Sign on/retention bonus
12-21-2022 | 03:44 PM
#191
Almost there
Joined: Apr 2021
Posts: 2,005
Likes: 137
Fellow pilots,
Recently, the company introduced its latest scheme to attract pilots and slow attrition at Frontier by offering $35,000 “signing bonuses” attached to a three-year employment commitment. ALPA opposes this ploy, as we believe that our airline’s inability to attract and retain pilots stems from a larger cultural problem that can only be addressed by an overhaul of management’s approach to labor relations. However, we feel it appropriate to leave the systemic problems aside for the moment and address just the bonus program.
First, pilots should be made aware of how the program was launched. Based on the rollout we are not certain management considered U.S. tax law when designing the program, which requires that participants sign a $35,000 promissory note. In fact, the first eligible new hires were still in ground school when the company demanded that they sign amended documents changing the terms of the agreement. Pilots were informed that they would now be charged interest on their “bonus” at a rate of 4.1%. In addition, each new hire pilot who accepts the funds will be charged income taxes on the $35,000 once their three-year commitment is complete and the promissory note is forgiven. Finally, any pilot who accepts this money and does not fulfill their obligation will not benefit from any proration of amount owed to the company.
More relevant to our current pilot group, the bonus program clearly violates Section 3.R of the CBA by offering a bonus to new hires, excluding all other Frontier pilots on the seniority list. Section 3.R. provides that, “Pilots of Frontier Airlines, Inc. shall participate in any Discretionary Bonus Program on the same terms and conditions of other non-management employees.” The unambiguous intent of this provision is for all pilots to be included in all bonus offerings that are provided to any employees of Frontier. The seemingly clever approach of giving a bonus in this way is merely an attempt to end-run around our CBA.
Furthermore, the bonus program violates the contract by circumventing LOA 4. This LOA, negotiated between Frontier and ALPA in 2019, allows the company to raise first-year hourly rates to 98.5% of second-year hourly rates. The intent of LOA 4 was to give the company the ability to attract pilots with increased pay in a manner that complies with the CBA. However, instead of utilizing the contractual mechanism already available to them within LOA 4, they chose to proceed in a manner that is not contractually compliant. Notably, the company has chosen not to raise new hire pay to the levels agreed to by ALPA under the LOA.
Frontier pilots flying the line are the backbone of this company, and the safe, efficient, and profitable operation of this airline falls squarely upon our shoulders. Management’s choice to flout our contract and dangle a one-time cash payment to entice new pilots while ignoring those already wearing a Frontier uniform is short-sighted and will do nothing to improve retention in this historic job market.
ALPA has filed an Association grievance challenging the bonus program. We continue to object to management’s attempts to gut the protections afforded by our CBA and will keep the pilot group updated as the process unfolds. As always, your continued professionalism will allow this pilot group to rise above. If you have any questions, please contact your elected representatives or send us a DART.
In unity,
FFT MEC
Recently, the company introduced its latest scheme to attract pilots and slow attrition at Frontier by offering $35,000 “signing bonuses” attached to a three-year employment commitment. ALPA opposes this ploy, as we believe that our airline’s inability to attract and retain pilots stems from a larger cultural problem that can only be addressed by an overhaul of management’s approach to labor relations. However, we feel it appropriate to leave the systemic problems aside for the moment and address just the bonus program.
First, pilots should be made aware of how the program was launched. Based on the rollout we are not certain management considered U.S. tax law when designing the program, which requires that participants sign a $35,000 promissory note. In fact, the first eligible new hires were still in ground school when the company demanded that they sign amended documents changing the terms of the agreement. Pilots were informed that they would now be charged interest on their “bonus” at a rate of 4.1%. In addition, each new hire pilot who accepts the funds will be charged income taxes on the $35,000 once their three-year commitment is complete and the promissory note is forgiven. Finally, any pilot who accepts this money and does not fulfill their obligation will not benefit from any proration of amount owed to the company.
More relevant to our current pilot group, the bonus program clearly violates Section 3.R of the CBA by offering a bonus to new hires, excluding all other Frontier pilots on the seniority list. Section 3.R. provides that, “Pilots of Frontier Airlines, Inc. shall participate in any Discretionary Bonus Program on the same terms and conditions of other non-management employees.” The unambiguous intent of this provision is for all pilots to be included in all bonus offerings that are provided to any employees of Frontier. The seemingly clever approach of giving a bonus in this way is merely an attempt to end-run around our CBA.
Furthermore, the bonus program violates the contract by circumventing LOA 4. This LOA, negotiated between Frontier and ALPA in 2019, allows the company to raise first-year hourly rates to 98.5% of second-year hourly rates. The intent of LOA 4 was to give the company the ability to attract pilots with increased pay in a manner that complies with the CBA. However, instead of utilizing the contractual mechanism already available to them within LOA 4, they chose to proceed in a manner that is not contractually compliant. Notably, the company has chosen not to raise new hire pay to the levels agreed to by ALPA under the LOA.
Frontier pilots flying the line are the backbone of this company, and the safe, efficient, and profitable operation of this airline falls squarely upon our shoulders. Management’s choice to flout our contract and dangle a one-time cash payment to entice new pilots while ignoring those already wearing a Frontier uniform is short-sighted and will do nothing to improve retention in this historic job market.
ALPA has filed an Association grievance challenging the bonus program. We continue to object to management’s attempts to gut the protections afforded by our CBA and will keep the pilot group updated as the process unfolds. As always, your continued professionalism will allow this pilot group to rise above. If you have any questions, please contact your elected representatives or send us a DART.
In unity,
FFT MEC
Say we win that grievance then what? Does everybody get a 35k check or do the newbies who got the check get that removed?
We have so many grievances and more are piling on quickly yet we aren’t seeing any results, that I know of. Forgive me since I have never had a union before but the whole idea of a Union and a CBA is seeming questionable right now. Personally I feel we should already be in court suing the company for harassment regarding the sick calls but again this is my first union and the overall process is still somewhat of a mystery to me.
12-21-2022 | 04:10 PM
#192
Line Holder
Joined: Mar 2018
Posts: 205
Likes: 9
Help me understand here…at least for the first class there is a clear and obvious violation since they were already employees. So we file a grievance and then what? What’s the timeline here?
Say we win that grievance then what? Does everybody get a 35k check or do the newbies who got the check get that removed?
We have so many grievances and more are piling on quickly yet we aren’t seeing any results, that I know of. Forgive me since I have never had a union before but the whole idea of a Union and a CBA is seeming questionable right now. Personally I feel we should already be in court suing the company for harassment regarding the sick calls but again this is my first union and the overall process is still somewhat of a mystery to me.
Say we win that grievance then what? Does everybody get a 35k check or do the newbies who got the check get that removed?
We have so many grievances and more are piling on quickly yet we aren’t seeing any results, that I know of. Forgive me since I have never had a union before but the whole idea of a Union and a CBA is seeming questionable right now. Personally I feel we should already be in court suing the company for harassment regarding the sick calls but again this is my first union and the overall process is still somewhat of a mystery to me.
12-21-2022 | 05:51 PM
#194
Line Holder
Joined: Oct 2013
Posts: 1,674
Likes: 0
the union is bound by the Railway Labor Act and under the Act, this is classified as a minor dispute and therefore subject to the grievance/arbitration process. If the union were to file a lawsuit, it would get dismissed at the first hearing. The union has in house counsel that advises them on issues like this. We probably ought to leave the lawyering up to them.
12-21-2022 | 07:19 PM
#195
Gets Weekends Off
Joined: Dec 2012
Posts: 2,769
Likes: 59
Help me understand here…at least for the first class there is a clear and obvious violation since they were already employees. So we file a grievance and then what? What’s the timeline here?
Say we win that grievance then what? Does everybody get a 35k check or do the newbies who got the check get that removed?
We have so many grievances and more are piling on quickly yet we aren’t seeing any results, that I know of. Forgive me since I have never had a union before but the whole idea of a Union and a CBA is seeming questionable right now. Personally I feel we should already be in court suing the company for harassment regarding the sick calls but again this is my first union and the overall process is still somewhat of a mystery to me.
Say we win that grievance then what? Does everybody get a 35k check or do the newbies who got the check get that removed?
We have so many grievances and more are piling on quickly yet we aren’t seeing any results, that I know of. Forgive me since I have never had a union before but the whole idea of a Union and a CBA is seeming questionable right now. Personally I feel we should already be in court suing the company for harassment regarding the sick calls but again this is my first union and the overall process is still somewhat of a mystery to me.
Sounds like there will be more than one grievance. Separate arguments with several possible outcomes as thier argued through the process.
12-21-2022 | 07:23 PM
#197
Gets Weekends Off
Joined: Dec 2012
Posts: 2,769
Likes: 59
12-21-2022 | 09:07 PM
#198
Gets Weekends Off
Joined: May 2008
Posts: 370
Likes: 1
From: F9 FO
If we wanted real change, we would try to get out from under the RLA. There is a less than zero percent chance of that happening. But, it should, we aren't running 1800s steam powered choo choos here.
12-22-2022 | 03:11 AM
#199
Gets Weekends Off
Joined: Nov 2022
Posts: 295
Likes: 0
From: A320 FO
Help me understand here…at least for the first class there is a clear and obvious violation since they were already employees. So we file a grievance and then what? What’s the timeline here?
Say we win that grievance then what? Does everybody get a 35k check or do the newbies who got the check get that removed?
We have so many grievances and more are piling on quickly yet we aren’t seeing any results, that I know of. Forgive me since I have never had a union before but the whole idea of a Union and a CBA is seeming questionable right now. Personally I feel we should already be in court suing the company for harassment regarding the sick calls but again this is my first union and the overall process is still somewhat of a mystery to me.
Say we win that grievance then what? Does everybody get a 35k check or do the newbies who got the check get that removed?
We have so many grievances and more are piling on quickly yet we aren’t seeing any results, that I know of. Forgive me since I have never had a union before but the whole idea of a Union and a CBA is seeming questionable right now. Personally I feel we should already be in court suing the company for harassment regarding the sick calls but again this is my first union and the overall process is still somewhat of a mystery to me.
12-22-2022 | 04:12 AM
#200
Line Holder
Joined: Oct 2013
Posts: 1,674
Likes: 0
The fact the grievances are unaddressed is not the unions fault! They’ve been filed and the company is refusing to settle them and forcing them to arbitration. We have a limited number of arbitrations we can do in a year. Some of you guys really need to do some research on the RLA and our CBA to get educated on the process. Let’s focus our frustration in the right direction.
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