7.11.01 – (LAA) – EC Endorses TA, TA Ratification Ballot

This is APFA President John Ward, calling from Chicago, with an updated HotLine.

Today is Wednesday, July 11, 2001. The time is approximately 1900 Central.

The APFA Executive Committee has unanimously endorsed the Tentative Agreement, paving the way for the membership to participate in the final ratification process.

The membership will soon be receiving highlights of the proposed contract as well as the actual contract language itself, for review. Both the highlights and the complete language will be available on the web site soon. This will be followed by T/A briefings at all base cities beginning in August. The schedule is being finalized and as soon as we have all the details, we will provide them on this HotLine, on the web site, and on base bulletin boards. Ballots will be mailed to your homes sometime in August for a September count.

On behalf of APFA, I would like to thank you for your constant support in this process, and now, please stay on the line for some details and highlights of the Tentative Agreement.


This is Leslie Mayo, National Communications Coordinator, with more HotLine News for Wednesday, July 11, 2001.

Now that the Executive Committee and the Negotiating Committee have unanimously endorsed the Tentative Agreement, it is time for the membership to play your critical role in our road to a contract by casting your vote. Ballots will be mailed shortly.


Following are some of the highlights of the Tentative Agreement.

Upon ratification, flight attendants will receive a retro lump sum of 8% of the wages they were paid from November ’98 through December ’99. Retroactively, effective January 1st, 2000, all flight attendants will receive a retro check equal to 3% of the wages they were paid in 2000 and a corresponding pay scale increase. Retroactively, effective January 1st, 2001, all flight attendants will receive a retro check equal to 6% of the wages they were paid up to the point of ratification as well as a corresponding pay scale increase. In summary, flight attendants will receive the retro payments detailed previously and an immediate compounded 9.2% pay scale increase on the date of ratification. Additional pay scale increases provided under the Tentative Agreement include an 8.5% increase on January 1, 2002, a 3% increase on January 1, 2003 and a 3% increase on January 1, 2004. The compounded increases over the life of the agreement, which becomes amendable in 2004, equals 25.7%. These wage increases will make the American Flight Attendants the top paid flight attendants in the industry on January 1st, 2002, only a few months after the contract takes effect. To provide an example of what Flight Attendants will receive in retro pay, a 20-year Domestic full-time Flight Attendant averaging 80 hours per month will receive a Lump Sum/Retro Check of approximately $7,000.

In addition to the base and incentive structural pay increases, Longevity Pay is also included in the Tentative Agreement paying those Flight Attendants with 25 to 30 years of seniority $1.00 per hour and those Flight Attendants with more than 30 years of seniority $1.50 per hour. A yearly maximum will apply.

Also, on top of the Lump Sum retro pay and pay increases, Flight Attendants will remain eligible for Profit Sharing under the Company Profit Sharing Plan. Payments for Plan Years 2002 and 2003 will be capped at 3.25% per year. In 2004, the Plan ìsnaps backî to the existing Company Profit Sharing Plan with no cap.

Holiday Pay is a new form of compensation that is part of our Tentative Agreement beginning with Christmas Day 2001. In 2002, New Yearís Day will be added, and in 2003 Thanksgiving will complete the list of three paid holidays, with the same three holidays paid in 2004. Pay will basically be double time. Additional forms of compensation include Language Pay which will increase from its current rate of $1.25 per hour to $2.30 on January 1, 2001 followed by a further increase to $2.50. A Reserve Override in the amount of $2.00 per hour will be paid to all reserve flight attendants with three or more years of occupational seniority. Purser Pay will increase Domestically to $4.15 on January 1, 2002 and again, on July 1, 2003, to $4.50 per hour on all wide body aircraft. Internationally, Purser Pay on wide body aircraft will increase to $6.00 an hour on January 1, 2002 and to $7.00 per hour on July 1, 2003. Internationally, Purser Pay on narrow body aircraft will increase to $4.00 an hour on January 1, 2002 and to $4.50 an hour on July 1, 2003. Domestic Lead Pay is also incorporated into the Tentative Agreement and will be paid at a rate of $1.25 per hour for aircraft with 100 seats of more and $1.00 per hour for aircraft with less than 100 seats. Flight Attendants will now receive Galley pay on the 757 both Internationally and Domestically. Domestic 757 aft galley pay will be $1.25 per hour and International 757 aft galley pay will be $1.75 per hour.

Immediately upon ratification, per diem increases will take effect. Domestically, the hourly per diem rate will increase to $1.85 and Internationally, to $2.05. All future increases will occur with a ìMe Tooî with the Pilots.

Other pay issues resolved with this Tentative Agreement include Diversion Pay or, as itís more commonly referred to, hostage pay. Flight Attendants will now receive full flight time pay and credit during the diversion if the aircraft is not at a gate. Ground Time has improved with the ìone-hourî trigger eliminated. Understaffing Pay increases from $7 to $10 per hour and a co-terminal ìstipendî ranging from $15.00 – $30.00, depending upon pre-established travel times.

Retirement has been greatly improved. Full Retirement Benefits will now begin at age 60 and pensionable hours have been increased to 85 hours per month for both the Domestic and International operations with a yearly maximum of 1020 hours. More pay categories are now included as pensionable items, including Retroactive Pay, Lump Sums, Narrowbody Lead Pay, Language Pay, Galley Pay, Purser Pay and Longevity Pay. Final Average Earnings are now calculated on the best 48 out of 120 months instead of 60 out of 120 months. Additional enhancements to retiree benefits include the elimination of the charge for the Qualified Pre-Survivor Annuity, Conversion of Sick Leave and Vacation Days to the 401(k) Plan, and an electable Pop-Up Annuity option.

On to Scheduling: E-Time will remain at 1 for 1. The current 4:45 averaging also remains. Reassignment Protection has been expanded from the last five days to the last seven days of the month. 24 in 7 will now be triggered by Standby and Training. Increased Deadheading flexibilities, the ability to make-up over the monthly maximum up to 85 hours, the ability to recover involuntary lost time regardless of protection (including those who fly high-time), a new Extended Long Range Flying Category for International and the ability to move an availability day up or back are all included in the new Tentative Agreement. Limited changes to Availability have been incorporated into this Tentative Agreement as well as the redefining of categories to “Open Replacement” and “Regular Replacement” Flight Attendants. The rejected Tentative Agreement contained a provision that required Available Flight Attendants who may have already maxed out to remain Available for assignment during the last five days of the month. This provision has been eliminated.

Changes to Reserve will include an additional duty free period to be added to each reserve line increasing days off to 12. Standby pay and credit will increase from three to five hours. Domestic Reservesí guarantee will increase to 75 hours with an 85-hour max. Reserves will now have the ability to indicate preferences for reserve assignments including layover city, departure time, co-terminal and trip duration. They will also have the ability to move-up or trade Duty Free Periods. Reserve Rotation remains unchanged.

The Volunteer Language Program for Domestic flying has been retained with Domestic Flight Attendants having priority over International in the choosing of trips. Domestic Language Speaker PVM positions will be allocated on no more than a total of 1% of all Domestic Flight Attendant ramp hours effective January 1, 2002 and will increase over a 30 month period to no more than 1.75%. The language selections will be built as pure selections and will exclude all three-class transcons.

The Trip Trading with Open Time Program has improved with the availability of a Trip Trade “Finder”, the ability to trade on overlapping days, the ability to trade “red” for “redder” in open time, Part-Time Flight Attendants capability to OE their trips, and an unlimited amount of OEís for all Flight Attendants.

We now have Merger and Acquisition protection in the event American is acquired by or acquires another carrier.

Vacation improvements include increased slots for bidding in July, August and December, an increase in the number of PVDs offered annually, unlimited vacation trading, and all turnarounds charged as only one PVD.

Other contractual Quality of Work Life enhancements include Single Rooms for training, First Class Crew Meals replacing snack packs on Domestic Flights and on International Flights under 8 hours, Business Class entrees for International flights of 8 hours or more, improved Crew Rest on both Domestic and International, Bereavement Leave expanded to include “Domestic Partners” and a reduction in the mileage threshold for Cabin Cleaning from 1500 to 1100 statute miles meaning less cabins to clean on through flights.

Let’s throw in some not-so-good: Appendix T will be eliminated 60 days following the ratification of this Tentative Agreement. However, Flight Attendants who elect Appendix T during this time-frame can do so without jeopardizing their full retirement benefit entitlements. In addition, Flight Attendants will have the option of Prefunding their Retiree Medical Benefits at $11.98 monthly beginning January 1, 2002. If a Flight Attendant chooses to join the plan later, they are required to pay age-based rates.

That’s it for now. Stay tuned to this HotLine, the web site, the upcoming Road Shows and Phone Watch at 866.ASK-APFA for more details on the Tentative Agreement. Donít forget to wear your Union Pin and thank you for calling the APFA HotLine.

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