January 24, 2013
Dear Flight Attendants,
As you may have heard by now, Alaska Airlines has announced another record-breaking year of profit in 2012: $339 million dollars! That translates to another record: a pre-tax operating profit margin of 11.9 cents on the dollar, which is well above the “10 cents on the dollar” figure you have heard discussed at Flight Path and in other Company meetings and communications. This is the third year in a row that the Company has exceeded that goal. Not only that, but the load factor grew to a record 86.6%!
The 2012 Performance Based Pay (PBP) payout also been announced: 8.1% of eligible earnings (which do not include all OPR payouts, 2011’s PBP, per diem and expense reimbursements). This is basically the equivalent of an extra month’s salary. All employees who were active on the payroll as of December 31, 2012 or on an approved leave of absence, are eligible for PBP. Employees who retired during 2012, are also eligible based on their pre-retirement earnings, if they were eligible for retirement under the Flight Attendant 401 (k) plan rules.
PBP replaced the Variable Pay Plan (VPP) with the Contract Extension in 2009 was paid retroactively to include 2008. (PBP has outperformed the VPP over the years in which Flight Attendants have participated in PBP.) Participation in PBP is contractually-mandated, but all Alaska Airlines employees are now on the same shared rewards plan. The PBP goals are set annually by the Alaska Air Group’s Board of Directors. The historical PBP payout since joining the program in 2008 is as follows: 2008 – 2.6%, 2009 – 8.3%, 2010 – 9.4%, 2011 – 6.7%, 2012 – 8.1%. Considering all the record statistics, we are pleased to see this year’s PBP of 8.1% to be closer to the 2010 payout of 9.4%!
The Master Executive Council (MEC) thanks our Flight Attendants for making significant contributions to Alaska Airlines’ success with our on-board sales and renowned service. In fairness, we also recognize management’s role in providing a vision that has led to the Company’s record-breaking achievements. At the end of the day, the long-term success of the Company requires a collaborative effort between all employees at all levels.
Flight Attendants continue to demonstrate their passion for and commitment to Alaska Airlines. In the spirit of shared efforts and rewards, AFA expects management to recognize and reward our Flight Attendants appropriately as we begin to discuss the “big ticket” items in the upcoming contract negotiations sessions: scope, compensation, insurance benefits and retirement. The next round of negotiations is scheduled for February 5-7, 2013, in Seattle, WA.
Congratulations for a job well done in 2012, everybody!
Your MEC – Jeffrey Peterson, Terry Taylor, Yvette Gesch, Melanie Buker, Laura Masserant, Cathy Gwynn and Sandra Morrow
“Four Bases, One Voice”