APFA Negotiations

NEGOTIATIONS Updates

 

The updates section provides historical information about scheduled bargaining sessions.

View 2010 Updates   |   View 2009 Updates   |   View 2008 Updates

January 4-6, 2011

The company and APFA resumed mediated negotiations in Nashville, Tenn., this week under the guidance of Director of Mediation Larry Gibbons. At the request of the mediator, the parties began the session by reaching an agreement on which of the contract issues remained open, as well as each side’s position on those issues. Throughout the course of the week, the company offered proposals in the areas of pay, healthcare and reserve that moved toward the union. The parties also reached a tentative agreement on the outstanding elements of the contract article on Reserve. We remain committed and dedicated to this process in order to reach a new agreement with APFA.

We are awaiting next steps from the National Mediation Board, but it’s important to remember a release from mediation would only occur if the NMB believed that mediation would no longer be productive in reaching an agreement. This week, the company again demonstrated its willingness to continue to improve its last offer by addressing issues important to APFA. Unfortunately, APFA was unable to counter any of the proposals made by the company.

  

The company has real money on the table, and it is important to note that our comprehensive proposal is not zero-sum. Any flight attendant who flies at least 52 hours per month would have the ability to make more money than they do today, as well as receive increased sick and vacation time. While the week closed without the mediator scheduling new dates, we are hopeful to receive dates in the near future.

The company’s proposed areas this week are additions or clarifications to its comprehensive proposal presented May 2010 (the last time the company and APFA met).

Compensation – Training Pay

The company presented a compensation proposal specifically focusing on training pay in an effort to close out some of the other open compensation items on the table. The company proposal includes elements that American flight attendants don’t receive today, such as:

  • Pay All Training: $9.50/hour including Recurrent Training, Computer-Based Training and Recall Training for those currently on the furlough list. New hire and LOA Training would be excluded.
  • Pay Customer Service Training: $20.00/ hour (new)

 

To read this proposal, click here. To read highlights of the company’s entire compensation proposal, click here.

Active Medical

The company offered additional elements to its active health proposal. Understanding that a discount on employee + children active medical is very important to our employees, the company proposed a fourth tier of coverage highlighted below. Scroll down to see how these proposed changes would affect flight attendant net pay.

Employee Monthly Contributions for the $300 Deductible Contractual Option

Tier
2011
2012
2013
2014
2015
EE Only
$50.00
$60.00
$70.00
$80.00
$90.00
EE + child(ren)
$90.00
$110.00
$130.00
$150.00
$170.00
EE + Spouse/DP
$100.00
$120.00
$140.00
$160.00
$180.00
EE + Family
$150.00
$180.00
$210.00
$240.00
$270.00

Please note: After 2015, these rates will begin to reflect inflation, though any increase in monthly contribution would not exceed 10 percent per year.  

The company continues to propose:

  • A free PPO health plan that is compatible with a Health Savings Account (a core medical plan option). The employee monthly contributions for the core medical plan option are zero through 2015.
  • The four standard contractual options will be condensed to two: a $300 deductible plan and a free health plan that is compatible with a Health Savings Account.
  • 540 hour threshold with annual look-back (effective Aug. 31) to secure company contribution toward benefits.

Retiree Medical

The company offered simplifications and amended its proposal to retiree medical, eliminating the previously proposed sick-bank use for pre-65 coverage. Highlighted below are the changes proposed.

  • Current Retirees: No changes for current retirees. Also, no changes for FAs who notify the company they’d like to retire by 12/31/11. Actual separation date TBD by the company.
  • Current Employees: Prefunding will end and prefunding balances, averaging approx. $1,000 per FA, will be refunded.
  • Retiree Medical Coverage Age 55-64: Flight attendants and eligible family members will each pay the employee-only active medical $300 deductible plan option shown above.
  • Coverage once Medical Eligible (Age 65): The company will provide access to a guaranteed issue Medicare supplement plan with no company subsidy.
  • New Hires: Will receive guaranteed access at their expense for retiree medical coverage prior to and after age 65.


To read this proposal for active and retiree medical, click here.

While it is true we have asked for improvements in productivity (namely to the schedule max) and healthcare contributions that are more in line with the industry, our proposal provides that our flight attendants who fly at least 52 hours per month would make more money than they do today. In fact, our proposal offers pay increases that more than offset our proposed increase to health coverage for flight attendants. The chart below tells the story, using as an example a flight attendant with 15 years seniority who flies 82 hours per month. Here’s a look at our proposed pay increases – 9.9% compounded over five years – in relation to our healthcare proposal, taking the proposed active medical changes above into account.

  • The flight attendant electing coverage for employee-only would receive a net pay increase of 8.6% over five years.
  • The flight attendant electing coverage for themselves and a spouse/domestic partner would receive a net pay increase of 7.4% over five years.
  • The flight attendant electing coverage for themselves and one child would receive a net pay increase of 7.6% over five years.
  • The flight attendant electing coverage for themselves and more than one child would receive a net pay increase of 8.4% over five years.
  • The flight attendant electing coverage for themselves, spouse and children would receive a net pay increase of 5.7% over five years.

15-Year Domestic Flight Attendant 82 Hours Per Month

    2011 2012 2013 2014 2015 % Pay Increase
EE Only Salary $46,258 $48,126 $49,089 $50,071 $50,822 +9.9%
  Medical Coverage $471 $720 $840 $960 $1,080  
  Net $45,787 $47,406 $48,249 $49,111 $49,742 +8.6%
EE + Spouse/DP Salary $46,258 $48,126 $49,089 $50,071 $50,822 +9.9%
  Medical Coverage $936 $1,440 $1,680 $1,920 $2,160  
  Net $45,321 $46,686 $47,409 $48,151 $48,662 +7.4%
EE + 1 Child Salary $46,258 $48,126 $49,089 $50,071 $50,822 +9.9%
  Medical Coverage $936 $1,320 $1,560 $1,800 $2,040  
  Net $45,321 $46,806 $47,529 $48,271 $48,782 +7.6%
EE + Multiple Children Salary $46,258 $48,126 $49,089 $50,071 $50,822 +9.9%
  Medical Coverage $1,239 $1,320 $1,560 $1,800 $2,040  
  Net $45,019 $46,806 $47,529 $48,271 $48,782 +8.4%
EE + Spouse and Children Salary $46,258 $48,126 $49,089 $50,071 $50,822 +9.9%
  Medical Coverage $1,239 $2,160 $2,520 $2,880 $3,240  
  Net $45,019 $45,966 $46,569 $47,191 $47,582 +5.7%

*Assumes that flight attendant is currently on the $150 deductible standard plan and will migrate to the new $300 deductible standard plan.

 

Reserve Tentative Agreement

Though the company and APFA tentatively agreed to Article 10 – Reserve on May 29, 2009, there were areas still outstanding, specifically around am/pm reserve availability. This week, the company and APFA came to agreement on these areas and signed the remaining reserve items into the TA. The key points to note is that the parties clarified:

  • How many am/pm preferences would be offered at each base, and
  • Reserve obligations once confirmed for following day’s assignment.

 

To read the TA on Reserve’s outstanding items, click here.