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October 11, 2004 |
BANKRUPTCY UPDATE
The bankruptcy court will reconvene tomorrow, October 12, to continue hearing the Company’s request for emergency relief under section1113e of the bankruptcy code. As you know the Company is asking the court to impose a 23% pay cut and increase our monthly flying obligation. AFA attorneys are arguing against that request. The argument focuses on the severity of the pay cut, the duration asked for and whether a 23% pay cut is equitable in comparison to management give backs. AFA is well aware of the financial condition of the Company and has proposed a great deal of relief. We are willing to continue negotiating but we will not allow the Company to overreach. . AFA has continued to try to achieve both an interim and a long term agreements with the Company out of court, but has been unsuccessful to date. The Company proposals for both agreements continue to deteriorate to unacceptable levels. The negotiating committee and the MEC believe our efforts should be focused on a long term agreement. In other words we have two battles going on. We will be ready with an interim agreement if we need to present one to the court and we will continue to focus on achieving a Tentative Agreement with the Company.
OCTOBER 7 CLT COUNCIL MEETING
I want to thank those of you who attended the council meeting last week. For those not able to attend a brief synopsis follows. The main focus of the meeting was to provide an understanding of what has transpired between AFA and the Company since the Company’s presentation of the Transformation Plan to AFA in May. I outlined the proposals traded back and forth between the Company and AFA since July. I outlined our strategy both inside the bankruptcy court and out. A question and answer period followed.
RETIREMENT QUESTIONS
It has been brought to my attention that there is a rumor circulating that I have encouraged people to retire or submit retirement papers. I have not. The Company’s September 10 PROPOSAL contained a section regarding the elimination of retiree medical benefits. Specifically the PROPOSAL contained language “grandfathering” in those already retired or those who retired prior to 1/1/05. This caused an increase in those sending in retirement papers to beat the deadline and be included in this group. This was a PROPOSAL not a CONTRACT and therefore I advised anyone who contacted me as such. The Company can seek to end retiree medical either through negotiations or in court. To date they have not asked the court to end retiree medical benefits but rather have proposed that to AFA. I will not advise people to make a decision based on a PROPOSAL. Obviously the Company would like Senior F/As to leave. Last year United Airlines encouraged over 2500 United Flight Attendants to retire early with the offer of continued retiree medical benefits only to later pull the rug out and drastically raise their premiums. AFA has been asking the Company for clarification of their intent and to review the deadline for notification of retirement so that if a PROPOSAL containing this issue is ratified a suitable time period will exist for people to make an informed decision.
A decision to retire is an individual one that should be based on fact. Please be aware of the following facts:
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Our retirement plan remains in effect
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The Company can only terminate it in Bankruptcy Court.
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Our plan is covered by the PBGC if the Company terminates it or liquidates.
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A decision made to retire now based on Company proposals is speculative.
EAP INFORMATION
Our MEC EAP Chair, Deb McCormick, prepared a flyer with important contact information for our members regarding various programs and assistance available to us during this time. It was available at our meeting and will be in the crew rooms this week. Our local EAP co-chair, Alan Holmes, has added some more locally specific information to this and it is reproduced below. This is for information purposes only and none of the resources listed are connected to this office or the EAP committee.
Please continue to fly safe and call our office with your question and concerns.
Thank you,
Mike Flores
LEC President Council 89
704 527-0325
704 576-3174
“Managing More With Less”
Managing more expenses with a smaller paycheck is all too familiar and stressful for working American families these days. Your AFA EAP wants to remind you of the services and programs listed at our web site that may be particularly useful in this difficult economic environment. Go to the EAP section of
www.afanet.org to view such resources as:
- Credit and debt counseling agencies
- Union privilege loans, credit cards and mortgages
- Low cost health care services
- Low cost insurance for children
- List of Airlines that are hiring
- Unemployment benefits by state
- The Resource Guide “When The Paycheck Stops.”
- And of course, your local AFA EAP Committee Members
Please remember, if you need help, do not be afraid to ask. Apply for services and programs for which you may qualify. Personal pride sometimes makes it hard for us to ask for help, particularly for the first time. However, remember you have helped pay for many of these assistance programs through your taxes and past contributions. Therefore, you are making your money work for you now- when you need it most.
Local Resources For Charlotte Based Flight Attendants-
Resume’ Preparation- Call Champa at C. P. Resume’ at 704-522-1370
Debt Consolidation Service-United Way’s Consumer Credit Counseling Division Of United Family Services-
Look for the CCCS tab on their web site at www.unitedfamilyservices.org
or call 704-332-9034 and request a package. This is a way to avoid filing for personal bankruptcy.
Mortgage Refinancing- The following lenders have special packages in place for USAir employees and are waiting for your call:
New World Mortgage-- Call Simon Brais at 704-549-4600, ext 1047. Simon is a former USAir employee. His cell number is 704-965-6653.
Chase Home Finance-- Call Brenda Callicutt at 704-558-1202 ext 207, or toll free at 866-846-3245. Brenda works with several USAir employees who are also Realtors.
First Trust Mortgage-- Call Roy Dunn at 843-446-4663. Roy is married to a USAir Flight Attendant. His web site is
www.grandstrandmortgage.com.
And also, don’t forget that an AFA EAP committee member is just a phone call away:
Charlotte AFA EAP/PS/Critical Incident Committee-
Lucy Mosby 704-299-0658
Whitney Deyerle 386-853-0313
Alan Holmes 704-408-1181
Jacqueline Anthony 704-579-0857
AFA International Helpline 800-424-2406
For ITD Flight Attendants Or Those Non-Reving to Europe-
We have discovered recently that many Hospitals or other Health Care Providers in Europe don’t automatically accept our Blue Cross Blue Shield card in the manner accepted in the United States. If you are injured or taken ill while traveling in Europe, IT IS UP TO YOU to contact the BCBS International Help Desk, along with MEDLINK right away. Don’t count on the Hospital having done this for you, as they often won’t. This will make BCBS aware of your status and will get the ball rolling on your being approved for coverage. Failing to follow these steps may result in your being responsible for your bill up front before you will be discharged.
BCBS International Help Desk- 1-800-810-2583 or 1-804-673-1177
MEDLINK- 1-602-747-9622
As always, if you are injured or taken ill abroad, contact your US Airways Supervisor right away, as well. Make sure that you leave them a contact number where they can call you back.
Thank
you,
MIKE FLORES
LEC PRESIDENT
COUNCIL 89
AFA-CWA AFL-CIO
704-527-0325 OFFICE
704-576-3174 CELL
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