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(CAL) Profit Sharing, Reserve Call Out, and Super Long Haul Agreement

Date: November 22, 2015

Dear Flight Attendants,

We promised to address our issues regarding profit sharing with the Company and we have. As you may recall, on September 8, 2015 the CAL MEC sent a letter to the Company addressing our profit sharing and other Section 6 issues (see attached letter). The Company responded to our letter by scheduling meetings to resolve our issues. The first meeting was attended by the MEC President and Vice-President along with our AFA Staff attorney. After that meeting, we decided that we should have a meeting involving all of our local leadership. The subsequent meeting was attended by the following MEC, LEC, and AFA officials who negotiated the associated provisions into a letter of agreement and voted unanimously in favor of it:

  • ?  Marcus Valentino – MEC President
  • ?  Sheryl Kee – MEC Vice-President
  • ?  Cari Kershaw – President Council 60
  • ?  Joey Guider – President Council 62
  • ?  Harold Howard Jr. – Vice-President Council 63
  • ?  Denny Wheeling – President Council 64
  • ?  Kathleen Domondon – CMI MEC President
  • ?  Scott Goodman – AFA Staff Attorney

We reached a deal in principle on Wednesday, October 14, 2015 and announced this deal to the membership, after informing the International office. We worked on the final language of the agreement and finished with the final approval of the language between the MEC and the Company on Sunday, October 18, 2015. After the language was approved, the document was immediately submitted to the International office according to their procedures and circulated for the requisite signatures. The final signature was obtained the evening of Wednesday, October 21, 2015 and we can now share with you the text of the agreement.

When we initially met with the Company regarding profit sharing on Monday, October 5, 2015, it quickly became clear that there was an opportunity to achieve a profit sharing agreement. In the subsequent meeting on October 14, 2015, the Company presented a desire to address a short list of mutual urgent issues. That discussion resulted in an opportunity to provide our reserves a much needed and requested improvement and to secure the opportunity to fly new routes – routes which we cannot fly today.

These new routes alone will provide hundreds of additional jobs, which also means additional hiring. We also considered the desires of the Union, Company, and the National Mediation Board to complete the Joint Collective Bargaining Agreement in the next few months, so the discussion was kept to a short list of items that would not impact either our right to Section 6 or the JCBA. The final result was we not only secured our share of the profits for two more years – we also secured the following:

  • A 3-hour minimum call out to check-in for our reserves in all bases.
  • ?Super long haul flying provisions (duty days scheduled at 18:00 hours and above), including 150% and 200% pay components for operational irregularities on those routes.
  • A minimum 24 hours free from duty for any reserve assigned to these new super long haul trips.

The healthcare settlement to be paid out for 2016 (paid in the 1st quarter) before the payment expires while keeping our Healthcare Letter of Agreement intact.

In total, we have secured tens of millions of dollars in cash for our Flight Attendants this year and next, both in our share of the record profits for 2016 and 2017, and a much needed improvement and protections for our reserves. This agreement is a win-win for both our Flight Attendants and the Company. This agreement was possible because of the unwavering core principles held by the CAL MEC – principles which are predicated on the concept of collaboration, mutual success, positive and constructive relationships, and doing the right things, for the right people, and for the right reasons. We now look forward to successfully negotiating a Joint Collective Agreement for all United Flight Attendants.

A copy of the agreement is attached to this memo as well as a Q and A – we greatly appreciate your patience.

In Unity,

Marcus N. Valentino
President, CAL AFA

Profit Sharing Letter of Agreement acrobat_small_transp
Letter from Marcus Valentino to Jeff Wall acrobat_small_transp

Questions & Answers

Q- Profit sharing is in our current contract and has expired, do we need another contract to get it?

A- No, our Profit Sharing language in Section 24.C provides for the opportunity for discussion to lead to an agreement going forward. “…unless expressly agreed otherwise by the Parties” Because our contract is amendable, as well as our Section 24.C language, provides the opportunity to come to an agreement on future profit sharing.

Q- Why didn’t United just “give” us Profit Sharing for 2015? 

A- Profit sharing is a contractual issue – United and the Continental AFA Master Executive Council (all Local Councils Represented) found an opportunity to resolve the issue of profit sharing and a few other urgent items.

Q- Did we agree to change our existing International duty day language in our contract? 

A- No, the existing language remains the same in full effect, the super long haul flying language is for flying we do not do today. It does not apply to any routes we currently fly.

Q- Is the additional pay for operational irregularities subject to reductions like our “overs”? 

A- No, the additional pay, above your hourly rate, is not subject to reduction and is paid based on actual flight time.

Q- Do reserves get additional rest automatically after a super long haul trip and is it with pay? 

A- Yes, reserves get a minimum 24 hour free from duty in their base upon the completion of a super long haul pairing.

Q- When does the three hour minimum call out become effective? 

A– It becomes effective Monday morning, October 26, 2015

Q- Does this agreement close our Section 6 under the Railway Labor Act? 

A- No. Our Section 6 notice remains effective and our contract remains amendable under the Railway Labor Act.

Q- Does this agreement alter the healthcare choices you have today or allow the Company to reduce or alter those healthcare choices and costs in the future? 

A- No, the insurance coverage you have today remains intact and the contractual provisions continue to mandate both the current offerings, copays, out of pocket costs, and the aggregate cost model limiting your premiums.

Q- Will we receive the $1000 settlement checks next year? 

A- Yes, each eligible Flight Attendant will receive the $1000 healthcare supplement payment for 2016 to be paid no later than March 30, 2016.

Q- Will we receive the $1000 healthcare supplement payment in 2017? 

A– We have every reason to believe that we will achieve a JCBA before then, which is a successor agreement to our current contract, therefore there should not be an issue. If we do not have a Joint Collective Bargaining Agreement by 2017, then no, we would not receive that payment in 2017. Our contract remains amendable and we would attempt to exercise our rights under those provisions if a JCBA is not achieved.

Q- Why was CMI in this meeting on October 14, 2015? 

A– CMI also required a profit sharing agreement and since they are part of the Continental family, it was only right to include them in our meeting and secure their profit sharing along with ours at the same time.

Q- Do these reserve, super long haul provisions, and healthcare settlements apply to CMI? 

A– No, these provisions only apply to CAL, CMI was not eligible for the healthcare supplemental dollars.

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