COUNCIL 41

"Q & A On the Flight Attendant Contract Vote"

I am a 14-year flight attendant. I was elected AFA Local Council 41 President by the DCA flight attendants to represent you and give you my opinion on important issues.

Management has said it will move to close down and liquidate the airline if the cuts we are voting on are not approved. I strongly believe that these cuts will be very hard on me, but the alternative is a great deal worse. I am of the belief that, if I cannot live with these cuts, I want the airline to continue to operate because it will be easier to find a job while I still have one. 

During the summer I advised you that it was not a matter of "if" the Company was going to file bankruptcy it was a matter of "when." Others believed that US Airways would never file bankruptcy. These same individuals are now out there making up false scenarios in an attempt to scare and mislead you into voting against this proposal (or even not voting at all). What they fail to offer is a viable alternative, and they are risking your job in the process.

There are those who say, "let the Company liquidate." If you are that unhappy and are not willing to work under the new rules, then I believe it is time to move on. Consider all your friends who may decide to stay and try to make it work. Some of your co-workers really need this job, even if it's going to get worse. Their families' livelihood depends on it. Give them the chance.

Many people are seeking answers to legitimate questions. I want to provide you the information so you can make this very difficult decision. This will be the toughest decision of our careers and not one to be made based on lies and intimidation. 

I am not afraid or ashamed to tell you that I voted for this agreement.

It's your future - make sure someone else doesn't decide it for you. Get the Facts and Vote!

Are we voting on a "blank check?"
NO. We are voting on guidelines to implement a Preferential Bidding System and a new reserve system. Both systems will need to be negotiated long before implementation. The reserve system is a huge change from our current system, which is based on seniority. 

Are these cuts necessary for the airline to survive?
In my opinion, NO. The Company has reached far beyond what was necessary to compete in the industry. However that is not what you should base your decision on. Your decision should be based on whether or not David Bronner (of the RSA group that is providing our funding) will honor his word and move to liquidate the Company if the labor groups do not ratify their agreements. Your AFA leaders were told that if one group did not ratify their agreement the Company would shut down and file Chapter 7 (liquidation). Is this the best business decision? Probably not. However, Dr. Bronner is a businessman investing the pensions of working families, I believe he does not want to lose that money and will keep his word when is comes to liquidating the Company.

Are there are other investors banging down the door to invest in US Airways?
Ony two (2) investors came forward and were willing to invest in US Airways during bankruptcy. Texas Pacific Group (TPG) and Retirement Systems of Alabama (RSA). TPG was the original bidder. RSA out bid them. TPG never even tried to outbid RSA, TPG just walked away. This is what you have to consider before voting. GE Capital recently invested money in US Airways during bankruptcy and out of bankruptcy. GE Capital was already a large creditor of US Airways and to avoid losing a great deal of money they agreed to rework leases and invest money for a 5% stake in the Company. This was GE Capital's way of getting back some of its investment in US Airways, rather than risking losing it all in a liquidation. 

Will there be more furloughs when these new productivity rules are implemented?
YES. However, there must be a Voluntary Furlough before any involuntary furloughs. Remember, if this proposal passes, the agreement contains a guarantee that the minimum aircraft fleet will be 279, which is the number of aircraft we are flying today. That will limit the number of additional furlough that take place. The alternative is that management threatens a fleet of zero if the deal fails.

Some people are saying that the Company owes the flight attendants millions of dollars in credit for the Voluntary furloughs and mistakes in calculations, which should mean these additional cuts are not necessary, is that true?
In these kinds of negotiations, we get credit for the savings the airline sees as a result of changes to our Agreement. What some people are saying is that we should get credit for money management is saving when it takes advantage of clauses that were already in our agreement. For example, we do not get credit when management used the voluntary furloughs section of our contract and eliminated the extra positions on the aircraft because we have minimum staffing levels, which are maintained and we already had a voluntary furlough clause. This is the same for everyone, even pilots. While I don't like it, the process is standard in not just this industry, but in every industry. It is working the exact same way at United Airlines right now as they are in negotiations for contract cuts during their bankruptcy.

Will the Company really file Chapter 7 (Liquidation)?
While I believe it would be a poor business move to liquidate because one employee group does not ratify their agreement, it's not my decision. It's management's and David Bronner's. Remember, US Airways is trying to keep the $300 million dollars invested by David Bronner plus the additional $200 million. His threat is simple, if he does not get what he wants he is leaving -- and taking his money with him. TPG, the original financer of US Airways in bankruptcy, left willingly and without a fight when Bronner made his bid to fund our bankruptcy. And no one else filed a competing bid with Bronner's. Since Bronner's bid was accepted by the airline, he also now holds a certain standing with the bankruptcy court. If he recommends liquidation, the court would seriously consider it, especially if no one else stepped forward with a new plan (and like I said, there is no evidence that someone else is willing to invest in our airline at this point).

Did AFA negotiate with the Company to reach this agreement?
YES. While it is true that we went last, we still negotiated what we could. There wasn't much room. Management stated how much it needed in savings, and got that amount from every labor group. When it came time for us to finally talk, we said absolutely not to a few things, and were able to marginally temper some of the cuts (for example, our health care premiums will still be lower than pilots and management, which management did not want to do). The only reason we were negotiating was that management was threatening to shut down the airline and eliminate all of your jobs if we failed to reach an agreement. And as your representatives, we absolutely believe it is your right to make that decision by voting.

If I don't vote it will be a "yes" vote anyway?
NO. If you don't vote, your vote is not counted. Just like in an election for U.S. President. But if you don't vote, you are leaving the future of your job to those who are willing to risk it because this rumor was started by those who want to see this vote fail (and are willing to risk the shut down of the airline). They are trying to convince everyone who might vote "yes" to not vote. That's why it is so important for you to vote. You know that the radicals out there who are willing to risk the closure of the airline are voting. Make your voice hear. PLEASE VOTE! https://www.ballotpoint.com/afa/

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Bob Kenia, LEC President 703-690-6859 Office 703-690-9350 Fax	Alin Boswell, LEC VP 703-212-8090 office 703-212-8089 fax	Katie Whitney, LEC Secretary 703-719-6940 office 703-719-6935 fax
bkenia@afausairways.org	alin@afausairways.org	kwhitney@afausairways.org