Every agreement has areas that simply cannot be costed beyond an educated guess. This TA is no different in that respect. However, ALPA E&FA was able to cost many areas of the TA. Below are some of the costing estimates that were provided to the MEC during negotiations1.
- Estimated Average Annual Amount Per Pilot2 (excluding Signing Bonus, International Upgrades, Flight Pay Loss, and Known Crewmember):
- American Airlines $25,000
- Delta Airlines (failed TA) $30,000
- FedEx Express TA $60,000
- FedEx Express TA:
- Total Amount to Pilot Group in Year 1 $150.2M
- Total Amount to Pilot Group per Month in Year 1 $12.5M
- Total Amount per Pilot per Month in Year 1 $2,988
Section 3 ($1.42B)
- Compensation ($1.24B)
- 10%, 3%, 3%, 3%, 4%, 3%
- Retro Signing Bonus ($145.2M)
- $134M to pilots pursuant to ALPA Lump Sum distribution policy and methodology developed by MEC Bonus Advisory Group. The difference between $145.2M and $134M is attributable to DC/DB contributions (the retro signing bonus is fully pensionable) and & employer-paid taxes (FICA and Medicare).
- International Override Increases ($6.1M)
- $10 per hour TAFB for Captains
- $8 per hour TAFB for First Officers
- Ultra-Long Range Premium ($0.00)3
- $24 per CH for Captains
- $17 per CH for First Officers
- Pays for entire trip guarantee if at least one flight sequence is scheduled for over 16 block hours (currently no flight sequences are scheduled in excess of 16 block hours)
- New Hire Increases ($24.5M)
- Training pay increase to $4000 per month
- FDA 1st year pay increased to $100 CH
- Per Diem Increases
- Domestic
- .10 at DOS
- .05 at DOS +2 years
- International
- .10 at DOS
- .10 at DOS +2 years
- .10 at DOS +4 years
- Domestic
- Higher class of service required for all flights 2+30 block or more internationally
- Instructor Pilot and Check Airman Override increases
- Standards Check Airman Premium increases
- Change of 36-in-168 to 32-in-120 rest provision
- Increases in Flight Pay Loss Bank for safety programs
- Reserve Period change penalty extended to all RP changes
- 1+30 CH per block change
- Soft R-Day moves
- 3+00 CH per move
- Uniform allowance increases
- Known Crewmember
- Savings to the Company (compared against current plans) based on ALPA's assumed trend rate of 8% medical inflation for all plans (over 5 years) beginning in 2017
- DC improvements ($91.1M)
- +1% at DOS
- +1% at DOS +4 years
- Sick Leave Buy-back ($68.4M)
- Advance Notice to Retire ($53M)
- Based on chart found on page 534 of the TA
- Increased Tuition Assistance
See you on Tuesday!
Scott, Bill, Tom, & Andrew
1 These numbers are based on 4,190 pilots on the Master Seniority List and final TA language as of August 19, 2015.
2 Stated value of new money in the contract divided by the number of years of the contract divided by the number of pilots at DOS.
3 FedEx currently has no FAA authority for ULR flying.