Dues Restructure
Ballot Measure 2: NNRF
Negotiations & Negotiations Related Fund (NNRF)
The Negotiations and Negotiations Related Fund (NNRF) is a war chest that ensures we have the best negotiations possible. This fund protects our right to negotiate a contract regardless of the financial standing of APFA. This fund can ONLY be used for negotiations and negotiations-related activities.
Expenses Funded by the NNRF
- Negotiating Committee
- Professional attorney and Economist fees
- Training
- Picket and strike activity
- Swag (e.g., pins, t-shirts, bag tags, banners, and picket signs)
- Booklets (e.g., Strike Authorization Vote, strike handbook, TA book)
- Call Center
- Technology (transparent negotiation online, online voting, other web resources)
- Contract Action Team (CAT) support in terminals
- Virtual town halls
- In-person base visits
- Lodging, transportation, and meeting spaces
- Surveys
- Social media, news coverage and exposure, videography, and public relations
Currently, we must continue to contribute to the NNRF even though we have a high balance. A floor and ceiling will allow funds to be used for other services. This change is not an attempt to deplete the NNRF, but rather better utilize dues.
Cost of Negotiations
Since the 2014 negotiations resulted from the American Airlines/USAirways merger, American Airlines paid the negotiation expenses. Below is a breakdown of the NNRF, contributions, and costs for the 2018-2024 negotiations:
Value of NNRF before 2018 negotiations: $12,600,880
Value of NNRF when negotiations resumed in 2021: $14,738,476
NNRF contributions (’21-’24): $4,497,752
Cost of 2018-2024 negotiations: $6,914,525
Current value of NNRF (as of November ‘24): $12,321,703
Proposed Changes
What Changes Would Look Like and How They Would Work
The proposed change will introduce minimum (floor) and maximum (ceiling) balances for the NNRF. These balances will be established by the APFA Board of Directors with guidance from financial advisors and economists. When the NNRF reaches the ceiling, contributions will pause and redirect to APFA’s general budget, expanding services to Members. Funding into the NNRF will resume when the fund drops to the minimum level or at the start of a new negotiation cycle. During negotiations, spending from the NNRF will occur until the balance reaches the floor, at which point funding into the NNRF will resume until the balance reaches the ceiling again.
How This Change Will Benefit You as a Member
This change allows APFA to utilize funds for more services and representation for the Membership once our negotiations savings goals have been reached.
What happens if the NNRF funding structure remains the same?
- We will continue contributing 25% of any increase for dues received.
- The NNRF balance will continue to increase to an amount that is impossible to spend on just negotiations and negotiation items.
What happens if the NNRF funding is restructured?
- The NNRF will continue to maintain a balance that is well-equipped to fund multiple successful negotiation cycles while allowing funds to be applied to representation and services.