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ATA - New Contract

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Well-known member
Nov 26, 2001
ATA - New Contract Press Release

Tuesday June 18, 2:06 pm Eastern Time
Press Release
ATA/ALPA Crewmembers and Management Reach Tentative Agreement on New Contract

WASHINGTON & INDIANAPOLIS--(BUSINESS WIRE)--June 18, 2002-- American Trans Air, Inc. (ATA) and the Air Line Pilots Association, International (ALPA) are pleased to announce that they have reached a tentative contract settlement covering the carrier's nearly 1,000 cockpit crewmembers. The agreement comes after more than 25 months of negotiations including mediated talks under the auspices of the National Mediation Board (NMB).

John Tague, ATA's president, and CEO said, "This agreement meets our company's need for competitive labor costs, while assuring our pilots equitable wages and benefits and rewarding their significant contribution to ATA's past accomplishments and future growth plans.

"ATA flight crews are to be commended for conducting themselves with the highest professional standard throughout the negotiating process. They always maintained their focus on putting safety and our customers first," he added.

Capt. Kevin Friel, chairman of the ATA unit of ALPA, noted the significance of the agreement, stating, "Our negotiating committee worked very hard to construct a contract that will recognize the professionalism and dedication of ATA cockpit crewmembers who have devoted their careers to making ATA the first-rate major airline it is today. Even during this difficult economic climate, ATA remains well-positioned for growth and profitability in the future, and we feel this tentative agreement ideally complements and supports that business plan." Capt. Friel added, "With this tentative agreement, we successfully achieved our goal of obtaining a contract that will bring our pilots up to par with our colleagues at other major carriers in the areas of compensation, retirement, insurance, and work rules."

ALPA's president, Capt. Duane Woerth, congratulated the ATA pilots and their management on reaching the agreement in an amicable manner under challenging circumstances.

The details of the agreement will be presented to the ATA cockpit crewmembers during a series of road shows that will be conducted at various bases over the next few weeks. ATA cockpit crewmembers will be given the opportunity to cast their votes on the agreement. An announcement on the vote is expected mid-July.

Now in its 29th year of operation, ATA is the nation's 10th largest carrier based on revenue passenger miles flown. ATA offers significant scheduled service from Chicago-Midway and Indianapolis to 40 business and vacation destinations. Stock of the company's parent company, ATA Holdings, Corp. (formerly Amtran, Inc.), is traded on the NASDAQ stock market under the symbol "AMTR." For more information about the company, visit the website at www.ata.com.

The Air Line Pilots Association, International, is the world's largest and oldest pilots union, representing 66,000 cockpit crewmembers at 43 airlines in the United States and Canada. Visit the ALPA Web site at www.alpa.org.
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We do not have any details as of yet. The union MEC is meeting tomorrow to vote on ratification for the membership. Then it will be sent out to the membership for vote.

Many of the TA'd sections were posted on our ALPA web site for us to read earlier and they are a huge step forward in improvements. To give you an idea...our Scheduling section went from 9 pages to over 60.

It took 2 long years to TA 2/3 of the contract on mostly small and administrative items. What is amazing is that the 4 biggest items...and most contentious...Compenstation, Retirement, Scope, and Retroactivity were settled in a 9 day marathon session this past week.
ATA guys...

Any further info on your contract? Can you post some 737 pay rates?? I think it would definitely help in comparing SWA's offer to us. Thanks in advance...
Lot's of new details.

The simple explanation is that it is a 4-year contract that is "end-loaded".

The first two years are less than we wanted but it is made up for in the last 2 years.

Starting Year 3 of the contract we are on par with AMR, CAL, etc.

We have a "B" fund in addition to the 401K. Contribution percentages are based on time in service.

Scheduling section got tightened up considerably.

Insurance....company now picks up long-term as well as short-term dissability. Also pays for 2 FAA Medicals per year.

Some of the stuff we thought would be negotiated away still remain:

-12 hour Reserve call-out for some lines.

-Company provided hotel room after 5 nights of sitting 2 Hour Reserve in-base (Great for commuters).

Taken as a whole it is a quantum leap from where we were. As a second contract and our first ALPA contract it is a big step forward...especially in the light of the current environment.

That's not to say there aren't some negatives that are associated with it that we expected. Full Retro is not part of the package. Just a Signing Bonus that equates to normal step increases for the last two years while we negotiated.

We have road shows scheduled for the coming weeks and I believe a vote will be taken by July 16th. or thereabouts.
If you're looking for some hard numbers, here goes. All are hourly rates for the 737-800, and the contract offers a 75 hour per month guarantee. Rates are Captain / First Officer.

eff. July 1, 2002 eff. July 1, 2005

2 years 116.28/58.14 154.60/77.30
5 years 120.41/78.26 160.09/104.06
12 years 134.80/86.03 187.24/114.39

Finally, if a new contract isn't agreed upon by July1, 2006, rates increase by 4 1/2 % on that date.
First year FO pay eff. July 1, 2002 would be 36.00 for all aircraft types. As in most airline contracts, new hires would get to starve for a year. Second year 737-800 pay eff. July 1, 2003 would be 63.40/hr.

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