Endeavor Getting Desperate

E-mail from MEC last night:
November 21st, 2014
Pilot Retention Program TA Reached

The MEC is excited to announce to all Endeavor Air pilots a new tentative agreement which for the first time meaningfully addresses our pilots’ economic concerns while taking an important step towards securing a more promising future for our airline. Over the past few weeks, the company and the MEC have worked to develop a range of concepts designed to address attrition, particularly FO attrition, which has recently risen to unsustainable levels. The retention provisions include cash bonuses and vacation buy-back. Along with the proposed letter of agreement, all sides are currently involved in and dedicated to completing the development of a Delta interview program for FOs. Additionally, the company will offer referral bonuses for employees who bring new pilots to Endeavor and longevity restoration for former company pilots returning to Endeavor.

The retention bonus program will run through the end of 2016, paying $15,000 each year to each eligible pilot ($30,000 total per pilot). The payments will occur on September 30, 2015 ($15,000), April 30, 2016 ($7,500), and December 31, 2016 ($7,500). Any pilot on the seniority list at the beginning and end of each period will be paid the full retention bonus for that period. Pilots who have months of inactivity, new hires, and pilots who leave mid-term for Delta will receive a pro-rated retention amount. This represents an investment from Delta of tens of millions of dollars in our pilot group. It would make total annual compensation of our first officers the highest among U.S. RJ operators while bringing total pay for our topped-out captains near the industry and Delta Connection averages. The company will additionally offer to buy back any pilot’s 2015 vacation, in one-week increments at 150% premium. This will provide pilots in financial crisis an opportunity for a short-term cash infusion.

Beyond the financial incentives, the MEC and company are actively developing a Delta interview program for first officers which will commence interviews shortly. Successful candidates would receive a CJO contingent on a finite term of service with the company prior to movement to Delta. The parties expect to finalize the program in the coming weeks. Other opportunities include a re-hiring program, which would allow former company pilots who return to Endeavor to receive restoration of previously-accrued longevity (but not seniority), and a pilot referral program which would confer a $2,000 bonus to any Endeavor Air employee who refers a new-hire pilot who is successful in training. While these programs alone will not solve our hiring shortfall, they offer a unique inducement to our former coworkers to rejoin our ranks while rewarding current employees’ recruitment efforts.

To further their hiring efforts, the company also intends to cancel the EtD hiring commitment. Our executives have stated that they need the ability to quickly offer employment to qualified pilots who express an interest in Endeavor Air and that this ability is hampered by the EtD selection process. While the prospect of additional hiring is encouraging, the loss of this unique program and the implications for our relationship with Delta will be understandably troubling for some pilots, as will the elimination of the supplemental Delta hiring commitment that ran concurrent with the EtD program. The MEC would point to the magnitude of Delta’s new monetary commitment as a positive sign and an indication of Delta’s renewed commitment to sustain this operation into the future.

Pilots have also undoubtedly heard by now of the agreements to send twelve of our former CRJ200s to SkyWest and send twenty-six to Air Wisconsin. Endeavor management has assured us that these arrangements will not result in loss of employment for any current pilots nor will they cause aircraft to be retired at a faster pace than planned. Simply, our inability to meet staffing targets this year has caused us to be unable to operate thirty-eight of the jets we were planned to operate for 2015. However, there are CRJ200s that remain in the 2015 plan as well as aircraft we have parked in the desert; we hope that this pilot retention program will be an important first step in positioning our airline to take advantage of those and future opportunities.

This tentative agreement offers considerable financial gains to all pilots who choose to remain with Endeavor Air for the retention program duration. For pilots who wish to act as informal recruiters or sell their vacations for premium, the upside is even more substantial. Lastly, in recognition of our pilots’ desire for career progression and in response to first officers’ desire for a job opportunity with Delta, we commit to finalize the interview program. While this deal does not accomplish all of our pilots’ strategic goals, it raises the bar in many areas that the MEC believes will be desirable and beneficial to our pilots. We appreciate the collaborative process that has led to this arrangement, and we recognize that this deal would be impossible without Delta’s continued support. The MEC will vote on the tentative agreement Monday evening. In the meantime, please express your sentiments regarding these provisions and the coming decision to your local status representatives.
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Wow...very interesting. The canceling of the ETD program is essentially an admission that it was a complete failure.

Time will tell whether or not the retention bonus program will work. Best of luck to all those at Endeavor!
 
Engine Room to Captain: "Captain, we've hit an iceberg! She's taking on water!"
Captain to Chief Mate: "Do we still have that blank paint? The left side could really use another coat. We want her to look stunning in port."
Engine Room to Captain: "Captain, the water is coming fast! The engines have stopped! She's starting to list!"
Captain to Chief Mate: "Actually, why don't you make that two coats."
 
What happens after two years? This seems like a short term solution. Maybe it will buy them enough time to figure out another plan, but after yesterdays news I cant imagine it will starve off attrition.
 
bretthullrampage said:
What happens after two years? This seems like a short term solution. Maybe it will buy them enough time to figure out another plan, but after yesterdays news I cant imagine it will starve off attrition.
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We have a WINNER!!

Only took a few minutes.

Retention bonus to hold onto "closing shop" crew.

Anyone who sticks around til the end may make out a little bit, but their career could be stymied a bit if they wait til the last moment just for a few grand.
 
Too little too late. Unless they are offering time in the left seat, like many other airlines are, then theres no point.

I also cant imagine the amount of resignations that will be sent in on October 1st. O/U 125.5 ?
 
v1valarob said:
Too little too late. Unless they are offering time in the left seat, like many other airlines are, then theres no point. I also cant imagine the amount of resignations that will be sent in on October 1st. O/U 125.5 ?
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Over.
 
The last time they had a "referral bonus," we referred to it as the "former friends program" since most of us wouldn't tell our worst enemies to come there.

Here's my question, though. What happens to the retention bonus if the airline isn't around when the target date rolls around? I notice they mention "airplanes in the desert," but I don't see any plans (or really any reason) to pull them out of the desert. If Delta has already allocated 200s to SkyWest and Air Wisconsin, they're gone and not coming back. Also, there are CRJ200 plans for 2015.....but what about 2016?

Best part about this is the SSP looks like it's finally coming to FOs. If that happens, I don't think $15,000/7,500/7,500 is gonna keep someone as an FO at 9E. BUT, I also notice there's a little caveat in there for "finite term of service with the company prior to movement to Delta." Until those details come out, I'm not sure what to think about it. What is their concept of "finite," and what kind of terms are there? If you call in sick or get a letter in your file does your offer get yanked like in the EtD program?
 
The SSP for FOs won't do much. They will burn through that quickly. Is the Delta selection team on board with that? They make the decisions on who actually gets a yes. Why would they when there are many more qualified people out there? Also the hiring commitment reverts back to 144 per year from 300.
 
stormchaser said:
Engine Room to Captain: "Captain, we've hit an iceberg! She's taking on water!"
Captain to Chief Mate: "Do we still have that blank paint? The left side could really use another coat. We want her to look stunning in port."
Engine Room to Captain: "Captain, the water is coming fast! The engines have stopped! She's starting to list!"
Captain to Chief Mate: "Actually, why don't you make that two coats."
Click to expand...
I think it'll be more like:
"My god, was anyone in here?"
"Aye."
 
surreal1221 said:
We have a WINNER!!

Only took a few minutes.

Retention bonus to hold onto "closing shop" crew.

Anyone who sticks around til the end may make out a little bit, but their career could be stymied a bit if they wait til the last moment just for a few grand.
Click to expand...

Shouldn't you be worrying more about what's going on at your place?

I trust the union leadership at PCL and know they wouldn't have brought this deal forward and talk about it in this context if it was a bad deal.
 
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