MEC Hotline – January 10, 2014
Today, the MEC affirmed an Agreement In Principle (AIP) giving the company contractual concessions in return for a guarantee of 60 new Embraer 175 aircraft, options for 90 more, and increased flow through opportunities. Attached to this communication is a summary of the agreement. We encourage all pilots to read this document thoroughly.
The ALPA officers and leadership are preparing further communications for the pilot group in order to ensure that everyone has a complete understanding of all the facets of this AIP. The purpose of this AIP is to allow the process of moving toward changes in our pilot contract. Before the changes actually become effective, ALPA will conduct an educational campaign and appearance events allowing all pilots to give feedback, ask questions and gain a thorough understanding. During this process, ALPA and the company must reach agreement on the contractual language. At that point, the MEC will reconvene to review and approve the language. Upon MEC approval, the language will then be made available to the pilots prior to a ratification vote.
This AIP will have varying levels of impact upon different pilots in the group and will take time to sufficiently grasp. Your leadership is committed to the education of the pilot group. Please contact your status reps with questions, concerns or feedback and we will do everything possible to respond.
The company chose to put us in this onerous position, however we will work through this together. This agreement will live or die on its merits alone. Even though there will be differing opinions, I am committed to maintaining an unbiased, objective perspective throughout the remainder of the process.
Fly safe.
Bill Sprague
MEC Chairman
Summary of the Agreement in Principle – January 10, 2014
Duration
10 years from DOS.
Compensation
Pay rate scales will be frozen until 2018.
Beginning 1/1/2018, pilots will receive 1% annual increases unless they have declined flow through. However, Captains at longevity step 18 as of the date of signing of this agreement who decline flow through will receive the 1% annual pay rate increases beginning in 2018.
Captain and First Officer turbo-prop rates will be eliminated.
Longevity step increases will continue until the first EMB-175 delivery or 3/31/2015,
whichever is later.
- Thereafter, the Captain pay scale will be capped at 12 years of service and the
First Officer pay scale will be capped at 4 years of service.
- Captains above pay step 12 and First Officers above pay step 4 on that date will
remain at their current step.
Effective with the 1st EMB-175 delivery, a pilot who declines an offer at American Airlines will cease to receive longevity step increases at the time he declines flow through, except that any captain at steps 15 through 17 when the first EMB-175 is delivered will be allowed to advance to step 18.
Effective 1/1/2014, profit sharing will be eliminated as long as it is eliminated for all other AE employees.
Enhanced Flowthrough
Beginning 9/1/2014, American Eagle will not restrict the flow of pilots to less than
30 per month.
Protected Pilots The minimum available AA class positions will be increased from
35% to 50% for pilots who were on the seniority list as of 10/11/2011.
All pilots hired after 10/11/2011 (including future hires) will have the same flow through opportunities provided by the Protected Pilot Agreement.
- The minimum available AA class positions will be 50%.
- Pilots hired after 10/11/2011 may be withheld for active
Performance/Attendance Advisories. An expedited dispute resolution
process will be available to such pilots.
Annual True-up In any year that AA hires 720 or more pilots, at least 360 will be
Effective 1/1/2015 Eagle Flowthrough Pilots.
In any year that AA hires fewer than 720 pilots, at least 50%
will be Eagle Flowthrough Pilots.
This does not release the company from the obligation to
release at least 30 pilots/month subject to the 50% calculation.
Within 30 days of mainline integration, Eagle and ALPA will meet and consider flow through enhancements.
Nothing in this proposal will compromise the Association’s position with respect to the current withholding dispute.
Sick
Accrual After 90 days but less than 5 years of service: 3.5 hours/month
Effective 1/1/2015 After 5 years of service: 4.0 hours/month
Supplemental Sick Banks will be frozen but remain available.
Effective DOS Eliminate 7 day waiting period for access to supplemental sick.
Reserve days will be paid and credited at 4 hours/day.
PTO system will be eliminated.
Vacation
Accrual After 1 year 1 week
Effective 1/1/2016 After 2 years 2 weeks
After 7 years 3 weeks
After 14 years 4 weeks
No pilot’s accrual rate will be lower than the rate he or she has on 1/1/2016.
Vacation for new hires will be pro-rated in accordance with the current Eagle Contract.
Return to the 2009 CBA vacation section except as modified above.
PTO system will be eliminated.
EMB-175 Initial Cadre
The company wants to abbreviate the training when the EMB-175s are delivered, so the initial cadre may be trained in advance and returned to their old equipment until EMB-175s are delivered.
The initial cadre training for EMB-175 pilots who are trained in the EMB-175 will return to their existing equipment type once the initial cadre training is completed.
No company jeopardy during the training to return to existing equipment and subsequent requalification training for the EMB-175.
Per Diem
Per diem will be $1.80 for the duration of the contract.
Medical
Effective 1/1/15, increase employee contribution from 30% to 31%
Effective 1/1/16, increase employee contribution to 33%
Effective 1/1/17, increase employee contribution to 35%
Retirement
Maintain Eagle 401(k) plan.
PBS
The parties’ obligations under Letter 13-04 are suspended (without retroactive effect) until delivery of the 61st EMB-175 at American Eagle Airlines.
Signing Bonus
$1500 paid to each active pilot as of the date of ratification.
Payments will be made within 30 days after DOS.
Amendment Round
Reopener of no cost items at 5 years after Date of Signing. Each party may submit up to 5 issues which will be resolved in interest arbitration if not resolved in negotiations.
Fleet Commitment
Minimum of 60 EMB-175s to be operated by pilots on the seniority list.
If AAG acquires additional EMB-175 aircraft from the manufacturer, the first 90 such aircraft delivered will be placed on the EGL operating certificate.