This information is no longer current - it is for reference only. It is an archive review of events that took place during United Airline's Chapter 11 Bankruptcy from December 9, 2002 - February 1, 2006.

Summary of AFA's Opening Proposal

Page updated: October 22, 2002

The following summary was AFA's Opening Proposal. The AFA Recovery Plan Tentative Agreement does not include all of the components of this proposal. This was the first step in the process to achieve specific Flight Attendant savings in United's Recovery Plan to avoid bankruptcy. AFA's participation in that plan does reflect that all parties involved understand that Flight Attendants are starting from industry average, not industry leading wages. AFA is participating in this Recovery Plan to stave off bankruptcy, preserve Flight Attendant jobs, attain protections in the event of a bankruptcy filing, and provide AFA Members the ability to vote on any changes to our Contract.

October 22, 2002

Dear AFA Member:

The Association of Flight Attendants United Master Executive Council has been watching the financial situation of United Airlines very closely over the past year. After consulting with our financial analyst and attorneys and examining all of UAL’s financial data, we determined that without substantial outside funding UAL will not be able to pay its debt obligations. The Airline Transportation Stabilization Board (ATSB) loan guarantee is critical to obtain funding and prevent bankruptcy.

Therefore, the decision has been made to negotiate a package including a limited reduction in wages and other items for a five and one-half year period to provide UAL with the opportunity to rebuild our Company and provide us with job security. Following is a summary of AFA’s opening proposal for our contribution to United’s recovery efforts. Our focus has been to minimize the effect on our pay rates while insisting any concessions must take into account our industry average wages and 10 year Agreement. We will not make changes to our medical and dental plans nor to our retirement benefits. The AFA MEC has addressed the financial concerns of those members who are in years 1-5 of our pay scale by proposing to exempt those years from pay cuts. Once they reach year 6, those Flight Attendants will participate in the pay cuts along with everyone else.

Our airline is at a crossroads. We have laid the foundation for AFA’s participation in United’s recovery efforts. The decisions we make together, as Members of AFA, will determine the future of United Airlines and our jobs. The final decision will be based on Membership ratification. If a tentative agreement is reached on our proposal, it will be provided to you in order for you to cast your vote. Until then, stay informed through AFA communication channels: www.unitedafa.org, E-lines, 1-800-DEAR-AFA, and Local Council Meetings.

In Solidarity,

The Association of Flight Attendants United Airlines Master Executive Council:

Greg Davidowitch
MEC President

Helen McArdle
MEC Vice President

Shirley Barber
MEC Secretary-Treasurer

Dianne Tamuk
Council 5 – JFK
Karen Mazuer
Council 6 – EWR
Kevin Creighan
Council 7 – LHR
Dianna Rushing
Council 8 – ORD
Sheri Meehleis
Council 9 – DEN
Diane Tucker
Council 10 - SEA
Dawn Marie Bader
Council 11 - SFO
Ralph Barbosa
Council 12 – LAX
Ed Kalahiki
Council 14 – HNL
Ellie Larson
Council 15 – TPE
Cecilia Latorre
Council 16 - SCL
Lesly Adams
Council 20 – FRA
Michael Ely
Council 21 – DCA
Moe Kerrigan
Council 22 – MIA
Terry Knoy
Council 23 – PHL
Sharon Benjamin
Council 24-CDG
Mary Anne Houser
Council 25 - LAS
Linda O’Connor-Jennings
Council 26 - HKG
Karan Scopa
Council 27 - BOS
Marc Zehr
Council 38 – NRT
 

 

SUMMARY OF AFA’S PROPOSAL TO UNITED AIRLINES

The United Union Coalition plan is that each Union will determine the specific items that would make up that group’s participation. The following items represent AFA’s proposal for Flight Attendants’ participation in the recovery plan:

Effective Date and Duration:

The effective date for all changes would be on the first day of the month after the loans are secured. The Contract amendable date will be five and one half years from the effective date.

Reductions in Hourly Rates of Pay:

The current "Book Rates" for years 1-5 of the pay scale would not be reduced. Book Rates for years 6 - 14 of the pay scale would be reduced by 3.6% until the amendable date. Flight Attendants would continue to progress through the pay levels. The hourly rates of pay would be built back in 2006 by 3.9% and 2007, by 3.9%. Funding for pension benefits would continue to be based on the contractual Book Rates and not the reduced hourly rates.

Scheduled Future Pay Increases:

All Flight Attendants would forego the lump sum payments scheduled for March 2003 and March 2005. The 2% Book Rate increase scheduled for 2004, would only apply to those in years 1 - 5 of the pay scale. The increase in the domestic narrow-body purser pay scheduled for August 2003 and the increases in language qualified and language incentive pay scheduled for August 2004 would be postponed until the amendable date. The Wage Arbitrations for 2003 - 2006 would be canceled.

"Me Too" Vacation Improvement:

The current vacation accrual listed in Section 18.A. would remain the same. The new vacation accruals obtained as part of our “me too” contractual language would be delayed until bidding vacations for 2009.

E/Y Understaffing:

Until the amendable date, understaffing pay will be paid based on the total number of Flight Attendants on a flight versus E/Y assignments. No Flight Attendant can be required to move from their bid position.

Hotels:

Until the amendable date, the requirement to be at a downtown or downtown-like location would change from 13 hours to 14 hours.

Uniform:

The allocation of uniform points would be reduced by fifty percent (50%) per year until the amendable date.

AFA’S PROPOSED CONDITIONS FOR PARTICIPATION

Flight Attendants would be provided with the following contractual improvements and protections in return for concessions.

Trades with Open Flying:

AFA is proposing to eliminate allocations on trades with open flying. The Company would not deny trades unless they are illegal.

RDO’s:

There would no longer be a monthly limit on the number of RDO’s. Flight Attendants would have the ability to opt an additional 5 hours per month using the RDO process. This would not cause a reduction in our workforce nor should it have a significant impact on Reserves.

Early Out Retirement Program:

Should there be a furlough before the amendable date, an early out Retirement Program would be negotiated.

Discipline Exemptions:

Flight Attendants would not be disciplined for legitimate use of sick leave. Also, in recognition of the reduction in wages, no discipline for wage garnishments unless all avenues have been exhausted.

Returns on Investments:

  • Revenue/Profit Sharing: A revenue sharing program would be instituted to provide that Flight Attendants as well as other employees would benefit from an increase in revenue by the Company.
  • Equity: Stock options would be provided consistent with those provided to other employees.
  • Bankruptcy Protection-Section 1113: The Section 1113 letter provides that United would not request additional cuts should they file for bankruptcy.
  • Governance: Governance provisions would be provided consistent with the terms provided to other employee groups.
  • Successorship: A sideletter would provide protections in the event there is a change in ownership of the Company, wet lease, or sale of assets and incorporates the AFA merger policy.

Foreign Nationals:

The Sideletter on page 256 allowing the hiring of Foreign Nationals based in SINSW and BKKSW, would be deleted.

Avolar:

Our MEC Grievance regarding Avolar would be resolved. The Company would pay AFA $13,350. Should United pursue ventures of this type in the future, negotiations will take place with AFA to resolve all issues. If negotiations are not successful, the open issue(s) would be resolved by expedited arbitration at the System Board.

COLA:

Section 5.K, COLA, has reached its maximum of $48 per month. AFA’s proposal would base COLA on the CPI (Consumer Price Index) but would not have a maximum. This change would become effective on the amendable date.

Reporting Requirements:

Quarterly reports of actual Flight Attendant Savings as a result of our participation would be provided to AFA.

Miscellaneous:

  • AFA Flight Pay Loss: Currently the Company charges AFA a fringe override for all AFA volunteers who take an AFA trip drop. The current override would be eliminated.
  • Make-Up AFA: AFA volunteers would have the ability to make-up AFA Flight Pay Loss using the RDO process.
  • AFA Staff Travel: The current Sideletter on page 226 provides 6 positive space tickets for use by employees of AFA. The change would result in unlimited travel as long as the AFA employee conducts business for United Flight Attendants.
  • Grievance: A Letter of Understanding would provide for improvements in the grievance process at all levels.
  • Uniforms: In recognition of our status as Inflight Safety Professionals, stripes would once again be added to the cuff of our uniform jackets.
  • Purser Meetings: Purser meetings would be canceled until the amendable date. Purser selection will be deleted and pursers would be trained to proficiency.
  • Furlough Benefits: Flight Attendants involuntarily furloughed during the life of this agreement would receive medical, dental and on-line pass benefits as if they remained on active status.
  • Early Opener: We will begin negotiating a new Agreement one year before the amendable date of this new agreement which is 5-31-08 and if an agreement is not reached by the amendable date, a 5% pay raise will be implemented the day after the amendable date.

Association of Flight Attendants, AFL-CIO
UAL Master Executive Council
October 22, 2002

Return to Recovery Plan Tentative Agreement

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