Secretary/Treasurer |
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Secretary/Treasurer |
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| Budget, Retainer, Assessments |
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Philip Osterhus (PIT) |
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At
the 1998 fourth quarter MEC meeting in Pittsburgh, the MEC approved
the 1999 budget. The MEC has chosen to fund a wide range of
activity by our extensive committee structure. Please note that the total amount budgeted
includes the Special MEC Reserve Account (SMRA) income for 1999. The SMRA, which is 0.35
of the 1.95 percent dues rate is that portion which can be returned to the pilots if it is
not spent.
Retainer for investment banker The MEC approved an additional amount of $100,000 as a retainer fee for Glanzer & Potok, the investment bankers we used in the 1998 negotiations. The hourly fees from Glanzer and Potok for work on the Stock Option Plan internal market, and other related work will be offset against the retainer fee. Since the projected budget plans to use virtually all of our projected income, the money for Glanzer and Potok will come out of retained SMRA, estimated at budget passage time as $750,000. Merger assessments The MEC passed several resolutions regarding merger assessments in 1998. At the first quarter meeting of 1998, the MEC passed by secret ballot a resolution assessing each active pilot $140. The resolution specified that pilots who were returning from furlough would have to pay, as well as pilots hired prior to the merging of the two MECs. At the second quarter meeting, the MEC passed a resolution authorizing the refund of the assessment to those pilots who retired before the date of the combining of the Shuttle and Mainline operations. At the fourth quarter meeting, the MEC rescinded the resolution refunding the assessment to pilots who retired before the combined operation. They also reversed the assessment of pilots who were on furlough at the time of the first ($140) assessment and authorized a refund for those who had paid. Then, acting on a request from the Merger Committee, the MEC approved an additional assessment of $120 for each active, active/sick, executive, or inactive pilot on the property on December 11, 1998. Confusing? Yes, but if we look at it this way it may become clearer: First Assessment ($140) – You owe the first assessment if you were classified as an active pilot on January 16, 1998, the day the assessment was passed. You do not owe the first assessment if you retired before that date, or you were on furlough or on leave of absence, were classified as sick/active, or were on long-term disability on that date. If you returned from furlough and paid the assessment it should have been credited toward the cost of the next ($120) assessment, and you should have received a refund for the difference. Second Assessment ($120) – You owe the second assessment if on December 11, 1998, you were classified as an active, active/sick, executive, or inactive pilot. Those pilots who returned from furlough and were off probation on that day, owe the assessment. If you were classified sick/active, or inactive due to being on a leave of absence or long term disability, you should have been billed the assessment, but you will have to pay it only upon return to active status. You do not owe the second assessment if you returned from furlough but were still on probation December 11, 1998, or were a new hire on that date. If you still have questions on whether you must pay the assessment, please call me at the MEC office at 800-872-4763. If you have questions about your statement, call the US Airways membership analyst Betty Swisher at 703-689-4164. Delinquent assesments At the fourth quarter meeting, the MEC instigated collection efforts on overdue assessments, using Section 29 of the Contract. This section of the Contract provides a process which culminates in the termination of employment of a pilot who refuses to pay his or her share of these assessments. |
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US AIRWAVES - February 1999 |
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