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American Eagle Pilots Approve Tentative Agreement by Large Margin
Posted On: Oct 08, 2012

By Terry Maxon--

Confirmed, 75 percent of American Eagle pilots voted to approve a tentative agreement between the airline and the Air Line Pilots Association.

“We are pleased with our pilots’ ratification of the tentative agreement reached with ALPA, marking another important step forward in our restructuring,” American Eagle spokeswoman Andrea Huguely said. “The ratified agreement will help us reach our targeted cost savings and set the stage for a strong, successful American Eagle.”

Here’s a letter to American Eagle pilots from Tony Gutierrez, chairman of the Master Executive Council of the Air Line Pilots Association at American Eagle:

Fellow American Eagle pilots,

Today, we received the vote results on the EGL-ALPA restructuring agreement.

The agreement was ratified with 75% of the votes cast in favor of the agreement.  In addition, 85.38% of all eligible voters participated.

Although none of us wanted to navigate the bankruptcy process during our career, we are pleased that this difficult chapter is now behind us and we can focus on moving forward, exiting bankruptcy, re-fleeting, and pursuing paths to grow our company and ensure that we sustain solid piloting jobs well into the future.

Your negotiating committee will now turn their attention to the implementation process and we will have much more for you on that shortly.  In addition, the MEC will be meeting mid-October to provide direction to the negotiating committee on AQP, as well as means by which we can assist our low-time first officers in obtaining the minimum requirements for their Airline Transport Licenses.

I want to close by thanking you for your support during this process and asking that you continue to be engaged with your union.  Together, we have navigated this process with professionalism and maturity and I am confident that we will continue to work together to solidify our careers and protect our livelihoods.

Fraternally,

Captain Tony Gutierrez

Information on the restructuringAMR.com website, which may or may not be correct, says the annual cost savings target was $43.1 million. The website gave these elements of the proposal:

  • No reduction in pay
  • Introduction of longevity-based pay for Captains, as opposed to equipment type
  • “Red Circle” longevity pay where a pilot at a higher equipment pay than his seniority can hold keeps his current pay, and it is frozen at that rate, until his seniority can hold that rate or higher
  • Introduction of Personal Time Off (PTO) banks, comprised of accrued vacation and regular sick
  • Pilots will maintain their current Vacation accrual in the PTO system, but any pilots with more than 5 years of Company Seniority will have a one-time 21 hour (one week) deduction from their PTO for the year 2013.
  • Pilots with more than 300 hours in their PTO bank will have any excess hours paid out at the end of the year
  • IAI adjustments will not be made for Captains or First Officers for 2013 or 2014
  • IAI calculation will be completed separately for Captains and First Officers, with no floor, ceiling or minimum
  • Per diem rates reduced by $0.15 and annual increase of $0.05 per year will be reinstated 1/1/2014
  • Deadhead pay reduced from 75% to 50% for years 1 through 4.  (Returns to 75% at DOS + 5years)
  • Reserve assignments assigned based upon a time-balancing system, respecting proffers when possible
  • Implementation of Home-based lines
  • Implementation of New York Co-Domicile
  • Introduction of a Preferential Bidding System (PBS) to improve scheduling flexibility
  • Limit voluntary training events for Captains to 30% of total Captain vacancies.
  • Eliminate 20% premium for vacation fly-back
  • Implementation of a Profit Sharing Plan
  • 8-Year Duration with one Amendment Round, plus job protections

     
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