jenny@nw
Veteran
Special Hotline – Distribution on Hold
07JUN07
The following is a letter to you from the AFA-CWA legal department.
AFA is in receipt of allegations in connection with the Northwest contract ratification vote that concluded on May 29, 2007. Those allegations are contained in a challenge filed by Member Guy Meek, and spearheaded by Member Jose Ibara. At the direction of AFA International Secretary Treasurer Kevin Creighan, the AFA Ballot Certification Committee is conducting an investigation of this challenge.
Since no evidence was submitted in support of the allegations, Mr. Meek has been given until June 22, 2007 (two weeks from tomorrow) to submit such evidence. The Committee will then complete its investigation and issue a determination of whether there is “due cause†under Section IX of the AFA Policy Manual to void the ballot and order a reballoting.
Because the $182 million dollar equity claim contained in this agreement was contingent upon a ratified contract, the AFA Legal Department has advised us that distribution of the funds from the sale of that claim must be halted until the challenge filed by Mr. Meek is finally resolved or withdrawn by Mr. Meek. Even though we have every confidence in our balloting process, we cannot pre-judge this challenge and assume that it will be dismissed.
Before the investigation is completed, even the remotest chance that a challenge would overturn the vote and cause a reballoting leaves us no choice but to delay the distribution of the equity claim funds. If that money were distributed and it were later found that the ballot should be overturned, then the Company, and possibly other claim holders, could potentially sue AFA and individual members for the return of the proceeds.
Since the Early Out and the Surplus Severance Payment were also contingent upon a ratified agreement we must also instruct the Company to delay those payments until Mr. Meek’s challenge is resolved or withdrawn. There is no other way to avoid the legal risk that flight attendants who qualify for those payments might be required to return the money to the Company in the event Mr. Meek’s challenge overturns the ratification vote.
The equity claim funds will continue to be held in an interest-bearing account for the benefit of the flight attendants eligible to participate in the distribution. Once this matter is resolved, or Mr. Meek withdraws his challenge, we will then instruct the Company to release the funds and to proceed with the Early Out and the Surplus Severance Payment.
We regret any inconvenience this may cause, but this is made necessary by the challenge that has been filed. We have been given assurances by the International Office that the investigation will be conducted fairly and will be completed as quickly as possible.
07JUN07
The following is a letter to you from the AFA-CWA legal department.
AFA is in receipt of allegations in connection with the Northwest contract ratification vote that concluded on May 29, 2007. Those allegations are contained in a challenge filed by Member Guy Meek, and spearheaded by Member Jose Ibara. At the direction of AFA International Secretary Treasurer Kevin Creighan, the AFA Ballot Certification Committee is conducting an investigation of this challenge.
Since no evidence was submitted in support of the allegations, Mr. Meek has been given until June 22, 2007 (two weeks from tomorrow) to submit such evidence. The Committee will then complete its investigation and issue a determination of whether there is “due cause†under Section IX of the AFA Policy Manual to void the ballot and order a reballoting.
Because the $182 million dollar equity claim contained in this agreement was contingent upon a ratified contract, the AFA Legal Department has advised us that distribution of the funds from the sale of that claim must be halted until the challenge filed by Mr. Meek is finally resolved or withdrawn by Mr. Meek. Even though we have every confidence in our balloting process, we cannot pre-judge this challenge and assume that it will be dismissed.
Before the investigation is completed, even the remotest chance that a challenge would overturn the vote and cause a reballoting leaves us no choice but to delay the distribution of the equity claim funds. If that money were distributed and it were later found that the ballot should be overturned, then the Company, and possibly other claim holders, could potentially sue AFA and individual members for the return of the proceeds.
Since the Early Out and the Surplus Severance Payment were also contingent upon a ratified agreement we must also instruct the Company to delay those payments until Mr. Meek’s challenge is resolved or withdrawn. There is no other way to avoid the legal risk that flight attendants who qualify for those payments might be required to return the money to the Company in the event Mr. Meek’s challenge overturns the ratification vote.
The equity claim funds will continue to be held in an interest-bearing account for the benefit of the flight attendants eligible to participate in the distribution. Once this matter is resolved, or Mr. Meek withdraws his challenge, we will then instruct the Company to release the funds and to proceed with the Early Out and the Surplus Severance Payment.
We regret any inconvenience this may cause, but this is made necessary by the challenge that has been filed. We have been given assurances by the International Office that the investigation will be conducted fairly and will be completed as quickly as possible.
