MEC CODE-A-PHONE UPDATE # 2
December 11, 2002
This is Roy Freundlich with US Airways MEC update number two for Wednesday, December 11, with two new items:
Item 1. The tentative agreement reached between the Negotiating Committee and the Company last evening includes the following changes to the Restructuring Agreement:
· The hourly rates of pay are changed as follows but are not cumulative. In other words, each change is compared to the rate that was scheduled for the applicable period under the Restructuring Agreement:
o In year 2003, the rates of pay are reduced by 8 percent from the Restructuring Agreement pay rates.
o In year 2004, the rates of pay are reduced by 6.5 percent from the Restructuring Agreement pay rates.
o In year 2005, the rates of pay are reduced by 5 percent from the Restructuring Agreement pay rates.
o In year 2006, there is no change in the rates of pay from the Restructuring Agreement pay rates.
o In year 2007, there is a 2 percent increase in the rates of pay from the Restructuring Agreement pay rates.
o In year 2008, there is a 2 percent increase in the rates of pay from the Restructuring Agreement pay rates.
o In year 2009 and beyond, the increases in rates of pay are as per the Restructuring Agreement.
· The 1:3 duty rig and variable minimum day are modified as follows:
o The duty rig is 1:2.25 for day and 1:2 for night
o The variable minimum day is a five-hour average with no floor or ceiling
· Vacation pay is reduced from 4 hours to 3 hours 45 minutes for seven or more days and 2 hours 39 minutes for less than seven days
· Permit TDY to extend training hold.
· Reduce training pay from 4 hours to 2 hours 50 minutes.
· Permit furloughed and disabled pilots to perform simulator training.
· Establishment of training lines of time to avoid bought trips.
· Limitations on sick leave pay for both reserves and lineholders.
· Greater flexibility to reschedule crews already on duty.
· Reserve system will have two categories of reserves, R and S, where trips will be awarded based on pilots’ projected credited pay hours.
· Accept the concept to replace primary lines, SAP, secondary lines, and RTBS with a preferential bidding system (algorithm). Implementation scheduled for no later than June 2004.
· A joint implementation review committee will be established to approve all implementation steps for new system.
· Accept the concept of an automated availability list (AIL) no later than June 4, 2004. Pilots awarded trips on weekend will be required to work those weekend days.
· Productivity improvements will be implemented in conjunction with attrition and will not cause any pilots to be furloughed or displaced to an SJ.
· Minimum block hour restrictions established for implementation of productivity improvements subject to force majeure.
· Minimum fleet size to increase to 279 aircraft from 245 subject to force majeure.
· In the Jets for Jobs program, non-MDA Jets for Jobs rates of pay are as follows:
o Captains paid in accordance with the applicable contract with longevity under that contract; no longevity credit for prior US Airways service.
o First Officer rates pay top of scale under applicable contract.
· MDA rates of pay for US Airways pilots are as follows:
o Captains paid in accordance with MDA contract with longevity under that contract; no longevity credit for prior US Airways service.
o First Officer rates pay top of scale under MDA contract.
· MDA may be operated as a separate division of mainline with wages,
benefits and work rules to match AA Eagle pilots contract but will be included in mainline scope and grievance.
· Profit-sharing program includes provisions that 50 percent of such profits in excess of seven percent will be distributed to participating employees up to a specified cap. Pilots’ share to be determined by share of Company’s $200 million cost reduction program.
· Equity participation includes an accelerated vesting schedule for the pilots’ 19.33% of the fully diluted common stock and other protections. ALPA waives its change of control rights to permit RSA to invest in the Company in return for RSA’s agreement to include vested pilot stock in any major sale of RSA stock if a pilot chooses to participate.
· A war contingency provision that includes an immediate 5 percent pay deferral for up to 18 months.
· Changes to the pension plan effective January 1, 2003 include 1.8% accrual (down from 2.4%) for first 25 years, then 1% accrual for next 5 years, cap of 50%. Accruals above 50% as of 12/31/02 are grandfathered. The new accrual rates only apply to service years starting January 1, 2003, and later.
o No lump sum or subsidized joint and survivor payment options on future accruals. These, however, continue to apply to all accruals as of 12/31/02.
o No service credits for time on furlough during period January 1, 2003, and after.
· Significant changes to the heath care plan.
The MEC will review the tentative agreement tomorrow with the Negotiating Committee.
Item 2. The MEC reconvened its fourth quarter meeting today in PIT and considered agenda items in subcommittee and plenary sessions. Action was taken on over 15 items, including:
· Appointing Captain Randy Haas as Interim CIRP Chairman.
· Directing the Flight Security Committee Chairman to ascertain a timeline for implementation of the Federal Flight Deck Officer Program by the US Airways Flight Ops Management.
· Approving the “Flight Suits†brand leather jacket as an optional uniform item for the Company to implement to the uniform code.
The MEC also received a report from the Aeromedical/HIMS Committee
For tomorrow, December 12, the schedule includes receiving reports from Negotiating Committee, MEC Chairman, MEC Secretary-Treasurer, and Violations and Enforcement Committee, and consideration of agenda items in plenary and subcommittee.
For Friday, December 13, the schedule includes the election of the MEC Chairman, and consideration of agenda items in plenary and subcommittee as necessary.
The meeting is scheduled to reconvene at 9 a.m. tomorrow and 9:30 a.m. Friday. Candidates for the MEC Chairman position are invited to interview when available.
Please remember we have 1,356 pilots on furlough, with 392 pilot furloughs scheduled for January 7, and 79 additional pilot furloughs anticipated through April 2003.
Thank you for listening.
December 11, 2002
This is Roy Freundlich with US Airways MEC update number two for Wednesday, December 11, with two new items:
Item 1. The tentative agreement reached between the Negotiating Committee and the Company last evening includes the following changes to the Restructuring Agreement:
· The hourly rates of pay are changed as follows but are not cumulative. In other words, each change is compared to the rate that was scheduled for the applicable period under the Restructuring Agreement:
o In year 2003, the rates of pay are reduced by 8 percent from the Restructuring Agreement pay rates.
o In year 2004, the rates of pay are reduced by 6.5 percent from the Restructuring Agreement pay rates.
o In year 2005, the rates of pay are reduced by 5 percent from the Restructuring Agreement pay rates.
o In year 2006, there is no change in the rates of pay from the Restructuring Agreement pay rates.
o In year 2007, there is a 2 percent increase in the rates of pay from the Restructuring Agreement pay rates.
o In year 2008, there is a 2 percent increase in the rates of pay from the Restructuring Agreement pay rates.
o In year 2009 and beyond, the increases in rates of pay are as per the Restructuring Agreement.
· The 1:3 duty rig and variable minimum day are modified as follows:
o The duty rig is 1:2.25 for day and 1:2 for night
o The variable minimum day is a five-hour average with no floor or ceiling
· Vacation pay is reduced from 4 hours to 3 hours 45 minutes for seven or more days and 2 hours 39 minutes for less than seven days
· Permit TDY to extend training hold.
· Reduce training pay from 4 hours to 2 hours 50 minutes.
· Permit furloughed and disabled pilots to perform simulator training.
· Establishment of training lines of time to avoid bought trips.
· Limitations on sick leave pay for both reserves and lineholders.
· Greater flexibility to reschedule crews already on duty.
· Reserve system will have two categories of reserves, R and S, where trips will be awarded based on pilots’ projected credited pay hours.
· Accept the concept to replace primary lines, SAP, secondary lines, and RTBS with a preferential bidding system (algorithm). Implementation scheduled for no later than June 2004.
· A joint implementation review committee will be established to approve all implementation steps for new system.
· Accept the concept of an automated availability list (AIL) no later than June 4, 2004. Pilots awarded trips on weekend will be required to work those weekend days.
· Productivity improvements will be implemented in conjunction with attrition and will not cause any pilots to be furloughed or displaced to an SJ.
· Minimum block hour restrictions established for implementation of productivity improvements subject to force majeure.
· Minimum fleet size to increase to 279 aircraft from 245 subject to force majeure.
· In the Jets for Jobs program, non-MDA Jets for Jobs rates of pay are as follows:
o Captains paid in accordance with the applicable contract with longevity under that contract; no longevity credit for prior US Airways service.
o First Officer rates pay top of scale under applicable contract.
· MDA rates of pay for US Airways pilots are as follows:
o Captains paid in accordance with MDA contract with longevity under that contract; no longevity credit for prior US Airways service.
o First Officer rates pay top of scale under MDA contract.
· MDA may be operated as a separate division of mainline with wages,
benefits and work rules to match AA Eagle pilots contract but will be included in mainline scope and grievance.
· Profit-sharing program includes provisions that 50 percent of such profits in excess of seven percent will be distributed to participating employees up to a specified cap. Pilots’ share to be determined by share of Company’s $200 million cost reduction program.
· Equity participation includes an accelerated vesting schedule for the pilots’ 19.33% of the fully diluted common stock and other protections. ALPA waives its change of control rights to permit RSA to invest in the Company in return for RSA’s agreement to include vested pilot stock in any major sale of RSA stock if a pilot chooses to participate.
· A war contingency provision that includes an immediate 5 percent pay deferral for up to 18 months.
· Changes to the pension plan effective January 1, 2003 include 1.8% accrual (down from 2.4%) for first 25 years, then 1% accrual for next 5 years, cap of 50%. Accruals above 50% as of 12/31/02 are grandfathered. The new accrual rates only apply to service years starting January 1, 2003, and later.
o No lump sum or subsidized joint and survivor payment options on future accruals. These, however, continue to apply to all accruals as of 12/31/02.
o No service credits for time on furlough during period January 1, 2003, and after.
· Significant changes to the heath care plan.
The MEC will review the tentative agreement tomorrow with the Negotiating Committee.
Item 2. The MEC reconvened its fourth quarter meeting today in PIT and considered agenda items in subcommittee and plenary sessions. Action was taken on over 15 items, including:
· Appointing Captain Randy Haas as Interim CIRP Chairman.
· Directing the Flight Security Committee Chairman to ascertain a timeline for implementation of the Federal Flight Deck Officer Program by the US Airways Flight Ops Management.
· Approving the “Flight Suits†brand leather jacket as an optional uniform item for the Company to implement to the uniform code.
The MEC also received a report from the Aeromedical/HIMS Committee
For tomorrow, December 12, the schedule includes receiving reports from Negotiating Committee, MEC Chairman, MEC Secretary-Treasurer, and Violations and Enforcement Committee, and consideration of agenda items in plenary and subcommittee.
For Friday, December 13, the schedule includes the election of the MEC Chairman, and consideration of agenda items in plenary and subcommittee as necessary.
The meeting is scheduled to reconvene at 9 a.m. tomorrow and 9:30 a.m. Friday. Candidates for the MEC Chairman position are invited to interview when available.
Please remember we have 1,356 pilots on furlough, with 392 pilot furloughs scheduled for January 7, and 79 additional pilot furloughs anticipated through April 2003.
Thank you for listening.
