[SIZE=10pt]Q: The Negotiations Protocol Agreement says that if the T/A is not ratified by the membership, the parties will use mediation before going to arbitration. Some FAs think we should vote the T/A down and then get a better deal in mediation — without ever having to go to binding arbitration. Why isn’t that right? [/SIZE]
[SIZE=10pt]A: If this Tentative Agreement gets voted down, the Negotiations Protocol Agreement mandates that the outstanding disputes get sent to binding arbitration within 90 days. There will not be another ongoing round of negotiations if this T/A is rejected. The mediation that follows a “no” vote, if any takes place, will focus on narrowing down the issues we will decide in arbitration. [/SIZE]
[SIZE=10pt]To put the situation in context, our T/A is worth about $193 million more annually than the current value of the two contracts (LUS and LAA) combined. “Market rate” is approximately $111 million annually above the current combined value. Since “market rate” is the standard for arbitration, any agreement we reach in arbitration will likely be approximately $82 million annually below the value of this T/A.[/SIZE]
Market Rate.
Now that AA is no longer in BK and earning very healthy profits is it really necessary to allow AA to define the "Market" by using only the carriers that AA currently wants to compare themselves to? For decades their comparisons included SWA and that was at a time where there was pretty much zero direct competition between them. Shouldn't SWA also be considered to be part of the "market"?
If the NMB is allowing SWA to use rates at AA, US , UAL and CAL in their determination of "Market Rates" then how could they then turn around and rule that SWA is not factored into the Market rate at AA? (for mechanics the same applies to Fed Ex and UPS)
I have serious doubts that once SWA is factored in that the current AA deal, which extends the contract till 2020 is really $82 million above a comprehensive market rate. After SWA is factored in its likely well below market rate.
As I said, I don't know what the APFA agreed to, did they agree that in all negotiations going forward that AA can define the comparators used to define "Market Rates" in arbitration? Yes this isn't section six, but its not 1113 either. Will the APFA be able to argue that SWA is part of the market, has with the exception of bankruptcy negotiations always been part of the Market and must be considered part of the market? Whats at stake here is $2 billion in synergies, is the $84 million a fair share when you consider that without the synergies they are already earning billions in profits? AA is losing money every day that you operate as separate entities so its not like they are just handing over $82 million. Why not at least get Profit sharing, that costs them nothing?
If this is argument possible then I would say VOTE NO because you don't want to be locked into what is still a concessionary deal (that started in 2003) till 2020 and there is no profit sharing. This agreement will damage every flight attendant in the Industry, including the SWA flight attendants because you know if they end up in front of the NMB, even with SWA reporting billions in profits, (as will AA, UA and Delta), when the NMB looks to determine the Market rate that rate will include not only SWA, but AA, UA & DL. The fact is that SWA was included by AA when in reality they were not a major competitor, with over 500 planes and service into Airports such as LGA, MCO, etc etc there is no way that they can claim that they aren't a competitor in the market now.
From a quick look at the highlites (and admitted not fully understood) what I see is higher hourly rates , which is a sure thing, offset by less paid vacation, and no profit sharing. The profit sharing is not a sure thing, but it is a very likely thing and will likely, when combined with less vacation greatly offset the "Industry Lead". In 2013 Delta workers got $500 million in profit sharing, flight attendants probably got 25% or $125 million of that, it will likely be even more this year, was that factored into the market rate? If not then bottom line this is not an industry leading contract.
The bigger issue is that it extends the concessions of 2003, and the huge lag behind SWA, till 2020.
From what I can see they need to go back and take off the extra time to the term and add profit sharing.