Monthly Archives: November 2016

American Airlines Workers Industry Best Pay Rates Go into Effect

This month, approximately 30,000 ground workers at American Airlines will see their industry-leading wage rates reflected in their paychecks. The wage increases for the TWU/IAM Association represented workers will average approximately 22 percent. Mechanic and Related workers will surpass by three percent similarly classified workers at Delta Airlines. Fleet Service, Stores/Material Logistic Specialists and Maintenance Training Specialists’ wages will increase one percent ahead of their peers at United Airlines.

“These industry-setting increases are the result of the Association Negotiating Committees’ hard work,” said Association Chairman Sito Pantoja and Vice Chairman Harry Lombardo. “These gains are only the beginning for our members as we continue to negotiate for improvements in all areas of our contracts.”

In addition to the industry-best wage hikes, Association members will see improvements to their defined benefit and defined contribution pension plans.

While these gains are the industry benchmark, they are only the first step in negotiations. The TWU-IAM Association Negotiating Committees are in ongoing talks with American Airlines to procure improvements in all areas of Association members’ contracts.

The TWU-IAM Association is an affiliation between the Transport Workers Union and the International Association of Machinists and Aerospace Workers (IAM).

MSP Flex Pay Rates

Dear Sisters and Brothers:

Effective November 5, 2016, American Airlines has stated that due to the Interim Wage Agreement, they will invoke the use of flex rates for the following classifications and stations:

Maintenance Support Person (MSP)

BOS $18.57 Step 4 – 5
JFK/LGA $18.57 Step 4 – 5
LAX $18.57 Step 4 – 5
MIA $16.95 Step 3 – 4
ORD $14.01 Step 1 – 2
SFO $18.57 Step 4 – 5

Per the company, this rate is necessary because of market conditions in these areas. Upon hiring of the first external candidate with the new rate, employees currently on payroll who have been receiving less than this rate will be raised to the Flexible Starting Rate in accordance with Article 4(d) of the AA TWU Mechanic and Related agreement.

Fraternally,

Mike Mayes
Air Division Director

Interim Wage Agreement

As we approach the next step for implementing the interim pay agreement, we want to be sure you know what to expect and where to go with any questions.

What’s Happened So Far
The majority of TWU-IAM Association-represented Mechanic & Related, Stores and Fleet Service employees received a lump sum payment on Aug. 26 (which was 21 days from the date of the agreement signed Aug. 5). This payment was an estimate of the number of hours you would work during the first 90 days of the agreement, or specifically, Aug. 5 through Nov. 3. For more information on how the lump sum was calculated, see the information here on Jetnet.

What Happens Nov. 4?
New pay rates are scheduled to be effective with the Nov. 4 pay date (which is 90 days from the date of the agreement). Any shift beginning on or after Nov. 4 will be paid at the new rate. Depending on what schedule your paychecks arrive, you will either see that new rate in your Nov. 10 or Nov. 18 paycheck.

What Happens After Nov. 4?
There will be a true-up process for some employees; the company will make sure no one is short any money owed to them.

  • If your hours worked from Aug. 5 through Nov. 3 was greater than estimated in your Aug. 26 lump sum payment, the company will issue you an additional check/direct deposit (however you normally receive your pay today) to cover the difference. That payment will be equal to the amount the lump sum differed from the hours paid and will be made no later than early January, as required by the agreement.
     
  • Additionally, if you returned from a leave of absence on or after Aug. 5 but before Nov. 4, you’ll receive a check/direct deposit to cover the difference in your old rate and new rate for hours worked from the date you returned to work through Nov. 3. You will receive that payment no later than early January 2017, as required by the agreement. For information on how the lump sum will be taxed and your ability to deposit it into your 401(k), see the FAQs on Jetnet.

If you have questions about your paycheck, please reach out to Payroll Services by chat, email or phone at 800.447.2000 (choose option 6 for Payroll).

Flex Pay Rates

Dear Sisters and Brothers:

Effective November 5, 2016, American Airlines has stated that due to the Interim Wage Agreement, they will discontinue the use of flex rates for the following classifications and stations:

Aviation Maintenance Technician (AMT) – EWR, JFK, LAX, LGA, ORD & SAN
Fleet Service Clerk (FSC) – AUS, BOS, DCA, JFK, LAX, LGA, MIA, ORD, SAT & SFO
Material Logistics Specialists (MLS) – BOS, EWR, JFK, LAX, LGA, MIA, ORD & PHL
Plant Maintenance Mechanic (PMM) – BOS, DCA, DFW, JFK, LAX, LGA, ORD, SFO & TULE

New hires on payroll after August 5, 2016 in the above station and classifications will be placed on the new pay scale at the first step rate effective November 5, 2016 and will be subject to the true up in January 2017.

Fraternally,

Mike Mayes
Air Division Director