jetstewus
July 2, 2002, 12:18 AM
It looks like AFA and the company have come to a tentative agreement on the amount of consessions the flight attendant group will provide. Sounds like 77 million is the magic number. We should all be receiving a detailed copy in the mail soon. I guess AFA is recommending we vote "YES" on this agreement. In theory, even if we do have to file for bankruptsy, we won't have to give up more than what this agreement provides for as long as it's signed before the bankruptsy. I think.
I'm a little miffed that there were negotiations about an Unable to Commute policy and a new Drug Screening policy. Are these issues really priorities right now? Maybe more of us are being driven to smoke crack so they want to give us a break. Anyway, at least it's something seemingly solid and we'll get to vote on it soon. Personally, I'll be glad when it's over, whatever the outcome. I can't understand how some of these people have been going through this here for 20+ years.
Good luck everyone and fly safe! images/icons/wink.gif
Monday, 7/1/02 - The AFA Negotiating Committee met
with management throughout the weekend. Late Sunday
evening, we reached a tentative agreement on a plan
that will provide US Airways with the labor cost savings
it needs from flight attendants to get a loan guarantee
from the federal government and possibly keep our carrier
out of bankruptcy. The tentative agreement will reward
flight attendants for their sacrifice and dedication
and also provides flight attendants protections should
the airline apply for bankruptcy.
Management originally asked for $90 million in cost
savings each year from the flight attendants. Our agreement
reduces that number to $77 million per year and builds
in significant protections and rewards. Make no mistake,
the $77 million is still a substantial number, and
every cut is painful. The tentative deal attempts to
make the best out of a bad situation by providing protection
in the event of a bankruptcy and maximizing our returns
once the company returns to profitability.
------------------------------------------------------------
Main Points of the Tentative Agreement
------------------------------------------------------------
Here are the basics of the deal (more details will
be provided in the coming days):
* First and foremost, all US Airways flight attendants
currently paying dues and whose dues account is in
good standing will have an opportunity to vote on the
tentative agreement. If you're not sure about your
eligibility to vote, call AFA at 1-800-424-2401, ext.
861.
* If the company agrees to a lower percentage of cuts
with the pilots, our percentage will be reduced to
match it.
For example, our tentative agreement gives management
$77 million of the $90 million per year US Airways
sought. That's 85 percent of the original target savings
number management set for us. If the pilots strike
a deal that provides the company with less than 85
percent of the original $595 million per year that
the company asked for, the savings provided in our
deal will be reduced to match the lower percentage
-- meaning we will put money back in our pockets.
AFA originally said we were going to wait for the pilots
to make a deal first, and then we would follow. However,
we were able to get the company to sign off on this
provision, so we were able to continue with negotiations
and still be ensured that we are not going to pay a
higher percentage than the pilots.
* If US Airways files for bankruptcy, management will
not ask for cuts greater than those provided in our
agreement.
This provision is effective throughout the ratification
process. However, if a majority of the flight attendants
do not ratify the deal, this provision (along with
the rest of the agreement) goes away and we will be
treated like any other labor group that doesn't have
an agreement on concessions. That means management
will ask the bankruptcy judge to authorize the cuts
that the carrier proposed in its first concession Term
Sheet.
The company's first concession Term Sheet given to
the AFA Negotiating Committee sought cuts of $108
million per year, including a 15.5% cut in wages, a
cut in our pension formula, and massive cuts in our
health insurance that would increase flight attendant
out-of-pocket costs over 380% in the next four years.
In essence, a group without an agreement would be forced
by the courts to take the maximum amount of cuts but
would not share in profit sharing and other equity
returns built into our tentative agreement.
* Management still says it believes it can restructure
the airline outside of bankruptcy. However, a number
of factors still must fall into place. The other labor
groups must finalize their deals. The agreements must
be ratified. Creditors must agree to new terms of payment.
If any of those pieces fail to fall into place, management
will have to consider filing for bankruptcy. Today's
announcement (7/1) that management is not going to
pay some of its public debt obligations is an indication
that negotiations with some of its creditors may be
going slowly. And if those talks fail, just like if
the talks with the other labor groups fail, bankruptcy
will be a reality.
If our deal fails to ratify, and the airline goes into
bankruptcy (not a certainty, but from all indications,
very likely under this scenario), AFA will get a chance
to make our case to a bankruptcy judge concerning the
cuts management asks to make, in an effort to lower
the amount of cuts from the $108 million per year
management is likely to request. Our success in convincing
a bankruptcy judge that the cuts are too severe will
rest with the judges sympathies. Some judges are sympathetic
to workers. Some are not.
------------------------------------------------------------
Changes to our contract
------------------------------------------------------------
IMPORTANT NOTE: Changes that are set to begin on July
1, 2002 will not go into effect unless the contract
is ratified by a vote of the flight attendants -- those
changes would then be retroactive.
* Wages will be cut 8.4 percent, retroactive to July
1, 2002.
* Two percent raises in 2003 and 2004 will be eliminated.
* 'No furlough' clause will be deleted, however, flight
attendant jobs are protected to a minimum fleet size
of 275 aircraft outside of bankruptcy and 245 aircraft
in bankruptcy; if a furlough becomes necessary, management
will offer a voluntary furlough first, including 24-month
passes; if not enough voluntary furloughees apply,
involuntary furloughees will receive passes for one
year and will have bumping rights at MidAtlantic Airways
in seniority order; management will also offer a Voluntary
Separation Incentive Package in lieu of a furlough.
* Longevity Pay, Crew Meals (except transoceanic flights)
and Uniform Allowance will be discontinued until Dec.
31, 2008.
* Per diem increase scheduled for Jan. 1, 2003 will
be delayed until Dec. 31, 2008.
* Vacation Pay and Credit will be reduced by 10 percent
effective Jan. 1, 2003 through Dec. 31, 2004, snapping
back to current levels thereafter.
* Vacation Accrual rates will be reduced by 20 percent
between July 1, 2002 and Dec. 31, 2002. Vacation accrual
rates will be reduced by 10 percent between Jan. 1,
2003 and Dec. 31, 2008.
* Reserve Override will be eliminated July 1, 2002
through Dec. 31, 2005. It will snap back to $.50/hour
on Jan. 1, 2006 and will snap back to $1.00/hour on
Dec. 31, 2008.
* Health Care: All flight attendants will participate
in a national preferred provider organization health
care, dental and drug plan. Details of that plan will
be made available shortly. The new plan will mean health
care cost increases for most flight attendants.
* Effective Date: July 1, 2002 through Dec. 31, 2008.
Negotiations for a new agreement will open on Jan.
1, 2008. If no agreement is reached by July 1, 2008,
the parties will mutually file a request for mediation.
------------------------------------------------------------
Returns/Protections
------------------------------------------------------------
- Flight attendants will receive the benefits of a
profit-sharing plan on the same terms agreed to by
other employee groups.
- Flight attendants will also be provided returns in
the form of equity [details to come].
- Section 1113 Letter - gives flight attendants protection
against cuts greater than those in this agreement in
the event the carrier enters bankruptcy.
- Verification - If concessionary negotiatons with
ALPA achieve less than 85% of its savings target (based
on $90 million/$595 million per year savings relationship),
wage rates for the flight attendants will be adjusted
such that the flight attendants achieve the same percentage
savings target.
- Governance - Participating unions, including AFA
but not ALPA, will nominate a member to sit on the
US Airways Group, Inc. Board of Directors. A new Board
seat will be created for this position.
- Change in Control - In the event there is a change
in control of US Airways, flight attendant wage rates
will snap back to the June 30, 2002 level.
- Involuntarily furloughed US Airways flight attendants
will be provided job opportunities at MidAtlantic Airways
in seniority order and will retain the same contractual
rights and benefits as all other furloughed US Airways
flight attendants.
- Cameras in the Cabin - Should video monitoring devices
be required in the cabin during flight, the company
will meet with AFA in advance and negotiate the formulation
of policies regarding the use of such devices.
- Unable to Commute Policy (effective Jan. 1, 2003).
- Paid Personal Days (2 per year) will be granted based
on coverage and will be deducted from next year's vacation
if used (effective Jan. 1, 2003).
- Shuttle flight attendants will be placed on the mainline
vacation schedule.
- Bereavement Leave - grandchildren added.
- Salary Continuance - A flight attendant receiving
salary continuance shall accrue vacation and sick leave
for the first six months of salary continuance (effective
Jan. 1, 2003).
- Company will alter its drug policy so that the first
confirmed positive drug test will not automatically
result in termination.
Health Insurance Program
The information on the changes to our health insurance
program will be provided as soon as possible. Basically,
management wants all US Airways employees under a single,
national preferred provider organization.
Your Negotiating Committee worked hard to move management's
cost savings number from $90 million to $77 million
per year. We worked hard to structure the cuts in a
way that would have the least hurt. Regardless of our
efforts, these cuts are going to hurt. However, if
our carrier turns around and becomes profitable, we
will receive the benefits of those profits in the form
of returns. And we were able to provide protections
against more dramatic cuts in bankruptcy, as well as
other new gains for flight attendants. Of course, all
of these changes, returns and protections hinge upon
ratification of the agreement.
On July 1, the AFA US Airways Master Executive Council
met and unanimously voted to send the tentative deal
outlined here to the flight attendants for a ratification
vote. A majority of the MEC also voted to recommend
that flight attendants vote to approve the package
based upon the returns and protections it provides.
We will provide you will all of the details of the
tentative agreement in the days and weeks to come.
A schedule for road shows will be developed and posted.
And a date for the ratification vote will be set.
[ 07-02-2002, 01:26 AM: Message edited by: jetstewus ]
I'm a little miffed that there were negotiations about an Unable to Commute policy and a new Drug Screening policy. Are these issues really priorities right now? Maybe more of us are being driven to smoke crack so they want to give us a break. Anyway, at least it's something seemingly solid and we'll get to vote on it soon. Personally, I'll be glad when it's over, whatever the outcome. I can't understand how some of these people have been going through this here for 20+ years.
Good luck everyone and fly safe! images/icons/wink.gif
Monday, 7/1/02 - The AFA Negotiating Committee met
with management throughout the weekend. Late Sunday
evening, we reached a tentative agreement on a plan
that will provide US Airways with the labor cost savings
it needs from flight attendants to get a loan guarantee
from the federal government and possibly keep our carrier
out of bankruptcy. The tentative agreement will reward
flight attendants for their sacrifice and dedication
and also provides flight attendants protections should
the airline apply for bankruptcy.
Management originally asked for $90 million in cost
savings each year from the flight attendants. Our agreement
reduces that number to $77 million per year and builds
in significant protections and rewards. Make no mistake,
the $77 million is still a substantial number, and
every cut is painful. The tentative deal attempts to
make the best out of a bad situation by providing protection
in the event of a bankruptcy and maximizing our returns
once the company returns to profitability.
------------------------------------------------------------
Main Points of the Tentative Agreement
------------------------------------------------------------
Here are the basics of the deal (more details will
be provided in the coming days):
* First and foremost, all US Airways flight attendants
currently paying dues and whose dues account is in
good standing will have an opportunity to vote on the
tentative agreement. If you're not sure about your
eligibility to vote, call AFA at 1-800-424-2401, ext.
861.
* If the company agrees to a lower percentage of cuts
with the pilots, our percentage will be reduced to
match it.
For example, our tentative agreement gives management
$77 million of the $90 million per year US Airways
sought. That's 85 percent of the original target savings
number management set for us. If the pilots strike
a deal that provides the company with less than 85
percent of the original $595 million per year that
the company asked for, the savings provided in our
deal will be reduced to match the lower percentage
-- meaning we will put money back in our pockets.
AFA originally said we were going to wait for the pilots
to make a deal first, and then we would follow. However,
we were able to get the company to sign off on this
provision, so we were able to continue with negotiations
and still be ensured that we are not going to pay a
higher percentage than the pilots.
* If US Airways files for bankruptcy, management will
not ask for cuts greater than those provided in our
agreement.
This provision is effective throughout the ratification
process. However, if a majority of the flight attendants
do not ratify the deal, this provision (along with
the rest of the agreement) goes away and we will be
treated like any other labor group that doesn't have
an agreement on concessions. That means management
will ask the bankruptcy judge to authorize the cuts
that the carrier proposed in its first concession Term
Sheet.
The company's first concession Term Sheet given to
the AFA Negotiating Committee sought cuts of $108
million per year, including a 15.5% cut in wages, a
cut in our pension formula, and massive cuts in our
health insurance that would increase flight attendant
out-of-pocket costs over 380% in the next four years.
In essence, a group without an agreement would be forced
by the courts to take the maximum amount of cuts but
would not share in profit sharing and other equity
returns built into our tentative agreement.
* Management still says it believes it can restructure
the airline outside of bankruptcy. However, a number
of factors still must fall into place. The other labor
groups must finalize their deals. The agreements must
be ratified. Creditors must agree to new terms of payment.
If any of those pieces fail to fall into place, management
will have to consider filing for bankruptcy. Today's
announcement (7/1) that management is not going to
pay some of its public debt obligations is an indication
that negotiations with some of its creditors may be
going slowly. And if those talks fail, just like if
the talks with the other labor groups fail, bankruptcy
will be a reality.
If our deal fails to ratify, and the airline goes into
bankruptcy (not a certainty, but from all indications,
very likely under this scenario), AFA will get a chance
to make our case to a bankruptcy judge concerning the
cuts management asks to make, in an effort to lower
the amount of cuts from the $108 million per year
management is likely to request. Our success in convincing
a bankruptcy judge that the cuts are too severe will
rest with the judges sympathies. Some judges are sympathetic
to workers. Some are not.
------------------------------------------------------------
Changes to our contract
------------------------------------------------------------
IMPORTANT NOTE: Changes that are set to begin on July
1, 2002 will not go into effect unless the contract
is ratified by a vote of the flight attendants -- those
changes would then be retroactive.
* Wages will be cut 8.4 percent, retroactive to July
1, 2002.
* Two percent raises in 2003 and 2004 will be eliminated.
* 'No furlough' clause will be deleted, however, flight
attendant jobs are protected to a minimum fleet size
of 275 aircraft outside of bankruptcy and 245 aircraft
in bankruptcy; if a furlough becomes necessary, management
will offer a voluntary furlough first, including 24-month
passes; if not enough voluntary furloughees apply,
involuntary furloughees will receive passes for one
year and will have bumping rights at MidAtlantic Airways
in seniority order; management will also offer a Voluntary
Separation Incentive Package in lieu of a furlough.
* Longevity Pay, Crew Meals (except transoceanic flights)
and Uniform Allowance will be discontinued until Dec.
31, 2008.
* Per diem increase scheduled for Jan. 1, 2003 will
be delayed until Dec. 31, 2008.
* Vacation Pay and Credit will be reduced by 10 percent
effective Jan. 1, 2003 through Dec. 31, 2004, snapping
back to current levels thereafter.
* Vacation Accrual rates will be reduced by 20 percent
between July 1, 2002 and Dec. 31, 2002. Vacation accrual
rates will be reduced by 10 percent between Jan. 1,
2003 and Dec. 31, 2008.
* Reserve Override will be eliminated July 1, 2002
through Dec. 31, 2005. It will snap back to $.50/hour
on Jan. 1, 2006 and will snap back to $1.00/hour on
Dec. 31, 2008.
* Health Care: All flight attendants will participate
in a national preferred provider organization health
care, dental and drug plan. Details of that plan will
be made available shortly. The new plan will mean health
care cost increases for most flight attendants.
* Effective Date: July 1, 2002 through Dec. 31, 2008.
Negotiations for a new agreement will open on Jan.
1, 2008. If no agreement is reached by July 1, 2008,
the parties will mutually file a request for mediation.
------------------------------------------------------------
Returns/Protections
------------------------------------------------------------
- Flight attendants will receive the benefits of a
profit-sharing plan on the same terms agreed to by
other employee groups.
- Flight attendants will also be provided returns in
the form of equity [details to come].
- Section 1113 Letter - gives flight attendants protection
against cuts greater than those in this agreement in
the event the carrier enters bankruptcy.
- Verification - If concessionary negotiatons with
ALPA achieve less than 85% of its savings target (based
on $90 million/$595 million per year savings relationship),
wage rates for the flight attendants will be adjusted
such that the flight attendants achieve the same percentage
savings target.
- Governance - Participating unions, including AFA
but not ALPA, will nominate a member to sit on the
US Airways Group, Inc. Board of Directors. A new Board
seat will be created for this position.
- Change in Control - In the event there is a change
in control of US Airways, flight attendant wage rates
will snap back to the June 30, 2002 level.
- Involuntarily furloughed US Airways flight attendants
will be provided job opportunities at MidAtlantic Airways
in seniority order and will retain the same contractual
rights and benefits as all other furloughed US Airways
flight attendants.
- Cameras in the Cabin - Should video monitoring devices
be required in the cabin during flight, the company
will meet with AFA in advance and negotiate the formulation
of policies regarding the use of such devices.
- Unable to Commute Policy (effective Jan. 1, 2003).
- Paid Personal Days (2 per year) will be granted based
on coverage and will be deducted from next year's vacation
if used (effective Jan. 1, 2003).
- Shuttle flight attendants will be placed on the mainline
vacation schedule.
- Bereavement Leave - grandchildren added.
- Salary Continuance - A flight attendant receiving
salary continuance shall accrue vacation and sick leave
for the first six months of salary continuance (effective
Jan. 1, 2003).
- Company will alter its drug policy so that the first
confirmed positive drug test will not automatically
result in termination.
Health Insurance Program
The information on the changes to our health insurance
program will be provided as soon as possible. Basically,
management wants all US Airways employees under a single,
national preferred provider organization.
Your Negotiating Committee worked hard to move management's
cost savings number from $90 million to $77 million
per year. We worked hard to structure the cuts in a
way that would have the least hurt. Regardless of our
efforts, these cuts are going to hurt. However, if
our carrier turns around and becomes profitable, we
will receive the benefits of those profits in the form
of returns. And we were able to provide protections
against more dramatic cuts in bankruptcy, as well as
other new gains for flight attendants. Of course, all
of these changes, returns and protections hinge upon
ratification of the agreement.
On July 1, the AFA US Airways Master Executive Council
met and unanimously voted to send the tentative deal
outlined here to the flight attendants for a ratification
vote. A majority of the MEC also voted to recommend
that flight attendants vote to approve the package
based upon the returns and protections it provides.
We will provide you will all of the details of the
tentative agreement in the days and weeks to come.
A schedule for road shows will be developed and posted.
And a date for the ratification vote will be set.
[ 07-02-2002, 01:26 AM: Message edited by: jetstewus ]