AFA Retiree E-News, Your E-mail Source
for Union Information
June 10, 2004
Association of Flight Attendants at United Airlines
IN THIS EDITION:
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1. UAL Retirees OK New Benefits -- Press Release
2. MEC President Letter: June 10, 2004
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IMPORTANT:
The Hearings that were scheduled concerning United's 1114 Motion for June 11 -
17, 2004 have been cancelled due to the Agreement reached.
1. UAL Retirees OK New Benefits -- Press Release
Date: June 10, 2004
Contact: Joseph Tiberi, IAMAW 301-529-9341 (cell)
Contact: Dawn Deeks, AFA 202-712-9799 ext. 804
CHICAGO - The United Airlines Retiree Coalition today announced an agreement
with United Airlines that provides insurance benefit modifications for
50,000 of the bankrupt airline's retirees, their spouses and dependants.
"Our top priority was to come to an agreement that protects the well-being
of thousands of committed employees who have devoted their careers to making
United Airlines a success," said Association of Flight Attendants United
Master Executive Council President Greg Davidowitch. "The retiree coalition
banded together during our airline's most difficult time in history to
formulate an innovative plan that addresses the company's financial need and
minimizes the impact on our dedicated retirees."
With this agreement, all United employee groups, both active and retired,
will take part in the company's restructuring. Full details of the agreement
will be released upon formal submission of the accord to the bankruptcy
court for approval.
"This agreement balances the company's need to remain competitive while
acknowledging the fixed income of retirees," said IAM District 141 President
Randy Canale. "The substantial resources of several AFL-CIO unions and
dedicated retiree representatives working together made this fair and
equitable agreement possible."
The Coalition is comprised of the International Association of Machinists &
Aerospace Workers (IAM), Association of Flight Attendants (AFA),
Professional Airline Flight Control Association (PAFCA), Transport Workers
Union (TWU), International Federation of Professional & Technical Engineers
(IFPTE), Pilots Section 1114 Committee and Salaried & Management Section
1114 Committee.
More information will be available on the web sites of IAM District 141,
www.iam141.org, the Retired United Airlines
Employee Association,
www.ruaea.org, and the PAFCA,
www.pafca-ual.com. More than 46,000
Flight
Attendants, including the 21,000 flight attendants at United, join together
to form AFA, the world's largest flight attendant union. AFA is part of the
700,000 member strong Communications Workers of America, AFL-CIO. Visit us
at www.unitedafa.org.
2. MEC President Letter
June 10, 2004
Ladies and Gentlemen:
Late yesterday, AFA and all other Authorized Representatives of United
Airlines retirees, with the exception of AMFA, reached an agreement with
United Airlines on modification to Retiree Health Care and Life Insurance
Benefits. This agreement preserves affordable health care for our retired
flying partners and is markedly different than the approach proffered by
United Airlines in their proposals and their 1114 motion filed in bankruptcy
court on May 21, 2004. The agreement, if approved by the bankruptcy court,
will become effective September 1, 2004 and while it protects Retirement
Health Care Benefits, it also ends months of acrimony between United
Airlines and its retirees.
United Airlines will seek approval of the agreement by the bankruptcy court
on Monday. Details will follow next week following a ruling from Judge
Wedoff. Hearings that were scheduled to begin on Friday and continue next
week on the 1114 motion have been cancelled pending a decision on the
agreement from the bankruptcy court.
Summary of Retiree Health Care and Life Insurance Benefits Agreement
* Effective September 1, 2004;
* Each Retiree continues to pay monthly contributions for medical benefits;
* Each Retiree will be responsible for payment of an additional surcharge
per month, per person, with a maximum of 2 persons (including retiree,
spouse, domestic partner, and surviving spouse, but not dependant children);
* Pre-Medicare surcharges begin at $22.00 per year in 2004, and increase by
$10 through the period of 2010, culminating at $32.23 per month;
* Post-Medicare surcharges begin at $16 per month, per person, as outlined
above, and ending at $23.44 in the year 2010;
* Retiree surcharge is established by a separate schedule for both pre and
post Medicare coverage for the period 2004-2010;
* Beginning in 2011 surcharges are limited to a 4.5 % increase annually;
* Retirees will have their life insurance benefits terminate effective
January 1, 2005;
* Retiree Pre-Medicare PPO Health Coverage, In-network;
* Annual deductibles of $250 single/$500 family
* 80/20 co-insurance responsibility
* $1,500 single/$3,000 family out-of-pocket limit, including deductibles;
* Unlimited lifetime maximum
* Mail order prescription drug co-pay for 90 day supply, $48 for brand
medication and $16 for generic medication (co-payments fixed with no annual
increase)
* Maintenance of Benefits for employees with other group coverage rather
than Coordination of Benefits
HMO options as appropriate, retiree contribution will be cost of HMO option
less the company contribution to the cost of the PPO option
* Post-Medicare Retiree;
*Currently covered by post-Medicare or those who satisfy eligibility
requirements offered one or more supplemental plans to Medicare
*Mail order prescription drug co-payment for 90-day supply of $16 for
generic brand and $48 for brand medications (co-payments fixed with no
annual increase)
*Retail purchased medications, retirees pay 10% for generic medications
and 30% for name brand medications
*HMO options as appropriate, retiree contribution will be cost of HMO
option less the company contribution to the cost of the PPO option
Without a doubt, much of our success may be attributed to the solidarity of
our retirees and the Retiree Coalition whose strength and conviction focused
our efforts; the task of bargaining with management individually would have
proven much more costly to all retirees. Our coalition held firm and this is
what made the difference. While any concession to our retired flying
partners is a difficult decision, the resulting outcome of our negotiations
with management is far preferable to having a third party decide the fate of
our colleagues.
I would like to extend my thanks to Charlie Costello, Sue Liebling and
Martha Casne, our Retiree Committee; as well as our financial and legal
advisors. Their hard work and dedication provided an agreement that ensures
our retirees maintain affordable health care benefits, that otherwise would
not have been possible. Our negotiations have been arduous and are a
testament to the actions and solidarity of both active and retired Flight
Attendants. The strength and conviction of all involved enabled us to
overcome daunting obstacles. Most importantly, we must recognize that our
efforts at the onset of the 1114 Campaign, and the aggressive actions we
undertook to protect retiree benefits set the stage for a more positive
conclusion to these negotiations.
The Retiree Coalition consists of the authorized representatives from the
Association of Flight Attendants-CWA, AFL-CIO, International Association of
Machinists and Aerospace Workers, AFL-CIO, International Federation of
Professional and Technical Engineers ("IFPTE"), Pilot Section 1114
Committee, Professional Airline Flight Control Association, Transport
Workers Union of America, AFL-CIO, and Salaried and Management Section 1114
Committee.
In Solidarity,
Greg Davidowitch, President
United Master Executive Council
***END***
AFA Retiree E-news is an e-mail news publication for retired United Airlines
Flight Attendants.
The AFA MEC Communication Committee produced this newsletter.
From: united.news@united.com
[mailto:united.news@united.com]
> Sent: Thursday, June 10, 2004 1:12 PM
> To: united.news@united.com;
united.news@ual.com
> Subject: Special NewsReal - June 10, 2004
>
> Today's Special News:
> 1. United Reaches Agreement with All Retirees Regarding Medical Benefits
> * United announced today that it has reached an agreement with a coalition
representing the remaining retirees regarding modifications to retiree
medical and life insurance benefits.
> * This agreement, combined with the agreement previously announced in May
with the Aircraft Mechanics Fraternal Association (AMFA), will deliver cash
savings to the company of more than 300 million dollars through 2010.
>
> ---------------------------------------------------
> United Reaches Agreement with All Retirees Regarding Medical Benefits
> ----------------------------------------------------
> United announced today that it has reached an agreement with a coalition
representing the remaining retirees regarding modifications to retiree
medical and life insurance benefits. This agreement, combined with the
agreement previously announced in May with the Aircraft Mechanics Fraternal
Association (AMFA), will deliver cash savings to the company of more than
300 million dollars through 2010.
> Executive Vice President and Chief Operating Officer Pete McDonald says,
"As part of our efforts to reorganize successfully and be competitive for
the longer term, we needed to address our retiree medical benefits."
> He adds, "The agreements with all our retirees contribute to achieving the
durable savings that we need while recognizing the concerns of retirees
expressed by their representatives. We appreciate the hard work of the
retirees' authorized representatives in helping us to achieve these
important savings."
> The coalition includes the Association of Flight Attendants (AFA), the
International Association of Machinists and Aerospace Workers (IAM), the
International Federation of Professional and Technical Engineers (IFPTE),
the Professional Airline Flight Control Association (PAFCA), the Transport
Workers Union (TWU), as well as authorized representatives of the retired
pilots and the retired salaried and management employees.
> The Company will file a motion with the Bankruptcy Court on Monday seeking
approval of this agreement to modify retiree medical and life insurance
benefits.
> For background on this issue, see the Jan. 14 Special edition of NewsReal.
> ----------------------------------------------------
> *** Away from work? Call in for NewsReal.***
> Dial 800-EYE-ON-UA, Unitel EYE-ON-UA (393-6682),
> or 847-952-1122.
> NewsReal also is available on SkyNet,
> United's Intranet (from a UAL desktop at
> http://skynet.ual.com or via the Internet
at
> http://united.intranet.ual.com).
> ----------------------------------------------------
> Lisa Perkins - WHQPR Unitel 700-6820
> ----------------------------------------------------