System and Line Bidding Proposal Background ● The Cape Air business model necessitates significant pilot movement twice each year. Efforts have been made to mitigate the financial strain of frequent displacements through bonuses, pay differentials, and programs like the two theater bid. ● The past two years have seen a steady expansion of the route network largely through EAS awards. The number of pilot domiciles has increased from 5 to 15 in the Northeast/NY regions alone. Pilots are based at the out stations on EAS service routes. Discussion ● The sheer number of bases and the frequent potential for displacement are rapidly creating considerable anxiety within the pilot group. ● Pilots want more predictability in the base protection policy and more lead time for seasonal relocation to and from the Caribbean. ● The system bidding rules outlined below intentionally give added base protection to out station pilots so that one displacement will not create a domino effect throughout the system while still giving the displaced pilot a number of options. Goal ● Develop policies that clearly define the rules for bidding and base rights that inject a measure of predictability into the process. ● These policies will allow the Company to react to market forces in a timely manner. Method ● The Company may unilaterally change FOM policy. However, they have solicited our input and wish to partner with us on a solution. ● The results of this collaboration could be a platform in contract talks and eventually be part of our future contract. ● Please remember this is only a proposal. The Company has not agreed to any changes to the current FOM policy. Proposal Separate system (base) bidding from line bidding. ● Advantages: – One error will not cause a massive ripple effect in bids as happened in September necessitating a revision. – Bid lines will not be held hostage to staffing uncertainies as happened with the STL situation. – System bids can be held much sooner creating more lead time for pilots to plan for relocation. – Bid line building can be delayed to better reflect market conditions hopefully reducing the number of back up lines and changes to pilot schedules. – Option to build multiple line bids within system bid time frames in response to market demand giving pilots the chance to change schedules more often. ● Although pilots will not see the bid lines ahead of the system bid, past bid lines can be used as a guide. System bid definitions ● System bid: The process by which pilot base staffing is changed though vacancies and displacements. ● Vacancy: A staffing requirement that no pilot currently holds and is available to all pilots system wide in order of seniority during a system bid. ● Displacement: A reduction in the number of pilots at a base. This process is governed by the system bidding rules. System bid definitions (cont.) ● Flex bases: Bases that typically have large seasonal changes in pilot staffing. They are grouped by region for system bidding rules. – BOS, EWB, HYA, SJU, STT, STX ● Flex base regions: – Northeast: BOS, EWB, HYA – Caribbean: SJU, STT, STX System bid definitions (cont.) ● Out stations: Bases that are often EAS cities and/or have very low pilot staffing. They are grouped by region for system bidding rules. – RUT, SLK, LEB, RKD, PBG, PVC, MVY, MSS, OGS, ART, HGR, LNS, PSE, MAZ, EIS, RSW, EYW, CGI, UIN, MWA ● Out station regions: – Northeast: RUT, SLK, LEB, RKD, PBG, PVC, MVY – New York: MSS, OGS, ART – Mid Atlantic: HGR, LNS – Caribbean: PSE, MAZ, EIS – Florida: RSW, EYW – Midwest: CGI, UIN, MWA System bid rules ● All pilots system wide in order of seniority may bid vacancies at any base without limitation. ● Advanced entitlement awards are compulsory. – We will ask the Company to provide enough line bid information and/or other incentives to entice bidding. ● The rules for displacements differ between flex bases and out station bases. A displacing pilot will refer to the rules for the type base that he/she is being displaced from. ● The following slides explain the rules for flex bases and out station bases. System bid rules – Flex Bases ● All pilots (limited by the number of reductions and in seniority order) in a flex base that is being reduced may: – Bump within that flex base region – Fill a vacancy in the other flex base region – Fill a vacancy in any out station base Note: These rules will cover the vast majority of cases, but the rules on the next slide take continued displacing to its logical conclusion. These rules would come into play infrequently or in the event the Company needs to furlough pilots. System Bid rules – Flex Base (cont.) ● In the event the displaced pilot does not have the seniority to bump within his/her flex base region and there are no vacancies in the other flex base region, he/she may bump in the other flex base region. ● If he/she does not have the seniority to bump in either flex base region, he/she will choose any vacancy at an out station base. ● If there are no out station base vacancies, he/she will bump the most junior pilot in the system who presumably would be furloughed. System bid rules – Out Stations ● All pilots (limited by the number of reductions and in seniority order) in an out station base that is being reduced may: – Bump within that out station region – Bump in any flex base in either flex base region – Fill a vacancy in any out station base Note: If displacements at a flex base occur as a result, then the system rules on the previous two slides would apply. Examples ● There is a seasonal reduction in HYA of ten pilots. Ten HYA pilots in order of seniority may: – Bump more junior pilots in BOS or EWB – Fill vacancies in the Caribbean flex base region – Fill vacancies in any out station base ● EIS closes. Those pilots in seniority order may: – Bump more junior pilots in PSE and MAZ – Bump more junior pilots in either flex base region – Fill vacancies in any out station bases ● There is a seasonal reduction in SJU. A very junior pilot does not have the seniority to bump in the Caribbean flex base region nor hold any base in the northeast flex base region. He would have his choice of any out station vacancy. If none exists, he would displace the most junior pilot in the system. Implementation ● System bids would occur whenever the Company needs to change base staffing. A system bid proffered by the Company will list by base the approximate number of vacancies and displacements and a deadline for bidding. System bidding procedures for the pilots will need to be addressed. ● We will ask the Company to conduct a non- binding practice system bid giving everyone a chance to test drive the new rules and bidding procedures before the first actual system bid. Conclusion ● We feel this proposal has tangible benefits for both the pilot group and the Company. Your concerns have been heard. ● Thank you for the time you spent responding to the surveys and reviewing this proposal. Please continue to send us your comments and questions to Questions@9kpilots.org.
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