3.30.15 – (LAA/LUS) Printed Contract, Flight Pay Loss, Fringe Benefit

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March 30, 2015

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Printed Contract Coming to Your Base!
APFA is pleased to report that the printed version of the JCBA is arriving at bases system wide. In accordance with Section 32, the company is responsible for the printing and distribution of the Contract. If you haven’t already received your copy, please check with your local Flight Service office over the next week.

The Joint Negotiating Committee spent hundreds of hours reviewing the language prior to approving the packet for print to ensure that every word reflected what was intended in bargaining. It was a monumental task, but the result is a document we can all be proud of. Please carry your contract with you and refer to it often.
The company is in the process of reviewing the On Duty Contract Guides prepared by APFA for both LAA and LUS. APFA will review/approve the final text and the ODCGs will then be prepared for print and distributed to the membership.
APFA negotiators will be conducting contract training at the bases soon. Once announced, these classes will fill up fast. As soon as the dates are firm, we will announce on this Hotline so please stay tuned!
Of note: There are two provisions in Section 32.G that deal with “flight pay loss” for Flight Attendants who are removed from a trip for union business. Typically, an airline pays the Flight Attendant for the trip and the union reimburses the company for this cost. In most contracts, in addition to reimbursing the airline for flight pay, a union is also required to cover wage-related benefits, also called “fringe benefits,” such as Social Security and Medicare. This is common practice across all workgroups and industries and not specific to labor unions in the aviation industry.
At LAA, APFA was required to reimburse American for flight pay loss, but not for fringe benefits. At LUS, AFA did not have to reimburse US Airways for flight pay loss or fringe benefits up to 693 hours per month. However, for all flight hours above 693, AFA had to reimburse the airline for both the flight pay and a fringe benefit override equaling 26% of the flight pay.  
During negotiations, the JNC dealt with flight pay loss provisions at LAA and LUS that differed greatly. In negotiations the JNC focused on retaining the benefit of Company-provided flight pay loss. After extensive bargaining over this issue, the parties agreed that the Company would provide APFA with 350 hours of flight pay loss per month.
Since both teams were guided by an adopt-and-go process, Section 34.G language was copied from the LUS Red Book into the JCBA. However, the financial impact of the fringe benefit provision was not fully costed. As the contract was preparing for print, APFA realized the total cost of the fringe penalty and contacted the company. We explained that the team would not have focused on Company-paid flight pay loss had it realized the weight of the fringe benefit provision. The JNC pointed out that the cost APFA would have to bear in paying the 26% override would far outweigh the savings it would realize from 350 monthly hours in flight pay loss credit.
Ultimately, APFA is very pleased that the company agreed to eliminate both the 350-hour provision and the fringe benefit override from Section 32.G, providing the Union with a substantial savings. Click here to read the Letter of Agreement.

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