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Negotiations Update
The Negotiating Committee is working through the weekend and into next week developing a comprehensive counter to the Company's most recent Transformation Plan proposal, which can viewed on the AFA website. Naturally, the Company's proposal has raised many questions and concerns. It would be unproductive to try and explain all the details of this proposal, first because it is just a proposal, and second, because, even at the table, the Company has been unclear in explaining their full intent. This includes their proposal on retiree medical. It is important to understand that even if a Flight Attendant retires prior to changes being made to retiree medical, the Company has indicated it plans to seek to alter or eliminate the retiree medical benefits through section 1114 of the bankruptcy code. This makes answering questions about this particular proposal and their intent even more difficult.
If AFA and the Company are able to reach a tentative Transformation Plan Agreement, it will be presented to the MEC, who will either send it out for your vote or send it back to the Committee. AFA will be able to answer more of your questions and concerns at that time, If we don't reach an agreement, keep in mind that the fact that the Company's bankruptcy means that the contract could be abrogated pursuant to Section 1113(c), which would not require membership ratification, merely the approval of the Bankruptcy Court. While they have not yet filed an 1113(c) motion, they have advised the Negotiating Committee that they will file by mid-November.
As you know, ALPA has ratified their Transformation Plan Agreement. Your Negotiating Committee has taken the position that no "me-too's" would be in effect until AFA also has a ratified Transformation Plan containing parallel agreements, and the Company has so far acknowledged our position.
Your Negotiating Committee would like to thank you for your patience during this very busy and difficult time.
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