4.30.04 – (LAA) – Restructuring Agreement, Lobbying in DC

Hello. This is George Price, APFA National Communications Coordinator, with the APFA Hotline for Friday, April 30, 2004.

In accordance with Attachment A of the Restructuring Agreement, all Flight Attendants will receive a 1.5% pay raise effective May 1, 2004. This increase will be reflected in the May 15th paychecks.

APFA reported a few months ago that an AMR Stockholder was fighting to have a proposal considered that would require shareholders to approve severance packages for top executives in the event the Company was acquired. Such packages might include compensation equal to several times the executive’s annual salary and bonuses. AMR management initially fought such a proposal. On April 19th, executives at AMR dropped their objections to this proposal and have adopted it outright. What this means is that if the company were to be acquired, AMR shareholders would have to approve any severance package or bonuses before they were offered to top executives. This new policy will become effective May 19th, which is the day the Annual AMR Stockholders Meeting will take place.

APFA and other Flight Attendant unions head to Capitol Hill on Wednesday, May 12th to discuss the issues of Flight Attendant fatigue, reduced layover rest, and safety and security training for Flight Attendants with members of Congress. This promises to be a very big event with members of the various unions joining together to bring our concerns to Washington as one collective voice. If you would like to participate in the lobby event, you must contact IMA Vice Chair Rick Musica no later than May 10th. Rick can be reached via e-mail at [email protected] or by phone at 817-540-0108 or 800-395-2732, extension 8462. He will need your name, base, employee number, address, phone number, and nine-digit Zip Code or Congressional District. Due to security issues, all commitments must be received by May 10th and must be firm.

On Wednesday in Washington, APFA President John Ward joined Pat Friend, President of the AFA, and Thom McDaniel, President of TWU Local 556 representing Southwest Flight Attendants, in a meeting with NTSB Chairman Ellen Connors to discuss Flight Attendant fatigue. Chairman Connors was very empathetic while also stating that the necessary science and data would be needed to make the changes that we seek. She suggested that APFA continue to collect trip pairings demonstrating reduced rest periods and also suggested several organizations that the APFA should contact that are already studying fatigue and may be able to expand their scope to include Flight Attendants. APFA will leave no stone unturned in pursuing a remedy to address the long duty days and reduced rest periods.

Proof that our efforts in Washington are making a difference-Senator Barbara Boxer has agreed to sponsor a letter to the FAA on Flight Attendant fatigue and also to introduce legislation that will require TSA to develop mandatory Flight Attendant security training.

The APFA recently sent to all APFA Represented Flight Attendants a letter addressed to the TSA. They must be received by the APFA no later than May 10th. The letters will be presented to the TSA during the lobby event on May 12th along with the same letters collected from Flight Attendants at most of the other airlines in the United States. Members can now complete the letters on-line through the APFA Web site by clicking on the “TSA Letter” icon on the opening page, completing the required fields, and clicking “submit.”

The APFA Board of Directors will meet in special session on May 4th and 5th at the Crowne Plaza Hotel in Addison, Texas. Among the issues on the agenda are recommendations for changes to the APFA Constitution and other new business. All members in good standing are welcome to attend all open portions of the meeting.

A special meeting of the Executive Committee was held on April 13th in the DFW area. Among the resolutions passed by the EC during their meeting were resolutions recommending the APFA Board of Directors direct the National Ballot Committee to prepare a ballot on a dues reduction separate from a ballot on any other recommended Constitutional changes; recommending that the APFA President schedule quarterly Executive Committee meetings at various base cities on a rotating basis in reverse alphabetical order; and, directing the APFA Communications Department to publish a new publication entitled “Skyword Express” beginning in June 2004.

The SAN Satellite Base test is entering its fourth month. Preliminary results are good. Flight Attendants flying out of the satellite have been working very hard to ensure that everything runs well and that this test is successful. In order to assist those who have worked so diligently, the Contract Department would like to remind LAX based Flight Attendants of a few satellite base specific scheduling issues that will keep things moving smoothly.

• Flight Attendants who are awarded or assigned trip selections originating from the satellite base may use all the provisions of the Trip Trade with Open Time system, including trades involving sequences originating from the satellite base.
• Flight Attendants who are awarded or assigned trip selections originating from the satellite base may trip trade with other Flight Attendants at the same crew base, including trades involving sequences originating from the satellite base.
• In no case will a Flight Attendant holding a trip selection at the satellite base be permitted to drop such trips into Open Time.

For more information on the SAN Satellite Base Test, please refer to Attachment N of the Restructuring Agreement, which can be found on the Contract Department page and the LAX base page of the web site.

The Contract Department would like to clarify a piece of information from last week’s APFA Hotline. If you have started the EPT Homestudy on-line, you must complete the homestudy on-line.

From the Scheduling Department: New procedures for short call makeup have been posted on the Scheduling page of the APFA Web site. In addition, procedures for reserve Flight Attendants to follow to waive their at-home rest after dropping a trip through Optional Exchange has also been posted on the Scheduling page.

A copy of the letter being circulated in the senate in support of an extension of Unemployment Insurance Benefits has been posted on the Furlough page of the APFA Web site. Also included is a list of key Republicans Senators that the authors of the letter, Senator Cantwell of Washington and Senator Voinovich of Ohio, would like to have sign the letter. If you are on furlough, please take a moment to contact your senators and urge them to sign the Cantwell/Voinovich letter supporting an extension of Unemployment Insurance Benefits.

In Industry News:

American announced on Thursday that it has asked the Department of Transportation for seven weekly U.S.-Japan flight frequencies in order to begin service between Honolulu and Tokyo. American expects a prompt response from the DOT on its request.

American and United have once again agreed to reduce flights during peak hours at Chicago O’Hare in order to reduce congestion. American will reschedule or cancel an additional 29 flights or 2.5% of its schedule from June through October 2004. This is in addition to a 5% reduction already made by the airline. The latest reduction is a result of the fact the previous reductions have not done enough to reduce overall congestion at O’Hare.

According to filings with the Securities and Exchange Commission, AMR said that top executives of American Airlines took cuts in their base pay in April 2003. The Company said that it has paid no bonuses to executives since 2000, and that stock options granted recently to executives are worthless. AMR claims that since compensation for executives is tied closely to the company’s performance and the financial results have decreased drastically, it has had to drastically decrease overall compensation for key executives. Oh well.

Due to an arbitrator’s ruling, Delta may be forced to re-hire 1,060 Pilots furloughed after September 11, 2001. The ruling would require Delta to offer reemployment to the Pilots if passenger numbers returned to pre-September 11th levels. Delta is close to that at this time.

That is it for this edition of the APFA Hotline. For the latest information, past editions of the hotline, and rumor control, please visit the APFA Web site.

Remember, there are 5,760 American Airlines Flight Attendants currently on furlough.