MEMORANDUM OF UNDERSTANDING

BETWEEN THE

NATIONAL AIR TRAFFIC CONTROLLERS ASSOCIATION

AND THE

FEDERAL AVIATION ADMINISTRATION

This agreement is made by and between the National Air Traffic Controllers Association ("NATCA" or "the Union") and the Federal Aviation Administration ("FAA" or "the Agency"), collectively known as "the Parties." This agreement represents the complete understanding of the Parties at the national level concerning the collective bargaining agreement (the "CBA") between the Union and the Agency covering all, or in part, the air traffic controller, NOTAM, and TMC/TMS bargaining units. The CBA incorporates three components: the Work Rules Agreement, dated September, 1998, February, 2001 and September, 2001; the Principal Memorandum of Agreement dated July 9, 1998; and the Memorandum of Understanding with Respect to Reclassification and Associated Pay Rules, dated July 8, 1998, as amended. All three components of the (CBA) apply to the controller bargaining unit. The parties further agree that, except as modified by this MOU, the July 9, 1998 Memorandum of Agreement and the July 8, 1998 Memorandum of Understanding, and all provisions contained therein, are subject to Article 106, as amended of the Collective Bargaining Agreement. Only the Work Rules component applies to the TMC\TMS and NOTAM units.

SECTION 1. The Parties agree that Pay Rules 40, 42, 43, 44, 47, 51, 52 and the NAR MOU are amended as attached. All changes to these pay rules are effective with the signing of this agreement.  (my note...see intent agreement that makes pay rule 51 effective prospectively...."the provisions on setting pay for training failures who do not check out at a higher level facility are applicable to employees selected for a position at a higher level facility on or after the signing date of the extension agreement."

SECTION 2. The Parties agree that Pay Rules 46 and 59 are deleted. All changes to these pay rules are prospective in impact and are effective with the signing of this agreement.

SECTION 3. The Parties have agreed to amend certain MOUs as attached.

SECTION 4. The Parties have agreed to the attached SCI process.

SECTION 5. The Parties’ national staffing agreement contained in the Principal Memorandum of Agreement is not covered by this MOU and shall not be extended by this MOU. Any change to allocations of bargaining unit positions at the National, Regional or local level will require the parties at the corresponding level to renegotiate the distribution of bargaining unit positions in accordance with article 94 of the collective bargaining agreement.

SECTION 6. This agreement does not constitute a waiver of any right guaranteed by law, rule, regulation or contract on behalf of either party.

SECTION 7: The parties agree that Article 17 duties are part of the job of an air traffic controller. A facility plan must include a method for management assigning work in cases where no interest is indicated.

Section 8: Except as modified by this MOU, The parties agree to amend Article 106, Section 1 to extend the fixed term of the CBA to September 15, 2005 for the air traffic controller bargaining unit.

For the TMC\TMS and NOTAM bargaining units, the fixed term of the Work Rules Agreement only is extended as described above. Within the next 90 days the parties will meet to negotiate Pay Rules for the TMC\TMS bargaining units.

For the Union:                                      For the Agency:

[original signed]                                   [original signed]

______________________________    _________________________

John S. Carr                                         Marion Blakey

President                                              Administrator

National Air Traffic Controllers               Federal Aviation Administration  

Association 

This agreement is made and entered into by the National Air Traffic Controllers Association (NATCA) and the Federal Aviation Administration (Agency) in the matters of controller pay definitions, applications, and policies, in association with the ATC Facility Reclassification project.

This Memorandum of Understanding shall be read in conjunction with the Principal Memorandum of Agreement dated July 9, 1998.

The parties agree that any new pay/reclassification issues that surface subsequent to the signing of this agreement will be mutually addressed and resolved.

This agreement between the National Air traffic Controllers’ Association and the Federal Aviation Administration is approved this 8th day of July, 1998.

 Original Signed

--------------------------------------------------

Raymond B. Thoman

Program Director, Labor and Employee Relations

Federal Aviation Administration

 Original Signed

--------------------------------------------------

Mike McNally

President

National Air traffic Controllers’ Association, AFL-CIO

1. Organizational Success Increase (OSI). The amount of OSI shall be the same as the rest of the Agency OR the government-wide general increase and 50% of the step pool, whichever is greater. See rule 37 for distribution of payment.

 

2. Superior Contribution Increase (SCI). The amount of the SCI will be 50% of the step pool plus the QSI Pool OR the same percentage as that identified for the rest of the Agency, whichever is greater. See rule 38 for distribution of payment.

3. Step Pool. Currently, the annual increase in the average controller pay rate resulting from step increases is 1.6%. However, since the average step increase is in effect for only six months during the fiscal year for which it becomes effective, the cost increase is 0.8% in that fiscal year. The step pool will be sufficient to provide a 1.6% increase in the average pay rate for all members of the bargaining unit.

One-half of the 1.6% goes towards the OSI (.8%). The other one-half of the 1.6% goes towards the SCI (.8%). The step pool is 1.6% of the NATCA bargaining unit PC&B. This money is from the old step pool (money the Agency used to spend on steps) and not part of the 200 million. It is used to fund the 1.6% increase in June.

 

4. Pay Elements. All elements of the OSI and the SCI are annual increases in addition to the $200 million settlement addressed in the NATCA /FAA contractual MOU.

 

5. Quality Step Increase Pool. The specific dollar amount (pool) that is reserved annually by the Agency for administration to the bargaining unit in recognition of specific events. This specific funding level for the new pay system will be determined by mutual agreement of the parties within 90 days of this agreement. This pool represents the second component of the SCI. The amount of money in this pool is negligible.

 

6. January Pay Increase. The OSI for the NATCA bargaining unit minus 0.8% (50% of the step pool) will be administered annually during the first full pay period in January of each fiscal year. See rule 37 for distribution of payment.

 

7. June Pay Increase. The SCI plus the remaining 0.8% of the OSI (50% of the step pool) will be administered annually. This increase will be effective with pay period 99-17 which begins August 1. 1999; effective with pay period 00-14 which begins June 18, 2000; and effective the beginning of pay period 01-14 of 2001 forward.

See rule 38 for distribution of payment. This payment was originally going to be paid in April of each year. The original grades resulted in us being slightly over the agreed upon 200 million. By mutually changing the effective date of the 1.6% increase we were able to reduce the cost inside the 200 million dollar limit without having to change pay bands. See OSI/SCI MOU dated April 22, 1999 here.

 

8. Annual Adjustment of Pay Bands. The pay bands established for each ATC facility level will be increased by the January Pay Increase. Additionally, the pay bands will be adjusted by the deferred 0.8% for bargaining unit employees as described in paragraph 7 above.  The resulting base pay will be used in calculating all differentials, premiums, retirement and appropriate pay benefits.  See rule 33 for Pay Retention Rules. The pay bands are going to change twice each year, once in January and once in June. Note: Until completion of transition, the pay bands will also change with the October changes in pay. (See paragraph #35)

 

9. COLA Pay/Post Differential. Eligible bargaining unit members will continue to receive COLA Pay/Post Differential as defined by statute and as currently administered outside the contiguous 48 states.

 

10. Locality Pay. Eligible bargaining unit members will continue to receive locality pay and will have their locality pay increased annually consistent with government wide changes (Title 5) coincidental with the January pay increase.

This is in addition to the OSI increase.

 

11. Cost of Living Differential (COLD) is defined as a pay allowance that will be granted to certain members of the bargaining unit who are employed in recognized, independently defined high cost of living areas. The COLD pay element may be administered bi-weekly, or quarterly or annually in lump sum. Cold will be a percentage of base pay and will rise with increases in base pay.

 

12. Premium Pay. Bargaining unit members will continue to receive all Premium Pay percentages and differentials as are currently administered in connection with holidays, night differential, Sundays, COLA, Post Differentials, operational currency, on-the-job training, meal breaks and any other premiums/differentials in accordance with applicable laws, regulations, or the parties collective bargaining agreement.

 

13. Overtime Pay. Bargaining unit members will continue to receive Overtime Pay as defined by the negotiated agreement.

 

14. Transition Pay Basis is defined as the employee’s current base pay plus applicable locality pay plus ATRA plus IIP/Demonstration Pay (if applicable).

 

15. Target Base Pay is defined as the pay figure used to determine the dollar amount of increase to base pay an employee will receive during the conversion from the FG pay schedule to the ATC pay system. Pay retention rules will apply from the time of initial conversion for those employees whose target base pay exceeds the maximum of the ATC level pay band to which assigned.

 

16. Base Pay is defined as the employee’s ATC pay rate including applicable locality adjustment.

 

17. The Classification Index (CI) is defined as the numerical index derived from the classification formula that is used to determine the ATC facility level.

 

18. The ATC Classification Level is determined by the classification index and ATC level break points which establish associated pay bands within which individual facilities are assigned. Field ATC facility levels range from ATC-3 through ATC-12, with additional expansion levels available at ATC-13 and ATC-14.

Specific sets of break points are established by the joint NATCA/FAA Classification Work Group for each of the eight categories of facilities. See the break points here.

 

19. Certified Professional Controller (CPC). This title applies exclusively to a civilian Air Traffic Control Specialist who is or has been facility certified in the terminal/en route air traffic control option in the Air Traffic Service, and who is currently engaged exclusively in the separation and control of live air traffic in terminal/en route facilities in the Air Traffic Service. Once facility certified in the terminal/en route option within the Air Traffic Service, a controller retains the CPC title as long as he/she remains in or regains this ATC career status.

This means that former FPL/CPC in a terminal/en route option in the Air Traffic Service regains their FPL/CPC status immediately upon return to the bargaining unit. Facility certification includes area certifications, if appropriate.

 

20. Bargaining Unit. Certified Professional Controllers are employees of the Air Traffic Service whose primary duty is the separation and control of live air traffic in terminal and enroute facilities. This includes all Developmental Controllers upon reporting to terminal/enroute facilities either upon successful completion of the FAA Academy or upon direct report after entry to the Air Traffic Service.

 

21. Developmental Air Traffic Controller. An air traffic controller in training at a field facility who has never been facility certified in the terminal/en route option in an air traffic control facility in the Air Traffic Service and therefore has never attained the Certified Professional Controller (CPC) level.

 

22. A New Entrant is an individual who has never been employed by the Air Traffic Service as an Air Traffic Control Specialist in the terminal/en route option.

 

23. A New Hire is an individual who has never held an appointment in the Federal government.

 

24. Position Description is a document describing the duties and responsibilities of the CPC and Developmental Controller/Trainee within a specific facility category. One generic CPC position description will be assigned to each category of air traffic control facility (8), and a separate position description for all Developmental Controllers (1) and New Hires/New Entrants (1). There are a total of 10 position descriptions for the bargaining unit air traffic control workforce.

 

25. A Re-entrant into the Terminal/En Route Option:

1. CPC — an individual who is not currently employed as an Air Traffic Controller by the Air Traffic Service but was previously an FPL/CPC Air Traffic Controller in the in the Air Traffic Service terminal/en route option.
2. Developmental Air traffic Controller — an individual who is not currently employed as an Air Traffic Controller by the Air Traffic Service, but was previously a developmental controller or a trainee in the Air Traffic Service, including those at the FAA Academy, in the terminal/en route option.

26. MSS Positions: Manager, Supervisor and Staff (MSS) level are being established for various categories of positions. These levels are referred to by an identifier of MSS-X. MSS-1 includes facility staff specialists and MSS-2 includes facility operational supervisors.

 

27. A Promotion is defined as:

1. movement from Academy completion into the first developmental stage.
2. movement from the final developmental stage into the CPC position.
3. movement from the CPC position to a MSS-2 or higher position.

Note - movement by a CPC to a higher level ATC facility, or by a CPC to a MSS-1 (facility) staff position is NOT considered a promotion but rather a transfer. See Transfer.

"27a" means completion of the FAA Academy is the promotion. Movement through the developmental stages is not a promotion.

 

28. A Temporary Promotion is defined as movement from a CPC to MSS-2 or higher position for a temporary period of time.

 

29. A Demotion (not applicable within/from CPC career level) is defined as movement from a MSS-2 position or higher into a CPC position.

Note - movement to a lower level ATC facility, or out of a MSS-1 (facility) staff position to a CPC position is NOT considered a demotion: it is a transfer. See Transfer.

 

30. A Transfer is defined as any movement of a CPC or Developmental Air Traffic Controller in the terminal/en route option to another CPC or Developmental Controller position at the same, lower or higher ATC facility level. This includes bids, swaps and internal placements. Movement between a CPC position and a MSS-1 staff position is a transfer, both inter and intra facility. There are five kinds of transfers:

1. transfer to a higher level facility.
2. voluntary transfer to a lower level facility.
3. voluntary transfer to the same level facility.
4. involuntary transfer to a lower level facility for performance.
5. either voluntary or involuntary transfer to MSS-1 facility staff position.

31. Unsuccessful Training. The inability to successfully conclude an air traffic control training program in either a terminal or enroute facility in the Air Traffic Service. There are three (3) scenarios applicable to unsuccessful training:

1. Developmental — initial certification attempt(s) at a terminal/enroute facility(s) with the purpose of attaining Certified Professional Controller status.
2. CPC re-certification — the attempt by a Certified Professional Controller at a terminal/enroute facility to regain fully certified status due to a certification loss at his/her present facility. (e.g. medical disqualification, loss of currency, or performance).
3. CPC certification — subsequent certification by a Certified Professional Controller upon reporting to a new terminal/enroute facility.

32. Developmental Air Traffic Controller Training Stages. Each terminal and enroute air traffic control facility shall contain from two to four training stages for Developmental Air Traffic Controllers dependent on the complexity and number of operating positions within the facility. These Training Stages also determine developmental pay setting. See Prib 21A here for a complete list of Developmental Training Requirements.  There are two files...one is an Excel Table and the other is a word document.  Additionally, the FG Grade levels have been replaced by ATC Level (A-N) and the second letter you'll notice is the Career Level (A-L).  To see a Table that shows you what letters mean what click here.

 

33. Pay Retention applies to eligible employees whose base pay exceeds the applicable pay band. When an employee is in retained pay status, he/she shall receive ½ of the OSI increase for which eligible until such time that the employee’s base pay falls within the facility level pay band. The retained base pay shall be the basis for calculating all differentials, retirement and pay benefits. An employee in retained pay status shall receive any SCI increase for which he/she is eligible in a lump sum payment.

 

34. ATC Facility Level Retention. If an employee is assigned to a facility that is reclassified to a lower ATC level, base pay will be retained at the higher ATC level (including all OSI and SCI increases for which the employee is eligible) for two (2) years, beginning the first full pay period after the action is taken.

After two (2) years the employee’s current base pay will be placed in the lower ATC facility level pay band. If the employee’s current base pay exceeds the top of the new level pay band, the employee shall be in pay retention status. If during the two (2) year period the facility is reclassified to its original ATC facility level, there will be no change in the employee’s base pay.

Note - a voluntary transfer out of the facility during the two (2) year period negates ATC Facility Level Retention. Eligibility for ATC Facility Level Retention is based solely on the employee's position of record at the time of the reclassification of the facility.

 

35. CPC Conversion from the FG Pay Schedules to the ATC Pay Levels. Effective October 1, 1998, the following steps will be taken to transition bargaining unit employees to the ATC pay system. It is understood that the pay targets established under these rules will not be changed unless required to accommodate distribution of the $200 million dollars as specified in paragraph 5 of the Principal MOA.

Step 1: Establish the percentage difference between each employee’s current FG grade and step above the current FG grade step1 for their assigned facility (including locality).

Step 2: Multiply the minimum base pay of the assigned ATC level pay band by that percentage. Add that figure to the minimum of the pay band to establish each employees target base pay. If the employee’s target base pay does not exceed their current base pay by a minimum of 9.1%, the employee’s target base pay will be adjusted upward to meet this minimum.  See the Target Pay Bands here.  There are two files one is the excel sheet of target pay numbers Appendix One and the other is the Appendix One MOU

Each employee’s target base pay will be transitioned in three phases to reach the target base pay.

Year 1: Determine the first transitional base pay for each employee by:

1. Add 4.1% (ATRA) to each employees base pay (FG grade, step plus locality);
2. Add any applicable IIP and/or Pay Demonstration entitlement; then,
3. Subtract the transition base pay from the target base pay to determine the amount of increase in base pay to be apportioned over the three years of the transition. Determine the amount to be apportioned in each year by the following approximate percentages: Year 1=32.094%, Year 2=36.785%, Year 3=31.121% (totaling 100%). Add the year one increment to the transition pay base to determine the year one base pay; and,
4. Add (A), (B) and (C) to determine the first transitional base pay, retroactive to October 1, 1998.

Year 2: Add the identified dollar amount (Year 2(C)) to employee’s base pay in the first full pay period of fiscal year 2000.

Year 3: Add the identified dollar amount (Year 3(C)) to employee’s base pay in the first full pay period of fiscal year 2001.

Appendix 1 of this MOU contains the pay table for converting those at the FPL Grade, as of October 1, 1998 to the new ATC pay system.

Note: The dollar amount of increase determined by year 1 (step C) above is a fixed dollar amount that will not change even if the employee transfers to a higher, lower or same ATC level facility during the transition to the target base pay period (3 years).

This section was amended to provide for a pay cap of 40% above band for those converted that were already above the pay band. They could exceed the ATC pay band only to the extent necessary to ensure the minimum 9.1% increase.  See the 40% Cap Conversion MOU here.

Note: Facilities currently classified as Level 1, and that are scheduled to be contracted out by end of fiscal year 1998, will not be classified within the new ATC levels. Those facilities will be treated in accordance with current pay policies with the exception that their base pay will be increased by 5% in the first year.

This section was amended to provide the 4.1% ATRA roll-in for the level one towers.  See the 4.1% ATRA Rollin MOU here.  This resulted in the Level One towers that did not transition to the ATC system receiving 9.1% retroactive to October 1, 1998.  They also remained in the FG Step System.

 

36. Developmental Air Traffic Controllers Conversion from the FG Pay schedules to the ATC Pay Levels. Upon transition from the FG pay system to the new ATC pay system, Developmental Air Traffic Controllers will receive the same percentage increase received by the step one FPL/CPC in the facility upon conversion. This figure will not exceed the total dollar increase received by the step one FPL/CPC. At this point the Developmental Air Traffic Controllers also merge into the defined facility training (stage) program and receive subsequent pay increases according to completion of these training stages.

To determine the developmental’s target base pay:

1. Determine percentage increase for the FPL/CPC Step 1 by subtracting the transitional base pay from the target base pay to get the dollar increase. Then divide the dollar increase by the transitional base pay to get the percentage increase.
2. Multiply this percentage by the developmental’s transitional base pay to determine the target base pay
3. Follow Step 2 in paragraph #35

Originally everyone not at the FPL grade was going to Transition as developmentals. However, after October 1, 1998 the new rules treat Re-entrants and CPC transfers differently (Re-entrants go to band min and CPC Transfers get half on the go) NATCA attempted to get the same treatment for those Re-entrants and CPC transfers in place as of October 1, 1998. The Agency would not move to those rules without charging the additional funds to the $200 million. Since we already moved the April pay increase to June it would have required lowering all the pay bands to spend the 20 plus million the Agency was trying to get. We felt this was career progression and not part of the 200 million. The result of the negotiations is the Transition Agreement for CPCs in Training and Re-entrants both that were not at the FPL grade as of October 1, 1998. See the April 22, 1999 Transition Agreement MOU.

 

37. OSI Distribution. Bargaining unit employees will receive a portion of the annual OSI increase to base pay effective the first full pay period in January of each fiscal year unless negotiated otherwise. All ATC bargaining unit employees base pay shall be adjusted upward by the greater amount of the following:

1. the Agency OSI (minus 0.8% to be administered in June of the same fiscal year); OR,
2. the General Increase (plus 0.8% to be administered in June of the same fiscal year).

As you can see if we look at the 2001 OSI. The Agency declared 2.7% plus 1% for a total of 3.7% OSI. So the calculations in A above for 2001 would be 3.7% minus .8 deferred for a total January OSI of 2.9%.

The General Increase declared was 2.7%. So the calculations in B above for 2001 would be 2.7% plus .8% deferred for a total January OSI of 2.7%. Since we get the higher of the two we used A for a 2001 OSI of 2.9% plus applicable changes in locality. See more on the OSI/SCI here.

All increases to base pay resultant from an OSI increase will be used in calculating all differentials, premiums, retirement and appropriate pay benefits.

 

38. SCI Distribution.  Amended by 2003 Contact Extension MOU.  See the old language here. 

SUPERIOR CONTRIBUTION INCREASE (SCI) PROGRAM FOR THE NATIONAL AIR TRAFFIC CONTROLLERS ASSOCIATION  

Eligibility to Receive SCI

Eligibility to receive an SCI under this proposal requires that the bargaining unit member meet or exceed the following criteria during the rating period: