Sign on/retention bonus
01-21-2023 | 02:03 PM
#241
Line Holder
Joined: Nov 2019
Posts: 772
Likes: 11
looks like they did a month ago.
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
Air Line Pilots Association, International
www.alpa.org
To update your Standard Mailings/E-Mail Distribution Lists preferences click here. If you wish to Unsubscribe please use the unsubscribe link.
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 ME
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
Air Line Pilots Association, International
www.alpa.org
To update your Standard Mailings/E-Mail Distribution Lists preferences click here. If you wish to Unsubscribe please use the unsubscribe link.
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 ME
01-21-2023 | 04:04 PM
#243
Stirring the pot
Joined: Oct 2016
Posts: 1,617
Likes: 66
From: Off reserve 🤫
01-21-2023 | 04:52 PM
#244
Line Holder
Joined: Oct 2013
Posts: 1,674
Likes: 0
01-21-2023 | 10:24 PM
#246
Last To Know First To Go
Joined: Sep 2016
Posts: 620
Likes: 1
I agree with everything you're saying. I really don't see how anyone thinks of this as a legitimate 'bonus'. I just thought I would clarify what the current language the company is using to explain this 'bonus'. The tax and interest implications are not insignificant, so it is a tough choice, even if you think you'll be staying for 36 + months. 3 years is a long time in this business... I am excited to join F9 and have no plans of going anywhere for a long time, but the fine print on this has to make you stop and think. If I was in my early 20's and naive about these things I'm sure I would take it and immediately go out and buy a V6 Camaro, now I'm happy to have enough wisdom to at least sit on it and let it earn me money, if I decide to take it.
01-22-2023 | 06:01 AM
#248
Stirring the pot
Joined: Oct 2016
Posts: 1,617
Likes: 66
From: Off reserve 🤫
01-22-2023 | 07:55 AM
#250
Gets Weekends Off
Joined: Dec 2012
Posts: 2,769
Likes: 59
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