Updated LTD Information

We would like to provide an important update regarding the Company-paid Long-Term Disability benefit contained in the Tentative Agreement.

On Thursday afternoon, the Company informed the Union that Mercer has received at least two quotes through the LTD Request for Proposal (RFP) process. An RFP is the formal process through which insurers submit proposed coverage terms and pricing.

The TA requires the Company to implement the LTD plan by January 1, 2027, unless “no proposals are received…” The receipt of multiple quotes substantially addresses that concern and demonstrates that the RFP process is producing options for implementation. Importantly, the cost to the Company of the LTD benefit is not a basis upon which the Company may delay implementation. The relevant question under the TA is whether proposals are received, not whether the Company is satisfied with their cost.

Simply put, the possibility that LTD would not be implemented because no insurer was willing to provide coverage is now minimal. Pilots should have substantial confidence that the new Company-paid LTD benefit will be implemented by January 1, 2027, as required by the Tentative Agreement.