SUPPLEMENTAL AGREEMENT between UNITED AIRLINES, INC and THE AIR LINE PILOTS in the service of UNITED AIRLINES, INC. as represented by THE AIR LINE PILOTS ASSOCIATION, INTERNATIONAL THIS LETTER OF AGREEMENT is made and entered into in accordance with the provisions of Title II of the Railway Labor Act, as amended, by and between UNITED AIRLINES, INC. (hereinafter referred to as the Company or United ) and the AIR LINE PILOTS in the service of UNITED AIR LINES, INC., as represented by the AIR LINE PILOTS ASSOCIATION, INTERNATIONAL (hereinafter referred to as the Association or ALPA ). The parties agree to the following changes to the Agreement: A. Permanent Changes: A-1 Amend Sections, 3-B-7-a, 3-B-7-c, 3-B-8-a-(1), 3-C-1-a, 3-C-1-b, 5-B-1-d, 5-B-1-e, 20-D-4-b and 20-E-2 by replacing all references to sixty-five (65) hours with seventy (70) hours. A-1-a Amend Section 3-C-1 to reflect the following: For unpaid absences known at the time monthly schedules are awarded, the minimum monthly guarantee for line construction is reduced by 2.26 hours per day in a 31-day month and 2.33 hours per day in a 30-day month. The maximum flight credit hours for line construction as defined in Section 5-B-1-d is reduced by 2.9 hours per day in a 31-day month and 3.1 hours per day in a 30-day month. During monthly bidding the pilot may elect not to have the maximum flight credit hours reduced. A-2 Add a new provision 5-B-1-d-(1) to reflect the following: Notwithstanding the maximum credit values of 5-B-1-d above, a lineholder may select a maximum monthly PBS schedule construction limit of eighty-seven (87) credit hours on the B747-400, B777 and B767 fleets and eighty-nine (89) credit hours on the B737-300/500 and A320/319 fleets. This selection will be available to input in both the pilot s monthly and standing bids. No adjustments will be made to this modified credit parameter for buffering purposes. The 87 hour limit will not apply on the B747-400, B777 and B767/757 fleets if it would cause the pilot to be 1
mathematically unblockable (i.e. mathematically impossible to award a line within the selected window) as defined in Section 5-B-1-e. A-3 The LCO flex month provisions are eliminated as follows: Eliminate Sections 5-G-1-d-(3), 5-G-1-d-(3)-(a), 5-G-1-d-(3)-(b), 5-G-1-e-(1)-(c), 5-G-1-e- (1)-(d), 5-G-1-e-(1)-(e). Amend Sections 5-G-1-d-(2), 5-G-1-d-(2)-(a), 5-G-1-e- (1)-(b), 5-G-2-e-(2), 5-G-4 and 22-E-5 to remove reference to those Sections eliminated and remove any references to flex months. A-4 Add a new provision 11-K-1-g to reflect as follows: On or after December 1 st of each vacation year, the Company may solicit volunteers to participate in the vacation pay-out program. The Company will first solicit volunteers before involuntarily paying out vacation in any category. The number of vacation days so solicited for each category shall count against the Section 11-K-1-b pay out limits. Notwithstanding Section 11-K-1-f, successful volunteers with remaining unassigned vacation days will not be bypassed during the involuntary assignment of monthly vacation. For any pilots volunteering vacation under this provision, all vacation pay out rules must be complied with (e.g., 14-day limit, legal splits, etc.). A-5 Any pilot who has been issued a notice of furlough and is involuntarily assigned a short-notice vacation (less than 60 days notice) as provided for in Section 11-E-2-c, may choose to cancel all vacation days that fall within his last thirty (30) days of employment. The pilot must notify the Company by the first day of the pilot month preceding the month in which the vacation occurs, or within five (5) days of receiving the vacation assignment, whichever is later. A-6 Add a new provision 5-B-1-f to reflect as follows: PBS parameters will be set to provide PBS constructed lineholder schedules with a minimum of one (1) calendar day off at home domicile within every seven (7) consecutive calendar days. This parameter shall apply between trips, between trips and reserve duty and between trips and training of less than five (5) days. A lineholder may select to not apply this parameter on a monthly basis or in his standing bid. A-7 Reinstate LOA 93-02 (Trip trade with Open Time) in its entirety and paragraphs 1-a and 1-c through 1-g of LOA 96-01 (Schedule Flexibility). B. Schedule Improvement Tests - The category(ies) to be tested, the duration of such tests, and other test parameters must be mutually agreed upon between the Company and Association except as provided below. 2
B-1 Pairing Construction the Company and SSC will test changes to improve the quality of pairings. As a minimum, the parties agree to the following tests: B-1-a Limiting domestic published pairings to a maximum of four (4) calendar days B-1-b Basing rest requirements on the length of the duty day (rather than basing rest on the amount of flight time), as described in Appendix A B-1-c Modifying the QWL limits in LOA 00-20 B-2 PBS Line Construction - the PBS JIT will test changes to improve the quality of lines. When JIT meetings are held, trip drops, if necessary, will be Company-paid on a displacement basis for up to two (2) Association participants. As a minimum, the parties agree to the following tests: B-2-a Increasing the amount of unawarded flying permitted by PBS B-2-b Expanding Section 20-D-2 to allow the Company to construct additional lines out of open time after the initial monthly senioritybased rundown is awarded B-2-c Allowing a pilot to opt for a mandatory number of calendar days off at home domicile if he exceeds a specified number of consecutive days worked, with the numbers to be determined by the JIT B-3 Trip Trade - The Trip Trade JIT will test changes to improve the trip trade system. The JIT will function in accordance with the MOU dated September 21, 2007. B-3-a As a minimum, the parties agree to the following: B-3-a-(1) To investigate a procedure which would allow lineholders to split trips in order to trade into or out of portions of trips B-3-a-(2)To test relaxed coverage constraints in the seniority based rundown, in conjunction with the PBS test described in paragraph B-2-b above (i.e. building post award move-up lines) 3
B-3-a-(3) To improve the trip trade interface, to include the consideration of using outside vendors. B-3-b No later than six (6) months after this agreement is signed, the Company will develop a new unimatic landing currency freeze code that does not interfere with a pilot s ability to trip trade. This Agreement will become effective upon execution and will remain in full force and effect concurrent with the Basic Agreement. IN WITNESS WHEREOF, the parties have signed this Agreement this day of 2009. Witness: For United Air Lines, Inc. Jay Milone Managing Director Labor Strategy - Flight Witness: Tim Brown Negotiating Committee Chairman For The Air Line Pilots Association Captain John Prater President Bradley P. Hunnewell Negotiating Committee Vice-Chairman Captain Stephen Wallach, Chairman United Master Executive Council 4
Greg Everhard Negotiating Committee Member QWL / Fatigue Final language Wendy Morse Negotiating Committee Member 5
APPENDIX A: DUTY-BASED REST TEST DETAILS Notwithstanding Sections 5-B-7, 5-G-1-a-(1)-(c), 5-G-1-c-(5), 5-G-2-a-(1)-(a), 5- G-2-a-(1)-(b), and 5-G-2-c-(4), the initial test for duty-based rest will consist of the following parameters: 1. A duty period or reassignment that is scheduled to exceed eleven (11) hours on duty must either: 1-A. Be followed by a scheduled off-duty period that contains at least eleven (11) hours free from duty; or 1-B. If followed by a scheduled off-duty period that contains less than eleven (11) hours free from duty, the next scheduled off-duty period must contain at least fourteen (14) hours free from duty. Further, the total scheduled duty time of the duty periods before and after the off-duty period of less than eleven (11) hours free from duty is limited to twenty-three (23) hours total. 1-C. At non-domicile locations, the Company may, on a monthly basis with SSC concurrence, reduce the one (1) hour report time specified in Section 5-G-1-b-(1) to thirty (30) minutes in order to provide the required period free of duty. Specifically, it will be assumed that the pilot reported for duty one (1) hour before departure. 2. A duty period that exceeds twelve (12) hours in the actual operation must either: 2-A. be followed by an actual off-duty period that contains at least eleven (11) hours free from duty; 2-B. if followed by an actual off-duty period that contains less than eleven (11) hours free from duty, the next actual off-duty period must contain at least thirteen (13) hours free from duty. 2-C. At non-domicile locations, the Company may reduce the one (1) hour report time specified in Section 5-G-1-b-(1) to thirty (30) minutes in order to provide the required period free of duty. Specifically, it will be assumed that the pilot reported for duty one (1) hour before departure. The parameters of the above schedule improvement test will not be modified unless jointly agreed between the Company and the Association. 6
APPENDIX B IMPLEMENTATION SCHEDULE The parties agree to the following implementation schedule for this Letter of Agreement: Paragraph A-1 Minimum Monthly Guarantee and Line Construction Floor: Effective for the first pilot schedule month following the date trip trading (in accordance with Paragraph A-7) is reinstated Paragraph A-2 Selectable construction cap and Paragraph A-1 items requiring vendor modification: Effective for the fifth schedule month following the date of signing. (E.g. if signed by the last day of month A, effective for month F schedules) Paragraph A-3 Elimination of Flex Months: Effective upon date of signing Paragraph A-4 Vacation Pay Out changes: Effective beginning with the 2008/2009 vacation year Paragraph A-5 Furlough Short Notice Vacation changes: Effective upon date of signing Paragraph A-6 1-in-7 change: Effective for the fifth schedule month following the date of signing (E.g. if signed by the last day of month A, effective for month F schedules) Paragraph A-7 Trip Trade: Effective no later than eight (8) weeks following date of signing. Paragraph B-1 Pairing Construction tests: Per SSC and Company Paragraph B-2 PBS Line Construction tests: Per PBS JIT Paragraph B-3-Trip Trade tests: Per Trip Trade JIT. The structure and timeline for submitting seniority-based rundown requests and time stamp rundown requests that is currently in use, will be the first test. 7