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AFA US Airways MEC E-Line - "Staying Informed" |
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AFA US Airways MEC E-Line for October 2x, 2004 |
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Dear US Airways Flight Attendants and Retirees, On October 28, 2004, Judge Stephen S. Mitchell, presiding over the US Airways bankruptcy case, will appoint members of a Retiree Committee pursuant to Sec. 1114 of the U.S. Bankruptcy Code. The purpose of this Retiree Committee is to represent the interests of retired US Airways employees in the event the Company decides to file a petition to reduce or eliminate retiree medical benefits as permitted by Sec. 1114. The Company has not filed a so-called Sec. 1114 motion seeking to make such changes to retiree medical benefits. The Company has merely indicated that it may do so, and hence wants to have the procedures in place for the timely appointment of the Committee. AFA has elected, as provided in Sec. 1114, not to serve as the representative of the retired US Airways flight attendants in the event of a Sec. 1114 motion. Rather, because of our pending negotiations over potential changes to the flight attendant collective bargaining agreement, the AFA US Airways MEC has concluded, in consultation with AFA's International President and staff, that separate representation of the flight attendant retirees will best ensure that their interests are properly represented. Toward that end, participation on the Retiree Committee appointed by the Court will ensure access to independent legal and financial advisors and protect against any conflict of interests between the retirees and the active flight attendants. In accordance with the Court's procedural order, the Company will mail, by October 6, to each flight attendant retiree a Request for Nominations to Retiree Committee, along with a response form. Any retired flight attendant who wishes to be considered for a position on the Retiree Committee should return the nomination form per the instructions that will be included with the form. The Company must then, by October 21, provide the Court with a report on the nominations. The Court will determine the exact size and makeup of the Retiree Committee. Flight attendant retirees will also receive notice of a Court hearing to be held on October 28, 2004 at the U.S. Bankruptcy Court in Alexandria, Virginia. At this hearing the Court will appoint the members of the Retiree Committee from among those nominated. You are not required to be present in Court to be appointed to the Retiree Committee. Once appointed, the Retiree Committee will meet and will hire appropriate legal counsel and other consultants, as needed. The costs of the Retiree Committee and these advisors will be paid for through the bankruptcy case out of the assets of the Company. Following the appointment of the Retiree Committee, if the Company decides to file a Sec. 1114 motion to alter or eliminate retiree medical benefits, the Company will be required by law to negotiate over those changes with the Retiree Committee. Absent an agreement on such changes the Company will seek a hearing on its motion, and attorneys for the Retiree Committee would represent the interests of the retirees when the motion comes before the Court. Retired flight attendants who are interested in serving on the Retiree Committee are encouraged to submit a response to the request for nominations. <:><:><:><:><:><:><:> Accessing
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