December 12, 2008
Dear Brothers and Sisters,
The “super session” started on Tuesday, December 2, 2008 in Dallas/Fort Worth, Texas. On Friday, December 12, 2008 at 1700, the TWU Joint Negotiation Committee terminated further discussion with the Company and will proceed to Federal Mediation. Even though we will proceed to Federal Mediation, we may still set up dates to meet with the Company.
I was proud to be a TWU Member after hearing the disappointment by our Air Transport Division (ATD) Director, John Conley. He told the Company…”YOU ARE DISMISSED. I DO NOT WANT TO HEAR ANY OF YOUR COMMENTS, YOU ARE DISMISSED. “
After considering all factors, including the current economy, conditions within the airline industry and the needs of our members, the Negotiation Committee made numerous good faith attempts to meet the Company’s needs.
The discussions were intense and involved long hours and difficult decisions. In the end, we could not agree on some issues that would have fallen short of our membership expectations. The TWU and Company agreed on lump sum payouts, vacations and sick days, increases in holidays and rate of pay on holidays. Below is a list of articles in which we could not agree.
Union/Company differences:
· Union final proposal #1 – ASM - An increase of Eagle Available Seat Miles (ASM) increased to 9% with protection of twenty (20) cities.
· Company final proposal #1 – ASM - An increase of Eagle Available Seat Miles (ASM) increase to14% with protection of ten (10) cities. Note: The Union would never agree to the Company proposal.
· Union final proposal #2 – Compensation - Was a 5% lump sum at date of signing, 3.5% lump sum 12 months after date of signing, and 3% structural pay increase 24 months after date of signing.
· Company final proposal #2 – Compensation - Was a 5% lump sum at date of signing, 3.5% lump sum 12 months after date of signing, and 3% lump sum pay increase 24 months after date of signing which would convert to a structural raise if other airlines jumped ahead of us. Note: The Union would never agree to a contract that did not provide a structural raise.
· Union final proposal #3 - Retiree Medical – Current employees would have three options. Option 1 was to remain in current plan with no changes. Option 2 was to replace Post 65 retiree insurance with a Medigap plan paid by the employee. Option 3 was enrolling in a new retiree medical plan with all pre-funding balance returned to the employee. All new hire Members would accumulate 12 sick days a year and could bank them up to 220 days. They could pay for the retiree insurance out of their sick bank. Each month of retiree insurance would cost 20 hours per month.
· Company final proposal #3 – Retiree Medical – Current employees would have two options. Option 1 was to replace Post 65 retiree insurance with a Medigap plan paid by the employee. Option 2 was enrolling in a new retiree medical plan with all pre-funding balance returned to the employee. All these Members would accumulate 12 sick days a year and could bank them up to 210 days. They could pay for the retiree insurance out of their sick bank. Each month of retiree insurance would cost 20 hours per month. All new hire Members must buy their own retiree insurance. Note: The Union would not agree to any proposal that would not give a current Member the option of continuing their current retiree medical. New hires would not get retiree medical.
· Union final proposal #4 – Pensions – All new hire employees with a 401k program. The Company would be required to automatically put in 3% and would match up to an additional 4% of the employee contribution. All current Members interested in this program would have a one time option of converting to the identical amount. Their defined benefit amount would “soft freeze.” A soft freeze means your defined benefit amount is frozen the day you switch plans.
· Company final proposal #4 – Pensions - All new hire employees would be enrolled in a 401k plan in which the Company would automatically put in 1% and would match up to an additional 4.5% of the employee contribution. All current Members interested in this program would have a one time option of converting to this plan. Their defined benefit amount would “soft freeze.” Note: The program offered by the Company would have changed us from leading the industry to fifth place.
· Union final proposal #5 – Duration – 36 months after the amendable date.
· Company final proposal #5 – Duration - 36 months after date of signing. This would make the Contract 45 months long. Note: The May 13, 2008 was a two year proposal by the Company. The Union had no interest in any agreement longer than three (3) years.
We did our best to get an agreement. It is unfortunate that the Company was unwilling to move toward addressing the needs of our Members. We will continue under the process outlined under the Railway Labor Act (RLA).
Fraternally,
David J. VirellaPresident Local 501
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