6.02.00 – (LAA) – Negotiations Update, Annual Convention, Merger News

June 2, 2000

Hello, today is Friday, June 2nd, 2000 and this is Arthur Cline, APFA Negotiator with a Negotiations update for this week.

There were no formal negotiating sessions this week between the two parties.

Instead, Management continues to contemplate APFA s most recent counter proposal on Merger and Acquisition language, under Article 1. The Company has acknowledged the importance of our securing contract language that would protect F/As in the event American either acquires another airline, or is acquired by another airline. Our proposed language for Article 1 regarding Merger and Acquisition would not only protect our F/A’s seniority, but jobs, as well.

The two parties are also very close to agreement on Articles 18, regarding notification of Base Closings, and Article 25, Trip Trading and Exchange of Trips. After these articles are tentatively agreed to, discussions will resume on Article 19, Military Leaves and Article 26, IOD and Sick Leave Benefits. The IOD language contains some pretty complex language that still needs to be ironed out by the parties.

The focus of next week’ s negotiating sessions between APFA and AAL will be all of these open, outstanding articles, as well as Article 10 and Appendix I, Article 10, Reserve.

That is all for this week; please stay on the line for other APFA and industry news. We will update this HotLine following next week’ s sessions with the Company.

Hello, this is Leslie Mayo, National Communications Coordinator with APFA Hotline News for the week ending June 2, 2000.

There will be a Special Board of Director’ s Convention June 6th and 7th at the Sheraton Hotel and Towers in Chicago. The hotel is located at 301 E. North Water Street and the meeting begins at 10:00 a.m. Central Standard Time. This meeting has been called to elect Ad Hocs for the two positions that became vacant following the appointment of Lori Bassani and Lynda Richardson to Western and North Central Division Representative, respectively. The entire Executive Committee will then be meeting Friday, June 9th at 10:00 a.m. at the Sheraton as well. Both of these meetings are open to all members in good standing.

Susan Donofrio, Analyst for Deutsche Banc seems doubtful, as she puts it, that the United/USAir merger will take place once it meets the scrutiny of the Justice Department Regulators. She commented that recent rulings indicate that big is bad referring to the merger’ s potential size and noted consumer concerns over fares and service. She has announced that the merger game has begun and that other airlines will take action. QUOTE: A United/USAir link-up greatly tips the system market share scale to 28%, far ahead of the other airlines, She continued by speculating, as lots of other experts have as well, that Northwest is an ideal takeover candidate for American. Donofrio cited the North Central and Pacific presence causing American to increase market share from 19% to 31%.

Meanwhile, back on management’s planet, the head of United Airlines, James Goodwin, begged his top pilots to support the merger between United and USAirways. United has 10,000 pilots and it is pretty much a given that management will be forking out a lot of time and money to sway their pilots into this deal. Rick Dubinsky, the ONE pilots rep on the board of majority employee-owned UAL, cast the single no vote when the approval vote was sought on May 2nd. His reasons were seniority, seniority, seniority. The pilots cannot veto this deal, but without their support the merge would be difficult for United to pull off.

United pilots have been seeking pay hikes of 25 to 30 percent since the company’ s stock option plan was up for renewal a few months ago. This gives them a much better bargaining position with United now. Under their 6-year-old ESOP, United employees agreed to less pay for stock options. The options plan is now on the back burner, however, lower wages still exist. This leaves them underpaid compared to other airlines pilots. They have pushed the company into canceling dozens of flights daily by refusing to work overtime since April when the stock option plan expired in protest to the lack of progress being made in contract talks.

Today, A St. Paul, Minnesota Television Station reported that AA and Northwest have engaged in merger talks. Northwest s stock price rose 13% to $33 on that prospect. As APFA has been stating since the day this proposed merger was announced, we are closely monitoring the proposed acquisition of USAir by United. The issue of Mergers and Acquisitions is being addressed at Negotiations with the company. If American does make any strategic moves, we will do whatever is necessary to protect the interests of our membership.

Northwest Airlines Flight Attendants, represented by Teamsters Local 2000 ratified their 2nd Tentative Agreement on May 30th, ending 1369 days of bargaining and combat with their employer. Teamsters reported a 68% yes vote — 5,485 Flight Attendants in support of proposed T/A, with a total of 8,069 ballots counted. Most aspects of their new contract became effective on June 1, 2000.

The FAA is out in full force checking manuals and fining flight attendants for out-of date revisions, missing cockpit/jetbridge keys, flashlights and other FAA required equipment. Please double check that you have everything required of you in the way of safety. Also, a quick heads up from the Scheduling Department: there is a 30-day embargo for all non-revenue travel out of Dallas Love Field to Chicago beginning June 1st.

The National Ballot Committee in conjunction with Whitley, Penn & Associates has certified the DFW Base Chair election. Kim Boyett received 741 votes and Samuel Morales received 447 votes for a total of 1188 ballots counted. Ballots received but not opened or counted included 20 in dues arrears, 8 that were not in the secret ballot envelope, 2 had no label and 2 did not follow directions for a total of 1220 ballots received. Approximately 35% of our members at DFW participated in this election.

Kim Boyett is the new DFW Chairperson. Kim and Chris O’Kelley the duly elected Vice Chair will represent DFW for the remainder of the two-year term of office ending March 31, 2001.

Your Negotiating Team 2000 and the Special Advisory Committee would like to invite you to our system InfoRep and Base meetings for negotiations briefings, sponsored by your local chairs. Miami and Miami International will be meeting on the 15th of June at the Hotel MIA in the Miami International Airport. InfoReps are welcome at 10:00 a.m. and all members in good standing are welcome at noon. Boston/Boston-I will be held on the 22nd of June, Raleigh-Durham on July 13, and Seattle, July 20. Meeting times and locations will be announced on future Hotlines or check with your Base Chair.

As a reminder, American Airlines has extended the deadline to sign up for long-term care insurance they are currently offering, until June 28,2000. Enrollment kits are available from MetLife, at 888-526-8495, Monday through Saturday. This insurance is being made available to employees eligible family members, and retirees and pricing is age-rated.

That’ s it for this week. Stay unified and wear your Union pin proudly.
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