APFA Hotline – Bankruptcy Exit and our Merger!, Equity Questions, Fast Track to a Contract, Comparison Misinformation, BOS-I Vice Chair WTS
December 5, 2013
FINALLY – AA’S BANKRUPTCY EXIT AND OUR MERGER WITH US AIRWAYS!
Monday morning, all Flight Attendants at the new American are invited to attend the ceremonial bell ringing to celebrate the introduction of the new American Airlines on the NASDAQ Global Select Market (ticker symbol AAL). The event will take place at DFW Airport in AA’s Hangar 2. Doug Parker, our new CEO will do the honors. Please wear your uniform. Transportation is provided and details are as follows:
DFW Terminal C – Arrivals area (upper level), Gate C2
DFW Terminal D – Arrivals area (upper level), Gate D30
GSW – parking lot outside of SRO
HDQ 1&2 – roadway in between the two parking garages
Buses will leave at 7:00 a.m. sharp from all locations!
Many of us who have been working here for decades will remember what it was like to fly for the best, most recognizable airline in the world. And for those who don’t remember, you are in for a treat!
EQUITY CLAIM QUESTIONS?
APFA’s negotiated equity will see its initial payout to APFA members next week. Never before has a Flight Attendant workgroup emerged from bankruptcy with such a valuable equity claim. This past Monday, American announced the total number of shares of common stock the New American will issue. Based on their statement and an analysis performed by Jefferies, APFA’s financial advisors, it is estimated that APFA will receive approximately nine (9) to eleven (11) million shares assuming that U.S. Airways current stock price holds steady over the 120-day distribution period.
As a reminder, the total number of shares to be distributed to labor (including APFA) is determined over a 120 day period. Therefore, we won’t know the total number of shares (and the related value) provided to labor until the end of the 120 day period. The company intends to provide an initial stock distribution to labor on or shortly after the effective date of the merger (expected to be December 9th) and will make additional distributions over the 120 day period depending on how new American’s share price performs.
By the end of this period, labor (including APFA) will receive 23.6% of what American’s creditors receive. This percentage is fixed and will not fluctuate. However, while labor’s recovery is capped at 23.6%, what that percentage is worth depends on what the creditors receive. Put simply, 23.6% of a larger number is more than 23.6% of a smaller number. The creditors’ recovery can fluctuate based on New American’s share price levels over the 120 day period.
For additional information on the process, please refer to the Company’s overview on Jetnet.
Based on U.S. Airways’ current stock price, the implied equity value of New American would be approximately $16.5 billion. If the stock price of New American remains steady over the 120-day distribution period, it is anticipated that approximately half of the distribution to APFA will take place on the first date of trading with the remainder of the distribution on the 120th day. To the extent there are material variations in the trading price of the New American stock over the 120 day distribution period, please refer to the company’s examples on Jetnet. It is important to remember that whatever may happen to the stock price, at the end of the 120 day distribution period labor will have received 23.6% of the creditors’ recovery.
Jetnet Help Page
APFA’s Equity Page
APFA is the only union that will have a call center open for two weeks beginning on Monday, December 9th. That number will be made available when appropriate.
Next week, we leave behind the LBFO once and for all and begin implementation of our new CLA. As you know, APFA bargained with US Airways management to get us out from under bankruptcy terms with the CLA immediately following a merger. Realizing improvements to a bankruptcy contract on emergence from chapter 11 is unprecedented. So, too, is the clear and direct path to an industry-leading contract which will be achieved mere months after the NMB certifies APFA as the representative of all Flight Attendants at the new American. No workgroup at any airline in history has achieved such a result. Period. It is truly an incredible time to be a Flight Attendant at American.
We have two paths before us. One is a clear and direct path to an industry-leading contract. APFA negotiators have been preparing for months along with our team of professionals. There is much work to do alongside our new coworkers from US Airways to prepare openers based on the best of both existing contracts and we are already hard at work.
The alternative path is long, drawn-out negotiations that could take many years. Fortunately, we will only be subjected to this pain if AFA-CWA is successful in getting APFA members to sign authorization cards. If AFA-CWA is able to convince 4,000 APFA members that they should throw away a deal that achieves an industry-leading contract almost immediately, then they will force a representation election. AFA-CWA walked away from an agreement that put Flight Attendants first and offered a smooth transition for everyone. Further, AFA-CWA’s so-called “mobilizers” have already begun carding our membership at airports, on the aircraft, and at their homes.
HOW CAN I KEEP US ON THE PATH TOWARD AN INDUSTRY-LEADING CONTRACT?
1. Politely refuse any attempt by an AFA-CWA representative to get you to sign a card. You may find these representatives in the terminal, at your layover hotel, traveling on your flights, in Operations or even at crew-frequented restaurants, coffee shops, or neighborhoods. They are experienced in misrepresenting facts, distorting the truth, and concealing their intentions. They will try to convince you that they have your best interest in mind. They do not. If you or a colleague is being harassed, intimidated, or threatened, report the incident to local base leadership immediately.
2. If you signed a card and now want to rescind it, perhaps because you were misled, send an email to email@example.com.
3. Talk to your fellow crew members and explain what it really means to sign a card for AFA-CWA.
CONTRACT COMPARISON MISINFORMATION?
It has been reported that the US Airways-AFA contract is more valuable than the APFA Conditional Labor Agreement. In fact, our CLA’s wage structure, even coming out of bankruptcy, is worth $17 million more annually than that of US Airways’ Flight Attendants. To be clear, if we were to adopt the rates of pay of US Airways Flight Attendants, our work group would lose more than $17 million every year. Additionally, our 401(k) contribution rate is worth $39 million more than US Airways. Again, if we were to accept the same company contributions to our retirement plans that US Airways Flight Attendants receive, we would lose out on $39 million every year. For more information on the differences at AFA-CWA, watch this short video by Steven Baumert, APFA Executive Committee member. https://www.youtube.com/watch?v=JvpEXgOPBU0
BOS-I Vice Chair Willingness to Serve
As we announced last week, the National Ballot Committee would like to advise all Flight Attendants based at BOS-I that due to a vacancy in the Vice Chairperson position, a Willingness-to-Serve notification will be posted on Friday, December 9, 2013. Interested Flight Attendants should return the completed Willingness-to-Serve Notification to the address located on the bottom of the form by 1000 CT, January 8, 2014. If you have any questions, please feel free to contact us at 817-540-0108 x8311 or by email at firstname.lastname@example.org.
AmericanAirlines + US Airways
“On Our Way”
APFA National Communications Coordinator