12.05.14 – (LAA/LUS) JCBA Arbitration Recap, LUS Transition Payment

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December 5, 2014

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The interest arbitration between APFA and AA continued Thursday in Washington, D.C. The company called three witnesses to testify: Dr. Darrin Lee, Airline Economist; Patrick Guiltinan, Principle on AA’s Labor Analysis Team; and Jerry Glass, chief negotiator for AA and president of FMH Solutions Group – a management and labor relations consulting firm. For a synopsis of the testimony, click here (Twitter) or here (Facebook). 
As a recap:

  • In its proposal, APFA proposed that the value of $112 million is the amount that the arbitrators must add to our combined contracts to equal market based in the aggregate. AA stipulated to this value.
  • APFA argued for a “me too” for health insurance, meaning that if the company offers another work group health insurance that differs from the health insurance in our JCBA, APFA will have the option of replacing our current insurance with such other health insurance beginning the following year. The company argued against a me too for health insurance.
  • APFA argued for a “me too” for profit sharing, meaning that if another workgroup on AA’s property is given a profit sharing plan, APFA has the option of reducing the wage rates by $50 million per year (the value allotted for profit sharing in our proposal) and adopting such profit sharing plan. The company argued against a me too for Profit Sharing.
  • APFA asked for pay rates retroactive to December 2, 2014. The company argued against retroactive pay rates.


Following opening remarks by both parties, and the testimony of APFA’s and AA’s witnesses, the Arbitration Panel is now charged with issuing a decision on whether to grant those items that were not stipulated to ($112 million above the value of current contracts) in APFA’s proposal  As soon as more information comes available, it will be posted via this hotline.
Q: Is the $3,000 transition payment for LUS Flight Attendants included in the arbitration proposal?
A: Yes, the transition payment helps equalize the benefit packages of the two legacy workgroups and achieve parity. The $3,000 stipend is integral to maintaining the balance.

Leslie Mayo
APFA National Communications Chair

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