Probationary flight attendants are unable to vote for a contract and are not yet dues paying members. Generally this will exclude them from a signing bonus. However, we didn’t want to leave anyone out and believed that $500, paid at the point of successful completion of probation, was a great way to include our newest FA family.

Those that have topped out on the pay scale were unable to be moved beyond the 2nd place in the industry position that they had already achieved with TA1 rates. Management refused to move the top beyond the 10.8% they gave to the pilots top of scale. As a result, we felt it was important to include more in their signing bonus.

The signing bonus has a value of at least double or more for many FAs than that of the retro pay of TA1. The retro pay of TA1 was limited to only worked TFP.

This means that anyone on a leave of absence including workers comp, those who had vacation and those who earned less on the pay scale received significantly less or nothing in retro pay. A signing bonus is given to ALL FA’s in good standing – weather on a leave of absence, medical leave, maternity leave, etc. –  making it a more equitable and fair provision for everyone.

Retro Pay and a Signing Bonus are withheld at the same tax rate by our employer.

Current Book Cost = 145 million (wages and fringe)

TA1 (wages and fringe)

– Annual average 5 year cost*       $17.3 m over current book

– 2.5 months retro               approx  $1.6 m (one time realization)

Co Savings of TA1 failure    approx. $18m

TA2 (wages and fringe)

– Annual average 5 year cost*       $12.7m in addition to cost of TA1

– $2,000 signing bonus                      $ 8m (one time realization)

*total cost of 5 year deal divided by 5

The above amounts are confirmed by Dan Akins our airline economist

• TA2 was a 73% increased cost over TA1 costs (not counting signing bonus – another $8m)
• TA2 represents a $30 million (annual average 5 year cost) over current book costs.
• The rates in TA2 are higher than the 2015 rates for the AA/US Airways TA and Delta increased rates at every pay-step.  They continue to be higher in every pay step in the out years for the 5 year deal.
• Per diem increases to $2.50, the highest domestic per diem in the industry and beats most international per diem rates.

Hart Survey Exec Summary

A: It will mean more money.

Any FA eligible for the 2014 Profitability Bonus (COLA) will receive that bonus in April. For 2015 and beyond, the Profitability Bonus (COLA) will be eliminated. The Bonus is based on the company’s profitability and the number TFP a FA is credited in the year. The Longevity Premium will almost certainly amount to more money, and significantly more money depending on years of service for a FA.