MEC CODE-A-PHONE UPDATE
March 19, 2003
This is Roy Freundlich with US Airways MEC update for Wednesday, March 19, with two new items.
Item 1. The MEC reconvened its special meeting today in Herndon, VA and received a report from the Negotiating Committee on the progress of negotiations.
The committee briefed the MEC on the current proposals, which are contained in two proposed letters of agreement, titled LOA 85, Pilots’ Defined Contribution Plan, and LOA 86, Adjustments to Restructuring Agreements.
The proposed defined contribution plan is structured to determine a benefit target for each pilot based on age, years of service, and career progression, which is based on relative seniority. These factors are then used to determine a contribution amount for each pilot to achieve the targeted benefit. Open issues include the financial assumptions used to determine the contribution amount and management’s position to default to their original proposal if the PBGC rejects a negotiated plan.
ALPA and Company actuaries are continuing a cost analysis on ALPA’s and the Company’s proposed defined contribution plans.
Proposed LOA 86, Adjustments to Restructuring Agreements contain proposed modifications to the restructuring agreements to address certain inequities. At this point issues tentatively agreed in principle include reducing the LTD waiting period from 6 months to 120 days, midway jets for jobs aircraft beyond the first 30 would be staffed with APL pilots subject to midway pilot recalls, company will implement a special downgrade procedure for A330 first officers to group 2 captain positions, and ALPA would agreed to withdraw MEC grievance 00-04-06, GATT calculations for lump sum distributions.
The MEC will reconvene tomorrow at 9:00 a.m. at the Days Inn Conference Center Dulles Airport to receive an update from the Negotiating Committee.
Please remember we have 1,827 pilots on furlough.
Thank you for listening.
March 19, 2003
This is Roy Freundlich with US Airways MEC update for Wednesday, March 19, with two new items.
Item 1. The MEC reconvened its special meeting today in Herndon, VA and received a report from the Negotiating Committee on the progress of negotiations.
The committee briefed the MEC on the current proposals, which are contained in two proposed letters of agreement, titled LOA 85, Pilots’ Defined Contribution Plan, and LOA 86, Adjustments to Restructuring Agreements.
The proposed defined contribution plan is structured to determine a benefit target for each pilot based on age, years of service, and career progression, which is based on relative seniority. These factors are then used to determine a contribution amount for each pilot to achieve the targeted benefit. Open issues include the financial assumptions used to determine the contribution amount and management’s position to default to their original proposal if the PBGC rejects a negotiated plan.
ALPA and Company actuaries are continuing a cost analysis on ALPA’s and the Company’s proposed defined contribution plans.
Proposed LOA 86, Adjustments to Restructuring Agreements contain proposed modifications to the restructuring agreements to address certain inequities. At this point issues tentatively agreed in principle include reducing the LTD waiting period from 6 months to 120 days, midway jets for jobs aircraft beyond the first 30 would be staffed with APL pilots subject to midway pilot recalls, company will implement a special downgrade procedure for A330 first officers to group 2 captain positions, and ALPA would agreed to withdraw MEC grievance 00-04-06, GATT calculations for lump sum distributions.
The MEC will reconvene tomorrow at 9:00 a.m. at the Days Inn Conference Center Dulles Airport to receive an update from the Negotiating Committee.
Please remember we have 1,827 pilots on furlough.
Thank you for listening.
