1.22.02 – (LAA) – Presidential Grievances Related to Reduction in Force and Partnership Flying have been Resolved, Overage Leave Benefits

This is APFA President John Ward with a hotline update. Today is Tuesday, January 22.

As was previously announced on this hotline, the Presidential Grievances relating to Reduction in Force and Partnership Flying have been resolved. Simply put, this comprehensive Settlement Agreement does two things: First, it addresses the issues that have arisen from this current round of furloughs. It sets forth, in detail, what the remedy will be for those flight attendants who were denied the ability to bid for and hold the November 1 Overage Leaves. Secondly, the Agreement reconciles certain conflicting contractual provisions, thereby, providing guidelines for the handling of future Overage Leaves and Partnerships.

And the most exciting news is that the Company will recall at least the first 400 most senior flight attendants on furlough status, effective April 1. In order to achieve such a recall, additional Overage Leaves will be proffered for the period May 1, 2002 through September 30, 2002.

I’d like to recognize the incredible efforts of APFA Vice President Jeff Bott and his department in reaching this settlement.

Please stay on the line, as Leslie Mayo will be filling you in on some more details of the settlement. In addition, the complete text will be posted on the APFA website at www.www.apfa.org. Thank you for calling.

This is Leslie Mayo, National Communications Coordinator, with details of the Agreement between APFA and the company.

Overage Leave benefits will now be extended retroactively to the following groups of people who were denied the ability to proffer for an Overage Leave:

1. Those Flight Attendants who were on Maternity Leave at the time of the proffer who were able to clear and had the seniority to hold the proffer;

2. Those Flight Attendants who were scheduled but had not yet begun an Educational or Personal Leave of Absence (see App. R) and who had the seniority to hold the proffer;

Those Flight Attendants who were on an ELOA or Personal Leave at the time of the Overage Leave proffer will accrue full vacation benefits. Also, those Flight Attendants who were awarded Overage Leaves in 2001 will be permitted to roll over all unused uniform points from 2001 for use in 2002 when they return to active status.

The following bullet points pertain to the guidelines to be followed in the event of future Overage Leaves or furloughs:

• Flight Attendants on Overage Leaves are entitled to the same non-revenue pass privileges that the company provides to active employees, subject to third-party agreements negotiated with other airlines and governmental regulations.
• Insurance benefits for Flight Attendants on Overage Leaves and those forming Partnerships under the provisions of App. F are the same as those of Flight Attendants in active status.
• In addition to Retirement Service Credit, a Flight Attendant on an Overage Leave will, for purposes of the Final Average Compensation provided in Art. 36, H., be considered to have been paid her/his applicable monthly guarantee for each month s/he is on an Overage Leave of absence.
• In addition to Retirement Service Credit, Flight Attendants forming a Partnership under the terms of Appendix F will, for purposes of the Final Average Compensation provided in Art. 36 H., be credited with their actual earnings during the term of the Partnership.
• Prior to a furlough, the company will notify the APFA in accordance with the provisions of Art. 16 and provide APFA with a list of the names and seniority dates of Flight Attendants who are subject to furlough. The company will then conduct an initial proffer of Overage Leaves. All Overage Leaves will be proffered system wide and awarded by base. Except in cases of emergency, as defined in Art. 16, this initial proffer will be conducted prior to the furlough of probationary Flight Attendants. However, even in cases of emergency, the company will use its best efforts to conduct such an initial proffer prior to the furlough of probationary Flight Attendants. The proffer of Overage Leaves may be done in conjunction with the furlough notice but in any case must be posted for at least seven days, unless otherwise agreed to by APFA. Should a dispute arise under the above provision as to whether the circumstances fit within the definition of “emergency” under Art. 16, the parties agree to expedite arbitration. The parties agree that an arbitrator will be selected and a date chosen within 15 days of the APFA filing a grievance. The arbitration will be scheduled to take place within 90 days and a decision rendered within seven days of the hearing.
• A Flight Attendant who is not qualified through no fault of their own, will not be required to have attended recurrent training in order to bid for or be awarded an Overage Leave.
• The Agreement provides for leaves of shorter duration that may combine one or more flight attendants together to equal the largest block of leave time available, giving Flight Attendants more flexibility for leave time. See examples on the APFA website at www.www.apfa.org.
• Those Flight Attendants on Maternity Leave, Family Leave, Sick or IOD will be permitted to bid and hold future Overage Leave proffers provided they have the seniority to hold the leave and they clear the sick list prior to the start date of the leave.
• Those Flight Attendants on Educational Leaves and App. R Personal Leaves who have commenced their leave at the time of an Overage Leave proffer will not be able to bid for the proffer but will accrue full vacation benefits in accordance with the Agreement.
• Flight Attendants who have not yet begun a scheduled Educational Leave or App. R Personal Leave will be able to bid and be awarded an Overage Leave.
• The Partnership flying packet has been clarified for easier understanding of the partnership language and operation.
• For future Overage Leaves, Flight Attendants will be noticed that nine uniform points roll over at the end of the calendar year. Any additional uniform points must be redeemed prior to the commencement of the Overage Leave or prior to the end of the calendar year – whichever is first. The Flight Attendant must be on active status to redeem points and these points must be used prior to commencement of leave or upon return from leave.
• In connection with the 2001 furlough, on a one-time no-precedent basis, the company and the APFA may agree that in addition to its primary use as a means of avoiding a furlough, the provisions of Art. 16, paragraph A will be invoked as a means of returning furloughed Flight Attendants to active status sooner than would otherwise have been possible. And, saving the best news for last, in a side letter dated January 18, 2002, which states that “In an effort to achieve our shared objectives,” the company and APFA have agreed to the following:

1) The company has preliminary plans to increase capacity this spring. These preliminary plans translate to a need to increase the number of active Flight Attendants beginning in April 2002. In light of this potential growth, and in light of our mutual interest in accelerating the return to duty of some of our furloughed Flight Attendants, effective April 2002, assuming that economic and financial conditions in April are as the company projects they will be as of the date of this letter, the company intends to recall in seniority order at least the first 400 Flight Attendants on furlough status. It is understood, however, that the current economic situation in the airline industry is very fluid and should circumstances change from what is currently anticipated, the company may be unable to effect the recall as outlined above.

2) Flight Attendants who accept such a recall would need to report to work effective April 1, 2002. Flight Attendants will need to ensure that they are qualified to return prior to this date.

3) In order to achieve such a recall, the company and the APFA have agreed to use Art. 16 A., Overage Leaves, for the purpose of returning furloughed Flight Attendants to active status sooner than would otherwise have been possible. The Overage Leaves would work as follows:

• AA will recall to active duty at least the first 400 most senior Flight Attendants on furlough status effective April 1, 2002.
• AA will proffer additional Overage Leaves as per Art. 16 A., as modified by the Settlement Agreement between American and APFA dated January 18, 2002, to cover the overage created by returning these furloughed Flight Attendants to active status.
• The Overage Leave proffer (as defined in the Settlement Agreement) will be effective May 1, 2002 and continue through September 30, 2002.

If the company is unable to fill the required number of Overage Leaves, the company will only be able to recall furloughed Flight Attendants equal to the number of Flight Attendants who accept Overage Leaves.

The Agreement Settlement, the side letter of agreement and the new Partnership Flying Language will be available shortly on the website at www.www.apfa.org.

Please spread the word about the upcoming Overage Leave proffer. Flight Attendants taking these leaves will ensure our ability to welcome back at least 1/3 of our furloughed brothers and sisters.

Thank you for calling the APFA HotLine.