Questions and Answers:The House FAA Reauthorization Bill and Proposed FAA Reform

As the House FAA Reauthorization bill – the 21st Century Aviation, Innovation, Reform, and Reauthorization (AIRR) Act - moves through the legislative process, much of the information contained in the answers related to questions about the bill itself will likely change from what is listed in this report. As that occurs, we will continue to update this document with the latest information. This version is updated as of June 29, 2017.

CONTENTS IN THIS REPORT:(Click on each topic and sub-topic to be taken directly to those sections):

GENERAL QUESTIONS

BENEFITS

RETIREMENT

SENIORITY

PAY, COLLECTIVE BARGAINING, AND LABOR RIGHTS

REGION X MEMBERS

THE FEDERAL CONTRACT TOWER PROGRAM

MEMBERSHIP PARTICIPATION IN THIS ISSUE

LEGISLATIVE ACTIVISM

THE NATIONAL AIRSPACE SYSTEM: SAFETY AND MODERNIZATION

GENERAL QUESTIONS

How does the 2017 AIRR Act differ from President Trump’s proposal?

The 2017 AIRR Act is a fully developed legislative proposal that includes a comprehensive labor code with clearly defined employee rights and benefits, as well as other sections. The President’s proposal was a policy document that laid out an outline for potential legislation. The President’s proposal did not contain the specificity necessary for NATCA to evaluate it against our Four Core Principles for Reform. Because the 2017 AIRR Act is detailed legislation, NATCA could evaluate it using the measures established by our Four Core Principles for Reform. NATCA reviewed every word and detail of the 21st Century AIRR Act. After extremely careful review,

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consideration, and deliberation, we have reached a decision: NATCA supports the 2017 AIRR Act.

What is the closest similarity to the proposed structure of a "government-chartered, fully independent, not-for-profit" that currently exists in the United States?

The American Red Cross is the closest in terms of congressional charter, independence, and not-for-profit status. The United States Postal Service, as an alternate example, is not independent; it is characterized as a government corporation.

Would we be government employees in the new ATC corporation or would we become employees of the contractor?

We would be employees of the new non-profit corporation. The corporation would be the provider of the ATC service. It would not be a contractor for the FAA.

When would the new corporation take over according to the current version of the bill?

Oct. 1, 2020.

Which groups or job series would move to the ATC corporation? And for those that would be moving, how soon after the bill passes would they become ATC corporation employees? Will early outs be offered for the positions moving to the ATC corporation? 

The employees subject to transfer have not been determined, nor have the transition rules. The only certainty is that the FAA (Safety and Regulatory) and ATC corporation (Operational and Operational Support) would become two distinct entities. Regardless NATCA will continue to represent all members whether in the new corporation or within the FAA. The same is true for all of our bargaining units. The bill includes an obligation to negotiate transitional issues with a dispute resolution process of mediation and binding arbitration if we don't agree.

How do Alaska’s Flight Service Stations fit into this corporation now and in the future?

The list of employees and functions will be determined during the transition process. This function is operational, so, in all likelihood, it will transfer.

With just one seat on the proposed board of the corporation out of 13 total seats, is there concern that NATCA will be “outnumbered” and, thus, lose leverage in contract negotiations?  

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We would negotiate with the ATC corporation, not the corporate board, through collective bargaining, just like we do currently with FAA.

For years, we advocated against the airlines having too much control and influence over the ATC system. Why are we content to allow that to change here with this bill?

Nothing changes with this bill. In fact, the House Transportation and Infrastructure Committee reduced the number of board seats represented by the airlines from four in the 2016 AIRR Act to one representing large air carriers, one representing regional air carriers, and one representing cargo carriers in the 2017 bill. This was done specifically to ensure the board makeup would be even more of a diverse, representative body representing all stakeholders in the system. We have advocated against for-profit models (Contract Tower fight) and have not specifically advocated against airline interests per se. Air traffic control services started moving away from “inherently governmental” when the FAA contracted the level 1 facilities to the Contract Tower Program more than 20 years ago. Congress has continued to support and fund that program, and we lost a 17-year lawsuit fighting it.

As a member, I do not want the airlines having any more influence over our work. I believe it is a conflict of interest, and as a controller, I would find the additional pressure of trying to "please the airline bosses" distracting and counterproductive. Can you explain where the Union stands on this particular aspect?

We would not be working for the airlines. The seats on the board cannot be given to a member, officer, or employee of the associations or companies. The board's legal obligation is to the ATC system, not the entity that nominated them. They are there to provide subject matter expertise on behalf of labor, General Aviation, air carriers, government, and other nominators.

The 13-member board, as outlined in the current bill, would include three seats represented by the airlines – one each for passenger, cargo and regional carriers – while general and business aviation would each get one seat. The rest of the board members would be nominated by: the union representing air traffic controllers, the government, airports, the union’s representing commercial pilots and two more members picked by the other board members. 

The duty to bargain the many mandatory subjects of bargaining is separate and our strongest voice. We have no say now in any decision made by the Congress (we do well at lobbying), or the Administration (we do well at advocacy at the WH and DOT level and have limited bargaining rights in gov't with the FAA). We collaborate not only because it is the right thing to do but also because it gives us more of a voice. That would not change. The things that we can bargain would change and would become more expansive.

The bottom line is that we are a stakeholder on the board by way of the appointee from our nominating panel.

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You say we would negotiate with the corporation, and not the corporate board. What is the difference? When it really comes down to it, wouldn't the board (with a majority) ultimately be making decisions on policy, etc.?"

The CEO will run day-to-day operations of the corporation and appoint and oversee the employees such as those in Human Resources and Labor Relations. The corporation will be required to send people to the bargaining table who have the authority to bind the corporation to an agreement. The board will not handle negotiations.

How would the corporation’s CEO be selected?

The corporate board would appoint the CEO, who must be a U.S. citizen with a professional background and experience that qualifies them to manage the corporation.

The bill refers in some sections to the "corporation's bylaws.” Have these been written and would we have a say in formulating them if they have yet to be drawn up?

The Board is tasked with establishing the corporate by-laws. That would happen during the transition period.

Would the corporation's management be our bosses? And would they also be bargaining unit employees?

Managers and supervisors would be non-bargaining unit employees and not eligible to be NATCA active members.

Would Congress have the ability to amend the Corporation’s charter at any time it wishes in the future?

Yes. Congress can write, debate, and pass laws on many things. Their reach is well outside of aviation.

How fast do we expect this legislation to move, especially since we've come out in support of it?

The House Transportation and Infrastructure Committee marked up the bill and passed it on June 27. The next step is the House floor, where the bill could be brought up and debated after the Independence Day recess. House Speaker Paul Ryan has expressed support for ATC reform.

The Senate version passed through the Commerce committee on June 29 and does not contain language that would spin-off the air traffic control operation from the regulator.

This is still the beginning stage of a legislative process with many steps. The language in proposed legislation is often changed or amended throughout the legislative process. We will continue to track the bill vigorously and carefully review how it would affect our members and the NAS. If, and when, there are changes, we will review them to ensure

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that continues to fully align with our organization’s policies, practices, and core principles. We reserve the right to withhold our support if any change causes the bill to violate our core principles.

Should the bill pass in the House, and if it differs at that point from the Senate FAA reauthorization bill, which at this time it does, a conference committee would be formed to resolve the differences and it would return to each chamber for a vote. If the same bill passed in both chambers, then the President would have to sign the bill into law. As with everything on Capitol Hill, there is no firm timetable. However, the current FAA authorization expires on Sept. 30 and lawmakers will need to pass an extension if a new bill cannot be completed and signed into law before that deadline. We will also need to pay careful attention to any FAA reauthorization extension and any language (good or bad) attached to it.

If earmarks and other negative amendments are added to this bill, what will be NATCA’s next steps? 

We will continue to vigorously and carefully review this and all legislation throughout the process. If at any time there are changes to this bill, we will immediately examine them to ensure the bill continues to align with our organization’s policies, practices, and principles. We reserve the right to withhold our support if any changes cause the bill to violate our principles.

Does this new structure have to be renewed every year in FAA reauthorization bills?

Once passed, the corporation would perform the functions that it was statutorily delegated to perform until modified by Congress. It would be codified in statute and would not need to be renewed. However, all remaining oversight and regulatory fucntions retained by the FAA would continue to be subject to congressional authorization and the annual appropriations process.

How will the new ATC Corporation be funded? Funding presently comes from a combination of taxes and fees paid into the Airport and Airway Trust Fund (AATF) and general fund contributions, both appropriated by the United States Congress. Under the bill, the corporation can collect charges and fees from air traffic service commercial users, which would be established by the corporation. The corporation will use a weight and distance fee structure based upon an International Civil Aviation Organization (ICAO) guidelines. In a notable change from last year’s bill, the current legislation makes clear that all general aviation users would continue to pay a fuel tax and be exempt from any user fees imposed by the new entity.

Currently, Congress must authorize and appropriate the AATF for use by the FAA. Congress does not have it in a “lock box” limiting its use for aviation. The corporation would be able to issue bonds or engage in other financial transactions to fund capital improvement projects.

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The Airport Improvement Program (AIP) & Passenger Facility Charges (PFCs) would continue to fund airports.

Where has this model of user fee-based system been tested and proven?

Canada has adopted a similar funding structure based upon ICAO principles.

Will the funding be sufficient to meet pay and benefits that NATCA controllers have now or will there be cuts to pay and benefits?

We have determined that the funding provided in the bill is sufficient. The corporation will have the ability to borrow, which adds another level of financial security.

What, if any, contingency plan is laid out in this proposed legislation to protect controllers’ benefits, retirement and salaries should this corporation suffer losses? We have seen so many private corporations legally and legitimately rob their employees of their pensions and benefits through bankruptcy over the years.

We are confident that, as a monopoly, the corporation will have self-sustaining income. The board sets the fees and charges in accordance with the ICAO policy. It will be able to adjust those fees to deal with economic downturns. The corporation can also borrow money for capital improvements, rather than using operating money to do so. This will free up funds for long-term infrastructure projects and technology development and implementation.

As a not-for-profit with significant regulation, the monopoly powers will be well regulated.

Will the corporation indemnify the controllers in the event the worst happens?

Yes.

Will we have to purchase personal liability (similar to malpractice) policies?

No, you will not. The corporation will be required to maintain adequate liability insurance (as determined by the Secretary of Transportation) including complete indemnification of employees of the corporation for acts committed within the scope of their employment. This is consistent with the Federal Tort Claims Act, so the legal standard for the indemnification in the bill is identical to the protections employees currently have.

Will there be a reduction in the workforce?

Everyone involved in this process recognizes that the FAA’s air traffic controller and frontline workforce is understaffed. Staffing of fully certified air traffic controllers has reached a 28-year low. Additionally, a high number of FAA employees are currently eligible to retire, including nearly one third of the controller workforce. Staffing is also a mandatory subject of bargaining in the bill. We anticipate an increase in hiring, rather than reductions in force.

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Will controller staffing improve once the FAA is taken out of the hiring process?

As a non-federal operation, the human resources bureaucracy could be reduced greatly in a new corporation. Hiring should be significantly streamlined.

Is there a concern from NATCA about those eligible to retire choosing to leave to avoid the uncertainty of this change? 

The bill includes incentives to keep employees working. These include the option for employees of the corporation to receive their CSRS or FERS retirement and continue to work for full salary. Conversely, the status quo continues to bring developments that threaten our members’ financial and retirement wellbeing, including the President’s budget proposal released a few weeks ago.

What about other FAA unions, how are they affected?

NATCA has worked with Congress to protect employee and union rights for all FAA employee unions, including those who transfer to the new corporation and those who stay with the oversight and regulatory function within FAA.

What are the options, if any, for anyone not wishing to move to the ATC Corporation? Are there options to remain with the FAA, other than finding another position they may be qualified for and is open?

The employees subject to transfer have not been determined, nor have the transition rules. The transition decisions are subject to bargaining under this proposal.

Would TMCs move to the corporation and would NATCA continue to represent them?

The list of employees or groups of employees who will be transferred will be determined during the transition process, so we cannot say any group will definitively be included or excluded at this point. However, Traffic Management Coordinators are involved in the operation as opposed to the safety and regulatory functions of the FAA. We expect that TMCs will be included in the transfer. Regardless NATCA will continue to represent TMCs whether in the new corporation or within the FAA. The same is true for all our bargaining units. 

BENEFITS

How will Federal Employee Health Benefits be affected for those transitioning and those not yet hired?

Under the provisions of the bill, employees who are participants in FEHBP prior to the date of transfer will remain in those plans, at their election, and can receive the benefit in retirement. The corporation is required to make the government contributions for health care benefits.

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NATCA will be able to negotiate health care programs with the corporation and the corporation will have the duty to bargain with us. This is a change. Currently we cannot negotiate health care benefits. Employees who transfer into the corporation will have the option of moving into those newly negotiated plans. Newly hired employees would be covered by those negotiated plans.

Reference this portion of the bill: 91102(b)(1)(E) High 3 Determination: "For purposes of this section, an employee’s basic pay shall be defined as such employee’s total annual salary or wages from the Corporation, including any location-based adjustment." So will "High 3" become based off gross wages? What defines total annual salary or wages?

The intent of that provision was to include salary for FLSA exempt employees and wages for FLSA non-exempt employees, including location based adjustments (locality-type pay), but not include differentials and premiums.

I have just retired from the FAA. As a FERS retiree drawing an annuity and Social Security supplement, could the corporation rehire me and I still draw that annuityand supplement, ATC salary and participate in the corporation's retirement System?

You could still receive your annuity. The supplement is subject to an earned income test for certain retirees, so it may be reduced nor not apply depending on your circumstances. Also, employees could receive benefits under FERS and participate in the corporation’s plan, but couldn’t contribute to both plans simultaneously.

Unlike regular FERS retirees, special category FERS retirees (including those retiring under the special air traffic FERS retirement) can earn as much as they want without it affecting their CSRS until they reach their minimum retirement age. Then if they exceed it, they are subject to the Social Security earnings test like all other FERS retirees.

Where in this bill are we guaranteed to be allowed to work 20 years for those of us hired after the age of 36 (in order to receive a full pension)?

All of the provisions of CSRS and FERS remain in effect for employees who wish to remain in those retirement programs.

Controllers are currently covered under the Federal Employees Compensation Act for workers compensation. What coverage will employees have in cases of workplace injuries?

The same coverage will apply.

One concern I have heard over the proposed bill is the loss of federal job time status while in the not-for-profit corporation. Also, what does the bill say about corporation employees going back into the federal government for vacant positions? Can you please address these?

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Employees who elected to remain in CSRS or FERS would be able to continue in those programs and would receive the same service credit as if they were federal employees. This ensures that if they return to the federal workforce they would not lose anything in terms of their retirement benefits. The same is true for health coverage and the other insurance programs.

With regard to vacancy announcements for positions in the federal government - employees of the corporation would not be federal employees, so if the posting was limited to current federal employees, they would not be eligible. If the vacancy announcement was limited to current or former federal employees they would qualify.

How can NATCA assure me that this bill will protect my job from the "corporation" finding a way to let me go because they can pay a retired FAA controller or retired military controller much less than me because they are double dipping? 

Pay scales are negotiable with mediation and binding arbitration when there is an impasse. This bill provides stronger negotiating power than we have now under the Federal Service Labor-Management Relations Statute. 

I trust NATCA will try to protect us.  What I don't trust is that greedy “Corporate America” will honor their initial commitment to us and that our benefits and pay will be protected long term until my retirement. 

We completely understand your concerns. That is why we have worked so hard to secure the strong worker protections that in the current version of the bill. We will fight to keep the protections in the ultimate version. If they are reduced or removed, we reserve the right to withdraw our support.

Did the union take into consideration that they may be putting staff support personnel's jobs at risk to save the air traffic controller jobs? What were those considerations? Will the corporation include other FAA job classifications?

The entire unionized workforce is protected under this bill. Which employees make the transition is not yet determined. Labor contracts will carry over. Nothing in the bill protects the controllers over any other bargaining unit job.

How will military leave work?  I'm in the ANG and would like to know how that would work.

Military leave is covered by statute and this bill does not alter that. The Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) is a federal law that establishes rights and responsibilities for uniformed service members and their civilian employers.

USERRA is a federal law intended to ensure that persons who serve or have served in the Armed Forces, Reserves, National Guard or other uniformed services: (1) are not disadvantaged in their civilian careers because of their service; (2) are promptly reemployed in their civilian jobs upon their return from duty; and (3) are not discriminated against in employment based on past, present, or future military service. The law is intended to encourage NON-CAREER uniformed service so that the United States can enjoy the protection of those services, staffed by qualified people, while maintaining a

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balance with the needs of private and public employers who also depend on these same individuals.

USERRA protects the job rights of individuals who voluntarily or involuntarily leave employment positions to perform service in the uniformed services to include certain types of service in the National Disaster Medical System and the Commissioned Corps of the Public Health Service.

Will medical requirements remain the same under the ATC corporation (including vision, hearing, etc.) or will they change? Also, if you had to medically retire due to a disability under the FAA standards, will you still be able to collect your retirement benefits? Or if the standards change will you be able to be rehired and still retain FERS status?

FAA and DOT will still oversee medical requirements and drug testing, among other things. For those who have already medically retired, there will be no effect.

There is no severance package for involuntary separation from government service. I haven’t checked for a long time, but OPM laws used to state that when you were involuntarily separated from the government, they owed you 1 percent of your current salary for each six-month period of service. There are a lot of other rules as well. When NavCanada separated, each controller got the same safeguards as contained in our bill, but they got a severance payment as well. What would happen with us?

NATCA’s contract contains provision regarding severance pay. We are not covered by OPM’s regulations or the U.S. Code provision under which they are promulgated.

Would we be allowed/offered flight benefits through airlines; i.e. Discounted tickets/fares?

No. The nonprofit is would not be run by the airlines so we would not be airline employees entitled to flight benefits. Discounted tickets/fares have nothing to do with this bill and likely would be deemed a conflict of interest.  

RETIREMENT

Does this new bill have any protections for our federal pension or TSP? 

Yes. Both. Employees would be able to continue with contributions to their TSP and receive the employer match.

Is the mandatory age 56 retirement for controllers carried over in the FAA bill?

Yes, however when new pension plans are negotiated minimum hiring and mandatory retirement ages may change.

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Would the FERS ability to retire at 25 years, any age remain in place for a current employee?

The bill continues all of the retirement provisions in place now for employees who transfer to the corporation, including eligibility for an immediate annuity.

How much more "grandfathering" for current employees, in terms of pay structure, benefits, insurance, etc., is included beyond the choice to remain FERS/CSRS?

All of NATCA's contracts and MOUs would carry over to the new corporation. We will be able to resolve issues that no longer make sense for our bargaining unit employees who would no longer be federal employees. Federal health benefits, unemployment benefits, life insurance, dental benefits, and vision benefits would all carry over as well as workers compensation and leave balances.

If the bill were to pass as it is currently written, would air traffic controllers remain federal employees who keep and continue to earn their retirement, or would they be private sector employees who keep only what retirement we've already earned?

The current version of the bill would transfer air traffic and operational and support personnel to the not-for-profit corporation. Those who are covered by CSRS and FERS will continue to participate in those plans, although they will have the option of opting out and participating in the corporation's retirement program.

The corporation will make the government's contribution to CSRS or FERS, as applicable, and all calculations of benefits will include pay at the corporation.

NATCA will negotiate with the corporation over its retirement plan on behalf of the Union’s bargaining units. Employees hired by the corporation after the transfer date (as defined in the bill) will fall under the corporation's plan.

Employees who retire under CSRS or FERS, upon or after first eligibility, will be allowed to collect their full annuity and earn their full salary with the corporation and then participate in the corporation's retirement plan.

If I choose to remain in FERS for the remainder of my career, will those count as time in service for my pension?

Yes.

With reference to: "Employees hired by the corporation after the transfer date (as defined in the bill) will fall under the corporation's plan." What does the corporation retirement program look like?

Under the bill's provisions, NATCA has the right and the corporation has the duty to bargain with the Union over the structure of the retirement plan. The current retirement

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system is not subject to negotiations; it is set by statute and Congress has modified FERS several times in the past few appropriations cycles.

Standard FERS employees who were in the system before the amendments began, contribute 0.8 percent of their salary to FERS. Employees in the FERS-RAE (hired after 1/1/13 but before 1/1/14) contribute 3.1 percent of their salary to FERS. FERS-FRAE employees hired after 1/1/14 contribute 4.4 percent of their salaries to FERS. Those in the ATC retirement system contribute an additional 0.5 percent regardless of FERS category. There are additional amendments to FERS contributions proposed in the President’s Budget.

Will employees with prior military service still be permitted to buy back that time to be used in calculating their retirement?

Yes, under the provisions of the bill, employees who are participants in CSRS or FERS prior to the date of transfer will remain in those plans or receive their benefits in the same manner that would have been available to them as if they separated from Federal employment prior to the date of transfer.

The bill would transfer FAA employees to the private, not-for-profit corporation. Those who are covered by CSRS and FERS will continue to participate in those plans, although they will have the option of opting out and participating in the corporation's retirement program.

The corporation will make the government's contribution to CSRS or FERS, as applicable, and all calculations of benefits will include pay at the corporation.

NATCA will negotiate with the corporation over its retirement plan on behalf of our bargaining units. Employees hired by the corporation after the transfer date (as defined in the bill) will fall under the corporation's plan.

Employees who retire under CSRS or FERS, upon or after first eligibility, will be allowed to collect their full annuity and earn their full salary with the corporation and then participate in the corporation's retirement plan.

Vision 100: How will the new bill affect the laws, which apply to Vision 100-eligible controllers, and will I still be eligible to elect the Vision 100 in October 2018?

The retirement provisions in place now will continue in effect for all employees who elect to remain in CSRS or FERS.

I have a question about retiring under the 30-year rule (the rule that allows me to apply 1.7 percent to all ATC “good time” years, not just the first 20 years), also known as the enhanced retirement covered by 5 USC 8415 (f). If this bill passes, and I reach the required minimum retirement age (MRA) in February 2017, are these special retirement provisions under the FERS system also protected if I’m transferred to the new corporation on, say, Jan. 1, 2017?  

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All retirement provisions applicable to CSRS and FERS participating employees will continue to remain in effect after the transfer date.

Has there been any mention of early-out retirement incentives for veteran employees?

No.

Currently, members retiring under FERS can sell back unused leave to the Federal Government at the rate of 100 percent for annual leave and 40 percent for sick leave. Will this continue under the transfer to the corporation?

That is a provision of NATCA’s Collective Bargaining Agreement. The CBA will carry over and it will be subject to negotiations in future CBAs with the corporation.

Can I retire the day before the transfer to the corporation, collect my FERS annuity and still work for the corporation on day one at my pre-retirement pay? Also would I keep all my seniority and current rates of leave earning?

Yes. Under our current contract, which would carry over, the NATCA Constitution sets seniority. The Convention body will have to deal with this issue, when the time comes.

PAY, COLLECTIVE BARGAINING, AND LABOR RIGHTS

What types of protections for employees will be afforded under the new corporation, such as tort protection, merit systems protection, grievance procedures?

All of the discrimination laws are applicable; whistleblower protections are extended. NATCA remains certified and has collective bargaining rights and a dispute resolution process. The corporation is required to indemnify employees for acts within the scope of their employment.

As contract employees under the proposed corporation, how will that affect our bargaining over pay and other items?

NATCA bargaining unit employees would not be contractors; they would be employees of the corporation. The corporation would not be an FAA contractor providing a service. It would be a federally-chartered, not-for-profit corporation, established specifically to provide air traffic services.

The bill creates a hybrid labor-relations environment. It is based on some of the best provisions from the private sector and federal-sector labor laws, and the FAA’s dispute resolution provision. The duty to bargain would include wages, hours, and other terms

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and conditions of employment. Pay raises, like now, would be subject to negotiations. Initially, our contracts and other work rules would carry over to the corporation.

Will we be protected beyond the terms of the FAA bill proposal for the ATC Corporation?

The current collective bargaining agreement will remain in effect for its duration. Through the transition period, we will negotiate any contract and work rules issues that do not transition smoothly from the FAA to the corporation. That negotiation includes binding arbitration if the parties cannot reach voluntary agreement.

How would we effectively bargain with this new corporation when NATCA itself would have a seat on the board? It would seem like a conflict of interest to me.

NATCA will be able nominate a member of the corporate board. However, the board member cannot be a NATCA member or employee of the union. The board's legal obligation is to the ATC system, not the entity that appointed them.  They are there to provide subject matter expertise on behalf of labor, General Aviation, major and regional Air Carriers, and government appointees.

The duty to bargain the many mandatory subjects of bargaining is separate.  

No different from having an article 114 rep on a safety and technology program now; it doesn't relinquish the FAA's duty to bargain what they are required to bargain.

How would the corporation set the pay structure? Would it be levels such as now, with bands?

Pay, just as it is now, would be subject to negotiations in the new corporation with a binding arbitration process to resolve any disputes.

What happens to locality pay, CIP pay, and COLA rates after the transition to the new ATC Corporation?

Locality pay is part of our contract. All of our contract provisions will remain in effect. CIP will as well. The bill provides that the Non-Foreign Area Retirement Equity Assurance Act of 2009 applies, so COLA will be phased out for locality and employees will receive their locality pay as part of their retirement.

Are pay raises included as part of this proposal?

All future pay changes will be subject to the carried over collective bargaining agreement and future negotiations, subject to binding arbitration.

Will there be provisions for reassignment or retention for those unsuccessful in training?

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 All existing contracts, MOUs, and work rules will carry over to the corporation and will remain in effect for the duration of the agreements.

How will the revised process for Employee Requested Reassignments (ERR) process work under the new Corporation?

All existing contracts, MOUs, and work rules will carry over to the corporation and will remain in effect for the duration of the agreements. Consequently, the ERR process will remain the same after the date of transfer, as it was prior to the date of transfer.

Will we have the right to strike?

No. The bill prohibits strikes. It provides a binding arbitration process to resolve disputes for both mid-term and term negotiations.

I have heard a lot of references to NAVCanada. Do NAVCanada controllers currently have the opportunity to strike?

Yes, but they have to have a minimum service agreement in place first. They could never do a full-scale walk out and just shut it down.  

Would NATCA be willing to explore inserting language into this bill that would allow us the opportunity to strike?

No, we wouldn’t. NATCA does not believe having the right to strike would lead to better agreements. Strikes are more political than binding arbitration. Binding arbitration conducted by professional neutral parties will lead to more successful long-term labor agreements. There is strong language in the bill for mediation and binding arbitration in case of impasse for term and midterm bargaining. 

As non-federal employees, would we lose the Merit System Protection Board process? Under what process would adverse/disciplinary actions be handled?

Yes. The contract’s grievance-arbitration process would apply.

Will this move to a corporation mean it would be easier for the employer to impose disciplinary actions and termination?

NATCA’s contract, including Articles 10 and 9 will remain in effect. This includes the standards that must be met in arbitration over a disciplinary or adverse action, including removal.

For facilities waiting for an upgrade due to traffic increases, how will the FAA bill

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affect that?

The transfer to a corporation would not take effect until October 2020. The contract will remain in effect until that time, including the provisions for facility pay level increases and decreases. The contract and all grievances would also carry over.

Will employees of the new corporation still be bound by 5 CFR 6001.104, Prohibited Financial Interests? “(b) Federal Aviation Administration (FAA). Except as provided in paragraphs (c) and (d) of this section, no FAA employee, or spouse or minor child of the employee, may hold stock or have any other securities interest in an airline or aircraft manufacturing company, or in a supplier of components or parts to an airline or aircraft manufacturing company.”

The FAA’s ethics rules including prohibited financial holdings and outside aviation employment would continue to apply until new procedures under the bipartite agreement process are negotiated. They would definitely be conditions of employment and subject to negotiations, unlike for federal employees where they are set by regulation and statute. 

OUR REGION X MEMBERS

What will happen to non-controller NATCA members?

The FAA will continue to perform its safety and regulatory functions under the current bill. Employees not transferred to the corporation will continue to receive the same level of pay and benefits that they received prior to the date of transfer and NATCA will continue to represent them. Some of the non-controller bargaining unit members are safety and regulatory and some are AT operational support personnel. The split would be divided that way; however, the exact personnel groups being moved or staying would be decided in the transition agreements which are subject to bargaining.

FEDERAL CONTRACT TOWER PROGRAM (FCT)

Would the FCT program be eliminated and absorbed into the "ATC Corporation"?

All contracts of the FAA are transferred to the corporation and remain in place including contracts to operate FCTs.

Will this restructure hurt the Federal Contract Tower program?

Those contracts would carry over as are. When they are renewed they could be rewritten or renegotiated by the corporation.

What happens to FCT employees’ benefits and pay after the corporation takes over?

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All contracts, including those covering FCTs will be transferred to the corporation. The corporation’s board will be able to determine, at the end of those contracts, whether to extend them, rebid them, or move the work in-house. This is the same for any other existing contract work with the air traffic operational and support workforce. This means work being done by contractors in the FAA could later be brought in-house if determine necessary by the board.

Will FCT employees be restricted to the mandatory age and retirement requirement?

No.

If age 56 mandatory separations go to the corporation, what is the transition plan for FCTs who currently employ controllers over the age of 56?

Age 56 mandatory separation only applies to employees in CSRS and FERS.

A concern of mine has always been the extremely low level staffing that FCTs have. What will the staffing levels look like for FCT facilities under the new corporation?

Staffing would transfer over at current levels, but because the corporation is a not-for-profit, the priority will be the operation of the system, as opposed to squeezing the most profit out of the operation by reducing staffing. We hope that by resolving the funding issue, which is our primary concern, the system will be properly staffed.

There appears to be language in the bill that would allow contracting out of jobs at the discretion of the new corporation. Is this true?

The section allowing the Department of Defense, entities to which the government has delegated ATC responsibilities, and entities that the corporation has contracted with to provide ATC services, is there because the corporation will be taking over all contracts that the FAA is party to.  This includes the Federal Contract Tower program.  

Those facilities will continue to be operated by the current providers, at least until their term has expired, and they will be under contract with the corporation.   If the language was not included, those FCTs would have to shut down immediately. This would be a disastrous blow to the NAS, and to NATCA given the fact that we represent 94 of these facilities.  There are also procedures in the event that a contract tower is closed to ensure the safety of the airspace.

That being said, the FAA can and has contracted out ATC services through the Federal Contract Tower program.  They in fact have contracted out about half the work the FAA does (flight service in the lower 48, IT, engineering, maintenance, etc.).   We can never completely prevent any entity from contracting out.  This bill does give us a nominated member to the board where we can be advocates for keeping the work in-house.  The former Federal Contract Towers that will be contracted with the corporation instead of the FAA, will still be overseen by the FAA’s safety program.

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NATCA’s nominee on the board will help to address concerns about future contracting out of functions.  But, there will also be the opportunity to bargain over many things that we previously could not under federal-sector labor laws.  There will be opportunities to bring certain functions back in-house, including the FCT program, by using the economies of scale available through the use of new technologies.  

NavCanada, in its 20-year history, has brought significantly more work in-house than it has outsourced.  

MEMBERSHIP PARTICIPATION IN THIS ISSUE

Why was there no vote on this by the membership before NATCA announced its support for the bill?

NATCA leadership has been very transparent with the membership about the process leading up to the introduction of both this legislation, and the AIRR Act of 2016. The dialogue on FAA reform has been around for decades. In fact, the FAA has been reformed both by the 1996 law and restructured dozens of times. Some, if not all of these changes, have been harmful to the workforce. 

Because of this history, the national leadership of NATCA has been vigilant and monitoring developments in the FAA Reauthorization process. We have held briefings on this issue at local membership meetings, FacRep meetings, NATCA classes, Communicating for Safety, the 2014 Biennial Convention in Minneapolis, the 2016 Biennial Convention in San Diego, NATCA in Washington, and OKC student meet and greets. Additionally, we have sent out many emails highlighting our concerns about how the upcoming FAA Reauthorization debate could hurt us.

We spent considerable time on this at our 2014 Biennial Convention in Minneapolis and then held a debate on strategy. The delegation voted for leadership to push back against any for-profit model for as long as we could. They also gave us the flexibility to pivot if needed through the adoption of the following language to the NATCA Constitution in 2014:

PSC-2 Contracting Facilities (4/06, 10/14)The National Office shall spare no reasonable expense in the protection, continuation, and growth of all bargaining unit positions, and shall offer all lawful resistance to out-sourcing or contracting out.

In the event of imminent or impending reform or restructuring of the Air Traffic Organization, including privatization, the National Executive Board shall spare no reasonable expense to protect every interest of the Union including, but not limited to: pay, benefits, and working conditions.

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The convention body at the 2016 Biennial Convention in San Diego upheld this language and direction, making a strong statement that it wants NATCA to remain at the table for any reform discussions. The following language is in our constitution, following the debate and discussion – and votes – from the last two NATCA Biennial Conventions:

PSA-5 Alternative Funding Stream (10/14, 9/16) The National Air Traffic Controllers Association supports the exploration of the following concepts: a. Creating a sustainable financial future. It is critical to establish a funding system that provides dedicated and sufficient revenues to pay for obligations. b. Separating the operations and support functions from the regulatory functions of the Federal Aviation Administration (FAA). Potential areas of exploration could include the creation of two separate government agencies or the formation of a quasi-governmental corporation. c. Reforming existing statutes, regulations, and policies. d. Reviewing the current mix of Airport and Airway Trust Fund taxes and fees and considering alternative sources that provide sufficient funding for services such as air traffic control and aircraft certification. 

Ensuring the safety of the National Airspace System should be in the forefront of any initiatives to reform FAA funding streams and governance. Any support by NATCA must ensure the following: a. NATCA, as a stakeholder, must be included throughout the process, from inception to implementation. Further, any effort must be supported by NATCA’s National Executive Board. b. Retention of Union recognition, representational status, and continuation of collective bargaining rights. This is achieved through the retention of 5 United States Code Chapter 71, however other similar legal frameworks may be considered. c. Protection of membership pay and benefits including, but not limited to, retirement and health care. d. NATCA must be included as a voting member of any governing board or body. e. Indemnification for employees from individual tort liability for acts within the scope of employment.

Our support for any legislation has been conditioned on the inclusion of the following policies:

1. NATCA would continue as the exclusive representative of those represented today, with nation-wide bargaining units. (If there were a split between operations and safety/regulatory, we would continue to represent units in both areas.)

2. Hybrid Labor Code (if it looked like it might go out of gov't) - FLRA would maintain jurisdiction, but NATCA would have the negotiation rights of a private sector union, to allow NATCA to negotiate those matters covered by statute for the federal workforce but not covered by statute for private sector employees.

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3. Dispute Resolution Process - Negotiations would be resolved through mediation, followed by binding arbitration for issues at impasse.

4. Protections of FERS/CSRS, TSP, Survivor Annuity, and the ability to negotiate pensions in the case of a model outside of government.

5. Sick leave, annual leave, comp time, and credit hour carry-over.

6. Pay, compensation, and benefits remain in effect, including COLA to locality where occurring, and the ability to negotiate benefits in the case of a model outside of government.

7. Collective Bargaining Agreements, orders, rules, practices remain in effect until renegotiated.

8. Grievances, lawsuits, etc., continue in process.

9. Workers’ Compensation under the Federal employee program (FECA).

10. Whistleblower protections.

11. Liability protection: employee indemnification where acting in the course of their duty.

12. Process for movement between new entity and regulatory FAA.

13. Transitional Agreements to deal with the multitude of issues that would arise during any transition. Unresolved issues would be subject to the binding arbitration, dispute resolution process. 

a. Bi-Lateral - Between labor and the new entity

b. Tri-Partite - Between labor, the new entity, and the safety/regulatory entity.

14. Labor seats on the governance board. 

All of the above protections are included in the bill that just went through the House T&I Committee.

The next step is floor consideration in the House and we will closely monitor the progression of the Senate’s FAA bill, which does not propose removing ATC from the FAA. There is no firm timetable for either of these at this point. FAA’s authorization will expire on Sept. 30 so if there is not a bill passed and signed by the President by then, an extension will be needed to avoid a partial FAA shutdown. We believe this issue is not going away and the groundwork we are laying now will only serve to benefit us in the

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future. Another proposal might start from where this one finishes instead of from a bad place.  

We have to learn from the past. We have to be careful when we fight and with whom we fight. We have not always been successful, even when our fight was righteous. We lost the contract tower fight, NATS lost FSS to Lockheed Martin and PASS lost FTI when it was contracted to Harris. The next Chairman may not give us the time of day. This is not just about what could happen now, but also about being prepared for what may happen in the future. We need to work with those who will work with us. That means we cannot start from “no.” If, in the end, the proposal doesn’t meet our needs our opposition will be measured and messaged in a way that shows the effect of such a bill on the system, economy, and safety.

The issue is very complicated and there will be many twists and turns before it is done. We have been making our decisions based on the support of the convention body on the strategy we have outlined in many forums and meetings and communicated through dozens of updates to the membership. We were elected to make these very hard decisions and negotiate on your behalf. Our top priority is to maintain the integrity of the NAS while protecting its workforce.

LEGISLATIVE ACTIVISM

What role will the National Legislative Committee (NLC) play if this legislation passes?

The NLC is a standing committee under the NATCA Constitution. It would continue to perform all of the functions it performs now.  

Under this new corporation, we would not be subject to the Hatch Act, correct? Could the PAC be solicited at our facilities?  Are they still federal facilities, and would that preclude this?  Could we work on campaigns, work with Congressional offices, etc., while at work?  

The Hatch Act would not apply to corporation employees. The facilities would be transferred to the corporation and would not be covered by the Hatch Act. PAC solicitation in the workplace would be subject to negotiations.

With this new legislation, does that mean we will no longer need the PAC? Does it mean we won't be relying on it as much as we do now?

NATCA will continue to be legislatively and politically active. It is a major pillar of our Union. There would remain many issues affecting our members and the National Airspace System for which NATCA will need to be active and engaged on Capitol Hill. Additionally we would represent professions still in the FAA (safety and regulatory) and in the corporation. Also in the corporation the transferred workforce would retain federal benefit packages so we would need to continue to work with congress to protect them

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for both entities.

THE NATIONAL AIRSPACE SYSTEM: SAFETY AND MODERNIZATION

What happens to the Air Traffic Safety Action Program (ATSAP) when the new corporation takes over? ATSAP is a valuable tool in helping the system remain safe and it'd be tragic to see it go away.

All agreements, including the ATSAP MOU will be carried over. The bill contains a tripartite process to resolve issues that involve NATCA, the corporation, and the FAA regulator, to ensure that programs like ATSAP, Fatigue Mitigation Prevention and other safety programs remain in effect.

How would this change to a corporation affect general aviation and safety? If user fees are going to be added, how much general aviation traffic might we lose?  How many VFR aircraft are just going to go out and not talk to ATC?

GA is held harmless and will continue to pay under the current fee structure.

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