« Lockheed Martin machinists in Fort Worth go on strike | Main | American hearing on labor contracts under way, unions protest outside the courthouse »

April 23, 2012

What US Airways has promised American flight attendants

The term sheets that American Airlines unions agreed to with US Airways have started to leak out and Sky Talk got to take a look at what the Phoenix-based carrier promised the American flight attendants.

The proposal includes no furloughs and wage increases throughout the 5-year contract. The pension plan would still be frozen, just as it is under American's proposal to the Association of Professional Flight Attendants. However, there would be automatic 401(k) contributions with no match required for five years.

And then there is this... "Negotiations for a market based contract will take place immediately following a single-carrier certification.  If an agreement cannot be reached within 60 days of the certification the matter will be submitted to final binding arbitration."

American management currently has the exclusive right to file a restructuring plan with the bankruptcy court until late September and the judge could extend that exclusivity period until May. The judge could also terminate that period early if the unsecured creditors committee asks that a better proposal be considered by the court.

Here's the term sheet proposal

  • Early Out APFA's proposal accepted
  • No Furloughs
  • Wage Increases: 2.5% on effective date.  1.5% annually over next 5 years.
  • Retirement: Pension plan frozen. Replaced with a 401(k) contribution. Current employees will receive automatic 401(k) contributions for 5 years, with no match requirement.  Contribution levels as follows: 9.9% age 50 +, 6.75% age 40  50, 5.5% age 39  below. At the conclusion of the 5 year period, all FAs would receive a 3% contribution with up to a 5.5% match.
  • Active Health Benefits: Better than AAs proposed plan
  • Retiree Health Benefits: Implementation of Voluntary Employee Beneficiary Association (VEBA).
  • Bidding: Preferential Bidding System (PBS) with our input
  • Reserve: Incorporate earlier Reserve assignment notification, Add AM/PM Ready Reserve shifts. Allow Reserve pick-up on days off to be paid on top of guarantee. Current reserve rotation will be maintained.
  • Sequence Pay Protection:  APFA proposal
  • Schedule Maximum: Minimum of seventy (70) credit hours and a maximum of ninety (90) credit hours per bid period. Flex in the maximum line value by an annual amount of twenty (20) hours, but in no case more than five (5) hours during any given month.
  • Incentive Pay/Per Diem: Incentive pay eliminated.  Per diem rates increased to: Domestic: $2.00, International: $2.20
  • International Override: $3.00 per hour for each international leg. Override for deadhead, trip and duty rigs and trips not flown consistent with CBA
  • Combined Domestic & International Operation
  • Current Duty Rigs Preserved
  • Expedited Negotiations for New Contract:  Negotiations for a market based contract will take place immediately following a single-carrier certification.  If an agreement cannot be reached within 60 days of the certification the matter will be submitted to final binding arbitration.
  • Maintain all other provisions in our current Contract including: Vacation accrual and pay, Current PVDs, Sick hour use and current sick policy, Current Hotel language, ATC/ Code 59, Galley pay

-Andrea Ahles

TrackBack

TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00d8341c2cc953ef016304a32275970d

Listed below are links to weblogs that reference What US Airways has promised American flight attendants:

Comments

DFW F/A

I keep hearing how great this going to be. Has anyone actually spent any time talking to a US Airways f/a or any other employee at that company? Parker treats them the same way. The grass is not greener over there. Yes, I agree that Horton and his mob need to go, but this NOT a good alternative.

Heidi Horan

There is a facebook page, created on Friday afternoon, for both AA and US Airways flight attendants to exchange info, express opinions, ask questions, etc... In 48 hours, there were over 10,000 members. That's over 40% of the combined numbers in two days. The overwhelming take is positive, even with pros and cons.

Eagle Employee

What about the 28,000 American Eagle Flight Attendents and Employees the could be out on the street because there is not a way to fit Eagle into a AMR/US Airways business plan. Just because they are not members of your union doesn't mean they irrelevant to this merger.
Of Course all Eagle TWU members totally expect that Jimmy Little will shove them under the bus to get all of his AA members a great deal.
Don't start waving around a spin-off because that plan counted on a stock split and since AMR stock is worthless that is not going to happen.
So Jimmy, Just what are you going to do for Eagle???

SS

What is the facebook page name?

Truth!

Did they also promise to staple the seniority list at the bottom like APFA did to TWA? I'm thinking some of the lower seniority members may need to stand up.

Oh wait, they couldn't even be bothered to vote in the last election. Never mind.

UA F/A

Because of the horrendously unfair treatment of TWA employees in 2001, Senator Clarie McCaskill from MO sponsored legislation and with the help and support of AFA members from around the world and the AFA's Legislative Affairs Department they lobbied Congress and it was eventually passed. The bill ensures the "stapling" of the seniority list onto the bottom of one groups to the others from ever happening again. Thus resulting in protecting seniority integration.
Google "McCaskill-Bond". It will help put your mind at ease. Especially considering USAir's F/A group is strongly represented by AFA.

For The Love of TWA

All AA employees need to be stapled to the bottom of US Airways seniority list. AA is a bankrupt company that has little hope of surviving on its own in the form that it's currently in. They should just be lucky to have a job. I think that is what AA did to the TWA people when they bought them, however, AA put TWA into bankruptcy, AA has been in bankruptcy for six months now.

John S

Wait a minute. I don't buy for a minute that there is massive support among US Airways flight attendants for a merger with AA. They just voted to reject a contract offer from their airline, and now their CEO is out running around behind their back having secret meetings and making big number offers to the AA flight attendants.

If that isn't betrayal I don't know what is.

LAXAA

Doug Parker is making all these promises to the unions. Has anyone asked him how he will write the checks? His costs will go up dramatically, yet the combined revenue wont make up the difference. He has gained popularity by promising to FIRE every member of existing AA management.

Post a comment

Comments are moderated, and will not appear on this weblog until the author has approved them.

If you have a TypeKey or TypePad account, please Sign In.