The Tentative Agreement is a complex document that the members of the Bargaining Committee and the Company worked on over many months. The Bargaining Committee--with one exception--stands firmly behind the outcome. We believe we have negotiated the best possible agreement for all members and that the provisions represent a marked improvement over past contracts.
The TA is also a better option for all employees than the current LUS contract, and profoundly better for LAA employees who would be left without the protections of a union contract if this agreement were not ratified and the Committee had to return to the bargaining table for what would be an uncertain period of time with an uncertain outcome. For a comparison of the TA with the current LUS contract and current LAA conditions, see this table.
There has been a lot of misinformation and misinterpretation of some of the TA’s provisions, so we will address five of those important issues here. Please refer to the comparison chart or the full Tentative Agreement for further details.
No Furloughs
No employees would be furloughed “to the street” during the life of this contract. If the Company downsizes or eliminates stations, you may exercise your seniority to move to another position. The TA improves upon the current contract by requiring 30 days notice, instead of 14, and by requiring the Company to pay moving expenses to a full-time employee who displaces to a full-time position in a different location.
We successfully bargained to maintain 30 stations that were in danger of being outsourced immediately, and thereby would keep all union members in those stations employed. Under the TA, as long as there is at least one union employee in a location that was active as of the date of ratification and remains active, the Company must maintain that location and that position. Only once all union employees that were active on the payroll and remained active have left a station (because of transfers or retirements, for example), may the station be contracted out.
Medical Coverage
The CWA/IBT Association and the Company have agreed in writing that the Association will present a proposal on new terms for health care coverage in 2016 and the result of those talks will determine coverage for 2017 and beyond. There are protections in the new contract for a cap on the premium percentage a member would pay if the default American plan would go into effect.
There are multiple LAA options for LUS employees who are now choosing among those plans, some of which are more expensive and some of which are not. More expensive LAA plans may come with improvements such as free preventive care and potentially less expensive generic prescriptions. LUS employees will receive wage increases in 2016, but will not begin paying new insurance premiums until 2017.
Signing Bonus
The Bargaining Committee tried to negotiate a signing bonus, but in the end chose to focus on obtaining the highest possible wages—the highest in the industry—rather than a signing bonus, which would be a one-time-only payment. Higher wages are a permanent and ongoing improvement in our members’ paychecks, resulting in higher overtime wages, allowing members to make higher contributions to their retirement accounts, and resulting in higher matching contributions in the long run. It is to the Company’s advantage, not ours, to focus on one-time bonus payments, rather than long-term, steady improvements in take-home pay.
Loss of BSO Positions
Unfortunately, we were not able to negotiate to maintain BSO positions within the scope of work of our members. It is true that those positions may now go to contractors. What is important to remember is that no members will lose their jobs as a result of the loss of BSO positions. All members will maintain their jobs, but will no longer serve in BSO positions. This is not a net loss, but will result in movement to new positions by some workers.
Outsourcing
We agreed to limited outsourcing of some work to save over 1,000 jobs and maintain work in 30 cities. The 403 employees affected will be covered by protections negotiated for no furloughs and no displacement for baggage service employees. There will be no station reductions.
The TA eliminates the use of LAA vendors (redcoats) and outsourcing for kiosk work (as is currently the case at LAA) and places it firmly with CSA/CAR employees. The Company plans to hire additional workers to pick up these duties, and our union will represent the new employees.
The TA provides for 17 duties that must be performed exclusively by CSC/CSA employees. Most of the duties that may be done by contractors in the TA are currently done by contractors at American.