Legal disclaimer
Because of the complex interaction between the administration of the various state unemployment insurance (UI) programs; the components of the Coronavirus Aid, Relief and Economic Security (CARES) Act; and the Company’s response to claims, AFA Alaska leadership can neither provide definitive advice for filing UI claims nor assurance of receiving a benefit. The information provided in this communication does not, and is not intended to, constitute legal advice. We will, however, provide as much information as we can and be as transparent as possible about the options.
Thank you for your patience
Many of you are looking to AFA for insight into staffing projections and for guidance whether to apply for one of the COVID-19 leaves of absence (or potentially to extend if you are already on one), the COVID-19 Staffing Adjustment leave of absence (LOA) or the Low Bid Option…or to hold out for the potential of “something else.” The Master Executive Council (MEC) sincerely thank you for your patience while we’ve taken the better part of this past week to understand all the pieces of the puzzle and to determine management’s intent. We know the deadline to apply for the May COVID-19 Staffing Adjustment LOA or the Low Bid Option is very soon: Monday, April 6, 2020 at 9 AM PT.
No paid voluntary staffing adjustment or “Early Out”
As of this writing, there is no “something else” pending in the near future: neither a paid voluntary staffing adjustment leave nor an early retirement (“Early Out”) package. AFA initiated preliminary discussions with management about an Early Out, but management is not interested in actively exploring an AFA-driven retirement package at this time. The MEC is aware that management is developing a Company-wide incentive for early retirement, but management has not provided any additional details.
May staffing
We’re going to level with you that the May schedule is even more significantly reduced than anticipated and the staffing outlook is bleak. As of this writing, AFA’s “back of the beverage napkin” calculations suggest that out of 6000 Flight Attendants, there will be approximately 1700 FAs on a staffing adjustment leave, 360 FAs on various other leaves, 1250 regular Lineholders, 200 Low Bid Option (LBO) Lineholders and 2490 Reserves. These projections are based on a 75 TFP line average in every domicile. The confidence level in our calculations is roughly plus or minus ten percent (+/-10%), and the numbers could shift if more FAs go on leave or apply for LBO.
May scheduling and pay
Individual Lineholders will receive a line award of no less than 75 TFP plus or minus 10 TFP. Individual LBO Lineholders will receive a line award of no less than 37.5 plus or minus 5 TFP. [Click here for the §10.Q Low Bid Option LOA (12/19/2017) > ] The reserve pool will potentially encompass the bottom two-thirds of the seniority list of bidding FAs. Reserves are guaranteed 90 TFP for 18 days of reserve, and management is not offering LBO Reserve at this time. (See Inflight Mobile Device > Goodreader app > Supplemental Folder > Reserve Survival Guide for additional reserve resources.)
No involuntary furloughs?
Airlines (and airport companies that employ workers) may access federal aid for the sole purpose of continuing pay and benefits for employees. A condition of airlines accepting payroll grant money under the CARES Act isthat the accepting airline may not involuntarily furlough or reduce pay rates and benefits for US-based workers through September 30, 2020. Alaska Airlines management has gone on record that the Company is applying for the aid money. [See “Financial relief: you have questions and we have (some) answers” (AAG login required) for more info.] However, there are several burdensome stipulations being made by the Department of Treasury as conditions of airlines accepting the money. Although there are no indications at this time that Alaska Airlines management will decline the aid, the outcome is yet to be determined.
Unemployment insurance benefits under the CARES Act
Unemployment benefits are determined by the state in which you are domiciled
There are several increased unemployment insurance (UI) benefits under the CARES Act (or COVID-19 Relief Act). Read more >
UI benefit eligibility, payments and duration of benefits vary by state. The number or proportion of reduced hours to qualify for UI benefits such as under the Low Bid Option also varies by state. UI benefits are determined by the state in which you are domiciled and not the state in which you reside if that is a different state. Click here for eligibility requirements in your state >
UI benefits are very likely for voluntary or involuntary leaves or reduction in hours due to COVID-19
If you take a voluntary or involuntary leave or a reduction in hours because of COVID-19 (that reason is key), then you are very likely eligible for UI benefits under the CARES Act. However, you are probably ineligible for the COVID-19 UI benefits if you are receiving paid sick leave or other forms of paid leave (such as when coordinating sick leave or vacation/Longevity Paid Time Off). Most states have loosened or eliminated job search requirements to be eligible for unemployment related to COVID-19.
Unemployment Insurance typically does not cover employees who took a leave or left their jobs voluntarily unless it was in response to the COVID-19 downturn. That is why it is important to have a verification letter stating the leave/furlough/reduction in hours is due to COVID-19. It is also crucial when applying for UI benefits that you state as often as you can that you are on a leave/furlough/reduction in hours “due to COVID-19.”
Management to “remain neutral” on unemployment claims
Management has committed to “remain neutral” on unemployment claims, which means the Company will not contest claims and therefore the state will exclusively determine eligibility for UI benefits. The MEC is aware of a popular misconception that the state will automatically deny UI benefits if the employer reports the leave as voluntary, but that is not true.
Reason provided by the Company for the LOA or reduction in hours
Management has informed AFA that the Company will provide the state with the following reason for the respective leave of absence (LOA) or reduction in hours:
- “Due to a school or childcare closure because of COVID-19” [School/Childcare Closures or Educational Disruption LOA (EDLOA)]
- “To self-isolate due to COVID-19” [Self-Isolation or Voluntary Quarantine LOA (VQLOA)]
- “Voluntary leave of absence in response to a reduction in capacity related to COVID-19” [COVID-19 Staffing Adjustment LOA]
- “Due to a reduction in capacity related to COVID-19, the employer has reduced hours for this employee” [Low Bid Option]
Written verification of your leave status
If you do or did not receive a written verification of your leave status or your reduced schedule when approved for the leave or reduced schedule, you may request such verification through the HR/People Resource Line by calling 1-844-899-3617 or emailing HRBP@alaskaair.com.
Weekly UI payments
The weekly UI payments that eligible workers can receive was increased by $600 through July 31, 2020. The $600 UI payment from the federal government is over and above the UI payment from the state. Combining the federal and state UI payment, it is possible to receive nearly the same income or maybe even more than if you are working depending on your state (Washington is very favorable) and your income during the qualifying period. As stated earlier, you are probably ineligible for the COVID-19 UI benefits if you are receiving paid sick leave or other forms of paid leave (such as when coordinating sick leave or vacation/Longevity Paid Time Off). UI benefit payments are taxable income. Taxes are usually withheld from UI benefit payments at 10% by default unless the employee opts out of withholding.
- Alaska UI benefit estimator >
- Washington UI benefit estimator >
- Oregon UI benefit estimator >
- California UA benefit estimator >
Which option is best?
Every situation is unique, so the answer will be different for everyone. [Visit the Company’s Alaska AFA COVID-19 Leaves page to learn more information about your leave options, including a side-by-side comparison document: COVID-19 Employee Leave Programs Comparison (AAG login required).]
School/Childcare Closure or Educational Disruption LOA (EDLOA)
- Duration: Length of the school/childcare closure
- Documentation: Leave application, proof of closure may be requested
- Health insurance coverage: Continued and maintained by paying the active employee rates
- UI benefits: Almost definite yes if unpaid. Very likely ineligible if paid (i.e. coordinating sick leave or vacation/Longevity PTO)
- Travel privileges: Suspended for FA but remains in effect for dependents
Self-Isolation or Voluntary Quarantine LOA (VQLOA)
- Duration: Self-selected for up to 30 days but leaves are being extended upon request. (If you desire a longer leave, indicate “30 days but requesting to extend to xx days”)
- Documentation: Leave application. No additional documentation required if selecting “I wish to remove myself from the workplace due to exposure to COVID-19 but I have not been diagnosed with COVID-19 or am symptomatic.”
- Health insurance coverage: Continued and maintained by paying the active employee rates
- UI benefits: Almost definite yes if unpaid. Very likely no if paid (i.e. coordinating sick leave or vacation/Longevity PTO)
- Travel privileges: Suspended for FA but remains in effect for dependents
COVID-19 Staffing Adjustment LOA
- Duration: Bid month
- Documentation: Leave application
- Health insurance coverage: Continued and maintained (i.e. paid) by the Company
- UI benefits: Confidence is high but still untested
- Travel privileges: Remain in effect
- 240/480/960: “Double 480 credit” of 2.667 TFP per day or 82.7 TFP for May
Unpaid VQLOA vs. Staffing Adjustment LOA
On the balance, an unpaid VQLOA is the most flexible leave option and the most likely to be eligible for a UI benefit payment. Flight Attendants can also apply for the VQLOA now—no need to wait until May. However, the Flight Attendant must pay the active employee rate for continuation of health insurance and her/his pass privileges are suspended while on the leave.
If a Flight Attendant is willing to accept a little risk by potentially going without an income (no UI benefit) for the month of May, then s/he can apply for a Staffing Adjustment LOA. If s/he is successful in obtaining the UI benefit while on this leave, then the FA will also have Company-paid health insurance coverage and retain her/his travel privileges.
Another option to consider is to go on a VQLOA now through the end of May. If other Flight Attendants have been successful in obtaining a UI benefit payment while on a Staffing Adjustment LOA in May, then one could apply for a Staffing Adjustment LOA in June.
These are very difficult and stressful times for all of us. This has been a fluid situation, but please know that we are committed to achieving the best solutions possible for our Flight Attendants. We’ve tried to give you as much current and factual information as possible but there is no ‘right answer’ for everyone. Each decision must be based on your best assessment of the available options.
If you are confused by the many opinions and inaccurate information being offered, you are not alone. Your AFA representatives are committed to ensuring that you have the information you need and will be happy to answer questions. If you have a question, please reach out to your LEC Officers, either by phone or email.
In Solidarity,
Your MEC – Jeffrey Peterson, Brian Palmer, Linda Christou, Matt Cook, Terry Taylor, Mario de’Medici, Melissa Osborne, Tim Green and Brice McGee