Q:     Why can’t there be a penalty to the Air Group if full implementation isn’t done by  a said date?

A:     Actually, the JNC did achieve an incentive to encourage the Company to keep the anticipated Full Integration date. If the two Flight Attendant groups are not fully integrated by March 2019, all of the L-VX pairings must be constructed using the JCBA work rules (the 10.5 hour duty day and all of the AS rest provisions, etc.). While this will not carry over into the operation once the bid month is active, all L-VX pairings will be constructed using JCBA work rules.

The below language is in the L-VX FA Transition Agreement:

Delay of JCTE

In the event that Full Implementation is delayed past March 2, 2019, then all pairings will be constructed under the provisions outlined in the JCBA in Section 10 [Scheduling]. Additionally, for any pairings created after the initial bid award the Company will make every best effort to construct the pairing in compliance with Section 10 of the JCBA.  

This will be a significant constraint on and financial incentive for the Company to integrate on time because it will take more L-VX Flight Attendants to fly a schedule with pairings constructed under the JCBA work rules.  The L-VX partition would most likely not have the staffing to accomplish all of their flying if the pairings were built using the JCBA work rules.

The JNC strongly advocated for additional penalties during negotiations to pressure management to achieve the targeted dates. Unfortunately, management would not agree to actual monetary incentives.

Q:     Since medical premiums will be frozen, does this include our actual medical plan/benefits? Or can they give us inferior plans to keep the current cost?

A:     Section 23.A [Insurance Benefits: FA Insurance Plan(s)] states:  “The Flight Attendants’ insurance plan will be separated from the Company-wide plan and will provide benefits comparable to those offered under the Alaska Airlines pilot’s pilots’ insurance program.“

Although not obvious from the language, the long standing interpretation and application of “comparable benefits” is that management provides Flight Attendants with the same insurance benefits as the pilots. The provisions of the pilots’ insurance benefits are cemented contractually in their CBA and cannot be changed by management. Management provides the same exact same benefit to the FAs because it is too administratively burdensome to develop a contractually compliant “comparable” program that is not exactly the same.

Under the JCBA, the Flight Attendant premiums will be frozen at the 2019 exact dollar rates.  The provisions of the medical insurance plans will remain those outlined in the pilots’ CBA.

Q:     What is the calculation for converting TFP to block-hours?  When does VX convert to TFP?

A:     In order to convert TFP pay rates to Block hour pay rates, you multiply the TFP base rate by 1.13.  [TFP pay rate in $/TFP  x 1.13 = Block-hour pay rate in $/block-hour]

If the TA is ratified, the pmVX FAs will be paid at the new JCBA 2018-2021 rates found in Section 21 Compensation (converted to block hours). The pay rates will be effective at DOR (Date of Ratification) and paid retroactively back to January 1, 2018. These new rates will also be effective for all rate-based incentives and premium pay.

Example:  Year 6 TFP pay rate at DOR is $35.40 per TFP.  A pmVX FA will be paid $35.40/TFP x 1.13 = 40.00/block-hour. This will be effective DOR and paid retroactively to 1/1/2018.

To calculate retroactive pay, you will receive the difference between your current block-hour pay rate and your new block-hour equivalent Alaska JCBA rate (TFP converted to block-hours).  

Example: Using our example above, a Year 6 pmVX FA is currently being paid  $33.86 per block hour. Their new rate would be $40.00 per block hour.  For all block hours paid from 1/1/2018 to DOR, you would receive the difference of $6.14 for each block-hour as a lump sum retro payment.

$40.00 – $33.86 = $6.14 per block hour

Again these new rates are effective for all rate-based incentives and premium pays. At full implementation, which is currently estimated for March 2019, pmVX Flight Attendants will begin to be paid in TFP (instead of the block-hour equivalent).

Q:     Am I reading it correctly that under the new plan unpaid vacation and PTO would be included for the purpose of earning bonuses or am I missing something?

A:     Yes! Paid vacation (included Longevity PTO) and unpaid vacation will count towards achieving the PPP at 4.0 TFP per day.

 

Q:     As the quarterly productivity premium is now paid quarterly, how will the new program be paid?

A:     It will be paid on the 20th paycheck following the appropriate PPP incentive period. This is an improvement from the QPP, which is paid on the 5th paycheck two months following the quarter.

QPP:

• Q1 (Jan, Feb, Mar) – $500 paid 05/05,
• Q2 (Apr, May, Jun) – $500 paid 08/05,
• Q3 (Jul, Aug, Sep)  – $1000 paid 11/05, and
• Q4 (Oct, Nov, Dec) – $500 paid 02/05

PPP:

• June – $350 paid 07/20,
• July – $350 paid 08/20,
• Aug – $350 paid 09/20,
• “Block of 8” (Jan, Feb, Mar, Apr, May, Sep, Oct, Nov) – $1100 paid 12/20, and
• December – $350 paid 01/20.

 

Q:     Will you do a comparison of the QPP and the PPP and the significant differences?

A:     Sure!

QPP: Based on a calendar quarter application (Q1: Jan, Feb, Mar; Q2: Apr, May, Jun; Q3: Jul, Aug, Sep; Q4: Oct, Nov, Dec) and requires your Worked TFP to be at least 0.1 TFP more than your combined monthly PBS bid award equivalent across that calendar quarter. Sick leave and vacation are excluded from achieving the QPP. Payout is $500 for Q1, Q3 and Q4; $1000 for Q3.

PPP: Based on the defined period (Combined block of 8 months: Jan, Feb, Mar, Apr, May, Sep, Oct, Nov; 4 individual months: Jun, Jul, Aug, Dec) and requires your Worked TFP to be at least 40.0 TFP more than your combined monthly PBS bid award equivalent across that block of 8 months (average 5.0 TFP per month) or at least 5.0 TFP more than your monthly bid award equivalent in June, July, August and December. Vacation is now included in achieving the PPP (and sick leave is still excluded). Payout is $1100 for the block of 8 months is $350 for each month of June, July, August and December.

 

Q:     Why is the PPP based on the base line average instead of the individual line average?

A:     The PPP is based on an individual Flight Attendant’s bid award–the same criteria as the current QPP program. One can make arguments either way for the benefits of an individual line average versus the domicile line average. AFA and management did not change that aspect of the incentive criteria.

 

Q:      I am seeking understanding why the QPP was changed from quarterly to create the PPP with 4 single high impact months and an 8-month block. Vacation counting towards PPP is better than how it is currently with QPP. However, one now has to fly 5.0 TFP more (60 TFP total for the year) for the PPP instead of 0.1 TFP more in each quarter for the QPP. Why have we lost the flexibility of being able to do our extra flying over a quarter and have now in essence made it harder in single months?

A:     AFA sought to change the QPP so that vacation counted towards achieving the payout. Management agreed but sought to increase the threshold from 0.1 TFP to 5.0 TFP for each month, inclusive of vacation.

Considering even the most junior FA has at least 14 days of vacation at 4.0 TFP per day, that equals 56.0 TFP of vacation credit for the year that now counts towards achieving the PPP. That leaves a difference of only 4.0 TFP to make up for the entire year–and that is before you count in any other pick-up, Sit Pay, ADPG, ground delay, block delay, Stranded Pay, etc. This doesn’t seem like an unreasonable trade-off when one considers that all FAs with 5 years or more of Occupational Seniority have at least 21 days of vacation that equals at least 84.0 TFP more of vacation credit that will now count towards achieving the PPP.

It may be more challenging for some to achieve PPP in the single months, but it will be much easier for others. It really depends on where your vacation days are located within the year.

Q.  Why were no improvements to air commuting negotiated for example commuting offline, load protections etc?

A.  The JNC advocated strongly for both of those improvements in negotiations.  However, besides being adamantly opposed to those provisions, management was very unwilling to make changes that impacted only a portion of the Flight Attendant group because this was not a full Section 6 negotiations.  The JNC understands the importance of those two provisions to air commuters.

One improvement to air commuting is the ability to use the new ground commuting provisions in conjunction with air commuting.  Now, if you are a registered air commuter and have an unanticipated ground commuting issue on your way to your commuting airport in your registered commuter city, then you may utilize the Ground Commuting Policy provisions.

Q:     Addendum to section 15 #5 crossed out personal leaves, parental leaves, maternity but left medical leaves. To me that reads: if a FA accepts a Company-offered personal leave they will not accrue seniority. Is my understanding of this correct?

A:     The short answer: No. A FA will continue to accrue seniority on any approved leave of absence regardless of type. The language you are referencing is a misprint in that particular document (2018-2021 JCBA TA).

The long answer: Excellent catch! The language in Addendum to Section 15 Leaves of Absence, #5 was corrected to clarify that a Flight Attendant will continue to accrue seniority for the duration of any leave of absence.

However, there is an error in the comprehensive document that the JNC will address and correct as soon as possible. Although the JNC has made every effort to ensure the comprehensive document matches the signed TAs, it is not surprising that we missed something. Here is the incorrect language in the 2018-2021 JCBA TA:

5.  Do I accrue seniority while on a leave of absence?

Yes, you continue to accrue seniority during an approved medical leave. [Remainder in strikeout.]

The signed TAs match the language in the Addendum to Section 15, #5 found in the Changes to the 2014-2019 CBA LOA:

5.    Do I accrue seniority while on a leave of absence?

Yes, you continue to accrue seniority during an approved leave of absence. [Remainder in strikeout.]

A small but significant difference!

In summary, a Flight Attendant will continue to accrue seniority while on any approved LOA. AFA will coordinate a correction to the 2018-2021 JCBA TA document as soon as possible this coming week. We sincerely apologize for the error and for the confusion!

Q:     At Virgin America we have a 100% vested retirement account regardless of age and retirement status. I’m unclear about how the 401k section effects those of us who are not close to retirement age. Will our retirement accounts be moved to another financial institution? Will we keep our current fidelity account as is and start a new one with Alaska’s 401k plan provider?

A:     All L-VX FAs are 100% vested in the current VX 401(k) plan. Alaska continues to contribute company match of 125% of up to 6% of a Flight Attendant’s contribution.  If theTA is ratified, all L-VX Flight Attendants will transition to the Alaska 401(k) plan managed by Vanguard at DOR (Date of Ratification) plus three months. The transition process will actually close out the current Fidelity accounts and transfer the balance to the Vanguard 401(k) plan.  Because the Fidelity 401(k) had immediate vesting per VX Company policy, all L-VX Flight Attendants will be fully vested in the transferred amount.

At DOR pull (3) months all L-VX Flight Attendants will then begin contributing to the Vanguard 401(K) plan per Section 29.B-C of the 2018-2021 JCBA:

SECTION 29 PROFIT SHARING AND RETIREMENT

B.     401(K) COMPANY MATCH The Company will match any Flight Attendant’s pre-tax contribution to the 401(k) plan maintained by the Company, at the rate of one dollar ($1.00) for each one dollar ($1.00) contributed by the Flight Attendant, up to a maximum company contribution of seven and one-half percent (7.5%).

C.      VESTING SCHEDULE FOR 401(K) COMPANY MATCH A Member will have a vested and non-forfeitable interest in that vested percentage portion of the balance credited to the Member’s Matching Contributions Account at any time determined by reference to her/his completed years of Vesting Service in accordance with the following schedule:

Completed Years of Vesting Service            Vested Percentage

Less than 1 year                                               0%

1 year                                                                 20%

2 years                                                               40%

3 years                                                               60%

4 years                                                               80%

5 or more years                                          100%

D.     ACCELERATED VESTING

A Member will be fully vested and have a non-forfeitable interest in the balance credited to her/his Matching Contributions Account if:

1. The employee becomes medically disabled; or

2. The employee retires at or after age sixty-five (65); or

3. The employee retires at or after age sixty (60) with a minimum twelve (12) years of service with the Company Seniority, or at or after age sixty-one and one-half (61½) and a minimum of ten (10) years of service with the Company Seniority.

L-VX Flight Attendants will vest under the above schedule based on their original VX Company date of hire for all “new” company matching funds.  Note: You are always 100% vested in your employee contributions.

Q:     Is the $75 parking stipend going to be automatic if you don’t hold a parking permit?

A:     Yes, once the initial registration and verification has been completed. The details of the registration and verification process are still being worked out, but management has confirmed it will be automated and paid on the 20th paycheck. You must decline Company-provided parking in order to be eligible.

 

Q:     Is it going to be retroactive to 1/1/18? Is it ongoing or just one time?

A:     No, it is not retroactive to 1/1/2018. Yes, it will be ongoing once the program has been implemented following ratification. (It is not a one-time payment.)

 

Q:     If I am a registered air commuter, can I take the monthly parking stipend?

A:      Yes, as long as you decline Company-provided parking.

 

Q:     As someone who commutes to and from work via light rail in Seattle, and who was very disappointed when the company ceased the commuter trip reduction program, will I be able to use the $75 stipend any way I choose—which, for me, would mean putting that money onto an ORCA card to use on Seattle area public transportation?

A:     Yes, it will be paid monthly directly onto your 20th paycheck and you can use it any way you choose.

 

For ANCFAs:

[See [L-AS ANCFAs:] Monthly Parking Stipend – $75 [JCBA] for the latest info.]

 

[Note: This JNC Blog post is a revised version of “What happens if the TA is voted down?” The original post (in strikeout text) will continue to be available for reference.]

Q:     Without this extension, VX stays at their current pay and awful work rules until when? When we get a whole new contract is that right? And then our new brothers and sisters from VX will be voting for things on that contract they have not experienced or worked under, including, work rules and company ethics, such as broken promises. Also correct? I’m trying to see the whole picture- short term and long term. And then decide where we (all) make the best strategic decision to be strongest and most united.

A:     You are correct on all points regarding the VX situation and what would happen if the VX FAs do not come over to the AS CBA (which would become the JCBA) as a result of a ratified TA.

Q:     If we say No to this “first offer,” you will be sent right back to the table, and we will get more because they [management] never give us their “best offer” first, correct? Some people think that if they vote no, we will go back into negotiations and get a larger [pay] increase and the 480 improvements.

A:      Contract negotiations is not like buying a car or a home. The “you never accept the first offer no matter what’s in the deal” approach is very troubling. Just remember that the parties passed multiple proposals prior to reaching an agreement, and the JNC rejected many of management’s offers. Therefore, the TA is not management’s first offer. Although it is possible that there might be improvements in another pass, there are no guarantees either. Additionally, it takes time to go through the process again.

 

Q:     If this is voted down, would we go right back to the table or is this a one time merger TA offer? Would we then hold off until openers for the full contract negotiations coming up at the end of the year?

A:     If the TA is voted down, management has repeated told us in no uncertain terms that they will wait until October when the earlier re-opener for our Section 6 negotiations is slated to begin under our existing CBA. If that occurs, we will go into full Section 6 negotiations and our entire CBA will be potentially open for re-negotiation. Those talks have historically taken a significant amount of time. There are no guarantees regarding any provision to stay the same or to improve (e.g. pay raises, 480, etc.). Unless the parties were able to achieve a “Merger Agreement TA2” prior to October*, we would be back at the bargaining table potentially negotiating a full contract, yet with pmAS and pmVX on extremely disparate pay and work rules.

* The MEC and the JNC are disclosing this information to you in full transparency. However, we also feel a responsibility to inform the membership we are united in the belief that achieving a “Merger Agreement TA2” prior to full Section 6 negotiations is extremely unlikely. This conclusion is based on our ample collective experience in dealing with management during these negotiations. Please keep this information in mind as you consider the tentative Merger Agreement.