AMFA/Southwest Airlines AMT Contract Negotiations Update

Update # 31 June 9, 2015

The Negotiating Committee is providing this update to the AMFA membership at Southwest Airlines. This report is the only official authorized source of negotiating communications by the Committee.

The parties were scheduled to meet on Tuesday, June 2, 2015, to resume Aircraft Maintenance Technician (AMT) negotiations; however, the Company communicated that it did not have any new positions or proposals for Facilities Maintenance Technician (FMT) negotiations scheduled for June 3 and 4. Upon receiving this notification, our negotiation committee requested a schedule change for the week to include AMT and FMT negotiation final preparation on June 2, AMT negotiations on June 3, and FMT negotiations on June 4.

As we have consistently explained to the membership, as well as to the Company, our comprehensive package proposed in April was a package offer that we felt was a reasonable proposal, which provided the Company relief on a number of the items it contends it must obtain while providing additional compensation and preserving job security language for our membership. In the subsequent AMT negotiating session, the Company informed us that it had rejected our comprehensive proposal and preceded to propose its own comprehensive proposal. As reported, after analyzing the Company’s comprehensive package it was clear that the Company had not only reverted to most of their opening positions from 2012, but also added proposed Article 2: Scope language changes that would devastate the current protections in place for our work and potentially our jobs. The Committee relayed the sentiment of the membership that the Company’s comprehensive proposal was, to put it bluntly, "a pig with lipstick."

As we have also consistently explained to the membership, as well as to the Company, if their committee is unwilling to entertain our comprehensive package, we will be reverting back to our last proposals for each of the articles that have been opened. Accordingly, at the June 3 session we went over each of the existing open articles and notified the Company of the date in which we presented our last proposal, thereby re-establishing our current position for each. We also ensured the Company was still in agreement with our records as to the 13 articles that have been tentatively agreed (TA) to.

In addition to the above, we presented our first proposals for Article 2: Scope, Article 14: Wage Rules - Shift Premiums - Longevity, Article 15: Wage Rates, Article 29: Duration of Agreement, Letter of Agreement (LOA) 1 and LOA 2. Our proposals for Article 2, LOA 1, and LOA 2 were to remain current language. In Article 14 we proposed a shift premium raise to $1.56 per hour for the Graveyard and Relief shifts, a raise to $2.25 per hour after 15 years of longevity with the Company, and a skill premium raise to $1.00 per hour. In Article 15 we proposed Base Rates of Pay increase of 8.5% in 2015, a 5% increase for each year of 2016 through 2020, and a Signing Bonus equal to 10.5% of each

individual’s earned wages for years 2013 and 2014.We also proposed a License Premium per hour increase of up to $3.50 per license. For Article 29 we proposed an amendable date of August 16, 2020.

Prior to the conclusion of the June 3 session, your Committee engaged in a pointed discussion with the Company. We advised them that our members were not going to accept a concessionary agreement of any type, and that all of the Company’s must-have language changes were economically driven and designed to limit our members’ ability to earn a living. At the same time, the Company, which is recording record profits quarter after quarter, has not even offered you an increase in wages that would track the cost of living. Finally, we informed the Company of our growing frustration with the absence of the actual management operators at the negotiating table.

With the conclusion on the June 3 AMT negotiation session we have presented proposals for all 29 articles and LOAs 1 and 2. The next session is scheduled for Thursday and Friday, June 25 and 26. We would like to thank those who took their time to observe these negotiations. If you have any questions, don’t hesitate to contact your representative. We appreciate your support.

Sincerely,

Your Negotiating Committee.

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