June 11, 2024
Participants for AMFA
Earl Clark – Region I Director
Will Abbott – Region II Director
Chuck Clum – Airline Representative
James Lambert – Negotiating Committee Member
Lucas Middlebrook – Legal Counsel
Peter Manikowski - Economist
Participants for Horizon Air
Cheri Ruger – MD, People & Labor Relations
Audrey Kahawai-Kekipi – Sr. Labor Relations BP
Baron Converse – MD, Maintenance Operations
Latrice Lee – Legal Counsel
Kyle Moline – Director, Financial Planning & Analysis
The AMFA-Horizon Negotiating Committee (the “Committee”) is providing this update to the Horizon Air membership. This is the only officially authorized source of negotiating communications by your Committee.
AMFA and Horizon met in Seattle on June 3-5, 2024, to continue bargaining toward a successor collective bargaining agreement (CBA). On Day 1, AMFA presented an economic “term sheet” covering open items in several articles: Article 7 – Overtime; Article 8 – Field Trips and Training; Article 13 – PTO; Article 14 – Extended Leave; Article 23 – Benefits; Article 25 – Wages, Premiums, Shift Differential; Article 26 – Duration; and several LOAs. The Company reviewed our proposals and asked questions, and then we met again on Day 2 to discuss more of the Company’s clarifying questions.
Specifically, in Article 7 – Overtime, we proposed double-time (2x) for certain situations when you work long days and on certain scheduled days off. We also proposed streamlining the language in the article to ensure the time and one-half rate would be paid in more situations. The Company stated on Day 2 that it was in initial alignment with our overtime concepts, and AMFA went back to draft a full Article 7 revision. In Article 8 – Field Trips and Training, we repeated and clarified our earlier proposal for double-time for all hours away on a Rescue/AOG and improved per diem to GSA M&IE rates. The Company rejected this proposal and countered with its last position on these items from the previous session.
On Articles 13 and 14 – PTO and Extended Leave, your Committee proposed eliminating the PTO and moving to a vacation system (while converting existing PTO to vacation). We also proposed eliminating Extended Leave and replacing it with an accrued sick leave system (again, while converting existing EL to sick leave). The Company stated on Day 2 that it was not opposed to these concepts. AMFA, therefore, began drafting a full Article 13 proposal during caucus and will be prepared with this Article at the beginning of the next session.
On Article 23 – Benefits, we proposed to set a new floor of insurance benefits where the benefit levels are today while making future improvements possible through certain me-too provisions with the pilots. We also proposed to cap the premium cost splits with the Company and to cap future premium contribution increases. We took the same approach with the HSA benefits while proposing a continued “me-too” with the pilots. For retirement, your Committee proposed keeping the maximum Company contributions the same but converting more of the matching percentage to a non-elective contribution. We also proposed updating the moving reimbursement benefits to better align with the industry. The Company is reviewing our proposals on benefits.
On Article 25 – Wages, Premiums, and Shift Differentials, your Committee did extensive research and preparations to inform our proposals. We looked across the market for all AMTs, and based on the demand for AMTs today, we proposed substantial increases to the base wage, the license premiums, higher premiums for Leads/Inspectors/RII, a new skill premium for certain Members who do not have an A&P license, longevity to match the market, and higher shift differentials. The membership has made its feelings clear that you deserve a substantial increase in pay for the work you do for Horizon and, in response to the growing demand for AMTs, both junior and experienced levels. We have heard you loud and clear and will continue to use your energy to bargain for the wages and benefits your hard work has earned.
Specifically, on the “Geo-premiums” the Company currently pays, we proposed deleting all the Geo-premiums and putting all members on pay scales that would address staffing and cost of living concerns but, more importantly, give you the pay your work deserves. We also proposed language whereby if the Company hired a Technician at a step above the minimum, it would be required to raise all employees in that classification to that level. This language is intended to capture the concept that a rising tide lifts all boats. The Company rejected this proposal and indicated it wanted to continue paying Geo-premiums. We also proposed an amendable date in January 2027, or approximately a 2.5 year CBA, with a one-year early opener, which included a proposal on retroactive pay back to January 2024.
On the afternoon of Day 3, the Company provided its first counterproposal on wages and duration. The Company proposed a five-year agreement with “all-in” raises of approximately 2.4% for AMTs (1.98% for our non-AMT Members) on the date of ratification and a lowly 1.0% increase each year of the agreement. This included $0.25 on additional license premium and a $0.05 increase in swing shift premium (no increase on night shift). The Company’s proposed raises are insulting to your hard work and nowhere close to where our valued Membership’s compensation should be. In addition, in the afternoon of Day 3, we passed a full Article 7 – Overtime.
The Company shared a long analysis of the ten “regional airlines” it uses as comparators but would not share the underlying data with us. This topic of comparators is something with which we vehemently disagree with the Company. When we pressed if the Company thought its substandard economic proposal could pass ratification, the Company openly admitted that its proposal, most likely, would not ratify. This type of unproductive bargaining is wholly incompatible with the Company’s stated goal to reach an agreement quickly.
The parties are scheduled to resume bargaining June 24-27 in Seattle. We continue to extend an invitation to all Horizon members to attend and watch the process of negotiation. Space will be limited to room capacity, so please contact AMFA-Horizon Air Airline Representative (ALR) Chuck Clum if you are interested in attending.
Fraternally,
Your AMFA Negotiating Committee
