ALPA Code-A-Phone update 12 Mar 03


Feb 11, 2003
March 12, 2003
This is Roy Freundlich with a US Airways MEC update for Wednesday, March 12, with two new items:
Item 1. The MEC's grievance challenging the Company's unilateral action to terminate the pilots' pension plan was heard today at its initial level by US Airways Vice President of Flight Operations Captain Ed Bular. Captain Bular did not render an immediate decision and told ALPA that he will take the time to first become fully educated on the issues of the grievance before making his ruling.
MEC Grievance Chairman Craig Skinner and MEC attorney Paul Girdany presented ALPA's case and reminded the parties involved that the Company's ruling on this grievance is limited only to the issue of the Company terminating the pilots' defined benefit plan without ALPA's consent. Any consideration of the consequences to the Company on the plan's continuation or termination should not weigh into Captain Bular's decision.
ALPA discussed the Bankruptcy Court's decision that although the plan may meet the financial standards for a distress termination, a distress termination would require a resolution to a contractual dispute on the issue. ALPA made it clear during the grievance hearing that it never consented to a termination of the pension plan. ALPA reminded the Company that the bankruptcy judge also determined that the Court was not the proper forum to decide if a plan termination violated our collective bargaining agreement and declined to make a finding on that issue. US Airways' attorney agreed with that explanation of the judge's finding.
When Captain Bular makes his ruling, it will be communicated to the pilot group. If the grievance is denied at this level, the MEC will submit the grievance to the System Board of Adjustment for arbitration.
Item 2. The Negotiating Committee and ALPA advisors met with management yesterday to discuss pension plan issues.
As its first priority, the Committee discussed ALPA's interest in saving the defined benefit plan and talked about the approval process that would be necessary to have a retroactive freeze placed on the DB plan. Though a retroactive freeze would result in a savings, management responded that it cannot afford the money that would be needed, even if a savings could be gained. The Committee is still reviewing the Company's actuarial model and awaiting results on several different plan-funding scenarios.
The Committee also presented management with a proposed Letter of Agreement that outlined ALPA positions if an agreement on a follow-on plan, if needed, is to be achieved.
These items include the following:
. Rescind the January 1, 2003 and the subsequent pay reductions stated in Letter of Agreement #84.
. Reduce the pay decreases toward the June 31, 2002 pay rates.
. Snapback to book rates provisions.
. Pilots displaced at MidAtlantic would take their longevity for pay purposes and they would receive accrued furlough pay.
. Management would pursue action against Stephen Wolf, Rakesh Gangwal and Larry Nagin to recover the 35 million dollar retirement payments received from the Company prior to their departure.
. If, during the agreement, management gets a bonus or compensation increase, the pilots will receive a lump sum of three percent of the prior twelve months' pay.
. Governance modifications for ALPA representation.
. The daily vacation pay and credit would snapback on January 1, 2005.
. Sick leave would revert to procedures under the prior contract.
. Reserves would bid up to 8 immovable days off.
. The LTD waiting period would be reduced from 6 months to 120 days.
. Retirees would be able to buy life insurance like the rest of the employees in the Company.
. Pending grievances, including the Mesa grievance, the improper furlough grievance,
the issue regarding the staffing of Midway aircraft 31 and above, and the disagreement regarding the use of ACARS would all be resolved.
. Displacement for future furloughees as it relates to the Affected Pilot List would be discussed.
. The Company will pay the fees and expenses incurred by the ALPA in connection with this agreement.
ALPA also presented the Company with a document that explained what a pilot defined contribution plan, if needed, would have to look like to gain approval. The Committee also told the Company that the document is not an agreement to terminate the plan under any circumstances.
The Company is expected to offer a counterproposal by tomorrow.
Please remember we have 1,827 pilots on furlough.
Thank you for listening.


Oct 29, 2002
must say looks like you guys are once again taking a crap on the other labor groups at their own solidarity. you get yours we'll try to get ours.


Sep 11, 2002
Can somebody explain what all this means? It appears they want to renegotiate a significant part of their concessions. What once was a pension issue has now turned into this?

It's getting to the point even I would not mind to see US go chapter 7. Let Chip and his buddies go to Saudi or Korean Air.


Aug 20, 2002
Alpa isoperating in a cya mode.... This is utterly rediculous that hey try to pull this crap out of the bag at the last minute.The company wont agree to anything less than what percentage alpa has already agreed to simply because afa and others have an agreement that is based on percentage wise , what alpa gave. This would open all doors for other unions to comeback and want their percentages reduced. Alpa need to stick to the pension issue, if they continue with these tactics they will loose even more respect from fello employees. Alpa needs to stop using the rest of the contract as a bargin tool. Were here in the eleventh hour and although they prob did agree to this pension mess or mad a mistake and wasnt paying attention , alpa now wants to cya. Careful guys your messing with a fire and theres a can of gasoline inches away .


Jan 15, 2003
On 3/13/2003 7:06:27 AM lindy wrote:

Can somebody explain what all this means? It appears they want to renegotiate a significant part of their concessions. What once was a pension issue has now turned into this?

It's getting to the point even I would not mind to see US go chapter 7. Let Chip and his buddies go to Saudi or Korean Air.
Knowing ALPA did you expect anything else? Why could anyone act surprised? Reading their posts do you really think they had any other intentions? The judge really screwed up leaving this the way he did. Savy