Q: There seems to be concern that the pay raise offered in the TA is not enough given the contributions made by the FA group during this long streak of Alaska Airlines profitability. There is also concern that the extension will leave too much money on the table for a period of time well beyond 2021. With the introduction of retro pay in this TA, and if it were to be ratified, what is the likelihood that retro pay will be a precedent that is set for future negotiations to hold management’s feet to the fire, so to speak?
A: The TA rates true Alaska back up with the Southwest rates. In 2014, the top of scale CBA rates put us within 9.3% of the top of scale Southwest rates. The 2018 JCBA TA rates at top of scale bring us back to within 9.2% of the Southwest rates at top of scale. Alaska also ends up at #3 in the industry in December 2020 at top of scale and several other step rates of pay.
AFA will always strive to achieve retro pay, but Alaska Airlines management is extremely resistant to retro pay. The JNC does not believe the retro pay in the Merger Agreement makes management more inclined to offer retro pay in the future.