AFA - US
Airways E-Line June 18, 2002
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Contents:
Notes from the US Airways
Negotiating Committee
MEC Crew
Accommodations Committee Message
MEC Scheduling
Committee Message
US Airways
FCU: Well capitalized, financially strong
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Notes
from the US Airways Negotiating Committee
Tuesday, 6/18/02 –
The original management-imposed deadline for completion of concession negotiations
was June 15. It’s come and gone and no labor group has completed
talks with the company. Management has said it will be day-to-day
from here on out.
The hold-up is that management
and the pilots are attempting to reach agreement first. Everyone
knows that the pilots’ deal is the one with the most money in it for the
company. If management can’t reach a deal with the pilots, everything
falls apart in terms of getting the loan guarantee from the government.
The pilots continue to say, as late as yesterday in a union Coalition meeting,
that they are committed to reaching an agreement with management that will
give the company cost savings that will enable it to be profitable in the
future without entering into bankruptcy.
Your Negotiating Committee
is prepared to meet with management once a pilot deal is finalized.
That could happen today. It could happen tomorrow or the next day.
The Committee is scheduled to meet with management today. If the
pilot deal isn’t done, we may meet with management to further discuss costing
issues. We will update you once we have more information.
Your AFA Negotiating Committee
continues to meet, research and cost out items being discussed in negotiations.
Over the past week, we have met several times with management.
On Wednesday 6/12,
the Negotiating Committee made another proposal to the company. The
package of concessions presented to management totaled $61 million per
year in savings to US Airways. Management maintains that it needs
$90 million per year in savings from us.
A pilot agreement will be
a measuring stick for your Committee to help establish a final number for
the cost savings in a flight attendant deal. At this point, the pilots
are saying that they will end up with an agreement that is lower than the
$595 million that the company originally said it wanted in savings from
the pilots. We will insist that the pilots’ final cost savings number,
and the information to prove that cost savings, is provided to us prior
to continuing talks. Once we receive the pilots’ final number, we
will use it as a guide in determining our final number (example:
if the pilots are 20% below their number, we will be at least 20% below
our number).
The $61 million AFA proposal
to management continues to focus on getting value back for the value flight
attendants sacrifice. In terms of value we are offering management,
the proposal includes:
-
wage cuts and elimination of
two 2% pay raises scheduled in 2002 and 2003
-
temporary reduction or elimination
of Longevity Pay, Reserve Override and Crew Meals, and other premiums.
-
temporary reductions in vacation
accrual and vacation pay and credit.
In return for our investment
(in the form of cost savings), we’ve proposed flight attendants receive:
-
profit sharing,
-
stock options,
-
wage, premium pay and benefit
snap backs,
-
additional raises if passenger
revenue per ASM increases faster than the Business Plan.
Our proposal also included an
agreement that management will not ask the Bankruptcy Court for more sacrifices
than we agree to, language to maintain mainline jobs, seniority and longevity
rights and protections for furloughed flight attendants that go to work
for MidAtlantic Airways, and a requirement that other labor groups participate
in the sacrifices.
On 6/13 and again
on 6/17, the Negotiating Committee met with the other labor groups
at US Airways in a Coalition Meeting. Each group updated the others
on their progress in negotiations. Like us, the other work groups
do not believe that the target for cuts that management has set is realistic,
and that the final number for everyone will be lower than the $950 million.
Every group reported, however, that they are in active talks over concessions
and will do what they believe is necessary to help this company stay out
of bankruptcy.
On Monday, 6/17, AFA’s
health benefits specialists met with the representatives of the other labor
groups on the property to discuss management’s proposal for a single, company-wide
health care plan. Management’s plan calls for major cuts in benefits,
coupled with significantly increased costs to the flight attendants.
All labor groups stated problems with the company’s health plan as currently
laid out, but all groups are seriously considering management’s proposal
for a single health provider for all US Airways employees.
Following the Coalition Meeting
on 6/13, the Negotiating Committee met with management again to discuss
proposals. No new proposals changed hands in that meeting.
On Friday 6/14, the
Negotiating Committee met with the company to receive management’s latest
proposal. This proposal from the company was not significantly different
than the previous proposal given to your Committee. It still asked
for $90 million in sacrifices from the flight attendants.
As we go forward, the details
of the proposals will change. Some items may be added, some may be
taken off the table. We will report out to you again after we meet
with management. Until then, keep flying and keep up to date with
the Hotline - 800-654-3143, Website - www.afausairways.org , E-Line or
Negotiations Info Telephone Line - 800-531-3242.
MEC Crew
Accommodations Committee Message
The decision for the new long PHX RON
property has been extended until the week of June 24th. The Company
has informed the Committee that the crews will be in the new property as
of July 1, 2002. During the 2nd Quarter Crew Accommodation Meeting
yesterday, AFA and ALPA presented information to the Company that required
additional consideration before making a final determination. As
soon as a final selection is made, the Committee will provide the E-line
with the information.
Please
continue to complete an OF310 either by using the ONLINE
OF-310 or by filling out the paper form and putting it in
my mailbox (Audrey Federoff-Lindner, PIT based F/A) for any problems you
may encounter. The form can also be sent by Company mail. The
Company needs to hear from you regarding your dissatisfaction with any
property. Don't worry about filling in specific dates. These forms
are also used for general information.
MEC
Scheduling Committee Message
Flight Attendants on "Add"
Positions as defined in Section 9.J
Some discussion seems to
be surfacing concerning the ability of the "M" position on the ITD being
able to bump to any position on the main pairing, or flight attendants
on the main pairing bumping to the "M" position by exercising their senioriy.
Although they mirror the
main pairing, the flight attendant awarded the "M" position is on a different
trip pairing. Unless they are not fully staffed and require that the "M"
move to the main pairing, they are on a different trip/pairing unless they
do a trip swap. The ability to bump positions according to seniority is
not allowed.
The same methodology applies
to all "Add" positions on any aircraft both domestically or international,
as defined in Section 9.J
of the Flight Attendant Agreement.
US
Airways FCU: Well capitalized, financially strong
Letter from the US Airways
Federal Credit Union:
In light of the restructuring
of US Airways, Inc., I would like to take a moment to address the Credit
Union's relationship with the airline and the financial status of the Credit
Union as it relates to your union's members.
As you may be aware, the
Credit Union is governed by a completely separate entity than the airline.
Although we share the same name as the airline, our business decisions
are made solely by the Credit Union's Board of Directors and management.
I would like to reassure you and your union members that their finances
and accounts at the Credit Union will not be affected by this unfortunate
circumstance. I want to also stress that the Credit Union sympathizes with
those employees directly affected by the airline's current status, and
we are ready to help you and your union members with any individual financial
situations.
US Airways FCU is well capitalized,
financially strong and continuing to grow. The Credit Union has recently
been examined by the National Credit Union Administration (NCUA), our federal
regulating body. The results of the examination show that we are operating
in compliance with the rules and regulations set by the federal regulators.
We are in an excellent position to continue conducting 'business as usual.'
Our 'business as usual' policies include:
-
Each of our members will receive
virtually the same service they receive everyday. Also, we will continue
to make loans. No limits will be placed on share withdrawals and transfers.
ATM withdrawals and debit card transactions will carry the same daily limits.
-
As always, the total amount
of money in your savings accounts (shares) will be available on demand,
except for any shares pledged as collateral on a loan, and that can be
negotiated. It is suggested that you draw on these funds as you need them.
-
In the event you have a loan
or a VISA credit card with us, we will negotiate a workable arrangement
for its repayment. These arrangements will be made on an individual basis.
I, and the staff at US
Airways FCU, look forward to continuing to serve you and your union's members.
If you have any questions or concerns about the financial status of the
Credit Union, contact us at 1-800-926-0003 long distance or (412) 269-3011
in Pittsburgh. You can also contact me via e-mail at president@usairwaysfcu.org.
More information is also available on our Web site
at www.usairwaysfcu.org.
Sincerely,
Joseph C. Cirelli
President/CEO
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