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Representing the Flight Attendants of Alaska + Hawaiian

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2016 Performance Based Pay

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.

PBP grievance

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!

In Solidarity,

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)

Performance Based Pay Correction

AFA Alaska recently became aware that an error occurred with respect to how Performance Based Pay (PBP) was calculated for some Flight Attendants. Flight Attendants who were coordinating sick leave with Short Term Disability (STD) and/or Long Term Disability (LTD) did not have their sick leave pay counted toward their PBP.

 

AFA Alaska brought these facts forward through the Alternate Dispute Resolution (ADR) process, and management has since corrected the error. Affected Flight Attendants received email notification of the correction, which was paid on their May 20, 2016 paycheck.

 

If you have any questions regarding the correction or if it applies to you, contact one of your Local Executive Council (LEC) officers.

 

In Solidarity,

 

Your MEC – Jeffrey Peterson, Brian Palmer, Yvette Satterlee, Lisa Pinkston, Laura Masserant, Cathy Gwynn, Sandra Morrow, Stephen Couckuyt; LEC Presidents-elect Tim Green and Brice McGee; MEC Grievance Committee Chairperson Jennifer Wise MacColl and MEC Grievance Committee Representative Stephanie Adams

2015 Performance Based Pay

PBP is 9.3% of 2015 eligible earnings

 

Congratulations for another generous Performance Based Pay (PBP) payout! The 2015 PBP for most employees—including flight attendants—is 9.3% of eligible earnings, which is the equivalent of nearly five weeks of pay. More information about PBP can be found on Alaska’s World at https://splash.alaskasworld.com/News/2016/01/21_pbp.asp (login required).

 

PBP has averaged 8.8% of eligible earnings for flight attendants

 

Flight attendants first received PBP in 2009, which was paid in early 2010 and incorporated into the Collective Bargaining Agreement as part of the 2010 Contract Extension. Flight attendants previously participated in the Variable Pay Plan (VPP), which had a maximum payout of 7.0% of eligible earnings. PBP has averaged 8.8% of eligible earnings over the past seven years that flight attendants have been receiving PBP.

 

PBP is very competitive when compared to profit sharing plans at other carriers

 

If you have heard that profit sharing at another carrier is better than our PBP, know this: Profit sharing for line employees at most other carriers has been lucrative only in the last few years. When you consider that PBP has paid out an average of 8.8% of eligible earnings in every year we’ve been on the plan (since 2009), PBP is very competitive when compared with the best of other profit sharing plans in the industry.

 

* * *

 

Thank you for all your hard work—now let’s all pull together to achieve the maximum PBP payout in 2016!

 

In solidarity,

 

Your MEC – Jeffrey Peterson, Brian Palmer, Yvette Gesch, Lisa Pinkston, Laura Masserant, Cathy Gwynn, Sandra Morrow and Stephen Couckuyt

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