ROADSHOW Q&A – SAN

^03.16.2018

Why does the Company want to speed up the process and why is it a benefit?

The Company can only achieve the synergies of the merger by fully integrating all the employee groups. The sooner they can achieve this, the sooner they will experience the benefits of the merger. There is no certainty that the Full Integration of Flight Attendants will be moved up earlier than the target date of March 2019. The Company is already starting to move the fleet and move the Boeing E-W and Airbus W-S. However, they are not able to open up new Flight Attendant domiciles where one already exists (so no L-VX base in SEA, ANC, etc.) so that somewhat limits how crew planning can route aircraft and flying because the two Flight Attendant groups are separated on the metal.

What will happen to the bases and opening them up?

There will not be a master bid if the TA is ratified. Effective the first month after Full Implementation, vacancies that open up may be filled in all bases by any Flight Attendant in seniority order. Currently, the Company is targeting March 2019 for Full Implementation so that would mean that base swaps could occur, and base vacancies would be filled by the combined Flight Attendant group starting in April.

When will the Retro check show up on my paycheck? Or will it be a separate check?

The Company is trying to have it in the L-AS April 20^th check; however, AFA is cautioning that it may be May 20^th just to be safe.

I do not understand the PPP blocks and the payout.

The total annual premium amount is the same: $2500. However, now vacation (both paid and unpaid/blocked) included in the PBS bid award will count toward TFP credit for achieving the PPP. Today the premium is paid out two months after it is earned. Going forward, the PPP will be paid out on the 20^th check the month after it is earned.

The PPP blocks are as follows:

Individual months: $350 each month

June, July, August, December

Block of 8 months: $1,100 for all 8 months

January, February, March, April, May, September October, November

In order to achieve the PPP, a Flight Attendant must be credited with an additional 5 TFP (you do not have to make up your vacation under the PPP) each month for individual month blocks, and the equivalent of 5 TFP each month for the 8-month block (This combined 40 TFP may be achieved at any time during the 8 months).

Why is there the Red Circle provision in this TA for L-VX?

L-VX as a company allowed any employee to be hired into a different work group and retain “company seniority” for pay purposes. L-AS does not have that practice. Therefore, the pay disparity issue needed to be addressed.

Holiday pay “show no go”?

If a Flight Attendant goes to the airport and the flight does not go, s/he will receive cancellation TFP pay for the trip’s straight credit and 1 TFP “show no go” paid at double time.

Example: 6.0 TFP turn = 6.0 TFP @ 1.0x pay protection + 1.0 TFP @ 2.0x holiday premium

Implementation and what happens to the company if this we vote this down?

Management is emphatic that if the TA is voted down, they will wait until October of this year to enter Section 6 negotiations. No one has a crystal ball, and there is no telling what the Company will actually do. If negotiations go into Section 6 for a new CBA, then the L-VX Flight Attendants will still be under their L-VX pay and work rules. We would go into negotiations with two Flight Attendant groups under different pay and work rules.

Is it true that that if this contract passes that there would be a lawsuit because the L-VX Flight Attendants don’t pay membership dues?

Under AFA’s Constitution and Bylaws, AFA members do not pay dues and have full membership rights (e.g. such as voting on a TA) prior to having a first contract. Any lawsuit would have no legal standing.