Fellow American Airlines Pilots (LUS & LAA),
First, sincere thanks to all of the APA Board of Directors, Negotiating Committee members, Officers and support staff for another marathon holiday negotiating session.
Second, I urge you to immediately reach out to our Negotiators, and BOD with your questions and concerns. Also remember to visit the APA member website for details. Valuable web links and contact information have been provided at the end of this document.
The pilots of the New American Airlines, who successfully negotiated the industrys best ever get out of bankruptcy contract, now find themselves in the enviable position of working for the worlds largest, profitable airline.
In less than one-year post-AA bankruptcy exit, we, the New American pilots have before us an offer that would make us the highest paid pilots in the industry. With a healthy 16% defined contribution attached, we finally have the opportunity to make up for some lost time. Additionally, as I will provide in this overview, we have established parity with our peers in many facets of our working agreement, including an industry standard Scope clause, which now positions us very securely in the Pattern Bargaining arena - for the first time in decades. I will also provide you with critical areas that our BOD is considering on our behalf.
This brief is written in response to the overwhelming requests I have received from the line pilots for a comprehensive review on the economics and details of the current JCBA proposal.
*NOTE: The information included in this briefing, compiled by the author, is from data provided by the APA and US Airways Press Releases.
Our negotiators have spent the last 36+ months getting us (on time) to this critical point in our new Joint Collective Bargaining Agreement (JCBA), which per the MOU, must be completed before arbitration under McCaskill Bond can begin. The MOU also requires that the JCBA be concluded via a cost-neutral arbitration process, on a timeline outlined in the MOU. This timeline was extended, by mutual agreement, to:
An additional 30-day extension through Nov. 15, 2014.
An automatic further extension of 45 days should APA decide to forward any agreement (reached before the deadline) for membership ratification.
A commitment from management that, with a finalized agreement reached outside of arbitration, the rates of pay (including retirement contributions) would become effective Dec. 1, 2014 regardless of the actual effective date of the JCBA.
12/23/2014 update Must Ratify by January3, 2015
The Company Proposal of November 2014
As a result of intense negotiations covering over 38 Sections, Supplements, and Side letters, the Company has presented a comprehensive proposal for consideration. The Company Proposal included:
The Company honors the (TAs), and Agreements negotiated with the Association.
The Company offers compensation that adds a (net) additional $1.5 Billion dollars above the required economic box of the MOU/MTA arbitration provisions. This proposal positions American pilots with the highest pay rates in the industry.
After strong feedback, the Company agrees to pull proposed revisions to Section 1 Scope (5 Seats) off the table, leaving us at industry standard.
American
76 Seats
86,000 Lbs.
Delta
76 Seats
86,000 Lbs.
United
76 Seats
86,000 Lbs.
Source: APA Contract Comparison -Airline CBAs as of 1 Nov 2013, APA Negotiating Committee
December 23, 2014 Company Update
Scott Kirby Letter to Pilots
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 Americans early success since our merger. Our offer now includes a pay scale that provides pilots with increases of approximately 23% upon signing; bringing Americans pilots to rates 7% higher on average than Deltas rates. This increase would be effective for the current Decembers 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
Based on the reported value of the Company proposal (*retroactive to December 1, 2014)
Company Offer
Company Productivity Asks
TOTAL VALUE
1.8 Billion
$120 Million
*$1.5 Billion
*Retroactive value commencing on December 1, 2014
$1 Million per day
MOU + MTA + Company Proposal = Grand Total
$ 4.0 Billion +
* The Flight Attendants lost their Retroactive Pay in Arbitration. For the pilots, with an arbitration start date of no sooner than February 24-26even if we end up with the original company offer - the pilots could lose up to $300 Million dollars in retro pay alone as a result of arbitration.
Company offer for Rates of Pay:
The following pay rate charts compare the current MTA pay rates to the Companys proposal. Also, United and (potential) Delta scenarios are included for comparison and analysis:
As negotiated in the MOU/MTA, the Company will contribute 16% (DC contribution) to pilot earnings listed above.
American
16%
401 (k)
Delta
15%
401 (k)
United
16%
401 (k)
Southwest
9.3%
401 (k)
Source: Airline CBAs as of 1 Nov 2013, APA Negotiating Committee
The pay rates below represent the current Jan 3, 2014 deadline for receiving the Company update = 27% 2014/4% 2015/3% 2016-2019
BI GroupII Captain
BI AA MTA
BI Proposed
BI FO
BI AA MTA FO
BI Proposed FO
Delaying the pay rate increase by not accepting the Company offers and going to arbitration and possibly - defaulting to the MTA parity review process is high risk in my opinion.
First - we do not know what the outcome of arbitration constrained by the MTA economics will yield.
Second the outcome of Deltas negotiations is unknown.
Third - the time value of money for the vast majority of our pilots far outweighs the risk of possible unknown gain in the future.
JCBA negotiations between the Association and Company leading up to the Company proposal:
The following is a snapshot of the Comprehensive Negotiating Proposals of the JCBA process. This is a product of those items the BOD prioritized and requested to be negotiated. Many of the items listed (plus several others not listed) are reported as tentatively agreed to, (TAd) and/or Agreed between the Company and the Association. Unfortunately many of the economics associated with this information have not been reviewed by the membership in order to form an educated opinion.
By doing a simple word search of the charts below, we see that:
Well over 100 cost and no cost items were identified and ranked by the BOD (several subsequently combined).
These items were proposed by the Negotiating Committee, and addressed issues in 38 contractual Sections, Supplements, and Side Letters.
83 of the Proposed items negotiated to an agreed to status.
72 Areas TAd (Signed Agreement) successfully negotiated to a positive net result for the pilots.
TA = Complete contract section, and items contained within, successfully negotiated to agreement
Agreed = Selected Items within a section successfully negotiated to agreement.
Section
Reference
Provision
Proposal
Status
(Open / TA / Withdrawn)
1.D.4.c
Commuter Seat Restrictions
Company Proposal (With-drawn)
3.E
International Override
Add Mexico to the geographic area qualifying for international override.
TA
3 New
Paycheck Process
The pilot pay due on the thirtieth (30th) of the month shall be an amount approximately fifty percent (50%) of the previous month's total pay. Adjustments shall be made on the fifteenth (15th) of the following month.
TA
3.C.1
1st Year Rates
As proposed in Company Comprehensive Economic Proposal Appendix A.
Company Proposal
3.B & C
Rates
As proposed in Company Comprehensive Economic Proposal.
Company Proposal
6 and Supp. Y
Training Facilities
Change GSW to CLT Training Center, GSW, and PHX Training Center:
TA
6.D.7.g
Post Training Rest without DFPs
In no event shall a pilot receive less than twelve (12) hours free of all duty at the completion of a training program prior to resuming line flying duties.
TA
6 Q&A 6-22
Base Availability after Qualification Displacement
Language to be inserted into Section 6 of the CBA:
Pilots displaced for Operating Experience
A pilot who is displaced from his/her sequence in order for the Company to perform OE activity will be paid and credited for the sequence from which displaced.
Should the Company subsequently determine that it would not need the sequence for which the pilot has been displaced, the Company may assign the displaced pilot back onto his/her original sequence. Such assignment must occur prior to the earlier of:
The end of the DOTC period, or
Two (2) hours after displacement notification
If, after the earlier of 1) or 2) above, the Company determines that it will not use the sequence for OE, the displaced pilot will then be paid but not credited for the displaced sequence. In this case, the Company will attempt to notify the displaced pilot of the uncredited status, and notify the Association of this occurrence.
Q&A 6-22
What is the obligation of a pilot that has been displaced off his/her flight(s) or sequence that the Company needs for Operating Experience (OE)?
The Company may assign a pilot back to his/her original sequence prior to the conclusion of Daily Open Time Coverage (DOTC) or within two (2) hours following displacement notification, whichever is earlier. After this period, the pilot has no further obligation.
TA
6
Subcommittee
Continue the positive, open discussion of Section 6 (Training) outside of the JCBA process considering the merging of 2 training programs, 3 facilities, PBS, Distance learning, AQP differences, and failure to qualify procedures.
Agreed
7.D
Passport Reimbursement.
The Company shall bear the reasonable expense of passports and Visas, including expedited filing fees if necessary, and passport photos for all pilots.
TA
7
Lodging
Current MTA provisions except for the following:
No requirement to layover at same hotel as Flight Attendants.
Strike 4 references to Motel.
Elimination of double occupancy in paragraph A.3
New Language regarding Company association interaction.
Addition of Paragraph 6.g.,
The Company shall provide space positive on-line transportation for one (1) Union Hotel Committee member for all hotel inspections.
Agreed
8.A
Moving Expenses
Proposal:
A. Moving Expenses
1. En Route Expenses: $.41 per mile. In lieu of automobile mileage expense, a pilot may elect to have two automobiles shipped at Company expense. [Agreed 27Aug2014]
2. Direct Moving Expense: $1600. [Agreed 27Aug2014]
3. Home Sale / Lease Termination Expenses: Upon the submission of required documentation, up to $1,200 will be paid to a pilot who owns and sells his primary residence, or breaks a lease, as a result of an eligible relocation. [Agreed 01Oct2014]
4. Shipment of Household effects: [Agreed 27Aug2014]
B. Eligibility [Agreed 01Oct2014]
Change Section 17.D.7.b. (3) to read: [Agreed 01Oct2014]
Completion of Move
A pilot must relocate to the applicable base in order to receive moving expense benefits. [Agreed 27Aug2014]
Time Period for Completion of Move [Agreed 16Jul14]
Within 18 months of the effective date of the bid award. Extensions to the 18-month period will be considered on an individual case basis.
Forfeiture of Eligibility for a Paid Move [Agreed 16Jul14]
Decision Period [Agreed 16Jul14]
Company Travel Passes [Agreed 16Jul14]
Time off for Move:
^ Others provisions- [Agreed 13-27 Aug2014]
TA
9
Vacation
Develop a system which: [Agreed 13Nov14]
Permits a pilot to view awarded vacation periods
Contains an automated system to re-award open vacation weeks, which have been released and made available at the Companys discretion. Implement a system similar to the West Vacation Shuffle or the East Vacation Rebid on an interim basis
Accommodates pilot-to-pilot trades.
Modify vacation periods to be awarded to a structure of 52 separate 7-day periods. (See attached schedule). [Agreed 10 Jul 14]
Vacation week commences at 0000 on Monday and ends at 2359 on Sunday. [Agreed 06 Aug 14]
A vacation day shall be a twenty-four hour (24:00) period awarded through the vacation bid during which the Pilot is free from all duty at the Pilots domicile beginning at 0000 HBT and ending at 2359 HBT. [Agreed 06 Aug 14]
Company Proposal
10.C.7.c
Sufficient Medical Docs
(Reduce the requirements of Sufficient Medical Documentation from 5 to only the following 2 areas🙂
Shall address the following two (2) areas:
I. Diagnosis - An explanation of the pilot's medical condition and the procedures used to make that determination;
II. Expected return to work date - Identification of the estimated date that the pilot's health care provider estimates that the pilot will be able to return to work (it is understood that estimates may need later modification once FAA/FAR airmen certification standards are considered).
Open C
10
DH for Sick on Duty
Positive space online DH travel to Domicile for pilot who becomes sick on trip. [Agreed 24Sep14]
Agreed in Concept
10.C.2
Rapid Re-accrual
Include solution for West
Agreed
10
Sick Hours Paid While Awaiting LTD
A pilot on long term sick may designate the number of hours for which he will be paid so long as the number of hours fall between the lower of line construction window or reserve guarantee and the pilots individual IMAX. Without a pilot designation, the pilot shall be paid 85 hours. [Agreed 22Oct14]
Company Proposal
10.C.8.c., & §11.D
Sick Leave Prior to LTD
Allow the pilot to choose how much sick (months to bid) and vacation they want to use prior to going on LTD.
Revise Section 11.D.1 to read as follows:
When leaves are granted on account of sickness or injury, a pilot shall retain and continue to accrue his seniority irrespective of whether or not he is able to maintain his required certificates or ratings, until he is able to return to duty or is found to be unfit for such duty.
Agreed
11 and LOA 04-12
FMLA
Delete Letter 04-12 [Agreed to delete]
TA
B.5.c. (2)
Overnight Simulator Sessions
Change Section 12.B.5.c (2) to read:
The normal scheduled duty day for a Check Airman, other than a designee, who is scheduled for a simulator session of four hours or less may be extended to seven and one-half hours in order to accomplish pop up training. Such pop up training shall not exceed one hour of simulator time and, except for the purpose of maintaining or re-establishing 90-day Takeoff/Landing Currency, shall not be scheduled between 0045 and 0530 hours.
Revised Company Proposal
Supp Y, Paragraph H
Overnight Simulator Sessions
Change Supp Y, Paragraph H to read:
Except for the purpose of maintaining or re-establishing 90-day Takeoff/Landing Currency, an American Airlines cockpit crewmember will not be scheduled for simulator training (including briefing and debriefing) between the hours of 0045 and 0530. The scheduling of simulator time for 90 day Takeoff/Landing currency will only be scheduled when no other 4-hour period outside of the hours of 0045 and 0530 is available for such purpose. For the purposes of Check Airman assignment, a maximum of 2 sessions will be scheduled and will be considered as a single day of work for scheduling and pay purposes. No more than 2 pilots will be scheduled for each of the 2 sessions. In the event it becomes necessary to deviate from this Company policy it will only be done because of very unusual circumstances and the reasons therefore will be made known to the Association.
Company Proposal
12.C.6
Test Pilot Duty Periods
Change paragraphs 12.C.6.b., and 12.C.6.d., to read:
For a duty period consisting solely of deadhead, the scheduled duty period shall not exceed 19 hours.
In addition, the maximum flight duty period for a Flight Test pilot when performing work on an augmented flight shall be 17 hours for a three pilot crew and 19 hours for a four pilot crew. .
Company Proposal
12.C.7
Pay for Ultra Long DH
A Flight Test pilot scheduled for duty in excess of 15 hours in a single duty period shall be paid for two (2) duty periods. Additionally, such duty period shall count as two (2) days of work. [Current Practice]
TA
14
Probation
A pilot shall be on probation for the lesser of:
A. Twelve (12) months active service, excluding any LOA, starting on the first day of employment as a pilot with the Company.
B. Four hundred (400) credited hours for sequences actually flown and the successful completion of the first Continuing Qualification or non-Initial Qualification training event.
No pilot shall be placed on probation after the above requirements have been met.
Agreed
15
4 Must Have Days
- Reserve pilots may designate up to 4 Must Have Days each year as a part of their monthly bid awards that are Golden DFPs and are awarded regardless of seniority.
- Days may be split anyway the pilot chooses (Four individual days, all 4 together, 2/1/1, 2/2, etc.)
- Pilots may not create illegalities, including buffers
- Such designations may not increase maximum reserve days off on any given day as designated by the Company
- This functionality may not be in the first release of PBS
- These days are part of, not in addition to the Reserve pilots normal DFPs
- These pilot designated DFPs may not be used on the following blackout dates:
Dec 31 2 January
Friday Monday of Super Bowl Weekend
Thurs Monday of Easter Weekend
July 3 5
Tues Monday of Thanksgiving Week
December 24 26
Sat Tues of Federal Holiday Weekends
-
TA
15.B.9.e
Phone Recording Retention
The Company shall retain the recorded phone calls for a period of ninety (90) days, and absent an identified request or legal requirement as specified in this paragraph, all recordings will be automatically deleted at the 90-day point. Either party may request retention of a relevant recording associated with contractual issues on pay, planning or scheduling beyond the ninety (90) day period. Such recording(s) will be retained until both parties agree that the specific issue has been resolved. Nothing in this paragraph is intended to limit the Companys ability to satisfy its legal obligations with regard to the preservation of evidence, provided that in the event the Company determines it is legally obligated to preserve any recording covered by this paragraph the Company shall promptly notify the Association of such determination and provide an explanation of the nature of the legal obligation requiring preservation and when the obligation arose.
TA
15
SCR Report
A short call reserve pilot must be able to promptly report for an awarded or assigned sequence. (Delta Language)
Revised Company Proposal
15.C.5.a (1) and (6)
Home Base Time
Revise paragraph (1) of Section 15.C.5.a. to read:
Hours of Service
Flight time limitations, duty limitations and rest requirements shall be as specified in the Federal Aviation Regulations, 14 CFR Part 117, with the following exceptions:
Home Base Time (HBT) will be used for all operations under this section except when a pilot is acclimated, in accordance with 14 CFR Part 117, to a theater not encompassing Home Base.
Revised Company Proposal
15
Domestic and International Operations
Elimination of fence between Domestic and International Divisions.
The Company will consider feedback from the APA Safety Committee when implementing the elimination of the Domestic and International Divisions.
Agreed
15.C.4.b and
15.L
Revise Section 15.C.4.b as follows: [Agreed 13Nov14]
Flying on, into or out of a Reserve pilot's days off will be excluded in the eighty-five (85) hour assignment maximum. In the event the Company awards a Reserve pilot a sequence on a DFP, pay for that sequence will be applied above guarantee or PPROJ (whichever is greater), no credit.
Revise Section 15.L.4.c. (1) & (2) and 15.L.4.d. (1) & (2) as follows: [Agreed 13Nov14]
Pick-up in Base
Regular Pick-up, in Division, including, at Company option, eligible reserve pilots volunteering to fly on, into or out of a DFP. DFP will not be replaced.
Regular Pick-up, opposite Division, including, at Company option, eligible reserve pilots volunteering to fly on, into or out of a DFP. DFP will not be replaced. [See Q&A 15-33]
Pick-up out of Base
Regular Pick-up, in Division, including, at Company option, eligible reserve pilots volunteering to fly on, into or out of a DFP. DFP will not be replaced.
Regular Pick-up, opposite Division, including, at Company option, eligible reserve pilots volunteering to fly on, into or out of a DFP. DFP will not be replaced.
Delete Section 15.L.4.f. (1). (a). Iii & iv:
[Agreed 13Nov14]
Delete Section 15.L.4.f. (2). (a). iii & iv:
[Agreed 13Nov14]
Agreed
15.L.4
Urgent Need Bypass
(Mighty Mouse)
At Company option, the filling of open time processes above may be bypassed to permit a qualified and legal pilot who is in position to be awarded an open time segment(s). `Such pilot will be paid, but not credited for the greater of scheduled or actual for the segment(s) actually flown (see examples). When the company avails itself of this option, a sequence must be created which would have otherwise resolved the open segment(s) and be awarded, or assigned, to a pilot via the normal filling of open time process. The pilot who is awarded, or assigned, such created sequence shall be paid and credited for value of the created sequence. [Agreed 13Nov14]
Agreed
17.G
Vacancy Bid
When there are known vacancies and/or displacements, the Company shall simultaneously award bids for vacancies, and process displacements, reinstatements, entitlements, and also process displacements and vacancies resulting from such awards. All awards shall be based on system seniority giving first priority to reinstatement rights, second priority to entitlements and then bids for vacancies. Only those bids or displacement preferences indicated on pilots' standing bid lists will be considered in the bid award procedure. [See Q&A 17-7] [Agreed 13Nov14]
With the exception of V. (Furloughs) and W. (Method of Recall) of this Section, none of the procedures in Section 17. (Bidding for vacancies, displacements, etc.) Shall apply to the Flight Test pilot positions. [Agreed 13Nov14]
The Company may accelerate the effective date of a bid to a given month if a pilot will have completed training during that month. [Agreed 13Nov14]
Agreed
17.G
In the case of a change of bid status to a higher paying position, the Company will offer training in seniority order. In the event the Company chooses to bypass a pilot for a more junior pilot, then on a one-for-one basis, each bypassed pilot will be pay protected to the same effective date.
NOTE: The Company and the Association agree to discuss the process for accelerating bid effective dates in Paragraph 3 above during the implementation planning.
17.M.2
Hold From Training
Withholding Time Limits - General
If it is necessary to withhold a pilot from a bid status preference, the period of withhold will be no greater than twelve (12) contractual months from the effective date of the bid status award.
Withholding in excess of twelve (12) months may also occur if fleet specific training facilities that are owned, leased, or operated by the Company or an affiliate are fully utilized for American Airlines pilot training and no contract training capacity exists at any outside training facility.
[Agreed 13Nov14]
TA
17.0
Qualify in Turn
Delete §17.O Qualify in Turn (Forced Upgrade)
TA
17.V.5
Furlough Pay
Years of Active Service
1 year but less than 2 years
2 years but less than 3 years
3 years but less than 4 years
4 years but less than 5 years
5 years but less than 6 years
6 years but less than 7 years
7 years but less than 8 years
8 years but less than 9 years
9 years and thereafter
Furlough Pay
0 Month
5 Months
0 Months
5 Months
0 Months
5 Months
0 Months
0 Months
5 Months
TA
19.A New
Jump seat Luggage
The luggage for the one or two pilots issued a Flight Deck Jumpseat boarding pass (1W, 2W) shall be secured:
In the flight deck.
Available cabin overhead bins for storage of crew luggage.
If the jumpseat occupants crew luggage cannot be accommodated in either (a) or (b) above:
i. For American Airlines Pilots, the pilot may check such pilots crew baggage (Gate Valet or similar) for retrieval on the jet bridge at destination. If a Pilots baggage is lost, the Pilot shall be subject to the Companys policy regarding lost luggage applicable to revenue passengers.
ii. For off-line Jumpseat occupants, luggage shall be gate checked for pick up in baggage claim at the destination.
Agreed
19.B New
Deadhead
At the time trip pairings are published, the Company shall book seats for all deadheading pilots. [Agreed 14 Aug 14]
A deadheading pilots record locator shall be available to the pilot prior to or at the time of check in. [Agreed 14 Aug 14]
Notwithstanding the above, in an irregular operation, the Pilot may not be provided with a record locator number and shall be provided any positive-space seat available at the time the Pilot reports to the gate for the deadhead. [Agreed 14 Aug 14]
A deadheading Pilot may pre-board the aircraft [Agreed 06Aug14]
If overhead bins are full, the deadheading Pilot may gate check such pilots crew bag (Gate Valet or similar). If a Pilots luggage is lost, the Pilot shall be subject to the Companys policy regarding lost luggage applicable to revenue passengers. [Agreed 14 Aug 14]
Deadheading on Other Airlines - Upon request, the parties shall meet to consider information and recommendations that the Association may have regarding the suitability of a foreign carrier for deadheading. [Agreed 14 Aug 14]
Agreed
19.C New
Travel
The Company will provide a Positive Space Pass for one (1) D1/D2 qualified and registered dependent of a retiring pilot on the last sequence of the pilots career. [Agreed 13Nov14]
Agreed
24 New
Life Insurance Advance
Provide a $10,000 Life Insurance advance for a death. [Agreed 28Oct14]
TA
24.O
Current Letter K
Uniforms
The Associations propose to delete Letter K and add the language below to a new paragraph in Section 24
O. Uniforms
The Company may make reasonable changes to the pilots uniform and appearance standards after giving every consideration to the recommendations of the Association. [Agreed 13Aug14]
Six (6) months notice shall be given of any required uniform change and an additional six (6) months to accomplish the changeover. [Agreed 13Aug14]
The Company will provide, at no cost to the pilot, the below listed items for all new-hire pilots. [Agreed 14Aug14]
One jacket and two pairs of trousers
One hat with emblem
One tie
Six (6) shirts
One set of epaulets
One overcoat
One set of wings
If the Company initiates a change in the style or color in any, or all, of the required uniform components, the Company shall make the initial purchase of such modified component(s) for each Pilot. [Agreed 14Aug14]
On an ongoing basis, the Company shall provide the tie, epaulets, braiding, emblem, wings and any other Company emblems as may be reasonably needed. [Agreed 14Aug14]
The Company shall provide a Captains hat, if a required wear item by the Company, to each pilot upon initial upgrade to Captain. [AGREED 13Aug14]
TA
24.P
Satellite Bases
Incorporate from Letter I
Primary Domicile Operations areas require all items listed below, as well as Wi-Fi access and dedicated quiet room/rest facilities. [Agreed 9Jul14]
The Company shall provide appropriate and suitable facilities, equipment and administrative support at each satellite crew base, including the following: [Agreed 9Jul14]
Tablet computer device replacements and equipment support will be the responsibility of the domicile flight administration department. [Agreed 13Aug14]
Furnished crew lounge, including TV. All items and operations area to be kept clean and in good repair. Additionally, the Company shall provide adequate seating for pilots so long as the expense incurred is not unreasonable. [Agreed 9Jul14]
Restrooms, drinking water and vending machines. [Agreed 6Aug14]
Crew mailboxes. [Agreed 9Jul14]
Adequate kit bag (as applicable) and luggage storage in compliance with TSA security requirements. [Agreed 13Aug14]
Access to Company mail and any revisions to required paper manuals and checklists. [Agreed 08Aug14]
Convenient and priority access to equipment necessary for flight planning and administration, such as, but not limited to, company telephones, computers, and printers. [Agreed 6Aug14]
Equipment and facilities for viewing Company Programs. [Agreed 9Jul14]
Company and Union Bulletin Boards. [Agreed 9Jul14]
Where the Company can obtain the right to provide the locks to operations areas and jet bridges, etc., the Company will furnish keys and/or combinations to crewmembers, where applicable. [Agreed 6Aug14]
Crewmembers will have parking available with transportation, if required, from parking to the AA facility. By mutual agreement between the company and the association, contract parking or parking in a designated airport pay lot will be authorized and reimbursement will be provided by the Company. [Agreed 14Aug14]
Base chief pilots will make themselves available for an in-person walk-around with an APA representative upon request to ensure operations areas meet the standards of this letter. [Agreed 08Aug14]
Within the physical limitations of the facility, American Airlines will make every reasonable effort to complete these requirements, or will provide an agreed upon completion date prior to the first operational date of a satellite crew base at that location. [Agreed 9Jul14]
Prior to the first operational date of a satellite crew base, representatives of American Airlines and the Allied Pilots Association shall jointly inspect the facility to judge satisfactory compliance with the foregoing provisions. [Agreed 9Jul14]
Company Proposal
26.C
Duration
This Agreement shall become effective upon Date of Signing, except as otherwise stated herein, and shall continue in full force and effect until January 1, 2020.
Company Proposal
Supp Z
Terrorism Hostage Benefits
DEATH, PERMANENT TOTAL DISABILITY, AND DISMEMBERMENT BENEFITS
Enhanced Hostage Language.
TA
Letter KK (2)
Recurrent Disability
Recurrent disability provision to be extended from 30 days to 90 days. (Return to grandfathered plan vs. new plan) [Agreed 13Nov14]
Agreed
LOA 13-01
Expiration Date
Extend to December 31, 2019 [Agreed 13Nov14]
Agreed
LOA 13-01
Optional Health Care
Allow additional options for use of HRA to include premiums associated with retiree medical, dental, vision and long term care premiums, as well as unreimbursed retiree medical, dental, and vision expenses for retiree and spouse on record as of retirement only. [Agreed 13Nov14]
Company Proposal
24 New
Benefits Excise Tax
In the event the Company determines the Standard or Core design options provided for in this Agreement (each an Option) would be or become subject to an excise tax or other penalty included in The Patient Protection and Affordable Care Act (PPACA) or any excise tax or penalty which may replace the PPACA, under applicable law, (and thus become an Affected Option), the Company will meet and confer in good faith in order to reach an agreement with the Union concerning the minimum modification or modifications to the Affected Option necessary to avoid application of the excise tax or other penalty.
*Arbitration backstop
Agreed
Several References
CPA Bank
Remove all references to CPA Banks, effective with the implementation of PBS: Including, but not limited to, Supp. N & L, Let WW, LOA 04-06, 10-03, Sect 6 Q&q:6-3, 15-13
December 23, 2014 Company Update
Scott Kirby Letter to Pilots
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.
Company Proposals in Response to APA requests
Length of Service Credit Provide two years of seniority credit for active pilots that were previously furloughed
Duty Rig Improvements Increase the value of the minimum duty rig to 5 hours and 10 minutes from 5 hours
International Override Expand the international override to all Mexico flying
Uniforms The Company will provide uniforms to all new hires
Moving Expenses Increase relocation payments to pilots relocating from one domicile to another
Passport Reimbursement Reimburse pilots for obtaining a required passport or visa
Sick Leave Process Allow pilots to choose the number of sick hours used prior to receiving long-term disability benefits
Paycheck Process Move all pilots to the current Legacy US Airways pay advance (approximately one- half of previous months earnings instead of the flat $1,000 currently in the MTA)
Post Training Rest without Duty Free Period Provide 12 hours of rest following training for those pilots who arent scheduled for an immediate day off
Furlough Pay Increase furlough pay to a maximum of 5 months, which is the current Legacy US Airways East process
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.
Here are the Company Proposals the APA BOD would not agree to:
After Midnight Simulator to be used only for takeoff and landing currency when no other time slot available. Will most likely only be needed in the event we realize significant Group 4 growths.
Excise Tax Otherwise know as (Obama Care-Cadillac Tax issue) that MIGHT take affect by 2018-2022, which should only affect the largest of our 3 health care plans. If our plan was ever deemed to be a Cadillac plan and subject to taxation, we would reduce the benefit of our plan to lower it below the Cadillac threshold. The value of any reduction would be added back into some other area of our CBA so that there would be no net loss of economic CBA value to the pilots.
3-month (Quarterly) Vacancy Bidding Legacy AA currently bids monthly - Legacy US has no monthly requirement.
Home Base Time The Company wants to go to the FAA definition of HBT for operations outside of home theatre (more than 4 time zones from domicile). This would primarily afford the Company the ability to operate new ultra-long haul flights (Growth) to destinations not permitted because of our HBT language in Section 15. (16+ hour flights)
Extend the contract one extra year -with an additional 3% pay raise on Jan. 1, 2019. There has been no explanation thus far from the BOD as to why this is not acceptable.
Reserve report currently stands that the new language would be Short Call pilots will report promptly after assignment/award of a sequence (same as Delta) as opposed to the LAA reasonably available by surface transportation and a much the more restrictive LUS (East 90 mins.) & (West 2 hr.) requirement.
International/Domestic Fence Have the ability to mix international and domestic flying in our trips sequences.
Other Issues not in the Company Proposal:
Profit SharingThe Pilot unions agreed to swap profit sharing for increased pay rates- twice in the CLA process and again in the MOU
321 Pay - Currently grouped in Category 2 at LUS as a result of bankruptcy. Based on the number of seats, should be Group 3 pay.
In response to the Company offer, the APA BOD crafted a comprehensive proposal in an attempt to wrap-up negotiations, and by a vote of 12-10, presented it to the Company. Unfortunately, the line pilots heard very little from the Negotiating Committee and its legal counsel as to the likelihood of its success, or likely response from the Company:
APA (BOD) Presents Comprehensive Counterproposal (posted below and also available here):
Although labeled a comprehensive proposal, this presentation lacks meaningful detail that the line pilot can understand, and is void of any useable economic comparators. Unfortunately, this move towards arbitration leaves the audience with little value proposition to contemplate.
Furthermore, with this offer REJECTED and the JCBA now forwarded to arbitration for conclusion, there seems to be no articulated plan as to how to capture the economic losses an arbitration process will surely provide.
December 17, 2014 APA Message:
In an effort to conclude the joint collective bargaining agreement negotiations, the APA board of directors has approved the presentation of a comprehensive counterproposal to management. APA President CA Keith Wilson, Negotiating Committee Chairman CA Norm Miller and committee member FO Brian Smith met with American Airlines President Scott Kirby to make the presentation late this afternoon.
In our proposal, we identify several select items of improvement to achieve the industry standard in those areas while remaining generally consistent with the framework of management's most recent proposal. We provide creative options to ensure that our compensation does not trail our large network competitors, today and in the long term.
Our proposal consists of the following:
NOTE (Authors comments in red): It appears as though the BOD has decided to unwind some items that were already agreed to by the Company and the Negotiating Committee.
PAY OPTION 1
Maintain or improve the current Equipment Group Pay Relationship between Groups I and II (as outlined in Section 3. A.4. Of the Merger Transition Agreement dated December 09, 2013.)
Modify the company's pay rate proposal, utilizing the current or improved Equipment Group Pay Relationship, by increasing all the 12/2/2014 rates by an additional 4%.
Increase the Company's 3% annual raises to 3.5% annual raises (1/1/15, 1/1/16, 1/1/17 and 1/1/18). Increase by 1/2%
BI Option1
PAY OPTION 2
Maintain or improve the current Equipment Group Pay Relationship between Groups (I) and (II) as outlined in Section 3. A.4. Of the Merger Transition Agreement dated December 09, 2013.
Accept the Company's pay proposal, while utilizing the current or improved Equipment Group Pay Relationship between Groups I and II.
Include profit sharing, consistent with Delta Pilot profit sharing in effect on 12/02/2014.
PAY OPTION 3
Maintain or improve the current Equipment Group Pay Relationship between Groups (I) and (II) as outlined in Section 3. A.4., of the Merger Transition Agreement dated December 09, 2013.
Accept the Company pay proposal with Group 1 pay adjustments.
Beginning on January 1, 2015 and on each date that Delta pay increases, pilot pay rates will receive a Delta Comparable +3 Pay Rate Adjustment.
The Delta Comparable +3 Pay Rate Adjustment will be determined as follows:
Using the same methodology as was utilized in developing the Company proposed rates (a weighted rate will be established for each Equipment Group.)
This rate will be determined using the active AA fleet count 60 days prior to the scheduled rate increase.
The Delta Comparable +3 Pay Rate will be determined by adding 3% to the weighted rate.
If on any Comparable Pay Rate Adjustment date the Delta Comparable +3 Pay Rate is lower than the current Company proposed rate the Company proposed rates will apply.
NO ONE YEAR EXTENSION: There has been no economic or other information provided to the membership as to why this is or is not acceptable
OR:
ONE YEAR EXTENSION WITH 2 YEAR PARITY PIECE
Pay Rate increase of 3.5% on 01/01/2020.
QWL (including but not limited to Hotel/Sick/Disability/Vacation) improvements with arbitration backstop by 3-member arbitration panel, total in the aggregate using DAL/UAL comparators. Process to begin 1 June 2016 and conclude no later than 1 Jan 2017.
HBT as discussed, ability to increase FDP but current crew compliment remains the same: Company requests to move to FAR language of Home Base Time allowing for ultra long haul flying (growth).
Int'l / Dom merge on narrow body fleets only with APA safety recommendations agreed to (MOU)-Ability for the Company to combine domestic and international flying in trip sequences. There was significant consideration of the positive effect of sequence construction quality, and considering that merging divisions was essential in having the Company agree to significant Duty Rig improvements, it would seem this was a good decision.
"Reasonably Available..."
No change to current language of MTA -will not accept the Delta language of promptly available.
Duty Rig improvement
DOS 5:15 Average per Duty Period - Company position 5:10 Average Duty Period
With PBS implementation 4:30/4:45/5:00 Average Calendar Day (6 month per increment) with no less than 5:15 ADP
A321 - override (to Group 3 pay rate) Currently grouped in Category 2 at LUS as a result of bankruptcy. Based on seats should be Group 3 pay.
LTD eliminate 80% unable to earn provision
Meet and discuss on mitigation of Cadillac Tax if/when that threat becomes a reality
This is the Excise Tax Obama care issue that may take affect in 2018-2022, themeet and discuss language is already in the Company proposal. Should the parties be unable to determine the appropriate location in the CBA to add back value, an arbitration process would determine the appropriate amounts and location(s). The APA BOD wants to remove the arbitration process. This proposal had previously been agreed-to by the Negotiating Committee with support of APA Benefits and Legal Counsel.
LOS 5 years pay / 2 years vacation
12/2/2014 Retro Date- As opposed to a 12/01/2014 Retro Date (1 day difference)
Vacancy Bids as discussed
No fewer than every 3 months starting 1 Jan 2016.
No change to current MTA withholds language.
All TA's retained- except for those other items the BOD has decided to reopen.
Prior to a thorough briefing to the membership, the Company has been presented with the new requests and changes to the JCBA. In contrast to the information the membership is seeking, we have instead heard mostly anger and emotion - and that has never, or will never lead to a good outcome. The next step in the process is arbitration... we must not arrive unaware of how or why we are there.
This is a critical juncture for the 14,000 pilots of American Airlines, and the desires of all pilots should be considered.
As it currently stands, the membership has not been afforded with all the comprehensive details and economics associated with this important decision.
As an example, consider attrition:
Attrition
One of the most unreported and undervalued factors in this negotiation has been the impact of attrition. The inherent economic and career enhancing value associated with the impending massive attrition is exponential. Over the proposed duration of the agreement,approximately 2000 pilots retire- based on age 65 birthdates alone.
AA AND US PILOT RETIREMENT SCHEDULE (AGE 65)
Source: APA Negotiating Committee as of 1 Nov 2013, USAPA Negotiating Committee 20142022 4,978 pilots retire (combined), 20232026 AA will retire 2,830
CONCLUSION
Exercise your right to be heard
We simply cannot accept a final offer without considering all the facts needed for our educated feedback. I urge all pilots to reach out to your Negotiators and BOD Members asking for their economic supporting data which they have/will base their voting decision. We need to be rightfully armed with the required tools in order to offer them our opinion. After gaining as much information as possible, tell them how you think they should vote on your behalf.
Only through the transparency of democracy, can our BOD represent the 14,000-Member collectively with the authority they need to get this difficult job done.
The diligent process undertaken by the Negotiators, Subject Matter Experts, and the Company, appears to have produced an industry-leading proposal. Based on the information we have been provided with thus far, the tangible economics of the JCBA proposal clearly outweigh the unknown potential and downside of the alternatives.
HIGHLIGHTS OF THE OFFER
Based on the reported value of the company proposal (*retroactive to December 1, 2014)
Company Offer
Company Productivity Asks
TOTAL
$1.2 B 1.8 Billion
$120 Million
*$1.08 $1.5 Billion
*Retroactive value commencing on December 1, 2014
$1 Million per day
MOU + MTA + Company Proposal = Grand Total
$ 4.0 Billion +
$1.5 BILLION more than the agreed to arbitration value
Numerous Industry Standard / Leading improvements to the MTA
6 Year Duration
Compounding value- Massive Attrition
Industry Standard SCOPE
Industry Leading Pay Rates