Latest Company Proposal - September 10, 2004
This Company proposal to AFA dated September 10, 2004 covers items of pay, productivity, scope and benefits.
The proposal is a balanced package of changes intended to preserve the ability of flight attendants to maintain their W-2 earnings while achieving the Company’s financial goals for these Transformation Plan restructuring talks.
In brief, the proposal consists of the following:
An initial 15% across-the-board pay reduction, offset in part by an expected 13% increase in pay hours, and further offset by raises beginning in 2008.
A package of work rules that bring the Company to competitive levels vs. low-cost competitors. Significantly, the elimination of the current SAP and A/I List processes and their replacement with a new Drop/Pick-Up (“DPUâ€) system which allows flight attendants to pick up from open time and to trip-trade.
The elimination of the ITD and the high- and low-time options.
Enhancements to the existing reserve system which will reduce the number of reserves and create opportunities for Reserves to fly more time during the month.
An industry-leading profit sharing program, the implementation of which is subject to various conditions being met as the Company proceeds with its Transformation Plan.
The elimination of post-retirement medical coverage, with grandfathering through age 65 (when Medicare is available) for current retirees, and, for future retirees, offset in part by new cash-out of accrued but unused sick leave at retirement.
A voluntary leave with no recall, offered in seniority order, with a cash-out payment.
All terms contained herein are subject to final contract language in accordance with the terms herein.
Effective Date:
Upon ratification and appropriate signatures
Duration:
December 31, 2009
Other terms of 2000 Agreement, as amended:
Other than as specifically modified in these documents, all terms and conditions of the AFA-US Airways Collective Bargaining Agreement effective May 1, 2000, as amended, shall remain in full force and effect.
Revisions to Hourly Pay Rates:
Base Pay Rates [3.A]: Freeze current base pay rates at each longevity step effective 1/01/04 through 12/31/09.
Reduce pay rates at each longevity step as frozen by 15%.
Pay raises:
- effective January 1, 2008: 2%
- effective January 1, 2009: 5%
Longevity step increases will remain in full force and effect.
Pay all flying at day rate (i.e., eliminate “night payâ€) [3.E]
Deadhead Pay [14.A]: All deadhead time will be compensated at 50% pay, no credit; however, trips will be constructed as if deadhead time would be 100% pay and 100% credit.
Revisions to Premium Pay Items:
Senior Pay Premiums will be amended to the following [3.C]:
Domestic
International
B737-300/-400
$1.75
N/A
A319/A320
$1.75
N/A
A321
$2.00
N/A
B757
$2.50
$2.50
B767
$2.50
$4.50
A330
$2.50
$4.50
Aft Lead Premiums will be amended to the following [3.C]:
Domestic
International
B737-300/-400
-
N/A
A319/A320
-
N/A
A321
-
N/A
B757
-
$1.00
B767
-
$1.00
A330
-
$1.00
Holding pay [3.D]: current book.
Night pay [3.E]: eliminate.
Understaffing pay [3.F]: current book.
International premium pay [3.G]: Retain current International premium pay for Transatlantic operations only.
Training Pay [3.H]: A flat rate of $60 per day for training (no per diem will apply). After elimination of the ITD fence, if a flight attendant requests training for transoceanic international flying, training would be provided but unpaid; however, in the case of Company-requested training (e.g., for additional reserves), the Company will pay for transoceanic international training.
Jury Duty Pay [3.I]: Pay four hours (4:00) for each scheduled day of work lost as a result of actually being in jury duty.
Drug Testing Pay [3.J]: current book.
LOD/O Pay [3.K]: current book.
Reserve Override [3.N]: Eliminate reserve override scheduled to snap back on January 1, 2006.
Galley Pay [3.O]: current book.
Holiday Pay [3.P]: current book.
Longevity Pay [3.Q]: Eliminate scheduled snap back in 2009.
Bereavement Leave [20.F]: Current book, however pay will be for a maximum of three (3) days at four hours (4:00) per day.
Premiums for Paid Time Off: Eliminate all premiums (including night pay) paid for time not actually worked.
Eliminate the 2% lump sum payments due on both March 1, 2007 and March 1, 2008.
Minimum Pay Guarantees:
Lineholder Minimum Guarantee [3.B.1.a]: 71 hours at the base rate of pay, reduced pro-rata for days not available to fly during the month. A Lineholder who voluntarily trades away trips to reduce his/her projection below 71 hours will have his/her guarantee adjusted to such lower projection.
Reserve Minimum Guarantee [3.B.2]: 71 hours at the base rate of pay, reduced pro-rata for on-duty days for which the Reserve is not available to fly during the month.
Hours of Service:
Paid greater of scheduled or actual for each trip [10.B]: A flight attendant will be paid the greater of scheduled or actual for all trips flown in a month (i.e., end of month look-back vs. trip look-back). In the event of a rescheduled trip for which the flight attendant elects to remain available for the same number of days as the original trip, the scheduled value of the original trip will be used in the look-back calculation. If such flight attendant does not elect to remain available he/she shall forfeit pay protection for the original trip.
Example 1: A flight attendant works four scheduled 20:00 hour trips with a combined scheduled value of 80:00 hours. The flight attendant’s actual time for each trip is 20:00 + 19:45 + 20:00 + 20:30 for a total actual time of 80:15. The flight attendant’s pay for the month would be 80:15 since the actual time exceeds the scheduled time.
Example 2: A flight attendant is scheduled for four 20:00 hour trips with a combined scheduled value of 80:00 hours. The flight attendant is rescheduled on his/her first trip with another trip of equal duration and scheduled for 19:45 hours, and works his/her second, third and last trip as scheduled. The flight attendant’s actual time for the rescheduled trip is 19:45 and the value of the remaining scheduled trips are 20:00 + 20:00 + 20:30 for a total actual time flown in the month of 80:15. The flight attendant’s pay for the month would be 80:30 hours since he/she was pay protected on his/her first trip of the month to 20:00 hours and he/she receives actual pay for the remaining trips.
Example 3: A flight attendant is scheduled for four 20:00 hour trips with a combined scheduled value of 80:00 hours. The flight attendant is rescheduled on his/her first trip with another trip of equal duration and scheduled for 20:30 hours, and works his/her second, third and last trip as scheduled. The flight attendant’s actual time for the rescheduled trip is 19:45 and the value of the remaining scheduled trips are 20:00 + 20:00 + 20:30 for a total actual time flown in the month of 80:15. The flight attendant’s pay for the month would be 80:30 since he/she was pay protected on his/her first trip of the month to the value of his/her original trip (20:00 hours) and not the value of the rescheduled trip (20:30 hours) and he/she receives actual pay for the remaining trips.
Example 4: A flight attendant is scheduled for four 20:00 hour trips with a combined scheduled value of 80:00 hours. The flight attendant is rescheduled on his/her first trip with another trip of equal duration of days and scheduled for 20:30 hours, and works his/her second, third and last trip as scheduled. The flight attendant’s actual time for the rescheduled trip is 20:15 and the value of the remaining scheduled trips are 20:00 + 20:00 + 20:30 for a total actual time flown in the month of 80:45. The flight attendant’s pay for the month would be 80:45 since he/she was pay protected on his/her first trip of the month to the value of his/her original trip (20:00 hours) and not the value of the rescheduled trip (20:30 hours) and flew greater than the value of the originally protected trip.
Monthly Maximums [10.C]: Eliminate all high- and low-time options.
Availability/Improvement List [9.D.2]: Eliminate. Replace with DPU (see below).
Schedule Adjustment Period (“SAPâ€) [9.C.3]: Eliminate. Replace with pre-month DPU.
Pre-Month Drop/Pick Up System (“DPUâ€) [Final language will replace 9.D.2]: Implement a Drop/Pickup System as follows:
a. All known flying after the completion of final bid lines including reserve lines, secondary lines, and training lines if applicable will be posted as Company Open Time (“COTâ€) in the DPU system. Variable staffing pairings and charters not known the day prior to DPU commencement may be withheld from DPU.
b. Valid DPU trip trades are shown in the table below:
Lineholders
Reserves
Drop Trips
Yes
N/A
Pick Up Trips
Yes
On INV days
Trade Trips
Yes
On INV days
c. Company Open Time for the following month will be available to lineholders for trading three (3) days prior to the beginning of the new bid month. COT will be awarded in seniority order for this period. Bids will be collected by noon two (2) days prior to the 2200 daily COT seniority award process. There must be one calendar day between the request date and the departure date of the pairing. With COT DPU, the number of days dropped into COT must be equal to the number of days picked up from COT and will be awarded in the same transaction. A four (4) day trip drop must be accompanied by either a four (4) day trip pick up, a three (3) and a one (1) day pick up, or a two (2) and a two (2) day pick up. With Flight Attendant to Flight Attendant DPU (“DPU Trip Tradingâ€), the day-for-day restrictions described above do not apply.
d. The cap on the number of pay hours a Flight Attendant may gain through pre-month DPU COT pick up or trades is the greater of: (x) the domicile line average for that month, or (y) 105:00. There is no cap on the number of pay hours a Flight Attendant may gain through pre-month DPU Trip-Trading.
In-Month DPU: Implement an in-month DPU system for Company Open Time and for Trip-Trading as follows:
a. All Company Open Time trading in first come first served order will be awarded after the seniority COT window closes. The first come first served COT will begin at 0600 the first day of the new bid month and continue until the last three days of the bid month. There may be a period of time during the month when DPU is unavailable due to the awarding of bids. Closure of the trip trading window would prevent legality or contractual violations as lines are awarded, processed, and loaded.
Lineholders
Reserves
Drop Trips
Yes
On INV days
Pick Up Trips
Yes
On INV days
Trade Trips
Yes
On INV days
b. All requests for COT DPU will be approved based on the determination of sufficient Reserve coverage on the days being dropped and the trade does not result in the Flight Attendant’s line being below the minimum bid period floor. The trade may also be approved if the request is for a trip(s) that operates on the same day(s), is of the same length or greater length, and does not result in the Flight Attendant’s line dropping below the minimum bid period floor.
c. During COT DPU and Trip-Trading DPU, Lineholder and Reserve trade requests will be processed on a first come first served basis and continue until 0600 on the last three (3) days of the bid month. There may be a period during the bid award when trades cannot be processed to ensure that there are no legality or contractual violations while bids are awarded and placed on lines.
d. Lineholders will be allowed to drop down to fifty (50:00) pay hours in a bid period but must remain subject to the Flying Obligations set forth in Paragraph 7 below.
e. There is no cap on the number of pay hours a Flight Attendant may gain through COT DPU or Trip-Trading DPU.
f. The Company will provide an electronic method of picking up, dropping, and trading trips for use by Flight Attendants on a first come first served basis as well as a bulletin board. Prior to implementation of such electronic method, the Company may establish a Trip Trade Desk in Crew Scheduling.
g. There must be a calendar day between the request and the first trip departure associated with the trade.
h. It is the Flight Attendant’s responsibility to confirm any trip changes as a result of drops, pick ups or trades. Flight Attendants may not call Crew Scheduling for such information unless the computer system is unavailable due to technical problems with one or more of the associated Company automated systems.
i. Requests to drop, pick up, or trade must be in accordance with the terms of the Agreement and legal under the Flight Attendant FARs.
j. Reserves must allow a minimum of ten (10) hours rest between the latest time the Reserve could be scheduled to be released in domicile and the scheduled report of the requested trip.
k. Reserves must allow a minimum of ten (10) hours rest between the scheduled release of the requested trip and the earliest time a Reserve could be required to report for duty on her/his first day of availability following the INV day. The requested trip must be scheduled to release no later than 1800 on the last INV day so as to have at least ten (10) hours rest prior to 0400 on the first day of availability should a twenty four (24) hour reserve period be introduced.
l. The Flight Attendant requesting to drop or trade a trip remains responsible for that trip until approval for the drop or trade has been granted. Once a request is awarded or processed, it becomes part of the Flight Attendant’s regular line and conversely, once a trip is dropped or traded away, it is no longer part of the Flight Attendant’s line.
m. A reserve picking up a trip on an INV day will receive pay and credit for such time above his/her Minimum Guarantee, and the hours of such trip will not be included for LTO purposes.
Flying Obligations:
a. Absent extenuating circumstances in the sole discretion of the Company, a Lineholder who is paid below eighty hours (80:00) on average during any consecutive three-month period in an active rolling twelve-month period will be deemed to have resigned his/her position and will have his/her name removed from the System Seniority List.
b. A Lineholder’s flying obligation will be the value of his/her originally scheduled primary or secondary line plus/minus the value of any trip(s) dropped or picked up with other flight attendants through DPU. Absent extenuating circumstances in the sole discretion of the Company, a flight attendant who does not meet his/her obligation will be deemed to have resigned his/her position and will have his/her name removed from the System Seniority List.
c. A Reserve flight attendant will be obligated to be available on his/her days of duty and will be able to call out of time at 100:00 hours. Absent extenuating circumstances as determined in the sole discretion of the Company, a Reserve who does not make him/herself available on his/her days of duty (other than for legitimate contractual purposes such as sick, vacation, union duty, jury duty, approved leaves, etc.) will be deemed to have resigned his/her position and will have his/her name removed from the System Seniority List.
Lineholder Minimum Days Off [10.F]: current book.
Last Trip Protection [9.F.5]: Retain current language for obligation to remain legal to originate and complete trip. A Reserve can not split his/her last trip of the month by calling out of time. In the event a last trip is rescheduled, pay protect to the published value of the original last trip only if flight attendant elects to remain available over the same number of days as the original trip. A flight attendant who does not elect to remain available will be released and forfeit pay protection.
Report No-Fly [10.N]: current book.
Release after 3 Hour Delay [10.O]: current book.
Reserve Days Off [11.A]:
a. Reserves will have a minimum of eleven (11) Reserve Days Off per month.
b. A Reserve day will start at 0001 domicile local time. A Reserve who is flown more than one (1) hour into a Reserve Day Off will remain available for that day. The flight attendant and Crew Scheduling will attempt to reach mutual agreement to have his/her Reserve Day Off reinstated at the end of the current Reserve Day Off period or a subsequent Reserve Day Off period. Depending on coverage, the reinstatement may exclude the holidays defined in Section 9.B.1.d and the three days immediately prior to and following such holidays, as well as the last four days of each month. In the event the flight attendant and Crew Scheduling cannot reach mutual agreement on the reinstatement of the Reserve Day Off in the current month, the Reserve Day Off will be reinstated in the next month.
c. A Reserve cannot move Reserve Days Off unless with Company consent.
d. Reserve Days Off may be traded by flight attendants without Company consent subject to a process and parameters (e.g., maintaining legality) to be mutually agreed by the Company and the Association prior to implementation.
Duty Periods [10.D]: Current book, except amend the definition of “Back of the Clock†to be 0100-0459 instead of 0100-0500.
Trip Rig [10.J]: current book.
Duty Rig [10.K]: current book.
VM Rig [10.K]: current book.
Split Trips [10.Q]: All split trips to be paid actual time (i.e., no Duty, Trip or VM Rig applies, and the published VM Rig shall not be recalculated for days prior to or after the split), including Company-initiated splits.
Example: A three - Duty Period (DP) trip pays 4:00, 7:00, & 4:00 on DP1, DP2, & DP3. Flight attendant is split off on DP2. CATS recalculates the pay as follows - DP1 = 4:00 & DP2 = actual pay. The replacement flight attendant split onto the remainder of the trip would be paid as follows - DP2 = actual pay, & DP3 = 4:00.
Combined Trips [10.R]: The Company will include combined trips in the assignment of open time process, time permitting.
Replace Section 10.G. with the following: “A flight attendant, at his/her option, may fly up to thirty-five (35:00) actual hours in seven (7) consecutive days. Further, a flight attendant will complete his/her trip combination if the scheduled time for such trip(s) did not exceed thirty-five (35:00) actual hours in seven (7) days.â€
Scheduling:
Scheduling Committees [9.A]: current book.
Line Construction Parameters [9.B]: Lines may be constructed separately from pilots with a minimum of eleven (11) calendar days off in each bid period at the flight attendant’s crew base. Primary and Secondary Lines will normally be constructed with a target average between 78:00 and 100:00 hours.
Monthly Bid and Line Award Process [9.C]: Eliminate all references to SAP. Otherwise retain current process until implementation of Pref Bid System.
Open Time at Start of Month [9.B.4]: No restriction on the amount of open time at the start of the month (eliminates the current 10% floor).
Future and Daily Scheduling Process:
a. The Company will make an assessment of coverage.
b. The Company will group Reserve flight attendants in highest-to-lowest priority as Reserves on duty and Reserves on a Reserve Day Off (each, a “Categoryâ€).
c. The Company will sort each Category by days of availability remaining for Reserves in that Category (each such grouping, a “Bucketâ€).
d. The Company will offer flight attendants within a Bucket open trips that match their days of availability (i.e., flight attendants that are legal to originate and to complete the entire trip) according to month-to-date time, with lowest time flight attendants being offered trips first. There will be no passing. Notwithstanding the above, flight attendants who are being junior assigned on days off will be assigned within Bucket in inverse seniority order, not by lowest time.
e. Within a Bucket, the Company will process flight attendants with equal month-to-date time in seniority order.
f. The Company may offer flight attendants in a Bucket open trips from a different Bucket if there are no flight attendants available in that Bucket to cover such open trips. There will be no passing. In making such decisions, the Company will seek to minimize split trips and/or flying into days off. If no flight attendants are legal or available to complete an open trip, the trip shall be split to avoid the conflict.
g. A flight attendant for whom no open trip is available in the Future process may be held by the Company for the Daily process to ensure coverage of late-opening trips. This provision will not apply to Daily Scheduling.
h. In Future Scheduling, trips may be awarded/assigned out of Category to avoid splitting a trip. However, a trip may be split or extended into days off to avoid a junior assignment.
Reserve Report Time [11.J]: current book.
Rescheduling [9.G]: Replace the current Section 9.G. language with the following:
1. At any time during his/her trip, the Company may reschedule a flight attendant (a “Rescheduled Flight Attendantâ€) to maintain operations or substitute another crew on part of his/her trip to maintain operations in accordance with published timetables. Such flight attendant will be advised of his/her new duty assignment within three hours of being notified that he/she has been rescheduled. Notwithstanding the above, if the Company is experiencing a severe irregular operation, a flight attendant may be assigned to remain available to avoid canceling trips, and such flight attendant shall be provided hotel room accommodations paid by the Company if required.
2. In addition, a flight attendant may be rescheduled in advance of his/her report time in the event that his/her trip is canceled in whole or in part, provided such flight attendant is contacted prior to report. A flight attendant may decline rescheduling prior to report but would forfeit pay protection for the original trip.
3. A flight attendant who is rescheduled in accordance with Paragraphs 1 and 2 above will be paid actual time. In the event the actual (rescheduled) trip is of shorter duration (in days) than the original scheduled trip, a flight attendant who makes him/herself available to fly during the day(s) of the original trip will be pay protected to the published value of the original trip.
4. The Company will schedule a rescheduled flight attendant to arrive back in his/her domicile on or before midnight of the same day he/she was originally scheduled to return, unless beyond the control of the Company.
5. In the event a Rescheduled Flight Attendant elects to remain available during original day(s) of a rescheduled trip, he/she will be assigned Reserve status over his/her original trip days. Such flight attendant will be paid no less than the published value of the original trip. A Rescheduled Lineholder acting as a Reserve pursuant to this Paragraph shall be provided hotel room accommodations paid by the Company if required.
6. If the original leg(s) of a scheduled trip continues to operate, the Company is not obligated to put a Rescheduled Flight Attendant back onto the original trip.
7. When a flight attendant is awarded a line of time or a trip and different equipment is substituted, the released flight attendant(s) may elect to remain available to fly during the original day(s) of his/her trip, and such flight attendant will be pay protected to the published value of the original trip. A flight attendant who does not elect to remain available will not be pay protected for the value of the original trip. At Company option, an original crew member who elects to remain available to fly may be required to return to his/her original trip at any time prior to the termination of such trip.
8. Definition of Rescheduling: use current 9.G.6 language.
Monthly Lead In/Lead Out [9.H]: Current book, except replace references to “A/I List†in 9.H.3 with “DPU Company Open Timeâ€.
Lineholder Obligation for Trips [9.F.1]: A lineholding Flight attendant needs to be obligated and legal for every trip included in line. This does not preclude a flight attendant’s use of vacation, sick leave or the DPU system, but once any trip has been added, dropped, traded or other credited time has been used, the flight attendant is obligated to be available to fly each trip and cannot create an illegality through his/her actions either in the current or the next month of flying.
Assignment of Open Time Priority [9.D]: Open time will be assigned in the following priority:
1. Rescheduled flight attendant prior to release
2. Rescheduled Pay Protected Lineholder
3. Flight attendant using DPU to pick up time
4. Reserve with lowest LTO in domicile that is below monthly guarantee
5. Reserve with lowest LTO from other domicile that is below monthly guarantee
6. Reserve on day off (in inverse seniority order)
7. Lineholder on day off (in inverse seniority order)
11. Management Flight attendant
International:
Eliminate the separate International Transoceanic Domicile(s) (ITD). Flight attendants must be trained for international flying and current in such training to fly international trips.
The Company and the Association agree to update the CRAF Letter (LOA 27) to allow for the operation of any type of aircraft in the fleet.
The Company agrees to resolve the ITD Global and Supplemental Bid issues with the elimination of the ITD fence.
Vacation:
Accrual [7.A]: Modify vacation accrual schedule to the following:
Completed Years of Service
Days of
Accrual
Hours @ 3:45 Rate
1 – 7 years
7
26:15
8 – 14 years
14
52:30
15 or more years
21
78:45
Vacation will be accrued for each month in which the flight attendant is available to fly for at least fifteen (15) days during such calendar month.
Pay and Credit [7.B, 7.D]: Vacation periods bid in the annual vacation bid process must be bid in blocks of seven (7) or more consecutive calendar days and will be paid at three hours and forty-five minutes (3:45) base pay and credit per day. A flight attendant whose request to cancel an awarded vacation is granted, or a flight whose request to shift an awarded vacation is granted, is required to cancel or shift the entire seven-or-more-day block. No premium pay (e.g., senior pay, international pay, LOD/O pay, etc.) will be paid to a flight attendant on vacation.
Current Vacation in Excess of Initial Conversion:
a. Flight attendants will bid and be awarded 2005 vacation based on the new vacation accruals established in this agreement.
b. A flight attendant’s 2004 accrued vacation in excess of the amounts that would have been accrued in 2004 for use in 2005 under the Company’s August 18, 2004 proposal will remain as accrued vacation; however, flight attendants will only be able to bid up to five (5) days of any such excess accrual in 2005 and each year thereafter until exhausted.
c. Carry Over Days and Unused Filler Days will be placed in a bank to be accessed in the same manner as the above excess accrual.
Vacation Adjustments [7.C]: Current practice until implementation of Pref Bid System.
Annual Vacation Bid [7.D]: Current book, but modify to account for seven-or-more day blocks and conversion of excess vacation (see above). Also modify 7.D.6. to provide for a flight attendant on paid or unpaid medical or maternity leave to carry over all accrued and unused vacation until he/she returns from leave.
Vacation Limits and Carry Over [7.E]: Current book, but modify to account for seven-or-more day blocks and conversion of excess vacation (see above).
Vacation Filler Days [7.F]: Eliminate.
Vacation Pay Out [7.G]: Current book.
Vacation Advance Paycheck [7.H]: Current book.
Vacation Start for Reserve [7.I]: Current book, except vacation period will begin 0001 instead of 1500 to match change to Reserve duty day (see above).
Vacation Buyback [7.J]: Current book.
Vacation A/I List [7.L]: Eliminate.
Vacation ITD [7.M]: Eliminate with removal of ITD fence.
Sick:
Sick Leave Notification [8.A]: Current book, however clarify that a flight attendant who is unable to report to work for 14 days following the origination of a sick call will be required to notify his/her supervisor/supervisory team. Sick calls lasting more than 14 days will require medical documentation to support the flight attendant’s need for a leave of absence.
Current and Reserve Sick Banks [Replaces 8.B.2]: Each flight attendant’s sick bank as of the effective date of this Agreement (including reserve) shall be split into two accounts: a Current Sick Bank and a Reserve Sick Bank.
a. The Current Sick Bank has a maximum accrual of 60:00 hours. The Reserve Sick Bank has a maximum accrual of 1,500:00 hours. Notwithstanding the previous sentence, a flight attendant with more than 1,560:00 hours at the time of conversion will have any such excess hours placed into his/her Reserve Sick Bank.
b. A flight attendant can only access his/her Reserve Sick Bank in the case of prolonged illness or injury lasting more than 14 days (i.e., with appropriate documentation, the flight attendant must be placed on “MESâ€, “MAS†or “LFP†status by Inflight management), or in the case of a flight attendant cashing out unused sick bank hours described in “Post-Retirement Medical†below. A flight attendant being otherwise compensated for OJI or LTD cannot access his/her Reserve Sick Bank (i.e., no double-dipping).
c. The initial Current Sick Bank will be established for each flight attendant at the lesser of a) his/her sick leave accrual at the time of such establishment (target 1/1/05); or B) sixty (60:00) hours.
d. At the time of conversion to the new Current/Reserve Sick Bank system the Company will convert a flight attendant’s existing sick hours in excess of 60:00 hours into Reserve Sick Bank hours.
e. At the commencement of each calendar year, each flight attendant’s Current Sick Bank shall be replenished by removing from the Reserve Sick Bank the lesser of a) his/her sick leave accrual at the time of such replenishment; or B) the amount required to add to his/her Current Sick Bank to achieve the maximum accrual of sixty (60:00) hours.
f. A flight attendant not available at the start of a calendar year shall have his/her Current Sick Bank prorated accordingly, i.e. it shall be replenished from his/her Reserve Sick Bank at the rate of 5 hours for each month remaining in the year, once he/she has returned to active status.
Sick Leave Accrual [8.B.1]: A flight attendant shall accrue five hours (5:00) of sick leave credit for each month for which he/she is on an available status for at least 15 days of the month. Notwithstanding the above, there shall be no sick leave accrual for any month during which a flight attendant reports sick or is on an unavailable sick status (e.g. MAS, MES, MAT, MED, LFP, LFL.) Such accrual shall be reflected in the flight attendant’s Reserve Sick Bank unless such Reserve Sick Bank has reached its maximum accrual.
Sick Leave Accrual Records [8.B.3]: current book.
Claiming Sick Leave – Lineholders [Replaces 8.B.1]:
a. A lineholding flight attendant will be charged with trips missed from his/her primary or secondary line of flying, trips picked up through DPU, for each day he/she is unable to report for duty due to illness or injury and his/her Current or Reserve Sick Bank, as applicable, shall be reduced accordingly. The claim will be paid with accrued Current or Reserve Sick bank hours, or will be unpaid time, depending on status. Such flight attendant may pick up from the DPU Open Time List to increase his/her time for the month, but may not use the DPU to trade with another flight attendant over the day(s) of the sick claim. The flight attendant will be restricted from flying over the period of time he/she reports sick regardless of available sick bank.
b. A lineholding flight attendant who is unable to report for duty due to sickness or injury shall be eligible for a trip(s) missed sick claim at his/her base hourly pay rate and will not be eligible for any premiums (e.g., senior, aft lead, international, LOD/O, etc.).
c. A lineholding flight attendant eligible to claim sick time from his/her Reserve Sick Bank will be required to claim sick to a minimum of 71 hours and will be permitted to claim up to a maximum of 100 hours.
d. A lineholding flight attendant who reports sick must claim the sick time. If such sick claim is without pay during a month, the flight attendant will have such sick time without pay subtracted from his/her Minimum Guarantee for that month.
Claiming Sick Leave – Reserves [Replaces 8.B.2]:
a. A flight attendant on reserve status will be charged with three hours and thirty minutes (3:30) or trips missed, whichever is greater, and his/her Current or Reserve Sick Bank, as applicable, reduced accordingly for each day he/she is unable to report for duty due to sickness or injury. Sick claims will be applied after the completion of the month and will therefore not affect a flight attendant’s LTO (least time order). Claims will be paid with accrued Current or Reserve Sick bank hours, or will be unpaid time, depending on status. The flight attendant will be restricted from flying over the period of time he/she reports sick regardless of available sick bank.
b. A flight attendant on reserve status who is unable to report for duty due to illness or injury shall be eligible for a sick claim at his/her base hourly rate and will not be eligible for any premiums (e.g., senior, aft lead, international, LOD/O, etc.).
c. A Reserve flight attendant may not reduce the amount of his/her sick claim. An active, available flight attendant will be charged sick for applicable sick claims until his/her Current Sick Bank is exhausted.
d. A Reserve flight attendant eligible to claim sick time from his/her Reserve Sick Bank will be required to claim sick to a minimum of 71:00 hours and will be permitted to claim up to a maximum of 100:00 hours.
e. A Reserve flight attendant who reports sick must claim the sick time. If such sick claim is without pay during a month, the flight attendant will have such sick time without pay subtracted from his/her Minimum Guarantee for that month.
Low Time: A flight attendant who claims sick without pay during a month of flying and is paid below his/her applicable obligation (in the case of a Lineholder) or Minimum Guarantee (in the case of a Reserve), requires a prompt review with his/her Inflight Supervisor to review the reason(s) for such time off without pay claim(s), and such flight attendant may be placed on MES or MED status, or other inactive status, as circumstances warrant.
Flight Attendant Furloughed or on Leave Retains Sick Credit [8.C]: Current book.
Sick Relinquished When Terminated [8.D]: Current book.
Sick Claim Processing [8.E.3]: Current book.
Sick Make Up [8.F]: Eliminate.
Sick Guarantee [8.G]: Current book.
Doctor’s Statement [8.H]: Replace 8.H with the following:
1. A doctor's statement may be required of a flight attendant for any sick occurrence in excess of three (3) occurrences during any continuous active twelve (12) month period. A flight attendant who has been so notified and who does not produce such statement when required by management for a sick claim(s) may lose eligibility to access his/her Current Sick Bank for compensation for such sick claim(s).
2. Notwithstanding the above, the Company may require a physician's written confirmation of illness or injury or make personal inquiries of the type or nature of such illness or injury when a supervisor can demonstrate he/she has reasonable cause to believe that an individual flight attendant's use of sick leave may have been for other than legitimate reasons. Further, the cost of such physician's confirmation, pursuant to Paragraph H.1. above and this Paragraph, shall be borne by the Company with the understanding that a flight attendant may be required to see a physician of the Company's choice and at a time dictated by the Company. A flight attendant who has been so notified and who does not produce such statement for a sick claim(s) may not be eligible to access his/her Current Sick Bank for compensation for such sick claim(s).
3. The provisions of this Section are established to ensure that a flight attendant shall not be required to fly while he/she is legitimately ill or disabled. A flight attendant who uses sick leave for other than legitimate illness or disability may be subject to disciplinary action based on the facts involved.
Picking up Trip from Sick Status [8.I.1]: Replace Section 8.I.1 with the following: “A flight attendant shall not be permitted to pick up any remaining portion of his/her bid trip or series of trips (i.e., trips awarded through the primary line, secondary line, or pre-month DPU processes), or a trip he/she picks up from the in-month DPU process, upon returning from sick.
Sick and Crew Movement [8.I.2]: Current book.
Rapid Reaccrual [8.J]: Eliminate.
Advance of Future Accrual [8.K]: Current book.
Inflight Supervisors and management will maintain confidentiality of any medical information provided by flight attendants.
Expenses:
1. Crew Meals: Eliminate domestic crew meals currently scheduled to snap back on January 1, 2009.
2. Uniform Cleaning Allowance: Eliminate uniform cleaning allowance currently scheduled to snap back on January 1, 2009.
3. Per Diem: Reduce from $1.90 domestic/$2.10 international to $1.75 for both domestic and international. Eliminate scheduled increase on January 1, 2009.
4. RON Hotels: Amend long layover requirement of Section 4.B.1 to 16 hours.
Post-Retirement Medical:
Post 1/1/05 Retiree, Pre-65 Medical and Dental:
1. Allow flight attendants to use accrued sick pay starting at age 62 to pay for retiree medical costs.
2. Flight attendants may apply up to 41 accrued sick hours per month, valued at $9.75 per hour, (i.e., up to $399.75) to a pre-65 medical premium.
3. Medical premium costs in excess of $399.75 per month will be paid by the flight attendant.
4. Once accrued sick pay is exhausted, the retiree is responsible for paying 100% of plan cost through out-of-pocket contributions.
5. In lieu of #1 above, an employee may receive a one-time cash payment in an amount equal to $7.90 times the number of accrued sick leave hours. Choosing to receive this one-time cash payment means that the employee is not eligible to participate in the pre or post 65 retiree medical plan.
6. Eliminate retiree dental coverage (access and subsidy) for all future retirees effective 1/1/05.
Pre 1/1/05 Retiree, Pre-65 Retiree Medical
1. Eliminate retiree dental coverage (access and subsidy) for all future retirees effective 1/1/05.
2. Grandfather current pre-65 retirees (closed group) as of 1/1/05:
- Current plan options (same as actives)
- Implement Defined Dollar Benefit (DDB) cap
- Set DDB cap at $4,600 net cost basis
- Base all pre-65 costs and contributions on true pre-65 costs.
3. Grandfathered pre-65 retirees as of 1/1/05 not eligible for US Airways post 65 coverage once age 65; maintain prescription drug-only coverage for 2005 for grandfathered retirees turning age 65 prior to 1/1/06 (coincident with new Medicare drug benefit).
4. Eliminate retiree dental coverage (access and subsidy) effective 1/1/05.
Post 65 Retiree Coverage:
1. Terminate medical and dental coverage for all current and future retirees effective January 1, 2005.
2. Maintain prescription drug-only coverage for 2005.
3. Reset subsidy caps and retiree contributions for 2005 to reflect drug coverage only.
4. Terminate drug coverage for all current and future retirees effective January 1, 2006 (coincident with new Medicare drug benefit).
5. No access to any post-65 medical or prescription drug coverage starting January 1, 2006
The Company agrees to indemnify the Association from any and all liability, loss, damages, fines, penalties, excise taxes and costs, including expenses and reasonable attorneys' fees, which the Association sustains arising out of or in connection with these Company-proposed changes to Post-Retirement Medical for employees who retired prior to the effective date of this Agreement. The Association agrees that it will not settle a matter covered by this indemnity at the Company's cost without the Company's approval, and that the Association will provide assistance as reasonably required or requested by the Company in any matter for which such indemnity is being provided.
The Company will make commercially reasonable efforts to include a lower-cost “catastrophic option†for post-retirement medical coverage, subject to a prompt, detailed review of plan options and plan costs. The Company will meet with the Association upon completion of such review to discuss the feasibility and costs associated with offering such an option.
Voluntary Leave With No Recall:
1. Voluntary Leaves with No Recall (“VLNRâ€s) will be granted by the Company in seniority order subject to the needs of the service. VLNRs may also be offered to offset or to avoid future furloughs.
2. A flight attendant leaving the service of the Company on VLNR will receive payouts for any accrued pay benefits (e.g., vacation) but will cease to accrue any further seniority or benefits.
3. A flight attendant leaving the service of the Company on a VLNR will receive the following package:
a. A cash payment in the amount of $8,000. However, a flight attendant claiming excessive sick after accepting a VLNR and prior to release may be denied such $8,000 payment.
b. No recall rights, and such flight attendant will be removed from the US Airways Flight Attendant Seniority List.
c. On-line travel privileges (other than companion passes) will be comparable to the most recent VSIP II 2004 Program.
d. Company subsidized benefits will terminate on the effective date of the VLNR. COBRA will be offered.
e. Accrual of pension service credit terminates on the effective date of the VLNR.
f. The Company reserves the right to contest unemployment compensation.
4. A flight attendant must be in active status as of September 10, 2004 to apply for a VLNR, and must be in active status at the effective date of the VLNR to be eligible for a VLNR. Active status includes flight attendants actively flying the line or claiming sick leave. Flight attendants on leaves of absence such as personal, military, unpaid medical, long-term disability, or voluntary furlough shall not be considered active.
5. The Company may delay the release date of a flight attendant leaving the service on a VLNR for the time necessary to train such flight attendant’s replacement.
6. A flight attendant who would have been involuntarily furloughed had it not been for another flight attendant accepting VLNR, and who is displaced as a result of staffing reductions, will not be entitled to moving expenses in connection with such displacement but will be entitled to settling days in accordance with Section 5.E.1.
Voluntary Furlough:
Eliminate Voluntary Furlough provisions set forth in the 2002 Restructuring Agreement.
Any future voluntary furlough extensions, voluntary furlough programs and/or voluntary separation programs will be at Company discretion and on terms set forth by the Company.
VSIP:
Eliminate VSIP provisions set forth in the 2002 Restructuring Agreement.
Leaves of Absence:
Modify Section 20 to provide for retention only of longevity (pay and vacation step increases) and pension service credits. No accrual of vacation and sick credits. Medical, dental, life, disability and all related Company paid benefits terminate upon commencement of a leave with the exception of medical and maternity leaves of absence which will carry benefits for the first 60 days of the leave. Non-revenue travel benefits will be according to corporate policy, and corporate policy is subject to change at Company discretion. Benefits while on military leave will be provided in accordance with USERRA.
Eliminate Personal Care Leave.
Eliminate Leave in Lieu of Furlough - Section 20.B
Defined Benefit Plan:
Freeze the current Flight Attendant Defined Benefit plan. Replace with a Flight Attendant DC Plan with a 3% Employer Contribution.
Long Term Disability:
Eligibility – implement one-year waiting period for new hires.
Contributions: establish employee contributions at 25% of Company’s plan cost.
LTD Benefit Determination and all clinical LTD reviews will be made by a third party long-term disability administrator (i.e., eliminate Retirement Board).
Fees and Expenses:
The Company will pay the reasonable fees and expenses incurred by the Association in connection with the review, design, negotiation, approval, ratification and implementation of the Transformation Agreement, including the customary fees and expenses of outside legal, investment banking and other advisors, offset by any payments made to the Association during the Transformation Negotiations for such purposes. Such payment shall be made promptly following the effective date of this Transformation Agreement as to amounts accrued as of that date; thereafter, payments shall be made promptly as to amounts accrued following the effective date. The obligation to make such payment shall give rise to an administrative claim in any bankruptcy of the Company.
No-Cost Exchange:
Exchanging items in this proposal for other items of equal cost or benefit to the Company will require mutual agreement of the parties.
Bankruptcy:
If ratification of this proposal occurs after any Chapter 11 case is commenced, the Company’s obligations hereunder will be subject to Bankruptcy Court approval.
Profit Sharing:
The Company will offer the following profit sharing program for flight attendants, subject to the following conditions:
1. AFA’s agreement to eliminate the current profit sharing provisions of the Agreement;
2. Approval by the US Airways Board of Directors; and
3. If the Company is under Chapter 11 bankruptcy protection during the duration of this Agreement, subject to approval as part of the Company’s confirmed plan of reorganization.
a) Company profit sharing pool to be established at 10% of the pre-tax profit excluding unusual items (as reported, according to GAAP accounting practices) for pre-tax margins ranging from 0.1% to 5.0%; and at the above, plus 25% of any pre-tax profit excluding unusual items (as reported, according to GAAP accounting practices) in excess of a pre-tax margin of 5.0%.
B) AFA’s portion of Company profit-sharing pool will beno less than 14.5%.
c) An individual flight attendant’s profit sharing payment will be based on such flight attendant’s gross W-2 earnings (prior to any elective deferrals) for the prior calendar year divided by the gross W-2 earnings (prior to any elective deferrals) of all eligible flight attendants for the prior calendar year. At the Association’s option, “eligible flight attendants†may include retired or furloughed flight attendants who had gross W-2 earnings (prior to any elective deferrals) for the prior calendar year, subject to applicable law.
Change in Control:
If the Company is under Chapter 11 bankruptcy protection during the duration of this Agreement, the Association agrees that the provisions of Section 30.T. as amended, will not apply with respect to any issuance of equity or redistribution of equity associated with endeavoring to achieve, or achieving, a confirmed plan of reorganization in such Chapter 11 case.
Minimum Aircraft:
If the Company is under Chapter 11 bankruptcy protection during the duration of this Agreement, the Association agrees that the provisions of the Furlough Protection LOA regarding minimum aircraft will not apply during the pendency of such Chapter 11 case, and will be re-established one year after the implementation of a confirmed plan of reorganization in such Chapter 11 case at the lesser of: (x) 275 aircraft, or (y) the number of aircraft then operated by the Company less fifteen percent (15%), rounded to the nearest aircraft.
Fragmentation:
If the Company is under Chapter 11 bankruptcy protection during the duration of this Agreement, the Association agrees that the provisions of Section 1.D.3., as amended, will not apply during the pendency of such Chapter 11 case, and will be re-established one year after the implementation of a confirmed plan of reorganization in such Chapter 11 case.
LPPs:
If the Company is under Chapter 11 bankruptcy protection during the duration of this Agreement, the Association agrees that the provisions of Section 1.D.1. and Section 1.D.3., as amended, regarding Allegheny-Mohawk labor protective provisions will be replaced by the Allegheny-Mohawk labor protective provisions, Sections 3 and 13 only. The original provisions will return to full force and effect one year after the implementation of a confirmed plan of reorganization in such Chapter 11 case.
Equity:
If the Company is under Chapter 11 bankruptcy protection during the duration of this Agreement, potential adjustments to AFA equity to be determined, based on participation by other key stakeholders.
Grievances:
The Company is willing to discuss the settlement of all outstanding grievances and to discuss providing the Association with appropriate financial credit thereto, if applicable.
Other Contract Items:
1. Modify Section 2.K to permit the Company to add or subtract a day or days to any bid month to stabilize the monthly schedule.
2. Eliminate the Section 5.C home purchase provision. Reduce Section 5.E settling days from five (5) to three (3) days for voluntary transfer.
3. Establish a value for the point system of Section 6 of $135 and move forward with implementing program. Cease negotiations as per existing side letter.
4. No jumpseating on charter trips for pleasure (Section 15).
5. Establish an end date for remaining on the seniority list if inactive of five (5) years (Section 16).
6. Eliminate three (3) years of pension service credit while on furlough (Section 19).
7. The Company agrees that the first late check-in in a rolling twelve-month period will not count for disciplinary purposes.
8. The Company agrees to modify work and conduct rules so that Reserve flight attendants may live within 90 minutes by surface transportation from domicile.
9. The Company agrees on a prospective basis that employees on voluntary furlough and involuntary furloughees be allowed to work other employment within the aviation industry and if another employer requires a furloughee to resign from US Airways, that US Airways will not process the resignation.
10. The Company confirms that recent programs allow employees with less than 20 years of service to travel at S-4 boarding priority. Older VSIP programs specifically stated travel for all was S-5 boarding priority.
Side Letters:
Discuss clean-up.
:angry:
