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        You are here: Home / Archives for Committees / Grievance Committee

        Grievance Settlement No. 36-99-2-26-15 Quarterly Productivity Premium

        July 29, 2015 17:00

        Grievance filed in June 2015

        On June 18, 2015, AFA Alaska filed Grievance No. 36-99-2-26-15 Quarterly Productivity Premium (QPP). The grievance requested an investigation and hearing into whether the Company violated Section 21.R [Quarterly Productivity Premium] and all related section of the Collective Bargaining Agreement when it excluded Flight Attendants who did not receive a PBS bid award due to leave status from the QPP. Effective July 23, 2015, the Master Executive Council (MEC) is pleased to announce the grievance has been settled. A copy of the signed grievance settlement can be found by clicking here.

         

        0 TFP threshold (including carry-in and pre-planned absences) on no-bid status January through July 2015

         

        For the months of January through July 2015, Flight Attendants who did not receive a PBS bid award in each applicable month due to leave status (medical-related leaves, staffing adjustment leaves, military leaves, Company Business and Union Business leaves, etc.) will have their QPP threshold set at zero (0.0) Trips For Pay (TFP) plus any TFP from month-end carry-in and pre-planned absences. This is the original “AFA interpretation” of Section 21.R.

         

        Q1 and Q2 QPP payments

         

        Second quarter (Q2) QPP (April through June) will be paid normally on August 5th. Any Flight Attendants who will now achieve Q1 QPP (January through March) will be made whole by receiving a retroactive payment no later than September 30, 2015.

         

        75.0 TFP threshold (excluding carry-in and pre-planned absences) on no-bid status starting August 2015

         

        Starting in August 2015, AFA and management agreed that Flight Attendants who did not receive a PBS bid award due to leave status will have their QPP threshold set at 75 .0 TFP for each month on no-bid status. Month-end carry-in and pre-planned absences will be excluded in such months.

         

        Settlement language incorporated into the final print version of the contract

         

        The following settlement language will be incorporated into the final print version of the contract currently being indexed as the new Section 21.R.2 (and all other paragraphs afterwards will be advanced by one citation):

         

        “For any full bid month in which a Flight Attendant is on a ‘no bid’ status, the TFP equivalent of her/his bid award will be seventy-five (75.0) TFP. The TFP value of any month-end overlap carry-in or pre-planned absences will be excluded in a ‘no bid’ month for the purposes of determining the TFP equivalent of her/his bid award.”

         

        Settlement should alleviate concerns regarding perceived inequality in achieving QPP for those on no-bid status

         

        This grievance settlement should alleviate the concerns some Flight Attendants have expressed that QPP is perceived as easier to achieve for those on no-bid status than for those flying on the line. That was never the intent of the Negotiating Committee when this provision was negotiated. QPP was proposed in the last days of negotiations and the parties had very limited time in which to make adjustments to the provision. After some discussion management essentially took the position that QPP was a “take it or leave it” provision. Because QPP had the potential to put money into the pockets of many Flight Attendants, the Negotiating Committee accepted the QPP language as it was.

         

        * * *

         

        Please contact a Local Executive Council (LEC) officer if you believe you are eligible for the Q2 QPP and you do not receive the payment as scheduled on August 5, 2015; if you believe you are eligible for the Q1 QPP retro payment and do not receive one by September 30, 2015; or if you have any general questions or concerns about the QPP settlement.

         

         

        In Solidarity,

         

        Your MEC – Jeffrey Peterson, Brian Palmer, Yvette Gesch, Becky Strachan, Laura Masserant, Cathy Gwynn, Sandra Morrow, Stephen Couckuyt; MEC Grievance chairperson Jennifer Wise MacColl; and AFA Senior Staff Attorney Kimberley Chaput

        Your Contract Committee – MEC President Jeffrey Peterson, Kristy Stratton, Lisa Pinkston, Jake Jones, Christina Frees and AFA Senior Staff Negotiator Paula Mastrangelo

        36-99-2-26-15 Quarterly Productivity Premium Settlement Final Signed

        AFA Alaska

        Filed Under: Grievance Committee, Latest News Tagged With: 2015, QPP, settlement

        401(k) Contribution for the Quarterly Productivity Premium (QPP)

        June 19, 2015 12:00

        Management and AFA Making Progress on Disputes Related to the Quarterly Productivity Premium (QPP)

        Alaska Airlines management and AFA have been in discussions regarding several disputes associated with the Quarterly Productivity Premium (QPP) (see also the June 12th “Where is the Printed Contract?” and/or the “Quarterly Productivity Premium (QPP) Update – April 24, 2015” for more background). After months of back and forth, the parties are now making swift progress towards resolving those disputes.

        One aspect of the QPP dispute is in relation to 401(k) contributions

        One aspect of the QPP dispute is in relation to 401(k) contributions. At one point management held the position that QPP was not eligible earning for 401(k). We are pleased to report that going forward management has agreed all QPP payouts will be considered eligible earnings for 401(k).

        Today’s paycheck contains a make-whole contribution to 401(k) based on Q1 QPP

        AFA received “notice” only this morning that the June 19th (today’s) paycheck contains an additional make-whole contribution to 401(k) for those who received the QPP from the first quarter (Q1) (paid on May 5th). That means any Flight Attendant who achieved the Q1 QPP of $500 received an additional pre-tax contribution to 401(k) of $35 on top of your normal 401(k) contribution on today’s paycheck. (This is assuming you are contributing 7% of your earnings to 401(k), which you all should be doing with few exceptions!) You should have also received an additional $35 Company match on top of the normal Company match. In other words, your total 401(k) contribution will be proportionately higher on this check than usual. This is a really good thing—except for the lack of notice!

        Roth 401(k) tax implications

        For those of you who participate in the Roth 401(k) option, additional funds were withheld for taxes on your portion of the Roth 401(k) contribution at your personal tax rate. On an additional $35 contribution, that would translate to as much as $9 or so more than your usual withholdings based on the higher income tax brackets.

        Normal 401(k) contributions on QPP earnings will be paid in Q2 going forward

        Beginning with the second quarter QPP payout (Q2 = April, May, June) on August 5th, 401(k) contributions based on QPP earnings will be made normally.

        * * *

        AFA would have passed this information along to you sooner had we been provided sufficient notice. We will continue to update you on any developments with the QPP disputes as we resolve them.

        In Solidarity,

        Your MEC – Jeffrey Peterson, Brian Palmer, Yvette Gesch, Becky Strachan, Laura Masserant, Cathy Gwynn, Sandra Morrow, Stephen Couckuyt; and MEC Grievance chairperson Jennifer Wise MacColl

        MEC 5B Logo

        Filed Under: Grievance Committee, Latest News Tagged With: 2015, 401(k), QPP

        “Shoegate” Update – June 11, 2015

        June 11, 2015 18:00

        What is going on with “Shoegate”?

         

        In a recent bulletin, Inflight management announced a new manual revision is at the printers and will be distributed June 17th along with several Emergency Interim Bulletins (EIBs) that are forthcoming in the next few weeks. The Master Executive Council (MEC) anticipates that one of the EIBs will contain new language in regards to the Company uniform and appearance standards. AFA has been working with Inflight management to develop a new policy that is acceptable to both parties but unfortunately we were not able to fully reach agreement.

         

        Consequently AFA will almost certainly be filing one or more grievances based on the final language of the impending manual revision. The MEC knows everybody is very frustrated with the developments over the past several months and we will provide another update once the grievance(s) has been filed.

         

        In solidarity,

         

        Your MEC—Jeffrey Peterson, Brian Palmer, Yvette Gesch, Becky Strachan, Laura Masserant, Cathy Gwynn, Sandra Morrow and Stephen Couckuyt; MEC Grievance chairperson Jennifer Wise MacColl and MEC Uniform Committee chairperson Bob Moore

        MEC 5B Logo

        Filed Under: Grievance Committee, Latest News, Uniform Committee Tagged With: 2015, Shoegate

        Quarterly Productivity Premium (QPP) Update – April 24, 2015

        April 24, 2015 17:00

        The 2nd issue of Inflight management’s “Contract Implementation Newsletter” sent on April 3rd explained how they would calculate the Quarterly Productivity Premium (QPP).  As most of you know by now, the new contract created QPP.  QPP should be paid to any flight attendant whose Worked TFP (exclusive of Sick Leave and Vacation/Longevity PTO) exceeds the TFP equivalent of her/his combined monthly PBS bid awards over a calendar quarter. QPP from the first quarter is scheduled to be paid on May 5th.

         

        Up until publicly communicating their intent in the newsletter, management has privately contemplated several ways of calculating eligibility for QPP.  As of this writing AFA believes the dispute centers on how to handle flight attendants on leave who received an award of zero (0) TFP for any month in the quarter. We anticipate the number of flight attendants who are affected by this dispute is relatively small but of course it is very impactful for those flight attendants. AFA has been theorizing on potential grievances but at this point we will wait until May 5th to see how the QPP is actually paid.

         

        The Master Executive Council (MEC) fully anticipates that we will file a grievance at that time based on the actual circumstances of the QPP payment. Thank you for your patience and we will keep you informed of any developments.

         

        In solidarity,

         

        Your MEC—Jeffrey Peterson, Brian Palmer, Yvette Gesch, Becky Strachan, Laura Masserant, Cathy Gwynn, Sandra Morrow and Stephen Couckuyt; MEC Grievance chairperson Jennifer Wise MacColl; and AFA Senior Staff Attorney Kimberley Chaput

        AFA Alaska

        Filed Under: Grievance Committee, Latest News

        Quarterly Productivity Premium

        March 31, 2015 05:00

        Definition

        The Master Executive Council (MEC) has received several questions regarding the Quarterly Productivity Premium (Section 21.R). The first Quarterly Productivity Premium (QPP) of our new contract for the first quarter of 2015 (Q1 2015) is due to be paid out May 5th. A flight attendant will receive the QPP of $500 if her/his Worked TFP (Section 5 Definitions) during Q1 2015 exceeds the TFP equivalent of her/his combined monthly PBS bid award in that calendar quarter. Taxes on QPP will be withheld at the flight attendant’s personal tax rate just like regular wages; this is in contrast to Performance Based Pay (PBP), which has taxes withheld at the IRS “supplemental rate” (or “bonus rate”).

        Worked TFP is all paid TFP exclusive of sick leave and vacation/Longevity PTO. That is, Worked TFP includes but is not limited to regular TFP, deadhead, Minimum Pay Rules, pay protection, training, et cetera. As long as vacation/Longevity PTO and sick leave TFP is “made up” at some point in the quarter, usage of these benefits will not in and of themselves disqualify a flight attendant from achieving QPP.

        QPP was a “take it or leave it” management proposal

        As we explained at the roadshows, QPP was a management proposal. Management offered it at the end of the negotiations. Our Negotiating Committee told management at the time that the proposal had some problems. Management, however, told us we could take it as is or leave it. Since the Negotiating Committee understood that QPP would definitely put money in the pockets of many flight attendants, of course we took it.

        Example

        To illustrate the language, let’s assume a flight attendant was awarded 82 TFP in January, 79 TFP in February and 67 TFP in March. His combined monthly PBS award over the quarter would equal 228 TFP (82 + 79 + 67). If the flight attendant were to be paid at least 228.1 TFP (228 + 0.1) not counting sick leave and vacation/Longevity PTO (the definition of “Worked TFP”), he would receive the QPP. If he were to be paid 228 or fewer TFP not counting sick and vacation/Longevity PTO, he would not receive it.

        Simple trip trading does not directly affect QPP eligibility, only “downtrading”

        There is no requirement to exceed the PBS bid award each month, only the combined amount of each month over the entire quarter. Please note you do not actually have to work your awarded schedule but rather the equivalent amount of TFP. Therefore trading in no way affects QPP unless you “downtrade” as measured against your combined monthly bid awards across the quarter.

        Worked TFP excludes vacation/Longevity PTO (and sick leave)

        Unfortunately, Worked TFP excludes vacation/Longevity PTO. Vacation/Longevity PTO TFP is part of the PBS award. So a flight attendant with a week of vacation has a deficit in that quarter. Assume the flight attendant was awarded the same schedule as in the previous example. Her combined monthly PBS bid awards over the quarter still equals 228 TFP. But 28 of those TFP (7 days of vacation x 4 TFP vacation credit/day) does not count as Worked TFP. In order to qualify for the QPP, she would have to work the 200 TFP from her bid award (228-vacation of 28), PLUS at least 28.1 additional TFP. Lack of vacation/Longevity PTO credit was a major problem we pointed out to management during negotiations but AFA knew there were several.

        Dispute over QPP eligibility

        Now our concerns have been realized. AFA and management disagree about how QPP should be paid out. So far we anticipate the dispute to be focused around flight attendants who have not received a full line at some point in the quarter (such as those on various leaves). AFA believes that the language is unambiguous and that a flight attendant who works one-tenth (0.1) TFP more than the total TFP equivalent of her/his PBS monthly bid awards over the quarter should receive it.

        Quickly approaching deadline to pay QPP on time

        Despite multiple requests by AFA over the past several weeks, management still has not articulated in writing exactly what their problem is with QPP. Management has also not provided an explanation of how they expect to pay QPP. In order for QPP to be paid on time on May 5th the issue must be resolved by around April 10th, which is the deadline for programming the payroll system to pay out QPP.

        As of late last week, AFA’s understanding is that the payroll system is currently programmed to correctly pay out QPP exactly as the language indicates. Interestingly, the Information Technology (IT) department programmed the payroll system based on rules supplied by none other than the Alaska Airlines management negotiating team. Only after management had time to contemplate the implications of what they agreed to did they lodge objections.

        It’s really too bad that management didn’t heed AFA’s concerns and take more time to fully vet QPP prior to signing the deal. In fairness to management, both parties were under pressure to conclude the deal in Chicago. However, that being said, management was under no obligation to pursue this provision. In our opinion it seems a little late to dispute the details after the fact simply because they don’t like what they negotiated.

        AFA will file a grievance if QPP is paid any other way than according to the clear and unambiguous language

        If management pays the QPP any way other than according to the clear and unambiguous language, AFA will file a grievance. We are certainly amenable to further discussions with management to resolve the issue short of taking this to arbitration since both sides stand to gain from a mutually beneficial agreement. Management has promised to provide us with an update this coming week. As soon as AFA has more information, we will also keep you posted on any other developments.

        * * *

        In solidarity,

        Your MEC—Jeffrey Peterson, Brian Palmer, Yvette Gesch, Becky Strachan, Laura Masserant, Cathy Gwynn, Sandra Morrow and Stephen Couckuyt; MEC Grievance chairperson Jennifer Wise MacColl; and AFA Senior Staff Attorney Kimberley Chaput

        AFA Alaska Logo No Tag

        Filed Under: Grievance Committee, Latest News

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