MEC Letter and Introduction to the AFA Restructuring Agreement

PDF Version of letter below

The AFA Financial Review Committee and advisors achieved a tentative agreement with United Airlines on April 4, 2003. During this negotiations, AFA has faced three furloughs totaling layoffs of over 7,000 of our colleagues, the Iraqi war, the CRAF operation, United’s reinstatement of the pass travel charges and new horrific sick leave policy, ALPA and American Airlines Flight Attendants reaching a tentative that would set an oppressive bar at the negotiating table, and the sluggish economy and passenger load factors that have impacted travel in staggering levels well below 2002. Even with our furloughs and interim sacrifice of 9% in total Flight Attendant wage reductions, the company is still in a financial quagmire with no end in sight.

AFA retained financial analysts and bankruptcy attorneys for over a year to assist us in independent evaluations of the financial state of our company. The AFA United MEC determined that unprecedented steps should be taken to protect the best interests of the United Airlines Flight Attendants. We have worked for months to achieve the daunting task of negotiating the extensive sacrifices to our Collective Bargaining Agreement which are vital to the restructuring of our airline.

Our negotiators worked tirelessly to achieve the goals set through the survey, individual Flight Attendant e-mails, phone calls, faxes, letters, and feedback from Local Councils. Those goals included maintaining and preserving as many work rules as possible; preserving our medical and dental benefits; minimizing cuts to pay; and protecting retirement. We were able to achieve most of these goals. However, our airline is changing – and we will be required to change along with it or be forced by the bankruptcy court to make changes. As you review this tentative, it is important that you remember the context in which the negotiations took place and make the ultimate decision of ratifying our negotiated changes or reject the agreement and place our future in the hands of a bankruptcy judge. Your decision will not only determine our future working conditions, it will determine the future of our Company.

The enormity of concessions required from Flight Attendants over the term of this agreement equals over $1.8 Billion. To achieve concessions of this level, sweeping changes had to be made to our Contract. This tentative agreement includes a pay cut of 9% off of pay and premium levels prior to the interim agreement, cancellation of the 5% lump sum payment for 2003 and 2005 and the cancellation of the 2% book rate increase in 2004. The company demanded all employee medical, dental and retirement packages be the same. Changes to our medical and dental are extensive, but our negotiators were able to ease in some of these provisions to minimize the impact on Flight Attendants. Our Retirement Plan is substantially changed, but it will not take effect until July 1 and AFA representatives will be working very hard to ensure that each Member has all the information needed to make personal decisions for the future. Although there are some legality and duty rig changes, by and large the Contract remains intact. Perhaps most important, there are no changes to our scope language. We will also participate in a success sharing plan, profit sharing, and have equity in the company.

Prior to casting your vote, we encourage you to read this booklet carefully including the electronic voting instructions, attend a roadshow, view the video and webcast through our website, www.unitedafa.org. 

The United Master Executive Council unanimously recommends that you choose to ratify this agreement. We have thoroughly reviewed the Tentative Agreement and has carefully weighed the risks of not reaching or approving a consensual agreement and of having the Bankruptcy Court decide the future of our Contract. Take part in our collective future, cast your vote by April 29 at noon EDT.

In Solidarity,

The Association of Flight Attendants United Airlines Master Executive Council:

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