As you may have heard, AFA received a written decision of the Wage Arbitration Panel, thus ending the first phase of the 2002 Wage Arbitration Process.  We have been awarded $48 million for the year 2002---which has been calculated by AFA to equal approximately a 7.5% wage increase, retroactive to April 1.  The Wage Arbitration Panel consisted of a neutral arbitrator, a company representative and a Union representative.

According to AFA, "Unlike other negotiations, the $48 million cannot be changed in the second phase of the Wage Arbitration process.  The $48 million has been determined through binding arbitration as the amount owed the UAL Flight Attendants."

In other words, this $48 million isn't a gift, Christmas bonus, a GO TEAM GO! incentive payout, or a warm May flowers in the sunshine loving springtime feelings present.  Rather, this particular financial award was decided by the Wage Arbitration Panel because, as AFA indicates, UAL Flight Attendants lag behind the average compensation of Flight Attendants at United’s major competitors by $48 million.

In fact, in a recent AFA Press Release, AFA United MEC President-Elect Greg Davidowitch acknowledged, “We still are not at the same top-of-the-industry-plus level of compensation as the rest of the employees at United.”

Other points to remember about this wage arbitration decision:

• Part Two of the Wage Arbitration Process commenced on Monday June 3 with negotiations between United and AFA representatives to discuss wage rate increases.   Unlike other negotiations, the $48 million amount cannot be changed in the second phase of the Wage Arbitration process.  The $48 million has been determined through binding arbitration as the amount owed the UAL Flight Attendants.
• Concessionary talks are not a part of the Wage Arbitration negotiations.  According to AFA's announcement, there are currently no concessionary discussions between AFA and UAL management.
• Our Flight Attendant Contract requires the entire process to be completed by July 1.  Thus, according to AFA, "we should expect to see the pay rate increases very soon."