FACT OF THE DAY #5 - Today's management podcast urges our Flight Attendants to get the facts about our 401 K Retirement Plan. Well, we are going to give him what he asked for.
The fact is that Section 18 Benefits paragraph 3 states, The Company shall match up to five (5%) percent of the Flight Attendant’s salary deferral on a monthly basis (for the 401K retirement investment plan).
Despite this language, Management stopped paying ANY 401K match in December 2005. While our Flight Attendant group faithfully put away money for retirement, the company paid $0.
The Union filed a grievance against management's actions and we weren't successful before an arbitrator. But, eventually management agreed to match a measly 50 percent for every 6 percent that a flight attendant contributed to his or her 401K.
In the company podcast today, we were told that we should be grateful because management wants to "double" what we have for 401k. So, I guess this means management thinks we should be grateful for getting 100% of 6 percent.
The reality is that but for the company's stingy actions, in this round of negotiations we would have been getting at 5% for over 11 years.
Now, the company wants to earn points for upping the 401k match only one percent while still taking away our health care.
Don't be fooled!! It's not a "gift" if you were entitled to a 5% match all these years. Just another way management is trying to undervalue the Flight Attendant group.
Oh, by the way, the pilots get 100% match of 9% for their 401k...