In this E-Line
(All of this information is available on our website -
http://www.afausairways.org)
Proposed Flight Attendant Productivity/Benefits Modifications and Returns
Proposed Benefits Changes
Voluntary Furlough 3 & VF3 Request Form
CBS for all CLT and PHL Flight Attendants only
US Airways management requested a meeting with all labor groups on Tuesday, November 26. At this meeting we were told the company's revised business plan needs an additional $200 Million in concessions from all labor groups in order to qualify for the ATSB loan. All labor groups received PROPOSALS. Below is a summary of the company's PROPOSAL to AFA.
AFA will be participating in a conference call with the Labor Coalition on Friday morning. The AFA MEC will discuss the outcome of this meeting in a conference call Friday evening. We will keep you posted on further developments. To reiterate, this is a company PROPOSAL. AFA has not agreed to any changes and we are not currently in negotiations with the company.
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Proposed Flight Attendant Productivity/Benefits Modifications and Returns
Total Savings: $26.0 million
Productivity
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
Annual Savings* - $10.2
Productivity
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.
Annual Savings* - $1.6
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Productivity
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.
Annual Savings* - $4.2
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Productivity
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).
Annual Savings* - $1.7
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Productivity
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 Savings* - $1.5
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Benefits - See
http://www.afausairways.org/Restructure/be...ch_proposal.htm
Annual* Savings - $6.7
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*Annual figures represent average annual savings through 2008.
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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).
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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.
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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.
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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.
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Flight Attendant Pension Plan Proposal Changes
In addition to the proposed “Flight Attendant Productivity/Benefits Modifications and Returns,†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): $7.56
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Proposed Benefits Change
Because of the size of Proposed Benefits Change information, it does not lend itself to this newsletter. The page can be viewed at:
http://www.afausairways.org/Restructure/be...ch_proposal.htm (copy and paste this address).
The information on the above web page deals with:
Health Plan Design and Eligibility
Contributions
Retiree Life Insurance
Long-Term Disability and
Workers Compensation
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