Q:     Since medical premiums will be frozen, does this include our actual medical plan/benefits? Or can they give us inferior plans to keep the current cost?

A:     Section 23.A [Insurance Benefits: FA Insurance Plan(s)] states:  “The Flight Attendants’ insurance plan will be separated from the Company-wide plan and will provide benefits comparable to those offered under the Alaska Airlines pilot’s pilots’ insurance program.“

Although not obvious from the language, the long standing interpretation and application of “comparable benefits” is that management provides Flight Attendants with the same insurance benefits as the pilots. The provisions of the pilots’ insurance benefits are cemented contractually in their CBA and cannot be changed by management. Management provides the same exact same benefit to the FAs because it is too administratively burdensome to develop a contractually compliant “comparable” program that is not exactly the same.

Under the JCBA, the Flight Attendant premiums will be frozen at the 2019 exact dollar rates.  The provisions of the medical insurance plans will remain those outlined in the pilots’ CBA.

Q:     What is the calculation for converting TFP to block-hours?  When does VX convert to TFP?

A:     In order to convert TFP pay rates to Block hour pay rates, you multiply the TFP base rate by 1.13.  [TFP pay rate in $/TFP  x 1.13 = Block-hour pay rate in $/block-hour]

If the TA is ratified, the pmVX FAs will be paid at the new JCBA 2018-2021 rates found in Section 21 Compensation (converted to block hours). The pay rates will be effective at DOR (Date of Ratification) and paid retroactively back to January 1, 2018. These new rates will also be effective for all rate-based incentives and premium pay.

Example:  Year 6 TFP pay rate at DOR is $35.40 per TFP.  A pmVX FA will be paid $35.40/TFP x 1.13 = 40.00/block-hour. This will be effective DOR and paid retroactively to 1/1/2018.

To calculate retroactive pay, you will receive the difference between your current block-hour pay rate and your new block-hour equivalent Alaska JCBA rate (TFP converted to block-hours).  

Example: Using our example above, a Year 6 pmVX FA is currently being paid  $33.86 per block hour. Their new rate would be $40.00 per block hour.  For all block hours paid from 1/1/2018 to DOR, you would receive the difference of $6.14 for each block-hour as a lump sum retro payment.

$40.00 – $33.86 = $6.14 per block hour

Again these new rates are effective for all rate-based incentives and premium pays. At full implementation, which is currently estimated for March 2019, pmVX Flight Attendants will begin to be paid in TFP (instead of the block-hour equivalent).

Q:     Am I reading it correctly that under the new plan unpaid vacation and PTO would be included for the purpose of earning bonuses or am I missing something?

A:     Yes! Paid vacation (included Longevity PTO) and unpaid vacation will count towards achieving the PPP at 4.0 TFP per day.

Q:     As the quarterly productivity premium is now paid quarterly, how will the new program be paid?

A:     It will be paid on the 20th paycheck following the appropriate PPP incentive period. This is an improvement from the QPP, which is paid on the 5th paycheck two months following the quarter.

QPP:

• Q1 (Jan, Feb, Mar) – $500 paid 05/05,
• Q2 (Apr, May, Jun) – $500 paid 08/05,
• Q3 (Jul, Aug, Sep)  – $1000 paid 11/05, and
• Q4 (Oct, Nov, Dec) – $500 paid 02/05

PPP:

• June – $350 paid 07/20,
• July – $350 paid 08/20,
• Aug – $350 paid 09/20,
• “Block of 8” (Jan, Feb, Mar, Apr, May, Sep, Oct, Nov) – $1100 paid 12/20, and
• December – $350 paid 01/20.

Q:     Will you do a comparison of the QPP and the PPP and the significant differences?

A:     Sure!

QPP: Based on a calendar quarter application (Q1: Jan, Feb, Mar; Q2: Apr, May, Jun; Q3: Jul, Aug, Sep; Q4: Oct, Nov, Dec) and requires your Worked TFP to be at least 0.1 TFP more than your combined monthly PBS bid award equivalent across that calendar quarter. Sick leave and vacation are excluded from achieving the QPP. Payout is $500 for Q1, Q3 and Q4; $1000 for Q3.

PPP: Based on the defined period (Combined block of 8 months: Jan, Feb, Mar, Apr, May, Sep, Oct, Nov; 4 individual months: Jun, Jul, Aug, Dec) and requires your Worked TFP to be at least 40.0 TFP more than your combined monthly PBS bid award equivalent across that block of 8 months (average 5.0 TFP per month) or at least 5.0 TFP more than your monthly bid award equivalent in June, July, August and December. Vacation is now included in achieving the PPP (and sick leave is still excluded). Payout is $1100 for the block of 8 months is $350 for each month of June, July, August and December.

Q:     Why is the PPP based on the base line average instead of the individual line average?

A:     The PPP is based on an individual Flight Attendant’s bid award–the same criteria as the current QPP program. One can make arguments either way for the benefits of an individual line average versus the domicile line average. AFA and management did not change that aspect of the incentive criteria.

Q:      I am seeking understanding why the QPP was changed from quarterly to create the PPP with 4 single high impact months and an 8-month block. Vacation counting towards PPP is better than how it is currently with QPP. However, one now has to fly 5.0 TFP more (60 TFP total for the year) for the PPP instead of 0.1 TFP more in each quarter for the QPP. Why have we lost the flexibility of being able to do our extra flying over a quarter and have now in essence made it harder in single months?

A:     AFA sought to change the QPP so that vacation counted towards achieving the payout. Management agreed but sought to increase the threshold from 0.1 TFP to 5.0 TFP for each month, inclusive of vacation.

Considering even the most junior FA has at least 14 days of vacation at 4.0 TFP per day, that equals 56.0 TFP of vacation credit for the year that now counts towards achieving the PPP. That leaves a difference of only 4.0 TFP to make up for the entire year–and that is before you count in any other pick-up, Sit Pay, ADPG, ground delay, block delay, Stranded Pay, etc. This doesn’t seem like an unreasonable trade-off when one considers that all FAs with 5 years or more of Occupational Seniority have at least 21 days of vacation that equals at least 84.0 TFP more of vacation credit that will now count towards achieving the PPP.

It may be more challenging for some to achieve PPP in the single months, but it will be much easier for others. It really depends on where your vacation days are located within the year.

Q:     Addendum to section 15 #5 crossed out personal leaves, parental leaves, maternity but left medical leaves. To me that reads: if a FA accepts a Company-offered personal leave they will not accrue seniority. Is my understanding of this correct?

A:     The short answer: No. A FA will continue to accrue seniority on any approved leave of absence regardless of type. The language you are referencing is a misprint in that particular document (2018-2021 JCBA TA).

The long answer: Excellent catch! The language in Addendum to Section 15 Leaves of Absence, #5 was corrected to clarify that a Flight Attendant will continue to accrue seniority for the duration of any leave of absence.

However, there is an error in the comprehensive document that the JNC will address and correct as soon as possible. Although the JNC has made every effort to ensure the comprehensive document matches the signed TAs, it is not surprising that we missed something. Here is the incorrect language in the 2018-2021 JCBA TA:

5.  Do I accrue seniority while on a leave of absence?

Yes, you continue to accrue seniority during an approved medical leave. [Remainder in strikeout.]

The signed TAs match the language in the Addendum to Section 15, #5 found in the Changes to the 2014-2019 CBA LOA:

5.    Do I accrue seniority while on a leave of absence?

Yes, you continue to accrue seniority during an approved leave of absence. [Remainder in strikeout.]

A small but significant difference!

In summary, a Flight Attendant will continue to accrue seniority while on any approved LOA. AFA will coordinate a correction to the 2018-2021 JCBA TA document as soon as possible this coming week. We sincerely apologize for the error and for the confusion!

Q:     At Virgin America we have a 100% vested retirement account regardless of age and retirement status. I’m unclear about how the 401k section effects those of us who are not close to retirement age. Will our retirement accounts be moved to another financial institution? Will we keep our current fidelity account as is and start a new one with Alaska’s 401k plan provider?

A:     All L-VX FAs are 100% vested in the current VX 401(k) plan. Alaska continues to contribute company match of 125% of up to 6% of a Flight Attendant’s contribution.  If theTA is ratified, all L-VX Flight Attendants will transition to the Alaska 401(k) plan managed by Vanguard at DOR (Date of Ratification) plus three months. The transition process will actually close out the current Fidelity accounts and transfer the balance to the Vanguard 401(k) plan.  Because the Fidelity 401(k) had immediate vesting per VX Company policy, all L-VX Flight Attendants will be fully vested in the transferred amount.

At DOR pull (3) months all L-VX Flight Attendants will then begin contributing to the Vanguard 401(K) plan per Section 29.B-C of the 2018-2021 JCBA:

SECTION 29 PROFIT SHARING AND RETIREMENT

B.     401(K) COMPANY MATCH The Company will match any Flight Attendant’s pre-tax contribution to the 401(k) plan maintained by the Company, at the rate of one dollar ($1.00) for each one dollar ($1.00) contributed by the Flight Attendant, up to a maximum company contribution of seven and one-half percent (7.5%).

C.      VESTING SCHEDULE FOR 401(K) COMPANY MATCH A Member will have a vested and non-forfeitable interest in that vested percentage portion of the balance credited to the Member’s Matching Contributions Account at any time determined by reference to her/his completed years of Vesting Service in accordance with the following schedule:

Completed Years of Vesting Service            Vested Percentage

Less than 1 year                                               0%

1 year                                                                 20%

2 years                                                               40%

3 years                                                               60%

4 years                                                               80%

5 or more years                                          100%

D.     ACCELERATED VESTING

A Member will be fully vested and have a non-forfeitable interest in the balance credited to her/his Matching Contributions Account if:

1. The employee becomes medically disabled; or

2. The employee retires at or after age sixty-five (65); or

3. The employee retires at or after age sixty (60) with a minimum twelve (12) years of service with the Company Seniority, or at or after age sixty-one and one-half (61½) and a minimum of ten (10) years of service with the Company Seniority.

L-VX Flight Attendants will vest under the above schedule based on their original VX Company date of hire for all “new” company matching funds.  Note: You are always 100% vested in your employee contributions.