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AMFA Recklessly Enters Retiree Health Care Concessionary Negotiations
UNITED: AMFA Recklessly Enters Retiree Health Care Concessionary Negotiations
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April 22, 2004
Mr. O.V. Delle-Femine, National Director
Aircraft Mechanics Fraternal Association
P.O. Box 1221
Laconia , NH 03247-1221
Mr. Tom Mannion
Airline Contract Administration Coordinator
AMFA Local 9
1250 Bayhill Drive Suite 201
San Bruno , CA 94066
Dear Mr. O.V. Delle-Femine and Mr. Tom Mannion:
In a recent e-mail, United’s counsel Marilyn Pearson indicated that only one authorized retiree representative had “commenced substantive bargaining†to change the health benefits of its retirees. After contacting all retiree groups, the Association of Flight Attendants – CWA, AFL-CIO (AFA) has determined that your organization is the one that has decided to start negotiations. This is a strategic mistake that threatens to undercut the position of all the other employees, including the Flight Attendants, in trying to limit or avoid the Company’s proposed cuts to retiree medical benefits.
Each of the other representatives believes that it is premature to begin negotiations before the evaluation provided for under Section 1114 is completed. Their professionals as well as ours – which total three actuarial firms and three financial advisors - are still sifting through the tens of thousands of pages of information United has provided to date. Indeed representatives, as recently as this week, have made requests for additional relevant information that United has yet to provide. Once a full evaluation is concluded, each representative will be able to make a fully informed decision on how to respond to the Company’s proposal.
If it is determined that the Company’s proposed cuts are not necessary, or that they are not fair and equitable, then the Company would not be entitled to force these cuts on the retirees through Section 1114 proceedings. There can be no possible advantage for your members in going forward at this time because the analysis might prove the cuts are not necessary, or not fair and equitable. Negotiating with the Company before that analysis is complete is counterproductive. Agreeing to substantive changes without that analysis would be reckless.
In light of this massive and continuing analytical effort, AFA is concerned that the Aircraft Mechanics Fraternal Organization (AMFA) may already have offered the Company concessions that are neither necessary nor fair and equitable. Obviously, your organization, having not performed the requisite evaluation, is least equipped to engage in “substantive bargainingâ€.
Rather than unwittingly and prematurely agreeing to benefit changes that United will undoubtedly claim have precedential effect, we urge AMFA to proceed with caution and to undertake the same analytical effort that each of the other retiree representatives has determined is essential to protecting the welfare of their retirees.
Sincerely,
Greg Davidowitch, President
United Master Executive Council
Concessionary? unwarrented concessions? I thought Amfa does not do this?
UNITED: AMFA Recklessly Enters Retiree Health Care Concessionary Negotiations
Download Adobe Version
April 22, 2004
Mr. O.V. Delle-Femine, National Director
Aircraft Mechanics Fraternal Association
P.O. Box 1221
Laconia , NH 03247-1221
Mr. Tom Mannion
Airline Contract Administration Coordinator
AMFA Local 9
1250 Bayhill Drive Suite 201
San Bruno , CA 94066
Dear Mr. O.V. Delle-Femine and Mr. Tom Mannion:
In a recent e-mail, United’s counsel Marilyn Pearson indicated that only one authorized retiree representative had “commenced substantive bargaining†to change the health benefits of its retirees. After contacting all retiree groups, the Association of Flight Attendants – CWA, AFL-CIO (AFA) has determined that your organization is the one that has decided to start negotiations. This is a strategic mistake that threatens to undercut the position of all the other employees, including the Flight Attendants, in trying to limit or avoid the Company’s proposed cuts to retiree medical benefits.
Each of the other representatives believes that it is premature to begin negotiations before the evaluation provided for under Section 1114 is completed. Their professionals as well as ours – which total three actuarial firms and three financial advisors - are still sifting through the tens of thousands of pages of information United has provided to date. Indeed representatives, as recently as this week, have made requests for additional relevant information that United has yet to provide. Once a full evaluation is concluded, each representative will be able to make a fully informed decision on how to respond to the Company’s proposal.
If it is determined that the Company’s proposed cuts are not necessary, or that they are not fair and equitable, then the Company would not be entitled to force these cuts on the retirees through Section 1114 proceedings. There can be no possible advantage for your members in going forward at this time because the analysis might prove the cuts are not necessary, or not fair and equitable. Negotiating with the Company before that analysis is complete is counterproductive. Agreeing to substantive changes without that analysis would be reckless.
In light of this massive and continuing analytical effort, AFA is concerned that the Aircraft Mechanics Fraternal Organization (AMFA) may already have offered the Company concessions that are neither necessary nor fair and equitable. Obviously, your organization, having not performed the requisite evaluation, is least equipped to engage in “substantive bargainingâ€.
Rather than unwittingly and prematurely agreeing to benefit changes that United will undoubtedly claim have precedential effect, we urge AMFA to proceed with caution and to undertake the same analytical effort that each of the other retiree representatives has determined is essential to protecting the welfare of their retirees.
Sincerely,
Greg Davidowitch, President
United Master Executive Council
Concessionary? unwarrented concessions? I thought Amfa does not do this?
