67 is dead,
#351
Yet outside agencies increased the age 5 years and not only did it not come up in negotiations we dramatically improved the program in 2012. When the FAA mandated better rest facilities I don't remember the cost giving the company leverage. When FAR 117 was mandated we negotiated several improvements.
#352
Its already in the current contracts at all the majors. The company would need to reopen the contract if they wanted to change it. The company agreed to at least a 30% increase in disability payments in the 2012 contract.
Lots of things increase the companies costs and they don't jump in to change it. Swapping the Mad dogs for Boeings and Airbus was a nice pay raise for the pilot group as well as the ongoing switch from the 7ER to the A330.
If the company did demand a change its negotiating capital for the pilot side. That's a good thing. Kind of like the FAR 117 implimentation.
Lots of things increase the companies costs and they don't jump in to change it. Swapping the Mad dogs for Boeings and Airbus was a nice pay raise for the pilot group as well as the ongoing switch from the 7ER to the A330.
If the company did demand a change its negotiating capital for the pilot side. That's a good thing. Kind of like the FAR 117 implimentation.
I don’t understand what scare tactic you are talking about.
I am saying this will be a big cost increase to the company. Nobody can deny that.
They will say this was not accounted for in the last negotiations and have the numbers to back it up. They may not ask for a reduction in LTD, but they will use it as leverage against pay increase, vacation improvements, DC contributions, etc.
We can act as tough as we want and say we won’t budge, but bravado only takes you so far. Cold hard numbers are what negotiations are about. This would be a win for the company next negotiation cycle because they have numbers to back it up.
I am saying this will be a big cost increase to the company. Nobody can deny that.
They will say this was not accounted for in the last negotiations and have the numbers to back it up. They may not ask for a reduction in LTD, but they will use it as leverage against pay increase, vacation improvements, DC contributions, etc.
We can act as tough as we want and say we won’t budge, but bravado only takes you so far. Cold hard numbers are what negotiations are about. This would be a win for the company next negotiation cycle because they have numbers to back it up.
Company contributions will not be paid for periods of temporary or long-term disability following retirement or beyond the later of the FAA mandatory retirement age or the date disability benefits cease. If contributions are ceased due to reaching the FAA mandatory retirement age, in no event will such contributions be resumed should the FAA mandatory retirement age increase.
#353
Gets Weekends Off
Joined APC: Feb 2018
Posts: 427
I am not arguing that and you are kind of missing the point. It DOES NOT specify the value or prohibit an increase in value to be used in future negotiations. It just protects pilots in case of an age increase in the current cycle.
Both parties have a numeric value they are trying to reach in every negotiation.
I am saying the company will say the LTD benefit has had a substantial increase in value. They will use this in negotiations.
Are you suggesting they won’t?
”We can’t increase DC without some give in LTD benefit.”
”According to 26.c.3.c LTD is protected until FAA mandatory retirement age, so we want 20% DC”
”Yes, we understand 26.c.3.c. We intend to keep that benefit for the pilots, but it has had a significant increase in value with the retirement age increase. Due to its value increase of X, we are unable to increase DC.”
Again, negotiations are about cold hard numbers, not emotions and bravado. This gives them numbers.
#354
Yes, the PWA says FAA mandatory retirement age.
I am not arguing that and you are kind of missing the point. It DOES NOT specify the value or prohibit an increase in value to be used in future negotiations. It just protects pilots in case of an age increase in the current cycle.
Both parties have a numeric value they are trying to reach in every negotiation.
I am saying the company will say the LTD benefit has had a substantial increase in value. They will use this in negotiations.
Are you suggesting they won’t?
”We can’t increase DC without some give in LTD benefit.”
”According to 26.c.3.c LTD is protected until FAA mandatory retirement age, so we want 20% DC”
”Yes, we understand 26.c.3.c. We intend to keep that benefit for the pilots, but it has had a significant increase in value with the retirement age increase. Due to its value increase of X, we are unable to increase DC.”
Again, negotiations are about cold hard numbers, not emotions and bravado. This gives them numbers.
I am not arguing that and you are kind of missing the point. It DOES NOT specify the value or prohibit an increase in value to be used in future negotiations. It just protects pilots in case of an age increase in the current cycle.
Both parties have a numeric value they are trying to reach in every negotiation.
I am saying the company will say the LTD benefit has had a substantial increase in value. They will use this in negotiations.
Are you suggesting they won’t?
”We can’t increase DC without some give in LTD benefit.”
”According to 26.c.3.c LTD is protected until FAA mandatory retirement age, so we want 20% DC”
”Yes, we understand 26.c.3.c. We intend to keep that benefit for the pilots, but it has had a significant increase in value with the retirement age increase. Due to its value increase of X, we are unable to increase DC.”
Again, negotiations are about cold hard numbers, not emotions and bravado. This gives them numbers.
Look, I'm mostly agnostic on 67, with a slight lean against. I just don't see this argument as a compelling one against 67.
#355
Gets Weekends Off
Joined APC: Feb 2008
Posts: 19,689
One thing I should mention. I think several people on here are way overestimating the costs disability would incur. It's less than a 4% yearly raise to the contract.
#356
Small point of order, just for clarity for the masses. The switch is from the 767-300 to the 330 (pay band). Only 1 in 4 of the current 7ER fleet is a WB which needs replacing.
Except the contract DOES account for 67, because the PWA clearly states in 26.C.3.c:
They may not like it, but they will have ZERO traction to get a direct consession from 67. Of course, that doesn't mean they won't attempt to extract indirect things in the form of intransigence or a reduction in thier topline number (which we will never really know anyway...)
Except the contract DOES account for 67, because the PWA clearly states in 26.C.3.c:
They may not like it, but they will have ZERO traction to get a direct consession from 67. Of course, that doesn't mean they won't attempt to extract indirect things in the form of intransigence or a reduction in thier topline number (which we will never really know anyway...)
#357
100% agree with that. And we better extract a painfully high value (to 180toAJ's point above) if we are to even consider any changes. Like when AA's system allowed most pilots to drop thier Christmas schedule a few years ago, and APA had management over a barrel and extracted several big improvments to bail them out.
#358
100% agree with that. And we better extract a painfully high value (to 180toAJ's point above) if we are to even consider any changes. Like when AA's system allowed most pilots to drop thier Christmas schedule a few years ago, and APA had management over a barrel and extracted several big improvments to bail them out.
In order for us to reopen the contract to hash this out, both the company and the union have to agree to it first, correct?
#360
Gets Weekends Off
Joined APC: Feb 2018
Posts: 427
100% agree with that. And we better extract a painfully high value (to 180toAJ's point above) if we are to even consider any changes. Like when AA's system allowed most pilots to drop thier Christmas schedule a few years ago, and APA had management over a barrel and extracted several big improvments to bail them out.
With that said, the nerds on VA Ave will be punching away on their calculators. The next contract cycle would be some defense protecting 401k contributions and LTD. I’m not saying we wouldn’t get gains, but negotiating capital would be spent on something a lot of us didn’t necessarily want. The ability to work 2 more years and the costs associated with it.
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