Originally Posted by Disappointment

Alaska Pilots,

As you heard Ben say at our last all-company webcast, getting a new contract that supports greater flexibility, better benefits and increased pay is a top priority. To reinforce this priority, this week we provided your ALPA negotiating team with an industry competitive comprehensive proposal covering all open items. This package includes generous, previously presented elements along with new proposals we are excited to introduce, including wages.

This comprehensive package is designed to move us toward a final agreement. Rather than the possibility of another 12-18 months of mediation, we’d all like to be working under a new agreement as soon as possible.

Highlights of Our Comprehensive Proposal
• Wages: Increased rates in line with the industry and includes a mechanism that ensures your pay remains competitive with your peers.
Top of scale captain rate of $280.00 (+5.1%) at date of signing
New hire FO rate of $100.00 (#1 new hire rate in the industry)
• Slope: Aligns years of service step increase with industry norms.
Captains up to a 12.7% rate increase, depending on step
FOs up to an 7.9% rate increase, depending on step
• 5-year agreement
2% annual downline increases
A one-time market review will occur 12-months after the date of ratification. For that annual increase you will either receive a 2% increase or the benefit of the calculated market review increase at that time, whichever is greater.
This market review is designed to prevent your wages from falling behind industry peers as other airlines complete their negotiations over the next several months.
• Scheduling and work rules: Greater flexibility to improve your quality of life.
Transition to a preferential bidding system (PBS) as soon as possible (est. 18-24 months)
Facilitated through your ALPA committees working together with the company team to establish guidelines and rules for PBS implementation.
Gains in guaranteed pay, schedule disruption premium, schedule flexibility, lodging and meals, vacation credit, holiday pay and more.
• Scope: Job security for you as we grow our company.
Any aircraft operated on behalf of Alaska Air Group over 76 seats will be flown by Alaska Airlines seniority list pilots.
Additional merger and other transaction process improvements, including block hour, fence, and furlough protections.

We’ve shared with ALPA our desire to meet as frequently as possible over the coming weeks and we look forward to working with your ALPA MEC and negotiating committee to reach a final agreement. This comprehensive proposal modernizes our contract and maintains the central tenets of our successful business model:

A well-compensated workforce and market competitive productivity
A competitive network enhanced by regional and global partners that connect our guests to the world
An efficient and productive fleet—We will take delivery of as many as 145 Boeing 737 MAX aircraft to grow our company by up to 40% over the next 4 years

We’ve seen this model successfully grow our company, allowing us to compete and secure the collective future for all employees. We are proud of this proposal and are confident we can reach a deal.

We are sharing the details of these improvements with you as they are important to your future and our company’s future. To help you learn more about the improvements in this proposal, we’ve set up a website aspilotnegotiations.com that you can access. We encourage you to review this content. You can access a summary of our proposal via the term sheet.

We will provide you with updates as negotiations continue. In the meantime, thank you for taking the time to familiarize yourselves with our comprehensive proposal.

Respectfully,

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VP, Flight Operations

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VP, Labor Relations

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Managing Director, Labor Relations

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Managing Director, Financial Planning & Analysis