[font=Times New Roman']PARITY UPDATE 2[/font]
[font=Times New Roman']The group 1 dilemma [/font]
[font=Times New Roman']There have been many questions why I didn’t complete a group 1 rate calculation when I estimated the January 01, 2016 rates for groups 2, 3 and 4. The reason is simple, at this point; there are too many unknowns. Specifically, what Delta and United Management will decide with respect to group 1 aircraft at their respective airlines? That’s correct; our group 1 rate is in the hands of Delta and United Management. Maybe that’s a good thing seeing how poorly US Airways Management has treated its own pilots for the past 7 years….maybe not.[/font]
[font=Times New Roman']The following relevant language is from Supplement A of the APA CBA :[/font]
[font=Times New Roman'] If at the time Industry Comparable Pay Rates[/font]
[font=Times New Roman'] are calculated the Company operates an aircraft type that United[/font]
[font=Times New Roman'] Continental Holdings or Delta Airlines does not[/font]
[font=Times New Roman'] operate, the hourly base pay rates for the most comparable[/font]
[font=Times New Roman'] aircraft type, based on maximum certificated[/font]
[font=Times New Roman'] seating capacity, will be used[/font][font=Arial'].[/font]
[font=Times New Roman']Put another way, if on DOS +30 DL and UA operates EMB 190 or CSJ 900 then the Group 1 rate will be $139.42[/font][font=Arial']. If [/font][font=Times New Roman']either operates the[/font][font=Times New Roman']EMB 190 or CSJ 900 then $139.42 will be ½ of the equation and the other ½ will in all likelihood be one of the rates listed below. Remember, if either DL or UA doesn’t operate the EMB 190 then we use the most comparable aircraft type, based on maximum certificated seating capacity. This will probably be the [/font]A319, B737 500 at UA and the B717 at DL.
Below are the rates so you can calculate the group 1 rate.
UA
A319, B737 500 = $208.62
EMB 195 = $163.88
EMB 190, CRJ 900 = 139.42
DL
B717 = $208.62
EMB 195 = 163.88
EMB 190, CRJ 900 = 139.42
NOT SO FAST, you’re forgetting a few very important details
Unlike the Parity Review in the 1998 Agreement that measured parity several times, parity in the APA CBA measures parity only once. This is problematic because the EMB 195 is locked in to the EMB 190.
Assume when the comparable pay rates are calculated the new AA operates the EMB 195. Also assume that DL and UA operates the EMB 195 (group 1 AC) at a rate of $163.88 for both airlines. We would then ride their coattails and make $163.88 for the EMB 195 correct? WRONG!! Remember from my prior parity update that no group can increase greater than 16.5 %, which for group 1 is $147.72 (provided by APA). Since the EMB 195 is in group 1 we can never be paid industry standard for that EMB 195.
Even worse, DL and UA operate the EMB 190 when we determine parity and we are now locked into $139.42 and then shortly thereafter the new AA takes its first EMB 195 delivery. Sorry folks, we’re locked into the lower EMB 190 rate of $139.42 and will never realize anything close to the DL or UA EMB 195 rate. This will result in the EMB 195 pilots being paid 15% below industry standard. I guess we’re still suffering g from that pesky revenue disadvantage.
I’ll bet APA and the NAC never thought of that one. Well come to think about it, maybe APA did.
Why didn’t anyone ask me? Ask Gary Hummel.
Paul DiOrio