D.4 The Company may contract out the work of heavy maintenance visits
(as defined by current Company practices consistent with AOP and
MOP guidelines) without restriction. Additionally, the Company may
contract out up to 20% of all remaining maintenance work annually as
measured by the sum of the Maintenance Operations Division's gross
annual budget, excluding the cost of heavy maintenance visits, plus
those portions of stations' total gross annual budgets attributable to
building maintenance and ground equipment maintenance, provided
however this percentage may be exceeded in the event the Company has
fully utilized its existing equipment or facilities.
Commencing in 2006, the Union shall be permitted to perform an annual
audit for the purpose of verifying compliance with the outsourcing
limits set forth in the preceding paragraph. Such audits shall begin no
later than July 1 following the year to be audited. The Company shall
reimburse the Union for the cost of retaining a mutually acceptable outside
independent auditor to perform the audit, up to an annual maximum
reimbursement by the Company of $75,000. The Company shall provide
access to documents reasonably deemed necessary by the auditor for
performing the audit. Prior to gaining access to such documents, the
auditor shall execute a confidentiality and non-disclosure agreement satisfactory
to the Company. Reimbursement shall be made to the Union
within 30 days following the Company's receipt of the auditor's final
report and proper documentation of the costs incurred in preparing the
report.
5. Effective with the ratification date of the 2005-2009 Mechanics'
Agreement, no line aircraft mechanic shall be furloughed from any thenexisting
point as a direct result of the outsourcing of then-existing nonroutine
or routine line aircraft maintenance work performed at that point
by mechanics covered under this Agreement. The Company shall retain
in full its traditional discretion to move maintenance work within the
Company, provided, however, that should the Company's exercise of
this discretion at a point directly result in the furlough, subsequent to ratification,
of line aircraft mechanics at that point, no additional outsourcing
of non-routine or routine line aircraft maintenance work shall occur
at that point until any such furloughed mechanics are offered recall. This
paragraph shall not apply to emergency on-call maintenance.
6. Effective with the ratification date of the 2005-2009 Mechanics'
Agreement, the three "C" check lines of work currently performed by
Company employees in-house at the San Francisco Maintenance Center
will not be outsourced. This provision shall not apply under the following
circumstances:
a. an act of nature;
b. a strike or labor dispute;
c. a reduction in the Company's operations because of a decrease
in the available fuel supply or other critical materials due either
to governmental action or commercial supplier being unable to
meet the Company's demands;
d. a revocation of the Company's operating certificate(s), the
grounding of a substantial number of the Company's aircraft by
governmental action, or a significant reduction in the size of the
Company's fleet or schedule beyond current levels;
e. a declared or undeclared war or national emergency;
f. compulsion by government agency or legislative or court
action.
7. Effective with the ratification date of the 2005-2009 Mechanics'
Agreement:
a If the flight schedule at a hub station (ORD, SFO, DEN, IAD,
LAX) as of the date of ratification is thereafter reduced by more
than 25%, there shall be no additional outsourcing of ground
equipment or building maintenance work at that station until
recall is offered to mechanics who (i) have been furloughed at
that station as the direct result of said flight schedule reductions,
and (ii) have the skills and ability to perform the additional
work to be outsourced.
b. The foregoing paragraph (a)
(i) shall not apply to work that the Company has traditionally
outsourced, and
(ii) shall cease to apply if the flight schedule at a hub station
is reduced to less than 50% of the flight schedule
in effect at that station as of the date of ratification.
c. For purposes of this paragraph 7, "flight schedule" shall mean
the schedules of the mainline and the LCO as defined in Article
III.B.1 (currently known as "Ted").
8. AMFA-represented employees covered under this Agreement agree to
fully participate in Lean and cooperate in implementing, executing, and
maintaining Lean initiatives and goals. In return for this commitment,
the Company commits that effective with the ratification date of the
2005-2009 Mechanics' Agreement, no mechanic shall be furloughed
from the San Francisco Maintenance Center shops listed below as a
direct result of outsourcing from those shops of maintenance work currently
performed at the San Francisco Maintenance Center by mechanics
covered under this Agreement: Pneumatics, Avionics, Landing Gear,
APU, Engine Accessories, Engine Disassembly, Assembly and Test,
Reversers, Nose Cowls and Radomes, Wire Harnesses, Heat Transfer
Units, Tire Shop, Plant Maintenance, and Flight Controls. The
Company shall retain in full its traditional discretion to move maintenance
work within the Company.
9. AMFA will cooperate with the Company and use its best efforts in
exploring and implementing effective cost savings and productivity and
efficiency improvements in connection with plant, facilities, and ground
equipment maintenance and Ground Communication Technician
(GCT) work.
E. The Company will not sell, lease or otherwise transfer or dispose of its maintenance
facility at the San Francisco Maintenance Center. This includes the
Company's engine maintenance facility located in San Francisco. The Company is
permitted to enter into sale/lease back arrangements for financing reasons and/or a
joint venture with a third party to provide necessary capital improvements.
Notwithstanding the above, the Company may a) sell, lease or otherwise transfer
the above facilities as part of a sale, lease or transfer, within a twelve month period,
of all or substantially all the Company's assets, and sell, lease or otherwise transfer
portions of the above facilities to the extent such portions constitute unused
capacity. In the event the facilities specified in this paragraph become unavailable
due to the loss of lease (or other circumstances beyond the Company's control), or
become uninhabitable due to a natural disaster, the Company agrees to make every
reasonable effort to replace such facility unless it is not financially reasonable to do
so.