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    You are here: Home / Archives for Negotiations / Extension 2021 Blog

    Healthcare Premiums

    April 29, 2021 11:45

    Healthcare Premiums

    Q Which healthcare premiums are frozen at the 2019 rates?

    A Please note the healthcare premiums are established in the 2018-2021 JCBA. The language would not change whether or not the contract extension TA is ratified.

    Only the PPO premiums are frozen at the 2019 rates pursuant to JCBA §23.A.1-2 [Flight Attendant Insurance Plan(s)].

    For the high deductible PPO premiums, Flight Attendants will pay no more than any other workgroup to participate in the plan pursuant to §23.A.3.

    For Health Maintenance Organizations (HMOs), Flight Attendant will pay the greater of either the PPO rate or the difference between the entire cost of the HMO and the Company contribution for the PPO plan.

    Filed Under: Extension 2021 Blog, Latest News, Negotiations Tagged With: 2021, blog, contract, Extension, TA

    Pay Increases Under the Contract Extension TA?

    April 29, 2021 11:30

    Pay Increases Under the Contract Extension Extension TA?

    Q I saw the news about the tentative agreement with the 1.5% increase in pay. I’m confused about this though. Does this mean 1.5% and that is all we will see until a new contract is signed in 1-2 years? Or is there some other step increase that will be honored?

    A You will continue to progress through the step rates on your anniversary date just like always if you are not at top of scale. The only difference is that the entire pay scale would also increase by 1.5% on December 17, 2021, if the TA passes. This is the same type of increase that changed the entire pay scale by 2.5% on December 17, 2020 under the current 2018-2021 JCBA. Eligible Flight Attendants at the top of scale will also continue to move to the level of Longevity Premium on their applicable anniversary date.

    Filed Under: Extension 2021 Blog, Latest News, Negotiations Tagged With: 2021, blog, contract, Extension, TA

    If We Vote “No” on this TA…?

    April 29, 2021 11:15

    If We Vote “No” on this TA…?

    Q If we vote “no” on this contract extension TA, does this mean we have to go into new contract negotiations, or can we negotiate a new extension in hopes for a higher pay increase?

    A The MEC approached management regarding this extension, so it’s not like management was necessarily interested in negotiating an extension. There is technically nothing preventing management and AFA from negotiating another extension with different terms (such as pay rates) if this TA is not ratified, but we do not see any incentive for management to do so at this time.

    Regular negotiations are scheduled to begin in September 2021, so there would be just over three months following the mid-May TA count date for both parties to prepare for those negotiations.

    Filed Under: Extension 2021 Blog, Latest News, Negotiations Tagged With: 2021, blog, contract, Extension, TA

    Does a Contract Extension Make Sense Right Now? (2)

    April 29, 2021 11:00

    Does a Contract Extension Make Sense Right Now? (2)

    (Compiled from the 2nd virtual roadshow transcript and lightly edited.)

    Q Some Flight Attendants think that starting negotiations later this year will position us to take advantage of potential profitability later. Is this a good strategy?

    A

    Well, I think we’ve heard a lot about “the curve.” Is it a good strategy? It’s an opinion question, so I’m going to answer it with my opinion based on my experience.

    It’s not a terrible strategy, but is it the best strategy? I don’t believe so. I think that we would be better served by waiting just one year longer to be on the other side of that curve where it’s not just starting to start go up but where everyone else is starting to rise, too, and other groups have started to bargain. So I would not call it a good strategy.

    I think it’s not a completely detrimental strategy, but it wouldn’t be my preferred way to go, which is why I am in favor of this extension. At the same time, no one has a crystal ball, and I don’t want to tell anyone how to vote, so you really have to look at it and just listen to all the information and decide for yourself what you think is the best for you, your family and for all of us collectively.

    MEC President Jeff Peterson

    Filed Under: Extension 2021 Blog, Latest News, Negotiations Tagged With: 2021, blog, contract, Extension, TA

    Does a Contract Extension Make Sense Right Now?

    April 29, 2021 09:45

    Does a Contract Extension Make Sense Right Now?

    (Compiled from the 2nd virtual roadshow transcript and lightly edited.)

    Q According to an economist at Morgan Stanley I talked with about a month ago, this pandemic produced what is called an exogenous shock to the economy, which typically produces immediate chaos but a short recession and quick recovery. In this case that is what is happening: The US economy bottomed out last July, corporate profits reached pre-pandemic levels Q1 2021, and corporate revenues are on track to do so by June 2021. Employment always takes longer to recover. The airline industry will lag but will also recover.

    Since the contract negotiations will take several years, and I’ve read that the pay part of negotiations happens at the end, we should be well into recovery by the time our pay is negotiated. Without this extension our prior contract already has been extended. Many Flight Attendants don’t believe another extension makes sense. Can the economist comment on this?

    A

    Yes, the economist can. First off, I don’t know which corporations are operating at pre-pandemic levels of profitability in the first quarter of 2021.Obviously airlines aren’t, and I guess the question really is in terms of the next year following the amendable date without a TA the difference between 1.5% and 0% is kind of what we’re looking at.

    So, when I when I say that I mean we are not going to get that money back in a future year by saying we gave it up, (but) we want it back in 2023 or 2024. It’s kind of a lost opportunity in my book. To look at with the contract opening in December of 2021where would we be in a year if we didn’t extend, and I would say we would have gotten zero percent pay increases for sure as opposed to a 1.5 percent pay increase for sure.

    So, I agree that the airline industry lags behind the rest of the economy. The economy is forecast to grow very strong coming out of this recession, but I do think it’s really a question of do you want a one and a half percent pay raise or a zero percent pay raise over the next year after the amendable date. That’s really the question on the table because I don’t think there’s any way to negotiate this money back in some future period to make up for what we gave up.

    Aviation Economist Dan Akins – FlightPath Economics, LLC

    Almost every section of the agreement has an economic impact, and when you’re bargaining, if the company is really in cash preservation mode, then even sections you wouldn’t think like sick leave and vacation–any little work rule improvement that you want there–they’re looking at how is that going to impact on sick leave rates, how it’s going to impact on vacation utilization and so forth. In that context what you find once you get into scheduling and reserve, they’re looking at all of those work rules that you wouldn’t necessarily think as economic items as well. So, in the context where a company is either concerned about cash burn or they’re concerned about rebuilding cash reserves, all of the sections of the contract become a lot more difficult to negotiate, and things really slow down.

    In part we know the answer here because we know that negotiations were proceeding at a pace such as (at) American and Southwest. Even though they…already started their negotiations, those negotiations essentially stalled out. Even though they weren’t at (the) economics (yet), just because there wasn’t going to be or there wasn’t any progress being made. When there [were] substantive discussions, the company was coming in and demanding concessions.

    So, the other thing I think to take into account is Jeff went over your position in the industry [regarding pay ray rates earlier in the roadshow], and … one of the features of bargaining in this industry is we do something called “leapfrog bargaining.” What that means is we’re able to win increases at one carrier that provides a platform for the next Flight Attendant group to come back and use those increases as an argument about why they need more.

    So, for example the Hawaiian Flight Attendants got an increase right before the pandemic. Those negotiations centered on where was everyone else situated, and we had a big fight with [Hawaiian management]. It was really based on what the comparators in the industry, and how does that affect our negotiations. One of the difficulties if you try to speed up your negotiations in front of everybody else is that your comparators haven’t had a chance to get the increases that they normally would have gotten. American you know we would have hoped but for the pandemic that they would have been in a better place right now with their contract. If they had gotten some good increases, that provides a better basis for you to get increases and so forth. United, Spirit and all of that.

    You want to be … doing your timing correctly … in order to get the increases … that you really want in these negotiations. We need some of these other work groups to get in there and also be fighting for increases otherwise you’re going to be a little bit ahead of the curve.

    This one-and-a-half percent, it’s basically in line when you do an extension. You don’t get a massive increase, but you get something to kind of keep you where you’re at until you can have a more favorable point.

    AFA Director of Collective Bargaining Joe Burns

    From my experience with negotiating for AFA Alaska, it’s exactly like what Joe has been saying about what Flight Attendant might think is not economic because it’s not specifically having to do with the step rate–so the pay rate–or say the vacation value or something like that. They think that’s not economic, all the other things, but they actually are…. Say open time is an example of something that we may want to likely revisit, and it does have an economic impact because … it does impact staffing, and therefore it costs the company money…. A sensitive topic that we will address at some point is say TFP versus block, and there’s a whole conversation that could be had on that, but … again it’s an economic conversation.

    So, if we didn’t delay, (then) we would go to the table [in September], and we would quickly blaze through the non-discrimination (policy), all the stuff that we agree to right away, or the very low-lying things about certain definitions or updating and incorporating LOAs that we’ve already agreed to into the contract.

    Once we’re done with that, then it really is like all of it is economic: reserve, scheduling, hours of service, obviously pay, vacation, sick leave. So, it would just make it challenging to have those conversations and probably would not be extremely productive for some period of time, and that’s why we have brought it to you guys for consideration whether this is our best strategic position to enter negotiations [in September or to extend for a year].

    MEC President Jeff Peterson

    Filed Under: Extension 2021 Blog, Latest News, Negotiations Tagged With: 2021, blog, contract, Extension, TA

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    Our AFA Uniform Committee Chairpersons met on Tuesday, August 8 to discuss their ongoing program of work to represent Flight Attendants interests related to uniforms. The Committee also met with management to receive updates and discuss issues and problems that Flight Attendants are reporting related to uniform quality, wearability, and availability. If you are experiencing any issues with uniform quality or construction, please report the issues to Unisync as soon as possible. Please include your Local Uniform Committee Chairperson on the email so they can help track any issues or trends that might be developing.
    This year’s company milestone anniversary celebration is coming up on Saturday, September 23, and we’re ready to turn the party into a RED HOT event! If you’re planning to attend as someone being recognized for a milestone anniversary (10 years of service and every five years after that) or joining someone who is as a guest, don’t forget to wear red (including your red AFA pin) to the event. Let’s show management our solidarity and turn out a sea of red to demonstrate that we’re fired up about a contract recognizing our contributions to the company’s success over our many years of service!
    Our AFA Alaska Master Executive Council (MEC) met this week on Monday, September 18, and Tuesday, September 19, to conduct their ongoing work to represent our Flight Attendants. The MEC also met with executive management and a group of union leaders from other company workgroups to receive updates and discuss concerns affecting employees company-wide. The next Regular MEC Meeting is scheduled for Tuesday, October 10, and Wednesday, October 11.
    We continued discussing Section 10.R-S: Scheduling and MPRs/RIGs this session, but progress has slowed considerably since June. We have been assigned a Mediator, who we anticipate joining our negotiation sessions starting in November. We are planning additional Mobilization activities in the coming months and expect to share additional details next week.
    Our AFA Reserve Committee Chairpersons met on Thursday, September 14, to discuss their ongoing program of work to represent and advocate for our Reserve Flight Attendants. The Committee also met with management to review specific concerns that Flight Attendants brought forward. Your Local Reserve Committee is available to answer questions, clarify contractual language, or help resolve reserve-related issues. Please don’t hesitate to reach out!
    Our AFA Inflight Service Committee Chairpersons met on Wednesday, September 13 to discuss their ongoing program of work to represent Flight Attendants interests related to catering and onboard service/sales. The Committee also met with management to receive updates and discuss issues and problems that Flight Attendants are facing onboard the aircraft. The Inflight Service Committee continues to work with management to continuously improve onboard catering and engage in discussions leading to future improved processes. Please continue to report catering issues through Block2Block and safety-related issues through ReportIt!

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    September 22, 2023 Leave a Comment

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    September 20, 2023 Leave a Comment

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    September 19, 2023 Leave a Comment

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    September 18, 2023 Leave a Comment

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