AFA
On April 6, United and the Association of Flight Attendants began the negotiations process to revise the current collective bargaining agreement. The meetings were conducted in a very straightforward and professional manner.
Following introductions of the negotiating teams and opening remarks, United and the AFA each presented their opening proposals.
The full text of United’s opener is posted below. The main issues United discussed were the need for agreements that delivered in three key areas:
- Competitive wages, benefits, and work rules
- Meaningful incentive compensation tied to measurable and realistic performance metrics
- Flexibility to respond to changes in the marketplace, evolving customer expectations and emerging commercial opportunities
Most Recent Update: August 31, 2010
United and AFA negotiators met in Chicago with NMB mediator John Livingood on August 23-25. The agenda included Section 15 (Training and Meetings), 17 (Seniority), 21 (Reduction in Personnel), 22 (Filling of Vacancies), and 24 (Moving Expenses). The parties also discussed Section 23 (Leaves of Absence). We did not resolve any open issues.
In view of the announced agreement to merge with Continental, United is basing its Sec. 6 proposals on Continental’s Flight Attendant Agreement. United negotiators have advocated a Continental-like contract since the fall of 2009. In June and July 2010, United offered AFA complete, Continental-based proposals in the areas of hotels, sick leave, vacation, deadheading and PTO.
Similarly, last week United offered complete, Continental-based proposals for Training and Meetings , Seniority, Reduction in Personnel, Filling of Vacancies, Moving Expenses and Leaves of Absence. The United proposals included all elements of the Continental contract in these areas, not just those elements that would result in cost savings. These proposals included, for example, two hours thirty minutes (2:30) pay and credit per day for training or meetings, and maximum medical leaves of absence of six years, compared to the current maximum of three years. The proposals also contained elements that would reduce costs for United.
Overall, Continental’s contractual work rules are characterized by a high degree of Flight Attendant flexibility and individual choice, translating into superior efficiency. This efficiency in the area of work rules, combined with a more economical benefit cost structure, enables Continental to maintain competitive overall labor costs while at the same time delivering an attractive compensation package, highlighted as follows:
| United | Continental | Continental % higher | |
|---|---|---|---|
| Domestic top rate | $39.75 | $50 | 26% |
| International top rate | $43.14 | $51 | 18% |
| Domestic per diem | $1.50 | $1.85 | 23% |
| International per diem | $1.75 | $2.50 | 43% |
| Language pay | $1.54 | $2.50 | 62% |
| Incentive pay | None | $5 |
In addition to the $2.50 language pay premium, Continental determines on a monthly basis the number of designated foreign language speaker lines, and pays that same number of active Flight Attendants, in seniority order, an additional $2.50 per hour flown (a Flight Attendant cannot receive both premiums in the same month).
In the area of incentive pay, Continental pays a $5 per hour premium to base rate for all block hours, inclusive of deadhead and vacation, flown between 225 and 330 per calendar quarter, except that the incentive rate does not apply to hours over 110 in a month.
Not only do they enable higher pay, but Continental’s work rules are attractive in and of themselves, offering Flight Attendants greater flexibility and individualized options. For example:
| CONTINENTAL | ADVANTAGE |
|---|---|
| No cap on flying except for a minimum of 8 days off (10 for Reserves) and the “24-in-7” FAR. | Combined with the $5 per hour of incentive pay, FAs who want to work an average of more than 75 block hours per month have great opportunity to maximize earnings. |
| 1 to 1.5 hour extension of working duty day maximums compared to UA, combined with elimination of “8-in-24” and “30-in-7.” | Allows for more productive days with fewer and shorter sits, increased earning opportunities and the ability to complete the month’s flying in fewer work days. |
| Maximum line can be built to 92:30 domestic and 97 intl. (May flex no more than 20% of lines to 95.27 domestic and 100 intl., but this option is rarely used). | Flight Attendant who doesn’t want to fly beyond bid line awarded doesn’t have to. As a practical matter, CO lines are built from mid-70’s to the contractual maximum, with an average of approximately 83. |
| Liberalized trip trading, including trades of partial trips and jet-way trades. | Greater schedule flexibility and an extra advantage for commuters. |
| No pre-set limits on number of trips that can be dropped in a given day. Instead, limits based on available reserve coverage. | Greater schedule flexibility. More opportunity to trade lower value trips for higher value trips, increasing earning opportunities and potential to complete month’s flying sooner. |
| Flight Attendants may fly as little as 40 hours per month for full vacation and sick accruals. | Appropriately allocates accruals and benefits to those Flight Attendants who are doing more work, while preserving an ability to work less than 40 hours for those who want to. |
| Lineholder minimum guarantee of 70 hours. | Greater income protection. |
| Lineholder vacation paid at 3:15 per day. | Greater value for each vacation day. |
| Flight Attendants may choose to place a week of their next year’s accrued vacation in their 401(k) account. | Greater flexibility in use of accrued vacation and 401(k) contributions. |
| Option to take up to seven additional vacation days per year, either unpaid or by “buying” the vacation through monthly deductions. | More vacation and time-off options. |
| Flight Attendants may submit requests to fly during vacation. Flight Attendants are paid the value of the vacation along with the value of any trips flown. | More vacation options and the opportunity to increase earnings. |
| Separate catastrophic sick bank allows Flight Attendants to accrue time beyond the sick bank maximum that can be used for major/long term illness/injury | Additional income protection for long-term illness or injury. |
| Rapid re-accrual of 7:00 per month for Flight Attendants who due to maternity or a single injury/illness have used more than 255:00 of sick. | Rapid replenishment of sick bank following maternity or major injury/illness. |
| Separate occupational sick bank. | Additional income protection for those injured on the job. |
| Job-sharing partnership program both on a month-to-month and annual basis. Available at all times and not just during periods of furloughs. | Greater flexibility for Flight Attendants who want to work part-time. |
| Flight Attendants bid and trade based on aircraft work position. | At time of award, Flight Attendants know where they will be working on aircraft for all IDs. |
| Hotel Gain-Sharing: Flight Attendant may cancel hotel room between 72 and 24 hrs. before check-in for trip and be reimbursed not less than $20 per cancelled room in U.S. Mainland and Honolulu. | Flight Attendant who knows in advance that she/he won’t need a layover hotel room can share in the Company’s savings from the cancelled room. |
| Pure seniority as opposed to the current A/B rotation system for reserves. | Flight Attendants move off of reserve status and achieve pure lineholder status sooner. |
| Reserve guarantee of 83 hours. | Greater income protection. |
| Reserve Flight Attendants can submit preference for low time or high time for next day’s assignment. | Greater flexibility and individual control over flying. |
| Reserves returning from days off, including vacation, may pick up out of open time trips departing the next day at 11:00 AM or earlier. If there are no trips in open time, they can pick up any trip subject to contractual parameters. | Greater flexibility and individual control over flying. |
| Reserves build their own reserve move-up lines based on seniority and subject to coverage limitations. Occurs after lineholder trading is completed. | Greater flexibility and individual control over flying. |
| In low demand months, reserve days off can increase up to 15 subject to adjustment of monthly guarantee. However, no reserve can be forced into a reserve line with more than 10 days off. | Greater flexibility for reserves who want more days off. |
| Purser (“ISM” at CO) reserve lines built with a 4-day set of immoveable days off. | Greater flexibility to plan personal activities on days off without concern that work may interfere. |
AFA publicly asserts a desire to negotiate a new collective agreement on an expedited basis. At the same time, AFA negotiators refuse to engage in any “give and take” bargaining on issues of economic importance. United will continue to negotiate in good faith with AFA during mediated sessions, and will make proposals designed to lead to a Continental-like outcome, which enables us to improve productivity and pay our people more.
United negotiators are meeting with every union other than AFA outside of dates where the mediator is available, based on negotiating progress and the willingness of the other unions to engage in meaningful negotiations. United has advised that it will meet with AFA outside of mediation when there is likelihood of progress, and a willingness of the AFA Negotiating Committee to move forward in negotiations.
The next round of mediated negotiations is scheduled for September 21-23 in Chicago. The agenda will be Section 7 (Hours of Service and Contractual Legalities), 8 (Minimum Pay and Credit), and 9 (Flight Assignments and Scheduling Procedures).