| | | Inside this issue: | Joint Contract Education
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Understanding Incentive Pay
Incentive pay is a financial provision in our new Collective Bargaining Agreement (CBA). It is paid at $5 per qualifying hour and is found under Section 4.B.
| Flight Attendants will be paid incentive pay for all block hours flown in excess of two hundred hours (200:00) per calendar quarter, including vacation and deadhead, to a maximum of three hundred and thirty hours (330:00), except that no incentive pay will apply for block hours flown in excess of one hundred and ten (110:00) hours in a bid month. |
It can cause some confusion trying to figure out how it is calculated. Maximum incentive pay for a quarter, if you fly at least 110 hours per month, would be $650.
110 x 3 = 330 total quarterly hours
330 – 200 = 130 qualifying hours
130 x $5 = $650
Sick leave hours do not count toward incentive pay calculations. Whether a line holder or reserve, it is your actual hours flown (including DHD and vacation hours) that qualify. This will make it more difficult for those subject to A/B reserve to earn incentive pay, particularly if you are on reserve 2 of the 3 months in a quarter.
Let’s look at some examples to gain a clearer understanding of how incentive pay will be calculated.
| Example #1
Month 1 - 100 Hours
Month 2 - 70 Hours
Month 3 - 90 Hours
100 + 70 + 90 = 260 Total Quarterly Hours
260 - 200 = 60 Qualifying Hours
60 x $5 = $300 Incentive Pay for the Quarter
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Example #2
Month 1 - 110 Hours
Month 2 - 110 Hours
Month 3 - 90 Hours
110+110+90 = 310 Total Quarterly Hours
310 - 200 = 110 Qualifying Hours
110 x $5 = $550 Incentive Pay
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Example #3
Month 1 - 120 Hours
Month 2 - 130 Hours
Month 3 - 0 Hours
110 +110+ 0 = 220 Total Quarterly Hours
220 - 200 = 20 Qualifying Hours
20 x $5 = $100 Incentive Pay
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In example #3, although the quarterly total adds up to 250 hours, only a maximum of 110 per month qualify for incentive pay.
Incentive pay is a valuable new provision in our CBA, but keep in mind that at the top pay rate, simply picking up one extra west coast trip during the quarter would pay more than the maximum incentive pay.
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