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UAL/CAL/CMI Mechanics Update - September 20, 2016

On September 19, the National Mediation Board sent a revised meeting notice that reconfirmed the status conference on September 26 and directed the parties to remain in Washington through September 28 to finalize all open issues.  The NMB notice also reaffirmed that the NMB’s gag order remains in place, but authorized the parties to disseminate key agreed upon terms of the AIP.  Below is a summary of the key agreed upon terms.

Pay:   

A&P “all-in” top of scale hourly base rate     = $47.31   at date of ratification

            All other classifications will receive comparable increases to A&P technicians

                             Basic Hourly Rate                              = $40.06                     

A&P License Premium                       = $  5.25

Line Premium                                      = $  1.00

Max. Longevity                                  = $  1.00

In addition to the all-in rate, a $1.20/hour VEBA contribution up to 2,080 hours/year-effective with start of new medical plans * see note                        

Retro Pay:     

            $185 million pool for lump sum distribution

            Average of $20,500 per technician, based on historical earnings      

Retirement:

All technicians (including new hires) to participate in defined benefit pension plan

·  s-CO & s-UA technicians to participate in CARP, plus additional 1% Company contribution to 401(k) for those with more than 30 years of credited service in CARP 

·  CMI technicians continue in Western Conference of Teamsters Pension Plan, with comparable, increased company contribution $3.00

Plus all technicians to participate in 401(k) plan with matching company contribution of up to 3% of pay (current s-CO plan)

Vacation, Holidays & Paid Sick Leave:

            Up to 35 days paid vacation per year, per existing s-UA plan

            10 paid holidays per year, including 4 floating holidays, existing s-CO plan

            100% pay for all sick leave

Job Protections:

            All employees on the seniority list as of date of ratification are protected from furlough

            San Francisco and Houston base job protections for the life of the agreement

Improved “scope” language to prevent contracting out of work due to attrition

Early Out Program:

            $5,000 per year of service to a maximum of $100,000

Medical:

Active medical identical to pilot, flight attendant, airport agent & dispatcher plans

·  Aggregate 80/20 cost share, with year-over-year increases capped at 9.25%

·  Special enrollment to occur in 1Q17, plans to be effective in April 2017 * Note start date of VEBA and medical plans to be clarified with NMB

Retiree medical – harmonize to s-CO retiree bridge medical plan, which will phase out in 2026

Profit Sharing:

Transition to profit sharing pool equal to 5% of pre-tax net income, with escalator trigger to 10% of profits over a 6.9% margin

Duration & Out Year Increases:

            Six year duration, with minimum increases in basic hourly pay rates of:

1.5% at DOS + 12      1.0% at DOS + 24      1.0% at DOS + 36    1.0% at DOS + 48      1.0% at DOS + 60

Letter of Agreement providing “industry reset” every two years that adjusts pay rates to keep pace with the industry and ensure that United technicians are always at least 2% above AA and DL in total compensation, as established through defined and agreed criteria.  UA technician total compensation under the August 12 AIP, per the defined reset formula, would be 5.8% above the industry average of AA and DL.