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Old 07-29-2022, 04:42 PM
  #1  
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Default The Wrong TA for Our Times

The Wrong TA for Our Times

Must Read: From my friend. He has given me his permission to post this on his behalf. Name removed as to not violate forums rules.

The Wrong TA for Our Times

No white paper has the space to dive into every detail of any complex pilot contract TA. The bottom line is that this career historically contained three pillars: Money, Days Off and Retirement. Our profession already lost too much Money, too many Days Off and too much Retirement during the lost decade of the 2000s.

The worldwide pilot shortage did not happen by accident: airline management, aided by courts, media and politicians, spent decades systematically destroying our contracts, cheapening our profession. This drastically accelerated after 9/11. They used a one-time tragedy to eliminate our traditional 98% income replacement A + B fund retirements, while forcing higher productivity for far lower inflation adjusted rates.

By late 2012, as UPA negotiations were completed, the overall MEC consensus was that the UPA was still a concessionary contract, but justified as a step in the right direction. The initial hourly pay rate raises were modest for all pilots except pre-merger UAL 320 pilots. We had to wait until later years of the UPA for better rates, and did not get truly decent rates again until the Delta bump activated the me too clause.

Severe and persistent inflation is as much of a reality as the severe pilot shortage is. Our last raise on January 1 2019 gave us a 12 year WB CA rate of $351.87. Using the BLS CPI inflation calculator, that top rate needs to be $414.22, right NOW, TODAY, to break even with January 2019 adjusted for official CPI. Worse, take the May 2001 UAL 12 Year B777 CA rate of $277.30. To break even on the CPI calculator, we need $462.39, right NOW, TODAY!

Yet what does this TA do ? It makes us wait until as long as January 2024 for a maximum rate of $403.45. This TA would have provided pay rate raises that still fall behind inflation, while also allowing concessions in other parts of the book.

Obviously, this does not even begin to address the tremendous loss of Defined Benefit A plan retirement benefits, or compensate us for massively improved productivity since 2001.

Small improvements to LTD are nice, but our total package of annual pilot sick leave accrual and LTD pales in comparison to Delta’s. Their pilots also have short term disability and mutual aid plans. Why don’t we?

The new savings plan does not improve upon the 16% company Defined Contribution. Defined Benefit is still 0% for 2005 and after hires and very small remaining amounts for 2001 and earlier hires. The TA only creates a new vehicle for spill that exceeds IRS PRAP limits. Excess previously spilled to our RHA, and now spills to our active HRA. 16% DC is still 16% DC.

Negotiations are sometimes referred to as a give and a take, yet all management did for an entire lost decade of the 2000s, was take. The same can be said of the past two years. We fall further behind every day. We survived one lost decade. We cannot afford another.

Management reaped what they sowed with this newsworthy pilot shortage that will only get worse. With inflation at 40 year highs, we deserve dramatically better - and SOON.

They won’t simply hand it over. They must be forced. Some history:

Leftover CAL management led (loosest possible usage of that word) by Smisek, completely stonewalled us, from merger announcement until the end of 2011. In early 2012, the UAL MEC hired DC lobbying law firm Patton Boggs. The Joint Negotiating Committee then suddenly closed out scheduling in a matter of months.

Management then stonewalled again on economics, both MECs left two June 2012 meetings early, and we met again and voted to take a strike vote the following month. Most of the media made it sound as though a strike was imminent. Pilots picketed. UAL saw a massive loss in future bookings. We finally secured an Agreement In Principle in early August 2012, and had a TA that November 2012.

The moral of the story is that it sometimes takes aggressive action to achieve better results.

This concessionary TA is a slap in the face to our entire pilot group. The pay rates fall behind our January 2019 rates adjusted for CPI, and they fall massively behind historically good rates like May 2001. There is no increase to 16 % company DC. Changes all over the book have caused consternation and anger in our ranks for good reason. It is a near certainty that an overwhelming majority of us voted no on this TA. It is the wrong TA for our times.

Now it is time to show this MEC in no uncertain terms: We are United. We will not stand idly by and witness the destruction of our careers. Our peers at other airlines have been picketing. Why haven’t we? Enough is enough.

Fraternally,
CA TB
Former MEC NC Member/Former LEC S/T
(initials only against forum rules to post names)
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Old 07-29-2022, 05:04 PM
  #2  
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Clearly, but the question remains; Why did that TA ever see the light of day?

For all the facts and historical perspective above, the problem is that our representatives felt that it was worthy and sent it out for ratification. If the NC truly felt is was the best last and final offer and needed the mandate of a majority rejection to advance the union position, fine. But they didn't do that, they hid the vote and used this dismal TA as the starting point. The company has no incentive to negotiate with this MEC until TA2 get shot down in flames, then we all get to mark time for a bit. My guess, 2-3 years.
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Old 07-29-2022, 05:38 PM
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Originally Posted by awax View Post
Clearly, but the question remains; Why did that TA ever see the light of day?

For all the facts and historical perspective above, the problem is that our representatives felt that it was worthy and sent it out for ratification. If the NC truly felt is was the best last and final offer and needed the mandate of a majority rejection to advance the union position, fine. But they didn't do that, they hid the vote and used this dismal TA as the starting point. The company has no incentive to negotiate with this MEC until TA2 get shot down in flames, then we all get to mark time for a bit. My guess, 2-3 years.
TA2 isn’t going to get shot down. The company needs it to staff their expansion and they’ll take just enough of the garbage out of TA1 to ensure that it passes. They’ll bump the rates, keep our current scope language, and pay LCA’s by the trip. Over 50% will vote yes rather than wait the 2-3 years for a full rewrite. The reserve rules and scheduling efficiencies in TA1 will remain. Once TA2 provides the needed incentive to fully staff the training department, our leverage will evaporate and we’ll live under the agreement for years past the amendable date.
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Old 07-29-2022, 05:50 PM
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Originally Posted by Hedley View Post
TA2 isn’t going to get shot down. The company needs it to staff their expansion and they’ll take just enough of the garbage out of TA1 to ensure that it passes. They’ll bump the rates, keep our current scope language, and pay LCA’s by the trip. Over 50% will vote yes rather than wait the 2-3 years for a full rewrite. The reserve rules and scheduling efficiencies in TA1 will remain. Once TA2 provides the needed incentive to fully staff the training department, our leverage will evaporate and we’ll live under the agreement for years past the amendable date.
Bingo. Although I think the -550 scope will remain but the PUPs idea will get tossed out. The commuters I’ve talked to seem willing to sell out on scope for jumpseats; you fix the LCA and instructor stuff and you get a huge voting block. The scheduling efficiencies will be held on by the company as tightly as possible. They’ll be the last thing to go and unfortunately the biggest quality of life hit.
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Old 07-29-2022, 05:51 PM
  #5  
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Originally Posted by Hedley View Post
TA2 isn’t going to get shot down. The company needs it to staff their expansion and they’ll take just enough of the garbage out of TA1 to ensure that it passes. They’ll bump the rates, keep our current scope language, and pay LCA’s by the trip. Over 50% will vote yes rather than wait the 2-3 years for a full rewrite. The reserve rules and scheduling efficiencies in TA1 will remain. Once TA2 provides the needed incentive to fully staff the training department, our leverage will evaporate and we’ll live under the agreement for years past the amendable date.
I hope you're wrong, for that POS to be starting point is unconscionable. I guess we'll see just how angry we are collectively in a few months.
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Old 07-29-2022, 06:02 PM
  #6  
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Originally Posted by Hedley View Post
TA2 isn’t going to get shot down. The company needs it to staff their expansion and they’ll take just enough of the garbage out of TA1 to ensure that it passes. They’ll bump the rates, keep our current scope language, and pay LCA’s by the trip. Over 50% will vote yes rather than wait the 2-3 years for a full rewrite. The reserve rules and scheduling efficiencies in TA1 will remain. Once TA2 provides the needed incentive to fully staff the training department, our leverage will evaporate and we’ll live under the agreement for years past the amendable date.
I disagree. The reserve stipulations, no fix to pool display, vacation pay, pto accrual, ... huge concessions to gain measly hr here hr there benefits. Ta1 was so manpower negative they can't justify the "1.3B" gain when they are giving 1.5b in work rules. We aren't even keeping up with regional work rules let alone being the world's leading airline.
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Old 07-29-2022, 07:41 PM
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Originally Posted by Boeing Aviator View Post
The Wrong TA for Our Times

Must Read: From my friend. He has given me his permission to post this on his behalf. Name removed as to not violate forums rules.

The Wrong TA for Our Times

No white paper has the space to dive into every detail of any complex pilot contract TA. The bottom line is that this career historically contained three pillars: Money, Days Off and Retirement. Our profession already lost too much Money, too many Days Off and too much Retirement during the lost decade of the 2000s.

The worldwide pilot shortage did not happen by accident: airline management, aided by courts, media and politicians, spent decades systematically destroying our contracts, cheapening our profession. This drastically accelerated after 9/11. They used a one-time tragedy to eliminate our traditional 98% income replacement A + B fund retirements, while forcing higher productivity for far lower inflation adjusted rates.

By late 2012, as UPA negotiations were completed, the overall MEC consensus was that the UPA was still a concessionary contract, but justified as a step in the right direction. The initial hourly pay rate raises were modest for all pilots except pre-merger UAL 320 pilots. We had to wait until later years of the UPA for better rates, and did not get truly decent rates again until the Delta bump activated the me too clause.

Severe and persistent inflation is as much of a reality as the severe pilot shortage is. Our last raise on January 1 2019 gave us a 12 year WB CA rate of $351.87. Using the BLS CPI inflation calculator, that top rate needs to be $414.22, right NOW, TODAY, to break even with January 2019 adjusted for official CPI. Worse, take the May 2001 UAL 12 Year B777 CA rate of $277.30. To break even on the CPI calculator, we need $462.39, right NOW, TODAY!

Yet what does this TA do ? It makes us wait until as long as January 2024 for a maximum rate of $403.45. This TA would have provided pay rate raises that still fall behind inflation, while also allowing concessions in other parts of the book.

Obviously, this does not even begin to address the tremendous loss of Defined Benefit A plan retirement benefits, or compensate us for massively improved productivity since 2001.

Small improvements to LTD are nice, but our total package of annual pilot sick leave accrual and LTD pales in comparison to Delta’s. Their pilots also have short term disability and mutual aid plans. Why don’t we?

The new savings plan does not improve upon the 16% company Defined Contribution. Defined Benefit is still 0% for 2005 and after hires and very small remaining amounts for 2001 and earlier hires. The TA only creates a new vehicle for spill that exceeds IRS PRAP limits. Excess previously spilled to our RHA, and now spills to our active HRA. 16% DC is still 16% DC.

Negotiations are sometimes referred to as a give and a take, yet all management did for an entire lost decade of the 2000s, was take. The same can be said of the past two years. We fall further behind every day. We survived one lost decade. We cannot afford another.

Management reaped what they sowed with this newsworthy pilot shortage that will only get worse. With inflation at 40 year highs, we deserve dramatically better - and SOON.

They won’t simply hand it over. They must be forced. Some history:

Leftover CAL management led (loosest possible usage of that word) by Smisek, completely stonewalled us, from merger announcement until the end of 2011. In early 2012, the UAL MEC hired DC lobbying law firm Patton Boggs. The Joint Negotiating Committee then suddenly closed out scheduling in a matter of months.

Management then stonewalled again on economics, both MECs left two June 2012 meetings early, and we met again and voted to take a strike vote the following month. Most of the media made it sound as though a strike was imminent. Pilots picketed. UAL saw a massive loss in future bookings. We finally secured an Agreement In Principle in early August 2012, and had a TA that November 2012.

The moral of the story is that it sometimes takes aggressive action to achieve better results.

This concessionary TA is a slap in the face to our entire pilot group. The pay rates fall behind our January 2019 rates adjusted for CPI, and they fall massively behind historically good rates like May 2001. There is no increase to 16 % company DC. Changes all over the book have caused consternation and anger in our ranks for good reason. It is a near certainty that an overwhelming majority of us voted no on this TA. It is the wrong TA for our times.

Now it is time to show this MEC in no uncertain terms: We are United. We will not stand idly by and witness the destruction of our careers. Our peers at other airlines have been picketing. Why haven’t we? Enough is enough.

Fraternally,
CA TB
Former MEC NC Member/Former LEC S/T
(initials only against forum rules to post names)
Copied from Facebook:

“Nobody has told you yet or you
haven't read or figured it out yet as to
how we arrived to where we are now?
Let me tell you, and I hope you have
read it before Kinder removes it from
this post. The former MEC Chairman
Todd Insler is the architect of this TA.
December 2021 the company proposed
such a "low ball" offer to this MEC that
even they rejected it. March 1, 2022
Mike Hamilton becomes MEC Chairman
and the company sweetens the pot to
where we arrive at our proposed Tumi
TA. The timing of all this is intriguing.
Insler is running for ALPA National
President and finds it hard to present
any accomplishment after an unheard
of 3 consecutive terms. Scott Kirby
hasn't got the manpower to fulfill his
United Next Plan and needs the
cooperation from John Ferg; Sorry.
Cross that out. Todd Insler, to get Mike
Hamilton to sell this mutual beneficial
deal for both Insler and Kirby. The Tumi
TA will thereby allow Kirby to pull more
productivity from the pilot ranks and
Insler is able to stick a feather in his
cap by getting a 2 week industry
leading contract for his resume. The
only problem is those dam pilots keep
asking too many questions about how
this Tumi TA is concessionary and will
cause an overall loss both financially
(Inflation), and quality of life hardships
(05:00 report time). So briefly, the
majority of the MEC is going forward
with their agenda to get Insler elected
to ALPA National Presidency at the
expense of the line pilot and their
families. So now you know how we got
here. Also, if this response is removed,
like so many others that kinder has
removed to remain a sycophant of
Insler's, I will post it on more than one
open and uncensored forums that I
suggest you subscribe to in order to
know how and why we have gotten into
such a precarious place.”
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Old 07-29-2022, 08:57 PM
  #8  
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Originally Posted by awax View Post
Clearly, but the question remains; Why did that TA ever see the light of day?

For all the facts and historical perspective above, the problem is that our representatives felt that it was worthy and sent it out for ratification. If the NC truly felt is was the best last and final offer and needed the mandate of a majority rejection to advance the union position, fine. But they didn't do that, they hid the vote and used this dismal TA as the starting point. The company has no incentive to negotiate with this MEC until TA2 get shot down in flames, then we all get to mark time for a bit. My guess, 2-3 years.
The TA was sent for membership ratification for the following:

1. This TA was Todd Insler's baby. Hamilton simply carried it the last three yards and Spiked the ball.
2. it was convenient because it was expedient.
3. It was deemed that a 2 year or short deal would be "OK" to accept, even if it contained concessions...Again, it was a "short deal in duration."
4. The MEC "agreed" with SK on his United Next agenda and felt like they should "Do their part" to help their buddy.
5. They may (emphasize may) have been offered favorable positions as is past custom within the union ranks. Q: How many former CAL MEC reps/NC reps, etc., are now members of the "New United" Management, or LCA/Evaluator team? Same goes for former Legacy UAL? How many people get cushie FODM jobs at 92 hours a month?
6. Because ALPA National doesn't really make you adhere to minimum standards. The ALPA National lawyers are the same ones who twice approved a Continental MEC Joint Venture Flying LOA that would have "totally gutted scope." Thank God this was defeated by a narrow margin of the MEC at a vote. Imagine our industry if it had passed....
7. The reps feeling arrogant say. "we must protect the pilots from themselves."
8. The reps feel the pre-pandemic and pre pilot shortage polling data in 2017 was what they should use in 2022.
9. The MEC Chairman isn't really a line pilot and therefore can't and doesn't relate to line pilot issues. Likely has never sat reserve since early 1997.
10. The MEC Chairman, a defacto member of the NC by Constitution only has 2500 hours total time since 1997 and doesn't understand quality of life and scheduling/reassignment issues or concerns.
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Old 07-29-2022, 09:03 PM
  #9  
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Originally Posted by Hedley View Post
TA2 isn’t going to get shot down. The company needs it to staff their expansion and they’ll take just enough of the garbage out of TA1 to ensure that it passes. They’ll bump the rates, keep our current scope language, and pay LCA’s by the trip. Over 50% will vote yes rather than wait the 2-3 years for a full rewrite. The reserve rules and scheduling efficiencies in TA1 will remain. Once TA2 provides the needed incentive to fully staff the training department, our leverage will evaporate and we’ll live under the agreement for years past the amendable date.
TA 2 may not be negotiated fast enough to get shot down. internet polling and telephone polling will take about 2 more weeks. Then, the data has to be mined. Information has to be racked and stacked. Fancy pie charts, and graphs, etc., must be prepared.

I predict LC 171 will fall within a month. Then, it's a brand new world. The company would have to offer big money, and in 2 weeks time in order to change our "status quo" in union/ALPA terms. After that SFO falls in October. Likely before the BOD.
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Old 07-30-2022, 02:56 AM
  #10  
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Originally Posted by Aquaticus View Post
I disagree. The reserve stipulations, no fix to pool display, vacation pay, pto accrual, ... huge concessions to gain measly hr here hr there benefits. Ta1 was so manpower negative they can't justify the "1.3B" gain when they are giving 1.5b in work rules. We aren't even keeping up with regional work rules let alone being the world's leading airline.
TA1 was full of concessions with a few minor improvements sprinkled in. I still don’t have much faith in pilots in general. We like to talk tough, especially on anonymous forums, but at the end of the day we rarely follow through. I think that the polling will show that over 50% want a better deal quickly vs waiting for a complete rewrite. Most of the questions in the poll focused on fixing this deal, not starting over. There is enough fear and concern in the group that a major recession will erase the growth plans and our leverage. The bird in the hand crowd is bigger than many want to admit. If they increase the hourly rate to 10% to start with the 5% annual bumps, keep our current scope, pay LCA’s by the trip, and possibly keep the current 1000 show for first day of reserve, I think that it will pass. They need a quick deal to staff the training department for the expansion. They also know that these tweaks are much cheaper than waiting to spend more while also slowing their expansion to meet training limitations. If they make these changes, the training department gets staffed, their expansion will be possible, and they’ll hold onto the efficiency gains for years to come. I don’t like the option, but it’s how I see it being played out.
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