11.22.02 – (LAA) – AA Notified APFA that Bids Have to be Re-Run Due to Glitch In System Affecting Vacation Relief Bidding

Hello. Today is Friday, November 22, 2002. This is George Price, APFA National Communications Coordinator with the APFA HotLine.

The company has notified the APFA that bids had to be re-run due to a glitch in the system, which affected vacation relief bidding. The problem has now been fixed and Phase I of the bid run should be complete for all bases by Friday evening.

Jane Allen announced in her Friday, November 15, 2002 hotline that all remaining flying done by the ISL crew base would be temporarily transferred to other bases beginning February 1, 2003, and all ISL Flight Attendants would fall off to the domestic operation at STL. Mrs. Allen continued by saying that once transition training was complete in February or March that international flying should resume at the ISL base. APFA was never notified of this decision. The first the union heard of it was on Mrs. Allen’s hotline. The APFA and the company have scheduled meetings to discuss this issue. When there is information to report, we will update this hotline and the web site.

The APFA and American Airlines signed a Letter of Agreement on November 20, 2002, outlining the final crew rest implementation schedule. The Letter of Agreement provides for an accelerated schedule for implementation of the 767-300 crew rest seats. They will now be installed by June 2003, which is 15-months ahead of the original deadline of September 2004. The penalties for non-compliance of this deadline as contained in Article I-30-1 will apply as of July 1, 2003. The 777 bunk installation must now be complete by January 12, 2005, or the penalty of four Business Class seats for noncompliance of installation of main deck crew bunks on the 777-A will take effect. The text of this Agreement will be posted on the APFA Web site.

An updated contract implementation schedule has been posted on the APFA Web site. Provisions to be implemented in December are:

Information on the high time turns scheduled and high time flyer recovery of lost time can be found on the APFA Web site under “Hot Topics.”

As reported on the APFA Hotline on November 15th, the APFA Board of Directors authorized APFA’s entry into an agreement concerning the terms that would be applicable if, at the time TWA-LLC Flight Attendants are recalled by the Company, the only openings in the AA system are at locations other than St. Louis, and there are still American Flight Attendants on furlough. The Company now has the right to send Flight Attendants to wherever there are openings at the time of recall.

This same right would be applicable with respect to recalled TWA-LLC Flight Attendants. However, because the American/APFA Seniority Integration Agreement prohibits St. Louis-based TWA-LLC Flight Attendants to transfer to other locations while any American Flight Attendants remain on furlough, this would mean that junior recalled TWA-LLC Flight Attendants would be going to locations other than St. Louis while more senior TWA-LLC Flight Attendants would be required to remain in St. Louis.

The Board of Directors decided to address this situation by permitting a number of senior TWA-LLC Flight Attendants equal to the number of recalled TWA-LLC Flight Attendants to transfer to other bases in the AA system and the recalled TWA-LLC Flight Attendants would be recalled to St. Louis. APFA was not required to take this position, but thought it was the most appropriate way to address this situation. The agreement will have no impact whatsoever on any American Flight Attendants. It will not delay the recall of any American or TWA-LLC Flight Attendants. Neither will this result in a bringing down of the fence.

In all other respects, the Seniority Integration Agreement will remain fully applicable.

The executive session on the 777 staffing arbitration was held on Wednesday, November 20th. APFA hopes to have the arbitratorís decision before the end of the year.

In Rumor Control: The APFA has received no information from American Airlines regarding future Flight Attendant overages.

It has been brought to APFA’s attention that a virus laden e-mail has been sent listing [email protected] as the sender. The subject of the email is “questionnaire”. It has an attachment listed as “Section Zip.” APFA did not send this message. If you receive it, please delete it immediately. It is a virus laden message.

In Washington, D.C. this week, the Senate passed their version of the Homeland Security bill. The House passed their version of the bill last week. Both bills contain the security provisions for Flight Attendants that APFA supports including self-defense training for Flight Attendants, instant, hands-free, wireless method of communicating with the cockpit, and a study of a non-lethal weapon for Flight Attendants. The bills now go to Conference to be reconciled.

An article in the Sunday Dallas Morning News reported that airline management has targeted how carriers negotiate with unions. The airlines have spent literally millions of dollars in Washington this year through lobby efforts to further their agenda. Management supports the McCain-Lott bill that would, among other things, eliminate strikes by airline labor unions and force settlement of outstanding issues through the use of so-called “baseball arbitration.” In this type of arbitration, one side’s proposal would be chosen in its entirety over the other. This would radically change the Railway Labor Act under which airlines and unions negotiate contracts today. APFA is gearing up for a major membership campaign to let Congress know how we feel about this piece of legislation. Get ready to answer the “Call to Action!” If you have an e-mail address that you have not registered with the APFA Membership Department, please e-mail it to [email protected]. APFA will be using not only the hotlines, and the web site, but also direct e-mail to alert our members of upcoming action. The complete text of the Dallas Morning News Article can be found on the “Aviation News Page” of the APFA Web site.

As we reported on Friday, the APFA Board of Directors passed a resolution that requires all official minutes of all board meetings and teleconference calls be posted on the APFA Web site. Per the APFA Policy Manual, the APFA Secretary has thirty days to provide this information. Once it is available, we will post it on a new page of the APFA Web site.

LifeBalance, AMR’s former provider of Web-based work-life tools, was replaced by United Behavioral Health on November 22, 2002. This alternative online employee resource program is free of charge to all American employees. The new service will offer information, advice and support on issues such as childcare and parenting, education, retirement, disability, finances and legal. To contact United Behavioral Health online, go to http://liveandworkwell.com. Use the access code “American.”

Willingness-to Serve Notifications for Chairperson and Vice Chairperson for the ISL base were mailed to all ISL Flight Attendants on November 8th, 2002. They must be received in the designated Post Office Box by 10:00 a.m. Central Time on December 8, 2002.

APFA was made aware of the fact the company has commissioned a firm to conduct a survey of the employees on the economic status of the company and the industry. If you receive a call, it is strictly up to you as to whether you would like to respond. If you choose to participate, be honest about your thoughts.

Effective November 28, 2002, J.P. Morgan/American Century will become the new record-keeper for the Super Saver 401(K) plan. According to information provided by American, there will be no significant changes to the current plans, and no action on the part of Super Saver participants will be required. Due to the transition, there will be what American classifies as a “quiet period” in which certain transactions will be restricted. This period runs from November 20th until December 2nd. Please see the APFA Website “Hot Topics” for more details.

In Industry News:

American hit the news several times this week. On Monday, American announced that it would test a simplified fare structure in 23 markets. This would cut business fares by as much as 40% and raise some leisure fares.

British Airways and American filed an application with the Department of Transportation seeking approval of a codeshare agreement. Such agreements are currently provided for in the U.S.-U.K. Air Services Agreement. The two carriers have proposed placing their codes on certain flights other than those between the U.S. and London.

Pilots at United have approved a concession agreement with their airline. Provisions of their agreement will take effect on December 1, 2002. Flight Attendants are currently voting on their package. Mechanics reached a $1.5 billion dollar concession agreement on Wednesday. United announced this week that nonunion employees would take pay cuts between 3 and 11 percent and forego merit raises. The airline also disclosed plans to cut flights by 6 percent in 2003 compared to 2002 and reduce employee headcount to 74,000 by 2004, which is down from 100,000 prior to September 11, 2001.

Delta unveiled plans for its new “low-cost” carrier within a carrier. The new unit will use 36 Boeing 757s currently in the Delta fleet to fly mainly up and down the East coast. The airline also announced plans to change their retirement plan for employees hired after June 30th. The new plan will state the employee’s retirement benefits as an account balance and not a monthly payment. The employee would be able to take the cash-balance as a lump sum or as an annuity when they leave Delta. This will save Delta money by allowing it to make annual contributions into the account instead of monthly.

APFA Headquarters will be closed on Thursday, November 28th, and Friday, November 29th in observance of Thanksgiving. If you have an emergency, the APFA Officer-On-Duty will be available. All calls of a non-emergency nature will be routed to the appropriate department or representative for response the next available business day.

On behalf the officer, representatives, and staff of the APFA, have a safe and happy Thanksgiving!

Please remember there are currently 2,124 Flight Attendants on furlough.