PART
I
Your
merger negotiating committee, Carol Austin and I, had our first formal meetings
with our America West counterparts on August 24 and 25. Details of the meeting
will follow in part II of this letter but first I will address a concern we all
share, seniority. According to the America West MEC website, an advance agenda
item has been submitted to the AFA Board of Directors seeking to amend the
current AFA merger policy of date of hire. Neither Carol nor I were apprised of
this agenda item at our meetings last week. The Board of Directors, made
up of all LEC presidents from all AFA carriers will hold its annual meeting
October 18-21 in Palm Springs, California. The current date of hire policy has
been in place since the late 1980's. US Airways and before that US Air and
before that Allegheny have ALWAYS used a date of hire policy. We used that
policy even before it was mandated by the AFA Constitution and By Laws. The
America West logic is that the policy was put in place at a time when legacy
carriers were merging and therefore does not apply now. According to the America
West leadership the new world order is that a low cost carrier, America West
merging with a legacy carrier, US Airways, now requires a change to the current
policy. This membership has gone through three contract concessions in the
last three years. The road to reduce our costs down to a level equal to a low
cost carrier is paved with pay cuts, lost pensions and lost jobs. In fact, when
our most recent concessionary negotiations began we were told by Jerry Glass and
other members of management our labor costs had to mirror those of America West.
Our costs now mirror or are below America West's costs. To refer to US Airways
as a "legacy carrier" now is a stretch. We do not need to, nor will we
give up any seniority to facilitate this merger. Nor will we ever agree that
this merger is in any way different than any other merger or acquisition. Our
costs reductions have given US Airways the opportunity to join America West in a
merger. Unlike previous mergers, which were actually acquisitions, this is truly
a merger. Neither company is buying the other; outside investors are the
financial backing behind merger. The merger will benefit both companies as
neither could remain a stand-alone company in today's economic environment. This
merger will help secure the future of both of these fine carriers. We need
each other and the investors to make this a reality.
While
it is true US Airways has a long history dating back to All American Airways
(circa 1949), the current seniority list at US Airways is actually a composite
of regional carriers; Allegheny, Lake Central, Mohawk, PSA, Piedmont, Empire and
the Trump Shuttle. Date of hire has been the tool for seniority
integration in all of these mergers. Although the Piedmont/Empire merger
resulted in Empire flight attendants being placed at the bottom of the Piedmont
list, when US Air acquired Piedmont the Empire flight attendants were credited
with their original date of hire. In fact, out of the top one hundred members on
our list only 52 are original US Air/Allegheny/Mohawk members. The trend
continues throughout or list and in fact the number one person on our seniority
list is a former Trump Shuttle flight attendant who per agreement is using her
Eastern Airlines date of hire. The point is that some of the original US
Air/Allegheny/Mohawk members lost seniority every time there was a merger.
Date of hire can advantage some members and disadvantage others. The fact that
we are an older carrier also means we have a much higher attrition rate. Either
through resignations, retirements or Voluntary Furlough programs we have seen
the more senior members of US Airways leave the company at an alarming rate.
That will continue as US Airways continues to shrink prior to the operational
integration of the two carriers. In other words, the seniority disadvantage
perceived by our fellow members is taking care of itself. I can certainly
understand the trepidation that many America West members are feeling. I know
because I have been part of three mergers and while I have lost seniority each
time the playing field was fair for all and leveled out over time. America
West is unique in that they are a one base airline. Their seniority only changes
for the better. All of us at US Airways have seen our base seniority change
constantly and have lived through it. This merger will not create a windfall for
our members. There will be no bumping into Phoenix. Any transfers into Phoenix
will only occur contractually due to vacancies or growth. There will be no
bumping into a job for those on our list who are currently on furlough.
I
don't yet know the exact details of the amendment to be presented to the Board
of Directors via the advanced agenda item. The item will be published in mid
September. I do know that we will be prepared to make our case.
I
had the privilege of riding on the new livery aircraft from CLT to PHX last
week. One of the most impressive things about the new livery is the circle of
the original carrier's insignias surrounding the U-S symbol. This new symbol
will be on every aircraft adjacent to the 1L door; visible to all upon entering
the aircraft. That symbol and the four retro paint schemes from the original
carriers symbolize what Doug Parker, CEO of the new US Airways Group, calls our
"commitment to tradition and heritage". So too should AFA's commitment
be to the heritage and tradition of date of hire. That policy has been followed
in the past and should be followed now and in the future as the consolidation of
this industry may be just beginning. There should indeed be "one Union for
all".
PART
II
Carol
and I met with our America West Counterparts, MEC President Bill Lehman and
committee member Bill McGlashen, in Phoenix on August 24 and 25. Also in
attendance were AFA staff negotiators Mark Littleton (USA) and Joe Burns (AWA).
The purpose of the meetings was to begin the process of the merger. That process
has several phases including a transition or fence agreement governing the two
carriers and their membership prior to operational integration, a merged
collective bargaining agreement and an integrated seniority list. The companies
can't effect an operational merger of the carriers without an integrated
seniority list. After a merged collective bargaining agreement is ratified by
both memberships the integrated seniority list is presented to the company and
the operational integration can take place. We are in the first phase of the
process although the compilation and verification of our seniority list is
taking place as well.
Your
committee worked this week to identify some of the immediate issues regarding
the fence agreement. Comments regarding these items are general and at this time
not binding. There has also been no discussion or decision regarding a fence
agreement that would remain in effect after the date of the operational
integration. Issues discussed included but were not limited to:
-
Filling
of vacancies - As the two companies operate separately and prior
to operational integration America West predicts that they will need to
hire between 180-200 flight attendants to cover attrition in 2006.
Rather than hiring off the street discussion focused on allowing current
US Airways involuntary furloughed flight attendants to fill those
vacancies that will occur prior to integration.
-
Furlough
"bump and flush" - As mentioned earlier no furloughed
US Airways flight attendant will be allowed to bump a more junior America
West flight attendant currently on the property out of a job.
-
Base
"bump and flush" - post integration vacancies in PHX to
be filled according to contract provisions with the intent of transfers
into PHX solely to fill vacancies caused by attrition or growth.
-
Post
Integration Furlough protection - discussion focused on the
current US Airways contractual provisions of VF, VFLR and VSIP programs in
the event of downsizing.
-
Protection
of current flying - prior to operational integration, aircraft in
the US Airways fleet flown by US Airways pilots will be flown by US
Airways flight attendants.
-
Jumpseat
- discussion on allowing a reciprocal jumpseat policy with
restrictions prior to integration.
-
Base
Closings and Domicile block hours - general discussions on
potential base closings prior to or after integration.
-
Training
- the need for pre-integration "differences" training and base
specific equipment.
-
Uniforms
- pre- integration accessory match (bag of buttons) and new uniform design
with input from both uniform committees and the company.
-
Pass
Travel - although largely governed by corporate policy, there
exist certain contractual provisions in each contract that will have to be
negotiated. Currently America West pass travel policy is first come-first
served. This is unheard of for us and goes against everything we know and
depend on. Your MEC will stress our desires and reasons for a seniority
based pass travel system to management.
As
I said these talks are preliminary and will continue in September. I apologize
for the length of the e-line but felt it critical to bring you all up to date.
The entire MEC is unified in our approach to these issues and to the basic
underlying issue of seniority and the date of hire concept. I will keep you
informed as the merger process unfolds.
(Information
will be posted on the AFA US Airways website - www.afausairways.org)
Thank
You,
Mike
Flores
MEC President
~~~~~~~~~~~~~~~~~
