After six months of often contentious negotiations, the AFSCME negotiating team and the FAA have come to a tentative agreement. The final issue settled between the parties was pay. The final terms of the agreement provide the following:

• Conversion of all employees to pay bands. Employees will have their step increase "bought out" at the time of conversion. ARA employees have already been converted so this provision will have no effect on ARA. An explanation of the within grade increase (WIGI) buy out methodology and a buy out calculator are available on the FAA website. Once step increases are bought out, they will no longer be provided.

• An immediate 2.5% increase in pay for all employees with retroactivity to October 1, 2000. The retroactivity means that each employee will receive a lump sum equal to the amount he/she earned in the period from October 1 to implementation of the pay raise. In all likelihood, the lump sum will amount to 1% to 1.25% of base pay. This is in addition, to the 2.5% increase in base pay.

• In October, 2001 all employees will receive a 1% increase in base pay.

• In January, 2002 all employees will receive the regular Federal worker pay increase (including locality pay) plus 1.6%.

• In October, 2002 all employees will receive a 1% increase in base pay.

• In January, 2003 all employees will receive the regular Federal worker pay increase (including locality pay) plus 1.6%.

• In October, 2003 all employees will receive a 1% increase in base pay.

• In January, 2004 all employees will receive the regular Federal worker pay increase (including locality pay) plus 1%. Eligible employees will also receive "performance based pay" (PDP) increases of not less than .6%.

• In January, 2005 all employees will receive the regular Federal worker pay increase (including locality pay) plus 1%. Eligible employees will also receive "performance based pay" (PDP) increases of not less than .6%.

• In January, 2006 all employees will receive the regular Federal worker pay increase (including locality pay) plus 1%. Eligible employees will also receive "performance based pay" (PDP) increases of not less than .6%.

• In July, 2006 all employees will receive a 2.5% increase in base pay.

• In January, 2007 all employees will receive the regular Federal worker pay increase (including locality pay) plus 1%. Eligible employees will also receive "performance based pay" (PDP) increases of not less than .6%.

The Agreement expires September 30, 2007.

The pay agreement addresses employees in career ladders by ensuring such employees can receive up to 15% for promotions to the target level.

The agreement caps new hire pay so new employees cannot make more than the pay band maximums.

In addition, the pay agreement addresses classification upgrades of some employees in the 2152 job series and attorney job series. Eligible employees in these job series will receive an 8% increase upon reclassification. Eligibility is determined on the basis of performance.

More details of the economic and non-economic aspects of the agreement will be available shortly. In addition, members may request an electronic version of the agreement.

The Agreement will not go into effect until ratified by the membership. Details regarding the ratification process will be announced shortly.

An all hands meeting will be held on Tuesday, February 13 in the FAA auditorium at 1:30.