From the inter webs:
Subject: Agreement in Principle Reached
Fellow Pilots:
We are pleased to announce that late Friday an Agreement-in-Principle (AIP) was reached with Spirit Airlines. The final AIP added $56 million to the package offered by the Company in September.
While many sections have already been tentatively agreed to, the next step is to convert the remaining AIPs into final language. The Negotiating Committee anticipates a two-week process for this step. Last year, the Hawaiian Tentative Agreement (TA) language came 4 days after they reached an AIP, Southwest took almost a month.
Following an agreement on final TA language by both parties, the Negotiating Committee will present the TA to the MEC for formal consideration and decision on whether to send it out to the pilot group for a ratification vote. Each active member in good standing will then be asked to participate in the democratic process of our union and decide whether to ratify the agreement.
Please know that there will be plenty of time to read the final TA language, attend road shows outlining the changes, and have questions answered before voting. Our communications team has been developing a TA information website which we will launch if the MEC approves the TA. There will also be a direct TA questions email address.
Between now and the release of the full TA language, and the road shows and supporting information, we highly encourage you to refrain from engaging in speculation about the details of the agreement. If you are not getting your information from the Negotiating Committee it is not reliable! We urge everyone to wait for clear facts.
MEC members are already receiving calls, texts, emails requesting details. The MEC is under a gag order from the National Mediation Board and cannot reveal any of the details of the AIP.
For now, we include a highlight of the key economic aspects of the AIP. The Negotiating Committee will provide details as soon as the TA language is final.
● Scope: Industry standard protections including improvements in the areas of merger and/or acquisition, successorship, and code sharing.
● Average 43% increase in pay rates on date of signing (DOS).
● Industry standard 12 year pay scale
Hourly Rate
Estimated Effective Rate with A321 Override
Top Captain DOS
$237.50
$242.97
Top Captain DOS+4
$259.60
$264.35
10 Year CA DOS
$224.13
$229.28
10 Year CA DOS+4
$244.98
$250.61
5th Year FO DOS
$125.73
$128.62
5th Year FO DOS+4
$137.42
$140.58
2nd Year FO DOS
$104.42
$106.83
● Direct Contribution to 401K of 11% DOS; 12% DOS+1; 13% DOS+3; 14% DOS+3; 15% DOS+4.
● Company retirement contributions in excess of IRS limits will be paid directly to the pilot.
● $75 million distributed to the pilot group upon ratification.
● Retained one of the industry leading healthcare provisions with no change to the cost structure.
● Industry standard rig package with PBS, including 5-hour minimum duty period average, 1:2 duty rig, 1:3.5, additional duty period credit for layovers in excess of 24 hours.
● Current rigs maintained until PBS. The cash value of the 5-hour minimum duty period average from DOS to PBS added to retro payment.
● Increased sick leave accrual to 5 hours per month and bank limit to 700 hours.
● Industry standard long-term disability (LTD) benefit providing own occupation coverage to mandatory retirement age, with optional buy-up to $15,000/month.
● Long Call Reserve
● Industry standard fatigue policy with pay protection
● Standing Available list replaced with a new system providing 200% pay.
● Company designated open trips at 200%
● Additional opportunities to earn premium pay.
PBS LOA requiring mutual agreement in all aspects of PBS except ALPA controls vendor selection. Additional protections/provisions include:
o Protection against altering the terms and conditions of the CBA due to implementation of PBS.
o PBS to allow pilots the option to individually waive 4 days off on a 6-month trial basis. ALPA option to retain the individual waiver function.
o No changes to Red/Green system.
o Final schedule open time levels guaranteed to remain at current levels
o JPWG will have remote access to both pairing optimizer and PBS software
o Improved joint pairing construction
o Retained industry leading credit options and flexibility for vacation
o No Position reductions (downgrades or furloughs) as a result of PBS
o PBS implementation scheduled for 12 months following vendor selection.
o Company paid ALPA leave, positive space travel, hotel and per diem for ALPA members of the JPWG
o Expedited dispute resolution process requiring the arbitrator to give special consideration to mainline carriers using the same PBS vendor.
We look forward to sharing full details with you in the near future. Until then we urge you to stick to the facts, address your questions to your reps and Negotiating Committee members, and continue to do the outstanding and professional work you do each day.
In unity,
MEC signatures
