• JNC UPDATE - TENTATIVE AGREEMENT Q&A #1

Q and A #1

After completing the first half of Road Shows series the JNC has compiled a list of the most frequently asked questions from members during the schedule. The JNC will publish additional Q and A documents to address PBS, ISAP, Insurance and other question posed to the committee.

Did the JNC propose over $50 per hour in Compensation?

Yes. Our initial proposal was over $60 per hour and we held at over $50 per hour until the NMB refused to schedule more meetings if we continued to be so far apart from the company. The Company started out proposing $41.51 (current East rates).

How do our wage rates compare with our Legacy competitors?

Date of Signing in the TA is $46.00 at the 15 year step (one additional step added to East contract).

United (new TA) DOS - $43.73

Delta- $45.74

American- $46.00 (currently in bankruptcy)

CAL- $53.25 (very few work rules, i.e. duty rigs)

Did we keep our Me-Too with the pilots on per diem?

Yes. If the pilots negotiate higher per diem such rates shall apply to Flight Attendants.

Did we keep Profit Sharing?

Yes. The TA contains the current profit sharing provisions and formula.

Have the East Scope protections been retained?

Yes. The protections for Flight Attendants in the current East contract have been maintained, including Labor Protective Provisions, strong successorhip language, partial transaction language, and minimum aircraft language on the same basis as the pilots. This was the final piece of the negotiations. The company and the NMB tried every way to persuade the JNC to move off our demands that Scope be retained. The JNC absolutely refused to compromise and in the end the Company gave in to the JNC's demands.

Does Paragraph B.4 of Scope mean that our scope clause goes away in the event of a merger?

Absolutely not. B.4. provides that in addition to all other protections in the Agreement, any flight operated by US Airways pilots operate a flight, a US Airways Flight Attendant shall operate that flight. This is a catch-all provision which does not replace the existing scope language but adds to it.

The last sentence of Paragraph B.4 simply states that if US Airways pilots were to reach a merged contract and an integrated seniority list prior to the Flight Attendants, we would not necessarily only be flying with US Airways pilots. With or without Paragraph B.4, this is what would happen. Consider if several years ago, US Airways pilots had not gotten into a seniority dispute and reached a deal with the company. They would have integrated the network and Flight Attendants would not have necessarily flown with East or West pilots. Paragraph B.4 adds to our existing scope language and does not diminish it in any way.

What are the Labor Protective Provisions in the Tentative Agreement?

• Labor Protective Provisions retained, with the exception of the home purchase protection. LPP's retained include:

  - Three years of income maintenance if income reduces in the event of a merger.

  - Displacement allowance for up to five years at sixty percent of salary, plus health care.

  - Severance pay of up to one year of salary in lieu of displacement allowance.

  - Moving expenses and Filling of Vacancies as provided for in the collective bargaining agreement.

• Combined these LPPs place a heavy financial penalty if the company conducts a merger which leave US Airways Flight Attendants without jobs.

• Eliminates home purchase protection (lost in bankruptcy).

Does Successorship language go away after 12 months?

Absolutely not. Both the East contract and the Tentative Agreement require a successor which acquires all or substantially all of a carrier in a single transaction or a multi-step transaction to adopt the collective bargaining agreement. Additionally, the partial transaction language applies to any transaction which involves the sale of more then 20% of the assets in a 12 month period. The Tentative Agreement defines a multi-step transaction as any one which closes within a 12 month period. So for each transaction, one would look back 12 months and see if it triggered these provisions.

Did the JNC consider the new pilot regulations when negotiating the Hours of Service Section? (Section 10 Hours of Service)

Yes. The JNC took a hard and detailed look at the new pilot regulations scheduled to go into effect in 22 months. The new regulations eliminate 30 and 7 and compensatory rest periods and are built around cumulative pilot duty time in a 7 and 28 day period. The new regulations limit a pilot's ability to fly back-to-back trips and will make it difficult to get their monthly time in. The regulations allow pilots to fly up to 7 legs in a day worth 9 hours of block time. Cumulative Duty Period limitations in the new pilot regulations will impact pilot trip and line construction limiting flexibility and restricting many back to back trip combinations we currently fly.

In the current East contract, we have no way to negotiate our own duty limits, rigs and rest periods. Pairings and lines are built to accommodate the pilot FARs. With the FARs changing the pairings and lines will have to be built to accommodate the new pilot rules Under the current agreement Whatever the pilots get or negotiate, we get (Current Agreement - Section 10.L) without any negotiation from AFA.

Based on the new rules, the JNC negotiated a three leg limit for any trip that has a block time of over 8 hours. We reduced the duty day length the pilots will be able to fly in almost all cases. In no case will Flight Attendants have a duty day longer than the new pilot FARs. Flight Attendants will still have the option to fly back to back trips. We increased our current contractual Home Domicile and RON rest periods.

What is an Involuntary Assignment? (Section 10, Scheduling Paragraph I and Section 12, Reserve Paragraph M).

The TA does not allow for involuntary assignments to Lineholders other than in the very limited circumstances in the current East contract. That means they can't just grab a Lineholder or Reserve after a trip and assign them another trip. To involuntary assign a Flight Attendant management must go through the very detailed language in the Priority of Trip Assignment process (Section 12, Reserve Paragraph M.) including assigning supervisors to fly before a Lineholder can be assigned in reverse seniority order. The method of involuntary assignment is the same language as in the current East contract.

The only difference is that in the unlikely event management is able to jump through all the hoops in the Priority of Assignment language and make an involuntary assignment, they will have to pay a premium. Unlike the current East contract, a premium of 150% pay for the pairing value is paid and the credit is 100% if a Lineholder is involuntarily assigned.

What happens if Crew Scheduling violates our contract if we are not co-paired? (Section11, Hours of Service, Paragraph Q.5)

We negotiated contract language providing penalty pay if Crew Scheduling violates the contract. Once a Flight Attendant has commenced a pairing any violation of the Scheduling, Hours of Service, LODO, International or Reserve sections of the agreement shall cause the entire pairing to be paid at 150% and 100% credit.

How many times can the company schedule aircraft swaps in a duty period? (Section 10, Paragraph B.1)

During pairing construction, no more than 30% of duty periods which contain aircraft swaps can contain more than one aircraft swap and never more than two swaps per duty periods.

Is there a limit to the number of four-day pairings the company can build? (Section 11 Hours of Service, Paragraph K.5)

Yes. No more than 30% of domestic pairing can be built as four day pairings in any domicile.

Why are we not co-pairing with the pilots as is the practice on the East?

In order to co-pair, pilots and Flight Attendants groups must both have single contracts. At this time, it appears very uncertain when the pilots will reach a single agreement. Therefore, in concurrence with the Master Executive Council (LEC Presidents), the decision was made to pursue a Flight Attendant agreement with improvements and not co-pair rather than wait for the pilots to reach a single agreement. Flight Attendants will continue to be co-paired on Transoceanic International (TI) pairings.

Does this mean East Flight Attendants have lost their "me-too" protections?

No. All of the me-too clauses have been retained and in many cases improved. For example, we now have our own duty rigs that are better than the current contract and can only be changed by negotiations with the union - not changed by what happens in pilot negotiations. Another example is Deadhead. Upon Date of Signing of the TA DH will pay 100% pay and credit for Flight Attendants.

Can we ever co-pair again? (Section 11, Paragraph Q.4)

The company and the union have agreed that in future negotiations either party has the right to propose to co-pair and negotiate such provisions without any prejudice to our position.

Will we co-pair on Transoceanic International trips? (Section 11, Hours of Service, Paragraph Q.2)

Yes. All Transoceanic pairings will be co-paired with the pilots.

What is the Transoceanic International Delay Incentive? (Section 14, International Paragraph N.9)

Anytime a flight is delayed in a TI station by more than 10 hours an additional minimum day will be added to the value of the trip. Once the delay is greater than 24 hours an additional minimum day will be paid and for each subsequent 24 hour period or fraction thereof an additional minimum day will be paid. All additional minimum day pay will also include all premiums associated with the trip.

Does the TA mean that if a Flight Attendant is 65 years old they lose their Company Medical insurance? (Section 26 Insurance, Retirement and other Benefits Paragraph A)

No. All employees, regardless of age, are entitled to Company medical plans. This is required by law and provided for in the TA. The TA also has language about Retired Flight Attendants. Retired Flight Attendants age 65 and over are not entitled to participate in the Company medical plans.

As long as a Flight Attendant is working, regardless of age such Flight Attendant remains eligible for medical insurance at active employee rates.

Does the TA provide for a longer period of time a Flight Attendant on Medical Leave is eligible for active rate medical coverage?

Yes. The current East contract provides for 270 days of medical insurance at active employee rates for someone on Medical Leave. The TA provides the same 270 days plus the time available under FMLA legislation and the entire month the medical leave starts.

Why is a Reserve charged 3+56(30 day month) or 3+45(31 day month) for calling off sick on an AVL day? (Section 9 D.2)

THE NEW RESERVE SECTION WILL BE IMPLEMENTED IN CONJUNCTION WITH PBS AND THE NEW HOURS OF SERVICE PROVISIONS. UNTIL IMPLEMENTATION, THE UNION HAS REACHED THE FOLLOWING AGREEMENT AS PART OF THE IMPLEMENTATION OF THE AGREEMENT:

Prior to PBS implementation East Flight Attendants shall utilize the sick leave charging language in Section 8. F of the East agreement, including the daily reserve sick leave rate of three hours and thirty minutes (3:30). West Flight Attendants shall utilize the provisions of 15.C of the West agreement, except the daily reserve sick leave rate of three hours and thirty minutes (3:30), the seventy five hour cap for utilizing sick leave shall be eliminated, and a Flight Attendant shall not be required to call in sick each day of a trip.

POST PBS IMPLEMENTATION THE FOLLOWING WILL BE IN EFFECT:

When a Reserve calls in Sick for a trip or on an AVL day the Reserve is charged the above rates or trips missed whichever is greater. The AVL day calculations are based on the 75 hour guarantee. Each AVL day has a value placed on it based on the following calculation:

75/19 AVL Days (30 day month) = each AVL day worth 3+56 toward the monthly guarantee

75/20 AVL Days (31 day month) = each AVL day worth 3+45 toward the monthly guarantee

If the daily rate was 3+30 and a Reserve was off the entire month the Reserve would not earn the full 75 hour guarantee.

Why is a Reserve charged more than a Lineholder for sick leave?

They are not. A Lineholder who misses a trip is charged the value of her/his trip will be higher than 3+56 per day. A Lineholder who calls in on her/his day off receives 3+30 but most Lineholders do not call in sick on a day off. Lineholders who call in on a day are receive 3+30 a day because their line guarantee is 71 hours.

Did the Union propose the "former East" pre-LTO Reserve section? (Section 12 Reserve)

Yes. The JNC proposed a return to the old system from the very start of negotiations. The company absolutely refused to go back to the old system and wanted to maintain the LTO system. We negotiated the Reserve section for well over a year and reached an agreement on the Section in the TA, which eliminates LTO.

What were the goals of the JNC in negotiating the Reserve Section?

The goals were the following:

- Reserves paid a Minimum Day anytime they are called out to fly

- Eliminate the current actual time only language

- Return to a seniority based system where Reserves are processed every day in future based on seniority and eliminate LTO

- Eliminate 24 hours on call

- Increase the guarantee

- Maintain Reserves being released into rest upon trip completion (eliminate the West language on "tagging")

- Increase the call out time and eliminate the "must reside within 90 minutes of the airport" language

- Reserves bid and are awarded lines via PBS bidding for the days off at their preference rather than company pre-built reserve lines

- Fix the OPR pay problem when an OPR is assigned a trip

- Minimize the amount of Reserves that have their days off moved to accommodate coverage problems

The TA accomplishes all of the above.

How will Future Scheduling award trips to Reserves? (Section 12.J)

Future Scheduling will award trips in Seniority order regardless of the number of days of availability a Reserve has or the amount of time accrued for the month.

Will a Reserve with four days of availability always have to fly a four-day trip?

No. If the number of Reserves available with four or more days of availability is greater than the number of four day trips then the Reserve may select a trip of a different length or ROC (Pass).

When would a Reserve have to take a four day trip and why?

If the number of Reserves with four or more days of availability is equal to or less than the number of four day trips to cover then a four day trip must be selected. This is in order to prevent another Reserve from being assigned into OFF days or a trip being split.

How will a Flight Attendant be paid for flying a split trip? (Section 10 M.)

Any replacement Flight Attendant and on all company-initiated split trip, will be paid the Minimum Day. This means no more actual time (unless greater than the VM) for someone who is awarded or assigned a split trip.

Has Reserve "Tagging" from the West Contract been eliminated? (Section 12, Reserve, Paragraph E)

Yes. Once a Reserve has completed his/her trip assignment the Reserve is released into their legal Domicile Rest period. A Reserve does not have to contact scheduling to be released into their rest period.

How does time on Aggressive Reserve count?

In Daily Scheduling a Reserve, at her/his option, can opt to be an Aggressive Reserve. She/he will be processed in seniority order. Time spent on Aggressive Reserve will count as pay and credit. So a Reserve who wants to fly and break guarantee would make herself/himself as an Aggressive Reserve.

Time assigned while on Aggressive Reserve will not count towards timing out. The Company would not agree to return to a seniority system if it would cause excessive numbers of Reserves to time out. All time in Future Scheduling and non-Aggressive Reserve time assigned in Daily Scheduling still counts towards timing out.

What happens if this Tentative Agreement gets voted down?

This is the key question facing US Airways Flight Attendants. As the ones dealing with the Company at the bargaining table, we believe that it is unlikely you would have another offer to vote on anytime soon for the following reasons.

• The Company has given us their final economic offer. They were fine being put into recess if we could not agree on economics a couple months ago, so the idea the Company is desperate to reach a deal is not correct. The Company has been consistent on economics so there is no reason that to believe the Company will improve the offer.

• The internal process for reaching a merged agreement is not simple. The JNC would have to figure out why the TA was voted down and would likely survey the membership. Then the committee East and West would need to decide which sections to reopen. Remember, the Company could do likewise.

• The National Mediation Board determines when or if we meet. We cannot say what the NMB will do. However, last fall the NMB was unwilling to schedule further meetings if we continued to be so far apart on economic terms. There is no reason to believe their position will change. (One rumor says the East or West could just return to their separate Section Six negotiations. This is not true. The NMB has consistently refused to schedule separate East or West only negotiations.)

• Then begins the hard part of trying to get the Company to agree different terms. We believe to get the Company to budge on their offer would require a strike vote and most importantly, a release from the National Mediation Board. It is hard to get a release from the NMB at a major carrier in normal times but it is particularly difficult in an election year.

The economic landscape has changed dramatically since we reached the TA. On the day the TA was reached oil was priced at $85.00 a barrel. Today oil closed at $107.00 a barrel.

Thank you,

Mike Flores, MEC President
Deborah Volpe, MEC President

Carol Austin, JNC Member
Eva DeCastro, JNC Member