Q: Why only a 0.5% increase to our 401k match when the pilots get 13% match?
A: In a prior negotiations, the pilots traded their very generous defined benefit pension plan for a high-percentage match 401(k) plan. Flight Attendants have not had a defined benefit plan for years.
Q. It seems we could have asked for a higher 401k match. The pilots have 13% and WN (Southwest) gets 9.3%. What happened?
A: Negotiating 401(k) increases are some of the most expensive improvements in contract negotiations. The 401(k) touches every dollar and translates into significant cost increases. It has nothing to do with whether Flight Attendants deserve it; or whether Flight Attendants need it in order to secure a retirement. Be assured that the JNC pushed for a larger increase. However, it is a cost analysis that management calculates at the bargaining table, and management was unwilling to do more.
Q: It has been suggested that our company has been as profitable as it has ever been. Why did the JNC not bargain for a higher raise and higher 401k match when our company wants to have an integrated seniority list? We may not have this kind of leverage again for quite some it not ever.
A: The JNC did bargain hard for higher wage increases and also a higher 401(k) match. The TA package does not represent management’s “first offer” to the JNC. Many, many proposals were rejected and pushed back against. Even without a ISL, management can still merge the rest of the operation around the Flight Attendant groups despite separate inflight operations.
Q: I would like a 401(k) comparison chart.
A: Below is the current 401(k) provisions in the industry:
|WN||9.3% co match|
|DL||3% co contribution, additional 6% co match. Total possible 9%|
|L-UAL||5% co contribution, 3% co match. Total possible 8%|
|AS||7.5% co match if TA ratified|
|HAL||5% co contribution, 2% co match. 2.5% co match if >20 years of service.
Total possible 7% or 7.5%
|Jetblue||6% co match|
|L-US||3% co contribution, 2.5% co match. Total possible 5.5%|
|L-AA||L-AA (lost DB plan in BK) If hired by 4/12/12:
provisions from 2013 – end of 2018
< 40 Years old 5.5% co contribution
40-49 years old 6.75% co contribution
50+ years old 9.9% co contribution
AFTER 12.31.18, everyone on the L-US provisions
If hired after 4.12.12, L-US provisions apply
|Spirit||Co match up to 6%|
|Jetblue||Co match up to 5%|
|L-CAL||Defined Benefit plan in place, plus 401(k) match below:
< 5 years of service: 25% of FA contributions up to max 3% of pay
5-<10 years of service: 25% of FA contributions up to max 4% of pay
10-< 15 years of service: 50% of FA contributions up to max of 4% of pay
15+ years of service: 50% of FA contributions up to max of 6% of pay