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SOUTHWEST AIRLINES AGENTS REACH TENTATIVE AGREEMENT

IN UNION NEGOTIAIONS.

     Southwest Airlines agents have reached a tentative agreement with management for a new union contract.  Some of the hightlights in their TA (tentative agreement) are as follows:

1. Substantial wage increases retroactive to November 1, 2008.

          Current maximum pay is 24.00 per hour in Res and 24.35 at airports.

2. Improved 401(k) match

          8.3% retroactive to January 1, 1, 2009

          9.3% as of January 1, 2011

3. Double time for mandatory overtime

4. Second day off mandatory overtime paid at double time and one-half

5. New technology language for current and future work protection

6. Improved retiree insurance language

7. Voluntary bid release

8. Dues check off bi-monthly

9. 4 year duration to be amendable October 31, 2012

     According to a story in the Associated Press by David Koenig, the company will also be offering early out incentives that include cash severance that will average $30,000.00 to $50,000.  Southwest also offered company-paid medical and dental coverage for six months, and travel benefits including lifetime free flights for some workers who wouldn't ordinarily have qualified yet for such perks. 

     Southwest is offering these incentives until June 19.  Company executives have said they don't have a goal for how many jobs they'd like to eliminate with the buyouts.  Of course, layoffs haven't been ruled out if air traffic and revenues continue to decline.  The tentative agreement will soon go to a vote of the membership.

 Continental Airlines to cut 18.5% of Reservations Agents

     Continental Airlines announced this week that they will be laying off 18.5% of their reservations agents due to an increase in Web usage for booking flights and a decline in travel.  Continental announced a cut of 500 reservations jobs based in the United States. The layoffs will not affected an additional 500 reservations agents based in 8 different International offices.  Their TPA office will lose 100 jobs immediately along with 270 from their HOU office and another 80 from their SLC office.

     After the layoffs they will close their Tampa reservations office in July that will affect another 580 reservations agents.  Agents with enough seniority will be allowed t transfer to other offices or work from home.  Continental Airlines Agents "work from home" program, like American's, pays less per hour however benefits for both office and work from home employees at Continental share the same benefits.  American Airlines agents work from home employees are paid much less and have far fewer benefits than the agents working in an office.

     Although Continental Airlines employees are also currently non-union, their benefits for work from home are far superior to American's.  Click on the following links to read more:  

Continental Airlines to cut 270 Houston call center jobs

by Christine Hall/Houston Business Journal

Continental Airlines closing Tampa reservations center, affecting nearly 700 workers

by Jeff Harrington and Justin George/St. Petersburg Times

 

     Although a union contract cannot stop office closures, they can and do have protections for employees who's jobs are being affected by technology, outsourced, or moved to "at home" locations.  Such protections apply to Southwest Airlines and US Airways employees to name a couple.  Although Continental agents are currently non-union, their "home based" workers earn more and have better benefits than American for the time being.

U.S. airlines running a little low on cash: experts

by Kyle Peterson, Reuters

 

 

CHICAGO (Reuters) - U.S. airlines, struggling to spur demand amid economic recession, face a potential liquidity crisis if revenues keep falling while credit markets remain tight.

Despite their best efforts, several of the top U.S. airlines currently have less cash on hand than some experts think is comfortable.

If revenue does not increase this year, carriers may breach the minimum liquidity covenants enforced by their creditors, who then may accelerate the loan and force a default.

"If revenue doesn't stabilize and capital markets remain constrained, then I think it's certainly possible that we'll see increased risk of a covenant breach for a couple of carriers moving into 2010," said Fitch Ratings analyst Bill Warlick.

The airlines that face the greatest risk of covenant breach are US Airways Group (LCC.N), American Airlines parent AMR Corp (AMR.N) and United Airlines parent UAL Corp (UAUA.O), he said.

"This scenario would likely unfold only if revenue trends continue to worsen through the summer with no evidence of a U.S. macro recovery appearing by late in the year," Warlick said.

(Click on story title above to read entire story.)

  This story below,written by Christopher Elliott-travel columnist at MSNBC, has been a complaint of agents across the country at American Airlines.  Part-time shifts, which make up over 60% of airports, are being cut even more.  Agents are working so short staffed at airports that some passengers are unable to check-in on time even when showing up almost 2 hours before flight time.  This story shows one more example where an agent could be conceived as "RUDE" in a bad letter and have the letter put on file and the agent warned that more letters could lead to Steps up to and including termination.   

But Seguchi, who was visiting a friend in Orlando, couldn’t have anticipated the long check-in lines at the airport. “There were only a few ticket agents at the counter, so the line went on forever,” says Fran Mingle, Seguchi’s friend.  “She waited and waited. After getting concerned about missing her flight because of the inordinate delay, she asked if she could be accommodated next but the American Airline's personnel told her ‘no’.”

Seguchi missed her flight and was asked to pay an extra $2,600 for a ticket the next day. American had thrown the book in her face.

(Click on the story title above to read the entire story.) 

  Are we the higest paid in the industry?  

No, Southwest Airlines agents make more money.  We may have a higher hourly rate than most of the majors, but not necessarily when you look at the overall value of all benefits, including differentials, meidcal plans, and other items.  

 While comparing our hourly rate of pay to agents at other carriers we must remember that agents with contracts continure through their step progression increases that are negotiated.  This means that for those who are not at maximum pay they continue with regular raises until they reach maximum.  American Airlines agents tend to receive their biggest pay raise on their 11th anniversary when they max out.  In some cases we have seen agents receiving $5.00 to $7.00 an hour increases to reach max.   Agents at carriers with union contracts get larger raises than we do every year leading up to their max pay.  Therefore, even though these agents may be at a lower maximum pay rate, by the time they reach their maximum pay they have still made more than we have when comparing the time period leading up to max. 

     In addition we must look at things like more holidays, higher holiday pay, shift differentials, job differentials, and costs of other benefits at the carriers with union contracts.  For example; even though United agents make $0.14 less an hour at maximum pay, they receive 8 holidays a year at double time, they also receive beetween $0.48-$0.57 an hour in shift differential for any shift beginning from 1100am on.  Agents at Southwest receive $1.00 an hour for bilingual expertise in reservations.  They make $2.81 more an hour.  We received a small amount of stock a few years back and Southewst agents receive between 400-700 shares of stock every year during their last contract. 

     Having a union contract doesn't necessarily mean you'll have the highest hourly pay in the industry, it means that you as agents will have the right to negotiate what works best for you.  If you have the highest pay in the industry it doesn't mean a thing if you have the highest out of pocket benefit costs than any other carrier. 

SOUTHWEST AIRLINES

Max went from 14 years to 11 years in 2002 as follows:

        2002         2003         2004         2005         2006         2007

Res: 19.00        21.17        21.80        24.00        24.00        24.00

ATO: 20.28        21.50        22.14        24.35        24.35        24.35

Bilingual Res agents:        

 $1.00 differential more per hour.

CS’s:                   

Unlimited Shift Trades plus you can also give away up to 30 full shifts per quarter.

Day Off Training: 

Paid at time and one half.

Vacation:         

Up to 5 weeks of paid depending on seniority. In addition some vacation time can be broken up and used as DAT (day at a time time vacation.)

Holidays:         

Thanksgiving and Xmas paid at time and one half.  Every agent also receives on Free Day off with pay per month from Jan-Oct.  This equates to 10 more days off with pay in addition to regular vacation. 

Retirement:      

 No pension plan but agents do have a matching 401K plan that the company matches $1.00 per $1.00 up to 7.3%.  (American employees hired Jan 1, 2001 or later are not even eligible for pension plan.)

Stock Options: 

 Agents depending on seniority received 400-700 shares of stock each year since 2002 for a total of between 1525 and 3400 shares up to 11 years of seniority.  An additional 10 shares per year of service was given to agents with over 11 years.

Profit Sharing: 

Depending on profit margin 0-3% of salary.

UNITED AIRLINES

Hourly Pay:

                             Agents reach max pay in 10 years

                         2004         2005         2007         2008         2009                            

RES:                    20.71        19.57        19.86        20.16        20.66

ATO:                    21.45        20.27        20.57        20.88        21.40

Longevity pay:  

After reaching max pay you receive 1 cent per hour per year of seniority up to a max of 30 cents more per hour.  

(United negotiated their concessionary contract in 2005.  They took a pay cut in 2005, and negotiated pay-raises to begin again in 2007.  Their contract comes up for re-negotiation this year.)

Shift Differential:      

Shift differentials begin with shifts starting at 11:00am through 5:59am and range between $0.48 and $0.57 per hour depending on type of shift.

CS’s:                   

Agents can do unlimited shift swaps, and can completely CS off up to 30 shifts per quarter.

Day Off Training:            

Paid at time and one half.

Vacations:       

Agents earn between 1 week and 6 weeks of vacation depending on seniority.  In addition one of your vacations weeks may be used as DAT (Day at a time) vacation.  Up to one week of DAT vacation can be carried over to the following year if not used.

Holidays:           

3 Fixed days and 5 Floating days, including birthday, that are paid at double time.  Floating days can be chosen when you want them on a seniority basis.  This is a total of 8 days at double time of holiday pay.

Retirement:      

Receive 1.63% of final average earnings x number of years of participation in the plan.   A 401 K plan.  A new defined pension plan was negotiated after exiting bankruptcy.

Performance Incentive Program:           

Depending on performance goals met, between .5% and 2% of wages earned.  (Similar to AIP at American Airlines)

Profit Sharing:  Once profits goals are met, 10% of salary.

US AIRWAYS

Hourly Pay:

                             Agents reach max pay in 10 years

                        2005-07     2008     2009      2010     2011       2012

RES and ATO:   18.00        18.60     19.16    19.92    20.72      21.14    

Shift Differential:      

Shift differentials begin with shifts starting at 12:00noon through 4:59am and range between $0.51 and $0.58 per hour depending on type of shift.

CS’s:                   

Agents can do unlimited shift swaps, and can completely CS off up to 20 shifts per quarter. In addition CS’s that include up to 30 minutes of overlap time can be approved my management if operation permits.  

Day Off Training:            

Training outside of shift, requires a minimum amount be paid regardless of actual class time up to actual amount of class time if over the minimum.

Vacations:         

Agents earn between 1 week and 4 weeks of vacations depending on seniority.  In 2011 a 5^th week of vacation will be added.  Up to 2 weeks of vacation can be used as DAT

 (Day at a time).

Holidays:           

Agents choose between 2 holiday options.  5 paid holidays at double time, or straight time paid for holiday with 5 additional days off with pay.  Beginning 12/2001 5 more holidays will be added for a total of 10 holidays.

Retirement:      

Details can be found at www.cwa.net on retirement changes.  Changes made to pensions during bankruptcy to include matching 401K.

Performance Incentive Program:           

Between $50.00 and $100.00 monthly similar to American Airline’s AIP.

Profit Sharing:  Once profits goals are met, 10% to 15% of salary.

US AIRWAYS agents have a snap back date of Jan 1, 2012.  Whether or not a new contract is negotiated by that time, all benefits and pay will snap back to the old contract before this concessionary contract was negotiated.

NOTE:  The information contained above is not the entire contract.   Airline contracts provide for other protections such as follows:

Seniority protections in mergers or buyouts.

Part Time vs Full Time ratios.  (Example:  At NW part time jobs are limited to 25% of work force at hubs and 50% at smaller stations.)  American Airlines airports overall are now 35% Full Time and 65% Part Time.

Grievance Procedures for Disciplinary action including the use of Stewards who will assist you through investigations, and grievance procedures.  If you are issued a Step or terminated for reasons without cause, an outside arbitrator may be brought in to hear both sides and determine if the punishment was warranged.  Curently American Airlines agents appeal to other mangement members when filing a grievance.  

Insurance, outsourcing, new job training and protections for jobs taken over by new automation, are just a few other things that are negotiated in contracts.  Anything that pertains to pay, benefits, or working conditions are negotiable items.

Other Airline Contracts

     Carriers with union contracts for reservations and airport agents include NW, UA, AS, HA, WN, and BA to name a few.  The difference between the organized carriers and American Airlines is that members of the union negotiated their contracts as opposed to managment just deciding what to mandate to agents.  This included concessionary contracts after 9/11. 

     Although American Airlines formed FOCUS, AAB, and AEC groups, the final decision what to give the agents was left up to management.  Union covered employees got to negotiate with their management agreements that worked for the majority of their members and the company alike. 

     Unions cannot negotiate contracts that the company cannot afford therefore with union contracts companies provide finanicial information so that the parties can make informed decisions in negotiations.

     See links below if you wish to see entire contracts from other carriers:

Northwest Airlines:     http://www.iam143.org/PDF files/Northwest Airlines page/IAM_NWA_COFPS_CBA.pdf

Alaska Airlines:            http://www.iam143.org/PDF files/Alaska Airlines page/IAM_ASA_ COPS_2006-2010.pdf

United Airlines:             http://www.iam141.org/docs/contract05UApce.pdf

Soutwest Airlines:       http://iamdl142.org/Southwest/SWA_agreement.pdf