Senior Pilots Bail Out...

[Johnny Mapleleaf]

One of my good friends, a senior Captain, just hung up his headset for the last time. He bailed so that he could lock in his pension under its existing terms. Two dark clouds of uncertainty put him over the edge, he says: the impending threat of CCAA, and the current unfavourable negotiation atmosphere that will almost certainly lead to compromises in the pension pay-out to those who remain behind.

Apparently he is not the only one. Several other 777, 330 and 767 drivers have also either already bailed or are seriously contemplating doing so, very soon, giving the airline practically no notice!

Word is that the situation is getting so bad that the summer schedule on the senior equipment is looking very problematic.

[HighT5]

Not a big deal, there's plenty of guys ready to fill their spots for less pay and reduced benefits. AC will be just fine.

[yycflyguy]

Actually, it IS a big deal and AC will have a difficult time expeditiously filling the 777/A330 CA positions and every seat vacated below them. Summer busy season is right around the corner. They can't hire fast enough right now to fill the normal and unexpected retirements plus get all the training done. Flights are quietly being consolidated or cancelled... or blamed on labour disruptions.

I feel for those who put in 30 years only to leave with this bitter taste of disrespect in their mouth. I wish them well.

Management heads should roll for their handling of the crewing.

[Mig29]

Interesting....not surprising nonetheless....I would do the same if I was them. Get the money out from AC pension and put it in a RRSP in a bank of your choice.

[Johnny Mapleleaf]

Actually, it IS a big deal.

I agree. It would be fairly easy for junior pilots to say, “Good riddance.” But a few minutes of reflection should give pause to that sentiment.

What we are presented with here is an incredibly complex issue, especially for career-minded professionals. Those, including myself, near the exit point, who have invested decades of our lives in our professional commitment to this employer are faced with some very speculative, and for the most part unattractive options, given the ill-health not only of our employer, but of our defined benefit pension plans.

There is no guarantee, given the uncertainty, that if I were to elect to leave right now, that my pension would be secure. It is divided into two components, one-half of which is almost completely unsecured—it is comprised only of a “promise to pay” by an employer that, by filing its second CCAA, would say its liabilities exceed its assets.

The other half is made up of a requirement for funding that is based largely upon assets that are not liquid or present. Some discount to its pay-out is almost inevitable.

For those who think that Air Canada won’t meet the fate of Canada 3000, Greyhound or Nationair, and for those who think some sort of bailout is inevitable, I would like to share some of what you are smoking, but my sense of reality prohibits that. This is 2012, not 1989.

For those who think that this is not everyone’s problem, I shudder. We are all in this together, and never has there been a greater need for more cohesion. That will become painfully evident sooner than we wish, as I see things unfolding.

There are two levels to this issue, as I see it. First, there is an immediate operational problem. How does the airline manage its schedule with so many unpredictable absences and disgruntled employees, pending the arrival of the big decision? The airline’s schedule is predicated on the availability of X number of pilots in each position. That number is clearly prejudiced in the senior ranks, given these very real effects.

Second, even if it could put pilots in the proper seats in time to manage its present schedule, how does its solve the underlying problem that shows every sign of decaying the airline’s ability to manage its crew planning in the short-term?

It would be easy to say that that is management’s problem, or it's management's fault. But really, it is everyone’s problem, and it doesn't matter what caused the problem--the problem is serious and must be dealt with.

[Rockie]

It would be easy to say that that is management’s problem, or it's management's fault. But really, it is everyone’s problem, and it doesn't matter what caused the problem--the problem is serious and must be dealt with.

Yes it is everybody's problem but the employees have absolutely no power to change the outcome. We have no say in manning levels, no say in business strategy, no say in what demands the company makes, no say in company culture and no say in what the government will do.

Our function is to shut up and take the blame for everything the company executive does.

[Mig29]

You are quite correct Johnny in saying it's not the full amount you would expect to receive right away! It is more like 75% or so, as the pension fund is not fully founded (obvious fact) and so AC has a right to retain the remaining amount UP TO 5 years or until the fund is at 100%. That may take a while or....

Crappy situation no doubt....

[vic777]

Get the money out from AC pension and put it in a RRSP in a bank of your choice.

Which causes me to mention the most thought provoking video I've seen this year, or more ....

http://video.google.co.uk/videoplay?doc ... 3790090544#

Can this possibly be true?
Rocky do you have the time to watch the whole video and give an opinion?
thanks,

[chatman]

Interesting....not surprising nonetheless....I would do the same if I was them. Get the money out from AC pension and put it in a RRSP in a bank of your choice.

I am sure the few that quit from AC and got there pension payout before the Aveos mess are counting their blessings...

And also the ones that retired from AC and were rehired to Aveos are happy...but Everyone left at the defunct Aveos are now left with nothing.

[Johnny Mapleleaf]

...but Everyone left at the defunct Aveos are now left with nothing.

Not everyone. To every generality there is an exception. The YEG ex-Aveos employees did not miss a day of work. Re-hired immediatly indirectly (soon to be directly) by the company for whom they are doing the majority of their work.

[CanadianEh]

Mig,

The U.S. is much more irresponsible with their fiscal policy than we are in Canada.

If you want to watch a good documentary that goes much more in depth look up "The Ascent of Money"

[1000islander]

Its not just senior pilots that are bailing...I think that line mtc ame's are fed up with the lack of time to fix the a/c,lack of spares,mels etc and the increasing micro management.Probably a few of these guys willing be departing as well.
Yes, it will be an interesting summer.

[chatman]

How many pilots are eligible to retire this year?

[yycflyguy]

around 10-12 guys per month til December.... plus the surprise early retirements.

[loopa]

Interesting....not surprising nonetheless....I would do the same if I was them. Get the money out from AC pension and put it in a RRSP in a bank of your choice.

Looks like A/C isn't the place to protect the top jobs any more. I feel bad for these guys.

[Mig29]

To Vic and CanadianEh and all of you guys....

yes, I've seen numerous videos on this "banking scam" and I'm giving you one that I just saw....it sums it up in just over 6 minutes and it's so simple to understand that even a 12 year old can figure it out! In fact she just did!

http://www.youtube.com/watch?v=_ae7h8Fi ... r_embedded


ps. sorry I can't seem to embed it but it's definitively worth your 6 minutes!

[vic777]

http://www.youtube.com/watch?v=_ae7h8Fi ... r_embedded


ps. sorry I can't seem to embed it but it's definitively worth your 6 minutes!

Thanks, this stuff is fascinating and mind blowing!

[complexintentions]

If it would be helpful, I would like to offer my services as an experienced B777 captain with extensive international experience! Contract only, ready to go, no training required.

Just kidding. (ish)

But seriously, if you want some good references on the sheer eff-up-ness of fractional reserve banking and the way central banks have pretty much ruined the world financially, check out "The Money Masters". And older doc, quite long and dry but well worth the watch because it pre-dates the crash in 2008 so REALLY called it! Ascent of Money is fascinating for the history of money. Inside Job will infuriate you when you see how smugly incestuous the whole financial industry is. And lastly I would suggest this (fairly short) video series, called "Crashcourse". Chris Martenson is a Phd, and while you may find it a bit too "survivalist", he makes some scarily valid arguments, in particular to do with the phenomena of exponential growth.

http://www.chrismartenson.com/crashcourse

The only thing is, all this stuff will make you want to take every board member on the Federal Reserve/Bank of Canada/Bank of England and toss them in a river...

[gpmdud]

http://www.youtube.com/watch?v=_ae7h8Fi ... r_embedded


ps. sorry I can't seem to embed it but it's definitively worth your 6 minutes!

Thanks, this stuff is fascinating and mind blowing!

Money, as an instrument of exchange, is an artificial construct.
To limit instruments of exchange to a hard limit, like the supply of gold or silver, is ignorant at best.
The promise to repay, based on anticipated future earnings, is what "Debt as Money" is predicated on.
The willingness of people to go into debt, and their promise to repay this incurred indebtedness, is a tribute to the human imagination.
We are limited by our imagination, not by the supply of gold that we've managed to unearth.

[vic777]

The willingness of people to go into debt, and their promise to repay this incurred indebtedness, is a tribute to the human imagination.

Except the necessary inflation cheats the honest sucker (lender/worker) from his justified return. But as Management would say, "God made sheep so that they could be sheared".

[watermeth]

why isn't she talking about those treasure bill yelds which would loose value if the flow of paper money available on the market would increase if we would create money "out of thin air" to reimburse the debt ?

saying the banks are ripping honest canadian citizen off is a bit of a short cut, as average canadian citizen debt ratio is 153%... and no one forced them to sign.

[complexintentions]

Agreed on the fact that some debt happens, but huge levels are a choice. I'm just patiently waiting for the housing bubble to burst...at some point, something's gotta give. And the longer they hold those rates lower, the more painful it's going to be. People just can't seem to help themselves to the "free" money. And all Carnet knows how to do is make noises.

Interesting to watch from overseas, having already watched some other meltdowns that followed the exact same pattern.

[vic777]

And the longer they hold those rates lower, the more painful it's going to be. People just can't seem to help themselves to the "free" money. And all Carnet knows how to do is make noises.

They can't possibly raise interest rates because with the USA Sixteen Trillion in Dept it would bankrupt the USA. If Obama is re-elected the American Economy will be destroyed ... and with it .... the World! If Obama is re-elected the only viable out for the USA is to default on its' depts. The Chinese own the Moon. The only thing saving America right now is the Basket Case that is Europe.

[gpmdud]

And the longer they hold those rates lower, the more painful it's going to be. People just can't seem to help themselves to the "free" money. And all Carnet knows how to do is make noises.

They can't possibly raise interest rates because with the USA Sixteen Trillion in Dept it would bankrupt the USA. If Obama is re-elected the American Economy will be destroyed ... and with it .... the World! If Obama is re-elected the only viable out for the USA is to default on its' depts. The Chinese own the Moon. The only thing saving America right now is the Basket Case that is Europe.

If interest rates go up it would not affect most national debt in the short term but rather the cost of additional borrowing.
The USA would not go bankrupt.
How you get from a re-election of Obama to the destruction of the World escapes me.
How did the Chinese get ownership of the Moon?
What are you smoking?

[vic777]

If interest rates go up it would not affect most national debt in the short term but rather the cost of additional borrowing.
The USA would not go bankrupt.
How you get from a re-election of Obama to the destruction of the World escapes me.
How did the Chinese get ownership of the Moon?
What are you smoking?

I'll make it easy for you .... just buy the YUAN.