Today's Trivia - The Time Value of Money: September 9, 2011
Here are some interesting points:
1. The US Airways-America West merger closed on September 27, 2005. The company will celebrate the merger's six-year anniversary in about two weeks.
2. ALPA reports indicate 80 to 85% of the pilot joint contract was completed about 4 years ago. When Scott Kirby joined the discussions this signaled the company was entering the "close out" phase of discussions.
3. The Kirby Proposal provided to ALPA about 4 years ago provided East Coast-based pilots a 17% increase, increased retirement, and productivity enhancements, with the parties had not yet reaching an agreement on scope.
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4. 4 years ago Lyle Hogg told me he was authorized to counter the JNC's next pay counter proposal by increasing US Airways' East Coast-based pilot pay by 20%.
5. Last month Doug Parker told PHX and CLT Crew news attendees that the DJ lawsuit would take 1.5 years to complete and the appeal would take another year. That's 2.5 years to get a judicial opinion on US Airways' DJ lawsuit. Then, in my opinion, real joint contract talks will begin and it will take our "all rookie" NAC another 1.5 to 2.5 years to close their first ever Tentative Agreement.
6. I believe the total time to reach a joint contract after the close of the merger, based on Parker's comments, could be 10 to 11 years or in 2015 or 2016.
7. US Airways East narrowbody Captains and First Officers employed during this period will lose about $45,000 and $30,000, respectively, in unrecoverable in pay and retirement benefits per year from the Kirby Proposal + 3%, alone . A $45,000 and $30,000 per year pay/retirement loss, plus the time value of money, would result in East narrowbody Captains losing over $600,000 and East nrrowbody First Oficers losing over $400,000 in pay and retirement money, alone (if USAPA loses the LOA 93 grievance, which had its last hearing over 19 months ago on February 4, 2010). This would be the second largest economic loss for East pilots since John Davis and the original RC4 in "closed session" did not agree on two separate occasions, against the advice of ALPA National R&I and our MEC's R&I Committee, to freeze the East Pilot DB Retirement Plan and create an "A" and "B" Plan per CEO Seth Schofield's offer.