December 19, 2024
The AMFA-Spirit Negotiating Committee (the “Committee”) is providing this update to the Membership at Spirit Airlines (“Spirit”). This is the only officially authorized source of negotiating communications by the Committee.
We are aware that, given the Company’s bankruptcy filing and recent notice of station closures, there is considerable uncertainty and a significant level of dismay within our workgroup. Your AMFA Negotiating Committee wanted to share this update to provide you with additional information as well as context regarding Spirit’s recent actions.
Our last mediated bargaining session occurred from November 12-14 at the Company’s headquarters. Shortly after conclusion of Day 1 (November 12), your Negotiating Committee learned of the imminence of the Company’s bankruptcy filing by reading reports published by the Wall Street Journal. Unfortunately, we were not provided advance notice of this report on November 12, despite spending the entire day with the Company’s negotiating representatives. The next day, November 13, Company representatives advised AMFA it was likely there would be station closures but were unwilling, at that time, to divulge which stations may be subject to closure.
In response to learning from the Company of its intent to close several maintenance stations, AMFA drafted a term sheet proposal for a Letter of Agreement (LOA) that would have provided for an orderly station closure/furlough process. This was designed to allow our members to exercise their seniority throughout the system prior to being furloughed. Among other items, AMFA’s term sheet proposed industry standard accrual/retention of seniority while on furlough, the same time period to retain health benefits while on furlough as Spirit pilots, the same furlough pay provided to Spirit pilots, and a dispute resolution mechanism.
The Company responded to this term sheet proposal five days later. In AMFA’s opinion, Spirit’s responses to the proposed LOA made clear it did not intend, in the event of furloughs, to allow you to utilize seniority to move throughout the system by, if necessary, displacement of more junior employees. Instead, the Company appeared more interested in memorializing Section 8.1 of its Technical Operations Seniority, Scheduling and Layoff Policy (the “Policy”). In addition, the Company’s responses reduced (from AMFA’s proposal): the time by which you could retain and accrue seniority while on furlough; reduced the time you would retain health benefits on furlough; and reduced the amount of furlough pay proposed by AMFA. The Company’s responses to the proposed LOA term sheet made it apparent to AMFA that Spirit was not interested in a collaborative agreement related to the effects of its decision to close certain maintenance stations throughout the system.
Nevertheless, AMFA pressed the Company as to why it did not utilize Section 8.2 of its own Policy. Section 8.2 of that Policy would have provided AMFA members the ability to exercise their seniority to “bid an open position or bump the most junior Team Member … at another Spirit Technical Operations location.” The Company was cemented in its position that it would only utilize Section 8.1 of the Policy, which ignores the seniority many of you worked hard to accrue through years of dedicated service to Spirit.
Unilaterally ignoring your hard-earned seniority in this manner, during these difficult times, stands in stark contrast to the financial rewards provided to certain top executives on the eve of bankruptcy. According to public reports, prior to filing for bankruptcy, the Company provided $5.3 million in retention bonuses to top executives, including $3 million for CEO Ted Christie and $850,000 for COO John Bendoraitis. It is, to say the least, disappointing the Company provided millions in retention bonuses to executives, but now in the name of cost savings, will not allow you to exercise your hard-earned seniority in the face of furloughs.
AMFA Legal is actively involved in monitoring the Chapter 11 bankruptcy process, and, as you may have recently seen, we will provide relevant updates from those proceedings. In addition, the bankruptcy filing does not relieve Spirit of its obligation under the Railway Labor Act to continue bargaining in good faith toward a first CBA. On that issue, your Negotiating Committee had a virtual meeting on December 13 to hear from our newly assigned NMB Mediator, Michael Donatelli. The initial NMB Mediator, Jack Stephan, was assigned to a different matter. AMFA is currently engaged in mediation with Mediator Donatelli at Sun Country Airlines, and we look forward to his assistance at this table as well. The Parties are working with the new mediator to schedule future bargaining dates, but are tentatively scheduled to resume negotiations February 18-20 at a location to be determined.
We understand this is a very difficult time for everybody as we move into the Holidays and New Year. Please do not allow these difficult times to distract you from your important responsibilities as Aviation Maintenance Technicians. We will continue to maintain the highest aviation maintenance standards and do so with the professional attitude on which we pride ourselves.
If you have any questions, please do not hesitate to reach out to your ALR, Jason Salazar, who is in frequent communication with AMFA National, AMFA Legal and the Company. AMFA is here for the Members and the Members for one another.
Remember -stay engaged, remain informed and continue to support the Negotiating Committee as that support increases the ability to bargain a CBA your hard work deserves.
Fraternally,
AMFA-Spirit Negotiating Committee
