The AFA-CWA Board of Directors meets once a year in order to conduct the annual business of our union. This year's BOD will meet October 16th -18th in Phoenix, Arizona. We have several important decisions to make this yea and I want to be sure each and every one of you are given the opportunity to read over Agenda Items #1 and #2 which are submitted for BOD approval. Please remember that the Board of Directors includes each Local President of each carrier represented by AFA.

Agenda Item #1

Should the 2007 AFA-CWA Board of Directors affirm and finalize the merger with CWA or should the 2007 AFA-CWA Board of Directors exercise the Opt Out/Termination Provision of the AFA-CWA Merger Agreement and ballot the membership for ratification?

The 2003 AFA Board of Directors adopted an agenda item approving a Merger Agreement with the Communications Workers of America (CWA).

The agenda item mandated that approval of the AFA-CWA Merger Agreement would be submitted to AFA members for a vote. In December 2003 AFA members voted to approve the Merger Agreement. The Merger Agreement became effective on December 31, 2003.

The four-year Opt Out/Termination clause of the AFA-CWA Merger Agreement expires on December 31, 2007. If the 2007 Board of Directors does not invoke the Opt Out/Termination clause then the AFA-CWA Merger Agreement is finalized and the Merger Agreement remains in place.

Agenda Item #2

Should the AFA-CWA adopt the CWA average dues of $43.00 or a Sliding Scale that generates the same amount of dues revenue?

The AFA-CWA Merger Agreement stipulates that after 48 months from the date of the merger the AFA-CWA dues structure would be determined by the AFA Board of Directors and would be equal to the average monthly dues of CWA members. The current CWA dues average is approximately $43.00.

The Board of Directors may decide to adopt a flat rate of $43.00 or adopt a "Sliding Scale" dues structure that generates the same amount of dues revenue as the flat rate of $43.00. A sliding scale may be structured with minimum dues, maximum dues, and a percentage of either one's actual W-2 income, one's 'potential' income, or one's hourly rate of pay to generate the anticipated dues revenue requirement.

A potential sliding scale scenario could include a percentage of about 1.5% with a minimum of the current $39.00 and a maximum of $45.00. A sliding scale will provide that lesser paid members who do not have the ability to earn as much other members will be required to pay a somewhat lower amount of dues, A sliding scale may provide that dues will only increase when income is increased, and will also provide that dues may decrease if income is decreased.

A sliding scale will continue to meet the CWA dues average for future years, eliminating the requirement to conduct an annual debate to ensure we continue to meet the CWA average.

LET'S REVIEW:

Following the tragic events of September 11, 2001, AFA had a drastic reduction in members as airlines were furloughing, voluntary personal leaves were granted and many carriers were on the verge of bankruptcy. With the resulting loss of revenue, AFA actively sought a merger partner to help represent our flight attendant groups who were facing an uncertain future.

After reviewing the merger possibilities, the AFA Board of Directors voted to merge with the Communication Workers of America (CWA). After the BOD voted to approve the merger, it was then the responsibility of the members themselves to decide the future of AFA. The majority of flight attendants voted to merge our unions, so here we are today with the decision to stay with CWA or revert to a stand-alone entity.

In the Merger Agreement with CWA, union dues were to remain at $39.00 for the first four years of the merger and if AFA decided to remain with CWA beyond the four year opt out period, dues would then be the average of the CWA members. During this four year period CWA covered the budget shortfall produced by AFA and also provided many necessary services during the numerous bankruptcies facing the flight attendants represented by AFA. During this time either party, CWA or AFA, could terminate the merger between the two unions up to December 31, 2007. After that date, the two unions would be merged and, according to the Merger Agreement, AFA dues would reflect the average dues of the CWA members.

Please note that AFA has not had a dues increase in 14 years.

AFA Dues History:

1976 thru 1978 $14.00
1979 thru 1980 $18.00
1981 $21.00
1982 $23.00
1983 $25.00
1984 thru 1986 $26.00
1987 thru 1988 $33.00
1989 thru 1993 $34.00
1994 thru present $39.00

Four Possible Scenarios:

• AFA opts out of the merger with CWA and dues remain at $39.00.

This scenario would have immediate and drastic results for AFA and its members. The services provided by AFA to its members would be dramatically reduced, if not eliminated altogether. This would put the union at extreme risk. Many of the departments that provide essential services would be dramatically cut back or could possibly be eliminated.

• AFA opts to merge with CWA and dues would be equal to the average of all CWA members.

If the BOD votes to stay with CWA and allow the opt out period to expire, our dues would reflect the CWA average. The current average for CWA members is $43 a month. Services would remain the same including Legal, Negotiations, EAP, Air Safety, Health and Security and Government Affairs. AFA would continue our organizing drives to make sure that all flight attendants are represented by unions. Why is this important? As we found out during the bankruptcy process, all flight attendant groups are compared to one another in terms of their respective costs to the company. Those not represented by a union and without a contract have a detrimental impact on unionized groups during these difficult times, especially during contract negotiations.

• AFA decides to opt out of the merger with CWA and raise dues to $43.00.

Many of the functions and services currently provided by AFA are being accomplished with CWA staff and infrastructure (such as computer systems and office space). This is not reflected in our bottom line but would have to be replaced by additional personnel, equipment, rent and moving costs. AFA would still be faced with a budget shortfall and this option would still put the union at risk. In the future, if AFA were to find itself again in need of a merger partner, we can only imagine that there would not be many takers given this type of result with CWA.

• AFA decides to opt out of the merger with CWA and maintain all the services currently provided to its members.

If AFA decided to go this route and maintain all the service currently provided, the dues would have to increase to $49.00.

Please attend the next Council 89 meeting on Wednesday, November 7, 2007

Mark your calendars for the next scheduled Council 89 Meeting on November 7, 2007 from 10:00 am until 2:00 pm, B-11 Conference Room (next to the crew room). Your International President Pat Friend will be here to discuss the outcome of the above referenced Agenda Items submitted to the Board of Directors and the impact of these decisions for the next several years.