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Alaska Arbitration

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Alaska Airlines Receives Arbitrator's Decision
Saturday April 30, 10:08 pm ET


SEATTLE, April 30 /PRNewswire-FirstCall/ -- An arbitrator notified Alaska Airlines today of his decisions on the major terms of a new contract between the airline and its Air Line Pilots Association (ALPA) bargaining unit.
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The decisions of the arbitrator, Richard Kasher, cover all 1,465 pilots employed by Alaska Airlines. The new contract becomes effective May 1.

The existing contract between the airline and the union called for an arbitrator, mutually agreed upon, to resolve differences if the parties were unable to reach agreement. ALPA and Alaska Airlines began contract talks in October 2003. The arbitrator was called in to help craft a settlement when an agreement could not be reached by a December 15, 2004, deadline.

While wage provisions go into effect tomorrow, full implementation of all provisions is expected to occur over several weeks. The contract becomes amendable in two years.

The terms of the agreement, set by the arbitrator, were based on information presented by both the airline and ALPA. They include an approximate 26 percent reduction in pilot wages, various work rule changes resulting in productivity improvements and higher employee health care contributions. No changes were made to the pilots' pension or profit sharing plans.

"We are grateful to the arbitrator for helping us reach a resolution," said Dennis Hamel, Alaska's vice president of employee services. "This allows us to move forward with a competitive wage and benefit package for our pilots and helps us achieve a better cost alignment with other major carriers."

Alaska Airlines, the nation's ninth largest carrier, serves more than 50 cities in Alaska, the Lower 48, Canada and Mexico.
 
New pay rates based on 26% pay cut

YR........CA........FO
12......145.78...102.86
11......145.04...102.12
10......143.56...101.38
9........142.82....99.16
8........142.08....96.94
7........141.34....94.72
6........140.60....92.50
5........139.86....88.80
4........138.38....87.32
3........137.64....82.14
2........136.90....67.34
1........136.16....38.48
 
Last edited:
SirFlyALot said:
New pay rates based on 26% pay cut

YR........CA........FO
12......145.78...102.86
11......145.04...102.12
10......143.56...101.38
9........142.82....99.16
8........142.08....96.94
7........141.34....94.72
6........140.60....92.50
5........139.86....88.80
4........145.78....87.32
3........137.64....82.14
2........136.90....67.34
1........136.16....38.48

Well that SUCKS!
 
Sorry to hear that.

I guess it pays to be a great company.???
 
Wow, completely opposite from what I expected. I wonder what will happen in two years? When do negotiations start for the next contract? May 2?
 
Just from talking with friends, I expected more like a 15% pay cut and pilot concessions in pensions. I dunno. I'm an outsider looking in, though.
 
I wish you were right sirflyalot, but the way I am interpreting the cuts, 26% might be the average cut.
On average captains get about a 28% cut, and f/o' about a 32% cut.

Don't forget, we are #6!
 
Is Alaska doing that bad?And if you look at there current pay before tonight thats a big hit.Almost a 14,000 dollar difference between 1st year pay.
 
BAD news - sorry guys. When is this amenable? This could turn ugly in a few years ...
 
At this point I'm bothered by several things.

First, flightinfo.com doesn't let me swear. I need to swear right now.

Second, I'm bothered by the fact that because United management ran their company right into the ground several years ago, ran it right into bankruptcy in fact, I and the pilots of many other airlines have to take paycuts as a result. In my case a 34% paycut. My company isn't in bankruptcy court and in fact will make over $100 million dollars this year as a result of this travesty. If anyone is ever offered a great contract that has binding arbitration in it instead of the right to strike, the lesson is clear. This is what you could end up with. At least we are free of that now. We now have a 2 year deal that the company can easily turn into 5 or 6 under the provisions of the Railway Labor Act. However, the side letter that said we couldn't honor picket lines went away 6 minutes ago. Our rampers may strike next week. Whether we will honor that will be very interesting. This company is about to get the union they deserve.

Third, first year pay is now 35.16/ hour. I don't know why anyone would come to work at Alaska when you could go to work at FedEx or UPS. In fact, I'm thinking seriously about jumping ship right now.

Fourth, the company has said all along that they needed these paycuts to grow the airline. Somehow I don't expect that to happen. I fully expect them to go back on their word and waste the money they have taken from us by buying Alaska stock back to drive the price up and hence the bonuses of senior management, United style. Morale was obliterated today. The only good news is that the defined benefit plan (A plan) is untouched. I hope new-hires realize that a lot was sacrificed today for them. Management wanted a B scale in the form of a different retirement plan for new hires. That didn't happen. Every pilot with an Alaska ID on their chest in five years will be unified when it comes time to vote. That is what will carry us through.

Lastly, my hangover tomorrow is not going to be pretty, tell me where you're drinkin' ferlo and I'll cab it over. :p
 
I'm really sorry. The first thing I thought of when I saw the new payscale was, oh no, Aloha wages. It looks exactly like what those guys recently VOLUNTARILY accepted in bankruptcy. I never thought I'd see this happen to Alaska, a profitable carrier. Keep your chins up, something good has to come out of this somewhere. Hopefully it won't be soley for your management's pockets.
 

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