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