100K For F/A Early Outs

I don't know about United current pay rates, but if they are anything close to AA rates of pay, replacing 3 top of scale f/as on a 737 with 3 new hires would reduce the f/a overhead for that flight substantially.  Our current new hire rate is $21.58/hr.  TOS is $49.05.  That would mean a savings of $412.05 on one 15 hour 3-day trip times hundreds of 3-day trips per week. If, like AA, United is self-insured on medical benefits, there should also be a substantial reduction in employee medical costs.
 
 
Not a bad deal if you're at retirement age.

Diminishing returns if you're not quite there, since you'd have to pay COBRA or do Obamacare exchanges for your coverage, and that can quickly eat into what's left after taxes.
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True, though insurance might be available through a spouse/domestic partner?
 
UA has been offering endless temporary FA leaves of absence that, IIRC, involved company provided health care.

A large part of the benefit of the severance program is to end the continual leaves of absence and reduce staffing levels to the point that a joint FA workforce can be created.

people who leave UA and who aren't eligible for Medicare - and even many who do - will buy insurance elsewhere including thru a partner, find another job, or turn to the government for coverage.

The whole reason why more and more companies are not offering retiree health care in any form and are reducing coverage even for active employees - often by using more part-time employees - is because companies are paying more for current health care coverage under the premises that they have to help cover those who don't have coverage as part of ObamaCare.

Companies are doing exactly what companies do in the free market...they aren't going to pay twice.

Since most of the retiree benefits for UA employees were terminated in BK, the company is financially cutting its relationship with those who leave more so than if they had frozen benefits.
 
eolesen said:
Not a bad deal if you're at retirement age.

Diminishing returns if you're not quite there, since you'd have to pay COBRA or do Obamacare exchanges for your coverage, and that can quickly eat into what's left after taxes. Paying to get travel is a new one for me.

Whether or not they get the expected 1100 volunteers will be fun to watch. Where I'm struggling is how they're justifying the $110M this program may wind up costing.
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I guess they are trying by getting it back by the having the combined group having one single contract between the three groups.  
With that kind of money on the table I'm sure some of the people that lost their money in the UA BK would probably take it. 
 
Hell, if they gave us at least half of that offer, many would take it and run. 
20K is an insult.  The sUA people lost money in their BK. It would be cheaper in the long run to offer something more generous and you would get the required numbers. And then some......
 
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eolesen said:
Not a bad deal if you're at retirement age.

Diminishing returns if you're not quite there, since you'd have to pay COBRA or do Obamacare exchanges for your coverage, and that can quickly eat into what's left after taxes. Paying to get travel is a new one for me.

Whether or not they get the expected 1100 volunteers will be fun to watch. Where I'm struggling is how they're justifying the $110M this program may wind up costing.
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They are committed to more than 1100.  Para 18 under awards claims the minimum will be 2100, with 1000 dedicated to PMUAL, 1000 dedicated to PMCAL, and 100 for CMI.  Also, I believe the paying for travel is something new to help offset the cost of the E.O. but just a guess by me
 
 
  1. How many Flight Attendants will be awarded the Enhanced Early Out?
    At this point, management is unable to determine the exact number of Enhanced Early Outs to be awarded but has made a commitment to award at least 1000 Early Outs for pre-merger United, 1000 for pre-merger CO and at least 100 for CMI.
 
Word from a source was the company wanted to offer a buyout to the AMTs but the IBT wouldn't allow it. The ibt wants to include the buyout in a TA that is presently being negotiated. GT
 
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Once again you guys can thank the wonderful ibt.  Who the hell would refuse a buy out option?  Now would have been the time to get it (at least the best offer) the company may very well be in a very better position later at nego time and still may offer one but will more than likely be at a much lower rate.  They should of at least entertained an offer and felt out the membership about it.  Just pathetic as usual from the loser ibt union.  But hey, you all wanted them...
 
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The ibt wouldn't allow it it what GT posted.  And your correct as well, usually it is easier in a TA, however, there will or could be a very good reason (in the companies eyes) why the company AND union would want to put in a TA and is usually to cover some negative and concessions within the very same TA.   It would be much more beneficial to the employees and members to do a completely individual buy-out offer/option.  JMO here but, 99.9% of the time anytime a buy-out is offered within a TA to get the high timers out and new employees in, somewhere within the same TA is concessions for the middle of the road group, but, the high timers are more focused on the EO and knows the concessions will not effect them.   I would NEVER put a buy-out offer within a TA of a contract, keep them as 2 total different issues.  
 
FWAAA said:
News articles are claiming that the total is more than 2,500 FAs; is it possible that the 1,800 number is just from the pre-merger UA side?
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Yep, sure looks that way now that I'm reading AFA's press release a little closer...

2500 off the list? That's huge. Huger than huge.
 
Even if they don't replace the 2500 with lower paid new hires, it's still going to take awhile to amortize that expense.  But, I'm sure they put pencil to paper before making the offer in the first place.
 
jimntx said:
Even if they don't replace the 2500 with lower paid new hires, it's still going to take awhile to amortize that expense.  But, I'm sure they put pencil to paper before making the offer in the first place.
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That shows what a good buyout would do. Many on the sUA side lost money during their BK as well.  So many could not retire at that time. 
The company has already budgeted this and knows they needed people to leave. It's upfront money well spent, while you are profitable. 
All we need now is a better buyout packages on the ground side, instead of the farce that the IAM/Company came up with during the contract. It was a convoluted scheme that couldn't be met, instead of a straightforward package. IMHO, you would get the needed numbers and then some if the package was fair.
 
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