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8.24.12 – (LAA) – TSP, Sick Policy, Thresholds, Implementation Information

APFA Hotline Update for Friday, August 24, 2012.

Q&A’s, TSP, Sick Policy and Thresholds
Implementation Information
We expect the newly-ratified contract to be approved by the court on September 12th, or shortly thereafter.  Once approved, the company will implement some aspects of the new contract immediately, while others will take far longer to sort out. Know that as soon as we receive the timing of the changes to our contract, we will forward the information to you.

VEOP Briefings
APFA’s retirement representative Patrick Hancock will be conducting VEOP and retirement briefings beginning September 4th with the intention of completing these visits prior to the deadline for VEOP applications. Dates, times and locations are as follows:

September 4 from 11 a.m. to 2 p.m.

Chicago O’Hare Airport
West Conference Room ratified
Located at the Mezzanine Level above the International Ticket Counters

September 7

11 a.m. to 2 p.m.
DFW Airport
Yandry Center

September 10

11 a.m. to 2 p.m.
JFK International Airport, Terminal 8
Mark Dupont Room located across from AA Pilot’s Operations

September 11

11 a.m. to 2 p.m.
Ayres Hotel Manhattan Beach/Hawthorne/LAX
14400 Hindry Avenue
Hawthorne, CA 
Telephone #: 310-536-0400
APFA will pay for parking

September 13

11 a.m. to 2 p.m.
Concourse D Auditorium located in North Terminal Level 4
1. Follow signs to Ticketing/Check In, departure level, Dolphin Parking Garage on the left hand side (North Terminal, in front of Concourse D)
2. Take a ticket and proceed to the Dolphin Parking Garage (North) entrance
3. Park on or above the third floor toward the east side of the lot
4. On the third floor of the parking garage walk to the easternmost end of the lot and take that walkway to the building/terminal
5. Go to the American Airlines Credit Union and turn right to the escalator – The elevators are to the right, behind the escalator
6. Exit the fourth floor and the Auditorium will be on the right as you get off the escalator
Question: What is a TSP?
A. The Travel Separation Program (TSP) is an option for FAs to separate from the company with travel privileges. There are two levels of TSP available – the first for FAs with 5-9 years of Company Seniority who are eligible for 5 years of D2 travel for self/spouse/dependent children; and the other for FAS with 10+ years of Company Seniority who are eligible for 10 years of D2 travel for self/spouse/dependent children. All travel privileges will cease after the specified period. The election period is expected to follow the VEOP election period. The Company anticipates offering the TSP between 17-23SEP. FAs who elect the TSP will bid for their actual separation date along with the VEOP FAs around 1OCT. The TSP cannot be combined with the VEOP.

Question: How will I be paid for my sick absences?
A. Sick absences will be paid with trips missed. Once the new sick policy is implemented, any short term absences (less than 10 days) will be limited to 60 hours of pay annually or the hours in an FAs short term sick bank if less than 60. For long term absences, the pay will be limited to the hours in the long term sick bank, up to the maximum of 940 hours, but in both cases absences will be paid as trips missed.

Thresholds for Vacation, Sick, Health and Employment
There is some confusion about how the minimum thresholds for various accruals will affect us. With the new contract, there will be a new minimum number of required annual paid hours to maintain employment. All changes will be prospective and every FA will have a chance to meet all of the new thresholds. There are three different thresholds with two different look-back dates. In all instances “paid hours” include, but are not limited to, paid sick and vacation. The following is a brief overview.

Vacation and Sick Leave Accrual Threshold: 600-Paid Hours Annually (January 1 to December 31 look-back) The way we accrue vacation and sick time has not changed. The only change is the new threshold will be 600-paid hours in the previous year (January 1 to December 31) instead of 420 hours. In January 2013, FAs will be expected to meet the current 420-hour threshold. In January 2014, FAs will be expected to meet the new 600-hour threshold.

Employment Threshold: 420-Paid Hours Annually (January 1 to December 31 look-back) January 2014 will be the first time that the 420-hour minimum threshold for maintaining employment will be calculated. Every FA has the opportunity to meet the 35-hours per month average between January 1, 2013 and December 31, 2013. Mid-January 2014, when our SK and VC accruals are posted, will be the first time an FA could be separated from the company for failing to meet the 420-paid hours requirement.

Health Insurance Benefit Threshold: 600-Paid Hours Annually (August 1 to July 31 look-back) A significant threshold change for eligibility is contained in the new contract to maintain health insurance benefits. Today, there is a monthly “rolling” 12-month look-back. Each month, an FA can enter into and out of eligibility for subsidized insurance. With the new contract, there will only be a single annual look-back period with a minimum required threshold of 600-paid hours. As of August 1, 2013, in order to qualify for subsidized health benefits, every FA will have to have flown an average of 50 paid hours per active month to qualify. So, from January 1, 2013 to July 31, 2013, FAs will have to fly an average of 50-paid hours per month. On August 1, 2013, AA will look-back and calculate whether each FA meets the threshold for subsidized coverage for the entire 2014 calendar year. If so, FAs will maintain coverage for the entire year with no more look-backs until the following August to determine eligibility for the next benefits enrollment period.

Question: How will the balance of time between ratification and January 2014 (when the new health benefits threshold applies) be treated?
Answer: You must meet the rolling 12 month look-back threshold of 420 paid hours until December 2013 to maintain subsidized coverage just as you do today.

Keep in mind that no one will be harmed by a backwards look at this point. All of the threshold changes apply prospectively giving us a chance to meet the thresholds and accruals that matter to everyone of us.

AmericanAirlines + US Airways
“Our Future Depends On It”

Leslie Mayo
National Communications Coordinator
APFA Headquarters
Tel. 817.540.0108

1004 West Euless Boulevard
Euless, Texas 76040

Phone: (817) 540-0108
Fax: (817) 540-2077


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