overview of ta key...
TRANSCRIPT
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