Alchemy
Well-Known Member
6% paycut proposed. Of course, it still has to be voted on by the pilot group to see if it will take effect:
- 3% instantaneous pay reduction effective upon ratification
- Forfeiture of longetivity and annual cost of living pay raises for 1 year (until Sept 30, 2009). This equates to an additional 3% pay cut for most pilots.
-No changes to 401K, vacation, or other work rules.
- Letter promising not to seek additional concessions from the pilots if the company enters bankruptcy (yeah right).
- Snapbacks: 25% if 80 mil in annual profits are reached, 50% if 90 mil, 100% if 100 mil of profits are reached. 10% of pretax profits go to profit sharing, in addition, half of all profits beyond 30 mil go to profit sharing.
- Pay restored if ownership is changed, or maagement compnsation levels ncrease
This agreement will supposedly save the company $10,200,000 anually and, combined with concessionary packages from other work groups, allow Expressjet to "break even" on their new 7 year CPA with Continental.
In summary, 6% sliced off the payscale, and no realistic chance of ever getting it back ($30 mil pofit, yeah right) until another contract is negotiated. The 7 year CPA with CAL is "break even at best", so I fail to see how any of the profit sharing or snapbacks are even relevant. The MEC chairmen says bankruptcy is imminent if the TA is not approved, based on their analysts' assesment of XJT's financial condition. In bankruptcy CAL can void the Capcity purchase agreement with XJT, making liquidation a high probability.
No shortage of fear grenades being lobbed by both management and the union on this one. To top it off the company waited until today, the day 347 pilots lost their jobs, to reach a TA. Guess they didn't like how those 347 were going to vote.
- 3% instantaneous pay reduction effective upon ratification
- Forfeiture of longetivity and annual cost of living pay raises for 1 year (until Sept 30, 2009). This equates to an additional 3% pay cut for most pilots.
-No changes to 401K, vacation, or other work rules.
- Letter promising not to seek additional concessions from the pilots if the company enters bankruptcy (yeah right).
- Snapbacks: 25% if 80 mil in annual profits are reached, 50% if 90 mil, 100% if 100 mil of profits are reached. 10% of pretax profits go to profit sharing, in addition, half of all profits beyond 30 mil go to profit sharing.
- Pay restored if ownership is changed, or maagement compnsation levels ncrease
This agreement will supposedly save the company $10,200,000 anually and, combined with concessionary packages from other work groups, allow Expressjet to "break even" on their new 7 year CPA with Continental.
In summary, 6% sliced off the payscale, and no realistic chance of ever getting it back ($30 mil pofit, yeah right) until another contract is negotiated. The 7 year CPA with CAL is "break even at best", so I fail to see how any of the profit sharing or snapbacks are even relevant. The MEC chairmen says bankruptcy is imminent if the TA is not approved, based on their analysts' assesment of XJT's financial condition. In bankruptcy CAL can void the Capcity purchase agreement with XJT, making liquidation a high probability.
No shortage of fear grenades being lobbed by both management and the union on this one. To top it off the company waited until today, the day 347 pilots lost their jobs, to reach a TA. Guess they didn't like how those 347 were going to vote.