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LOA 20-05 TA passes -next steps

September 29, 2020, 14:15 CT

Membership Ratification Results

The Pandemic Recovery Letter of Agreement,

is now LOA 20-05 in the United Pilot Agreement.

The official ballot certification is here. Turnout was high with 94.8 percent of eligible voters casting a valid ballot. The results are as follows, with 58 percent In Favor and 42 percent Against:

In Favor 6,337
Against 4,666
Eligible Voters 11,770
Total Votes Cast 11,161 *
Percentage of Votes Cast 94.83%
*158 ballots cast in which the voter did not select either option.

If you missed it yesterday, a video message from MEC Chairman Capt. Todd Insler can be found here along with this press release.

LOA Approved - Next Steps Sept. 28 2020 (PDF)

With the vote concluded, here is a brief back-of-a-napkin analysis of staffing costs. With DOH finally available, we looked at staffing numbers and added hourly rates based on category (BES) and longevity for each pilot on the seniority list. We only considered hourly rates, block hours and the 16% B-Fund. No other employee costs are considered in these rough estimates.

Next we looked at actual block hours from the UAL MEC SSC.

The SEP 2020 block hours suggest a pilot cost (hourly & 16% B-Fund only) of about $110 million per month for 4977 active pilots.

LOA 20-05 costs an estimated $165 million per month (hourly & 16% B-Fund only). How many pilots could be carried without the LOA? Looks like about a total of 7500 pilots out of 12,483 - about 60%. This would also mean a potential furlough of up to 4,984 without the LOA in effect and no change in traffic.

If you subtract the planned 655 PVSL2, the about 80 PVSL1 (NOV 30th) and mandatory age 60 retirements by JUN 2021, you arrive at the published number of about 3,900 furloughs.

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