Exhibit 4.1
TENTATIVE AGREEMENT
June 13, 1999
The new collective bargaining agreements shall be effective
August 1, 1999 and shall become amendable on January 31, 2001.
Amendments to the M & R, PSE and F/A Agreements shall include
only those items listed below:
1) All of the tentative agreements that have been signed or
initialed off by the parties as of June 13, 1999.
2) Hourly Rates of Pay
8/1/1999 8/1/2000
Mech & Related 8.5% 3%
PSE 8.5% 3%
F/A 15.25% 3%
3) Xxxx Award Settlement for Flight Attendants and Settlement
of the M & R Grievances.
Xxxx Award Settlement: *$25 million
This amount shall be paid as follows:
Thirty (30) days following August 1, 1999: $11.0 million
August 1, 2000: $11.0 million
August 1, 2001: $ 3.0 million
*Includes FICA
The Company shall distribute the Xxxx Award Settlement
amount in the manner directed by the IAM.
TWA and the IAM agree to settle the grievances described in
paragraph 9 below for ten million dollars ($10,000,000).
The Company shall distribute this payment in the manner
directed by the IAM upon receipt of the proceeds from the
sale of Worldspan. If the Company has not received proceeds
from the sale of Worldspan by November 1, 2001 the Company
shall pay one-half of its obligation on the first business
day thereafter with the balance due and payable August 1, 2002.
All payments provided for in this paragraph shall not be
deemed to be wages for purposes of any benefit contributions
the Company is obligated to make for IAM represented
employees.
4) Retirement
Contribution to the IAM National Pension Plan effective
March 1, 2000.
Mechanic and Above: $1.00 per hour to a maximum of 40
hours per week.
Below Mechanic and PSE: $0.75 per hour to a maximum of 40
hours per week.
Contribution to the IAM National Pension Plan effective
January 1, 2001.
Flight Attendants: $0.50 per hour to a maximum of 173 hours
per month based on flight credit hours
of up to seventy-three (73) hours per
month multiplied by two point three
seven (2.37).
5) License Premium: Effective August 1, 1999: $1.00 per license.
Effective August 1, 2000: $1.50 per license.
6) Mechanic Skill Pay Effective August 1, 2000: $1.00 per hour for all
Mechanic and above.
7) Floating Holidays Effective January 1, 2000: Two additional floating
holidays for PSE and M & R employees.
8) 3 1/2 Million Three and one-half (3 1/2) million shares of TWA
Shares of Stock: Common Stock shall be issued as follows:
As soon as practicable following ratification
and fulfillment of all necessary requirements
associated with the registration, listing,
issuance and distribution of stock certificates,
the Company will distribute five hundred
thousand (500,000) shares of TWA common stock
to IAM represented flight attendants. Distribution
of such shares of stock will be determined by the
IAM in its sole discretion.
On July 31, 2000 or as soon as practicable
after fulfillment of all necessary requirements
associated with the registration, listing,
issuance and distribution of stock certificates,
the Company will distribute one million
(1,000,000) shares of TWA common stock to IAM
represented employees. Distribution of such
shares of stock will be determined by the IAM
in its sole discretion.
On January 31, 2001 or as soon as practicable after
fulfillment of all necessary requirements associated
with the registration, listing, issuance and
distribution of stock certificates, the Company
will distribute one million (1,000,000) shares of
TWA common stock to IAM represented employees.
Distribution of such shares of stock will be
determined by the IAM in its sole discretion.
On January 31, 2002 or as soon as practicable
after fulfillment of all necessary requirements
associated with the registration, listing, issuance
and distribution of stock certificates, the Company
will distribute one million (1,000,000) shares of
TWA common stock to IAM represented employees.
Distribution of such shares will be determined by
the IAM in its sole discretion.
9) Other issues:
RJs/Code Share See attached
Station Staffing See attached
Facilities Delete Letter of Agreement signed August 31, 1994
(page 38 of the TWA/IAM Amendment Signed
August 31, 1994).
See Attached for details on other facilities.
New Equipment Eliminate flight attendant 6 month new equipment
F/A Staffing provision [27(b)].
Crew Rest Seats 4 F/C rest seat obligation for flight attendants
reduced to a obligation for 2 F/C rest seats.
World Span See Attached
Collateral
Grievances All outstanding Mechanic and Related grievances
regarding scope, work jurisdiction and outsourcing,
and all "me too" grievances and the pending
arbitration over the Progression Agreement, are
withdrawn in exchange for the Grievance Settlement.
Litigation Withdrawal of all pending litigation, including
contempt proceedings
Advisor and $1,382,000 for all past professional services
Legal Fees through June 13, 1999 (to be paid no later than
90 days following ratification).
Letter of Agreement attached for future
professional services.
Language Changes Eliminate profit sharing language
Eliminate "Me Too"
Vacation Allotment Effective January 1, 2001 flight attendant vacation
allotments will snap back to pre-1992 levels.
The maximum vacation days will be thirty-six
(36) days.
MCI Mini Agreement As agreed to by the parties in MCI.
Fixed Daily Rate Personal illness trips missed bank of sixty (60)
hours per year; once depleted the flight attendant
will receive four hours per day for each day of a
scheduled flight activity.
Daily rate for flight attendants vacations fixed
at 2:30 per day.
Flex Benefit Payment due flight attendants from a 1992
Payment contractual provision is satisfied by this Agreement.
Mexico and Effective August 1, 1999 flight attendants scheduled
Caribbean to work on flights to and from these locations will
be compensated at international rates of pay and
will continue to be scheduled utilizing the domestic
work rules.
Reserve Schedule Effective September 1, 1999 flight attendant reserve
schedule holders shall receive a pay guarantee equal
to seventy-five (75) hours pay and credit. In
addition reserve schedule holders shall receive
twelve (12) days off.
IAM Insignia The Company will provide IAM insignias affixed on
replacement uniform shirts for Mechanic and Related
not later than January 1, 2000.
AGREED this 13th day of June, 1999.
For the Company: For the IAM:
______________________ ______________________
______________________ ______________________
Dated: June _____, 1999
