Section 1113(c) Proposal Term Sheet
PROPOSED BY UNITED AIRLINES
Last Updated: March 17, 2003
United management filed their 1113(c) motion today.
AFA is attempting to address the financial crisis of our company by participating in concessionary bargaining. Our goal is to preserve our company and secure jobs for Flight Attendants.
We are continuing to meet with United in the hopes of reaching a consensual agreement. United's actions today are counter-productive to returning our company to profitability.
The AFA Financial Review Committee
March 17, 2003
| See Also: | Exhibit A -- Benefits Exhibit B -- Proposed LCC Terms Exhibit C -- Profit Sharing |
| Objective | Restructure the current Agreement to enable the transformation of United consistent with the announced business plan. |
| Effective Date [______] |
The effective date of the new Agreement will be the first schedule day of the calendar month following the execution of the new collective bargaining agreement. [______, 2003] |
| Term [Six years ____] |
The amendable date of the new Agreement will be [____, 2009]. The provision in the Agreement concerning opening of negotiations will likewise be revised to [________]. Modify any and all related Sections of the Agreement as necessary to reflect the intent of each proposal identified below. |
| Compensation |
Eliminate the following pay overrides:
Revise the following pay provisions:
|
| Per Diem |
|
| Holidays | Revise Section 2 designation of holidays to eliminate seven (7) holidays in each paragraph; revise to provide that no flight attendant shall be eligible to be paid for more than three (3) holidays in any calendar year. |
Scope and Job Security
| Low Cost Carrier Competitive Solution |
See Exhibit B. Company Proposal for LCC provided on February 28, 2003. |
| Scope Sideletter | Revise Scope Sideletter (Pages 293 – 294) to enable the Company to respond to rapidly changing industry environment as indicated by the business plan. |
| Furlough Protection | Revise Section 21.A. to provide that furlough on a voluntary basis in lieu of furlough in inverse seniority order will be at Company discretion. Insurance, travel benefits and seniority accrual for voluntary furloughs to be provided at Company discretion |
Work Rules, Productivity and Efficiency
| Hours Maximums | Revise Sections 7.A., 9.D.3., 9.E.3.a. and 4.a., 9.I.2.b., 10.H.1., 12.G., 12.O.3., 12.P.1.a. and 2.a., 12.Q.2.b. to increase scheduled, actual, optional monthly/quarterly maximums by 5 hours per month and/or 15 hours per quarter to 90/180/255 and 95/190/270 to improve productivity. |
||||
| Lines of Flying Averages |
Revise Section 9.A.3.a. and b.(1) and 9.A.9. to increase lines of flying averages by 5 hours to 79 domestic and 84/168/252 international, and increase the domestic line average cap to 85 hours credited flight time. |
||||
| Expand Definition of Domestic Flying | Revise Section 2.G. and Z. to provide that the domestic flying definition will include Alaska, Canada, Caribbean Basin, Central America, Hawaii and Mexico. Eliminate Section 12.A.2. Revise Section 12.B. and the Sideletter on page 271 to realign the ratio of international block hours. |
||||
| Minimum Rest |
Revise Section 12.M.2. to provide lineholders and reserves with 24 hours rest after 8:01 – 12:00 hours flight and deadhead and 36 hours rest after 12:00 hours. |
||||
| International Legal Rest Minimums | Revise Section 12.M.1.a. to eliminate the place of lodging minimums and revise block-to-block minimums as follows:
Eliminate Section 12.M.1.c. |
||||
| Duty Times | Revise Section 7.I.4. to provide a single duty day parameter of 13 hours scheduled/15 hours actual duty time to increase productivity. An exception to these duty time limits is provided to facilitate the scheduling of West Coast - Hawaii turn around IDs. |
||||
| Reassignment Rights | Eliminate Section 8.I.Revise provisions of Sections 8, 9, and 12, to provide that reassignments must return the flight attendant no more than two (2) calendar days later for domestic reassignments and three (3) calendar days later for international reassignments, than the originally scheduled ID. Flight attendant may decline the reassignment with Company approval, which will cause her/his projection and line guarantee to be reduced by the amount of the originally scheduled ID. Eliminate restrictions to same operation for reassignments in Section 8.J., 9.I., 12.I. in order to maximize productivity consistent with the business plan. |
| Reserve Days Off | Revise Section 10.D.1. to provide that the Company may move up to four (4) of each reserve’s days off during each month to improve productivity. |
| Personal Time Off | Revise Section 4.V. Personal Time Off (PTO/GWOP) to exclude eligibility to utilize while on Reserve status. Revise the 1% allocation criteria to be based on the number of scheduled lineholder positions (excluding Relief) in the prior month. |
| Combined Reserve Pool | Revise Sections 10 and 12 to establish one reserve pool for all flying at domiciles assigned both domestic and international flying, to improve productivity. The entire reserve pool will be considered “domestic” consisting primarily of flight attendants qualified and available for both domestic and international assignments. A limited number of reserve positions, determined by the Company, will be staffed with reserves who wish to be assigned only domestic flying, and they may be assigned to Domestic IDs out of time-accrued order at Company discretion. Reserve guarantee will be based on domestic pay rates and international assignments will be compensated based on international pay rates. The parties agree to meet to discuss any disproportionate share of reserve underguarantee resulting from this accommodation. |
| Layover Hotels |
Revise Section 6 to modify the “downtown or downtown-like” lodging requirement for layovers of 20 hours or more. Revise Section 7 to provide for 9 hours free from duty where layover hotel is approximately 15 minutes from the airport; 11 hours when more than approximately 15 minutes. |
| Last Quarter Maximum | Revise Section 10.H.2. and Section 12.V.6. to give the Company the ability to assign reserves in the last month of the quarter up to 85 hours or their quarterly maximum if higher. |
| Lines of Flying Construction | Eliminate or revise as applicable Sections 5.A., 5.C., 8.J.4., 9.A.1., 12.E.2., 18.K.2., and related Sections of the Agreement to eliminate the minimum 65 hour guarantee. |
| Duty Rigs | Maintain Section 8.A.1. and revise Section 8.A.3., 4., and 5. to provide a minimum pay and credit rig of 5/9/14/18 hours on a cumulative basis for the entire ID. Eliminate Section 8.A.2. (4 hour minimum). |
| Time Away Rig |
Revise Section 8.B. to 1 for 4. |
| Scheduling Restrictions | Eliminate Section 12.A.2. to allow turn around assignments between the West Coast and Hawaii in a single duty period.Revise Section 7., paragraphs D., E., and F. to provide exceptions to 8-in-24 legality to allow 2 segment, 1 duty period IDs scheduled up to 9 actual hours in a 24 hour period. No prescribed interim/intervening rest will be required when a flight attendant is scheduled or rescheduled to fly more than 8 hours in a 24 hour period. The legal rest minimums described in Section 7.J. apply. Eliminate 30-in-7 legality restrictions. Provide for 24-in-7 in the domestic operation consistent with the international operation. Revise Section 12.K. to only allow for 24-in-7, and eliminate reference to “one calendar day”. |
| Open Flying | Revise Section 9., paragraphs F., G., H. and I., Section 12.Q. so that the Company has flexibility to modify or delete IDs from open flying based on staffing needs and to allow the Company to determine whether to assign open flying to reserves before allowing lineholders to pick up or trade for open flying. |
| Preferential Bidding System | Company may implement a Preferential Bidding System (PBS) to replace the Section 9 line bidding process. Revise/eliminate all provisions of the Agreement that are inconsistent with preferential bidding.Establish a joint implementation team consisting of representatives of the Company and AFA. This team will meet as needed to discuss requirements, training, and implementation. A parallel test will be conducted for the line flight attendants. Phase in of the PBS system will be consistent with the needs of the Company. After the implementation, the Company and the AFA Central Scheduling Committee (CSC) will review the awarding system periodically. Until such time as the Company implements PBS, the Company may modify the bid process timeline to allow flight attendant bids to be completed in a time period consistent with the market needs. |
| Vacation Overlap | Revise Sections 12 and 18 to provide that vacation pay shall be 2.8 hours per vacation day, and eliminate pay for trip value and the vacation overlap for lineholders; reserve vacation shall be paid at the daily reserve guarantee rate; revise vacation buy back to pay 2.8 hours per day. |
| Bulk Scheduling | Eliminate the “bulk scheduling” provision Section 9.A.7. |
Benefits
| Flight Attendant Defined Benefit Pension Plan |
Revise Section 34 and other provisions of the Agreement as necessary to replace current United Airlines Flight Attendant Defined Benefit Pension Plan with a new Defined Benefit Pension Plan as provided in Exhibit A. |
| New 401(k) | Establish a 401(k) retirement plan as provided in Exhibit A. |
| Retiree Medical |
Revise Section 33 and other provisions of the Agreement as necessary to provide that the employee contribution to the cost of retiree medical for pre- and post-Medicare retiree medical benefits is as provided in Exhibit A. |
| Retiree Life Insurance | Revise Section 33 and other provisions of the Agreement as necessary to provide retiree life insurance as provided in Exhibit A. |
| Medical/ Dental Plan Equality |
Revise Section 33 and other provisions of the Agreement as necessary to replace all current medical and dental plans with a uniform plan (or plans) to be available to all Company employees as set forth in Exhibit A. |
| Medical/ Dental Plan Contribution |
Revise Section 33 and other provisions of the Agreement as necessary to provide that employees shall contribute 20% of the cost of coverage for all company-sponsored medical and dental plans.
When an employee chooses a Medical HMO or Dental HMO option (if available), if the cost of the HMO or DHMO exceeds the cost the PPO, the employee share of the cost for the HMO or DHMO shall be equal to the employee share of the cost of the PPO option plus 100% of the additional cost. |
| Flexible Spending Account | Current program of Health and Dependent Care Accounts, with maximum annual contribution of $5,000 per account. Forfeitures to be used for plan administration. |
| Active Employee Life Insurance and AD&D |
Revise Agreement as necessary to provide:
|
| Vacation Accrual | Revise Section 18 to reflect a new accrual schedule with a maximum accrual of five weeks (35 days). |
| "Me Too" Provision | Eliminate the vacation “me too” with Series 15 provided in Section 18.B. |
| Sick Leave and Medical Leave of Absence |
Revise Agreement to provide that sick leave accrual, sick leave pay and medical leaves of absence shall be as provided under “Short Term Disability/Sick leave” in Exhibit A. |
| Long Term Disability | Revise Section 33 to provide for Long Term Disability as provided in Exhibit A. |
| Occupational Sick Leave | Eliminate all current provisions providing for occupational sick leave or injury leave and/or pay. Occupational injuries shall be treated as sickness and sick leave, and pay during such sick leave shall be available as provided under “Short Term Disability/Sick leave” in Exhibit A. |
| Furlough Pay | Revise Agreement as necessary to cap severance pay at a maximum of eight (8) weeks. |
| Family Medical Leave |
Revise Section 23 to require flight attendants to use vacation for all unpaid FML. |
| Company-paid Union Time |
Revise Company-paid AFA flight pay loss. |
Force Majeure
Insert provision triggering additional pay cut, reduction in the reserve guarantee, modify the lines of flying averages, limit the extent to which flight attendants can pick up open flying, in the event of a declared or undeclared war, national emergency, terrorism, natural disaster, decrease in operations due to reduction in available fuel supply or other critical materials, owners or manufacturers delay in the delivery of aircraft scheduled for delivery, strike or labor dispute, revocation of the Company’s operating certificate(s), loss or destruction of the Company’s aircraft by government action, compulsion by a domestic or foreign government agency or court or legislative action, a substantial economic downturn, or other circumstances beyond the Company’s control, not including any financial or economic considerations, such as the price of fuel or other supplies, the state of the economy or the financial state of the Company other than a substantial economic downturn.
Grievance Withdrawals
To the extent that the parties are able to reach agreement on restructuring, settle grievances [List to be provided]
Success Sharing
Profit sharing as provided in Exhibit C.
