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Dear Council 41 Member:
On Friday October 15 Superior Court Judge Mitchell ruled in favor of the Company's 1113(e) motion to reduce the pay of unionized employees by 21% for a duration of 4 months (February 15, 2005).
Initially the Company was seeking 23% for 6 months. In Judge Mitchell's ruling he stated it should not be an "end run". Not a great deal of help for us. Let me start from the beginning to clarify what has happened and where we are going.
WHERE WE HAVE BEEN AND WHERE ARE WE GOING
Early this year management asked us (and all labor) to enter into negotiations due to the fact their plan for exiting bankruptcy in 2003 failed. At that time and for months afterward we asked to see the "books" and the Company's new Transformation Plan. It was like pulling teeth, finally during the summer management presented their plan which I wrote about in a previous newsletter.
Transformation Negotiations
The MEC voted in July to begin negotiations. The Company asked us for $116,000,000.00 per year. Our position was that we would negotiate changes and cost reductions but not $116 million. AFA and the Company's proposals can be viewed on the AFA website. Your negotiating committee offered changes that would keep some flexibility for the flight attendants and a significant cost savings to the Company. Management did not budge, when they were attended. We continued to try and negotiate.
Bankruptcy
On September 12, the Company filed bankruptcy because they could not make the September 15 pension payment of 110 million dollars. At that time the playing field changed. Our negotiating committee continued to be available even though we were not required to do so under the law. The Company's "ask" of 116 million changed to various levels above 116 million.
1113(e)
In a previous email I explained the various motions that can be filed by US Airways: 1113(c), 1113(e), 1114. Obviously, the Company filed the 1113(e) on September 22. This was for an immediate 23% pay cut for all unionized employees. This 23% amount was approximately half of the $116 million the Company was asking for however they were still seeking the larger amount in a complete transformation agreement. AFA then switched gears and tried to negotiate a reduction of the 23% by spreading it out over other areas of our agreement. Each counter proposal from the Company during this round moved farther and farther from an agreement. It was obvious they wanted the "23%" motion to go before the judge.
The pilots have a tentative agreement that is being voted on now and the dispatchers already have a "Transformation" agreement that included severe cuts.
What Now?
We will now, outside of the 1113 motion, continue to negotiate a transformation agreement that could change the 21% pay cut and spread it over our entire agreement. Should US Airways file an 1113(c) motion, we will be required to negotiate for a specified amount of time and if an agreement is not reached under that motion an agreement will be imposed by the judge. Negotiations will begin again this week.
Negotiate or Face the Judge?
Many members have stated they feel they will be better off in front of the judge. What did he do for us Friday? If we get to the point under the 1113(c) motion where an agreement will be imposed, do not believe that the judge will negotiate for us. He will impose one of the last offers on the table. It is in our best interest to continue to negotiate.
Role of the Judge
While we offered compelling testimony about how much money we already gave, how unfair management is, what poor management we have or had, lack of a plan, etc. the role of the judge is to keep US Airways a viable company. In my opinion he probably is not prepared to add to the unemployment figures of the country.
Company's Willingness to Meet
During testimony Senior VP Bruce Ashby testified that he only met with AFA 5 times since negotiations started and 33 times with ALPA. We have tried to come to an agreement; the Company has not been willing/able to negotiate.
What Can We Expect
Many people have asked: are we keeping the options? What will happen to my vacation? Etc.
Prior to filing bankruptcy AFA and the Company exchanged proposals offering sweeping changes in the way we work. That was before bankruptcy. What will happen now is unknown. We will continue to pursue changes to our agreement that will maintain flexibility and save money.
Reserves
The Committee is determined to change the current system to allow for more flexibility. However the time balance reserve system is working monetarily for the Company, they are not anxious to change. If there were an option I would seek to provide more hours per month (greater than guarantee).
Retirees or Soon to Retire Members
Several proposals prior to the Company filing bankruptcy included concepts about retiree medical benefits. Keep in mind these proposals from the Company were before bankruptcy. There is no guarantee at this time retiree medical will be available. The Company has the ability to file an 1114 motion that would seek to eliminate medical benefits for retirees. They have NOT filed that motion as of this date. We should know more over the next month so that many of you can make a decision soon.
Management Cuts
One aspect of our argument in court was the fact that the cuts were not fair and equal. Non unionized employees including the Inflight Offices (from the VP on down) and staff did not receive the same cut you did. In fact non unionized employees received an average 4% pay increase this year; we received a 2% increase. Non unionized employees are taking a 5-10% pay cut, you are taking 21%. You do the math!
AFA Defense
The AFA legal team did an outstanding job on our behalf including testimony from our independent analyst and DCA flight attendant Stephanie Mahoney. On behalf of all the officers we would like to thank Stephanie and all the other flight attendants that volunteered to testify in court about how the 23% cuts would affect their life. THANK YOU!
Our legal team is ready for any and all motions that may be filed by US Airways.
YOUR NEGOTIATING COMMITTEE
I have known these members for many years. I have complete faith in their ability and compassion to work out an agreement. The outcome of the agreement will be difficult to say the least, but I will be able to sleep nights knowing they did the best anyone can do.
Recently an e-line was sent to all registered members by mistake. The e-line was actually an update from the MEC President to the MEC. It stated the committee would take a few days off, regroup and meet during the week. In fact it also stated "Carol has not been home in over 3 weeks" The emails from the members has been unbelievable to say the least. While we have all taken pay cuts including the negotiating committee it is appalling that some members do not feel the committee should have a few days to rest after weeks of working. Some members wrote about the "self-serving" leaders. I have to defend this type of slander. For those of you who know me I only back true union leaders, people who work for the members. For those who wrote and you know who you are I ask that YOU step up to the plate and offer your services. Trust me, I understand this will be difficult for all, but your anger should be directed towards management. It was their plan that failed not ours.
Thank you to all who wrote with kind words and constructive criticism. Make no mistake this is your union you have the right to voice your opinion but remember we are flight attendants just like you. We are doing our best in the absolute worst of times.
I wish you all the best.
In Solidarity,
Bob Kenia
Washington-Council #41
AFA EAP Committee
Kathy Vieweg 540-687-3737
Annette Hill 703-212-0580
AFA EAP International Helpline
1-800-424-2406
ID's on the RAMP
Keep in mind that you must wear your ID on the OUTERMOST garment. This is especially true if you are on the ramp. If you are challenged please do not argue. The ramp personnel must challenge everyone who is not compliant. It means their job too!
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 to 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 the most.
Do not forget of course, that an AFA EAP committee member is also just a phone call away!
This newsletter was sent via e-mail and placed in all flight attendant mailboxes.
Sign up HERE
or www.afausairways.org
and Click on the Washington page.
COUNCIL 41
Association of Flight Attendants, AFL-CIO
Committee List
GRIEVANCE
Bob Kenia - Alin Boswell
EAP (PRIVATE, CONFIDENTIAL NUMBERS)
Annette Hill
540-687-3737 703-212-0580
ahill@afausairways.org
AFA EAP International Helpline
1-800-424-2406
SAFETY
Christine Stout Denise Beaudoin
703-262-0905
dbeaudoin@afausairways.org
PLEASE LEAVE ALL SAFETY WRITE-UPS IN CHRISTINE'S MAILBOX
LEGISLATIVE AFFAIRS
Alin Boswell Lori Vitto
202-297-3610
lvitto@afausairways.org
CREW ACCOMMODATIONS
Rick Poloway Please place all Hotel write-up in Rick's
rpoloway@afausairways.org
202-364-9943
UNIFORM
Scott Haskell
shaskell@afausairways.org
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