Message from the Negotiating Committee

Message from the Negotiating Committee
Captain John Gustafson, Chairman
June 1, 2009

Negotiations Update 09-06

This update is a departure from the recent updates with regard to content and length. The reasons for the departure are twofold. There has been no interaction between our committee and management since the “Global Solution” talks in March. Additionally, we are now shifting our emphasis toward CBA 2010.

As we approach 2010, the only apparent silver lining to the 4.A.2.b cloud is that, barring any unforeseen change of events, we will be entering these negotiations with a membership that has been through the FedEx negotiating experience (no “new hires”) and is acutely aware of the financial hits we have collectively endured since the invocation of 4.A.2.b. Having been through this drill, we should all come prepared next Fall for what promises to be a most difficult set of negotiations. One way you can prepare is to know your Contract. With no “new hires,” there are simply no good reasons to be unprepared in this area as we are all veterans of working under our Agreement. Admittedly, some sections are easier to understand than others. Our intention, over the course of the next year, is to help clarify some sections and components in order to focus the attention on the appropriate issues to be rectified and improved upon, or that are otherwise sacrosanct. There will be membership interaction via surveys, polling and other venues to identify the will of the majority in this regard.

A major issue of concern that we are sure the polling and surveys will bear out is pairing construction. Undoubtedly, this area needs work. In order to better frame future discussions on how to improve pairing construction, we all must understand how a pairing pays within its respective duty periods. Make no mistake, in our opinion, the Optimizer is alive and well and it gorges itself on cost reduction as a primary variable/constraint. Consequently, we all need to know how our pairings pay within themselves so that we can all fully understand potential fixes.

To be very upfront about this, money is going to have to be spent to improve our pairings. We will need to make surgical fixes and cost appropriate corrections. This will be no easy undertaking. We will need everyone onboard to convince management that there is no alternative other than to overhaul the composition of our pairings. Pairing construction is the underpinning to line construction. Most of the degradation of the quality of our lines can be traced directly back to the individual pairings.

What follows is an article by Rick Irgens that explains how our pairings pay. Take the time to read and become familiar with the nuances of the various pay components. Contract “Openers” will soon be here. They represent a major challenge before us. We need to show up in 2010 fully informed, prepared and committed to succeed. To individually do less is a great disservice to our fellow brothers and sisters and should not be tolerated. Together we will, and must win.

HOW DO I GET PAID?

The monthly paycheck is a “bracketing” maneuver for many of us, meaning that if the dollar amount looks about right, we call it good. The amount of time and level of detail required to audit is probably more than many of us like to commit. Fortunately, FedEx payroll automation generally produces accurate results.

Nonetheless, knowing “how a pairing pays” is critical to your current rights and your contractual future. The trip rig, duty rigs, block over 10 and others pay provisions play important factors in determining what your BLG/RLG will be as awarded, but what is equally important is what the “actual” number of credit hours you will be paid on the 15^th of the following month after completing your assignments.

Scheduled credit hours (SCH) can fall into one of the following categories. The CBA defines Trip Guarantee in Section 4.F.1.b.

The highest of:

1. TAFB (1CH for each 3.75 hours)

a. Block over 10 added into trip guarantee.

2. Sum of Duty Periods

a. Duty Rig

i. Domestic Day (1:2)
ii. Domestic Night (1:1.92)
iii. Domestic Critical (1:1.5)
iv. International (1:1.92)

b. Block Hours

i. Revenue or Deadhead

c. MPDP’s

i. MPDP 1
ii. MPDP 2
iii. MPDP E
iv. MDPD F

(CBA Section 4.F.2.b. is where the various trip/duty rigs and credit hour computations are located).

Following are actual bid pack parings from the June 2009 Bid Period.

TAFB Pairings

Report for MD11 schedule JUNE 2009                         MEM BASE  #   120

   120 MO               REPORT AT  23:08 (18:08 L.T.)  EFFECTIVE JUN 08-JUN 22

 FULL CREW

  DAY   FLT.  EQP  DEPARTS (L.T.)  ARRIVES (L.T.)  BLK.     BLK.   DUTY    CR.      LAYOVER

  *MO UA6502  CR7  MEM 0008(1908)  DEN 0236(2036)  02:28                  MPDP 1

              EMBASSY SUITES AIRPORT 303-574-3000           00:00  03:58  03:00M  DEN 23:16

              TRANS BY EMBASSY SUITES AIRPORT 303-574-3000

  *TU   1628  F88  DEN 0322(2122)  IND 0542(0142)  02:20

   TU   1728  F88  IND 0830(0430)  DEN 1101(0501)  02:31                  MPDP E

              WESTIN TABOR CENTER 303-572-9100              04:51  09:09  06:00M  DEN 14:51

              TRANS BY PRESIDENTIAL LIMO 303-320-1101

  *WE   1628  F88  DEN 0322(2122)  IND 0542(0142)  02:20

   WE   1728  F88  IND 0830(0430)  DEN 1101(0501)  02:31                  MPDP E

              WESTIN TABOR CENTER 303-572-9100              04:51  09:09  06:00M  DEN 14:51

              TRANS BY PRESIDENTIAL LIMO 303-320-1101

  *TH   1628  F88  DEN 0322(2122)  IND 0542(0142)  02:20

   TH   1728  F88  IND 0830(0430)  DEN 1101(0501)  02:31                  MPDP E

              WESTIN TABOR CENTER 303-572-9100              04:51  09:09  06:00M  DEN 14:51

              TRANS BY PRESIDENTIAL LIMO 303-320-1101

  *FR   1628  F88  DEN 0322(2122)  IND 0542(0142)  02:20

   FR   1728  F88  IND 0830(0430)  DEN 1101(0501)  02:31                  MPDP E

              EMBASSY SUITES AIRPORT 303-574-3000           04:51  09:09  06:00M  DEN 09:24

              TRANS BY EMBASSY SUITES AIRPORT 303-574-3000

   FR NW3530  CR9  DEN 2155(1555)  MEM 0020(1920)  02:25                  MPDP 1

                                                            00:00  03:55  03:00M

     CREDIT HRS:   32:27T    BLK HRS:  19:24     LDGS:   8      TAFB:   121:42

Note: TAFB Pairings have a “T” located to the right of the CH. In this pairing, the sum of the individual duty periods would result in 30:00 CH, so the TAFB/3.75 (121:42/3.75 = 32:27) thus the pairing pays a trip guarantee of 32:27.

Report for B727 schedule JUNE 2009                         MEM BASE  #    71

    71 SA               REPORT AT  19:55 (14:55 L.T.)  EFFECTIVE JUN 06-JUN 20

 FULL CREW

  DAY   FLT.  EQP  DEPARTS (L.T.)  ARRIVES (L.T.)  BLK.     BLK.   DUTY    CR.      LAYOVER

   SA   0585  F63  MEM 2055(1555)  GFK 2328(1828)  02:33 DS

  *SU   0585  F63  GFK 0003(1903)  DSM 0127(2027)  01:24                  BLOCK

              SHERATON WEST DES MOINES 515-223-1800         03:57  06:02  03:57   DSM 47:03

              TRANS BY SHERATON WEST DES MOINES 515-223-1800

  *TU   1300  F63  DSM 0200(2100)  STL 0300(2200)  01:00

  *TU STARPT  SBY  STL 0315(2215)  STL 0445(2345)  00:00                  MPDP 1          APTSTBY

              HILTON ST. LOUIS AT THE BALLPAR 314-421-1776  01:00  03:45  03:00M  STL 28:11

              TRANS BY BEST TRANSPORTATION 314-989-1500

   WE   1546  F63  STL 0956(0456)  PIA 1040(0540)  00:44 BS

   WE   1546  F63  PIA 1130(0630)  DSM 1219(0719)  00:49

   WE   0402  F63  DSM 1300(0800)  MEM 1432(0932)  01:32                  CRITICAL DUTY RIG

                                                            03:05  06:06  04:04

     CREDIT HRS:   24:18T    BLK HRS:  08:02     LDGS:   6      TAFB:    91:07

Note: This pairing is a TAFB trip but to show the different MPDP’s, it is worth reviewing. Duty period 1 pays Block. Duty Period 2 pays MPDP 1 and the last pays Critical Duty Rig (6:06/1.5=4:04). However, they all are trumped by the Trip Rig of 3.75 to 1 and the trip guarantee reflects that with the “T.”

TAFB with BLOCK OVER 10 included

Report for MD11 schedule JUNE 2009                         MEM BASE  #  2071

  2071 WE               REPORT AT  07:12 (02:12 L.T.)  EFFECTIVE JUN 10 ONLY

 1 RFO

  DAY   FLT.  EQP  DEPARTS (L.T.)  ARRIVES (L.T.)  BLK.     BLK.   DUTY    CR.      LAYOVER

 10WE   0155  F16  MEM 0812(0312)  NRT 2136(0636)  13:24 BH/DH            BLOCK

              HILTON NARITA 011-81-476-33-1121              13:24  14:54  13:24   NRT 25:59

              TRANS BY CHIBA-KO TAXI 011-81-476-22-1331 (Ramp)

 12FR NH0111  763  NRT 0205(1105)  SIN 0915(1715)  07:10                  BLOCK

              FAIRMONT SINGAPORE HOTEL 011-65-6339-7777     00:00  09:40  07:10   SIN 39:40

              TRANS BY GAN TRANSPORT SERVICE 011-656-345-8491

 14SU   0082  F26  SIN 0225(1025)  PEN 0345(1145)  01:20 DH/BH

 14SU   0082  F26  PEN 0515(1315)  NRT 1152(2052)  06:37                  BLOCK

              HILTON NARITA 011-81-476-33-1121              07:57  10:57  07:57   NRT 29:03

              TRANS BY CHIBA-KO TAXI 011-81-476-22-1331 (Ramp)

  #MO GT9999  CAB  NRT 1725(0225)  HND 1925(0425)  01:00

  #MO JL0173  73H  HND 2125(0625)  KIX 2240(0740)  01:15                  MPDP 1

              SWISSOTEL NANKAI OSAKA 011-81-6-6646-1111     00:00  05:45  03:00M  KIX 16:05

              TRANS BY OSAKA MK CO LTD null

  #TU SHARPT  SBY  KIX 1515(0015)  KIX 1545(0045)  00:00                             APTSTBY

  #TU   0080  F16  KIX 1645(0145)  MEM 0523(0023)  12:38 BH/DH            BLOCK

                                                            12:38  14:38  12:38

     CREDIT HRS:   50:29T    BLK HRS:  33:59     LDGS:   0      TAFB:   166:41

Note: This trip has a TAFB of 166:41/3.75 = 44:27, yet the pairing pays 50:29. The extra credit hours in the SCH are accounted for in the 2 legs with block over 10. MEM-NRT is 13:24 and KIX-MEM is 12:38, the TAFB calculation is then augmented with the 3:24 and 2:38 (6:02 + 44:27) to reach the total of 50:29. It is interesting to note that for the duty periods that pay block but are scheduled less than 8 (periods 2 &3), those hours are “washed” out highlighting the advantages of block recapture!

If this trip is flown as scheduled, 4 CH’s of block over 8 would be paid in addition to all other compensation on the 15^th of the month paycheck in the following bid period. This trip has the potential to pay 54:29. This is a simplistic view of Block over 8 as there is an ongoing grievance related to actual pay computation of the BKO in the event that the legs scheduled >10 hours are “underflown.”

TAFB with Block over 8 (BKO)

248 TH               REPORT AT  09:23 (04:23 L.T.)  EFFECTIVE JUN 04 ONLY

 FULL CREW

  DAY   FLT.  EQP  DEPARTS (L.T.)  ARRIVES (L.T.)  BLK.     BLK.   DUTY    CR.      LAYOVER

 04TH   0038  F26  MEM 1023(0523)  FRA 1930(2130)  09:07 BH/DH            BLOCK

              HILTON MAINZ CITY 011-49-6131-2780            09:07  10:37  09:07   FRA 44:35

              TRANS BY MANFRED MICHEL 011-49-61-45-52280

 06SA   0038  F26  FRA 1735(1935)  CDG 1853(2053)  01:18 DSI

 06SA   0006  F26  CDG 2022(2222)  FRA 2140(2340)  01:18                  MPDP 1

              HILTON MAINZ CITY 011-49-6131-2780            02:36  05:35  03:00M  FRA 67:25

              TRANS BY MANFRED MICHEL 011-49-61-45-52280

 09TU   0007  F26  FRA 1835(2035)  MEM 0422(2322)  09:47 DH/BH            BLOCK

                                                            09:47  11:17  09:47

     CREDIT HRS:   37:12T    BLK HRS:  21:30     LDGS:   4      TAFB:   139:29

Note: This pairing pays based on TAFB (139:29/3.75= 37:12). However, since it has 2 legs scheduled over 8 hours but less than 10 there are no extra CH’s built into the trip guarantee. Each leg flown over 8, in this case MEM-FRA, FRA-MEM will pay the actual block time over 8 in addition to all other compensation as BKO. In this pairing, as scheduled, there is 2:54 CH of BKO planned.

MPDP or “SUM” of the Duty Periods

BLOCK HOUR

37 TU WE TH REPORT AT 19:15 (14:15 L.T.) EFFECTIVE JUN 02-JUN 25

FULL CREW

DAY FLT. EQP DEPARTS (L.T.) ARRIVES (L.T.) BLK. BLK. DUTY CR. LAYOVER

1 0367 F58 MEM 2015(1515) BDL 2258(1858) 02:43 DM

1 0367 F58 BDL 2343(1943) MDT 0051(2051) 01:08

* 2 1303 F58 MDT 0240(2240) MEM 0513(0013) 02:33 BLOCK

06:24 10:28 06:24

CREDIT HRS: 06:24 BLK HRS: 06:24 LDGS: 3 TAFB: 10:28

Note: Even though this is an Out and Back pairing, it pays on Block, not MPDP 2.

   674 FR               REPORT AT  07:24 (02:24 L.T.)  EFFECTIVE JUN 05-JUN 26

 FULL CREW

  DAY   FLT.  EQP  DEPARTS (L.T.)  ARRIVES (L.T.)  BLK.     BLK.   DUTY    CR.      LAYOVER

   FR   0002  F26  MEM 0824(0324)  STN 1653(1753)  08:29 BH/DH            BLOCK

              CROWNE PLAZA CAMBRIDGE 011-44-870-400-9180    08:29  09:59  08:29   STN 28:07

              TRANS BY STN RAMP THRU VOYAGER CARS 011-44-1279-682-010 (Ramp)

   SA   0005  F26  STN 2230(2330)  MEM 0739(0239)  09:09 DH/BH            BLOCK

                                                            09:09  10:39  09:09

     CREDIT HRS:   17:38     BLK HRS:  17:38     LDGS:   2      TAFB:    48:45

Note: While this pairing includes legs >8 hours, it pays based on scheduled block. In this case, the trip guarantee will not be less than 17:38, however in the event of headwinds etc. all block time flown in excess of scheduled in each duty period will be paid overage minute for minute. It is interesting to note that the long layover STN and similar VCP trips that pay on TAFB will pay Block over 8 (BKO) since the trip guarantee is based on TAFB.

453 FR               REPORT AT  20:15 (15:15 L.T.)  EFFECTIVE JUN 26 ONLY

 FULL CREW

  DAY   FLT.  EQP  DEPARTS (L.T.)  ARRIVES (L.T.)  BLK.     BLK.   DUTY    CR.      LAYOVER

 26FR   0728  F26  MEM 2115(1615)  MSP 2322(1822)  02:07                  MPDP 1

              CROWNE PLAZA NORTHSTAR by Marcu 612-338-2288  02:07  03:37  03:00M  MSP 11:19

              TRANS BY CHAUFFEURED ELEGANCE 612.490.01 612-490-0164

 27SA   0645  F88  MSP 1211(0711)  LCK 1355(0955)  01:44 BS

 27SA   0645  F88  LCK 1440(1040)  MEM 1618(1118)  01:38                  BLOCK

                                                            03:22  05:37  03:22

     CREDIT HRS:   06:22     BLK HRS:  05:29     LDGS:   3      TAFB:    20:33

Note: This pairing pays MPDP 1 for the leg MEM-MSP and Block for the MSP-LCK-MEM duty period. If, for example, duty period 1 experiences a block time >3:00 the MPDP would revert to block hour and the duty period would pay overage minute for minute. Likewise if the second duty period has block time >3:22 it is also paid overage no matter what happens in duty period 1. This is a good example of how sum of the duties limits trip rig washout.

12 FR               REPORT AT  13:08 (06:08 L.T.)  EFFECTIVE JUN 05-JUN 26

 FULL CREW

  DAY   FLT.  EQP  DEPARTS (L.T.)  ARRIVES (L.T.)  BLK.     BLK.   DUTY    CR.      LAYOVER

   FR   0431  F26  LAX 1408(0708)  MEM 1742(1242)  03:34

   FR   0529  F26  MEM 2025(1525)  DEN 2304(1704)  02:39                  BLOCK

              WESTIN TABOR CENTER 303-572-9100              06:13  10:26  06:13   DEN 13:26

              TRANS BY PRESIDENTIAL LIMO 303-320-1101

   SA   0842  F26  DEN 1400(0800)  MEM 1616(1116)  02:16 BS  HOTEL

   SA   0336  F88  MEM 2125(1625)  LAX 0130(1830)  04:05                  DAY DUTY RIG

              DOUBLETREE HOTEL MEMPHIS 901-767-6666         06:21  13:00  06:30

              TRANS BY PREMIER TRANSPORTATION 901-577-7764

     CREDIT HRS:   12:43     BLK HRS:  12:34     LDGS:   4      TAFB:    36:52

Note: This pairing pays 12:43 based on block hours in duty period 1 (6:13) and Day Duty Rig in duty period 2 (13:00/2 = 6:30 CH). If the block in duty period 1 is >6:13 and/or the duty is extended in duty period 2 they would generate extra pay based on the MPDP in play.

19 SA               REPORT AT  07:18 (02:18 L.T.)  EFFECTIVE JUN 06-JUN 27

 FULL CREW

  DAY   FLT.  EQP  DEPARTS (L.T.)  ARRIVES (L.T.)  BLK.     BLK.   DUTY    CR.      LAYOVER

   SA   2550  F63  MEM 0818(0318)  BHM 0916(0416)  00:58 BM

   SA   2550  F63  BHM 0951(0451)  BFM 1043(0543)  00:52

   SA   0646  F63  BFM 1300(0800)  MEM 1421(0921)  01:21                  MPDP 2

                                                            03:11  07:33  06:00M

     CREDIT HRS:   06:00     BLK HRS:  03:11     LDGS:   3      TAFB:    07:33

Note: MPDP 2 (Out and Back or single duty period trip)

After completion of your assignment, the Company calculates the Actual Credit Hours for each pairing. ACH is described below, an excerpt from CBA Section 2, Definitions. Any adjustments should be reflected shortly after finishing your last duty period on each pairing.

It can be summarized that trips that pay TAFB would only incur overage should that pairing be extended in actual TAFB hours. If a trip is paid on SUM of the duties then the pilot is “guaranteed” the pay for each Duty Period and overage is calculated against each individual duty period guarantee, washout should not occur.

ACTUAL CREDIT HOURS (ACH)

ACH is computed at the completion of an assignment.

a. ACH for a duty period is the highest of:

i. MPDP; or
ii. actual block hours; or
iii. actual duty rig.

b. ACH for a trip is the higher of:

i. trip rig as actually flown, plus actual revenue block
hours in excess of 8 in any duty period, plus duty rig for
the portion of any duty period beyond the scheduled on
duty limitations; or
ii. the sum of ACH for each duty period.

While much of the pay system is automated, there still remains a number of pay issues that will require the submission of a pay log request through VIPS. These include, but are not limited to:

Extra Duty Period (CBA 4.Y)
Per Diem (training offsite, hotel in lieu of double deadhead etc.) (CBA 8.C.3.e.)
FAR Extension Pay (automated in some cases) (CBA 4.X)
Disruption Pay (CBA 4.W.)
Training on Day Off (automated for “normal” scheduled events) (CBA 4.I.4.a.i)
Grid Penalty Event (CBA 4.EE)

Online pay logs located on Pilot.Fedex.com can include other pilots on the same pairing should the circumstances be the same. We always recommend only including the employee number for another pilot on a pay log after consulting with that person.

CBA Tip of the Month

Since there will be many ITU events going on for the next few years to train out all of the excess system bids and many pilots will go through more than one ITU cycle in this time period, we would like to point out an important consideration for your monthly bidding while in ITU. Generally, we are concerned with one major factor in our monthly bid, highest paying line (without carryover). However, in the month you are scheduled to activate to the line, you will have a custom line for the balance of that month and the following month should you not activate prior to the close of monthly bid window. Custom Line BLG/RLG was determined by your pay only award for that month and CRS will use a CBA Formula to determine the number of CH/Days that can be built into the custom line. One important item that CRS must look at is to compare the number of scheduled days off on your pay only line versus the actual number of days off in the custom line month.[1] This could be a significant factor in working more days than you would be required to for no extra pay as compared to another pay only line that pays the same or similar BLG/RLG but has more scheduled days off. [2]

Example: Pilot A & B are scheduled to activate during the JUNE 2009 Bid Month

Pilot A Bids a pay only Reserve Line with a RLG of 69:00 and 13 days off.

Pilot B Bids a pay only Regular Line with a BLG of 68:00 and 16 days off.

While pilot A will get 1 more CH of pay he has the potential to have up to 3 more days of work than pilot B for that 1 hour of pay on his custom line

The number of days off on a line should be in your scan as well as the BLG/RLG for the month you plan to activate! There is nothing worse than finishing training and having to stand R days or have trips added to your line that could have been avoided or at the very least reduced by the days off comparison.

Thank you for supporting your Negotiating Committee. We welcome comments, questions and suggestions. Please email John, Mike and Rick at FedEx-Negotiation@alpa.org.

[1] CBA 25.I.3.b

b. The number of credit hours on a custom line for a pilot who

has been awarded a pay-only line shall not exceed his pay-only

BLG/RLG, less credit received during the bid period.

i. A pilot returning from training shall be credited an R-day

value for each day he receives or shows for scheduled

training other than IOE, and the higher of SCH or ACH

for IOE trips. The number of days off on such pilot’s

pay only line shall be preserved when constructing his

custom line. A day off during his training footprint shall

be considered a day off when constructing his custom line.

[2] Note: This process is only applicable if you were actually awarded a pay only line. Unfortunately, those entering ITU off a leave or in the case of the DC10 crews being paid system wide average BLG, the days off on a custom line will only be required to meet the CBA Minimum Days Off Standard.