American Eagle AIP/TA- An Analysis

Firebird2XC

Well-Known Member
Original Text of the AIP/pending TA is in Bold. My analysis of each bullet is in Italics, as in my summary at the end. I strongly encourage all Eagle pilots to read this, research it, and come to their own decisions. Please, if you find errors in my numbers, please let me know. Beyond that, draw your own conclusions, and state additions or rebuttals as well. I'd encourage other pilots in the industry to read this, too. You may well be next.

- Charlie


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Summary of the Agreement in Principle – January 10, 2014

Duration
10 years from DOS.
This seems like a long time when the industry is changing rapidly and seems to be on a trend to continue doing so. However, a long term contract has previously benefitted Eagle pilots by providing long-term stability. How does this affect amendment rounds?
Compensation
Pay rate scales will be frozen until 2018.
Beginning 1/1/2018, pilots will receive 1% annual increases unless they have declined flow through. However, Captains at longevity step 18 as of the date of signing of this agreement who decline flow through will receive the 1% annual pay rate increases beginning in 2018.


If I interpret this correctly, all pay scales would be frozen at present rates for the *next four years*. Would this include IAI adjustments? I already don't like this. Considering SkyWest 'original' just got a fat pay raise, and as of 2013 IAI adjustments would include them, we're potentially giving away a lot here.


Captain and First Officer turbo-prop rates will be eliminated.

This is presently irrelevant, as Eagle no longer operates turbo-prop aircraft. The possibility of it in the future, however, makes this a good thing, as the rates are lower than turbojet rates. The unlikelihood of a turbo-prop fleet makes this benefit somewhat dubious.

Longevity step increases will continue until the first EMB-175 delivery or 3/31/2015,
whichever is later.
- Thereafter, the Captain pay scale will be capped at 12 years of service and the
First Officer pay scale will be capped at 4 years of service.
- Captains above pay step 12 and First Officers above pay step 4 on that date will
remain at their current step.


I think this may be the single worst part of all of this- longevity step freezes mean that even with flow-through rights, or what have you, FOs making Captain if this agreement was passed would either need to flow up to American or be stuck at 12 year pay as a maximum. For the more junior first officers, this would foreseeably be a problem as it caps their earnings while American may or may not continue hiring. Hiring forecasts may predict lots of hiring at Legacy carriers, but unforeseen circumstances have previously derailed promises of 'rapid flow through'. After the infamous Letter 3 agreement which preceeded Embraer 145 deliveries, pilots were promised flowing to AA after a few years. Many of those pilots are now very senior CAs at Eagle and are well above pay step 12. 9/11 was largely considered the reason for this, but the company has previously demonstrated its willingness to ignore contractual promises and then arbitrate later to suit its own ends. Furthermore, given that we have seen exactly what can happen when unforeseen circumstances strike, capping maximum pay based on the 'possible' eventual movement to another carrier seems a little foolish.

Effective with the 1st EMB-175 delivery, a pilot who declines an offer at American Airlines will cease to receive longevity step increases at the time he declines flow through, except that any captain at steps 15 through 17 when the first EMB-175 is delivered will be allowed to advance to step 18.
This is a grandfather clause, designed to appease those who are likely already career Eagle pilots, while potentially undermining the future Eagle pilots that come after them. It's also an incentive to 'force the flow' with a ceiling on career earning expectations.

Effective 1/1/2014, profit sharing will be eliminated as long as it is eliminated for all other AE employees.

Why the hell would we give this up? It's just another way of the company avoiding paying pilots. Especially given that it was previously promised to us for something we were forced to give up. It's also incentive to find ways to stop profit sharing to other groups. If we got this in bankruptcy, why give it back right away?


Enhanced Flowthrough
Beginning 9/1/2014, American Eagle will not restrict the flow of pilots to less than
30 per month.
Protected Pilots The minimum available AA class positions will be increased from
35% to 50% for pilots who were on the seniority list as of 10/11/2011.
All pilots hired after 10/11/2011 (including future hires) will have the same flow through opportunities provided by the Protected Pilot Agreement.
- The minimum available AA class positions will be 50%.
- Pilots hired after 10/11/2011 may be withheld for active
Performance/Attendance Advisories. An expedited dispute resolution
process will be available to such pilots.
Annual True-up In any year that AA hires 720 or more pilots, at least 360 will be
Effective 1/1/2015 Eagle Flowthrough Pilots.
In any year that AA hires fewer than 720 pilots, at least 50% will be
Eagle Flowthrough Pilots.
This does not release the company from the obligation to release
at least 30 pilots/month subject to the 50% calculation.
Within 30 days of mainline integration, Eagle and ALPA will meet and consider flow through enhancements.
Nothing in this proposal will compromise the Association’s position with respect to the current withholding dispute.

Currently, Eagle management has informed Eagle ALPA that they intend to 'meter' the number of pilots flowing up to AA in order to not disrupt operations at Eagle. While the logic is sound, Eagle ALPA maintains that they do not have the right to do so and is seeking arbitration. The fact that this is a bargaining point here seems to make it as if we're negotiating with ourselves. Why, if contested elsewhere, would we allow this to be a point where it seems as if they've given us something here? This is- once again- management finding a way to not make good on past promises or manipulate contractual language to avoid something they already owe.
Furthermore, the 'Protected Pilot Status', a sort of 'Letter 3 version 2.0', allows all pilots hired up to 10/11/2011 to flow to AA in seniority number order, and this agreement would extend that Status to all current and future Eagle pilots. THIS IS DANGEROUS. This will be, in turn, a product used to market employment for pilots at Eagle as the 'fast track to a mainline carrier', while meanwhile we've capped pay and lowered expectations for the industry. This is an attempt to shore up recruiting shortfalls without actually offering any real or tangible compensation now but suggesting that someday- later- you'll make more money as an AA pilot. Why is this so dangerous? Because pilots buying into this will be, by virture of pay rate caps and other things given up in this agreement, cheaper. The continued lowering of cost of labor in the so-called 'regional' segment gives airline managers further incentive to erode scope at the mainline airlines. As long as the regionals continue to somehow get cheaper, the 'flow through' to the mainline carrier we're being promised today will be less likely to happen tomorrow. As long as regionals get cheaper, managers will hammer away at mainline scope clauses. They said we'd never get 50 seat jets at the regionals, and then we did. The said the same about 70 seat jets, and so on. By this pattern, it's foreseeable that in the next ten years, 737s and Airbus 319s are being lost to cheaper carriers via scope erosion. Making future pilots at the regional level cheaper will cost us *all* in the future.


Sick
Accrual After 90 days but less than 5 years of service: 3.5 hours/month
Effective 1/1/2015 After 5 years of service: 4.0 hours/month
Supplemental Sick Banks will be frozen but remain available.
Effective DOS Eliminate 7 day waiting period for access to supplemental sick.
Reserve days will be paid and credited at 4 hours/day.
PTO system will be eliminated.

The sick time accrual goes up from 2.5 hours per month to 3.5. This isn't very much. I'd say no less than 5 hours to make the system seem less like a punitive action against a pilot. Currently, missing one week of flying due to a case of bronchitis can erase eight months of sick pay accrual. If a pilot gets sick once or twice a year, they rapidly wind up in the hole and with a disincentive to call in sick even when they have a stated obligation to safety to do so.
Supplemental sick pay becomes frozen? Congratulations- sick pay goes up a whole hour, so maybe it'll take an extra month's worth of sick time during that second week after you break your ankle to exhaust your sick bank and wind up going without pay. This is a backdoor pay cut in a big way. Eliminating the 7 day waiting period to use a now frozen resource seems designed to drain it- and once it's no longer there, nobody will raise a voice when they take it away.
Reserve value of the day is currently 3:54 minutes. This would be a raise of a WHOPPING six minutes per day! This increases pay by approximately 2.5 hours, effectively raising the minimum guarantee for reserve pilots the same. Gee, that's a bundle!
I'd be happy to see the PTO system go, but I'd be happier to have paycomp auditors that have a clue what they were doing and weren't constantly screwing up pay. This is fluff.


Vacation
Accrual After 1 year 1 week
Effective 1/1/2016 After 2 years 2 weeks
After 7 years 3 weeks
After 14 years 4 weeks


Current vacation time works under the PTO system. Assuming 21 hours per week of vacation, a 1 year pilot accrues 72 hours of PTO. If 2.5 hours per month are sick-use PTO, and the remaining is vacation time, then the pilot with one year of service accrues 42 hours, or two weeks of vacation. This means pilots would take a vacation time cut for the next two years. By the current PTO metric, a 5 year pilot accrues 3 weeks of vacation via PTO. This means another 2 year loss of a week of vacation time. Under the PTO system, a 15 year pilot accrues 4 weeks of vacation time, which means this is a gain for pilots of a year in the accrual system. But with the enhanced flow-through- does anybody *plan* on being here more than a few years? That's what they're suggesting, right? So this is a big cut in time off for everybody as a pilot at Eagle in the future. And that makes them cheaper- and cheaper labor at the entry level is bad for everyone.

No pilot’s accrual rate will be lower than the rate he or she has on 1/1/2016.

Grandfather clause. They're trying to buy us off in exchange for selling out our own futures.

Vacation for new hires will be pro-rated in accordance with the current Eagle Contract.

I'm not even sure how this would work given what was bulleted above. Anyone?

Return to the 2009 CBA vacation section except as modified above.

So it's back to 'block' weeks of vacation time, except everybody gets fewer weeks! What?

PTO system will be eliminated.

Again- fluff. That they take extra numbers out doesn't change that they're asking us to take less.


EMB-175 Initial Cadre

The company wants to abbreviate the training when the EMB-175s are delivered, so the initial cadre may be trained in advance and returned to their old equipment until EMB-175s are delivered.


The company wants these airplanes NOW, and will not wait for a delay in pilot training to have them. They want to train pilot cadre *immediately*, which means the airplanes are either already on their way, or will be, shortly. In other words, as soon as the company thinks they've gotten what they can from us, they're ordering airplanes. Gee- why so eager? And why should we pay so much for what THEY are clearly already set on getting?

The initial cadre training for EMB-175 pilots who are trained in the EMB-175 will return to their existing equipment type once the initial cadre training is completed.

"Well, uh, the airplanes might not get here... RIGHT away... so we're gonna send the pilots back to their current types while we move the truck we hid them behind... Er... uh.. I mean, figure out what we're really going to do with this order." The company wants to spend money to train pilots on a new type and that order isn't coming right quick? Riiiiiiiight.

No company jeopardy during the training to return to existing equipment and subsequent requalification training for the EMB-175.

Yep, because a brand new training program will experience growing pains, not the least of which will be the company trying to squeeze pilots to be cheaper by cutting corners on training and simulator time. Ask me how I know! (How do I know? I was first through the FOQ program for ATP/type ratings- and my sim partner and I both strongly urged the training department managers to add a sim period or two or there'd be a high pilot washout rate. Guess what happened?)

Per Diem
Per diem will be $1.80 for the duration of the contract.

Per diem is ALREADY $1.80! Why is this even here? Were they trying to steal our lunch money, too?

Medical
Effective 1/1/15, increase employee contribution from 30% to 31%
Effective 1/1/16, increase employee contribution to 33%
Effective 1/1/17, increase employee contribution to 35%


Medical insurance already seems to go up a little every year, but I'm not totally certain where I can get the best hard data on this. Can someone chime in on this, please? Either way- why are we seeing cost increases? I think if the company wants pilots to be sick less, they would be more willing to take the sting out of proper medical care expenses. Again, shaking us down for whatever change might be in our pockets.

Retirement
Maintain Eagle 401(k) plan.

Glory be! We get to keep the 401(k) plan that was already the product of a concession many are still not sure why we even gave, and already cost some pilots thousands of dollars. This is fluff, even if they wanted to try to take this away. I can't believe this was even a point of consideration- as an FO, just getting by is already enough of a concern, and I have in a few cases tapped my 401(k) to fix things here and now- let alone in my retirement years.

PBS
The parties’ obligations under Letter 13-04 are suspended (without retroactive effect) until delivery of the 61st EMB-175 at American Eagle Airlines.


Considering how hard some people are stumping for PBS, they must really want this. This, however, is an empty promise, and only delays this. Who's to say the plan isn't ALREADY to give Eagle the additional 90 Embraer 175s, and this isn't just more fluff? Given the response to PBS by Eagle pilots so far, even if it was already somehow 'paid for', I'd wager Eagle pilots would vote it down anyways. This would only delay the inevitable, and might not mean anything at all.

Signing Bonus
$1500 paid to each active pilot as of the date of ratification.


BRIBE. noun: money or any other valuable consideration given or promised with a view to corrupting the behavior of a person, especially in that person's performance as an athlete, public official, etc.: The motorist offered the arresting officer a bribe to let him go.
(definition taken from www.dictionary.com)


Amendment Round
Reopener of no cost items at 5 years after Date of Signing. Each party may submit up to 5 issues which will be resolved in interest arbitration if not resolved in negotiations.


Currently, the Duration section of our banruptcy produced CBA has our first Amendable round in 2016- three years after implementation, and a total duration (if I read this right) of FOUR years. Now that contract Amendment would be 5 years for a 10 year contract here. WHY SO LONG? Previously, the company pushed for a longer term contract. Could it be that the company sees a changing landcape where pilots (and other employees) become more valuable, and therefor are scrambling to lock in whatever cut rates they can to avoid paying out over time? I think so. And yes, many of our mainline counterparts are seeing modest raises, but if we at the regional level continue to allow our pay to be cut, that won't last. Mainline pilots might not see their pay rates erode, but managers will continue to go after scope, and when the 100 to 130 seat class domestic jets start slipping away, that will mean thousands of jobs winding up at lower paying carriers, at a loss in the millions to pilots. This is cheap sleight of hand. Don't fall for it!

Furthermore, our contract Duration section has things like 'profit sharing' in it, but this agreement would do away with that, and then remove the chance to address 'cost items' i.e., places where they pay us more. Gee- if we're going to become more valuable, why would we give up that negotiating leverage now?

Fleet Commitment
Minimum of 60 EMB-175s to be operated by pilots on the seniority list.


Where was the fleet plan that we were promised for working the with company? Oh, wait- that was pre-merger? The one that went on for years? Uh, no. Currently, according to airlinepilotcentral.com, Eagle has 235 airplanes. That's 47 CRJ-700s, 11 EMJ-135s, 59 EMJ-140s, and 118 EMJ-145s. It's a known thing that the 135's are bound for the desert, and the 140's soon to follow. That's a loss of 70 airframes. Many of the 145's are headed elsewhere than Eagle's future as well, I'm told. Given that, how does 60 airframes help us? When PSA sold everyone out, the number of CRJs they were promised does far more to replenish their fleet and very small pilot group than 60 airframes does for us. Assuming the CRJs stay, we have 188 airframes to make up for with fleet renewal. The fun part? We haven't been promised that the CRJs would be staying.
If AAG acquires additional EMB-175 aircraft from the manufacturer, the first 90 such aircraft delivered will be placed on the EGL operating certificate.
That additional 90 jets would make for 150 airframes total, and would about do it. But we haven't been promised those. Just a big MAYBE. I'd wager those come with additional concessions too. Mind you, this is an IF. All management would have to do is say, "Sure, you're guaranteed the next 90 175's, but they're going to cost more, so we thought we might get CRJ-900s and put them somewhere else..." And there you go.


***
In summary, this offer, while padded with "enhanced flow-through' options, is worthless. It's essentially the same thing we were 'offered' (threatened with?) in December, just with a lot of extra confusing language and distractions thrown in.

It's time for Eagle pilots and pilots everywhere to stop selling themselves out. With the new First Officer hiring requirements, FAR 117, and Age 65 all upon us, it's time to realize that WE ARE WORTH MORE. I don't mean that in a 'daily affirmation' sort of way, either. In terms of cost of production, becoming a pilot via out of pocket civilian training has never cost so much, yet paid so little. WHY? As people ask themselves that question, and the supply of eager young applicants dries up, rumors of recruiting offices poaching new hires spread. Would those rumors be given any credence at all if they weren't at least slightly plausible?
This 'Agreement In Principle', Tentative Agreement, or wahtever you choose to call it, is a slap in the face. Pilots are valuable, and as each of the large airline brands in the world tries to grow, it has to pay enough to meet the demand. Laws in Russia have been changed to allow for foreigners to fly there. Asian and Middle Eastern carriers are luring pilots with extensive and lucrative compensation packages. Meanwhile the U.S. lags behind. Why? Because we're the largest supplier of new pilots world-wide. It might be because we have a lot of dreamers with the means to make it happen, yes, but hopes and dreams won't pay the mortgage or buy medicine for a sick child. They won't stack up in the savings account for a furlough when airline managers stuff their pockets with bonuses right before the airline goes bankrupt.

It's time to demand our due worth. Pilots are valuable, and those that employ us had either start paying our due worth- or start running out of pilots. Anyone remember the exodus of First Officers in 2007? I foresee that happening again in 2014, but with additional losses as senior Captains flow to AA. AA and Eagle management had better get to work- they've never been more profitable and at the same time more stingy. Put the jets at other carriers? Who else can staff their airlines at these rates?
And for our dear Flight Attendants- It's a very dim pilot that doesn't recognize the extreme value and worth that our cabin crewmates bring to the operation in many, many ways. That said, the press release put out by your union representatives was horrible. It was not only premature, as final language of these bullets has yet to be drafted, let alone voted upon, but also hugely self-serving. Touting that Eagle pilots had 'saved the airline' by agreeing to these terms is very disingenuous, as you put the future of this airline on the decisions of pilots being forced to ruin our own livelihoods both present and future by the actions of management. There are workable solutions that do not include cutting pay and benefits to pilots. Given that we've been promised so very little here, there's no saying that the possible shrinkage of Eagle would not still see many, many Flight Attendants on the street. You all need to bring the cool heads you bring to the airplane to the negotiating table. However, as it is not you at the negotiating table, I and many Eagle pilots do politely request that you refrain from prematurely commenting on this process. Many see the press release from your union last night as fear-mongering and an attempt to coerce pilots' decision making out of fear for your own jobs. That would seem to align you with management, and is totally inappropriate.
Trust in us as we trust in you. We need your support now more than ever- not just for you, or for us, but for us all.

This AIP is little more than a stale, rotten, concession-loaded carrot that they dangle today to draw us out that will eventually, inevitably become the stick they hit us with tomorrow.

In summary- MY VOTE IS NO.


NO CONCESSIONS! NO WAVERING!
 
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@Firebird2XC , thanks for the write up. They're are a lot of Eagle threads lately, but I think a line (hopefully) is starting to be drawn in the sand. For where I'm at in my career, as I am beginning to look at 135 and 121 regional jobs, I really appreciate the insights given on JetCareers. I find myself here lately reading the forums daily.


Sent from my iPhone using Tapatalk
 
I thought the union said no to these concessions based on your previous thread?

Either way I hope the vote is no.

So did I. I thought when they came back with a counter-proposal, it actually wouldn't suck.

IT TOTALLY SUCKS.

It looks like they opened some stuff up, but in reality, this appears to be even worse.

I was happy we told them their initial proposal wasn't happening- that's more than other groups can say.

That said- it's time for Eagle pilots to rally up and put the kabosh on this for good. The language will be written up, and voted on. And now we vote it DOWN.

They're trying to rape our livelihoods.
 
@Firebird2XC , thanks for the write up. They're are a lot of Eagle threads lately, but I think a line (hopefully) is starting to be drawn in the sand. For where I'm at in my career, as I am beginning to look at 135 and 121 regional jobs, I really appreciate the insights given on JetCareers. I find myself here lately reading the forums daily.


Sent from my iPhone using Tapatalk

People's SPOUSES are calling for blood.

Pilots are beating the war drums. I don't see this passing.
 
It's time for Eagle pilots and pilots everywhere to stop selling themselves out. With the new First Officer hiring requirements, FAR 117, and Age 65 all upon us, it's time to realize that WE ARE WORTH MORE. I don't mean that in a 'daily affirmation' sort of way, either. In terms of cost of production, becoming a pilot via out of pocket civilian training has never cost so much, yet paid so little. WHY? As people ask themselves that question, and the supply of eager young applicants dries up, rumors of recruiting offices poaching new hires spread. Would those rumors be given any credence at all if they weren't at least slightly plausible?
This 'Agreement In Principle', Tentative Agreement, or wahtever you choose to call it, is a slap in the face. Pilots are valuable, and as each of the large airline brands in the world tries to grow, it has to pay enough to meet the demand. Laws in Russia have been changed to allow for foreigners to fly there. Asian and Middle Eastern carriers are luring pilots with extensive and lucrative compensation packages. Meanwhile the U.S. lags behind. Why? Because we're the largest supplier of new pilots world-wide. It might be because we have a lot of dreamers with the means to make it happen, yes, but hopes and dreams won't pay the mortgage or buy medicine for a sick child. They won't stack up in the savings account for a furlough when airline managers stuff their pockets with bonuses right before the airline goes bankrupt.

It's time to demand our due worth.


Can I ask you how old you are and how long you've been at Eagle?
 
It looks like they opened some stuff up, but in reality, this appears to be even worse.

I was happy we told them their initial proposal wasn't happening- that's more than other groups can say.

Another Eagle cheap shot at PSA. Not condoning but while I still held a role which put me close to the MEC there your comment couldn't be further from the truth. Those talks happen nearly 3-4 times a week over nearly 4-6 weeks. There was movement from initial meeting to last crap offer. Both offers aren't ideal but unfortunately the industry is in a place where management feels they can make such offer.

Anyways best of luck but the above comment was off basis. Did the offer stink? Absolutely but it took some major talks to even get that much.
 
Charlie, you and i may not agree on other subjects, but this very well written! And since i can't say so on Facebook anymore, i want you to know this is by far the most eloquent and intelligent response I've heard yet. Thank you for posting this.
 
Another Eagle cheap shot at PSA. Not condoning but while I still held a role which put me close to the MEC there your comment couldn't be further from the truth. Those talks happen nearly 3-4 times a week over nearly 4-6 weeks. There was movement from initial meeting to last crap offer. Both offers aren't ideal but unfortunately the industry is in a place where management feels they can make such offer.

Anyways best of luck but the above comment was off basis. Did the offer stink? Absolutely but it took some major talks to even get that much.

Not really. PSA rolled over, and set the low bar Eagle now has to deal with. K, thanks, bye.
 
keep-calm-and-just-say-no.png
 
You just did.

Haha true. You know what I meant.

I honestly want to see. I did trace look a look at his post history and it seems he was hired Oct 2007. Now I'm just curious about his age. Only reason I ask is I have a guess at what his age range is based on his insults to me (which were moderator deleted) and on cencal. This Firebird guy is a little too emotional for his own good.
 
Haha true. You know what I meant.

I honestly want to see. I did trace look a look at his post history and it seems he was hired Oct 2007. Now I'm just curious about his age. Only reason I ask is I have a guess at what his age range is based on his insults to me (which were moderator deleted) and on cencal. This Firebird guy is a little too emotional for his own good.
Yet you keep engaging him and commenting about him publicly. Is that an age related issue as well? If you don't like his posts, his posting style or him, then ignore him/them. Solves your personal problem.
 
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Yet you keep engaging him and commenting about him publicly. Is that an age related issue as well? if you don't like his posts, his posting style or him, then ignore him. Solves your personal problem.

I never commented about him publicly. I wrote my honest opinion on the broken regional model and he came back with a large personal insult. cencal wrote a similar legitimate post and he Firebird torched him. I'm simply trying to see where this guy is coming from.
 
I never commented about him publicly. I wrote my honest opinion on the broken regional model and he came back with a large personal insult. cencal wrote a similar legitimate post and he Firebird torched him. I'm simply trying to see where this guy is coming from.
Then PM him and start a conversation with him. And yes you are commenting about him and now even resorting to asking about his age.
 
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