Wednesday, December 11, 2002

World Airways submits new contract to flight attendants

Peachtree City's World Airways announced that a contract proposal has been sent out to its flight attendants, which provides pay increases and other benefit changes requested by the flight attendants in exchange for work rule changes.

Hollis Harris, chairman and chief executive officer of World Airways, explained, "The agreement includes $6.3 million for pay increases and benefits and $2 million of additional costs to the company. It is the culmination of 2-1/2 years of negotiations with the flight attendants and reflects an active and committed effort on our part to reach an agreement that addresses many of their concerns, while keeping World on a stable financial footing as we continue our recovery and make plans in an uncertain economic environment."

The proposed work rule changes were targeted to make this a cost-neutral contract. In a hotline message to the company, Harris strongly urged the flight attendants to vote yes on this contract, which benefits the flight attendants and the company. The company will also be mailing information packages to all attendants.

According to the company, the negotiating team representing the flight attendants has recommended that its constituents reject the contract. The flight attendants will be voting on the contract over the next several weeks, and the votes will be counted on December 27 at the Airline Division of the International Brotherhood of Teamsters (Local 210).

World Airways has been working with the National Mediation Board to advance negotiations with the flight attendants since January 2002, when the company requested mediation assistance. The collective bargaining agreement with the flight at tendants became amendable on July 1, 2000. "Following our successful negotiations with World's pilots and dispatchers in 1999 who gave up 10% of their salary for 18 months in 2000 and 2001 to pay for the changes they wanted, we were hopeful that we could reach an agreement with the flight attendants," noted Harris.

"The contract proposal that's on the table represents our best effort in reaching an agreement that addresses key requirements of the flight attendants. If the flight attendants vote in favor of this proposal, they will be assured of three annual pay increases. At the end of the three-year period, I believe that World Airways will be much stronger. At that time, we would certainly be willing to consider some of their additional demands."

If the contract proposal is rejected by the flight attendants, the National Mediation Board could recommend a "cooling off" period of up to 30 days. At that time, the alternatives include a final agreement approved by World and the flight attendants; a strike; or an imposed contract.

Another option being considered by World Airways is a "deep freeze," in which it would ask the National Mediation Board to freeze the current contract for an additional period of time.

Harris concluded, "We have come as far as we can in putting forward our best and most reasonable offer. We have worked very hard to develop an agreement that is positive for the flight attendants and allows us to build upon our recent profitable performance and create a company we can all be proud of for years to come."

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