Flight attendants Hawaiian Airlines' flight attendants have agreed to $3.5 million in labor cost reductions as part of more than $15 million in overall employee concessions that the carrier said is needed to return to profitability.
OK pact
Hawaiian Airlines workers approve
$3.5 million in labor concessions
in an effort to avoid bankruptcyBy Dave Segal
dsegal@starbulletin.com
The Association of Flight Attendants' Hawaiian unit, which ended 10 days of balloting this morning, approved the agreement by an 87 percent margin. More than half of 812 eligible members voted.
The concessions allow more flexibility in scheduling; the ability to code-share with American Eagle and America West airlines; changes to the reserve program, which is how flight attendants are scheduled for flights; and changes in sick-leave policy and accrual.
"In other words, the flight attendants are going to have to work more to earn what they did before," AFA spokesman Jeff Zack said.
Base wages and health benefits were maintained, however, under the agreement.
A flight attendant flying an average of 75 hours a month earns $15,876 in the first year, $30,375 in the sixth year and $37,053 in the 20th year. Flight attendants' paid hours start from the time the airplane pushes back to begin taxiing to the time the door is opened after landing.
Generally, when a flight attendant gets assigned hours, it's in the form of a series of trips, which in many cases include overnight layovers in cities other than the city in which the trip originated. Flight attendants do not get paid their hourly rate for the time passengers are boarding or deplaning, or while staying overnight in a hotel, or while in transit to and from airports when in cities other than their base city.
"Hawaiian Airlines flight attendants have stepped up to the challenges in our turbulent industry by continuing to provide the highest level of safety and service to our passengers," said AFA Hawaiian Airlines Master Executive Council President Sharon Soper. "Now we are standing together to do our part to ensure the long-term financial success of our airline."
Earlier, union members of the Air Line Pilots Association voted to accept $8 million in concessions and the International Association of Machinists' mechanics and clerical workers agreed to $3.8 million in concessions.
The Transport Workers Union Local 540, which represents 25 Hawaii members, reached a tentative agreement Friday on $185,000 in concessions and plans to put the agreement before its members tomorrow or Wednesday.
A representative of the Communications Section union, which is the smallest union at Hawaiian, could not be reached.
Hawaiian, which also has asked Boeing Co. for $15 million in leasing concessions, said in a Jan. 31 memo to employees that "our aircraft lessors are also indicating substantial support, contingent on our union groups achieving their full contributions."
The airline lost $43.2 million in the first nine months of 2002 and already has said it will report a loss in the fourth quarter when it announces its final 2002 earnings later this month. Hawaiian has told its employees that it would need to consider filing for Chapter 11 reorganization bankruptcy -- its second such filing in 10 years -- without the concessions. The airline also received employee concessions in 1996 as part of the agreement when John Adams, now the company's chairman and chief executive officer, led an investors group to purchase Hawaiian for $20 million.
Hawaiian Airlines
Association of Flight Attendants