FAA Tries To Lure Union With New Pay Hike Offer

AVIATION WEEK: FAA Tries To Lure Union With New Pay Hike Offer

Jan 3, 2008
By Adrian Schofield/Aviation Daily

FAA is offering a new pay proposal to its controllers in an attempt to resolve a long-running contract dispute, but it appears unlikely that the controllers' union will accept the deal.

According to a memo sent by FAA to its managers, the agency submitted its "second settlement proposal" to the National Air Traffic Controllers Association in the last week of December. The memo was supplied to The DAILY by former NATCA President John Carr. It describes the offer as including "several pay adjustments" as well as "additional projects that will further benefit the work force."

An FAA spokeswoman confirmed that a new proposal was sent to NATCA. She noted that the agency "has been in discussions with the union about a settlement since last spring, and the latest offer is part of this process." NATCA, meanwhile, said it is still considering the details of the proposal.

FAA imposed a contract on its controllers in 2006 after reaching impasse in negotiations. NATCA has refused to recognize this contract, and Democratic lawmakers have stepped in to try to force FAA to reopen contract negotiations. The FAA reauthorization bill includes a provision that would force the parties back to the table, but this is one of the aspects of the bill that would likely be unacceptable to the White House.

NATCA contends the imposed contract is encouraging experienced controllers to retire as soon as they are eligible, because their base pay is effectively capped. NATCA yesterday sent a letter to U.S. Transportation Secretary Mary Peters warning her that thousands of controllers have been waiting until the first week of January to file retirement papers.

The new FAA proposal includes partial base pay increases for controllers whose pay is above the pay band maximum -- a category that covers almost all existing controllers. Pay for instructors and trainee controllers would also be raised, according to the FAA memo.

Another NATCA letter obtained by The DAILY from a separate source tells members that FAA is proposing a 1% increase in base pay for all controllers over the imposed pay band maximum, effective in March. A 2% increase would be introduced in January 2009, and another 1% in January 2010. For those eligible to retire, there would be an additional 1% base pay increase in 2008, 2009 and 2010.

Pay rates for new hires and developmental controllers would be lifted by 5% -- although NATCA notes this still means they will be paid 25% less than before the new contract was imposed.

While stressing that union leadership has not yet decided a formal response, the NATCA letter was critical of the latest offer, which it says is worse than an earlier offer submitted six months ago. According to NATCA, FAA is "unwilling to address the real problem" of the lack of a ratified contract and should return to the negotiating table.

NATCA says the timing of the offer is significant. FAA has given NATCA a deadline of March 31 to accept the proposal, which coincides with the latest extension to the FAA reauthorization bill. FAA wants Congress to see it is willing to work with the union, NATCA believes. This might encourage lawmakers not to use the bill to force the parties back to the negotiating table, and it could also build congressional support for the confirmation of FAA Administrator nominee Robert Sturgell.