Spirit Airlines 2015 Annual Report Download - page 88

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Notes to Financial Statements—(Continued)
88
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 73% of all employees at
December 31, 2015. The Company had four union-represented employee groups that together represented approximately 67%
of all employees at December 31, 2014. The table below sets forth the Company's employee groups and status of the collective
bargaining agreements as of December 31, 2015.
Employee Groups Representative Amendable Date Percentage of
Workforce
Pilots Air Line Pilots Association, International (ALPA) August 2015 26%
Flight Attendants Association of Flight Attendants (AFA-CWA) August 2007 43%
Dispatchers Transport Workers Union (TWU) August 2018 1%
Ramp Service Agents International Association of Machinists and Aerospace Workers
(IAMAW) June 2020 3%
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 with the AFA-CWA and the NMB towards a goal of
reaching a mutually beneficial agreement.
On July 8, 2014, certain ramp service agents directly employed by the Company voted to be represented by the
IAMAW. In May 2015, the Company entered into a five-year interim collective bargaining agreement with the IAMAW,
including material economic terms, and the Company is continuing the process of negotiating a final collective bargaining
agreement with the IAMAW. As of December 31, 2015, these ramp service agents served 1 of the 56 airports where the
Company operates.
In August 2015, the Company's CBA with its pilot union, ALPA, became amendable and the Company is currently in
discussions with ALPA on a new contract.
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 $4.3 million and $3.1
million, for health care claims as of December 31, 2015, and 2014, respectively.