More details
These are the principal components of APA’s non-variable pay proposal.
Pay Rates: Increase all hourly pay rates 30.5 percent from the 5/1/2008 book rates on the date of signing.
Annual Pay Raise: Increase all hourly pay rates five percent annually thereafter for the life of a 36-month agreement.
Extended Pay Rates: Increase all hourly pay rates six percent annually from the amendable date of the contract being negotiated
now until the following contract is signed.
Retroactivity: All pay rate increases are to be retroactive to 5/1/2008 should this agreement not be complete by that date.
Signing Bonus: Pay a signing bonus of 15 percent of W2 income from 7/21/2006 (the date management opened on us) to the date of signing of this new contract.
The ancillary elements of APA’s pay proposal include:
New Hire Pay: Increase new hire pay to $4000 per month
Pay Date: Change pay dates so that 50 percent of pay is paid at the end of the current month with the balance paid by the 15th of the following month.
Night Differential: Increase Captain night differential to $6.50.
Premium Pay: Double time (200 percent of hourly rate) for all flying done on major holidays.
International Override: Increase International Override pay to $10/hour for Captains and $8/hour for First Officers.
Per Diem: Increase Per Diem to $3/hour International and $2.15 Domestic. Annual increases of $0.25 (international) and $0.10 (domestic) thereafter.
Over the next several days, you will receive additional information about this proposal, including an expanded discussion of the rationale for APA’s proposal. This Non-Variable Compensation package will be posted to the APA Web site and mailed to each member’s home. You may be approached by employees from other work groups when they hear of this proposal. So that you may communicate effectively, we’ve provided a summation of our rationale in advance of the more detailed explanation.
Principal Components
Pay Rates: 30.5 percent will restore our pay rates to those in effect prior to the pay cuts in 2003 adjusted for inflation (the calculations and methodology used to arrive at that number will be in the mailer). This equates to a 6.9 percent increase compounded annually since 2003. Contrast this with management’s effective 80 percent compound annual increases over the same period.
Annual Pay Raise: Your Board of Directors has chosen five percent to cover not only inflation, but the effects of long-term stagnation that our pilots have experienced in pay rates over the last decade.
Extended Pay Rates: Because contracts take a lot longer to negotiate than most of us would prefer, annual pay increases of six percent for each year after the amendable date of the next agreement are included to insulate the membership from a slow negotiating process.
Retroactivity: This is protection against a slower than necessary process in this negotiation.
Signing Bonus: Since 2003 our pilots have each lost, in aggregate, more than a year’s pay. This signing bonus is designed to return at least some measure of our investment, while most stakeholders (other than employees) have already realized returns representing multiples of their sacrifice.
Ancillary elements
New Hire Pay: For far too long, pilots have been required to essentially donate a year of their service before “real” pay begins in the second year. This proposal attempts to right this wrong in full anticipation that we will, indeed, be hiring again.
Pay Dates: Under our current contract, AMR gets free use of our accumulated wages for a period of 25 to 55 days every month. This proposal moves the time work is done and the the it is paid closer together.
Night Differential: Increase night differential pay from $5.00 to $6.50 for Captains and commensurately for First Officers, which is more in line with other airlines.
Premium Pay: Double time pay for holidays is consistent with pay practices in many companies. Management takes these days off with pay. This proposal rewards those who are needed to keep the airline operating on holidays.
International Override: This proposal moves AA more in line with other companies.
Per Diem: Self explanatory.