SPECIAL BULLETIN

November 18, 2000

To Our Fellow Pilots:

In our last letter to you 3 weeks ago, we described the charge the MEC had given the Negotiating Committee to secure Merger Protection Provisions (MPP's) for the pilots of US Airways. These were transmitted to Mr. Gangwal as protections the pilots require in the proposed merger with United. They were:

1. Furlough Protection for all our pilots

2. Full furlough longevity credit for pay, vacation, and retirement

3. Additional Early Retirement programs

4. Significant fleet and block hour growth

5. Career enhancements no less favorable than those granted to UAL pilots

The company finally set a date for these negotiations, which was yesterday November 17. The Negotiating Committee was also continuing its work on Parity Review negotiations with the corporation, which will affect your pay as we proceed to the new year. The MEC was briefed by the Negotiating Committee that as a result of the discussions (and the inclusion of the pay rates at United in the mix required by the terms of the Letter of Agreement #79), the analysis indicates that we will be making a claim for pay increases in order to bring us up to Parity Plus 1%. (Read - Pay Raise) Written statements to the neutral panel are required by February 28, 2001. Further negotiations and their preparations on several other issues were also proceeding. These included: scheduling disputes, information sharing to include accurate fleet plan documentation, discussions on distribution of the retirement lump sum on a pilot's retirement date, as well as discussions on the Pilot Only 401K and planning sessions on the distribution and payout of the remaining 4th, 5th, and 6th Stock Option issuances, which become immediately vested in the event of a merger. Yesterday, that all came to a screeching halt.

A new Negotiating Committee was elected. Captain John Davis called for roll call election procedures and so that is how the votes were tallied for each position. That process is allowed and we do not disagree with it, as he has tried to allege. What we wholeheartedly objected to was using that roll call power tactic to remove experience and continuity from the Committee over the objections of one half of the sitting members of the MEC.

This year, in response to pilot's requests, and in the hope that we could assemble the best team for these unprecedented negotiations, the MEC selected an outside Professional Negotiator, Mr. Jeffrey MacDonald. Before the election occurred he was asked directly about his opinion on the staffing of the Negotiating Committee.

He said, "The question concerns the loss of continuity on the Bargaining (Negotiating) Committee. Does it raise concerns? Of course, it does. Each of you will have to decide in your deliberations. I ask you not to ignore the importance of having a continuity of institutional memory. I have been at the table without this continuity and it feels very, very risky. Like negotiating in a vacuum. Please do not underestimate the importance of experience at the bargaining table. Experience at the table is critical to managing things at the table. I am not speaking to individuals but to what one seeks in a team."

To this John Davis later commented, "I have much less respect for Jeffrey MacDonald, now, than I had for him before his remarks." The reason for these comments became clear as the election proceeded. During the election, removed from the Committee were Gerry McGuckin, Donn Butkovic, and Kim Snider. Kelly Ison, the Interim Chairman was elected Chairman and Phil Carey was reinstated as Note Taker. The new members were Jeff Tokash, Ron Nelson, and Rob May.

Each of these newcomer candidates was acceptable to your reps with the proviso that experienced negotiators remained. During discussions before the election, a group of representatives, who included Don and Paul of DCA, Jack Stephan and Kevin Gillespie of BWI, Mike Tosi of PHL, and Ray Belz and Eric Kudey of LGA, proposed what we truly believed to be a consensus slate for the new Negotiating Committee. That slate supported every single one of the 3 candidates proffered by those with the roll call majority, while retaining Gerry McGuckin and Kim Snider on the Committee. Donn Butkovic would come off the Committee and Rob May would be able to fill the Note Taker position even though Phil Carey was our 1st choice for Note Taker. This would result in what we believe to be a well rounded Committee consisting of Ison as Chairman, McGucken and Snider for experience and continuity, and Tokash, Nelson and May as new blood. This was unacceptable to the roll call majority: Davis and Starnes - PIT, Greenhall - PHL, Milkey and DiOrio - BOS, McKee and Kelly - CLT. Their "compromise" was to take the 2 slots occupied by McGucken and Snider, and reduce it to one slot. That wasn't enough though. They wanted to fill that slot with our Note Taker candidate, Carey thus removing McGucken and Snider as well. On five roll call ballots, that is what they did except to remove Carey from a Negotiator position and return him to Note Taker. Thus all three Negotiator positions are occupied by new people with no Negotiating Committee experience.

But the cram down was not complete. A motion was proffered by Davis to extend "congratulations and support" to the new Negotiating Committee. It was a thinly veiled attempt to say to the pilots, -It's OK. Consensus has been reached. See, we're all together. But the fact is we are not. Even so, your reps were not going to be forced to vote against an elected Committee or goaded into voting for a feel-good resolution. At 4:35 p.m. on Friday, our sixth day at this Pittsburgh meeting, 7 of us, half the MEC (including reps from DCA, BWI, LGA, and PHL) decided to remain in the room, allowed this vote to be taken, but abstained from it. This we felt would, at least, tell some of the story. Shortly thereafter a recess was called to move meeting rooms due to hotel bookings. During this time, hints were made that "the Chairman might be next". Enough was enough. Seven members of the MEC collectively came to the conclusion that, while this was probably just an idle threat, we could not tolerate any more of this. It was simply not fair to the pilots we represent. If this was the "business" to be conducted, we were not going to enable it until your interests would be heeded. We departed the meeting as a group and, without a quorum, the meeting adjourned. We could not allow this group to disregard the interests of the pilots represented by fully one half of the MEC. They mouth the word "Consensus" and then do what they want. Our positions, and those of the pilots we represent, were not being overridden by the majority, they were being ignored. There was no consensus building going on here. It was a sham of the word "meeting" and a waste of your money. This, we felt, had to be highlighted and brought into the full light of day.

When we convene again your reps will, again, make our point that the MEC represents all the pilots of this airline - not just the pilots of the other 7 reps who happen to have a roll call majority. This is not child's play. These are real life, high stakes events that affect your career. Hopefully, other members of the MEC will hear the message that this pilot group expects and deserves consideration for all its members and their interests. If they don't listen now, they never will. Make no mistake; the adjournment of this meeting was not your reps throwing in the towel, just waving it to keep the crowd in the game. Hang in there, and so will we.

Fraternally,


Donald R. Baier, Chairman Council #138

Paul W. Hocking, Vice-Chairman Council #138