Printable Version of Tentative Agreement

Letter from District 141 President & General Chairman Randy Canale

LETTER OF AGREEMENT

Between

US AIRWAYS, INC. and AMERICA WEST AIRLINES, INC.

and the

FLEET SERVICE EMPLOYEES

in the service of

AMERICA WEST AIRLINES, INC. and US AIRWAYS, INC.

as represented by

INTERNATIONAL ASSOCIATION OF MACHINISTS  AND AEROSPACE WORKERS

________________________________________________________________________________

FINAL TRANSITION AGREEMENT

________________________________________________________________________________

THIS LETTER OF AGREEMENT is made and entered into in accordance with the provisions of the Railway Labor Act, as amended (the “Act”), by and between America West Airlines, Inc. (“America West”), US Airways, Inc. (“US Airways” and, together with America West, the “Airline Parties”), and the FLEET SERVICE EMPLOYEES in the service of US Airways and America West, as represented by the INTERNATIONAL ASSOCIATION OF MACHINISTS AND AEROSPACE WORKERS (the “Union”).  All parties are collectively referred to as the “Parties”.

WHEREAS, effective September 27, 2005, America West Holdings Corporation became a subsidiary of US Airways Group Inc.; and

WHEREAS, effective May 11, 2006, the National Mediation Board found that the International Association of Machinists and Aerospace Workers is the sole certified representative of the fleet service employees of both America West Inc. and US Airways Inc.; and extinguished the Transport Workers Union (“TWU”) certification; and

WHEREAS, the Airline Parties intend that they will continue to operate with separate fleet service work groups until the two fleet service workforces are integrated under the provisions herein;

THEREFORE, the following applies: 

I.                   Transition Dates.  In general, the America West Employees in the Fleet Service craft or class (“West Employees”) will transition to the existing US Airways/IAM Collective Bargaining Agreement, as amended (the “CBA”) within 30 days of ratification of this Agreement (the “Transition Date”), except where transition dates for specific CBA articles are otherwise set forth in Attachment A hereto.

II.        Seniority List Integration

            As described in Attachment C.

III.       Operational Employee Integration

            Operational Employee Integration (OEI) is defined as the time the Fleet Service Employees of America West and US Airways are integrated into a combined Fleet Service workforce, with the application of the combined fleet service seniority list. The Company will accomplish OEI no later than six (6) months following ratification.  

IV.       Effective Date

This Letter of Agreement:

1. Governs in case of conflict between one of its terms and a provision of the existing US Airways fleet service Collective Bargaining Agreement, as amended;

2. The Company will, no later than six (6) months from date of ratification of this Agreement, provide each Fleet Service Employee a single Collective Bargaining Agreement containing the language changes incorporated in this Transition Agreement.

IN WITNESS WHEREOF, the parties hereto have executed this Letter of Agreement effective this ____ day of _____________, 2008.

AMERICA WEST AIRLINES, INC.:

By:__________________________________

US AIRWAYS, INC.:

By:________________________________

INTERNATIONAL ASSOCIATION OF MACHINISTS AND AEROSPACE WORKERS:

By:________________________________

ATTACHMENT A

Below are the terms for the transition of West Employees to specific CBA Articles. Where the Transition Date specified herein is prior to Operational Employee Integration (OEI) the application of such provision will be separate between East and West Fleet Service Employees until the date of Operational Employee Integration (OEI). Additionally certain modifications to the East Agreement are also included and will become effective as described in each section below.

1.            Article 1 (Purpose of Agreement) Will apply to West Employees on the Transition Date.

2.            Article 2 (Status of Agreement) Will apply to West Employees on the Transition Date.

Effective on Transition Date amend CBA as follows:

• Change in control language in paragraph B beginning on line 32 will be deleted.

3.            Article 3 (Recognition and Scope) Will apply to West Employees on the Transition Date.

Effective on Transition Date amend CBA as follows:

• For the period from the effective date of this Agreement, the Company will not outsource normal and customary ramp work as described in Article 4.A.1 at any station where that work is currently being performed by Fleet Service Employees of US Airways / America West providing such station maintains more than fourteen (14) scheduled jet departures weekly (calculated on an annualized basis based on the time frame outlined in the CBA). This provision will remain in effect through December 30, 2011. Effective December 31, 2011, any station covered under this paragraph (except those listed below in bullet point 3) will fall under the January 31, 2005 CBA, Article 3 as amended.
• For the period from the effective date of this Agreement, the Company will not be required to in-source any work or station that is currently out-sourced as of the effective date of this Agreement. Effective December 31, 2011 any station covered under this paragraph will fall under the January 31, 2005 CBA, Article 3 as amended. 
• Effective December 31, 2011, any of the following stations (ABQ, AUS, BUR, ELP, OAK, OMA, ONT, RNO, SJC, SLC, SMF, PDX, MSP, MCI, MKE, SEA, DEN and SAN) may be out-sourced if they fall below twenty-eight (28) weekly jet departures on an annualized basis.
• Effective with the date of this Agreement the Company will not outsource normal and customary Cargo work as described in Article 4.A.3 in PHX, LAS and LAX.

4.            Article 4 (Classifications) West Employees in the positions listed below (as of the Transition Date) will convert to Article 4 classifications on the Transition Date, as follows:

            West Fleet Service Lead Agents will be assigned to the US Airways Fleet Service Lead Agent classification under Article 4 of the existing IAM CBA.

West Fleet Service Employees other than Lead Agents will be assigned to the US Airways Fleet Service Agent classification under Article 4 of the existing CBA.

·         The Parties agree that non-contract West Employees in LAS and PHX who are performing normal and customary tower work will be assigned to the US Airways Fleet Service Lead Agent classification under Article 4 of the existing IAM CBA and will be given a Fleet Service Classification date the same as listed in the “adjusted seniority date field” in the America West’s Human Resources Information System and verified by the Union. Future tower vacancies which the company decides to fill in PHL, CLT, LAS and PHX will be filled through a company selection process. In the event of a reduction in force these Employees will be subjected to Article 9 of the 2005 Agreement.

Non-Contract West Employees in PHX who are performing normal and customary weight and balance work will be assigned to the US Airways Fleet Service Agent classification under Article 4 of the existing IAM CBA and will be given a Fleet Service Classification date the same as listed in the “adjusted seniority date field” in the America West’s Human Resources Information System and verified by the Union.

·         The classification of Lead Agent may include part-time Leads in stations with former West Employees and where there are current part-time leads or the station has previously had part-time leads, not to exceed a combined total of sixty-eight (68) part-time leads.  

5.            Article 5 (Hours of Service) Will apply to West Employees no later than OEI.

·         The Company and the Union will sign a Letter of Agreement outlining the provisions for ten (10) hour work days where utilized by the Company.

Effective on OEI amend CBA as follows:

·         Employees may shift swap off their regular scheduled shift up to (26) times per calendar quarter. Local policy may be less restrictive.

6.      Article 6 (Overtime) Will apply to East and West Employees no later than OEI.

Effective on OEI amend CBA as follows:

·         Employees will be equalized for actual overtime hours worked and, if signed up on the overtime availability list, for actual overtime hours offered and refused and for those overtime hours for which the signed up Employee could not be contacted. Employees who do not sign up on the availability list will not be charged any hours eligible to work for the purpose of equalization unless they work the overtime.

·         Effective OEI the following provision will become effective.

Overtime - Article 6.Q will be modified as follows:

   Modify 3. After the weekly overtime qualifier has been met, overtime will be paid at one and one-half (1½) times the regular rate for the first eight (8) hours overtime worked and two (2) times the regular rate for all overtime hours worked thereafter except as provided for in items 4 and 5 below.

    Add 4.   Employees must work a minimum of four (4) hours at an overtime premium rate on their first regularly scheduled day off in order to be paid two (2) times the regular rate for all overtime hours worked on their second (or third) regularly scheduled day off.

     Add 5.     Employees who shift trade to be off and who work overtime on the day off   shall be paid a maximum rate of time and one-half 1 (½) for the first eight (8) hours of overtime worked and two (2) times the regular rate for all overtime hours worked there after.

7.      Article 7 (Seniority) Integrated Seniority list will apply to all Employees no later than OEI.

Effective on Transition date amend CBA as follows:

·          Effective on date of ratification, the 60 day rule will be eliminated for any furloughs that occur after that date.  

·         All Employees who are currently working at any station under the 60 day rule or any station covered under the Interim Transition Agreement on the first day of the first pay period following ratification will be placed on the pay scale consistent with their US Airways pay seniority on date of furlough.

·         Employees currently on involuntary furlough for 60 days or more shall forfeit all pay date seniority except that an employee who is recalled to the station from which he was furloughed prior to OEI will be placed in the pay scale consistent with their pay date seniority at date of furlough. In addition, if an employee’s furlough station remains closed and the Employee is recalled to their selected recall station prior to OEI, such Employee will be placed on the pay scale consistent with their pay date seniority at date of furlough.

8.      Article 8 (Filling of Vacancies) Will apply to West Employees on Transition Date.

9.         Article 9 (Reduction in Force) Will apply to West Employees on the Transition Date.

Effective on Transition date amend CBA as follows:

·         Paragraph B.2.e modify such that Employee will also be prohibited from submitting system transfers for a period of twelve (12) months to part-time positions in their location if they had sufficient seniority to displace to part-time.

·         Paragraph C.4 modify such that full-time Employees have part-time recall only if they did not have sufficient seniority to displace to part-time.

10.        Article 10 (Voluntary Furlough) Will apply to West Employees on the Transition Date.

11.        Article 11 (Medical Examinations) Will apply to West Employees on the Transition Date.

12.        Article 12 (Leaves of Absence) Will apply to West Employees for all requests for leave and for any extensions or alterations to leaves that become effective on or after the Transition Date.  The terms and conditions approved for leaves prior to the Transition Date will remain in effect until the termination of those leaves.

Effective on Transition Date amend CBA as follows:

• Employees on medical leave as a result of an occupational injury will have medical/dental benefits extended for (9) months after last compensated day provided the Employee continues to pay his/her portion of the cost.

13.        Article 13 (Sick Leave) Will apply to West Employees on 1/1/2009.  In addition, any remaining unused sick leave days from the Employee’s sick leave bank that were rolled over on January 1, 2007 and all unused sick days accrued in 2007 and 2008 by West Employee will be placed into the Employee’s sick leave bank.

Effective on OEI amend CBA as follows:

·         Modify paragraph B so that the first three (3) days of each occurrence will be paid at fifty –percent (50%) and decremented at fifty-percent (50%) rate.

·            Employees who have one hundred (100) or more days in their sick leave bank on the date of the sick leave occurrence will be paid one-hundred percent (100%) and one-hundred percent (100%) deducted from their sick bank.

·         Employees hospitalized overnight within the first three (3) days of any occurrence will have applicable sick leave days paid at one-hundred percent (100%).

14.        Article 14 (Holidays) Will apply to West Employees on date of ratification.

Effective on date of ratification amend CBA as follows:

·         Effective on date of ratification add Memorial Day.

·         Effective 1/1/ 2009 add Martin Luther King Day.

15.        Article 15 (Vacation) Will apply to West Employees effective January 1, 2009.  For calendar year 2008 West Employees will continue to accrue/use vacation under the America West Agreement.

Effective 1/1/2009 all Employees will accrue and bid vacation under the provisions of the CBA.  Modify CBA effective 1/1/2009 as follows:

(Note: Based on a five (5) day workweek.  Employees do not accrue vacation in the months of June and October per current collective bargaining agreement.)

16.        Article 16 (Limited Duty) Will apply to West Employees on the Transition Date.

17.        Article 17 (Probation) Will apply to West Employees on the Transition Date. Any West Employee on probation as of the Transition Date will serve a ninety (90) active work day probation period from the Transition Date, but in no case will the employee’s probation period exceed one hundred eighty (180) days from original date of hire.

18.        Article 18 (Uniforms) Will apply to West Employees on Transition Date.

19.        Article 19 (Shift Definition) Will apply to West Employees on the Transition Date.

20.        Article 20 (Grievance Procedure) Will apply to West Employees on the Transition Date.

21.        Article 21 (System Board of Arbitration) Will apply to West Employees on the Transition Date.

22.        Article 22 (Insurance) West Employees will transition to health and welfare benefits under Article 22 on January 1, 2009 and will no longer be eligible for Company paid STD or LTD on that date.

·         US Airways will not oppose the posting of any bulletins offering benefits provided by any insurance company sanctioned by the IAM & AW (excluding the current LTD Plan offered through the company by NGP) on IAM bulletin boards that US Airways does not offer under the current benefits for Employees covered under this Agreement

·         Should the Company extend the duration of COBRA benefits to retirees of any other represented group such extension will also be made available to employees covered under the agreement.

23.        Article 23 (Pension) Will apply to West Employees on 1/01/2009. On that date the employer contribution to the current 401k/Retirement Plans (3% West 401k match) is frozen from new Company contributions for West employees.

24.        Article 24 (Training and Travel) Will apply to West Employees on the Transition Date.

25.        Article 25 (Safety and Health) Will apply to West Employees on the Transition Date.

Effective on Transition Date amend CBA as follows:

·         Paragraph B-Replace PIT, CLT and PHL with any location with 275 or more Fleet Service Employees.

26.        Article 26 (Part-Time Employees) Will apply to West Employees on the Transition Date.

·         The part-time ratio for West Employees will not be applicable until OEI.

·         Union withdraws “part-time ratio” grievance with prejudice.

27.    Article 27 (Union Security) Will apply to West Employees on the Transition Date.

28.        Article 28 (General and Miscellaneous) Will apply to West Employees on the Transition Date.

Effective the Transition Date the Company will provide Space Positive Travel to Company Employees and Retirees on permanent full-time union business as follows:

The Company will authorize reasonable space positive travel (on a self-book basis) for up to five (5) union officials, providing that:

·     Such officials are employees or retirees of the Company, and

·     Are on full time union leave, and

·     Where the majority of their Union duties are related to the Company.

Such space positive travel is only authorized where the purpose of the travel is all or substantially all related to the Company. Space positive travel is not authorized for commuting, or any union business including but not limited to training and union conventions. Officials authorized space positive travel will be required to complete a monthly summary (no later than 10 days from the close of the previous business month) detailing all space positive travel in the applicable month.

29.    Article 29 (Amendments to the Agreement) Will apply to West Employees on the Transition Date.

30.    Article 30 (Compensation) West Employees will transition to the pay scale under the CBA as outlined below. Pay date seniority for West employees will be the existing pay seniority date. All premiums not applicable under the CBA will be eliminated on the Transition date.

In no case will a West employee suffer a reduction in current pay rate as a result of moving to the East pay scale.

Example:

A West Employee whose hourly pay rate (including geographic premium but not including lead premium) is above the appropriate step of the CBA scale will be “Red Circled” at the higher pay rate until such time as the Employee’s pay seniority entitles the Employee to a higher hourly pay rate.

Effective on Transition Date amend CBA as follows:

·         Eliminate “in Class I stations” in Paragraph A and add CLP.

·         Eliminate Class II pay scale in the Collective Bargaining Agreement.

·         Eliminate Paragraph B

·         Eliminate Paragraph C

·         Eliminate Paragraph D

·         Eliminate Paragraph H Effective 1/1/2008

·         The longevity steps and pay scale as found in Attachment B will become effective the first day of the first pay period following ratification of this                  Agreement.                                 

·         Add to paragraph F: 1/1/2010 a 2 % wage increase and 1/1/2011 a 2 % wage increase.

·         The IAM agrees that it irrevocably waives and thus will not be eligible for any future profit sharing payments. It also agrees that such future monies that would otherwise have been due to the IAM under the profit sharing program will not be paid to IAM and instead will be retained by the Company and will not be available for distribution for profit sharing to any other employee groups.

·         The Company may hire a new Employee at a rate above the minimum on the wage scale provided there is not a more senior employee at that location who is paid less than such new employee at that location.  The Company retains the right to pay the wage rates stated in the wage scale to Employees hired subsequent to any Employee hired and paid above the minimum on the wage scale.

Pay Transition for all West employees and East Employees in current Class II stations.

• Within thirty (30) days of ratification of this Agreement, these Employees’ pay rate will be increased by fifty-percent (50%) of the difference between their then current pay rate and the pay rate at their appropriate step of the pay scale under the CBA.

• Effective on the first Monday of the first pay period six (6) months from the effective date of the first pay increase. Employee pay rates will be increased to one-hundred (100%) of the difference between their then current pay rate and the pay rate at their appropriate step of the pay scale under the CBA.

31.              Article 31 (Duration) The CBA will be amended to remain in full force and effect through December 31, 2011, and thereafter unless and until reopened in accordance with the Railway Labor Act.

·         The parties will commence bargaining for a new collective bargaining agreement no later than July 15, 2011. In the event the parties have not reached a tentative agreement during the status quo period following the amendable date, all base rates will be increased by two (2) percent for all employees effective on the first day of the first pay period following July 1, 2012.