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Chairman's Message - 7/5/16
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Chairman's Message - 7/5/16

 

Last week a couple of significant developments occurred on the same day. We received our retirement data, as we had requested from FedEx management. And significantly, the UPS pilots of IPA announced their Tentative Agreement after five years of bargaining. The details of their agreement are now being circulated and I’m certain many of you have had the chance to peruse the summary. Attempting to make an “apples to apples” comparison between our CBA and their TA is difficult due to the multitude of fundamental differences in our work rules. Taken in isolation, any single issue can be compared, but even that is without the context of the overall cost of the deal. There can, however, be little doubt that their TA marks a significant improvement in their working conditions and their employee benefits, just as our 2015 CBA provides improvements to our wages, working conditions and benefits. This can only help us as we begin to consider our options going forward.

IPA membership no doubt has expectations that have either been met or been frustrated. Their ratification vote will indicate which. From a distance, the pilots of IPA appear to be unified in their goals and their resolve. The TA ratification vote will indicate just how true that assumption is.

Our TA is the benchmark for the current industry wide round of pattern bargaining. As the pattern of bargaining begins to shape up with the IPA TA, and in the not too distant future, Delta’s TA, we will begin to see the shape of future bargaining goals. There are about a dozen other properties in negotiations currently as well. The baseline will be established for the foreseeable future over the next many months. Hopefully, work rules, pay rates and benefit packages will exceed ours and establish a desirable benchmark for future bargaining.

Should the IPA TA be ratified, then IPA’s Defined Benefit plan will be more in line with ours, and their 12% Defined Contribution Plan will exceed ours.

There are disagreements within our pilot group regarding the retirement plan. Our goal now is to find a way to develop a retirement plan structure that will satisfy the vast majority of us and satisfy the needs of future FedEx pilots. Now that we are in receipt of our retirement data, we expect the experts at Segal to provide us with a complete understanding in the weeks ahead. If this data reveals an opportunity to reconsider our approach to retirement, then we will communicate those developments to you. The pros and cons of the various components of a retirement plan remain the same. We will provide articles to explain our retirement plan as it currently exists, and we will highlight the pros and cons of the structure. Each of you will have to ask yourselves how you want to proceed.

This is no simple decision, and finding a path that can be supported by a significant majority remains a serious challenge. Ultimately, any decision to reengage will be a collective decision. This process must be transparent and forthright. Please do your best to understand the issues, and please do your part by participating in the process as it develops.

Regards,


Captain Chuck Dyer
FedEx MEC Chairman

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