What is the gist of the latest proposal?
01-03-2015, 04:28 AM
#1
Gets Weekends Off
Thread Starter
Joined APC: Jan 2008
Posts: 400
What is the gist of the latest proposal?
For those of us from other majors who are wondering what is going on on the AA side can anybody recap the general points of AA's latest proposal?
Scope, Pay, work rules etc? It's a bit murky digging through endless posts trying to piece it together.
cheers.
Scope, Pay, work rules etc? It's a bit murky digging through endless posts trying to piece it together.
cheers.
01-03-2015, 04:50 AM
#2
Gets Weekends Off
Joined APC: Nov 2014
Posts: 1,238
Originally Posted by dvhighdrive88
For those of us from other majors who are wondering what is going on on the AA side can anybody recap the general points of AA's latest proposal?
Scope, Pay, work rules etc? It's a bit murky digging through endless posts trying to piece it together.
cheers.
Scope, Pay, work rules etc? It's a bit murky digging through endless posts trying to piece it together.
cheers.
Here is all we have from the Company. The union doesn't talk to the "membership We are beneath their all knowing intellect.
Scott Kirby
President
December 23, 2014
Dear Pilots:
We have two separate announcements related to our pilots that I wanted to share with you. First, American Airlines has sent a proffer of arbitration to the APA today. Negotiations for a joint collective bargaining agreement have concluded, and an arbitration panel has been designated to establish the terms of that agreement. Although we have offered a proposal that is better than what will be achieved through arbitration, the APA Board of Directors is not yet comfortable accepting those terms or putting them out to its members for a vote. Both sides have worked hard to this point, but the last proposal we received from the APA was significantly more expensive than even their previous proposal and in negotiations that simply takes us backwards.
Separately, we announced a system-wide compensation program today that has been communicated to the APA and is now included in the offer we've made to the union. In recognition of the Company’s outstanding performance in the first year of our merger, we will increase the pay scales by 4 percentage points for union-represented groups who have achieved single agreements and for non-union employees below the director level. For our flight attendants, this means the contract ratified just last week will now be improved (subject to APFA approval) by another 4 percentage points in pay rates, bringing their hourly rates 7% higher than the flight attendant pay rates at the other large network airlines (Delta or United). As other workgroups reach single agreements, we expect to be able to deliver similar pay premiums versus our network peers. For pilots specifically, this means the Company’s proposal in regard to pay rates is now 7% higher on average than the rates in place at Delta.
While it may seem odd that we are proffering for arbitration at the same time our offer has been improved, the revised proposal presented by the APA last week was more expensive than even this enhanced offer and moving in the opposite direction. Though negotiations will not continue, our offer will remain open. We do not expect the arbitration process will begin until late February 2015 and we remain hopeful the APA will reconsider and accept our proposal before that time. Per an agreement with APA, if our offer is accepted prior to January 3, 2015, the higher pay rates would become effective December 2, 2014. If our offer is accepted after January 3, the rates would become effective in the bid period immediately following a ratified agreement.
I know there is a lot to absorb here and there has been some confusion about how it all works. So I wanted to take this opportunity to describe where we are and hopefully make things more clear.
Current Contract
As background for those not familiar with the details, the terms of our existing pilot contract (the Merger Transition Agreement or MTA) were agreed to by both pilot groups in early 2013. That contract becomes amendable in 2018. The MTA binds American and the APA to negotiate the terms of a JCBA, but provides that if we cannot reach a mutual agreement, then an arbitration panel will determine the JCBA terms for us.
In arbitration, the MTA stipulates that the arbitrators are required to reach a zero cost JCBA solution. Zero cost means that any improvement in one area of the contract has to be paid for dollar for dollar with another change somewhere else in the contract. As a result, the arbitrators will not be able to increase pay, offer profit sharing, or otherwise increase the total costs associated with the MTA. To be clear, there are significant pay scale
increases included in the MTA and arbitration will not change those rates. The MTA rates provide an increase of 3% on January 1, 2015, followed by moving to the average of Delta and United on January 1, 2016. Since both Delta and United have pilot contracts in place that do not become amendable until near or after this date (DL: 12/31/15, UA: 1/31/17), it is possible to calculate a reasonable estimate for this increase today. We estimate the 1/1/16 pay rate increase for our pilots under the current contract will be approximately 13%. There are additional 3.5% increases in January of 2017 and 2018.
Company Offer
While the existing contract provides for significant increases for our pilots over time, we have put forward an offer that provides much higher and earlier increases, in recognition of the important contributions our pilots have made to American’s early success since our merger. Our offer now includes a pay scale that provides pilots with increases of approximately 23% upon signing, bringing American’s pilots to rates 7% higher on average than Delta’s rates. This increase would be effective for the current December’s bid period – and we have told the APA we will maintain that effective date if the offer is accepted prior to January 3, 2015. If the offer is accepted after that date but before arbitration, the higher pay rates would be effective in the bid period following such an agreement. Under the offer, this initial pay increase would be followed by an annual 3% increase every January from 2015 through 2019. So, as it relates to near-term pay increases, our offer would increase pay rates by 23% in December 2014, 3% in January 2015 and 3% in January 2016 while the existing contract would increase rates by 0% in December 2014, 3% in January 2015 and approximately 13% in January 2016.
As to other contract provisions, our offer calls for a handful of changes that are appropriate for the new American and the expected hiring growth in pilots. Our offer also includes a number of non-wage enhancements that were made in response to requests by APA. The Company estimates the net economic impact of these non-wage items in total to be an increase in annual pilot costs of approximately $20 million over five years. In an arbitrated award, these enhancements would likely go away, as they would have to be offset by reductions elsewhere in the contract.
Summary
I realize this is a lot of detail to summarize in a two page letter, and included here are three pages with additional detail on the rate comparisons as well as the other contract changes included in our offer. Bottom line, the Company is doing exceedingly well in its first year, and we should all share in that success. We believe it is unprecedented for an airline to offer 23% pay increases four years before the amendable date, but we believe this is the right thing to do. We were hopeful to reach agreement with APA prior to requesting arbitration, but unfortunately our recent negotiations seemed to widen the gulf between the parties. As we all now turn our attention to the arbitration, our offer will remain on the table.
Thank you for taking the time to understand the facts, and for all you are doing to lead American to greatness. We know you are proud of your profession and your airline, and we are, too. We all share the same goals: reach a joint contract and continue working hard to return American to greatness. Thank you for your leadership out on the line.
Scott
Captain Pay Scales
Group III (B757/B767)Group IV (A330, B777/B787)YOSCurrent1/1/151/1/16Current1/1/151/1/16Current1/1/151/1/16Current1/1/151/1/161------------2113.91117.33128.96167.51172.54199.07180.58186.002 06.62212.81219.19247.393114.83118.28130.01168.8717 3.94200.69182.04187.51208.30214.53220.97249.404115 .76119.23131.05170.23175.34202.30183.51189.01209.9 7216.26222.75251.415116.68120.18132.10171.59176.74 203.92184.97190.52211.65217.98224.52253.416117.601 21.13133.14172.95178.14205.53186.44192.03213.32219 .71226.30255.427118.53122.08134.19174.31179.53207. 14187.90193.54215.00221.43228.08257.428119.45123.0 3135.23175.66180.93208.76189.37195.05216.67223.162 29.85259.439120.37123.99136.28177.02182.33210.3719 0.83196.55218.35224.89231.63261.4410121.30124.9413 7.33178.38183.73211.99192.29198.06220.03226.61233. 41263.4411122.22125.89138.37179.74185.13213.60193. 76199.57221.70228.34235.19265.4512123.15126.84139. 42181.10186.53215.22195.22201.08223.38230.06236.96 267.45Group II (Narrowbody)Group III (B757/B767)Group IV (A330, B777/B787)YOS12/2/141/1/151/1/1612/2/141/1/151/1/1612/2/141/1/151/1/1612/2/141/1/151/1/161132.95136.94141.05202.37208.44214.69213.66220.0 7226.67253.50261.11268.942133.95137.97142.11204.02 210.15216.45215.47221.93228.59255.56263.23271.1231 35.06139.11143.28205.68211.85218.20217.22223.74230 .45257.65265.38273.344136.15140.23144.44207.36213. 58219.99218.97225.54232.31259.72267.51275.545137.1 8141.30145.54209.07215.35221.81220.84227.47234.292 61.79269.65277.746138.30142.45146.72210.75217.0722 3.59222.56229.23236.11263.86271.78279.937139.37143 .55147.86212.41218.78225.35224.21230.94237.86265.9 3273.91282.138140.48144.69149.03214.10220.52227.14 226.06232.85239.83268.00276.04284.329141.55145.801 50.17215.76222.24228.90227.67234.50241.54270.08278 .18286.5310142.65146.93151.34217.56224.09230.81230 .12237.02244.13272.14280.30288.7111143.77148.08152 .52219.39225.97232.75232.59239.56246.75274.21282.4 4290.9112144.83149.18153.65221.20227.84234.67234.9 9242.04249.30276.28284.57293.11Group I (E190)Group II (Narrowbody)AA MTA WagesGroup I
(
E190)Proposal Wages
First Officer Pay Scales
Note: Per the MTA, the 1/1/2016 Industry Comparable Pay Rates above are calculated based on the process set forth in Supplement A. The United contract does not become amendable until 1/31/2017 and the Delta contract becomes amendable on 12/31/2015. The 2016 rates above assume no changes are made to the contract pay rates at either carrier by 1/1/2016.
Group I (E190)Group II (Narrowbody)Group III (B757/B767)Group IV (A330, B777/B787)YOSCurrent1/1/151/1/16Current1/1/151/1/16Current1/1/151/1/16Current1/1/151/1/16140.0040.0040.0040.0040.0040.0040.0040.0040.0040 .0040.0040.00256.9558.6664.4883.7686.2799.5490.299 3.00103.31106.40109.60123.70368.9070.9778.00101.32 104.36120.41109.23112.50124.98128.72132.58149.6447 0.6172.7379.94103.84106.96123.40111.94115.30128.08 131.92135.87153.36572.3474.5181.90106.39109.58126. 43114.68118.12131.22135.15139.20157.12674.0976.318 3.88108.96112.23129.48117.46120.98134.39138.42142. 57160.91775.8678.1385.88111.56114.90132.57120.2612 3.86137.60141.72145.97164.75877.6479.9787.90114.18 117.61135.69123.09126.78140.84145.05149.41168.6398 0.0582.4590.63117.72121.25139.90126.90130.71145.20 149.55154.04173.851081.8884.3392.70120.41124.02143 .09129.80133.69148.52152.96157.55177.821183.1185.6 094.09122.22125.89145.25131.76135.71150.76155.2715 9.93180.501283.7486.2594.80123.15126.84146.35132.7 5136.73151.90156.44161.14181.87Group I (E190)Group II (Narrowbody)Group III (B757/B767)Group IV (A330, B777/B787)YOS12/2/141/1/151/1/1612/2/141/1/151/1/1612/2/141/1/151/1/1612/2/141/1/151/1/16172.8575.0477.2972.8575.0477.2972.8575.0477.2972 .8575.0477.29272.8575.0477.29109.15112.43115.80115 .27118.73122.29136.72140.83145.05383.8786.3988.981 27.73131.56135.51134.89138.94143.11160.01164.81169 .75485.9188.4991.14130.84134.77138.81138.17142.311 46.58163.88168.80173.86587.9590.5993.30134.02138.0 4142.18141.55145.80150.17167.80172.83178.02690.179 2.8895.67137.40141.52145.77145.10149.46153.94172.0 4177.20182.52792.6995.4798.33141.25145.49149.85149 .10153.58158.18176.84182.14187.61894.8397.67100.60 144.52148.86153.32152.59157.17161.88180.90186.3319 1.92995.8398.71101.67146.08150.46154.97154.15158.7 8163.54182.84188.33193.981097.15100.06103.06148.15 152.60157.17156.71161.41166.25185.33190.89196.6211 98.06101.00104.03149.62154.11158.73158.62163.38168 .28187.01192.62198.401298.91101.88104.93151.08155. 61160.28160.50165.32170.27188.70194.36200.20AA MTA WagesProposal Wages
Non-Wage Items
There are a number of non-wage items included in the Company proposal. Some items are proposals made by the Company to better facilitate growth at American and improve reliability across the operation. Others are the result of proposals made by the APA. The Company estimates the net economic impact of these non-wage items in total to be an increase in annual pilot costs of approximately $20 million over five years.
Proposals in Response to APA requests
1.) Length of Service Credit – Provide two years of seniority credit for active pilots that were previously furloughed
2.) Duty Rig Improvements – Increase the value of the minimum duty rig to 5 hours and 10 minutes from 5 hours
3.) International Override – Expand the international override to all Mexico flying
4.) Uniforms – The Company will provide uniforms to all new hires
5.) Moving Expenses – Increase relocation payments to pilots relocating from one domicile to another
6.) Passport Reimbursement – Reimburse pilots for obtaining a required passport or visa
7.) Sick Leave Process – Allow pilots to choose the number of sick hours used prior to receiving long-term disability benefits
8.) Paycheck Process – Move all pilots to the current Legacy US Airways pay advance (approximately one-half of previous month’s earnings instead of the flat $1,000 currently in the MTA)
9.) Post Training Rest without Duty Free Period – Provide 12 hours of rest following training for those pilots who aren’t scheduled for an immediate day off
10.) Furlough Pay – Increase furlough pay to a maximum of 5 months, which is the current Legacy US Airways East process
11.) Health Retirement Account – Expand the use of the notional money pilots receive as part of the program, so a pilot has the ability to be reimbursed for more medical expenses incurred than the current program. Also extended the duration of the program through 2019.
Company Proposals the APA Has Not Agreed To
1.) One Year Extension to the Duration of the Contract – The Company proposal extends the duration of the current contract by one year to 12/31/2019
2.) Vacancy Bids/Hold from Training – Proposal to allow vacancy bids to cover multiple months to improve efficiency in training plans for pilots moving to new equipment types and provide pilots better flexibility in planning bids and training
3.) Combining of International and Domestic Divisions – The Company proposes combining the separate international and domestic bids into a single bid
4.) Short Call Report Time – The Company proposes changing the “reasonably available” language to the “available promptly” which is the same language as in the Delta contract
5.) Overnight Simulator Sessions for Landing Currency – The Company proposes overnight simulator training sessions for pilots who are close to losing his/her landing currency or need to regain landing currency. These training sessions would only be utilized if no other simulator time is available during the day.
6.) Benefits Excise Tax – Proposal to define a process that creates a structured review of medical plans that may be subject to the 2018 excise tax under the Patient Protection and Affordable Care Act
7.) Elimination of Home Based Time (HBT) exception from FAR 117 – Eliminate the exception that HBT does not align with FAR 117. The FAR 117 limitations require that a pilot is scheduled for duty periods based on the theater in which they are acclimated. For example, if a pilot is acclimated (36 hours) to local time in Hong Kong, the FAR 117 tables outline the duty period for such pilot who begins duty based on local time in Hong Kong, not the pilot’s Home Base Time, which in our case could be local time in Dallas.
President
December 23, 2014
Dear Pilots:
We have two separate announcements related to our pilots that I wanted to share with you. First, American Airlines has sent a proffer of arbitration to the APA today. Negotiations for a joint collective bargaining agreement have concluded, and an arbitration panel has been designated to establish the terms of that agreement. Although we have offered a proposal that is better than what will be achieved through arbitration, the APA Board of Directors is not yet comfortable accepting those terms or putting them out to its members for a vote. Both sides have worked hard to this point, but the last proposal we received from the APA was significantly more expensive than even their previous proposal and in negotiations that simply takes us backwards.
Separately, we announced a system-wide compensation program today that has been communicated to the APA and is now included in the offer we've made to the union. In recognition of the Company’s outstanding performance in the first year of our merger, we will increase the pay scales by 4 percentage points for union-represented groups who have achieved single agreements and for non-union employees below the director level. For our flight attendants, this means the contract ratified just last week will now be improved (subject to APFA approval) by another 4 percentage points in pay rates, bringing their hourly rates 7% higher than the flight attendant pay rates at the other large network airlines (Delta or United). As other workgroups reach single agreements, we expect to be able to deliver similar pay premiums versus our network peers. For pilots specifically, this means the Company’s proposal in regard to pay rates is now 7% higher on average than the rates in place at Delta.
While it may seem odd that we are proffering for arbitration at the same time our offer has been improved, the revised proposal presented by the APA last week was more expensive than even this enhanced offer and moving in the opposite direction. Though negotiations will not continue, our offer will remain open. We do not expect the arbitration process will begin until late February 2015 and we remain hopeful the APA will reconsider and accept our proposal before that time. Per an agreement with APA, if our offer is accepted prior to January 3, 2015, the higher pay rates would become effective December 2, 2014. If our offer is accepted after January 3, the rates would become effective in the bid period immediately following a ratified agreement.
I know there is a lot to absorb here and there has been some confusion about how it all works. So I wanted to take this opportunity to describe where we are and hopefully make things more clear.
Current Contract
As background for those not familiar with the details, the terms of our existing pilot contract (the Merger Transition Agreement or MTA) were agreed to by both pilot groups in early 2013. That contract becomes amendable in 2018. The MTA binds American and the APA to negotiate the terms of a JCBA, but provides that if we cannot reach a mutual agreement, then an arbitration panel will determine the JCBA terms for us.
In arbitration, the MTA stipulates that the arbitrators are required to reach a zero cost JCBA solution. Zero cost means that any improvement in one area of the contract has to be paid for dollar for dollar with another change somewhere else in the contract. As a result, the arbitrators will not be able to increase pay, offer profit sharing, or otherwise increase the total costs associated with the MTA. To be clear, there are significant pay scale
increases included in the MTA and arbitration will not change those rates. The MTA rates provide an increase of 3% on January 1, 2015, followed by moving to the average of Delta and United on January 1, 2016. Since both Delta and United have pilot contracts in place that do not become amendable until near or after this date (DL: 12/31/15, UA: 1/31/17), it is possible to calculate a reasonable estimate for this increase today. We estimate the 1/1/16 pay rate increase for our pilots under the current contract will be approximately 13%. There are additional 3.5% increases in January of 2017 and 2018.
Company Offer
While the existing contract provides for significant increases for our pilots over time, we have put forward an offer that provides much higher and earlier increases, in recognition of the important contributions our pilots have made to American’s early success since our merger. Our offer now includes a pay scale that provides pilots with increases of approximately 23% upon signing, bringing American’s pilots to rates 7% higher on average than Delta’s rates. This increase would be effective for the current December’s bid period – and we have told the APA we will maintain that effective date if the offer is accepted prior to January 3, 2015. If the offer is accepted after that date but before arbitration, the higher pay rates would be effective in the bid period following such an agreement. Under the offer, this initial pay increase would be followed by an annual 3% increase every January from 2015 through 2019. So, as it relates to near-term pay increases, our offer would increase pay rates by 23% in December 2014, 3% in January 2015 and 3% in January 2016 while the existing contract would increase rates by 0% in December 2014, 3% in January 2015 and approximately 13% in January 2016.
As to other contract provisions, our offer calls for a handful of changes that are appropriate for the new American and the expected hiring growth in pilots. Our offer also includes a number of non-wage enhancements that were made in response to requests by APA. The Company estimates the net economic impact of these non-wage items in total to be an increase in annual pilot costs of approximately $20 million over five years. In an arbitrated award, these enhancements would likely go away, as they would have to be offset by reductions elsewhere in the contract.
Summary
I realize this is a lot of detail to summarize in a two page letter, and included here are three pages with additional detail on the rate comparisons as well as the other contract changes included in our offer. Bottom line, the Company is doing exceedingly well in its first year, and we should all share in that success. We believe it is unprecedented for an airline to offer 23% pay increases four years before the amendable date, but we believe this is the right thing to do. We were hopeful to reach agreement with APA prior to requesting arbitration, but unfortunately our recent negotiations seemed to widen the gulf between the parties. As we all now turn our attention to the arbitration, our offer will remain on the table.
Thank you for taking the time to understand the facts, and for all you are doing to lead American to greatness. We know you are proud of your profession and your airline, and we are, too. We all share the same goals: reach a joint contract and continue working hard to return American to greatness. Thank you for your leadership out on the line.
Scott
Captain Pay Scales
Group III (B757/B767)Group IV (A330, B777/B787)YOSCurrent1/1/151/1/16Current1/1/151/1/16Current1/1/151/1/16Current1/1/151/1/161------------2113.91117.33128.96167.51172.54199.07180.58186.002 06.62212.81219.19247.393114.83118.28130.01168.8717 3.94200.69182.04187.51208.30214.53220.97249.404115 .76119.23131.05170.23175.34202.30183.51189.01209.9 7216.26222.75251.415116.68120.18132.10171.59176.74 203.92184.97190.52211.65217.98224.52253.416117.601 21.13133.14172.95178.14205.53186.44192.03213.32219 .71226.30255.427118.53122.08134.19174.31179.53207. 14187.90193.54215.00221.43228.08257.428119.45123.0 3135.23175.66180.93208.76189.37195.05216.67223.162 29.85259.439120.37123.99136.28177.02182.33210.3719 0.83196.55218.35224.89231.63261.4410121.30124.9413 7.33178.38183.73211.99192.29198.06220.03226.61233. 41263.4411122.22125.89138.37179.74185.13213.60193. 76199.57221.70228.34235.19265.4512123.15126.84139. 42181.10186.53215.22195.22201.08223.38230.06236.96 267.45Group II (Narrowbody)Group III (B757/B767)Group IV (A330, B777/B787)YOS12/2/141/1/151/1/1612/2/141/1/151/1/1612/2/141/1/151/1/1612/2/141/1/151/1/161132.95136.94141.05202.37208.44214.69213.66220.0 7226.67253.50261.11268.942133.95137.97142.11204.02 210.15216.45215.47221.93228.59255.56263.23271.1231 35.06139.11143.28205.68211.85218.20217.22223.74230 .45257.65265.38273.344136.15140.23144.44207.36213. 58219.99218.97225.54232.31259.72267.51275.545137.1 8141.30145.54209.07215.35221.81220.84227.47234.292 61.79269.65277.746138.30142.45146.72210.75217.0722 3.59222.56229.23236.11263.86271.78279.937139.37143 .55147.86212.41218.78225.35224.21230.94237.86265.9 3273.91282.138140.48144.69149.03214.10220.52227.14 226.06232.85239.83268.00276.04284.329141.55145.801 50.17215.76222.24228.90227.67234.50241.54270.08278 .18286.5310142.65146.93151.34217.56224.09230.81230 .12237.02244.13272.14280.30288.7111143.77148.08152 .52219.39225.97232.75232.59239.56246.75274.21282.4 4290.9112144.83149.18153.65221.20227.84234.67234.9 9242.04249.30276.28284.57293.11Group I (E190)Group II (Narrowbody)AA MTA WagesGroup I
(
E190)Proposal Wages
First Officer Pay Scales
Note: Per the MTA, the 1/1/2016 Industry Comparable Pay Rates above are calculated based on the process set forth in Supplement A. The United contract does not become amendable until 1/31/2017 and the Delta contract becomes amendable on 12/31/2015. The 2016 rates above assume no changes are made to the contract pay rates at either carrier by 1/1/2016.
Group I (E190)Group II (Narrowbody)Group III (B757/B767)Group IV (A330, B777/B787)YOSCurrent1/1/151/1/16Current1/1/151/1/16Current1/1/151/1/16Current1/1/151/1/16140.0040.0040.0040.0040.0040.0040.0040.0040.0040 .0040.0040.00256.9558.6664.4883.7686.2799.5490.299 3.00103.31106.40109.60123.70368.9070.9778.00101.32 104.36120.41109.23112.50124.98128.72132.58149.6447 0.6172.7379.94103.84106.96123.40111.94115.30128.08 131.92135.87153.36572.3474.5181.90106.39109.58126. 43114.68118.12131.22135.15139.20157.12674.0976.318 3.88108.96112.23129.48117.46120.98134.39138.42142. 57160.91775.8678.1385.88111.56114.90132.57120.2612 3.86137.60141.72145.97164.75877.6479.9787.90114.18 117.61135.69123.09126.78140.84145.05149.41168.6398 0.0582.4590.63117.72121.25139.90126.90130.71145.20 149.55154.04173.851081.8884.3392.70120.41124.02143 .09129.80133.69148.52152.96157.55177.821183.1185.6 094.09122.22125.89145.25131.76135.71150.76155.2715 9.93180.501283.7486.2594.80123.15126.84146.35132.7 5136.73151.90156.44161.14181.87Group I (E190)Group II (Narrowbody)Group III (B757/B767)Group IV (A330, B777/B787)YOS12/2/141/1/151/1/1612/2/141/1/151/1/1612/2/141/1/151/1/1612/2/141/1/151/1/16172.8575.0477.2972.8575.0477.2972.8575.0477.2972 .8575.0477.29272.8575.0477.29109.15112.43115.80115 .27118.73122.29136.72140.83145.05383.8786.3988.981 27.73131.56135.51134.89138.94143.11160.01164.81169 .75485.9188.4991.14130.84134.77138.81138.17142.311 46.58163.88168.80173.86587.9590.5993.30134.02138.0 4142.18141.55145.80150.17167.80172.83178.02690.179 2.8895.67137.40141.52145.77145.10149.46153.94172.0 4177.20182.52792.6995.4798.33141.25145.49149.85149 .10153.58158.18176.84182.14187.61894.8397.67100.60 144.52148.86153.32152.59157.17161.88180.90186.3319 1.92995.8398.71101.67146.08150.46154.97154.15158.7 8163.54182.84188.33193.981097.15100.06103.06148.15 152.60157.17156.71161.41166.25185.33190.89196.6211 98.06101.00104.03149.62154.11158.73158.62163.38168 .28187.01192.62198.401298.91101.88104.93151.08155. 61160.28160.50165.32170.27188.70194.36200.20AA MTA WagesProposal Wages
Non-Wage Items
There are a number of non-wage items included in the Company proposal. Some items are proposals made by the Company to better facilitate growth at American and improve reliability across the operation. Others are the result of proposals made by the APA. The Company estimates the net economic impact of these non-wage items in total to be an increase in annual pilot costs of approximately $20 million over five years.
Proposals in Response to APA requests
1.) Length of Service Credit – Provide two years of seniority credit for active pilots that were previously furloughed
2.) Duty Rig Improvements – Increase the value of the minimum duty rig to 5 hours and 10 minutes from 5 hours
3.) International Override – Expand the international override to all Mexico flying
4.) Uniforms – The Company will provide uniforms to all new hires
5.) Moving Expenses – Increase relocation payments to pilots relocating from one domicile to another
6.) Passport Reimbursement – Reimburse pilots for obtaining a required passport or visa
7.) Sick Leave Process – Allow pilots to choose the number of sick hours used prior to receiving long-term disability benefits
8.) Paycheck Process – Move all pilots to the current Legacy US Airways pay advance (approximately one-half of previous month’s earnings instead of the flat $1,000 currently in the MTA)
9.) Post Training Rest without Duty Free Period – Provide 12 hours of rest following training for those pilots who aren’t scheduled for an immediate day off
10.) Furlough Pay – Increase furlough pay to a maximum of 5 months, which is the current Legacy US Airways East process
11.) Health Retirement Account – Expand the use of the notional money pilots receive as part of the program, so a pilot has the ability to be reimbursed for more medical expenses incurred than the current program. Also extended the duration of the program through 2019.
Company Proposals the APA Has Not Agreed To
1.) One Year Extension to the Duration of the Contract – The Company proposal extends the duration of the current contract by one year to 12/31/2019
2.) Vacancy Bids/Hold from Training – Proposal to allow vacancy bids to cover multiple months to improve efficiency in training plans for pilots moving to new equipment types and provide pilots better flexibility in planning bids and training
3.) Combining of International and Domestic Divisions – The Company proposes combining the separate international and domestic bids into a single bid
4.) Short Call Report Time – The Company proposes changing the “reasonably available” language to the “available promptly” which is the same language as in the Delta contract
5.) Overnight Simulator Sessions for Landing Currency – The Company proposes overnight simulator training sessions for pilots who are close to losing his/her landing currency or need to regain landing currency. These training sessions would only be utilized if no other simulator time is available during the day.
6.) Benefits Excise Tax – Proposal to define a process that creates a structured review of medical plans that may be subject to the 2018 excise tax under the Patient Protection and Affordable Care Act
7.) Elimination of Home Based Time (HBT) exception from FAR 117 – Eliminate the exception that HBT does not align with FAR 117. The FAR 117 limitations require that a pilot is scheduled for duty periods based on the theater in which they are acclimated. For example, if a pilot is acclimated (36 hours) to local time in Hong Kong, the FAR 117 tables outline the duty period for such pilot who begins duty based on local time in Hong Kong, not the pilot’s Home Base Time, which in our case could be local time in Dallas.
01-03-2015, 07:14 AM
#3
Gets Weekends Off
Joined APC: Oct 2005
Position: MD-11 FO
Posts: 2,180
Originally Posted by Route66
I've attached the .pdf version of the proposal since the posting here didn't really come out right.
Here is all we have from the Company. The union doesn't talk to the "membership We are beneath their all knowing intellect.
Here is all we have from the Company. The union doesn't talk to the "membership We are beneath their all knowing intellect.
01-03-2015, 08:55 AM
#4
Gets Weekends Off
Joined APC: Nov 2014
Posts: 1,238
Originally Posted by EMBFlyer
Or it could be that the management doesn't respect the union enough and the entire pilot group (including the APA BOD) found out about the deal in a story in the Dallas Morning News.
The APA has a huge disconnect with the rank and file as most can just read from here let alone the other web boards and the BOD discord.
01-03-2015, 10:50 AM
#5
Gets Weekends Off
Joined APC: Aug 2005
Position: Airbus
Posts: 634
Company final offer:
Delta+7% for 2015. 3% pay raises 2016-2020
No profit sharing at all
Sample pay rates:
A320/737 12 yr CA: $227
B75/76 12 yr CA: $242
A330/787/777/350 CA: $284 growing to $320/hr by 2020
A320/737 3rd year FO: $131
B75/76 5th year FO: $145
A330/787/777/350 7th year FO: $182
Large givebacks in work rules
Merging int/dom divisions, costing jobs
Giving company more leeway with vacancy bids, sim scheduling
Relief on home base time with FAR 117 to align with UA/DL for long haul
If this passes, we will be set up to trail Delta in compensation when you factor in no profit sharing and Delta most likely getting new JCBA this year or next.
No min calendar day
Green book AMR bankruptcy work rules
Many smart people think we can gain more leverage and hold their feet to the fire up until arbitration backstop is scheduled in late February.
Not looking good....but many rank and file are blinded by the pay rates. To get to Delta plus 7% means an immediate 23% "raise" which really isn't a raise, its an industry pay parity catch up.
Delta+7% for 2015. 3% pay raises 2016-2020
No profit sharing at all
Sample pay rates:
A320/737 12 yr CA: $227
B75/76 12 yr CA: $242
A330/787/777/350 CA: $284 growing to $320/hr by 2020
A320/737 3rd year FO: $131
B75/76 5th year FO: $145
A330/787/777/350 7th year FO: $182
Large givebacks in work rules
Merging int/dom divisions, costing jobs
Giving company more leeway with vacancy bids, sim scheduling
Relief on home base time with FAR 117 to align with UA/DL for long haul
If this passes, we will be set up to trail Delta in compensation when you factor in no profit sharing and Delta most likely getting new JCBA this year or next.
No min calendar day
Green book AMR bankruptcy work rules
Many smart people think we can gain more leverage and hold their feet to the fire up until arbitration backstop is scheduled in late February.
Not looking good....but many rank and file are blinded by the pay rates. To get to Delta plus 7% means an immediate 23% "raise" which really isn't a raise, its an industry pay parity catch up.
01-03-2015, 12:22 PM
#6
Gets Weekends Off
Joined APC: Dec 2010
Position: Reverse Cowgirl
Posts: 545
So what do you think will happen if it goes to arbitration ?
How will it be better than what's offered?
Serious question I'm not understanding the process here of how the pilots can come out ahead.
Looks like the Jan 3 deadline is here.
How will it be better than what's offered?
Serious question I'm not understanding the process here of how the pilots can come out ahead.
Looks like the Jan 3 deadline is here.
01-03-2015, 12:27 PM
#7
Gets Weekends Off
Joined APC: May 2007
Position: A320 CA
Posts: 1,530
Originally Posted by QuagmireGiggity
So what do you think will happen if it goes to arbitration ?
How will it be better than what's offered?
Serious question I'm not understanding the process here of how the pilots can come out ahead.
Looks like the Jan 3 deadline is here.
How will it be better than what's offered?
Serious question I'm not understanding the process here of how the pilots can come out ahead.
Looks like the Jan 3 deadline is here.
The idea is that management likes to play chicken with fake deadlines. We had deadlines in November...everything kept sliding back and management's offer kept improving.
This offer is on the table all the way through arbitration. Today's deadline is only for the Dec 2, 2014 retro.
01-03-2015, 12:36 PM
#8
Gets Weekends Off
Joined APC: Oct 2006
Posts: 945
Originally Posted by nwa757
Company final offer:
Delta+7% for 2015. 3% pay raises 2016-2020
No profit sharing at all
Sample pay rates:
A320/737 12 yr CA: $227
B75/76 12 yr CA: $242
A330/787/777/350 CA: $284 growing to $320/hr by 2020
A320/737 3rd year FO: $131
B75/76 5th year FO: $145
A330/787/777/350 7th year FO: $182
Large givebacks in work rules
Merging int/dom divisions, costing jobs
Giving company more leeway with vacancy bids, sim scheduling
Relief on home base time with FAR 117 to align with UA/DL for long haul
If this passes, we will be set up to trail Delta in compensation when you factor in no profit sharing and Delta most likely getting new JCBA this year or next.
No min calendar day
Green book AMR bankruptcy work rules
Many smart people think we can gain more leverage and hold their feet to the fire up until arbitration backstop is scheduled in late February.
Not looking good....but many rank and file are blinded by the pay rates. To get to Delta plus 7% means an immediate 23% "raise" which really isn't a raise, its an industry pay parity catch up.
Delta+7% for 2015. 3% pay raises 2016-2020
No profit sharing at all
Sample pay rates:
A320/737 12 yr CA: $227
B75/76 12 yr CA: $242
A330/787/777/350 CA: $284 growing to $320/hr by 2020
A320/737 3rd year FO: $131
B75/76 5th year FO: $145
A330/787/777/350 7th year FO: $182
Large givebacks in work rules
Merging int/dom divisions, costing jobs
Giving company more leeway with vacancy bids, sim scheduling
Relief on home base time with FAR 117 to align with UA/DL for long haul
If this passes, we will be set up to trail Delta in compensation when you factor in no profit sharing and Delta most likely getting new JCBA this year or next.
No min calendar day
Green book AMR bankruptcy work rules
Many smart people think we can gain more leverage and hold their feet to the fire up until arbitration backstop is scheduled in late February.
Not looking good....but many rank and file are blinded by the pay rates. To get to Delta plus 7% means an immediate 23% "raise" which really isn't a raise, its an industry pay parity catch up.
Somewhere in the tortured past, APA agreed (or was forced to agree) to a "cost neutral" contract, i.e., whatever comes out of all this the overall cost to the company cannot increase. Do I have that correct? And if so, why was this arrangement made? And assuming that's the situation, this whole thing will essentially result in a draw, yes? Raise pay rates, give up work rules. Hold the line on work rules, get less $$.
Tell me where I'm wrong...
01-03-2015, 12:39 PM
#9
Gets Weekends Off
Joined APC: Jan 2013
Position: Pitot heat, what's to eat?
Posts: 392
Originally Posted by QuagmireGiggity
So what do you think will happen if it goes to arbitration ?
How will it be better than what's offered?
1) It would expire a year earlier so we get to revisit the contract sooner.
2) It would preserve a provision which maintain staffing at a slightly higher level (more jobs) by keeping domestic and international divisions separate. There's also the HBT exception although it's unclear if that results in less or more jobs, since the company HBT proposal may result in more international flying overall.
3) It would maintain E190 pay at it's current ratio to Group II pay. The company's offer is a slightly lower pay ratio for the E190. (Note, however, that with the current company offer a E190 pilot will still make more money than with an arbitrated award, just that Group II will pay even more again.)
4) It would maintain our current reserve language (reasonably available via ground transportation) vs. "Promptly available". Net effect is unclear.
5) It would prevent midnight sims for landing currency.
Serious question I'm not understanding the process here of how the pilots can come out ahead.
Looks like the Jan 3 deadline is here.
Looks like the Jan 3 deadline is here.
It is my understanding that the Jan 3rd deadline is for the board to act, and if they chose to send it for member ratification the deadline will be extended to allow for voting.
01-03-2015, 12:43 PM
#10
Gets Weekends Off
Joined APC: May 2007
Position: A320 CA
Posts: 1,530
Originally Posted by ackattacker
It is my understanding that the Jan 3rd deadline is for the board to act, and if they chose to send it for member ratification the deadline will be extended to allow for voting.
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