far out of line.

Good Rate 04-02-2013 04:38 PM

Sure...when its not your money

eaglefly 04-03-2013 05:02 AM

You can practically see the greed oozing out of their pores.

EWRflyr 04-03-2013 05:25 AM


Originally Posted by clearprop
22% tip before tax. Nice....


Originally Posted by mojo6911
Not that far out of line.

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.

mojo6911 04-03-2013 06:05 AM


Originally Posted by EWRflyr (Post 1384209)
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.

It doesn't seem like the group was that big. Maybe 4-5 people? I don't find the 22% tip as offensive as going to a restaurant where a bottle of water costs $10.

tuktukdriver 04-03-2013 06:09 AM

$51 for calamari?? Something needs to be done!!

rickair7777 04-03-2013 06:23 AM


Originally Posted by mojo6911 (Post 1384231)
It doesn't seem like the group was that big. Maybe 4-5 people? I don't find the 22% tip as offensive as going to a restaurant where a bottle of water costs $10.

When using other people's money, anything over about 18% is getting questionable.

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.

Adlerdriver 04-03-2013 07:13 AM


Originally Posted by mojo6911 (Post 1384231)
It doesn't seem like the group was that big. Maybe 4-5 people? I don't find the 22% tip as offensive as going to a restaurant where a bottle of water costs $10.

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.

mojo6911 04-03-2013 07:16 AM


Originally Posted by Adlerdriver (Post 1384261)
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.

Oh ok, I didn't see that.

Captain Tony 04-03-2013 08:55 AM

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.

RJ Pilot 04-03-2013 09:02 AM

Tony will be in the first AA new hire class.

Mason32 04-03-2013 10:18 AM

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.

Mason32 04-03-2013 10:22 AM


Originally Posted by Captain Tony (Post 1384333)
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.

Are you trying to say the guys on full time union leave aren't paid? I think you are mistaken, or are mistaken about who is attending these functions... at least from what I've been told. When I asked it was:

MEC Chairman - Full time union leave with guarantee 95 hours CRJ pay
MEC Vice Chairman - same as chairman
MEC Grievance Chairman - same as chairman
MEC Treasurer - same as chairman but EMB pay
MEC Negotiating Chairman - CRJ CA pay for a person who never upgraded
MEC Committee Members - ones on full time union leave shadow bid and get paid whatever they could hold online

Doesn't sound like very many unpaid volunteers there to me. I'm told there are many unpaid volunteers, but that they are not the majority of the ones attending these functions.

buddies8 04-03-2013 11:05 AM

how can the negotiating committee chairman get capt crj pay when he cannot hold captain? another mec theft from the pilot group.

IA1125 04-03-2013 12:06 PM

Now, you just don't see this type of abuse with a HIMS Committee dinner, regardless of policy...

Perhaps all MEC dinners (or "snack" gatherings) should have a HIMS Committee member in attendance.

That would certainly be a buzz-kill and if the attendees knew they might be under evaluation, the booze bill would probably be a fraction of what it would be otherwise.

Red Forman 04-03-2013 12:33 PM


Originally Posted by buddies8 (Post 1384402)
how can the negotiating committee chairman get capt crj pay when he cannot hold captain? another mec theft from the pilot group.

But he deserves it for all of his hard work "volunteering"!

buddies8 04-03-2013 12:54 PM

volunteers to membership money and pay that he does in no way deserve to get. i get your point though.

RyanP 04-03-2013 01:09 PM

Letter from 121 LEC

April 2, 2013
Pilots of Council 121
We hope all of you had a wonderful and safe Holy Week.
We are approaching 17 months in bankruptcy. With the announced and UCC approved merger with USAir we now extend our time in bankruptcy to accommodate the process creating a new company.
Although Eagle faced similar representational and corporate structural challenges we have for the last 25 years, AMR added the need to diversify their feed. We now look at the divide between USAPA East and West, APA and ALPA represented groups. We add USAir and AMR regional feed providers as well as USAir owned Piedmont and PSA creating one heck of a layer cake.
This merger poses some interesting scenarios, impediments and opportunities. Our new CEO has a very different way of operating his regional feed than AMR had been doing and the complexity of both systems will take a careful and methodic hand.
New York is unique in that we have a pilot group that is engaged and maintaining a level of professionalism as demonstrated by the 200 million we brought in to the corporation as found in the monthly financial report to Judge Lane and the Unsecured Creditors Committee.
Here are a few things you have brought to our attention:
• Two pilots submitted a resolution to prompt a discussion at the next MEC meeting regarding the hiring at USAir that could place our pilots in the 824 at a disadvantage. Sam and I will shepherd this to the floor for discussion.
• Another discovered that the company has been covering cancelled flights out of DFW to cover our code share partners.
• Several others have caught scheduling working deals with NY reserve pilots that were displaced out of DFW, ORD and SJU to LGA/JFK wreaking havoc on the reserve staffing and call out in base. Asking to be “ground transported” to your former home base to cover open trips in that base out of seniority order is unacceptable and subverts both our working agreement as well as the simple seniority rule. We have asked our Pro Stds folks to speak directly with these pilots and gently encourage them to stay on course and follow their contract. No matter how enticing the offer seams – interfering in a seniority based system is a double edge sword please remember that causing one of your peers to be assigned prematurely out of seniority order is unacceptable.
Here are a couple of issues we want to bring to your attention:
1. New York ready reserve room will remain at the hotel for a little longer as the company remodels the hanger ready reserve room.
The tests done for the company to comply with the OSHA complaint came back negative leaving the room available for use. The bed bug issue was confirmed and a more aggressive plan for removal and treatment was implemented.
2. AQP- Progress has presented itself in the form of a resolution process to the “off track” questions that plagued us several months ago. The bankruptcy has presented us a timely break to that process allowing the parties to work differences and come to a more realistic understanding of what concerns the pilots under this new system which will greatly benefit all involved IF it is implemented properly. We will continue to monitor the progress and should have an LOA for your review shortly.
3. PBS- On February 13th the MEC was presented with a high level overview and discussion of PBS. After the meeting was closed, the Negotiating team presented the MEC with a full Letter of Agreement less than a week later yet only several hours before the LOA went before the company. To date the negotiating committee has moved past version 2 with the company yet no version has been approved by the Master Council. Sam and I are concerned and remain vigilant. We clearly understand your steadfast guidance that a pay cut is far better than a sub-par PBS system.
4. MEC Officer Abuse of Power- Several weeks ago we published a letter from Council 83 First Officer Rep, Kelly Paul regarding a flagrant violation of MEC policy regarding the purchase of alcohol at group meals paid for with your dues dollars.
In response to the blowback from the leadership team toward MEC Secretary Treasurer Gaston Valdovinos and Council 83 FO Rep Kelly Paul for their discoveries, several pilots from around the system met at ALPA HDQ in Herndon VA to verify what First Officer Paul found as well as check to see if this was a onetime event or a pattern of abuse.
First Officer Igou was one of those pilots. He has sent several letters to ALPA National asking for their involvement. Those pilots subsequently found a pattern of blatant and intentional action to subvert MEC Policy.
The scope and depth of the abuse of funds uncovered dwarfs the discovery of the SPC “snackgate” receipt several months ago and helps Sam and I to truly understand why the MEC Chairman and Vice Chairman went to such lengths to lock the Secretary Treasurer out of the office, out of his ability to review and approve expense reports and force him back to the line in response to his attempts to resolve the SPC expense from last year.
Today we received the appended letter and receipt from Kelly Paul to the pilots of Council 83. To wrap our heads around the scope of this repeated abuse I have included a spread sheet breaking the “meal” down into parts for your review.
There is one point to keep in mind as you review this expense incurred by the members of the leadership team, grievance, negotiating and SPC committees with 1 member of the Master Council also in attendance. All of these individuals were in the room when the MEC alcohol policy was debated and approved yet no one seemed concerned as they were ordering at this meal. You also must realize that this meal was the beginning of a night of massive consumption by these same individuals, the alcohol receipt that FO Igou released last week for your review from Barmy Liquor in Washington for a total of $177 was incurred on the same date.

Reviewing this receipt Sam and I sat back in our chairs in amazement and ask, would we allow a group of people who so blatantly and flagrantly abused both our trust and our dues money manage our financial future and get us to our retirement? I am shocked at the realization that these are in fact the same people we have put in positions of power and trust to negotiate and manage our contract which ultimately affects the livelihood of every pilot on this property
.
Fraternally,
Sam and Phil

Good Rate 04-03-2013 02:12 PM

I don't have a dog in this specific fight, but am I the only one who has a problem with these outrageous meals? I guarantee, when these people are home, they don't go out for these $150 meals.

I can go to longhorns and have a really nice steak and meal for $20. Why is it that when its company business they suddenly expect/require $150 plus meal. I mean, go have a nice meal, but come on

ISurfer88 04-03-2013 02:41 PM


Originally Posted by Good Rate (Post 1384497)
I don't have a dog in this specific fight, but am I the only one who has a problem with these outrageous meals? I guarantee, when these people are home, they don't go out for these $150 meals.

I can go to longhorns and have a really nice steak and meal for $20. Why is it that when its company business they suddenly expect/require $150 plus meal. I mean, go have a nice meal, but come on


I completely agree. These guys should feel ashamed of how they put the money of their fellow pilots to use. Absolutely discusting...

SonnyJim 04-03-2013 02:50 PM

You guys have the Tony show, we had the Homer and the east Texas sheep hearder show. Same kind of a- holes, with different faces.

You guys are goin about this liquor thing the wrong way!

P m me for detailed solution to this problem.

RyanP 04-03-2013 02:52 PM

Most normal people have never had a meal that expensive in their entire life.. because it's absolutely ridiculous. This group does it every time they go out.

RJ Pilot 04-03-2013 05:38 PM

Teleconference cancelled.
Surprised?

Mason32 04-03-2013 05:58 PM


Originally Posted by RJ Pilot (Post 1384617)
Teleconference cancelled.
Surprised?

wow. what was their excuse?

lakehouse 04-03-2013 06:14 PM

snack break!

buddies8 04-03-2013 06:49 PM

the company wants to give them there counter proposal for pbs and the mec is only available on the day of the teleconference. all other days are taken up on there food and alcohol binge on my money.

Moonwolf 04-03-2013 08:06 PM

They all deserve a good ol fashion beat down

SpreadEagle 04-03-2013 10:24 PM

Wow if this pi$$e$ you off....
 
You guys should see how much fun we have in Vegas when ALPA national holds a conference there. See how much hookers and booze your $$$ buys for greasing the wheels of labor and commerce, but some people just don't understand "business."

buddies8 04-04-2013 03:13 AM

we do understand the greasing required BUT not when our volunteers are just lubricating themselves for no reason other than to spend my dues.

eaglefly 04-04-2013 04:31 AM

ALPA is just the flip side of the same coin at most carriers, it's just Eagle is among the worst. Corrupt acts are nothing new. Didn't national deliberately destroy/hide incriminating evidence in the TWA suit ?

Considering the grotesque and unearned compensation and bennies the porkers in Herndon are feasting on, is it no wonder smaller pigs who circle the same trough are trying to burrow their snouts as deep as possible into whatever trough presents itself ?

Corruption breeds corruption and the whole ALPA "concept" is nothing but a modified Ponzi scheme with tens of thousands of marks to keep it going. Lets be realistic; during the last 15 years has ALPA done anything for industry compensation, stability or advancement ?

Virtually nothing, except maintaining their own troughs for ravenous self-gluttony has been accomplished while the providers of that trough are continuously clobbered by the very people whom ALPA is supposed to protect them from. I dont see how anyone can NOT see this whole scene the scam of scams. Since many seem not only willing, but actually enthusiastic about shoveling their money into this trough in perpetuity, nothing is likely to cure the illness itself.

SonnyJim 04-04-2013 05:01 AM


Originally Posted by eaglefly (Post 1384764)
ALPA is just the flip side of the same coin at most carriers, it's just Eagle is among the worst. Corrupt acts are nothing new. Didn't national deliberately destroy/hide incriminating evidence in the TWA suit ?

Considering the grotesque and unearned compensation and bennies the porkers in Herndon are feasting on, is it no wonder smaller pigs who circle the same trough are trying to burrow their snouts as deep as possible into whatever trough presents itself ?

Corruption breeds corruption and the whole ALPA "concept" is nothing but a modified Ponzi scheme with tens of thousands of marks to keep it going. Lets be realistic; during the last 15 years has ALPA done anything for industry compensation, stability or advancement ?

Virtually nothing, except maintaining their own troughs for ravenous self-gluttony has been accomplished while the providers of that trough are continuously clobbered by the very people whom ALPA is supposed to protect them from. I dont see how anyone can NOT see this whole scene the scam of scams. Since many seem not only willing, but actually enthusiastic about shoveling their money into this trough in perpetuity, nothing is likely to cure the illness itself.



Well said sir!

eaglefly 04-04-2013 06:59 PM


Originally Posted by SonnyJim (Post 1384772)
Well said sir!

Well, I'm sure many ALPA supporters have different opinions than mine, but one has to ask exactly what line pilots have collectively gotten representationally over the last 15 years for their investment. It would seem obvious that what is happening at Eagle reveals a systemic dysfunction vs. an isolated one considering how this and similar operational attitudes exist within other carriers and the national entity that should be monitoring such carriers representatives financial conduct at the very least. Line pilots really are "investors" in a "product" and it appears that investment isn't reaping returns for the investors, instead funding extravagant living for those few with access to the investment capital, both at the individual carrier level and at the national level.

The ROI for virtually all line pilots in the industry has been a complete bust while it appears it's the exact opposite for those in elected ALPA positions.


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