• SPECIAL MEC MEETINGS
• FORT LAUDERDALE HUB
• LETTER TO DR. BRONNER
• GLOBAL BID CLOSING

SPECIAL MEC MEETINGS

The MEC held special meetings on Thursday and Friday of last week.  The Thursday meeting was held to elect a member to the US Airways Board of Directors for the AFA/TWU seat. We received this seat as a result of our July 2002 Restructuring Agreement.  MEC President, Perry Hayes , has filled the seat on a temporary basis since that time. The MEC and representatives of the TWU elected Thomas Harter, Sr. VP of The Segal Company to fill the seat. Mr. Harter’ experience is in the area of compensation and benefits. He has served on numerous other Boards in his career. My gratitude is extended to Perry for his able guardianship of our seat while we looked for a permanent appointment.

On Friday the MEC met with the Negotiating Committee to review the Company’s most recent proposal to AFA. The Company continues to make few meaningful changes to their initial proposal. In many ways their latest proposal is worse than their first. The MEC’s position continues to be to negotiate within the context of our current agreement. The Company position to date is to present us with a proposal that is drafted from JetBlue/America West. In my view the Company proposals continue to deteriorate in an effort to force us to respond solely to those decreasing terms. The MEC and the negotiating committee remain steadfast in our desire to achieve an agreement based on changes that benefit both parties. Ladies and gentlemen the Company is playing hard ball here. For example their proposal offered very little change to the reserve system even though they have offered to fix the system. We will propose a reserve system based on seniority. The Company has moved off the PTO for vacation and sick and instead proposed a maximum vacation accrual of 21 days. Basically, the Company is acting as if we should all be compensated as new hires.  The MEC will not counter this type of proposal item by item. We all realize the financial constraints faced and are willing to work toward constructive solutions. It seems as though rather than try to reach constructive compromise the Company is trying to use their financial situation as leverage.  The Company claims to not want to enter bankruptcy yet continues to offer proposals that in my view are intended for bankruptcy court. Our counter will be presented to the Company this week. When it has, both proposals will again be published for your inspection.

FORT LAUDERDALE HUB

As you may be aware, US Airways announced on Monday the creation of a Fort Lauderdale Hub. By more than tripling its schedule in FLL the Company will add new Latin American destinations and increase frequency to existing destinations. A cautionary note however, this does not mean FLL will become a base. The Company is trying to increase revenue and I believe they may actually have a good idea here. Click on the link below for more information.

http://us.rd.yahoo.com/finance/industry/news/latestnews/*http://biz.yahoo.com/prnews/040823/nym054_1.html

LETTER TO DR. BRONNER

I sent this letter to Dr. Bronner of the RSA by email and FAX today.

Dr.David G. Bronner

CEO Retirement Systems of Alabama

PO Box 302150

Montgomery , AL 36130

Dr. Bronner:

Today’s announcement by US Airways regarding our “major expansion” at Fort Lauderdale Hollywood International Airport is a very bold step in our transformation. Having been a Florida resident for many years I see the opportunity for USAirways to increase revenue and compete in the region. I am glad to see the company pursuing this strategy.

However, I was not glad to read remarks attributed to you in various media reports last week. As the Local Executive President of AFA Council 89 (Charlotte) I must take exception to your position.  Labor at this airline has participated in two restructuring deals that have reduced our salaries and lifestyles. Labor is again at the table considering further cost concessions. To imply that we are an impediment to the future of the company is wrong sir. We may not be proceeding at the speed you would like but I can assure you no one is thinking a bankruptcy filing would be a better deal for us.  For you to state otherwise, is in fact untrue. We are all aware of the financial deadlines that US Airways faces. The choices we are making at the negotiating table are considerable and will have long lasting implications. We are trying to provide a future for ourselves and US Airways.  To refer to the employees and our contracts as liabilities is insulting. 

Despite a high level of anxiety over the future, the employees of USAirways continue to provide outstanding levels of service and safety every day. Our customers continue to fly and support US Airways. Union leaders continue meet with the company regarding cost cutting measures.  News from you detailing the impending liquidation of the company undermines all of our efforts to succeed.

On Friday Mr. Lakefield “reassured” everyone that your comments were simply borne of frustration and the impending demise of the airline was overstated.  A good spin, but in my opinion he should not have had cause to contain the damage.

Believe it or not the employees realize a transformation of the company is a necessity. Our only hope is that it is a complete transformation, not one based solely on your employees.

Respectfully,

Mike Flores

LEC President

Council 89

AFA-CWA

704 527-0325

GLOBAL BID CLOSING

Please remember that the Global Bid that was reopened will close on August 25, 2004 at 12 noon EDT . The bid was reopened as a result of the loss of PIT ITD flying. If you did not bid PIT ITD in the initial bid you do not have to submit a new bid, however you can change your initial bid during this time. The link below will take you to the form on the hub.

http://thehub.usairways.com/divisions/operations/inflight/forms/GlobalBidForm.htm

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