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Old 05-02-2005, 02:15 PM   #1  
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Default Alaska MEC Chmn msg

Fellow Members:

Good Evening. This is MEC Chairman Mark Bryant with an update on April 30,
2005 at 7:30 pm.

Yesterday, Arbitrator Richard Kasher, notified the Board members that he had
mailed his ruling to the parties for receipt today, Saturday, April 30, at
which time the MEC officers called for a special MEC meeting that was held
at noon today at the MEC office.

Last night, the Association received a contract proposal from Alaska
Airlines to settle all differences that included all of the Tentative
Agreements reached during the Section 6 negotiations that ended on December
15, 2005. Management's proposal included a deadline of 5:00 pm today.
Because of impending arrival of the arbitrator's decision, the parties
agreed to keep the arbitrators decision unopened at a local arbitrator's
residence until a decision was made on the status of managements last minute
offer.

The MEC met in special session today beginning at 12 noon and after electing
to add managements offer to the agenda, began the review process with the
negotiating committee and contract administrator Dave Hannah as well as ALPA
Director of Representation Bruce York and Assistant Director of
Representation Jim Wilson.

After much discussion, the MEC decided that the proposal was incomplete in
many areas and extended an offer to management to continue negotiations in
hopes of reaching a comprehensive agreement that was acceptable to both
parties. Management offered a twenty-four hour period to answer questions
on retirement and health care issues but declined the offer to negotiate at
4:10 pm and the parties agreed to proceed forward with opening Arbitrator
Kasher's ruling.

System Board Member Captain Ivan Lee arrived at the MEC office at 5:30 pm
with the arbitrator's ruling effective May 1, 2005 and is as follows:

Compensation: Arbitrator Kasher has ruled in favor of Alaska Airlines
weighted averaging as proposed. That chart as submitted to the Board by
Alaska is posted as part of the electronic communication of this
code-a-phone is at the end of this briefing.

Domestic Code Share: This issue was submitted by ALPA to limit the number
of passenger seats and weight used by Alaska Airlines domestic code share
partners. The arbitrator has ruled that no code share language will be
granted.

Health Care: The issues submitted by Alaska Airlines are: the Alaskahealth
Indemnity Plan; the level of cost sharing for the PPO plan; the level of
deductible for the PPO plan; the cost sharing of prescription drugs; and the
level of cost sharing for retiree medical premiums. The Association also
submitted the cost sharing level of retiree medical premiums. The
arbitrator has ruled that the indemnity plan will remain in place and that
the cost sharing will increase to 18% of total cost and the deductibles
increased to the average of the eight carriers. He did not list the
specifics so we will ensure accuracy before communicating this amount. The
cost of prescription drugs is not addressed and the current provision of
retiree medical premiums remains at the current 50% as proposed by ALPA.

Profit Sharing: This issue was submitted by ALPA to be a stand alone profit
sharing program based on profit margin that was not subject to Alaska Board
of Directors discretion. The arbitrator has ruled that the current profit
sharing will be maintained.

Retirement: The issue submitted by Alaska Airlines was to freeze the Defined
Benefit Plan (A-Plan) and replace it with a Defined Contribution Plan
(B-Plan) only. The Association submitted what level of contribution to the
Defined Contribution Plan was appropriate. The arbitrator has ruled that
the current retirement plan will remain unchanged in all facets.

Step Bids: The issues submitted by Alaska Airlines was the process for
pilots to modify their bid lines (step bids) be changed. The arbitrator
rejects management's position. There will be no change to the step bid
process.

Training: The issues submitted by Alaska Airlines that are before the board
are: the value of a training day; whether you receive credit for the
training day and whether trips touching are dropped. The arbitrator ruled
that the value of a training day at 3 hours 20 minutes, pay - no credit and
the elimination of the trips missed provision. He also states that pilots
may not be assigned additional flying if they fall below minimum monthly
guarantee.

Vacation: The issues submitted by Alaska Airlines that are before the board
are: the value of a vacation day; whether trips touching the vacation period
are dropped; and the bank vacation provision. The Association also
submitted the value of a vacation day. The arbitrator has ruled that the
value of a vacation day be changed to 3 hours 43 minutes, but there will be
no trips touching or missed provision. The ability to bank vacation remains
unchanged.

A complete copy of the award will be posted electronically on the MEC
website and the message boards as soon as possible this evening.

The MEC is pleased the arbitration and no strike letter no longer exist.
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Old 05-02-2005, 07:01 PM   #2  
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Default ALPA press release

Release #05.ALA
May 2, 2005


Alaska Pilots Weigh in on Arbitration Award

SEATTLE (05/02/2005) -- The Alaska Airlines Master Executive Council (ALA MEC), represented by the Air Line Pilots Association, Int'l. (ALPA) has received their final arbitration award for their open contract.

The Alaska pilots have been in intense negotiations with Alaska Airlines management since the pilots were first asked for concessions in the last quarter of 2003. After a mutually agreed upon negotiations deadline of December 15, 2004, passed without a resolution, Alaska pilots and management began a binding arbitration process that resulted in the May 1 award.

"The Alaska pilots vehemently disagree with the draconian decision by the Arbitration Board respecting wages. The Alaska MEC and ALPA provided the Board with an expert industry analysis of Alaska Airline's situation, as well as the economic situation of similar carriers," said Capt. Mark Bryant, Alaska MEC Chairman. "Management has never been able to show a need for the pay and benefit reduction reflected by the Arbitration Board's decision."

The award by the Arbitration Board calls for reductions in pilot pay, benefits and work rules. The new Alaska pilots' contract goes into effect on May 1 and becomes amendable on May 1, 2007.

"This decision by the Arbitration Board to cut hourly pay - in some cases by a third - puts unnecessary hardship on the 1,500 Alaska Airlines pilots and their families, some of whom are discussing selling their homes in order to survive," said Capt. Bryant. "Our professional pilots will continue to provide the first-class service they have always provided. We will immediately begin laying the groundwork for returning to the bargaining table in two years to rebuild our position within the company."

The Air Line Pilots Association (ALPA) is the bargaining agent for the 1,500 pilots of Alaska Airlines. ALPA is the world's largest pilot union, representing 64,000 airline pilots at 41 airlines in the U.S. and Canada. Its website is www.alpa.org.
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