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Q & A Covering the CWA-US Airways Tentative Transformation Plan Agreement
12/10/2004
These are the questions that have received the most attention and are not an all inclusive list of potential questions.
Q: If the 2004 CWA-US Airways Transformation Agreement is ratified on December 23, 2004, what will be the official effective date of this agreement?
A: If the Agreement is ratified by the CWA membership, it has to be submitted to the Bankruptcy Court by the Company for approval. We expect this to take place on the first court date in January 2005.
Q: On what date will the new pay scales take effect?
A: As a general rule, new pay scales take effect on the first day of a new pay period following the effective date. However, the Bankruptcy Court imposed 21% pay reduction took place on Monday during the middle of the pay period. We will keep you informed as we get the information.
Q: I opted to carry over two weeks of vacation I earned in 2004 to 2005. Will those days be paid at 100% if this agreement is ratified?
A: Beginning on the effective date of the 2004 Transformation Plan Agreement vacation days, including DAT and carry over vacation days that are taken regardless of when earned, shall be paid at 100% of the employee's applicable rate of pay at the time the vacation day is taken.
Q: If I separate from the company, how will my carry-over vacation be treated? Will this be paid at 100 percent upon ratification?
A: Employees who separate from the Company after the effective date will be paid for all unused accrued vacation at 100% of the rate of pay in effect at the time of separation.
Q: I work in DMSC, if the DMSC or the BCC work is outsourced or the work is transferred to Reservations, I understand we have 3 options: (A) We can take the Early Out (EO), (B) We can take a job in reservations at the reservations rate of pay, or © We can take furlough. Are these correct?
A: If the work is outsourced or transferred within the EO application period, all three options apply. If the EO application period has expired, and the work is later outsourced or transferred to reservations, those affected employees would be able to transfer to reservations or take a furlough. As always, all CWA covered employees have the option to file a system transfer to other classifications (PE-66 transfers).
Q: If I choose the furlough option as a DMSC or BCC rep, do I get up to 15 weeks furlough pay, then unemployment compensation?
A: Based on your years of service and your status of either full time or part time, you would receive furlough benefits up to 15 weeks furlough allowance and you could be eligible, at the conclusion of your furlough allowance, for those unemployment benefits provided by the state in which you live. In addition, furlough benefits include health, dental and life insurance benefit provisions for the specific period as described in Article 15 of the 1999 CBA.
Q: If I work in DMSC or BCC and choose to furlough, will I have recall to Reservations?
A: No, but you may exercise your right to system transfer to Reservations while on furlough. You will retain recall should they re-open the DMSC or BCC center for a maximum of 4 years.
Q: Are DMSC and BCC reps, which are affected by a closure of their facility and choose to go to a reservations position, required to successfully pass company training for the new position, and if so, what happens if I fail the training?
A: According to Article 29, paragraph C, in our 1999 CBA; you must successfully complete company training in a new classification. If you are unsuccessful in passing the training or unable to transfer, then you will be placed on furlough status, subject to the terms outlined in the CBA.
Q: I am a full-time employee involuntarily displaced to part-time. If I elect to participate in the EO program, am I considered full-time or part-time for the EO benefits?
A: For the purposes of health care, you would continue to contribute at the same levels you contributed at as an active employee and you would receive either 4, 8 or 12 months of health care as applicable. Term Pass Travel is 5 years, 10 years or Lifetime. The cash benefit is 50% of the amount listed in the Tentative Agreement ( $5,000, $10,000 or $15,000). If you are a Reservation, DMSC, or BCC rep, whose jobs may be outsourced, you will receive 50% of the $5,000 bonus.
Q: Will the recall period for furloughed employees remain at the current 4 years?
A: Yes
Q: If I am at the top of scale now as a CSA and I have 22 years with the company, where do I fall on the new pay scale?
A: You would be at the 12 year pay scale step (Top of scale $18.00) and step back to the 11th year pay step ($17.00) and freeze at that step for 2 years. Each employee will be frozen at their applicable pay step beginning on the effective date of the Agreement, and everyone will be unfrozen exactly two years later.
Q: Once the pay freeze is over, what is my next progression in pay?
A: Everyone that was reduced one step on the pay scale will be advanced one step on the same pay scale at the completion of the freeze. When you reach your pay date seniority, if you are not at the top of scale you would be advanced to the next pay step. For those that are at TOS, their next increase will be in 2008, on their pay date seniority, to the TOS increase to $18.60. Additionally, on 1/1/08, the $0.25 customer contact premium will be reinstated.
Q: The summary we received does not reflect the correct general wage increases stated in the Tentative Agreement, which one is correct?
A: The summary was incorrect; the correct increases that apply to all classifications are:
1/1/2009 3.0% increase
1/1/2010 4.0% increase
1/1/2011 4.0% increase
1/1/2012 2.0% increase
Q: How are the sick days paid at 50% applied?
A: The first 3 sick days you use, as a group or individually, between the effective date of the Agreement and June 30, 2005 will be paid at 50% of your pay. Your sick bank will be debited for 50% of the time used as well. For example, if you are sick 2 days in a row, then sick again a month later for 1 day, those would be the 3 days you are paid at 50%. Beginning July 1, 2005, the first 5 sick days you use, as a group or individually, will be paid and debited at 50% through the rolling year.
Q: I speak a second language, and during the course of my job, it may be easier for me to work with a customer in the foreign language I speak, am I eligible for the $0.30 per hour language premium?
A: If there is a language duty assignment in your location, you would be eligible for the $0.30 per hour language premium for all hours worked if you are scheduled or temporarily assigned by management to cover that duty assignment. Additionally, to be considered qualified in a foreign language; you must first pass a written or oral exam approved by the Union and Company.
Q: If I take the EO, will I be able to apply for Unemployment compensation?
A: Anyone can apply for unemployment compensation but US Airways has told us that they will challenge anyone that applies for unemployment that has taken the EO.
Q: How will the company administer an application for EO in conjunction with an employee's projected retirement?
A: At a location, if the company designates more then one release date participants may exercise an EO; those release dates would be bid in seniority order based on classification, and duty assignment. The company may, based on needs of service, including new hire training, designate any number of release dates to activate EO applications as long as all release dates are transitioned within 15 months of the initiation of the EO program. If you are eligible to retire on your release date you would be eligible for both the EO benefits and the retiree benefits outlined in the Tentative Agreement.
Q: If I choose to retire in conjunction with the EO, do I still have to give a 45 day notice to retire? If I give a 45 day notice and am locked into a date (to retire), will I be guaranteed on that date that I will be able to leave with the EO?
A: Employees eligible to retire, who request and are awarded EO will have their retirement date commence on the first day of the month following their release date from EO. The request for EO will include a provision which allows employees who are eligible for retirement to indicate their EO request to retirement on the EO application.
Q: If I choose to retire and would like to take advantage of the EO option in regards specifically to the 12 months of health insurance, then can I opt to retire and take advantage of the pre-65 buy-in health insurance with my sick bank? In other words, take the buy-out, use 12 months of insurance and prior to the end of the 12 months, put in for retirement and be able to use sick bank for purchase of health insurance?
A: Employees who take EO and who retire as described above, will have the option to take the lump sum payment for sick leave, or to apply the sick leave towards retirement benefits following the expiration of medical benefits applicable under the EO provisions. Such election will be made on the EO application form.
Q. Will part-timers and full-timers be treated differently in regards to the transition period for the EO.
A: Yes, that is possible, since needs of service at each location will drive the transition requirements for the EO.
Q: What will the tax rate be on the EO cash?
A: Withholding on EO lump sum payments will be at the federal "supplemental" withholding rate of 25% in addition to FICA and applicable state withholding.
Q: Since CSD premium is being eliminated, will those holding a CSD position, be able to go back into their respective departments?
A: CSD employees can only bid back to vacancies in other Res area duty assignments, ie. International desk, Gen res, etc.
NOTE:
Part II of the Q and A will be published by close of business Monday afternoon and it will address term pass benefits for EO participants and legal questions regarding the Early Ejection button/No Administrative Claim, Section 1113 Waiver, Amendment/Rejection and any other pertinent questions that arise over the weekend.
CWA Local Officers and Staff
Additional stories are on www.CWA.net
Q & A Covering the CWA-US Airways Tentative Transformation Plan Agreement
12/10/2004
These are the questions that have received the most attention and are not an all inclusive list of potential questions.
Q: If the 2004 CWA-US Airways Transformation Agreement is ratified on December 23, 2004, what will be the official effective date of this agreement?
A: If the Agreement is ratified by the CWA membership, it has to be submitted to the Bankruptcy Court by the Company for approval. We expect this to take place on the first court date in January 2005.
Q: On what date will the new pay scales take effect?
A: As a general rule, new pay scales take effect on the first day of a new pay period following the effective date. However, the Bankruptcy Court imposed 21% pay reduction took place on Monday during the middle of the pay period. We will keep you informed as we get the information.
Q: I opted to carry over two weeks of vacation I earned in 2004 to 2005. Will those days be paid at 100% if this agreement is ratified?
A: Beginning on the effective date of the 2004 Transformation Plan Agreement vacation days, including DAT and carry over vacation days that are taken regardless of when earned, shall be paid at 100% of the employee's applicable rate of pay at the time the vacation day is taken.
Q: If I separate from the company, how will my carry-over vacation be treated? Will this be paid at 100 percent upon ratification?
A: Employees who separate from the Company after the effective date will be paid for all unused accrued vacation at 100% of the rate of pay in effect at the time of separation.
Q: I work in DMSC, if the DMSC or the BCC work is outsourced or the work is transferred to Reservations, I understand we have 3 options: (A) We can take the Early Out (EO), (B) We can take a job in reservations at the reservations rate of pay, or © We can take furlough. Are these correct?
A: If the work is outsourced or transferred within the EO application period, all three options apply. If the EO application period has expired, and the work is later outsourced or transferred to reservations, those affected employees would be able to transfer to reservations or take a furlough. As always, all CWA covered employees have the option to file a system transfer to other classifications (PE-66 transfers).
Q: If I choose the furlough option as a DMSC or BCC rep, do I get up to 15 weeks furlough pay, then unemployment compensation?
A: Based on your years of service and your status of either full time or part time, you would receive furlough benefits up to 15 weeks furlough allowance and you could be eligible, at the conclusion of your furlough allowance, for those unemployment benefits provided by the state in which you live. In addition, furlough benefits include health, dental and life insurance benefit provisions for the specific period as described in Article 15 of the 1999 CBA.
Q: If I work in DMSC or BCC and choose to furlough, will I have recall to Reservations?
A: No, but you may exercise your right to system transfer to Reservations while on furlough. You will retain recall should they re-open the DMSC or BCC center for a maximum of 4 years.
Q: Are DMSC and BCC reps, which are affected by a closure of their facility and choose to go to a reservations position, required to successfully pass company training for the new position, and if so, what happens if I fail the training?
A: According to Article 29, paragraph C, in our 1999 CBA; you must successfully complete company training in a new classification. If you are unsuccessful in passing the training or unable to transfer, then you will be placed on furlough status, subject to the terms outlined in the CBA.
Q: I am a full-time employee involuntarily displaced to part-time. If I elect to participate in the EO program, am I considered full-time or part-time for the EO benefits?
A: For the purposes of health care, you would continue to contribute at the same levels you contributed at as an active employee and you would receive either 4, 8 or 12 months of health care as applicable. Term Pass Travel is 5 years, 10 years or Lifetime. The cash benefit is 50% of the amount listed in the Tentative Agreement ( $5,000, $10,000 or $15,000). If you are a Reservation, DMSC, or BCC rep, whose jobs may be outsourced, you will receive 50% of the $5,000 bonus.
Q: Will the recall period for furloughed employees remain at the current 4 years?
A: Yes
Q: If I am at the top of scale now as a CSA and I have 22 years with the company, where do I fall on the new pay scale?
A: You would be at the 12 year pay scale step (Top of scale $18.00) and step back to the 11th year pay step ($17.00) and freeze at that step for 2 years. Each employee will be frozen at their applicable pay step beginning on the effective date of the Agreement, and everyone will be unfrozen exactly two years later.
Q: Once the pay freeze is over, what is my next progression in pay?
A: Everyone that was reduced one step on the pay scale will be advanced one step on the same pay scale at the completion of the freeze. When you reach your pay date seniority, if you are not at the top of scale you would be advanced to the next pay step. For those that are at TOS, their next increase will be in 2008, on their pay date seniority, to the TOS increase to $18.60. Additionally, on 1/1/08, the $0.25 customer contact premium will be reinstated.
Q: The summary we received does not reflect the correct general wage increases stated in the Tentative Agreement, which one is correct?
A: The summary was incorrect; the correct increases that apply to all classifications are:
1/1/2009 3.0% increase
1/1/2010 4.0% increase
1/1/2011 4.0% increase
1/1/2012 2.0% increase
Q: How are the sick days paid at 50% applied?
A: The first 3 sick days you use, as a group or individually, between the effective date of the Agreement and June 30, 2005 will be paid at 50% of your pay. Your sick bank will be debited for 50% of the time used as well. For example, if you are sick 2 days in a row, then sick again a month later for 1 day, those would be the 3 days you are paid at 50%. Beginning July 1, 2005, the first 5 sick days you use, as a group or individually, will be paid and debited at 50% through the rolling year.
Q: I speak a second language, and during the course of my job, it may be easier for me to work with a customer in the foreign language I speak, am I eligible for the $0.30 per hour language premium?
A: If there is a language duty assignment in your location, you would be eligible for the $0.30 per hour language premium for all hours worked if you are scheduled or temporarily assigned by management to cover that duty assignment. Additionally, to be considered qualified in a foreign language; you must first pass a written or oral exam approved by the Union and Company.
Q: If I take the EO, will I be able to apply for Unemployment compensation?
A: Anyone can apply for unemployment compensation but US Airways has told us that they will challenge anyone that applies for unemployment that has taken the EO.
Q: How will the company administer an application for EO in conjunction with an employee's projected retirement?
A: At a location, if the company designates more then one release date participants may exercise an EO; those release dates would be bid in seniority order based on classification, and duty assignment. The company may, based on needs of service, including new hire training, designate any number of release dates to activate EO applications as long as all release dates are transitioned within 15 months of the initiation of the EO program. If you are eligible to retire on your release date you would be eligible for both the EO benefits and the retiree benefits outlined in the Tentative Agreement.
Q: If I choose to retire in conjunction with the EO, do I still have to give a 45 day notice to retire? If I give a 45 day notice and am locked into a date (to retire), will I be guaranteed on that date that I will be able to leave with the EO?
A: Employees eligible to retire, who request and are awarded EO will have their retirement date commence on the first day of the month following their release date from EO. The request for EO will include a provision which allows employees who are eligible for retirement to indicate their EO request to retirement on the EO application.
Q: If I choose to retire and would like to take advantage of the EO option in regards specifically to the 12 months of health insurance, then can I opt to retire and take advantage of the pre-65 buy-in health insurance with my sick bank? In other words, take the buy-out, use 12 months of insurance and prior to the end of the 12 months, put in for retirement and be able to use sick bank for purchase of health insurance?
A: Employees who take EO and who retire as described above, will have the option to take the lump sum payment for sick leave, or to apply the sick leave towards retirement benefits following the expiration of medical benefits applicable under the EO provisions. Such election will be made on the EO application form.
Q. Will part-timers and full-timers be treated differently in regards to the transition period for the EO.
A: Yes, that is possible, since needs of service at each location will drive the transition requirements for the EO.
Q: What will the tax rate be on the EO cash?
A: Withholding on EO lump sum payments will be at the federal "supplemental" withholding rate of 25% in addition to FICA and applicable state withholding.
Q: Since CSD premium is being eliminated, will those holding a CSD position, be able to go back into their respective departments?
A: CSD employees can only bid back to vacancies in other Res area duty assignments, ie. International desk, Gen res, etc.
NOTE:
Part II of the Q and A will be published by close of business Monday afternoon and it will address term pass benefits for EO participants and legal questions regarding the Early Ejection button/No Administrative Claim, Section 1113 Waiver, Amendment/Rejection and any other pertinent questions that arise over the weekend.
CWA Local Officers and Staff
