Spirit Airlines 2014 Annual Report Download - page 85

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Notes to Financial Statements—(Continued)
85
Litigation
The Company is subject to commercial litigation claims and to administrative and regulatory proceedings and reviews
that may be asserted or maintained from time to time. The Company believes the ultimate outcome of such lawsuits,
proceedings and reviews will not, individually or in the aggregate, have a material adverse effect on its financial position,
liquidity or results of operations.
Employees
The Company has four union-represented employee groups that together represent approximately 67% of all employees at
December 31, 2014. The Company had three union-represented employee groups that together represented approximately 59%
of all employees at December 31, 2013. The table below sets forth the Company's employee groups and status of the collective
bargaining agreements as of December 31, 2014.
Employee Groups Representative Amendable Date Percentage of
Workforce
Pilots Air Line Pilots Association, International (ALPA) August 2015 25%
Flight Attendants Association of Flight Attendants (AFA-CWA) August 2007 35%
Dispatchers Transport Workers Union (TWU) August 2018 1%
Ramp Service Agents International Association of Machinists and Aerospace Workers
(IAM) TBD 6%
In August 2014, under the supervision of the National Mediation Board (NMB), the Company and AFA-CWA reached a
tentative agreement for a five-year contract with the Company's flight attendants. The tentative agreement was subject to
ratification by the flight attendant membership. On October 1, 2014, the Company was notified that the flight attendants voted
not to ratify the tentative agreement. The Company will continue to work together with the AFA-CWA and the NMB with a
goal of reaching a mutually beneficial agreement. On July 8, 2014, approximately 250 ramp service agents directly employed
by the Company voted to be represented by the International Association of Machinists and Aerospace Workers (IAM). As of
December 31, 2014, these ramp service agents served 4 of the 56 airports where the Company operates. The Company has
begun the process of negotiating a collective bargaining agreement with the IAM.
The Company is self-insured for health care claims, subject to a stop-loss policy, for eligible participating employees and
qualified dependent medical claims, subject to deductibles and limitations. The Company’s liabilities for claims incurred but
not reported are determined based on an estimate of the ultimate aggregate liability for claims incurred. The estimate is
calculated from actual claim rates and adjusted periodically as necessary. The Company has accrued $3.1 million and $2.1
million, for health care claims as of December 31, 2014, and 2013, respectively.