US AIRWAYS E. Allen Hemenway Vice President Labor Relations
November 15, 2005
Captain Doug Mowery MEC Negotiating Committee Chairman - US Airways Air Line Pilots Association One Thorn Run Center Coraopolis, PA 15108 Captain Mark Burdick MEC Negotiating Committee Chairman - America West Air Line Pilots Association Two Gateway 432 N. 44th Street, Suite 340 Phoenix, AZ 85008
Dear Captains Mowery and Burdick: Our Transition Agreement effective September 23, 2005 provides for a process by which the parties will negotiate a single collective bargaining agreement applicable to the merged operations of America West and US Airways. As we prepare to commence those negotiations, I want to outline the Company's understanding of how we will proceed. Jerry Glass will be the Company's lead negotiator throughout this process. It is our desire to reach a fair and equitable single agreement with the Association as expeditiously as possible. To that end, Jerry has had preliminary discussions with the two of you and other members of the Joint Negotiating Committee (JNC) to schedule meeting dates and discuss the Association's view of how to reach a single agreement in a timely manner. In those discussions, the Association's suggestion was to use the America West collective bargaining agreement as a template, dividing the negotiations and sections into three phases as follows:
Phase I - Administrative Section 5 Compensation for expenses, hotels and transportation 6 Moving expenses 7 Vacations 8 Deadheading 9 Miscellaneous Flying 10 Transfer of non-flying or supervisory duty 13 Leaves of Absence 14 Sick L eave 15 Physical Examinations 16 Workers' Compensation Benefit 17 Missing Internment, prisoner or hostage of war benefits 18 Witnesses and Representatives � (Witnesses and Representative provisions From AWA CBA will be incorporated into this and other grievance related Sections) 19 Investigation and Discipline 20 Grievances 21 System Board of Adjustment 22 Seniority 23 Reduction in Force, Furlough and Recall 26 General 29 Union Security and check off Phase II- Operational Section 4 Minimum Pay Guarantees 11 Training 12 Hours of Service 18 International from US CBA 24 Filling of Vacancies 25 Scheduling Phase III - Economic/Other Section 1 Recognition, Scope and Management Rights 2 Definitions 3 Compensation 27 Health and Welfare Benefits 28 Retirement 30 Duration
In regard to Letters of Agreement, there was discussion about the possibility of appointing a subcommittee to review all applicable letters from both contracts, deleting those that no longer apply and incorporating provisions from as many of the applicable letters as possible into relevant sections of the contract. We think it is an excellent suggestion and would like to pursue a process to achieve this objective. In the discussions to date with members of the JNC, our collective approach is to focus on completing each phase before going on to the next. However, as discussed in a conference call on October 18 , there may be sections or portions of sections in Phases I and II that could have some economic impact to the Company above the current cost levels. Therefore, if we get to a point during negotiations where the Association makes proposals that seek to modify our current pilot cost structure, then previously closed sections may be re-opened to engage in trading of values to address overall pilot labor costs. To date, we have confirmed the following meeting dates and locations. Dates: Nov 15,16,17 Nov 29, 30, Dec 1 Dec 6,7,8,9 Jan 10, 11, 12 Jan 24, 25, 26 Feb 7, 8, We can determine collectively what time to begin on the first day of each negotiating session. Finally, as previously discussed with members of the JNC, the Company's view is that, absent an alternative agreement negotiated by the parties, under the successorship language of the respective contracts, the US Airways collective bargaining agreement would be the surviving agreement. As stated in this letter, our desire is to reach a consensual single agreement as expeditiously as possible. However, if we are unable to reach an agreement in a timely manner, or are unable to reach an agreement with the same cost structure as the US Airways agreement the Company reserves its rights to apply the US Airways collective bargaining a greement to the merged operation. We look forward to working together to reach an agreement soon.
Sincerely, E. Allen Hemenway
Vice President, Labor Relations