January 11, 2005
Mr. William O’Driscoll
President and Directing General Chairman
IAMAW-District 142
Dear Mr. O’Driscoll:
The IAM has been in continued discussion with the Company since the Union agreed to
submit to membership ratification the final Company proposal dated January 6, 2005.
During these discussions the Union and the Company have discussed certain additional
enhancements and/or clarifications. This letter will document and formalize these
enhancements and clarifications to the Company January 6, 2005 proposal as follows:
A. Employees who are furloughed as a result of the outsourcing on or before June 1, 2006
will:
1. Be entitled to an additional three months of health and welfare benefits at
employee contribution rates (beyond those applicable under normal CBA
furlough provisions).
2. If not retirement eligible, be entitled to sell accrued sick leave at the rate
described in attachment A of the Company proposal, not to exceed a total
dollar amount of $5,000. An employee who elects to sell their sick leave under
these provisions and subsequently returns through a bid or recall they will have
any remaining sick leave accrual not sold.
3. Be entitled to lifetime travel space available travel provided they have fifteen or
more years of service.
4. Be entitled to Company-provided outplacement services, including resume
writing, interviewing skills career counseling and job fair opportunities.
B. The current Company plan is that the transition to outsourcing for utility work will
take place over approximately a three-month period following the effective date of the
agreement. PHL will be the first city outsourced, and utility employees in PHL will be
offered a fleet service full-time or part-time position in PHL under the specified terms of
attachment B of the Company proposal, prior to being involuntarily furloughed as a result
of the outsourcing of PHL utility work (This option is possible due to the large number of
fleet vacancies in PHL, combined with the increases due from the February flight
2345 Crystal Dr., Arlington, VA 22227 703-872-6234 FAX 703-872-7821
schedule and the fact that fleet in PHL will have exhausted their recall list).
Other utility or mechanic and related employees who are furloughed as a result of
outsourcing will continue to be subject to the provisions of the Company final proposal
under attachment B-Preferential Hiring.
C. The Company agrees to meet and confer with the union in order to establish rules
regarding the implementation of targeted selection for lead mechanic and inspector
vacancies. Additionally, any panel interview process set up under targeted selection will
include participation by a lead mechanic or inspector from the existing complement.
D. The Company will meet and confer with the union within five days following the
ratification to decide the applicable holidays under the agreement.
The Company recognizes that outsourcing will result in some furloughs. It is our
expectation that by delaying any outsourcing until after 3-1-05 that additional vacancies
may be created as a result of an increase in retirements. We further believe that this event,
combined with current vacancies, will materially reduce the need for involuntary
furloughs.
These additional provisions in this letter are offered contingent upon ratification of the
agreement. As indicated in the original January 6, 2005 cover letter, if the agreement is
not ratified the Company will implement terms and conditions as it considers appropriate.
It is safe to assume that the additional provisions included in this letter will not be
implemented. In fact, it is possible the Company’s condition in the event of a failed
ratification would deteriorate to the point where it might not be economically possible to
pay any furlough pay and benefits whatsoever to employees severed as a result of
outsourcing.
Sincerely:
E. Allen Hemenway
Vice President, Labor Relations
US Airways, Inc.
