In This Edition of the E-Line AA Eagle Contract for Mid Atlantic Flight Attendants Option Rebid Information Medical Benefits Information US AIRWAYS OUTLINES MORE DETAIL ON MANAGEMENT CONCESSIONS New Sick Leave Policy Buddy Bidding in the NEW Reserve System

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AA Eagle Contract for Mid Atlantic Flight Attendants

The AA Eagle Contract can be found at the address below. Courtesy of AA Eagle, Association of Flight Attendants.
http://www.afausairways.org/Restructure/MID_AContract.pdf  -- PDF File - (LARGE File, please allow extra time to download)



Option Rebid Information

At the present time the company intends to re-open 2003 options only when the new reserve system commences. The company doesn't know if that will happen in 2003, only that it will happen no later than June 2004.



Medical Benefits Information

There will be another open enrollment during the first quarter of next year for anyone who desires to change their medical coverage. Until that occurs medical premiums will remain constant at what was originally quoted during this years open enrollment.

As more information becomes available we will update you with the details. Please call your local union office with any questions.



US AIRWAYS OUTLINES MORE DETAIL ON MANAGEMENT CONCESSIONS

ARLINGTON, Va. December 18, 2002 --US Airways today outlined concessions by its management employees in further detail as the company continues to work with all employee groups to reduce costs as part of its restructuring efforts.

"Every employee group is making large sacrifices, and that includes management," said US Airways President and CEO David Siegel. "From the beginning of this restructuring process, the company has been committed to an equitable program where everyone contributes according to the unique circumstances of their work group. "These cuts, while painful, are necessary for our survival. We are all in this together," he said. 

Because some questions have been raised about the extent and duration of management's participation, the company has issued the following details about the contribution by management and nonunion employees in the cost-reduction plans.

Salary

-- Officers and Management Salary Plan (MSP) employees eligible for the Incentive Compensation Plan (ICP) will continue with salary reductions for the entire six and one-half year term of the concession period with restoration of pay cuts utilizing the same methodology developed for restoration of flight attendant pay cuts. (Annual increases begin in 2004, so that by 2009, officer and ICP-eligible employee salaries will be slightly higher than they were on the effective date of the concession period. These increases will also be adjusted for the annual longevity step increases that labor groups receive. )

-- For the other nonunion employees who normally are eligible to receive merit-based increases, beginning in 2004, these merit increases -- although not guaranteed -- will be capped at 4 percent per year, which is the level built into the financial model provided to the Air Transportation Stabilization Board in US Airways' application for a federal loan guarantee.

-- The Incentive Compensation Plan will not be implemented through 2003 for a 2004 payout. This will save the company an additional $7.84 million. Beginning in 2004, ICP-eligible employees will again be eligible for the ICP. However, details of the program have not yet been determined.

Benefits

-- Changes to the medical plan will be implemented for all management and nonmanagement, nonunion employees. These changes include separate deductibles for in- and out-of-network benefits, a $5 increase to non-formulary brand prescription drug copay (from $30 to $35), a small reduction in the Reasonable and Customary (R & C) reimbursement level for out-of-network expenses, and a one-time increase in 2006 for office visit copays, prescription drug copays, deductibles and out-of-pocket maximums. 

-- In addition, monthly contributions will be increased for all MSP and non-MSP employees. Officers and ICP-eligible employees will pay the same medical contributions as those agreed to by the Air Line Pilots Association for the duration of concession period. All non-ICP eligible, nonunion employees will pay the same medical contributions agreed to by the non-pilot employee groups for the duration of the concession period. All employees - union and nonunion - will pay the same monthly contribution for dental coverage. 

-- Officers will give up their split-dollar life insurance plan (a combination of a term-life and savings plan) and, in the short term, substitute it with a term-life policy. This change will save the company $6.2 million.

The additional concessions by Management Salary Plan and nonunion employees amount to more than $13 million annually in benefit savings.

"With these additions, the officer and other MSP employees will contribute $300 million in savings for the life of the 6.5 year ATSB loan, well in excess of the original target for the MSP group," Siegel said.



New Sick Leave Policy 

If the current tentative agreement is approved the new sick leave policy will go into effect March 2, 2003, not January 1, 2003 as stated.



Buddy Bidding Reserve

Flight Attendants Attendants have questioned if they will be able to buddy bid with the new reserve system. Mike Minerva of US Airways said buddy bidding days off is possible but buddy bidding trips is not.

Revision Questions

A new input form is being used for any questions you may have on this Revision to the Restructuring Agreement. Please contact your LEC Officer with any questions you may have as well as utilizing this input form. The form is located at http://www.afausairways.org/EForms/prop_input.html.

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