Benefits & Compensation Committee – Families & Finances Update

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Families and Finances

 

Our greatest power as a union is our ability to stand together as one. It is our superpower. The more prepared we are for a strike, the more likely we will not have to endure one. Our families play a vital role in this preparation. History has shown pressure from spouses (even if well intentioned) has been a major cause of crossing a picket line. On the other hand, if our families understand what we are fighting for and why, they can be the rock we lean upon during this difficult time. During a strike, expect to get a call from a manager offering incentives such as triple pay and permanent front-page seniority to cross the picket line. Supportive families can make this decision easy and not tempt us to ruin the rest of our career while stabbing our brothers and sisters in the back.

How do we do it?

  • Let them read/see communications from the Union (such as this guide)
  • Explain the RLA to include what we can/cannot do and how we achieve gains
  • Show them what our peers get and what we are fighting for
  • Prepare them for company propaganda to discredit our union and negotiating committee such as direct negotiating, scare tactics, and attempts to divide us
  • Ask them for help, both psychologically and
  • Galvanize your family to come up with ideas around your household tighten your belt financially

Teamsters Benefits Health Insurance

  • Because we are on Teamcare, your health insurance, dental, will remain intact for you and your eligibles during a strike.
  • Teamcare premiums will be waived for the duration of the You will still be responsible for co-pays / deductibles.
  • For any pilot selfish enough to cross the picket line, Teamcare will not accept premium payment from the company and thus you and your eligibles will lose all insurance coverage.

IBT Strike Fund

  • $300 + million dollar fund used to pay weekly strike benefits to members in good standing during a legally called strike.
  • Members in good standing will get weekly strike benefit
  • Formula: Hourly Rate on date of strike x 70 x 56% x 5.
  • 12 year CA = 232 x 70 x .0156 x 5 = $1,266.72 per week
  • 2 year FO = 07 x 70 x .0156 x 5 = $562.76 per week
  • This is not meant to replace your total income or absolve you of your duty to save and prepare, but to hopefully cover some critical expenses.

Expenses

Your family should strive to have 6 months’ worth of expenses saved up for a possible strike. History has shown that airline strikes are very rare. They are rare because they are incredibly expensive. For negotiations that carry on this far, most deals finalize during the 30-day cooling off period. The most likely reason Allegiant will take it that far is if they believe the pilots are not ready and hope they can break the union by getting pilots to cross the picket line. If we show them there is no chance of that, more than likely, they will not take it that far just to lose money. For this reason, the more prepared we are for a strike, the less likely we will have to endure one.

Create a budget

Although a great idea to do anytime, it is imperative to do in preparation for a strike. We all have money that leaks out of our accounts each month. Go through the last year’s worth of credit card, bank account, Venmo, and PayPal statements and see where your money is going. An incredible amount of money syphons out each month on things such as subscriptions, eating out, convenience stores, clothes shopping, and entertainment.

Don’t forget one-time large bills that happen throughout the year such as insurance or property taxes. Now work with your families to find areas you can reduce spending both right now and in the event of a strike. Find out the minimum amount of money you can live on each month. If you don’t currently have 6-months of those expenses saved up today, reduce spending now to build that stockpile. If you do have 6-months saved up, prepare to reduce spending in the event of a strike.

  • Look though a year’s worth of statements and find where you spend your money
  • Remember one-time payments such as insurance or property taxes
  • Work with your families to come up with ways to reduce spending
  • Be aware of impulse spending and perhaps combat that by making a shopping list and only purchasing those things
  • Delay, if possible, significant purchases such as new cars or vacations
  • Try to save up 6 months’ worth of expenses

Sources of Money / Reduce Expenses

We already spoke above about Teamsters benefits such as strike pay and free Teamcare insurance that will help during a strike. For those who own a home and have equity in that home, consider a home equity line of credit (HELOC). Most banks and credit unions offer this up to 80% of your home’s equity for a small closing cost ($250-$600). This is essentially a line of credit to use if needed. If you don’t withdraw any money, you owe nothing. If you do withdraw money, usually you are required to pay only interest on that money for the first 10 years. Apply for this now, while you are actively working as most banks will not approve the credit if you wait to apply after you have gone on strike.

Consider reducing your 401k contributions now to save money. Depending on timing, it may be possible to recover company matching contributions later. If we are on strike, contact lenders for various loans as they may have short term deferral policies that you can take advantage of. If you have a 401k loan, contact Fidelity to arrange continued payments while we are on strike. If you don’t, your loan may be considered an early withdrawal and subject to taxes and penalties. Consider opening and transferring credit card balances to a credit card with union strike benefits. Finally, consider contacting

family to request short term financial backing. Don’t let pride force you into a bad decision that ruins the rest of your career.

  • Teamsters Strike Fund Weekly Payments
  • Teamcare Health Insurance free premiums
  • Consider a HELOC and apply now, while you are still
  • Reduce 401k contributions now to build up your Depending on timing, you can still get the company contributions later (email benefits@apa2118.org for details).
  • You will not be eligible for unemployment benefits
  • Contact lenders to take advantage of any short-term delay policies
  • Contact Fidelity if you have 401k loan to arrange payments
  • Lean on your family support network for short term assistance

The more prepared we are, the stronger we are, and the less likely we will need it. The time to prepare is now.