Many Flight Attendants have asked, “What did we give up to achieve that provision?”

Most often it’s not as simple as the Negotiating Committee had to “give up” one provision in order to gain another. Sometimes there is a certain amount of trading for various aspects of the Tentative Agreement but not always. There were many times during these negotiations when management would give us a “freebie” when we asked for it, usually when it was a non-economic item.

For instance, some have wondered what AFA had to give up in order to achieve protections in Section 25 Air Safety, Health & Security from having to ferry on a flight with an inoperative engine. What has particularly concerned Flight Attendants is that regulations actually prohibit F/As from ferrying such flights. Therefore, some are concerned that we gave up something to achieve what we already have (even if it’s not in contractual language).

AFA had a whole list of protections or clarifications we were seeking in Section 25, some of which we achieved and others we did not. Even though regulations prohibit ferrying on those flights, AFA believed it was important Flight Attendants were aware they were not required to ferry such flights by including language in the contract. In this case, management agreed without further discussion.

There were plenty of similar instances when AFA asked for something and management agreed to incorporate it into the contract. Of course there were plenty of times when there was a lot more discussion and potentially even some “trading” to make it happen. We certainly didn’t have to give up something in order to gain something else for every change in the TA.

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.

How do the Minimum Pay Rules in TA2 impact my pay and 480 credit?

Duty Period Minimum (DPM):

This is the same provision we have in place today that guarantees you will receive a minimum of 4.0 TFP per for each duty period in a pairing.  Today, if the raw or hard value of a sequence is less than 4.0 TFP, it gets paid a minimum of 4.o TFP.

Example:  A SEA- GEG turn has a raw/hard TFP value of 2.0 (1.0 TFP per leg), but with the DPM applied, you are paid 4.0 TFP and 4.0 TFP is credited towards your 480 threshold calculation.

Average Duty Period Guarantee (ADPG):

This provision ensures a Flight Attendant will receive a minimum of 5.0 TFP times the number of duty periods.  Turns flown today that are worth anywhere from 4.o-4.9 are paid and credited towards 480 as such.  However, under the TA, all of these will be paid a minimum of 5.0 TFP  if flown. That has a great positive impact on your pay and 480 application.

Example:  You are awarded a line of 18 – 4.0tfp turns (18 x 4.0 TFP) = 72 TFP line award, if you fly your turns, 18 turns (duty periods) x 5.0 TFP (ADPG) = 90 TFP.  In this example, you will be paid 90 TFP instead of the 72.0 TFP awarded and you will get 90 TFP that month towards your 480 requirement.

Multi-Day Sequence Minimum (MSM):

This provision applies to sequences that are 3 or more calendar days but have fewer duty periods than the number of calendar days.  These types of sequences will be paid a minimum of 4.0 TFP per calendar day.  These are typically the pairings that span midnight on the last day of the trip.  These values are included in the pairings when constructed and are paid if flown, calling in sick, etc…

Example:  You are awarded a 3 day trip containing only 2 duty periods (Day 1: PDX- ANC, Day 2: ANC-PDX, releasing in  PDX early AM on Day 3)  this trip has a raw/hard TFP value of (4.2 + 4.2 = 8.4 TFP), but with the MSM applied, you are paid (4.0 TFP x 3 days = 12.0 TFP.  In this example, today, you would be paid and credited for 8.4 TFP but in TA2, you will be paid 12.0 TFP and credited 12.0 TFP towards your 480 requirement.

Extended Overnight Rule:

This provisions applies to sequences that have no duty from 0100 to 2300 which triggers an additional 4.0 TFP to be calculated into the sequence total value.

Example:  You are awarded a 3 day sequence (Day 1: PDX-OGG arrives at 22:55, Day 2: departs at 23:55 OGG-PDX  releasing in PDX at 07:27 on Day 3.  This trip has a raw/hard TFP value of (6.8 + 6.8 = 13.6 TFP), but there is no duty from 22:55 to 23:55 so the EOR would apply.  With the EOR applied, you will paid (6.8 + 4.0 (EOR) + 6.8 = 17.6 TFP).  In this example, today you would be paid and credited 13.6 TFP, but in TA2, you will be paid 17.6 TFP and 17.6 TFP will be credited towards your 480 requirement.

Sit Pay:  This provision applies to any scheduled or actual ground time that exceeds 2 hours between flights.  You will be paid 1.0 TFP unless stranded pay applies.

Example: A LAX-SEA turn worth 5.6 TFP is constructed with a 2:35 minute sit time or the same LAX-SEA turn was constructed with a 1:45 minute sit, but you block in 20 minutes early creating an actual sit of 2:05, then Sit Pay would apply and you would receive (5.6 + 1.0 Sit Pay = 6.6 TFP).  In this example, today, you will be paid and credited 5.6 TFP, but in TA2, you will be paid 6.6 TFP if flown and 6.6 TFP will be credited towards your 480 requirement.

Minimum Pay Rules help us achieve our 480 worked TFP for the year. Keep in mind the only place the 480 needs to be worked TFP is for vacation accrual. For benefits, 480 includes worked, vacation (even if not earned)/PTO and sick, all other applications it is worked TFP plus vacation/PTO.

Q: How do the TA2 wage rates compare with the proposed AA/US Airways TA rates and the new increased rates Delta FAs will get in 2015?

A: The Alaska TA2 pay rates are higher in every pay step and will continue to be throughout the life of the proposed 5-year deal.

Q: I know the current Alaska rates are pretty low in comparison to the rest of the industry. Where do we rank with TA2?

1. Please see the chart posted in the summary – it indicates our current pay rates and also the new TA2 rates vis-à-vis the rest of the industry.

Q: How come the more junior and middle of the scale rates received greater increases than the top of the scale (TOS) rates?

A: Two things complicate bigger raises at the TOS:

1) As you can see from the Industry Comparison Rates Chart, the TOS rates were already high for the industry. Does that mean you don’t deserve a significant raise: Absolutely Not! However, management’s overriding goals was to have rates to be no higher than #2 or #3 in the industry.

2) Additionally, and more significantly, management insisted that the total increase to our TOS rate not exceed the percentage increase to the pilot’s TOS increase. That was an absolute that management put down from the beginning and stood firm on that requirement. We focused on securing Longevity Premium to the more senior FAs.

Q: The $2.50 per diem rate – How does that compare with the rest of the industry?

A: It is the highest domestic rate in the industry. AA/US Airways new TA puts Domestic Per Diem at $2.10 and International Per Diem at $2.40 if ratified. Southwest has a Domestic Per Diem of $2.15 and International Per Diem at $2.65 (but AirTran flies all of their international routes).