AgentS/Reps/Planners

Our restructuring goal for the M&E Coordinator workgroup aligns with our overall employee strategy – to achieve the necessary financial savings by implementing sustainable, structural changes that will position our airline to compete and win. Like other workgroups, the M&E Coordinators were originally tasked with reducing annual employee costs by 20 percent. As of June 2, 2012, M&E Coordinators are reclassified as Support Staff. All savings target adjustments for Management and Support Staff are being evaluated.

Based on our business plan for the airline, these changes are necessary to successfully restructure and position our company for future success and growth.

All Employee Restructuring Objectives

• Reduce employee costs
• Our approach to employee savings is focused on preserving base pay rates as much as possible by increasing productivity
• Implement universal changes to active and retiree medical for current employees (effective 2013 open enrollment)
• Remove and relax restrictions on our business
• Remove structural barriers that limit flexibility and ultimately growth
• Replace pension benefit with a Defined Contribution benefit (effective Nov. 1)
• Implement new first-dollar profit sharing plan (effective Sept. 12)
  

 Overview of M&E L75 Coordinators Changes

• M&E L75 Coordinators were reclassified as Support Staff, effective June 2, 2012
• M&E L75 Coordinator positions were reclassified to Level 54 – Level 55
• The level of each employee was determined based on his/her skill set, knowledge, and proficiency within the scope, role, and responsibilities of the Coordinator position
• Employees above the maximum of the new level were reduced to the maximum for their respective level, as follows:
• Level 55 pay range will be reduced to $19.65 per hour (max of L55 range)
• Level 54 pay range will be reduced to $18.04 per hour (max of L54 range)
• As a result, employees are eligible for all Support Staff pay, work rules, benefits and privileges

 Rationale

• Changes to the M&E operation allow us to reduce our long-term cost structure while continuing to maintain competitive pay rates.