overview of ta key...

2016 TA VIDEO 1

Overview ofTA Key

AchievementsIPA Negotiation Team

TA Key Achievements1. 14.65% Initial Hourly Pay Raise (29.04% compounded total)2. 33-40% A-Plan Improvement3. IPA International Flying Growth and Protections4. Reduced Scheduled Block and Duty Limits5. Reserve Call-Out Reduced from 15 to 14 Days6. B-767 Rest Facility Required for Augmented Operations7. New Vacation Flexibility Options8. Transfer/Pickup Trips via New Trip Board9. New Management Flying Limitations10. Increased IPA Sim Instructor Jobs11. More Private Sleep Rooms at More Gateways12. Reserve Sim Support Assignments Greatly Reduced13. RIF Rules Significantly Improved14. Signing Bonus: up to $60,000/$40,000 (Capt/FO)15. UPS Healthcare Maintained

$262

$300 $309 $318 $328 $338

$186$213 $219 $226 $232 $239

2016 TA Hourly Pay

CAPTTOP RATE

F/OTOP RATE

+14.65%+29.04%

SEP 2020

SEP2017

SEP 2016

+3%

SEP2018

+3%+3%

SEP2019

+3%

29.04% compounded raises, 26.65% simple sum of raises

UPS Average Aircraft Size

75711%

A3014%

76737%

M1F22%

74Y16%

IPA Crew Block Hours

0

50,000

100,000

150,000

200,000

250,000

757 A30 767 M1F 74Y

Freighter Aircraft Max Payload

Average IPA Operating Aircraft Size:Closest to 767-- but well below 747

IPA Weighted Average

2016 TA: Industry Rate Comparison

$226.21$249.30 $254.70

$295.27 $300.00

Delta American United FedEx WB 2016 TA

B767-300 Top Captain Hourly Rates

Passenger Average: $243.40

2016 TA

2016 TA: Industry Rate Comparison

$270.25$293.11 $305.39 $295.27 $300.00

Delta American United FedEx WB IPA 2016 TA

Highest Actual Pilot Pay Rates (B777,A330, etc.)

7% of Captains @

this Rate

2016 TA

Average Hire Year of

Captains @ this Rate:

1984

16% of Captains @

this Rate

Average Hire Year of

Captains @ this Rate:

1984

21% of Captains @

this Rate

Average Hire Year of

Captains @ this Rate:

1984

82% of Captains @

this Rate

100% of Captains @

this Rate

Furlough Longevity Pay Restoration

• All former furloughees will have pay longevity restored by the length of time on furlough

MPRP

• “Minimum Pay for Reserve Period”• 4 credit hours towards bid line credit

for each reserve call-out period without an assignment– Zero in current contract

MPRP Example

Trip Assignment:

ON CALL

Current Contract Pay Credit: 75:00

TA 2016 Pay Credit:Trip Credit: 74:44

+MPRP S29: + 4:00+MPRP M30: + 4:00

82:44

Improvements inFlat Dollar A-Plan Benefit

Captain Increase F/O IncreaseCurrent Contract $3,000 $2,400

Jan 2017* $4,000 +$1,000 $3,200 +$800Jan 2020 $4,100 +$1,100 $3,280 +$880

Jan 2021 to next CBA $4,200 +$1,200 $3,360 +$960

A Plan Benefit: Annual benefit equal to the greater of 1% of FAE times Years of Service (YOS) Flat Dollar Benefit times the years and months of service credits (not to exceed 30 years)

* If age 65 between June 1 - December 31 2016 included

Captain Flat Dollar Increases 33% - 40%

$90,000 $90,000 $90,000 $90,000 $90,000

$120,000 $120,000 $120,000 $123,000 $126,000

2017 2018 2019 2020 2021-Next CBARetirement Year - Captain with 30 Years of Service

Current CBA Tentative Agreement

$72,000 $72,000 $72,000 $72,000 $72,000

$96,000 $96,000 $96,000 $98,400 $100,800

2017 2018 2019 2020 2021-Next CBARetirement Year - FO with 30 Years of Service

Current CBA Tentative Agreement

F/O Flat Dollar Increases 33% - 40%

25 26 27 28 29 30

UPS

Ret

irem

ent a

s %

of F

edEx

Years of Service at Retirement

UPS Retirement(A&B Combined Value) versus FedEx

Captain, Age 65 Retirement

CURRENT UPS RETIREMENT VS. FEDEX

-12% -16%

-8% -5%

-3% +1% +2%

-2%

+7% +10%

+16% +20%

+6% +2%

+10% +14%

+18% +22%

New International Routes• CGN-IST-TLV route will be flown by IPA

– Begins Bid Period 17-06

• CGN-SNN-DUB route will be flown by IPA– Begins Bid Period 18-06

• UPS Penalty for missing route handover dates

• TLV route returns to IPA with NO “free” 4000 credit hour management proficiency flying snapback currently in the 2006 CBA

2016 TACommon Carriage to US Limits

New TA Limit:50-70 cans per week from NRT to Eastern U.S.50-70 cans per week from NRT to Western U.S.Total Limit of 100-140 cans per week from NRT to U.S.

358 flights per week from NRT to 20 U.S. cities

5-can per flight current contract limit: UPS can theoretically move up to 1,790 cans per week on common carriage from NRT to the U.S.

2016 TACommon Carriage to US Limits

295 flights per week from FRA to 22 U.S. cities

New TA Limit:50-70 cans per week from FRA to Eastern U.S.50-70 cans per week from FRA to Western U.S.Total Limit of 100-140 cans per week from FRA to U.S.

5-can per flight current contract limit: UPS can theoretically move up to 1,475 cans per week on common carriage from FRA to the U.S.

New Domestic Block Limit• 7:30 (8:00) maximum scheduled block time in

domestic duty period No more SDF to West Coast to SDF (and

vice-versa) + many other combinations Applies even during December Peak Period

TA Reduced Scheduled Duty Limits (Domestic)

8

9

10

11

12

13

14

15

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Sche

dule

d Du

ty L

imit

(Hou

rs)

Report Time (Local Domicile Time)

Current 2016 TA FAR117 117 3seg

TA Reduced Scheduled Duty Limits (Domestic)

Reduced Scheduled Duty Limits (International)

14.5

13.5

12.25

14.5

1312.5

12

14

Unaugmented - 1to 2 Legs

Unaugmented - 3Legs

Unaugmented - 4Legs

Augmented

Current TA

56% of International Duty Periods

5% of International Duty Periods

1% of International Duty Periods

38% of International Duty Periods

FRMS Protections

• FAR 121 (and FAR 117) allow air carriers to seek rest and duty exemptions on particular routes using FRMS

• UPS now contractually prohibited from seeking FAR exemptions from FAA using FRMS without IPA written approval

Reserve Call-Out Reducedfrom 15 to 14 Days

• 1 less scheduled on-call day per month for all Reserves– 14 maximum on-call days per pay period

• Can only be assigned or revised into:– 1 Calendar day off (domestic) or– 1-2 Calendar days off (international)

• Always receive Late Arrival Pay if assigned or revised more than 2 hours into a calendar day off

• Other limitations apply, see Executive Summary or TA

B-767 Crew Rest

Module

• Required for all augmented duty periods– In-Service by November 2017– Increased augmented Rest

Requirements if first in-service date is delayed beyond Nov 2017

– Joint UPS/IPA design

New B-767 Crew Rest ModuleArtist Rendering

New Vacation Flexibility Options• At beginning of a bid period you can elect to either:

– Use existing Vacation Rules or– Opt-in to OCV

Vacation Days in Pay Period

You can: Or:

14 days Turn into 4 weeks off, guaranteed

Paid 5 hours per vacation day

7 to 13 days Slide your vacation(2018)

Paid 5 hours per vacation day

• Banked Vacation (BV) days to drop a trip, reserve days, airport standby, LCO, RCID, or restore deficit throughout the year– If unused at end of year, paid 5 hours per vacation day

New BidPro Trip Board• Post your trips for other crewmembers to pickup• Drop down to zero credit hours (in one pay period, with

37.5 hours in other pay period)• Pickup to 208 hour bid period cap with Posted Trips• Transfer approval must be granted unless pickup

violates contract or FAR– Transfer automated and nearly instantaneous

• In place at American Airlines as a subscription• UPS pays subscription costs for 3 years for all pilots

– Then voluntary subscription in Sep 2019 at $15.98/month• Also view and pickup Open Time using Trip Board• Company cannot view Posted Trips• Provides customizable mobile alerts when

new Posted Trip or Open Time posted

Your SchedulePosted and OpenTime Trips

MEF Flying Limitation

• Total MEF cannot exceed 0.25% of total annual block time flown by IPA crewmembers

• No exceptions:– Includes MEF flying during Peak– Includes MEF flying during Open Time Ban

Management Emergency Flying =IPA Displacement

• Every MEF duty period will generate one less duty day on a subsequent bid package Reserve Line– MEF “Reserve Recovery Lines” in future bid

packages will be reduced on a 1:1 basis– They fly, you don’t!– These lines continue to be paid at the

higher of bidline credit or Guarantee

IncreasedIPA Sim Instructor Jobs

• 75% ALL SIMS (except CQ MV and LOE)

• 25% Non-CQ MV

OCT 2016

• 75% ALL SIMS (except CQ MV and LOE)

• 50% Non-CQ MV

SEP 2019

• 75% ALL SIMS (except CQ MV and LOE)

• 75% Non-CQ MV• 10% CQ MV

SEP 2021

TA: New GatewayPrivate Sleep Rooms

SDFPrivate: +54Semi: +50

add Sound Proofing

ONTPrivate: +8

PHLPrivate: +14

RFDPrivate: +8

add Sound Proofing

CGN*+TBD

90+* Added Private Sleep Rooms System-Wide

EWRPrivate: +6

Reserve Sim Support Assignments Greatly Reduced

• 15 days prior to pay period, known Sim Support will be assigned to IPA Sim Instructors

• Short-notice Sim Support assigned as follows:1. IPA Instructors on Training Center work days2. IPA Instructors on Reserve—voluntary decline3. IPA Pilots on Reserve—voluntary decline4. Available FQS5. IPA Reserve Pilot in RADAR order—no decline

• Maximum of 2 assignments per pay period (if any other Reserve pilot on list has less than 2)

• Maximum of 3 assignments per pay period (all cases)

RIF Rules Significantly Improved

• Crewmembers can use seniority for seat and domicile bidding during a RIF

• Creates higher UPS costs and provides disincentives for furloughing

Signing Bonus• Up to $60,000 (Captain)• Up to $40,000 (First Officer)• Highest crew status (active or by-passed) between Jan 1,

2013 and ratification• Paid in two installments in separate tax years (Ratification

Date plus 30 days and April 1, 2017)• Must be on seniority list on Date of Ratification• Full amount if your total paid credit hours meets or exceeds

total guaranteed hours from Jan 27, 2013 to Jul 16, 2016– Hours counted: PP guarantee/line credit, trip trades, open time,

JA, Occupational Leave– No reduction for Military, Furlough, VJPP, sick days, vacation

time• Prorated if total paid hours less than guarantee

UPS Healthcare Maintained• Maintained UPS provided medical coverage,

including current PPO 90/10 plan (“Option 2”)• Established fixed crewmember premium

contributions for each plan and each year of TA– New premiums reflect 17% of UPS projected

healthcare costs (compared to 15% in 2006)– Fixed at 2021 rates until next contract

• Added Flex 80/20 HSA Plan– Lower rates than current 2016 medical plan rates

TA Medical PremiumsPer Paycheck (Family)

$85

$158 $168 $179 $191$203

$62 $66 $71 $75 $80

2016 2017 2018 2019 2020 2021 2022

TA: FLEX HSA

TA: PPO

CURRENT

TA Compensation Gains versusHealthcare Cost (Family)

HC Premiums Bonus Pay Rates B Plan

Sep 2016-Aug 2017

$67,470

$34,595$42,203

$50,307$58,932

-$1,267 -$2,079 -$2,357 -$2,654 -$2,971

F/O--5th Year

Sep 2017-Aug 2018

Sep 2018-Aug 2019

Sep 2019-Aug 2020

Sep 2020-Aug 2021

TA Compensation Gains versusHealthcare Cost (Family)

HC Premiums Bonus Pay Rates

Sep 2016-Aug 2017

$101,396

$51,116$61,128

$71,442$82,058

-$1,267 -$2,079 -$2,357 -$2,654 -$2,971

CAPT--15th Year

Sep 2017-Aug 2018

Sep 2018-Aug 2019

Sep 2019-Aug 2020

Sep 2020-Aug 2021

TA Key Achievements1. 14.65% Initial Hourly Pay Raise (29.04% compounded total)2. 33-40% A-Plan Improvement3. IPA International Flying Growth and Protections4. Reduced Scheduled Block and Duty Limits5. Reserve Call-Out Reduced from 15 to 14 Days6. B-767 Rest Facility Required for Augmented Operations7. New Vacation Flexibility Options8. Transfer/Pickup Trips via New Trip Board9. New Management Flying Limitations10. Increased IPA Sim Instructor Jobs11. More Private Sleep Rooms at More Gateways12. Reserve Sim Support Assignments Greatly Reduced13. RIF Rules Significantly Improved14. Signing Bonus: up to $60,000/$40,000 (Capt/FO)15. UPS Healthcare Maintained