United Airlines Negotiations : Fact Check : AFA Work Rules

United’s objective in the current round of labor negotiations is to reach a new agreement that delivers competitive wages, benefits and work rules for our Flight attendants and enables United to compete. Contrary to claims made in AFA publications and audio messages, United’s objective is not a “cost-neutral,” “concessionary” or “status quo” labor contract.

Labor costs are broadly divided into three segments: pay, benefits, and work rules or productivity. Work rules determine how effectively an airline can utilize its Flight Attendant work force. The less productive the work rules, the more the company must carry “extra employees” to handle the flying. Productivity is an important component of overall costs. The more an airline incurs extra cost due to work rule inefficiencies, the less money that airline will have to devote to pay and benefits.

Labor contracts at older, network carriers like United have historically contained a variety of work rules that were the product of an era of regulation when it was easier to pass along costs to customers. Newer competitors - the low cost carriers - entered the marketplace in the 1980s and 1990s without most of the network carriers’ work rule restrictions.

Today, Flight Attendant work rules at United are not industry competitive, and are among the most inefficient. For example, we are the only carrier where Flight Attendants can trade away their entire schedule month after month. We have a significant number of Flight Attendants who receive full benefits, seniority and longevity accrual, and pass travel privileges while performing little or no work for United during the course of an entire year. The cost of providing this flexibility is a cost that is unique to United, and makes it more difficult for us to reward the Flight Attendants who make this a full-time job. Our competitors either have minimum flying requirements, or make Flight Attendants pay 100% of their benefit costs if they fall below certain flying thresholds.

Below are a few more examples of Flight Attendant work rules where United is extraordinarily out of line with the rest of the industry, undermining United’s ability to compete:

Trip Trading Away Work United Flight Attendants are the only employee group at United and the only group of Flight Attendants in the industry who have an unrestricted ability to trade away their entire work schedule each month. These United Flight Attendants still get full benefits and pass travel privileges, and they accrue seniority and longevity. Approximately 1000 work less than 30 hours per month, but continue to enjoy subsidized benefits, sick leave and vacation accrual. This means that Flight Attendants who do work full time are subsidizing those Flight Attendants who perform little or no work for the Company.	Minimum Fly United proposes a new restriction on the number of hours that a FA may trade away. Flight Attendants would not be entitled to trip trades below 50 credited hours for the month, prorated. United’s proposed change would not reduce FA benefit accrual or entitlement. The current lack of restriction, makes UA uncompetitive. For example Flight Attendants at DL, CO and AA, who do not meet minimum fly requirements have their benefits reduced or eliminated, including in some cases having to pay the full cost of healthcare premiums, no vacation or sick leave accrual, etc.
Personal Time Off (GWOP) United is required to guarantee 1% of a domicile’s active Flight Attendant population time off without pay every day of the year. No other airline has this requirement.	United proposes to eliminate this requirement and has offered to negotiate over other ways that Flight Attendants can have schedule flexibility. Even without new methods, United Flight Attendants will still enjoy greater schedule flexibility than their peers at other airlines.
Vacation United Flight Attendants accrue more vacation and increase their rate of vacation accrual faster than any other group of Flight Attendants in the industry, maxing out at 40 days. United’s vacation pay is less generous than some of its competitors. For example, DL maximum is 20 days for all Flight Attendants hired after 1988; Co is 37 days; AA is 28; US is 35.	United proposes to reduce Flight Attendant vacation accrual, which will make United Flight Attendants more productive. We have made an opening proposal, and have indicated that it is not a final offer. We also are willing to increase Flight Attendant compensation, including pay during vacation, in exchange for more productivity.
The contractual limitations on United’s ability to schedule Flight Attendants efficiently are some of the most restrictive in the industry. Here are some examples:
Quarterly system United must use a quarterly system for scheduling Flight Attendants. In a quarterly system, there are limits both on the amount of time a Flight Attendant can be scheduled each month, and on how much time they can work for the entire quarter. This often results in imbalances in the number of available Flight Attendants at the end of the quarter. All other airlines schedule on a monthly basis. United is uniquely burdened by the quarterly system which drives the need for additional employees to cover open trips and hinders manpower planning.	United is proposing to go to a monthly system, which would improve Flight Attendant productivity. In the monthly system we propose, that each month there is a maximum flight time for all Flight Attendants. This would enable United to better predict its staffing needs, maintain an appropriate-sized workforce, and provide for a more even distribution of work.
Restrictions on East / West Transcon turns Currently United cannot schedule single duty period turns that are longer than 8:30 hours, except West Coast - Hawaii turns, which are very popular with United Flight Attendants. DL and CO, for example have no restriction on the number of flight hours in a 24 hour period.	United is proposing to eliminate some of the restrictions so that we can schedule more single duty period turns, similar to DL and CO.
Duty Rigs At United, the guaranteed minimum pay and credit for: A single duty period trip: 5 hours pay. Average 5 hours pay per day for trips with multiple duty periods. (Domestic operation) - 1 hour pay for 3 hours away from home after delay in excess of 4 hours (a.k.a. 1 for 3 after 4).	United seeks to eliminate the duty RIGs that are uncompetitive. AA and DL - 4:45 hours pay per duty period, NW 4:15, and CO has no provision. No other carrier has 1 for 3 after 4.
Minimum Rest Provisions United has the longest layover requirements in the industry. United is the only carrier that has a required amount of time at the place of lodging. In international operation, the 33 hour and place of lodging requirements can drive layovers so long that the FA spends two-nights at a hotel, which is not the case at other carriers.	United seeks to eliminate these disadvantages, and establish reasonable rest requirements.
Other Legalities United is the only carrier burdened with many other restrictions, such as: 8 hours flying within a 24 hour period (8 in 24) requires interim 2 for 1 rest and 16 hours rest following the 8 hours. In the domestic operation, relief from duty must be 1 calendar day off in any 7 consecutive calendar days (1 in 7).	United seeks to eliminate these competitive disadvantages. No other carrier has this combination of scheduling restrictions.

More broadly, the chart below highlights in red those work rule areas where United is uncompetitive in terms of productivity to the rest of the industry. On this chart, green shows where United is more competitive, and yellow is where United is comparable.

Wages / Premiums Related:	Less	Comp	More	Delta	Continental	American	Northwest	US Airways-East
Lineholder Guarantee	2	0	3
Reserve Guarantee	2	1	2
Performance Bonus	3	0	1	?
Profit Bonus	1	0	4
Basis of Pay - By Pairing/Segment	3	2	0
Duty Rig	2	1	2
Trip Rig	2	3	0
Minimum Day Rig	4	1	0
Drafting Pay Premium	3	0	2
Reserve Override	5	0	0
Night Pay	5	0	0
Holidays	4	1	0
Holiday Premium	5	0	0
Vacation Pay	0	0	5
Vacation Accrual	5	0	0
Deadhead Pay	2	3	0
Sum (Wages)	48	12	19
Expense Related:	Less	Comp	More	Delta	Continental	American	Northwest	US Airways-East
Per Diem - Domestic	0	1	4
Per Diem - International	0	1	4
Hotel Standards	5	0	0
Hotel (place lodging minimum)	5	0	0
Flight Pay Loss - $ No Cost to Union	3	0	0	n/a		?
Moving Expenses - When Paid	3	2	0
Crew Meals	3	2	0
Sums (Expenses)	19	6	8
Productivity Related:	Less	Comp	More	Delta	Continental	American	Northwest	US Airways-East
Scheduled Duty - Domestic	4	0	1
Actual Duty - Domestic	4	0	1
Scheduled Duty - International	2	2	1
Actual Duty - International	2	0	3
Minimum Rest - Domestic	0	0	5
Minimum Rest - International	5	0	0
Minimum Days Off - Lineholders	1	2	2
Minimum Days Off - RSVs	2	1	2
Line Building Maximum	4	0	1
Guaranteed Time Off	5	0	0
8 in 24 Legality & 2-for-1 16 Hour Rest	5	0	0
Quarterly System	5	0	0
30 in 7	3	2	0
1 in 7	5	0	0
1 for 3 After 4	5	0	0
Transcon Turns	3	2	0
Minimum Fly	5	0	0
Line Cap Flexibility	3	2	0
Satellite Operations	4	1	0
Domestic Flying	3	1	1
Regional Flight Attendants	3	0	2
Sums (Productivity)	73	13	19
	Less	Comp	More
Total Sums	140	31	46

To be clear, United must have additional productivity in order to increase Flight Attendant wages. We view productivity improvement as a necessity and a long-term objective. AFA asserts at the bargaining table that productivity gains in a new contract will lead to even more furloughs. We are willing to negotiate over ways to avoid the need for additional furloughs. There is a clear connection between work rule productivity and pay.

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