Furloughed AA pilots are eligible to purchase federally available COBRA continuing health insurance coverage. COBRA insurance provides continuing health insurance coverage for former employees for up to 18 months. The insurance is provided at group rates and is generally less expensive than purchasing individual health coverage.
The American Recovery and Reinvestment Act of 2009 provides a 65 percent COBRA insurance premium reduction that only runs through the end of February 2010. A furloughed pilot with a family of four could realize an insurance premium savings of approximately $10,000 over the 15 months of subsidy eligibility.
When AA management relayed their intentions to resume furloughing pilots, the first group of 80 was slated to be furloughed on March 2, the end of the February contractual month. The March 2 furlough date would make those pilots ineligible for the government-subsidized COBRA premium reduction.
To preserve the first group of furloughees’ eligibility for the government-provided COBRA insurance, APA engaged in discussion to move the furlough date up two days from March 2 to February 28. Management predicted end-of-month manning problems if the furlough date was moved up. Accordingly, negotiations commenced and the following manning relief provisions were developed:
For the window of February 26 through March 1, management is granted the following relief provisions for the affected bid statuses of SLT S80 FO DOM, MIA 737 FO DOM/INT, LGA S80 FO DOM, DCA 737 FO DOM, BOS 737 FO DOM:
• Management has fulfilled their notification requirements to APA for turning TTOT lights to “redder” for sequences during the above window in the above bid statuses.
• Management may deploy partial reserve TDYs to cover the aforementioned bid statuses. The TDYs will be proffered in seniority order then assigned in reverse seniority order if required. Pilots awarded or assigned a partial reserve TDY will receive 10 hours deadhead pay plus three hours CPA time for each day away from home base, over and above flying time or reserve guarantee.
• To assist coverage, management will be able to split sequences for the aforementioned bid statuses scheduled to operate during the window.
• Split sequences may be allocated to any domicile for coverage.
• Pilots to be furloughed sitting reserve will be relieved of reserve obligation at 12:00 p.m. on February 28. Pilots to be furloughed who are out flying will be returned to home base early enough “to ensure such pilot’s duty terminates in sufficient time prior to the start of furlough.”
In exchange for these manning relief provisions, management agrees to move up the effective furlough date to February 28, 2010. If the U.S. Congress extends the government-provided COBRA insurance premium reduction, the parties have agreed to meet immediately to discuss any impact.
LOA 10-01 was approved by the APA Board of Directors this afternoon by a vote of 14 in favor, three against and one abstention. Approval of the LOA was accompanied by a commitment from APA and management to continue furlough mitigation discussions.
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