November 11, 2002
In This Issue:
MEC Special Update
United F/A''s Reach Tentative
,
MEC Update
On Nov. 5, 2002, the members of the AFA US Airways Master Executive Council met with representatives of management to get an update on the bankruptcy process and our airline''s current financial condition.
Management''s basic message was that the airline is not meeting revenue projections that were in its application to the Air Transportation Stabilization Board for a $1 billion loan guarantee. Management said that revenue shortfall could be problematic if the trend continues.
To make up the difference between its revenue projections and the shortfall, management suggested that it may come to the unions and ask for productivity improvements in labor contracts, but reiterated that it will not ask the bankruptcy court to make more cuts.
After hearing the financial update, MEC President Perry Hayes, sent CEO Dave Siegel a letter clearly stating that AFA and the flight attendants will NOT consider the new financial crisis to be serious until management takes further wage and benefit cuts, extends those cuts through the term of the ATSB loan process (like the flight attendant concessions are), and management concludes negotiations with the other labor groups on the property concerning productivity concessions.
In the meeting, Glass said that management would not be extending its concessions through the term of the ATSB loan guarantee, nor would they be taking more concessions. Thus, your MEC believes that management does not believe the additional cost savings are necessary.
We will continue to update you as new information comes to our attention.
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