Performance Based Pay is 8.73% of 2016 eligible earnings
Pursuant to CBA §29.A [Profit Sharing and Retirement: Performance Based Pay], all Flight Attendants will receive a Performance Based Pay (PBP) payout today on all eligible earnings described in the Alaska Airlines, Inc. Profit Sharing Plan. This year, line employees are receiving about a month’s pay or 8.73% of their 2016 eligible earnings. This is the eighth consecutive year Alaska has exceeded the 5% payout target, and PBP has averaged 9.14% over 5 years. Prior to 2009 Flight attendants participated in the Variable Pay Plan (VPP), which had a maximum payout of 7.0% of eligible earnings.
PBP eligible earnings
What are PBP eligible earnings? In general, it should be everything except for the prior year’s PBP payout, the Quarterly Productivity Premium (QPP), Operational Performance Rewards (OPR), per diem, expense reimbursements and imputed income.
Some of you have been doing your own calculations and questioning why your PBP payout is not consistent with eligible earnings. Well, the most probable reason is that the Company has likely been calculating PBP incorrectly for Flight Attendants since at least date of signing for this contract in December 2014. At a minimum, we believe that Sit Pay and Longevity Premium have not been included in the calculation for PBP 2014-2016.
Consequently, AFA has filed Grievance 36-99-2-8-17 Violation §29.A Failure of Company to Include All Eligible Earnings in Calculation of Performance Based Pay (PBP). AFA believes the remedy would be a “make whole” recalculation and payout for the excluded eligible earnings. Management is currently in the early stages of research, which may take awhile due to the complexities of the issue. In the meantime, enjoy your 2016 PBP payout, and congratulations to all!
Your MEC – Jeffrey Peterson, Brian Palmer, Linda Christou, Lisa Pinkston, Laura Masserant, Cathy Gwynn, Tim Green, Brice McGee; and MEC Grievance Committee Chairperson Stephanie Adams
2017.02.10 Grievance 36-99-2-8-17 Violation §29.A Failure of Company to Include All Eligible Earnings in Calculation of Performance Based Pay (PBP)