Al Legheny
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- Jul 21, 2009
- 223
- 148
"Fences. that seems to be the key word for your next attempt at avoiding the Nicolau. Fences cost the company money because they can not move assets around like they want. How much more is usapa and the east willing to give the company to get what you could not during arbitration? What leverage does usapa have to get anything?"
The actual cost of the current de-facto fence is about $10 million per year according to Doug Parker. This has been publically stated in several public forums including a 3rd quarter conference call from 2009. He has publically stated this to the financial press and it was in direct response to questions about how much keeping the two pilot groups apart was costing the company.
$10 million dollars a year is not a large number to deal with in negotiations. The two East lump sum payments are $35 million. Using this as an example, the actuall gross cost per pilot would be around $3300.00 per year. Figure in the taxes (roughly [one third], 1/3 or that) and you are loolking at about $2400.00 per year net for each East pilot. That is not a tiny sum but it is not a large one either. This is the price it is costing the East in negotiations.
This $10 million cost pales in contrast to some of the other hidden costs in the Kirby proposal. One that few East pilots understand is West scheduling. The East gave the company permission to have pref-bidding long ago, but it was on very specific terms. Bidding lines where a computer puts stuff in the there because it is legal but not commuteable is scary. The company has created many more commuters with the closing of LGA and BOS. This pilot group will not give one inch, (IMHO) on any item that makes our working lives more difficut than it is now. When you are forced to commute the idea of the company imposing overfly and 95 hour pay caps as standard is just insane.
The Kirby proposal also has very stringent reductions on disability and sick that will not fly with the older East pilot group. I have a full sick bank, 1500 hours, and I will not give up a years pay for nothing or a mere pittance to get the West system. Any pilot with a full sick bank or nearly full and approaching his retirement would be a fool to sell it back to
the company for their current offer. Watch for many more on sick leave in June of 2011, one year from now. At that point the age 65 crowd with a full bank can use all thier sick time 18 months worth and walk out the door to retirement.
The $10 million dollar question is just not that big a deal.
The actual cost of the current de-facto fence is about $10 million per year according to Doug Parker. This has been publically stated in several public forums including a 3rd quarter conference call from 2009. He has publically stated this to the financial press and it was in direct response to questions about how much keeping the two pilot groups apart was costing the company.
$10 million dollars a year is not a large number to deal with in negotiations. The two East lump sum payments are $35 million. Using this as an example, the actuall gross cost per pilot would be around $3300.00 per year. Figure in the taxes (roughly [one third], 1/3 or that) and you are loolking at about $2400.00 per year net for each East pilot. That is not a tiny sum but it is not a large one either. This is the price it is costing the East in negotiations.
This $10 million cost pales in contrast to some of the other hidden costs in the Kirby proposal. One that few East pilots understand is West scheduling. The East gave the company permission to have pref-bidding long ago, but it was on very specific terms. Bidding lines where a computer puts stuff in the there because it is legal but not commuteable is scary. The company has created many more commuters with the closing of LGA and BOS. This pilot group will not give one inch, (IMHO) on any item that makes our working lives more difficut than it is now. When you are forced to commute the idea of the company imposing overfly and 95 hour pay caps as standard is just insane.
The Kirby proposal also has very stringent reductions on disability and sick that will not fly with the older East pilot group. I have a full sick bank, 1500 hours, and I will not give up a years pay for nothing or a mere pittance to get the West system. Any pilot with a full sick bank or nearly full and approaching his retirement would be a fool to sell it back to
the company for their current offer. Watch for many more on sick leave in June of 2011, one year from now. At that point the age 65 crowd with a full bank can use all thier sick time 18 months worth and walk out the door to retirement.
The $10 million dollar question is just not that big a deal.