LETTER 15
Subject: Preferential Bidding System
Reference: Section 6 - Scheduling
LETTER OF AGREEMENT
between
NORTHWEST AIRLINES, INC.
and
FLIGHT ATTENDANTS
in the service of
NORTHWEST AIRLINES, INC.
as represented by
ASSOCIATION OF FLIGHT ATTENDANTS - CWA, AFL-CIO
THIS AGREEMENT is entered into by and between Northwest Airlines, Inc. a Minnesota
Corporation (the "Company") and the Flight Attendants in the service of Northwest Airlines,
Inc. as represented by the the Association of Flight Attendants - CWA, AFL-CIO
(the "Union").
PREFERENTIAL BIDDING SYSTEM
The undersigned parties agree as follows:
The Company and Union agree to implement a new Preferential Bidding System (PBS),
subject to the following:
1. The new PBS bidding system shall provide for the Flight Attendants to
construct their own monthly bid lines based on their seniority, qualifications, and
individual preferences, provided that:
a. All patterns posted in the base monthly bid analysis shall be awarded or
assigned.
b. The specific average line values, as specified in Section 5.D. of the Agreement
are achieved.
c. A reserve distribution that meets FAR requirements and provides the Company
with an acceptable reserve distribution is created.
2. The Company and Union shall work towards the development and an
implementation process of the new Preferential Bid System, with the
understanding that:
a. The new PBS system will utilize an "optimization" approach, as compared to the
"linear" approach utilized by the SLIC bid system currently in use. This
approach for line construction, in conjunction with other "restrictions" on the
program, (e.g. Purser bidding, team bidding, assignment of all flying, average
line values) may assign a pattern(s) that may be in contradiction to the bid of a
Flight Attendant while attempting to maintain the highest level of overall
satisfaction based on the Flight Attendant's bid.
b. The current SLIC computer program shall be maintained while implementing a new
PBS system.
c. The Union may designate two (2) representatives and the Company may
designate no more than three (3) representatives to serve on the
Implementation Team. The Company and the Union shall have an equal voice
in matters relating to the development and implementation of the new bid system.
d. A parallel test of the PBS bid system shall be conducted for two (2)
months immediately prior to "live" implementation (February and
March 2008, based on an April 2008 implementation).
e. "Live" implementation shall be planned for April 2008 flying, at the
earliest, subject to programming of the new bid system.
f. Current contractual language specific to the operation of the SLIC program may
need to be amended to reflect the operation of the new PBS system. Changes
may include, but are not limited to:
(1) The publication of monthly bid parameters;
(2) Specific bid deadlines and resolution periods;
(3) Bidding procedures;
(4) The processing of individual qualifications;
(5) The need for a natural bias;
(6) "Block" bidding for Reserves;
(7) Priority lines and Short lines (Pattern Reserves);
(8) Daily schedule adjustments during the running of PBS;
(9) The elimination of Critical Bid and Partial lines.
g. An interim "bidding interface" may be required. However, as funding and
resources allow, continuing improvements to the new “bidding interface” shall be
developed. Upon consultation with the Union, the interim interface that most
readily provides for an April 2008 implementation shall be used.
h. For some period of time following implementation, the program may be run by the
PBS vendor.
i. A PBS Support Team shall be established in order to provide oversight of the new
system, once it is operational. The Team shall be a coordinated joint effort
comprised of members of the Company, the Union and Flight Attendants. The
members of this Team shall be limited to one (1) Management representative
from each base, one (1) Union representative from each base and one (1) Flight
Attendant representative from each base, plus one (1) additional Company and
Union representative.
(1) The Support Team shall be responsible for:
(a) The review of PBS statistical data;
(b) The evaluation of recommendations regarding proposed changes to PBS;
(c) Working toward continuing process of improving results in order to
optimize the bid results for Flight Attendants, while maintaining the
objectives of the Company.
(2) Flight Attendant members of the Support Team shall be selected by mutual
agreement through a joint interview process by the MEC President, or
his/her designee, and an Inflight Services Management
representative.
(3) The Company shall provide a fee waived Y1/F2 pass for Flight Attendant
members to attend Team meetings and shall also assume the cost of
hotel rooms and reasonable expenses for each Flight Attendant when
overnight accommodations are required.
j. The Company shall provide for a voluntary training program and for
implementation support for the new system. The timing and length of such training
and support shall be mutually agreed upon between the Company and the
Union, but shall be no less than six (6) months, and no more than eighteen (18)
months.
k. The PBS monthly bidding system shall be managed and operated from a
Central location under the terms and conditions of this Letter of Agreement and
other relevant sections of this Agreement. The staffing level required to operate
the PBS system shall be determined by the Company. No less than one (1)
full-time Special Assignment Flight Attendant shall be assigned to PBS Central.
l. Following the implementation and review of the operation of the PBS System, the
Company and the Union shall meet to determine the level of ongoing PBS
support at the base and system level that is needed.
m. The Company recognizes the Union as an important and integral part of the
development, testing, implementation and continued monitoring of the new
system. The Company agrees to consult with the Union on all matters related to
the Flight Attendant PBS system.
n. The Company shall provide the Union with the data and statistics it needs to
provide oversight of the new system.
Agreed to on this 18th day of June, 2007
FOR NORTHWEST AIRLINES, INC. FOR THE ASSOCIATION OF FLIGHT
ATTENDANTS - CWA, AFL-CIO
/s/ Julie Hagen Showers /s/ Patricia A. Friend
Vice President Labor Relations International President, AFA-CWA
/s/ Jay Hong
MEC President, AFA-CWA
/s/ Lovey Offerle
Negotiations Committee, AFA-CWA
/s/ James Yung
Negotiations Committee, AFA-CWA
/s/ David Barrow West
Negotiations Committee, AFA-CWA
/s/ Bruce Retrum
Negotiations Committee, AFA-CWA
/s/ Mark L. Littleton
Senior Staff Negotiator, AFA-CWA