Healthcare Premiums

Q Which healthcare premiums are frozen at the 2019 rates?

A Please note the healthcare premiums are established in the 2018-2021 JCBA. The language would not change whether or not the contract extension TA is ratified.

Only the PPO premiums are frozen at the 2019 rates pursuant to JCBA §23.A.1-2 [Flight Attendant Insurance Plan(s)].

For the high deductible PPO premiums, Flight Attendants will pay no more than any other workgroup to participate in the plan pursuant to §23.A.3.

For Health Maintenance Organizations (HMOs), Flight Attendant will pay the greater of either the PPO rate or the difference between the entire cost of the HMO and the Company contribution for the PPO plan.

Pay Increases Under the Contract Extension Extension TA?

Q I saw the news about the tentative agreement with the 1.5% increase in pay. I’m confused about this though. Does this mean 1.5% and that is all we will see until a new contract is signed in 1-2 years? Or is there some other step increase that will be honored?

A You will continue to progress through the step rates on your anniversary date just like always if you are not at top of scale. The only difference is that the entire pay scale would also increase by 1.5% on December 17, 2021, if the TA passes. This is the same type of increase that changed the entire pay scale by 2.5% on December 17, 2020 under the current 2018-2021 JCBA. Eligible Flight Attendants at the top of scale will also continue to move to the level of Longevity Premium on their applicable anniversary date.

If We Vote “No” on this TA…?

Q If we vote “no” on this contract extension TA, does this mean we have to go into new contract negotiations, or can we negotiate a new extension in hopes for a higher pay increase?

A The MEC approached management regarding this extension, so it’s not like management was necessarily interested in negotiating an extension. There is technically nothing preventing management and AFA from negotiating another extension with different terms (such as pay rates) if this TA is not ratified, but we do not see any incentive for management to do so at this time.

Regular negotiations are scheduled to begin in September 2021, so there would be just over three months following the mid-May TA count date for both parties to prepare for those negotiations.

Does a Contract Extension Make Sense Right Now? (2)

_{(Compiled from the 2^nd virtual roadshow transcript and lightly edited.)}

Q Some Flight Attendants think that starting negotiations later this year will position us to take advantage of potential profitability later. Is this a good strategy?

A

Well, I think we’ve heard a lot about “the curve.” Is it a good strategy? It’s an opinion question, so I’m going to answer it with my opinion based on my experience.

It’s not a terrible strategy, but is it the best strategy? I don’t believe so. I think that we would be better served by waiting just one year longer to be on the other side of that curve where it’s not just starting to start go up but where everyone else is starting to rise, too, and other groups have started to bargain. So I would not call it a good strategy.

I think it’s not a completely detrimental strategy, but it wouldn’t be my preferred way to go, which is why I am in favor of this extension. At the same time, no one has a crystal ball, and I don’t want to tell anyone how to vote, so you really have to look at it and just listen to all the information and decide for yourself what you think is the best for you, your family and for all of us collectively.

MEC President Jeff Peterson