Q & A
Questions and Answers 45 - 46
Question 45: With the threat of “headcount reductions” looming at Northwest and Delta, how will that affect the next representation election? Can furloughed flight attendants vote? Can new hires on probation?
Answer: The National Mediation Board representation manual (Section 9) lists both furloughees and new hires on probation as eligible.
When Delta flight attendants voted in their first representation election, Delta management provided the National Mediation Board with a list of “eligible” employees. AFA-CWA disputes Delta’s numbers, saying Delta inflated the list, knowing that a successful election would require a majority of all eligible voters to cast a ballot, as opposed to a majority of those voting, as in other democratic elections.
Many Delta flight attendants on this list were on extended furlough and were without a reasonable expectation of returning to work, which is required in the NMB’s representation manual to meet eligibility. Delta Air Lines has given no indication that these flight attendants will ever return to work: since Delta flight attendants have no contract – and no protective furlough language – they cannot possibly have any “reasonable expectation” of returning to work – and Delta management knows that. Their names were included to make it difficult for AFA-CWA activists to locate them and harder still to reach the 50% + 1 mandate.
New hires on probation are eligible to vote if they have actually performed flight attendant duties before the eligibility cut-off date set by the NMB for a representation election.
You can see how important it is that everyone who is eligible cast a ballot in the combined representation election. Those seeking representation are at a disadvantage right out of the box at the NMB, since not voting is counted as a “no” vote. Without complete participation, we stand to lose our union, our contract and our collective bargaining rights in the next election.
Think the election process doesn’t sound fair? Want to take a first, big step toward making representation and a voice at work easier for all Americans? Join the Million-Member Mobilization for the Employee Free Choice Act, sponsored by CWA. Click here to sign your name to the petition. With your help, CWA will present the new president and Congress with 1 million signatures urging them to enact the Employee Free Choice Act!
Question 46: I have a scheduling grievance filed with my local rep. When we voted for AFA-CWA in our last representation election, the union took on hundreds of pending cases for the members. If we lost our union in a Delta merger, what would happen to outstanding grievances?
Answer: When AFA-CWA became our collective bargaining agent, all outstanding grievances were transferred to our new union. Since that time, hundreds of grievances have been settled and many flight attendants have returned to work after successful grievance arbitrations. Our MEC Grievance Committee continues work on the daily data collection and evidence gathering for grievances so our flight attendants are fairly represented as provided for in our contract.
Without union representation, outstanding grievances, which are filed under the contract, become null and void, just as our contract would be eliminated on the day we lose our union if we are not successful in the combined election. Pursuing a dispute against the surviving management for unjust discipline, a seniority violation in a scheduling issue, or non-payment of wages in a payroll dispute, would become the sole responsibility of the individual flight attendant without a union or a contract, and would be based on Delta’s unilateral internal procedures, if any, that might apply. For most disputes, there will be no remedy under Delta procedures or the law, because most of the rights we enjoy are strictly a product of our contract.
It’s important to remember, everything we take for granted today – from grievances, to scheduling rules, to our representation and contract rights – would be ripped away from us if we don’t participate in the representation vote for the merged flight attendant group. Complacency can have a real impact on our work lives. We all must be certain to vote when the election occurs.
Posted by Communications Chair on 07/14 at 12:14 PMQuestions and Answers 43 - 44
Question 43: The National Mediation Board determined that 13,380 Delta flight attendants were eligible to vote in the May 28 representation election. How do we know Delta’s roster is accurate if there’s no seniority list on record?
Answer: AFA activists and organizers spent hundreds of hours working through the list of Delta flight attendants during their recent organizing campaign. We checked and re-checked the names on the list, and updated our records as we learned of any changes. It’s hard work when there’s no published seniority list, but the activists went through the list name by name to verify it. In the end, it was highly accurate.
Question 44: ALPA has signed a tentative agreement between Delta Air Lines and pilots at both Delta and Northwest. Where does that leave other unions, like IAM and AFA-CWA, who have still not been included in merger talks with Delta or Northwest management?
Answer: Delta has made no effort to include other unions in talks because it has no intention of having any union but ALPA on its property post-merger.
Delta Air Lines executives will be the controlling management team at a merged carrier. They have spent almost as much time and money convincing the traveling public, elected officials and federal regulators that a merger is in everyone’s best interest as they have stifling the very employees they purport to protect when combining Northwest’s and Delta’s operations.
It’s obvious that Delta management sees not only the financial benefit of coming to a combined contract agreement with ALPA pilots before a merger, but sees the potential public—and investor—relations bump in reaching a deal before Department of Justice approval. What is not obvious to many observers is that Delta is working full-bore behind the scenes to prevent its flight attendants, ground staff and other workgroups from having a seat at the bargaining table and a voice in their future at the “new Delta.”
There are about 12,000 pilots covered by the joint tentative agreement. By refusing to engage over 20,000 flight attendants in plans for the future of the “new global airline,” Delta CEO Richard Anderson is still a world away from his Congressional testimony that a merger will “provide opportunities for our people to benefit from our planned growth and future success.”
Delta’s own press release following the announcement of a tentative ALPA agreement quoted Anderson as saying, “Achieving a joint contract and combined seniority list in advance of the closing of the merger is something that has never been done in this industry and is a testament to the leadership of ALPA and a working together culture.” Delta management must be made to recognize that it is promoting a culture of exclusion in the Delta family at this critical juncture, jeopardizing the potential for a healthy “direct relationship” among all employees in this merger.
Our MEC and AFA-CWA attorneys continue to pressure Northwest and Delta management to acknowledge and enrich the “working together culture” that has existed between flight attendants and Northwest executives for over sixty years – a relationship between union represented employees and management that has advanced our profession, helped set industry standards, provided job protections and benefits for frontline workers and made Northwest Airlines the suitable merger partner it is considered today.
We encourage every Northwest flight attendant to write to Richard Anderson and Joanne Smith at Delta, and Doug Steenland and Julie Showers at Northwest at the addresses below. Ask them why they don’t want to promote dialogue between management and the workforce, nor to include flight attendants – an integral part of the frontline family – in merger discussions:
Richard –
Joanne –
Doug –
Julie –
Questions and Answers 41 - 42
Question 41: I got a postcard in the mail that described Delta’s heinous sick leave policy. They get just 42 hours a year! And they can’t bank more than 84 hours over two years. What will Northwest do to protect the 1,000 sick hours I have banked if this merger is approved? And what about other benefits like vacation time, pensions and my health insurance? What happens to those in a merger?
Answer: Our MEC President has approached Northwest Labor Relations several times on these subjects. In what has become a convenient response to most questions posed to management lately, AFA-CWA is being told that Northwest does not have the authority to make any decisions on issues like these, since Delta is now holding the proverbial purse strings. While our MEC will continue to push Northwest management for answers to merger questions like those you pose, we will only be able to negotiate benefits like retirement plan improvements, better health insurance, livable sick leave language and increased vacation days if we maintain union representation at a combined carrier.
If we were to find ourselves without a union and unable to negotiate a combined contract at a merged carrier—including grandfathering or settlement language for something like accrued sick leave—the investment you’ve made in your future, in your health, all of that sick leave bank, will be subject to the surviving management’s executive decision. We would be unable to use these banked hours as leverage of any kind in merger negotiations if we don’t have a union, nor would we be able to craft language that would bring Delta’s policy up to industry standard like our 1,200-hour maximum sick leave accrual. Only with the protection of collective bargaining rights in a merger will we be able to negotiate better working conditions.
The sick leave issue really is a $39,000 question.
Sick time is important to Northwest flight attendants&nmdash;so much so that during contract negotiations, we fought to restore sick credit accrual totals to pre-"white book” numbers, improving the language in Section 15 (Sick Leave) to reflect voter disapproval with TA1’s 850-hour maximum. Some flight attendants have over 1,000 hours accrued because they are lucky enough not to have had to use this benefit. At the top pay step of over $39/hour, that’s worth more than $39K for some flight attendants! In order to protect this valuable benefit, we need to retain our union in a merger by winning a representation election of the combined group of flight attendants.
As for health insurance benefits, our contractually negotiated plan lists specific coverages with BlueCross BlueShield, while Delta employees use UnitedHealth. Any changes or improvements to health care coverage would depend on our ability to negotiate after a merger. If we can’t negotiate, again management will be free to alter its policy at any time without flight attendant input or consent.
Our pensions are protected in a merger. (For detailed answers to previously asked pension questions, please refer to the Q&A page of our website, nwaafa.org.) They are not subject to the Social Security offset that Delta’s plan participants have. What we could do – if we retain our representation in a merger – is negotiate a new combined plan with increased employer contributions for the merged group. Without a union, management may make changes to a defined contribution plan whenever it deems such changes necessary.
The answer to the benefits question you’ve asked is that, without union representation, every benefit – from health insurance to employer 401(k) contributions to sick leave – will be subject to change without notice. Only with the protections of a contract can we have any say in our future in a merger with Delta Air Lines.
Question 42: What ever happened to the “me-too” grievance that was filed after the pilots started getting overtime pay last summer? Would we lose the right to arbitrate that grievance if we lose our union?
Answer: We’ve attempted to negotiate a resolution to this issue, but those talks went nowhere, so we’ve shifted our focus to the grievance. Northwest management is sticking by its position that the pilots’ pay increases were a “cost neutral” item, received post-bankruptcy because ALPA settled two outstanding grievances of equal value in exchange for overtime pay.
Both AFA-CWA and the IAM dispute management’s formula showing that ALPA did not receive “financial return” during the summer of 2007. A “me-too” grievance was filed by AFA-CWA (and more recently by the IAM), pursuant to Letter of Agreement 29 of our CBA (LOA 29—Conditions and Covenants) and in IAM’s current contract.
The AFA-CWA grievance will now go to arbitration – our MEC is not willing to accept the company’s settlement offers. In return for improvements to our contract, management suggested either outsourcing our international flying or reducing our rest on certain international patterns, two solutions it proffered during grievance hearings. That’s their idea of a “cost neutral” deal for us.
We believe the pilots received monetary value not offered all other work groups who were involved in the $1.126B bankruptcy labor concessions, and have calculated this benefit to be as much as $21M to $22M. We are prepared to pursue this grievance in arbitration, a right we have thanks to a ratified collective bargaining agreement. (We will update you on the arbitration schedule when it is known.) If we lose our contract in a merger because the combined group of flight attendants doesn’t choose union representation, we lose all rights in that contract, including LOA 29.
Posted by Communications Chair on 06/11 at 05:47 PMQuestions and Answers 39 - 40
Question 39: Over 5,300 Delta flight attendants voted in their representation election. Though they weren’t able to secure AFA-CWA representation this time around, of those votes, how many voted for AFA-CWA and how many voted against?
Answer: More than 99% of the 5,306 who cast ballots voted to join AFA-CWA.
The National Mediation Board (NMB) has constructed its balloting process to assume that everyone is voting “no” unless affirmatively casting a vote in favor of the union. Simply not voting is counted the same as a “no” vote. This is why Delta’s anti-union task force of managers and public relations contractors developed the “Give A Rip” campaign—by convincing individuals to forfeit their own, democratic right to be counted, each of those flight attendants would be, in essence, casting a “no” vote. Nobody actually voted against AFA-CWA because the NMB voting process does not allow for a “no” vote to be cast.
The NMB is doing the bidding of the current anti-worker administration, making it harder and harder for workers to exercise their constitutional right to organize by creating hurdles like this one in every representation election: the list of “eligible” employees at Delta included those on extended leave, still on furlough despite Delta’s recent hiring spree, even those in early-out programs. By artificially inflating the list, Delta and the NMB dramatically increased the number of ballots that had to be cast to earn union representation. Unlike true democratic elections, in which not voting does not actually reward one side or the other, these elections favor anti-union management by permitting a voter’s apathy to count as a “no” vote!
The Delta representation election has been a good, early lesson for Northwest flight attendants. When the NMB eventually calls another representation election for the combined Delta/Northwest workgroup (if a merger is approved by the Department of Justice), we have already seen firsthand that not voting works against our best interests. Not voting has the same effect as casting a vote against collective bargaining rights, against a legally binding contract, and against union representation. We cannot afford to let voter apathy determine our future in a merger. Each of us must cast a vote to maintain our seat at the table in consolidation.
Question 40: If this merger is approved by the DOJ, just when can we expect another union representation election? Will it be in three months, six months, a year?
Answer: When the two carriers operate as a “single transportation system” as defined under NMB rules, a vote will be triggered. The single transportation sytem designation initiates a union representation election if 35% of the combined workforce has either signed a valid authorization card seeking union representation—like those cards collected from Delta flight attendants—or is currently represented by a union. We will get “credit” for 100% of our Northwest flight attendant system seniority list toward this 35%, plus all valid cards at Delta. We will have enough to trigger a new election.
The NMB’s representation manual online lists several indicia of this single transportation system classification, not all of which must be met at once. With the pressure Northwest and Delta are putting on Congress and the Department of Justice to ram this merger through before the current administration leaves the White House, we could find ourselves voting later this year. We have to be ready and willing to cast a ballot to protect our rights in this merger.
If a majority of the combined group of approximately 22,000 does not vote for a union in that election, our contract and all provisions in it will be rendered null and void immediately. We will lose our union representation. We will lose our scope, furlough and transfer protections. If we lose our union, we lose the chance to negotiate an improved contract.
It’s not hard to imagine what management will do on the day we lose our seat at the bargaining table. Whatever executive management team is left standing will have eliminated the needle in its corporate moral compass. After the champagne fountain runs dry at the victory party, there will be nothing to stop executives from lowering the bar for all flight attendants in the industry by cutting jobs, benefits and pay, all while reaping the rewards of consolidation in their own negotiated compensation packages. Issues on which we have fought for years to hold the line—like outsourcing of our international flying—would suddenly be open to management’s whim.
It is our responsibility to each other and to our profession to prevent this scenario from happening and to further raise standards in commercial aviation by exercising our individual voting power in the next NMB election.
Posted by Communications Chair on 06/04 at 04:10 PMQuestions and Answers 37 - 38
Question 37: Now that there’s federal legislation regarding seniority list integration, how does that work if we have a union, or if we don’t? Don’t we end up with “date of hire” anyway?
Answer: The seniority merger legislation (H.R. 2764, SEC. 117. LABOR INTEGRATION – Omnibus Budget Bill) was adopted by Congress after an intensive lobbying effort by AFA-CWA, to provide a “floor” or minimum protection for seniority. Prior to this law there was no legal protection for seniority, which led to unfair results – like thousands of senior TWA flight attendants being stapled to the bottom of the seniority list at American.
If both work groups in a merger are represented by the same union, the law explicitly recognizes that the union’s merger policy has jurisdiction. So, if Delta flight attendants vote for AFA-CWA, or if we all vote to keep AFA at the time of the merger, then our full, current bidding seniority will be protected under AFA’s date-of-hire merger policy in our union’s Constitution and Bylaws (C&B). If both groups are not in the same union, or if both groups are unrepresented at the time of the merger, then the minimum protections of the new law kick in, and seniority would be integrated on the basis of a “fair and equitable” standard.
H.R. 2764 is based on Sections 3 and 13 of the Allegheny-Mohawk Labor Protective Provisions (LPPs). It doesn’t guarantee date-of-hire protection, but it does provide for final and binding arbitration if the two groups cannot agree on how to integrate the seniority lists. An arbitrator, independent of the company or the union, is selected from a list provided by the National Mediation Board and hears both sides of the seniority integration case. The law recognizes that if one or both groups is not represented by a union, they can still avail themselves of the arbitration process, but it would be at the group’s own expense.
While Delta executives are hinting that one group might get a better result under the omnibus system – instead of AFA’s date-of-hire policy – don’t fall for management’s propaganda. The US Airways pilots thought they would do better under a “fair and equitable” arbitration decision just like in the new legislation. But when their case was heard they actually ended up losing seniority. The seniority integration language in AFA’s Constitution and Bylaws is so much better. As the US Airways pilots are finding out, once an arbitrator issues a final and binding ruling, it’s next to impossible to do anything about it, even if seniority is unfairly taken away.
Question 38: Richard Anderson has given his word in front of Congress that there won’t be any involuntary layoffs of frontline employees. This is the same Richard Anderson who tried to outsource our jobs in the early ‘90s. What would prevent him from putting this plan into place again if we lose our union?
Answer: Delta and Northwest executives have been very careful when they have spoken about the impact of the merger on employees. They have avoided saying there will no involuntary layoffs; they have said they don’t anticipate any layoffs of frontline employees as a direct result of the merger. They leave themselves an out, saying that other factors like the rising cost of fuel could result in layoffs.
Mr. Anderson has likewise attempted to skirt the issue of outsourcing. For example, Delta recently published a piece attacking AFA for suggesting that outsourcing is a real threat, and claiming that Delta never outsources. The only problem with that statement? It is false. When Delta acquired Pan Am it also acquired Pan Am’s foreign national flight attendants. There were foreign nationals based in Tel Aviv, Warsaw, New Delhi and Mumbai. In fact, the Mumbai flight attendants were the last to go after U.S.-based Delta crews began non-stop flights from NYC to BOM.
To say that Delta does not outsource international flying is not true. Delta is simply not outsourcing international flying at this time. And, of course, many of the Northwest executives who fought us for the right to outsource our flying worked with or were hired by Mr. Anderson when he was here at Northwest. The only thing that will guarantee Delta does not outsource international flying is the same thing that prevented Northwest from doing it: a strong, enforceable union contract.
Posted by Communications Chair on 05/20 at 06:16 PMQuestions and Answers 34 - 36
Question 34: AFA-CWA is spending a lot of time and effort on the Delta representation campaign. What does Delta’s union representation vote have to do with me?
Answer: Having Delta’s flight attendants represented by our union before a merger is complete is our first line of defense in protecting our contract. If we come into a merger as a union-represented workforce, with both groups of flight attendants represented by AFA-CWA, it will be one less hurdle towards our goal of an improved contract. Also, with an already established seniority integration policy (per AFA-CWA’s Constitution and Bylaws), we can avoid the division in our group that merging operations has caused in past consolidations.
For two perspectives on how it is in our own best interest to help Delta gain the protections of a legally binding contract, please read the letters from Ana Rasmussen, Los Angeles-based Council 98 flight attendant, who recently returned from Atlanta where she spent a few days voluteering at the Get Out The Vote efforts there; and from Janette Rook, MEC Vice President, who is on her way to Atlanta this afternoon.
Question 35: If AFA-CWA wins the representation election at Delta on May 28, how exactly do workrules in a combined contract get hammered out for the group?
Answer: AFA leaders at each airline appoint a merger negotiating committee with equal representation from both groups. Working with a professional negotiator and other consultants and staff, this committee meets with company negotiators to begin negotiations for one contract covering the combined workforce. This process typically starts with a transition agreement that spells out how airline operations will be handled in the interim, while the new contract is being negotiated. At Northwest, we already have contract provisions that will apply to that interim period, for example a “fence"provision that will keep the operations separate until the merged agreement is in place.
A separate seniority integration committee, again with representatives from both groups, will simultaneously initiate the seniority integration process under AFA’s Constitution and Bylaws (protecting our full, current bidding seniority). By policy, once the seniority list is merged, AFA does not turn that list over to management until there is agreement on a contract. In this way the ability to implement the merged seniority list serves as an incentive for management to keep contract negotiations moving because executives cannot realize the full value of the merger until we allow them to implement the merged list.
Negotiations in a merger proceed much like any other negotiations. What’s unique about merger negotiations is that we have an opportunity to try to achieve the best of both worlds while negotiating the combined contract. It’s not a question of which group has it better as a starting point; the goal of merger negotiations is to combine the best things from each group – pay, benefits, work rules – and win improvements that will produce a tentative agreement the members can approve.
Once a tentative agreement is reached, it first goes to the MEC for approval and then to the members of the combined workforce for a democratic ratification vote.
Question 36: Who will negotiate that new contract and is there some kind of law that says the controlling management has to bargain expeditiously? It seems like this could go on for years, as it has at US Airways/America West.
Answer: As discussed above, if our union wins the representation election at Delta, the flight attendants will be represented in merger negotiations by a committee selected by the union leadership at both airlines. The company will be represented by the management of the merged or surviving airline (Delta management in this case). There is no particular legal requirement for expeditious negotiations, but some transition agreements spell out an expedited schedule for merger negotiations. If management – motivated by the need to obtain the full revenue and cost advantages of a merged operation – is willing to work with us on the improvements we need, the process could go quickly and smoothly.
Of course, it’s important to note that we only get the opportunity to negotiate improvements and the details of how a merger will affect us if we win the election at Delta. If our union does not win this representation election, and does not win the election that would then be held at the time of the merger, then there will be no negotiations. Our contract and our union representation will end immediately if we lose that second election. After that, Delta executives would be free to change our pay, benefits and work rules any way they might wish.
Posted by Communications Chair on 05/15 at 05:22 AMQuestions and Answers 32 - 33
Question 32: Aren’t Richard Anderson and Delta management interfering in a union representation election and isn’t that illegal?
Answer: Attached to this email are photos taken at Delta’s Inflight offices. You can see from these pictures there is nothing “neutral” about the way Delta management is treating this representation election—executives are singularly driven to prevent our union from becoming a part of the merger process, from having a voice at the bargaining table, from fighting for job protections for both Delta and Northwest flight attendants.
The Representation Manual available online from the National Mediation Board does not list examples of what might constitute election interference or what would be supported by the Board as verifiable allegations of such interference. However, its “Frequently Asked Questions” webpage states, “[t]he NMB has found election interference where the carrier: conducts improper surveillance of employees; interrogates employees; discharges or disciplines employees; confers benefits on employees, and; solicits or collects ballots.” According to the NMB manual, “[a]llegations of election interference must state a prima facie case that the laboratory conditions were tainted and must be supported by substantive evidence. Allegations of election interference not sufficiently supported by substantive evidence will be dismissed.”
AFA-CWA activists, including Delta and Northwest flight attendants participating in airport Visibility Campaigns across the country, have been collecting “substantive evidence” of election interference. This includes photographs of Delta management physically standing between flight attendants, preventing them from speaking to one another about the vote process, incidents of harassment by supervisors, outright lies told to flight attendants to mislead them about the right to vote, and not-so-subtle surveillance. Delta executives are pressuring Inflight supervisors to “win” this election by suppressing the vote. Some supervisors are handling that pressure better than others.
Delta executives clearly realize that if our union represents their flight attendants, too, it will mean a loss of control for Delta’s executives in executing this merger—why else would they fight so hard to keep the union out, even risking violating the Railway Labor Act to do so? They have never had to negotiate with flight attendants; with no union and no contract, all they have ever done is give orders and issue memos. Without AFA-CWA to contend with, they can maintain that oligarchic status quo.
NMB procedure provides for the election to continue as scheduled, with “allegations of election interference only [to be considered] after the tally, except in extraordinary circumstances.” If the NMB finds interference it can order a number of actions, including a rerun election. Rest assured that, no matter the outcome of the Delta representation election, we are prepared to exercise all measures available to us under the law to pursue remedies for management’s voter suppression tactics during this election.
Question 33: Why hasn’t the National Mediation Board issued a strong warning to Delta executives?
Answer: Under NMB procedures, most charges of election interference are not addressed until after the election is over, absent “extraordinary circumstances,” as cited above. With the NMB currently dominated by anti-labor appointees, the Board has taken an increasingly narrow view of “interference,” and of the rights of workers generally. Management conduct that had been considered election interference for decades is now overlooked or ignored by the current Board’s majority. Finding management conduct to constitute “extraordinary circumstances” is even less likely for a Board so committed to siding with airline management. Nevertheless, AFA-CWA attorneys will continue to press the NMB to address management’s voter suppression tactics for what they are: illegal interference.
Posted by Communications Chair on 05/06 at 06:14 PMQuestions and Answers 30 - 31
Question 30: There are rumors out there that we would have to reapply for our jobs with Delta, since this is what happened to the Pan Am flight attendants when Delta acquired them. Is this true?
Answer: There has been no indication that Delta has any plans to force Northwest flight attendants to re-apply for their jobs with Delta. The Pan Am deal was different in that Delta was only acquiring a small part of the former Pan Am operation. Here, Delta executives have stated publicly that they plan to merge the two operations, and have stated that they anticipate no involuntary layoffs for frontline employees. Having said that, if we lose the representation vote that’s taking place now at Delta, then the second vote that will take place if Delta flight attendants are still non-union when the merger is completed, we will immediately lose union representation: there will be no union and no contract to enforce.
Our best line of defense is to help the Delta flight attendants in their representation campaign, and to vote for the union if there’s a second election at the time of the merger. Offer to help Delta flight attendants in their fight to win representation for the first time in Delta history. Volunteer at a Get-Out-The-Vote call center during the Delta AFA-CWA representation election —it’s the easiest way to show our support, and winning this election is the best case scenario moving into this merger. Contact flight attendant activists for more information at:
Call centers are open in ATL, CVG, DCA, DFW, FLL, LAX, NYC and SLC. Visibility Campaigns ongoing in ATL, BOS, CVG, FLL, LAX, MCO, NYC and SLC.
Question 31: When we merge seniority lists with Delta, what happens if two classes started on the same day? How will the two individual classes be combined?
Answer: Seniority merger committees typically break such a tie by using birth dates. Our MEC is currently seeking merger representatives for the seniority integration process provided for in the AFA-CWA Constitution and Bylaws. Please visit our website (”Committees” page) for details. Letters of interest/résumés due by May 15.
Posted by Communications Chair on 04/28 at 05:54 PMQuestions and Answers 28 - 29
Question 28: Depending on who’s doing the talking, this deal with Delta is either a “merger” or an “acquisition.” Does it matter which term is used, as far as our scope language and seniority protections are concerned?
Answer: The words “merger” and “acquisition” can certainly evoke different reactions. One sounds more like a partnership, a marriage of equals, while the other seems to imply control, something dominated or owned. While our emotional reactions to these words are very real – especially when details of the proposed transaction remain guarded – no matter what management or the media call this deal, the reality is that job security, seniority rights and scope protections in Section 1 of our contract remain unaffected by semantics.
We have some of the strongest scope and successor language in the industry, the culmination of years of collective bargaining with union representatives determined to protect us in exactly a moment like this in airline history. Northwest management has always fought to dilute the protections we’ve gained in Section 1. Even in bankruptcy, though, we knew that allowing the Company to chip away at this language would only subject us to an uncertain future in a world of consolidation.
Our seniority protections in Section 1.E. (Labor Protective Provisions, or LPPs) are augmented by legislation in this year’s Omnibus appropriations bill which created a minimum standard of “fair and equitable” seniority integration in a merger. Even more important than that federal authority is the Seniority Merger Policy and Procedures in Section X of our AFA-CWA Constitution and Bylaws, which guarantees that when two AFA-CWA-represented carriers engage in any consolidation transaction, the full, current seniority of each flight attendant shall be protected.
Our contract, the new federal law and the AFA Constitution and Bylaws have all been drafted very broadly so that the protections apply whether the transaction is labeled a “merger,” or an “acquisition,” or something else. As a practical matter, we still have the same protections regardless of what the airline executives call this deal.
We realize that none of these practical protections will eliminate our natural reaction to the words “merger” and “acquisition”. Our emotional connection to our history as Northwest flight attendants and our perceived loss of that identity in the near future may cause many of us real anxiety. In the coming days and weeks, our EAP representatives will be providing helpful information and support as we begin this phase of our careers together with our peers at Delta.
Question 29: Is it true that Delta is interfering with the representation campaign and preventing AFA-CWA activists from speaking directly to other flight attendants at bases?
Answer: Voting in the Delta flight attendants’ representation election began today and, as expected, Delta management is continuing its years-long battle to prevent its employees from attaining power at the bargaining table.
Reports have come in from around the Delta system already this afternoon, citing subtle and not-so-subtle intimidation of flight attendant activists by Delta managers. From Boston to Los Angeles, AFA-CWA supporters at Delta have been harassed and threatened by Inflight management for attempting to answer election questions for colleagues, or for distributing information to others interested in union representation.
While this is no surprise to those of us who have any experience with the anti-union tactics at Delta, many Northwest flight attendants almost can’t imagine this kind of blatant violation of our right to organize. In fact, if management at Northwest were to attempt such intimidation against us for participating in our union, we have a contractual right to representation in our defense.
The Railway Labor Act (RLA) states, “No carrier, its officers, or agents shall deny or in any way question the right of its employees to join, organize, or assist in organizing the labor organization of their choice, and it shall be unlawful for any carrier to interfere in any way with the organization of its employees...” Twenty-six members of the U.S. Senate sent a letter to both Richard Anderson and Doug Steenland earlier this week, in anticipation of the Delta vote, urging neutrality in this election. Your union leaders at Northwest AFA-CWA and the Delta AFA-CWA Organizing Committee sent a similar letter to Anderson last week, two days after the merger announcement. You can add your name to this letter by linking here.
Tomorrow, April 24 at 10:30 a.m. EDT, AFA-CWA International Vice President Veda Shook will testify in front of the House Committee on the Judiciary at its Taskforce on Competition and Policy Antitrust Laws hearing, “Competition in the Airline Industry.” Veda will echo our MEC and LEC leaders in support of the right of our colleagues at Delta to finally attain representation without interference, and in recognizing the conditions that must be met for a merger to be successful for all airline employees.
Please visit the Government Hearings and Documents page of our website, nwaafa.org, and click on the webcast icon to watch this important hearing. Members of Congress will be able to ask questions of the participants, and will bring their recommendations to the Department of Justice before it issues a decision on the merger. A Senate hearing is scheduled for tomorrow as well, and written testimony will be provided from AFA-CWA to the Senate Subcommittee on Antitrust, Competition Policy and Consumer Rights on “An Examination of the Delta-Northwest Merger.”
Questions and Answers 26 - 27
Question 26: If federal regulators approve a merger with Delta Air Lines, are we still bound to the pay concessions sanctioned by the U.S. Bankruptcy Courts until 2011?
Answer: Management has indicated that if the merger with Delta goes forward we will remain entirely separate workforces for a significant period of time while the details are put in place. If the Delta flight attendants win their union representation election in the meantime (the vote count will begin at 1400 EDT May 28) we can then immediately start to negotiate for improvements in one combined contract.
If Delta flight attendants lose their representation election, there will be another election for the combined Delta/Northwest workgroup when the National Mediation Board (NMB) determines that the merger has taken effect and created a “single transportation system.” That NMB determination is unlikely to occur until early 2009, the current expectation for combining operations according to NW/DL executives. If we win that second election, we would immediately begin to negotiate for improvements in one combined contract.
If we lose both elections, we will lose our union representation and our contract, and it will be up to Delta management to decide our pay and workrules. With no contract to follow and no collective bargaining rights, bankruptcy era concessions could stay in place well beyond 2011, and we would have no legal right to negotiate improvements.
The first line of defense in protecting our contract and our bargaining rights is to eliminate the risk of losing our union at Northwest. It is in our best interest to organize Delta flight attendants to preserve our 60-year history of union representation at NWA. Delta flight attendants deserve a seat at the table as well. Offer to help Delta flight attendants in their fight to win representation for the first time in Delta history. Volunteer at a Get-Out-The-Vote call center during the Delta AFA-CWA representation election — it’s the easiest way to show our support, and winning this election is the best case scenario moving into this merger. Contact flight attendant activists for more information at: . Call centers open on April 23 in ATL, CVG, DCA, DFW, FLL, LAX, NYC, PDX and SLC.
Question 27: If DL votes in AFA, how soon can we start negotiating a new contract?
Answer: Immediately. As described above, if AFA-CWA wins the Delta election we would start negotiations for a contract covering the combined flight attendant workforce. We’ll be seeking improvements in pay and workrules and will take advantage of the merger to renegotiate our contract. But, first things first: we won’t have an opportunity to negotiate unless we help the Delta flight attendants win their representation election, or, if necessary, we win an election for the combined workforce when the merger goes forward. The sooner we get to the bargaining table the better; we want to get an early start on our negotiations, so we need to make sure AFA-CWA wins representation rights for the combined group.
Our AFA-CWA leaders, negotiators and attorneys are prepared to fight to restore what was lost in the bankruptcy era. We can participate in this fight by helping to bring Delta flight attendants the strength of the world’s largest flight attendant union as we join forces together at the world’s largest airline.
Posted by Communications Chair on 04/17 at 07:13 PMQuestion and Answer 25
Question 25: I am a new hire, currently on probation. Will there be furloughs if Northwest merges with another airline?
Answer: Talks between senior management at Northwest and Delta have apparently resumed. Neither executive team has indicated that furloughs are in the business plan. Northwest CEO Doug Steenland said in a press release that “every effort will be made to achieve [capacity reductions] through attrition.” According to Delta CEO Richard Anderson, ‘necessary reduction of approximately 1,300 positions’ would be accomplished “through attrition, retirements, limited hiring and the introduction of...voluntary programs.” These statements were made in the context of each airline operating separately, without any merger agreement. If an announcement is made, executive management teams may implement other cost saving measures.
What is certain is that provisions in our contract protect us in the event of a reduction in force (see Section 12 – Filling of Vacancies; and Section 14 – Reduction in Force and Recall). But without a union contract and a voice in negotiations, flight attendants at Delta will continue to hear comments like this from Delta’s President and Chief Financial Officer Edward Bastian: “...we are deferring any decision on 2008 pay increases until we better understand the outlook for our business. We remain committed to moving toward industry standard pay over time; however, it is important that we proceed cautiously in the current economic and fuel climate.” (more) Delta’s “policy manual” is subject to the winds of economic change and whim of senior executives. At Northwest, any change to our ratified contract, in the form of workrules, pay or benefits, must be negotiated. We have a contract with an amendable date that cannot be unilaterally altered. In the event we merge with another union airline, our agreement remains in effect and is legally enforceable until a combined agreement can be reached that builds upon what we already have.
Delta flight attendants deserve a seat at the table and the protections of a union contract as members of the Association of Flight Attendants-CWA. Offer to help at a Get-Out-The-Vote call center during the Delta AFA representation election – it’s the easiest way to show our support. Contact flight attendant activists for more information at:
. Call centers open on April 23 in ATL, CVG, DCA, DFW, FLL, LAX, NYC, PDX and SLC.
Question and Answer 24
Question 24: Northwest and Delta executives initially assumed a position of being anxious to see ALPA’s seniority integration negotiations resolved before a merger is announced. Why, when neither management team has historically presumed to care what happens with its unions?
Answer: Executives from both sides are concerned about seniority integration, but not because they would prefer to live in perfect harmony with their employees.
It may seem that both Delta and Northwest executives have a soft spot in their hearts for the contentment of their pilots. This public relations benefit to recent consolidation talks appears to be fading, with stories in the media now showing NW and DL executives have become more confrontational about ALPA’s inability to settle seniority integration outside of binding arbitration.
Delta and Northwest senior managers cannot immediately reap the enormous benefits of airline consolidation if operations still exist independently. Case in point, the US Airways/America West merger: two years after an announcement, US and HP flight crews have not merged operations. The “combined” carrier is not living up to its potential for investors or stakeholders, not the least of which are executive management teams.
But let’s not leave out the desires of hedge fund investors, who pumped capital into the bankrupt carriers in exchange for stock. This new breed of nearly unregulated corporate owners planned for their investments to exponentially increase when industry consolidation occurred. They are by no means interested in long-term involvement with either airline. The goal was to get in, get richer and get out.
A delay in combining the operations of Delta and Northwest is postponing projected earnings imagined when the reorganized carriers first emerged from bankruptcy. Senior executives want a merger to go smoothly strictly for financial reasons, not to win favor from employees.
Our focus needs to stay on our role in any merger. Flight attendants – not just pilots – deserve a seat at the table, fair and equitable seniority integration, and contract improvements on a par with the other employees who make this airline successful, and who will determine the ultimate fate of any merger.
Posted by Communications Chair on 04/01 at 08:24 PMQuestions and Answers 22 - 23
Question 22: Is the merger between Delta and Northwest dead?
Answer: “No, the merger is not dead. The same economic issues that were pushing the company toward a merger are still present, even more so as the price of oil continues to rise. If it’s not the same merger with Delta it may be a different transaction with Delta, or a different merger with a different airliine. But, the state of the Company and the state of the industry has all signs pointing toward a merger. Having said that, all we can go by and all we know at this time is what we hear in the news. Both companies are still refusing to discuss any merger with us or any other union on the property.
Clearly the issue that is holding up a transaction is seniority integration between the two pilot groups. The NWA MEC and the Delta MEC have not been able to come to an agreement on seniority integration. Northwest ALPA MEC has suggested binding arbitration but the Delta ALPA MEC has rejected that suggestion. Delta executives have stated more than once that unless both pilot groups can come to an agreement on seniority integration, there will be no merger.
Your Union however remains prepared for any scenario that may come our way. At present our energies are focused on ensuruing that our representation campaign is successful at Delta Air Lines. If the AFA-CWA wins the representation campaign at Delta, we will be one step ahead in terms of seniroity integration between NWA Flight Attendants and Delta Flight Attendants. There will be no confusion, no doubt, no need to negotiate seniority integration since the AFA-CWA Constitution and By-Laws, Section X makes seniority integration clear when both carriers are represented by the AFA-CWA.
Question 23: When will the Delta Flight Attendants vote for the AFA-CWA?
Answer: The National Mediation Board (NMB) has now officially scheduled the representational election at Delta allowing Flight Attendants to vote for the AFA-CWA. The schedule is as follows:
April 23, 2008 - Voting material mailed to all eligible Delta FAs
April 23, 2008 - Phone and internet voting will be open
June 3, 2008 - Voting results will be announced at 2:00pm ET
To read the NMB’s notice, click the link below.
http://www.deltaafa.org/
Questions and Answers 20 - 21
Question 20: What will happen to our 401K plan if we merge with Delta?
Answer: In the event of a merger loans will in all likelihood be continued either by the NWA plan or transferred to the Delta plan.
There are choices about how the 401(k) plan would be treated in a merger and some choices will be smoother for plan participants than others.
In all events, individual accounts balances will be maintained.
There is not an absolute requirement on plan sponsors to continue both plans or to maintain loans from both plans but it is highly unlikely that Delta would not accept NWA plan loans.
Question 21: Is the NW pension plan underfunded or has NWA met its obligations to the pension fund? Which is accurate?
Answer: The NWA pension plan is significantly underfunded, as is the Delta Plan.
Significant underfunding has been a characteristic of airline plans generally for the past 5 to 7 years.
A significantly underfunded status is a prerequisite for the special airline funding provisions of the Pension Protection Act of 2006. These provisiosn were enacted precisely to help these seriously underfunded plans.
The extended funding provisons allow the plans that elect to have 17 years rather than 7 years to bring the plans up to an appropriate level of funding.
There are specific formulas to determine the required levels of funding at certain times. Actuaries do this kind of calculation and certify what the plan’s funding level, and therefore compliance with the PPA, is at required times.
Underfunding, in a generic kind of way, is a determination that the assets in the plan are insufficient to meet all the liabilities (all the accrued benefits under the plan) under certain assumed asset valuations, interest rates on earnings in the future, and other factors.
These are very complicated calculations and generally are done with extremely conservative rates and assumptions. This is not to say, though, that serious underfunding is not a great concern. Rememebr also that the plan liabilties include all accrued benefits that need to be paid out over the next 40 or more years so it is not a “today” kind of cash flow problem. There are still billions of dollars in these plans and paying current benefits is not an issue.
But, yes, the NWA plan is seriously underfunded.
The second piece you include is simply a statement that the company presently is meeting the current funding obligations required under the airline extended funding provisions of the PPA.
So, I guess the answer is that both statements are correct – they are just saying different things.
Posted by Communications Chair on 03/25 at 12:31 PMQuestions and Answers 18 - 19
Question 18: Has anything been discussed regarding changes in retiree pass privileges after a merger takes place?
Answer: There have not been any discussions with management about issues like this yet. As we’ve said before, management has refused to include us and many other unions so far, because we do not represent both Northwest and Delta employees. ALPA has been negotiating with management because it represents both Northwest and Delta pilots. If there is a merger, passes will be a topic for discussion, but we’ll only have the opportunity to negotiate if the Delta flight attendants vote for our union, or if we all vote to keep AFA-CWA for the combined workforce at the time of a merger. Without a union to fight for things like this, Delta management would be free to do as they wish with pass privileges.
Question 19:What will happen to our sick hours if there is a merger?
Answer: It all depends on whether we keep our union and our contract after a merger. If the Delta flight attendants vote for the union, or if the combined Delta-Northwest flight attendant workforce votes for the union, then our contract will remain in place until we negotiate a new contract covering the combined workforce. During those negotiations our separate sick leave systems would remain in place, and we would, of course, fight to include, protect and improve upon our sick bank and other workrules.
If the Delta flight attendants don’t join the union, or we don’t vote for the union for the combined workforce at the time of the merger, then we will have no contract and no union. Delta executives would be likely to put all Northwest flight attendants under Delta workrules that are less costly than ours. (The Delta policy manual can be viewed here.) When it comes to sick leave, that means the Delta system - with its limited hours and miniscule carryover from year to year.
If we lose our union, we lose our contract including our sick leave.
Posted by NWA Webmaster on 03/12 at 01:41 PMQuestions and Answers 16 - 17
Question 16: Is the deal with Delta dead?
Answer: No. Mergers and acquisitions of this magnitude and expense often go through a series of ups and downs before finally coming together. The economic conditions that made the merger attractive to both airlines still point toward a merger; in some ways those factors are more compelling now than ever. With oil over $100 per barrel, airlines are looking at ways to cut other costs and become more efficient, and one way to achieve those economies is through a large-scale merger. At the same time, with airline stocks reaching new lows almost every day, a merger or other stock deal becomes more affordable to a potential buyer.
Delta executives are under tremendous pressure from investors to take steps to improve the value of Delta stock after rejecting a buyout proposal from US Airways that would have paid roughly $9.7 billion for Delta. Today, Delta’s stock value is a mere $3.8 billion. Delta investors are understandably anxious for a new deal that would earn them something more like the value Delta executives turned their backs on in the US Airways deal. To even the casual observer it should be clear that those kinds of numbers are an enormous driving force, and likely will not allow these airline executives to rest until a deal is done.
If Delta cannot get a deal worked out, some other airline will. The entire industry is under the same economic pressure. Even executives at Southwest, who have historically been inactive in the merger arena, have said they have an eye on potential deals. So, the only real questions are, “When it will happen and who will it be?” Those questions could be answered today, next week, next month; even six months from now.
Question 17: What are we doing during this lull?
Answer: AFA-CWA has been through many mergers over the years and is prepared to respond to any announcement. Staff attorneys and your MEC leaders have been monitoring developments as they relate to our merger strategy. We have to stay focused like this because our contract, our union and our careers are at stake.
As we’ve stated previously, we will only support a merger that improves upon our current collective bargaining agreement, protects flight attendant jobs, secures our future in this industry and provides an equity stake in the merged airline.
In any merger, acquisition, successor transaction or related agreement, Northwest management must comply with contractual provisions in Section 1 (Recognition, Scope and Job Security). Although the merger hype has quieted for now, that doesn’t mean we can let our guard down.
All flight attendants can be better prepared for whatever merger announcement is made by staying informed about our rights and sticking together. It is frustrating to have to wait for the other shoe to drop, but if we agree to protect our contract and listen only to the facts, we will be a powerful, unified group going forward.
Posted by NWA Webmaster on 03/12 at 01:32 PMQuestions and Answers 14 - 15
Question 14: How long will it take to completely merge the two companies once an agreement is reached and how long could antitrust and other lawsuits prevent Northwest and Delta from merging?
Answer: The merger process isn’t over when there’s a handshake and an agreement in principle. Once a deal is announced, federal regulatory approval, including anti-trust clearance, is likely to take six to nine months. Assuming the deal is approved by the government, the actual operational merger of the two airlines could take much longer: a year, two years, even more.
In a merger scenario, AFA-CWA normally negotiates a transition agreement to account for how the flight attendant operation will be run during the period between the approval of the merger and the eventual operational integration. This helps to smooth out that process, and it gives the negotiators time to grapple with the difficult issues involved in negotiating a single contract covering the entire combined workforce. Under our AFA-CWA Constitution and Bylaws we also work through the seniority integration process during this transition, but we do not provide the merged seniority list to management for implementation until agreement is reached on the whole contract. That prevents management from forcing us to operate under terms that were not negotiated, and it gives executives an incentive to negotiate those terms with us so they can get on with integrating operations.
Question 15: What will really happen to my defined benefit pension plan if there’s a merger?
Answer: (AFA-CWA Senior Benefits Attorney Mary Lou Savage attended the February 22 MSP Council 95 Town Hall meeting where many pension questions like this were raised. Her answer to this pension question and related issues follows.)
The Employee Retirement Income Security Act of 1974 (ERISA), a federal statute, protects pension benefits once the benefit is “accrued” under the terms of the plan. All Northwest flight attendants who have an accrued benefit under the Defined Benefit Pension Plan (DB Plan) will be paid that benefit by Northwest Airlines, its successor in interest in the case of a merger, or the Pension Benefit Guarantee Corporation (PBGC) in the event the DB Plan is ever terminated and its administration turned over to the PBGC.
The last event is highly unlikely to occur outside of another bankruptcy. And, even if it were to happen, your pension benefit is protected and will be paid to you by the PBGC. Payments of the pension benefit by the PBGC are limited only by the guarantee limits on monthly payments mandated by ERISA. The benefit payments under the DB Plan are unlikely to be affected by the guarantee limits so you will be paid your full pension benefit by the PBGC in the highly unlikely event the DB Plan has a distress termination at any time in the future.
In the event of a merger or acquisition, another bankruptcy, or the loss of union representation, each flight attendant’s accrued benefit remains as it was on the date the DB Plan was frozen. Under the DB Plan, the benefit is accrued at the rate of $65.00 per year of service up to the pension freeze date of September 30, 2006. To review your pension benefit, log into RADAR under Pay & Benefits.
The Delta flight attendants pension plan is frozen too, and no longer accruing benefits. Even if there’s a merger we won’t suddenly be put under their plan, nor will benefits under our NWA Plan be subjected to limits and restrictions the Delta flight attendants have in their plan, like their Social Security offset. Our Plan is separate from theirs and will remain so, by law. While those frozen benefits won’t change, if we merge with the Delta flight attendants, we may share future retirement benefits. If we’re union members when that happens we’ll have the opportunity to negotiate those benefits. If we’re non-union, Delta executives will decide what those benefits should be.
Posted by NWA Webmaster on 02/26 at 10:23 PMQuestions and Answers 12-13
Question 12: What will happen to our 401(k) plan, stock, health insurance and life insurance?
Answer: First, we would have to know the details of a specific merger transaction with Delta or another merger partner to be able to respond with specifics. Our existing 401(k) funds would not be jeopardized. The two potential scenarios are that either our NWA 401(k) would continue as a separate plan or, if we were to go over to Delta’s 401(k), for example, our funds could be rolled over into their plan. The terms of the two plans are different: our NWA plan has a higher employer direct contribution (between 3% and 6% based on the sum of the Flight Attendant’s age and years of vesting service). At Delta, the company direct contribution is smaller at 2% for all plan participants, with a matching contribution of up to 5%. Of course, to take full advantage of the match, Delta flight attendants must contribute a larger percentage of their income.
Stock, health insurance, life insurance and other benefits granted pursuant to our collective bargaining agreement will hinge on our ability to retain our union and our contract. If we lose the Delta election, or the election for the combined Northwest and Delta Flight Attendant workforce, then our contract will be rendered null and void. Any benefits, like insurance, that exist only because of our contract, could be revoked by management if we end up without a union. This is just another reason why we need to be unified in fighting to retain our union and protect our contract so we will have the opportunity to negotiate better terms with the merged airline.
Question 13: Is it true ALPA is already working behind the scenes on a combined contract and seniority integration? What does that mean for us? Will we have the same opportunity if Delta votes in AFA?
Answer: We can assume the media reports are true that the pilots at both Delta and Northwest have had talks about seniority and contract issues raised by a potential merger.
While we have met with NWA management, Delta management refuses to discuss merger issues with the Flight Attendants because Delta Flight Attendants have no union. Management is betting on Delta’s ability to defeat the union in the current representation election (AFA filed an election request February 14 for the Delta Flight Attendants). If they defeat the Delta Flight Attendants in that first election, their plan is to defeat us again when there’s a representation vote for the combined workforce if a merger takes place. Management is entirely focused on defeating the union and eliminating our contract so they won’t have to negotiate with us like they are required to negotiate with ALPA. We should be just as focused, first on winning the Delta election and, if that doesn’t work, then on winning when there’s a representation vote for the combined workforce when the merger takes place. If we can’t win one of those elections, management knows our representation rights and our contract will be lost.
Posted by NWA Webmaster on 02/19 at 08:48 PMQuestions and Answers 10-11
Question 10: What happens to our frozen pension plan if we merge with Delta?
Answer: Most likely, nothing will happen to the NWA Defined Benefit Pension Plan (the NWA DB Plan).
Outside of bankruptcy, the NWA DB Plan can only be terminated in one of two situations: First, any defined benefit plan can be terminated only when the plan is fully funded. (This is known as a standard termination.) But the NWA DB plan is significantly under-funded, so a standard termination is not possible. Second, a distress termination is possible when the plan sponsor (a) proves that it will only be able to stay in business if the plan is terminated, or (b) shows that the costs of the plan “have become unreasonably burdensome . . . solely as a result of a decline of” the workforce covered by the plan, and (c) the federal government’s Pension Benefit Guaranty Corporation (PBGC) approves such termination. In the context of a merger, a distress termination is highly unlikely. If a plan is “terminated” it does not disappear; it’s turned over to the PBGC and the agency administers the plan going forward, guaranteeing the accrued benefits up to a limit. The vast majority of Flight Attendants fall within the limits so their accrued benefits would be protected.
Under the extended airline funding provisions of the Pension Protection Act of 2006 (PPA), which both Delta and NWA have elected for their DB Plans, we believe it likely that both plans will remain frozen at least until required levels of funding under the PPA are achieved.
Question 11: What’s the pension situation at Delta; didn’t they dump it on the PBGC?
Answer: No, Delta did not terminate its DB Plan and turn it over to the PBGC.
Delta converted its Flight Attendants’ traditional defined benefit plan to a cash balance plan in 2003. Their plan was frozen in late 2005. The Delta plan does have federal benefit guarantee protections from the PBGC, just like our NWA plan.
Unlike the NWA DB plan, under the Delta Cash Balance Plan, there is an offset for Social Security benefits. This means that the benefit calculated and paid under the terms of the DB Plan are reduced according to a formula based on Social Security benefits received by a Plan participant. That offset persists even though the Plan is frozen, and it is now subject to litigation.
Posted by NWA Webmaster on 02/18 at 08:13 PMQuestions and Answers 1 - 9
Question 1: If there’s a merger, could we lose our Union representation and our contract?
Answer: Yes, we could. If there’s a merger, there will be a representation election at the merged airline unless the other group of Flight Attendants is already part of AFA-CWA. If less than a majority of the combined group casts a vote we would lose our union and our contract immediately.
Here are two possible scenarios if Northwest and Delta announce a merger (the most probable consolidation, according to industry analysts):
Scenario A: If Delta Flight Attendants enter a Northwest merger without union representation.
If the Delta Flight Attendants are still non-union at the time of a merger, the National Mediation Board (NMB) will call a representation election for the entire combined group of flight attendants from the two airlines. This election is automatic if at least 35% of the combined Delta and Northwest Flight Attendant workforce either belongs to a union or has signed a union card. Assume first that Delta presently has about 13,000 Flight Attendants (thousands of whom have already signed AFA-CWA cards) and Northwest has about 8,000. So we would meet that 35% threshold (13,000 + 8,000 = 21,000 x 35% = 7,350) either represented by or having signed a union authorization card.
In order to retain union representation and our collective bargaining rights, 50% + 1 of the combined workforce must cast a vote (or, using the approximate numbers above: 21,000 x 50% = 10,500 + 1). In this example, if fewer than 10,501 flight attendants from the combined workforce cast a vote, no union is certified the winner and we would immediately lose all union protections and our contract. Not casting a vote has the same effect as voting against union representation.
The ballot will have AFA-CWA listed by name, along with a line for a write-in vote for any other union the voter may wish to choose. If another union can demonstrate support with signed cards from at least 35% of the combined workforce, then that union(s) could have its name also printed on the ballot.
Again assuming there are 21,000 flight attendants in the combined workforce, as long as 10,501 participate in the union election, the union with the majority of the votes cast wins the representation. If no union gets a majority of the votes cast then there would be a runoff election between the top two union vote getters. In the runoff there is no requirement of a 50% + 1 turnout.
Scenario B: If Delta Flight Attendants enter a Northwest merger with AFA-CWA as their Union.
If Northwest merges with Delta, and DL Flight Attendants vote in AFA-CWA as their Union before the NMB declares the merged airline to be a “single transportation system,” then both groups are part of AFA-CWA, and Union representation would continue. We would still have the protection of our current contract, until we negotiate a new one for the combined group.
Question 2: We know the Delta Flight Attendants are in the middle of an organizing campaign. If they file for a representation election before a merger is announced, will the election proceed?
Answer: National Mediation Board precedent indicates the election would go forward, regardless of a merger announcement. For example, when US Airways announced an acquisition and merger with Pacific Southwest Airlines (PSA) in the 1980s, the PSA Flight Attendants quickly petitioned for an election in order to protect their seniority. The NMB went forward with the election despite the pending merger, allowing the PSA Flight Attendants to vote in AFA in time to lock in their seniority. (According to the AFA-CWA Constitution and Bylaws, the “seniority date” is “the date from which each flight attendant accrues competitive [bidding] seniority as a flight attendant on her/his current seniority list.")
Question 3: What will happen to our seniority?
Answer: After intense pressure from AFA-CWA activists, new seniority merger protection language in the omnibus budget bill recently passed through Congress despite objections by airline lobbyists. This now provides a seniority “floor” in airline mergers, but not complete seniority protection. If there’s a merger with a non-Union airline (for example, if Delta FAs are not yet organized at the time of the merger), then the law provides a process for “fair and equitable” seniority integration, up to arbitration by an outside arbitrator if the parties cannot agree on terms. This should prevent what happened to the TWA Flight Attendants when they were stapled to the bottom of the American seniority list, but it isn’t foolproof: US Airways pilots thought they would end up on top using an identical process, yet the arbitrator ultimately ruled against them and they lost seniority.
If the Flight Attendants at both of the merging carriers belong to AFA-CWA, then seniority will be integrated on the basis of the merger policy in the AFA-CWA Constitution and Bylaws, which supercedes federal legislation in such cases. Under AFA-CWA policy, everyone’s full current seniority (as defined in the C&B) at both carriers is protected, and the lists are merged together on that basis.
Question 4: Do we have to vote again?
Answer: If the Delta Flight Attendants win AFA-CWA representation in a separate election prior to the merger, then there would be no need for the Northwest Flight Attendants to vote again. But if the Delta Flight Attendants are still non-union at the time of the merger, then there will be another vote to determine Union representation for the combined Flight Attendant workforce. As noted earlier in this Q & A, that election will be held under NMB rules.
Like previous representation elections, at least 50% + 1 of the combined Flight Attendant group must cast a vote, or the result would be no union and no contract. If less than a majority of the combined workforce casts a vote we would lose our contract—including our scope language and all Union representation—immediately. Management would then be free, for example, to outsource our flying, change our scheduling rules, cut our sick leave, or do anything else they wanted to do. That’s why it is so important that we all stand together and that everyone cast a vote for AFA-CWA representation if there is an election.
Question 5: Delta seems to have it much better than we do, so why do we need a Union?
Answer: Delta does not have it better overall than we do. In fact, many of DL’s workrules are much worse than ours. Things we take for granted are unheard of at Delta, like having access to the seniority list to guard against seniority violations. And, things that we have fought for at Northwest are not part of the “policy manual” at Delta—sick time cannot be carried over into the following year. There are many other examples where their current workrules at Delta are worse than ours, but remember: the biggest difference is that there is no legally enforceable contract at Delta and management can and does change the pay, benefits and working conditions whenever it wishes. If Delta management decides to cut their pay, change their seniority or outsource international flying, they just do it because there’s no legally binding contract to prevent it.
Delta’s Flight Attendant unit costs are the lowest of the major legacy carriers, substantially lower than ours, overall. Ask yourself, if their costs are lower, what’s the first thing the controlling management group will try to do after a merger? If there’s no contract and no Union, management will cut our costs even more to bring us in line with Delta. Don’t fall for the management propaganda: yes, Delta’s hourly rates are higher than ours, but the full package doesn’t add up. Management would love to have a free hand to outsource our jobs and impose conditions even worse than those forced upon us by the U.S. Bankruptcy Court. If you’re not crazy about this concessionary contract, negotiated under the constraints of bankruptcy, imagine your life without any contract.
Question 6: What is the Union doing for us, and how can we help?
Answer: Your Union leaders have adopted a strategic action plan to secure our contract and our representation rights in the event of a merger. AFA-CWA’s professional negotiators and attorneys are working closely with our Northwest MEC leadership to monitor developments and prepare for a merger. Once there?s an announcement of a merger involving Northwest, we will evaluate the specifics and determine our best course of action. We have already set the groundwork by establishing conditions for support of a merger, and we will be aggressive in pursuing an agenda that protects the rights of all Northwest Flight Attendants. Any merger plans that are announced will be reviewed with respect to our scope language and appropriate steps will be taken to enforce our Union contract.
We also are working hard to organize the Delta Flight Attendants so there won’t need to be another election for the combined group. If Delta Flight Attendants come into a merger as part of AFA-CWA already, we eliminate the risk of losing our contract and our Union representation. We have redoubled our efforts to mobilize Northwest Flight Attendants in support of organizing efforts at Delta as our best first line of defense. We are focused on retaining our contract and our representation rights, and preparing for negotiations in a post-merger environment.
Question 7: No way do I want to lose our contract and our Union. How can I help?
Answer: Get involved in your future! Volunteer to spread the facts about Union membership to our peers at Delta and within the ranks at Northwest: Contact your LEC officers today. If we all volunteer to grow our Union by bringing AFA-CWA to Delta Flight Attendants, we will help protect our contract, maintain our Union representation, and increase our strength at the bargaining table during the airline industry’s profit surge in consolidation.
Question 8: Why should I wear my Union pin?
Answer: The AFA-CWA pin is the outward sign of support for our Union. Now, more than ever, we need to show our unity - to management, to each other and to the Delta Flight Attendants. Management monitors how many Flight Attendants are wearing a pin as a way to gauge how strongly we support the Union, whether in an organizing campaign or during ongoing negotiations. Wearing the pin is the easiest way of showing that we are unified and working together to protect our contract and our representation rights. If you don’t have a Union pin, contact a Local Executive Council officer (information available on the “Contact” page of our website, nwaafa.org.)
Question 9: How can I stay informed about what’s happening in my Union?
Answer: With so much at stake, it more important than ever to stay informed and stay involved. There is a lot of misinformation circulating from management and others. We will provide you the latest info and accurate facts as the process unfolds. Visit your Local and Master Executive Council websites, read what’s posted on Union bulletin boards throughout the system, sign up for Union email (link here). And become active! Ask questions, get answers, and share your knowledge with other Flight Attendants. It is our Union, it is our future, it is our shared responsibility to protect it.
Posted by NWA Webmaster on 02/18 at 07:35 PM