Source: www.unitedafa.org

Ladies and Gentlemen:

Before we entered Expedited Mediation we found ourselves at a crossroads in our Negotiations and ready to embark on an innovative process to reach a new Contract. Our objective of negotiating a new Agreement as soon as possible, modeled upon the National Mediation Board's Expedited Mediation Program resulted in a Tentative Agreement that provides for a front loaded immediate 10% pay scale increase. Combined with annual wage increases, that translates into a 15% to 18% increase in wage rates over the duration. By the second year of this Tentative Agreement our per diem increases between 30% to 43%. We have negotiated a $60,000 maximum Early Out Program scheduled to go into effect August 31, 2012 that is good for those who choose to leave, and good for those who choose to stay as it importantly provides upward mobility through an otherwise stagnant seniority list. And of course, this Tentative Agreement is front loaded with a $5,000 Signing Bonus.

This Tentative Agreement addresses the collective priorities you expressed to our Negotiating Committee and provides much needed relief to our community who have been working under a bankruptcy-imposed Contract. This Agreement provides immediate improvements in compensation, transformational improvements for Reserves, and enhancements to our Schedule Flexibility, Job Security and Quality of Life.

As everyone is aware, wages of all United Airlines labor groups, including Flight Attendants have lagged behind industry standards, as a direct result of bankruptcy Contracts. It is also commonly recognized that our Flight Attendant benefits and work rules are superior to those of other similarly situated workers. It was our job in the final stages of Expedited Mediation to ensure, as per your mandate, to protect and enhance our terms of employment while pushing management beyond what they were prepared to put on the table with regard to the economic components of a new Agreement. This Tentative Agreement accomplishes that delicate balance, the smart way, centered on our steadfast position that Flight Attendants will not pay for their raises or Signing Bonus by trading off other provisions of our Contract before promptly moving on to the next round of negotiations. We have been forced to work at wages resulting from bankruptcy for too long and while we cannot recover the time we worked under that concessionary Agreement, we now have an opportunity to move forward. This Tentative Agreement significantly improves our pay and work rules, puts money in our pocket sooner rather than later and provides a higher platform to begin Single Contract Negotiations.

When we started Negotiations our goal was to reach an Agreement by our amendable date. When that date came and went it became our priority to work towards negotiating retro pay back to that amendable date; and this remained our goal throughout our direct negotiations, Federal Mediation and in Expedited Mediation. From day one of our negotiations, including Expedited Mediation, it was abundantly clear that both parties (AFA and United) held diametrically opposed positions as it relates to the retroactive application of the economic provisions arising from a new Agreement. Flight Attendants had asserted the expectation that the economic improvements arising from a new Contract would apply effective with the amendable date of our current Agreement.

During the final hours when it became clear that management was not interested in negotiating retro but offered an extremely small signing bonus, we weighed the options - continue trying to get retro and have no Tentative Agreement to present for your consideration or work on increasing the initially proposed Signing Bonus. We reflected on Members comments of their need for money now.

With this as our motivation, and management willing to negotiate a Signing Bonus, we focused on increasing the initially proposed smaller bonus, without paying for it by selling off other provisions. Since management insisted on a Signing Bonus, our job was to make sure that bonus was as large as possible without paying for it ourselves. We were successful in getting the Signing bonus up to $5,000 from the smaller amount the company had initially proposed.

A Signing Bonus is not a new concept, and while it may be unpopular, it is the standard in many negotiations, unless of course a work group is willing to settle for a small incremental pay raise so as to claim the false victory of achieving “retro.” For example, it’s easy to achieve retro with a 2.5% wage increase, however that course of action is self-defeating, and we demanded that this Agreement include significant compensation improvements up front and immediately.

Straight up and to the point: the Signing Bonus provides an upfront payment for Flight Attendants upon ratification of this Tentative Agreement. A complete overview of the economic elements of this Agreement can be found on our website at the following link. http://www.unitedafa.org/contract/negotiations/tentative/economic-improvements/

So let’s put this issue to rest and look forward and not back; the front-loaded approach in compensation is a smart approach to take a step forward to the next round of negotiations. Together we must continue to confront a management team committed to convince us we should give up our industry leading work rules, pay protections, healthcare, scheduling flexibility, hotel standards and job protections to pay for our wages. In Expedited Mediation we successfully maintained, and on Flight Attendant terms, improved these important elements of our Contract. If we ratify this Tentative Agreement, we almost immediately begin preparations for another opportunity to further improve our Flight Attendant careers.

Keep in mind that if this Agreement is ratified, United Airlines is obligated to begin preparations for Single Contract negotiations no later than 60 days following ratification. The ultimate decision on our future rests in your hands. Soon you will have an opportunity to vote on this Tentative Agreement and we only ask that you do so with all of the information needed to make an informed decision. 

This Tentative Agreement creates a platform to move forward to Single Contract Negotiations, as we remain resolute in creating opportunities arising from the merger and moving forward to a new United Airlines. Information about the process, explanatory documents, the Tentative Agreement with all changes to our Contract language, is being sent to all Flight Attendants' homes and is currently available on our website. For further information, please be sure to attend an upcoming Roadshow, talk with your elected Local Leadership and be sure to cast your vote.

In Solidarity,

Greg Davidowitch, President
United Master Executive Council