Airline Pilot Central Forums - Council 12 Update

History and Future
In light of where we find ourselves, the history that occurred at our closest related brothers and sisters at an airline of a similar size and shape in 2015 and 2016 is worth reviewing. In 2015, the Delta MEC agreed to a Section 6 close out TA, in advance of their amendable date. The TA was skinny in terms of cost in a time of record profits containing onerous provisions, of which the three most offensive were affecting their profit sharing, sick time, and scheduling. In July of 2015, with a participation rate of 97%, their TA failed on a vote of 65% opposed and 35% in favor. As a result of changing the complexion of their negotiating committee and LECs through election cycle, recall or resignation, in September of 2016 the Delta pilots had a new TA, not based upon the failed TA, instead, a TA worth 2.5 times more than their TA 1. This, all in spite of Delta CEO Richard Anderson saying that there was no more money than what was offered in TA 1. That was in 2015 and 2016, when there was not nearly the leverage we have today.
To get to where they not only revamped but began anew, the Delta MEC conducted three rounds of extensive polling, a web based survey, and put LEC reps in operations regularly to listen and hear directly from their members.

On July 22nd, you will see a survey from the ALPA Survey System and you may receive a polling call from the University of New Hampshire (UNH) Survey Center. The survey is self selected and all members are welcome and encouraged to participate. The poll is scientifically selected and you may or may not be polled, but the result should scientifically reflect your direction. Polling calls will come from 603-397-0660. We recommend adding this number to your contacts to increase the likelihood of your answering the call. Caller ID on your cell phone will indicate “NH Call”

In addition to the survey and polling questions, there is a place to provide freeform feedback. If you would like wholesale and significant change to the TA currently still out for vote closing not later than November 1, with improvements that you asked for through Council direction that became unrealized with MEC direction, please indicate that you want a new agreement. If you are ok polishing this TA, please say that. It is crucial that the survey and polling reflect your desires.
As we said in our Special Update on July 15th, along with our counterparts from Council 11, we understand you are dismayed, betrayed and angry. No one knows the result of our TA ballot still out for vote, as the result is untabulated, locked away in a third party voting system. The deafening negative feedback from pilots, along with the Quigley letter, make it clear that the company heard the thunderous sound of failure and did not want to let the TA fail.
Finally, we have had scores of inquiries in response to the latest update by Council 11 Vice Chair Anne Worster. In that update, Anne bravely cleared the air and pulled the curtain back on the lack of decorum and process that, unfortunately, your Council 12 officers have been dealing with throughout the duration of our current term. Particularly during the pandemic, we saw an escalation in procedural failures and shortcomings in professionalism, civility, and decorum when MEC business was only being conducted via Zoom meetings. Now we are at a place where, evidently, some members of the MEC have unequivocally left their professionalism behind.
We stand behind Anne’s statements, and we are hard pressed to find anyone with more integrity. Anne isn’t alone in her distaste of the conduct that has been normalized over the last 6 years. We desire a return to civility, transparency, and a representational environment where the merits of thoughts and ideas can be debated without denigration or attacks on those who participate in the process.
We have heard from many of you asking what you can do to help right the ship. This is your union, not the MEC’s union. This is the pilots union, and who you want to lead and represent you, is ultimately up to you through the LEC reps that you choose. Members - line pilots like you - are the ones who are supposed to direct our processes. This is why we advocate for your voice, your opinions, and your direction. That is what trade unionism is built on, and what we believe in.

Understanding LTD
When the Con statement against the TA was written, it was not possible to detail every inadequate provision.
While the TA makes improvements to our existing, rather poor Long Term Disability (LTD) benefits, those improvements continue to fall well below the gold standard, Delta LTD.
Many pilots do not understand the importance of LTD until the day comes when they suddenly find themselves out on LTD. Additionally, most pilots who go out on LTD do so during their highest paid, most important, retirement savings years.
Delta pilots on LTD have no maximum benefit cap. They get a true 50% of their Final Average Earnings rather than a capped amount. Under our TA, most of our pilots LTD dollars are fixed at a cap, and not truly 50% of 1026 hours/85.5 hours per month due to being capped.
Delta pilots on disability immediately receive a double Defined Contribution of 32% of their LTD benefit, such that they are made whole for their retirement contributions. Delta’s LTD is paid at 50% of their Final Average Earnings but their retirement calculation is based on 100% of their Final Average Earnings. Sixteen percent of all of the pre-LTD income is the same number as 32% of half of the pre-LTD income. By contrast, our TA continues to impose a low maximum benefit cap, much less than a pilot would be making if they were not out on LTD, even with the tax advantage. While our TA would, after a 36 month waiting period, provide an extra 16% to the benefit cap, this money would not go into our retirement plan to grow tax deferred. Instead it’s an extra 16% added to the LTD cap, to help make up for lost defined contributions while on LTD, which further decreases our tax free LTD treatment overall as compared to Delta’s taxable LTD plan. Currently a large percentage of pilots would yield less than a true 16% of the 50% (compared to Delta's 32% of the 50%), due to the LTD cap being less than 50% of their earnings.
Essentially all DAL pilots on day one of LTD receive full pre-LTD defined contribution (100% of their defined contributions from their Final Average Earnings) while on LTD, where our pilots under our TA get nothing for 36 months and then only 50% of the cap, not tax deferred. For simple math, on a pre-LTD income of $100,000, and an LTD of $50,000, at Delta a pilot would get $16,000 in defined contribution to their retirement. Under our TA, a United pilot would receive $8000, not tax-deferred. As the numbers rise, our capped LTD results in a greater disparity and lower percentage, of less than our TA’s 16% compared to Delta's 32%.
Additionally, Delta pays 100% of LTD plan premiums. This obviously benefits every single active Delta pilot. The fact that Delta pays the entire LTD premium is also beneficial for pilots who never go on LTD during their career in that they do not ever have premiums withheld for a benefit not used. While Delta LTD benefits are taxable and have an income offset for the first 36 months that the pilot is on disability, the lack of fixed and low max benefit caps, along with their double, 32%, immediate defined benefit retirement contributions, more than make up for the taxation.
The takeaway is Delta is getting a bigger gross benefit and a full 16% on their Final Average Earnings pre-LTD where our TA provides 16% on only half of 85.5 hours, and capped to less for most pilots.
Delta also has pilot short term disability and pilot mutual aid programs, which replace all of their disabled pilots’ income to 90% of their Final Average Earnings during shorter term disabilities. Finally, their sick leave is based upon years of service and resets each year.
A solution to get to a yearly reset system, along with LTD benefits and other benefits, are worthy of your opinion in the survey, if desired.