Tentative Agreement Hot Topic: Benefits
Dear Spirit Flight Attendants,
Do we have to fly 600 hours per 12 months to stay employed or for Sick or Vacation accrual? NO
Management was seeking a monthly minimum flying amount, BUT WE REFUSED.
However, increasing the number of hours required to meet the Benefits Threshold was a main management goal from the first day of bargaining, and it was the last thing agreed to in reaching the Tentative Agreement. AFA rejected management’s demand during negotiation to increase the threshold to 720 hours. We resisted until the very last moment when management made it known that there was no deal unless we agreed to increase the threshold to 600 hours.
Instead of increasing the threshold, management had demanded monthly flying minimums (i.e., actual minimum hours of flying each month) or changes that would degrade the healthcare plans, such as increasing deductibles, coverage, or significantly increasing premiums paid by Flight Attendants. Those options would negatively affect ALL Flight Attendants. None of that was acceptable to AFA.
It is important to note that there are:
No change to Medical Plan provisions
No change to Medical Plan Premium calculation
What did change is the Benefits Threshold needed to qualify for company-subsidized medical insurance starting with the Plan Year 2025. It increased from 432 to 600 hours, and the 12-month qualifying period moved a month earlier: from September 1 – August 31.
Important: There is no change in qualifying for the Plan Year 2024: It remains 432 hours. The increase in hours will apply the following year to the Plan Year 2025. That means during the qualifying period of September 1, 2023 - August 31, 2024, a Flight Attendant must have 600 qualifying hours to maintain company-subsidized health insurance in 2025.
“Company-subsidized” medical insurance means that the company pays a portion of the monthly insurance premium. Flight Attendants who do not meet the benefits threshold may access health insurance by paying the full COBRA rate.
The chart below explains the portion of the premium that a Flight Attendant and the company pay (highlighted in yellow is the portion the FA pays):
Management was so adamant because it is big money, as you can see by the above chart. Additionally, it seemed like an emotional demand for the company. They do not want to pay for healthcare for Flight Attendants whom they feel “do not come to work or get full-time benefits for part-time work” – their words.
We did list out in the Tentative Agreement ALL the pay codes/hours that count toward the benefits threshold:
Today, the vast majority of Flight Attendants would qualify for the 600 hours without any change in flying habits. The below chart outlines the number of Flight Attendants who today would and would not reach the benefits threshold. However, this TA provides significant advance notice, and we anticipate that Flight Attendants who need to would be able to adjust their flying patterns to meet the new threshold.
Total Flight Attendants (2022): 5073
Total That Do NOT Make 432 Today: 291 (6%)
Total That Will Have to Work More: 415 (8%)
Total That Qualifies with at least 600: 4367 (86%)
We resisted management’s demand to increase the benefits threshold until the very end of negotiations because we knew that it would be a significant and controversial aspect of the Tentative Agreement. As we came closer to a deal, it was evident that there was no deal with management without increasing the benefit threshold. Weighed against the significant improvements in the Tentative Agreement and the below points regarding health insurance, your negotiating committee reluctantly agreed to the increase to secure a new Tentative Agreement.
Important Aspects:
Preserved one of the best healthcare plans in the industry.
Cemented top-shelf medical plans going into the merger.
Secured top-shelf medical plans if the merger does not occur.
Held off on the implementation of the increase until the 2025 plan year.
No change to premium percentage increases.
In Solidarity,
Your Negotiation Committee & MEC Officers
