What UAL Management wants from Pilots
This is what UAL will ask the Bankruptcy Court for:
Section 1113(c) Proposal Term Sheet
ALPA
Objective Restructure the current Agreement to enable the transformation of United consistent with the announced business plan.
Effective Date
[______] The effective date of the new Agreement will be the first calendar day of the calendar month following the execution of the new collective bargaining agreement. [________, 2003]
Term
[Six years:____] The amendable date of the new Agreement will be ______, 2009.
Revise the duration clause to provide:
ˇ§This Agreement shall become effective [________, 2003] and shall continue in full force and effect until [_______, 2009] and shall renew itself yearly without change unless written notice of intended change is served in accordance with Section 6, Title I of the Railway Labor Act, by either party at least thirty (30) but not more than sixty (60) days prior to [_______, 2009] or any year thereafter.ˇ¨
Compensation
Discuss methods of reaching cost saving objectives through compensation adjustments including:
„h Eliminate the base hourly pay increases in Section 3-B scheduled for May 1, 2003 and May 1, 2004.
„h Eliminate the international override payments incentive in Section 3-B-1-d.
„h Eliminate the incentive pay for late night flying in Section 3-B-7-a.
„h Revise the junior manning assignment override pay in Section 3-B-7-c to 10%.
„h Revise base hourly pay rates in Section 3-B on the Effective Date by reducing it by 29%.
„h The new reduced base hourly pay rates will be increased by 1.5% each year effective on the anniversary of the Effective Date until [_________, 2008].
„h Revise minimum monthly guarantee in Section 3-B-4-a from 75 hours to 60 hours.
Scope and Job Security
Discuss the following business flexibility enhancements that can be used in transforming United consistent with the business plan:
Low Cost Carrier Competitive Solution Create a United Sub-brand that can be deployed in markets that are identified as ˇ§low costˇ¨ markets and in which there is an inability to segment fares; the result to be a product that is competitive with Frontier, Jet Blue, Southwest, ATA, etc.
Furlough Protection
Eliminate furlough protection for all pilots as currently provided in Section 1-H-1 to allow the workforce to seek its proper level over the short and long term consistent with the business plan.
Number of Regional Jets and their deployment
Eliminate the restrictions in Section 1 on (i) the number of Small Jets; (ii) the operation of Small Jets; (iii) the relationship of Small Jets to the mainline fleet and number of mainline pilots; (iv) code sharing with carriers who fly over 70 seat RJs; (v) other feeder carrier limitations to enable small jets to be deployed in the appropriate markets consistent with the business plan.
Size of Regional Jets Revise Section 1-M-28 to seventy (70) seats in order to compete effectively in 70 seat markets consistent the business plan.
Number of Pilots
Eliminate Section 1-C-1-g minimum number of pilots related to SJs. Eliminate Section 1-H-2 absolute minimum number of pilots. Permit the number of pilots to be realized through the business plan.
Fleet Number
Eliminate Section 1-H-3 absolute number of aircraft. Eliminate Section 1-B-4-a restricting carriers to whom aircraft may be sold. Permit the number and type of aircraft to be realized through the business plan.
Number of Block Hours
Eliminate Section 1-H-4 absolute minimum number of block hours. Eliminate Section 1-C-3 minimum number of international block hours. Permit the number of block hours to be realized through the business plan.
Domestic Code Share Limitations Eliminate conditional language in Section 1-C-2-a and eliminate Sections 1-C-2-a (1), (2) and (3) and 1-C-2-b. Permit United to enter into domestic alliances as needed to respond to rapidly changing industry environment as indicated by the business plan.
International Code Share Limitations
Eliminate conditional language in Section 1-C-3 and eliminate Sections 1-C-3-a, b, c, d, and e; 1-C-5-a. Permit United to enter into international alliances as needed to respond to the rapidly changing industry as indicated by the business plan.
Route Transfer Eliminate Section 1-B-4-b to enable route transfer as needed in the business plan.
Cargo Eliminate Section 1-C-6 requiring Company to endeavor to ship all cargo on Company aircraft and preventing profit sharing on cargo with other carriers. Permit United to coordinate with other carriers to maximize revenue and respond to rapidly changing industry as indicated by the business plan.
Work Rules, Productivity and Efficiency
Discuss the following work rule changes that can be used in transforming United consistent with the business plan:
Hours Maximums
Revise monthly, actual and scheduled flight time limitations in Section 5-B-1 and 5-B-2; and Letter 91-2, L.1 and L.2 from 81/85 to 92 in all circumstances to permit more productivity. Eliminate bank provisions.
Duty Rig
Eliminate Section 5-G-3-a and related sections to remove scheduling restriction that penalizes certain IDs.
Trip Rig Revise Section 5-G-3-c and related sections to provide ratio of 1:4.5 to reduce penalty on certain IDs.
Minimum Day Eliminate Section 5-G-3-b and related sections to reduce penalty for certain IDs.
Days Off
Revise lineholders minimum days off to 10 days; revise reserves to 12 days of which 4 are moveable to increase productivity.
Atlantic Augmentation Eliminate Letter 01-14 and modify Letter 91-2 to affirmatively state that augmentation is not required on Atlantic operations under 8 hours.
QWL Letter
Revise Letter 00-20 to provide ˇ§best effortsˇ¨ to meet quality of life parameters.
Shuttle Letter Delete Letter 94-
Staffing
Discuss the following changes that can be used in transforming United consistent with the business plan:
International Relief Pilot
Create International Relief Pilot (IRP) applicable to two man crew aircraft to provide cruise pilot as augmented crew.
Manpower Formula
Eliminate manpower formula in Section 8-B. This provision is linked to the elimination of the minimum pilot provisions in Section 1.
Training Expense
Apply a 36-month freeze to each position award.
Preferential Bidding
Implement a preferential bidding system to replace line bidding as provided in Section 20. Amend/eliminate all provisions of the Agreement that are inconsistent with preferential bidding. Accordingly reduce the notice period for involuntary vacation leave from 45 days to 30 days.
Domicile Closing
Eliminate domicile closure language from US code share letter of agreement and permit any base to be closed where closure is warranted from a business plan perspective.
Training Staffing
Revise Section 1-B-3, Pilot Instructor Letter 98-1, 98-8, 89-2 to permit non-seniority list simulator instructors, sale of training center and greater flexibility in sale of simulator surplus time.
Benefits
Discuss the following benefit changes that can be used in transforming United consistent with the business plan:
Pilot Defined Benefit Plan
Revise multiplier in the Pilot Defined Benefit Plan as provided in Exhibit A.
Pilot Directed Account
Eliminate Company contribution to Pilot Directed Account as provided in Letter 00-18, B-2. Retain pilotsˇ¦ vested balances.
New 401(k)
Establish a 401(k) retirement account as set forth in Exhibit A.
Retiree Medical The employee contribution to the cost of retiree medical for pre and post Medicare retiree medical benefits may be modified consistent with Exhibit __.
Retiree Life Insurance
Revise Letter 00-19 and all other provisions of the Agreement as necessary to provide retiree life insurance as provided in Exhibit A.
Medical/Dental Plan Equality
Revise Letter 00-19, A and C and other provisions of the Agreement as necessary to replace all current medical and dental plans with a uniform plan (or plans) to be available to all Company employees as set forth in Exhibit A.
Medical/Dental Plan Contribution
Revise Letter 00-19, A and C and other provisions of the Agreement as necessary to provide that all employees shall contribute to the cost of coverage for all company-sponsored medical, dental plans as set forth in Exhibit A.
When an employee chooses a Medical HMO or Dental HMO option (if available), if the cost of the HMO or DHMO exceeds the cost the PPO, the employee share of the cost for the HMO or DHMO shall be equal to the employee share of the cost of the PPO option plus 100% of the additional cost.
Flexible Spending Account
Current program of Health and Dependent Care Accounts, with maximum annual contribution of $5,000 per account. Forfeitures to be used for plan administration.
Active Employee Life Insurance and AD&D, LTD
Revise Agreement as necessary to provide consistent with Exhibit A:
„h Company paid Life Insurance: One times annual base pay (max $200,000).
„h Contributory Life Insurance: Up to eight times annual base pay.
„h AD&D: Company-paid (none). Offer contributory coverage on same basis as current plan.
„h Revise pilot long-term disability plan as provided in Exhibit A.
Per Diem
Revise hourly per diem expense allowance in Section 4-A to $1.50 domestic and $1.75 international.
Vacation Accrual
Revise Section 11 to provide maximum 35 days of vacation accrual and pay.
Vacation Overlap
Eliminate the vacation overlap pay provision in Section 11-C-1 by paying 2.6 hours per vacation day.
Layover Hotels
Revise Section 5-G-1-c to eliminate the ˇ§downtown or downtown-likeˇ¨ requirement for layovers equal to or greater than 13 hours and treat all layovers as field layovers.
First Class Deadhead
Revise Section 5-D-3 and 5-D-4 to eliminate booking pilots in first class on and off line. Revise corresponding international provisions in Section 2-B.
Paid Moves
Discuss reaching cost savings objectives through revision of Section 10-A to provide paid moves only when a pilot experiences an involuntary domicile transfer. Further, only provide paid move when pilot actually moves to his domicile.
Sick Leave
Revise Agreement to provide that sick leave accrual, sick leave pay and medical leaves of absence shall be as provided under ˇ§Short Term Disability/Sick leaveˇ¨ in Exhibit A.
Occupational Sick Leave
Eliminate all current provisions providing for occupational sick leave or injury leave and/or pay. Occupational injuries shall be treated as sickness and sick leave, and pay during such sick leave shall be available as provided under ˇ§Short Term Disability/Sick leaveˇ¨ in Exhibit A.
Furlough Pay
Revise Agreement as necessary to cap severance pay at a maximum of eight weeks.
Sick Leave Pay
Revise Section 13-A to provide that pilot will be paid only for the actual hours that are debited from the sick leave account.
Company-paid Union Time
Revise Letter of Agreement 91-30 dealing with Company-paid ALPA ID drops.
Force Majeure
[To be discussed]
Grievance Withdrawals ALPA to withdraw specified grievances with prejudice. List to be provided.
Success Sharing Establish an appropriate success sharing program to ensure that employees participate in Unitedˇ¦s successful transformation.
This is the future of US Airline Industry under George Bush.