• COMPANY DENIES SECOND UNION SEPARATION PACKAGE PROPOSAL
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COMPANY DENIES SECOND UNION SEPARATION PACKAGE PROPOSAL

As a result of the Company’s intention to close the LGA and BOS domiciles, the Union made a proposal to the Company for a Flight Attendant Separation Package (SEP) last month.  In a letter to the Union from Vice President of Labor Relations, Al Hemenway, the Company flatly denied the Union’s proposal. 

The letter is copied below:

February 4, 2010

Sent via electronic and mail

Mr. Michael Flores
MEC President
Association of Flight Attendants
205 Regency Executive Park Drive
Suite 310
Charlotte, NC 28217

Dear Mike:

The Company has reviewed the AFA proposal asking the Company to implement a separation package for East flight attendants.  That proposal seeks a cash payment (with payments up to $20,000 based on longevity), along with extended flight travel and COBRA.  The proposal cites the base closures and employee hardship which would result from relocation or commuting as justification.

We recognize the employee hardship created with the base closures, and hope AFA and flight attendants recognize the remaining need to reduce certain flying based on economic circumstances along with a need to consolidate E-190 flying to a single domicile for efficiency reasons.  Simply put, after the schedule reductions and reassignment of E-190 flying, there is in insufficient flying remaining in either of the domiciles to make them productive.

The Company also recognizes the difficulty in relocating due to the current economy and agrees that most flight attendants who displace will elect to commute.  That isn’t solely due to the economy however, as past history suggests that most crew members elect to commute rather than relocate due to the flexibility in schedules, the ability to use non rev travel and flight attendant jump seats.  Further, should the BOS and LGA flight attendants elect to displace to DCA, that domicile assignment in particular would create one of the more practical commutes as it involves commuting on high frequency and lower load factor Shuttle flights, which are of short stage lengths and do not involve a change in time zone.  Thus while commuting is never ideal, for BOS or LGA flight attendants who elect to displace to PHL, a commute is certainly feasible.

Moreover, two key criteria the Company considers in deciding whether to offer a separation package is whether doing so saves the involuntary furlough of another employee and whether the program is either cost neutral, or has a reasonable pay back period.  The AFA proposal does not meet either criteria.  First, we have sufficient interest in voluntary leaves (which are very popular with flight attendants) and we expect no involuntary furloughs of East flight attendants.  And second, the AFA proposal includes substantial costs, which are neither cost neutral, or will be recouped through any near term payback.

For the reasons described herein, the Company, regretfully, cannot consider the AFA separation program.

Sincerely,

E. Allen Hemenway
Vice President, Labor Relations

Following receipt of the letter, the Master Executive Council (MEC) met to develop a counter proposal.  The MEC decided to drastically reduce our original proposal in an effort to meet both the needs of the Company and the Flight Attendants.  The following letter was sent to Company:

February 22, 2010   

Sent via electronic and US Mail

E. Allen Hemenway
Vice President, Labor Relations
US Airways, Inc.
4000 E. Sky Harbor BLVD.
Phoenix, AZ 85034

February 22, 2010

Dear Al,

The AFA is in receipt of your February 4, 2010 letter in which the Union’s proposal for a Separation Package was denied by the Company.  I am writing to express the Union’s position the denial is going to cause extraordinary hardship for some of our members who have been affected by the Company’s decision to close the BOS and LGA domiciles. 

While the Company cites numerous economic reasons for closing the domiciles and tries to put a positive spin on the ability for our members to commute to a new domicile, the letter fails to address three very important aspects of the base closures.

First, the BOS and LGA domiciles have primarily been Shuttle domiciles. The nature of the Shuttle operation thus produced more one and two day trips for those two domiciles than have historically been available in CLT and PHL.  Flight Attendants in BOS and LGA have thus tailored their lives in certain ways as a result of the type of flying previously offered in those domiciles.  On top of being forced to commute to work, those Flight Attendants will now also have to further alter their schedules and therefore add to the disruption of their lives.

Secondly, the domiciles closures will undoubtedly lead to additional displacements- most likely from DCA.  In this instance, DCA is a Shuttle type base as well with more one and two day than are available in CLT or PHL.  Now the Company will create the same types of disruption to displaced DCA Flight Attendants as have already been created for the displaced LGA Flight Attendants. In addition, BOS Flight Attendants may soon face the same disruption.

Lastly, by closing domiciles and not offering any type of exit incentive for those who quite simply have had their careers jerked out from under them, the Company is reinforcing the belief by Flight Attendants that the Company, “just does not care anymore about their employees”.   Morale is at an all time low and this is not helping.

In response to your letter explaining why the Company, “regretfully, cannot consider the AFA separation program”, the AFA is re-proposing a Separation Package (SEP) and respectfully wants to give the Company another chance to show its willingness to demonstrate that it really does care about their employees.

As you will see in the enclosed attachment, AFA has drastically reduced our original proposal.  To summarize, AFA has slashed by 50% the number of SEP awards offered (from 328 to 164) and reduced the cash payout from $20,000 to $10,000. 

If the Company uses the historical data from the PIT SEP package it is easy to see the subscription rate was less than 50% with respect to the number of packages offered. In other words, the amount of money in question with regard to expense to the Company is very small. In my estimation, the expense would be well worth it in terms of generating some positive feelings within the Flight Attendant workforce.

Sincerely,

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

I was informed within the last hour the Company is not going to consider this proposal or any further proposals from the Union regarding any type of SEP for Flight Attendants.

Clearly, the Company is not interested about the effects of domicile closures on Flight Attendant.  This Company needs to realize that although this is an airline, the main product we offer is customer service. It would seem the Company has very little compassion or respect for the very people that provide that customer service.

The MEC will meet on Monday to develop a more formal response to the Company’s lack of action.

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

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