Lou said: “there are NO pilot jobs out there at the moment and the odds of making anything close to your current income are slim to none and slim left town.â€
Chip comments: Lou, this is untrue.
Autofixer said: “Did you lose your pension, or was it frozen and an undefined pension started up with company match at that point? “
Chip comments: Autofixer, your comments are accurate. The FSA and CSA pensions were frozen and the company did provide these workers with a DC plan. If that was offered to ALPA, I believe the parties could reach an acceptable accord. From my perspective, I could live with my current benefit frozen and a DC plan, if it was offered, which at this point has not been offered.
Oldpropguy said: None of us like what is about to happen. But, it seems you and others are only deceiving yourselves, if you think the judge is going to put the pilots' interest ahead of the creditors. We all know that's not the purpose of chapter 11.
Chip comments: I agree that Judge Mitchell will likely rule in favor of the company, but that does not mean there are not other alternatives. Legally, the company cannot “distress terminate†the pilot pension, or any pension for that matter without giving a 60-day notice. The 60-day notice expires on March 31 and regardless of what happens tomorrow, there will be more news on this still unfolding story. Finally, ALPA has provided three concessions to fund its retirement plan, while every other employee has provided just one. ALPA’s concessions were the 26 to 33 percent restructuring agreement wage cut, the 8 percent supplemental wage cut, and the letter of agreement to eliminate the lump sum, reduce the multiplier from 1.8 to 2.4 percent, and reduce the payout from 65 to 50 percent of the FAE. The letter of agreement reduced corporate contributions by $77 million and another example of pilot sacrifice.
We can argue back and forth on what we all believe is right, but it will not matter. What only matters is that all 12 members of the ALPA MEC and the three MEC officers are in total agreement on its course of action and has made its position well known.
Meanwhile, Barbara De Lollis, USA Today Staff Reporter, I thought said it well today when she wrote in her column, “With US Airways' reorganization plan — and more than $1 billion in post-bankruptcy financing — on the line, the company is on a collision course with some of its best-paid and most-senior employees.â€
Moreover, De Lollis' comments are now being echoed by others because as one Wall Street expert told me, “ALPA has a very compelling argumentâ€. Mrplanes comments in his last post are accurate and are beginning to tell more about this unfolding story. Let's not forget the pension plan cannot be terminated until March 31.
Chip