Republic Airways Flight Attendant 2019 Tentative Agreement Review of Compensation and Benefits 1 Teamsters Local 135 Airline Division Major Contract Improvements Summary 1. Overall economic improvements 2. Wage rates o Wage scale increases of 5%, 1%, 1%, 2% and 2% in Years 1 through 5 of the agreement (these amounts do not in longevity increases). o Premium pay for credit hours above 87 per month. o Regional comparisons 3. Signing bonus o Total signing bonus of $3.0 million 4. Pay credit guarantee o Minimum daily credit of 3.5 hours 5. Per diem improvements 6. 401(k) employer contribution improvements 7. Guarantee Low Time (GLT) flight attendants employer premium contributions 8. Paid Days Off (PDO) 2 Teamsters Local 135 Airline Division 1. Overall economic improvements • The tentative agreement includes $35.7 million in economic improvements over the five years. o This amounts to an average improvement of $18,100 per flight attendant over five years. o Additionally, the 2019 Tentative Agreement represents $10.2 million in improvements above the rejected 2018 Tentative Agreement. 3 Teamsters Local 135 Airline Division 2. Wage rates YOS Current DOS DOS+1 DOS+2 DOS+3 DOS+4 $18.20 1* $19.70 $19.90 $20.10 $20.50 $20.91 $19.33 Annual Contract Increases: 2 $21.32 $22.39 $22.61 $22.84 $23.29 $23.76 • DOS: 5%* 3 $22.85 $23.99 $24.23 $24.47 $24.96 $25.46 • DOS+1: 1% 4 $24.24 $25.45 $25.71 $25.96 $26.48 $27.01 • DOS+2: 1% 5 $25.66 $26.94 $27.21 $27.48 $28.03 $28.59 • DOS+3: 2% 6 $27.03 $28.38 $28.67 $28.95 $29.53 $30.12 • DOS+4: 2% 7 $28.45 $29.87 $30.17 $30.47 $31.08 $31.70 8 $28.87 $30.31 $30.62 $30.92 $31.54 $32.17 9 $29.72 $31.21 $31.52 $31.83 $32.47 $33.12 10 $30.58 $32.11 $32.43 $32.75 $33.41 $34.08 11 $31.64 $33.22 $33.55 $33.89 $34.57 $35.26 12 $32.77 $34.41 $34.75 $35.10 $35.80 $36.52 13 $33.27 $34.93 $35.28 $35.64 $36.35 $37.08 14* $33.73 $36.05 $36.41 $36.77 $37.51 $38.26 15 $35.79 $37.58 $37.96 $38.33 $39.10 $39.88 16† $36.29 $38.08 $38.46 $38.83 $39.60 $40.38 17† $36.79 $38.58 $38.96 $39.33 $40.10 $40.88 18† $37.29 $39.08 $39.46 $39.83 $40.60 $41.38 19† $37.79 $39.58 $39.96 $40.33 $41.10 $41.88 20† $38.29 $40.08 $40.46 $40.83 $41.60 $42.38 DOS = Date of Signing * The New hire rates (0-12 months of service) have been merged into one rate. Therefore, at DOS the 0-6 month rate increased by 8.2%, and the 6- 12 month rate increased by 1.9%. Additionally, the Step 14 rate increase at DOS is 6.9% to be an increase above the 2019 TA. 4 † These are not technically wage steps, but the wage increases are do to longevity premium of $0.50/hr. up to a maximum of $2.50/hr. Teamsters Local 135 Airline Division 2. Wage rates How to read a wage scale: • An employee going through progression (between 1 and 19 years of service) receive TWO (2) wage increases: 1. An increase of between 1% and 5%*, depending on the contract year, on the contract anniversary date. o This is a move to the RIGHT on the wage scale to the next column. 2. A step increase when the employee reaches the year of service (YOS) in the first column on the left. o This is a move DOWN on the wage scale in the same column. • An employee who has reached the top of the pay scale (greater than 20 years of service) receive ONE (1) wage increase: 1. An increase of between 1% and 5%*, depending on the contract year, on the contract anniversary date. o This is a move to the RIGHT of the wage scale to the next column. 5 * Contract increases are as follow: DOS = 5% (except steps 1 and 14); DOS+1 = 1%; DOS+2 = 1%; DOS+3 = 2%; DOS+4 = 2% Teamsters Local 135 Airline Division 2. Wage rates Example: How to read a wage table for a flight attendant at 3 credit years of service at DOS YOS Current DOS DOS+1 DOS+2 DOS+3 DOS+4 $18.20 1 $19.70 $19.90 $20.10 $20.50 $20.91 $19.33 Black = Current rate 2 $21.32 $22.39 $22.61 $22.84 $23.29 $23.76 This individual 3 $22.85 $23.99 $24.23 $24.47 $24.96 $25.46 will see her Red = Contract inc. 4 $24.24 $25.45 $25.71 $25.96 $26.48 $27.01 hourly rate 5 $25.66 $26.94 $27.21 $27.48 $28.03 $28.59 increase by Blue = Step inc. 6 $27.03 $28.38 $28.67 $28.95 $29.53 $30.12 $9.32 (41%) 7 $28.45 $29.87 $30.17 $30.47 $31.08 $31.70 8 $28.87 $30.31 $30.62 $30.92 $31.54 $32.17 over the five 9 $29.72 $31.21 $31.52 $31.83 $32.47 $33.12 years of the 10 $30.58 $32.11 $32.43 $32.75 $33.41 $34.08 agreement. 11 $31.64 $33.22 $33.55 $33.89 $34.57 $35.26 12 $32.77 $34.41 $34.75 $35.10 $35.80 $36.52 13 $33.27 $34.93 $35.28 $35.64 $36.35 $37.08 14 $33.73 $36.05 $36.41 $36.77 $37.51 $38.26 15 $35.79 $37.58 $37.96 $38.33 $39.10 $39.88 16 $36.29 $38.08 $38.46 $38.83 $39.60 $40.38 17 $36.79 $38.58 $38.96 $39.33 $40.10 $40.88 18 $37.29 $39.08 $39.46 $39.83 $40.60 $41.38 19 $37.79 $39.58 $39.96 $40.33 $41.10 $41.88 20 $38.29 $40.08 $40.46 $40.83 $41.60 $42.38 6 Teamsters Local 135 Airline Division 2. Wage rates Headcount by Years of Service 6-12 MOS, 13% 2nd Yr, 4% 20+ Yrs, 1% 0-6 MOS, 8% 19th Yr, 1% 3rd Yr, 12% 18th Yr, 1% 17th Yr, 1% 94% of flight attendants 16th Yr, 2% will receive two wage 4th Yr, 6% increases each of the five 15th Yr, 3% years of the agreement. 14th Yr, 5% 5th Yr, 6% 13th Yr, 5% 6th Yr, 7% 7th Yr, 6% 12th Yr, 4% 11th Yr, 3% 10th Yr, 3% 9th Yr, 3% 8th Yr, 4% 7 Teamsters Local 135 Airline Division 2. Wage rates Total hourly wage improvements over the life of the contract: Current Current DOS+4 Five-Year Five-Year YOS Rate Rate $ Increase % Increase 0-6 MOS $18.20 $30.12 $11.92 66% 6-12 MOS $19.33 $30.12 $10.79 56% How to read the table: 2 $21.32 $31.70 $10.38 49% 3 $22.85 $32.17 $9.32 41% • Locate your Current YOS (years of 4 $24.24 $33.12 $8.88 37% service), or your Current Rate, in the 5 $25.66 $34.08 $8.42 33% left two columns. 6 $27.03 $35.26 $8.23 30% • Across, the DOS+4 Rate column will 7 $28.45 $36.52 $8.07 28% be your pay rate at the end of the 8 $28.87 $37.08 $8.21 28% 9 $29.72 $38.26 $8.54 29% agreement, which includes all 10 $30.58 $39.88 $9.30 30% contract and step increases. 11 $31.64 $40.38 $8.74 28% • The right two columns, Five-Year $/% 12 $32.77 $40.88 $8.11 25% Increase, is the increase in your 13 $33.27 $41.38 $8.11 24% hourly rate over the five-year 14 $33.73 $41.88 $8.15 24% agreement. 15 $35.79 $42.38 $6.59 18% 16 $36.29 $42.38 $6.09 17% 17 $36.79 $42.38 $5.59 15% 18 $37.29 $42.38 $5.09 14% 19 $37.79 $42.38 $4.59 12% 20+ $38.29 $42.38 $4.09 11% 8 Teamsters Local 135 Airline Division 2. Wage rates Premium Pay: • Flight attendants who work more than 87 block hours in a month will be paid 125% of her regular hourly rate for each additional block hour worked. • Using historic data from the company, our analysis shows that in a given month, more than 20% of flight attendants would’ve been affected by this new provision. 9 Teamsters Local 135 Airline Division 2. Wage rates Regional Flight Attendants Monthly Guarantee Comparison Republic (Current) Republic (2019 TA DOS) Republic (2019 TA DOS+4) Industry Average* $3,500 $3,000 $2,500 $2,000 Monthly Compensation Monthly $1,500 $1,000 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Mos Years of Service * Carriers included in Industry Average: Air Wisconsin, CommutAir, Compass, Endeavor, Envoy, Horizon, Mesa, PSA, Silver, 10 SkyWest, and Trans States. Teamsters Local 135 Airline Division 2.