1.18.07 – (LAA) – Presidential Grievances, Pay-As-You-Go Administrative Process, Base Elections
Today is Thursday, January 18, 2007. This is Tommie Hutto-Blake, APFA President, with an important Hotline announcement.
APFA and the Company have been working hard to resolve six Presidential Grievances – the first of which was filed in June 2006; the most recent in October. These six grievances addressed Flight Attendant healthcare benefits changes made by the company.
Yesterday, APFA and senior management signed off on a comprehensive pre-arbitration Settlement Agreement that resolves all of our system wide AA Flight Attendant Health Care Plan Presidential Grievances. In dispute were such issues as reducing to 60/40 the coverage for out-of-network providers under the Retiree Standard Medical Plan; to the termination of benefits for some inactive FAs on IOD or Unpaid Sick for more than 30 days.
Another issue that has been resolved with this settlement is the Pay-As-You-Go Administrative Process – the payment of health care coverage while on inactive status or when flying less than 420-hours – which was negotiated between the parties during the 2003 Restructuring Period. This Settlement resolves all of these issues and even alleviates the need to file further Grievances on recent healthcare benefit changes.
As reported in recent hotlines, an April 2007 arbitration date had been scheduled before Arbitrator Richard Bloch. Efforts to resolve the issues prior to arbitration – thereby retaining control of the outcome – is as important as the preparation of our Union’s case before a third-party in the event the parties cannot agree on an outcome.
Before I go any further with this announcement, I want to acknowledge how impressed I am with the many active and retired Flight Attendants who have written management in the past weeks regarding health care benefits. Your letters were factual, eloquent and compelling. I will always believe that it was your actions in recent weeks that generated the tipping point and pushed the parties to seek a solid resolution concerning these disputes. This is an important Settlement Agreement and many of you helped us get there.
I am also proud of the solid work that has been done in these last weeks prior to settlement by a very focused group of APFA union activists. APFA had a team of advocates that simply would not give up in reaching an agreement NOW – not waiting for months and months of ‘battle’ in the arbitration room. We had members who had lost total health care coverage and they needed a solution sooner rather than later.
I must also give credit to certain individual senior management leaders who came to the settlement table knowing this Global Health Care Coverage Resolution was the right thing to do. This task has not been easy and again I give credit to our activist members who definitely had direct impact on this solution. I am certain that this pre-arbitration settlement serves us well as a lesson for what the parties can accomplish when we seek creative solutions representing the interest of all concerned. APFA certainly has more collective battles ahead of us and we must learn to fight smart as we seek our solutions! Standing together on collective issues has great impact on the final outcome.
Yes, these disputes could have been resolved by an arbitrator sometime down the road, with a winner and loser declared. But these disputes needed our joint attention and resolution NOW. Labor and senior management reached an agreement providing solutions to our members who needed our help. Again, many of you helped us get there.
I will close by reading some direct statements from the language of this settlement, which again you can read in full on either the APFA or company Web sites: I quote: “The Company and the Union agree that health care is not only an important issue for the employees of American Airlines, but also for millions of Americans across the country. As such, we have worked together to resolve our outstanding health care disputes outside of arbitration … The Company and the Union agree to explore strategic, joint legislative approaches to [future] health care issues. The parties recognize that this settlement results from a joint collaborative effort. Accordingly, the parties commit that communications about this settlement will reflect that joint work can produce solid results.”
I hope that you will join me in this learning experience … if we ‘fight smart’ together – we can produce solid results. The next time we ‘call to action’ I urge each of you to join our activist pool. Standing shoulder to shoulder produces direct results. Before I turn today’s hotline over to Leslie, I would like to read a very simple statement from a past world activist, Margaret Mead: “Never doubt that a small group of thoughtful, committed individuals can change the world. Indeed, it’s the only thing that ever has.”
Leslie…
…Thank you, Tommie. This is Leslie Mayo, APFA National Communications Coordinator, with the rest of the Hotline.
On the topic of this Settlement, one of the items resolved is the reinstatement of health care benefits for some of our members who were/are on long-term unpaid sick or IOD. Unbeknownst to these FAs, they were required to follow the same steps to ensure retention of their health, dental and vision coverage as those FAs who took voluntary leaves of absence and who presumably had the ability to plan for any adjustments necessary for coverage while on planned Unpaid status. APFA has been attempting to resolve 26 individual disputes that involved compelling personal hardships for those FAs affected by the changes to the Pay-As-You-Go process that was implemented on January 1, 2006. Although the intent of these changes was to ensure current payment of benefits, not to terminate coverage, the end result was a loss of health care benefits for dozens of our members. This settlement will reinstate coverage retroactively including necessary reimbursement of any interim health care benefits.
Prefunding of Retiree Medical Benefits was also included in the Pay-As-You-Go process on January 1, 2006 and resulted in many of our members who were either on unpaid sick, IOD or even a Personal Leave of Absence having their pre-funding cancelled. Following review of the plan language for pre-funding, pre-funding will no longer be able to be waived as a result of a Life Event, when going on a LOA greater than 30 days. In addition, this change will be retroactive to 1-1-2006 and will reinstate pre-funding for all affected FAs who lost pre-funding.
APFA cannot stress enough the impact that current and retired Flight Attendants had on the outcome of this settlement. Your efforts to communicate with management were extraordinary and your stories persuasive. There is no doubt that our membership’s passion and resolve over these disputes made a difference in the positive outcome of our health care benefits.
Please visit www.apfa.org and click on Presidential Grievances – Grievances Settled – Comprehensive Health Care Benefits Settlement – 1.17.07 to read the language in its entirety. You will also find Q&As to accompany this document that will hopefully answer any questions you may have.
From the Contract Department, APFA is currently monitoring the Company’s recent changes to Buy on Board (or Food For Sale) to determine if a violation of our Contract has occurred based on the recent changes. Article 9.B.2. of our Contract states in part that “…the Company shall have discretion in changing staffing or service levels, APFA shall be afforded a safeguard against the Company abusing that discretion. Accordingly, APFA shall have the right to file a Presidential grievance if the Company abuses its discretion by assigning an unreasonable workload to Flight Attendants.” Your assistance in this analysis is greatly appreciated. Specific feedback from your experiences with Food For Sale based upon the recent changes is encouraged. Please email information including flight number, city pair, aircraft type, length of service and any issues in your efforts to complete the service to [email protected].
As a reminder, our Annual Board of Directors Convention begins February 8th in Chicago. For details please visit the Web site’s Newsflash section on the upper right corner. Barbara Ehrenreich, author of Bait and Switch and Nickel and Dimed, will be our keynote speaker. Jill Frank Smoak, APFA’s first retirement specialist will be honored by the APFA leadership during this event. Again, all members are invited to be a part of this important evening.
Industry News: American Airlines exceeded Wall Street’s expectations yesterday by announcing a $17 million profit for the 4th Quarter as opposed to a $600 million loss in the same quarter of ’05, bringing American Airlines’ annual profit for 2006 to $231 million. This is AA’s first annual profit in six years. Southwest announced a lower than expected profit of $57 million for the quarter as opposed to a $70 million profit in the same quarter of ’05. Its profits for the year totaled $499 million. Meanwhile, Continental announced a loss today of $26 million for the 4th Quarter.
As AMR reports handsome 4th Quarter earnings and its first annual profit since 2000, and AMR’s stock tickers above $40, we should celebrate and take pride in the fact that we were a huge part of these results. APFA firmly believes that when all employees can partake in the rewards, not just a select few from Senior Management in the form of Executive Bonuses in the hundreds of millions set for an April 15th payout, a true celebration of our hard work and sacrifices will be in order. Thank you for your continued professionalism and activism. We will be calling upon you to help us with this endeavor in the near future.
Please remember that we have 2,609 APFA members on furlough.
Now, please stay on the line for the National Ballot Committee’s announcement of those who submitted Willingness to Serves for Base representation. Leatha…
This is Leatha Harding-Berry with the APFA National Ballot Committee. On January 17, 2007, the National Ballot Committee picked up the Base Representative Willingness to Serve Notifications. The National Ballot Committee has certified the following Base Representatives duly elected to a two year term of office beginning April 1, 2007.
*pending outcome of Chair and Vice Chair Elections
APFA Base Representative Elections
There will be elections for the Chair and Vice Chair positions at JFK, Los Angeles International and St Louis and the Chairperson position at Dallas Domestic and San Francisco Domestic. There will also be an OCR election at Boston International. The candidates are as follows:
BOSI Operation Council Member
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Susan Coequyt Michael Medeiros Sean Nowicke |
Frank Eschmann Patty Moore Neil “Woody” Wood |
DFW Chairperson
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Samuel Morales | Chris O’Kelley |
JFK Chairperson
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Danny Cabrera Suzanne Edwards |
Jessica T Washington |
JFK Vice Chairperson
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Christian Casadey | Rosalan Inyang |
LAX-I Chairperson
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Tony Leonhardt David Ransom |
Joseph Robinson |
LAX-I Vice Chairperson
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Tony Leonhardt | David Ransom |
SFO Chairperson
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James Bunn | Larry Salas |
STL Chairperson
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Robert Applegate Dixie Daniels |
Greg Bertolini Nena Martin |
STL Vice Chairperson
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Tim Hunter Maggie Joyce |
Kathy M. Jones Mary Pat Taylor |
We are still awaiting confirmation from the membership-nominated candidates at the LAXI base and will update you when finalized.
Ballots for these elections will be mailed on February 6, 2007 and will be due on March 8, 2007. If you have any questions concerning these elections, please call the National Ballot Committee at APFA Headquarters ext. 8311.