Agenda Item #1

Posted on Jun 24, 2020

ASSOCIATION OF FLIGHT ATTENDANTS-CWA, AFL-CIO

SPECIAL BOARD OF DIRECTORS MEETING

________________MAY 20, 2020_________________

View budget

SUBJECT:  AFA-CWA Proposed 2020-2021 Annual Budget

STATEMENT OF QUESTION:

Should the AFA-CWA Proposed 2020-2021 Annual Budget be adopted as proposed?

SOURCE AND DATE SUBMITTED:  International President – May 13, 2020

BACKGROUND INFORMATION:

See attached Agenda Item from the International Secretary-Treasurer and the Proposed Budget.

PROPOSED RESOLUTION:

WHEREAS the AFA-CWA Board of Directors sets and reaffirms our priorities each year; and,

WHEREAS, together we build our annual budget to support our priorities based upon available resources, including our projected income; and,

WHEREAS, today our country is in the middle of a pandemic due to COVID-19, and the airline industry has been severely affected resulting in reduced flights throughout the industry; and,

WHEREAS, AFA was part of history making legislation that supported all classifications of airline workers through Payroll Grants to airlines for direct payment to workers through September 30; and,

WHEREAS, this global pandemic has resulted in the closing of Compass Airlines; the furlough of all US based Flight Attendants at Norwegian; the impending closure of Cathay Pacific Airways; the bankruptcy of Miami Air; early out offerings; and, staggered voluntary furloughs at every airline; and,

WHEREAS, this pandemic will create reductions in dues revenue over the coming year; and,

WHEREAS, maintaining a solid and well-funded Reserve Fund (RF) has been a high priority of the Finance Committee and the Board of Directors, and contributions to the Reserve Fund have been made in 2017, 2018 and 2019; and due to good ongoing fiscal constraint by each Local and MEC, the AFA is well prepared for these times of change in the airline industry, such that the current proposed budget maintains the Reserve Fund; and,

WHEREAS, cyclical variations in constitutional services such as elections, trainings, and negotiations cause significant spending fluctuations, the adopted approach of prefunding these activities through the Future Funding Commitment has been an improvement to our budgeting process; and,

WHEREAS, the Budget Committee has met and submitted a balanced budget recommendation to the Board of Directors;

THEREFORE BE IT RESOLVED, that the CWA Dues Average of $50 was used in the construction of the AFA-CWA Proposed 2020-2021 Budget for the fiscal year beginning June 1, 2020 to May 31, 2021; and,

BE IT FURTHER RESOLVED, that the Board of Directors in session on May 20, 2020 for the purpose of passing a balanced budget, adopt the following adjustments:

  • Section IV.C.1.:  Effective June 1, 2020, each Local Council will be allowed a regular monthly allowance based on seventeen percent (17%) of the total monthly dues including service charge monies of the Council affected.  However, in no event shall the monthly allowance be no less than $2,250 or an amount equal to twenty percent (20%) of a total of 100 members and service charge payers dues.
  • Fifty percent (50%) of any funds remaining at the end of the 2019-2020 fiscal year to be carried over into the succeeding year’s local budget along with any remaining funds to be returned to the Airline Master Executive Council Administration fund will be waived.
  • Section IV.G.2.:  The value of the MEC budget allocation will be reduced by 15%.
  • Section IV.B.7.:  The MEC budget carry over will be waived.
  • Trainings will be conducted in a virtual format where possible, and the Advanced Leader Training will be rescheduled to the Fall of 2021.
  • The annual 2021 Board of Directors meeting will be funded at a virtual meeting level.
  • Any affiliation fees will be allocated at 50% of their normal value.
  • An allocation of $400,000 from the Future Funding Commitment (FFC) will be contributed, as needed.

BE IT FURTHER RESOLVED, that during this time of uncertainty with the COVID-19 pandemic, the Finance Committee, in consultation with the International President, will monitor the monthly dues revenue and expenses, and should there be a substantial change in the net balance, a reassessment of the annual budget will be made; and appropriate budgetary changes made to ensure a solid foundation is maintained for our Union; and,

BE IT FINALLY RESOLVED, that should budget changes affecting the LEC or MEC budgets be required, a ballot of the Board will be conducted.

(Office-2019) Date: 3/20/19 Time: 4:00 pm

2020 COMMITTEE RECOMMENDATION FORM

Agenda Item 1

Committee 1

Subject: 2020-2021 Annual Budget

The Committee of the Whole recommends the resolution be adopted as amended:

THEREFORE BE IT RESOLVED, that the CWA Dues Average of $50 was used in the construction of the AFA-CWA Proposed 2020-2021 Budget for the fiscal year beginning June 1, 2020 to May 31, 2021; and,

BE IT FURTHER RESOLVED, that the Board of Directors in session on May 20, 2020 for the purpose of passing a balanced budget, adopt the following adjustments:

  • Section IV.C.1.:  Effective June 1, 2020, each Local Council will be allowed a regular monthly allowance based on seventeen percent (17%) of the total monthly dues including service charge monies of the Council affected.  However, in no event shall the monthly allowance be no less than $2,250 or an amount equal to twenty percent (20%) of a total of 100 members and service charge payers’ dues.
  • Section IV.G.2.:  The value of the MEC budget allocation will be reduced by 15%.
  • Trainings will be conducted in a virtual format where possible, and the Advanced Leader Training will be rescheduled to the Fall of 2021.
  • The annual 2021 Board of Directors meeting will be funded at a virtual meeting level.
  • Any affiliation fees will be allocated at 50% of their normal value.
  • An allocation of $1,375,000 from the Future Funding Commitment (FFC) will be contributed, as needed.

BE IT FURTHER RESOLVED, that during this time of uncertainty with the COVID-19 pandemic, the Finance Committee, in consultation with the International President, will monitor the monthly dues revenue and expenses, and should there be a substantial change in the net balance, a reassessment of the annual budget will be made; and appropriate budgetary changes made to ensure a solid foundation is maintained for our Union; and,

BE IT FINALLY RESOLVED, that should budget changes affecting the LEC or MEC budgets be required, a ballot of the Board will be conducted.

Signature:      Sara Nelson, International President

Action Taken by the Board:  Voice: __X__   Division of the House:  _____   Roll Call: _____

_______Adopted Unanimously                    Date:       May 20, 2020         Time: 4:35 pm

__X___ Adopted as Amended

_______Not Adopted

_______Tabled

_______Recommitted to Agenda Committee

_______Withdrawn