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November 14, 2004 |
US AIRWAYS FILES MOTION TO REJECT LABOR AGREEMENTS
On Friday November 12, 2004 US Airways filed a motion in US Bankruptcy Court in Arlington, Virginia seeking to reject the labor agreements for the Association of Flight Attendants (AFA), The Communications Workers of America (CWA) and the International Association of Machinists (IAM). The motion also seeks to eliminate the defined benefit retirement plan for AFA and the IAM and to "reduce retiree health benefits" for all groups. The 120 page filing states that US Airways "must achieve labor costs consistent with LCCs (low cost carriers) in order to survive." The filing requests the need for pay rates comparable to America West. Their latest proposal of a 15% pay cut would result in pay scales 10% below America West for most US Airways Flight Attendants. With regard to our pension and retiree medical benefits the Company's position in the filing is that since LCCs do not offer theses benefits US Airways must terminate or reduce ours in order to compete. A hearing date has been set for December 2, 2004. I expect the hearing to take several days if not longer. By comparison, the interim relief hearings (21% pay cut) lasted a week. The court has 30 days from the initial hearing date to decide whether to reject our contract or keep it in place. The Company indicates in the motion that if they are allowed to reject the contract they will impose their last proposal in its place. The negotiating committee is meeting with the Company and is expecting to receive their LATEST proposal. It is unclear as to whether that will be their LAST proposal as both sides are required to continue negotiating until a decision is reached by the court. What is clear is that the Company remains on a path that, if successful, will allow a high cost/full service airline using low cost labor to emerge from bankruptcy. In other words they want us to pay for it all by reducing pay, work rules and long term negotiated benefits to levels below any standard that currently exists.
The Company continues to move their cost savings target for AFA yet maintains the "hope of reaching a consensual agreement". AFA will continue to negotiate with the Company in an effort to reach an agreement that is in the best interest of BOTH parties. While AFA is aware Bankruptcy Court is not a friendly place for employees, we will not let the Company use threats or intimidation to extract more from our contract than is needed for the Company to remain in business and become profitable. I do not believe it is necessary to impoverish ourselves to save the Company. For now, NOTHING has changed in our contract other than the 21% pay cut and the increased flying obligation. Do not let any supervisor, scheduler, pilot or any other employee tell you that anything else has changed.
MONTHLY FLYING OBLIGATION
Pursuant to the Bankruptcy Court's order, the monthly flying obligation has been increased for November by 5 hours for domestic F/As and 1 trip for ITD. The court order allowed the Company to make its own determination as to when and where they could impose the increase. For November both CLT and CLW have been mandated to meet the increased obligation. This means it is MANDATORY for ALL CLT and CLW flight attendants to increase their flying obligations. The rumor that the increase is optional for blockholders is FALSE. It remains unclear what the Company's intentions are regarding F/As who through no fault of their own can not reach the increased obligation. In true fashion US Airways has not considered the real impact of this order. In an effort to "protect the scheduled operations" I believe they are actually increasing their labor costs. The net result of the order is that blockholders are picking up extra time while reserves sit idle. The average reserve time flown is decreasing thus the "under guarantee pay" is increasing. While still having to pay every reserve their guarantee AND pay additional time to blockholders the payroll costs would have to rise. I am living proof that it does not take a genius to figure this out.
MEC MEETING
The MEC meeting last week recessed on Thursday afternoon. The meeting will remain in recess until the conclusion of the AFA Board of Directors meeting scheduled to begin on November 16, 2004 concludes on November 19, 2004.
Following Tuesday's elections (see my 11/10/2004 e-line) Wednesday was spent in closed session with the MEC being briefed by the negotiating committee and our attorneys. The negotiating committee and the MEC discussed our latest counter proposal to the Company. The proposal will be posted on the web site after it has been given to the Company. The Company has indicated that they intend to offer us a counter proposal this coming week. Our attorneys briefed the MEC on the expected 1113 motion to reject our contract and the court process to follow. It is our hope not to have to defend our contract in court but, if we have to, we will and I was happy with our attorneys' remarks. Our goal of reaching an agreement that serves both parties remains but we will be prepared if the Company makes that goal impossible. Thursday's session included roundtable discussion, unfinished business and remarks by the International Secretary/Treasurer, Paul MacKinnon.
Thank you,
Mike Flores
LEC President Council 89
AFA-CWA AFL-CIO
704-527-0325 OFFICE
704-576-3174 CELL
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