11/23/2022
Reset valuation
Brothers and Sisters,
As required by LOA #29 the reset calculation is now complete. While the number is far below what we were hoping for, the math is plain. We will receive a 2.6% increase over the basic rate starting December 4th. According to our economic team, the lack of profit sharing at AA and DL along with the bond yields affecting pension costs, led to the lower-than-expected result.
Below is the calculation used by the parties;
The Industry Reset language in LOA 29 was designed to keep us moving forward especially when the other two comparable airlines moved ahead. The direct benefit of this language has produced approximately 9% more than the CBA would have provided without LOA 29. In fact, this contract increased the top rate from $36.92, just prior to ratification, to $54.51 on December 4th 2022, inclusive of the VEBA. This reflects an overall increase of 47.6% over the life of the agreement. Click here to view the new rates.
Unfortunately, LOA 29 does not focus on solely on wages, nor does it reflect vast economic changes such as the rising worldwide inflation. Retirement plan, vacation hours, sick time accrual hours, and employee health care costs remain superior under the Teamsters over Delta and American and are also considered to be part the reset. Negotiations is the vehicle to force those needed wage changes. We are now pressing the company to address the hourly rates in bargaining quickly. We’ve expressed to the company that anything less than industry leading pay rates is unacceptable. It is our intent to deliver that to you as soon as possible. The good news is that the company has the same data we have. We’ve expressed that their continuing ability to hire and retain the planned increase in Technicians is greatly diminished under the current scale. While nothing has been committed to by the company, they understand the depth of the problem.
Our next meeting with the company will take place in Phoenix starting December 13th. We are hopeful that meaningful progress on pay rates will be made at this meeting.
Fraternally,
Vinny Graziano
Airline Division Representative IBT