AFA Council 40 Responds to Dave''s Letter

[P class=MsoNormal][SPAN class=EmailStyle16][FONT face=Arial color=black size=2][SPAN style=FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt]December 28, 2002[?xml:namespace prefix = o ns = urn:schemas-microsoft-com:eek:ffice:eek:ffice /][o:p][/o:p][/SPAN][/FONT][/SPAN][/P]
[P class=MsoNormal][SPAN class=EmailStyle16][FONT face=Arial color=black size=2][SPAN style=FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt][SPAN style=mso-spacerun: yes] [/SPAN][SPAN style=FONT-WEIGHT: bold]Do Not Want to Belabor the Point[o:p][/o:p][/SPAN][/SPAN][/FONT][/SPAN][/P]
[P class=MsoNormal][SPAN class=EmailStyle16][FONT face=Arial color=black size=2][SPAN style=FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt]Dear Local 40 members,[o:p][/o:p][/SPAN][/FONT][/SPAN][/P]
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[P class=MsoNormal][SPAN class=EmailStyle16][FONT face=Arial color=black size=2][SPAN style=FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt]I am, once again, compelled to write to you to give you the facts. By now, everyone should have received Mr. Siegel’s letter dated December 24, 2002 that came by US Postal Mail. With all due respect to our CEO, there are three misleading pieces of information that I, as your union representative must address.[o:p][/o:p][/SPAN][/FONT][/SPAN][/P]
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[P class=MsoNormal][SPAN class=EmailStyle16][FONT face=Arial color=black size=2][SPAN style=FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt]Dave states in his letter as follows:[o:p][/o:p][/SPAN][/FONT][/SPAN][/P]
[P class=MsoNormal][SPAN class=EmailStyle16][FONT face=Arial color=black size=2][SPAN style=FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt] [o:p][/o:p][/SPAN][/FONT][/SPAN][/P]
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[LI class=MsoNormal style=COLOR: black; mso-list: l0 level1 lfo3; tab-stops: list .5in][SPAN class=EmailStyle16][FONT face=Arial color=black size=2][SPAN style=FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt]Regarding competitive medical/dental: “ For example, the typical major corporation, the employee contribution is 20% or more for the standard medical plan, and in our proposed medical plan, the contribution is STILL only 7%. So even with the changes you are now approving, your health care benefits remain at the top of those offered in corporate America.â€.[o:p][/o:p][/SPAN][/FONT][/SPAN] [/LI][/OL]
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[P class=MsoNormal][SPAN class=EmailStyle16][FONT face=Arial color=black size=2][SPAN style=FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt]Average Corporate America employee receives yearly increases to absorb increases in co. benefits through yearly job reviews; WE AS FLIGHT ATTENDANTS DO NOT.[o:p][/o:p][/SPAN][/FONT][/SPAN][/P]
[P class=MsoNormal][SPAN class=EmailStyle16][FONT face=Arial color=black size=2][SPAN style=FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt] [o:p][/o:p][/SPAN][/FONT][/SPAN][/P]
[P class=MsoNormal][SPAN class=EmailStyle16][FONT face=Arial color=black size=2][SPAN style=FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt]7% Medical Dave is referring to is OUR option 1 which is the only medical contribution the co. did not alter/increase. Now you have to ask yourself why? Answer: 95% of the flight attendants chose option 3, because this is where they can protect themselves and their families financially if they should have to use the medical system in the course of the year. Contributions are high (and now much higher 19.4%), but no out-of-pocket expenses going forward. If flight attendants migrate to option 1, t[SPAN style=DISPLAY: none; mso-hide: all]Tgoing forward. e high (and now much higher 19.4%), but no out-of- pocket expenseses, as well as the life insurance.w of any fli[/SPAN]hey will put their families in the most financial risk going forward as the “out-of-pocket†expenses are extremely high and unaffordable now and going forward. The Company, however, gets to save major dollars on the premium costs for the individual f/as and their families, so THAT IS WHERE THEY WANT YOU TO BE. They will open the enrollment again in January in hope that many flight attendants, once you see the increases this year and going forward in Option 2 and 3, will switch and migrate to option 1, thus putting you financially “in harms wayâ€, if you should become ill and need medical access.[o:p][/o:p][/SPAN][/FONT][/SPAN][/P]
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[LI class=MsoNormal style=COLOR: black; mso-list: l0 level1 lfo3; tab-stops: list .5in][SPAN class=EmailStyle16][FONT face=Arial color=black size=2][SPAN style=FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt]Dave speaks about pensions costs going forward and [SPAN style=mso-spacerun: yes] [/SPAN]the co. legal obligation to contribute going forward. He also mentions the PBGC terminating the plan if the USAirways Board should decide to liquidate the Company if they do not get ratification.[SPAN style=FONT-WEIGHT: bold][o:p][/o:p][/SPAN][/SPAN][/FONT][/SPAN] [/LI][/OL]
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[P class=MsoNormal][SPAN class=EmailStyle16][FONT face=Arial color=black size=2][SPAN style=FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt] [o:p][/o:p][/SPAN][/FONT][/SPAN][/P]
[P class=MsoNormal][SPAN class=EmailStyle16][FONT face=Arial color=black size=2][SPAN style=FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt]If the company’s Board decides on a recommendation to liquidate this company, the PBGC will terminate the plan, WHICH MEANS THAT THE COMPANY WILL NOT CONTRIBUTE ANY MORE TO THE PLAN. IT ALSO MEANS THAT ANY CONTRIBUTIONS IN YOUR INDIVIDUAL PLAN STAYS INTACT AND GUARANTEED BY THE PBGC UNDER THEIR GUIDELINES. WHAT YOU HAVE ACCRUED YOU WILL GET UPON RETIREMENT AGE, NO MATTER WHAT YEAR YOU ARE IN. Our pension scale is very close to what we would receive in the plan if it were NOT terminated. What you need to know is that ALPA is 73% of the Company’s contributory liability over the next 7 years; IAM is approx. 14%; AFA is approx. 9%; and (other) is the remaining. What management won’t admit is that the contribution going forward on behalf of AFA will not be a problem [SPAN style=mso-spacerun: yes] [/SPAN]if our junior work force leaves the company within the 25 years due to difficult, permanent working rules and low wages, [SPAN style=mso-spacerun: yes] [/SPAN]the company will no longer have to concern themselves with contribution for flight attendants in a defined plan going forward. And beside that, flight attendants who happen to “flow†into Mid (wonderful) Atlantic don’t have a “defined pension planâ€. So, there you go; NO PROBEMO![o:p][/o:p][/SPAN][/FONT][/SPAN][/P]
[P class=MsoNormal][SPAN class=EmailStyle16][FONT face=Arial color=black size=2][SPAN style=FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt] [o:p][/o:p][/SPAN][/FONT][/SPAN][/P]
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[LI class=MsoNormal style=COLOR: black; mso-list: l0 level1 lfo3; tab-stops: list .5in][SPAN class=EmailStyle16][FONT face=Arial color=black size=2][SPAN style=FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt]Dave states: “You should trust us for the same reason that your UNION leaders have trusted us enough to sit down TWICE and CONSENSUALLY NEGOTIATE cost savings agreements. [o:p][/o:p][/SPAN][/FONT][/SPAN][/LI][/OL]
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[P class=MsoNormal][SPAN class=EmailStyle16][FONT face=Arial color=black size=2][SPAN style=FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt] [o:p][/o:p][/SPAN][/FONT][/SPAN][/P]
[P class=MsoNormal][SPAN class=EmailStyle16][FONT face=Arial color=black size=2][SPAN style=FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt]Again with all due respect….but HELLOOOOOO. We were given demands and threatened with door closure! No consensual negotiations here. All or nothing tactics. Two days is not negotiations folks just ask the other labor leaders like CWA.[o:p][/o:p][/SPAN][/FONT][/SPAN][/P]
[P class=MsoNormal][SPAN class=EmailStyle16][FONT face=Arial color=black size=2][SPAN style=FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt] [o:p][/o:p][/SPAN][/FONT][/SPAN][/P]
[P class=MsoNormal][SPAN class=EmailStyle16][FONT face=Arial color=black size=2][SPAN style=FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt]Also, I need to inform you that the proposal that was sent is INCOMPLETE. The medical deductibles starting in 2006 increases along with the co- pays do not reflect in this summary proposal. Also, the LTD states benefit current: maximum is $2,350, proposed:[SPAN style=mso-spacerun: yes] [/SPAN]maximum $7,500. Again, misleading. $7,500 is if your gross is $15,000 per month. Know of any flight attendant that makes $15,000 gross per month in wages??? Also, take a double look at Pre 65 retirees medical contributions and POST retirees, as well as the life insurance.[o:p][/o:p][/SPAN][/FONT][/SPAN][/P]
[P class=MsoNormal][SPAN class=EmailStyle16][FONT face=Arial color=black size=2][SPAN style=FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt] [o:p][/o:p][/SPAN][/FONT][/SPAN][/P]
[P class=MsoNormal][SPAN class=EmailStyle16][FONT face=Arial color=black size=2][SPAN style=FONT-SIZE: 10pt; FONT-FAMILY: Arial; mso-bidi-font-size: 12.0pt]In closing, I ask that you know the facts before you vote. Know that RSA (Retirement of Alabama) has the Federation of teachers pension (union) and also the Federal State Workers (union). I personally don’t like the idea of subsidizing their excellent retirement benefits. RSA [SPAN style=mso-spacerun: yes] [/SPAN]is not the only corporation in America that looks to invest…this is reality. Know that this company claims that their salaries will “snap back†when other labor groups “snap backâ€, their bonuses forfeited remain the same through 2003 only, and that they gave up their “whole life insurance premium and cash value policy, (keep in mind that many of these Exec. Just came on board less than a year and have NO “cash value†yet), and replaced this policy with a term life policy, and that our airline is in the best position going forward than any other major carrier today. You decide.[o:p][/o:p][/SPAN][/FONT][/SPAN][/P]
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copied from another posting...

HEALTH & WELFARE CHANGES - MEDICAL PLAN

Monthly contribution will be higher than was published
in the 2002 Restructuring Agreement. In 2003, an employee
only under the 80/60 plan will pay $16.00/month, or
$2.00 more. Employee and spouse will pay $32.00/month,
or $5.00 more. Employee and child will pay $31.00/month,
or $8.00 more.

In 2003, an employee selecting the 90/70 plan will
pay $35.00/month, or $8.00 more. Employee and spouse
will pay $70.00/month, or $15.00 more. Employee and
child will pay $66.00/month, or $14.00 more. Employee
and family will pay $116.00, or $26.00 more.

In 2003, an employee selecting the 100/80 plan will
pay $52.00/month, or $16.00 more. An employee and
spouse will pay $103.00/month, or $31.00 more. An
employee and child will pay $98.00/month, or $30.00
more. And employee and family will pay $170.00, or
$52.00 more.

The monthly contribution will increase as outlined
in the summary booklet through 2008. Copays, deductibles,
and out-of-pocket maximums are fixed through 2005.


...........

Seems to me your monthly cost for medical benefits are actually quite good. I'm paying $65.08 a month in my company for what is considered your 90/70 plan. Even when I worked in the hospitals here in PIT, we paid even higher monthly contributions for "home hostage healthcare" than you are going to have to pay. And this was back in the 1980's this started for hospital employees. If we even tried to go outside of the hospital network our out of pocket costs doubled.

The low cost of your contribution days are long over. It just took your management years to finally figure it out.
 
[P]
[BLOCKQUOTE][BR]----------------[BR]On 12/28/2002 9:40:31 PM trvlr64 wrote:
[P][BR]Seems to me your monthly cost for medical benefits are actually quite good. I'm paying $65.08 a month in my company for what is considered your 90/70 plan. Even when I worked in the hospitals here in PIT, we paid even higher monthly contributions for "home hostage healthcare" than you are going to have to pay. And this was back in the 1980's this started for hospital employees. If we even tried to go outside of the hospital network our out of pocket costs doubled.[BR][BR]The low cost of your contribution days are long over. It just took your management years to finally figure it out.[BR][BR]----------------[/P][/BLOCKQUOTE]
[P]Yeah, boo hoo hoo. My firm's medicals have shot through the roof for 2003. My 90/70 plan for a husband/wife is $223 a month; family is $406 a month.[/P]
 
This was the last sentence of Teddy's letter: "and that our airline is in the best position going forward than any other major carrier today. You decide" That sentence gives you some insight into her mindset. The belief is that we are "in the best position".

Folks, if that is what Teddy believes, you better find yourself another leader. If the loan doesn't come, our position will be on the unemployment line and our airline will be a memory. That does not equate to a "best position" in any sane person's mind. Teddy's legacy will be the same as Charlie Bryan of EAL or Bob Poli the head of the ATC union back in the early 80's. Both had the same mindset of Teddy.

Anyone can spin anything any way they like. Dave can. Teddy can. Jerry Glass can. Bronner, CAW, ALPA, RSA, the BOD, etc.... . Bottom line is VERY simple: No approval of the agreements, no ATSB loan, no airline. And Dave, Teddy and all the rest CANNOT spin that. Period.

I agree with Troubled Teddy on one point. You must decide. And the decision is also VERY simple. Do you want the job with the givebacks, or do you just not want the job? That is what your yes or no comes down to. That, my friends, is what they call unspinnable common sense.

mr
 
I agree with Troubled Teddy on one point. You must decide. And the decision is also VERY simple. Do you want the job with the givebacks, or do you just not want the job? That is what your yes or no comes down to. That, my friends, is what they call unspinnable common sense. [BR][BR]mr [BR][BR]------------------------------------------------------------------------------------------------- [BR] [BR] So from deductive reasoning we conclude our union leaders have no common sense and that our union dues would help pay higher insurance costs.[BR][FONT size=2][/FONT]
 
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So from deductive reasoning we conclude our union leaders have no common sense and that our union dues would help pay higher insurance costs.
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From what I have read so far, ALL the union leaders at U have recommended that these cuts pass (many have made rather negative statements, but ALL have recommended passage!). Not the same at UAL, where the IAM has not agreed. What is different here at U? Could it be that U is in dire straights and WILL LIKELY FOLD if these don't pass? That's what I would conclude. Then, you can see what health care costs in the real world.
 
[STRONG]Or you could conclude that Mr. Siegle is practicing union busting by sending out misleading information[/STRONG]. [STRONG]Consensual negotiations did not take place, and our union leaders do not trust him. The threat of f/a's losing their pensions is a joke. Our pensions are so small there is room to spare between our projected payout and what the PBGC guarantees! Unlike ALPA, Council 40's president is presenting the full scenario to her membership. Do the cuts fairly and honestly and the employees will buy into management's plans. Twist the facts, intimidate and cajole the employee group and when the truth surfaces management will think the financial portion of this nightmare was a walk in the park compared to the results of low employee morale. [/STRONG]
 
Explain that comment in more detail please. As a matter of fact I think MOST of our union leaders are showing surprising common sense. Troubled Teddy is showing none. In my humble opinion, of course.[BR][BR]-------------------------------------------------------------------------------------------------[BR][BR]
[P]I didn't want to get personal and reason for broad statement, but simply put, I agree with you 100% and then some![/P][FONT size=2][/FONT]
 
cav:

Explain that comment in more detail please. As a matter of fact I think MOST of our union leaders are showing surprising common sense. Troubled Teddy is showing none. In my humble opinion, of course.

mr
 
mlt:

If Siegle were union "busting" we would NOT have had the chance to negotiate (albeit under duress) anything. He would have negated the contracts under the BK code and could have done so long ago. You seem to miss that point. What is happening here is a change to the very industry that has provided substantially excellent pay and working conditions over the years. We are in front leading the pack in those changes. If you think the other major airlines will not follow suit in short order you are drinking from the same cup as your Troubled Teddy. Look at UAL for example. Ask yourself which management team is more "labor friendly".

If you and Teddy think he is bluffing you are sadly mistaken. Just as Poli and Bryan were at ATC and Eastern. This industry will no longer support the kinds of pay and working conditions you have been used to. And USAirways is the first to understand that. The MAJORITY of our union leadership also understand that. That's why you are presented anything to vote on in the first place. Unfortunately, some of our union members don't understand what is happening. And they will vote no as is there right. But in the end, the yes votes will win. And common sense will prevail over emotion and denial.

Our jobs and our industry have changed. You can blame whoever you want but that will not change that fact. And all the name calling and chest thumping may make you feel better but it will do no good.
 
[blockquote]
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On 12/29/2002 7:52:52 AM mrplanes wrote:

This was the last sentence of Teddy's letter: "and that our airline is in the best position going forward than any other major carrier today. You decide" That sentence gives you some insight into her mindset. The belief is that we are "in the best position".

Folks, if that is what Teddy believes, you better find yourself another leader. If the loan doesn't come, our position will be on the unemployment line and our airline will be a memory. That does not equate to a "best position" in any sane person's mind. Teddy's legacy will be the same as Charlie Bryan of EAL or Bob Poli the head of the ATC union back in the early 80's. Both had the same mindset of Teddy.

Anyone can spin anything any way they like. Dave can. Teddy can. Jerry Glass can. Bronner, CAW, ALPA, RSA, the BOD, etc.... . Bottom line is VERY simple: No approval of the agreements, no ATSB loan, no airline. And Dave, Teddy and all the rest CANNOT spin that. Period.

I agree with Troubled Teddy on one point. You must decide. And the decision is also VERY simple. Do you want the job with the givebacks, or do you just not want the job? That is what your yes or no comes down to. That, my friends, is what they call unspinnable common sense.

mr


----------------
[/blockquote]
mr:

Sounds like management is writing now...troubled Teddy is speaking the truth!Only union leader who dares to step out and speak the truth...stirring up your feathers, as well. Folks are sayng "Hey, live to fight another day". I say, "SNAP OUT OF IT", wake up and smell the torpedoes, THIS is THAT day!.

Trouble is, folks are not use to "stirring up the pot". We have been use to "good faith bargaining" and reasonability...that no longer exists.Folks at USAirways are still in "shell sh****". Every leader and member needs to GET OFF the "yellow brick road", as the The Great Oz has been exposed. Management took their pay cocessions aas Labor has and will "snap back" when labor does...towards the end of the contracts. However, if you will note, their bonuses remain the same...forfieted through 2003...what's that tell you? No Way in hell these busters are forfieting their bonsuses beyond 2003. Why? Cause they have great "vision", they know they will be rolling in the doe, right off labor's back starting in 2004. Sounds like a liquidable Co.????