Furlough mitigation resources
AFA has compiled the following furlough mitigation resources for easy reference.
Company resources (AAG SSO required)
- All furlough mitigation options
- Early Out (EO)
- Extended Leaves of Absence (ELOAs) and Enhanced Voluntary Furloughs (EVFs)
AFA resources
- October 2020 Furlough Mitigations Letter of Agreement (7/8/2020) [signatures pending]
- Reduction in Force 2020 Sideletter of Agreement (7/8/2020) [signatures pending]
- JCBA Section 18 [Reduction in Force] and Section 27 [General – Association]
Combined resources – “Early Out and Leave Options” informational sessions
Management is hosting and AFA will also be co-participating in upcoming “Early Out and Leave Options” informational sessions in which all furlough mitigations will be addressed: Early Outs, Extended Leaves of Absence and Enhanced Voluntary Furloughs.
Available Sessions – An individual calendar invite has been sent by management for each event. Please join us if you have questions!
Tue 7/14 @ 12pm – 1pm PT
Thu 7/16 @ 4pm – 5pm PT
Tue 7/21 @ 2pm – 3pm PT
“The Numbers”
Everyone wants to know the target numbers for the Early Out program, Extended Leaves of Absence and Enhanced Voluntary Furloughs. The MEC shared that feedback with management prior to publication of yesterday’s email announcing the EOs and other furlough mitigation options. According to the Company’s Early out Q&A (AAG SSO required), management estimates needing approximately 600 Flight Attendants to take the Early Out.
In our June 5th “A Message About Current Events, and Planning for the Future” communication, the MEC projected that Alaska Airlines will possibly need 35%-50% less Flight Attendants systemwide—at least temporarily—beginning on October 1. We now project the impact to be fairly significantly less, but the MEC cannot say more due to non-disclosure agreements (NDAs). However, the MEC will continue to press management to be more forthcoming with projections as soon as possible.
Company Early Out
Management has now released the details of the Company Early Out program (AAG SSO required). As mentioned in the June 30th edition of the AFA Update, AFA did not negotiate this Early Out package. AFA approached management back in March regarding our interest in negotiating an Early Out, but management declined our offer.
AFA’s assessment is that the Company’s EO package will not attain even close to the desired number of takers. Candidly, the Master Executive Council (MEC) is disappointed in the Company’s EO; we had hoped the Company’s EO would be more in line with industry leading Flight Attendant EOs like at Southwest Airlines. However, the EO will interest some Flight Attendants who were already considering retirement or who are interested in early retirement.
Involuntary Furlough (IVF) Mitigations
No lower line averages
Pursuant to §18.A [Involuntary Furlough Mitigation], AFA and management have been working on furlough mitigations over the past two weeks. After careful consideration and in consultation with industry experts, AFA has declined to lower the line averages or adjust the line value range. AFA already lowered the minimum domicile average line value from 78 TFP to 75 TFP in the 2014-2019 CBA, which allows individual lines to be built up to 10 TFP lower at 65 TFP. Our analysis is that the scale of anticipated reduced staffing is so great and the duration of lower lines so uncertain that these mitigations would be unacceptable to the majority and seen as a concession.
October 2020 Furlough Mitigations Letter of Agreement
Click here for the October 2020 Furlough Mitigations Letter of Agreement >
Furlough mitigation enhancements and clarifications that are in addition to Extended Leaves of Absence and Voluntary Furlough provision in Section 18.A [Involuntary Furlough Mitigations]:
- Extended Leaves of Absence of 12-month duration (ELOA-12) -> No change to contract
- COBRA-eligible for healthcare
- Regular 480 unpaid credit of 1.333 TFP per day
- Base guarantee
- See contract for additional details
- “Enhanced” Voluntary Furloughs of 6-, 9-, 12- and 15-month durations (EVF-6, EVF-9, EVF-12 and EVF-15)
- Company-paid healthcare premiums
- Double 480 credit
- Base guarantee on EVF-6 & EVF-9 (contractual voluntary furloughs have no base guarantee)
- No base guarantee on EVF-12 or EVF-15 unless recalled June 2021 or earlier
- Productivity Premium Program eligibility on ELOA & EVFs (and on IVF via separate email acknowledgement from management)
- Recall procedures
- Order of recall clarified: IVF followed by EVF (followed by ELOAs requested but not required)
- “Live” recall or bypass form
- Full-time student bypass for the remainder of the term while on ELOA, EVF or IVF (proof of enrollment in accredited college or university required)
- Staffing Adjustment Leaves (SALs) -> Enhancement to §15.B [Staffing Adjustment…]
- Offered one month at a time (in order to avoid the perception of seniority violations) but may be awarded consecutively
- Double 480 credit
- Company-paid healthcare premiums
- FAs on involuntary furlough may choose to remain current by attending regulatory training (RT/RQ)
- Company-paid healthcare premiums during the month of training
- Out of domicile provisions if FA is required to take training out of domicile (e.g. SANFAs)
- Positive space Company Business travel provided to and from domicile if required
- Unemployment insurance (UI)
- Company will not contest UI
- Company will provide support letter to the FA
- “Reconvene clause” in case legislation (e.g. potential extension to the CARES Act) is subsequently passed that prevents IVFs
Reduction in Force 2020 Sideletter of Agreement
Click here for the Reduction in Force 2020 Sideletter of Agreement >
AFA and management recognized that references to “seniority” in §18.A [Involuntary Furlough Mitigations] and §18.K [Involuntary Furlough Seniority Retention] required clarification to reflect intent and established practice:
- Occupational Seniority always accrues: FAs always receive scheduled pay increases and are not negatively impacted in bidding seniority or relative seniority while on any type of leave or furlough.
- Company Seniority always accrues: FAs always receive scheduled vacation accrual increases and are not negatively impacted for non-rev seniority while on any type of leave or furlough.
- Longevity: 401(k) vesting and retirement eligibility are ‘frozen’ (i.e. retained but not accrued) while on certain types of leave or while on furlough.
The parties clarified the procedures for returning from an Extended Leave of Absence under §18.A:
- Domicile protection while on ELOA and recall in Occupational Seniority order
The parties will allow Flight Attendants to conduct Union Business (UB) or Company Business (CB) while on a voluntary furlough under §27.AA [Union Business and/or Company Business…]:
- Flight Attendants who routinely conduct UB and/or CB work may be potentially willing to take voluntary furloughs, and this provision would allow them to do so while continuing to provide necessary services to the Company and/or to the Association.
- Examples: Inflight Training Instructors, Special Project work Flight Attendants and union reps
Tell Congress: Extend the CARES Act
If not enough Flight Attendants voluntarily take the Early Out, Extended Leave of Absence or Enhanced Voluntary Furlough, then at least some of our sisters and brothers will be involuntarily furloughed starting in October. Consequently, it is vitally important that each and every one of you help AFA-CWA, the Association of Professional Flight Attendants (APFA) and the Transport Workers Union (TWU) Local 556 achieve a six-month extension to the CARES Act in order to protect Flight Attendant jobs. Tell Congress to keep our industry intact by extending the CARES Act!
These are extremely difficult and stressful times. Please remember that your Employee Assistance Program (EAP) Committee is always available as a support resource. As your direct representative on the MEC, your LEC president is available to answer questions or concerns that you may have about all the information presented here. Contact information for your respective LEC president can be found by clicking here. We hope to see you at one of the upcoming “Early Out and Leave Options” informational sessions on 7/14, 7/16 or 7/21!
In Solidarity,
Your MEC – Jeffrey Peterson, Brian Palmer, Linda Christou, Matt Cook, Terry Taylor, Steve Maller, Melissa Osborne, Tim Green and Brice McGee
Ty Tufono-Chaussee says
If an IVF is triggered and it affects the seniority of Union Reps, Instructors/Trainers & Special Project FA’s, does this side agreement with management “allow” them to continue to work under CB status while others in their seniority group or even more senior are affected by the IVF?
Jeffrey Peterson (MEC President) says
No. The Reduction in Force 2020 Sideletter allows union reps, Instructors/Trainers and Special Project FAs to do such work while on a Voluntary Furlough just like while on other leaves of absence pursuant to §27.AA. Doing such work under §27.AA would not be allowed while on involuntary furlough.
Jake Gale says
My seniority is in the mid-4000s; if I was awarded an EVF, but the company determined they needed to IVF up to seniority 4000, my EVF would change to IVF, correct? Essentially, everyone with seniority 4000 and junior would be changed to IVF no matter if they were on EVF, ELOA, SALOA, etc.?
Jeffrey Peterson (MEC President) says
Absolutely correct: All FAs from seniority #4000 to the bottom of the list would be converted to involuntary furlough in your example.
Jason Rosa says
when can we expect firm numbers from the company regarding the number of expected furloughs? 30-50 percent is a wide margin and OCT 1 is quickly approaching.
Jeffrey Peterson (MEC President) says
Somewhere between mid-August and September 1st.
vikkie says
If I took a loan against my 401k and take a Voluntary Furlough, would I still be considered an active employee by Vanguard or would I been showing terminated/laid off and need to repay my loan immediately?
Jeffrey Peterson (MEC President) says
We would always caution any FA to be absolutely sure that a 401k loan is right for your situation prior to taking one because of the early withdrawal penalties and onerous taxation. That being said, the CARES Act does provide significant, temporary relief from some of these provisions.
I am double checking with HR to ensure I have the right answer regarding a 401k loan and Voluntary Furlough. Will post when I hear back.
Jeffrey Peterson (MEC President) says
Anyone on a Voluntary Furlough will be coded as a leave of absence, so you would still be active in Vanguard’s system.
Leslie Pellegrini says
If the company does not receive the desired number of flight attendants taking one of the early out options, does AFA anticipate that the company will offer a revised or improved version of the early out programs?
Jeffrey Peterson (MEC President) says
No.
Bryan Brasseur says
I already have earned enough credits for next year’s health insurance 2021. If I elect to take the ELOA, would my health insurance be covered with those earned credits?
Also,
If I am on an ELOA, and then must go on a medical leave for surgery before the year is up, will the health benefits and other terms of the ELOA or EVF be honored? Specifically, the 480 company credit for the next year.
Thank you, and I will be attending one of the upcoming info events, but this is really important and may not come up.
Jeffrey Peterson (MEC President) says
Achieving the 480 in 2020 for 2021 only makes you eligible to receive healthcare insurance at active employee rates while on active status. Pursuant to §18.A.1.d you will be allowed to maintain medical coverage for the duration of the ELOA by paying COBRA rates if you qualified for and purchased medical coverage (including Company-paid under the various COVID leaves) prior to taking the ELOA.
You will not be brought off of an ELOA or EVF in order to go on a medical leave, so you would continue to be on an ELOA or EVF while receiving treatment.