October 30, 2020

To:      All Crewmembers

From: Jeff Carlson, Senior Vice President, Flight Operations

Your New Contract: Negotiations Update

As you all continue to deliver for our customers with a focus on safety, I want you to know we appreciate all your efforts.  We are also committed to keeping you informed and working hard to complete your new contract. 

Our latest bargaining session with Union leaders concluded today and I want to share an update with you.  This week, the Company provided the Union with a Term Sheet Supposal that includes the Company’s comprehensive economics for the new Joint Collective Bargaining Agreement (JCBA).  Our supposal reflects a variety of inputs and considerations including our current agreements, the competitive landscape in which we operate, the changes in our operation since the last CBAs were entered, quality of life enhancements, and the overall market conditions both now and as we look into the future.  The supposal also takes into consideration our business model and revenue streams.  It seeks to provide you a competitive compensation package, while allowing for fair returns for the Company and our stakeholders. 

When we last met with the Union in September, the Company reviewed with the Union the aggregate cost of the Union’s economic supposal.  As I shared with you after our session last month, the Union’s proposals more than double the Company’s current overall cost structure.  This is not sustainable for our Company or for the long-term careers of you, our valued pilots.

The Union has detailed the basis of their position, and we have now detailed the basis of our supposal.  We believe we have an important foundation for the serious bargaining that remains to be done. 

We are committed to listening to Union leaders to learn more about their positions and rationales, just as we hope they are committed to listening to ours as we work together to move these negotiations forward to complete the updated contract you deserve. 

We value you and appreciate your dedication. 

To learn more about the background and status of contract negotiations, click here.