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Profit Sharing Update

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Source: AFA

Date: Oct 21, 2015

Source: OurContract.org

We Spoke with One Voice – United for a Joint Contract and Equal Pay

On September 30th, the Joint MEC, including locally elected representatives from all 19 AFA Local Councils comprising pre-merger CAL, CMI and UAL, unanimously adopted a resolution for “concrete measures of change.” The substance of the resolution included a call for management to confirm inclusion of CAL and CMI Flight Attendants in 2015 profit sharing payments, along with halting all other activity at each pre-merger airline designed to interfere with bargaining a joint contract.

Contractual Profit Sharing Background

In February of 2012, pre-merger United Flight Attendants ratified a contract with profit sharing included. Under the Railway Labor Act, contracts become amendable, they do not expire. Therefore, while management often delays negotiations as a tactic to avoid providing improvements, in some cases this also accrues a benefit to the workers because all of the provisions of the contract, such as profit sharing, remain in place and continue to provide security for the workers covered by the agreement until a new agreement can be ratified by the members. While both the CMI and CAL contracts were ratified later in 2012 with the provision that would continue the profit sharing program only until the agreement became amendable “(Plan year 2014, for profits made in fiscal year 2014 and payable in 2015),” it also included a provision that allowed management and the union to agree to extend profit sharing beyond the amendable date.

Continental MEC Announcement for 2015 Profit Sharing

Last week on October 14th the Continental MEC announced, “We have reached an agreement in principle to provide for the participation of CAL and CMI Flight Attendants in the 2015 Profit Sharing Program. Full details will be forthcoming by the end of the week.”

An agreement “in principle” means that the concept has been agreed to, but the language has not yet been written or finalized. Typically, AFA waits to announce any agreements until the language is finalized to ensure there are no misunderstandings and the release of full details to members is not delayed.

Management Confirmed 2015 Profit Sharing

In this case, members should take comfort in the fact that management confirmed the agreement on October 15th through a “United Negotiations” update published by Labor Relations. “We are pleased to announce that United and the Association of Flight Attendants have reached agreement to provide for the participation of S-CO and S-CMI flight attendants in the 2015 Profit Sharing Program.”

CMI Announcement of 2015 Profit Sharing

On October 15th, following the company announcement, the CMI leadership sent the following update:

“The company has officially announced what we have been hearing since May. Continental Micronesia and Continental Flight Attendants will receive 2015 profit sharing. I would like to thank all of the Local Council Presidents who make up the CMI/UAL/CAL Joint Master Executive Council. Their unanimous support for us to receive profit sharing made the difference and led to the company announcement confirming this today. And the reality is that we have had unwavering support from all of the United AFA leaders on all of our issues.

“Some are asking why the company referred to this as an "agreement" to provide profit sharing. Let me be clear, as your representative I did not agree to any contract changes in order to achieve this confirmation of profit sharing. We are getting this because we contributed to the profits of this company and it’s the right thing to do. Now this distraction is removed from bargaining and we can conclude the real work that needs to be done: achieving a Joint Collective Bargaining Agreement that you can ratify.

“Pre-merger United Flight Attendants will get profit sharing because it is in their contract. They have demonstrated solidarity in a substantial way by standing with us on this. And, we must also stand with them. We all need equal pay for equal work. We all know that a combined contract would have addressed the issue of profit sharing for everyone. And, we know that a combined contract will produce more money for us that we can count on through our hourly wage, pay protections, job security and other compensation factors.”

Signed Profit Sharing Agreements

The language of the Profit Sharing Agreements was finalized Monday evening. The agreements are now in the process of being signed. The International President always provides the final signature on the document to ensure the agreements have been properly approved by the MEC representing the affected members. The International President has not yet received the agreements for signature.

Focusing on our Joint Contract

As noted in the CMI update, this removes the issue of profit sharing as a ransom for membership ratification. The landscape of the industry has changed. We are now in Railway Labor Act Section 6 bargaining, which has a process for concluding negotiations. Learn more about this process >

We have a tremendous opportunity before us to lift the standards of our careers. Together, we will make the most out of this opportunity and move our airline forward to operational integration.

Our Joint Negotiating Committee (JNC) is in mediation right now. Next week, the JNC will update all of the Local Council Presidents on the status of negotiations and our proposals. The following week another mediation session is scheduled. Following that session, the JNC will report out to members, including a scheduled Town Hall Call on November 12th at 6 pm Eastern.

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