7.28.24 – 2024 Tentative Agreement Update: Total Economic Value

Sunday, July 28, 2024

2024 Tentative Agreement:
Total Economic Value

When we negotiate contracts, we negotiate against the company regarding the total economic value. Our goal is to get the most money in Flight Attendants’ paychecks while the company focuses on the overall cost. To analyze the overall value of the Tentative Agreement requires adding up all the economic items. Here, the combined impact will be an average 35.9% increase with more increases in the out years (Date of Signing +1, etc) of the agreement.

What this means is if your take-home pay was $60,000, you would see an economic impact on your compensation to $81,540. This is approximate, but you can take your last year’s total compensation from your tax forms and multiply by 1.36 (which represents the 36% total annual increase) to see your real impact.

In these negotiations, through the threat of a strike, countless pickets, and weeks of high-level mediation in Washington D.C., we were able to push the total economic value far beyond where the company intended for this agreement. This represents an additional $4.2 billion above the cost of the current contract, and $1.4 billion over what the company was proposing in May. There is no doubt in our minds that we pushed the company to put every penny and beyond on the table.

When evaluating the contract, we have to look at all of the provisions. Here are the main economic provisions that will impact our take-home pay.

click all  images to enlarge

Below, we will review the main economic elements of this agreement.

Wage Increases 

Wages increase between 18% and 20.5% with the new agreement and then increase an additional 12.8% compounded over the life of the agreement. Combined with boarding pay, the key economics increase between 26.2% and 28.7% in the first year. The combined wages and boarding pay compare favorably to recent settlements, with the Pilots receiving 21% in year one and Southwest Flight Attendants receiving 22%.

Boarding Pay

Boarding pay will provide an average 8.2% increase in Flight Attendant compensation. Essentially, we are receiving pay for an additional unit of time for which we are not currently paid, and this impacts our pocketbooks. In the long run, however, winning an important new work rule will allow us to improve this to 100% and beyond.

Flight attendant schedules vary, therefore the amount of boarding pay each Flight Attendant earns will be different based on your pay step and the number and types of boardings completed.

Boarding pay example: Month of 737/321 flying with 35-minute boarding times:

Interactive boarding pay examples here, along with examples for NIPD, IPD, and a MIXED bid month:

401(k)

The company contribution/match increases from the current 5.5% to 9%, which represents the same as a 3.5% increase in wages. Securing more retirement pay was a priority in these negotiations, and our provisions now go from the worst in the industry to the best.

Per Diem

Per diem increases from $2.20 domestic to $2.85 and from $2.50 to international to $3.40. Because per diem pays on all hours away from base, it adds up over the year. On average, the per diem increase will add an additional 2.5% to Flight Attendant’s pocketbooks over the course of a year.

Where can I learn more about the economic valuation and negotiating process?

Our first Tentative Agreement virtual town hall will be held Wednesday, July 31, from 12:30pm to 3:30pm CT. For more information on Virtual Town Halls and Base Visits, click here.

Click here to RSVP for your Base Visit

Questions? Contact the Tentative Agreement Call CenterThe 2024 Tentative Agreement call center is now open daily from 9 am until 5 pm.

(424) 4TA-INFO
(424) 482-4636

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Continue to wear your red WAR pin, red lanyard, and bag tags until we secure the contract we’ve earned.

In Solidarity,

Your APFA Negotiating Committee

Reese Cole
Kelly J. Hagan
Julie Hedrick
Timothy Legeros
Brian Morgan
Wendy Oswald
Susan Wroble
Joe Burns, Lead Negotiating Attorney

[email protected]