November 19, 2010 Compensation Proposal

2012-2016 Contract

November 19, 2010 AFA Section 5 - Compensation Proposal

On November 19, 2010 AFA took an innovative approach towards our Section 6 Negotiations by providing management with our Proposal on Section 5 – Compensation.  Traditionally Compensation is one of the last items discussed in negotiations, but because of the stall and delay tactics employed by our management, it became clear we needed to address this critical issue sooner rather than later.

AFA has proposed an industry-leading compensation proposal, with a single pay scale and longevity raises to 20 years.  This was presented at the negotiating table during our mediation session the week of November 15, 2010.  The proposal is reasonable for Flight Attendant compensation at the industry’s leading airline.  The proposal also recognizes our sacrifices and hard work to pull United Airlines out of its darkest days brought on by abysmal former management decisions. And, the proposals recognize the value of Flight Attendant contributions to our airline's success. We have already put management on notice that we expect retroactive pay to be negotiated to the amendable date of the Contract, January 7, 2010.

  • We all recognize that domestic pay has languished and therefore we are proposing a single pay scale with increases for everyone.
  • We all recognize that our most junior members can barely survive on pay in the first five years and therefore we are proposing building in 2% higher increases to lift their compensation rates.
  • We all recognize that Flight Attendants at the top of the pay scale have had to weather the bankruptcy cuts without even the minimal buffer of step pay raises and therefore we are proposing to build in new longevity steps to 20 years.

For those Members with less than 20 years seniority it is important to read a step up each year in the pay charts for your true pay rate.  For example, if a Member is currently in the fifth year pay scale, she or he should view the 6th year pay rate for 2011.

Many Flight Attendants have been at the top of the pay scale for over 10 years. The longevity increases recognize our continued service and provide Flight Attendants who have been at the top of the pay scale an immediate return for their sacrifices above the flat percentage increases.  The longevity increases also help to ensure substantial pay increases for all Flight Attendants, those who fly international or domestic, as we move to a single pay scale.

Background

  • Highest international rate in effect prior to cuts $48.87 as of April 1, 2002
  • Highest international book rate prior to cuts $49.85 as of March 1, 2004
  • Highest AFA proposal rate: $64.88 for a difference of 50.38%

  • Highest domestic $45.02 prior to cuts as of April 1, 2002
  • Highest domestic book rate prior to cuts $45.92 as of March 1, 2004
  • Highest AFA proposal rate: $64.88 for a difference of 63.21%

  • Wage Rate Cuts were 9% in first round cuts and 9.5% in the second round of cuts
  • Since 2007 we have had two 2% wage rate increases and one 3% wage rate increase.

Single Pay Scale Percentage Increase with Longevity Steps to 20 Years from Current Domestic Hourly Wage

Yrs Current Domestic 2010 16.00% Raise + Single Scale Total % Increase 2011 7.00% Raise + Single Scale Total % Increase 2012 7.00% Raise + Single Scale Total % Increase 2013
7.00% Raise + Single Scale
Total % Increase
1 $18.46 $22.04 19.39% $23.58 27.75% $25.23 36.69% $27.00 46.26%
2 $19.51 $23.27 19.27% $24.90 27.62% $26.64 36.55% $28.51 46.11%
3 $20.75 $24.72 19.13% $26.45 27.47% $28.30 36.39% $30.28 45.94%
4 $21.34 $25.39 18.99% $27.17 27.32% $29.07 36.23% $31.11 45.77%
5 $24.20 $28.70 18.59% $30.71 26.89% $32.86 35.77% $35.16 45.28%
Yrs Current Domestic 2010 16.00% Raise + Single Scale Total % Increase 2011 5.00% Raise + Single Scale Total % Increase 2012 5.00% Raise + Single Scale Total % Increase 2013
5.00% Raise + Single Scale
Total % Increase
6 $31.82 $41.09 29.12% $43.14 35.58% $45.30 42.36% $47.56 49.48%
7 $33.54 $43.05 28.35% $45.20 34.76% $47.46 41.50% $49.83 48.58%
8 $34.37 $43.92 27.78% $46.11 34.17% $48.42 40.88% $50.84 47.92%
9 $35.49 $45.37 27.83% $47.64 34.22% $50.02 40.93% $52.52 47.98%
10 $36.63 $46.26 26.29% $48.57 32.61% $51.00 39.24% $53.55 46.20%
11 $37.42 $47.29 26.38% $49.66 32.70% $52.14 39.34% $54.75 46.31%
12 $38.31 $48.46 26.51% $50.89 32.83% $53.43 39.47% $56.10 46.45%
13 $39.14 $49.38 26.17% $51.85 32.47% $54.44 39.10% $57.16 46.05%
14 $39.75 $50.04 25.89% $52.54 32.19% $55.17 38.80% $57.93 45.74%

New Longevity Steps

Yrs Current Highest Rate 2010
Single Scale w/ $1 Extra Per Year
Total % Increase 2011 5.00% Raise + Single Scale Total % Increase 2012 5.00% Raise+ Single Scale Total % Increase 2013
5.00% Raise + Single Scale
Total % Increase
15 $39.75 $51.04 28.41% $53.59 34.83% $56.27 41.57% $59.09 48.65%
16 $39.75 $52.04 30.92% $54.64 37.47% $57.38 44.34% $60.25 51.56%
17 $39.75 $53.04 33.44% $55.69 40.11% $58.48 47.12% $61.40 54.47%
18 $39.75 $54.04 35.96% $56.74 42.75% $59.58 49.89% $62.56 57.39%
19 $39.75 $55.04 38.47% $57.79 45.40% $60.68 52.66% $63.72 60.30%
20 $39.75 $56.04 40.99% $58.84 48.04% $61.79 55.44% $64.88 63.21%

NOTES:

  • Highest Domestic Wage Rate in 2002, before bankruptcy forced cuts, was $45.02.
  • AFA has already put management on notice that we expect retroactive pay to the amendable date of the Contract, January 7, 2010.
  • Pay Rate increases take effect each year on January 7.

Single Pay Scale Percentage Increase with Longevity Steps to 20 Years from Current International Hourly Wage

Yrs Current Intl 2010 16.00% Raise Total % Increase 2011 7.00% Raise Total % Increase 2012 7.00% Raise Total % Increase 2013
7.00% Raise
Total % Increase
1 $19.00 $22.04 16.00% $23.58 24.12% $25.23 32.81% $27.00 42.10%
2 $20.06 $23.27 16.00% $24.90 24.12% $26.64 32.81% $28.51 42.10%
3 $21.31 $24.72 16.00% $26.45 24.12% $28.30 32.81% $30.28 42.10%
4 $21.89 $25.39 16.00% $27.17 24.12% $29.07 32.81% $31.11 42.10%
5 $24.74 $28.70 16.00% $30.71 24.12% $32.86 32.81% $35.16 42.10%
Yrs Current Intl 2010 16.00% Raise Total % Increase 2011 5.00% Raise Total % Increase 2012 5.00% Raise Total % Increase 2013
5.00% Raise
Total % Increase
6 $35.42 $41.09 16.00% $43.14 21.80% $45.30 27.89% $47.56 34.28%
7 $37.11 $43.05 16.00% $45.20 21.80% $47.46 27.89% $49.83 34.28%
8 $37.86 $43.92 16.00% $46.11 21.80% $48.42 27.89% $50.84 34.28%
9 $39.11 $45.37 16.00% $47.64 21.80% $50.02 27.89% $52.52 34.28%
10 $39.88 $46.26 16.00% $48.57 21.80% $51.00 27.89% $53.55 34.28%
11 $40.77 $47.29 16.00% $49.66 21.80% $52.14 27.89% $54.75 34.28%
12 $41.78 $48.46 16.00% $50.89 21.80% $53.43 27.89% $56.10 34.28%
13 $42.57 $49.38 16.00% $51.85 21.80% $54.44 27.89% $57.16 34.28%
14 $43.14 $50.04 16.00% $52.54 21.80% $55.17 27.89% $57.93 34.28%

New Longevity Steps

Yrs Current Highest Rate 2010
Single Scale w/ $1 Extra Per Year
Total % Increase 2011 5.00% Raise Total % Increase 2012 5.00% Raise Total % Increase 2013
5.00% Raise
Total % Increase
15 $43.14 $51.04 18.32% $53.59 24.23% $56.27 30.45% $59.09 36.97%
16 $43.14 $52.04 20.64% $54.64 26.67% $57.38 33.00% $60.25 39.65%
17 $43.14 $53.04 22.95% $55.69 29.10% $58.48 35.56% $61.40 42.33%
18 $43.14 $54.04 25.27% $56.74 31.54% $59.58 38.11% $62.56 45.02%
19 $43.14 $55.04 27.59% $57.79 33.97% $60.68 40.67% $63.72 47.70%
20 $43.14 $56.04 29.91% $58.84 36.40% $61.79 43.22% $64.88 50.38%

NOTES:

  • Highest International Wage Rate in 2002, before bankruptcy forced cuts, was $48.87.
  • AFA has already put management on notice that we expect retroactive pay to the amendable date of the Contract, January 7, 2010.
  • Pay Rate increases take effect each year on January 7.

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Compensation Comparison Chart

This chart does not include other pay factors in the AFA United Flight Attendant Contract that affect total compensation including Flight Attendant cost of benefits, lineholder minimum guarantees, profit sharing, pass travel, transportation (taxi) reimbursements, errors in pay, deadhead, MAC/CRAF, publicity, drug and alcohol testing.

  United Proposal Continental
(CAL)
American
(AA)
Southwest
(SWA)
AFA Proposal AFA % Higher/Lower - or Contract w/ Highest Pay
Highest Base Hourly Rate No Proposal $51 $49.14 $64.70 $64.88 0.30%
International Per Diem No Proposal $2.50 $1.75 none $3.50 40%
Domestic Per Diem No Proposal $1.85 $1.50 $2.15 $3.00 39.50%
Reserve Override No Proposal None None None $5.00 AFA
Reserve Minimum Guarantee No proposal 83 hours 75 hours 89 hours 90 hours 1.10%
Call Out Pay No Proposal Two (2) hours Three (3) hours Two hours thirty six minutes (2:36) Minimum credit of five (5) hours 92%
  United Proposal Continental
(CAL)
American
(AA)
Southwest
(SWA)
AFA Proposal AFA % Higher/Lower - or Contract w/ Highest Pay
Minimum Duty RIG Eliminate None One (1) hr's flight time pay and credit for each two (2) hrs (1 for 2), with a minimum of five (5) hrs flight time pay and credit for each duty period One (1) hr's flight time pay and credit for each one hr and forty minutes (1 for 1.6), with a minimum of three and one half (3.5) hrs flight time pay and credit for each duty period One (1) hr's flight time pay and credit for each one and two tenths (1.2) hrs of duty time prorated (1 for 1:12), with a minimum of five (5) hrs flight time pay and credit for each duty period AFA
Minimum Trip RIG-Time Away From Home One (1) hour’s pay for each four (4) hours elapsed time (1 for 4) only when ID has pre-scheduled layover of 29 hours One (1) hour’s pay for each four (4) hours elapsed time (1 for 4) only when ID has pre-scheduled layover of 29 hours One (1) hour’s pay and credit for each three and one-half (3 1/2) hours elapsed time (1 for 3.5) One (1) hr’s pay and credit for each three and one-half (3 1/2) hrs elapsed time (1 for 3.5) if unscheduled overnight. One (1) hr’s pay and credit for each four and six tenths (4:36) hrs elapsed time (1 for 4.6) One (1) hour’s pay and credit for each three and one-half (3 1/2) hours elapsed time (1 for 3.5) AFA & AA
  United Proposal Continental
(CAL)
American
(AA)
Southwest
(SWA)
AFA Proposal AFA % Higher/Lower - or Contract w/ Highest Pay
Penalty Pay No Proposal None None None Five (5) hours AFA
Vacation Pay Three hours, fifteen minutes (3:15) per day Three hours, fifteen minutes (3:15) per day Four hours, ten minutes            (4:10) per day Three hours, fifteen minutes (3:15) per day Five (5) hours per day 53.90%
Sick Leave Pay Sick leave and occupational pay capped at 83 hours Sick leave and occupational pay capped at 83 hours Sick leave and occupational pay capped at 85 hours Sick leave and occupational pay capped at 103 hours Full pay AFA
Holding Pay No Proposal $15.00 per hour paid after 30 minutes $15.00 per hour paid after 30 minutes None Full pay including premium and language AFA
Ground Pay No Proposal None None None One half (1/2) hourly rate of pay including premium and language AFA
Incentive pay None $5 between 75 and 110 hours $7.37 over 70 hours $5.75 over 89 hours No Proposal AA
Galley Pay No Proposal $1.00 $0.88 None $0.97 CAL
Language pay No Proposal $2.50 for hours flown $1.25 None $2.50 incl sick leave and vacation AFA
Language Incentive Pay No Proposal None None None $1.50 including sick leave and vacation AFA
  United Proposal Continental
(CAL)
American
(AA)
Southwest
(SWA)
AFA Proposal AFA % Higher/Lower - or Contract w/ Highest Pay
Purser Pay No Proposal $2.00 Narrow Body $2.00
Wide Body $2.08
$2.30 Narrow Body $3.00
Wide Body $4.50
Aft Purser $4.50
95.60%
Qualified Purser Pay No Proposal Up to $5.50 + $2.00 override for hours flown $3.00 None Narrow Body $5.00
Wide Body $7.00
Aft Purser $7.00
CAL
Contractual Holidays & Pay No Proposal None None 3 Contract Holidays at two (2) times rate of pay 10 Contract Holidays for hourly rate of pay times the credited flight time for the ID, divided by the number of hrs away from home, times the number of hrs away from home falling within the holiday AFA
  United Proposal Continental
(CAL)
American
(AA)
Southwest
(SWA)
AFA Proposal AFA % Higher/Lower - or Contract w/ Highest Pay
Understaffing Pay No Proposal $50 X flight hours X # of missing crew divided equally among crew (160+seats only) $5.00 $5.75 $10.00 42.50%
Reassignment Pay $15.00/hr prorated beyond original trip or four (4) hr pay credit during severe weather $15.00 per hour prorated beyond original trip or four (4) hour pay credit during severe weather None None Twice rate of pay including premium and language AFA
Parking No Proposal Out-of-Base Parking $30 None None $100.00 233.33%
Drafting Pay Three (3) hour pay credit Three (3) hour pay credit None None Twice rate of pay including premium and language AFA
  United Proposal Continental
(CAL)
American
(AA)
Southwest
(SWA)
AFA Proposal AFA % Higher/Lower - or Contract w/ Highest Pay
Night Pay No Proposal $0.50 None $1.15 $0.50 SWA
Critical Coverage Pay 1.5 x hourly rate of pay None None None 1.5 x hourly rate of pay AFA
Extended Duty Time Pay Minimum one (1) hrs pay at five (5) times hourly rate One for one maximum 5 hours None None Minimum one (1) hrs pay at five (5) times hourly rate AFA
Training Pay Eliminate 3-hour min pay guarantee

Paid at 2:30 hours per day
 
1-hour pay for home study regardless of length
Paid at 2:30 hours per day 

1-hour pay for home study regardless of length
$9.50/hr
3 hr. min
4:45hrs/day Greater of one (1) hr’s pay and credit for each three and one-half (31/2) hrs elapsed time (1 for 3.5) or one (1) hr's flight time pay and credit for each one and two tenths (1.2) hrs of duty time prorated (1 for 1:12), with a minimum of five (5) hrs flight time pay and credit for each duty period. 5.30%
  • Pay and some scheduling work rules in the Southwest Airlines Contract are based on a Trip-for-Pay (TFP) basis rather than an hourly basis. Flight Attendants are credited with one (1) TFP for each leg of 243 miles or less.  For each forty mile increment over 243 miles an additional one-tenth (0.1) TFP is credited.  The industry standard conversion of 1.15 hours per TFP was used to represent their compensation on an hourly basis where appropriate, including rates of pay.
  • This comparison does not include all carriers or all Sections of our Contract.  It is intended to be an overview.

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Examples of Monthly Wages

Other than Reserve Override these examples do not include expenses or premium and other pay factors.  The examples are simply calculated based on hourly pay rates for a 5, 10, 15 and 20 year Flight Attendant.

5 Year Lineholder
  Pay Rate 65 Hours 85 Hours 100 Hours
DOM Current $24.20 $1,573.00 $2,057.00 $2,420.00
INTL Current $24.74 $1,608.10 $2,102.90 $2,474.00
2010 $28.70 $1,865.50 $2,439.50 $2,870.00
2011 $30.71 $1,996.15 $2,610.35 $3,071.00
2012 $32.86 $2,135.90 $2,793.10 $3,286.00
2013 $35.16 $2,285.40 $2,988.60 $3,516.00
5 Year Reserve
  Pay Rate 75 Hours 90 Hours 100 Hours
DOM Current* $26.13 $1,959.75 $2,351.70 $2,613.00
INTL Current* $26.67 $2,000.25 $2,400.30 $2,667.00
2010** $33.70 $2,527.50 $3,033.00 $3,370.00
2011** $35.71 $2,678.25 $3,213.90 $3,571.00
2012** $37.86 $2,839.50 $3,407.40 $3,786.00
2013** $40.16 $3,012.00 $3,614.40 $4,016.00
*  Current Reserve Pay Rate includes $1.93 Reserve Override
** Future Reserve Pay Rate includes $5.00 Reserve Override
10 Year Lineholder
  Pay Rate 65 Hours 85 Hours 100 Hours
DOM Current $36.63 $2,380.95 $3,113.55 $3,663.00
INTL Current $39.88 $2,592.20 $3,389.80 $3,988.00
2010 $46.26 $3,006.90 $3,932.10 $4,626.00
2011 $48.57 $3,157.05 $4,128.45 $4,857.00
2012 $51.00 $3,315.00 $4,335.00 $5,100.00
2013 $53.55 $3,480.75 $4,551.75 $5,355.00
10 Year Reserve
  Pay Rate 75 Hours 90 Hours 100 Hours
DOM Current* $38.56 $2,892.00 $3,470.40 $3,856.00
INTL Current* $41.81 $3,135.75 $3,762.90 $4,181.00
2010** $51.26 $3,844.50 $4,613.40 $5,126.00
2011** $53.57 $4,017.75 $4,821.30 $5,357.00
2012** $56.00 $4,200.00 $5,040.00 $5,600.00
2013** $58.55 $4,391.25 $5,269.50 $5,855.00
*  Current Reserve Pay Rate includes $1.93 Reserve Override
** Future Reserve Pay Rate includes $5.00 Reserve Override
15 Year Lineholder
  Pay Rate 65 Hours 85 Hours 100 Hours
DOM current $39.75 $2,583.75 $3,378.75 $3,975.00
INTL Current $43.14 $2,804.10 $3,666.90 $4,314.00
2010 $51.04 $3,317.60 $4,338.40 $5,104.00
2011 $53.59 $3,483.35 $4,555.15 $5,359.00
2012 $56.27 $3,657.55 $4,782.95 $5,627.00
2013 $59.09 $3,840.85 $5,022.65 $5,909.00
15 Year Reserve
  Pay Rate 75 Hours 90 Hours 100 Hours
DOM Current* $41.68 $3,126.00 $3,751.20 $4,168.00
INTL Current* $45.07 $3,380.25 $4,056.30 $4,507.00
2010** $56.04 $4,203.00 $5,043.60 $5,604.00
2011** $58.59 $4,394.25 $5,273.10 $5,859.00
2012** $61.27 $4,595.25 $5,514.30 $6,127.00
2013** $64.09 $4,806.75 $5,768.10 $6,409.00
*  Current Reserve Pay Rate includes $1.93 Reserve Override
** Future Reserve Pay Rate includes $5.00 Reserve Override
20 Year Lineholder
  Pay Rate 65 Hours 85 Hours 100 Hours
DOM current $39.75 $2,583.75 $3,378.75 $3,975.00
INTL Current $43.14 $2,804.10 $3,666.90 $4,314.00
2010 $56.04 $3,642.60 $4,763.40 $5,604.00
2011 $58.84 $3,824.60 $5,001.40 $5,884.00
2012 $61.79 $4,016.35 $5,252.15 $6,179.00
2013 $64.88 $4,217.20 $5,514.80 $6,488.00
20 Year Reserve
  Pay Rate 75 Hours 90 Hours 100 Hours
DOM Current* $41.68 $3,126.00 $3,751.20 $4,168.00
INTL Current* $45.07 $3,380.25 $4,056.30 $4,507.00
2010** $61.04 $4,578.00 $5,493.60 $6,104.00
2011** $63.84 $4,788.00 $5,745.60 $6,384.00
2012** $66.79 $5,009.25 $6,011.10 $6,679.00
2013** $69.88 $5,241.00 $6,289.20 $6,988.00
*  Current Reserve Pay Rate includes $1.93 Reserve Override
** Future Reserve Pay Rate includes $5.00 Reserve Override

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Questions and Answers

Are these compensation proposals for both United and Continental Flight Attendants?
The merger provides another means for Contract improvements and we will coordinate with our pre-merger Continental Flight Attendants to achieve the best of both Contracts – or better - in single Contract negotiations at the appropriate time.  When that time comes we will conduct surveys and provide the various ways we collect feedback from all Flight Attendants to determine our collective priorities.  We are not yet at that point.  These Railway Labor Act Section 6 negotiations remain focused on the priorities set by 15,000 United Flight Attendants.

What about retroactive pay since the amendable date was over 300 days ago?
We have already put management on notice that we expect retroactive pay to be negotiated to the amendable date of the Contract, January 7, 2010.

What were the percentage wage cuts during bankruptcy?
Wage rate cuts were 9% in the first round cuts and 9.5% in the second round of cuts.  Since 2007 we have had two 2% wage rate increases and one 3% wage rate increase.

How does the wage rate proposal compare with our wages before bankruptcy?

  • Highest international rate in effect prior to cuts $48.87 as of April 1, 2002
  • Highest international book rate prior to cuts $49.85 as of March 1, 2004
  • Highest AFA proposal rate: $64.88 for a difference of 50.38%
  • Highest domestic $45.02 prior to cuts as of April 1, 2002
  • Highest domestic book rate prior to cuts $45.92 as of March 1, 2004
  • Highest AFA proposal rate: $64.88 for a difference of 63.21%

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