Negotiating Committee Update: Retention Bonus

Fellow Pilots,

The Negotiating Committee has received a significant number of questions regarding the timing of the Retention Bonus payout. Simply put, the Company will pay the Retention Bonus no later than October 1, 2026.

As discussions progressed with the Company during efforts to reach an Agreement in Principle (AIP), three primary issues emerged regarding payment of the Retention Bonus: First, clarification of eligibility and payment language for pilots on leaves of absence. Second, the timing of the Retention Bonus payout. Third, the dispute resolution process for potential payment inaccuracies.

Regarding eligibility clarification, the Union informed the Company that the phrase “actively employed” should include pilots on leaves of absence. After discussions with management, the Company agreed that any pilot on a paid or unpaid Leave of Absence will be considered “actively employed” for purposes of Retention Bonus eligibility and payment. Your Negotiating Committee believes this clarification was an important and meaningful protection for the pilot group.

Second, the Company informed the Union that it would pay out Retention Bonuses no later than October 1, 2026 if the forthcoming Tentative Agreement is ratified. Related, the Retention Bonus accrual would end on June 30, 2026. These terms will be included in the forthcoming Tentative Agreement that members in good standing will soon vote on.

As previously communicated, we expect the ratification process to conclude on June 30, 2026. We will provide timely notice of any changes to this anticipated ratification date. A pilot must be actively employed on the ratification date or retire from the Company due to reaching the FAA mandatory retirement age prior to ratification, in order to receive payment of the Retention Bonus.

The above-time frame provides for sufficient time for auditing, statement reconciliation, verification of calculations, and cooperative resolution of any discrepancies in Retention Bonus payout amounts. This approach provides a transparent and efficient process to help ensure each pilot receives the Retention Bonus they earned.

Third, both the Union and the Company recognized the need for a fair and efficient dispute resolution process in the event a pilot believes their payment amount is incorrect. The Union sought to establish a cooperative and efficient dispute resolution framework rather than forcing pilots to go through the traditional grievance, arbitration, and/or court process. The Company agreed.

The tentatively agreed upon process requires the Company to pay each pilot the amount calculated by the Company on or before October 1, while preserving the pilot’s right to seek additional compensation if they believe their payout amount is deficient. All challenges to payout amounts will be resolved by the agreed upon arbitrator in a single expedited arbitration proceeding, preceded by a 30-day meet-and-confer process during which the parties will attempt to resolve any and all payout disputes.

Your Negotiating Committee continues working diligently to convert the AIP language into a finalized Tentative Agreement that can be presented to the pilot group for a fair and informed vote.

Ratification of this agreement would secure long overdue improvements in pay, retirement contributions, and long-term disability protections that this pilot group has gone without for years. It would also establish an important foundation heading into future Joint Collective Bargaining negotiations. Without these improvements and protections in place beforehand, the pilot group’s leverage entering those discussions could be materially diminished