SECTION IV

ACCOUNTING AND FINANCE

A. Allowable Expenses

1. Allowable Expenses When Properly Substantiated

a. The most economical transportation should be used while on Union business. Rental cars may be used with approval of the appropriate Local Council President or Master Executive Council President. Taxi fares in excess of five dollars ($5.00) must be accompanied by a receipt.

b. Automobile expenses will be allowed at the current maximum IRS- rate per mile. For 2009 that rate is $0.55 per mile.

c. Allowable meal expenses for all locations are as follows: breakfast up to ten dollars and ($10.00); lunch up to fifteen dollars ($15.00); dinner up to twenty-three dollars ($23.00). (Board 2008-Effective Date July 1, 2008)

d. Reasonable and adequate hotel accommodations, in the form of single rooms, will be provided, unless otherwise specified. If price, availability, location and amenities are comparable, preferred lodging is at a union hotel.

e. Reasonable telephone and telegraph expenses, installation charges, necessary to conduct Union business.

f. Reasonable expenses, such as tipping (not to exceed 20%) and laundry expenses, for meetings of five (5) days duration or more.

g. Reasonable expenses for porter tipping.

h. Allowable expenses up to seven dollars and fifty cents ($7.50) per hour for child care with receipt and approval of Local Council or Master Executive Council President.

B. Master Executive Council Expenses

1. There shall be no salary in connection with an office of a Master Executive Council. Ordinary Master Executive Council operating expenses shall be paid by the Union. Flight pay loss and expenses of Master Executive Council officers, incurred while performing required duties of such office, shall be paid by the Union.

2. The President shall have the authority to release anyone whom that President deems necessary for the purpose of conducting Master Executive Council business.

3. The President or the President's designee shall submit to the International Secretary-Treasurer of the Union by the tenth (10th) of each month a report of the previous month's releases, number of days involved and the project(s) to be charged.

4. Each Master Executive Council has responsibility over its budgeted funds and their use, as long as they are not in conflict with the Constitution and Bylaws or Policy Manual.

5. Each airline Master Executive Council will be responsible for budgeted funds in the areas of Master Executive Council Administration, System Board of Adjustment, and Negotiations of the airline involved. Such funds are used at the direction of the Master Executive Council.

6. Each Master Executive Council will keep the International Office advised on authorized expenditures so that the International Office can verify bills and charge proper budgetary accounts. Charges against Master Executive Council budgetary accounts are to be reviewed by the President on receipt of monthly statements. Any differences should be reported to the International Office as soon as possible. Any unresolved differences will be presented to the next Executive Board in session for settlement.

7. Twenty percent (20%) of all Master Executive Council controlled budget surplus, not to exceed ten thousand dollars ($10,000.00), may be carried over in succeeding years.

8. The President may transfer funds from the System Board of Adjustment to Master Executive Council Administration at the end of the year if a surplus exists in the System Board of Adjustment budget.　

9. Budget allotments during work stoppages.

During an AFA-CWA or non-AFA-CWA work stoppage on any carrier, fifty percent (50%) of the monthly allotment for each Master Executive Council shall be allowed for the first ninety (90) days and twenty-five percent (25%) thereafter.

10. Each Master Executive Council will be allowed to use a portion of its allocated funds for miscellaneous needs, such as flowers, non-alcoholic beverages at meetings, or any other expenses deemed necessary by the Master Executive Council when substantiated by receipt.

11. When making equipment purchases of over five hundred dollars ($500.00) in value, the International Secretary-Treasurer of the Union should be notified so that these items may be added to the fixed asset records of the Union.

12. Upon receipt, thirty-five (35%) percent of the initiation fee collected from members on each airline will be credited to the Master Executive Council budget on that airline.

13. Funds will be allocated only to the Transitional Master Executive Council to be utilized by Transitional Master Executive Council and Local Executive Council representatives for purposes of furthering the goal of attaining a first collective bargaining agreement. The Transitional Master Executive Council shall decide the allocation of funds between each Local Council on the basis of relative per capita membership. Total funds allocated to the Transitional Local Executive Councils shall not exceed fifty (50%) percent of the Transitional Master Executive Council budget. For purposes of this provision, the Transitional Master Executive Council budget shall not include the amount budgeted for negotiations.

a. The following provisions of the Policy Manual shall not apply to a Transitional Local Executive Council or Master Executive Council:

Section IV.B.7. and 8.; Section IV.C.1., 1.a., and 1.b.

C. Local Council Expenses

1. Effective January 1, 2009 each Local Council will be allowed a regular monthly allowance based on 19.5% of the total monthly dues including service charge monies of the Council affected. However, in no event shall such monthly allowance be less than an amount equal to 19.5% of a total of 100 members' and service charge payers' dues. Twenty percent (20%) of any funds remaining at the end of the fiscal year are to be carried over into the succeeding year's local budget. All remaining funds are to be returned to the Airline Master Executive Council Administration fund. (Board 2008)

a. All allowances are issued on a monthly basis; any unused portion will be carried over into succeeding months unless deemed necessary for use by the Master Executive Council with the approval of the Local Council President involved.

b. Upon receipt sixty-five (65%) percent of the initiation fee collected from members in each Local Council will be credited to the Local Executive Council budget for that council.

c. Council Officers and their appointed representatives will be reimbursed for reasonable incurred expenses while on local Union business for the Local Council. The expenses are never to exceed the allowable amounts set forth in the Policy Manual.

d. During an AFA-CWA work stoppage on any carrier, fifty percent (50%) of the monthly allotment for each Local Council budget shall be allowed for the first ninety (90) days and twenty-five percent (25%) thereafter.

e. During a non-AFA-CWA work stoppage on any carrier, twenty-five percent (25%) of the monthly allotment for each Master Executive Council and Local Council budget shall be allowed for the duration of the work stoppage.

2. AFL-CIO Affiliation Fees Allowable

Local Councils may apply for fifty percent (50%) of a Council's cost of affiliating with an AFL-CIO Central or State body, or for Councils located outside the United States, with an ITF affiliate or a coalition of ITF affiliates. Councils outside the United States may also apply for fifty percent (50%) of the cost of affiliation with a National/Regional Trade Union Board within their geographical area. Any non-U.S. affiliation must have the prior approval of the International President of AFA-CWA. Councils must have assumed the first year's fees and be active members. Nothing shall prohibit a Local Council from other affiliations or absorbing the entire cost of any affiliation. The allowances will be reviewed by the International Secretary-Treasurer of the Union in consultation with the Local Council President.

a. In New Alliance States fifty percent (50%) of a Local Council's cost of affiliating with an AFL-CIO Central and State Body will be paid by the International Office budget. Local Councils may apply for reimbursement of the full cost of affiliating with New Alliance State and Central bodies, however, full reimbursement will be approved only upon demonstration that the Local Council participates in the State and Central body to which affiliated. The demonstration of participation by the Local Council will be established through consultation between the Local Council President and the International President, allowing for the uniqueness in size of the Local Council and frequency of meetings in the State and Central body. Allowances will be reviewed by request of the Local Council President to the International Secretary-Treasurer of the Union.

3. Special Allowance

a. Local Councils may receive an additional monthly allowance for a specified period of time to initiate projects or to cope with unusual circumstances. In order to receive a special allowance, the Local Council President must receive prior approval from the International Secretary-Treasurer of the Union. The request from the Local Council President will include the desired sum and the reason for the request. The International Secretary-Treasurer will determine if a special allowance is necessary and if the sum requested is reasonable.

b. All local councils located outside the United States may receive an additional monthly allowance not to exceed 25% of the council's regular monthly allowance. Such councils with memberships of less than 600 members shall receive said allowance automatically. In order for such councils with greater than 600 members to receive said allowance, the Local Council President shall review the request with the International Secretary-Treasurer of the Union who shall determine if a special allowance is necessary on a semi-annual basis.

c. Reimbursement of Local Council expenses in excess of the regular allowance or any allowance not authorized in advance will not be allowed.

d. The allowance, when just cause is shown, may be reduced, increased or withdrawn by the International Secretary-Treasurer of the Union at any time. A minimum of thirty (30) days notice should be given to the Local Council President involved.

e. (1) Local Councils that do not receive "local council designated" Flight Pay Loss may receive an additional monthly allowance not to exceed 35% of the council's regular monthly allowance. Such councils with memberships of less than 400 members shall receive said 35% allowance automatically. 　

(2) A special allowance for Councils with 400-499 members without Company provided Flight Pay Loss will be 25%.

(3) A special allowance for Councils with 500-599 members without Company provided Flight Pay Loss will be 15%.

As these allowances above provide a disincentive to negotiate for company-paid Flight Pay Loss (FPL) for fear of losing this allowance, any decreases to these allowances will be phased out over the five years following successful negotiation of an equal or greater amount of company-paid FPL

(4) In order for councils with 600 or more members to receive said allowance, the Local Council President shall review the request with the International Secretary-Treasurer of the Union who shall determine if a special allowance is necessary on a semi-annual basis.

4. Local Council Hearing Expenses

When charges are preferred against a member and hearings are held by the Local Council in accordance with Article X. of the Constitution and Bylaws, necessary expenses incurred during the hearings shall, with prior approval of the International President of the Union or her/his designee, be paid to the Local Executive Council, its members, and those persons directed by the Local Executive Council to appear at the hearings.

5. Expenses Not Allowed

Expenses incurred for the purpose of providing alcoholic beverages at Union meetings shall not be allowed.

6. Each Local Executive Council will be allowed to use a portion of its allocated funds for miscellaneous needs, such as flowers, non-alcoholic beverages at meetings, or any other expenses deemed necessary by the Local Executive Council when substantiated by receipt.

7. When making equipment purchases of over five hundred dollars ($500.00) in value, the International Secretary-Treasurer of the Union should be notified so that these items may be added to the fixed asset records of the Union.

8. Newly Established Local Councils

A minimum of one thousand dollars ($1,000.00) shall be allocated to newly established Local Councils.

a. This amount may be increased at the request of the Local President and with the approval of the International Secretary-Treasurer, based on such factors as size, location and operational needs of the Council. The International Secretary-Treasurer shall determine if the requested sum is necessary and reasonable.

9. Toll Free Telephone Access to the International Office

Telephone access will be provided via a toll-free number or a calling card where a toll-free number is not accessible. Such calling cards will be provided to the Local Council President. These expenses will be absorbed by the International Office.

D. Reimbursement Procedure

1. Flight Pay Loss Reimbursement Procedure - Reimbursement for Flight Pay Loss directly from the Union is accomplished by submitting a record of trips lost on a Union Report of Flight Pay Loss form which may be obtained from the Local Council President or the Accounting Department at the International Office. Such Report of Flight Pay Loss shall be submitted by the member at the time of trip(s) dropped and s/he shall be immediately reimbursed. Company pay vouchers for the month during which a trip(s) were lost must be submitted when received by the flight attendant.　

2. Expense Reimbursement Procedure

a. Reimbursement for expenses is accomplished by submitting a record of all expenses to the Accounting Department on Union Daily Expense Report forms, along with the required receipts, vouchers, and/or rail or air tickets. Contact the Local Council President or the Accounting Department at the International Office for expense forms.

b. Special attention should be devoted to stating the nature of Union business for which the expense reimbursement is being requested, so that the International Office may accurately charge the costs to the specific projects involved. Also, the name of the person authorizing the activity on which the expenses were incurred, and for which reimbursement is sought, must be included on the Union Daily Expense Report form if reimbursement is to be made. All reports must be signed when submitted.

c. The International Secretary-Treasurer of the Union shall issue a reimbursement check within fifteen (15) calendar days of receipt of a properly submitted expense reimbursement request.

3. Requests for Travel Tickets

a. It is Union policy not to grant travel vouchers for travel over a member's own airline or when reciprocal travel is available on other airlines. For those unable to secure transportation to an AFA-CWA meeting, travel requests shall always be made in advance to the International Office.

b. The most economical transportation should always be used consistent with all other considerations.

c. Use air travel if working time and other expenses can be saved. AFA-CWA representatives should obtain non-revenue passes, and if this is impossible, discounted fares on their own or other airlines. Care should always be exercised in route selection. The Union can often help in securing non-revenue transportation. Air travel tickets must be attached to the Union Daily Expense Report form submitted to the Accounting Department at the International Office for payment.

4. Return of Vacation Days Lost

a. The following procedure shall govern the return of vacation day(s) to Union representatives and Officers.

(1) Prior approval of performing required Union activities during a vacation period must be granted by the LEC/MEC President if these activities will result in Vacation Day(s) lost.

(2) It will be necessary for the LEC/MEC President to notify the International Secretary-Treasurer of the Union, prior to the start of vacation, which day(s) a representative will be performing Union activities during such scheduled vacation period. In the event the required Union activity is not known prior to the start of the vacation, the International Secretary-Treasurer will be notified of the vacation day(s) lost no more than thirty (30) days after the last day of the affected vacation.

(3) If vacation days are lost, such vacation return must be redeemed by the representative involved within one (1) year of the last day of the vacation lost or it shall be deemed to have been forfeited unless said representative notifies the International Secretary-Treasurer of the Union of circumstances which prohibit the use of vacation days within that year. An extension may be granted, on an individual basis, by the International Secretary-Treasurer due to extenuating circumstances, allowing the carry-over of vacation to the succeeding year(s). The International Secretary-Treasurer will advise the appropriate LEC/MEC President of the extension.　

(4) It shall be the primary purpose of the Union to return the days lost to the individual involved. It will be permissible for the Union to monetarily, or with trip drop, reimburse the representative in accordance with the contractual provisions in effect with the company at the time the vacation was lost, and it shall be charged to the appropriate budget.

E. Time Limits for the Submission of Expenses and Flight Pay Loss

1. Claims for personal, Local Council and Master Executive Council expenses and flight pay loss shall be submitted to the Accounting Department in a timely fashion not to exceed sixty (60) days, except end-of-year claims shall be submitted no later than May 15.

2. In the event of late submission, the International Secretary-Treasurer of the Union will act accordingly; however, in a dispute of payment the International Secretary-Treasurer will refer the disputed expense claim via agenda item to either the Board of Directors or the Executive Board, whichever is in session first, for approval. A late submission for expenses shall not automatically infer said claim is in dispute. This provision is not meant to preclude the responsibility for the timely submission of expenses.

F. Arbitration of Expense Disputes

In the event of a difference of opinion as to authorization for AFA-CWA duties, as to the validity of the final claim for expenses or as to an allowance request, the Executive Board in session will promptly arbitrate the dispute.

G. Budget

1. The AFA-CWA budget preparation process shall be considered a strategic planning process and part of the annual national program of the Union, with consideration for allocating resources to Union priorities. Budget preparation shall include (1) preparation by each Master Executive Council, for use by the Master Executive Council and LECs, of proposed Master Executive Council budget allocations and Master Executive Council action plans consistent with the national program, and (2) preparation by the International Office of proposed budget allocations and action plans consistent with the national program.

2. Master Executive Council Budget Formula

a. Master Executive Council budgets are based on a percentage of each carrier's adjusted dues. A formula is used to determine the exact percentage for the individual carrier. Should any carrier experience growth, the International Secretary-Treasurer will recalculate their MEC budget based on actual growth in order to provide the appropriate increased funding. The timing of such review will be twice annually, at 4 and 8 months into the budget year. At no time will the current MEC budget be reduced during the calendar year.

b. The carriers are divided into four (4) groups:

(1) Group I will be based on a projected dues income over $549,648 and will be assigned a base factor of 9.3%.

(2) Group II will be based on a projected dues income of $219,780 - $549,648 and will be assigned a base factor of ten percent (10%).

(3) Group III will be based on a projected dues income of $45,936 - $219,779 and will be assigned a base factor of eleven percent (11%).

(4) Group IV will be based on a projected dues income under $45,936 and will be assigned a base factor of thirteen percent (13%).

c. Factor weights, determined by the number of members on a Master Executive Council plus the three (3) Master Executive Council Officers, are added to these percentages.

Factor weights will be as follows:

(1) Master Executive Council members representing only one (1) council will be two-tenths of one percent (.002).

(2) Master Executive Council members representing a council outside the United States will be 0.0042 percent.

(3) All other Master Executive Council members and the three (3) Master Executive Council Officers will be 0.0035 percent.

d. The total Master Executive Council factor weight added to the base factor is the Total Factor. This Total Factor is then applied to the carrier's adjusted dues to determine the Master Executive Council budget.

3. Budget reviews will be conducted on a monthly basis. B&E reports will be provided to each Local Executive Council and Master Executive Council no later than forty-five (45) days after the close of the month reported. Each Local Executive Council and Master Executive Council shall be given a minimum of thirty (30) days to identify any discrepancies or errors on their B&E prior to the closing of the books in each fiscal year. Any discrepancies or errors found shall be reported to the office of the International Secretary-Treasurer. Correction requests will be researched and processed within seven (7) days of receipt of the information by the International Secretary-Treasurer. Corrected reports shall be available no later than the next scheduled B&E. If any year-to-date budget category is exceeded by ten percent (10%) or more, written recommendation will be sent to the officer who is in control of the budget in question. The warning will request the reasons for the over-budget condition. If, in the opinion of the International President, proper rationale is provided, no action will be taken. If the Council cannot provide an adequate explanation and the over budget condition continues, specific action may be taken by the International President to insure budgetary compliance. Such action may include temporary curtailment of specific activities, the denial of expenses, or notification to the company that no further releases are authorized.

4. The International President, with the mutual consent of the individual in control of a particular budget, may transfer funds from one (1) budgetary category to any other budgetary category.

H. Expenses for the Board of Directors Meeting

1. Expenses for attendance at the Board of Directors meeting will be authorized for all Local Council Presidents, or their elected delegates as defined in Article V. H., all Master Executive Council Presidents, Master Executive Council Vice Presidents, Master Executive Council Secretary-Treasurers, and International Officers.

2. Expenses may be authorized for attendance at the Board of Directors meeting for remaining Local Council Officers provided funds are available in the Local Council budget to cover the entire cost of attendance.

I. International Officers Compensation and Benefits

1. Total compensation for the International President will be 2.25 times 68 hours annualized at the highest AFA-CWA Flight Attendant's hourly pay (to include negotiated overrides, i.e., purser/lead, international rates, COLA, et al) in effect on October 1 of each year, plus an additional 11% (eleven percent) override of this figure, and allocation of this total amount for salary, retirement benefits and/or deferred compensation will be determined upon consultation with the International President subject to approval of the International Secretary-Treasurer. Such adjustments shall be effective the following January 1 of each year. Total compensation for the International President in 2009 shall be $108,745.55.

2. Total compensation for the International Vice President and the International Secretary-Treasurer will be 80% of the International President's compensation (calculated at 2.25 times 68 hours annualized at the highest AFA-CWA hourly pay (to include negotiated overrides, i.e., purser/lead, international rates, COLA, et al) before application of the 11% override) plus an additional 11% (eleven percent) override of this 80% figure, and allocation of this total amount for salary, retirement benefits, and/or deferred compensation will be determined upon consultation with the respective Officers subject to approval of the International President. Such adjustments shall be effective the following January 1 of each year. The International Vice President and the International Secretary-Treasurer shall each receive 86,996.44 in total compensation for 2009.

3. Insurance, vacation and other fringe benefits to the International Officers will be provided by AFA-CWA on the same basis as the maximum available to AFA-CWA employees or, at the option of each International Officer, be provided by AFA-CWA reimbursement to the International Officer's airline for such benefits under the provisions in effect on that carrier, provided that if the International Officer elects to be covered by the AFA-CWA employees' retirement plan or retirement plan on the International Officer's airline, the cost of funding such retirement benefits shall be paid the International Officer.

J. Financial Support for Outgoing International Officers

1. Outgoing International Officers receive financial support equal to four (4) months' salary paid in monthly or AFA-CWA payroll installments, except if said officer has been recalled in accordance with Article IX. A. of the Constitution and Bylaws. The Officers shall also be provided with continued insurance coverage by AFA-CWA while receiving financial support.

2. The financial support will extend until the day they receive compensation from any employer but in no case longer than four (4) months. The Union will make every effort to provide them with a temporary staff position until such time as training is available by their airline, except in the case of recalled officers, who will be afforded only thirty (30) days pay.

K. AFA-CWA Equipment

1. In the event of council closure any equipment purchased through a charge from a Local Council budget shall be turned over to the Master Executive Council at or before the date on which the council is closed. The Master Executive Council shall determine how the equipment is to be used. If such equipment is deemed to be surplus by the Master Executive Council, nothing will prohibit the Master Executive Council from returning the equipment to the International Secretary-Treasurer for redistribution to any other AFA-CWA carrier in need.

2. Equipment utilized by a carrier which is no longer operating or for whom AFA-CWA is no longer the bargaining representative, shall be returned to the International Secretary-Treasurer for redistribution to any other AFA-CWA carrier in need.

L. Ethical Investment Policy

AFA-CWA believes that its investments should be made in companies that have stable and secure working environments in which trade unions are recognized and employees are valued as the core element in the company's future well-being.

As a Union making investments, we look to the companies in which we invest to demonstrate their commitment to their employees by reference to the appropriate International Labour Organization (ILO) conventions which form the cornerstone of human rights in the work place. They cover:

Freedom from discrimination;

Freedom from bonded or forced labor;

Freedom from oppression;

Freedom of association;

The right to organize and bargain collectively

The right to equal remuneration.

AFA-CWA will achieve this objective through a policy of engagement and persuasion. AFA-CWA's investment managers are instructed to take account of the above principles, to bring this policy to the attention of those companies in which we hold shares who do not comply, and to seek to persuade them to take account of our principles.

AFA-CWA will monitor the compliance and progress of our policy continuously.

M. Mobilization Fund

Individual MEC's may apply for access to the AFA Mobilization Fund by putting forward a written proposal, including a budget request.