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In this Issue:

October 24, 2004

 

  • NEGOTIATIONS UPDATE
  • MONTHLY FLYING OBLIGATION

NEGOTIATIONS UPDATE

 

The latest Company proposal presented to AFA on October 20 can be viewed on the AFA US Airways website. The negotiating committee has been working throughout the weekend preparing a counter proposal to present to the Company early next week.   

 

Among other things, the COMPANY proposal contains a 15% pay cut, severely reduced vacation and sick accruals and pay, 50% pay for deadhead, the creation of a separate (B) pay scale for new hires and returning involuntarily furloughed members and the continuation of the LTO reserve system.  The proposal also seeks to freeze our pension and AFA agreeing not to contest the Company should they seek to terminate the pension plan in bankruptcy court. No provision to continue retiree medical for existing or pre 1/1/05 retirees is included in the proposal. The Company has indicated it plans to eliminate or reduce retiree medical benefits under section 1114 of the bankruptcy code.  The Company’s offer to “grandfather” pre 1/1/05 retirees in their earlier proposal would be rendered moot if they were to prevail in court. The variables regarding retirement continue to change but at this time you can not protect your retiree medical benefits by retiring before 1/1/05. The COMPANY proposal contains a voluntary furlough with no right of recall while offering an $8,000 pay out.  AFA estimates the value of the proposal to be far in excess of the $116 million target the Company claims to need.

 

This proposal attacks all seniority levels of our membership.  The elimination of retiree medical and possibly our pension are devastating to those who have dedicated decades of service to the Company. The reduced pay and drastic reductions to work rules and benefits will make it hard for anyone to do this job AND have any kind of life. A “B” scale will create a $16,000-$24,000 per year job flying 100 hours a month. Despite claims by the Company that the “airline is the employees” it appears they do not want any of us here anymore.  They are using the financial condition of the Company and the bankruptcy court to forever change the make-up of the workforce.

 

The proposal to AFA is very similar to the recently passed ALPA T/A. Many of the benefit reductions and work rule changes are the same. The Company leverage continues to be “what we are offering you is better than you can get starting out at another carrier”. While that may be true for ALPA, I do not believe that strategy will work on AFA.  Motivation for ALPA members is entirely different than for AFA members.  None if us want to lose our jobs but we are not necessarily willing to give up all the reasons we do it. The notion that all of us would flock to other carriers if US Airways liquidates is ludicrous.  It is insulting to work for a Company that believes we are all only qualified to be flight attendants. We have done this job because of the pay, benefits and long term promises made by the Company, not because it is all we are able to do.

 

We all know the Company is in trouble and we have agreed to help. Rather than accept our offer the Company has chosen to try to forever change the position. Rather than work with us to find “solutions” the Company has chosen to turn this into a short term job rather than a career. They claim that they have to be competitive with low cost carriers yet, even those they compare us to offer escalating pay scales and benefits that over time equal or exceed ours. While it is true that the LCCs do not offer defined benefit plans like ours, their profit sharing and equity programs actually pay off. Like I said in an earlier E-line they are trying to run a high cost carrier with a low cost work force.

 

The process will continue and we will counter their proposal. The Company has stated they will have to seek court solutions soon if we do not reach an agreement. An 1113c process to abrogate our contracts would result in more negotiations and ultimately a court ruling. The court could allow the Company to impose their last offer or worse either temporarily or permanently. In other words the outcome can not be predicted.

 

MONTHLY FLYING OBLIGATION

The Company notified AFA on Friday that pursuant to the 1113e court order they were going to increase the monthly flying obligation for all flight attendants by 5 hours or 1 ITD trip for October. In typical US Airways fashion the implications of this decision were not addressed prior to the implementation. It is unlikely that low block letters will be issued for those who do not get the additional 5 hours in for October. Crew scheduling has in fact been telling block holders that the additional 5 hours/1 ITD trip is “optional” for October. Reserves will have to add 5 hours/1 ITD trip to their obligation to be able to call out of time. I will update you as soon as we have been able to address this with the Company.

 

In closing let me add that I know everyone is disillusioned and dissatisfied. I know some of you think AFA is just sitting there letting the Company steamroll us. We are not. This is not about block holders vs. reserves; senior vs. junior or AFA vs. another alternative. This is about the survival of your career and your future at this Company. I have heard some members say they can not do a good job when they are at work. I don’t believe that is the kind of statement we need to make.  I am going to continue to work as hard as I can for you. I hope you will do the same for me.

Thank you,

MIKE FLORES
LEC PRESIDENT
COUNCIL 89
AFA-CWA AFL-CIO
704-527-0325 OFFICE
704-576-3174 CELL

© Copyright 2004. Council 89 CLT AFA -CWA US Airways - Council89@afausairways.org