Loss of USPS contract…
04-04-2024, 03:02 PM
#91
Gets Weekends Off
Joined APC: Jun 2013
Posts: 190
I took a computer class in high school where we built a website about as complicated as this one. It's not cosmic.
We can do all the things you say, possibly, but isn't it worth being factually correct in the process? So much on here is just wrong. Nothing I've said is incorrect. Much of what I responded to was. It's ridiculous I get accused of being management just because you don't like what I'm saying.
I support a pension increase for the senior guys. They've earned it. Just let us junior folks have some sort of big DC type plan as well, and don't force on us an antiquated retirement that is reduced by inflation and is at risk to bankruptcy. A choice is beneficial to all.
And let's be honest, TA1 failed because of pay rates. Had they beaten Delta, it would have passed. 14% + Scope and QOL concessions, and it was dead in the water.
We can do all the things you say, possibly, but isn't it worth being factually correct in the process? So much on here is just wrong. Nothing I've said is incorrect. Much of what I responded to was. It's ridiculous I get accused of being management just because you don't like what I'm saying.
I support a pension increase for the senior guys. They've earned it. Just let us junior folks have some sort of big DC type plan as well, and don't force on us an antiquated retirement that is reduced by inflation and is at risk to bankruptcy. A choice is beneficial to all.
And let's be honest, TA1 failed because of pay rates. Had they beaten Delta, it would have passed. 14% + Scope and QOL concessions, and it was dead in the water.
Complaining about being "forced into" a pension. That's a good problem to have.
04-04-2024, 03:25 PM
#92
Gets Weekends Off
Joined APC: Jan 2007
Posts: 1,199
Article published August 19, 2023 contained these quotes:
How much flying are we really going to lose with the failed negotiation with USPS? If 90% of their reliance on air cargo was removed starting in 2021, how different will our day sort and bidpacks look in September compared to what is about to be released today for May?
- The U.S. Postal Service has reduced its volume moved by air transport by more than 90% over the past two years, Postmaster General and CEO Louis DeJoy said in prepared remarks to the agency’s Board of Governors last week.
- Due to the agency’s continued shift away from air transport, today more than 95% of both First-Class mail and packages are moved through the agency’s less-expensive ground transportation system, DeJoy said.
How much flying are we really going to lose with the failed negotiation with USPS? If 90% of their reliance on air cargo was removed starting in 2021, how different will our day sort and bidpacks look in September compared to what is about to be released today for May?
04-04-2024, 03:34 PM
#93
Line Holder
Joined APC: Mar 2024
Posts: 53
I understand why people would want a pension increase. I support that. All I'm asking is not to have a pension increase forced on me and the other pilots who want a bigger DC type plan instead. Seems pretty reasonable to give us a choice to opt for a different plan.
I’m not trying to talk anyone out of a pension but try to understand why some pilots might prefer a plan that places more value in their accounts today, based on the uncertainty of the future, in which retirement may be many years away.
There are a lot of benefits to a pension. But many are underestimating the risk of it, which I don’t know how based on their track record. But the "diversified" retirement stream of a pension is dependent on the financial health of a single company. That doesn't seem diversified. If the market is down for years, then the company would have to add money to the pension. What's going on if the market is in a downturn? The economy is likely tanking, so that's not good for the company's finances, which jeopardizes the value of the pension.
"...as well as significant declines in the value of investments that fund our pension and other postretirement plans, if not offset or mitigated by a decline in plan liabilities, could increase pension and other postretirement expense, and we could be required from time to time to fund the pension plans with significant amounts of cash. Such cash funding obligations could adversely affect our results of operations and liquidity."
I’m not trying to talk anyone out of a pension but try to understand why some pilots might prefer a plan that places more value in their accounts today, based on the uncertainty of the future, in which retirement may be many years away.
There are a lot of benefits to a pension. But many are underestimating the risk of it, which I don’t know how based on their track record. But the "diversified" retirement stream of a pension is dependent on the financial health of a single company. That doesn't seem diversified. If the market is down for years, then the company would have to add money to the pension. What's going on if the market is in a downturn? The economy is likely tanking, so that's not good for the company's finances, which jeopardizes the value of the pension.
"...as well as significant declines in the value of investments that fund our pension and other postretirement plans, if not offset or mitigated by a decline in plan liabilities, could increase pension and other postretirement expense, and we could be required from time to time to fund the pension plans with significant amounts of cash. Such cash funding obligations could adversely affect our results of operations and liquidity."
Last edited by Moneybags; 04-04-2024 at 03:51 PM.
04-04-2024, 03:46 PM
#94
Gets Weekends Off
Joined APC: Dec 2023
Posts: 187
The reason we’ve been losing money on the Postal Contract is because we still have to fly the contracted routes, but we’re not carrying any mail because the Post Office has moved it to ground. That ends 29 Sept when we no longer have to fly the routes. Again, that’s good news for the bottomline of FedEx revenue. And bad news for FedEx pilots because the flying will probably go away.
It actually does make some sense that they would be so foolish/incompetent enough to do so because we've been "overstaffed" for something like 18 months now and yet they still haven't even offered voluntary furloughs. Also instead of working with the USPS to put some mail on some trucks like UPS just did, they instead just lost the whole deal to UPS. I'm fairly certain they didn't plan to lose it and got caught off guard, but now they are trying to play it off as nothing serious and they're tryiing to push the narrative that it's actually a good thing that they dropped the ball on a multi-BILLION dollar contract with a very large, reliable customer that pays on time.
I understand why people would want a pension increase. I support that. All I'm asking is not to have a pension increase forced on me and the other pilots who want a bigger DC type plan instead. Seems pretty reasonable to give us a choice to opt for a different plan.
I’m not trying to talk anyone out of a pension but try to understand why some pilots might prefer a plan that places more value in their accounts today, based on the uncertainty of the future, in which retirement may be many years away.
There are a lot of benefits to a pension. But many are underestimating the risk of it, which I don’t know how based on their track record. But the "diversified" retirement stream of a pension is dependent on the financial health of a single company. That doesn't seem diversified. If the market is down for years, then the company would have to add money to the pension. What's going on if the market is in a downturn? The economy is likely tanking, so that's not good for the company's finances, which jeopardizes the value of the pension. Below are quotes from Company’s latest Annual Report under Risk Factors. It essentially says the pension is a threat to the company's solvency.
"The costs of providing pension and other retirement benefit plans are dependent on numerous assumptions, such as discount rates, expected long-term investment returns on plan assets, future salary increases, employee turnover, mortality, and retirement ages. Changes in actuarial assumptions and differences between the assumptions and actual values, as well as significant declines in the value of investments that fund our pension and other postretirement plans, if not offset or mitigated by a decline in plan liabilities, could increase pension and other postretirement expense, and we could be required from time to time to fund the pension plans with significant amounts of cash. Such cash funding obligations could adversely affect our results of operations and liquidity."
I’m not trying to talk anyone out of a pension but try to understand why some pilots might prefer a plan that places more value in their accounts today, based on the uncertainty of the future, in which retirement may be many years away.
There are a lot of benefits to a pension. But many are underestimating the risk of it, which I don’t know how based on their track record. But the "diversified" retirement stream of a pension is dependent on the financial health of a single company. That doesn't seem diversified. If the market is down for years, then the company would have to add money to the pension. What's going on if the market is in a downturn? The economy is likely tanking, so that's not good for the company's finances, which jeopardizes the value of the pension. Below are quotes from Company’s latest Annual Report under Risk Factors. It essentially says the pension is a threat to the company's solvency.
"The costs of providing pension and other retirement benefit plans are dependent on numerous assumptions, such as discount rates, expected long-term investment returns on plan assets, future salary increases, employee turnover, mortality, and retirement ages. Changes in actuarial assumptions and differences between the assumptions and actual values, as well as significant declines in the value of investments that fund our pension and other postretirement plans, if not offset or mitigated by a decline in plan liabilities, could increase pension and other postretirement expense, and we could be required from time to time to fund the pension plans with significant amounts of cash. Such cash funding obligations could adversely affect our results of operations and liquidity."
04-04-2024, 04:04 PM
#95
Gets Weekends Off
Joined APC: Jan 2007
Posts: 1,199
Guess what...they don't need us. What other realities are we ignoring that will have significant impact on our ability to demand FedEx adds a couple billion dollars to the value of TA1?
04-04-2024, 04:14 PM
#96
Gets Weekends Off
Joined APC: May 2006
Posts: 997
The reason we’ve been losing money on the Postal Contract is because we still have to fly the contracted routes, but we’re not carrying any mail because the Post Office has moved it to ground. That ends 29 Sept when we no longer have to fly the routes. Again, that’s good news for the bottomline of FedEx revenue. And bad news for FedEx pilots because the flying will probably go away.
04-04-2024, 05:15 PM
#97
Gets Weekends Off
Joined APC: Jan 2007
Posts: 1,199
Meanwhile, our much larger domestic fleet flying to places like the Greats and the Grands is out of the job it was purchased for. There's going to be a lot of smaller out stations closing. What is FedEx going to do with the airplanes? More importantly, what is it going to do with the pilots who fly them?
Fedex is shrinking and that started well before we rejected TA1. It still plans to cut $4 billion in operating expenses. Like it our not, we helped them out there by voting to freeze our pay and retirements at rates negotiated in 2015. The longer they can keep it there, the easier it will be for them to make their financial goals. And buy back stock.
04-04-2024, 05:24 PM
#98
Gets Weekends Off
Joined APC: Mar 2021
Posts: 1,311
The reason we’ve been losing money on the Postal Contract is because we still have to fly the contracted routes, but we’re not carrying any mail because the Post Office has moved it to ground. That ends 29 Sept when we no longer have to fly the routes. Again, that’s good news for the bottomline of FedEx revenue. And bad news for FedEx pilots because the flying will probably go away.
04-04-2024, 05:38 PM
#99
Gets Weekends Off
Joined APC: Jan 2007
Posts: 1,199
The postal contract that expires in September was signed in 2017 before being extended in 2020 and has been extremely profitable since it was first signed in January 2001. It’s the primary reason we have grown to the size we are. The Post Office was mandated by law to reorganize its operations in 2022. Less than 2 years ago. That’s what has caused the change we’ve seen since. So guess what? We killed the contract because it was no longer profitable, after 22 years of being extremely profitable. Seems like pretty good CFOing to me.
04-04-2024, 05:40 PM
#100
Gets Weekends Off
Joined APC: Nov 2017
Position: Wichita
Posts: 734
Did that guy just say we’ve been flying USPS routes without USPS mail on them because FedEx has to? So all those boxes and trucks on the ramp with “USPS” written on them are just FedEx freight disguised as mail???
FedEx boned the deal up, per the usual. Plain and simple.
FedEx boned the deal up, per the usual. Plain and simple.
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