Res Head,
The issue of voluntary furloughs for the flight attendants is becoming a more complex one since the original Voluntary Furlough of 2001.
As the prior reply correctly stated, the 2001 Voluntary Furlough did offer medical for 2 years and unlimited passes. The apparent reason for the 2001 offer stemmed from the Flight Attendant Agreement which provided a No Furlough Clause. The value of the No Furlough Clause was immense, as indicated in the last Proxy Statement by U; the company was required to acknowledge that the furloughs of the pilots and flight attendants in 2001 could be considered a material liability of considerable cost should a decision making body rule against the company.
One of the key components of the 2002 amended Flight Attendant Contract was the dismissal of the "No Furlough" grievance filed by the flight attendants. In consideration for withdrawing the AFA grievance against the company, AFA received a new furlough protection provision which allows for a Voluntary Separation Package as well as a new Voluntary Furlough Offer which offers unlimted passes and a no-contest clause for claiming unemployment benefits.
What is the cost to U? Good question. It will cost U the unemployment compensation contribution for potentially 2 waves of furloughs; one voluntary and later, involuntary. What were the savings? Most likely staggering. Had the flight attendant and pilots won their grievances, the company would have to pay minimum monthly guarantees to 1070 pilots and 2,800 flight attendants. HUGE sums of money.
