Mechanics' Dispatch from the Airline Division

The company put out the following information today regarding the implantation of the new JCBA. We will continue to work together with the company to make sure the Agreement is implemented as quickly as possible. Implementation Website A web portal is available for employees to find communications related to the contract implementation.  This web portal can be accessed by logging into: Flying Together> Departments> Tech Ops> IBT Contract Implementation Lump Sum Payment Per LOA 28, eligible employees will receive a lump sum payment.   Payment Date – US based: December 28, 2016 as a separate payment                            Guam based: December 29, 2016 included in your regular paycheck 401(k) Election Tool – A web portal is available for you to select a percentage of your individual lump sum payment for deferral into your 401(k) account (for both US and Guam based). If no election is made, no 401(k) contributions will be deducted from your lump sum payment.                 Election Window – December 5 through December 18, 2016 at 11:59 PM CST.               Election Tool Location – The link providing your lump sum payment and for selecting your 401(k) contribution can be accessed by logging into: Flying Together>Departments> Tech Ops> IBT Contract Implementation> 401(k) Lump Sum Election button Questions – All questions related to the lump sum payment should be directed to your IBT representative. Pay Rate Increase  All employees will receive a contractual pay increase with the same effective date which is December 11, 2016.   To determine the check date that will include your pay increase, please refer to the attached letter or login to: Flying Together> Departments> Tech Ops> IBT Contract Implementation> Communication> Contractual Pay Increase Health and Welfare Benefits The new health and welfare benefit program will begin April 1, 2017, and communications related to your benefits will be mailed to your home address in late January to help you prepare for the special enrollment in February 2017. Special Enrollment – February 2017 Benefit Program Start – April 1, 2017   Retirement Benefits All retirement benefit changes will be effective January 1, 2017. For employees joining CARP, your benefit details will be reflected on Your Benefits Resources (YBR) at the beginning of April 2017.   Filling of Vacancies Transition – Subsidiary specific filling of vacancies will temporarily cease until transition to eBid, the common bidding platform.  eBid Training – eBid training materials will be available on the Tech Ops Landing page by logging into: Flying Together>Departments> Tech Ops> IBT Contract Implementation> Training Materials  First Joint Vacancies Post – targeted for December 19, 2016 First Award of Vacancies – targeted for January 16, 2017 Combined Field Trip and Overtime Lists In affected locations, information will be distributed mid-December – with a targeted merging of lists the first week of January 2017. Combined Seniority Lists: Per Article 4 of the Agreement, employees may submit a seniority challenge regarding their place on the newly integrated system seniority list. Seniority Challenge Period – January 1, 2017 – May 1, 2017 Seniority Challenge Website – the Union’s challenge website will be located at:  Flying Together> Departments> Tech Ops> IBT Contract Implementation> Seniority Challenge Challenge Timeline – Your seniority challenge will be reviewed by the Union and you will receive a responsewithin 60 days. Early Out Program An online application will be available on the Tech Ops web portal. Application Opens – January 15, 2017 at 12 AM CST Application Closes – February 28, 2017 at 11:59 PM CST Further information including plan documents, eligibility and a Q&A summary will be provided prior to the online application becoming available.  Questions If you have any questions related to these or any changes related to the Agreement please go to: Flying Together> Departments> Tech Ops> IBT Contract Implementation If you had additional questions please contact your Supervisor, Shift Manager, Manager of Administration or emailIBTImplementation@united.com.

Ratification Vote

Membership Approves Contract

The votes were tallied this morning and the membership has approved the contract. Below are the vote results:

Yes Votes: 4190 (51.58%)

No Votes: 3933 (48.42%)

87.2% of eligible voters participated in the vote.

Ratification Vote Webinar and Call

December 2, 2016 Ratification Vote Webinar and Call A webinar and call will be available on Monday December 5th that will allow members to view or listen to the process of tallying the ballots live. Members can register to participate in the webinar or call at the below link. https://attendee.gotowebinar.com/register/5589433709535505411 After registering, you will receive a confirmation email containing information about joining the webinar or call. You must click the link above, provide your name and email address. Once you register you will receive an email confirmation with specific information to logon for the tally.

Update November 15, 2016

  

Ballot Packages Mailed 

Yesterday, November 14^th, voting instructions were mailed to each member’s home address. These packages include a flash drive and will come in a regular sized envelope. If you do not receive your package, duplicate requests will start next week and continue through December 1^st.

Ratification Meetings Conclude Thursday 

The ratification meetings will conclude on Thursday in Boston. Thank you to all the members that attended over the last 30 days. Also thank you to all the professionals that traveled to each location to explain their involvement and respective areas of expertise.

NMB Changes 

Several members have asked how the recent presidential election will affect potential further negotiations. The answer is unknown, but what is known is the Board will be changed. As a Republican was elected, the Board will now consist of two Republicans and one Democrat. How long it will take to confirm the as yet to be determined new Board members is unknown at this moment, but it is likely to take some time. 

Delta Pay Raises Announced 

Today Delta announced pay increases that would put their technicians $0.85 per hour ahead of the TA in April of 2017. Also announced is a 1% increase of mandatory contribution to the 401(k) for a total of 3%. There were no changes announced with regard to any of the other items that make the UA TA industry leading such as vacation, sick tine holidays or medical cost share. While this is certainly good news for the Delta Technicians, it is also good news for United Technicians in regards to the industry reset. This worked out almost to the penny as predicted by economist Dan Akins during the roadshows. 

Here is how the UA Technicians compare to Delta now;

COMPENSATION	TA	DELTA
Top of Scale All-in Rate	$48.51 (including VEBA)	$49.36
A&P License Premium	$5.25	$5.00
Line Premium	$1.00	$0.75
Longevity	$1.00	$0.00
VACATION / SICK
Vacation Accrual	35 days max	25 days max.
Holidays	10 (6 Fixed / 4 Floating)	10 (All Fixed)
Holiday Pay (worked)	2.5x	2.0x
Sick Accrual	12 days max.	7 days max.
Sick Pay	100% pay	100% pay
BENEFITS
Medical and Dental Cost Share	80% / 20%	78 % / 22%
Retiree Medical	Retiree Bridge Medical until 2026	No Subsidy Only access to Delta Plans
Pension	CARP	None
401k	3% Match plus 1% Direct for               >30 years in CARP	3% Direct, 6% Match
Profit Sharing	5% up to 6.9% pre-tax margin 10% above 6.9% pre-tax margin	10% of pre-tax profit 20% on earnings above prior year
SCOPE
Furlough Protection	Furlough protection for all on the system seniority list at date of ratification	None
Base Protection	IAH and SFO Base point protection	None
Outsourcing Protection	Outsourcing protections	None
OTHER
Industry Reset	Triggered if wage and benefits is not at least 2% higher than avg. of AA and DL	None
Lump Sum	$185 million Lump Sum Pool	None
Early Out	$5,000 per year of service to a maximum of $100,000	None

Early Out FAQs 

The company sent out a list of FAQs regarding the early out. Here is a copy and paste of the questions;

2017 Tech Ops Early Out Questions and Answers

Below are answers to questions we have received on the early out program that is part of the tentative agreement with the IBT, which is in the ratification process (ratification details can be found on the IBT website at https://teamster.org/ual2016).

1.        How much is the Early Out benefit?

Eligible employees who are approved for the program will receive a one-time lump sum payment of $5,000 per year of active service up to a maximum of $100,000.

2.        Who is eligible for the Early Out?

a.        You must be actively employed during the application window and through your exit date in an IBT-represented position in United’s U.S. based operations (including Guam). The application window runs from January 15, 2017, through February 28, 2017.

-AND-

a.        Have a minimum of 15 years of Company service as measured by your Company Seniority Date.

-AND-

b.        Be at least 45 years of age.

3.        How many Early Out packages will be awarded?

There is no “cap” or maximum number of Early Out packages available.

4.        Will there be more than one application window?

No. However, the Company maintains the discretion to extend the application window.

5.        If I am eligible for retirement outside of the Early Out may I apply for the Early Out?

Yes. Employees who are currently eligible for retirement may apply.

6.       Why is the Early Out limited to age 45 and older?

The program is designed to comply with IRS rules regarding tax-advantaged retirement benefits.

7.         When will I be allowed to submit my request for the Early Out Program?

The application window will be open on January 15, 2017, and will close at 1700 CDT on February 28, 2017.

8.         How do I submit my election form?

You will apply via a link on the Tech Ops Portal website.

9.         May I rescind my application for Early Out?

Once you have submitted your application there is a 7 day period in which you may revoke your application. Revocations must be submitted in writing to your HR Partner. Once 7-days have passed the application is irrevocable.

10.      When will I receive Early Out incentive payment(s)?

Early Out incentive pay will be issued in a lump sum within 45-days of your Exit.

11.      I am not eligible for normal retirement, am I considered retired if awarded Early Out?

No.  You are considered separated.

12.      I understand the Company will determine my exit date, but will I be able tosubmit a preference?

Yes, employee preference of exit date will be considered and to the extent possible accommodated; however, the needs of the operation must be considered as a priority and may affect the exit dates.

13.      When will I know if I have been approved for the Early Out?

We estimate notification of Early Out awards to begin in March of 2017