NAATS HEADQUARTERS EMAIL UPDATE

Volume 2, #32

May 24, 2002

Date: May 24, 2002

TO: NAATS BOD

FROM: Wally Pike

SUBJECT: Update

Yesterday I received a briefing from ATS-1 Steve Brown and AT-1 Bill Peacock on the decision to conduct an A76 study on FSS. OMB and OST made the decision in coordination with the FAA. The FAA is now required to carry out the provisions of the OMB circular (copy available on the OMB website). Details are somewhat sketchy right now but here is what we know:

� The study will begin sooner rather than later, probably the first part of the summer,

� It will take 18-36 months to complete,

� Cost of the study is projected to be $1.5M,

� The FAA and NAATS will work together on the study from the beginning,

� OMB will probably make the final decision on any contracting out.

I've discussed this matter with NAATS Legal Counsel Arthur Fox and he'll monitor the situation for legal concerns. I'll also keep our congressional supporters briefed.

These are all the details I have now. As more become available I'll keep you advised. Obviously this has our attention but, as we discussed in the meeting, there are opportunities as well as challenges as we move through this process.

We also discussed a national staffing agreement for our bargaining unit. Looks like that's possible if the supplemental goes through for the FAA.

I met with the Director of Labor Relations to discuss the remaining pay rules. Issues are OSI, SCI, pay band caps and new hire placement through interim bands. We're close to an agreement, perhaps by the end of next week.

NAATS Chief Negotiator Bill Dolan and I met with ATA-1 Bill Peacock for our business meeting. Nothing new on FAMS, hang-up is still security. Operational overtime will run out next week for the centers. The supplemental, if it includes the $100M FAA requested, will help out but not solve the operational budget problem. Next year looks worse. Bill Peacock and I agreed to do a web cast sometime after the new contract is approved.

I talked with Congressman Bill Pascrell (T&I) and updated him on our pay issue. I also discussed FSS staffing with him.

We're scheduling a meeting next week with Congressman's Manzullo's staff to discuss the 2152 legislation. We had hoped to meet this week but they were too busy with Congress in session.

I briefed Don Young and his staff on the timelines for the FMCS hearing. I'll continue to keep him in the coordination loop.

I met with Deputy Administrator Monte Belger and talked about several things including the pay issue and various rumors. None of the rumors are substantiated; the facts remain as I've indicated before. If either AOA-1 or ADA-1 stays past the first week of August, it will be only for a matter of a few weeks. No idea who the next AOA-1 will be but it's unlikely a replacement will be named by August 5. Looks like an acting AOA-1 for some period of time.

Wally Pike