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NEGOTIATIONS UPDATE

PART I

What is the status of our single agreement negotiations?

Over the last several weeks I have attended several local council local meetings to update those in attendance of the status of the single agreement and the negotiations process. I want to report to you what has been discussed at those meetings.

The goal in the single agreement negotiations is rather straightforward - take two low costs contracts and not stop negotiating until a single agreement is reached that provides our members with the wages, work rules and benefits that each member deserves in order to provide for themselves and their families.

The process involves a three party negotiation- AFA East and West negotiators assessing the differences in the two agreements and deriving proposals that meet the stated goal. Although the current West and East negotiators have, at times, had different opinions and concerns, those concerns have been addressed and resolved in a manner we believe is fair to both memberships. We have resolved seniority issues and the differences between a one base vs. a multi-base system using AFA policy and existing language present in both the East and West agreements.

As you may know, the West has voted in a new LEC/MEC leadership slate. It is my hope the spirit of cooperation the current Joint Negotiating Committee (JNC) share will continue. This Union and committee must remain unified if we are to attain the necessary improvements in our contract.

Our focus has been to develop contractual provisions that address the real issues in our members' lives-the ability to earn a living, maintain our careers and provide for our futures.

At times these Elines seem like "blah, blah, blah". I can assure you we have made many improvements in the Sections that we have either reached Tentative Agreements or have tabled. Below is a recap of some of the contractual provisions we have made improvements to:

• 100% pay/credit for Deadhead.
• 3+30 pay for Training.
• 16 hour maximum day (including report and release times for deadheads) for Training.
• 3+30 for a travel day associated with Training.
• Automatic removal and pay protection for the entire crew for a trip in the event of a safety related event such as an evacuation, decompression, fire/smoke on board, passenger death, injury to a Flight Attendant that results in medical personnel being called to the aircraft or turbulence that results in passenger or crew injury.
• Company responsibility for cabin cleaning at the end of a Flight Attendants duty period.
• Contractual provisions that require the Company to ensure that catering items and lavatory supplies are properly stowed on board the aircraft (not just dumped on the galley floor).
• Improvements to the Reserve Section, including a shift system and OPR pay when an OPR is assigned a trip (refer to the February 16, 2008 Eline- http://www.afausairways.org/Eline/feb16_08.htm)

We are entering into a critical phase of the negotiations. The major "money" sections of the Contract-Scheduling, Expenses and Compensation are still to be negotiated. The Company has informed the JNC they will present a Scheduling proposal to the JNC during our May 13-15 session.

We still have not reached consensus with the Company in either the Sick or Reserve Sections. We are not leaving the table without 100% pay/credit for Sick and a livable Reserve system. We have also not reached agreement with the Company regarding pay and accrual of vacation days.

The process has been long and arduous. In some ways, the Company has the advantage of an East agreement that does not become amendable until December 31, 2011 and a West Section 6 negotiation that was put into recess by a Federal mediator. While under the terms of the Railway Labor Act those two facts do not allow either group to engage in any form of job action or "self help" under the Railway Labor Act, it is our belief the Company needs to move forward with completing the single agreement and I have addressed that need in Part II of this Eline.

The JNC is willing to do whatever it takes to bring you an agreement that you will ratify because it meets your needs, not because it satisfies either the majority or panders to certain segments of our membership.


PART II

The Industry is changing-again-right before our eyes. Undercapitalized airlines, such as ATA and Skybus have gone bankrupt and have been forced to liquidate. Aloha Airlines, facing predatory pricing tactics has been forced to close its' doors. Frontier Airlines is in bankruptcy court fighting for its life.

Major airlines, including US Airways, have previously used the bankruptcy courts to restructure by reducing or eliminating debt, attracting financing based on reducing costs and destroying years of collective bargaining.

After two years of profitability, the industry faces an uncertain 2008. While it is true that high oil prices and an, economy that is either in, or near a recession, certainly contributes to the bottom line, airlines can't use those as the only excuses for a potential unprofitable 2008. Airlines provide a product that blends customer service with transportation. A poorly run operation is a costly operation. A fragmented workforce-separated by different collective bargaining agreements leads to a costly operation. A pricing scheme that does not match the cost of providing the product to the fee charged for that product is clearly a losing proposition. Record load factors indicate the American public still needs the product and is willing to pay for good reliable service.

US Airways must seek ways to generate revenue and control its' costs by running a good operation and providing the product that the American flying public is clamoring for. Profitability will not be reached by running a poor operation or by extracting cost savings through a concessionary bargaining strategy.

Flight Attendants are working for 1994 wages. We have to buy gasoline too. We can't simply ask our mortgage lender, landlord or grocer to lower our payments or their prices because gas prices are high.

Now, the long predicted consolidation phase of the industry appears to have begun with the announced merger of Delta Air Lines and Northwest Airlines. Airline analysts are predicting further consolidation-what that bodes for US Airways is unclear.

What is clear is that the merger between US Airways and America West has proved difficult and costly to both our customers and our employees. This Company needs to concentrate on consummating this merger by completing labor agreements and truly merging the two carriers. Only then can this airline realize the synergies of the cost savings and revenue generation that a truly merged airline can produce. Only then will the so far empty Company promises made to the airline's investors, customers and employees be fulfilled.

Thank you,

Mike Flores, President
The US Airways Master Executive Council
AFA-CWA

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AFA Local Numbers
 
Council 41 DCA 703-212-8090
Council 69 BOS 781-289-8454
Council 70 PHL 215-492-0840
Council 82 LGA 315-736-3483
Council 89 CLT 704-527-0325

New Hotline Number Toll Free: 866-USA-AFA2
US AIRWAYS Benefits Information 800-872-4780

Reply to Inflight: askinflight@usairways.com

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