Special Bulletin:
Union bosses forced to pay $175,000 to two fired workers

SETTLEMENT AGREEMENT AND RELEASE

This Settlement Agreement and Release is made by and among the Plaintiffs, John Masiello and Craig Sickler (the “Plaintiffs”), and the Defendants, International Association of Machinists and Aerospace Workers, Airline Machinists District 141-M, IAMAW, International Association of Machinists and Aerospace Workers, Local Lodge 1725, and US Airways, Inc. (the “Defendants”).

In order to fully and finally settle all claims of the Plaintiffs asserted in their pending civil action (Case No. 3:99 CV 319 H, W.D.N.C.) or otherwise arising prior to the date hereof by virtue of the Plaintiffs’ discharges from employment and the Defendants’ enforcement of the union security provisions of the collective bargaining agreement between the Union Defendants and US Airways, the Parties agree as follows:

    1. All Defendants agree and reaffirm that the Plaintiffs can be and have been reinstated to their former positions and seniority with US Airways, as though there had been no break in service, and that Plaintiffs are and shall be eligible for all benefits under the Defendants’ collective bargaining agreement (“CBA”) as if there had been no break in service. This includes, but is not limited to, all wage rates and premium pay, eligibility under all health, welfare, employee stock ownership and pension plans, and bidding for jobs, schedules and vacations based upon seniority. Defendants will expunge Plaintiffs’ discharges from their employment, personnel and CBA administration records, and shall not use such discharges or the underlying records or facts of this case as evidence in any future disciplinary or other proceedings arising under the Defendants’ collective bargaining agreement or employment or personnel administration.

    2a. Plaintiffs shall resume paying agency fees once the following three events have occurred: (i) the IAM has established an interest-bearing escrow account maintained by an independent third party, into which the full amount (100%) of fees paid by all fee challengers will be placed pending disposition upon the final ruling of an arbitrator on challenges to those fees; (ii) the IAM has adopted procedures reasonably calculated to ensure that the arbitration hearing for challenges to the fees payable in 2001 will be conducted in or around April 2001; and (iii) plaintiffs have received copies of fee reduction audits of Local Lodge 1725 and District Lodge 141-M, conducted by an independent certified public accountant, for the year on which the IAM based its calculation of the reduced fee payable by US Airways mechanics objectors in 2001.

    b. Once the three events described in subparagraph 2a. have occurred, plaintiffs will resume paying, prospectively, agency fees in the monthly amount calculated by the IAM to be paid by US Airways mechanics objectors in 2001 (i.e., $40.64), and the IAM will place such funds or an amount equal thereto in the escrow account pending disposition upon the final ruling of an arbitrator on 2001 challenges to those fees; provided, however, that if the independent accountant’s audits of Local Lodge 1725 and/or District Lodge 141-M provide for a greater reduction than was calculated by the IAM, or if the arbitrator adjudicating challenges to the IAM’s calculation determines that the amount should be reduced, plaintiffs will receive such reduction(s) once the arbitrator’s award has been issued. The IAM also agrees that each Plaintiff will henceforth be considered a “continuing” objector under its agency fee objection policies.

    3. Within seven days after this agreement is signed by all parties or their representatives, all parties or their representatives will cause to be filed with the District Court a Stipulation of Voluntary Dismissal with prejudice.

    4. Within seven days after this agreement is signed by all parties or their representatives, the IAM Union Defendants shall pay to Plaintiff Masiello the sum of $92,500 and to Plaintiff Sickler the sum of $82,500. The IAM Union Defendants shall write two separate checks, payable solely and respectively to Mr. Masiello and Mr. Sickler, for the amounts set forth above, and shall deliver said checks to Plaintiffs’ Counsel for transmittal to Plaintiffs. No tax or other withholdings shall be deducted from these amounts.

    5. By this settlement, the Plaintiffs release and discharge fully and completely all Defendants from any and all liability arising before this date in connection with their discharges and the Defendants’ enforcement of the union security provisions of the collective bargaining agreement. By this settlement, the Defendants release and discharge fully and completely all Plaintiffs from any and all liability arising before this date in connection with the matters underlying this lawsuit or the litigation of this lawsuit. All parties shall bear their own costs and attorney’s fees.

    This Settlement Agreement and Release shall be effective upon the execution by a representative of each of the parties.

    6. Each representative signing below represents that he is fully authorized to sign on behalf of his respective client(s).

John Masiello and Craig Sickler, Plaintiffs

By:____________________________
Date Signed __________________
Glenn M. Taubman, Esq.
Attorney for Plaintiffs
c/o National Right to Work Legal
Defense Foundation, Inc.
8001 Braddock Road, Suite 600
Springfield, VA 22160

International Association of Machinists and Aerospace Workers,
Airline Machinists District 141-M, IAMAW,
International Association of Machinists and Aerospace Workers, Local Lodge 1725

By:___________________________
Date Signed __________________
Jeremiah Collins, Esq.
Attorney for all IAM Union Defendants
Bredhoff & Kaiser
805 15th Street, N.W.
Washington, D.C. 20005

US Airways, Inc.

By:___________________________
Date Signed __________________
Chris Hollinger, Esq.
Attorney for USAirways, Inc.
O’Melveny & Myers LLP
400 South Hope Street
Los Angeles, CA. 90071-2899