Kingslayer

Synopsis of TA: Company vs ALPA “Gets”

Pandemic Recovery LOA

2 YEAR MPG/LPA Reduction Program (October 2020 - 2022 bid periods) to cover Company training and furlough costs, while briefly deferring furloughs.

“FOR” The Company

2 year MPG reduction, using 3 seniority segments.
LPA lower limit removal for upto 2 years, replaced by 0 to 82hrsLPA range, +/- 5-8hrs.
Approx 2,000 furloughs deferred until June 2021 (8 month delay).
ALPA allows MPG/LPA reductions without requiring UAL to accept $4.5B CARES Loan.
Pay rate protection removed if pilots don’t displace into “correct” fleet & seat.
Pay rate protection removed if pilot chooses not to rescind displacement.
Pay rate protection removed if pilot doesn’t bid back to original fleet & seat.
6 months relief for displacement training.
Remove 3 Pilot Augmentation from out station to FAR 117 limits.
Increased Bid Freeze from 24 months to 36 months, same or lower band in Base.
Early Outs subject to 5 month delay at Company discretion.
Early Out pay reduced to 24 months, vice 36 months on first offer.

“FOR” ALPA

~ 2000 Furloughs delayed until June 2021, or
~ 2000 Furloughs delayed until Dec 2021, if UAL doesn’t take CARES 1 LOAN
~ 2000 Furloughs exceeded (August 2016 hire) = LOA Termination.
Upto 655 more Seniority-based Early Outs (PVSL) using 10yrs/Age 50 base.
Upto 5 year active benefits (e.g. health care) or Age 65.
Guaranteed availability of 3 month COLAs,
L-UAL “Double furloughees” will not be placed in “Lower Tier” for MPG reduction.
Quarterly “True-Up” to bring UAL “closer” to Peer Average for MPG reduction.
Above 40% monthly flying levels, RJ Block Hours = Mainline UAL NB Block Hours.
RSV MPG to follow Lineholder LPA (4:03 per day, plus increased days of availability)
Displacement Pay Protection, with significant Company caveats (See above).
18 Month displacement “Grandfather Rights.”
If exactly same Grant extension approved in CARES2, MPG/LPA cuts suspended.
In 2022, LTD cap increased from $8K upto $11K, with increased premiums paid by pilot.
Post-Award long training pay 3 hrs per day minimum.
First Class Deadhead, if available at time of booking, 3hr prior exception.
6 seats removed from 76 seaters after December 1, 2020.
Global RSVs subject to a maximum of 4 days RDO moves at a time.
Return of L-UAL Non-Profile RSV lines to 20%.
Restrictions on stock buybacks during LOA.
Furloughees recalled on paper prior to official merger announcement.
5% pay raise after 5% pre-tax margin in 4 consecutive quarters (1 full year).
Termination Triggers

Company puts seats back into any E175.
Pilot hired prior to August 2016 is involuntarily furloughed.
Company earns profits for 2 consecutive quarters.
Passenger revenue 70% of 2019 level for 3 consecutive quarters.
Passenger revenue 80% of 2019 level for 1 quarter.
Cash balance drops below $2B.
Company files for bankruptcy.
Company notifies ALPA it is cancelling MPG/LPA reductions.
October 2022 bid period (Nov. 2022) ends - 2 YEARS.

oldmako

Please post this on the NEW forum. Please. They will do a much better job of pointing out the pepper in the fly **** than here.

Tiburon

This is the biggest problem I see with the whole thing. We should be taking back as much flying as we can instead of giving it up. The union should be focused on scope. Cut lose all the code shares and bring all flying in house. SK has been pushing hard for scope relief for the past 2 years. Facing furloughs should bring the importance of scope to the forefront of every pilots mindset. I'll vote for concessions if it means taking back our flying. I won't vote for MPG concessions AND scope concessions.

ReadOnly7

Was the “old” forum as much of an echo chamber as the new one? It’s the same 5 people jerking each other off and fawning over each other.....and then taking turns making JM their punching bag.

levelhead

Here is my personal synopsis with some possible scenarios:

Let's start with the scenarios if the TA passes:

Best case scenario:

2600+ furloughs canceled (2850 adjusted with mitigations)
Cares 2.0 passes and company accepts: NO MPG cuts until Cares funds run out. NO furloughs until December 2021,.
Thousands of displacements canceled
Pay protections for those on the displacement awards, even if displacement not canceled.
5% pay raise/if demand returns.
11k LTD
70 seat RJ’s
First Class Dhd
People on seniority list in case of a merger

Worst case scenario:
Cares 2.0 doesn’t pass: Furlough delayed until June 2021 with no cares act passage, then ~2000 instead of ~2600. If company furloughs more, agreement terminates.
MPG cut to 35 hours for the junior folks and 52 hours for the middle, 60 hours for the top until agreement terminates.
5% pay raise/if demand return.
70 seat RJ’s
11k LTD
First Class Dhd
People on seniority list in case of a merger


Here are the scenarios if it doesn’t pass:

Best Case:
Thousands of furloughs starting in 2 weeks.
Most displacements proceed/are final.
No mpg cuts.
Company in the middle of next year with strong demand will recall the furloughs. Good luck trying to train 2-3 thousand of pilots coming back from furlough in addition to new vacancy bids in a relatively quick way.

Worst case:
Thousands of furloughs in addition to the ~2600 announced
No mpg cuts for those still here
More displacements and downgrades
The company was going to go down this path anyway.
Furloughed people on the list in case of merger (Ask how that worked out for the LUAL guys)




Arguments from people opposed to it:

Argument
You knew the hazards when signing up for this career, furlough is part of the business. Why should I subsidize your career?

Answer:
You also knew the hazards when signing up for this career, being part of a union and a staying strong together is part of the business. Although I think United, especially with all the scabs, loves to eat their young, I hope that most people will look past the cut and see the greater picture. I bet, most of the middle and senior group would be a hard yes if they were much closer to the bottom. And no, you are not subsidizing the junior guys. I would argue the junior guys are subsidizing the middle and senior guys. How many will be able to keep captain and/or widebody pay while displacing and being much more senior in their seat and being able to pick up trips? How many will keep their high paying seat? 50% mpg cut for the junior group while a fraction for the senior group is bs. This should’ve been even across the board cut.

Argument:
The company is using this so that they can make us essentially part-time employees.

Answer:
There are clear snapbacks in place to bring mpg back into place. Do you really think they want thousands of pilot sitting around at half mpg while paying for their benefits? That is not efficient. They want to squeeze every bit of productivity out of you. Look at what happened in 2008-2009 after the furlough people were flying almost 100 hours a month.

Argument:
The company is using this to squeeze us and there is plan is to file bankruptcy so they can squeeze us even more down the road.

Answer:
No, see above, they would want to make everyone fly the max hours and be efficient, the mpg cuts would not be a smart thing to keep.

Argument:
The MPG concession is not worth it, keep the contract intact, FPLD.

Answer:
I hope most people see the bigger picture. Having thousands of extra people on the seniority list and having thousands of people not be displaced has huge implications with bidding and pay. Yes there will be mpg cuts if cares 2.0 doesn’t pass or funds run out and demand doesn’t return, but these are not payrate cuts, you will work less for the same pay rate. The big benefits of having people below you in BES and thus being a higher percentage for bidding is something I think most people are also overlooking. Additionally, for thousands, they will be payrate protected and the mpg cut for a big portion of the group will be significantly less than what everybody is proclaiming.

Final thoughts:
This is by no means a perfect agreement, as seen by the junior/middle/senior group split up which insane. But, as a whole even in the worst-case scenario it is an easy yes vote. If cares 2.0 passes and if demand somewhat returns this will end up being a HUGE win for everyone involved. Even in the worst-case scenario above with cares not passing, thousands of pilots will A. Keep their jobs, but work much less (junior group). B. Have their displacements canceled, AND even if they don’t get their displacement canceled, be payrate protected. And C. Have people many more below them in BES and seniority list. Will this fix everything and we will go back to 2019? No, it won’t, but it will provide much needed time for the majority of people at the bottom, for the industry to stabilize and provide significant benefits for the majority of the group.

MiLa

good synopsis, well said.

FlyPurdue

This is really great synopsis. I know you are looking at best/worse case scenarios, but I think that there is a high probability of block hours being greater than 40% rather soon. Before CV - we never had a month post merger that was was less than ~90% of its complement month in 2019 (ML schedule block hours). I expect that with purely the existence of a therapy, vaccine, or even CV just getting out of the new cycle - block hours will push higher than even October is now...especially as we get into the holiday travel season. I.2.a.i is a very helpful to show what happens as demand begins to return.

levelhead

Thx, my general feeling is that travel will not come screaming back, but it will have enough of a come back to completely avoid furloughs come June or December.

EWRflyr

What are you talking about? There are no scope concessions in this deal. The company is required to remove the 6-seats now without a furlough. These same acft will still count as though they are 76-seat airplanes and are capped at their current limit. Now there is a MONTHLY limit of no more than 100% of mainline NB block hours for Express flying. Even the TA summary states that had this been in place before then for July, August and September either mainline would have had to fly more hours or Express fly less. This ensures the company can’t grow Express without growing mainline as well.

I agree I want to see all flying in house but to say this gives up more flying or is a scope concession is not true.

Sixty N Two

I’m in the Yes column and waiting to hear more from those who see flaws. Not tales of woe, we all have them.

I’m wondering how far behind the company is on scope in regards to the 12month look back and how much relief this new scope clause gives them. The new language is good it appears. How much would they have had to cut back regional flying next summer since for example IAD has been a UAX hub.