PHL News-Line 70
70
 

In This Issue - Special MEC Meeting - Voluntary Furloughs OLD & NEW - and MORE!

 
Issue 4
August 22, 2002
 

This is the PHL News-Line 70 from Mollie McCarthy LECP. This newsletter is also available on the PHL page of AFA US Airways. Subscribe to News-Line 70 from here. If you would like to respond to Mollie, please use this email address mmccarthy@afausairways.org.

 

Hi Council 70 PHL/PHW members,

So much to tell…so without further ado…let’s get started.

 
Independence Hall and the Liberty Bell

Please sign up for future PHL News Lines by submitting your Name, Payroll #, E-Mail Address and Base HERE

MEC Meeting

The LEC Presidents of Council’s 89 & 40 are calling a special meeting of the MEC for 10:00 am Friday August 23, 2002 at 
the AFA International Office (1275 K Street Washington DC, (1-800-424-2401). Due to the recent resignations of the MECP and MEC VP the 

Agenda will be:

 

1. Election of MEC President 

2. Election of MEC Vice President 

3. New Business. 

 

All members in good standing are welcome to attend. 

 


 

Past Newslines

Aug 1

July 24

July 1

 

“We must all hang together, or assuredly, we shall all hang separately.” - Ben Franklin at the signing of the Declaration of Independence, July 4, 1776.

 


Special MEC Meeting

The MEC “Special Meeting called on August 14, 2002 by Council’s 40, 70 & 89 centered on “Bankruptcy” issues along with an “Equity Return” proposal from the Company that differs from what was in our Tentative Agreement. This proposal by management states that in the next few months, your MEC will need to choose to either participate in the Profit sharing/equity return vehicle (to be determined) that was outlined in our Ratified Agreement OR a new offer of a 2.2% stake in the newly emerged/post bankruptcy Company. ALPA (pilots) already agreed to an equity stake in US Airways and now the IAM is also looking at a similar equity stake. Because of negotiations with the IAM, the company has offered the flight attendants Restricted Stock equal to 2.2% of the fully diluted outstanding common shares of US Airways Group, Inc. (new issue). This stock would be available at the time of consummation of the US Airways reorganization plan. This “restricted stock” would vest one-seventh (1/7) per year over seven years. The distribution of these vested shares to the flight attendants has not yet been fully negotiated. Please send me (mmccarthy@afausairways.org) any input you may have regarding the new issue. Thanks.

During the meeting Council 70 PHL put forth three motions, two of which directs our AFA attorneys to address certain issues during the next bankruptcy court hearing. There were also three action items voted on and approved by the MEC one of which invites CEO Dave Siegel to a Q & A session with the MEC at our regularly scheduled meeting in September (September 4-6 PIT). 

 

Voluntary Furloughs OLD & NEW 

OLD: Those who were awarded the one year voluntary furlough last fall (2001) and who wish to extend their furlough beyond it’s original return time may apply for an extension of your Voluntary Furlough (VF), which is scheduled to expire on December 1, 2002. You must obtain and fill out a copy of the ’Flight Attendant Request to Extend Voluntary Furlough’ form. Please note that the deadline for submitting your extension request is Tuesday, September 3, 2002. You may send your extension form either by mail or by facsimile to In-flight Administration in Crystal City. 

Please refer to the Voluntary Furlough Letter Agreement for details pertaining to your Voluntary Furlough and the extension process, or contact your supervisor or In-flight Administration at 1-800-327-0117, prompt 1, 4, 1, 2 if you have any questions.

FYI, Additionally, the company stated today that out of the 792 voluntary furloughs due back 12/2/02, 170 have already extended. I am hopeful that this will equate to fewer forced Involuntary Furlough (IF). 

NEW: The new voluntary furlough (NVF) that will be offered should be coming out in the next couple of days. We are hoping to have the details ironed out with the company as soon as possible. We would like to have the NVF awarded before the end of the first round of the annual vacation bid. Right now we are hoping to have the NVF bid open the first part of next week, with a cut off/end date around September 8, so the NVF awards can be out by or around September 11. 

 

FYI, these dates are subject to change, however, I want those of you who may be interested to be aware that this is a ‘time sensitive’ opportunity and to keep abreast of what is happening or you might just miss it. Look for information on the AFA bulletin boards and for the sign-up forms in the crew room or on the AFA web site.

When I spoke with the company yesterday about the NVF, I was told it would most likely not include medical benefits. As your local President, I believe the NVF MUST have medical included to meet the true intent of our recent negotiations in which we gave up our ‘no furlough’ language. In return for our ‘no furlough’ language we were to have several opportunities/ways to offset possible Involuntary Furloughs. These included; a Voluntary Furlough, a VISP and a no cost early out. A VF without some type of medical benefit attached lacks incentive, which I believe is in opposition to the true spirit of what was negotiated in good faith. As your local President, I will address this issue with upper management in Washington DC tomorrow.

 

 

Low Lines for October

For your information when bidding these short blocks, the Company will only pay protect up to the minimum guarantee on your option (Temporary Relief in the new agreement). For those flight attendants who are on "high options" and who want to bid these lines but are concerned about getting all their time in, should consider not bidding these lines as the Company will not pay up to your minimum guarantee PLUS any time you fly ON TOP OF THAT (there is no "wind fall"). You are only responsible to fly the time that is in that block, (Ex. If the block is worth 50 hours, you only need to fly a minimum of 50 hours. However, if you need financially to get to your option and are worried about finding the flying time...it would be wise to not bid one of the low time blocks. 

Any event that occurs prior to the awarding of a flight attendants line for the bid month that will not adversely effect a flight attendants receiving a Minimum Monthly Guarantee claim include: 

  • Vacation previously awarded that touches a trip 
  • Vacation Rebid 
  • Involuntarily assigned training 
  • Vacation swap prior to line awards 
  • Training in excess of 2 days that are pay no credit 

Activity that may reduce a flight attendants claim for a Minimum Monthly Guarantee include: 

  • Vacation swap(s) after the line award 
  • Filler Days 
  • Voluntary Training Date touching a trip 
  • Vacation Swap after line awards 
  • Trip trades worth less value 
  • SAP awards that reduce a flight attendants line award 

These reductions in Minimum Monthly Guarantee pay claims will not be adversely effected if the flight attendants end projection for the month is equal to or greater than the published line value. 

As a reminder, a flight attendant who is on the 95-hour option, or the 105-hour option that is awarded a line worth less than 71 hours and chooses not to fly the additional time to bring them up to their option window will not be disciplined with a "low block" for the month.

Some Good News For A Change

Our Flight Attendant Scheduling Committee (FASC) deserves ‘kudos’ for catching this one. Here is a portion of the report I received today from the FASC. A special thanks to Tammy Highwart and Carol Austin, Good Job Ladies!

“During the conference call today with Mike Minerva, Ernie Pickell, and Tim Gunsteens, I also addressed the fact that in the AFA Restructuring Agreement, we forfeited pay protection for Short Lines until the end of the year, however, in the ALPA Restructuring Agreement, their pay was only eliminated for the month of September 2002 and October 2002. Despite the fact I was not a part of negotiations, I feel confident that if we had not lead the way by reaching a tentative prior to the pilots, we would have had the same language. This item was intended to give the Company relief in order to restructure it’s fleet and not to excessively penalize the flight attendants.

At the end of the conversation Mike Minerva concurred that it was not their intent to punitively disadvantage the flight attendants and the short block pay would be reinstated for the months of November 2002 and December 2002.”


Enjoy! You deserve something nice for a change.

In The News

US Airways To Cut 200 Flights By Yearend, Cut More Jobs 

US Airways, as part of its restructuring, next month plans to cut its fleet by 6% and eliminate about 130 flights from its system. CEO Dave Siegel told employees at various meetings around the system that the carrier by yearend expects its fleet to comprise about 280 aircraft, representing a further reduction of about 70 mainline flights. As a result, the airline told employees in an internal newsletter that 200 flights will be eliminated this year but the number of cities in the network will remain at 203. Today, US Airways mainline, including Shuttle, has a fleet of 311 aircraft flying about 1,550 daily departures. As a result of the flight cuts, Siegel acknowledged that there would be more job cuts. "It is painful to me to eliminate just one job," he said. "Certainly, these are difficult, yet necessary, decisions that will help return our company to profitability, and I expect there will be some layoffs as a result."-SL 


Important Announcement Regarding Employee Expense Account Reimbursements 

The Company recently sent the following message, please read carefully.

Certain employee expense account reimbursement checks issued prior to the Chapter 11 filing will not be honored by the bank and will be returned for insufficient funds. This applies to some checks issued before August 11 that employees have already deposited, and any uncashed checks they may still hold. As a result, employees should be cautioned that subsequent checks written by them against these funds might be returned as well. 

We will begin re-issuing replacement checks for all pre-Chapter 11 expense reimbursements by the end of next week, and the Company will reimburse any bank fees or penalties that employees may incur. 

Going forward, employees should continue to submit their expense account forms as before, and include any notices or documentation of bank penalties related to the checks issued prior to August 11, which will be reimbursed along with the replacement checks. 

We deeply regret the inconvenience this may cause. 

If you have any questions regarding the above, please refer them to 
Ampy Keilty, 703-294-5066 on Dial net. 


The Method Used For Pay Reductions With Retroactive Pay Cuts 
 

Below is another message received from the company. This one explains the method by which the Company is recouping the retroactive pay from the Flight Attendant group as a result of the Restructuring Agreement. 

The new (reduced) pay rates went into effect retroactive to July 1. Prior to ratification, flight attendants had received only their July advance, not their full July pay. The July advance was 35.5 hours paid at the old (unreduced rate). The retroactive amount is the difference between 35.5 hours at the old rate and 35.5 hours at the new rate. For a top-of-scale flight attendant, that difference is 

35.5 hours x $43.22 = $1559.52 
35.5 hours x $40.24 = $1428.52 
Retro Amount = $131.00 
 

For the August 15 check, we multiplied the total July hours by the new rate, and subtracted the dollars paid in the July advance. The August 15 check is for the difference between the total pay and the advance. For a flight attendant who earned 85 hours for July, the paycheck would be calculated as follows: 

85 hours x 40.24 = $3420.40 
Minus July adv. 1559.52 
Aug. 15 Total = $1860.88 

Because the August 15 check takes into account all hours paid at the new rate, it effectively eats up all of the retroactive pay, leaving nothing due to the flight attendant. In order to spread the advance overpayment or "retroactive amount" over six pay periods, we (management) had to add some of it back in. We (management) should have added 5/6ths of it back in, so that we could take back the remaining 5/6ths over the next five paychecks, as follows: 

8/30 $21.83 
9/15 $21.83 
9/30 $21.83 
10/15 $21.84 
10/30 $21.84 

We (management) took out 4/6ths instead, which was 1/6th too much. For a top-of-scale flight attendant, who owed $131.00 in retroactive pay, that meant we added back $87.33 instead of $109.17. In order to get back on schedule, we will not take any deduction for the August 30 check, and will take out the remaining 4/6 beginning with the September 15 paycheck. 

 

Time To Move On


The flight attendants have spoken loud and clear by ratifying the concessionary agreement with a 72% vote in favor. Regardless if you voted for or against the TA, be proud of your vote and the fact that you took the time to vote. Too many of our active members here in PHL did not cast a vote at all. 

We must now put the past behind us and look towards the future. We must protect each other, our contract and our company by doing what we do better than any other flight attendant group in the nation. 

Only we can bring our airline back to profitability. We must make sure our new management holds up their end of the bargain.


We need to make sure they always remember the gift and sacrifices given them by the US Airways flight attendants.


With labor and management working together, US Airways will survive and come back strong as a competitor in the airline industry. We will emerge from bankruptcy and we will live to fight another day. 

These next few months, will yet again, be filled with stress and uncertainty, as the company begins downsizing. Furlough numbers will soon be announced along with the possibility of displacements

With style and flexibility you weathered the first part of this storm without missing a step or ruffling a feather. That is the test of a true professional. I wanted you to know that I feel honored to be your representative. Thanks for your patience and for just being you.

I would like to share one of my all time favorite quotes with you. 

“We must all hang together, or assuredly, we shall all hang separately.” - Ben Franklin at the signing of the Declaration of Independence, July 4, 1776.

This seems to fit so many of the tribulations we have faced together throughout the last several years and one we should remember and embrace. It may sound saccharine, but truth is we ARE family and if we do not look out for each other, who else will? 

Please share this information with your fellow flight attendants who may not have computers. A copy will be put on the AFA Bulletin Boards.


That’s all for tonight.

Take Care and Fly Safe,

LEC President PHL