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Q&A: Does the Longevity Premium replace the Profitability Bonus (commonly called the COLA)? Will this mean less money?

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.

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Comments

  1. I thouht Blairs question was in reference to the Longevity Premium not the quarterly productivity premium? …. so my ?, the Longevity premium replaced COLA, was cola based on worked tfp excluding sick pay and vacation as well…..thanks

    • Caron,

      My apologies. I misread Blair’s question this morning. I have re-answered his question as follows:
      The Longevity Premium is paid on Worked TFP exclusive of sick and vacation. It is best to think of it in the same manner as the Reserve Premium. So if you are at TOS and your rate is $51.50, that is what you are paid on everything just like a Reserve is paid their step rate on everything. However, when you fly (Worked TFP inclusive of Minimum Pay Rules), you will receive the Longevity Premium just as when a Reserve flies, they receive their Reserve Premium, but it is not paid on vacation and sick.
      Cola is based on a few factors and you can find them all located in the current contract, Section 21.P., the last paragraph on page 108 is where is says the profitability bonus will be based on all TFP flown or credited during the calendar year…..

  2. Will the longevity premium only be paid on TFP flown or also on vacation and sick leave?

    Thanks!

    • Blair,

      The Longevity Premium is paid on Worked TFP exclusive of sick and vacation. It is best to think of it in the same manner as the Reserve Premium. So if you are at TOS and your rate is $51.50, that is what you are paid on everything just like a Reserve is paid their step rate on everything. However, when you fly (Worked TFP inclusive of Minimum Pay Rules), you will receive the Longevity Premium just as when a Reserve flies, they receive their Reserve Premium, but it is not paid on vacation and sick.

      I mis-read your question this morning and my apologies for not answering your question. Hope this clarifies for you Blair.

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