Q: Can you explain more about the Market Rate Adjustment?
A market rate adjustment provision protects Flight Attendants from their pay rates falling far behind the industry. The other labor groups at Alaska negotiated a market rate provision into their contracts.
We did not negotiate a market rate into the TA, but we did negotiate an LOA. The Company is required to either negotiate a market rate provision within the JCBA if the merger is approved, or as a separate agreement if the merger fails.
The complicating factor is Boarding Pay – Southwest does not have Boarding Pay, Delta does – and the American TA has Boarding Pay. United is still in negotiations.
When we negotiate the provision, we will need to discuss how to compare airlines with Boarding Pay and those without.
The provision we negotiate will ensure our downline increases are either the normal percentage, or a calculated percentage based on the raises at other airlines.