Alaska Airlines News
Alaska Airlines Presents Offers on Key Sections of Proposed Pilot Contract
"Since negotiations began, the company has been clear that we are open to a wide variety of tradeoffs, such as increasing wages and retirement security in exchange for improved productivity. However, Alaska Airlines, the ninth-largest U.S. carrier, has the second-highest pilot labor costs in the industry and is not in a position to increase the total cost of its pilot contract at a time of rapidly rising fuel prices and a deteriorating economy. Nevertheless, the company has proposed to contractually increase pilots' current opportunity for annual profit sharing.
"ALPA's proposals to date would burden Alaska Airlines with the highest-cost pilot contract in the industry by a significant margin. That simply doesn't work for our customers, employees and shareholders."
Several highlights of the airline's proposed five-year contract include:
— The company's wage proposal on signing would elevate top-of-scale Alaska Airlines captains and seven-year first officers to the third-highest pay rate in the industry (behind Southwest and American). The offer would also provide annual scale increases and a mechanism for additional annual increases if warranted by changes in market pay rates. — At ALPA's request, the company kept the incumbent retirement plans unchanged. Alaska Airlines' counter-proposal on retirement would offer new- hire pilots participation in a 401(k) plan with a company contribution that exceeds what most other U.S. airlines offer. Closing the existing defined benefit plan to new pilots improves the long-term security of the pension fund for current participants. — The company's counter-proposal on insurance would slightly increase pilots' monthly contribution, but would provide them with expanded dental and vision benefits; improved short-term disability, life, and accidental death and dismemberment insurance; eliminate the prescription drug deductible; and add a cap on annual increases in employee contributions. — The Alaska Airlines counter-proposal does not propose any significant change over current language regarding code-share and contract flying.
Alaska Airlines also stated that, "Changing industry economics may affect the company's future proposals."
Alaska Airlines' contract with its pilots became amendable (open for negotiation) on
"To resolve our differences, Alaska Airlines has indicated its willingness to continue meeting with ALPA negotiators as often as needed," the company said in a statement.
Alaska Airlines and Horizon Air together serve 93 cities through an expansive network in
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