October 21, 2015

Participants for AMFA:
Michael Nelson – Region II Director
Matt Townsend – Airline Representative Local 11
Shane Flachman – Airline Representative Local 18
Mike Young – Airline Representative Local 32
Danny York – Facility Maintenance DAL
Lucas Middlebrook – Legal Counsel

Participants for Southwest Airlines:
Mike Ryan - VP, Labor Relations
Gerry Anderson - Sr Director, Labor Relations
Cindy Nagle – Sr Director, Labor Relations
Clint Auton - Director, Corporate Facilities
Tim Hooyman - Sr Manager, Corporate Facilities

The Negotiating Committee is providing this update to the AMFA membership at Southwest Airlines. This report is the only official authorized written source of negotiating communications by the Committee.

We met with the Company in Dallas, Texas on Tuesday, October 20, 2015, for a scheduled half-day session for Facilities Maintenance Technician (FMT) negotiation. We also had scheduled the morning on Wednesday, October 21, 2015, if more time was needed. We began the session by presenting a graph showing that based on Company’s Article 15: Wage Rates proposed rates, the FMT group would experience a 4.5% pay cut.

We then presented our Article 14:Wage Rules-Shift Premiums-Longevity proposal in which we detailed our longevity proposal of $.25 an hour for years 10 through 15 for a maximum of $1.25 per hour based on the amount of years in category. We also tried to work with the Company to address their concerns of hiring a Technician with an advanced skill-set by offering them the option of paying a one-time hiring bonus.

We then presented our Article 15: Wage Rates proposal. Due to the wide variances in pay within the FMT group, we had to stretch our initial proposal out to ten (10) steps. When moving to our scale concept, a Technician would be placed in the step that equals their years in the classification with a top out at step ten (10) in the final year of the agreement at $38.19 per hour. We also proposed a $1.75 per hour premium for each Electrical and HVAC certifications. The final area we presented was Article 29: Duration of Agreement, which we proposed a five (5) year agreement.

The Company said they would need time to analyze our proposal and we agreed to meet again on December 3, 2015. If you have any questions, please call your Local representative or Region I or II Directors.

Sincerely,
Your Negotiating Committee