SECTION 7 FURLOUGH AND RECALL. List will be furloughed in inverse seniority order; provided, Management Flight

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1 SECTION 7 FURLOUGH AND RECALL 7.1 Reduction in Personnel When a reduction in personnel becomes necessary, Flight Attendants on the Seniority List will be furloughed in inverse seniority order; provided, Management Flight Attendants on the Seniority List holding FAA-required positions and up to one Chief Flight Attendant per each flight attended aircraft make (e.g., Falcon, Gulfstream, Global) and one Assistant Chief Flight Attendant per each flight attended aircraft make may be exempted from furlough in the Company s discretion. All other Management Flight Attendants on the Seniority List are subject to the provisions of this Section in the same manner as other Flight Attendants on the Seniority List. If a Management Flight Attendant exempted from furlough returns to the line, he shall be immediately furloughed if there is a more senior Flight Attendant on involuntary furlough at that time. New Flight Attendants shall not be hired while Flight Attendants on the seniority list are voluntarily or involuntarily furloughed. An involuntarily furloughed Flight Attendant shall retain but not continue to accrue seniority for the duration of the furlough. Each Flight Attendant to be furloughed shall be notified in writing of the furlough and an estimate of the probable duration thereof, at his last filed address. Flight Attendants to be furloughed shall be given two (2) weeks notice, or two (2) weeks pay in lieu of such notice. Prior to giving Flight Attendants notice under this paragraph, the Company shall provide the Union with the layoff list and a current seniority list. However, should the furlough constitute a mass layoff under the Worker Adjustment and Retraining Notification (WARN) Act, Flight Attendants to be furloughed shall receive sixty (60) Page 1 of 6

2 days notice. Nothing herein shall waive or limit Flight Attendants rights under the WARN Act. 7.2 Voluntary Furlough Notwithstanding Section 7.1, prior to any involuntary furloughs, the Company shall offer voluntary furloughs in seniority order to Flight Attendants who are not within the seniority range of the planned involuntary furlough. A Flight Attendant accepting voluntary furlough shall be noticed and treated in the same manner as Flight Attendants involuntarily furloughed in inverse seniority order, except Flight Attendants accepting voluntary furlough pursuant to this subsection shall continue to accrue seniority for the duration of the furlough. The Company will not contest the application for or award of unemployment compensation made by or in favor of a Flight Attendant on voluntary furlough. 7.3 Change of Address Each Flight Attendant shall file his correct address, in writing, with the applicable Chief Flight Attendant or his designee and shall promptly advise the applicable Chief Flight Attendant or his designee, in writing, of any subsequent change of address. The effective date of notice of furlough or recall shall be the date that the Company sends such notice to the Flight Attendant involved at the last address which he has filed with the Company. The Company shall advise the Flight Attendant of these requirements immediately before the Flight Attendant assumes furlough status. 7.4 Vacation Pay While on Furlough Upon request from the Flight Attendant to the Chief Flight Attendant or his designee, the Company will pay a furloughed Flight Attendant for their accrued but Page 2 of 6

3 unused vacation balance as of the effective date of the furlough. A Flight Attendant s request may be made on the effective date of his furlough or at any time prior to her actual recall. If a Flight Attendant returning from recall has not been paid for their accrued but unused vacation balance, the Company and Flight Attendant will schedule such vacation into weeks made available by the Company. 7.5 Recall Process 7.5(A) Recall Notification When the Company recalls furloughed Flight Attendants, such Flight Attendants shall be notified of recall, in writing, in seniority order. The most senior Flight Attendant furloughed shall be recalled first. The notification shall specify a day of return to active duty, and such date shall not be less than fourteen (14) days after the date the recall notice is sent. 7.5(B) Answer to Recall Notice Each Flight Attendant shall answer his recall notice, in writing or by electronic mail, within seven (7) calendar days from the time when delivery of such notice has been made at the Flight Attendant s last filed address. Such answer must be sent by the Flight Attendant to the applicable Chief Flight Attendant or his designee and state the Flight Attendant s intent to accept or defer recall. The Company shall explain this requirement in the recall notice. 7.5(C) Recall Deferral A Flight Attendant on furlough may defer recall, provided there is a more junior Flight Attendant on furlough on the date the recall notice, which shall state whether or not more junior Flight Attendants are on furlough, is sent. If a Flight Attendant is the most junior Page 3 of 6

4 Flight Attendant on furlough on the date the recall notice is sent and the Flight Attendant does not accept recall, he shall be immediately terminated and removed from the seniority list. If a Flight Attendant desires to defer recall and is eligible to do so, the Flight Attendant shall notify Company according to Section 7.5 of this Agreement. Failure to give notice pursuant to Section 7.5 shall result in immediate termination and removal from the seniority list. Notwithstanding Section 7.1, the Company may hire new Flight Attendant(s) when all furloughed attendants have deferred the current recall, provided all furloughed Flight Attendants, including Flight Attendants who have deferred recall, shall be offered the opportunity to fill any future vacancy prior to hiring new Flight Attendants. It is agreed and understood that Flight Attendants who have deferred recall shall have recall rights to future vacancies only. 7.5(D) Duration of Recall Rights There will be no limitation on the duration of a flight attendant s recall rights. 7.6 Certified or Registered Mail Requirements Notification and answers specified in paragraphs 7.1, 7.2 and 7.4 (except for recall notice answers) above shall either be certified or registered mail, return receipt required, for the time limits specified in this Section. The Company shall advise Flight Attendants of these requirements at the appropriate time. 7.7 Continuation of Furlough When a Flight Attendant is prevented by reason of serious health condition as defined in the FMLA (including spouse, domestic partner, child, or parent for whom the Flight Attendant is the primary care giver), injury to the Flight Attendant which prevents him from performing his duties, jury duty, military leave or bereavement leave from Page 4 of 6

5 complying with the foregoing provisions, he shall remain on furlough status until such reason has been removed, and shall not lose his seniority nor forfeit his recall rights. The Flight Attendant shall notify the Company within forty eight (48) hours of his recovery or the conclusion of the above-referenced leave of his answer to the recall notice. 7.8 Probationary Flight Attendants When a probationary Flight Attendant is furloughed or recalled, the Company shall do so in accordance with the provisions of this Section. Nothing in this subsection will require the Company to furlough a probationary flight attendant. 7.9 Furlough Pay Flight Attendants who are furloughed shall receive furlough pay in accordance with the furlough pay schedule set forth below. The specific amount of furlough pay shall be based upon a flight attendant s base salary on the day the flight attendant is furloughed. Payments shall be made over successive pay periods corresponding to the Company s normal pay periods until such time as the furlough pay entitlement is exhausted. Payments shall be subject to normal deductions and withholdings: Completed Years of Service One year but less than five years Five years but less than ten years Ten years but less than fifteen years Fifteen years and thereafter Amount of Furlough Pay 2.0 months 3.0 months 4.0 months 5.0 months 7.10 Medical, Vision and Dental Insurance While on Furlough The length of time a Flight Attendant on furlough shall continue to receive Company paid medical, vision and dental insurance benefits shall be equal to the period of time the Flight Attendant receives furlough pay. If a Flight Attendant s furlough pay entitlement Page 5 of 6

6 includes.5 of a month, the length of his entitlement to benefits pursuant to this paragraph shall be rounded up to include the entire month. During the benefit period, the Company will make all insurance premium payments on behalf of the Flight Attendant. During the benefit period, the Flight Attendant is responsible for making any required contribution toward premiums in effect immediately prior to his furlough, or as may apply thereafter, so long as such contributions apply equally to non-furloughed Flight Attendants. A Flight Attendant wishing to continue coverage beyond the period of time set forth in this paragraph must do so in accordance with the Consolidated Omnibus Budget Reconciliation Act (COBRA) Special Leave Incentive Program (SLIP) 7.11(A) The Company may, in its discretion, offer a Special Leave Incentive Program ( SLIP ), consisting of unpaid leaves of absence, to Active Flight Attendants. 7.11(B) The Company will determine the initial duration of the SLIP leave, which shall be the same for Flight Attendants participating in the SLIP. The Company may, in its discretion, offer to extend the duration of SLIP leaves; provided that the offer is made in seniority order to Flight Attendants on SLIP leave. 7.11(C) SLIP leaves will be offered and awarded in seniority order. 7.11(D) Except as expressly provided in this subsection 7.11, the terms of a SLIP leave will be the same as the terms of a personal leave of absence under Section 16 of the CBA. 7.11(E) The Company will not contest the application for or award of unemployment compensation made by or in favor of a Flight Attendant on an approved SLIP leave. Page 6 of 6