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UAL, CAL, CMI Mechanics Update - June 20, 2018

Dear Brothers and Sisters,

Many of you have inquired about some of our Letters of Agreements and where we currently stand regarding them; in particular Industry Reset (LOA #29), Offered Positions (LOA #21) and the Labor Management Cooperation (LOA #31).

The reset agreement assures that a measurement of annual wages and benefits of United must remain at least two 2% higher than the average of American and Delta Airlines. The economic model was completed and agreed upon shortly after the ratification of the Agreement. The model is kept on a server at the NMB for security. In addition, the Industry Reset Letter of Agreement states that the parties shall meet to commence the process six months in advance of the "Measurement Date". This meeting has taken place in accordance with the Letter of Agreement, and our economist has been watching the industry since date of ratification in anticipation of the upcoming reset.

The one unresolved agreement is the Joint Collective Bargaining Agreement (JCBA) for American and USAirways. At this point, it appears unlikely that there will be a ratified agreement prior to the "Measurement Date." Scope; which is a vital part of any agreement, along with pension, remain on the table and are vital for concluding that JCBA.

However; the other measured airline (Delta) has had improvements in their compensation package, which will most likely trigger the reset by the measurement date, as outlined in the agreement. As we get nearer to the measurement date and we are able to solidify information based on all the metrics outlined in the agreement a dispatch will be distributed explaining how the rest calculation will take place.

As a result of the amalgamated agreement “Offered Positions;” letters to those on furlough will be going out shortly in accordance with LOA #21. After these letters are sent, furloughed members will have six months to bid on the positions as described in the letter. Those members will retain their rights until they have been either offered and accepted, or declined, a position at their bid city(ies). Positions that are available will be offered to those in furlough status at hub locations of SFO, LAX, ORD, EWR and IAD.

Work continues on the Bylaws for the Labor Management Cooperation Committee and how best to effectively use this cooperation committee as we move forward. There is no timeline currently for completion of this LOA and as more information becomes available it will be reported in future dispatches.

In Solidarity,

Vinny Graziano