DL141 Messenger Special 2012

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Contracts are part of everyday life Why management is dead set against a contract with public contact employees (even though every airline executive has one)

SPECIAL PUBLIC CONTAC T EMPLOYEE EDITION

Workers at the world’s most respected airlines choose IAM Contracts

Official Publication of District 141­ International Association of Machinists and Aerospace Workers Editor-in-Chief—Rich Delaney Executive Editor—Dave Atkinson Managing Editor, Layout & Design, District 141 Communication Director—Mike Mancini District 141 Communication Coordinator—Dave Lehive Send Address Changes To: IAMAW District Lodge 141 Financial Office, P.O. Box 117399 Burlingame, CA 94011-7399 Phone: 847-640-2222 2

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Contract Class In Session

ment cannot deny any IAM covered employee the rights and

A SSE SSM EN T O F T H E I N T ER NAT I O NA L A SS O CIAT I O N O F MACHINISTS AND AEROSPACE WORKERS CONTRACT AND THE FLY-TO-WIN HANDBOOK FOR AIRPORT OPERATIONS AGENTS

can deny an employee the rights and benefits found in the

benefits contained in the IAM Contract, but management Fly-to-Win Handbook. The IAM Contract can be enforced in

January 2, 2012—Final Report by Hans R. Isakson, Ph.D.*

a court of law because it is a legally binding contract, but the

212 Damascus Drive, Cedar Falls, IA 50613 (319) 266-95648

Fly-to-Win Handbook is not a legally binding contract. The Fly-

*Professor of Economics, University of Northern Iowa,

to-Win Handbook merely explains the rights and benefits that

Cedar Falls, IA 50614-0129 (319) 273-2950

the airline intends to provide to employees. The IAM Contract

The merger of United and Continental Airlines has created an opportunity for Passenger Service employees of both

explains the rights and benefits that the airline must provide to employees.

airlines to elect the International Association of Machinists

So, no matter how generous the rights and benefits found in

and Aerospace Workers (IAM) to represent them in an upcom-

the Fly-to-Win Handbook might appear, management can take

ing representation election, governed by the Railway Labor

them away at will. In short, the rights and benefits found in the

Act and the National Mediation Board. It may be difficult for

Fly-to-Win Handbook will persist after the merger at the good

Continental employees to make this decision, because doing

will of management. But, the rights and benefits found in the

so requires a careful comparison of the wages, benefits, and

IAM Contract can only be changed by management bargain-

job rights provided by joining the IAM, to the wages, benefits,

ing those changes with the IAM union.

and job rights provided by remaining non-union. The purpose

In the current economic conditions, airline companies are

of this report is to provide this comparison.

struggling. When the company seeks costs savings to remain

In addition to comparing the IAM Contract to the Fly-to-Win

economically viable, the easiest place to cut is in management

Handbook (revised March 1, 2011), this report also compares

and/or employee wages. Because so many of United’s workers

key financial measures of United and Continental Airlines just

are unionized, United has been less able to cut employee wag-

prior to their merger. These financial measures provide an

es than Continental. In 2009, management salaries ate up 37

excellent basis for comparing the operations of both airlines

percent of Continental’s operating revenues, while at United,

just prior to their merger. They are drawn from the U.S. Securi-

management salaries used up only 15 percent of its operating

ties and Exchange Commission and Bureau of Transportation

revenues. During the same year (2009), an employees’ average

Statistics for the year 2009. The financial measures include

annual wages at United were $58,239, while at Continental

management’s salary as a percentage of operating revenue,

they were only $56,799. To a large extent, the higher payments

average employee wages, and average employee benefits.

to management and lower employee salaries at Continental

Table 1, “The Report Card,” compares the features of the IAM

were due to the fact that United’s employees are more heavily

Contract with those of the Fly-to-Win Handbook by assigning

unionized than Continental’s employees. Clearly, the protec-

a letter grade to each. Figure 1 contains a comparison of the

tion of job rights under the IAM Contract is vastly superior to

financial measures for each airline just prior to their merger

the protections provided by the Fly-to-Win Handbook.

(2009). Each of the major points of comparison is discussed

Base Pay and Shift Differentials

with greater detail below.

The wage rates under the IAM Contract and Fly-to-Win Hand-

Protection of Job Rights

book are summarized in Table 1. Overall, neither set of wage

The protection of job rights is the single most important point

rates is very rewarding, but the Fly-to-Win Handbook wages

of comparison between the IAM Contract and the Fly-to-Win

are slightly higher than those found in the IAM Contract.

Handbook. In this area, the IAM Contract earns a grade of A+,

However, future, as well as current wage rates are important.

while the Fly-to-Win Handbook gets a grade of F. Management

Because management must negotiate with the IAM regarding

cannot unilaterally change the IAM Contract, but management

future wage rates and because management solely determines

can change the Fly-to-Win Handbook at any time. Manage-

wage rates for non-union workers, the long term wage rates for

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I N T ’ L A S S O C I A T I O N O F M A C H I N I S T S 3

unionized workers is far better than for non-unionized workers.

However, when it comes to overtime distribution, the IAM

Moreover, in virtually all industries, the wage rates of unionized

Contract vastly exceeds the Fly-to-Win Handbook. Unfortu-

workers are almost always higher than the wage rates for non-

nately, the Fly-to-Win Handbook gives first choice of overtime

union workers. According to the U.S. Bureau of Labor Statistics

work to employees willing to accept straight time pay. The

(2010), unionized workers earn 28 percent higher wages than

IAM Contract requires any employee who works overtime to

non-union workers in the transportation and warehousing sec-

receive (1) time and one-half (over eight, up to twelve hours) or

tor. So, although the IAM wage rates are slightly below those

(2) double-time (over twelve hours) pay.

in the Continental Handbook, the IAM wage rates should soon

Overtime bypass payments are also important. The IAM Con-

surpass those provided by the Fly-to-Win Handbook.

tract requires payment to employees who are passed over for

Shift differentials can constitute an important part of any

overtime to be paid at the appropriate rate (straight time, time

worker’s compensation. The IAM Contract provides more

and one-half, or double time). Instead of extra compensation,

generous shift differentials than the Fly-to-Win Handbook.

the Fly-to-Win Handbook only offers preferential treatment

These differentials can make it possible for an employee repre-

to employees unjustly passed over for overtime assignment.

sented by the IAM to earn as much as 5.7 percent more, simply

For example, if the bypassed overtime opportunity is on an

by working the “graveyard” shift. For newer employees, the

employee’s day off, the IAM Contract requires the company to

more generous shift differential provided by the IAM Contract

make full restitution for the bypassed overtime. The Fly-to-Win

should be highly valued.

Handbook contains no such provisions.

Overtime

Holidays and Vacations

Overtime represents another important part of the compensa-

Both the IAM Contract and the Fly-to-Win Handbook provide

tion package. Overtime rates and rules can be very important

eight paid holidays per year. But, the IAM Contract specifies

to many employees, especially as airline companies attempt to

five of these holidays as floating holidays, while the Fly-to-Win

cut costs by increasing the work load of employees.

Handbook only allows employees two floating holidays. The

Both the IAM Contract and the Fly-to-Win Handbook contain

greater number of floating holidays in the IAM Contract is

provisions for overtime compensation. The IAM Contract

more generous and provides greater flexibility for employees

provides a better overtime rate than the Fly-to-Win Handbook.

in the Passenger Service Classification.

Both provide time and one-half beyond an eight hour shift.

Vacation days provided by the IAM Contract are better than

But, for overtime work beyond twelve hours, the IAM Contract

those provided by the Fly-to-Win Handbook. Under the IAM

provides double-time compensation, while the Fly-to-Win

Contract, it takes employees one-year to earn two weeks of

Handbook provides only time and one-half compensation.

vacation time; the Fly-to-Win Handbook requires employees to

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work for four years before earning two weeks of vacation time.

the seniority of an employee who takes an extended leave

In addition, the IAM Contract provides employees up to six

of absence is adjusted downward by any leave exceeding 90

weeks of vacation time (after 29 years), while the maximum va-

days. The IAM Contract is much more restrictive. For example,

cation time provided by the Fly-to-Win Handbook is five weeks.

if two employees take leave for 91 days for the same reason,

Recall Rights

the employee under the Fly-to-Win Handbook loses one

Both the IAM Contract and the Fly-to-Win Handbook provide employees who lose their jobs due to a reduction in force the right to be called back to work, before the company can hire new employees. However, the recall rights provided by the

day of seniority, while the employee under the IAM Contract retains his or her full seniority. Even one day of lost seniority can have serious consequences on shifts, vacation, and job protection rights.

Fly-to-Win Handbook expire after the lesser of six years or the

Bargaining Power

employee’s length of service. The recall rights provided by the

The Handbook designates all employees as “at-will” workers.

IAM Contract have no time limit. Employees with less than six

At-will workers can be dismissed at any time for any reason

years of service will find the IAM Contract recall rights vastly

that does not violate state/federal laws. At-will workers have

superior to those of the Fly-to-Win Handbook.

the right to quit at any time for any reason. The only bargain-

Overall Benefits

ing power that at-will employees have is provided by the

Both the IAM Contract and the Fly-to-Win Handbook provide employees with an array of benefits, such as health and dental insurance. Both provide employees with multiple plans from which to choose, so it is difficult to make one-to-one comparisons. However, the average value of these benefits per

market place (the right of workers to quit and go to work elsewhere or not to work at all). So, the bargaining power of at-will employees is inversely related to unemployment. When unemployment is high, at-will workers have very little bargaining power, and vice versa.

employee at United and Continental Airlines can be compared

Federal labor law requires management to bargain with

using data from just before their merger. According to the Bu-

employee unions in good faith. Employees covered by the IAM

reau of Transportation Statistics for 2009, the average value of

Contract have vastly more bargaining power than employees

benefits provided to employees at United Airlines was $22,479,

covered by the Handbook. The greater bargaining power of

while the average value of benefits provided to employees

the IAM is revealed by the share of operating revenues that go

at Continental Airlines was only $19,854. The greater benefits

to management and the average wages of employees at Unit-

at United were largely due to the greater representation of

ed and Continental Airlines just prior to their merger, as shown

employees by unions.

in Figure 1. Management at Continental pay themselves nearly

When benefits start for newly hired employees is one area where direct comparisons are easy to make. The IAM Contract requires benefits to start on the date hired. Employees covered by the Fly-to-Win Handbook have to wait six to nine months for their benefits to start.

Another easy point of comparison is the availability of health insurance to employees who retire prior to being eligible to join Medicare. The IAM Contract requires this coverage with the premium based on years of service. Unfortunately, the Flyto-Win Handbook is silent on this important point.

Adjusted Seniority

two and one-half times what management at United receives, while employees at United enjoy average wages that are two and one-half percent higher than employees at Continental.

The higher average wages at United are largely due to the greater bargaining power of IAM employees.

Due to the IAM’s bargaining power, management will take extraordinary measures to dissuade Continental employees from voting in favor of being represented by the IAM. Although the days of management’s hired thugs wielding baseball bats are over, management has discovered other very clever methods to block unions, such as propaganda that presents misinformation and twisted facts that puts the IAM in

Passenger Service employees are also concerned with the

a bad light. Management can also be very clever in developing

protection of their seniority. Under the Fly-to-Win Handbook,

propaganda that presents them in a good light. For example,

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I N T ’ L A S S O C I A T I O N O F M A C H I N I S T S 5

management might claim that the Handbook constitutes a

EIT can suggest changes, but management is not obligated to

near or quasi contract. Indeed, the Handbook is organized very

adopt these changes. Management can totally disregard the

much like the IAM contract. Even some of the elements of the

EIT, if it wishes. The only way that a group of employees can

Handbook, such as the EIT (Employee Involvement Team) and

have the authority of a union is to go through the very formal

appeal procedures, appear on the surface to be very similar

process of becoming a union and be recognized by the U.S.

to provisions in the IAM Contract. But, make no mistake about

Department of Labor as a labor union. The EIT has never been

it, the Handbook is NOT a labor contract; it is a statement of

recognized by the U.S. Department of Labor as a labor union.

management’s policies and procedures, and management can

Overall Assessment

change its policies and procedures at any time. For example, management has the authority to change any part, including the appeal procedures, of the Fly-to-Win Handbook at any time.

In all but one area (base pay), the IAM Contract provides employees better compensation and benefits. But, because IAM represented employees have so much more bargaining power than employees represented by the Fly-to-Win Handbook, in

The Fly-to-Win Handbook is designed to protect management

the near future, IAM represented employees’ base pay rate will

by discouraging employees from filing civil law suites against

most likely overcome and surpass the base pay schedule pro-

the company. Passenger Service employees should be highly

vided by the Fly-to-Win Handbook. There is very little doubt

concerned with the following sentence

that over the course of their career with

found in the Fly-to-Win Handbook: “Team

the company, employees represented by

members are employed at-will and agree to look to the appeal policies contained in this handbook as the sole remedy for any dispute and understand that the results of the appeal policy shall be final and bind-

The bottom line is, “Do you want a B average contract or a D+ average handbook?”

—Prof. Isakson, Ph. D.

ing on both the team member and the company.” At first glance, the “binding”

the IAM Contract will be far better off in terms of compensation and benefits than workers under the Fly-to-Win Handbook.

The overall grade point average for the IAM Contract is 3.38 or a solid B, while the grade point average for the Fly-to-Win Handbook is 1 .84 or a D+.

aspect of this appeal process seems fair,

The fact that the IAM Contract out

but it in fact is not fair. The company picks and pays for the arbitrator who decides the appeal. The company can easily hire only arbitrators who are highly pro-management and never hire arbitrators who are fair.

So, even though the Fly-to-Win Handbook is organized to look like a labor agreement with many of the topics typically covered by a labor agreement, the Fly-to-Win Handbook is NOT a labor agreement. It is a statement of management’s current policies and procedures that management can unilaterally change at any time. Passenger Service employees do not have

performs the Fly-to-Win Handbook will not go unnoticed by management. In all likelihood, management will take very strong measures to prevent employees from choosing to be represented by the IAM. The amount of management effort to dissuade employees from being represented by the IAM is a good indicator of the degree with which the IAM Contract out performs the Fly-to-Win Handbook. From management’s perspective, a workforce under the Fly-to-Win Handbook means more money for management, while a workforce represented

the power to say “no” to changes in the Fly-to-Win Handbook

by the IAM means less money for management. Although the

that management wants to implement.

economics are very simple, management will take great pains

The Handbook mentions that management will consult with the EIT when it wishes to change the Handbook. On the surface, the EIT looks like a union. But, of course, the EIT is not a union. The Handbook clearly states, “The Senior Vice-President

to cloud the issues using various misinformation tactics. The wise employee will vote with his or her pocketbook and insist upon self-preservation. Employees who vote against representation by the IAM risk losing many of their benefits.

Airport Operations and the Executive Vice-President of Human

The bottom line is quite simple. Do you want a B average con-

Resources must approve [any] changes” to the Handbook. The

tract or a D+ average handbook?

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The Report Card Table 1—Summary of Key Differences between the lAM Contract and Fly-to-Win Handbook Feature lAM Contract Fly-to-Win Handbook

lAM Handbook Grade Grade

Protection of Job Rights

Enforceable union Contract

Good will of management

A + F

Base Pay

$9.99/hr to $21.40/hr

$10.66/hr to $21.75/hr

C –

Shift Differential

$.48 to $.57

$.12 to $.13

B C

Duration of Shifts

No more than 10 hours

Up to 14 hours

B +

C+

Overtime Pay

Time & one-half after

Time & one-half after

B +

C–

8-hour or 10-hour shift;

8 hour shift

Double time for hours beyond

12 hours

Overtime Distribution

Employees with least amount

Voluntary: Employees willing

A

D+

of accumulated overtime

to receive straight time

get first choice

get first choice

A

D–

C+

Mandatory: Assigned in

reverse bid seniority

Overtime Bypass Payment

Applicable rate for

No payment;

hours bypassed

preference treatment

Holidays

3 fixed plus 5 floating

6 fixed plus 2 floating

A C

Vacation

Up to 1 week in first year

Up to 1 week in first year

A B

2 weeks after I year

2 weeks after 4 years

3 weeks after 9 years

3 weeks after 9 years

4 weeks after 16 years

4 weeks after 16 years

5 weeks after 24 years

5 weeks after 24 years

6 weeks after 29 years

Recall rights after layoff

No time limit

Lesser of 6 years or

A

C–

employees length of service

Performance Incentive

0.5% to 2.0% of all wages

On-Time Monthly Bonuses

A B

Program

based on company performance

Adjusted Seniority

No in-class seniority adjustment

Pay seniority and bid seniority

A B

reduced by length of leave

of absences

Benefits Start

Date hired

6 to 9 months after date hired

A

Post-retirement,

Covered, premium based on

Not addressed

B + D

pre-Medicare coverage

years of service

Grade Point Average

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B

C–

D+

I N T ’ L A S S O C I A T I O N O F M A C H I N I S T S 7

We never outgrow our need for security.

An IAM Contract IS security.

America’s most trusted professionals have a union contract

They can’t all be wrong

Fly-to-win is easily changed An IAM contract is proposed,

negotiated, and approved by Members

The IAM Pension Plan is funded and reliable • If you vote out your union, management has no contractual obligtion to fund your IAM Pension Plan • CARP (Continental Airlines Retirement Plan) can be frozen by management for any reason, at any time

Worth risking?

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Vote as soon as instructions arrive.

I N T ’ L A S S O C I A T I O N O F M A C H I N I S T S 9

Airline executives Smisek, Lorenzo, Tilton, Parker, Horton, and Wolf all work under an employment contract.

But United management doesn’t want you to have one.

coun·cil (kounsl) —noun

If you chose that alternative, be prepared to get an ear full of

An assembly of persons called together for consultation,

buzzwords instead of real answers.

deliberation, or discussion

When you attend an employee council meeting, and ask for a

con·tract (kän-trakt) —noun

raise, “Sorry, we have to Fund-the-Future.”

A written legal agreement between two people or businesses that says what each must do for the other

When you ask, “Why do I have to pay so much for insurance,” the answer is “Sorry, we have to compete with low cost carriers.”

The management-run council will capture every thought, and

The choice is simple

will get back to you as soon as they can.

Do you want to work with a contract or with a council?

They are not merely alternative vehicles for dealing with em-

In your own words, on the video wall.

ployees. The difference is found in every dictionary.

The reason that the employee council choice is only available to Customer Service is because the other 80 percent of employees at the “new United,” including Jeff Smisek, have a legal and binding contract.

The people publishing “above the wing” are paid professionals, attempting to sell you on an alternative.

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Promises Become Sacrifices at non-union airline Dave Lehive, District 141 Communications Coordinator, has a message for anyone contemplating becoming a non-union employee.

“Don’t believe anything management tells you,” Lehive said. “I

Lehive said the way the carrier furloughed employees clearly illustrated the need for a union.

“The company basically picked and chose who, when and where it would conduct its layoffs,” Lehive said. “Workers had no voice and therefore nothing they could do about it.”

While the employee’s pay and benefits were being cut, Lehive

know from my own experience that their promises are a crock.”

noted, executives were getting huge bonuses.

Lehive began his career in 1985 with non-union Piedmont Airlines.

“Isn’t that typical?” he asked, rhetorically. “Executives make

“I was a union activist from almost the day I walked in the door,” he said. “Based on what I observed, I could see there was a definite need for representation.”

more money on the backs of the working people they lay off.”

In 1993, three unions vied to represent the carrier’s employees: United Steelworkers, the International Association of Machinists and Aerospace Workers and the Teamsters.

In 1988, Piedmont merged with US Airways, a union carrier.

“The Teamsters came in dead last,” he said. “That precipitated

The merger triggered a representation election and a cam-

a runoff between the Steelworkers and the IAM who won in

paign by the airline’s management to “promise the sky” to

1994 because of their strength in numbers. US Airways Fleet

make the newly-merged carrier non-union.

Service members have been union ever since.

“Management promised us all sorts of things,” he said. “They said they would ‘take care of us.’ And because they wouldn’t have to negotiate with a union, they said they would give us more money than we could earn with a union contract.”

“Employees who

are unrepresented will be taken advantage of.”

“Having union representation changed everything,” Lehive said. “No longer were employees considered ‘at will.’ The company could no longer do things unilaterally. We had a contract that management had to honor, enforceable in a court of law.”

Lehive noted that the carrier’s executives have their own binding contracts.

The employees voted not to go with a union.

But the company’s interference in the election voided the

“Working under a union contract gives us guaranteed rights

results. A second election was held later that year.

collectively and prevents management from doing the kind

“Unfortunately, the employees voted against the union again,” Lehive said, “and we were prohibited from having another

of things I personally witnessed when Piedmont merged with USAir,” he said.

Lehive noted that the IAM already represents almost all of the

union election for a year. That’s when management really

workers under contract at United, including employees at the

went to town.”

Ramp, PCE, Reservations, Stock Clerks, Fleet Tech Instructors,

Shortly after the second election, the company began to cut jobs by closing down stations along the West Coast, unilater-

Food Service, Maintenance Instructors and Security Officers.

“All of this makes a strong case that the IAM should represent all of these employees after United’s merger with Continental,”

ally furloughing employees in the process.

Lehive said.

“That wasn’t all,” Lehive said. “They froze the pension plan, took away our shift premium pay, began contracting out work

“If there is anything we can learn from my own experience and from the experiences of others who have worked non-union in

and changed our vacation plan to a ‘paid days off’ policy. That

any industry, it is that employees who are unrepresented will

meant you couldn’t get the days off you wanted.”

be taken advantage of. It’s just that simple.”

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I N T ’ L A S S O C I A T I O N O F M A C H I N I S T S 11

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I N T ’ L A S S O C I A T I O N O F M A C H I N I S T S 13

Contract, handbook: Side-by-Side The IAM Contract compared to the Fly-to-win handbook IAM CONTRACT Probationary Period

Fly-to-win handbook

Six months, up to a maximum of 210 days (seven months) from date of hire or transfer.

Six months, up to a maximum of nine months.

During probation:

During probation:

Agent is eligible for Shift Differential, Health Insurance, Holiday pay, and Occupational Sick Time.

No Medical Benefits

Probationary Period

Trades are allowed as long as scheduled hours are maintained.

Agent is not eligible for Shift Differential, Holiday Pay, or Occupational Sick Time.

May go below hours with management approval.

Trades are limited to pickup hours only, after 30 days, and to give up hours after 90 days.

IAM CONTRACT Hours of Work

Fly-to-win handbook

Shifts—Full-Time

Shifts—Full-Time

Full-time shifts are forty hours per week, with no more than ten consecutive hours per day, exclusive of a thirty minute meal period.

Any hours after this would be overtime.

Full-time shifts are forty hours per week. No employee may work more than thirteen hours per day, excluding lunch period.

Normal schedule is five consecutive work days followed by two days off, except relief shifts. Alternate schedules, including a ten-hour four-day week, may be approved by a local director for operational purposes.

Shifts—Part Time

Shifts—Part-Time

Part-time shifts will be scheduled a minimum of sixteen, and a maximum of thirty hours per week.

Part-time shifts will be twenty hours per week minimum, and either twenty-five hours (hired prior to 7/93), or thirty hours (hired 7/93 or after). Employees scheduled for more than five hours will have a thirty minute unpaid meal period.

Hours of Work

Scheduled shifts to be five eight-hour days, or four ten-hour days.

A shift will be a minimum of four hours per day, and a maximum of ten hours per day, exclusive of a thirty minute meal period for those who work In excess of 4.5 hours.

Breaks

Breaks

Employees who work four hours or more will have one rest period.

Employees will be given one break during each one-half of an eight- or ten-hour shift.

Employees who work more than six hours will have two rest periods.

Part-time employees will be given one break per scheduled shift of less than eight hours.

An additional rest period is given for every additional four hours of work.

If splitting a shift results in any shift segment of less than eight hours, the paid break is forfeited.

(This formula results in three breaks for ten-hour shifts)

(This formula results in two breaks for ten-hour shifts, instead of three).

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IAM CONTRACT Meal periods

Fly-to-win handbook

Meal periods will be scheduled by mutual agreement, on a local basis, as close to the mid-point of the shift as practical.

Full-time shifts will schedule a meal period between the third and fifth hour after the start of the shift for eight-hour shifts.

Ten-hour shifts will be scheduled between the fourth and sixth after the start of shift. Part-time employees scheduled for more than five hours in a day will be given an optional unpaid meal period.

No Lunch

No Lunch

If unable to take a meal period due to company requirements, employees scheduled eight hours or more receive one hour of pay at the time-and-one-half rate, and in addition, a paid thirtyminute lunch at straight-time pay. Those scheduled at less than eight hours will receive thirty minutes pay at straight-time rate, and in addition, a paid thirty-minute lunch at straight-time pay.

Employees asked to give up their meal period will have the option (with management approval) to be paid either timeand-one-half for the thirty minute period, or be allowed to leave work early, and be paid straight-time.

Late/Early Lunch

Late/Early Lunch

Employees who are requested to take their meal period, because of requirements of the operation, more than thirty minutes before, or one hour after the their regularly scheduled meal period, will be allowed a thirty-minute meal period as close to regular meal time as possible, and be paid straight-time for the thirtyminute meal time, in addition to their regular compensation.

No compensation is paid if meal period is early or late.

IAM CONTRACT Shift Scheduling

Fly-to-win handbook

Split Shifts

Split Shifts

All hours worked are consecutive.

Split shifts are not allowed.

Must have a minimum of two, and a maximum of four hours between shifts. Minimum hours worked on a segment is two hours. All split shifts will be completed within a twelve-hour period. Will not be utilized for shifts of less than six hours, unless operational needs require.

Flex Shifts

Flex Shifts

Not used.

Each bid may have a certain percentage of Flex Shifts, designated with a four-hour flex window. Start times can be adjusted up to two hours earlier or later, with forty-eight hours notice.

Relief Shifts

Relief Shifts

Seven days notice will be given to employees of changes in their schedule. Work schedules are posted for bid by relief employees.

If changes are necessary, relief shifts will be posted every month for bidding. Relief shifts may change on short notice. If changed, employees should be given notice of at least twentyfour hours before the change. Changes in excess of thirty minutes may be subject to the payment of a relief shift premium (Five dollars per shift for the rest of pay period for which the adjustment is made.)

Meal periods

Scheduling

Scheduling

Shift Scheduling

Any change of one hour or more in start or end time will call for a rebid, except for relief agents.

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I N T ’ L A S S O C I A T I O N O F M A C H I N I S T S 15

IAM CONTRACT Leave of Absence/Extended Illness

Fly-to-win handbook

Employees returning from an authorized leave of absence or extended illness status will be assigned to a shift and days off consistent with their Public Contact Seniority.

Team members transferring, relocating or returning from a leave of absence may be assigned vacant shifts until the next shift bid occurs.

IAM CONTRACT Unpaid Time Off—auto/ANP

Fly-to-win handbook

Advance No Pay (ANP) is covered under local agreements, made between local management and IAM committees. Agreements will only change when both parties agree to changes.

Advance AUTO may be granted up to seventy-two hours in advance, and awarded in seniority order by shift times, work area, and classification. Day of auto will be awarded to those working overtime first, followed by those working a base shift.

IAM CONTRACT Start Times

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There shall be no use of back-to-back part-time shifts to cover staffing needs that could otherwise be a single full-time shift.

Not addressed.

IAM CONTRACT Day and Shift Trades

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To maintain proficiency, local policies will require that employees work a certain number of hours each month.

On a monthly basis, each team member must work a minimum of fifty percent of their scheduled hours.

Provided this requirement is met, employees may one-way trade a minimum of thirty times per calendar quarter.

A trade cannot involve more than three team members. No more than two team members, in addition to the line holder, can work one shift.

Leave of Absence/Extended Illness

Unpaid Time Off—auto/ANP

Start Times

Day and Shift Trades

Two-way Day Trades and two-way Shift Trades will be unlimited Vacation days and holidays may not be traded, nor may any day already part of a trade be taken as a vacation day or holiday.

Additional flexibility in trade policies may be negotiated at the local level between management and the local IAM committee.

Trading may not result in an employee working more than thirteen hours per day, excluding lunch. An employee must have at least eight hours rest between consecutive work days, and at least one day off per pay period.

All hours worked for another employee will be paid at straight time rate, including hours worked on paid holidays.

IAM CONTRACT Overtime

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Overtime opportunities will be offered to those who have accrued the least number of overtime hours, without distinction between full-time, part-time, basic, or premium rates, i.e. straighttime, time-and-one-half, or double-time.

Planned overtime will be offered first to those in Bid Seniority order, and paid at straight-time rate.

Cancelling Overtime

Cancelling Overtime

Allowed

Not Allowed

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Overtime

Generally, the company will not schedule or require an employee to work more than thirteen hours (or 13.5 hours if a lunch is taken).

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IAM CONTRACT Overtime Bypass Pay

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An employee who is bypassed in violation of these overtime distribution procedures shall be paid at the applicable rate.

There is no Overtime Bypass Payment.

Time and a Half

Time and a Half

There is no requirement for full-time employees to work forty hours in a week to receive overtime.

All hours worked at company request in excess of forty in a scheduled work week will qualify for time-and-one-half overtime.

Overtime

Overtime at the time-and-one-half rate shall be paid to all employees for the first four hours of work in excess of eight hours in a twenty-four hour period (or the first two hours in excess of ten hours for a ten-hour shift).

Bypass Pay

When a team member is erroneously bypassed for overtime, the team member will be given the option to work the same number of hours, within the same pay period—to the extent possible.

The work week is seven days, and starts on the first normally scheduled day after an employee’s two consecutive days off.

Full-time employees on their first Regular Day Off (RDO) are paid for the first eight hours worked (or ten hours worked for ten-hour schedules).

Part-time employees are paid time-and-one-half for hours in excess of forty hours In a calendar week, and in excess of 8 hours in a 24 hour period.

Double-Time

Double-Time

Double-time shall be paid to all employees for work in excess of twelve hours in a twenty-four hour period.

None

Full-time employee shall be paid double-time for work on a Regular Day Off (RDO) if any time was worked on any RDO in the same calendar week.

Full-time employees in excess of 8 hour on any RDO (in excess of 10 hours for 10 hour schedules).

Part-time employees are paid double-time for all hours worked on the second RDO, provided the employee has worked forty straight-time hours, and any part of the first RDO was worked at time-and-one-half.

Part-time employees will also be paid double-time when straighttime hours worked plus hours worked on RDO’s exceed fortyeight hours in a work week.

IAM CONTRACT Profit-Sharing 2010

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IAM Members: 5.9 percent

Team members: 3.9 percent

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Profit Sharing 2010

I N T ’ L A S S O C I A T I O N O F M A C H I N I S T S 17

IAM CONTRACT E-Z Hour

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Employees are compensated for one full hour when working less than an hour of overtime immediately before or after their normal shift.

No easy hour.

IAM CONTRACT Shift Differential CSR’s & Reservations

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E-Z Hour

Shift Differential

—Passenger Service ONLY

Afternoon Full-time, 11:00–16:59 Part-time, 19:30–01:29

12:00–19:59 20:00–03:59

$0.48 $0.48

$ 0.12 $ 0.13

Night Shift Full-time, 17:00 –05:59 $0.54 Part-time, start 19:00–05:59

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Shift Differential

$0.54

Rotating and Combo Schedule Day/Afternoon $ 0.53 Night/Day/Afternoon

­—Reservations

NONE

$ 0.57

IAM CONTRACT Relief Shift

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Changes on short notice are not allowed.

Changes on short notice are permitted.

Relief shifts may bid every month, or intervals of three months or longer.

Changes in excess of 30 minutes to a relief shift are subject to a five dollar payment per shift, for each shift worked for the remainder of the pay period.

IAM CONTRACT Seniority

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There are two types of seniority.

There are three types of seniority—Company, Class/Bid, and Pay Seniority.

Company Seniority

Company Seniority

Company Seniority accrues from employee date-of-hire.

In the case of furlough, Company-offered Leave of Absence, Family/Medical Leave, or Unpaid Medical Leave, Company Seniority Stops Accruing After Ninety Days, and only resumes when active service resumes.

Relief Shift

Seniority

Company Seniority does not change in the event of an authorized leave, or a furlough.

Company Seniority shall govern in case of layoff, reemployment after layoff, and vacation.

During educational leave, or personal leave, Company Seniority Stops Accruing After Thirty Days, and does not resume accrual until active service resumes.

Company seniority otherwise accrues from employee date of hire.

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IAM CONTRACT Seniority ... continued

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Seniority

... (Company) continued

Company seniority is used to determine benefits eligibility, vesting in benefits programs, vacation accruals, pass travel, boarding priority, and service awards.

Class Seniority

Class/Bid Seniority

Class seniority governs all employees in preferencing shift or start times, days off, full-time and part-time vacancies, bids within classifications, and the preference of work area assignments.

Class/Bid Seniority is used for shift bids, vacation bids, awarding of overtime and holidays, force reduction and recall from furlough.

Anyone transferring into PCE classifications establish their Class Seniority date on the day they are awarded a vacancy.

Management and non-union employees transferring into the classification carry full Class/Bid Seniority. Union employees transferring in do not keep their seniority. Employees may lose Class/Bid Seniority during leaves and furloughs (see above).

Class Seniority does not change in event of an authorized leave or furlough.

Employees who accept a management position within the company will continue to accrue Class Seniority for six months.

Afterwards, the employee retains but no longer accrues Class Seniority.

Pay Seniority

Pay Seniority

Not used.

Pay Seniority determines the rate of pay on the division pay scale, as well as pay for vacation, sick and occupational injury accruals.

Pay Seniority is defined as company service less any time spent working in any union represented group at Continental Airlines or Continental Micronesia. Time lost through leave or furlough may reduce Pay Seniority (see above).

IAM CONTRACT Vacation

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The calendar year will be used for computing vacation allowances, and scheduling vacations. Vacation is earned and used in hours, and will be paid at the employee’s regular rate of pay in effect at the time the vacation is taken.

On January 1 of each year, all full-time and part-time team members become entitled to paid vacation, the amount of which is dependant upon their company seniority and their active months of service in the prior year.

Vacation Payout When Leaving The Company

Vacation Payout When Leaving The Company

Employees who leave the company, shall be paid for all accrued but unused vacation credit for the preceding calendar year, regardless of the reason for leaving the company.

An employee who leaves the company only will receive payment for any unused vacation days credited from the previous year.

Vacation

In addition, an employee having a full year or more of service with the company at the time of leaving will receive all accrued vacation credit in the current year, up to the end of the month preceding the separation.

I.e., a team member leaves before December 31 this year; There will be no vacation accrual payout in the year of separation unless required by law.

In the event of the death of an employee after one year of service, pay for any unused vacation time will be given to their executor or heirs. iam141.org

I N T ’ L A S S O C I A T I O N O F M A C H I N I S T S 19

IAM CONTRACT Vacation

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Full-Time Vacation Accrual

Full-Time Vacation Accrual

During the first calendar year of employment, a full-time employee will accrue 3-1/3 hours of vacation for each calendar month of active service.

Vacation to be taken in the current year is based on team member full-time or part-time status, completed years of service, and the number of months the team member is actually paid in the previous year.

Vacation

Thereafter, vacation accrual for each full year of active service will be based on the employees length of service, as determined by the employees date of employment as follows:

Team members must be at work, on paid leave (sick or occupational injury), on paid vacation, or on company offered leave of absence for more than one half of a month in order to be considered for vacation accrual purposes. (The actual vacation time lost is based on employee start date.

There are two tables in the F.T.W. handbook which state the actual days lost based on months worked.) Full weeks awarded based on full year worked as follows:

Less than 1 year = 1–8 years = 9–15 years = 16–23 years = 24–28 years = 29 years or more =

1 week 2 weeks 3 weeks 4 weeks 5 weeks 6 weeks

Less than 1 year = 1–4 years = 5–9 years = 10–16 years = 17–24 years = 25 years or more =

“Up to” 1 week (Pro-rated) 1 week 2 weeks 3 weeks 4 weeks 5 weeks

Part-Time Vacation A part time employee will accrue vacation hours based upon length of service, and the ratio of the employee’s scheduled hours to a full-time, forty-hour work week. For purposes of determining a part-time employees scheduled hours, the employee will be credited with the greater of scheduled or actual hours paid, including any ANP time (Authorized No Pay).

Purchased Vacation

Purchased Vacation

You don’t pay for vacation. The company does.

Purchased vacation and/or deferred holidays will be treated as earned vacation for bidding purposes.

Hour-At-A-Time Vacation

Hour-At-A-Time Vacation

Employees are allowed to use DAT time in hourly units, per local agreements.

Use of partial time off is not allowed.

Holiday Conversion

Holiday Conversion

See fixed and floating holidays.

We have three fixed, and five floating holidays.

Team members who work a holiday may elect to defer the holiday for time off at a later date. If the holiday is deferred, the employee is paid time-and-one-half for holiday hours worked.

Straight-time holiday pay is credited to the employee’s vacation fund, at the rate of four hours for part-time employees, and eight hours for full-time employees. A block of five holidays, used together, or up to four individual days, may be deferred.

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IAM CONTRACT Vacation

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Bidding

Bidding

Employees covered by this agreement will be permitted to select their vacation in accordance with Company Seniority.

Team members select their vacation periods based on Class/ Bid Seniority.

Employees with two or more weeks of vacation may elect to split their vacation, and may exercise their seniority for a primary choice of no more than two segments of the split vacation at once. Each scheduled segment must be at least one calendar week. A secondary bid must await the primary bid of junior employees.

Team members may split their vacations into separate periods of no less than one week each. Multiple vacation weeks may be bid in any round if taken consecutively.

Vacation Bid Lists

Vacation Bid lists

Vacation lists shall be compiled for each vacation scheduling group, beginning on November 15 preceding the vacation year, and shall be posted no later than the following January 15.

Local leadership will establish time limits to complete annual vacation bids.

Vacation

Dates may be modified by local agreement between the company and the Union.

Remaining weeks will be bid in subsequent rounds in seniority order.

In all cases, bidding and posting will be completed by November 30, the year before the vacation is taken.

Floating Holidays

Floating Holidays

Floating holidays are defined as holidays that can be observed on a date chosen by the employee, subject to operational needs.

All non-probationary employees are entitled to select one day to be used as time off with pay. (Additional day added in 2011).

Floating holidays and DATS will be awarded with equal priority.

The five floating Holidays are Good Friday, Memorial Day, Labor Day, Presidents Day, and the employee’s birthday.

Compensation will be paid according to status. Full-time is paid eight hours, and part-time four hours.

An employee may observe a maximum of two floating holidays with a vacation week, provided they do so at the time of their vacation bid.

Floating holidays must be taken by December 31 of current year, or forfeited. Requests will be based on operational needs, and seniority.

Pay rates are the same as fixed holidays.

Once granted, the floating holiday may only be cancelled by agreement between the employee and their manager.

Day-At-A-Time Vacation (DAT, DATV)

Day-At-A-Time Vacation (DAT, DATV)

Employees with two or more weeks of vacation may reserve the equivalent of one week of their vacation to be taken as DAT.

Any employee who has at least ten days of paid or unpaid is eligible for DATV. Earned vacation, and deferred holiday vacation will count towards the ten days of vacation to qualify for DATV. Up to fifteen days (three weeks) can be requested for use as DATV, using any of your vacation weeks.

Employees with three or more weeks accrued vacation may reserve the equivalent of two weeks of their vacation to be taken as DAT. DATs may be requested or cancelled by the employee per local Agreements.

Employees bid all of the vacation weeks in the normal manner.

At the time the employee requests DATV, they must designate which vacation block to deduct from.

Once the Employee has designated the week from which all DATV will be deducted, the week cannot be changed. Once approved, DATV must be taken as scheduled.

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I N T ’ L A S S O C I A T I O N O F M A C H I N I S T S 21

IAM CONTRACT Vacation

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Holidays

Holidays

Fixed holidays are defined as holidays that are observed on the actual calendar date of their occurrence.

The following holidays are observed: New Years Day, Memorial Day, July 4, Labor Day, Thanksgiving, and Christmas Day.

Vacation

There are three fixed holidays: New Years Day, Thanksgiving, and Christmas Day. There are five floating holidays: Good Friday, Memorial Day, Labor Day, Presidents’ Day, and the employee’s birthday.

There are two floating holidays (The second floater was added in 2011).

Holiday Hours of Pay

Holiday Hours of Pay

An employee who does not work on a fixed holiday which is a scheduled work day, shall be compensated for the day at their straight-time scheduled hours, and receive no additional time off.

Team members will be paid holiday pay at eight straight-time hours for full time, and only four straight-time hours for parttime.

An employee required to work on any of the holidays shall be compensated at the rate of two times the normal base rate, including shift differential. An employee will be paid straight time for any scheduled hours not worked.

Team members may opt to defer holidays.

Probationary employees do not receive holiday pay or holiday premium pay.

When the holidays fall on a scheduled day off, and the employee does not work, a full-time employee receives eight hours of holiday pay, whether assigned to an eight- or ten-hour schedule.

Holiday pay for a part-time employee is equal to 1/10 of the hours the employee Is scheduled to work in the two week period containing the holiday. Employees are eligible for all holidays that occur after their date of hire.

Probationary employees receive holiday and/or holiday premium pay.

Deferred Holidays

Deferred Holidays

Not addressed.

There are two available plans. Each local office will determine which plan will be followed.

1) Defer a block of five, or none at all or; 2) Defer individual holidays up to a maximum of four.

(Note: Holidays in November and December may not be deferred for individual days.)

Miscellaneous

Miscellaneous

By local agreement

Team members assigned a vacation period must be scheduled to begin vacation following their regular scheduled days off, with a majority of the days off falling in the original week bid.

Unless the team member requests otherwise, and leadership approves, team members will not be called for mando.

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IAM CONTRACT Jury Duty/Civic Duty

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An employee who is called for jury duty will be granted necessary time off to fulfill their responsibilities, in accordance with company policy.

The company recognizes jury duty as a civic responsibility and will release employees for jury duty. The employee will not suffer any loss of pay for jury duty. The employees may retain payment received for jury service. An employee who receives a jury summons must give it to management as soon as possible.

Jury Duty/Civic Duty

An employee required by the court to report for jury duty will not also be required to work their regular shift the same day, including midnight shift prior to actually reporting for jury duty, or afternoon shift following serving jury duty. (Time off is paid by company; Jury pay is retained by employee).

The employees shift will be adjusted if necessary to accommodate him/her. An employee on jury duty for three days or more will be scheduled to work a day shift with Saturday and Sunday off during jury service. If the employee is temporarily released from jury service for a calendar week or more, the employee’s regular shift will be reinstated with Saturday and Sunday off.

When released from jury duty on a scheduled work day, the employee must report for work and to their scheduled number of hours (including time the time reported as jury duty), unless management grants AUTO. When jury duty is completed, the employee must furnish management with a court validated “statement of attendance” indicating the dates of jury duty.

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I N T ’ L A S S O C I A T I O N O F M A C H I N I S T S 23

I S C E

N S I D E PECIAL PUBLIC ONTACT EMPLOYEE DITION

Professor Hans Isakson, Ph.D., assesses the IAM contract and Flyto-win handbook The Report Card is here Side-by-side comparison of the IAM Contract and Fly-to-win handbook First-hand account of life before the IAM, and after

Watch for this important (but ordinairy looking) envelope, from the National Mediation Board.

It has your voting PIN, VIN, and instructions.

If your family checks your mail, tell your family to watch for the envelope.