Collective Bargaining Agreement

2012-2016

Cross Over Hiring

LETTER OF AGREEMENT
BETWEEN
UNITED AIRLINES, INC.
AND
THE FLIGHT ATTENDANTS
IN THE SERVICE OF
UNITED AIR LINES, INC.
AS REPRESENTED BY
ASSOCIATION OF FLIGHT ATTENDANTS-CWA

CROSS OVER HIRING

THIS LETTER OF AGREEMENT, dated February 28, 2012, is made and entered into in accordance with the Railway Labor Act, 45 U.S.C. § 151, et seq. ("RLA") by and between UNITED AIR LINES, INC. ("s-UA"), and the Flight Attendants in the service of s-UA as represented by the ASSOCIATION OF FLIGHT ATTENDANTS-CWA ("AFA").

WHEREAS, the Parties desire to provide for the reasonable and orderly adjustment to staffing resulting from deliveries of aircraft and expansion of flying at CONTINENTAL AIRLINES, INC. ("s-CO"), and for the maximum opportunity for Flight Attendants who wish to work to be able to do so; and

WHEREAS, the Parties recognize that the need for this staffing program will be temporary, lasting only until the operational merger and associated integration of the Flight Attendant workforce are completed; and

WHEREAS, the Parties wish to provide options for Flight Attendants in such circumstances and to mitigate the potential impact resulting from necessary staffing adjustments; and

WHEREAS, the Parties wish to provide these work opportunities in a manner that ensures that Flight Attendant seniority is not impacted for purposes of seniority integration at the combined carrier;

NOW, THEREFORE, the Parties hereby agree as follows:

1. APPLICABILITY
   Flight Attendants at s-UA may elect, on a one-time basis, to cross over to s-CO as provided for below. Flight Attendants wishing to do so must make that election in the manner indicated by s-CO and s-UA (collectively, "the Companies"). The Companies shall grant the elections to the most senior Flight Attendants requesting them, provided that no particular number of Flight Attendants will be transferred, and provided further that the total number of cross over transfers pursuant to this Agreement shall not be greater than, in the Companies' sole judgment, they deem advisable to adjust Flight Attendant staffing at the Companies.
2. CROSS OVER TO S-CO
   
   
   1. All s-UA Flight Attendants will be provided a one-time opportunity to elect to cross over to s-CO pursuant to the terms of this Letter of Agreement in such manner as the Companies may direct. Bidding for cross over to s-CO will open the day after the signing of a new Collective Agreement and will close thirty days later. Crossovers will be awarded the day following bid closure. An s-UA Flight Attendant who bids for and is awarded a cross over will have a one-time opportunity to revoke such bid no later than ten days after the award of the cross over.
   2. Cross over to s-CO will be subject to satisfaction of the terms of paragraph A. above, successful completion of any necessary s-CO Flight Attendant training, no pending disqualifying actions that would prevent the Flight Attendant from flying (e.g., unresolved drug test or other FAA matter, unresolved termination action, etc.) and possession of legal qualification to fly to all of s-CO's destinations.
   3. This opportunity shall be open to all s-UA Flight Attendants regardless of whether they are currently working or not, provided that they are ready, willing and able to work.
   4. Participation in cross over is completely voluntary. Flight Attendants electing not to participate shall retain all of their current employment rights and entitlements at s-UA without prejudice resulting from such election.
   5. Transition to s-CO will be irrevocable if revocation is not exercised within ten days of the cross over award, except if a transitioned Flight Attendant is furloughed involuntarily from s-CO, in which case she/he shall have the right to terminate employment at s-CO and return to s-UA. A Flight Attendant who terminates her/his transition pursuant to this paragraph, will return to s-UA to flying status only if there are no s-UA Flight Attendants on furlough and there are s-UA vacancies. If s-UA Flight Attendants are on furlough the returning Flight Attendant will return to s-UA to either voluntary or involuntary furlough status depending on what her/his s-UA seniority holds. If there are no s-UA Flight Attendants on furlough but there are no s-UA vacancies, the returning Flight Attendant will be placed on Section 23.B. Special Leave of Absence, except with medical and dental benefits and pass travel privileges for the duration of the Special Leave of Absence on the same terms and conditions as an active Flight Attendant. Any Flight Attendant who has elected to cross over to s-CO, has been awarded a position at s-CO, and who subsequently fails to report shall be treated as a s-CO Flight Attendant who fails to report for duty in the circumstances.
   6. Except as otherwise expressly provided in this Letter of Agreement, the employment of Flight Attendants on or after the date of their report for s-CO training will in all respects be governed by the terms and conditions of the s-CO/AFA Collective Bargaining Agreement ("CO/AFA CBA").
   7. Subject to Federal Aviation Administration ("FAA") approval, s-CO training shall be transition training as determined by s-CO, conducted in accordance with its normal practice for such training. Vacancies will be staffed as they become available in bid seniority order as described in paragraph C below.
3. SENIORITY
   
   
   1. Effective thirty-two days after date of signing of the new Collective Agreement, the s-UA Flight Attendants on the cross over list will be put on s-CO payroll in the same relative seniority as they appear on the s-UA system seniority list.
   2. S-CO vacancies are anticipated in Newark and Houston. Cross over Flight Attendants will be able to preference Newark or Houston, and those preferences will be honored in bid seniority order unless and until all vacancies are filled at a base. Cross over Flight Attendants who are not assigned to their preferenced base will have an immediate right to place a transfer request on file.
   3. Cross over Flight Attendants will use their retained s-UA service credit for purposes of s-CO benefit programs eligibility and accrual rates (including pass travel and jumpseating), except that they will not receive Credited Service under the s-CO Retirement Plan ("CARP" or "Plan") for prior service periods. Cross over Flight Attendants will, however, receive credit for prior s-UA service for purposes of CARP vesting service. (Credited Service under CARP shall begin to accrue on the first date s-CO wages are due, and shall thereafter be subject to the terms of that Plan.)
   4. Cross over Flight Attendants will remain on the seniority list at s-UA, and will retain and accrue such seniority while employed at s-CO, it being the Parties' intent that this Agreement shall have absolutely no impact or effect, positive or negative, on the eventual integration of Flight Attendant seniority lists in connection with the merger.
   5. Seniority and related matters following completion of all of the events described in paragraph E will be determined solely and entirely by the processes described therein, it being the Parties' intent that this Agreement provide work for current s-UA Flight Attendants but not impact or affect those processes either positively or negatively for any Flight Attendant.
4. TERMS AND CONDITIONS
   
   
   1. There will be no probationary period at CO.
   2. Work records for transitioning Flight Attendants will be transferred to s-CO and will thereafter be treated as s-CO work records.
   3. Cross over Flight Attendants shall use their retained s-UA service credit for purposes of pay and benefit accrual rates. For example, a cross over Flight Attendant entitled to receive pay at the seventh (7th) year rate in 2012 will be paid $36.06/hr and receive fourteen (14) days of vacation without FLEX, while a Flight Attendant in her eleventh (11th) year will be paid $42.71/hr and receive twenty-one (21) days of vacation unless she/he exercises the FLEX option. Existing sick leave and accrued but unused vacation for cross over Flight Attendants shall be retained for use at s-CO, but prospective use shall be subject to the terms and conditions of the CO/AFA CBA, and all prospective benefit accruals shall be pursuant to the CO/AFA CBA and applied according to its terms, as provided for similarly-situated CO Flight Attendants, except as otherwise expressly provided herein.
   4. S-CO training will begin on a date designated by s-CO, unless deferred by mutual agreement of the affected Flight Attendant and s-CO. Flight Attendants will be required to complete training as established and scheduled by s-CO.
   5. During s-CO training, Flight Attendants will be paid eighty-three hours (83:00) per month, prorated for any portion of a month, at the s-CO rate of pay determined pursuant to Exhibits below, and shall be provided hotel accommodations and expenses during such training in accordance with s-CO's normal practice.
   6. Upon the completion of s-CO training cross over Flight Attendants will receive a new initial s-CO uniform at no cost, and a lump sum cash payment of $2,500 to help defray some of the expenses that may be expected to be incurred in connection with this program.
   7. Cross over Flight Attendants will participate in s-CO health and welfare plans for calendar year 2013, and will participate in the annual elections along with other s-CO co-workers. Current health and welfare elections and participation will continue through the end of 2012 at which time eligibility for s-UA health and welfare benefits will cease.
   8. It is the Companies' intention to align and merge the benefit plans available to co-workers at the subsidiary operations, including but not limited to the defined contribution 401(k) retirement plans. Until the plans are merged, cross over Flight Attendants will maintain current 401(k) balances in the s-UA 401(k) plan, while future employee contributions during employment at s-CO will be deposited in the s-CO 401(k) plan. Cross over Flight Attendants will receive employer contributions to the s-CO 401(k) plan in accordance with the CO/AFA CBA.
   9. Cross over Flight Attendants will elect either to be paid (calculated using their current pay rate at s-UA) for accrued but unused vacation, or to select from open time 2012 vacation periods.
   10. Cross over Flight Attendants shall be entitled to fee-waived positive space travel between their new s-CO base and their prior s-UA base on any Company operated flight for ninety (90) days following their graduation from s-CO training for themselves and fee-waived space available travel for the members of their immediate family (i.e., spouse and children) for the same period. Flight Attendants and their immediate family members utilizing this entitlement may not declare themselves, and will not be regarded as, must ride travelers.
5. DURATION
   
   This Agreement shall become effective upon signing, and shall terminate and cease to have any further force or effect when the operational merger of s-CO and s-UA has been completed and the following events have occurred: (1) the Parties have successfully negotiated a Joint Collective Bargaining Agreement governing the employment of all Flight Attendants on the merged system and that agreement has been ratified; and (2) a final and binding, merged Flight Attendant seniority list has been determined and implemented.

AGREED, this 28th day of February, 2012.

EXHIBITS to CROSS-OVER LETTER OF AGREEMENT