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Greetings,
Frequently
Asked Questions about the Tentative Agreement on a Contract
Extension Here are answers to some of the
questions asked at the initial road shows and that we have
received directly from members. Q.
If we do not ratify this contract extension, where are
we? A.
If the extension TA does not
ratify: We will begin the Section Six
negotiations process.
We will post for applicants, interview, select and train
a Negotiating Committee, conduct a Negotiations Survey, draft an
opener and begin negotiations this
Spring. The new 17th step increase of 2% from
the 2006 contract will take effect Those still eligible for step increases
will continue to move up the current pay
scale. The amount of our monthly insurance
costs (18% share of the premium) can increase for 2010, subject
to the caps in the updated chart in Section 23. After 2010, they cannot
change/increase again until the completion of Section Six
Negotiations. The PBS re-ratification vote will take
place Fall of 2010. Q.
What happens if the extension TA
ratifies? A.
If the extension TA
ratifies: We will receive the 2008 PBP payment in
April 2009; it will be equal to 2.5%, or .025% x your 2008 w-2
earnings. The new 17th step increase of 2% will be
in effect Those still eligible for step increases
will continue to move up the current pay
scale. The amount of our monthly insurance
costs (18% of the premium) can increase for 2010, subject to the
caps in the updated chart from Section
23. We will participate in PBP in 2009 and
beyond; we will no longer participate in
VPP. There will be a 1.5% increase to all
rates of pay effective The PBS re-ratification vote will take
place Fall of 2010. We will begin the negotiations process
in late 2010—select and train a Negotiating Committee,
distribute a negotiations survey to the group to ascertain our
priorities, draft an opener and begin Negotiations May of
2011. The amount of our monthly insurance
costs (18% of the premium) can increase for 2011, subject to the
caps in the updated chart from Section
23. There will be a 1.5% increase on all
rates of pay effective The amount of our monthly insurance
costs (18% of the premium) can increase for 2012, subject to the
caps in the updated chart from Section 23. They cannot
change/increase again until the completion of Section Six
Negotiations. Q.
Are there any changes to our contract that are not
included in the documents we have been
given? A.
No. Q.
Does the A.
No. Q.
What effect does this TA have on our vote on
PBS? A.
None. That
vote will still take place in the Fall of 2010 (two years after
PBS was implemented). Q.
Doesn’t it help us to have the PBS re-ratification
occur while we are in Negotiations? A When the 2006 contract was ratified, we
expected PBS to be fully implemented by March 2007, so the
re-ratification vote would have been held in March 2009, before
negotiations began.
The idea was that both sides would know the outcome prior
to negotiations.
That was important because not knowing which scheduling
system we would be using would put negotiations into a
stall.
Traditionally, scheduling is one of the most important
pieces of the process.
Not knowing which system we would be using until 17
months into negotiations would mean we couldn’t make any
scheduling and/or related proposals. Management would not make any proposals that
involved money as they wouldn’t know their costs until
after the vote. The idea also presumes we want to have
the ratification process influenced by negotiations. Those that wish to keep
PBS do not want to be told they have to vote it down on the
hopes of other improvements. If management offered improvements before the
vote took place they would most certainly be contingent upon the
ratification of PBS.
Then those that want to go back to pre-built lines will
be appropriately angry, charging that they were being
blackmailed. Q.
What does “Contract Maximum” mean in the
updated insurance chart? A.
As with the original chart in your contract, the chart
shows the “worst case scenario” increase in our
insurance costs in the additional two years. Each figure is 15% above
the previous year’s cost. As you see from the actual figures we
have updated the original projections with the new “worst
case scenario.”
Historically costs have not hit the 15% threshold. At each year’s
open enrollment, we get the figures for next year’s
costs. In any year
that we don’t see the maximum 15% increase, the
“worst case scenario” for every subsequent year
becomes even lower, so all the numbers in the out years
decrease. Q.
How does this extension affect my insurance
costs? A.
The current contract permitted insurance rates to
increase by up to 15% in each year of the contract. To date the actual
annual increases have been under that 15%. Under both the extension
and the contract, insurance costs can be increased by up to 15%
over 2009 rates for 2010.
Under the current contract, the 2010 rates would then
freeze until a new contract was negotiated. Under the extension,
rates could increase up to the 15% in 2011 and 2012, and then
they would freeze while until a new contract was
negotiated. In both
scenarios, the value of the freeze depends on how long it takes
us to negotiate a new agreement and what changes, if any, we
were able to obtain in that agreement.
Because we have never hit the maximum
increases you see in your contract, adding two years of
“worst case scenario” to the current chart means
that the maximum potential costs that could be in effect at the
end of 2012 would be only about $2-$5 (depending on coverage)
greater than they were projected to have been for
2010. Q.
Do we still have a me-too with the pilots on
insurance? A.
We have a me-too on the plan, but not on our monthly
costs. If the
pilots improve (or worsen) the plan, we will get the
improvements. If
they increase their share of the insurance premium (say from 18%
to 20%), we would still pay 18%, and we would still have the 15%
cap on annual increases.
This is true regardless of whether we extend the contract
or not. Q.
We were shown PBP calculations based on earnings of
$20,000, $40,000 and $60,000. What if I made $44,000 last year—do I
only get the amount based on
$40,000. A.
No. The
examples were meant to be just that, examples. PBP for 2008 will
be paid at the rate of 2.5% of your W-2 wages. To determine your
payment, multiply your 2008 W-2 wages by .025. For an historical
calculation you can use .011 to see what your 2007 payout would
have been and .075 to see what your 2006 payout would have
been. The payout
for 2008 will occur on April 20, if the extension
ratifies. Q.
Can the PBP formula be
changed? A.
Yes, the Board of Directors can change the plan. However, PBP is a
component of the compensation of all management employees, so
they have an incentive to structure it to ensure a payout.
Q.
Does the change to PBP, or anything in the extension,
have an effect on our 401(k) A.
No. Q.
Does the change from VPP to PBP affect my OPR
payments? A.
No. Q.
Why does management want
this? A.
The pay increase we arrived at is in line with those we
typically see in negotiations. Negotiations do cost money, and spread
management resources thin.
They do not foster stable labor relations, and that can
impact our stock value.
Company leaders have expressed that they would like to
focus on running the airline right now, and they saw the
extension as potentially beneficial to both the Flight
Attendants and management.
That said, they are prepared to enter into Section Six
negotiations if the extension does not
ratify. Q.
If I vote yes, don’t I lose my chance to be survey
on my negotiations goals? A.
No. We would
conduct the survey prior to beginning negotiations in
2011. Thank you for your questions and
attendance at the base meetings. Kelle Wells, MEC President and
your MEC/LEC Officers. And a
reminder: Alaska/AFA Proposed Contract Extension
Conference Calls: Dial 1-800-260-0702 -- enter the Participant
Access Code for the appropriate date. There is a different
access code for each date. Calls are Pacific
Time Friday, February 27th
Wednesday, March 4Th Please call in to ask your questions
about the contract extension or
just listen to questions and
answers. |
