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Summary of Tentative Agreements
The following is a summary of the changes made to the current collective bargaining agreement (“Agreement”) by two tentative agreements reached between PSA and ALPA and one tentative agreement between US Airways Group (“Group”) and ALPA. This summary does not necessarily enumerate every change to the Agreement. Provisions of the Agreement that were not changed are not included, unless necessary to provide the context for a change. It is not intended to be, nor should it be construed as, a substitute for or interpretation of the actual contractual language.
1. Group Letter of Commitment of Large Regional Jets to PSA
• Group commits to placing no less than thirty 71-90 seat jet aircraft at PSA.
• Pilots on the PSA seniority list shall operate the aircraft.
• Commitment is in effect for the duration of the CBA.
• Commitment is binding on any successor (including Group/AMR merger).
• The dispute resolution process in PSA/ALPA contract is binding on Group.
• The Group Commitment Letter is contingent on pilot ratification of the Large Regional Jet Order Letter of Agreement (LOA #4) described below.
2. Enhanced Career Opportunities Letter of Agreement (LOA #3)
• This LOA modifies the “Career Opportunities Letter of Agreement” (LOA #1) in the current Agreement.
• Pilots hired by US Airways pursuant to LOA #3 will be placed on personal leave with PSA until they complete or fail training. If a pilot fails, he can return to his most recent position at PSA and retain his status, domicile, longevity and seniority. If a pilot is terminated after completing training, he does not retain any rights to return to PSA.
• If a pilot meets the eligibility requirements, he will be offered an interview (previously, the pilot would be “considered” for an interview).
• Interviews will be granted in seniority order.
• Previously, one requirement was that a pilot not be “the subject of active discipline.” This term was clarified to mean he is not currently suspended.
• Exempts newly upgraded PSA captains from the requirement that they be in their current position for 12 months.
• If a pilot is not offered a position, he will be given the reasons why an offer was not made.
• If a pilot interviewed but was not offered a position prior to the effective date of LOA #3, he will be granted two additional opportunities after the effective date.
• Job offers at US Airways will be made in seniority order.
• Commitment of job offers is the lesser of 25% of positions offered in a calendar year or four positions for each month US Airways hires pilots.
• Job offer commitment extends for the life of the Agreement (2023). Previously, the commitment was for 3 pilots hired per month in 2013, 2014, and 2015, then 2 positions in 2016 and 2017.
• PSA may delay a pilot’s start of training at US Airways for PSA staffing reasons, but US Airways must still comply with the job offer commitments by the end of each calendar year.
• If a pilot declines an offer, he will not be considered for a position again until he notifies PSA and US Airways that he wishes to be considered.
• The terms of LOA #3 are binding on a successor, including the merged US Airways and American.
• After the merger, the parties will meet to discuss increasing the minimum number of jobs offered to PSA pilots, taking into account the size of PSA’s pilot force relative to the other wholly owned carriers.
• No furlough. Pilots on the seniority list as of the date of ratification of LOA #3 will not be furloughed except in case of conditions beyond PSA’s and US Airways’ control.
• LOA #3 is contingent on the ratification of LOA #4.
• LOA #3 is effective January 1, 2014 and is in effect for the duration of the CBA.
• LOA #3 is null and void if no 71-90 seat aircraft are delivered by December 31, 2015 or if the merger of US Airways Group and AMR does not occur by December 31, 2015.
3. Large Regional Jet Order Letter of Agreement (LOA #4)
• Current pay rates (longevity and annual increases) in Section 3.A.1 of the Agreement remain the same through March 31, 2018.
• Pay rates are extended until March 31, 2023 with 1% yearly increases.
• All pilots will still receive pay rate increases caused by adjustments to the blended rate resulting from the addition of large jets to the fleet.
• All pilots will still receive pay rate increases of 0.03% for each large jet added to the fleet in excess of the current 49 aircraft (this calculation is done prior to calculating the blended pay rate).
• The following pay caps and pay freezes will apply to all pilots and will occur upon the delivery of the first 71-90 seat jet aircraft (anticipated to be July 2014):
o Captain longevity pay is capped at 12 years of service or the pilot’s actual years of service, whichever is greater.
o First Officer longevity pay is capped at 4 years of service or the pilot’s actual years of service, whichever is greater.
• Pilots who decline a job offer or fail training at US Airways and return to PSA will cease to receive longevity pay rate increases and April 1 annual increases at the time they decline the offer or fail training.
• Pilots who fail to fill out the required paperwork to apply for a position at US Airways prior to December 1, 2013 or within 10 months of their date of hire will be considered to have declined a job offer. Such pilots will cease to receive longevity pay rate increases and April 1 annual increases at the time their seniority would otherwise grant them an interview at Airways.
• Pilots who do not meet the eligibility requirements for a US Airways interview described in LOA #3 are not subject to the freezes to longevity and April 1 annual increases described in the two bullet points immediately above.
• Pilots who are not offered a job at US Airways after their first interview will continue to receive April 1 annual increases, but their longevity increases will be capped at the greater of their current longevity step or at 12 years (for Captains) and 4 years (for First Officers).
• Pilots who are not offered a position at US Airways after a Repeat Opportunity as described in LOA #3 following his second interview will cease to receive longevity pay rate increases and April 1 annual increases.
• Pilots at the top of the PSA pay rate scale (18 years and above) may decline a job offer at US Airways and continue to receive 1% annual increases on April 1.
• Longevity caps and freezes apply to pay rates only, not to other accruals based on longevity such as vacation, sick leave, retirement, etc.
• Current per diem ($1.65 per hour as of 4/1/2013; $1.70 as of 10/1/2014; $1.75 as of 4/1/2016 and $1.80 as of 10/1/2017) modified to eliminate the 10/1/2017 increase to $1.80.
• Current medical insurance premium cost sharing percentage of 27% for the life of the Agreement changed to 29% on 1/1/14; 31% on 1/1/15; 33% on 1/1/16; and 35% on 1/1/17.
• Duration of the Agreement extended from 5 to 10 years.
• LOA #4 is null and void if no 71-90 seat aircraft are delivered by December 31, 2015 or if the merger of US Airways Group and AMR does not occur by December 31, 2015.
Summary of Tentative Agreements
The following is a summary of the changes made to the current collective bargaining agreement (“Agreement”) by two tentative agreements reached between PSA and ALPA and one tentative agreement between US Airways Group (“Group”) and ALPA. This summary does not necessarily enumerate every change to the Agreement. Provisions of the Agreement that were not changed are not included, unless necessary to provide the context for a change. It is not intended to be, nor should it be construed as, a substitute for or interpretation of the actual contractual language.
1. Group Letter of Commitment of Large Regional Jets to PSA
• Group commits to placing no less than thirty 71-90 seat jet aircraft at PSA.
• Pilots on the PSA seniority list shall operate the aircraft.
• Commitment is in effect for the duration of the CBA.
• Commitment is binding on any successor (including Group/AMR merger).
• The dispute resolution process in PSA/ALPA contract is binding on Group.
• The Group Commitment Letter is contingent on pilot ratification of the Large Regional Jet Order Letter of Agreement (LOA #4) described below.
2. Enhanced Career Opportunities Letter of Agreement (LOA #3)
• This LOA modifies the “Career Opportunities Letter of Agreement” (LOA #1) in the current Agreement.
• Pilots hired by US Airways pursuant to LOA #3 will be placed on personal leave with PSA until they complete or fail training. If a pilot fails, he can return to his most recent position at PSA and retain his status, domicile, longevity and seniority. If a pilot is terminated after completing training, he does not retain any rights to return to PSA.
• If a pilot meets the eligibility requirements, he will be offered an interview (previously, the pilot would be “considered” for an interview).
• Interviews will be granted in seniority order.
• Previously, one requirement was that a pilot not be “the subject of active discipline.” This term was clarified to mean he is not currently suspended.
• Exempts newly upgraded PSA captains from the requirement that they be in their current position for 12 months.
• If a pilot is not offered a position, he will be given the reasons why an offer was not made.
• If a pilot interviewed but was not offered a position prior to the effective date of LOA #3, he will be granted two additional opportunities after the effective date.
• Job offers at US Airways will be made in seniority order.
• Commitment of job offers is the lesser of 25% of positions offered in a calendar year or four positions for each month US Airways hires pilots.
• Job offer commitment extends for the life of the Agreement (2023). Previously, the commitment was for 3 pilots hired per month in 2013, 2014, and 2015, then 2 positions in 2016 and 2017.
• PSA may delay a pilot’s start of training at US Airways for PSA staffing reasons, but US Airways must still comply with the job offer commitments by the end of each calendar year.
• If a pilot declines an offer, he will not be considered for a position again until he notifies PSA and US Airways that he wishes to be considered.
• The terms of LOA #3 are binding on a successor, including the merged US Airways and American.
• After the merger, the parties will meet to discuss increasing the minimum number of jobs offered to PSA pilots, taking into account the size of PSA’s pilot force relative to the other wholly owned carriers.
• No furlough. Pilots on the seniority list as of the date of ratification of LOA #3 will not be furloughed except in case of conditions beyond PSA’s and US Airways’ control.
• LOA #3 is contingent on the ratification of LOA #4.
• LOA #3 is effective January 1, 2014 and is in effect for the duration of the CBA.
• LOA #3 is null and void if no 71-90 seat aircraft are delivered by December 31, 2015 or if the merger of US Airways Group and AMR does not occur by December 31, 2015.
3. Large Regional Jet Order Letter of Agreement (LOA #4)
• Current pay rates (longevity and annual increases) in Section 3.A.1 of the Agreement remain the same through March 31, 2018.
• Pay rates are extended until March 31, 2023 with 1% yearly increases.
• All pilots will still receive pay rate increases caused by adjustments to the blended rate resulting from the addition of large jets to the fleet.
• All pilots will still receive pay rate increases of 0.03% for each large jet added to the fleet in excess of the current 49 aircraft (this calculation is done prior to calculating the blended pay rate).
• The following pay caps and pay freezes will apply to all pilots and will occur upon the delivery of the first 71-90 seat jet aircraft (anticipated to be July 2014):
o Captain longevity pay is capped at 12 years of service or the pilot’s actual years of service, whichever is greater.
o First Officer longevity pay is capped at 4 years of service or the pilot’s actual years of service, whichever is greater.
• Pilots who decline a job offer or fail training at US Airways and return to PSA will cease to receive longevity pay rate increases and April 1 annual increases at the time they decline the offer or fail training.
• Pilots who fail to fill out the required paperwork to apply for a position at US Airways prior to December 1, 2013 or within 10 months of their date of hire will be considered to have declined a job offer. Such pilots will cease to receive longevity pay rate increases and April 1 annual increases at the time their seniority would otherwise grant them an interview at Airways.
• Pilots who do not meet the eligibility requirements for a US Airways interview described in LOA #3 are not subject to the freezes to longevity and April 1 annual increases described in the two bullet points immediately above.
• Pilots who are not offered a job at US Airways after their first interview will continue to receive April 1 annual increases, but their longevity increases will be capped at the greater of their current longevity step or at 12 years (for Captains) and 4 years (for First Officers).
• Pilots who are not offered a position at US Airways after a Repeat Opportunity as described in LOA #3 following his second interview will cease to receive longevity pay rate increases and April 1 annual increases.
• Pilots at the top of the PSA pay rate scale (18 years and above) may decline a job offer at US Airways and continue to receive 1% annual increases on April 1.
• Longevity caps and freezes apply to pay rates only, not to other accruals based on longevity such as vacation, sick leave, retirement, etc.
• Current per diem ($1.65 per hour as of 4/1/2013; $1.70 as of 10/1/2014; $1.75 as of 4/1/2016 and $1.80 as of 10/1/2017) modified to eliminate the 10/1/2017 increase to $1.80.
• Current medical insurance premium cost sharing percentage of 27% for the life of the Agreement changed to 29% on 1/1/14; 31% on 1/1/15; 33% on 1/1/16; and 35% on 1/1/17.
• Duration of the Agreement extended from 5 to 10 years.
• LOA #4 is null and void if no 71-90 seat aircraft are delivered by December 31, 2015 or if the merger of US Airways Group and AMR does not occur by December 31, 2015.
