This information is no longer current - it is for reference only. It is an archive review of events that took place during United Airline's Chapter 11 Bankruptcy from December 9, 2002 - February 1, 2006.

Agreement Q&As: August 18, 2003

Page updated: August 18, 2003

1. Is it true that the bankruptcy court could only impose changes
to our Contract during the time United is in bankruptcy?

No. The bankruptcy court would impose permanent changes to our Contract as contemplated in United’s 1113(c) term sheet. Remember, United’s
1113(c) term sheet contemplates a six year duration.

2. What is the Preferential Bidding System (PBS) and when will it
be implemented?

A Preferential Bidding System (PBS) would involve a significant change to the way we bid monthly schedules. Whereas we currently bid on lines of flying, a preferential bidding system, in its simplest form, contemplates bidding for IDs assigned to a specific domicile and/or days on or off. Ultimately, it is a computer based program that creates individual lines based on your preferences. Some of our competitors currently use Preferential Bidding Systems and, depending on whom you talk to, either love it or hate it.

In contract negotiations with ALPA in 2000, the Company and ALPA agreed to implement a similar system and have been working with a company called AD-OPT. Pilots are not currently using a preferential bidding system, but will continue to work towards its implementation.

Implementation of a Preferential Bidding System for Flight Attendants is not expected to occur any time soon because of the complexity of the technical requirements for a work group of our size and our aircraft schedule. In fact, the technology does not exist today. The specific details as to how the system will work have not been set up but AFA has negotiated language to ensure our recommendations are incorporated into the development of the program from the earliest phases. Our tentative agreement requires that the Company, AFA, and the vendor (Ad-Opt) mutually agree upon the final product.

The Company believes that a Preferential Bidding System will reduce the printing costs and manpower hours associated with building the monthly schedules, as well as shorten the time frame for producing schedules to allow for a more accurate flight and schedule planning.

3. What is the wage rate from which we would be taking a 9% cut?
In May of 2002 we were awarded a 5.49% increase due to a Wage Arbitration award that was retroactive to 4/1/02. This wage rate is not reflected in your personal copy of the current contract, but it is considered the book rate. This is the wage rate from which the 9% cut would be taken.

4. Will I continue to move through the pay scale throughout the
tentative six year agreement?

Yes. The tentative agreement does not change any Flight Attendant's right to receive seniority wage raises. Remember that these raises halt after the cap of 14 years of service, which is the case with both the current and tentative agreement.

5. How will vacation overlap change if this agreement is ratified?
The tentative agreement provides a major change to the way our vacations would be paid. For the rest of 2003, beginning with the June schedule, we would only be paid for the trip time that falls inside the vacation days. For instance, if your vacation was June 1 - 7 with an ID departing on the 7th, you would only be paid for the time on the 7th, not the overlap, and your line guarantee will be reduced by the time in the trip outside of your vacation days. If the reduction puts you below 65 hours, you will be paid the 65-hour guarantee.

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