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Grievance Settlement No. 36-99-2-26-15 Quarterly Productivity Premium

Grievance filed in June 2015

On June 18, 2015, AFA Alaska filed Grievance No. 36-99-2-26-15 Quarterly Productivity Premium (QPP). The grievance requested an investigation and hearing into whether the Company violated Section 21.R [Quarterly Productivity Premium] and all related section of the Collective Bargaining Agreement when it excluded Flight Attendants who did not receive a PBS bid award due to leave status from the QPP. Effective July 23, 2015, the Master Executive Council (MEC) is pleased to announce the grievance has been settled. A copy of the signed grievance settlement can be found by clicking here.

 

0 TFP threshold (including carry-in and pre-planned absences) on no-bid status January through July 2015

 

For the months of January through July 2015, Flight Attendants who did not receive a PBS bid award in each applicable month due to leave status (medical-related leaves, staffing adjustment leaves, military leaves, Company Business and Union Business leaves, etc.) will have their QPP threshold set at zero (0.0) Trips For Pay (TFP) plus any TFP from month-end carry-in and pre-planned absences. This is the original “AFA interpretation” of Section 21.R.

 

Q1 and Q2 QPP payments

 

Second quarter (Q2) QPP (April through June) will be paid normally on August 5th. Any Flight Attendants who will now achieve Q1 QPP (January through March) will be made whole by receiving a retroactive payment no later than September 30, 2015.

 

75.0 TFP threshold (excluding carry-in and pre-planned absences) on no-bid status starting August 2015

 

Starting in August 2015, AFA and management agreed that Flight Attendants who did not receive a PBS bid award due to leave status will have their QPP threshold set at 75 .0 TFP for each month on no-bid status. Month-end carry-in and pre-planned absences will be excluded in such months.

 

Settlement language incorporated into the final print version of the contract

 

The following settlement language will be incorporated into the final print version of the contract currently being indexed as the new Section 21.R.2 (and all other paragraphs afterwards will be advanced by one citation):

 

“For any full bid month in which a Flight Attendant is on a ‘no bid’ status, the TFP equivalent of her/his bid award will be seventy-five (75.0) TFP. The TFP value of any month-end overlap carry-in or pre-planned absences will be excluded in a ‘no bid’ month for the purposes of determining the TFP equivalent of her/his bid award.”

 

Settlement should alleviate concerns regarding perceived inequality in achieving QPP for those on no-bid status

 

This grievance settlement should alleviate the concerns some Flight Attendants have expressed that QPP is perceived as easier to achieve for those on no-bid status than for those flying on the line. That was never the intent of the Negotiating Committee when this provision was negotiated. QPP was proposed in the last days of negotiations and the parties had very limited time in which to make adjustments to the provision. After some discussion management essentially took the position that QPP was a “take it or leave it” provision. Because QPP had the potential to put money into the pockets of many Flight Attendants, the Negotiating Committee accepted the QPP language as it was.

 

* * *

 

Please contact a Local Executive Council (LEC) officer if you believe you are eligible for the Q2 QPP and you do not receive the payment as scheduled on August 5, 2015; if you believe you are eligible for the Q1 QPP retro payment and do not receive one by September 30, 2015; or if you have any general questions or concerns about the QPP settlement.

 

 

In Solidarity,

 

Your MEC – Jeffrey Peterson, Brian Palmer, Yvette Gesch, Becky Strachan, Laura Masserant, Cathy Gwynn, Sandra Morrow, Stephen Couckuyt; MEC Grievance chairperson Jennifer Wise MacColl; and AFA Senior Staff Attorney Kimberley Chaput

Your Contract Committee – MEC President Jeffrey Peterson, Kristy Stratton, Lisa Pinkston, Jake Jones, Christina Frees and AFA Senior Staff Negotiator Paula Mastrangelo

36-99-2-26-15 Quarterly Productivity Premium Settlement Final Signed

AFA Alaska

401(k) Contribution for the Quarterly Productivity Premium (QPP)

Management and AFA Making Progress on Disputes Related to the Quarterly Productivity Premium (QPP)

Alaska Airlines management and AFA have been in discussions regarding several disputes associated with the Quarterly Productivity Premium (QPP) (see also the June 12th “Where is the Printed Contract?” and/or the “Quarterly Productivity Premium (QPP) Update – April 24, 2015” for more background). After months of back and forth, the parties are now making swift progress towards resolving those disputes.

One aspect of the QPP dispute is in relation to 401(k) contributions

One aspect of the QPP dispute is in relation to 401(k) contributions. At one point management held the position that QPP was not eligible earning for 401(k). We are pleased to report that going forward management has agreed all QPP payouts will be considered eligible earnings for 401(k).

Today’s paycheck contains a make-whole contribution to 401(k) based on Q1 QPP

AFA received “notice” only this morning that the June 19th (today’s) paycheck contains an additional make-whole contribution to 401(k) for those who received the QPP from the first quarter (Q1) (paid on May 5th). That means any Flight Attendant who achieved the Q1 QPP of $500 received an additional pre-tax contribution to 401(k) of $35 on top of your normal 401(k) contribution on today’s paycheck. (This is assuming you are contributing 7% of your earnings to 401(k), which you all should be doing with few exceptions!) You should have also received an additional $35 Company match on top of the normal Company match. In other words, your total 401(k) contribution will be proportionately higher on this check than usual. This is a really good thing—except for the lack of notice!

Roth 401(k) tax implications

For those of you who participate in the Roth 401(k) option, additional funds were withheld for taxes on your portion of the Roth 401(k) contribution at your personal tax rate. On an additional $35 contribution, that would translate to as much as $9 or so more than your usual withholdings based on the higher income tax brackets.

Normal 401(k) contributions on QPP earnings will be paid in Q2 going forward

Beginning with the second quarter QPP payout (Q2 = April, May, June) on August 5th, 401(k) contributions based on QPP earnings will be made normally.

* * *

AFA would have passed this information along to you sooner had we been provided sufficient notice. We will continue to update you on any developments with the QPP disputes as we resolve them.

In Solidarity,

Your MEC – Jeffrey Peterson, Brian Palmer, Yvette Gesch, Becky Strachan, Laura Masserant, Cathy Gwynn, Sandra Morrow, Stephen Couckuyt; and MEC Grievance chairperson Jennifer Wise MacColl

MEC 5B Logo

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