CWA Proposel

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Dec 17, 2002
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[FONT face=Times New Roman size=6]
[P align=left]Recommendation[/P][/FONT][FONT face=Times New Roman]
[P align=left]This document contains modifications to the 1999 CWA/US Airways collective[/P]
[P align=left]Bargaining Agreement and the 2002 Restructuring Agreement as proposed by US[/P]
[P align=left]Airways under the threat of Bankruptcy Chapter 7, Liquidation and shutdown of[/P]
[P align=left]the airline. The attached CWA Term Sheet [STRONG]cannot be called a result of good[/STRONG][/P]
[P align=left][STRONG]faith bargaining between US Airways and CWA[/STRONG], but rather an ultimatum from[/P]
[P align=left]management to accept their demands or face the liquidation and sale of the[/P]
[P align=left]Company and its assets. It is under the threat of liquidation and the loss of[/P]
[P align=left]each member''s job at Us Airways that your CWA bargaining team, including CWA[/P]
[P align=left]Local Presidents and staff, recommend your yes vote for this Amended Term[/P]
[P align=left]Agreement.[/P]
[P align=left]CWA members and furloughed will participate in a ratification process for the[/P]
[P align=left]proposed Agreement, conducted by the American Arbitration Association. Your vote[/P]
[P align=left]may be cast on the AAA telephone and Internet system, available 24 hours per,[/P]
[P align=left]seven days a week, until the voting deadline. You will receive a mailing[/P]
[P align=left]directly from the American Arbitration Association explaining the voting[/P]
[P align=left]process.[/P]
[P align=left]SUMMARY of Major Changes[/P]
[P align=left]Concessions[/P]
[P align=left]Productivity and Revenue changes[/P]
[P align=left]. Eliminate Internet Support Work and Express Agent work except work except that[/P]
[P align=left]we keep Express Agent agreement covering Mainline stations that convert to[/P]
[P align=left]Express stations:[/P]
[P align=left]. Reduce the return on MDA job protection and benefits for furloughed mainline[/P]
[P align=left]employees {see attachment A}:[/P]
[P align=left]. No extension of the contract to STT and STX, two stations that should by law[/P]
[P align=left]be covered by the contract;[/P]
[P align=left]. Allow SARS to queue lines, assist passengers with check-in, and baggage[/P]
[P align=left]processing associated with kiosks;[/P]
[P align=left]. SARS and/or Skycaps may issue boarding passes/seat assignments at curbside[/P]
[P align=left].Allow 2 US Airways flights daily into Express cities, allowing Express agents[/P]
[P align=left]of other companies to do the work on the mainline flights;[/P]
[P align=left]. Allow 4 US Airways flights daily into newly opened cities without giving those[/P]
[P align=left]jobs to mainline employees, and allowing contracted employees from other[/P]
[P align=left]companies to have those jobs.[/P]
[P align=left]PAY AND BENEFITS:[/P]
[P align=left].[/P]
[P align=left]Increase the employee cost of our medical plan premiums, deductibles,[/P]
[P align=left]co-payments, and prescription costs effective July 1, 2003. Employees will be[/P]
[P align=left]allowed to change prior to implementation. See attached medical and benefit[/P]
[P align=left]summary and charts:[/P]
[P align=left]. Defer 5% of our salary for up to 18 months id US invades Iraq; or an act of[/P]
[P align=left]terrorism occurs that has a material adverse impact on commercial aviation;[/P]
[P align=left]salary to be paid back over the same number of months included in the deferral[/P]
[P align=left]to be paid back over the same number of months included in the deferral.[/P]
[P align=left]. Postpone the defined benefit search decision until six months after the[/P]
[P align=left]Company emerges from bankruptcy.[/P]
[P align=left]Returns[/P]
[P align=left]. Employees on voluntary furlough may retire from furlough consistent with[/P]
[P align=left]existing Article 15 of the contract, the same as involuntary furlough, as long[/P]
[P align=left]as there is an available system vacancy in the classification and status;[/P]
[P align=left]. The company will allow parents of employees furloughed after 9/11/01 to be[/P]
[P align=left]considered eligible family members for purposes of online non-revenue travel;[/P]
[P align=left]. The company is offering a profit sharing plan that requires the company[/P]
[P align=left]pre-tax profits to reach 7% before it pays out.[/P]
[P align=left]. Vesting in the equity stake we negotiated in the last concession agreement[/P]
[P align=left]will be somewhat accelerated;[/P]
[P align=left]. CWA Passenger Service will be given a seat on the US Airways board of[/P]
[P align=left]director’s equal with the pilots, mechanics and flight attendants.[/P][/FONT]
 
C

chipmunn

Guest
Local Presidents and staff, recommend your "yes" vote for this Amended Term Agreement.
 
Aug 20, 2002
167
0
I love the perk, parents get to fly when were out of a job....Great perk there, I think with the company letting all these people fly and were now able to bring on more, the planes will be full, full of non revs....The CWA wasn't afraid, all they care about is their dues and that seat on the board...Everyone has seen what they are asking mechanics, ramp and customer service.....Where is it in writing what they are asking from the flt att and pilots.....
 

airlineorphan

Senior
Aug 20, 2002
380
0
www.usaviation.com
[blockquote]
----------------
On 12/19/2002 6:49:13 AM hopethingswillbeok wrote:

I love the perk, parents get to fly when were out of a job....Great perk there, I think with the company letting all these people fly and were now able to bring on more, the planes will be full, full of non revs....The CWA wasn't afraid, all they care about is their dues and that seat on the board...Everyone has seen what they are asking mechanics, ramp and customer service.....Where is it in writing what they are asking from the flt att and pilots.....
----------------
[/blockquote]

Below is the list of concession demands the company made to AFA over the Thanksgiving holiday. It's all up on the AFA website at the below link.

-Airlineorphan

http://afausairways.org/Restructure/fa_savings.htm

Proposed Flight Attendant Productivity/Benefits Modifications and Returns

Total Savings: $26.0 million
Annual Savings*
Productivity

$10.2
Modify Rigs and VM

Trip rig of 1:4

Duty rig of 1:2.5 for day (0600-2159) and 1:2.25 for night (2200-0559)

Variable minimum day of 4.0 with floor of 3.0 and ceiling of 5.0

$1.6
Replace Primary, SAP, Secondary Lines System with Pref Bid; modify AIL so that flight attendants can pick up higher-time trips on same days as original trip or to pick up time on scheduled days off.

$4.2
Modify Reserve System

The Company will assign trips to reserves by first considering days of availability, legalities and qualifications. If the Company determines that more than one flight attendant is eligible for assignment based on these factors, the trip will be assigned to the flight attendant with the least number of credited hours in the month.

Reserves may not pass trip assignments.

The same criteria will be used for assignment of flight attendants to OPR duty, except that seniority will govern if all other factors are equal.

$1.7
Claiming Sick Leave

A flight attendant’s sick claim, when added to his/her previous and subsequent flying and other credited time for that month, may not exceed the flight attendant’s monthly guarantee (Section 8.E.1 and 8.E.2).

$1.5
Rescheduling

The Company may reschedule flight attendants prior to report.

The Company may reschedule a flight attendant after report even if there is an available unassigned reserve in domicile (eliminate 90 minute rule in Section 9.G.1.a(2)).

The window for advising a rescheduled flight attendant of the new duty assignment will be 4 hours for domestic flying and 6 hours for international flying after the flight attendant has been notified of the rescheduling (Section 9.G.1.a(3) and 9.G.2.a).

The window for returning a rescheduled flight attendant to domicile will be 12 hours for domestic flying and 24 hours for international flying (Section 9.G.4).

Annual*
Benefits

$6.7
See attached

War/Terrorism Contingency

In the event that the U.S. invades Iraq or another terrorist attack provokes a confrontation, there will be an immediate 5% pay deferral implemented for all employees for up to 18 months. The deferral will begin to be repaid to employees starting in the 19th month, and will continue to be repaid in 18 monthly installments. In the event the Company reports a pre-tax profit in any quarter during which the pay deferral is in effect, the deferral will immediately stop and repayment will begin in the next month and be repaid in monthly installments equal to the length of time the deferral was in place (e.g., pay deferral in place for 3 months, the Company reports a pre-tax profit, the repayment will occur over the next 3 months).

*Annual figures represent average annual savings through 2008.

Returns

Scope and Job Security

The Company will maintain a minimum fleet size of 279 Total Mainline Aircraft (inclusive of maintenance and spares), subject to a Force Majeure clause that includes acts of terrorism.

Mid Atlantic Airways (MDA)

The Company agrees to operate MDA as a separate division within mainline - US Airways, Inc.

Wages, benefits and work rules will match the AA Eagle flight attendants agreement.

Enhanced Profit Sharing

Enhanced profit sharing returns in exchange for participation in $200 million "Modified Restructuring Program" as follows:

Any year in which pre-tax profits exceed 7%, 50% of such profits in excess of 7% will be distributed to participating employees.

- Capped at $100 million

- Program ceases at end of loan period

- 50% paid as lump sum payments

- 50% paid to defined benefit pension plan above any minimum contribution requirements, but not in excess of maximum tax deductible contributions, under ERISA.

Pre-tax defined as excluding extraordinary and one-time adjustments.

Flight Attendant Pension Plan Proposal Changes

In addition to the proposed “Flight Attendant Productivity/Benefits Modifications and Returns,â€￾ the Company proposes the following flight attendant pension plan amendments:

1.8% accrual formula for the first 25 years

1% accrual for the next 5 years (26 – 30)

Minus 2% of Social Security for first 25 years

Minimum formula = 1.3% for first 25 years, 1% for next 5

Average Annual Cash Savings (2003 – 2008): $7.56M