Dear Sisters and Brothers:
Alaska Airlines is offering all Unionized groups at Hawaiian Airlines the opportunity to participate in its current Incentive Compensation plan. Each Union group will decide on its own whether to adopt the plan Alaska is offering or remain in Hawaiian’s plan (currently in each group’s respective Collective Bargaining Agreement).
IAM members at Hawaiian will have a choice to either adopt or reject the offering by participating in a vote at the end of January. Voting will take place electronically between January 27 and 30, and more information on the voting process will be posted and emailed to the membership.
Over the last seven years, the Alaska incentive plan has paid out an average of 8.8% of earnings compared to an average 3.0% payout from the current Hawaiian incentive plan. The major points of the plan include:
The Performance Bonus Plan (PBP) targets 5% of eligible earnings based on performance and profit. The plan targets vary each year. For example, the targets for 2025 are broken down as follows:
- 20% will be based on safety topics
- 10% on Guest Experiences
- 10% Sustainability
- Up to 60% Profit multiplier will be applied depending on if/where Alaska finishes in the top 3 pre-tax margin vs its competitors.
If ratified, the Alaska plan will replace the current contractual language in LOAs 12 and 13 of the IAM CBAs.
In addition to the plan above, an Ops Performance Rewards (OPR) program unique to each separate work group will also be offered. It is awarded on a quarterly basis (if the group qualifies) with a maximum yearly payout not to exceed $1,800.
IAM representatives will conduct roadshows at Hawaiian Airlines stations from January 12 through January 24 to answer questions and explain the Alaska plan in greater detail. The schedule will be posted on the atd142.org website once the dates/times are confirmed.
If you have any questions or concerns, please don’t hesitate to contact your Shop Stewards of General Chair. Thank you for your continued support and solidarity.
Sincerely and fraternally,
John M. Coveny, Jr.
President/Directing General Chair
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