Ballot Packages Mailed
Yesterday, November 14th, voting instructions were mailed to each member’s home address. These packages include a flash drive and will come in a regular sized envelope. If you do not receive your package, duplicate requests will start next week and continue through December 1st.
Ratification Meetings Conclude Thursday
The ratification meetings will conclude on Thursday in Boston. Thank you to all the members that attended over the last 30 days. Also thank you to all the professionals that traveled to each location to explain their involvement and respective areas of expertise.
NMB Changes
Several members have asked how the recent presidential election will affect potential further negotiations. The answer is unknown, but what is known is the Board will be changed. As a Republican was elected, the Board will now consist of two Republicans and one Democrat. How long it will take to confirm the as yet to be determined new Board members is unknown at this moment, but it is likely to take some time.
Delta Pay Raises Announced
Today Delta announced pay increases that would put their technicians $0.85 per hour ahead of the TA in April of 2017. Also announced is a 1% increase of mandatory contribution to the 401(k) for a total of 3%. There were no changes announced with regard to any of the other items that make the UA TA industry leading such as vacation, sick tine holidays or medical cost share. While this is certainly good news for the Delta Technicians, it is also good news for United Technicians in regards to the industry reset. This worked out almost to the penny as predicted by economist Dan Akins during the roadshows.
Here is how the UA Technicians compare to Delta now;
COMPENSATION
|
TA
|
DELTA
|
Top of Scale All-in Rate
|
$48.51 (including VEBA)
|
$49.36
|
A&P License Premium
|
$5.25
|
$5.00
|
Line Premium
|
$1.00
|
$0.75
|
Longevity
|
$1.00
|
$0.00
|
VACATION / SICK
| ||
Vacation Accrual
|
35 days max
|
25 days max.
|
Holidays
|
10 (6 Fixed / 4 Floating)
|
10 (All Fixed)
|
Holiday Pay (worked)
|
2.5x
|
2.0x
|
Sick Accrual
|
12 days max.
|
7 days max.
|
Sick Pay
|
100% pay
|
100% pay
|
BENEFITS
| ||
Medical and Dental Cost Share
|
80% / 20%
|
78 % / 22%
|
Retiree Medical
|
Retiree Bridge Medical until 2026
|
No Subsidy
Only access to Delta Plans
|
Pension
|
CARP
|
None
|
401k
|
3% Match plus 1% Direct for >30 years in CARP
|
3% Direct, 6% Match
|
Profit Sharing
|
5% up to 6.9% pre-tax margin
10% above 6.9% pre-tax margin
|
10% of pre-tax profit
20% on earnings above prior year
|
SCOPE
| ||
Furlough Protection
|
Furlough protection for all on the system seniority list at date of ratification
|
None
|
Base Protection
|
IAH and SFO Base point protection
|
None
|
Outsourcing Protection
|
Outsourcing protections
|
None
|
OTHER
| ||
Industry Reset
|
Triggered if wage and benefits is not at least 2% higher than avg. of AA and DL
|
None
|
Lump Sum
|
$185 million Lump Sum Pool
|
None
|
Early Out
|
$5,000 per year of service to a maximum of $100,000
|
None
|
Early Out FAQs
The company sent out a list of FAQs regarding the early out. Here is a copy and paste of the questions;
2017 Tech Ops Early Out Questions and Answers
Below are answers to questions we have received on the early out program that is part of the tentative agreement with the IBT, which is in the ratification process (ratification details can be found on the IBT website at https://teamster.org/ual2016).
1. How much is the Early Out benefit?
Eligible employees who are approved for the program will receive a one-time lump sum payment of $5,000 per year of active service up to a maximum of $100,000.
2. Who is eligible for the Early Out?
a. You must be actively employed during the application window and through your exit date in an IBT-represented position in United’s U.S. based operations (including Guam). The application window runs from January 15, 2017, through February 28, 2017.
-AND-
a. Have a minimum of 15 years of Company service as measured by your Company Seniority Date.
-AND-
b. Be at least 45 years of age.
3. How many Early Out packages will be awarded?
There is no “cap” or maximum number of Early Out packages available.
4. Will there be more than one application window?
No. However, the Company maintains the discretion to extend the application window.
5. If I am eligible for retirement outside of the Early Out may I apply for the Early Out?
Yes. Employees who are currently eligible for retirement may apply.
6. Why is the Early Out limited to age 45 and older?
The program is designed to comply with IRS rules regarding tax-advantaged retirement benefits.
7. When will I be allowed to submit my request for the Early Out Program?
The application window will be open on January 15, 2017, and will close at 1700 CDT on February 28, 2017.
8. How do I submit my election form?
You will apply via a link on the Tech Ops Portal website.
9. May I rescind my application for Early Out?
Once you have submitted your application there is a 7 day period in which you may revoke your application. Revocations must be submitted in writing to your HR Partner. Once 7-days have passed the application is irrevocable.
10. When will I receive Early Out incentive payment(s)?
Early Out incentive pay will be issued in a lump sum within 45-days of your Exit.
11. I am not eligible for normal retirement, am I considered retired if awarded Early Out?
No. You are considered separated.
12. I understand the Company will determine my exit date, but will I be able tosubmit a preference?
Yes, employee preference of exit date will be considered and to the extent possible accommodated; however, the needs of the operation must be considered as a priority and may affect the exit dates.
13. When will I know if I have been approved for the Early Out?
We estimate notification of Early Out awards to begin in March of 2017
