SECTION 1 – SCOPE

Furlough Protection LOA

A.  In the event the Company or US Airways Group, Inc. files for bankruptcy protection under Chapter 11 or is forced into a bankruptcy proceeding under Chapter 11 by a third party, the Active Aircraft Count will not drop below 245 prior to December 31, 2008. Absent a bankruptcy filing as described above, the Active Aircraft Count will not drop below 275 prior to December 31, 2008.

B.  For purposes of this letter, the “Active Aircraft Count” means the number of aircraft in the pilot permanent bid plus an additional number of aircraft equal to 8% of the number of aircraft in the pilot permanent bid.

C.  In the event the Company institutes a reduction in force that results in the furlough of employees covered by this Agreement, the Company will offer employees who would not have been involuntarily furloughed the opportunity to accept a Voluntary Furlough. The commencement of such Voluntary Furloughs will coincide with the date(s) established for involuntary furloughs. The benefits of Voluntary Furlough will include unlimited on-line passes for twenty-four (24) months, and the Company will not actively contest claims for unemployment benefits filed by employees accepting voluntary furlough.

D. In the event of an involuntary furlough as described in paragraph B above, involuntary furloughees will receive unlimited on-line passes for twelve (12) months.

E. In the event of an involuntary furlough as described in paragraph B above, the Company will offer a Voluntary Separation Incentive Program (VSIP) for employees who would not otherwise have been furloughed. The VSIP will provide a fixed number of passes annually based on years of service.

F. The Company will be excused from compliance with the provisions of this LOA to the extent that a circumstance over which the Company does not have control is the cause of a fleet reduction below the levels guaranteed in paragraph A. The term “circumstance over which the Company does not have control” includes, without limitation: a natural disaster; labor dispute within the Company; grounding of a substantial number of the Company’s aircraft by government agency or by voluntary action by the Company for safety reasons in lieu thereof, which in either case could not be cured or avoided by the Company; reduction in flying operations because of suppliers being unable to provide sufficient critical materials for the Company’s operations; revocation of the Company’s operating certificate(s); war emergency; or acts of terrorism.

SECTION 3 – COMPENSATION

A.  Effective July 1, 2002, a flight attendant on the payroll as a flight attendant shall be paid hourly rates as follows for all credited hours:

 

N. Effective December 31, 2005 in addition to all other pay and credit, a reserve flight attendant who has completed five (5) or more years of service shall receive $.50 (fifty cents) of pay for each block hour flown, prorated to the nearest minute.

Effective December 31, 2008 in addition to all other pay and credit, a reserve flight attendant who has completed five (5) or more years of service shall receive one dollar ($1.00) of pay for each block hour flown, prorated to the nearest minute.

Q. Effective December 31, 2008 and thereafter, a flight attendant who has completed fourteen (14) years of service shall receive longevity pay at the rate of twelve dollars ($12) per month.

Effective December 31, 2008 and thereafter, a flight attendant who has completed fifteen (15) years of service shall receive longevity pay at the rate of twenty-two dollars ($22) per month.

Effective December 31, 2008 and thereafter, a flight attendant who has completed sixteen (16) years of service shall receive longevity pay at the rate of thirty dollars ($30) per month.

SECTION 4 – EXPENSES

 

A.  Meal Expenses

1. A flight attendant on duty shall be paid expenses for meal for each trip hour, prorated to the nearest minute in accordance with the following rates:

 

E. Crew Meals

1. Effective upon ratification of this Agreement, crew meals will be provided for flight attendants working international transoceanic flights. Effective December 31, 2008, crew meal provisions will revert back to current book.

SECTION 6 – UNIFORMS

2.   Effective December 31, 2008, the Company will pay each active flight attendant twenty dollars ($20.00) per month for the cleaning and repair of the uniform or parts thereof in order to assist the flight attendant in maintaining the standards of neatness and personal appearance required by the Company.

SECTION 7 – VACATION

A. Vacation Accrual

1. Effective July 1, 2002 through December 31, 2002 A flight attendant will be eligible for vacation accrual, subject to the completion of his/her probationary period, according to the year of employment a flight attendant completed, flying option and number of full months of employment as a flight attendant in the preceding calendar year as follows on the next page:

Vacation accrual reduction for 55-hour Option:
 

	Tentative 2003 55 hour option
1st through 3rd year	N/A
4th year	N/A
5th year	11
6th year	13
7th through 9th year	15
10th through 12th year	16
13th through 15th year	20
16th through 19th year	20
20th through 24th year	23
25th and thereafter	25

2. Effective January 1, 2003 through December 31, 2008, vacation accrual rates will be as follows on the next page:

Vacation accrual reduction for 55-hour Option:
 

	Tentative 2004-08 55 hour option
1st through 3rd year	N/A
4th year	N/A
5th year	11
6th year	13
7th through 9th year	14
10th through 12th year	16
13th through 15th year	19
16th through 19th year	20
20th through 24th year	22
25th and thereafter	25

 

B. Vacation Pay and Credit

1. Effective January 1, 2003 through December 31, 2004, a flight attendant taking seven (7) or more consecutive vacation days will be entitled to pay and credit at one-half day/one-half night pay, as well as senior, international, aft lead, and LOD/O premiums, if applicable, in accordance with the table below.

2. Effective January 1, 2003 through December 31, 2004, a flight attendant taking less than seven (7) consecutive vacation days will be entitled to pay and credit at one-half day/one-half night pay, as well as senior, international, aft lead, and LOD/O premiums, if applicable, in accordance with the following table:

SECTION 20 – LEAVES OF ABSENCE

F.   Bereavement Leave

 

K.  Personal Care Leave

SECTION 22 – HEALTH, WELFARE, RETIREMENT AND OTHER BENEFITS
 

I.6 Effective January 1, 2003, a flight attendant receiving salary continuance shall accrue vacation and sick leave for the first six months of salary continuance.

SECTION 30: GENERAL

New S. Productivity Offset

No later than 30 days following the ratification of this Agreement, the parties shall commence negotiations over productivity improvements (including an “early-out” program if such program has not previously been agreed to prior to the date of ratification). Any savings that result from agreed to productivity improvements or an early-out program shall be returned to flight attendants in increased wage rates. The negotiations referenced above shall not be held pursuant to Section 6 of the Railway Labor Act.

New T. Change in Control: In the event of a change in control of the company, as defined below, flight attendant wage rates will snap back to the rates in effect on June 30, 2002.

Change in control: An event in which, in a single transaction or in multi-step related transactions (i) securities which constitute and/or are then-currently exchangeable into, exercisable for, or convertible into 50 percent or more of the Denominator Common Stock (as defined below), and/or (ii) 50 percent or more of the value of assets, of the Company or US Airways Group, and/or (iii) Control of the Company or US Airways Group as defined below, are acquired or held by a single purchaser (or a group of purchasers acting in concert).

Control: Entity A shall be deemed to “control” Entity B if Entity A, whether directly or indirectly:

a. owns voting securities that constitute or may at any time be exercised, exchanged or converted for or into fifty percent (50%) or more of Entity B’s Denominator Common Stock.

Verification

A. In the negotiations that resulted in the June 30, 2002 Tentative Agreement, AFA agreed to concessions worth 85% of the Savings Target (based on $90/$595 relationship between AFA and ALPA) established for the flight attendant group by the Company as part of its 2002 Restructuring Program.

B. If concessionary negotiations with ALPA achieve less than 85% of its Savings Target, wage rates for the flight attendant group will be adjusted such that the flight attendant group achieves the same percentage of its Savings Target.

C. For both the pilot and flight attendant groups, the 85% figure is based on the Savings Target through the end of 2008, and the value of all concessions is as determined by the Company and AFA.
 

In the event that the Company files or is the subject of a bankruptcy petition under Chapter 11, the Company may take one or more of the following measures so that it may continue orderly operations:

A. Build fewer than the a sufficient number of primary and/or secondary lines or build primary and/or secondary lines that do not meet the line construction parameters set forth in Section 9.B of the agreement, there shall be no pay protection other than the minimum monthly guarantee for affected lineholders.

B. If, after a reduction in force, the amount of vacation awarded for a month causes coverage problems, and Vacation Buyback proves insufficient to reduce the vacation liability, cancel awarded vacation in inverse seniority order. If a Flight Attendant has his/her vacation cancelled, he/she will have the option of receiving a monetary pay-out or re-bid the vacation. If he/she re-bids the canceled vacation the following year in which he/she receives a step-up, the vacation will be paid at the higher rate. In addition, if he/she re-bids the canceled vacation the following year and converts a previously bid short vacation (i.e., under 7 days) into a vacation that is seven (7) days or more, he/she will be paid at the seven (7) day vacation rate.

C. Notwithstanding the Monthly Bid and Line Award Process provisions of Section 9.C, adopt different time lines for the monthly schedule bidding process and/or reduce the number of steps involved by eliminating the SAP/Secondary Line portions of the process.

D. Conduct an accelerated rebid of the monthly maximum options set forth in Section 10.C, so that the flight attendant population remaining after a reduction in force would conform to the limits specified in that section.

E. None of the above measures may be implemented for bid months that commence after December 31, 2002.

July 15, 2002

Doug McKeen, Vice President
US Airways Labor Relations
US Airways, Inc.
2345 Crystal Drive
Arlington, VA 22227
 
 

Re: Withdrawal of AFA Grievance #30-99-02-85-01
Shuttle Vacation
 

Dear Mr. McKeen:

During the course of the recent restructuring negotiations, it was agreed that in consideration of withdrawing the above referenced grievance, the former Shuttle flight attendants shall be placed on the mainline vacation matrix effective July 1, 2002.

The above referenced grievance shall be withdrawn from the System Board list with prejudice.
 

Very truly yours,

Karen Lascoli
MEC President
 
 

July 15, 2002

Doug McKeen, Vice President
US Airways Labor Relations
US Airways, Inc.
2345 Crystal Drive
Arlington, VA 22227
 
 

Re: AFA Grievance 30-99-02-74-01
No Furlough
 

Dear Mr. McKeen:

Prior to the recent restructuring negotiations, the Association agreed to hold the above referenced grievance in abeyance pending the disposition of the Air Line Pilots Association’s Force Majeure case. As part of the restructuring agreement reached on June 29, 2002, the parties agreed that the AFA Force Majeure grievance (referenced above) will be resolved with the same disposition (withdrawn with prejudice, withdrawn without prejudice, denied or granted) as the ALPA Force Majeure grievance (ALPA grievance no. 01-10-01).
 

Thank you for your cooperation in this matter.
 

Very truly yours,

Karen Lascoli
MEC President
 
 

July 15, 2002

Doug McKeen, Vice President
US Airways Labor Relations
US Airways, Inc.
2345 Crystal Drive
Arlington, VA 22227
 

Re: US Airways Drug and Alcohol Policy

Dear Mr. McKeen:

During the recent restructuring negotiations, the Company agreed to alter its current Alcohol Misuse Prevention Program/ Drug Free Workplace anti-drug policy. Specifically, the Company agreed to modify its policy, provided for on page 40 of the most recent booklet, mandating termination for any employee found to use or abuse a controlled substance. The parties agreed that the first confirmed positive drug test will not automatically result in termination of employment.
 

Very truly yours,

Karen Lascoli
MEC President
 
 
 
 
 
 
 
 

July 15, 2002

Doug McKeen, Vice President
US Airways Labor Relations
US Airways, Inc.
2345 Crystal Drive
Arlington, VA 22227
 
 

Re: Membership data

Dear Mr. McKeen:

During the recent restructuring negotiations, the company agreed to forward monthly membership data to the Association of Flight Attendants via electronic mail.

Very truly yours,

Karen Lascoli
MEC President
Labor Seat on Board of Directors
 
 

A. Employee Nominee. Beginning on the effective date of the employee wage concessions in connec­tion with the Company’s restructuring (“Concessions”), the Union leadership for each group of employees, other than the pilots, which provides Concessions (the “Other Employees”) shall collec­tively be entitled to select and submit one nominee for election to the Board of Directors each year.

B. Qualifications. The Other Employees’ nominee shall be no less qualified than other nominees recommended by the Board for election, including experience at a major com­pany or institution, no conflict of inter­est and not employed by the Company.

C. Board Approval. The Other Employees’ nominee must be approved by the Board’s Nominating Committee and by the full Board of Di­rectors in accordance with the normal practices of the Board, with such ap­proval not to be unreasonably withheld. Following the Board’s approval of the Other Employees’ nominee, the Com­pany will use its reasonable best efforts to have the number of directors on its Board increased and the Other Employ­ees’ nominee appointed thereto.

D. Initial Appointment. Following the Board’s approval of the Other Employees’ nominee, such nomi­nee shall also be included as one of the Board’s recommended nominees for shareholder vote at the next annual meeting.

E. Board Committees. As a Board member, the Other Employ­ees’ nominee will be eligible to serve on Board committees on the same basis as other Board members.

F. Termination. The Other Employees’ right to select a nominee shall terminate upon the tenth anniversary of the effective date of the Concessions.
 

PERSONAL DAYS

A. Effective January 1, 2003, every flight attendant will be entitled to two Personal Days per calendar year to be used only in the event of an unexpected emergency. Flight attendants may request use of their Personal Day by making a verbal request to Crew Scheduling with a follow up call to his/her supervisor.

B. The Company’s decision to award Personal Days will be based on coverage. The Company will not require verification of the emergency.

C. Personal Days used will be deducted from vacation that is being accrued during the present year for use in the following year. If, at the time a Personal Day is used, all of the flight attendant’s vacation for the following year has already been awarded, the flight attendant will have the option to select Filler Days, Carry Forward Days or the smallest block of vacation and will be paid at the single day rate. If the smallest block of vacation is seven (7) days, the day will be removed, but the flight attendant will be paid at the rate applicable for seven (7) or more days of vacation for that block.

D. For Personal Days used prior to the vacation bid award, the first Personal Day used will be paid in accordance with Section 7.B.2, and the second Personal Day used will be paid in accordance with Section 7.B.1. Also, the flight attendant’s vacation accrual for the following year will be reduced accordingly.

E. After exhaustion of Personal Days, the Company maintains the discretion to grant additional days consistent with the current practice regarding Personal Emergency Days. For any such additional days, the flight attendant must contact his/her supervisor. These additional days will be unpaid and the Company may require verification of emergency.
 

COMMUTER POLICY

A. Effective January 1, 2003, the rules concerning Flight Attendants that live in other cities and commute to the assigned domicile on US Airways will be as follows:

1. The rules set forth in this Agreement apply only to Flight Attendants who designate themselves as commuters with the In-Flight Department and list an airport served by US Airways, US Airways Express and/or MidAtlantic.

2. The commuter must make all reasonable efforts to arrive in domicile at least one hour prior to scheduled check-in. However, if the commuter is unable to arrive as scheduled due to cancellation of two consecutive flights because of weather, mechanical, Company convenience, or if the two flights are significantly delayed (second flight posted at least 30 minutes late), the commuter shall notify Crew Scheduling as soon as possible prior to scheduled check-in. Crew Scheduling will have the option of assigning the commuter to any one of the following:

a.      Split the Flight Attendant back on his/her original pairing;

b.      Assign the Flight Attendant to any comparable pairing (i.e., same duty days); the Flight Attendant will be paid for time actually flown (including deadhead);

3.      If the Flight Attendant is not assigned a pairing, the Flight Attendant will be relieved of duty and his/her original pairing dropped. The Flight Attendant will be responsible to make up time lost if possible.

4.      The first three unable to commute incidents of this nature will not be treated as dependability infractions.
 
 

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