Thanks Twu

[Hopeful]

April 10, 2003



Mr. Gary Yingst

International Vice President

AA System Coordinator

Transport Workers Union, AFL-CIO

1791 Hurstview Drive

Hurst, TX 76054



Ref: Article 23(d) Mechanic and Related


Dear Gary,



As part of the tentative agreement it was agreed to modify day off training from overtime rates to straight time rates. During these negotiations the Union expressed a concern that due to this change, the Company would now commence scheduling training on a day off above and beyond the historical experience within M&E.



Although, we cannot guarantee that we would utilize day off training anymore in the future than we have historically scheduled, it is our intent to utilize as we have in the past.



If the above accurately reflects our understanding, please indicate by signing below.



Sincerely,


James B. Weel

Managing Director

Employee Policy and Relations



Agreed to:







Gary Yingst

International Vice President

AA System Coordinator

Transport Workers Union, AFL-CIO



cc: D. Huffman

Vice Presidents – M&E

J. Brundage

J. Little

 

[Hopeful]

March 31, 2003





James C. Little

Administrative Vice President, Air Transport Division

Transport Workers Union of American, AFL – CIO

1791 Hurstview Drive

Hurst, Texas 76054



Re: Implementation of 4/10’s Work Schedules at TULE



This will confirm our understanding reached during the negotiations leading up to the agreement signed on (DOS), 2003.

During these negotiations, we discussed the Company’s interest to implement a 4/10’s work schedule at the Tulsa Maintenance Overhaul Base (TULE). The parties agreed that the Tulsa Overhaul Base would have the right to implement a 4/10’s schedule, as provided in Article 3. The implementation, described in this letter, is limited to the aircraft overhaul docks. The purpose of the 4/10’s schedules is to meet current and future weekend coverage needs on the aircraft overhaul docks.

The Company agreed to credit Title I for the savings projected for this implementation. In exchange for that credit, TWU Local 514 agreed to permit these 4/10’s work schedules for the duration of this agreement, irrespective of conditions outlined in Article 3(B). The Union reserves its right to discuss implementation issues with the Company.

This understanding does not alter the contractual application of Article 3 in any area other than the aircraft overhaul docks. Other areas at TULE are free to pursue 4/10’s work schedules in accordance with Article 3. In those areas, both parties retain their contractual right of unilateral cancellation.



Sincerely,







James B. Weel

Managing Director

Employee Relations





Agreed to this date:



__________________________________

James C. Little

Transport Workers Union of America, AFL-CIO

 

[Hopeful]

March 31, 2003





James C. Little

Administrative Vice President, Air Transport Division

Transport Workers Union of America, AFL-CIO

1791 Hurstview Dr.

Hurst, Texas 76054





Re: Reduced Vacation Application



This will confirm our understanding reached during the negotiations leading up to the agreement signed on (DOS), 2003. During these negotiations, we discussed how to implement the one week vacation savings in order to realize the savings in 2003 thereby avoiding additional decreases in pay or other work rule changes.



The basic principal of the transition application is that each employee with vacation remaining in 2003 will roll one (1) week of 2002’s accrued vacation to use in 2004 thus reducing 2003 accrual by two (2) weeks. The application in effect combines vacation weeks from 2003 and 2004 which are then divided between the two years depending on whether or not the employee has already used some or all of his current vacation. The net effect is that we reduce the total weeks over the two (2) years by two (2) weeks.



The attached diagram on the attached page illustrates this application. It provides an example at each point from seven (7) weeks through two (2) weeks.



As part of the implementation and in order to realize the savings, employees will defer a week of 2003 vacation based on a certain allocation for each individual week. Example: Week of September 6 and 13, 2003. Station ABC will allow 6 employees to defer Sept. 6, 2003 and 6 employees for Sept. 13, 2003. This is to ensure the Company does not have too many of the same week deferred. To allow employees to select without a limitation could cause a scenario whereby Sept. 6 has 15 employees defer and Sept. 13 has only 4, thus, the vacation relief coverage would be skewed and the vacation relief headcount would not be balanced properly.



Once the procedures have been finalized, employees need to provide which week they would like to defer to local management no later than May 8, 2003. In the event, there are weeks made available after the deferral process is complete, local management in conjunction with the local union will work out a selection process for those available weeks.



For those employees, who as a result of the deferral and adjusted accrual do not have a week of vacation for 2004, can take time off without pay through a CS arrangement. We understand that for employees to work an entire year or more without a scheduled vacation should have time off and therefore strongly encourage these employees to utilize the flex vacation option which will be made available in October of 2003 for 2004 vacation.





Sincerely,









James B. Weel

Managing Director

Employee Relations



Agreed to this date:





___________________________

James C. Little

Transport Workers Union of America, AFL-CIO



___________________________

date



See attached






Current Vacation (Weeks)
2003 Already Taken

2003 Remaining
2004

2005 and on


7
7

0
5

6



6

0
6

6



5

1
6

6



4

2
6

6



3

3
6

6



2

4
6

6



1

5
6

6



0

6
6

6











6
6

0
4

5



5

0
5

5



4

1
5

5



3

2
5

5



2

3
5

5



1

4
5

5



0

5
5

5











5
5

0
3

4



4

0
4

4



3

1
4

4



2

2
4

4



1

3
4

4



0

4
4

4











4
4

0
2

3



3

0
3

3



2

1
3

3



1

2
3

3



0

3
3

3











3
3

0
1

2



2

0
2

2



1

1
2

2



0

2
2

2











2
2

0
0*

1



1

0
1

1



0

1
1

1











Note:
* Employees with two weeks of vacation would still receive the three (3) days



accrued through the Date of Signing (one day per month).



Therefore, these employees would have some days to take in 2004.



- This scenario assumes that 2003 accrual is reduced by two weeks,



and future accruals are reduced by one week.





- One week of vacation accrued in 2002 is deferred to 2004.

 

[Hopeful]

March 31, 2003







James C. Little

Administrative Vice President, Air Transport Division

Transport Workers Union of America, AFL-CIO

1791 Hurstview Dr.

Hurst, Texas 76054





Re: Summary of the 2003 Contract changes



This will confirm our understanding reached during the negotiations leading up to the agreement signed on (DOS), 2003. During these negotiations, we discussed many changes intended to achieve sustained long-term financial relief from the current provisions of the TWU labor agreements. This letter is intended to recap the majority of the agreed upon changes. Changes are listed by Title groups: I (Mechanics and Related), II (Facilities, Automotive, Cabin Cleaners, Utility and Building Cleaners), III (Fleet Service), IV (Fuelers), V (Stock Clerks), T/S (Technical Specials), Disp (Dispatch), Metro (Meteorologists), Sim Techs (Simulator Technicians) and Instrs (Ground School and Pilot Instructors).



Pay Related

Effective May 1, 2003:

§ Base wage pay reduction, varying percentages (all groups)

§ Elimination of all longevity pay(I & II)

§ Modified longevity pay, start after 17 years, current rates (III, IV, V,T/S)

§ Reduced Sim Tech Coordinator premium by $.75/hour

§ Reduced Sim Tech Skill pay to $.10/hour

§ Reduced Pilot Simulator Instructors premium to $10.00/month

§ Reduced Ground School/Pilot Simulator Instructors standardization coordinator pay to $150.00/month

§ Reduced Pilot/Simulator Instructors work unit experience premium

§ Modified shift differential to $.01, $.02, $.03 (I, II, III, V, T/S, Sim Techs)

§ Elimination of weekend differential (I, II, V, at AFW, TUL, MCI)

§ Elimination of midnight skill retention premium (Sim Techs)

§ Training pay at straight time for off shift and day off (I, II)

§ Elimination of penalty lunch payment (I, II, III, IV, V)

§ Elimination of OT meal allowance (I, II, III, IV, V, T/S)

§ Penalty hours pay for actual time worked @ 1.5x (I, II, III, IV, V, T/S)

§ Reduce OT rate from 2x to 1.5x (I, II, III, IV, V)

§ Work 40 hrs to reach OT rate for day off overtime (III, V)

§ Elimination of debrief pay (T/S)

§ Elimination of Stock Clerk driver premium

§ Elimination of AMT premiums when displacing OSM employee

§ Elimination of Early Call-In guarantees (I, II, III, IV)

§ Elimination of short turn penalty due to shift bids (Art 21 d) (III, IV)

§ Elimination of CC premium when not working as CC (III,V)







Work Rules/ Other changes and effective dates:

Effective April 15, 2003:

§ Combine Systems/Structures into Generals (Title I)

§ Added 7 day labor loan provision (Bases only)

§ Increased AMT productivity through multiple work assignments/training

§ Holidays reduced from 10 to 5. The five (5) observed holidays will be: New Year’s Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day (all groups)

o Holidays- 5 days with roll @ 1.5x (I, II, III, IV, V, T/S, Sim Techs)

o Holidays- 5 days (no roll) @ 1.5x (Disp, Metro, Instrs)



Effective May 1, 2003


§ Reduce annual SK accrual to 5 days @ 100% (all except I & II)

§ Reduce annual SK accrual to 5 days, 1st two at 50% (I & II)



Effective May 3, 2003

§ 4/10s at Overhaul docks/TUL, duration of agreement

Effective within sixty (60) days of ratification:

§ Outsource RON/Ultraclean (II/III)

§ One time System protection credit for headcount reductions realized from work rule changes (all groups except Metro)



Effective thirty (30) days from ratification:



§ Reduce uniform provisioning and eliminate laundering (I, II, III, IV, V)

§ Outsource stores function at HDQ (6 Stock Clerks)

§ Relocate 4 Stock Clerks at ORD/GEM to ORD/M & E hanger



Effective as soon as practicable after DOS:

§ Change work schedule to 5 on, 2 off (T/S)

§ Reduced VC accrual one week (all groups)

§ Modify Crew Chief ratios:

AMT- 1:11.5

FSC- 1:9

Fuelers- eliminated ratio

Stores- 1:12

Benefits:

§ Medical & Dental plan modifications (all groups) Effective 1/1/04



§ SLOA Benefit Coverage reduced from 24 to12 months (all groups)

Effective 5/01/03



§ Eliminate STD Plan (all groups) Effective 1/1/04



§ Discontinue subsidized medical benefits RIF’d employees (all groups)

Effective 4/15/03





§ Modify IOD to 10 days (all groups) Effective 5/01/03 with the following transition:



o If the injury was incurred prior to 4/15/03, remaining applicable salary continuation through the end of the month up to the current 80 days

o If the injury is incurred on 4/15/03 or before 4/30/03, salary continuation for 10 days up to the current 80 days

o If the injury is incurred after 5/01/03, salary continuation for 10 days



Sincerely,





James B. Weel

Managing Director

Employee Relations



Agreed to this date:



________________________________

James C Little

Transport Workers Union, AFL-CIO