AFA Section 1113(c) Response

This is AFA's Response to United's Nov 4, 2004 Demands

Page updated: December 22, 2004

See also: MEC Officer Letter Regarding Section 1113(c) Process (Dec 22, 2004)

AFA Section 1113(c) Response

Term

Five (5) years

Duration:

This Sideletter will become effective on the first day of the first schedule month following ratification [February 1, 2005] and will expire five (5) years following the effective date [February 1, 2010]. Upon the expiration date of this Sideletter, the terms contained herein shall cease to have any force and effect, with the exception of the change to the duration of the CBA as indicated below. Duration of CBA -- Amend Section 35 to reflect an amendable date of [May 1, 2010].

Compensation:

• 8% reduction in pay rates - Section 5.A.1. & 2.
• 8% reduction in purser pay, galley pay - Section 5.B. 1 & 2, Section 12.D.
• 8% reduction in LIP Pay – Section 5.0. & 12.C.7.l.
• 8% reduction in Language Pay – Section 12.C.7.i.

Build-Backs:

• 2% in 2007, 2008 and 2009
• Nine (9) months after the date of emergence from bankruptcy, UAL will meet with AFA to review the level of Flight Attendant pay cuts. Should the price of fuel of fall below $__(TBD)__ a gallon, Flight Attendant base wage rates and premium will be restored by __(TBD)__%.

Success Sharing:

• Modify Performance Incentive Program to postpone participation in the Success Sharing until 2007 - Section 5.J.

Hotels:

• Allow field layovers to move from the airport to mid-range hotels for layovers of 13:00 – 19:59 hours – Section 6.B.

Hours of Service:

• Provide an additional option to increase hours to 100/200/300. (Modify all necessary Sections i.e. Sections 7.A., 9.E., 12.E., 12.G., 12.O., 12.U., 19.A.4.)

Training:

• Reduce current 3 hour minimum pay to 1 hour minimum with a maximum limit on the number of trainings to 3 per year at the 1 hour rate – Section 15.A.

Uniforms:

• Eliminate uniform cleaning reimbursement- Section 16.G.

Electronic Communications:

• Provide for management’s ability to communicate with Flight Attendants via electronic means and for use of electronic means for submission of grievances on the Local and MEC level (AFA and Company will mutually establish limitations and criteria, understanding the current lack of equipment.) – add a new Section 3.V. and expand Section 26.F.

Tidying:

• TED tidying - expand to include tidying on all TED flights (For example at the end of duty day and ID(s) that turn around) - Section 4.K.

Sick Leave:

• Reduce the monthly accrual from 5 hours per month to 4 hours per month – Section 19.A.
• If a Flight Attendant picks up open flying to make-up sick leave there will be no discipline associated with that illness.

Printing of Contract:

• Eliminate the need for reprinting of the Contract as a result of ratification of this Side Letter of Agreement– Section 4.C.

Early-Out Program:

35 years or more	$1500 per month for 24 months
30-34 years	$1000 per month for 24 months
25-29 years	$750 per month for 24 months
24 or less	$500 per month for 24 months

If a Flight Attendant is not eligible to retire under the current Contract, benefits would be as follows:

• Eight (8) passes per year
• Retiree medical

Other Items:

• Purser Program – Training and Selection
• Expedited Arbitration, Expedited Negotiations
• Supplemental Insurance (AFLAC)
• Union Coalition hospitalization improvements (LEAPFROG) -
  Attachment A
• Fees associated with the negotiations
• Distribution of Equity
• Profit Sharing
• Standardization of the EURO
• Unlimited allocation for trip trades
• Section 9.F.7. Clarification
• Visa non-U.S. citizens
• Any other protections achieved by other employee groups

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ATTACHMENT A

HEALTH CARE COSTS AND QUALITY – (LEAPFROG)

The Company and the Union are committed to ensuring that employees have access to cost effective, quality health care coverage. Because of their ongoing concern about the quality of health care and costs, the parties agree to a Joint Committee on Health Care Costs and Quality. The Committee will have an equal number of representatives, including a co-chair, from each party including at least one representative from each Union participating in the Coalition bargaining. When appropriate, health care experts and representatives from the Company's health plans will be invited to attend Committee meetings. Each party may have their benefits consultants and advisors attend Committee meetings. The Committee will meet at least twice each year to discuss issues related to the health care program. The Committee also will meet with health care providers to express the parties' interest in obtaining quality health care at affordable prices. Among the topics that the parties will consider and discuss are:

• Costs under the Company’s medical plans.
• Overall plan design.
• Efficient use of health care resources by consumers.
• Cost management programs to address specific cost areas, including:
• Disease management of selected high-cost chronic diseases.
• Targeted health risk assessment.
• Catastrophic case management.
• Pharmaceutical management.
• Measurement tools for evaluating health plans’ and providers’ efficiency, including but not limited to programs of the National Academy of Sciences and National Quality Forum as well as accreditation from nationally recognized groups such as the National Committee for Quality Assurance (NCQA).
• Benchmark data from other employers.
• Opportunities to work with other employers, Unions or other parties interested in obtaining quality health care at affordable prices. The Company and the Union also will undertake initiatives to expand health care plan accountability for quality. Among these initiatives will be the Leapfrog Group patient safety coalition:
• Provider performance reporting on quality and efficiency to encourage use of the highest quality providers, including those who meet the highest patient safety standards. Provider programs focused on specific high-yield quality innovations shown to substantially improve patient safety.
• Computerized physician order entry. Physicians will be required to enter prescriptions into a hospital database to screen for inappropriate medications and dosages and avoid potential adverse drug reactions/interactions.
• Evidence-based hospital referral. Physicians will be required, where practical, to guide patients to facilities with superior outcomes (linked to significantly lower patient mortality).
• ICU physician staffing. Where available, physicians who are critical care specialists will provide ICU care.
• NQF Patient Safety Standard as a measure of overall hospital quality performance.

To encourage plan participants to use the highest quality health care available, it is the intent that the Company will provide education to employees regarding the effectiveness of physicians, hospitals and other health care providers as it becomes available. The Parties agree to implement sound purchasing rewards and incentives for plan participants that may be improvements for plan participants upon mutual agreement.

See also: United's Section 1113(c) demands (Nov 4, 2004)

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