New voluntary early out and leave of absence programs for represented team members

We captured the following communication to AA Management.

If you have any questions please contact your supervisor as they have not shared any details with our local.

Dale
 

New voluntary early out and leave of absence programs for represented team members

Directors and Above,

In a letter to team members, Doug and Robert shared an update on the issuance of WARN letters and the opening of enhanced voluntary leave and early out programs for active, U.S.-based mainline represented team members, excluding pilots.

Below you’ll find details and additional resources about the voluntary programs for your reference.

Flight attendants should watch for a CCI message with more details on the VEOPs and extended voluntary leaves of absence (EVLOA) programs.

Voluntary Early Out Program (VEOP)

  1. VEOP for represented team members with 10 or more years of seniority
    1. Eligibility: Active, U.S.-based mainline represented team members, excluding pilots, who have 10 or more years of seniority as of July 15, 2020.
    2. Application and selection process: Team members can apply for the VEOP Wednesday, July 15, through Friday, July 31, at 11:59 p.m. CT. Team members can elect one of two options – “12-month payout period” or “lump sum.”
    3. Pay:
      1. 12-month payout period: Team members will receive six months of pay, which does not include premiums, shift differentials, overtime pay, holiday pay, etc., paid over a 12-month period while staying on payroll.
      2. Lump sum: Team members will receive 6 months of pay, which does not include premiums, shift differentials, overtime pay, holiday pay, etc., paid in a lump sum no later than Aug. 15, 2021.
    4. Medical:
      1. 12-month payout period: Team members will receive medical coverage at active rates for a total of 30 months. For the first 12 months, they will receive the same coverage they have today. After separation, they can enroll in COBRA (medical/dental/vision) coverage for an additional 18 months at the same active rates.
      2. Lump sum: Upon separation, team members can enroll in COBRA (medical/dental/vision) coverage and will pay the same active rates they pay today for 30 months.
    5. Retiree Health Reimbursement Arrangement (RHRA): For team members who qualify for the 65-point plan (calculated as at least 10 years of company service, and age + years of company service = at least 65) by the time of separation, the company will establish a RHRA following separation. The RHRA will be credited with a value between $100,000 and $150,000 depending on when they are eligible for Medicare.
    6. Travel: Team members will maintain their current non-rev travel privileges through their last day on payroll. Team members will also receive 8 positive-space round-trip tickets (E inventory) to be used within 5 years.
      If a team member qualifies for the 65-point plan (see above) at the time of separation, they will transition to retiree travel, per the company policy. If they do not qualify for the 65-point plan, upon separation from the company, they will receive 2 years of non-rev travel privileges at the amended D2R status.*
    7. Retirement benefits: 401(k) and IAM pension contributions and applicable company contributions and/or match will continue until separation (this includes while still on active payroll if electing the 12-month payout option).
  2. VEOP for represented team members with less than 10 years of seniority
    1. Eligibility: Active, U.S.-based mainline represented team members, excluding pilots, who have less than 10 years of seniority as of July 15, 2020
    2. Application and selection process: Team members can apply for the VEOP Wednesday, July 15, through Friday, July 31, at 11:59 p.m. CT.
    3. Pay: Team members will continue to work and be paid for their scheduled hours through Sept. 30, 2020.
    4. Medical: Team members will maintain their current medical coverage at active rates through Sept. 30, 2020. After separation, they can enroll in COBRA (medical/dental/vision) coverage for a total of 18 months. For the first 6 months, they will pay the same active team member rates they pay today. For the following 12 months, they will pay full COBRA rates.
    5. Travel: Team members will maintain current non-rev travel privileges through Sept. 30, 2020. Upon separation from the company, they will receive 2 years of non-rev travel privileges at the amended D2R status.*
    6. Retirement benefits: 401(k) and IAM pension contributions and applicable company contributions and/or match will continue until separation.

* D2R travel privileges for yourself, spouse/domestic partner/registered companion, and qualified children only. This does not include an allotment of D1s or D3s, OAL or parent travel. Imputed income applies to all travelers.

Long-term Voluntary Leave of Absence (VLOA) – 15, 18 or 24 months

  1. Eligibility: All active, U.S.-based mainline represented team members, excluding pilots, as of July 15, 2020. Absent exceptions required by law, active status for the purpose of this program is defined as a team member on payroll receiving pay from the company, such as paid sick/vacation, salary continuance, a previously offered PVLOA or VLOA, or FMLA. Based on operational needs, the company may cancel or reduce the duration of team member leaves per the applicable Letter of Agreement.
  2. Application and selection: Team members can apply for the VEOP Wednesday, July 15, through Friday, July 31, at 11:59 p.m. CT. Team members have a choice to elect a long-term VLOA for 15, 18 or 24 months.
  3. Pay: Team members will receive pay for a portion of their contractual regular work schedule at pay rates based on seniority. This does not include premiums, shift differentials, overtime pay, holiday pay, etc. Full details on each workgroup’s precise pay calculation can be viewed in Resources section below.
  4. Travel: Team members can continue to enjoy their current active team member non-rev travel privileges.
  5. Medical: Team members will continue to have the same medical/dental/vision coverage they do today at the same active rates.
  6. Retirement benefits: 401(k) and IAM pension contributions and applicable company contributions and/or match will continue while on leave.

Resources

Special voluntary leave of absence and early out programs for team members Details and FAQs