2016 TA VIDEO 1 Overview of TA Key Achievements
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- Virgil Miles
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1 2016 TA VIDEO 1 Overview of TA Key Achievements IPA Negotiation Team
2 TA Key Achievements % Initial Hourly Pay Raise (29.04% compounded total) % A-Plan Improvement 3. IPA International Flying Growth and Protections 4. Reduced Scheduled Block and Duty Limits 5. Reserve Call-Out Reduced from 15 to 14 Days 6. B-767 Rest Facility Required for Augmented Operations 7. New Vacation Flexibility Options 8. Transfer/Pickup Trips via New Trip Board 9. New Management Flying Limitations 10. Increased IPA Sim Instructor Jobs 11. More Private Sleep Rooms at More Gateways 12. Reserve Sim Support Assignments Greatly Reduced 13. RIF Rules Significantly Improved 14. Signing Bonus: up to $60,000/$40,000 (Capt/FO) 15. UPS Healthcare Maintained
3 2016 TA Hourly Pay $262 $ % $300 $213 $309 $318 $328 +3% +3% +3% % $338 +3% $219 $226 $232 $239 CAPT TOP RATE F/O TOP RATE SEP 2016 SEP 2017 SEP 2018 SEP 2019 SEP % compounded raises, 26.65% simple sum of raises
4 UPS Average Aircraft Size IPA Crew Block Hours 250,000 Freighter Aircraft Max Payload M1F 22% 74Y 16% % A30 14% 200, , ,000 IPA Weighted Average % 50, A M1F 74Y Average IPA Operating Aircraft Size: Closest to but well below 747
5 2016 TA: Industry Rate Comparison B Top Captain Hourly Rates $ $ $ $ $ Passenger Average: $ TA Delta American United FedEx WB 2016 TA
6 2016 TA: Industry Rate Comparison Highest Actual Pilot Pay Rates (B777,A330, etc.) $ $ $ $ $ % of this Rate 16% of this Rate 21% of this Rate 82% of this Rate 100% of this Rate Average Hire Year of this Rate: 1984 Average Hire Year of this Rate: 1984 Average Hire Year of this Rate: TA Delta American United FedEx WB IPA 2016 TA
7 Furlough Longevity Pay Restoration All former furloughees will have pay longevity restored by the length of time on furlough
8 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
9 MPRP Example ON CALL Trip Assignment: Current Contract Pay Credit: 75:00 TA 2016 Pay Credit: Trip Credit: 74:44 +MPRP S29: + 4:00 +MPRP M30: + 4:00 82:44
10 Improvements in Flat Dollar A-Plan Benefit Captain Increase F/O Increase Current Contract $3,000 $2,400 Jan 2017* $4,000 +$1,000 $3,200 +$800 Jan 2020 $4,100 +$1,100 $3,280 +$880 Jan 2021 to next CBA $4,200 +$1,200 $3,360 +$960 * If age 65 between June 1 - December included 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)
11 Captain Flat Dollar Increases 33% - 40% $120,000 $120,000 $120,000 $123,000 $126,000 $90,000 $90,000 $90,000 $90,000 $90, Next CBA Retirement Year - Captain with 30 Years of Service Current CBA Tentative Agreement
12 F/O Flat Dollar Increases 33% - 40% $96,000 $96,000 $96,000 $98,400 $100,800 $72,000 $72,000 $72,000 $72,000 $72, Next CBA Retirement Year - FO with 30 Years of Service Current CBA Tentative Agreement
13 UPS Retirement (A&B Combined Value) versus FedEx UPS Retirement as % of FedEx +2% -2% -16% +6% +2% -12% +10% +7% -8% +14% +10% -5% +18% +16% -3% +22% +20% +1% CURRENT UPS RETIREMENT VS. FEDEX Years of Service at Retirement Captain, Age 65 Retirement
14 New International Routes CGN-IST-TLV route will be flown by IPA Begins Bid Period CGN-SNN-DUB route will be flown by IPA Begins Bid Period 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
15 2016 TA Common Carriage to US Limits 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. New TA Limit: cans per week from NRT to Eastern U.S cans per week from NRT to Western U.S. Total Limit of cans per week from NRT to U.S.
16 2016 TA Common Carriage to US Limits 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. 295 flights per week from FRA to 22 U.S. cities New TA Limit: cans per week from FRA to Eastern U.S cans per week from FRA to Western U.S. Total Limit of cans per week from FRA to U.S.
17 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
18 TA Reduced Scheduled Duty Limits (Domestic) 15 Current 2016 TA FAR seg 14 Scheduled Duty Limit (Hours) Report Time (Local Domicile Time)
19 TA Reduced Scheduled Duty Limits (Domestic)
20 Reduced Scheduled Duty Limits (International) Current TA % of International Duty Periods 5% of International Duty Periods 1% of International Duty Periods 38% of International Duty Periods Unaugmented - 1 to 2 Legs Unaugmented - 3 Legs Unaugmented - 4 Legs Augmented
21 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
22 Reserve Call-Out Reduced from 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
23 B-767 Crew Rest 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 Module
24 New B-767 Crew Rest Module Artist Rendering
25 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: 14 days Turn into 4 weeks off, guaranteed 7 to 13 days Slide your vacation (2018) Or: Paid 5 hours per vacation day 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
26 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
27 Posted and Open Time Trips Your Schedule
28 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
29 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
30 Increased IPA Sim Instructor Jobs OCT % ALL SIMS (except CQ MV and LOE) 25% Non-CQ MV SEP % ALL SIMS (except CQ MV and LOE) 50% Non-CQ MV SEP % ALL SIMS (except CQ MV and LOE) 75% Non-CQ MV 10% CQ MV
31 TA: New Gateway Private Sleep Rooms ONT Private: +8 RFD Private: +8 add Sound Proofing SDF Private: +54 Semi: +50 add Sound Proofing EWR Private: +6 PHL Private: +14 CGN* +TBD 90+* Added Private Sleep Rooms System-Wide
32 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 days 2. IPA Instructors on Reserve voluntary decline 3. IPA Pilots on Reserve voluntary decline 4. Available FQS 5. 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)
33 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
34 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
35 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
36 TA Medical Premiums Per Paycheck (Family) $158 $168 $179 $191 $203 TA: PPO CURRENT $85 $62 $66 $71 $75 $80 TA: FLEX HSA
37 TA Compensation Gains versus Healthcare Cost (Family) F/O--5 th Year $67,470 HC Premiums Bonus Pay Rates B Plan $58,932 $50,307 $42,203 $34,595 -$1,267 -$2,079 -$2,357 -$2,654 -$2,971 Sep Sep Sep Sep Sep Aug 2017 Aug 2018 Aug 2019 Aug 2020 Aug 2021
38 TA Compensation Gains versus Healthcare Cost (Family) CAPT--15 th Year $101,396 HC Premiums Bonus Pay Rates $51,116 $61,128 $71,442 $82,058 -$1,267 -$2,079 -$2,357 -$2,654 -$2,971 Sep Sep Sep Sep Sep Aug 2017 Aug 2018 Aug 2019 Aug 2020 Aug 2021
39 TA Key Achievements % Initial Hourly Pay Raise (29.04% compounded total) % A-Plan Improvement 3. IPA International Flying Growth and Protections 4. Reduced Scheduled Block and Duty Limits 5. Reserve Call-Out Reduced from 15 to 14 Days 6. B-767 Rest Facility Required for Augmented Operations 7. New Vacation Flexibility Options 8. Transfer/Pickup Trips via New Trip Board 9. New Management Flying Limitations 10. Increased IPA Sim Instructor Jobs 11. More Private Sleep Rooms at More Gateways 12. Reserve Sim Support Assignments Greatly Reduced 13. RIF Rules Significantly Improved 14. Signing Bonus: up to $60,000/$40,000 (Capt/FO) 15. UPS Healthcare Maintained
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