AMFA National - Aircraft Mechanics Fraternal Association

In accordance with the terms outlined in Article 23, Wage Rules, AMFA and Alaska Airlines met to discuss the annual pay scale adjustment on October 12th and 13th, 2006 at the Gold Coast Center in SeaTac, Washington.

Article 23 states in part:

• “R. The Company’s pay philosophy is to pay all employees market based wages and desires to be consistent with this philosophy for all employees. In a mutual desire to confirm our commitment, the Company and AMFA agree to open the contract on an annual basis to review the mechanics relative position both within the Company and the Market for a period of ten (10) days (or less).” (Emphasis added)

The contract goes on to say that the annual increase will not be less than one and one-half percent above the current year’s rates.

When we analyze the “Market,” as defined in the contract, we realize that our relative position among technicians is above the midpoint. In fact when we measure the “all in rate” including the 1 1/2% October 17th raise we would be in the number four position of the “Comparator Carriers.”

However, when comparing our relative position to the other labor groups “within the Company” we fall short. The average relative position for all other Alaska Airlines labor groups is the third position. One labor group is at the top when compared to their peers, some come in second, some in third and two at the number four position.

As previously stated, the average relative position for all other labor groups “within the Company” is third.

We are encouraged to report that the Company recognizes the contributions our workgroup has provided over the past years. Especially, when other labor groups on the property were going through difficult contract negotiations our technicians were called upon to go “above and beyond” the call of duty and rise to the challenge.

It is also important to note, that the Company met the terms of their contractual promise to keep our workgroup’s relative position “within the Company” consistent with the overall Alaska Airlines average of third position.

To meet this obligation the Company is going to increase all the technician base scale wage amounts by an additional 0.70 % per hour, for a total of 2.2% annual raise thus placing us in third position when ranked with our peers. This will also compound to increase the anniversary raises in 2007 & 2008. A contract supplement for Schedule A will be forthcoming.

The new rates will go into effect no later than October 17th and will be reflected on the November 3rd paycheck.

Your negotiating committee would like to acknowledge Alaska Airlines for recognizing the value of the technicians where it really counts, in wages. And, to recognize the AMFA membership as you continue to show your professionalism and commitment each day.

If you have any questions please contact your Airline Representative and attend the next monthly membership meeting for a question and answer period. AMFA now represents two of the top-threepaid technician groups in the country.