American Airlines Negotiations
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June 2010 | Third Edition
As we continue our negotiations with the Association of Professional Flight Attendants, it is important to keep you informed about the developments at the table.
Our last round of talks with APFA wrapped up on May 21, following three days of negotiations in Washington, D.C. During those sessions, the company made several proposals that made significant steps toward the union in the areas of compensation, healthcare, hours of service and scheduling.
We’ve put a solid proposal on the table with real wage increases – a 3% contract signing bonus plus structural pay increases that compound to 9.9% over five years.
In return, we are asking to raise the monthly schedule maximum for flight attendants. We first proposed to increase the maximum to 95 hours and then later reduced our proposal to 92.5 hours. But in the interest of trying to reach agreement, we have now lowered our proposal to an 89-hour monthly max for domestic and international – which would begin year two of the contract. We’ve also improved our proposal on sequence pay protection to include carry-over time, and moved toward the union’s position on health benefits and retiree medical.
The APFA proposal, as it now stands, would cost the company additional hundreds of millions of dollars and result in a long-term cost we can’t sustain. But with additional work at the table, we are confident that we can reach an agreement that provides important improvements for flight attendants while making essential changes that help us become more efficient and more flexible in our operations. Please read the highlights of our proposals which reflect our ongoing efforts to reach agreement on a new contract with APFA for you.
Thank you,
Mark Burdette
Vice President, Employee Relations
Key Company proposals to APFA
The proposals are subject to change as the give-and-take process of negotiations continues. Here's a look at key highlights from our latest proposal compared to what's in place today. It’s important to note the teams have agreed that American’s proposed productivity enhancements would not directly result in furloughs.
- Article 3 – Compensation
- Article 4 – Expenses
- Article 6 – Vacation
- Article 7 – Hours of Service
- Article 9 – Scheduling
- Article 26 – Sick Leave
- Article 35 – Group Life and Health Benefit Plan
- Article 36 – Retirement Benefit Plans
Key Tentative Agreements
The company and the APFA have tentatively agreed to 28 of the 38 total contract articles. As included in the previous newsletter, here are a few of those articles along with what the company understands are the key agreed-upon changes.
- Article 5 – Uniforms & Accessories
- Article 10 – Reserve
- Article 13 – Seniority General
- Article 16 – Reduction in Force
- Article 22 – Training and Meetings (NEW)
- Article 25 – Exchange of Trips
Please click here to view the company's latest proposal presented to APFA May 21, 2010.
