Notes from Negotiating Committee, June 19th 2002

Company's Proposal HERE

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Wednesday, 6/19/02 - Management called your Negotiating Committee this morning to say that it still had not reached an agreement with the pilots on labor cost savings from the pilot contract. As yesterday's E-Line reported, the pilot deal is the key to all other negotiations moving forward. Until the pilots reach a deal with US Airways management, we are in a holding pattern in our talks to provide our airline with cost concessions that could help keep us out of bankruptcy. 

The AFA Negotiating Committee spent yesterday afternoon reviewing cost information as it relates to our contract. We are making sure we are prepared if/when a pilot deal is announced. Once that deal is announced, things will happen fast. 

When we finally go back into talks with the airline, management will likely maintain its latest proposal that it gave to your Committee on 6/14. That proposal, which details the $90 million in average yearly cuts management is seeking, is posted HERE. Please make time to read management's latest proposal, print it and pass it around to your flying partners. Everyone needs to understand the dramatic cuts management is seeking from us. 

Our counter-proposal to management is for cuts that add up to less than the $90 million per year management is demanding. The proposal we currently have on the table outlines $61 million in yearly savings to the company. Every single cut in our proposal is painful. Those cuts include 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; and temporary reductions in vacation accrual and vacation pay and credit. Keep in mind that we are asking for returns for the investment flight attendants are being asked to make in this company in the form of concessions. But the concessions we ultimately agree to in an effort to keep US Airways out of bankruptcy will likely get more painful before this process is over.  

At this point, the plan moving forward is to wait for the pilots to finish negotiating their concessionary deal. Once the pilot deal is announced, we will ask to see it and all of the documentation we need to verify its annual savings to the airline. The total yearly cost savings we ultimately hit will likely fall somewhere between the $61 million we have on the table now and the $90 million in yearly cuts management is currently asking for. The amount the pilot's number falls below the $595 million in yearly savings management has demanded from them will be the key factor in determining our ultimate number. 

After we are able to analyze the pilot's deal, we will head back into talks with management and begin working towards an agreement of our own. We just don't know when we will be back at the table, yet. 

You will vote on any tentative agreement we reach before it ever goes into effect. 

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 Information Line - 800-531-3242. 
 

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