-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, KBA/w+PvDYTzMZNlyjAjn2EbqUu5VwyG0h1g5c8SdiP+oPbKA6BKFHwzUdRiN390 1LID4mBEvKfHID8RZok7vw== /in/edgar/work/20000814/0001068800-00-000317/0001068800-00-000317.txt : 20000921 0001068800-00-000317.hdr.sgml : 20000921 ACCESSION NUMBER: 0001068800-00-000317 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 20000630 FILED AS OF DATE: 20000814 FILER: COMPANY DATA: COMPANY CONFORMED NAME: TRANS WORLD AIRLINES INC /NEW/ CENTRAL INDEX KEY: 0000278327 STANDARD INDUSTRIAL CLASSIFICATION: [4512 ] IRS NUMBER: 431145889 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-07815 FILM NUMBER: 696672 BUSINESS ADDRESS: STREET 1: ONE CITY CENTRE STREET 2: 515 N SIXTH ST CITY: ST LOUIS STATE: MO ZIP: 63101 BUSINESS PHONE: 3145893000 MAIL ADDRESS: STREET 1: ONE CITY CENTRE STREET 2: 515 N 6TH ST CITY: ST LOUIS STATE: MO ZIP: 63101 10-Q 1 0001.txt TWA FORM 10-Q - ---------------------------------------------------------------------------- - ---------------------------------------------------------------------------- UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 --------------- FORM 10-Q [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2000 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 COMMISSION FILE NUMBER 1-7815 TRANS WORLD AIRLINES, INC. (Exact name of registrant as specified in its charter) DELAWARE 43-1145889 ------------------------------- ------------------------------------ (State or other jurisdiction of (I.R.S. Employer Identification No.) incorporation or organization) ONE CITY CENTRE 515 N. SIXTH STREET ST. LOUIS, MISSOURI 63101 (Address of principal executive offices, including zip code) (314) 589-3000 (Registrant's telephone number, including area code) ------------------------ Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes /X/ No / / APPLICABLE ONLY TO REGISTRANTS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS: Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Section 12, 13, or 15 (d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes /X/ No / / Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. OUTSTANDING AS OF CLASS JULY 31, 2000 ----------------------- ----------------- Common Stock, par value $0.01 per share 69,706,393 - ---------------------------------------------------------------------------- - ---------------------------------------------------------------------------- PART I. FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS TRANS WORLD AIRLINES, INC. AND SUBSIDIARIES STATEMENTS OF CONSOLIDATED OPERATIONS FOR THE THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 2000 AND 1999 (AMOUNTS IN THOUSANDS EXCEPT PER SHARE AMOUNTS) (UNAUDITED)
THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30, JUNE 30, ------------------------- ------------------------- 2000 1999 2000 1999 ---------- ---------- ---------- ---------- Operating revenues: Passenger $ 865,004 $ 786,183 $1,597,623 $1,472,625 Freight and mail 25,196 24,060 49,600 49,324 All other 64,723 55,750 116,696 108,632 ---------- ---------- ---------- ---------- Total 954,923 865,993 1,763,919 1,630,581 ---------- ---------- ---------- ---------- Operating expenses: Salaries, wages and benefits 329,862 312,321 662,012 621,162 Aircraft fuel and oil 144,861 91,977 285,325 164,594 Passenger sales commissions 36,820 50,828 68,048 95,433 Aircraft maintenance materials and repairs 29,493 34,615 55,014 72,907 Depreciation and amortization 32,208 34,969 65,335 72,284 Aircraft rent 137,695 98,318 270,222 188,665 Other rent and landing fees 48,587 49,762 97,464 96,757 All other 180,096 174,833 349,119 337,995 ---------- ---------- ---------- ---------- Total 939,622 847,623 1,852,539 1,649,797 ---------- ---------- ---------- ---------- Operating income (loss) 15,301 18,370 (88,620) (19,216) ---------- ---------- ---------- ---------- Other charges (credits): Interest expense 22,154 24,450 46,711 49,411 Interest and investment income (3,005) (4,739) (5,140) (7,912) Disposition of assets, gains and losses-net (569) 3,757 (2,844) 1,747 Other charges and credits-net (6,061) (5,365) (35,691) (36,667) ---------- ---------- ---------- ---------- Total 12,519 18,103 3,036 6,579 ---------- ---------- ---------- ---------- Income (loss) before income taxes, extraordinary items and cumulative effect of accounting change 2,782 267 (91,656) (25,795) Provision (credit) for income taxes 7,007 5,610 (24,152) 1,106 ---------- ---------- ---------- ---------- Loss before extraordinary items and cumulative effect of accounting change (4,225) (5,343) (67,504) (26,901) Extraordinary items - (866) - (866) Cumulative effect of accounting change - - (12,844) - ---------- ---------- ---------- ---------- Net loss (4,225) (6,209) (80,348) (27,767) Preferred stock dividend requirements 1,632 5,863 7,048 11,726 ---------- ---------- ---------- ---------- Loss applicable to common shares $ (5,857) $ (12,072) $ (87,396) $ (39,493) ========== ========== ========== ========== Basic earnings per share amounts: Loss before extraordinary items and cumulative effect of accounting change $ (0.08) $ (0.17) $ (1.01) $ (0.59) Extraordinary items - (0.01) - (0.01) Cumulative effect of accounting change - - (0.18) - ---------- ---------- ---------- ---------- Net loss $ (0.08) $ (0.18) $ (1.19) $ (0.60) ========== ========== ========== ========== See notes to consolidated financial statements
1 TRANS WORLD AIRLINES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS JUNE 30, 2000 AND DECEMBER 31, 1999 (AMOUNTS IN THOUSANDS)
ASSETS JUNE 30, DECEMBER 31, 2000 1999 ----------- ------------ (UNAUDITED) Current assets: Cash and cash equivalents $ 194,312 $ 180,443 Receivables, less allowance for doubtful accounts, $13,541 in 2000 and $13,534 in 1999 257,246 155,070 Spare parts, materials and supplies, less allowance for obsolescence, $17,696 in 2000 and $17,512 in 1999 102,418 101,179 Prepaid expenses and other 97,404 53,197 ---------- ---------- Total 651,380 489,889 ---------- ---------- Property: Property owned: Flight equipment 336,704 433,710 Prepayments on flight equipment 65,863 45,810 Land, buildings and improvements 77,589 77,021 Other property and equipment 90,534 90,115 ---------- ---------- Total property owned 570,690 646,656 Less accumulated depreciation 174,071 161,153 ---------- ---------- Property owned-net 396,619 485,503 ---------- ---------- Property held under capital leases: Flight equipment 176,094 176,094 Land, buildings and improvements 52,418 50,321 Other property held under capital leases 7,339 7,096 ---------- ---------- Total property held under capital leases 235,851 233,511 Less accumulated amortization 141,148 127,845 ---------- ---------- Property held under capital leases-net 94,703 105,666 ---------- ---------- Total property-net 491,322 591,169 ---------- ---------- Investments and other assets: Investments in affiliated companies 97,030 82,901 Investments, receivables and other 142,677 133,973 Routes, gates and slots-net 174,279 181,983 Reorganization value in excess of amounts allocable to identifiable assets-net 636,290 657,267 ---------- ---------- Total 1,050,276 1,056,124 ---------- ---------- $2,192,978 $2,137,182 ========== ========== See notes to consolidated financial statements 2 TRANS WORLD AIRLINES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS JUNE 30, 2000 AND DECEMBER 31, 1999 (AMOUNTS IN THOUSANDS EXCEPT PER SHARE AMOUNTS) LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIENCY) JUNE 30, DECEMBER 31, 2000 1999 ----------- ------------ (UNAUDITED) Current liabilities: Current maturities of long-term debt $ 171,417 $ 67,080 Current obligations under capital leases 37,825 38,664 Advance ticket sales 343,099 198,722 Accounts payable, principally trade 336,274 263,624 Accounts payable to affiliated companies 5,309 6,250 Accrued expenses: Employee compensation and vacations earned 136,674 149,701 Contributions to retirement and pension trusts 22,927 15,165 Interest on debt and capital leases 12,343 14,235 Taxes 13,634 12,111 Other accrued expenses 211,384 195,340 ---------- ---------- Total accrued expenses 396,962 386,552 ---------- ---------- Total 1,290,886 960,892 ---------- ---------- Long-term liabilities and deferred credits: Long-term debt, less current maturities 424,027 600,909 Obligations under capital leases, less current obligations 109,332 127,143 Postretirement benefits other than pensions 506,210 502,097 Noncurrent pension liabilities 17,044 17,572 Other noncurrent liabilities and deferred credits 96,034 99,479 ---------- ---------- Total 1,152,647 1,347,200 ---------- ---------- Shareholders' equity (deficiency): 8% cumulative convertible exchangeable preferred stock, $50 liquidation preference; shares issued and outstanding: 2000-2,578; 1999-3,869 26 39 9 1/4% cumulative convertible exchangeable preferred stock, $50 liquidation preference; shares issued and outstanding: 2000-818; 1999-1,725 8 17 Employee preferred stock, $0.01 liquidation preference; special voting rights; shares issued and outstanding: 2000-6,505; 1999-6,712 65 67 Common stock, $0.01 par value; shares issued and outstanding: 2000-69,678; 1999-59,966 697 600 Additional paid-in capital 728,668 728,038 Accumulated deficit (980,019) (899,671) ---------- ---------- Total (250,555) (170,910) ---------- ---------- $2,192,978 $2,137,182 ========== ========== See notes to consolidated financial statements
3 TRANS WORLD AIRLINES, INC. AND SUBSIDIARIES STATEMENTS OF CONSOLIDATED CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2000 AND 1999 (AMOUNTS IN THOUSANDS) (UNAUDITED)
SIX MONTHS ENDED JUNE 30, ------------------------ 2000 1999 --------- --------- Cash flows from operating activities: Net loss $ (80,348) $ (27,767) Adjustments to reconcile net loss to net cash provided (used) by operating activities: Employee earned stock compensation - 2,594 Depreciation and amortization 65,335 72,284 Amortization of discount and expense on debt 3,179 3,810 Amortization of deferred (gains) losses on sale and leaseback of certain aircraft and engines (1,133) (5,055) Extraordinary loss on extinguishment of debt - 866 Equity in undistributed earnings of affiliates not consolidated (16,067) (13,206) Net (gains) losses on disposition of assets (2,844) 1,747 Change in operating assets and liabilities: Decrease (increase) in: Receivables (102,176) (52,840) Inventories (1,781) (1,490) Prepaid expenses and other current assets (44,182) (28,484) Other assets (5,203) (5,770) Increase (decrease) in: Accounts payable and accrued expenses 75,318 60,260 Advance ticket sales 144,377 111,865 Other noncurrent liabilities and deferred credits 7,696 (21,014) --------- --------- Net cash provided 42,171 97,800 --------- --------- Cash flows from investing activities: Proceeds from sales of property 7,407 12,363 Capital expenditures, including aircraft predelivery deposits (28,234) (73,946) Return of predelivery deposits related to leased aircraft - 9,620 Net increase in investments, receivables and other (1,050) (2,329) --------- --------- Net cash used (21,877) (54,292) --------- --------- Cash flows from financing activities: Proceeds from sale and leaseback of certain aircraft and engines 94,409 80,633 Repayments on long-term debt and capital lease obligations (100,834) (76,600) Cash dividends paid on preferred stock - (11,727) Net proceeds from exercise of warrants and options - 441 --------- --------- Net cash used (6,425) (7,253) --------- --------- Net increase in cash and cash equivalents 13,869 36,255 Cash and cash equivalents at beginning of period 180,443 252,408 --------- --------- Cash and cash equivalents at end of period $ 194,312 $ 288,663 ========= ========= See notes to consolidated financial statements 4 TRANS WORLD AIRLINES, INC. AND SUBSIDIARIES STATEMENTS OF CONSOLIDATED CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2000 AND 1999 (AMOUNTS IN THOUSANDS) (UNAUDITED) SUPPLEMENTAL CASH FLOW INFORMATION SIX MONTHS ENDED JUNE 30, ------------------------- 2000 1999 ---------- ---------- Cash paid during the period for: Interest $ 38,514 $ 36,492 ========== ========== Income taxes $ 15 $ 10 ========== ========== Information about noncash operating, investing and financing activities: Promissory notes issued to finance aircraft acquisition $ 14 $ - ========== ========== Promissory notes issued to finance aircraft predelivery payments $ 16,522 $ 38,687 ========== ========== Property acquired and obligations recorded under new capital lease transactions $ 530 $ - ========== ==========
ACCOUNTING POLICY For purposes of the Statements of Consolidated Cash Flows, TWA considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. See notes to consolidated financial statements 5 TRANS WORLD AIRLINES, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2000 (UNAUDITED) 1. BASIS OF PRESENTATION The consolidated financial statements include the accounts of Trans World Airlines, Inc. ("TWA" or the "Company") and its subsidiaries. The results of Worldspan, L.P. ("Worldspan"), a 26.315% owned affiliate, are recorded under the equity method and are included in the Statements of Consolidated Operations in Other Charges (Credits). The unaudited consolidated financial statements included herein have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission but do not include all information and footnotes required by generally accepted accounting principles pursuant to such rules and regulations. The consolidated financial statements include all adjustments, which are of a normal recurring nature and are necessary, in the opinion of management, for a fair presentation of the results for these interim periods. These consolidated financial statements and related notes should be read in conjunction with the consolidated financial statements and related notes contained in the Company's Annual Report on Form 10-K for the year ended December 31, 1999. The consolidated balance sheet at December 31, 1999 has been derived from the audited consolidated financial statements at that date. Certain amounts previously reported have been reclassified to conform with the current presentation. The consolidated financial results on an interim basis are not necessarily indicative of future financial results on either an interim or annual basis. TWA's air transportation business has historically experienced seasonal changes with the second and third quarters of the calendar year generally producing better operating results than the first and fourth quarters, although operational adjustments with the intent of reducing the level of seasonality have been, and continue to be, implemented. Accordingly, the results for the three months and six months ended June 30, 2000 should not be read as indicators of results for the full year. 2. INCOME TAXES The income tax provisions/benefits recorded for the three and six month periods ended June 30, 2000 and 1999 reflect quarterly effective tax rates and an expectation of full year pretax profits. Considering the high level of non-deductible expenses in relation to expected annual income (which results in both a high effective tax rate and the potential for significant changes in the effective rate from relatively small changes in pretax income levels), the income tax provisions/benefits recorded for the first two quarters of 2000 and 1999 were based upon the allocable portion of certain non-deductible expenses, primarily amortization of reorganization value in excess of amounts allocable to identifiable assets, and statutory tax rates. 6 3. LOSS PER SHARE In computing the loss applicable to common shares for the three months and six months ended June 30, 2000 and 1999, the net loss has been increased by dividend requirements on the 8% Cumulative Convertible Exchangeable Preferred Stock (the "8% Preferred Stock") and the 9 1/4% Cumulative Convertible Exchangeable Preferred Stock (the "9 1/4% Preferred Stock"). In computing the related net loss per share, the loss applicable to common shares has been divided by the aggregate average number of outstanding shares of common stock (70.3 million and 67.0 million for the three months and six months ended June 30, 2000, respectively) including 3.0 million shares to be issued to IAM- represented employees as discussed in Note 8, and employee preferred stock (6.6 million for the three months and six months ended June 30, 2000) which, with the exception of certain special voting rights, is the functional equivalent of common stock. Diluted earnings per share are the same as basic earnings per share for the periods presented as the impact of stock options, warrants or potential issuances of additional common stock or employee preferred stock in the three month and six month periods ended June 30, 2000 would have been anti-dilutive. Preferred stock dividend requirements for the three months and six months ended June 30, 2000 reflect the reversal of first quarter 2000 dividend requirements of $1.9 million as a result of the conversion of preferred stock into common stock during the second quarter of 2000. The loss applicable to common shares for the three months and six months ended June 30, 1999 have likewise been adjusted by dividend requirements on the 8% Preferred Stock and the 9 1/4% Preferred Stock. In computing the related net loss per share, the loss applicable to common shares has been divided by the aggregate average number of outstanding shares of common stock (58.5 million and 58.2 million for the three months and six months ended June 30, 1999, respectively) and employee preferred stock (7.6 million and 7.7 million for the three months and six months ended June 30, 1999) which, with the exception of certain special voting rights, is the functional equivalent of common stock. Diluted earnings per share are the same as basic earnings per share for the periods presented as the impact of stock options, warrants or potential issuances of additional common stock or employee preferred stock in the three month and six month periods ended June 30, 1999 would have been anti-dilutive. 4. PROPERTY AND DISPOSITION OF ASSETS The Company has included in Investments, Receivables and Other the net book value of its grounded L-1011 and B-747 aircraft as such aircraft have been retired from service and are currently held for sale. The carrying value of these aircraft at June 30, 2000 and 1999 was $11.4 million and $25.8 million, respectively. During the six months ended June 30, 2000 and 1999, disposition of assets resulted in net gains of $2.9 million and net losses of $1.7 million, respectively. The net gains in the first six months of 2000 related to the sale of 19 spare L-1011, B-767 and B-727 engines. In 1999, the recorded losses included a loss from the sale and leaseback of four B-767 aircraft in April 1999 partially offset by gains from the sale of L-1011 and B-727 aircraft and engines, spare L-1011 and DC9-10 engines and the sale of TWA's investment in SATO Travel, a company which provides ticketing services. 7 5. SEGMENT REPORTING TWA operates one segment, that of air transportation. However, that segment is analyzed and reported in two primary geographic areas, Domestic (including Canada and the Caribbean) and International (the Atlantic division as reported to the Department of Transportation). Information related to revenues generated from operations within those geographic areas is presented below.
QUARTER ENDED SIX MONTHS ENDED JUNE 30, JUNE 30, ----------------------- ----------------------- 2000 1999 2000 1999 -------- -------- -------- -------- Operating Revenues: (in millions): Domestic $ 870.2 $ 767.1 $1,615.6 $1,457.2 International 84.7 98.9 148.3 173.4 -------- -------- -------- -------- Total $ 954.9 $ 866.0 $1,763.9 $1,630.6 ======== ======== ======== ========
TWA identifies revenues to each division based on a proration methodology of revenues generated to specific flight segments and the division in which the flight segment operates. A major portion of the Company's long-lived assets consists of its flight equipment (aircraft), which are not assigned to a specific geographic area but rather are flown across geographic boundaries. 6. SALE OF EQUANT SHARES TWA is a long-term member of the Societe Internationale de Telecommunications Aeronautiques ("SITA"), a worldwide provider of communication services to the aviation industry. In February 1999, members of SITA divested a portion of their shares in Equant N.V. ("Equant"), a telecommunication network company, through a secondary offering. As a member of SITA, TWA indirectly participated in the partial sale of its holdings in Equant in February 1999 and December 1999; in March 2000 TWA sold its remaining interest in Equant to a third party, resulting in reported gains and receipts of cash of approximately $21.3 million, $10.7 million and $16.7 million in the first quarter of 1999, fourth quarter of 1999 and first quarter of 2000, respectively. Such gains are included in Other charges credits-net. 7. CONTINGENCIES There has not been any significant change in the status of the contingencies reflected in the notes to consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 1999 which, among other matters, described various contingencies and other legal actions against TWA, except as discussed in Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. 8 8. LABOR AGREEMENTS As a result of contracts which became effective August 1, 1999 between TWA and the International Association of Machinists and Aerospace Workers ("IAM"), TWA agreed to pay increases over an 18 month period that will result in wages for TWA's ground employees and flight attendants improving by the end of the term of the contract to averages ranging from 86.5% to 91.0% of industry average as determined by wage rates in contracts in effect as of June 1999. Additionally, TWA agreed to distribute 3,500,000 shares of TWA common stock to these employees, of which 500,000 shares were distributed to IAM-represented flight attendants in a manner determined by the IAM on October 7, 1999. The remaining 3,000,000 shares will be distributed in a manner determined by the IAM to IAM-represented employees on the following dates: as soon as practicable after July 31, 2000 - 1,000,000 shares, January 31, 2001 - 1,000,000 shares, January 31, 2002 - 1,000,000 shares. In conjunction with these contracts, TWA and the IAM-represented employees agreed to withdraw all pending litigation including contempt proceedings. Additionally, all outstanding grievances regarding scope, work jurisdiction, outsourcing and compensation were withdrawn. IAM- represented flight attendant employees agreed to a payment of $25.0 million in settlement of these disputed matters, to be distributed in a manner directed by the IAM. On August 31, 1999, $11.0 million was distributed and $11.0 million will be distributed in August 2000. The remaining payment of $3.0 million will occur in August 2001. Similarly, in settlement of these disputed matters, IAM-represented ground employees will receive $10.0 million to be distributed in a manner directed by the IAM by no later than the following dates: November 2, 2001 - $5.0 million, and August 1, 2002 - $5.0 million. All unpaid amounts are reflected as a liability in the consolidated financial statements. 9. ACCOUNTING FOR SALES OF AVIATOR MILES In December 1999, the Securities and Exchange Commission issued Staff Accounting Bulletin ("SAB") No. 101, "Revenue Recognition in Financial Statements", which provides guidance on the recognition, presentation and disclosure of revenue in financial statements. Although SAB 101 does not change existing accounting rules on revenue recognition, certain changes in accounting to apply the guidance in SAB 101 may be accounted for as a change in accounting principle. Effective January 1, 2000, the Company changed its method of accounting for the sale of Aviator miles to business partners. Previously, TWA and most other major airlines accounted for the proceeds received from the sale of affinity miles as revenue during the month of sale, net of the estimated incremental cost of providing future air travel. Under the new accounting method, that portion of the revenue from the sale of miles which is estimated to reflect the fair value of future transportation to be provided will be deferred and recognized in income when the transportation is provided. The remaining portion of the sale proceeds will continue to be recognized at the time of sale as other revenue. The Company believes the new method results in better matching of revenue with the period in which travel services are provided. The cumulative effect of this change resulted in a charge to earnings of $12.8 million in the first quarter of 2000. Prior period financial statements have not been restated. If the newly adopted policy had been applied in the prior year, the impact on net income would have been immaterial. 9 10. SLOT LEGISLATION The Federal Aviation Administration ("FAA") has designated John F. Kennedy International Airport ("JFK") and LaGuardia Airport ("LaGuardia") in New York, Chicago O'Hare International Airport ("O'Hare") and Ronald Reagan Washington National Airport ("Reagan National") as "high density traffic airports" and has limited the number of departure and arrival slots at those airports. Currently, such slots may be voluntarily sold or transferred between carriers. In May 2000, The Aviation Investment and Reform Act for the 21st Century was enacted changing the restrictions on slots at these airports. At O'Hare, this legislation alters the usage of slots immediately and entirely eliminates slot restrictions at the airport effective July 2, 2002. The legislation eliminates slot restrictions at JFK and LaGuardia effective January 2, 2007. The legislation increases slightly the slots available at Reagan National. On July 5, 2000, TWA was granted additional slots to fly one round trip daily between Reagan National and Los Angeles International Airport. Considering these developments, the Company evaluated the carrying value of the slots at these affected airports in accordance with Statement of Financial Accounting Standards No. 121, "Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed of." Based upon the results of this evaluation, the Company does not presently expect the changes in slot restrictions will significantly impact its operations at these airports. The Company expects the carrying values of the slots will be recovered through future operating cash flows associated with these assets. Accordingly, no change in carrying value or useful life was deemed necessary. At June 30, 2000, the net book value of slots at JFK and LaGuardia, O'Hare, and Reagan National was $42.6 million, $5.0 million and $25.0 million, respectively. 10 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Certain statements made below relating to plans, conditions, objectives, and economic performance go beyond historical information and may provide an indication of future financial condition or results of operations. To that extent, they are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and each is subject to risks, uncertainties and assumptions that could cause actual results to differ from those in the forward-looking statements. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. In any event, these forward- looking statements speak only as of their dates, and the Company undertakes no obligation to update or revise any of them whether as a result of new information, future events or otherwise. GENERAL TWA operates in a highly competitive, capital-intensive industry. The Company competes with one or more major airlines on most of its routes (including all routes between major cities). The airline industry has consolidated as a result of mergers and liquidations and more recently through alliances, and further consolidation may occur in the future. This consolidation has, among other things, enabled certain of the Company's major competitors to expand their international operations and increase their domestic market presence, thereby strengthening their overall operations, by transporting passengers connecting with or otherwise traveling on the alliance carriers. Such alliances will further intensify the competitive environment in which TWA operates. The rapid growth of regional jet airline affiliates represents a significant competitive challenge for TWA due to its reliance on through-hub passenger traffic. A small regional jet can now offer direct service in markets that previously were served only by through- hub service. Although TWA has signed agreements with two companies which operate regional jets, TWA's current labor agreements limit the number of regional jets that TWA may utilize. TWA began offering regional jet service in the first quarter of 2000 through one of its code share partners. These issues represent a competitive challenge for the Company, which has higher operating costs than many other carriers and fewer financial resources than many of its major competitors. Small fluctuations in revenue per available seat mile ("RASM") and cost per available seat mile ("CASM") can significantly affect TWA's financial results. The Company has experienced significant operating losses on an annual basis since the early 1990s, except in 1995 when the Company's combined operating profit was $25.1 million. TWA expects the airline industry will remain extremely competitive for the foreseeable future. The Company continues to focus on implementing several strategic initiatives to improve operational reliability, schedule integrity and overall product quality in order to attract higher-yield passengers and enhance overall productivity. Key initiatives currently in progress include: * modernizing its fleet; * reducing costs and improving productivity; * implementing revenue-enhancing marketing initiatives and schedule realignments to attract higher-yield travelers; * implementing employee-related initiatives to reinforce TWA's focus on operational performance; 11 * optimizing TWA's route structure through the opening of "focus cities" and the use of regional jet feed into TWA's system; and * better coordinating of commuter feed, turbo prop products and schedules. TWA faces a number of uncertainties that may adversely affect its future results of operations, including: * insufficient levels of air passenger traffic resulting from, among other things, war, threat of war, terrorism or changes in the economy; * governmental limitations on the ability of TWA to service certain airports and/or foreign markets; * regulatory requirements necessitating additional capital or operating expenditures; * pricing and scheduling initiatives by competitors; * the availability and cost of capital; * increases in fuel and other operating costs; and * the adverse effects on yield of the continued implementation of a discount ticket program between TWA and Karabu Corp. TWA is unable to predict the potential effect of any of these uncertainties upon its future results of operations. Labor Costs Wage rates for most of TWA's employees have increased recently as a result of several events. A new collective bargaining agreement between TWA and its pilots became effective September 1, 1998 and is amendable October 1, 2002. As part of the new contract, TWA agreed to pay increases over four years that will result in wages for TWA's pilots improving in 2002 to 90% of the industry average as determined by wage rates in contracts in effect as of August 1998. The contract also provides for significant work rule improvements for pilots in certain areas while also granting TWA flexibility and improvements necessary to enhance its competitive position. Under the contract, TWA agreed to distribute either one million shares of TWA's common stock or $11 million in cash to its pilots, in four equal quarterly payments commencing in 1999. The Company made a quarterly distribution of 250,000 shares each of common stock in April, August and November 1999 and February 2000. TWA and the IAM reached agreement on new contracts for TWA flight attendant and ground employees, which became effective August 1, 1999 and become amendable on January 31, 2001. TWA agreed to salary increases over the term of the agreement that will result in wage improvements of 11.5% to 18.25% for TWA's ground employees and flight attendants such that by the amendable date of the contract their wages will average from 86.5% to 91.0% of industry average as determined by wage rates in contracts in effect as of June 1999. Additionally, TWA has agreed to distribute 3,500,000 shares of TWA common stock to these employees. On October 7, 1999, 500,000 shares were distributed to IAM-represented flight attendants in a manner determined by the IAM. The remaining 3,000,000 shares will be distributed in a manner determined by the IAM to IAM-represented employees as follows: as soon as practicable after July 31, 2000 - 1,000,000 shares, January 31, 2001 - 1,000,000 shares, January 31, 2002 - - 1,000,000 shares. 12 In conjunction with these contracts, TWA and the IAM-represented employees agreed to withdraw all litigation pending as of August 1999 including contempt proceedings. Additionally, all outstanding grievances regarding scope, work jurisdiction, outsourcing and compensation were withdrawn as of that date. IAM-represented flight attendant employees agreed to a payment of $25.0 million to be distributed in a manner directed by the IAM. On August 31, 1999, $11.0 million was distributed. The remaining payments will occur in August 2000 - $11.0 million and August 2001 - $3.0 million. Similarly, in settlement of these disputed matters, IAM-represented ground employees will receive $10.0 million to be distributed in a manner directed by the IAM by no later than the following dates: November 2, 2001 - $5.0 million, and August 1, 2002 - $5.0 million. Pursuant to the labor agreements TWA entered into in 1992, TWA agreed to pay to employees represented by the IAM a cash bonus for the amount by which overtime incurred from September 1992 through August 1995 was reduced below specified thresholds. This amount was to be offset by the failure of medical savings to meet certain specified levels during the period for the same employees. TWA and the IAM came to agreement on this obligation which was payable in three equal annual installments. Two installments have been made and the remaining obligation of $9.1 million representing the third and final installment is payable on September 1, 2000. The final payment is reflected as a liability in the consolidated financial statements. TWA also entered into agreements subsequent to the 1992 labor agreements that provide for an adjustment to existing salary rates of certain labor-represented employees based on the amount of the cash bonus for overtime to the employees represented by the IAM as described in the previous paragraph. These adjustments equated to a 4.814% increase which management made effective for all employee groups on September 1, 1998, except for pilots whose contract provided for separate increases also effective September 1, 1998. Non-contract employees of TWA additionally received a 3% increase in salary effective September 1, 1999. On October 1, 1999, a merit pay plan was put into effect which increased non-contract employee wages an average of approximately 5%. The officers of TWA did not receive either the 1998 or 1999 increases. TWA's agreements with employees could result in significant non- cash charges to future operating results. Shares granted or purchased at a discount under the Employee Stock Incentive Plan ("ESIP") will generally result in a charge equal to the fair market value of shares granted and the discount for shares purchased at the time these shares are earned or purchased. The ESIP requires TWA, from 1997 through 2002, to make grants on July 15 of each year if the average market closing price of the common stock for 30 consecutive trading days has exceeded a target price for such year. Each annual grant is cumulative. The first two target prices were realized in 1998. If the ESIP's remaining target prices (ranging from $13.10 to $17.72) for TWA common stock are realized, the minimum aggregate non-cash charge for the years 1999 to 2002 will be approximately $104.8 million based upon these target prices and the number of shares of common stock and employee preferred stock outstanding at December 31, 1999. The non-cash charge for any year, however, could be substantially higher if the then market price of TWA common stock exceeds the target prices. TWA believes it is essential to improve employee productivity as an offset to any wage increases and will continue to explore other ways to control and/or reduce operating expenses. While TWA experienced wage rate increases in 1999, it also generated 3.3% more ASMs with 4.2% fewer employees in 1999. This trend continued in the first six months of 2000 when the Company generated 8.2% more ASMs with 2.4% fewer employees than the comparable period in 1999. On a unit cost basis (salaries, wages and benefits per ASM excluding costs associated with contract ratification), there was no increase year over year reflecting an overall productivity improvement in this category. However, there can be no assurance that the Company will be successful in sustaining such productivity improvements or achieving unit cost reductions. It is essential that the Company's labor costs remain favorable in comparison to its largest competitors. 13 TWA's passenger traffic data, for scheduled passengers only, is shown in the table below for the indicated periods:
THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30, JUNE 30, YEARS ENDED DECEMBER 31, -------------------- --------------------- ----------------------------------- 2000 1999 2000 1999 1999 1998 1997 ------ ------ ------- ------- ------- ------- ------- NORTH AMERICA Passenger revenues ($ millions) $ 795 $ 705 $ 1,476 $ 1,332 $ 2,690 $ 2,579 $ 2,526 Revenue passenger miles (millions) 6,328 5,841 11,660 10,741 22,129 20,132 19,737 Available seat miles (millions) 8,453 7,572 16,472 14,735 30,517 28,796 29,341 Passenger load factor 74.9% 77.1% 70.8% 72.9% 72.5% 69.9% 67.3% Passenger yield (cents) 12.56 cents 12.06 cents 12.66 cents 12.31 cents 12.15 cents 12.81 cents 12.80 cents Passenger revenue per available seat mile (cents) 9.41 cents 9.31 cents 8.96 cents 9.04 cents 8.81 cents 8.96 cents 8.61 cents INTERNATIONAL Passenger revenues ($ millions) $ 70 $ 81 $ 122 $ 141 $ 294 $ 333 $ 412 Revenue passenger miles (millions) 866 1,076 1,555 1,896 3,881 4,290 5,363 Available seat miles (millions) 1,110 1,298 2,105 2,432 5,071 5,657 7,093 Passenger load factor 78.0% 82.9% 73.9% 78.0% 76.5% 75.8% 75.6% Passenger yield (cents) 8.09 cents 7.58 cents 7.85 cents 7.44 cents 7.58 cents 7.78 cents 7.68 cents Passenger revenue per available seat mile (cents) 6.30 cents 6.28 cents 5.80 cents 5.80 cents 5.80 cents 5.90 cents 5.81 cents TOTAL SYSTEM Passenger revenues ($ millions) $ 865 $ 786 $ 1,598 $ 1,473 $ 2,984 $ 2,912 $ 2,938 Revenue passenger miles (millions) 7,194 6,917 13,215 12,637 26,010 24,422 25,100 Available seat miles (millions) 9,563 8,870 18,577 17,167 35,588 34,453 36,434 Passenger load factor 75.2% 78.0% 71.1% 73.6% 73.1% 70.9% 68.9% Passenger yield (cents) 12.02 cents 11.37 cents 12.09 cents 11.65 cents 11.47 cents 11.93 cents 11.70 cents Passenger revenue per available seat mile (cents) 9.05 cents 8.86 cents 8.60 cents 8.58 cents 8.38 cents 8.45 cents 8.06 cents Operating cost per available seat mile (cents) 9.68 cents 9.35 cents 9.83 cents 9.43 cents 9.50 cents 9.31 cents 8.99 cents Average daily utilization per aircraft (hours) 9.75 9.68 9.80 9.74 9.67 9.77 9.38 Aircraft in fleet being operated at end of period 188 188 188 188 183 185 185 - ------------- Excludes subsidiary companies. Certain revenue and unit revenue information previously reported has been reclassified to conform with the current presentation. The number of scheduled miles flown by revenue passengers. The number of seats available for passengers multiplied by the number of scheduled miles those seats are flown. Revenue passenger miles divided by available seat miles. Passenger revenue per revenue passenger mile. Passenger revenue divided by scheduled available seat miles. Operating expenses, excluding special charges, other nonrecurring charges and subsidiaries, divided by total available seat miles. The average block hours flown per day in revenue service per aircraft.
14 RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED JUNE 30, 2000 COMPARED TO THE THREE MONTHS ENDED JUNE 30, 1999 During the second quarter of 2000, TWA reported an operating profit of $15.3 million compared to a second quarter 1999 operating profit of $18.4 million, an unfavorable change of $3.1 million. The Company reported a second quarter 2000 pre-tax profit of $2.8 million, which was an increase of $2.5 million from the 1999 pre-tax profit of $0.3 million. The net loss of $4.2 million in the second quarter of 2000 represented a $2.0 million decrease from the net loss of $6.2 million in the second quarter of 1999. Total operating revenues were $954.9 million in the second quarter of 2000, an $88.9 million increase from operating revenues of $866.0 million for the comparable period of 1999. Passenger revenue for the second quarter of $865.0 million improved $78.8 million over passenger revenue of $786.2 million in the second quarter of 1999 largely due to more efficient utilization of its revitalized fleet and changes in its route structure. In the first quarter of 2000, the Company introduced the first regional jets into its route structure through code-sharing agreements that contributed to both the increase in passenger revenue and the $9.0 million increase in all other revenues in the second quarter 2000. System-wide capacity, as measured by scheduled ASMs, increased 7.8% in the second quarter of 2000 over the comparable period of 1999. Domestic ASMs increased 11.6% while international ASMs decreased 14.4%. Revenue passenger miles (RPMs) in scheduled service for the quarter were 7,193.7 million compared with 6,916.6 million RPMs in the second quarter of 1999 representing a 4.0% increase. The system passenger load factor decreased 2.8 percentage points in the second quarter of 2000 versus the same period in 1999 to 75.2% from 78.0% resulting from a greater increase in ASMs than RPMs. System yield increased 5.7% to 12.02 cents in the second quarter of 2000 compared to 11.37 cents in 1999 reflecting higher overall industry fare levels and improvements in TWA's domestic front cabin yield partly in response to increased marketing efforts in support of TWA's special FirstUp fare. RASM increased year over year to 9.05 cents in the second quarter of 2000 from 8.86 cents in the second quarter of 1999. Since June 1999, TWA has taken delivery of 37 new aircraft of which 28 aircraft were delivered in 1999 and nine aircraft were delivered in the first six months of 2000. Operating expenses per available seat mile (CASM) increased 3.5% to 9.68 cents from 9.35 cents for the second quarter of 1999. The CASM increase was heavily impacted by increased fuel costs, the increase in aircraft rental expense resulting from the replacement of older aircraft with new modern equipment and increased labor costs associated with new collective bargaining agreements. Operating expenses increased $92.0 million during the second quarter of 2000 to $939.6 million from $847.6 million during the second quarter of 1999, representing a net change in the following expense groups: * Salaries, wages and benefits were $329.8 million during the second quarter of 2000 compared to $312.3 million during the second quarter of 1999, an increase of $17.5 million. The average number of full-time equivalent employees decreased 2.4% to 20,551 in the second quarter of 2000 versus 21,053 in the second quarter of 1999. This headcount reduction was more than offset by the August 1, 1999 salary increase to IAM-represented employees, a September 1, 1999 increase in pilot salary as provided in their current contract, and a 3% salary increase granted to non-contract employees effective September 1, 1999. On October 1, 1999, a merit pay plan was put into effect which increased non-contract employee wages an average of approximately 5%. Additionally, TWA's second quarter 2000 costs for its trust plans contributed $7.2 million to the overall increase due to the new IAM Pension Fund effective January 2000. 15 * Aircraft fuel and oil expense of $144.9 million for the second quarter of 2000 was $52.9 million greater than $92.0 million recorded in the second quarter of 1999 due to an increase in the average cost per gallon to 84.8 cents in 2000 from 52.9 cents in 1999. * Passenger sales commission expense of $36.8 million in the second quarter of 2000 was $14.0 million less than the expense recorded in the second quarter of 1999 primarily due to an 11% decrease in the percentage of the commissionable tickets sold and a 3% reduction in the commission rate cap in October 1999. * Aircraft maintenance material and repairs expense of $29.5 million for the second quarter of 2000 represents a decrease of $5.1 million from $34.6 million during the same period of 1999. The primary factor contributing to this decrease was a reduction in engine material requirements and the effect of adding new lower maintenance B-757, B-767, B-717 and MD-80 aircraft to the fleet. * Depreciation and amortization expense decreased $2.8 million to $32.2 million in the second quarter of 2000 from $35.0 million in the second quarter of 1999. The decrease resulted primarily from the write-off of the carrying value of abandoned international routes in the fourth quarter of 1999 and a reduction in expense for ground equipment. * Aircraft lease rentals increased $39.4 million to $137.7 million in the second quarter of 2000 from $98.3 million in the second quarter of 1999. This increase includes rentals on 43 new aircraft delivered during and since the second quarter 1999, in addition to the sale and leaseback of B-767 and B-757 aircraft as part of TWA's aggressive fleet renewal plan. * Other rent and landing fees were $48.6 million in the second quarter of 2000 versus $49.8 million in the second quarter of 1999, a decrease of $1.2 million. Increases were experienced in landing fees of $0.6 million which were offset by decreases of $1.8 million for space rentals at certain airports and ground equipment rentals in the second quarter of 2000 as compared to the same period in 1999. * All other operating expenses of $180.1 million in the second quarter of 2000 were $5.3 million more than the $174.8 million recorded in the second quarter of 1999, primarily represented by increases in computerized reservation system fees ($2.1 million) and expenses related to the Trans World Express regional jet code-sharing agreement ($9.7 million), partially offset by a reduction in consulting fees ($5.7 million). Other charges (credits) were a net charge of $12.5 million during the second quarter of 2000 compared to a net charge of $18.1 million for the second quarter of 1999. Interest expense decreased $2.3 million in the second quarter of 2000 from the same period in 1999 as a result of the retirement of certain debt in 1999 and 2000. Interest and investment income decreased $1.7 million in the second quarter of 2000 primarily due to a decrease in the level of invested funds. Net gains (losses) from the disposition of assets were net gains of $0.5 million and net losses of $3.8 million during the second quarters of 2000 and 1999, respectively. The net gains in the second quarter of 2000 included the sale of five jetways and a power system at Los Angeles International Airport. The net losses in 1999 included a loss from the sale and leaseback of four B-767 aircraft in April 1999, partially offset by gains from the sale of fourteen RB-211 engines. Other charges and credits - net increased $0.7 million in the second quarter of 2000 compared to the second quarter of 1999 primarily due to TWA's share of estimated earnings in Worldspan for the second quarter 2000 exceeding the earnings for 1999. A tax provision of $7.0 million was recorded in the second quarter of 2000 compared to $5.6 million in the second quarter of 1999 (see Note 2 to Consolidated Financial Statements). 16 In December 1999, the Securities and Exchange Commission issued SAB No. 101, "Revenue Recognition in Financial Statements", which provides guidance on the recognition, presentation and disclosure of revenue in financial statements. Although SAB 101 does not change existing accounting rules on revenue recognition, certain changes in accounting to apply the guidance in SAB 101 may be accounted for as a change in accounting principle. Effective January 1, 2000, the Company changed its method of accounting for the sale of Aviator miles to business partners. Previously, TWA and most other major airlines accounted for the proceeds received from the sale of affinity miles as revenue during the month of sale, net of the estimated incremental cost of providing future air travel. Under the new accounting method, that portion of the revenue from the sale of miles which is estimated to reflect the fair value of future transportation to be provided will be deferred and recognized in income when the transportation is provided. The remaining portion of the sale proceeds will continue to be recognized at the time of sale as other revenue. The Company believes the new method results in better matching of revenue with the period in which travel services are provided. The cumulative effect of this change resulted in a charge to earnings of $12.8 million in the first quarter of 2000. Prior period financial statements have not been restated. If the newly adopted policy had been applied in the prior year, the impact on net income would have been immaterial. The Company had a net loss of $4.2 million in the second quarter of 2000 compared to a net loss of $6.2 million in the same period of 1999. The second quarter of 1999 results include an extraordinary charge of $0.9 million related to the premium on the early retirement of 11 3/8% Senior Secured Notes due 2003 ("11 3/8% Notes") and 10 1/4% Senior Secured Notes ("10 1/4% Notes") which were redeemed to comply with the requirements of the indentures for such notes in order to permit TWA to sell a portion of the collateral securing the 11 3/8% Notes and all of the collateral securing the 10 1/4% Notes. RESULTS OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2000 COMPARED TO THE SIX MONTHS ENDED JUNE 30, 1999 For the first six months of 2000, TWA reported an operating loss of $88.6 million compared to a prior year operating loss of $19.2 million, an unfavorable change of $69.4 million. The Company reported a pre-tax loss of $91.7 million, which was an increase of $65.9 million from the 1999 pre-tax loss of $25.8 million. The net loss of $80.3 million in the first six months of 2000 represented a $52.5 million increase over the net loss of $27.8 million for the comparable period of 1999. The net loss for the first six months of 2000 included a charge of $12.8 million for the cumulative effect of accounting change related to a change in method of accounting for the sale of Aviator miles to business partners in the Company's frequent flyer program. Total operating revenues were $1,763.9 million in the first six months of 2000, a $133.3 million increase from operating revenues of $1,630.6 million for the comparable period of 1999. Passenger revenue for the first six months of $1,597.6 million improved $125.0 million over passenger revenue of $1,472.6 million from the prior year period largely due to more efficient utilization of its revitalized fleet and changes in its route structure. In the first six months of 2000, the Company introduced the first regional jets into its route structure through code-sharing agreements that contributed to both the increase in passenger revenue and the $8.1 million increase in all other revenues. System-wide capacity, as measured by scheduled ASMs, increased 8.2% in the first six months of 2000 over the comparable period of 1999. Domestic ASMs increased 11.8% while international ASMs decreased 13.5%. Revenue passenger miles (RPMs) in scheduled service for the quarter were 13,215 million compared with 12,637 million RPMs in the first six months of 1999 representing a 4.6% increase. The system passenger load factor decreased 2.5 percentage points in the first six months of 2000 versus the same period in 1999 to 71.1% from 73.6% resulting from a greater increase in ASMs than RPMs. System yield increased 3.8% to 12.09 17 cents in the first six months of 2000 compared to 11.65 cents in 1999 reflecting higher overall industry fare levels and improvements in TWA's domestic front cabin yield partly in response to increased marketing efforts in support of TWA's special FirstUp fare. RASM increased year over year to 8.60 cents in the first six months of 2000 from 8.58 cents in the first six months of 1999. Since June 1999, TWA has taken delivery of 37 new aircraft of which 28 aircraft were delivered in 1999 and nine aircraft were delivered in the first six months of 2000. Operating expenses per available seat mile (CASM) increased 4.0% to 9.83 cents from 9.43 cents for the first six months of 1999. The CASM increase was heavily impacted by increased fuel costs, the increase in aircraft rental expense resulting from the replacement of older aircraft with new modern equipment and increased labor costs associated with new collective bargaining agreements. Operating expenses increased $202.7 million during the first six months of 2000 to $1,852.5 million from $1,649.8 million during the first six months of 1999, representing a net change in the following expense groups: * Salaries, wages and benefits were $662.0 million during the first six months of 2000 compared to $621.2 million during the first six months of 1999, an increase of $40.8 million. The average number of full-time equivalent employees decreased 2.4% to 20,606 in the first six months of 2000 versus 21,110 in the first six months of 1999. This headcount reduction was more than offset by the August 1, 1999 salary increase to IAM-represented employees, a September 1, 1999 increase in pilot salary as provided in their current contract, and a 3% salary increase granted to non-contract employees effective September 1, 1999. On October 1, 1999, a merit pay plan was put into effect which increased non-contract employee wages an average of approximately 5%. Additionally, TWA's first six months of 2000 costs for its trust plans contributed $14.9 million to the overall increase when compared to the first six months of 1999 primarily due to the new IAM Pension Fund effective January 2000. * Aircraft fuel and oil expense of $285.3 million for the first six months of 2000 was $120.7 million greater than $164.6 million recorded in the first six months of 1999 due to an increase in the average cost per gallon to 86.3 cents in 2000 from 49.1 cents in 1999. * Passenger sales commission expense of $68.1 million in the first six months of 2000 was $27.3 million less than the expense recorded in the first six months of 1999 primarily due to a 12% decrease in the percentage of the commissionable tickets sold and a 3% reduction in the commission rate cap in October 1999. * Aircraft maintenance material and repairs expense of $55.0 million for the first six months of 2000 represents a decrease of $17.9 million from $72.9 million during the same period of 1999. The primary factor contributing to this decrease was a reduction in engine material requirements and the effect of adding new lower maintenance B-757, B-767, B-717 and MD-80 aircraft to the fleet. * Depreciation and amortization expense decreased $7.0 million to $65.3 million in the first six months of 2000 from $72.3 million in the first six months of 1999. The decrease resulted primarily from the sale and leaseback of four B-767 aircraft and the write-off of the carrying value of abandoned international routes in the fourth quarter of 1999. * Aircraft lease rentals increased $81.5 million to $270.2 million in the first six months of 2000 from $188.6 million in the first six months of 1999. This increase includes rentals on 46 new aircraft delivered during and since the first six months of 1999, in addition to the sale and leaseback of B-767 and B-757 aircraft as part of TWA's aggressive fleet renewal plan. 18 * Other rent and landing fees were $97.5 million in the first six months of 2000 versus $96.8 million in the first six months of 1999, an increase of $0.7 million. Increases were experienced in landing fees of $1.8 million, offset by a decrease of $1.1 million in space rentals at certain airports during 2000 compared to the first six months of 1999. * All other operating expenses of $349.1 million in the first six months of 2000 were $11.1 million more than the $338.0 million recorded in the first six months of 1999, primarily represented by increases in computerized reservation system fees and expenses related to the Trans World Express regional jet code-sharing agreement, partially offset by a reduction in consulting fees. Other charges (credits) were a net charge of $3.1 million during the first six months of 2000 compared to a net charge of $6.6 million for the first six months of 1999. Interest expense decreased $2.7 million in the first six months of 2000 from the same period in 1999 as a result of the retirement of certain debt in 1999 and 2000. Interest and investment income decreased $2.8 million in the first six months of 2000 primarily due to a decrease in the level of invested funds. Net gains from the disposition of assets were $2.9 million during the first six months of 2000 compared to a loss of $1.7 million in 1999. The net gains in the first six months of 2000 included the sale of 19 spare L-1011, B-767 and B-727 engines and the sale of five jetways and a power system at Los Angeles International Airport. The net losses in 1999 included a net loss on the sale/leaseback of four B-767 aircraft, partially offset by a gain on the sale of sixteen RB-211 engines, four JT8D engines and one B-747 aircraft. Other charges and credits - net showed an unfavorable decline of $1.0 million in the first six months of 2000 compared to the first six months of 1999 due to the 2000 gain from the sale of TWA's remaining holdings in Equant ($16.7 million) which was less than a similar gain recorded in the comparable period of 1999 ($21.3 million). This decrease was partially offset by a $4.3 million increase in TWA's share of estimated earnings in Worldspan as compared to the earnings recorded in the comparable period of 1999. A tax benefit of $24.2 million was recorded in the first six months of 2000 compared to a provision of $1.1 million in the first six months of 1999 (see Note 2 to Consolidated Financial Statements). In December 1999, the Securities and Exchange Commission issued SAB No. 101, "Revenue Recognition in Financial Statements", which provides guidance on the recognition, presentation and disclosure of revenue in financial statements. Although SAB 101 does not change existing accounting rules on revenue recognition, certain changes in accounting to apply the guidance in SAB 101 may be accounted for as a change in accounting principle. Effective January 1, 2000, the Company changed its method of accounting for the sale of Aviator miles to business partners. Previously, TWA and most other major airlines accounted for the proceeds received from the sale of affinity miles as revenue during the month of sale, net of the estimated incremental cost of providing future air travel. Under the new accounting method, that portion of the revenue from the sale of miles which is estimated to reflect the fair value of future transportation to be provided will be deferred and recognized in income when the transportation is provided. The remaining portion of the sale proceeds will continue to be recognized at the time of sale as other revenue. The Company believes the new method results in better matching of revenue with the period in which travel services are provided. The cumulative effect of this change resulted in a charge to earnings of $12.8 million in the first quarter of 2000. Prior period financial statements have not been restated. If the newly adopted policy had been applied in the prior year, the impact on net income would have been immaterial. The Company had a net loss of $80.3 million in the first six months of 2000 compared to a net loss of $27.8 million in the same period of 1999. The 1999 results include an extraordinary charge of $0.9 million related to the premium on the early retirement of 11 3/8% Notes and 10 1/4% Notes which were redeemed to comply with the requirements of the indentures for such notes in order to permit TWA to sell a portion of the collateral securing the 11 3/8% Notes and all of the collateral securing the 10 1/4% Notes. 19 LIQUIDITY AND CAPITAL RESOURCES The following is a discussion of the impact of significant factors affecting TWA's liquidity position and capital resources. These comments should be read in conjunction with, and are qualified in their entirety by, the Consolidated Financial Statements and Notes thereto. Liquidity The Company's consolidated cash and cash equivalents balance at June 30, 2000 was $194.3 million, a $13.9 million increase from the December 31, 1999 balance of $180.4 million. Operating activities provided $42.2 million in cash in the first six months of 2000 versus cash provided of $97.8 million in 1999. The decrease in cash provided from operations resulted from an increased net loss of $52.6 million in the first six months of 2000 as compared to the same period in 1999. Both 1999 and 2000, however, include gains from the sale of shares in Equant, $21.3 million and $16.7 million, respectively. The impact of the larger net loss was offset by an improvement of $32.5 million in the cash provided by advance ticket sales and by an improvement of $15.1 million in the cash provided by trade accounts payable and accrued expenses primarily due to the timing of payments of certain obligations in the comparative periods. Cash used by investing activities decreased to $21.9 million in the first six months of 2000 versus $54.3 million in the first six months of 1999. Capital expenditures (including aircraft predelivery deposits) during the first six months of 2000 amounted to $28.2 million. This compared to $46.8 million during the first six months of 1999 after excluding cash used to purchase one B-767-200 aircraft and related engines for $27.1 million. Asset sales during both periods were primarily limited to retired, widebody aircraft, engines and other surplus equipment. Additionally, approximately $9.6 million was provided in 1999 primarily due to the return of predelivery deposits relating to two new B-757-200 aircraft delivered in March and May 1999, which were immediately sold to and leased back under operating leases from an aircraft lessor. Cash used by financing activities was $6.4 million in the first six months of 2000 versus $7.3 million in the same period of 1999. Proceeds from the sale and leaseback of certain aircraft were $94.4 million in the first six months of 2000 relating to the sale and leaseback of two B-757 aircraft versus $80.6 million in the comparable period in 1999 relating to the sale and leaseback of four B-767-200 aircraft. Repayments of long-term debt and capital lease obligations were $100.8 million in the first six months of 2000, including $72.6 million of debt associated with the sale and leaseback of two B-757 aircraft, compared to $76.6 million in the first six months of 1999, including $43.3 million of debt associated with the sale and leaseback of four B-767-200 aircraft. Cash dividends of $11.7 million on preferred stock were paid in the first six months of 1999, however, the Board of Directors determined not to declare the payment of the dividend on either issue of preferred stock in the first and second quarters of 2000. The Company's ability to improve its operating results and financial position will depend on a variety of factors, several of which are described below, and some of which are outside of management's control. The Company will face higher full year labor costs in 2000 as a result of new labor contracts entered into in 1999 and scheduled increases in 2000 offset, in part, by an anticipated reduction in head count achieved primarily through attrition. In addition, jet fuel costs have increased substantially in 2000. The Company has not hedged the costs of any of its future fuel requirements and accordingly, until such prices abate or unless the fuel surcharge previously imposed by the Company is sufficient to cover such higher costs, such additional costs will continue to adversely affect its operating results. The Company's ability to maintain adequate liquidity to assure viability will depend on its ability to improve its operating results by generating increased revenues and controlling costs 20 or, if insufficient, on its ability to attract new capital and, if necessary, sell or finance assets such as its interest in Worldspan. Capital Resources TWA has no unused credit lines and must satisfy all of its working capital and capital expenditure requirements from cash provided by operating activities, from external borrowings or from sales of assets. Substantially all of TWA's strategic assets, including its owned aircraft, ground equipment, gates and slots have been pledged to secure various issues of outstanding indebtedness of the Company. Sales of such assets which are not replaced would, under the terms of the applicable financing agreements, generally require payment of the proceeds from such dispositions or payment of the indebtedness secured thereby. TWA has relatively few non-strategic assets which it could monetize, many of such assets being subject to various liens and security interests which would restrict and/or limit the ability of TWA to realize any significant proceeds from the sale thereof. The Company believes that its 26.315% interest in Worldspan has substantial value, net of certain encumbrances. The Company is currently considering various alternatives to monetize this asset. Should the Company require additional liquidity and be unable to monetize its holdings in Worldspan in a timely manner and should its access to capital from outside sources be constrained, the Company may not be able to make certain capital expenditures or implement certain other aspects of its strategic plan, and the Company may therefore be unable to achieve the full benefits expected therefrom. This could adversely affect TWA's operations and future viability. The outstanding balance of the Company's 9.8% Airline Receivable Asset Backed Notes, aggregating $100 million, mature beginning in January 2001 and would require repayment within 60 days unless their maturity date is extended or is refinanced. The Company intends to extend or refinance this obligation, although no assurance can be given that it will be successful in this regard. However, these Asset Backed Notes are secured by collateral with an average value in 1999 of over $175 million which the Company believes should be sufficient to allow such financing. Commitments TWA finalized the terms of the purchase orders for 50 B-717-200 aircraft in June of 1999 and the terms of options for an additional 50 B-717-200 aircraft. Financing agreements on these B-717-200 aircraft were also finalized in June of 1999. The first B-717-200 aircraft was delivered in February 2000 and five additional aircraft were delivered by June 2000. During the remainder of 2000, TWA expects to take delivery of nine additional aircraft. In December 1999, TWA finalized the terms of the purchase orders for 38 A318 aircraft and the terms of options for an additional 75 "A320 Family" aircraft. Predelivery payments were made by TWA in December 1999 and January 2000 for A318 aircraft, totaling approximately $8.9 million; no further predelivery payments will be required until 2002. Deliveries of the 38 aircraft are scheduled to commence in 2004. Financing agreements on 25 of these A318 aircraft were also finalized in December of 1999. Should Airbus fail to provide or arrange for financing for any of the remaining 13 A318 aircraft, TWA would have the right to terminate the purchase order for those aircraft. In June, 2000, TWA finalized the terms of purchase orders for 25 A319 aircraft in addition to the A318 aircraft and "A320 aircraft" options described above. Predelivery payments totaling $4.0 million have been made by TWA and approximately $3.0 million will be due in October, 2000. Financing agreements on 16 of these A319 aircraft were also finalized in June 2000. Five of the A319 aircraft are subject to 21 cancellation by TWA. Should Airbus fail to provide or arrange for financing for any of the remaining four aircraft, TWA would have the right to terminate the purchase order for those aircraft. These aircraft would primarily replace B-727, DC-9 and MD-80 aircraft currently in TWA's fleet. Both the B-717 and the Airbus 318 and A319 financing commitments are subject to a "material adverse change" clause. Those provisions are comparable to those contained in prior agreements for the acquisition of B-757 and MD-80 aircraft. Such provisions generally allow the manufacturer to withdraw the financing commitment on one or more undelivered aircraft in the event there is a material adverse change in the financial condition of TWA which would adversely affect TWA's ability to perform under the purchase order, financing documentation or any related transaction. In the event Boeing or Airbus withdraws its financing commitment with respect to one or more of the aircraft, TWA has a comparable right to terminate the purchase order for those aircraft. In April 1999, TWA sold and leased back four B-767-200 aircraft and completed a sale/leaseback in July 1999 of a fifth such aircraft. In connection with this transaction, the Company purchased $28.8 million total principal amount of its outstanding 11 3/8% Notes and all of its outstanding 10 1/4% Senior Secured Notes due June 15, 2003 which totaled $14.5 million. These five B-767-200 aircraft will be replaced with three B-767-300 aircraft from the same aircraft lessor. As of March 31, 2000, three B-767-200 aircraft had been returned and three B-767-300 aircraft have been leased. A fourth B-767-200 aircraft was returned on May 1, 2000. The fifth B-767-200 aircraft will be returned later in 2000. Certain Other Capital Requirements TWA generally does not commit to expenditures for facilities and equipment, other than aircraft, before purchase and, therefore, no such significant commitments exist at the present time. TWA's ability to finance these expenditures will depend in part on TWA's financial condition at the time of the proposed expenditure. Restructuring Liabilities At December 31, 1998, TWA established a provision related to the restructuring of its international operations and the closure of the Los Angeles Reservation Office. The Company recorded a special charge of approximately $17.6 million primarily related to employee severance liabilities. During 1999, the Company incurred approximately $4.2 million of expenditures related to these provisions. Management's initial estimates of the 1998 restructuring costs were reduced by $6.8 million due to international regulatory involvement which precluded the Company from carrying out its original restructuring plan. The Company continues to expect severance costs of $4.8 million to be paid to the affected respective employees during the remainder of 2000 due to these changes in operations. During 1999, the plans related to restructuring international operations were overtaken by the serious deterioration in performance on the JFK to Madrid, Barcelona, and Rome routes. In the fourth quarter of 1999, the decision was made by the Board of Directors to close these three routes. TWA established a provision related to these closures of approximately $91.6 million which included $79.3 million write-off of the value of the routes, and $12.3 million primarily related to government-mandated employee severance for approximately 200 operational, management and administrative employees. The Company is in negotiations concerning expected severance costs for the Italian restructuring of operations and has concluded settlement of expected 22 severance costs for the restructuring in Spain. The Company continues to expect the $10.4 million remaining route closure costs will be paid during the remainder of 2000 and into the first quarter 2001. The 1998 special charges include:
ACCRUAL AT PAID THROUGH ACCRUAL AT DECEMBER 31, 1999 JUNE 30, 2000 JUNE 30, 2000 ----------------- ------------- ------------- Severance $ 6.6 $ 1.8 $ 4.8 Other costs - - - ----------------- ------------- ------------- $ 6.6 $ 1.8 $ 4.8 ================= ============= ============= The 1999 special charges include: AMOUNT ACCRUAL AT PAID THROUGH ACCRUAL AT DECEMBER 31, 1999 JUNE 30, 2000 JUNE 30, 2000 ----------------- ------------- ------------- Severance $ 11.4 $ 1.9 $ 9.5 Other costs 0.9 - 0.9 ----------------- ------------- ------------- $ 12.3 $ 1.9 $10.4 ================= ============= =============
Availability of NOLs TWA estimates that it had, for federal income tax purposes, net operating loss carryforwards ("NOLs") amounting to approximately $1,128 million at December 31, 1999. Such NOLs expire in 2008 through 2019 if not utilized before then to offset taxable income. Section 382 of the Internal Revenue Code of 1986, as amended, and regulations issued thereunder impose limitations on the ability of corporations to use NOLs if the corporation experiences a more than 50% change in ownership during certain periods. Changes in ownership in future periods could substantially restrict the Company's ability to utilize its tax net operating loss carryforwards. The Company believes that no such ownership change has occurred subsequent to the 1995 reorganization. There can be no assurance, however, that such an ownership change will not occur in the future. In addition, the NOLs are subject to examination by the Internal Revenue Service ("IRS") and, thus, are subject to adjustment or disallowance resulting from any such IRS examination. For financial reporting purposes, the tax benefits related to the utilization of the tax net operating loss carryforwards generated prior to the 1995 reorganization of approximately $491 million will, to the extent realized in future periods, have no impact on the Company's operating results, but instead be applied to reduce reorganization value in excess of amounts allocable to identifiable assets. Slot Restrictions The FAA has designated JFK and LaGuardia, O'Hare and Reagan National as "high density traffic airports" and has limited the number of departure and arrival slots at those airports. Currently, such slots may be voluntarily sold or transferred between carriers. In May 2000, the Aviation Investment and Reform Act for the 21st Century was enacted changing the restrictions on slots at these airports. At O'Hare, this legislation alters the usage of slots immediately and entirely eliminates slot restrictions at the airport effective July 2, 2002. The legislation eliminates slot restrictions at JFK and LaGuardia effective January 2, 2007. The legislation increases slightly the slots available at Reagan National. On July 5, 2000, TWA was granted additional slots to fly one round trip daily between Reagan 23 National and Los Angeles International Airport. Considering these developments, the Company evaluated the carrying value of the slots at these affected airports in accordance with Statement of Financial Accounting Standards No. 121, "Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed of." Based upon the results of this evaluation, the Company does not presently expect the changes in slot restrictions will significantly impact its operations at these airports. The Company expects the carrying values of the slots will be recovered through future operating cash flows associated with these assets. Accordingly, no change in carrying value or useful life was deemed necessary. At June 30, 2000, the net book value of slots at JFK and LaGuardia, O'Hare, and Reagan National was $42.6 million, $5.0 million and $25.0 million, respectively. New Accounting Pronouncements In June 1998, the Financial Accounting Standards Board issued Statement No. 133, "Accounting for Derivative Instruments and Hedging Activities". This statement establishes accounting and reporting standards for derivative instruments and all hedging activities. It requires that an entity recognize all derivatives as either assets or liabilities at their fair values. Accounting for changes in the fair value of a derivative depends on its designation and effectiveness. For derivatives that qualify as effective hedges, the change in fair value will have no impact on earnings until the hedged item affects earnings. For derivatives that are not designated as hedging instruments, or for the ineffective portion of a hedging instrument, the change in fair value will affect current period earnings. With the deferral of the effective date of Statement No. 133, the Company will adopt this standard during its first quarter of fiscal 2001 and does not presently believe that it will have a significant effect on its results of operations or cash flows. ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK The risk inherent in the Company's market risk sensitive instruments and positions is the potential loss arising from adverse changes in those factors. TWA is susceptible to certain risks related to changes in the cost of jet fuel, changes in interest rates and foreign currency exchange rate fluctuations. The Company does not purchase or hold any derivative financial instruments for trading purposes. 24 Aircraft Fuel Airline operators are inherently dependent upon energy to operate and, therefore, are impacted by changes in jet fuel prices. Jet fuel and oil consumed in the first six months of 2000 represented approximately 15.3% of TWA's operating expenses. TWA endeavors to acquire jet fuel at the lowest prevailing prices possible. TWA's earnings are affected by changes in the price and availability of aircraft fuel. The Company hedges its exposure to jet fuel price market risk only on a limited basis. The fair value of outstanding derivative commodity instruments (primarily commodity swap agreements) related to the Company's jet fuel price market risk during the first six months of 2000 and at June 30, 1999 was immaterial. A one cent change in the average cost of jet fuel would impact TWA's aircraft fuel expense by approximately $6.6 million per year, based upon consumption in the first six months of 2000. Interest Rates Airline operators are also inherently capital intensive, as the vast majority of assets are aircraft, which are long lived. TWA's exposure to market risk associated with changes in interest rates relates primarily to its debt obligations. The Company does not have significant exposure to changes in cash flows resulting from changes in interest rates as substantially all its long-term debt carries fixed rates of interest. The nature of fixed rate obligations does expose the Company to the risk of changes in the fair value of these instruments. The Company has outstanding debt of $595 million, net of unamortized discounts and including current maturities at June 30, 2000. The contractual maturities of long-term debt and the associated average interest rates are as follows:
CONTRACTUAL AMOUNTS WEIGHTED AVERAGE MATURITY DATE IN THOUSANDS INTEREST RATE ------------- ------------ ---------------- 2000 $ 47,820 9.08% 2001 163,437 9.47% 2002 64,975 11.63% 2003 31,618 10.72% 2004 141,975 11.55% Thereafter 154,120 11.07%
Foreign Currency Exchange Rates Airline operators who fly internationally are exposed to the effect of foreign exchange rate fluctuations on the U.S. dollar value of foreign currency-denominated operating revenues and expenses. While international operations generated 8.4% of TWA's operating revenues in the first six months of 2000, a substantial portion of these related ticket sales are denominated in U.S. dollars. Additionally, no single foreign currency is a material portion of that amount. The Company does not have significant exposure to fluctuations in these currency rates because of the short-term nature of maturities of receivables and payables related to these operations. The Company has not undertaken additional actions to cover this currency risk and does not engage in any other currency risk management activity. 25 PART II - OTHER INFORMATION ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS The Annual Meeting of Stockholders of TWA was held on May 23, 2000. The following matters were considered and acted upon at the Annual Meeting: 1. The election of fifteen Directors of the Company for terms ending with the 2001 Annual Meeting of Stockholders and until their successors are elected and qualified. The following individuals were elected Directors by the holders of the Company's Common Stock, with the number of votes cast for and against each individual shown opposite their names: NAME FOR WITHHELD - ---- --- -------- John W. Bachmann 55,937,465 1,600,276 William F. Compton 55,615,774 1,921,967 Eugene P. Conese 55,926,809 1,610,932 Gerald L. Gitner 55,610,762 1,926,979 Thomas H. Jacobsen 55,939,752 1,597,989 Myron Kaplan 55,936,615 1,601,126 David M. Kennedy 55,907,446 1,630,295 Merrill A. McPeak 55,907,155 1,630,586 Thomas F. Meagher 55,933,319 1,604,422 G. Joseph Reddington 55,938,216 1,599,525 Blanche M. Touhill 55,909,086 1,628,655 The following individuals were elected Directors by the holders of the Company's Employee Preferred Stock with the number of votes cast for and against each individual shown opposite their names: IAM Preferred Stock: - -------------------- Edgar M. House 3,545,908 0 William O'Driscoll 3,545,908 0 ALPA Preferred Stock: - --------------------- Robert A. Pastore 1,605,676 0 Flight Attendant Preferred Stock: - --------------------------------- Sherry L. Cooper 1,187,100 0 2. The ratification of the appointment of KPMG LLP as independent accountants for the fiscal year ending December 31, 2000. The votes cast with regard to this proposal were as follows: FOR AGAINST ABSTAIN --- ------- ------- 62,574,814 917,043 984,568 26 ITEM 5. OTHER INFORMATION The Company's Board of Directors did not declare the dividend payments on either the 8% Preferred Stock or the 9 1/4% Preferred Stock which were due on March 15 and June 15, 2000, in the total amounts of $5.2 million and $1.9 million, respectively. If the dividends on the 8% and 9 1/4% Preferred Stock were to continue in arrears and if the arrears were to aggregate in an amount equal to at least six quarterly dividends on either issue, the holders of the 8% Preferred Stock and the 9 1/4% Preferred Stock voting separately as a class without regard to the series, will be entitled to elect at the next annual or special meeting of the shareholders of the Company, two directors to serve until all dividends accumulated and unpaid have been paid or declared and funds set aside to provide for payment in full. 27 ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (A) EXHIBITS 2.1 - Joint Plan of Reorganization, dated May 12, 1995 (Appendix B to the Registrant's Registration Statement on Form S-4, Registration Number 33-84944, as amended) 2.2 - Modification to Joint Plan of Reorganization, dated July 14, 1995 and Supplemental Modifications to Joint Plan of Reorganization dated August 2, 1995 (Exhibit 2.5 to 6/95 10-Q) 2.3 - Findings of Fact, Conclusions of Law and Order Confirming Modified Joint Plan of Reorganization, dated August 4, 1995, with Exhibits A-B attached (Exhibit 2.6 to 6/95 10-Q) 2.4 - Final Decree, dated December 28, 1995, related to the 1995 Reorganization (Exhibit 2.7 to 12/31/95 Form 10-K) 3(i) - Third Amended and Restated Certificate of Incorporation of the Registrant (Exhibit 3(i) to the Registrant's Registration Statement on Form S-4, Registration Number 333-26645) 3(ii) - Amended and Restated By-Laws of Trans World Airlines, Inc., effective September 28, 1999 (Exhibit 3(ii) to 9/99 10-Q) 4.1 - Voting Trust Agreement, dated November 3, 1993, between TWA and LaSalle National Trust, N.A. as trustee (Exhibit 4.3 to 9/93 10-Q) 4.2 - IAM Trans World Employees' Stock Ownership Plan and related Trust Agreement, dated August 31, 1993, between TWA, the IAM Plan Trustee Committee and the IAM Trustee (Exhibit to 9/93 10-Q) 4.3 - IFFA Trans World Employees' Stock Ownership Plan and related Trust Agreement, dated August 31, 1993, between TWA, the IFFA Plan Trustee Committee and the IFFA Trustee (Exhibit 4.5 to 9/93 10-Q) 4.4 - Trans World Airlines, Inc. Employee Stock Ownership Plan, dated August 31, 1993, First Amendment thereto, dated October 31, 1993, and related Trust Agreement, dated August 31, 1993, between TWA and the ESOP Trustee (Exhibit 4.6 to 9/93 10-Q) 4.5 - ALPA Stock Trust, dated August 31, 1993, between TWA and the ALPA Trustee (Exhibit 4.7 to 9/93 10-Q) 4.6 - Stockholders Agreement, dated November 3, 1993, among TWA, LaSalle National Trust, N.A., as Voting Trustee and the ALPA Trustee, IAM Trustee, IFFA Trustee and Other Employee Trustee (each as defined therein), as amended by the Addendum to Stockholders dated November 3, 1993 (Exhibit 4.8 to 9/93 10-Q) 4.7 - Registration Rights Agreement, dated November 3, 1993, between TWA and the Initial Significant Holders (Exhibit 4.9 to 9/93 10-Q) 4.8 - Indenture between TWA and Harris Trust and Savings Bank, dated November 3, 1993 relating to TWA's 8% Senior Secured Notes Due 2000 (Exhibit 4.11 to 9/93 10-Q) 4.9 - Indenture between TWA and American National Bank and Trust Company of Chicago, N.A., dated November 3, 1993 relating to TWA's 8% Secured Notes Due 2001 (Exhibit 4.12 to 9/93 10-Q) 4.10 - The TWA Air Line Pilots 1995 Employee Stock Ownership Plan, effective as of January 1, 1995 (Exhibit 4.12 to 9/95 10-Q) 4.11 - TWA Air Line Pilots Supplemental Stock Plan, effective September 1, 1994 (Exhibit 4.13 to 9/95 10-Q) 4.12 - TWA Air Line Pilots Supplemental Stock Plan Trust, effective August 23, 1995 (Exhibit 4.14 to 9/95 10-Q) 4.13 - TWA Air Line Pilots Supplemental Stock Plan Custodial Agreement, effective August 23, 1995 (Exhibit 4.15 to 9/95 10-Q) 4.14 - Form of Indenture relating to TWA's 8% Convertible Subordinated Debentures Due 2006 (Exhibit 4.16 to Registrants Registration Statement on Form S-3, No. 333-04977) 4.15 - Indenture dated as of March 31, 1997 between TWA and First Security Bank, National Association relating to TWA's 12% Senior Secured Notes due 2002 (Exhibit 4.15 to Registrant's Registration Statement on Form S-4, No. 333-26645) 4.16 - Form of 12% Senior Secured Note due 2002 (contained in Indenture filed as Exhibit 4.15) 4.17 - Registration Rights Agreement dated as of March 31, 1997 between the Company and the Initial Purchaser relating to the 12% Senior Secured Notes due 2002 and the warrants to purchase 126.26 shares of TWA Common Stock (Exhibit 4.17 to Registrant's Registration Statement on Form S-4, No. 333-26645) 4.18 - Warrant Agreement dated as of March 31, 1997 between the Company and American Stock Transfer & Trust Company, as Warrant Agent, relating to warrants to purchase 126.26 shares of TWA Common Stock (Exhibit 4.18 to Registrant's Registration Statement on Form S-4, No. 333-26645) 4.19 - Form of Indenture relating to TWA's 9 1/4% Convertible Subordinated Debentures due 2007 (Exhibit 4.19 to Registrant's Registration Statement on Form S-3, No. 333-44689) 4.20 - Registration Rights Agreement dated as of December 2, 1997 between the Company and the Initial Purchasers (Exhibit 4.20 to Registrant's Registration Statement on Form S-3, No. 333-44689) 4.21 - Indenture dated as of December 9, 1997 by and between TWA and First Security Bank, National Association, as Trustee, relating to TWA's 11 1/2% Senior Secured Notes due 2004 (Exhibit 4.21 to Registrant's Registration Statement on Form S-4, No. 333-44661) 4.22 - Form 11 1/2% Senior Secured Note due 2004 (contained in Indenture filed as Exhibit 4.21) 4.23 - Registration Rights Agreement dated as of December 9, 1997 among the Company and Lazard Freres & Co. LLC and PaineWebber Incorporated, as initial purchasers, relating to TWA's 11 1/2% Senior Secured Notes due 2004 (Exhibit 4.23 to Registrant's Registration Statement on Form S-4, No. 333-44661) 4.24 - Sale and Service Agreement dated as of December 30, 1997 between TWA and Constellation Finance LLC, as purchaser, relating to TWA's receivables (Exhibit 4.24 to Registrant's Registration Statement on Form S-4, No. 333-44661) 4.25 - Registration Rights Agreement dated as of March 3, 1998 between the Company and the Initial Purchaser (Exhibit 4.25 to Registrant's Registration Statement on Form S-4, No. 333-59405) 4.26 - Indenture dated as of March 3, 1998 by and between TWA and First Security Bank, National Association, as Trustee, relating to TWA's 11 3/8% Senior Notes due 2006 (Exhibit 4.26 to Registrant's Registration Statement on Form S-4, No. 333-59405) 4.27 - Aircraft Sale and Note Purchase Agreement dated as of April 9, 1998 among TWA, First Security Bank, National Association, as Owner Trustee and Seven Sixty Seven Leasing, Inc. (Exhibit No. 4.27 to Registrant's Registration Statement on Form S-4, No. 333-59405) 4.28 - Indenture dated as of April 21, 1998 by and between TWA and First Security Bank, National Association, as Trustee, relating to TWA's 11 3/8% Senior Secured Notes due 2003 (Exhibit No. 4.28 to Registrant's Registration Statement on Form S-4, No. 333-59405) 4.29 - Form of 11 3/8% Senior Secured Notes due 2003 (contained as Exhibit 1 to Rule 144A/ Regulation S Appendix to Indenture in Exhibit 4.28) 4.30 - Registration Rights Agreement dated as of April 21, 1998 between the Company, Lazard Freres & Co. LLC and First Security Bank, National Association relating to the 11 3/8% Senior Secured Notes Due 2003 (Exhibit 4.31 to Registrant's Registration Statement on Form S-3, No. 333-56991) 10.1 - Collective Bargaining Agreement with International Association of Machinists and Aerospace Workers effective August 1, 1999 for flight attendants 10.2 - Collective Bargaining Agreement with International Association of Machinists and Aerospace Workers effective August 1, 1999 for mechanics and related employees 11 - Statement of computation of per share earnings 27 - Financial Data Schedule (B) REPORTS ON FORM 8-K No reports on Form 8-K were filed during the second quarter of 2000. [FN] - -------------- Incorporated by reference SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. TRANS WORLD AIRLINES, INC. Dated: August 14, 2000 By: /s/ Michael J. Palumbo -------------------------------------- Michael J. Palumbo Executive Vice President and Chief Financial Officer EX-10.1 2 0002.txt COLLECTIVE BARGAINING AGREEMENT AGREEMENT BETWEEN TRANS WORLD AIRLINES, INC. AND FLIGHT ATTENDANTS IN THE SERVICE OF TRANS WORLD AIRLINES, INC. AS REPRESENTED BY INTERNATIONAL ASSOCIATION OF MACHINISTS AND AEROSPACE WORKERS AUGUST 1, 1999 TABLE OF CONTENTS ARTICLE PAGE 1 (A) Recognition 1 (B) Scope 1 (C) Successorship and Parent Companies 2 (D) Labor Protective Provisions 3 (E) Bankruptcy 6 (F) Remedies 8 (G) Commuter Carriers, Code Sharing and Block Seating 9 (H) Definitions 12 2 DEFINITIONS (A) Cabin Attendant 1 (B) Service Manager 1 (C) Employee 2 (D) Block-to-Block 2 (E) Domicile 2 (F) Satellite 2 (G) Deadhead 2 (H) Month 2 (I) (1) Domestic Flight 2 (2) International Flight 2 (3) Tag Ends 3 (J) Operational Duty Hours 3 (K) Reserve 3 (L) Standby Duty 3 (1) Residence Standby 3 (2) Airport Standby 3 (M) Wide-body Aircraft 3 (N) Ferry Flight Assignment 3 (O) Average Line Value (ALV) 3 (P) Daily Credit Rate 4 (Q) Alternate Line 4 3 PAY (A) Hourly Rates Determined 1 (B) Operational Duty Pay 1 (C) Service Manager Override 1 (D) Reserves 1 (E) Night Pay 1 Page i (F) Language of Destination 1 (G) 24 in 7 2 (H) Service Manager Emergency Downgrade 2 (I) Random Drug/Alcohol Testing 2 (J) Standby Penalties 2 (K) Vacation Increment Pay 3 (L) Service Manager Temporary Upgrade 3 (M) Special Assignment 3 (N) Deadhead 3 (O) Domestic Excess on Duty 3 Schedule A 4 Domestic Cabin Attendant 4 International Cabin Attendant 4 Domestic Flight Service Manager 5 International Flight Service Manager 5 4 EXPENSES (A) Domestic Operations 1 (1) Expense Allowance 1 (2) Other Expenses 1 (3) Hotels 1 (4) Taxi Expense 1 (5) Domestic Ground Transportation 2 (B) International Operations 2 (1) Rest Facilities 3 (2) Room Selection 3 (3) Expense Allowance 3 (4) Other Expenses 3 (C) General 3 (1) Additional Expenses 3 (2) Lounges/Day Rooms 3 (3) Operational Meetings/Training/Physicals 3 (4) Crew Meals 4 (5) Drug Testing 5 (6) Payment by Employee for Training 5 (7) Parking 5 5 UNIFORMS (A) Standard Uniforms 1 (B) Purchase by Newhire Flight Attendants 1 (C) Basic Uniform Items 1 (D) Point Allowance System 1 Page ii (E) Payroll Deduction of Uniform Items 3 (F) Company Insignia 3 (G) Change in Uniforms 3 (H) Expense Cost in Change in Uniforms 3 (I) New Accessory Items 3 (J) Review of Uniform Attire by Company and Union 3 (K) Terminated and Voluntarily Resigned Flight Attendants 4 6 HOURS OF SERVICE (A)(1) Full Line Flying - Scheduling of Maximum Flight Credit 1 (A)(2) Alternate Line Flying - Scheduling of Maximum Flight Credit 1 (B) Flight Credit Hours 1 (C) Flight Pay Hours 1 (D) Determination of Flight Credit and Pay Hours 2 (E) Trip Hours 2 (1) & (2) Trip Hours (Trip Rig) 2 & 3 (3) Duty Hours (Duty Rig) - Domestic 3 (4) Duty Hours (Duty Rig) - International 3 (5) Exclusions 4 (6) No Additional Duty Hours Under Certain Circumstances 4 (7) Surface Transportation 4 (F) Vacation Credit and Pay 5 (G) Training/AER's Credit and Pay; Special Assignment 5 (H) Meetings or Courses 5 (I) Standby Duty 5 (J) Call-Out Pay 6 (K) Holding Pay 6 (L) Deadhead 6 (M) Supervisor Pay Assignments 7 (N) Flight Time Limitations; Charters 8 (O) Request for Relief from Duty 8 (P) Non-Pay Status 8 (Q) Jury Duty 8 (R) FAA Minimum Rest Regulations 9 (1) Domestic Operation 9 (2) International Operations 10 (S) 24 in 7 11 (T) Rest Seats/Facilities 11 (U) Guaranteed Days Off 11 (V) Reserve Flight Attendants 12 (W) Equipment Substitution 12 (X) Enhanced Trip Option; BLIM; Quarterly Limitations 13 (1) Enhanced Trip Option 13 Page iii (2) IP/BLIM 14 (3) Quarterly Minimums 16 (Y) Drug/Alcohol Testing 16 (Z) Guaranteed Trip Protection 16 7 PASSES (A) Passes 1 (B) Union Member System Board of Adjustment 1 (C) Reduced Rate Transportation on Union Business 1 (D) Jumpseat Authority 1 (E) Retired Employees 2 (F) Age 45 Retirement/Voluntary Termination 2 (G) Disability Retirement 2 (H) Employee Pass Privileges 2 (I) Improvements in Pass Policy 2 (J) Furloughed/Displaced Flight Attendant Passes 2 (K) Emergency Pass Privileges 3 (L) In-law Passes 3 8 SICK LEAVE (A) Sick Leave Accrual 1 (B) Proof of Illness; Written Statement 1 (C) Entitlement to Sick Leave Credit 1 (D) Three (3) Banks 1 (E) Bid Run Flight Attendant 1 Trips Missed Personal Illness Bank 1 Reserve Flight Attendant 3 (F) Exhaustion of Sick Leave 3 (G) Family Emergency 3 (H) Excess Flight Credit 4 (I) Industrial Illness/Injury 4 (J) Workers' Compensation Payments 6 (K) Obligation to Prevent Sick Leave Abuse 6 (L) Flight Attendant Requirement When Calling Off Duty 6 (M) Posting of Sick Leave Accruals 6 (N) Mid Pairing Illness/Injury 7 9 VACATIONS (A) Vacation Allowance 1 (B) Eligibility for Vacation 2 (C) Vacations Not Cumulative; Rescheduling of Vacations 3 Page iv (D) Terminating Employees 3 (E) Increment Pay 4 (F) Transfer to Overseas Domicile 4 (G) Flight Time 4 (H) Splitting of Vacation Periods 4 (I) Voluntary Vacation Sellback 4 (J) Personal Business Days 5 10 SENIORITY GENERAL (A) Seniority Accrual 1 (B) Furloughed Employees 1 (C) Retention of Seniority 1 (D) Transfers from In-Flight Services Department 1 (E) Transfers or Assignments to Other Duty 2 (F) Removal from Seniority List 2 (G) Probationary Flight Attendants 2 (H) Return to Active Duty 2 11 SENIORITY LISTS (A) Posting of Flight Attendant Seniority List 1 (B) Twice Yearly Postings 1 (C) Protest 1 (D) Successor Transaction; Merger 1 12 REDUCTION IN FORCE AND RECALL (A) Furlough Notice 1 (B) Offer of Leaves Prior to Furlough 1 (C) No Expense to Company 2 (D) Notification of Address Change 2 (E) Failure to Comply 2 (F) Seven Year Furlough Provision 3 (G) Displacement Passes 3 (H) Recall/bypass Letter of Agreement 3 (I) Furlough Pay 3 (J) Furlough Pay Exclusions 3 (K) Recall Followed by Subsequent Furlough 4 (L) Amount of Furlough Pay 5 (M) Union Notification 5 Page v 13 FILLING OF VACANCIES (A) Transfer Bids 1 (B) Special Bid Requests; Involuntary Assignments 1 (C) Displacement/Involuntary Assignment 1 (D) Permanent Bids 1 (E) Temporary Vacancies 2 (F) Passes 2 (G) Mutual Transfers 2 (H) Service Manager Vacancies 2 (I) Notification of Transfers 2 14 TRANSFER EXPENSES (A) Transfer Expenses 1 (B) Company-Requested Transfers 1 (C) Newly-Established or Re-Established Domiciles 2 15 LEAVES OF ABSENCE (A) Personal Leaves of Absence 1 (B) Medical Leaves of Absence 1 (C) Union Leaves of Absence 1 (D) Return to Duty Following Personal Leave, Maternity Leave or Adoption Leave 2 (E) Return to Duty Following Medical or Union Leave 2 (F) Military Leave 2 (G) Maternity Leave 2 (H) Adoption Leave of Absence 3 (I) Paternity Leave 3 (J) Hardship Leave 3 (K) Requirements Upon Return from Leaves of Absence 4 (L) Copies of PTO/Leave Awards to be Furnished to Union 4 (M) Submission of Bid Preferences 4 16 GRIEVANCE PROCEDURE (A) Representation 1 (1) Union 1 (2) Company 2 (3) Policy 2 (B) Full-Time Representatives 3 (C) Discipline and Discharge 4 (1) Investigation 4 Page vi (2) Request for Step I Hearing 4 (3) Failure to Request Step I Hearing 5 (4) Step I Hearing 5 (5) Step I Decision 5 (6) Company Time Limitations 6 (7) No Pay Loss Prior to Written Step I Decision 6 (8) General 6 (D) Other Grievances 7 (1) Pre-Grievance 7 (2) Step I 7 (E) Appeals 8 (1) Step II 8 (2) System Board of Adjustment 8 (F) System/General Grievance 9 (G) General Procedures 9 (1) Time Limits for Grievance Filing 9 (2) Group/"et al" Grievances 9 (3) Probationary Employees 10 (4) Untimely Grievance Appeals 10 (5) Ground Transportation 10 (6) Stenographic Report 10 (7) Work Day 10 (8) Participation 11 (9) Grievance Settlement 11 (10) Grievance Withdrawal 11 (11) Streamlining Grievance/Arbitration Procedures 11 (12) Non-Disciplinary Discussions 12 17 SYSTEM BOARDS OF ADJUSTMENT (A) Establishment of System Board of Adjustment 1 (B) Members 1 (C) Board Jurisdiction 2 (D) Board to Consider Dispute 2 (E) Neutral Referee to Serve as Chairman 2 (F) Location 2 (G) Notice of Dispute 3 (H) Selection of Referee 3 (I) Selection of Hearing Date 3 (J) Waiver of Hearing 3 (K) Decision 3 (L) Extension of Time Limits 4 (M) Representation; Witnesses 4 (N) Back-Pay Calculation 4 Page vii (O) Stenographic Report 5 (P) Filing of Transcripts/Records 5 (Q) Expenses of Board Members 5 (R) Witness Expenses 5 (S) Additional Expenses; Board Member Travel 5 (T) Non-Reprisal 5 (U) Non-Abridgement of Railway Labor Act 5 18 SCHEDULING OF FLIGHT ATTENDANTS (A) General 1 (B) System Scheduling 1 (1) Scheduling Committee 1 (2) Away From Domicile Policy 1 (3) Change in Schedules/Availability of Information 2 (4) Scheduling Committee Reimbursement 2 (5) Required Category Bids 2 (6) Additional Category Bids 2 (C) Domicile Scheduling 3 (1) General 3 (D) Domicile Scheduling Policy 4 (1) Purpose 4 (2) General 4 (3) Preparation of Bid Runs 5 (4) Flight Attendant Assignment and Bidding 6 (5) Awarding of Run Selections 12 (6) Open Time Information 14 (7) Utilization 14 (a) Maximum Utilization 14 (b) Initial Projection 14 (c) Initial Balancing 15 (d) Company Balance Limitation 16 (e) Reserve 16 (f) Balancing and Limitations 16 1) Company Same Day Calendar Balance 17 2) Balance Avoidance 21 3) Automatic Trip Drop 22 4) Trip Drop During Month 23 5) No Automatic Trip Drop During Month 23 (g) Bow-wave Option 24 (h) Excess Credit Hours 24 (i) Excess Pay Hours 25 (j) Requests for Open Time 25 (k) Unprotected Flights 25 Page viii (l) Insufficient Reserves 26 (8) Reserve 26 (a) Vacation 26 (b) Reserve Complement 26 (c) Set-up Period/Call-in Period 26 (d) Reserve Assignments 27 (e) Residence/Airport Standby 27 (f) Release from Call-in Period/Emergency Exception 29 (g) Call-In Requirements 29 (h) Unavailable During Call-In Period 29 (i) Open Time Move-up 29 (j) Reserve Recording 29 (k) Reserve List 30 (l) Spread Days 30 (9) Availability for Flight 32 (a) At Domicile and Satellite 32 1) Sequence Notification/Balancing 32 2) Return to Duty Deadline/"Soft Time" Openings 32 3) Rights to Trip 33 (b) Unprotected Flight/Domicile Layover Station 33 (c) Notification of Schedule Changes 33 (10) Trading of Flights 34 (11) Legal Rest at Layover Station After One-Way Trip 36 (12) Opposite End of Trip 36 (13) Scheduled Times Posted/Published 36 (14) Ferry Flights 36 (DD) Alternate Line Flying Scheduling 36 (E) Charters 38 (F) Satellites 40 (G) Back-To-Back Flying 41 Chart: Examples of Back-to-Back Flying 45 (H) Trip Hours Formula Pro-ration Charts 49 19 PERSONNEL FILE (A) Maintenance 1 (B) Passenger Complaint Letters 1 (C) Disciplinary Documents 2 (D) Non-Disciplinary Documents 2 (E) Inflight Observation Reports 2 (F) "IER" File/Report 2 (G) Active Service 2 Page ix 20 GENERAL (A) Copies of Agreement 1 (B) Orders in Writing 1 (C) Flight Attendant Responsibility 1 (D) Other Benefits 1 (E) Other Employment with the Company 3 (F) Customer Service Panel 3 (G) Information to be provided by the Company to IAM 3 (H) Railway Labor Act 4 (I) Miscellaneous 5 (1) Bulletin Boards 5 (2) Addresses of Employees 5 (3) Payroll Deduction for Union Dues 5 (4) Union Materials in flight Attendant Mailboxes 5 (5) Overpayments 5 (6) Drug Testing Notification 5 (7) No Unlawful Discrimination 5 (8) Direct Deposit 6 21 RETIREMENT (A) Retirement Plan Amendments 1 (1) Early Retirement 1 (2) Lump Sum Distribution 1 (3) Lump Sum Notice 2 (4) Freeze of Benefit Accruals 2 (5) Defined Benefit Plan 2 (6) Retirement Savings Plan [401(k)] 3 (B) Summary of Retirement Plan 3 (1) Type of Plan 3 (2) Participants 3 (3) Participant Eligibility 3 (4) Normal Retirement Age 3 (5) Normal Benefit Formula 4 (6) Lump Sum Distribution 5 (7) Disability Retirement 5 (8) Normal Form of Benefit 5 (9) Contingent Annuitant Option 5 (10) Optional Forms of Benefits 5 (11) Vesting in Pension Accrued to Date 5 (12) Employee Contributions 6 (13) Unisex Option Factors 6 (C) Retirement Savings Plan for Flight Attendants 6 Page x (1) Plan Restatement/401(k) and FSM Contribution 6 (2) Lump Sum 7 (3) Delivery of Contributions 7 (4) Allocation of Employer Contribution 7 (5) Cooperation and Study 8 (6) Effect of Triggering Event on 401(k) Plan 8 (7) Expense Reimbursement 8 Appendix 9 Factors 9 22 INSURANCE BENEFITS (A) Group Insurance 1 (1) Group Medical Benefit Plan 1 (B) Prescription Drug Program 5 (1) Mail Order Drug Plan 5 (2) Acute Care Drug Plan 6 (C) Dental Plan Benefits 6 (D) Life Insurance 8 (E) Group Coverage General 9 (F) Outline of Plans 9 (1) Medical Plan 9 (2) Short Term Disability 15 (3) Long Term Disability 16 (4) Accidental Death and Dismemberment 16 (5) Life Insurance 17 (6) Continuation of Insurance 18 (7) Work Stoppage 18 (8) Flight Attendant Waiver of Medical Coverage 18 (9) New Hire Coverage 19 (10) Retiree Medical Coverage 19 (11) Bomb Insurance 20 (12) Aviation Insurance 20 23 PHYSICAL EXAMINATION (A) Requirements 1 (B) Neutral Medical Examiner 1 (1) Medically Unfit for Duty 1 (2) Neutral Medical Examination 1 (C) Procedural Letter of Understanding 2 (D) Employee/Company Rights 3 Page xi 24 UNION SECURITY (A) Union Dues Check-off 1 (B) Union Security 1 (C) Returning to Position 2 (D) Loss of Membership in Good Standing 2 (E) System Board Protest 3 (F) Execution of Time Limits 4 (G) Discharge 4 (H) Notice 5 (I) Return to Employment Following Discharge or Resignation 5 (J) Notification to Employee 5 (K) Company to Furnish Names 5 (L) Dues and Initiation Fee Check-Off 5 (M) Dues Check-Off Form to be Furnished to Company 6 (N) Remittance of Union Dues 7 (O) Automatic Revocation of Union Dues Assignment 7 (P) Collection of Back Dues 7 (Q) Deduction of Membership Dues From Paycheck 7 (R) Recognition of Union Representation 8 (S) Indemnification of Company 8 (T) Definition of Time Limits 8 25 SAFETY COMMITTEE (A) Establishment of Safety Committee 1 (B) Notification of Accident or Incident 1 (C) Travel to Investigation Site 1 (D) OSHA 2000 Logs 2 (E) Acquisition of New Aircraft or Reconfiguration of Existing Aircraft 2 (F) Advisory Capacity; Non-Liability of Union 2 26 AIRCRAFT CREW COMPLEMENT (A) Basic Crew Complement 1 (B) FAA Minimum Staffing Requirement 1 (C) Additional Cabin Staffing 2 (D) Demand Staffing - Variable Staffing (VSU) 2 27 REOPENERS (A) Foreign Bases 1 (B) Merger, Purchase, Acquisition, Absorption 1 (C) Deregulation 1 Page xii (D) Wage Controls, Deferrals, Cut-Backs 1 28 DURATION OF AGREEMENT 29 LETTERS AND AGREEMENTS INDEX Page xiii AGREEMENT BETWEEN TRANS WORLD AIRLINES, INC. AND THE FLIGHT ATTENDANTS IN THE SERVICE OF TRANS WORLD AIRLINES, INC. AS REPRESENTED BY THE INTERNATIONAL ASSOCIATION OF MACHINISTS ARTICLE I (A) RECOGNITION In accordance with the certification R6482 made by the National Mediation Board on March 6, 1997, the Company hereby recognizes the International Association of Machinists and Aerospace Workers, hereinafter identified as the "IAM," as the duly designated and authorized representative of the Flight Attendants in the employ of the Company for the purposes of the Railway Labor Act, as amended. Absent agreements by the IAM, the Company agrees that it shall not extend recognition to any other labor organization or other entity as collective bargaining representative of TWA's Flight Attendants unless required by the NMB after exhaustion of NMB procedures. (B) SCOPE (1) Except as provided in Article 1 (G) below, all present and future in-flight cabin service and safety duties of any form performed by or for the Company or any Affiliate shall be provided and performed by Flight Attendants on the TWA Flight Attendant System Seniority List in accordance with the terms and conditions of this Agreement. Such in-flight cabin service and safety duties shall include without limiting the generality of the foregoing all revenue and non-revenue flights, whether scheduled or unscheduled, (1) on the Company's or an Affiliate's aircraft, or (2) under the Company's or an Affiliate's operational control, or (3) over the Company's or an Affiliate's present and future routes, route authorities, and/or extensions thereof, or (4) subcontracted either to or for any other carrier or entity, or (5) conducted by any other carrier under the TWA name, logo or marks. (2) Except as provided in Article 1 (G) below, (a) all individuals who undergo Flight Attendant training to perform the Company's or an Affiliate's in-flight cabin service and safety duties and (b) all individuals who train Flight Attendants to perform the Company's or an Affiliate's aircraft cabin service and safety duties, except as to (a) such safety duties included within Annual Emergency Reviews which may be performed by Flight Operations personnel and/or Flight Attendants and (b) initial factory-conducted training in newly ARTICLE 1 / Page 1 purchased aircraft and aircraft equipment, shall be Flight Attendants on the TWA Flight Attendant System Seniority List subject to the terms and conditions of the Agreement. (3) Absent written agreement by the IAM to the contrary, all present or future in-flight cabin service and safety duties of any form performed for any other carrier by Flight Attendants on the TWA Flight Attendant System Seniority List shall be performed under terms and conditions that are no less favorable than the comparable terms and conditions contained in the Agreement. (4) Neither the Company nor any Affiliate shall, without the IAM's prior written consent, enter into any sale, lease, transfer or other disposition of the Company's or an Affiliate's aircraft, international routes or international route authority to any person(s) or entity (the "Buyer") where the Buyer or any air carrier that Controls or is under the Control of the Buyer uses such aircraft or international routes to provide or receive passenger feed to or from the Company pursuant to an agreement or an arrangement with the Company or an Affiliate other than an industry standard interline agreement or its substantial equivalent. (5) Neither the Company nor any Affiliate shall establish any Flight Attendant domicile outside the United States or its territories without the IAM's prior written consent. (C) SUCCESSORSHIP AND PARENT COMPANIES (1) The Company and its Affiliates shall require any successor, assignee, transferee, administrator, executor and/or trustee of the Company or of a Parent (a "Successor") resulting from the transfer (in a single transaction or in multi-step transactions) to the Successor of the majority beneficial ownership and/or Control of all or substantially all of the equity securities and/or assets of the Company (a "Successorship Transaction") to employ the Flight Attendants on the TWA Flight Attendant System Seniority List in accordance with the provisions of the Agreement and to assume and be bound by the Agreement. (2) The Company and its Affiliates shall not conclude any agreement for a Successorship Transaction unless the Successor agrees in writing, as an irrevocable condition of the Successorship Transaction, to assume and be bound by the Agreement, to recognize IAM as the representative of the Successor's Flight Attendants, and to guarantee that the Flight Attendants on the TWA Flight Attendant System Seniority List will be employed by the Successor in accordance with the provisions of the Agreement. ARTICLE 1 / Page 2 (3) The Company shall not conclude, facilitate or permit any agreement or arrangement that establishes any Parent that is, Controls or is under the Control of an air carrier unless the Parent agrees in writing to be bound by this Article 1 of the Agreement in the same manner as the Company. (D) LABOR PROTECTIVE PROVISIONS (1) Successorship and Merger In the event of a Successorship Transaction in which the Successor is an air carrier or any person or entity that Controls or is under the Control of an air carrier (the "Merger Partner"), the Company shall, as a condition of the transaction, require the Merger Partner to agree, and the Merger Partner shall agree, to employ the Company's Flight Attendants and to integrate, on the basis of on-line seniority, the pre-merger Flight Attendant seniority lists of the Company and the Merger Partner in a fair and equitable manner pursuant to Sections 3 and 13 of the Allegheny-Mohawk Labor Protective Provisions ("LPPs"). (2) Flight Attendant Transfer Rights in Substantial Asset Sales. If the Company or any Affiliate, in a single transaction or a series of related transactions: (i) sells, transfers or disposes of assets which have produced more than twenty (20%) percent of the gross operating revenue of the Company over the twelve (12) months preceding the closing of the asset sale, transfer or disposition; or (ii) sells, transfers, or disposes of assets or operations which reduce(s) or reasonably can be expected to lead to a reduction in the level of available seat miles ("ASMs") operated by the Company at the closing of the asset sale, transfer or disposition by fifteen (15%) percent or more. (iii) sells, transfers or disposes of any international route or route authority; or (iv) sells, transfers or disposes of ten (10%) or more of the Company's aircraft fleet as of the closing of the aircraft sale, transfer or disposition (except as part of a phased transport aircraft replacement program which is being diligently pursued in good faith by the Company, and pursuant to which the Company in fact replaces such aircraft within 180 days) to a person or entity or to a group of persons or entities acting in concert (the "Purchaser") that is, Controls ARTICLE 1 / Page 3 or is under the Control of an air carrier or that will operate as, Control or be under the Control of an air carrier following its acquisition of the Company assets (any such transaction or series of transactions that satisfies (i), (ii), (iii) or (iv) above, a "Substantial Asset Sale"), then: (a) The IAM shall determine, in its sole discretion, whether or not Flight Attendants from the TWA Flight Attendant System Seniority List (the "Transferring Flight Attendants") shall transfer to the particular Purchaser(s) pursuant to the Substantial Asset Sale. The number of Transferring Flight Attendants shall be determined by calculating the average Flight Attendant staffing on a monthly basis over the prior twelve (12) months attributable to the international route or route authority, aircraft and/or other assets or operations transferred to the particular Purchaser in connection with the Substantial Asset Sale. In addition to the above requirements the Company shall use its reasonable good faith efforts to have the particular Purchaser offer employment to the largest practicable number of TWA Flight Attendants as Transferring Flight Attendants under the terms of this Article 1(D); and (b) The Transferring Flight Attendants shall be selected on the basis of TWA system seniority on the TWA Flight Attendant System Seniority List from those Flight Attendants who are qualified, or who with FAA required training can become qualified, to serve on the aircraft, route, or operation related to the Substantial Asset Sale. (c) The Company and its Affiliates shall require each particular Purchaser, and each particular Purchaser shall agree, (i) to employ the Transferring Flight Attendants; (ii) to pay the Transferring Flight Attendants at no less than the lesser of the rates of pay being paid by TWA or the particular Purchaser for the applicable seniority level at the time of the transfer; and (iii) to integrate the Transferring Flight Attendants into the Purchaser's Flight Attendant seniority list in a fair and equitable manner pursuant to Sections 3 and 13 of the Allegheny Mohawk LPPs. (3) Special Protections in a Carrier Fragmentation ARTICLE 1 / Page 4 (a) If the Company sells, transfers or disposes of assets within any twelve (12) month period which, net of asset purchases or acquisitions during the same twelve (12) month period, (i) produced fifteen (15%) percent or more of the ASMs operated by the Company over the prior twelve (12) months, or (ii) produced fifteen (15%) percent or more of the Company's Flight Attendant staffing positions over the prior twelve (12) months, or (iii) produced fifteen (15%) percent or more of the Company's annual block hours over the prior twelve (12) months (the closing of any such transaction(s) which alone or in the aggregate satisfy the aforesaid percentage being referred to as a "Triggering Event), then (1) no Flight Attendant on the Company's seniority list on the date of the Triggering Event shall be furloughed during the twelve (12) month period following the Triggering Event, or shall be furloughed in anticipation of any Triggering Event or for the purpose of depriving any Flight Attendant of protection under this paragraph; and (2) during the time period in which any of the restrictions described in this Article 1(D)(3) are in effect, the Company will be permitted, at its discretion, notwithstanding any other provision of the Agreement, to require a Flight Attendant who would have been furloughed but for the restrictions described in this Article 1(D)(3) to utilize his or her accrued unused vacation. (b) The special protections described in this Article 1(D)(3) are in addition to the Flight Attendant transfer and seniority integration rights established in Article 1(D)(2) above in connection with Substantial Asset Sales. However, the Substantial Asset Sales governed by Article 1(D)(2) above shall not be counted in determining whether the Company has reached a Triggering Event (and thereby triggered the special protections) under this Article 1(D)(3) in any twelve (12) month period. (c) In addition, the special provisions described in this Article 1(D)(3) shall not apply if the Company can demonstrate, by clear and convincing evidence, based on all the information available at the time of the Triggering Event, that the asset sales, transfers or dispositions that result in a Triggering Event will not result, directly or indirectly, in the furlough of Company Flight Attendants during the 12 month period ARTICLE 1 / Page 5 following a sale, transfer, or disposition. (4) General (a) The Company shall not conclude or enter into any agreement for any transaction or series of transactions that constitute a Substantial Asset Sale or a Merger unless the particular Purchaser or the Merger Partner, as applicable, agrees in writing to offer employment and integrate TWA Flight Attendants in accordance with the terms of this Article 1(D) or as otherwise agreed to by the IAM. The Company will not engage in a multiple party sale transaction or any other corporate transaction with the purpose or knowing effect of avoiding the applicability of this Article 1(D). (b) This Article 1(D) shall not apply to (i) any sale lease-back or any financing transaction in which the Company continues to use the financed assets in its operations or (ii) the sale of Trans World Express, Inc. ("TW Express, Inc.") or any or all of its assets. (c) The rights and protections provided the IAM and the TWA Flight Attendants under this Article 1(D) are in addition to any other rights and protections contained in any other agreement involving the IAM and the TWA Flight Attendants including other provisions of this Agreement. In the event of a conflict between Article 1 and any other provision of this Agreement, this Article 1 shall control. (5) Acquisition of Airline Assets In the event (i) the Company acquires international routes or 20 or more aircraft from another carrier (the "Seller") and (ii) the Company's acquisition of such routes or aircraft materially increases the Company's Flight Attendant staffing needs and (iii) the terms of the Company's purchase agreement with the Seller require the Company to employ certain of the Seller's Flight Attendants with lateral seniority or seniority integration rights, then a reasonable number of transferring Flight Attendants from the Seller shall be integrated into the TWA Flight Attendant System Seniority List in a fair and equitable manner pursuant to Sections 3 and 13 of the Allegheny-Mohawk Labor Protective Provisions ("LPPs"). (E) BANKRUPTCY (1) The Company and the IAM agree that the implementation of this Agreement constitute a complete restructuring of the parties' rights ARTICLE 1 / Page 6 and obligations under the IAM - TWA collective bargaining agreement and that such implementation has been negotiated in good faith as a part of an overall restructuring of the Company's rights and obligations with respect to its creditors, employees and other constituencies. In addition, the Company hereby represents and confirms that (a) The IAM has made significant and quantifiable concessions in this Agreement which have substantially benefited all other creditor groups and have allowed the Company to avoid liquidation; and (b) the Agreement has been negotiated in good faith by both parties on the basis of the Company's explicit representation that it will not seek, require or support any modification, alteration, revision or refection of any provision of this Agreement without the IAM's written consent, even if the Company is required to undergo additional reorganization or restructuring under the United States Bankruptcy Code or otherwise; and (c) any request by the Company to modify, alter, revise or reject any provisions of the Agreement without the IAM's written consent would therefore be made in bad faith. (2) As a result of the negotiations, agreements and representations described in the preceding Article 1(E)(1), in the event a petition under Chapters 7 or 11 of the Bankruptcy Code concerning the Company is filed, then: (a) Neither the Company nor any Affiliate shall file any application seeking rejection or modification of any agreement between the Company and the IAM pursuant to 11 U.S.C. Section 1113 or any other provision of the Bankruptcy Code, including a request to implement interim changes in the Agreement pursuant to 11 U.S.C. Section 1113(e). (b) The Company and its Affiliates stipulate and agree that this Agreement permits the reorganization of the Company and assures that all creditors. The debtor and all affected parties are treated fairly and equitably in any reorganization within the meaning of 11 U.S.C. Section 11 13. The Company and its Affiliates shall actively oppose a rejection or modification of the Agreement or implementation of interim changes to the Agreement if proposed or supported by any other party. ARTICLE 1 / Page 7 (3) In the event the Agreement is rejected or modified pursuant to 11 U.S.C. Section 1113 notwithstanding any provision herein, then the difference between the rates of pay, rules and working conditions established in this Agreement and the post-rejection rates of pay, rules and working conditions for the Company's Flight Attendants shall accrue and be treated as an expense of administration pursuant to 11 U.S.C. Sections 503(B)(1)(A) and 507 and shall be paid as an administrative priority pursuant to 11 U.S.C. Sections 503(b)(1)(A) and 507(a)(1). (F) REMEDIES (1) The Company agrees, and shall require the particular Purchaser (or Successor or Merger Partner if applicable) to agree, to resolve all disputes concerning the interpretation or application of this Article 1 through final and binding arbitration on an expedited basis directly before the IAM - TWA System Board of Adjustment sitting with a neutral arbitrator. The dispute shall be filed with the Company within ten (10) days of the interpretation or application of Article 1 and shall be heard no later than fifteen (15) days following the submission to the System Board and decided no later than thirty (30) days after submission (the provisions of Articles 16 and 17 herein notwithstanding), unless the parties agree otherwise in writing; but in no event shall such arbitration delay the closing of the sale of the transferred assets. The IAM shall cooperate with the Company and the Purchaser in order that any dispute which is not decided at the time of closing will be arbitrated post- closing, with any determination to be binding on the Purchaser unless the Company and the Purchaser agree, with the consent of the IAM (which consent shall not be unreasonably withheld or delayed by the IAM), that such determination shall be and remain the sole obligation of the Company; provided that the Purchaser shall have the right to become a party to and to participate in any such arbitration which could become binding upon such Purchaser. (2) The Company and the IAM agree that the rights and obligations contained in Article 1 of this Agreement are equitable in nature, that there are no adequate remedies at law for the enforcement of such rights and obligations, and that the IAM and the Company's Flight Attendants will be irreparably injured by any violation of this Article 1. The parties therefore agree that, in addition to any other rights and remedies available under law or the Agreement, this Article 1 shall be enforced by equitable remedies, including injunctions and specific performance, against the Company, its Affiliates and others in privity with the Company. (3) In addition, the parties agree that the equitable rights and obligations established in this Article 1 shall remain enforceable, through equitable relief and otherwise, until the Agreement is amended pursuant to Section 6 of the Railway Labor Act notwithstanding (a) ARTICLE 1 / Page 8 any filing concerning the Company under any chapter of the United States Bankruptcy Code, (b) any attempted alteration, modification or rejection of the Agreement pursuant to any provision of the Bankruptcy Code or otherwise, (c) any attempted sale of the property of the Company pursuant to any provision of the Bankruptcy Code or otherwise, or (d) any imposition of an automatic stay with respect to the Company's property. (G) COMMUTER CARRIERS, CODE SHARING AND BLOCK SEATING (1) The Company, its subsidiaries and its corporate affiliates may acquire an ownership interest in commuter carriers and may operate such commuter carriers under the terms of separate collective bargaining agreements with the IAM provided any such commuter carriers comply with the restrictions contained in Sections 1(G)(2) through 1(G)(5) below. (2) Except as agreed in the September 5, 1995 Letter of Agreement between TWA and ALPA pertaining to the use of ATR aircraft by Trans States, Inc., the Company, and its Affiliates will not operate, maintain any ownership interest in, or enter into any code sharing arrangement with, any United States air carrier as defined in 49 U.S.C. 40102(a)(2) that operates any aircraft under the Company's designator code, name, logo or marks with: (a) a maximum seating capacity in excess of sixty (60) seats; (b) a maximum certified gross takeoff weight in excess of 60,000 pounds; (c) a maximum certified cruising speed in excess of 400 miles per hour; or (d) any jet aircraft as defined herein. Any carrier that satisfies all of the restrictions contained in this Section 1 (G)(2) and that utilizes the Company's or an Affiliate's designator code is hereinafter referred to as a "TWA Commuter Carrier." For purposes of this subsection (G), "Jet Aircraft" is defined as any aircraft that uses a turbine-driven engine without an external propeller. (3) Notwithstanding the limitations in Section 1(G)(2) above, TWA Commuter Carriers may operate up to an aggregate of fifteen (15) Jet Aircraft with a maximum seating capacity of fifty (50) seats. (4) In addition to the fifteen (15) Jet Aircraft referred in Section 1(G)(3) above, TWA Commuter Carriers may operate: (i) one additional Jet Aircraft for each additional three aircraft operated by TWA above its current fleet size of 184 aircraft until the TWA fleet size reaches 200 aircraft; and (ii) one additional Jet Aircraft for each two aircraft operated by TWA exceeding 200 fleet aircraft. The maximum seating capacity of the Jet Aircraft operated by TWA Commuter Carriers shall be: fifty (50) seats while the Company's fleet size is less than 190; fifty-four (54) seats while the Company's fleet size is between 191 and 195; fifty-six (56) seats while the Company's fleet size is between 196 and 200; and sixty (60) seats while the Company's fleet size ARTICLE 1 / Page 9 exceeds 200. The relationship of the Company's fleet size to the number of Jet Aircraft that may be operated by TWA Commuter Carriers and the average seating capacity of the Jet Aircraft that may be operated by TWA Commuter Carriers is shown in Section 1(G)(9) below. (5) (a) In no event will TWA Commuter Carriers operate more than a maximum aggregate of thirty (30) Jet Aircraft, and in no event will the certificated seating capacity of any Jet Aircraft operated by any TWA Commuter Carrier exceed seventy (70) seats. (b) If TWA owns (or leases) and operates regional jets, TWA employees covered by IAM Agreements shall perform all covered work. If regional jets are operated by a wholly-owned subsidiary of TWA, TWA employees otherwise covered by IAM agreements shall perform all covered work, provided that the IAM and TWA enter into a new, separate agreement establishing fully competitive market rates and market working conditions for the performance of such work. All work on regional jets operated by a commuter carrier shall be performed by the employees of the commuter carrier or its service provider. (6) As a limited exception to the restrictions contained in Sections 1(G)(2), (3), (4), and (5) above, the Company may enter into or maintain code sharing agreements with (a) carriers other than United States air carriers (as defined in 49 U.S.C. 40102(a)(2)) so long as the Company can demonstrate by clear and convincing evidence, that such code sharing arrangements: (i) do not result, directly or indirectly, in the furlough of any Company flight attendant or a reduction in pay status for any Company flight attendant (ii) do not directly or indirectly result in the involuntary furlough from his/her location of any active Mechanic & Related and Passenger Service Employees employed as of the signing and as listed on the Attached Exhibit A ("Active Employees"). (b) United States air carriers (as defined in 49 U.S.C. 40102(a)(2)) other than TWA Commuter Carriers that permit such carriers to apply the Company's designator code to their operations within the United States and its territories as long as (i) the number of quarterly block hours operated by such carriers utilizing the Company's designator code does not exceed four percent (4%) of the total number of block hours operated by the Company for the same quarter ARTICLE 1 / Page 10 within the United States and its territories and (ii) the Company can demonstrate, by clear and convincing evidence, that such code sharing arrangements do not result, directly or indirectly, in the involuntary furlough of any IAM-represented employee or a reduction in pay status for any IAM-represented employee; provided, however, the IAM may, in its sole discretion, increase the total number of block hours available for such operations to up to ten (10%) percent of the total number of block hours operated by the Company for the same quarter within the United States; and (c) The number of quarterly block hours specified in Section 1(G)(6)(b)(i) above, may be increased as follows: If the Company's fleet size increases to 193 aircraft, then the number shall be four and one-half (4.5%) percent; if the Company's fleet is at least 199 aircraft, then the number shall be five (5.0%) percent. The relationship between the Company's fleet size and the number of quarterly block hours that may be operated by such United States air carriers is shown in Section 1(G)(9) below. (7) The Company and its Affiliate may only enter into block seating arrangement (i.e., the advance purchase of reservation of blocks of seats on other carriers for resale by the Company) aboard any aircraft operated by any person or entity other than the Company if and to the extent that the Company can demonstrate, by clear and convincing evidence, that such block seating arrangements do not result, in the involuntary furlough of any IAM-represented employee or a reduction in pay status for any IAM- represented employee. (8) Mechanic & Related and Passenger Service Employees Listed on the Attached Exhibit "A" ("Active Employees") at a TWA location as of the date of signing shall not be involuntarily furloughed from that location as a direct result of a commuter carrier operating Regional Jets. The Company will not furlough any Flight Attendant on the TWA Flight Attendant System Seniority List as a result of the acquisition, expansion over TWA's domestic route system or operation of regional jets by any TWA Commuter Carrier. ARTICLE 1 / Page 11 (9) Summary Chart - Sections 1(G)(4), (5), and (6) Company Quarterly Code No. of Jet Max. Avg. Aircraft Share Domestic Aircraft Seating Block Hours That That May Be Capacity of May be Operated Operated by Jet Aircraft by US Air Carriers TWA Commuter Operated by Other than TWA TWA Commuter Carriers Carriers 187-189 4.0% 16 50 190-192 4.0% 17 54 193-195 4.5% 18 54 196-198 4.5% 19 56 199-200 5.0% 20 56 201+ 5.0% 21 + 1 for 2 60 thereafter up to 30 maximum
(10) In addition to and apart from the Jet Aircraft carrying only that TWA Commuter Carrier's and TWA's or Affiliate's designator code that TWA Commuter Carriers are otherwise authorized to operate by this Section 1(G), TWA Commuter Carriers may additionally operate a maximum of three (3) Jet Aircraft with a capacity of no more than seventy (70) seats for which that TWA Commuter Carrier has a code-sharing agreement involving both (a) TWA or an Affiliate and (b) a third-party code-sharing carrier ("Shared Code-Sharing Jet Aircraft"). These 3 Shared Code-Sharing Jet Aircraft are not subject to and will not count towards the maximum average seating limitations of Section 1(G)(4) and the 30 aircraft aggregate limitation of Section 1(G)(5). All other restrictions and limitations imposed by this Section 1(G) remain in effect for these Shared Code-Sharing Jet Aircraft. (11) Regional Jet Bids. TWA will make its best efforts to submit competitive bids for all work performed on regional jets operated by Commuter Carriers ("Regional Jet Bids"). The Company shall schedule 2 meetings each year with the IAM to discuss the results of the Regional Jet Bids it has submitted and review those situations where it chose not to submit such bids. (H) DEFINITIONS The following definitions shall apply to the capitalized terms in the Article 1 of the Agreement: (1) Agreement. The term "Agreement" means and includes this --------- collective bargaining agreement between IAM and the Company and any and all other agreements between IAM and the Company. ARTICLE 1 / Page 12 (2) Control. Person or entity A shall be deemed to "Control" ------- person or entity B if person or entity A, whether directly or indirectly, (a) owns securities that constitute, are exercisable for or are exchangeable into twenty (20%) percent or more of (I) entity B's outstanding common stock or (ii) securities entitled to vote on the election of directors of entity B, or otherwise owns twenty (20%) percent or more of entity B, or (b) maintains the power, right, or authority by contract or otherwise - to direct, manage or direct the management of a substantial portion of entity B's operations, or provides a substantial portion of the controlling management personnel of entity B; or (c) maintains the power, right or authority to appoint or prevent the appointment of a majority of entity B's Board of Directors or similar governing body; or (d) maintains the power, right or authority to appoint a minority of entity B's Board of Directors or similar governing body, if such minority maintains the power, right or authority to appoint or remove any of entity B's executive officers or any committee of entity B's Board of Directors or similar governing body, to approve a material part of entity B's business or operating plans, or debt or equity offerings. (3) Parent. As used in the Agreement, the term "Parent" refers ------ to any entity that Controls the Company, whether directly or indirectly through the Control of other Entities that Control the Company. (4) Affiliate. As used in the Agreement, the term "Affiliate" --------- refers to (i) any person or entity that Controls the Company whether directly or indirectly through the Control of other entities, or (ii) any person or entity that the Company Controls, whether directly or indirectly through the Control of other entities, or (iii) any other corporate subsidiary, parent or division of the Company, or any other Affiliate. ARTICLE 1 / Page 13 ARTICLE 2 DEFINITIONS As used in this Agreement, the term (A) "Cabin Attendant" means an employee whose work shall include performing and assisting in the performance of all enroute cabin services, assisting ground personnel in the boarding process of each flight departure, including but not limited to the lifting of flight coupons in the gate area, and ground service to delayed or canceled passengers in a resourceful and gracious manner, and the responsibility to apply these services for the welfare, comfort, enjoyment and safety of passengers. A Cabin Attendant may be required to attend operational meetings, refresher training course, equipment checkouts, ditching drills, and similar procedures related to flight duties. A Cabin Attendant may, from time to time, be requested to participate in publicity and promotional assignments. (B) "Service Manager" means an employee who exercises jurisdiction and direct control over all cabin attendants in matters concerning all phases of their duties and responsibilities as set forth by Company procedures. Vacancies in the Service Manager classification shall be opened for bid on a systemwide basis to Flight Attendants who have two (2) years or more line seniority and a minimum one (1) year pay seniority. The work of a Service Manager shall include, but not be limited to the assignment, direction and reassignment where necessary of the work of the cabin crew complement. During the pre-flight briefing, standard positions, assignments and recognition of work positions by seniority bid preference will prevail. However, when a passenger imbalance exists among the cabins or service requirements justify, the Service Manager shall request volunteers from the cabin where least needed. If no Flight Attendant(s) volunteer, the Service Manager has the authority to reassign the most junior Flight Attendant(s) to the cabin where needed. When two (2) or more Cabin Attendants are assigned to a wide-bodied aircraft, or to any other aircraft requiring a Flight Service Manager, at least one (1) of them shall be a Service Manager. The Company shall assign a Flight Service Manager on all narrow-body aircraft which operate on flights outside the contiguous 48 United States, Alaska and Puerto Rico. A Service Manager will be familiar with all cabin duties, be capable or performing all such duties at the direction of the Company or whenever the requirements of the service justify. A Service Manager is responsible for developing, maintaining and furthering a harmonious team spirit among the cabin attendants. A Service Manager may be designated to perform necessary duties in connection with a flight cargo operation and may be required to attend operational meetings, refresher training courses, equipment checkouts, ditching drill, and similar procedures related to flight duties. A Service Manager may, from time to time, be requested to participate in publicity and promotional assignments. ARTICLE 2 / Page 1 (C) "Employee" as used herein, means Cabin Attendant or Service Manager. Flight Attendant as used herein shall be synonymous with Employee. (D) "Block-to-block" time shall mean that period of time beginning when an aircraft first moves from the ramp blocks, for the purpose of flight, and ending when the aircraft comes to a stop at the ramp blocks at the next point of landing. (E) "Domicile" means a location where Flight Attendants are permanently based. (F) "Satellite" means a location attached to a domicile and from which a Flight Attendant may bid to fly. (G) "Deadhead" means, pursuant to Article 6(L) of this Agreement, the air travel on flight segment(s) on which a Flight Attendant is not scheduled to actively engage in Flight Attendant duties as a member of the working crew; or, surface travel time via ground transportation airport to airport while on Company duty other than travel between co-terminals. (H) "Month" or "calendar month" as used in this Agreement shall mean the following inclusive periods: January 30 days 1-30 January February 30 days January 31-March 1 (leap year 31 days) March 30 days 2-31 March April 30 days 1-30 April May 31 days 1-31 May June 30 days 1-30 June July 31 days 1-31 July August 31 days 1-31 August September 30 days 1-30 September October 30 days 1-30 October November 31 days October 31-November 30 December 31 days 1-31 December (I) (1) A "DOMESTIC FLIGHT" is any flight which operates within the North American continent and the Caribbean. For pay purposes only (including expenses), flights to and from Mexico and the Caribbean will be compensated at international rates of pay. (2) An "INTERNATIONAL FLIGHT" is any flight which either departs or arrives at a station outside the North American continent or the Caribbean. ARTICLE 2 / Page 2 (3) International crews may be assigned to fly Domestic segments of International flights provided that a) the Domestic portion is a "tag end" to the origination or completion of the paired International flight; b) the Domestic and International flight segments are flown within a single on- duty period; c) both the Domestic and International segments have identical flight numbers. (J) "Operational Duty Hours" start with the time an employee is required to report for active flight duty, or does report for such duty, whichever is later, and end one-quarter hour for Domestic and one-half hour for International after the conclusion of block time at a station where a cabin attendant is released, or if the flight does not depart, operational duty hours end when the employee is released from such flight. Block-to-block and deadhead time are not included in operational duty hours. If an employee is released from duty at an intermediate station, operational duty hours shall end at time of release and shall recommence when the employee reports, or is required to report, whichever is later, for continuation of flight duty. The Company may waive a Flight Attendant's report time at a layover station in a non-routine situation, to no less than fifteen (:15) minutes, in which case, operational duty hours shall not be less than the originally scheduled operational duty hours, it being understood that such payment will not affect a commencement of an on-duty period or trip hours as defined in 6(E)(1). (K) "Reserve" means an employee who does not hold a monthly sequenced line of time. (L) Standby Duty (1) A reserve Flight Attendant shall be considered to be on "residence standby" if she/he is informed that she/he must stand by the telephone in order to be available for immediate flight duty on other than her/his assigned flight. Those reserve Flight Attendants assigned to residence standby must be available to report for flight duty within two (2) hours via surface transportation of being assigned to a flight. (2) A reserve Flight Attendant shall be considered to be on "airport standby" if she/he is informed that she/he must stand by, in uniform, at the airport in order to be available for immediate flight duty on other than her/his assigned flight. (M) A "wide-bodied aircraft" is defined as an aircraft configuration with two or more aisles. (N) An employee who is assigned to a "ferry flight" shall be considered as deadheading. (O) "Average Line Value" (ALV) means the weighted average credit value of the bid lines as published in the bid packages. ARTICLE 2 / Page 3 (P) "Fixed Daily Credit" is the number of hours of pay and credit fixed at a value of two hours thirty (2:30) minutes. (Q) "Alternate Line" is defined as a bid line which contains all flying within the first fifteen (15) days or the last fifteen (15) days of the bid month. Alternate Lines shall be constructed between 32:30 and 45:00 credit hours. ARTICLE 2 / Page 4 ARTICLE 3 PAY (A) Except as otherwise provided herein, hourly rates of pay under the TWA-IAM Agreement shall remain, for the entire term of this Agreement as shown in Schedule "A" attached hereto. (B) Operational Duty Pay Each Flight Attendant shall be paid operational duty pay at the scheduled rate of $.48 per hour for each operational duty hour as defined in Article 2(J). (C) Service Manager Override Each Service Manager on wide-bodied aircraft shall receive the scheduled rate of $1.27 per hour for each hour of flight time, actual or scheduled, block-to-block time, whichever is greater, calculated on a leg-by-leg basis, in addition to any other compensation to which she/he is entitled pursuant to this Article. (D) Reserves (1) All Flight Attendants who are on reserve during any part of a month shall receive not less than seventy-five (75) pay hours, provided, however, that the minimum 75-hour guarantee shall not apply to Flight Attendants whose monthly guarantees have been reduced pursuant to the provisions of Article 6(X) [Enhanced Trip Option] and/or Article 18(D)(7)(f)(2)(c) [Balance Avoidance]. (2) Reserve Flight Attendants at domiciles which protect both International and Domestic flights shall be compensated at international rates of pay. (E) Night Pay A Flight Attendant shall receive the scheduled rate of $0.19 for each hour prorated to the nearest minute actually flown between the hours of 1800 and 0600 local time. The time of departure shall be the actual block out time of the flight. When changes in time zone occur in flight, the time zone at the station of last departure shall be used in computing the day and night flying for that leg of the flight. (F) Language of Destination A Flight Attendant who is eligible to receive pay pursuant to the Letters of Agreement No.s VII and VIII for Language of Destination shall receive the scheduled rate of $1.00 for each block hour flown during the month. A Flight Attendant who is eligible to receive pay pursuant to the Letter of Agreement ARTICLE 3 / Page 1 dated June 25, 1997 shall receive the scheduled rate of $2.50 for each block hour flown for any applicable segment. (G) 24 in 7 A Flight Attendant who is not granted 24 hours relief during the seven (7) calendar days as specified in Article 6(S) shall be compensated at two hours thirty minutes (2:30) at her/his hourly rate. (H) Service Manager Emergency Downgrade In an emergency when it is necessary to assign a Service Manager to a lower classification, she/he shall receive no less than his current rate of pay. In such situations, the bid Service Manager shall be in charge. (I) Random Drug/Alcohol Testing A Flight Attendant will be paid one hour (no credit) at her/his hourly rate for each occasion she/he is subject to Random Drug and/or Alcohol Testing. The provisions of this section are not applicable to events of "follow-up testing" as defined in Letter XXV, the Random Substance Testing Letter of Agreement, or drug/alcohol testing for cause. (J) Standby Penalties (1) Should a reserve Flight Attendant serve more than four (4) airport standby assignments, during any one bid month, she/he shall receive the scheduled rate of $19.73 for each additional airport standby assignment and such amount shall not be offset against base pay. (2) Should a reserve Flight Attendant serve more than a total of five (5) airport standby assignments and/or residence standby assignments during any one bid period, she/he shall receive the scheduled rate of $19.73 for each additional airport standby assignment or residence standby assignment and such amount shall not be offset against base pay. (3) For purposes of the two paragraphs immediately preceding, a single assignment of airport standby shall consist of any amount of time between one minute and eight (8) hours, not to exceed eight (8) consecutive hours. A single assignment of residence standby shall consist of any amount of time between one minute and 24 consecutive hours, not to exceed twenty-four (24) consecutive hours. For the purpose of Paragraphs 1) ARTICLE 3 / Page 2 and 2) above, a Flight Attendant shall not receive more than one (1) payment as scheduled above for each additional assignment so mentioned. (K) Vacation Increment Pay In addition to vacation pay and credit provided under Article 6(F), an employee shall receive increment pay based upon the number of credited vacation pay hours times the following applicable rate: Domestic Service Managers and Cabin Attendants: $.24 International Cabin Attendants: $.17 International Service Managers: $.77 (L) Service Manager Temporary Upgrade The Company will pay a Flight Attendant the applicable Flight Service Manager rate of pay commensurate with her/his seniority for each flight assignment in which she/he is upgraded to the Flight Service Manager classification. (M) Special Assignment Flight Attendants on Special Assignment (SPA) shall be credited with two hours and fifty (2:50) minutes for each day of the special assignment or trips missed credit, whichever is greater, to a maximum of eighty-five (85:00) hours per month for their respective classifications. (N) Deadhead If an employee deadheads under Company orders on any and all flights to or from protecting a flight he/she shall receive one hundred percent (100%) pay/credit of such deadhead flight time for each hour or fraction thereof prorated at the applicable hourly rate. (O) Domestic Excess On-Duty A Domestic Flight Attendant exceeding fifteen (15) consecutive hours on duty shall be compensated at his/her hourly rate for all such hours in excess of fourteen (14) hours. Such compensation shall not be offset against base pay and shall be in addition to that computed under Article 6(D). ARTICLE 3 / Page 3 (SCHEDULE "A") -------------- DOMESTIC CABIN ATTENDANT ------------------------ HOURLY RATES ------------ Year 8/1/99 8/1/00 1 17.54 17.72 2 19.09 19.28 3 20.62 20.82 4 22.17 22.39 5 23.60 23.83 6 25.04 25.29 7 26.48 26.75 8 28.74 29.03 9 29.43 29.72 10 30.00 30.30 11 30.56 30.87 12 32.22 33.35 13 33.66 34.84 INTERNATIONAL CABIN ATTENDANT ----------------------------- HOURLY RATES ------------ Year 8/1/99 8/1/2000 1 17.54 17.72 2 19.09 19.28 3 20.62 20.82 4 22.17 22.39 5 23.60 23.83 6 25.04 25.29 7 26.48 26.75 8 30.86 31.17 9 31.63 31.94 10 32.24 32.56 11 32.85 33.18 12 34.70 35.91 13 36.25 37.52 ARTICLE 3 / Page 4 DOMESTIC FLIGHT SERVICE MANAGER ------------------------------- HOURLY RATES ------------ Year 8/1/99 8/1/2000 3 22.04 22.26 4 23.48 23.71 5 24.91 25.16 6 26.37 26.63 7 27.80 28.08 8 32.47 32.80 9 33.17 33.50 10 33.92 34.26 11 34.62 34.97 12 36.51 37.79 13 38.14 39.48 INTERNATIONAL FLIGHT SERVICE MANAGER ------------------------------------ HOURLY RATES ------------ Years 8/1/99 8/1/2000 3 22.04 22.26 4 23.48 23.71 5 24.92 25.17 6 26.37 26.63 7 27.80 28.08 8 36.54 36.91 9 36.75 37.12 10 37.90 38.28 11 38.59 38.98 12 40.64 42.07 13 42.46 43.95 ARTICLE 3 / Page 5 ARTICLE 4 EXPENSES (A) DOMESTIC OPERATIONS When a Flight Attendant in Domestic Operations is on a trip away from his or her domicile or satellite on Company business, the following shall apply: (1) Expense Allowance. A Flight Attendant's expense allowance ----------------- while engaged in operations away from his/her domicile and/or satellite shall be one dollar and eighty cents ($1.80) per hour for each hour or fraction thereof while away from domicile and/or satellite. Expenses shall be paid commencing at report and ending at release. (2) Other Expenses. When Flight Attendants are on duty at -------------- locations other than their regular domiciles, regular satellites or regular layover stations, or on special assignment for the Company, and transportation, laundry, cleaning, meals, lodging and tips are not provided by the Company, actual reasonable expenses will be allowed. (3) Hotels ------ (a) Room Assignments. In addition to the allowance ---------------- provided in Paragraph (A)(1) of this Article, and except as provided in Letter XXXIV (Voluntary Release of Layover Hotel Rooms), the Company shall provide at regular layover stations, comfortable and adequate lodging so that each Flight Attendant will be assigned to a single room. Recommendations of the Union, as furnished by the President, District Lodge 142 or his designee, after he or she has had opportunity to consult with the Council involved, shall be considered before making any change in lodgings. The quality of hotel rooms will not diminish when single rooms become effective for domestic Flight Attendants. (b) In the event that regularly assigned lodging at layover stations is in use, the Company will provide other suitable lodging or the Flight Attendant will be allowed the reasonable actual expenses for other necessary lodging. (c) Flight Attendants will check in and out of hotels in the normal manner and will pay any incidental expenses incurred by them such as telephone calls, room service, etc. (4) Taxi Expense. A Flight Attendant who does not receive two ------------ (2) hours notice of flight departure when on reserve or on non-routine flights, will be allowed actual reasonable taxi expenses. Failure to give the ARTICLE 4 / Page 1 notice provided above must be verified by the Company representative notifying the Flight Attendant to report for flight duty. Such payment will be based on the actual charges with the establishment of no maximum, except as limited by the reasonableness of the expenditure. (5) Domestic Ground Transportation (a) At other than his/her domicile or satellite, when courtesy car service is not provided by the layover hotel, Flight Attendants will be provided with ground transportation. The Company will arrange and pay for such transportation between the airport and the layover hotel and return, between airport and airport when on layover, or transiting and not on layover. (b) If ground transportation as outlined in (a) above is not provided by the Company within forty-five (45) minutes after block-in or scheduled block-in (whichever is later) at the airport of arrival, Flight Attendants will be issued a taxi voucher for transportation to the layover hotel. When more than one Flight Attendant is so affected, Flight Attendants shall be required to share taxis up to the maximum allowable passenger capacity of the taxis. (c) If ground transportation as outlined in (a) above is not provided by the Company within fifteen (15) minutes of scheduled pick-up time at the hotel, Flight Attendants may take a taxi to the airport and will be reimbursed for the actual/reasonable cost of such taxi within three (3) working days after submission of a proper receipt and Company expense report. When more than one Flight Attendant is so affected, Flight Attendants shall be required to share taxis up to the maximum allowable passenger capacity of the taxis. (d) Layovers of twenty (20) hours or more will continue to be scheduled at downtown hotels in those cities where downtown layovers are currently utilized, unless the Company and the Union mutually agree otherwise. Notwithstanding the above, Satellite pairings originating from Los Angeles, San Francisco, and San Diego shall not require a downtown hotel for layovers in excess of twenty (20) hours. (B) INTERNATIONAL OPERATIONS When a Flight Attendant in International Operations is on a trip away from his or her domicile or satellite on Company business, the following shall apply: ARTICLE 4 / Page 2 (1) The Company will provide adequate rest facilities for employees and will provide facilities comparable to those used by other crew members. (2) In selecting rooms at specific overseas hotels the following shall apply: On all aircraft involving Service Managers and Cabin Attendants, the Service Manager shall sign the hotel sheet first and then all other Cabin Attendants in order of their relative seniority. (3) The Company will furnish suitable and adequate lodging and transportation at all stations where International crews lay over. Flight Attendants will be paid at the rate of Two Dollars ($2.00) per hour for each hour or fraction thereof while away from domicile or satellite. Expenses shall be paid commencing at report and ending at release at domicile or satellite. At any station where International crews are laying over and the employee is required to remain at the airport for four (4) hours or more, the Company will provide suitable meals. Where the employee is released from duty so that he or she may leave the airport, a minimum of six (6) hours at the applicable hourly rate shall be paid. (4) When the Company does not provide such facilities as outlined above, reasonable actual expenses will be allowed therefor. (C) GENERAL (1) In addition to the expenses allowed under paragraphs (A) and (B) above, the Company will allow additional expenses covering extraordinary conditions, including, but not limited to, transportation for attendance at meetings during nighttime hours. Such payment will be based on the actual charges with the establishment of no maximum, except as limited by the reasonableness of the expenditure. (2) The Company will furnish suitable lounges with reclining chairs and/or liedown facilities to be used exclusively by Flight Attendants at layover stations, and at all locations where Flight Attendants are based, unless conditions at a particular layover or domicile prevent it. When lounges are not provided as outlined above and the turn time is scheduled for four (4) hours or more (block-to-block), upon request a day room will be provided at a ratio of one (1) room for every three (3) Flight Attendants. (3) (a) A Flight Attendant required to attend operational meetings, training or refresher courses, for which credit is given under ARTICLE 4 / Page 3 Article 6(A), including probationary meetings, at his/her domicile or satellite, shall receive hourly expenses as provided in Article 4(A)(1) and Article 4(B)(3) for each hour or fraction thereof, report to release. At meetings where a suitable meal is provided by a Corporate Officer who is conducting the meeting, the expense allowance provided for herein shall not be applicable. (b) When a Flight Attendant is required to attend operational meetings, training or refresher courses, for which credit is given under Article 6, including the probationary meetings, away from domicile, he/she shall receive expenses as provided in Article 4(A)(1) and Article 4(B)(3) for each hour or fraction thereof block out to block in at his/her domicile or satellite. At meetings where a suitable meal is provided by a Corporate Officer who is conducting the meeting or training where room and board is provided, the expense allowance provided for herein shall not be applicable. (c) Flight Attendants shall receive 2:30 pay and credit and expenses in accordance with Article 4(A)(1) for the one-day Annual Emergency Review (AER) and all other training. In the event a Flight Attendant fails the one-day AER training, he/she will not be paid for the first retest following the first failure. A Flight Attendant shall receive 2:30 pay and credit and expenses for each day he/she is assigned to retraining subsequent to the second AER failure. (d) In addition, when a Flight Attendant is required to take a physical in accordance with Article 23 at a location other than where his/her domicile or satellite is located, he/she will be entitled to receive the expense allowance set forth in paragraph 4(A)(1) or 4(B)(3), as appropriate. Expenses in cases where the services of a Neutral Medical Examiner (N.M.E.) are required shall be handled in accordance with the provisions of Article 23. (e) Flight Attendants will be provided single rooms during training away from domicile, except as provided in Letter XXXIV (Voluntary Release of Layover Hotel Rooms), and except where training is held at a "Breech type" facility. (4) Crew Meals ---------- The Company will insure that crew meals are available for Flight Attendants on those flight segments over four (4) hours where crew meals are provided for other crew members. Such crew meals shall be consumed only after the normal order of service has been complete ARTICLE 4 / Page 4 and only in those areas outlined in the Company's Flight Service Manual. Crew meals will not be provided for flight segments scheduled for four (4) hours or less block-to-block except that the Company may, at its sole discretion, provide meals on an exception basis on such flights. (5) Drug/Alcohol Testing -------------------- The Company will reimburse the reasonable, actual transportation costs to and from the drug/alcohol testing facility, provided proper receipts and Company expense report are promptly submitted. The provisions of this section are not applicable to events of "follow-up testing" as defined in Letter of Agreement XXV, the Random Substance Testing Letter of Agreement, or drug/alcohol testing for cause. (6) Payment by Employee for Training -------------------------------- No Flight Attendant in the regular scheduled service of the Company shall, after employment, be required to pay for any training required or conducted by the Company. During other than assigned training periods, the Company may make reference materials available to Flight Attendants, but such Flight Attendants will not be required to complete such materials or to take a test during their own time. In order to assist Flight Attendants in learning a foreign language, the Company will provide training facilities which will include record/tapes, equipment for sound reproduction, texts, and instructors for reasonable consultation and instruction during the learning process, which shall take place on the Flight Attendant's own time. Seniority and a demonstration of interest shall be considered in scheduling students for the program. (7) Parking ------- At the request of the Union, the Company will confer with and consider the recommendations of authorized Union representatives as to the adequacy of the parking areas and the quality of security measures at Company lots in which employees park their automobiles at domiciles. The Company shall furnish, at no cost to the Flight Attendant, sufficient parking spaces to accommodate all Flight Attendants assigned to a domicile or satellite. The Company shall provide active Flight Attendants monthly parking for one vehicle at a TWA domicile or reimburse the Flight Attendant for parking of one (1) vehicle at any station (receipts required), not to exceed the amount paid for one (1) vehicle at the STL domicile. ARTICLE 4 / Page 5 ARTICLE 5 UNIFORMS (A) Standard Uniforms. Standard uniforms as prescribed in Company ----------------- regulations shall be worn by employees at all times while on duty and at such other times as may be prescribed. (B) Purchase by Newhire Flight Attendants. Employees, with less than ------------------------------------- one (1) full year of service as a flight attendant, shall be required to purchase two (2) uniforms comprised of the basic items as described in Paragraph (C) below. The employee shall pay the actual cost of the basic uniform items as provided by the Vendor. (C) Basic Uniform. The uniforms referred to in Paragraph (B) above ------------- will consist of the following items: CABIN ATTENDANTS/ SERVICE MANAGERS BASIC UNIFORM FEMALE: ------ Dress or Blazer (2) Skirt or Pants (2) All-Weather Coat 4 Uniform Shirts MALE: ---- Blazer (2) Pants (2) All-Weather Coat 4 Uniform Shirts UNISEX: ------ Scarf/Tie Tie Bar Pocket Square Belt Wings Serving Garment (Vest/Smock) Sweater or Sweater Vest Epaulettes (D) Point Allowance System ---------------------- Flight Attendants will be provided a monthly allowance based on active service, for the replacement of uniform items due to normal wear and for the acquisition of uniform pieces and accessory items. A maximum of fifty (50%) percent of a ARTICLE 5 / Page 1 Flight Attendant's annual allowance granted in an odd year may be carried over for use in the following year. All points shall be determined on a calendar year basis, to be determined January 1 of each year and awarded no later than February 1 of each year. The points shall be awarded on a look-back basis. For new employees with less than one (1) full year of service, as Flight Attendant, points shall be pro-rated. All points must be used at the end of each even-numbered year, as points will not be carried forward into any odd year. In addition, Flight Attendants shall receive 8.5 points per month for each month of active service for a Uniform Allowance Program. For purposes of this paragraph, active service is defined as any month in which a F/A completes the month with no less than 32:30. Upon ratification of this agreement, all F/As with greater than one year on-line seniority, will receive a full year's complement of 102 points, pro-rated from the month of ratification of the agreement. The points awarded will be on an individual look-back basis in accordance with monthly active service for the previous calendar year. Upon verification, uniform items that are torn or ripped during normal wear shall be replaced at no cost to the Flight Attendant. Cabin attendants initially transferring to the FSM category shall receive required FSM accessories at no cost to the employee. Female Items Male Items ------------ ---------- Description Points Description Points ----------- ------ ----------- ------ All-Weather-Coat 45 All-Weather-Coat 45 Single-Breasted Jacket 39 Single-Breasted Jacket 50 Double-Breasted Jacket 41 Double-Breasted Jacket 51 Blouse (SS) 7 Shirt (SS) 7 Blouse (LS) 8 Shirt (LS) 8 Tie 3 Tie 5 Pants 21 Pants 21 Skirt 19 Scarf 6 Maternity Jumper/Blazer 29 Handbag 12 Sweater 8 Sweater 8 Sweater Vest 6 Sweater Vest 6 Belt 3 Belt 3 Serving Garment 5 Serving Garment 5 Pocket Square (Unisex) 1 Epaulettes (Unisex) 1 Tiebar (Unisex) 1 FSM Tie 3 FSM Tie 3 Rollerboard (Unisex) 34 Dress 38 Flight Attendants will not be required to pay any shipping costs incurred for the shipping of uniform items. ARTICLE 5 / Page 2 (E) Payroll Deduction of Uniform Items. In addition to the point ---------------------------------- system, purchases of uniform items may also be made by payroll deduction with a maximum biweekly deduction of no more than $25. (F) Company Insignia and Uniform items Provided by the Company. All ---------------------------------------------------------- Company insignia and uniform items which are provided by the Company at its expense shall be issued on a loan basis, and upon termination for any reason, the employee may be required to return such uniform items and insignia to the Company. The Company retains the right to collect any and all uniform items and accessories in the possession of a Flight Attendant. In such case the Flight Attendant will receive full reimbursement for any items collected which the Flight Attendant has purchased. (G) Change in Uniforms. When the Company contemplates making changes ------------------ in style, color or material of the uniform, it will first consult with the IAM District Lodge 142 to solicit the Union's recommendations. Prior to selection of the uniform the District Lodge representatives will be given an opportunity to submit their recommendations which will be considered provided such recommendations are made within thirty (30) days after being solicited by the Company. (H) Expense Cost in Change in Uniforms. During the term of this ---------------------------------- Agreement, the Company may elect to change the basic uniform items as described in Paragraph (C) above. In the event of a changeover which includes a new item and excludes the wearing of a present uniform item, such new item shall be initially issued at the Company's expense to all Flight Attendants who are on the line on the effective date of such uniform change. The Company may also elect to change a basic uniform item which does not exclude the wearing of the present uniform item. In that event, the employee may elect to acquire the new uniform either through the point system or by purchase. The Company may also elect to provide this additional item to the employees at the Company's expense. The Company and the Union shall meet to agree upon the point(s) allotted to any new uniform item. (I) New Accessory Items. During the term of this Agreement, the ------------------- Company may elect to offer new accessory items, including choices to basic items. In that event, the Company and the Union shall meet to agree upon the point(s) allotted to these items. (J) Review of Uniform Attire by Company and Union. The Union --------------------------------------------- Professional Standards Committee and the Union Safety Committee, together with representatives designated by the Company, shall review all items of uniform attire, including shoes, and shall develop standards and guidelines for such attire ARTICLE 5 / Page 3 so as to assure maximum employee safety and professional appearance. Female Flight Attendants may, but are not required to, wear high-heeled shoes. (K) Terminated and Voluntarily Resigned Flight Attendants. Flight ----------------------------------------------------- Attendants who are terminated by the Company shall be required to return all uniform items to the Company and shall not be required to pay any outstanding balances due in connection with the purchase of the uniform item(s). Flight Attendants who voluntarily leave the employment of the Company shall continue to be responsible for any outstanding balances due in connection with purchase of any uniform item(s). ARTICLE 5 / Page 4 ARTICLE 6 HOURS OF SERVICE (A)(1) Full Line Flying - Scheduling of Maximum Flight Credit. Flight ---------------- Attendants shall be scheduled for flight duty so as not to exceed the monthly maximum flight credit. Sixty-five (65) flight pay hours shall constitute the minimum pay guarantee and Eighty-five (85) flight credit hours shall constitute the maximum calendar monthly flight time except as otherwise provided in Articles 6(Y), 6(Z), 8(F) and 18(D)(7). (A)(2) Alternate Line Flying - Scheduling of Maximum Flight Credit. ----------------------------------------------------------- Flight Attendants shall be scheduled for flight duty so as not to exceed the fifteen (15) day maximum flight credit. Thirty- two hours thirty minutes (32:30) flight pay hours shall constitute the minimum pay guarantee and Forty-five (45) flight pay hours shall constitute the maximum calendar half-monthly flight time except as otherwise provided in Articles 6(Y), 6(Z), 8(F), and 18(D)(7). (B) Flight Credit Hours. For the purpose of (A) above, flight ------------------- credit hours shall include the following: (1) Actual or Scheduled block-to-block time, whichever is greater, calculated on a stop-by-stop basis. (2) Trip hours as specified in (E)(2) below but as further qualified in (D) below. (3) Duty hours as specified in (E)(3) and (E)(4) below but as further qualified in (D) below. (4) Flight credit hours accrued under paragraph (E)(5)(b) below. (5) Vacation time as specified in (F) below. (6) Training time as specified in (G) below (7) Special assignment as specified in (G) below. (8) Operational meetings as specified in (H) below. (9) Standby as specified in (I) below. (10) Call-out time as specified in (J) below. (11) Holding time as specified in (K) below. (12) Pay assignment as specified in (M) below. (13) Jury duty as specified in (Q) below. (14) Sick Leave time as specified in Article 8. (15) Personal Business day(s) as specified in (F) below. (16) Deadhead Time. (17) Guaranteed Trip Protection. (C) Flight Pay Hours. For the purpose of (A) above, flight pay ---------------- hours shall include the following only: (1) Flight pay hours as computed in accordance with (D) below. (2) Trip hours as specified in (E)(2) below but as further qualified in (D) below. (3) Duty hours as specified in (E)(3) and (E)(4) below but as further qualified in (D) below. (4) Flight pay hours accrued under paragraph (E)(5)(b) below. ARTICLE 6 / Page 1 (5) Vacation time as specified in (F) below. (6) Training time as specified in (G) below. (7) Special assignment as specified in (G) blow. (8) Operational meetings as specified in (H) above. (9) Standby time as specified in (I) below. (10) Call-out time as specified in (J) below. (11) Holding time as specified in (K) below. (12) Pay assignment as specified in (M) below. (13) Jury duty as specified in (Q) below. (14) Sick leave as specified under Article 8. (15) Deadhead time as specified in (L) below; ferry as specified in (L) below. (16) Surface transportation as specified in (L) below [excluding co-terminals in 6(E)(7)]. (17) Excess compensation accrued under paragraphs (R) and (D)(4) below. (18) Personal Business day(s) as specified in (F) below. (19) Guaranteed Trip Protection. (D) Determination of Flight Credit and Pay Hours. When an employee -------------------------------------------- returns to his or her domicile from a trip, he or she will be credited with flight credit and pay hours as determined in the following manner: (1) His or her credit and pay for each leg of his or her trip will be the greater of actual block-to-block or scheduled block-to-block time on each leg. (2) Additional credit and pay resulting from the application of paragraph (E)(3) and (4) below will be added to the greater of actual block-to block or scheduled block-to-block time on each leg. (3) Deadhead time as set forth in (L) below, excess on-duty time as specified in (R) and (D)(4) below and any other flight pay hours accrued under this Article shall be added to the pay hours under (1) above. (4) The flight credit and pay hours computed in (D)(1), (2), and (3) above for each trip shall be totaled and the result compared with the credit and pay earned under (E)(2) below, when applicable, and the employee shall be credited with the greater. (E) Trip Hours. ---------- (1) "Trip Hours" means all the time which passes from the time a Flight Attendant is required to report, or actually reports, whichever is later, at the airport of his or her domicile prior to proposed flight departure, until fifteen (:15) minutes after block-in time on the Domestic operation and until thirty (:30) minutes after block-in time on the International operation after arrival at his or her domicile for a legal rest, free from all duty with the Company. For purposes of this ARTICLE 6 / Page 2 paragraph and for purposes of Article 2(J), report times at domiciles for active Flight Attendants shall not be less than one (1) hour. In the case of reserves called out on an immediate basis, the time of actual report shall commence the trip hours and operational duty pay. If a Flight Attendant departs his or her domicile as a deadheading crew member for the purpose of protecting a flight, his or her Trip Hours shall commence at the block-out time of the flight except that where surface transportation is used for travel from the domicile for the purposes of working a trip, Trip Hours shall commence at the departure time of the surface transportation; if a Flight Attendant arrives at his or her domicile as a deadheading crew member, his or her Trip Hours shall be considered to end at the block-in time of the flight, except that where surface transportation is used for travel to the domicile from protecting a flight, Trip Hours shall be considered to end at the arrival time of the surface transportation. When a Flight Attendant is requested to deadhead at Company request, the Flight Attendant shall not be required to report for such deadhead flight earlier than thirty (:30) minutes on the Domestic operation and one (1) hour on the International operation. (2) One (1) for Four (4) Trip Hours. For each trip a Flight ------------------------------- Attendant shall receive on a prorated basis, one (1) hour flight credit and pay for each four (4) hours of trip hours as defined in (E)(1) above. (3) Domestic Operation - One (1) for Two (2) Duty Hours; Duty --------------------------------------------------------- Averaging. A Flight Attendant on the Domestic operation who --------- flies a flight or flights during an on-duty period as defined below, shall receive a minimum of one (1) hour of flight credit and pay for each two (2) hours of such on-duty time prorated, with a minimum of four (4) hours for a single on-duty period flight assignment or an average of four (4) hours per duty period for flights containing more than one duty period. The total duty credit for the entire pairing shall be compared to the total services performed and the Flight Attendant shall receive the greater. For purposes of this paragraph, an on-duty period means all time which passes from the time a Flight Attendant is required to report or actually reports, whichever is later, for his/her flight assignment and shall continue until fifteen minutes (:15) after block-in time. If a Flight Attendant commences or completes an on-duty period by deadheading, his/her on- duty period shall begin at the block-out or end at the block-in time of the flight. A Flight Attendant's on-duty period shall run continuously until broken by a scheduled or actual layover of not less than that required by paragraph (R) of this Article. (4) International Operation - One (1) for Two (2) Duty Hours; --------------------------------------------------------- Duty Averaging; Excess on Duty. A Flight Attendant on the ------------------------------ International operation who flies a flight or flights during an on-duty period as defined below, shall receive a minimum of one (1) hour of flight credit and pay for each two (2) hours of such on-duty time prorated. ARTICLE 6 / Page 3 This shall apply only to the first fourteen (14) hours of such duty period with a minimum of four (4) hours for a single on-duty period flight assignment or an average of four (4) hours per duty period for flights containing more than one duty period. The total duty credit for the entire pairing shall be compared to the total services performed and the Flight Attendant shall receive the greater. For purposes of this paragraph, an on-duty period means all time which passes from the time a Flight Attendant is required to report or actually reports, whichever is later, for his/her flight assignment and shall continue until thirty minutes (:30) after block-in time. If a Flight Attendant commences or completes an on-duty period by deadheading, his/her on- duty period shall begin at the block-out or end at the block-in time of the flight. In a duty period which contains a working segment the on-duty hours shall include debriefing time. A Flight Attendant's on-duty period shall run continuously until broken by a scheduled or actual layover of not less than that required by paragraph (R) of this Article. (5) Exclusions. The provisions of (E)(2), (3) and (4) above ---------- shall not apply: (a) To flights in which a landing has not been made at an airport other than the airport of takeoff; and (b) To flights local in nature, except that Flight Attendants assigned to such flights shall receive not less than two (2) hours credit and pay for such flights. (c) While assigned to residence standby [airport standby will be governed by the provisions of Article 6(I) and 18(D)(8)]. (d) Excess trip hours or on-duty hours resulting from a Flight Attendant's request to deadhead on flights other than those offered by the Company. (6) No Additional Duty Hours Under Certain Circumstances. If a ---------------------------------------------------- strike, work-stoppage, picketing by other employee groups, personal reasons, or deadheading to or from domicile at his or her own request, except when the request is a result of a choice offered to him or her as a result of being an extra or excess crew member, results in additional Duty Hours or Trip Hours for a Flight Attendant, such additional Duty Hours or Trip Hours shall not be included in the computation outlined in (E)(2), (3) and (4) above. (7) Surface Transportation. Movement between the following ---------------------- airports by surface transportation for purpose of taking out a flight or returning a flight, will not be considered as deadhead time. Each Flight Attendant shall be compensated for such movement, at the Flight Attendant's domicile only, at the operational duty rates specified in Article 3(C). ARTICLE 6 / Page 4 Between Normal Travel Time Newark-LaGuardia 1:15 Newark-Kennedy 1:30 Kennedy-Islip 1:00 LaGuardia-Kennedy :45 Los Angeles-Burbank 1:15 Los Angeles-Long Beach :40 Los Angeles-Ontario 2:15 Midway-O'Hare 1:30 San Francisco-Oakland 1:00 San Francisco-San Joe 1:00 The travel time provided in this paragraph shall be considered as an extension of the trip hours defined in (E)(1) and duty hours defined in (E)(3) and (4) above, and of the on-duty provisions of paragraphs (R) and (D) of this Article. (F) Vacation Credit and Pay. When a Flight Attendant is on vacation ----------------------- he/she shall be credited and paid the fixed daily credit of 2:30 for each day of vacation. (G) Training/AER's Credit and Pay; Special Assignment. A Flight ------------------------------------------------- Attendant shall be credited and paid the fixed daily credit of 2:30, or receive credit on a trips missed basis, whichever is greater, for each day he/she is in training or refresher courses. A Flight Attendant shall be credited and paid the fixed daily credit of 2:30 and expenses for Annual Emergency Review (AER). There shall be no credit and pay and expenses for the first retest. In the event it is necessary to schedule an AER which conflicts with a trip, the Flight Attendant will be removed from the trip and will be subject to balance. Notwithstanding the provisions of this paragraph, pay credit and expenses will accrue if a Flight Attendant, subsequent to the second AER failure, is assigned to retraining. When a Flight Attendant is removed from flight for special assignment to non-flying duty, such Flight Attendant shall be paid and credited with 2:50 for each day of special assignment to a maximum of 85:00 hours per bid month for his/her respective classification, or receive credit for trips missed on a scheduled basis. In the application of this paragraph, the Flight Attendant will receive the greater of 2:50 credit and pay hours per day or the scheduled credit and pay generated by the flight from which removed, whichever is greater, to a maximum of 85:00 hours. (H) Meetings or Courses. No credit and pay will be given under (G) ------------------- above for operational meetings or for training or refresher courses which are held in lieu of or in connection with operational meetings unless attendance at such meetings is required and such meetings exceed two meetings during the probationary period. (I) Standby Duty. An employee who is assigned to standby duty, as ------------ standby duty is defined in Article 2 hereof, shall receive flight credit and pay prorated on the ARTICLE 6 / Page 5 basis of one (1) hour credited for each eight (8) hours of assignment to standby duty, with a minimum of one (1) hour. In the event that the actual flight time flown or commenced during such eight (8) hour period an employee is required to standby exceeds the time credited hereunder, this provision shall not apply. An employee who is assigned to airport standby duty as airport standby duty is defined in Article 2 hereof, shall receive a minimum of one (1) hour of flight credit for each two (2) hours of such airport standby time prorated. For any on-duty period involving assignment to airport standby, an employee shall receive no less than three (3) hours of credit for such on-duty period. (J) Call-Out Pay. An employee who reports for flight duty and is ------------ not used will be granted two (2) hours of flight credit and pay unless such employee is not used due to his or her incapacity for flight duty. (K) Holding Pay. Each time an employee is required by the Company ----------- to accompany passengers to the scheduled destination when a flight terminates at another station, and each time an employee is required to remain with passengers prior to flight or following flight arrival at any station, he/she will receive flight pay and credit if the delay is one hour or more, subject to the following: (1) Such pay and credit shall be granted for each hour or fraction thereof so spent and when such duty time is required by the Company. (2) Scheduled ground time at an on-line station, thirty minutes ground time at a domestic off-line station and forty-five minutes ground time at an international off-line station shall not be counted and no credit and pay shall be given therefor. (3) Credit and pay will be given for all time spent with passengers when required by the Company to remain with them or with the aircraft while other crew members and the passengers are served a meal in ground restaurant facilities during a scheduled stop at an on-line station. Flight Attendants will not be required to serve meals or beverages to passengers other than on board the aircraft. (4) When holding time occurs at the conclusion of flight duty it shall be considered an extension of the trip hours as defined in paragraph (E)(1) and of the on-duty hours as defined in paragraphs (E)(3), (E)(4), (R) and (D) of this Article 6. (L) Deadhead. If an employee deadheads under Company orders on any -------- and all flight(s) to or from protecting a flight, he/she shall be credited with one hundred (100%) of such deadhead flight time for pay and credit purposes. If an employee deadheads on surface transportation to or from protecting a flight, he/she will be paid fifty percent (50%) flight time but no credit for the scheduled air time between the points traveled, provided that this provision shall not apply to surface transportation between co-terminals. Time spent in ARTICLE 6 / Page 6 deadhead transportation to and from duty assignment shall not be considered part of any rest period to which an employee is entitled under this Agreement. All time spent deadheading will be included in a Flight Attendant's on-duty period. A Flight Attendant whose on-duty period consists solely of deadhead shall not be entitled to the minimum trip credit provided in paragraphs (E)(3) and (4) above. Flight Attendant scheduled to complete his/her flight assignment by a deadhead return to his/her domicile or satellite shall be permitted (upon notification to station Operations personnel) to proceed directly to a location other than his/her domicile or satellite provided that he/she does not depart prior to the scheduled departure time of his/her scheduled deadhead flight. When utilizing the provisions of this paragraph, a Flight Attendant shall be deemed to have actually performed the deadhead assignment as scheduled. The only exception shall be that his/her trip expenses shall terminate at the scheduled departure time of the scheduled deadhead flight. The Flight Attendant must submit an exception paycard upon return to his/her domicile or satellite. A Reserve Flight Attendant who utilizes the provisions of this paragraph shall telephone his/her crew schedule office and determine his/her status. Flight Attendants who are scheduled to deadhead may be assigned to work the flight. In such case the Flight Attendant's duty time shall commence at the normal report time for a working Flight Attendant or at the time the Flight Attendant is assigned to work, as determined by the Company, whichever is later, and be paid applicable flight pay and credit. Assignments to work instead of deadhead will be made only by Crew Schedule or Operational Planning. Assignments to work instead of deadhead will be in inverse seniority order from among those Flight Attendants who by working will not become illegal for a subsequent flight in the same trip or for a subsequent trip. (M) Supervisor Pay Assignment. When an employee is removed from his ------------------------- or her regularly scheduled, promotional, or charter flight, for training purposes, due to the assignment of a supervisor, or due to the special requirements of the particular flight, the Flight Attendant so removed shall: (1) Be assigned the flight credit and pay hours she or he would have normally accrued had she or he taken the flight as scheduled; and (2) When the removal is at the employee's domicile or satellite, be placed on the schedule for her or his next flight in the same position had she or he taken the flight as scheduled. An employee will not be credited for flight credit hours or receive pay for any period in which she or he is accruing actual flight time. ARTICLE 6 / Page 7 (3) For purposes of training or refresher when a specific position on board the aircraft is required the assignor will displace the most senior cabin attendant scheduled for the flight and will assume the assignee's seniority. (4) The Company reserves the right to displace any cabin attendant on any regularly scheduled, charter or promotional flight regardless of seniority. In such event, the assignor will assume the assignee's seniority. (5) It is further understood that the procedures outlined herein are not to be considered optional on the part of either assignor or assignee. (6) Except in emergency situations, supervisory personnel will not cover open flights without first assigning a reserve. (N) Flight Time Limitations; Charters. The flight time limitations --------------------------------- provided in paragraph (A) of this Article shall include all flight time during which an employee is assigned on regularly scheduled, publicity, extra-section, charters, [except those charters operated under the provisions of Article 18(E)(2) and (3)], ferry, scenic and other flights on which he or she performs regular flight duties. (O) Request for Relief From Duty. An employee assigned to a flight ---------------------------- which has been delayed at his or her domicile or satellite may request relief four (4) hours after reporting for duty in connection with such flight. Relief will be supplied if a relief employee is available. The employee requesting such relief will remain on duty and depart with a flight unless a relief arrives prior to the flight's departure. An employee relieved pursuant to this section will be granted a minimum of ten (10) hours of rest immediately following his/her release. At the end of such rest period, he/she may be balanced in accordance with Article 18. (P) Non-Pay Status. During any calendar month when an employee is -------------- in a non-pay status, such Flight Attendant will be credited with the applicable daily rate for flight time limitation purposes only. (Q) Jury Duty. When a Flight Attendant is called to jury duty, the --------- Flight Attendant shall immediately notify the Company and the Company shall release the Flight Attendant from flight duty for the duration of such jury duty. For each day a Flight Attendant is required to be available for jury duty, the Flight Attendant shall be paid the daily credit rate, less any jury duty pay received. A Flight Attendant receiving pay and credit pursuant to this provision shall expeditiously report to his/her manager the amount of Government remuneration received. A Flight Attendant who suffers a loss of credit due to period(s) of jury duty shall not be subject to balance. ARTICLE 6 / Page 8 (R) FAA Minimum Rest Regulations. ---------------------------- FAA minimum rest regulations are as follows:
Additional Operator May If Rest Period Flight Reduce Rest Reduced, Next Attendants Scheduled Prescribed Period to No Rest Must Be Required on Duty Period Rest Period Less Than At Least Each Flight - ----------- ----------- --------- -------- ----------- 14 hours or less 9 hours 8 hours 10 hours - 14-16 hours 12 hours 10 hours 14 hours 1 16-18 hours 12 hours 10 hours 14 hours 2 18-20 hours* 12 hours 10 hours 14 hours 3
*Duty periods longer than 18 hours may be assigned only for operations to or from outside the 48 contiguous states. (1) Domestic Operation. A Flight Attendant on the Domestic ------------------ operation will not be scheduled out of his/her domicile, satellite or layover station to be on duty for more than thirteen (13) consecutive hours. Such Flight Attendant shall not be required to remain on duty for more than fifteen (15) consecutive hours. A Flight Attendant who exceeds fifteen (15) hours on duty will be compensated at the appropriate hourly rate for all hours in excess of fourteen (14) hours. Such compensation will be in addition to that computed under Paragraph (D) of this Article. Notwithstanding the above, an employee who is scheduled to complete a flight assignment by deadhead return to domicile or satellite may be scheduled to a maximum of fifteen (15) hours on duty, provided that the working portions of such on-duty period do not exceed the normal on-duty limitations. For purposes of this section, an employee's on-duty period cannot be broken by an off-duty period of: (a) Less than sixteen (16) hours at domicile after a Domestic flight prior to taking an International flight, except as provided under Article 18(G) [Back- to-Back Flying]; or (b) Less than ten (10) hours, at domicile or, in the case of relief from duty at a point where adequate sleeping accommodations are not provided in the immediate vicinity of the airport; or (c) Of less than eight (8) hours in the case of relief from duty at any airport where suitable and adequate sleeping accommodations are provided and available in the immediate vicinity of the airport. In accordance with FAA minimum rest regulations, no less than nine (9) hours may be scheduled but in actual operation, such rest may be waived to eight (8) hours, in which event the Flight ARTICLE 6 / Page 9 Attendant must receive no less than ten (10) hours in his/her next rest period. (d) For purposes of this paragraph, immediately vicinity of the airport shall be defined as not more than fifteen (:15) minutes normal driving time. An employee will not be assigned to any duty with the Company during any rest period specified in this section. For purposes of this section, the on-duty period shall include the report time and debriefing time as applicable. (2) International Operation. Flight Attendants shall receive ----------------------- minimum rest periods at their domicile or satellite of no less than twenty-four (24) hours from release to report following any International flight, except as provided under Article 18(G) (Back-to-Back Flying). (a) Rest periods shall commence upon the completion of the thirty minute (:30) de-briefing time or upon release from duty at domiciles and satellites. (b) At International layover stations the Company shall provide a minimum rest period of at least twelve (12) hours scheduled from release to report and a minimum rest of ten (10) hours actual from release to report; provided, however, that rest following duty periods in excess of fourteen (14) hours shall be provided in accordance with (R) above. (c) During the rest periods provided in this paragraph the employee shall be free from all duty with the Company. (d) An employee on the International operation will not be scheduled out of his/her domicile, satellite or layover station to be on duty in excess of fourteen (14) consecutive hours, except to the extent necessitated by a nonstop flight or to meet the requirements of a military charter flight or to those charter flights operated under the provisions of Article 18(E)(2) and (3) [Charters]. Actual hours on duty in excess of fourteen (14) will be compensated at the appropriate hourly rate. Such compensation will be in addition to that computed under paragraph (D) of this Article. (e) For purposes of this section, the on-duty period shall include the report time referred to in paragraph (E)(1) above and the thirty minute (:30) debriefing time. NOTE: An on-duty period consisting solely of deadheading shall not include debriefing time. ARTICLE 6 / Page 10 (S) Contractual relief from all duty for not less than twenty-four (24) consecutive hours must be granted any bid line Flight Attendant at his/her domicile or satellite at least once during any seven (7) consecutive calendar days. Contractual relief from all duty for not less than twenty-four (24) consecutive hours must be granted any reserve Flight Attendant at his/her domicile at least once during any seven (7) consecutive calendar days. FAR relief from all duty for not less than twenty-four (24) consecutive hours must be granted any reserve Flight Attendant at his/her domicile or layover station at least once during any seven (7) consecutive calendar days. (T) Rest Seats/Facilities. --------------------- (1) The Company shall provide adequate rest facilities for Flight Attendants on all flights and will provide facilities equal to those used by other crew members. On flight(s) scheduled for less than ten (10) hours flight time in a single on-duty period and so long as a First Class seat is blocked out for the cockpit crew on such flights, the Company will block one (1) First Class seat in the First Class cabin for use exclusively for Flight Attendants. On international flight(s) scheduled for eight (8) or more hours flight time in a single on-duty period, and a seat is available after take-off, such seat on that flight may be used as a rest seat. Flight Attendants will be accorded the same prerogatives as may be extended to pilots under similar circumstances, including eating and sleeping. The provisions of this paragraph concerning rest facilities in the polar operation are satisfied on the basis that the Company will block and enclose two (2) First Class type seats in the First Class cabin for use exclusively by Flight Attendants. In addition, on international flight(s) scheduled for ten (10) or more hours flight time in a single on-duty period, the Company will block and curtain two (2) First Class seats in the First Class cabin for use exclusively by Flight Attendants. (2) In the event the Company operates aircraft larger than the B767 in its international operations and the block time in a single on duty period is ten (10) hours or more, the rest facilities provided exclusively for Flight Attendant use will be increased at a ratio of one (1) additional rest seat for each three (3) working Cabin Attendants above the B767 bid staffing of seven (7) Cabin Attendants. (For example, in the event the Company operates a 747 aircraft with thirteen (13) or more working Cabin Attendants [Flight Service Manager and 12 Flight Attendants or more], TWA will provide two (2) additional crew rest seats). (U) Guaranteed Days Off. A Flight Attendant not on reserve shall ------------------- receive a minimum of four (4) pre-scheduled two-day periods plus one (1) one-day period not pre-scheduled per month, at domicile, free from all duty with the Company. The two (2) day periods shall be indicated as such on the sequence bid sheets and shall be distributed throughout the month; however, one (1) two-day period will be subject to rescheduling as a result of initial balancing, but such period ARTICLE 6 / Page 11 must be rescheduled prior to the beginning of the bid month. Two (2) day periods for relief run holders will be established after the initial balancing. For purposes of this paragraph, the time for the commencement of days off shall be 0200 for each domicile and this time will not thereafter be changed unless mutually agreed to between the System Scheduling Committee and Vice President - In-Flight Services, at the Monthly Scheduling Meeting. After initial balancing has been accomplished, in the event that a Flight Attendant flies into a scheduled duty free period, such period shall commence at the designated time on the following day. If the entire duty free period is impinged upon, such period shall be rescheduled later in the bid month. Such duty free period shall not commence until the Flight Attendant has been released at domicile. If such rescheduling requires the removal of the Flight Attendant from a scheduled activity, the Company shall not be required to reschedule the two-day period unless the Flight Attendant calls Crew Schedule and requests the same. This specific request must be made to Crew Schedule no later than six (6) hours after the completion of the non-routine pairing that impinged on the guaranteed day off. Trades or request balance flights which result in interference with duty free periods shall not require the Company to reschedule the duty free period. (V) Reserve Flight Attendants. Flight Attendants on reserve shall ------------------------- be granted a reserve spread of twelve (12) days. All reserve spreads shall be considered immovable with the exception of one (1) spread, identified on the monthly bid sheet, which shall not be moved more than forty-eight (48) hours except by mutual agreement or when necessary to accomplish training for the Flight Attendant. Assignment of reserve spreads shall be made in accordance with preference bid in seniority order. A minimum of twenty percent (20%) of Cabin Attendant reserve spreads initially awarded shall consist of twelve (12) consecutive days. The remaining eighty percent (80%) of such Cabin Attendant reserve spreads shall be awarded as three, four, or six (6) day spreads, which in combination with the twelve day spread, may not exceed four (4) separate spreads. Such Cabin Attendant Reserve spreads or combinations thereof may be discontinued by mutual consent of the parties with notification to the Director of Crew Schedule no later than the first of the month preceding the affected month. (W) Equipment Substitution. Subject to the provisions of Paragraph ---------------------- 6(Z), (1) In the event that a different type of equipment should be substituted on any scheduled flight or flight segment of a Flight Attendant holding a bid run and such Flight Attendant is qualified on the substituted equipment he/she will fly such substituted equipment. (2) Should an equipment substitution as above occur at the Flight Attendant's domicile and the Flight Attendant is not qualified to fly the substituted equipment, the Company may require such Flight Attendant to protect any segment of such flight assignment. A Flight Attendant may be required to deadhead into position to protect any segment of the Flight Attendant's flight assignment. ARTICLE 6 / Page 12 (3) Should an equipment substitution as above occur at other than the Flight Attendant's domicile, the Flight Attendant shall be scheduled as an extra crew member in accordance with the Away From Domicile Scheduling Policy. (4) At Domicile (a) Those bid Cabin Attendants who were originally scheduled on the flight and are qualified to fly the substituted equipment will be assigned to such flight in seniority choice order. In the event no Cabin Attendant accepts the offer to work, the junior Cabin Attendant(s) may be assigned to work. (b) In the event the substituted equipment does not utilize a Service Manager, the Service Manager will not be allowed to exercise his/her Flight Attendant seniority on the substituted equipment. (5) Away From Domicile (a) Those bid Cabin Attendants who were originally scheduled on the flight and are qualified to fly the substituted equipment will be assigned to such flight in seniority choice order. In the event no Cabin Attendant accepts the offer to work, the junior Cabin Attendant(s) may be assigned to work. (b) In the event the substituted equipment does not utilize a Service Manager, the Service Manager will not be allowed to exercise his/her Flight Attendant seniority on the substituted equipment. The Service Manager may either be assigned to an open flight requiring a Service Manager or deadheaded to domicile. (X) Enhanced Trip Option; BLIM; Quarterly Limitations ------------------------------------------------- (1) Enhanced Trip Option. -------------------- (a) Full-line Flight Attendants. Full-line Flight --------------------------- Attendants may offer into open time trips ("ETO OFFER") which they would like to drop from their lines subject to Paragraph (3) below. If another Flight Attendant selects the offered trip from open time ("ETO TAKE"), the trip will be dropped from the offering Flight Attendant's line and placed in the receiving Flight Attendant's line. Until the offered trip is selected by another Flight Attendant, the offering Flight Attendant will remain responsible for the trip. A selected trip must not conflict with any existing assignments and all contractual legalities must be observed. ARTICLE 6 / Page 13 (b) Alternate Line Flight Attendants. Alternate Line -------------------------------- Flight Attendants may not utilize ETO OFFER. Alternate Line Flight Attendants may utilize ETO TAKE up to the maximum credit limit of fifty-five (55:00) hours per month. (c) The provisions of TWA/IFFA Arbitration Case No. 81-0057 "Claimed Reserve Guarantee" shall not apply to Flight Attendants whose monthly guarantees have been reduced pursuant to the provisions of Paragraph 6(X). (d) The terms "initial line projection", "credit limit", "85:00 credit hours" and "guarantee" as used in Article 6 and Article 18, are applicable to a Flight Attendant who has exercised the Enhanced Trip Option. As described herein, those terms shall be construed to mean the increased or decreased values, as may be applicable, resulting from the application of the provisions of this Paragraph 6(X). (e) LOD/ETO. An ETO trip that has language of destination (LOD) assigned to the sequence shall have the LOD requirement considered prior to the processing of the ETO trip. The LOD Flight Attendant who selects such a trip must be same language qualified as the LOD Flight Attendant offering the trip. (f) ETO FOR RESERVES. A reserve flight Attendant may add trips by utilizing the provision of the Enhanced Trip Option (ETO) in accordance with Art. 18(D)(8)(l)(3). Pay for such additional ETO trip(s) shall be paid over and above the Reserve Guarantee. (g) SICK LEAVE ALLOWANCE/ETO UNDER 32:30. Sick leave accrual shall not apply to a Flight Attendant who, through the use of the Enhanced Trip Option (ETO), reduces his/her time and as a result completes a month with less than 32:30 pay hours. (h) VACATION ALLOWANCE UNDER 32:30. Vacation accrual shall not apply to a Flight Attendant who, through the use of the Enhanced Trip Option (ETO), reduces his/her time and as a result completes a month with less than 32:30 pay hours. (2) IP/BLIM. ------- (a) IP/BLIM Decrease. When the trip is dropped, the initial ---------------- line projection ("IP") and Block Limitation "(BLIM") [established pursuant to the provisions of Article ARTICLE 6 / Page 14 18(D)(7)(c], the credit limit [initially 85:00 hours pursuant to the provisions of Article 6(A)], and the minimum guarantee [initially 65:00 pursuant to the provisions of Article 3] of the offering Flight Attendant will each be reduced by the amount of the credit of the dropped trip. (b) IP/BLIM Increase. The initial line projection and the ---------------- credit limit of the Flight Attendant adding a trip through ETO will be increased by the number of credit hours of the trip received. If the current Block Projection is less than the current Block Limitation (95:00 hours) and there is an ETO added trip, the current Block Limitation should be increased by the scheduled block value of the added ETO trip. If the current Block Projection is equal to or greater than the current Block Limitation, a new Block Limitation will be established. The scheduled value of each additional ETO trip will be added to the current Block Projection, and the value of such Block Projection becomes the new Block Limitation (BLIM). If a Flight Attendant adds a trip, by using ETO, and that trip extends over the end of a bid period and that Flight Attendant is then awarded reserve in the new month, the normal 85:00 hour reserve BLIM will remain in the new month. If that Flight Attendant is later moved up to an open time line, the added ETO block time will be added to the normal 95:00 BLIM. Notwithstanding the above, and purposes of this paragraph only, a flight Attendant who picks up the additional block time through actual operation, anytime during the month, shall not be subject to trip removal for exceeding the adjusted block cap limitation unless such projected monthly block time, including the additional block time, exceeds the adjusted block cap limit by more than one (1) hour. (c) Exceeding BLIM. A Flight Attendant may add a trip or -------------- trips through open-time trading or self-balancing that exceeds the normal 95:00 Block Limitation or the adjusted Block Limitation established through ETO activity. BLIM shall not be raised as a result of open-time trading or self-balancing pursuant to the terms of this Paragraph. EXCEPTION: To recover loss of time pursuant to Article 6(Z) and Article 18(D)(7), the Company may balance a Flight Attendant up to the newly-established scheduled block hours. (For example: A Flight Attendant trades into a 2-day 10:00 hour trip that increases scheduled block hours from 90:00 hours to 100:00 hours. BLIM will remain at 95:00 hours. In the event a Flight Attendant suffers a loss of time which would allow the Company to balance the Flight Attendant [whether through Article 6(Z) or Article 18(D)(F)], the Company may not balance the Flight Attendant to exceed the newly-established ARTICLE 6 / Page 15 scheduled block hours of 100:00 hours. At the Flight Attendant's sole option, he or she may elect to exceed the maximum block hours). (3) Quarterly Minimums. ------------------ (a) Full-line Flight Attendants shall be required to accrue flight credit hours as defined in Article 6(B) of not less than 150:00 flight credit hours during each quarter. (b) A quarter shall be defined as January, February, and March (1st Quarter), April, May, and June (2nd Quarter), July, August, and September (3rd Quarter), and October, November, and December (4th Quarter). (c) Full-line Flight Attendants may offer trips into ETO which they would like to drop from their lines. In no event may a Flight Attendant offer a trip into ETO which would require the offering Flight Attendant to be scheduled in excess of sixty-five (65:00) credit hours in Month 3 of the Quarter in order to satisfy the 150:00 hours quarterly minimum limitation. (d) Excess credit carried forward as "bowwave" shall not be credited towards the quarterly minimum. Bowwave used to drop trips shall be credited towards the quarterly minimum. In connection with Article 18(D)(7)(f)(4)(g)(2), a full- line Flight Attendant shall be entitled to drop trip(s) up to a maximum of twenty-five (25) flight credit hours per month. (Y) Drug/Alcohol Testing. Drug/alcohol testing will not be -------------------- considered an extension of an on-duty period. Nonetheless, if a Flight Attendant will not receive minimum rest between release from the drug/alcohol test and report for his/her next assignment, he/she shall be released from the next assignment provided a request is made to Crew Schedule as soon as practicable after the Flight Attendant becomes aware that he/she will not receive minimum rest, but in no case later than departure from the drug testing facility. Flight Attendants removed from assignment in accordance with this paragraph shall be treated as having suffered a loss of flight time credit due to illegality and shall be subject to balance in accordance with the provisions of Article 18. A Flight Attendant who does not advise Crew Schedule before leaving the drug testing facility that a drug test has resulted in less than minimum rest may not thereafter be removed from his/her next assignment due to an untimely claim of having received less than minimum rest. (Z) Guaranteed Trip Protection. -------------------------- (1) Subject to Paragraph 3(a) and 3(b) below, Credit and Pay Protection will be provided for a bid Flight Attendant who suffers a loss of credit and pay on any trip of the month, including VFL trip(s), and a Reserve ARTICLE 6 / Page 16 Flight Attendant who trades into a trip on his/her scheduled days off as a result of all: (a) Cancellations. (b) Non-routine operations resulting in a loss of flight credit and pay including, but not limited to cancellation of flight segments and/or illegality of Flight Attendant(s) in connection with any trip. (c) Equipment substitution. (d) Inversals. (e) Company-created errors. (f) Move-ups. (g) Transitions. (h) Schedule changes. (2) The Flight Attendant shall be protected for the original trip and shall receive flight credit and pay for the protected trip or the trip actually worked, whichever is greater. For transitions, the Flight Attendant shall be protected for the original trip or the transition trip, whichever is greater. (3) This Article provides for complete credit and pay protection under specific circumstances on a trip-by-trip basis. As such, the loss of credit and balancing provisions shall be handled in accordance with Article 6(Z)(5). Should the Flight Attendant go non-routine and become illegal for his or her next flight activity, the Flight Attendant shall be protected for the affected trip provided that the "buffer" provisions contained herein have been satisfied. (In the event the Company sequences a trip, initially balances a Flight Attendant, or progressively balances a Flight Attendant under Article 18(D)(7) with less than the 12-hour buffer, the Flight Attendant shall be entitled to Trip Protection). Buffers. Flight assignments that are the result of ------- Flight Attendant trades (including MTD, OTD, SBL, and ETO) shall be protected subject to the following: (a) 12-Hour Buffer. A Flight Attendant must schedule himself or herself so that there is a minimum 12 hour duty-free period between the scheduled release time and scheduled report time of any 2 flight assignments. Failure to provide the minimum 12 hour duty-free period between the 2 flight assignments eliminates trip protection for the 2nd flight assignment. (b) 16-Hour Buffer. When a Flight Attendant is on a flight assignment (subsequent to block out of the first flight segment) and adds a flight assignment that is the next flight assignment, the Flight Attendant must provide a minimum ARTICLE 6 / Page 17 16 hour duty-free period from the scheduled release of the first flight assignment until scheduled report time of the next flight assignment. Failure to provide the minimum 16 hour duty-free period eliminates trip protection for the added flight assignment. (4) Credit and Pay Protection shall be provided for the entire value of the protected trip whether the trip operated totally within the current bid month or partially within the current bid month and partially within the following month. (5) In exchange for such protection, the Company shall retain the right to recover lost flight credit on the same calendar days as the protected trip in accordance with the following procedures: (a) When a loss of credit and pay as defined in paragraph 6(Z)(1)(a)-(h) above occurs, the Company may balance the Flight Attendant on a recovery trip(s) at the domicile provided that such trip(s) is scheduled to return to the Flight Attendant's domicile and release the Flight Attendant on the same calendar day as the trip for which protected. Such recovery trip(s) shall be scheduled to return the Flight Attendant to domicile in order to be legal for his/her next trip. The Company may balance the Flight Attendant on a recovery trip that is contained in hard time, soft time, or offered in ETO by another Flight Attendant. The Company may also balance the Flight Attendant on a recovery trip that has been previously assigned and/or partially flown by a Reserve Flight Attendant, except in cases where the Reserve Flight Attendant is flying on his or her days off. In the event the Reserve Flight Attendant has reported for the previously assigned flight and/or has flown a portion of the trip, he or she shall be entitled to call-out pay or credit for the portion of the trip actually flown, whichever is greater, as provided in the Collective Bargaining Agreement. (b) If, in actual operation, the recovery trip(s) causes the Flight Attendant to be illegal for his or her next scheduled trip, the Flight Attendant will be protected subject to Paragraph (3) above. (c) If the Flight Attendant is subject to balance in accordance with the above provisions and immediately assignment cannot be made, he/she shall only be required to contact Crew Schedule during the next call-in for which he/she is legal, if applicable. The Company shall not balance the Flight Attendant on any flight which departs prior to the scheduled check-in of the original flight without the prior consent of the Flight Attendant. However, the Flight ARTICLE 6 / Page 18 Attendant may initiate contact at any time when a trip becomes available. (d) In the case of multiple balance trips, the Flight Attendant must be notified of all balance trips simultaneously. (e) "Trip Protection" Balance Trips. ------------------------------- (1) If the Flight Attendant self-balances on the same calendar day(s) as the protected trip (increases flight time), Guaranteed Trip Protection shall still apply and the Flight Attendant shall receive credit and pay for the protected trip or the trip actually worked, whichever is greater. For trips that operate on different day(s) or if the trip trade causes a decrease in time, the Flight Attendant shall lose the Guaranteed Trip Protection and shall receive the total credit and pay of the trip(s) actually flown. (2) If the Flight Attendant places the "Trip Protection" balance trip into ETO, it shall be subject to the provisions of Article 6(X). In the event another Flight Attendant selects the offered trip from ETO or the offered trip is used by Crew Schedule for any reason, the offering Flight Attendant shall be entitled to the credit for the difference between the Guaranteed Trip Protection and the balance trip that is dropped from his or her line. (3) Prior to a "Trip Protection" balance trip being placed in the Flight Attendant's line, he or she may request Balance Avoidance in accordance with Article 18(D)(7)(f)2. (f) A Flight Attendant who has a pairing offered in ETO and that pairing cancels while in the ETO offer position, shall not be provided trip protection. The Company will reduce the applicable credit and pay projection. (g) The provisions of this Article 6(Z) shall not apply to trips that are affected by any TWA IAM-represented employees' unlawful work stoppage or unlawful job action, including that of TWA Flight Attendants. The determination that there was an unlawful job action or work stoppage may only be determined by a Court of law or arbitration decision. In the event there is a determination that there was an unlawful job action or work stoppage by IAM-represented employees, ARTICLE 6 / Page 19 the Company shall be entitled to recoup all overpayments relating to Trip Protection payments (i.e. the difference between the credit and pay of the protected trip(s) and the credit and pay of the trip(s) actually worked). At the Company's option, the recoupment may be in one (1) lump sum. The Company shall provide documentation relating to the recoupment of any overpayment. ARTICLE 6 / Page 20 ARTICLE 7 PASSES (A) Passes. Employees shall be entitled to personal transportation ------- passes as issued in accordance with Company regulations. A Class 3, positive term pass, or its equivalent, shall be granted to the Local Lodge 1997 President, Local Lodge 1997 Vice President, Local Lodge 1997 Secretary/Treasurer, Local Lodge 1997 Executive Board Members, Negotiating Committee, Grievance Representatives, and Full-time Representatives, for use on union business, subject to applicable Federal regulations. (B) Union Member System Board of Adjustment Passes. Union members ----------------------------------------------- of the System Board(s) of Adjustment who are required to travel on the Company's system in connection with official Union business shall be issued positive space passes, subject to applicable Federal regulations. (C) Reduced Rate Transportation on Union Business. Reduced rate ---------------------------------------------- transportation shall be available for employees on Union business to the same degree as for personal business in accordance with Company regulations. This in no way shall be construed as affecting the present policy regarding passes for Union business. Witnesses and representatives who are employees of the Company shall receive positive free transportation over the lines of the Company from the point of duty to the point of hearing and return. (D) Jumpseat Authority. The exclusive use of cabin jumpseat ------------------- authority for personal business shall be granted to active Flight Attendants, on a first come, first served basis, in accordance with Company policy and procedures. On flights on which Additional Crew Members (ACM) and cabin jumpseat authority have been authorized, when a Flight Attendant is utilizing an XCAP for personal business, cabin passenger seat assignments shall be made among XCAPs and ACMs, regardless of rank, using Company seniority. The priorities of cabin attendant jumpseat authority shall be: XCAP 1 Essential Flight Attendant personnel proceeding to or from a flight assignment when no passenger seat is available. XCAP 2 Urgent Flight Attendant familiarization or Management personnel traveling to, from or on Company business. XCAP 3 Flight Attendant on family or personal emergency XCAP 4 Flight Attendant on Union business XCAP 5 Flight Attendant personal business--First come/First Served NOTE - The above is applicable to those Flight Attendants who are in an active status ARTICLE 7 / Page 1 (E) Retired Employees. Employees who at the time of retirement are ------------------ covered by this Agreement shall receive pass privileges in accordance with the policy and regulations specified in the Company Management Policy and Procedure Manual (provided federal law permits). In addition to the above, employees who have fifteen (15) or more years of service with the Company and who retire under the Flight Attendant Retirement Plan at age fifty (50) shall be entitled to retiree term pass and reduced rate transportation privileges for self, spouse and eligible dependents. (F) Age 45 Retirement/Voluntary Termination. Employees who ---------------------------------------- voluntarily terminate or retire at age forty-five (45) with a minimum of fifteen (15) years of service will be provided with a calendar year complement of six (6) Class 9 adult trip passes and three (3) Class 9 children trip passes. Employees who retire will also be entitled to receive unlimited reduced rates. However, employees who voluntarily terminate will be entitled to unlimited reduced rates on TWA and will receive reduced rates on other airlines only to the extent such is authorized by appropriate interline agreement between the Company and other airlines. (G) Disability Retirement. Employees who disability retire with ---------------------- fifteen (15) years of service will be entitled to receive a retirement term pass and reduced rate transportation privileges. (H) Employee Pass Privileges. Employees will be afforded free and ------------------------- reduced rate transportation as established by Company policy on the date of signing of this Agreement which will not be changed or discontinued during the term of this Agreement without first giving the Union thirty (30) days notice of the reason therefor and affording the Union an opportunity to confer with the Company. (I) Improvements in Pass Policy. Any improvements in the pass ---------------------------- policy which the Company extends to employees covered by a collective bargaining agreement will likewise be extended to Flight Attendants. (J) Furloughed/Displaced Flight Attendant Passes. Flight --------------------------------------------- Attendants who are furloughed or displaced to another geographic location and remain active are entitled to unlimited Class 8 displacement passes, service charge exempt, for a period not to exceed twelve (12) months. Such service charge exempt Class 8 passes shall be issued through the local pass office and shall be used between the on-line station nearest the Flight Attendant's residence and the new domicile and shall be limited to travel in connection with work assignments. ARTICLE 7 / Page 2 (K) Emergency Pass Privileges. When a member of an employee's -------------------------- immediate family dies or suffers serious illness, such employee will be granted emergency pass privileges in accordance with the Company's Management Policy and Procedure Manual. The priority of any pass granted pursuant to this section shall not be less than the priority of such pass as provided in the Company's Management Policy and Procedure Manual on the effective date of this Agreement. Immediate family as used in this paragraph shall mean spouse, children, father, mother, stepfather, stepmother, father-in-law, mother-in-law, sister, brother, stepbrother, stepsister, grandparents, and legal guardian. (L) In-law Passes. Effective January 1, 2000, a Flight -------------- Attendant's father-in-law and mother-in-law shall be afforded access to purchase up to eight (8) I.D. 90 tickets in a year for travel on TWA provided that such Flight Attendant's pass allotment benefit includes eligible dependent children. ARTICLE 7 / Page 3 ARTICLE 8 SICK LEAVE (A) Sick Leave Accrual. Sick leave allowance will accrue at the ------------------ rate of 5.0 hours for each month of continuous service, to a maximum of seven hundred fifty (750) hours. A Flight Attendant on leave of absence or furlough status shall retain but not accrue sick leave credit. Except as provided in Article 6(X) (Sick Leave Allowance/ETO), continuous service shall be considered as fifteen (15) days of service in a contractual month and less than fifteen (15) days shall not be considered. (B) Proof of Illness; Written Statement. The Company may require ----------------------------------- proof of illness or physical disability by doctor's certificate for illnesses of ten (10) or more days or where there has been an abuse of sick leave. For illnesses of less than ten (10) days, the Company may require a written statement as to the nature of the extended illness. (C) Entitlement to Sick Leave Credit. A bid Flight Attendant will -------------------------------- be entitled to sick leave on the first day the Flight Attendant is unable to report for scheduled flight duty. A reserve Flight Attendant will be entitled to sick leave on each day that the Flight Attendant is unavailable to be scheduled for reserve duty. (D) Three (3) Banks. There shall be three types of banks: (1) --------------- Industrial Injury Bank (consisting of 120 days or 288:00 hours @ 2:24 per day), (2) Trips Missed Personal Illness Bank; and (3) Master Personal Illness Bank. (E) Bid Run Flight Attendant. A Flight Attendant who holds a bid ------------------------ run and misses a trip or trips as a result of personal illness shall be paid as follows: (1) Trips Missed Personal Illness Bank. ---------------------------------- (a) Flight Attendant with Sixty (60:00) Flight Credit ------------------------------------------------- Hours in the Trips Missed Personal Illness Bank. At ----------------------------------------------- the beginning of each calendar year, a maximum of sixty (60:00) credit hours shall be deducted from the Flight Attendant's Master Personal Illness Bank and placed in the Flight Attendant's Trips Missed Personal Illness Bank to the extent that such Flight Attendant has accrued sick leave credit. The Trips Missed Personal Illness Bank shall be used for payment of trips missed up to sixty (60) flight credit hours. A bid Flight Attendant, with a Sixty (60:00) Credit Hours in his or her Trips Missed Personal Illness Bank, shall receive credit for the value of trip(s) missed up to sixty (60) flight credit hours per calendar year. During any given month, a Flight Attendant who has sufficient flight credit hours in his or her Trips Missed Personal Illness Bank to cover a specific trip, shall be paid on the basis of the then scheduled flight pay for the trip missed. If the flight credit hours in the Trips Missed Personal Illness Bank are not sufficient to cover a specific ARTICLE 8 / Page 1 trip, he or she will receive the daily credit rate of four (4:00) hours to be deducted from the Master Illness Personal Illness Bank for the scheduled flight duty. Any leftover credit hours in the Trips Missed Personal Illness bank will remain. Upon exhaustion of the Trips Missed Personal Illness Bank [below four (4:00) hours], the Flight Attendant will receive the daily credit rate of four (4:00) flight credit hours to be deducted from the Master Personal Illness Bank for the scheduled flight duty. Under this Paragraph, a Flight Attendant's monthly flight credit may exceed 72:00 flight credit hours. (b) Flight Attendant with Less than Sixty (60:00) Flight ---------------------------------------------------- Credit Hours in the Trips Missed Personal Illness ------------------------------------------------- Bank. At the beginning of each calendar year, a ---- Flight Attendant who has less than sixty (60:00) flight credit hours in his or her Master Personal Illness Bank shall have that lesser amount placed in the Trips Missed Personal Illness Bank. The Trips Missed Personal Illness Bank shall be used for payment of trips missed up to the amount of credit hours in the Flight Attendant's Trips Missed Personal Illness Bank. A bid Flight Attendant shall receive credit for the value of trip(s) missed up to the amount of flight credit hours contained in his or her Trips Missed Personal Illness Bank. During any given month, a Flight Attendant who has sufficient flight credit hours in his or her Trips Missed Personal Illness Bank to cover a specific trip, shall receive credit for the value of the trip missed and be paid on the basis of the then scheduled flight pay for the trip missed. If the flight credit hours in the Trips Missed Personal Illness Bank are not sufficient to cover a specific trip, he or she will receive the daily credit rate of four (4:00) flight credit hours to be deducted from the Master Personal Illness Bank for the scheduled flight duty. Any leftover credit hours in the Trips Missed Personal Illness Bank will remain. Upon exhaustion of the Trips Missed Personal Illness Bank [below four (4:00) hours], the Flight Attendant will receive the daily credit rate of four (4:00) hours to be deducted from his or her Master Personal Illness Bank for the scheduled flight duty. Under this Paragraph, a Flight Attendant's monthly flight credit may exceed 72:00 flight credit hours. (2) If, upon return to active status, the Flight Attendant's monthly flight credit is below 65:00 (if a Full Line Flight Attendant) or 32:30 (if an Alternate Line Flight Attendant), he or she shall be subject to balance pursuant to Article 18(D)(7)(g). ARTICLE 8 / Page 2 (3) Reserve Flight Attendant. A reserve Flight Attendant ------------------------ shall receive 4:00 flight credit hours for each day he or she is unavailable to be scheduled for reserve duty, which shall be deducted from the Master Personal Illness Bank. (4) A Flight Attendant who is unavailable for scheduled flight duty or reserve duty for an entire bid month and who has exhausted his or her Trips Missed Personal Illness Bank shall receive a maximum of 72:00 flight credit hours which shall be deducted from his or her Master Personal Illness Bank. (5) At the end of each calendar year, any unused Trips Missed Personal Illness hours shall be transferred to the Master Personal Illness Bank. (6) A Flight Attendant who is unavailable for assignments other than flight duty, due to illness, will receive the daily credit rate of two hours and thirty (2:30) minutes for each day of assignment. Such daily credit rate shall be deducted from the Master Personal Illness Bank. (F) Exhaustion of Sick Leave. At such time as a Flight Attendant's ------------------------ sick leave accrual is less than the daily credit rate of four (4:00) hours, the Flight Attendant's base pay shall be reduced by 1/14 of the bi-weekly pay for each day of continued illness. The Flight Attendant will receive the daily credit rate of four (4:00) hours for each day of scheduled duty when absent for flight time limitation purposes. (G) Family Emergency. ----------------- (1) When a member of a Flight Attendant's immediate family dies or suffers serious illness, the Flight Attendant shall, upon request, be placed on Family Emergency. A Reserve Flight Attendant shall be paid four (4:00) flight credit hours for each day of unavailability for scheduled reserve duty, provided he or she has accrued sick leave. A bid Flight Attendant shall be paid at the rate of four (4:00) flight credit hours for each day he or she is unavailable for scheduled flight duty, provided he or she has accrued sick leave. The Flight Attendant's Master Personal Illness Bank shall be charged accordingly to the extent that such Flight Attendant has accrued sick leave credit. (2) One occurrence of Family Emergency shall be defined as scheduled flight duty if a bid Flight Attendant or scheduled availability for reserve duty if a Reserve Flight Attendant within a seven (7) calendar day period. A Flight Attendant shall be entitled to two (2) occurrences per calendar year. Upon request by the Flight Attendant, the two (2) occurrences may be used consecutively for a total of fourteen (14) consecutive calendar days. If a bid Flight Attendant has scheduled flight duty or if a Reserve Flight Attendant is scheduled to ARTICLE 8 / Page 3 be available for reserve duty and he or she has exhausted Family Emergency days, those additional days used for Family Emergency will be categorized as without pay, and pay guarantee, will, therefore, be reduced accordingly. In the event a Flight Attendant's monthly pay guarantee falls below 65:00 hours (if a full-line Flight Attendant) or below 32:30 (if an alternate-line Flight Attendant), he or she may apply for Balance Avoidance in connection with Article 18(D)(7)(f). Upon return to duty, a Flight Attendant shall not be subject to balance provided his or her monthly pay guarantee remains above 65:00 hours (if a full-line Flight Attendant or above 32:30 (if an alternate-line Flight Attendant). (3) Immediate family as used in this Paragraph (G) shall mean spouse, children, mother, father, stepfather, stepmother, father-in-law, mother-in-law, sister, brother, stepbrother, stepsister, grandparents, grandchildren, and legal guardian. (4) In conjunction with such time off duty, an employee will be granted emergency pass privileges in accordance with the Company's Management Policy and Procedure Manual. The priority of any pass granted pursuant to this section (G) shall not be less than the priority of such pass as provided in the Company's Management Policy and Procedure Manual on the effective date of this Agreement. For purposes of this Paragraph, the Company shall not be required to expand the Management Policy and Procedure Manual to provide pass privileges to include emergency travel for a grandchild. (H) Excess Flight Credit. During any month that a Flight Attendant -------------------- has used sick leave credit (whether for family emergency or personal illness), any flight credit in excess of 85:00 hours shall be paid off and will not be carried forward. (I) Industrial Illness/Injury. During an employee's absence due to ------------------------- occupational illness or injury compensable under the applicable Workers' Compensation Law, he or she shall receive from the Company the following benefits: (1) The bid Flight Attendant shall be paid on the basis of the then scheduled flight pay for the first trip missed and the Flight Attendant's Trips Missed Personal Illness Bank shall be charged accordingly, to the extent such Flight Attendant has accrued sick leave credit as provided in Paragraph (E). If such Bank has insufficient time to cover the entire trip missed, the Master Personal Illness Bank shall be charged at the daily credit rate of four (4:00) hours for each day of such scheduled duty. A reserve Flight Attendant shall be paid and credited the daily credit rate of four (4:00) hours for each day he or she is unavailable to be scheduled for reserve duty, up to a maximum of five (5) days, and the Flight Attendant's Master Personal Illness Bank shall be charged accordingly, to the extent such Flight Attendant has accrued sick leave credit. ARTICLE 8 / Page 4 (2) Commencing with the second trip missed (or no later than the sixth day for a reserve) and for a total period of one hundred twenty (120) consecutive calendar days, a Flight Attendant shall be paid and credited the daily credit rate of 2:24 hours offset by no more than the Workers' Compensation payments for which the flight attendant is eligible. Such credit (2:24 hr. [1 day]) shall be deducted from the Flight Attendant's Industrial Injury Bank for each day of such off-duty status. (3) For the first month that a Flight Attendant is absent due to occupational illness or injury, his or her flight credit shall be: (a) A bid Flight Attendant shall receive (i) the value of the first trip missed providing he or she has sufficient hours in the Trips Missed Personal Illness Bank and thereafter the daily credit rate of 2:24 hours shall apply to each calendar day that the Flight Attendant is absent due to industrial illness or injury or (ii) four (4:00) hours for each day of scheduled flight duty of the first scheduled trip if the Flight Attendant does not have sufficient hours in his or her Trips Missed Personal Illness Bank and thereafter the daily credit rate of 2:24 hours shall apply for each calendar day that the Flight Attendant is absent due to industrial illness or injury. Under this paragraph, a Flight Attendant's monthly flight credit may exceed seventy-two (72:00) flight credit hours. (b) A reserve Flight Attendant shall receive four (4:00) hours for each day he or she is unavailable for reserve duty, up to a maximum of five (5) calendar days and thereafter the daily credit rate of 2:24 hours shall apply for each calendar day that the Flight Attendant is absent due to industrial illness or injury. (4) For all following months thereafter, a Flight Attendant shall receive daily credit of 2:24 hours for each calendar day absent up to a maximum of seventy-two (72:00) flight credit hours per month. (5) Upon completion of the one hundred twenty (120) consecutive calendar days as referred to in (2) above, the Flight Attendant will advise the Company in writing that he/she elects to either receive Workers' Compensation or use their Master Personal Illness Bank: (a) The bid Flight Attendant may use his or her Master Personal Illness Bank on the basis of the then- scheduled flight pay of the trip(s) missed during such subsequent period. The scheduled flight credit of the trip(s) missed shall first be deducted from the Trips Missed Personal Illness Bank and thereafter, the flight credit shall be deducted from the Master Personal Illness Bank up to seventy-two (72:00) flight ARTICLE 8 / Page 5 credit hours per month and offset by no more than Workers' Compensation payments for which the employee is eligible. The Flight Attendant shall be required to mock bid under this provision. (b) A Flight Attendant without credit in his or her Trips Missed Personal Illness Bank or a reserve Flight Attendant shall have such credit deducted from the Master Personal Illness Bank up to seventy-two (72:00) flight credit hours per month offset by no more than Worker's Compensation payments, providing such Flight Attendant has accrued sick leave credit. (6) When a Flight Attendant is off duty due to an industrial injury and is receiving pay from the Company under paragraphs (1), (2), and (3), above, such Flight Attendant shall continue to accrue vacation and sick leave. These benefits shall be in lieu of any other payment provided for in this article for all absences due to the same illness or injury, and no deduction shall be made from her/his sick leave account for the payment provided by (2) above; however, payments made under (2), (3), and (4) above will be offset by Worker's Compensation payments for which the employee is eligible. A Flight Attendant absent from work under this provision shall continue to accrue seniority, including seniority for vacation, sick leave, and pay purposes during such absence subject to Article 15(B) of this Agreement. (J) Workers' Compensation Payments. Workers' Compensation payments ------------------------------ due a Flight Attendant under paragraph (I) above will be mailed directly to the affected employee. (K) Obligation to Prevent Sick Leave Abuse. The Flight Attendants -------------------------------------- and the IAM recognize their obligations to prevent abuse for reasons other than illness or other abuses of such sick leave privileges, and pledge their wholehearted cooperation to the Company to prevent abuse. (L) Flight Attendant Requirement When Calling Off Duty. A Flight -------------------------------------------------- Attendant will only be required to make one (1) call to Crew Schedule when such Flight Attendant is to be off duty due to personal illness, family illness or industrial injury as well as the expected duration of his/her absence. The Flight Attendant shall also provide a contact number which may be used by the Company for administrative purposes or to request a doctor's certificate. A Flight Attendant will not be required to obtain permission to leave his/her contact number. Furthermore, a Flight Attendant will not be disciplined solely for being unavailable at his/her contact number. (M) Posting of Sick Leave Accruals. The Company will post current ------------------------------ sick leave accruals for Flight Attendants on the monthly Flight Time Records (FTR). ARTICLE 8 / Page 6 (N) Mid Pairing Illness/Injury. -------------------------- (1) When a Flight Attendant calls off sick/injured midpairing and is unable to complete his/her next flight assignment, Operational Planning/Crew Schedule shall reconstruct the flight pairing to reflect that such assignment will be completed with a RETDO, return to domicile. A Flight Attendant who incurs illness or injury mid-pairing will be paid for the balance of the trip missed and returned to domicile, provided that the Flight Attendant has accrued sick leave credit in his or her Trips Missed Personal Illness Bank. If such Bank has insufficient time to cover the entire trip missed, the Flight Attendant shall receive four (4:00) flight credit hours for each day that the Flight Attendant was unavailable for the scheduled flight duty. The Master Personal Illness Bank shall be charged accordingly. In addition, the Flight Attendant shall receive flight credit for the portion of the trip actually worked. The Flight Attendant will be paid for the remainder of the original trip missed as scheduled, in accordance with the provisions of (E). (2) In addition, if the Flight Attendant calls off sick/injured mid-pairing or becomes ill while at a layover station, the Flight Attendant will continue to receive normal trip expenses until return to Domicile or Satellite or upon arrival of the regularly scheduled turnaround flight, whichever is earlier. (3) If the Flight Attendant is unable to return to Domicile or Satellite as normally scheduled, reasonable actual expenses, as determined by the Flight Attendant's Regional General Manager, will be paid for the period beyond that which is covered by trip expenses outlined above. Expenses of this nature include room (if not at a contract hotel), meals, telephone, transportation to and from the airport and transportation associated with required medical attention. Such expenses are to be reported on form G-118 by the Flight Attendant for approval by the supervisor. In the event the Flight Attendant is hospitalized away from Domicile or Satellite, reasonable actual expenses will not include rooms or meals. ARTICLE 8 / Page 7 ARTICLE 9 VACATIONS (A) Vacation Allowance. Employees based in the continental United ------------------ States will be eligible for vacation according to the number of full months in the employ of the Company in the preceding calendar year, computed according to the following schedule: Calendar Days to Be Allowed for Vacation According to Number of Years of Service with the Company Completed Prior to January 1 of Year Vacation is Due to be Taken Months Worked Prior to 4 Years 5 Through 8 Through 25 Years January 1 Or Less 7 Years 24 Years and Over --------- ------- ------- -------- -------- 1 1 1 2 3 2 1 2 3 5 3 2 3 5 8 4 3 5 6 10 5 4 6 8 13 6 5 7 10 15 7 6 9 11 18 8 6 10 13 20 9 7 11 14 23 10 8 12 16 25 11 9 13 18 27 12 10 14 19 29 Effective January 1, 2001 - ------------------------- Months Worked Prior to 4 Years 5 Through 8 Through 25 Years January 1 Or Less 7 Years 24 Years and Over --------- ------- ------- -------- -------- 1 1 2 2 3 2 2 3 4 6 3 3 4 6 9 4 4 6 8 12 5 5 7 10 15 6 6 9 12 18 7 7 10 14 21 8 8 12 16 24 9 9 14 18 27 10 10 15 20 30 11 11 17 22 33 12 12 18 24 36 ARTICLE 9 / Page 1 Vacation allowance will accrue during each calendar month for which an employee receives pay from the Company, whether she or he is working or is on sick leave or vacation; however, an employee loaned to another Company will not receive less vacation as a result of such loan than he would have received if he had spent such loan time with this Company. For the purpose of computing vacation accrual, any number of days off duty on leave or furlough over 15 shall count as a whole month, and any number up to and including 15 shall not be deducted from vacation accrual. However, in accordance with Article 6(X)(7), such vacation accrual shall not apply to a Flight Attendant who, through use of the Enhanced Trip Option (ETO), reduces his/her time and as a result completes a month with less than 32:30 pay hours. (B) Eligibility for Vacation. ------------------------ (1) An employee will become eligible for a vacation on January 1 of each year, provided he/she has completed the probationary period or six (6) months with the Company, whichever is less. A schedule of available vacation periods for the succeeding year shall be posted by the Company by October 1 each year; however, the Company may commence the January vacation bid period on January 2 in order to insure flight protection for the preceding day. Employees shall bid and be awarded a vacation period on the basis of their domicile as of October 1. Preference of periods in which employees shall be permitted to take vacations shall be granted at each station in order of seniority, (including employees on a leave of absence) taking into consideration the requirements of the service. Employees shall file written preferences as to the period(s) for taking vacation, such preferences to be in the hands of the Company by November 15 each year. Vacation assignments shall be posted by the Company on or before December 1 and will remain posted through December 31. When vacation schedules have been established, senior employees will not be permitted to take the vacation period already assigned to junior employees. An employee's scheduled vacation period for the succeeding year shall not be changed because of a change in Domicile. (2) Not less than three percent (3%) of the vacations posted in accordance with paragraph (C) above shall be scheduled in any calendar month. Further, no less than one and one-half percent (1 1/2%) of such vacation periods shall be scheduled in either the first or second half of any bid month. Vacation periods may be traded between employees at the same domicile provided such trades are effected prior to the fifteenth (15th) of the month preceding the first vacation period involved. ARTICLE 9 / Page 2 (C) Vacations Not Cumulative; Rescheduling of Vacations. --------------------------------------------------- Vacations shall not be cumulative and must be taken within the calendar year. When a vacation period has been scheduled it will not be changed without the employee's consent, except upon thirty (30) days written notice, unless the Company does not have sufficient employees to maintain schedules and, in no event, without fifteen (15) days written notice, except with the employee's consent. However, in the event Company operations in any year do not permit any employee his regular vacation during such year, he shall be so notified in writing by the Company and he may be permitted to take such vacation in the succeeding year. When an employee is not granted a vacation, due to the operation of this paragraph, for a previous year of service, such employee shall be granted vacation pay for such vacation earned and not received. (D) Terminating Employees. Vacation allowance will be granted to --------------------- terminating employees in accordance with the following rules: (1) Employees terminating because of layoff due to reduction in force or resigning after giving two weeks' written notice of such resignation shall be granted vacation pay for the period worked during the current calendar year in accordance with schedules set forth in this Article, and shall also be paid for vacation period due from a previous year and not taken. Pay under this paragraph is to be computed on the basis of the fixed daily credit rate of 2:30, for each day of accrued vacation, times the employee's base hourly rate. In addition, the employee will receive increment pay calculated under paragraph (E) below. (2) Employees terminating because of lay-off due to reduction in force, who received vacation allowance at the time of lay-off and who were recalled during the same calendar year, will after the start of the next calendar year, receive a vacation leave for the period served from the date of recall to the end of that calendar year. When a Flight Attendant is granted a personal leave of absence, accrued vacation credits will be retained unless the Flight Attendant has an outstanding indebtedness to the Company or requests to receive vacation pay. (3) Employees terminating because of resignation without giving two week's written notice of such resignation or terminating because of discharge will not be eligible for vacation allowance except for a vacation due from a previous year and not yet received. (4) In the case of the death of an employee, the vacation pay due shall be paid to his executor, administrator, or legal heir. ARTICLE 9 / Page 3 (5) An employee shall not be eligible to receive vacation pay until he or she has completed the probationary period or six (6) months of service with the Company, whichever is less. (E) Increment Pay. In addition to vacation pay and credit provided ------------- under Article 6(F), an employee shall receive increment pay based on the number of credited vacation pay hours times the following applicable rates listed in Article 3(L) for: Domestic Cabin Attendants and Service Managers International Cabin Attendants International Service Managers (F) Transfer to Overseas Domicile. When an employee based in the ----------------------------- United States is to be transferred to an overseas domicile, every effort will be made to extend the date of transfer for a sufficient period to enable him/her to take all accumulated vacation to date prior to departing for his overseas domicile. (G) Flight Time. During any calendar month that an employee is on ----------- vacation, his flight time for the period not on vacation during such month shall, on a pro rata basis, not exceed the normal flight time except as provided in 18(D)(7)(c)2)c); and when a vacation period extends from one month into the next month, the same conditions shall apply to such two months. (H) Splitting of Vacation Periods. A vacation period with a ----------------------------- minimum of fifteen (15) days may be split into three (3) segments with a minimum of five (5) consecutive days in each split. If due ten (10) to fourteen (14) days vacation, the Flight Attendant may elect one split with a minimum of five (5) consecutive days in the split. Providing that the seniority and the number of vacation days due will permit, a Flight Attendant will have the option to bid (a) for a single vacation period, i.e., no split; (b) for one split, i.e., two parts; or (c) for two splits, i.e., three parts. Requests for such split vacations shall be submitted at the time vacations are bid and shall be awarded in seniority order at the same time that initial vacation awards are granted. The initial vacation award shall not be moved or changed as a result of an employee being awarded a split vacation. An employee may specify a minimum five (5) days split as well as the maximum number of days which he/she is willing to accept as a split vacation award and may be granted any number within that range. (I) Voluntary Vacation Sellback. --------------------------- (1) Sixty (60) days prior to the beginning of the bid period in which a Flight Attendant's vacation is scheduled, he/she may notify the Company that he/she wishes to sell his/her vacation back to the Company. The Company may, at its option, buy the Flight Attendant's vacation. If the Company decides to do so, the Flight Attendant will be notified of the Company's acceptance no less than thirty (30) days prior to the beginning of the bid period, and a check will be issued to ARTICLE 9 / Page 4 the Flight Attendant on the 25th of the vacation month, for the full value of the vacation (fixed daily rate of 2:30 per day). The Flight Attendant shall then be considered by the Company as available to fly for the entire vacation period. (2) A Flight Attendant may elect to fly on his/her vacation without advance notification to the Company and fly only those trips he/she elects to fly to the extent the trips are available to him/her through the regular open time processes or through Enhanced Trip Option (ETO). (J) Personal Business Days. ---------------------- Once during each calendar year an employee, upon request, will be granted up to three (3) days of urgent personal business and such days shall be deducted from the employee's current year vacation allowance. A Flight Attendant who has exhausted all vacation will have such occurrence deducted from the following year's vacation accrual. Options as provided in (I) above may not be utilized with Personal Business Days. ARTICLE 9 / Page 5 ARTICLE 10 SENIORITY GENERAL (A) Seniority Accrual. Seniority shall begin to accrue from the ----------------- date of employment as a Flight Attendant and shall continue to accrue during such period of employment as a Flight Attendant except as otherwise provided in this Agreement. When Flight Attendants have equal seniority, their relative seniority shall be determined on the basis of their length of employment with the Company, or if the length of their Company employment is equal then their surname shall be listed in order of age as determined by date of birth as shown in the Company's personnel records (the oldest of them being listed first, the next oldest second, etc.). As to those Flight Attendants who are assigned to the line on or after July 1, 1976, if the length of Company employment is equal as between two Flight Attendants, then their surname shall be listed upon the seniority list on the basis of the last four (4) digits of the Flight Attendants social security number, with the Flight Attendant with the lowest last four (4) digits being deemed the senior. (B) Furloughed Employees. Seniority shall govern all employees in -------------------- case of furlough due to reduction in forces, re-employment after furlough, (subject to Article 12(G)) choice of vacancies, and preference of assignment to equipment, provided the employee is deemed sufficiently qualified by the Company for the operation involved, except that the term "sufficiently qualified" as used herein shall be applied the same as it was on July 31, 1969. In addition, qualifications or lack thereof on any equipment will not be used as a basis for denying seniority in cases of bidding or reduction in force. If a Flight Attendant bids and is awarded a line of time on equipment on which such Flight Attendant is not qualified, the provisions of Article 6(G) will apply during such training. In the event a senior employee is not considered sufficiently qualified, the Company will, upon request, discuss the matter with the employee and furnish reasons therefor, in writing. (C) Retention of Seniority. Any employee given special assignment, ---------------------- or Ambassador Club receptionist assignment, and any employee lent to a subsidiary, affiliate, or other company, shall retain and continue to accrue seniority and shall have the option to return to coverage under this Agreement. Employees accepting (a) promotion to supervisory positions, or (b) promotions to positions with duties directly associated with functions performed by employees covered by this Agreement, will retain and continue to accrue seniority in the classification from which promoted. (D) Transfers from In-Flight Services Department. Employees -------------------------------------------- authorized by the Company to transfer from the In-Flight Services Department to another department within the Company at their own request will retain, for six (6) ARTICLE 10 / Page 1 months after the date of transfer, seniority accrued to the date of transfer, and thereafter they shall lose all Flight Attendant seniority and their names will be removed from the seniority list(s). (E) Transfers or Assignments to Other Duty. Seniority shall not in -------------------------------------- any respect govern transfers or assignment to non-flying duty, supervisory duty, or special assignment duty. (F) Removal from Seniority List. Any employee who resigns or who --------------------------- is dismissed from the service of the Company shall thereupon forfeit all previously accrued seniority, and the employee's name will be removed from the seniority list(s). (G) Probationary Flight Attendants. Flight Attendants shall be on ------------------------------ probation during their first eight (8) thirty-day incremental periods of active service with the Company as a Flight Attendant under this Agreement. The provisions of paragraph (B) above as pertains to preference of assignment to equipment shall not apply to an employee until completion of the probationary period. Flight Attendants' names will appear on the Flight Attendant seniority list regardless of probationary status. Nothing in this Agreement shall be construed to prevent the Company from releasing a Flight Attendant during the probationary period regardless of her or his position on the system seniority list. If a probationary Flight Attendant, starting from the date the Flight Attendant is assigned to the line, is absent sixteen (16) days or more during a thirty (30) day increment period, the Flight Attendant will be required to serve an additional thirty (30) day period. Active service shall include Days-off, vacation, and Special Assignment and shall not be counted as absences for purposes of determining absence during any thirty (30) day increment. UBS shall not be counted as active service for purposes of this Paragraph (G). If a Flight Attendant is furloughed during the probationary period due to a reduction in force, such Flight Attendants shall be required to serve only that time when added to his/her prior time will comply with the eight (8) thirty-day incremental period. (H) Return to Active Duty. Upon return from a position described --------------------- in paragraph (C) above, an employee shall be permitted to return to the classification and domicile held prior to such assignment or may exercise system seniority on an existing vacancy in the classification held prior to such assignment provided the employee is qualified to perform the work of the job. An employee who is displaced by such exercise of seniority may in turn exercise displacement rights within the classification, seniority permitting or into a lower classification, seniority permitting. If the domicile of an employee is changed through the exercise of seniority rights, the Company will provide space available transportation over the Company's lines to the extent permitted by law and by Company regulations, but all other expenses incidental thereto shall be borne by the employee. ARTICLE 10 / Page 2 ARTICLE 11 SENIORITY LISTS (A) Posting of Flight Attendant Seniority List. The Company shall ------------------------------------------ post a Flight Attendant System Seniority list containing the names of all Flight Attendants indicating classification and operation on a bulletin board and such list shall be available at all times at all stations where Flight Attendants are based. In addition, the Company shall post a domicile seniority list by classification and operation on bulletin boards at all stations. (B) Twice Yearly Postings. Within ten (10) days after January 1, --------------------- and July 1 of each year, three (3) copies of the revised and updated Flight Attendant Seniority List, one (1) in payroll number order, one (1) in alphabetical order and one (1) in seniority number order, shall be posted, said list to be up-to- date as of January 1 and July 1. Additionally, copies of said list will be provided to the Union, along with the seniority information on a computer disk. Additionally, with each list provided, the Company shall provide a list of all changes, additions, and deletions and their respective effective dates for each between the previous list and the current list. (C) Protest. Each employee entitled to be listed on the list ------- referred to in (A) above shall be permitted a period of forty- five (45) days after posting of such list in which to protest in writing to the company any omission or incorrect posting affecting his or her seniority. In the event such employee does not file a written protest within forty-five (45) days after the list is posted, he or she shall not thereafter be entitled to file such protest. Such protests directed to any revision of the original list shall be strictly confined to errors or changes occurring subsequent to the posting of the previous seniority list, except that typographical or clerical errors may be corrected at any time. (D) Successor Transaction; Merger. In the event the Company is ----------------------------- involved in any Successor Transaction in which the Successor is an air carrier or any person or entity that Controls or is under the Control of an air carrier (the "Merger Partner"), the Company shall require the Merger Partner to agree, and the Merger Partner shall agree to employ the Company's IAM Flight Attendants and to integrate the pre-merger IAM Flight Attendant Seniority Lists of the Company and the Merger partner pursuant to the IAM merger policy if the Merger Partner's employees are represented by the IAM and otherwise pursuant to Section 3 and 13 of the Allegheny- Mohawk Labor Protective Provisions ("LPPs"). ARTICLE 11 / Page 1 ARTICLE 12 REDUCTION IN FORCE AND RECALL (A) Furlough Notice. When Flight Attendants are to be furloughed --------------- due to a reduction in force, at least fifteen (15) days notice of such reduction will be given the Flight Attendant to be laid off, except that such notice will not be required in instances wherein a temporary reduction is occasioned by strikes or other work stoppages, grounding of a substantial number of the Company's aircraft, or other circumstances beyond the Company's control. (B) Offer of Leaves Prior to Furlough. In those instances requiring --------------------------------- notification in (A) above, the Company will, prior to giving such notification, post a bulletin in all domiciles indicating the anticipated number of Flight Attendants to be furloughed by domicile and will offer an equivalent number of leaves of absence at those domiciles where the reduction will occur. The actual number and duration of such leaves to be granted at each domicile will be determined by the Company. When Flight Attendants are furloughed due to a reduction in force the Flight Attendants with the least system seniority in the job classification at the domiciles where the reduction occurs will be given furlough notice as specified in (A) above. At the time of issuing said furlough notice, the Company will post a bulletin in all domiciles containing the following information: 1. Names of those Flight Attendants receiving furlough notices. 2. Locations where vacancies exist by classification. 3. The names, location and classification wherein the least senior Flight Attendants who are subject to displacement are based. (The information required to be posted in accordance with the provisions of paragraph (B) 3 above, will not be required when no further displacements will occur.) Flight Attendants who have been issued furlough notice shall, within seven (7) days of such notice being issued, send a telegram to the Company specifying their desire to accept the furlough or indicating those locations and classifications into which they will accept a transfer or displacement, in order of their preference. Telegram notifications shall be addressed to the Manager - Flight Resources, TWA, 11495 Natural Bridge Road, Bridgeton, MO 63044. Once having indicated their preferences for filling vacancies, displacement or furlough, Flight Attendants will not be permitted to refuse the award of said option. Exercise of displacement rights shall be as specified below and the ARTICLE 12 / Page 1 Flight Attendant may only displace another Flight Attendant with less system seniority at a location specified in the above mentioned bulletin. (1) When all telegram preferences have been received from Flight Attendants who have been issued furlough notice the Company shall award vacancies or displacement in system seniority order. (2) Flight Attendants who are furloughed due to a reduction in force or who have been displaced may elect any of the options set forth below for his/her respective classification: SERVICE MANAGER: 1. Bid any Service Manager vacancy on the system. 2. Displace the most junior Service Manager on the system. 3. Displace the most junior Cabin Attendant at the same domicile. 4. Displace the most junior Cabin Attendant on the system. 5. Furlough. CABIN ATTENDANTS: 1. Bid any Cabin Attendant vacancy on the system. 2. Displace the most junior Cabin Attendant on the system. 3. Furlough. (C) No Expense to Company. Changes in Domicile as a result of --------------------- exercising displacement options shall be without expense to the Company but non-positive air transportation on the Company's system shall be furnished to the extent permitted by law and in accordance with Company regulations. Flight Attendants who are displacing will exercise their system seniority in the Flight Attendant position for purposes of vacation, rates of pay, sick leave and bidding provisions of this agreement. (D) Notification of Address Change. An employee who has been ------------------------------ furloughed due to a reduction in force shall file his/her address with the domicile Regional General Manager and thereafter shall promptly advise the Company of any change in address. (E) Failure to Comply. An employee on furlough shall not be ----------------- entitled to preference in re-employment and his/her name shall be removed from the seniority list if he/she does not comply with the requirement of paragraph (D) of this Article, or if he/she does not notify the Company in writing or by telegraphing of his/her intention to return to the service within fifteen (15) days of sending notice offering re-employment; or if he/she does not return to the service of the ARTICLE 12 / Page 2 Company on or before the date specified in the notice offering such re-employment. (F) Seven Year Furlough Provision. Employees furloughed due to a ----------------------------- reduction in force on return to duty within seven (7) years from the furlough date, shall be allowed, for seniority purposes but not for purposes of determining future pay rate, all time accrued prior to returning to duty. At the end of seven (7) years after the date of furlough, the furlough shall expire and the employee's name shall be removed from the seniority list(s). (G) Displacement Passes. Flight Attendants who are furloughed and ------------------- displace to another geographic location are entitled to unlimited Class 8 displacement passes, service charge exempt, for a period not to exceed one (1) year. Such service charge exempt Class 8 passes shall be issued through the local pass office and shall be used between the on-line station nearest the Flight Attendant's residence and the new domicile and shall be limited to travel in connection with work assignments. (H) Recall/Bypass Letter of Agreement. In accordance with the April --------------------------------- 23, 1991, Recall/Bypass Letter of Agreement, furloughed Flight Attendants shall indicate in order of preference those domiciles/classifications to which they will accept assignment. All Flight Attendants, whether active, on furlough or on a 12(B) leave of absence who have a recall right to the Flight Service Manager position, shall be merged into a single list and recalled in seniority order to Flight Service Manager. Consistent with the Recall/Bypass provisions, Cabin Attendant vacancies will be filled by active Flight Attendants in seniority order, with a priority recall right to the domicile(s) where the vacancies exist. Any vacancies remaining will be filled in seniority order from those Flight Attendants on furlough or 12(B) leave. Transfers to domiciles will then be made in seniority order from among those Flight Attendants who have standing bids on file. The priority of recall to the domicile(s)/classification(s) will apply only to the first available vacancy offered in the domicile(s)/ classification(s) to the furloughed or displaced employee. (I) Furlough Pay. A Flight Attendant who is furloughed due to ------------ reduction in force shall receive furlough pay as provided in paragraph (K) of this Article, subject to the limitations and conditions set forth therein. (J) Furlough Pay Exclusions. A Flight Attendant will not be ----------------------- eligible for or receive furlough pay if any of the following conditions exist: (1) The Flight Attendant has not completed at least one (1) year with the Company, on pay status in a position covered by this Agreement. For the purpose of this paragraph "pay status" includes all time spent in a ARTICLE 12 / Page 3 position covered by the Agreement, exclusive of leaves of absence or furlough. (2) The Flight Attendant remains in the employ of the Company in any position. (3) The Flight Attendant fails to exercise his/her seniority which would enable the Flight Attendant to remain in the employ of the Company, except where such exercise of seniority would require moving to a new geographic location. (4) The Flight Attendant is dismissed for cause, resigns, retires, or accepts personal time off. (5) The Flight Attendant has been furloughed as a result of a temporary reduction occasioned by strikes or other work stoppages, grounding of a substantial number of the Company's aircraft, other circumstances beyond the Company's control, or a seasonal schedule reduction of less than four (4) months duration. (K) Recall Followed by Subsequent Furlough. An employee recalled to -------------------------------------- work under the terms of this Article after being on furlough for more than four (4) months who is again furloughed under conditions that would entitle him/her to furlough pay, shall be entitled to the amount specified for his/her service with the Company in accordance with paragraph (L) of this Article, less the dollar amount received on the occasion of the previous furlough; provided, that such dollar amount deduction shall not be made if such employee completes at least one additional year of active service with the Company under this Agreement from the date on which he/she reported for duty upon the occasion of the prior recall. ARTICLE 12 / Page 4 (L) Amount of Furlough Pay. The amount of furlough pay under this ---------------------- paragraph shall be based on the length of active service with the Company as above defined in paragraph (J). It shall be computed on the Flight Attendant's base pay at the time of furlough as follows: Years of Service Benefit ---------------- ------- 1 year 2 weeks 2 3 3 4 4 5 5 7 6 8 7 9 8 10 9 11 10 12 11 14 12 or more 16 (M) Union Notification. TWA shall provide to the IAM one (1) copy ------------------ of each furlough, recall and displacement notice whenever such activity occurs. ARTICLE 12 / Page 5 ARTICLE 13 FILLING OF VACANCIES (A) Transfer Bids. Flight Attendants who desire to transfer to a ------------- different Domicile or classifications may file a permanent bid in writing with the Company, stating the station(s) and/or classification(s) (listing them in order of preference, if more than one) to which they desire to transfer. However, employees will not be permitted to transfer until the completion of their probationary period, unless a lesser restriction is determined by the Company. All bids must be filed with the Director Crew Resources and Administration, TWA, 11495 Natural Bridge Road, Bridgeton, Missouri 63044. When vacancies occur in positions expected to last ninety (90) days or longer, the employees having the most system seniority, subject to the provisions of Article 12(H), who are qualified to perform the job and who have bids on file, will be offered an opportunity to transfer and fill the vacancy. Any employee transferring to fill such vacancy shall be available to begin the assignment on the date set by the Company, which shall be not less than seven (7) days from the date notified of the assignment. An employee shall be allowed a reasonable period between the time he/she is relieved of duties and the time required to report at the new location. Such time shall be established in advance and shall be dependent upon the means of travel. (B) Special Bid Requests; Involuntary Assignments. If no bids are --------------------------------------------- on file at the time the vacancy occurs, special bids may be requested for filling the vacancy. If no qualified employee expresses a desire to transfer, the vacancy may be filled by assigning the most junior qualified employee to the position, or, in the Company's discretion, by hiring a new employee. When special bids are requested, the bulletin will state the numbers of vacancies to be filled, the Domicile of each vacancy, and a reasonable deadline date after which bids will not be considered, which date will not be less than ten (10) days after the date the bulletin is posted. Bids under this paragraph must be made by telegram addressed to the appropriate Company official named in (A) of this Article. (C) Employees involuntarily assigned pursuant to paragraph (B) above shall have prior rights to displacement in lieu of the most junior employees at the station where the displacement occurs. Such employee shall have the prerogative of returning to the Domicile from which the involuntary assignment was made. (D) Permanent Bids. The Company will, at least once each month, -------------- post a list of all standing (permanent) bids for all classifications at all domiciles where Flight Attendants are based. If a Flight Attendant fails to withdraw a standing (permanent) bid prior to the bid being awarded, the Flight Attendant will not be permitted to refuse the award, except in cases due to a hardship. ARTICLE 13 / Page 1 (E) Temporary Vacancies. Vacancies expected to continue ninety (90) ------------------- days or less will be considered as temporary vacancies. Employees may file a bid for temporary vacancy on the permanent bid form described in paragraph (A) above. Such temporary vacancies expected to be more than fifteen (15) days will be bulletined and such bulletin will state the number of vacancies to be filled at each Domicile. If sufficient bids for temporary vacancies are not received, the Company will assign the most junior qualified employee at the nearest station having an excess where the vacancy exists. Likewise, in case of temporary vacancies of less than fifteen (15) days, the Company will assign the most junior qualified employee at the nearest station where the vacancies exist. Employees assigned temporary vacancies will be allowed an expense allowance of $32.00 per day in addition to the expenses under Articles 4(A)(1), 4(A)(2), 4(A)(3)(b), 4(B)(3), and 4(B)(4), as appropriate. In addition, the Company will provide suitable lodging for a Flight Attendant on temporary assignment at the temporary domicile. In the event the Company fails to provide suitable lodging, the Flight Attendant will be allowed the actual/reasonable expenses for the necessary lodging. Single trip assignments involving a change in geographic location will be considered temporary assignments for purposes of this Paragraph 13(E); however, the trip formula under Article 6(E) will be calculated as if the Flight Attendant was based at the temporary domicile. Employees, in lieu of receiving an expense allowance of $32.00 per day may elect to receive a pass (Class 6, Non- Positive). This expense allowance shall be payable for single trip assignments. (F) Passes. Successful bidders shall pay their own moving expenses ------ to their new station, except that the Company shall furnish Flight Attendants and members of the employee's immediate family who are residing with, and dependent upon the employee, a one-way (Class 6) non-positive transportation on the Company's system to the extent permitted by law and in accordance with Company regulations. (G) Mutual Transfers. Mutual transfer requests shall be processed ---------------- no later than five (5) days after normal transfers are processed but not later than the 15th of the month. Mutual transfer awards shall be posted within forty-eight (48) hours of the award. The awarding of either transfer (normal or mutual) will cancel all other transfer requests on file. System bid preferences for mutual transfers shall be matched against each other in system seniority order and permanent mutual transfers shall be awarded to the extent that there are matched preferences on file. Flight Attendants may mutually trade across categories provided that each Flight ARTICLE 13 / Page 2 Attendant is qualified, trained and available. Once a mutual transfer has been awarded, neither Flight Attendant can transfer for a period of six (6) months. Flight Attendants on probation cannot transfer until the completion of their probationary period unless a lesser restriction is determined by the Company. (H) Service Manager Vacancies. Vacancies in the Service Manager ------------------------- classification shall be opened for bid on a systemwide basis by Flight Attendants who have served as a Flight Attendant for two (2) years or more. If sufficient bids are not received to fill vacancies, Flight Attendants at the location where the vacancy exists will be assigned in inverse order of seniority from among those qualified Flight Attendants. A successful bidder to a vacancy in the Service Manager position shall be restricted to that position for a period of six (6) months from the date such vacancy is filled. Names of successful bidders will be posted at each domicile where employees in the status concerned are based. (I) Notification of Transfers. TWA shall provide to the IAM: ------------------------- (1) One (1) copy of the transfer request list to be delivered to the Union by overnight delivery immediately following transfer processing; (2) One (1) copy of each transfer message, to be furnished following the processing of all transfers. ARTICLE 13 / Page 3 ARTICLE 14 TRANSFER EXPENSES (A) Transfer Expenses. Flight Attendants transferred from one ----------------- domicile to another within the United States at Company request shall be allowed to select one (1) of the following two (2) options for moving household effects: (1) Option 1 - Company provided moving expenses. ------------------------------------------- 5,000 pounds - Single employee 10,000 pounds - Employee + 1 dependent 1,000 pounds - each additional dependent (2) Option 2 - Flight Attendant provided moving expenses. ---------------------------------------------------- Moving expenses handled by the Flight Attendant individually shall allow for a sum of money equal to the existing tariff for moving up to a maximum of 10,000 pounds of household effects between the two points. This reimbursement shall be based upon submission of verifiable receipts of expenses incurred when moving the primary residence. (3) Enroute Travel Expenses. If the Flight Attendant elects ----------------------- to drive his or her own automobile to the point of relocation, he or she shall be reimbursed at a mileage rate equal to the amount allowed by the federal government for federal employees for the most direct AAA mileage between the domicile from and to which he or she is being transferred, plus en route expense at the rate of Two ($2.00) dollars per hour based upon 400 miles travel per day. A Flight Attendant who does not drive to his or her new domicile will be allowed en route expenses for twenty- four (24) hours at Two ($2.00) Dollars per hour. (4) Relocation Expense. A Flight Attendant will be allowed ------------------ Four Hundred ($400.00) Dollar relocation expense. (B) Company-Requested Transfers. In Company-requested transfers, --------------------------- the Company will furnish space available transportation for the transferring Flight Attendant, to the extent permitted by law and in accordance with applicable Company regulations. (1) In all transfers, if traveling other than by car, such Flight Attendant shall be allowed enroute travel time following legal rest as follows: JFK-STL or STL-JFK, two (2) days. ARTICLE 14 / Page 1 (2) A Flight Attendant transferring, but not at the request of the Company, will be allowed sufficient time off to drive 400 miles per day as prescribed in Paragraph (A) above. (3) A Flight Attendant who transfers permanently from one domicile to another will not be required to report for flight duty within twenty-four (24) hours of his or her arrival at the domicile to which he/she is so transferred. At the Flight Attendant's option, the twenty-four (24) hour period may be waived. (C) Newly-Established or Re-Established Domiciles. --------------------------------------------- (1) Successful bidders to newly established or re-established Domiciles will be considered transferred at Company request for purposes of this Article. Such newly established Flight Attendant domiciles shall be so considered for a period of not less than nine (9) months from the effective date of the first bid to such domicile, provided that the Flight Attendant moves within twelve (12) months of effective date of his/her transfer. This provision shall not apply to bidders for a vacancy which was created by a Flight Attendant leaving such domicile. (2) Flight Attendants transferring from domiciles closed after the date of signing this Agreement, will be considered as transferring at Company request and paragraph (A) of this Article 14 will apply, provided such Flight Attendants move within twelve (12) months of such closing. ARTICLE 14 / Page 2 ARTICLE 15 LEAVES OF ABSENCE (A) Personal Leaves of Absence. When the requirements of the -------------------------- service will permit, an employee may be granted a personal leave of absence for a period not in excess of one hundred and eighty (180) days, upon receipt by the employee's supervisor of a written request, setting out the reasons therefor. When such leave is granted, the employee shall retain, and shall continue to accrue seniority, except for pay purposes. Such leave may be extended for additional periods not to exceed ninety (90) days each, when approved in writing by the employee's supervisor. If the employee engages in other employment within the field of aviation without prior written permission of the Company, she or he shall be deemed to have resigned and her or his name will be removed from the seniority list. (B) Medical Leaves of Absence. When leaves of absence are granted ------------------------- by the Company because of sickness or injury, an employee's seniority shall accrue, except for pay purposes, until he or she is able to return to duty or is found to be unfit for such duty, except that in no case shall leave for sickness or injury exceed a total continuous period of five (5) years. Return to duty after such leave shall be subject to a reasonable trial period not to exceed ninety (90) days. When leave of absence is granted for industrial injury, an employee's seniority shall accrue for pay purposes. Applications for medical leave and medical leave extensions (MED-356s) shall include an attachment, with space for Flight Attendant signature, providing "In the event of any dispute concerning my medical status and/or related employment rights, I authorize TWA to release my medical records to the IAM." (C) Union Leaves of Absence. Up to six (6) employees accepting ----------------------- full-time employment with the IAM, as officers or representative, shall be granted, if requested, an indefinite leave of absence by the Company for the period so employed so long as the IAM remains the exclusive bargaining agent of employees covered by this Agreement. Under such leaves such employee(s) shall continue to accrue seniority and shall have all employee benefits that can be reasonably continued in effect during his/her leave of absence. Upon his/her return from such leave of absence, the employee(s) will be credited with the maximum vacation, sick leave, and occupational illness or injury allowances provided by the Agreement then in effect for employees of like seniority provided that such employee(s) have been on leave of absence at least one (1) year. Further, upon return from said leave each individual shall be returned to active status in his/her domicile, and, seniority permitting, in his/her classification. Flight Attendants granted leaves under this paragraph shall be considered active under the provisions of Article 7(d). ARTICLE 15 / Page 1 (D) Return to Duty Following Personal Leave, Maternity Leave, or ------------------------------------------------------------ Adoption Leave. Immediately after expiration of a leave of -------------- absence granted under paragraphs (A), (G) or (H) of this Article, a Flight Attendant may exercise bidding privileges on any vacancy existing on the system. If such employee fails to become a successful bidder, she or he may displace the least senior employee in her or his status on the operation to which the returning employee was assigned immediately prior to the leave, provided that such employee is senior to the employee being displaced. If the returning employee does not displace, she or he will immediately be placed on furlough status and the provisions of Article 12 shall apply. (E) Return to Duty Following Medical or Union Leave. Immediately ----------------------------------------------- after the expiration of a leave of absence granted under (B) or (C) of this Article, a Flight Attendant may displace the least senior employee in her or his status at the location where the returning employee was assigned immediately prior to the leave, provided that such employee is senior to the employee being displaced. If unable to so displace because of seniority, the provisions of (D) of this Article shall apply. (F) Military Leave. When an employee is granted a leave of absence -------------- for extended active military duty, he or she shall retain, and continue to accrue seniority until ninety (90) days after termination of such active duty. Return to duty with the Company from such leave shall not entitle the employee to any greater relative seniority than would have occurred had the employee not taken such military leave. As soon as possible, but in no event later than the completion of the ninety (90) day period mentioned in this paragraph, an employee hereunder will displace the least senior employee in her or his status at the location where the returning employee was assigned immediately prior to the leave, provided that such employee is senior to the employee being displaced. If unable to so displace because of seniority, the provisions of (D) of this Article shall apply. (G) Maternity Leave. --------------- A female employee, upon discovery that she is pregnant, shall notify the Company and provide medical certification of the pregnancy. A Flight Attendant may be allowed to work up through the twenty-seventh week of pregnancy at which time she will be disqualified from flight duty subject to the following restriction: Upon certification that the pregnancy has been classified as a "high risk" pregnancy, a Flight Attendant will immediately qualify for a leave under this Article. In the event the Company disagrees with the treating physician's report, the Flight Attendant will be required to provide a second opinion. The second opinion shall be from a doctor, selected by the Flight Attendant, who is not ARTICLE 15 / Page 2 affiliated with the Flight Attendant's personal physician. The cost of the second opinion shall be paid by the Company. The second opinion shall be final and binding on the parties. In no event shall the company require the Flight Attendant to attend a company-designated physical examination. Use of sick bank hours and/or medical leave will continue up to six (6) weeks from the birth of the baby, or eight weeks if delivery is by Caesarian. A Flight Attendant may request a maternity leave of absence for up to six (6) months following the date of delivery. An employee granted a maternity leave under the provisions of this paragraph shall continue to accrue seniority during such leave but shall not accrue vacation, sick leave or longevity for pay purposes and shall not be eligible for sick leave benefits for time lost as a result of pregnancy. To support the request for such a leave, the employee will be required to submit a physician's statement verifying the pregnancy. At the conclusion of the leave of absence following the date of delivery, the employee must be available to return to active flight duty unless additional leave is requested and supported by her physician's statement indicating that additional time is necessary. (H) Adoption Leave of Absence. The Flight Attendant who so ------------------------- requests shall be granted an adoption leave of absence, commencing with the date that the Flight Attendant takes physical custody of the child. The Flight Attendant shall provide the appropriate documentation to the General Manager of the Domicile (or his/her designee) which shall indicate the scheduled delivery date of the child to the Flight Attendant. In the event the scheduled delivery date is delayed by more than five (5) days, the Flight Attendant shall notify the General Manager in order to revise the start date of the adoption leave. Such leave shall be available for the period requested, but in no event for more than ninety (90) days. In order to qualify for the leave, the child to be adopted cannot have resided in the Flight Attendant's residence for any extended period of time prior to the adoption and cannot be the natural child of the Flight Attendant nor the natural child of the Flight Attendant's spouse, if applicable. The Flight Attendant's seniority shall continue to accrue, except for pay purposes, while on an adoption leave of absence. (I) Paternity Leave. Flight Attendants will be allowed Paternity --------------- Personal Time Off of one (1) month's duration. (J) Hardship Leave. In hardship situations a Flight Attendant will -------------- be permitted to take a leave of absence pending the award of a transfer. Once awarded, the leave of absence will be terminated and the Flight Attendant will be permitted to proceed directly to the new Domicile for reprocessing and duty assignment. This procedure will apply only in hardship situations and shall be contingent on the following: ARTICLE 15 / Page 3 (1) The initial leave and any extensions thereto will be contingent on operational requirements. (2) The transfer request shall include an accurate telephone contact and address for notification of transfer and must be clearly marked, "HARDSHIP - WILL TERMINATE LEAVE ON TRANSFER." (3) The Flight Attendant's supervisor and the Union shall determine the Flight Attendant's eligibility for hardship transfer. (K) Requirements Upon Return from Leaves of Absence. Flight ------------------------------------------------ Attendants returning from leaves of absence under this Article 15 must meet the Company standards required to be met prior to the leave. (L) Copies of PTO/Leave Awards to be Furnished to Union. TWA shall --------------------------------------------------- provide to the IAM one (1) copy of PTO/Leave Awards, to be provided whenever such activity occurs. (M) Submission of Bid Preferences. A Flight Attendant on any leave ----------------------------- of absence under this agreement, shall be allowed to submit his/her bid preferences before return to active service in the month preceding his/her return. The Flight Attendant shall be required to notify the Company no less than fifteen (15) days prior to the bid month. ARTICLE 15 / Page 4 ARTICLE 16 GRIEVANCE PROCEDURE (A) Representation In the processing of disputes or grievances that may arise under this Agreement the parties will be represented as follows: (1) Union (a) The Union will be represented by full-time representatives as in (B) below. (b) In addition the Union will be represented by other properly designated representatives at each Domicile. (c) The Union will be further represented by those representatives designated by IAM District Lodge 142 President and Directing General Chairman for dealing with the general officials of the Company. (d) When the Union provides at least two weeks notice, up to fifty (50) Flight Attendants may be removed at any one time from active duty for Union business at Union expense; provided, however, that with respect to each domicile and status, the number of Flight Attendants so removed shall not exceed twenty percent (20%) of the total number of Flight Attendants holding reserve schedules for such domicile and status. In the event that there are less than five (5) Flight Attendants holding reserve schedules within a domicile and status, at least one (1) Flight Attendant may be removed from active duty for Union business. The notice shall include the name(s) of the individual(s) who are to be removed, and specify the inclusive date(s) on which such removal(s) is/are to be effective. In cases where two weeks' notice is not possible, the Company will permit additional Flight Attendants to be removed from active duty for Union business, operational requirements permitting. (e) Should the Union desire that more than fifty (50) Flight Attendants be removed from active duty for Union business at Union expense, the Union shall notify the Company of the name(s) of the individual(s) who are to be removed, and specify the inclusive date(s) on which such removal(s) is/are to be effective. Such notice shall be received by the Company not later than thirty-five (35) days prior to the first day of the bid month in which the additional Flight Attendants are to be removed from active duty. If operational requirements permit, the Company may waive the thirty-five (35) day notice for any removal(s). ARTICLE 16 / Page 1 (2) Company (a) The Company will be represented at each domicile by the General Manager or his/her properly designated representative, who will be empowered to settle local grievances or disputes to the extent and in the manner as hereinafter provided. (b) The Company will be further represented on a system- wide basis for dealing with the IAM District Lodge 142 President and Directing General Chairman or his or her designated representative(s). (3) Policy. In order to facilitate the conduct of Union- Management business in an orderly and businesslike manner, it is agreed: (a) The Company will provide the full-time representative(s) at the domiciles specified in (B)(2) below with space for a single office with an intra- base telephone in the In-Flight Services area no later than thirty (30) work days following the signing of this Agreement. (b) All representatives will be allowed free access and availability to all work areas within their respective areas of representation in order to conduct their business in a proper, efficient and expedient manner. In so doing, they will contact the appropriate Departmental Manager or his/her designee. (c) The Company and the Union will, at all times, keep each other advised, through written notice, of any changes in its authorized representatives. The Company will, in writing, advise the IAM of the names of the Manager designees who will function as Step I hearing officers. In this connection the Company further understands that such Manager designee shall not be changed unless the individual functioning as the named designee ceases to occupy such position in the In- Flight Services organization. In such instance the Company will then designate another Manager designee within the time period prescribed herein. ARTICLE 16 / Page 2 (d) The President and Directing General Chairman of District Lodge 142 and/or his/her designated representatives shall be permitted at any time to enter the facilities of the Company for the purpose of representing employees covered by this Agreement, after notifying the Company official in charge. (e) The Company and the Union will make every effort to keep to a minimum the time spent in disposing of grievances, disputes and complaints. (B) Full-time Representatives (1) Full-time representative(s) will be empowered to settle all local grievance(s) or disputes not involving changes in policy or the intent or purposes of the Agreement. (2) There shall be seven (7) full-time representatives to be assigned as the President and Directing General Chairman of IAM District Lodge 142 determines. (3) Full-time representatives shall be considered to be on special assignment under this Agreement. They shall be compensated by the Company at the rate of 2:50 hours per day to a maximum of 85 hours per month for their respective classifications. Such representative(s) will also receive 2:50 hours per day while they are on vacation, sick leave, industrial injury/illness, family illness and jury duty. (4) Full-time representatives will continue to accrue company, job, pay and vacation seniority. Accordingly, as such, these representatives will continue to accrue the monthly sick leave allowance, referred to in Article 8, as appropriate, vacation days in Article 9(A) and be entitled to all other benefits, consistent with their respective classifications, which active Flight Attendants under the Agreement are entitled to receive. These benefits include but shall not be limited to the following: Pass and reduced rate privileges, insurance and retirement benefits. (5) Notwithstanding the provisions of Article 12, full-time representatives shall not be subject to furlough or displacement while serving in such capacity at an active domicile. If the Company, pursuant to the provisions of the Agreement, closes a domicile, the full-time representative who may be assigned to such domicile would then become subject to the provisions of Article 12. ARTICLE 16 / Page 3 (C) Discipline and Discharge (1) Investigation (a) In no event will a Flight Attendant be disciplined or discharged from the Company without a thorough, impartial and expeditious investigation of the alleged cause. Prior to such investigation, the Company will provide the Flight Attendant and the full-time Union representative with a written notice advising them of such investigation. This written notice shall include the subject matter or precise nature giving rise to such investigation. In addition, the Company will provide the full-time Union representative with any and all all documents it intends to use as part of the Article 16 investigatory meeting prior to such meeting. Such documents may be redacted. (b) In meetings for the purpose of investigation of any matter which may lead to or result in the application of discipline or discharge, the Company will advise the Flight Attendant, in writing, prior to such meeting that he/she is entitled to a Union representative. Such Union representative will be present if the Flight Attendant so desires. (c) At the conclusion of such investigation, the Company will notify the Flight Attendant and full-time representative, in writing, of any discipline or discharge action intended by the Company. Such notice to the Flight Attendant shall be sent, in writing by certified mail, return receipt requested, and will contain the precise charge or charges. This notice may be hand delivered by the Company to the Union if the signature of the full-time representative is secured at the time of delivery. Alternate methods of notification to the Union may be utilized provided proof of delivery is available. In the event there is no intended discipline or discharge, the Flight Attendant and the Union Representative will be so notified. (2) Request for Step I Hearing. No Flight Attendant shall be disciplined or discharged without a hearing, provided that within ten (10) work days after the Flight Attendant receives the notification in writing of the intended discipline or discharge as stipulated above, the Flight Attendant or a Union representative makes written request for a hearing to the domicile General Manager. ARTICLE 16 / Page 4 (3) Failure to Request Step I Hearing If the Flight Attendant or the full-time Union representative fails to request a hearing within the prescribed time limits, the Company may thereafter effect discipline or discharge and shall notify the Flight Attendant by certified mail, return receipt requested, of such action. In such case the discipline or discharge shall be final. If the Company fails to provide a Step I hearing as requested within the ten (10) day time frame, no discipline or discharge shall be implemented. (4) Step I Hearing (a) When a hearing, as provided in (2) above, is requested, such hearing shall be held by the General Manager - In-Flight Services or his/her manager designee within ten (10) work days after the Flight Attendant or Union representative requests such hearing. (b) Not later than the day prior to such hearing, the Company shall furnish the Union representative with a copy of all grievance related materials which the Company plans to introduce at the hearing. The Company may not present any grievance related materials at the hearing that were not furnished to the Union representative no later than 3:00 PM the prior business day. (c) Postponement. Upon written request, either party ------------ shall be granted a postponement of hearing not in excess of ten (10) work days in which to prepare and secure the presence of witnesses. Upon written request from the Flight Attendant or the Union, the Company will make available at such hearing consistent with operational requirements, witnesses who are employed by it. Notwithstanding the provisions of (7) below, a Flight Attendant requesting postponement of the initial hearing as provided in this paragraph may be removed from active flight duty and from the payroll for the duration of such postponement. However, in the event the grievance is sustained at the initial or any subsequent hearing, all elements of pay shall be restored as provided in Article 17(N). In the event the Company and the Union shall mutually agree to postpone a Step I hearing, no removal from active flight duty or payroll shall occur. Nothing in Article 16 shall require that the grievant be present at the Step I hearing. (5) Step I Decision A notification to the employee and the full-time representative of the decision of such hearing is to be mailed and postmarked no later than ARTICLE 16 / Page 5 ten (10) work days after the close of the hearing. A copy of the decision will be sent by certified mail, return receipt requested to the employee. Alternate methods of notification may be utilized provided proof of delivery is available. Such proof of delivery must include the Flight Attendant's signature. A copy of the decision will be sent to the Union and the designated IAM District Lodge 142 representative via facsimile transmission (with acknowledgement of receipt by the Union returned via facsimile transmission) or via hand-delivery with written acknowledgement of receipt or by alternate method that provides proof of delivery. (6) If the Company does not adhere to the time limitations set forth in (C)(4)(a) and (5) above, the contemplated discharge/discipline will not be implemented. (7) No Pay Loss Prior to Written Step I Decision (a) Except as otherwise provided in (d), no Flight Attendant shall be removed from active flight duty and the payroll until after the full-time Union representative receives and signs for the written decision. (b) No discharge or discipline shall be effected during the time when the Flight Attendant involved is on reserve spread, vacation, legal rest or flight assignment. (c) The Company shall make every reasonable effort to contact the employee to inform him/her of removal from flight status, if applicable. (d) In cases involving violence, destruction of Company property, use of alcohol or drugs, and theft, the Flight Attendant may be removed from active flight duty and from the payroll at any time prior to the Step I decision. Such time will be used to offset any discipline assessed as a result of a Step I decision. (8) General (a) Discipline and discharge may be assessed only for just cause, after consideration is given to the gravity of the offense, seniority and the work record of the employee involved. (b) If, as a result of any hearing as provided in this Agreement, an employee is exonerated, such employee shall be reinstated without loss of seniority and shall be paid for such time lost in an amount which the employee would have ordinarily earned had she/he been continued in service ARTICLE 16 / Page 6 during such period. In the administration of this provision it is agreed that a Flight Attendant will receive all elements of back pay and benefits as further calculated and identified in Article 17(N). Further, if as a result of any hearing as provided herein an employee is exonerated, all personnel records shall be cleared of the charge, including IER. (D) Other Grievances Any Flight Attendant or group of Flight Attendants covered by this Agreement who have a grievance concerning any action of the Company affecting them except matters involving discipline or dismissal shall have such grievance considered in accordance with the following procedure. (1) Pre-Grievance Any employee and/or Union Representative having a grievance not involving discipline or discharge shall make every reasonable effort to discuss the grievance with the Manager - Flight Attendants or his/her designated representative prior to filing such grievance. In the event the written pregrieve has not been answered within fifteen (15) work days, following receipt of the pre-grievance by the Company, the Union may be proceed to Step I. (2) Step I (a) If the employee or the Union representative is unable to secure satisfactory adjustment in the pre- grievance, the Union representative will, if in his/her opinion the grievance is justified, present the written grievance to the Domicile General Manager - In-Flight Services. (b) A hearing, conducted by the General Manager - In- Flight Services or his/her manager designee shall be held not later than ten (10) work days after the presentation of the written grievance. (c) The Union Representative may file and sign grievances on behalf of the employee or groups of employees. (d) A decision, in writing, by the General Manager - In- Flight Services or his/her manager designee shall be rendered not later than ten (10) work days after the close of such hearing. A copy of the decision will be sent by certified mail, return receipt requested to the employee. Alternative methods of notification may be utilized provided proof of delivery is available. Such proof of delivery must include the Flight Attendant's signature. A copy of the decision will be sent to the Domicile Chairperson and designated IAM District ARTICLE 16 / Page 7 Lodge 142 representative via facsimile transmission (with acknowledgement of receipt returned by the Union to the Company via facsimile transmission or by hand- delivery with written acknowledgement of receipt or by alternate method which provides proof of delivery. (E) Appeals (1) Step II (a) If the decision in Step I under (C)(5) or (D)(2)(d) is unsatisfactory, the Domicile Chairperson may refer the matter to the District General Chairperson who may appeal the matter to the TWA Labor Relations Department, One City Centre, 18th Floor, 515 N. Sixth Street, St. Louis, MO 63101. The notice of appeal must be made in writing and sent by facsimile transmission (with acknowledgement of receipt returned by the Company via facsimile transmission) or certified mail, return receipt requested, or an alternative method that provides proof of delivery within twenty (20) work days after receipt of the Step I decision. In the event the notice is sent via facsimile transmission, the original notice shall be sent by U.S. first class regular mail to the TWA Labor Relations Department. (b) Within thirty (30) work days after the Step II appeal is received by the Company, an official of the Labor Relations Department and IAM District 142 General Chairperson or his/her designee will meet and endeavor to reach a settlement of the issues involved in the matter appealed. (c) If the issues are resolved to the satisfaction of the officials at the hearing, the parties shall, prior to adjournment of the meeting, issue a joint written statement setting forth the resolution of the issue(s). (d) If the matter appealed is not resolved, the official of Labor Relations Department who heard the appeal shall, within five (5) work days following adjournment of the meeting, issue a written decision setting forth the Company's position on the issue(s). (e) Flight Attendant discharge grievances shall automatically proceed to Step II without the request or requirement of an appeal. (2) System Board of Adjustment. If the Step II decision is unsatisfactory, the IAM District 142 General Chairperson or his/her designee may appeal the matter to the System Board of Adjustment as provided for ARTICLE 16 / Page 8 in Article 17, provided such appeal is made within thirty (30) work days after the date of receipt by the Union of the Step II decision. There shall be a 5-year statute of limitations within which time to have the matter heard before the System Board of Adjustment, except where waived by mutual agreement of the parties. The 5-year limitation shall commence upon receipt of the Step II decision. (F) System/General Grievance. (1) Grievances relating to corporate or In-Flight Services departmental policies or interpretations of the Agreement having applicability beyond a single domicile, which cannot be settled by the Domicile General Manager and the Domicile Chairperson, shall be submitted, in writing, by the President-Directing General Chairperson or his/her designee to the Company's Vice-President-Labor Relations. - (2) No later than ten (10) work days following the receipt of the grievance the issue shall be discussed by the Vice President-Labor Relations or his/her designee and the President-Directing General Chairperson or his/her designee. (3) If a satisfactory settlement is not reached during the discussion, the Vice President - Labor Relations or his/her designee shall issue to the offices of the IAM District 142 a written decision setting forth its position on the issue(s) no later than ten (10) work days after the conclusion of the discussion. (4) The Union may then proceed directly to the System Board of Adjustment three (3) member Board. (5) The Company and the Union shall select a neutral referee in accordance with Article 17. (G) General Procedures (1) Time Limits for Grievance Filing All grievances except those involving discharge and discipline must be filed promptly after the cause giving rise to the grievance is evident and no grievance will be valid if not filed within thirty (30) work days of the date the employee knew or could reasonably be expected to have known of the grievance. (2) Group/"et al" Grievances When the policy or action complained of in a grievance similarly affects more than one grievant, the Union may process the grievance in the name of an individual employee on behalf of all employees affected by the Company policy or action. Any settlement or decision ARTICLE 16 / Page 9 shall be applicable to all employees so affected by the policy or action complained/grieved of, provided that such employees file their claim with the Company within forty- five (45) work days of the date of the decision. (3) Probationary employees Nothing in this Agreement shall extend the right of investigation and hearing to an employee who, during the probationary period, is disciplined or discharged for cause, except that such employee will be notified at the meeting of the reasons therefor. (4) Untimely Grievance Appeals If any decision rendered by the Company under the provisions of this Article is not appealed within the time limits prescribed herein for such appeals, the decision of the Company shall become final and binding. Time limits may be extended by mutual agreement. (5) Ground Transportation Witnesses and representatives who are employees of the Company shall receive positive free transportation over the lines of the Company from the point of assignment or residence to the point of which they must appear as witnesses and return, to the extent permitted by law. (6) Stenographic Report When it is mutually agreed that a stenographic report is to be taken of the investigation and hearing in whole or in part, the cost will be borne equally by both parties to the dispute. In the event it is not mutually agreed that a stenographic report of the proceedings shall be taken, any written record available taken of such investigation and hearing made by either of the parties to the dispute shall be furnished to the other party to the dispute upon request, provided that the cost of such written record so requested be borne equally by both parties to the dispute. (7) Work Day In the time limits outlined herein "work" day shall be defined as exclusive of Saturdays, Sundays and holidays. ARTICLE 16 / Page 10 (8) Participation It is understood that either or both the designated IAM District 142 representative and the Vice President Labor Relations or his/her authorized designee may intervene and participate in the handling of a grievance or dispute at any level of the grievance procedure. (9) Grievance Settlement If at any point in the grievance procedure prior to the rendering of the Step I decision, the issue in question is resolved to the mutual satisfaction of the parties, such resolution shall be committed to writing on a form provided by the Union. The form will be completed so as to include the statement of grievance, date of settlement, name of grievant(s), employee payroll number, employee domicile, IAM grievance case number and a concise statement indicating the terms of settlement. Should the terms of settlement provide for monetary payment, the grievant(s) shall receive such payment by means of a local office draft, no later than seventy-two (72) hours after the settlement is concluded. The form shall be signed by the General Manager or Manager designee and the full-time Union representative. (10) Grievance Withdrawal The Union's decision to withdraw grievances, not to process or appeal a grievance to the next step shall not in any way prejudice its position on the issues involved or serve as precedent in later grievances. (11) Streamlining Grievance/Arbitration Procedures TWA and the IAM hereby jointly recognize the mutual benefits of timely, expeditious and economical resolution of Flight Attendant and the IAM grievances arising under this Agreement. The parties therefore agree to continue discussions and, where agreed, to institute new and amended grievance and arbitration procedures, on either a trial or permanent basis, in order to facilitate these objectives. TWA agrees that when monetary compensation to Flight Attendant(s) is required by either voluntary settlement or System Board Award, it shall, within thirty (30) days of such settlement or Award, pay such required compensation to the affected Flight Attendant(s) and provide notice of such payment together with the computation to the IAM. ARTICLE 16 / Page 11 (H) Non-Disciplinary Discussions. The Company shall have the right to open non-disciplinary discussions with a Flight Attendant relating to their employment responsibilities. The Flight Attendant shall be entitled to have a Union representative attend any such discussion. Prior to such discussion, The Company will advise the Flight Attendant and the IAM Union Representative of the matter or matters to be discussed. The discussion shall take place during regular business hours. Any Company notation and related documents concerning the discussion shall be filed in the Flight Attendant's personnel file in accordance with Article 19(D). For the purpose of this paragraph non-disciplinary discussion and notations regarding such discussion(s) shall not be subject to the grievance procedures contained in this Article 16. ARTICLE 16 / Page 12 ARTICLE 17 SYSTEM BOARDS OF ADJUSTMENT (A) Establishment of System Board of Adjustment. In compliance with ------------------------------------------- Section 204, Title II, of the Railway Labor Act, as amended, there is hereby established System Boards of Adjustment for the purpose of adjusting and deciding disputes which may arise under the terms of the Flight Attendants' Agreement and which are properly submitted to it after exhausting the procedures for settling disputes as set forth in Article 16. (B) Members. The System Board of Adjustment shall consist of three ------- (3) members; one (1) appointed by the Company, one (1) appointed by the Union and one (1) selected by the parties from a standing panel of eight (8) referees. Each of the parties shall name four (4) individuals who shall serve on this panel. (1) Either party may cause the services of a Referee on the eight (8) member standing panel to be terminated at anytime, (except as to cases already scheduled for hearing) upon thirty (30) days written notice to the other party and to the Referee whose services are being terminated. Replacement members shall be provided for as in (2) below. Each party is limited to two (2) such replacements in any calendar year. (2) In the event a vacancy or vacancies on the eight (8) member panel of Referee exists, the party who originally appointed the referee to the panel must thereafter appoint a new referee to the panel. (3) The parties may agree to select a Referee who is not a member of the eight (8) member panel to hear a case with the Company and the Union Board members and such panel, will, for such case, constitute the System Board of Adjustment. Should the Company and the Union be unable to agree upon the selection of such Referee, they may make joint request to the National Mediation Board to name an "Ad Hoc" Arbitrator. (4) The Company and the Union member of the Board shall serve until their successor is duly appointed. (5) Secretary to the Board. ----------------------- The Office of "Secretary to the Board" shall alternate January 1 of each year between the Company member of the Board and the Union member of the Board with the Union member serving on even numbered years and the Company member serving on odd numbered years. The responsibilities of the Secretary shall include, but are not limited to, setting the Arbitration Docket, scheduling of hearing dates, contract with neutral member(s), and all correspondence relating to the ARTICLE 17 / Page 1 administrative matters of the System Board of Adjustment. The date of hearing by the System Board of Adjustment will be set by the Secretary at a time mutually agreeable to the parties and subject to the availability of the Arbitrator selected to serve as the neutral referee. (C) Board Jurisdiction. The Board shall have jurisdiction over ------------------ disputes between any employee covered by this Agreement and the Company growing out of grievances, interpretation or application of any of the terms of this Agreement. The jurisdiction of the Board shall not extend to propose changes in hours of employment, basic rates of compensation, or working conditions covered by this Agreement or any amendment. Unless the Company and the Union agree upon a combination of cases to be presented to a Referee, each case presented to the Board shall be treated as a separate case; except those grievances involving more than one (1) employee or incident concerning an alleged violation with similar facts and circumstances which shall be treated as one case. (D) Board to Consider Dispute. The Board shall consider any dispute ------------------------- properly submitted to it by the President/General Chairman of the Union or his/her authorized representative, or by the chief operating official of the Company or her/his authorized representative, when such dispute has not been previously settled in accordance with the terms provided for in this Agreement, provided that notice of the dispute is filed with the Company and the Union members of the Board, with copy to the Company or Union, as may be appropriate, within forty-five (45) work days after the decision in the last step of the grievance procedure. The date of notice shall determine the order for considering cases, unless the parties mutually agree otherwise. (E) Neutral Referee to Serve as Chairman. The neutral member ------------------------------------ (Referee) shall preside at the meetings and hearings of the Board and shall be designated as Chairman of the System Board of Adjustment. It shall be the responsibility of the Chairman to guide the parties in the presentation of testimony, exhibits, and arguments at hearing to the end that a fair, prompt, and orderly hearing of the dispute is afforded. (F) Location. The Board shall meet at such location or locations -------- where the parties may agree, generally to be the location(s) where the grievance arose or the location most convenient to the majority of the individuals necessary to the proceedings. If the parties cannot agree to a location, then the Secretary to the Board shall promptly request in writing with notice to the parties that the Chairperson, in consultation with the Company's and Union's designees to the Board, determine the location or locations where the Board will convene. ARTICLE 17 / Page 2 (G) Notice of Dispute. The notice of disputes referred to the Board ----------------- shall be addressed in writing to the Company member and the Union member jointly and shall include a statement of: 1) Question or questions at issue 2) Statement of facts 3) Position of appealing party 4) Position of the other party A copy of the notice of dispute shall be served upon the other party. (H) Selection of Referee. Upon filing the notice of dispute, the -------------------- Company and the Union Board members shall within five (5) work days, select a Referee to sit with the Board to settle the dispute and the Secretary of the Board shall advise the appealing party and other party of the name and address of the Referee. If the Board members are unable to agree upon a Neutral Referee within five (5) work days, a joint request will be directed to the Chairman of the National Mediation Board for the appointment of a Neutral Referee. A copy of the notice of dispute shall be forwarded by the Secretary of the Board to the Neutral Referee who has been appointed or selected to serve in this manner. All subsequent documents filed with the Board shall be addressed to all three members, with copy to the other party or parties. (I) Selection of Hearing Date. The Neutral Referee shall set a date ------------------------- for hearing scheduled within thirty (30) days after her/his appointment. If the Neutral Referee is a member of the standing panel and cannot serve during this thirty (30) day period, the parties may agree to another date or to another member of the standing panel who is available during this same period or the parties shall jointly petition the Chairman of the National Mediation Board to assign a Neutral Referee. (J) Waiver of Hearing. If neither party or the Chairman requests a ----------------- hearing, such hearing shall be waived. If either party desires a hearing to present evidence or oral argument to the Board, or if the Referee desires that evidence or arguments be presented by either party, request for hearing shall be made to the Board and served upon the parties within fifteen (15) days after the appointment of the Neutral Referee. If such request is served, the hearing shall be held within thirty (30) days of the date the request is served at a time mutually satisfactory to the Chairman and the Company and Union members of the Board. (K) Decision. -------- (1) Following the hearing, the Board shall convene in Executive Session, unless the parties mutually agree otherwise. In no event shall a decision be issued until after an Executive Session has been held if either the Company or the Union Board Member has requested such session. ARTICLE 17 / Page 3 (2) The three (3) member System Board shall consider the dispute pending before it, and a majority vote of the Board shall be final, binding, and conclusive upon the Company and the Union and anyone they may represent having an interest in the dispute. The decision by the three (3) member System Board shall be rendered within thirty (30) work days after the close of the hearing if written briefs are not filed by either party or within thirty (30) work days after the submission of written briefs. If written briefs are submitted by either party, the briefs shall be due within thirty (30) days following the close of the hearing, unless the time limits are extended by mutual consent of the parties. (3) In the event there is to be no hearing, the Chairman shall set a date which is agreeable to the Board members, for an Executive Session of the Board. The Board shall issue its decision at the conclusion of the Executive Session, if possible. However, a written award will be rendered to the parties not later than thirty (30) work days following the Executive Session. (L) Extension of Time Limits. The time limits expressed in this ------------------------ Article may be extended by mutual agreement of the parties to this Agreement. (M) Representation; Witnesses. Employees covered by this Agreement ------------------------- may be represented at Board hearings by such person or persons as they may choose and designate, and the Company may be represented by such person or persons as it may choose to designate. Evidence may be presented either orally or in writing or both. The Board may, at the request of either the Union member or the Company member, call any witnesses who are employed by the Company and who may be deemed necessary to the dispute. (N) Back-Pay Calculation. In System Board cases involving -------------------- disciplinary suspension or discharge, any award of back pay will be as set forth below. Unless otherwise provided in the award, the Employee will be entitled to contributions to 401(k) and retirement plan, restoration of sick leave accrual and vacation, and payment for actual unreimbursed medical expenses that would have been covered by Company provided medical benefits had she/he not been held out of service. Unreimbursed medical expenses will include medical insurance premiums paid by the employee. For purposes of calculating the amount of back pay due, the Company shall be required to calculate the total number of flight hours flown by the Employee during the previous twelve (12) months of active flight service. The total number of flight hours shall be divided by twelve (12) to establish her/his monthly average flight hours. The monthly average flight hours shall then be multiplied by the rate(s) of pay then in effect for the period of time in question. For periods of less than a full month, the average monthly flight hours shall be divided by 30 to establish the daily flight hours. The daily flight hours shall then be multiplied by the rate(s) of pay then in effect to determine the pay due for any period of time of less than a full month. The Company shall be required to ARTICLE 17 / Page 4 reimburse the Employee for Language of Destination pay (LOD), if applicable, Service Manager Overide, if applicable, and operational duty pay based on the same twelve (12) month "look back" formula. The Company shall provide the Union with all records to substantiate proper payment to the Employee. (O) Stenographic Report. If the parties mutually agree, a ------------------- stenographic report will be made. The costs of such report shall be borne equally. (P) Filing of Transcripts/Records. The Chairman's copy of any ----------------------------- transcripts and/or all records of cases will be filed at the conclusion of each case in a place to be provided by the Company, and will be accessible to Board members and to the parties. (Q) Expenses of Board Members. Each of the parties will assume the ------------------------- compensation, travel expense, and other expenses of the Board member selected by it. The expenses and reasonable compensation of the Referee selected shall be borne equally. (R) Witness Expenses. Each of the parties will assume the ---------------- compensation, travel expense, and other expenses of the witnesses called or summoned by it. Witnesses who are employees of the Company shall receive positive free transportation over the lines of the Company from the point of assignment or residence to the point at which they must appear as witnesses and return, to the extent permitted by law. (S) Additional Expenses; Board Member Travel. The Company and the ---------------------------------------- Union members, acting jointly, shall have the authority to incur such other expenses as in their judgment may be deemed necessary for the proper conduct of business of the Board, and such expenses shall be borne one-half by each of the parties hereto. Board members who are employees of the Company shall be granted necessary leave of absence for the performance of their duties as Board members. Board members shall be furnished positive free transportation over the lines of the Company for the purpose of attending meetings of the Board, to the extent permitted by law. (T) Non-Reprisal. It is understood and agreed that each and every ------------ Board member shall be free to discharge her/his duty in an independent manner, without fear that her/his individual relations with the Company or with the Union may be affected in any manner by any action taken by her/him in her/his capacity as a Board member. (U) Non-Abridgement of Railway Labor Act. Nothing herein shall be ------------------------------------ construed to limit, restrict, or abridge the rights or privileges accorded either to the employees or to the Company, or to their duly accredited representatives, under the provisions of the Railway Labor Act, as amended. ARTICLE 17 / Page 5 ARTICLE 18 SCHEDULING OF FLIGHT ATTENDANTS (A) General It is the intent and purpose of this Article to provide for Flight Attendant participation in the development of Flight Attendant Scheduling Policies and Procedures that will promote the most efficient and economical operation of flights, the best possible pairing or grouping of flights into bid runs, the most equitable assignment of flying time to domicile, the most reasonable degree of stability of bids at each domicile, and the intent that Article 6 operate so as to effect favorable working conditions. Consistent with the above, the general concept of seniority will be given appropriate recognition. The assignment of time to domiciles and the pairing or grouping of runs to effect the purpose of Article 6 will not be done in such a manner as to effect a general deterioration of working conditions and domicile stability. The Company and the Flight Attendant representatives will consult with regard to the above as outlined herein, the Company retaining the right to determine the geographical location of domiciles, the assignment of flight time to domiciles, and the pairing or grouping of flights for purposes of bid runs. (B) System Scheduling (1) A Scheduling Committee composed of a minimum number of domestic and international representatives, as determined by the IAM, but not more than one representative, from each domicile, may be designated to consult with the Company concerning all Flight Attendant scheduling problems of the entire system not covered by the Scheduling Policies. In addition, the System Scheduling Committee shall consult with the Director - Crew Resources and Administration as to the allocation of commercial flying time to the various domiciles, the pairing or grouping of flights into bid runs, and the stabilization of bids at each domicile. The Average Line Value(s) will be made available to the Scheduling Committee at or before the monthly meeting of the Committee. The daily credit rates will be published in the monthly bid packages. The System Scheduling Committee may request re-pairing or regrouping of Flight Attendant assignments allocated to the domicile(s), and the Company may allow such re-pairing or re-grouping; provided, however, that such action by the Company will not alter the Company's rights as provided in (A) of this Article. (2) Whenever the Company intends to change the Away From Domicile Policy, it shall seek the recommendations of the President-Directing Chairman, IAM District Lodge 142 or his/her designees in this regard ARTICLE 18 / Page 1 and will give them full consideration prior to making any such change. If on such an occasion the President-Directing General Chairman of District Lodge 142 or such members thereof as the President designates, and will give full consideration to any recommendations of the Committee prior to making any such change. When any of the provisions of the Away From Domicile Policies or procedures are in conflict with any of the provisions of the Working Agreement, the Agreement shall govern. (3) The Company will notify the System Scheduling Committee whenever a change is planned in flight schedules which would result in an increase or decrease in the bid requirements at a domicile. Proposed flight schedules, trip pairings, and information concerning charter flights and the domicile(s) by which they will be protected will be furnished to the Committee on the earliest practicable date such information can be made available by the Company which will normally be no later than twenty (20) days prior to the beginning of the month or bid period covered in the schedules. (4) Flight Attendant members of the System Scheduling Committee shall be entitled to expenses as provided in Article 4(A)(1) and not more than three (3) such Flight Attendant members shall be entitled to reimbursement for flight credit and pay loss incurred while attending meetings convened by the Company for the purpose provided in (A) above. Reimbursement of such flight credit and pay loss shall be paid by the Company on a trips missed basis. (5) The number of Service Manager and Cabin Attendant bids required for each domicile shall be determined as follows: (a) Every month the Company will publish a single bid package for each Flight Attendant category and domicile. Individual published sequences shall not contain both domestic and international flight pairings unless otherwise provided herein. At domiciles where both Domestic and International flights are flown, a Flight Attendant shall indicate his/her choice of operations via his/her monthly bid sheet. (b) Domicile bid runs shall include all known commercial flight time assigned to that domicile which can be sequenced. The Company may publish lines of any value to a maximum of eighty-five (85:00) credit hours. Nothing in this paragraph shall require the Company to post bid sequences that yield less than sixty-five (65:00) credit hours. (6) In addition to the number of bids in each bid category at each domicile as provided in (5) above, additional bids in the Cabin Attendant and ARTICLE 18 / Page 2 Service Manager categories at each domicile shall be established which will be sufficient to perform all reserve duties and to assure that Flight Attendants holding a bid run as a result of the domicile bid preference sheet will fly in accordance with the established scheduling policies except in unusual circumstances. (C) Domicile Scheduling (1) General (a) A Domicile Scheduling Committee shall be established at each domicile to consult with the Regional General Manager - In-Flight Services concerning all problems of Flight Attendant scheduling that are of concern only to that domicile. (b) All changes or amendments to the Domestic Domicile Scheduling Policy as contained in this Article shall be mutually agreed to: however, the Vice President In- Flight Services may make temporary changes in such Scheduling Policy when such changes are required to continue efficient operation of flights. In such an event, the Vice President In-Flight Services shall, without delay, consult the General Chairpersons or their designee for the purpose of resolving a mutually approved amendment to cover the problems which required the temporary changes. For the purpose of this paragraph, the Domestic Domicile Scheduling Policy will be limited to those matters and procedures relating to orderly methods of scheduling Flight Attendant personnel. (c) In each category at each domicile bid runs at each domicile bid runs shall be posted and bid in accordance with this Article and shall not be constructed to exceed eighty-five (85:00) flight credit hours. For the purposes of this paragraph relief runs" shall be construed to be bid runs. (d) Concurrently with posting and bidding of bid runs, as provided in (c) above, Flight Attendant reserve schedules shall be posted and bid. A Flight attendant may bid and be assigned a bid run or a reserve schedule in his/her category. Flight Attendants who do not hold a bid run shall hold a reserve schedule. ARTICLE 18 / Page 3 (D) Domicile Scheduling Policy (1) Purpose - To establish a policy outlining the methods to be used to schedule Flight Attendants out of their respective Domiciles/Satellites. (2) General (a) Whenever a change of flight times, stops, layover points occurs on the domicile flight assignments, or if flights are added or deleted after the closing of bid preference period, the decision regarding posting of new preference sheets shall be made by the Regional General Manager, In-Flight Services of the respective Domicile after consulting with the local scheduling representative(s). Such decision is to be made on the basis of the extent of such changes and the time of the month. At the time the bid package is distributed to all Flight Attendants at the domicile it shall contain a cover letter, all commercial flights which can be sequenced, the number of relief runs as required and Flight Attendant reserve sequences. 1) The following information shall be included in the pairings: (a) Flight number (b) Equipment (c) Deparure Time (d) Crew Change Station (e) Scheduled Stops (f) Arrival Time (g) Layover Station and Time (h) Total Trip Hours (i) Total Scheduled Block-To-Block (j) Deadhead in a flight pairing (k) Total round-trip credit/pay (l) Pairing number 2) In construction of bid lines the following information shall be included, as appropriate in the bid lines or reserve schedules: (a) Originating flight number or in the case of deadhead, it will show deadhead and the first operating flight. (b) The number of required Flight Attendants per line. ARTICLE 18 / Page 4 (c) Total credit and total pay per flight and per line. (d) Bid line sequence number. (e) Reserve spreads/prescheduled duty free days. (f) Day and date of departure and return to domicile. (g) Type(s) of equipment. (h) Layover destination (International only). 3) The cover letter shall contain the following information: (a) Dates of Bid duration. (b) Domicile. (c) Times of reserve call-in periods and an example. (d) Closing time and date of submission of Flight Attendant option form as specified in (7)(f). (e) Sequence notification time and date. (3) Preparation of Bid Runs (a) The scheduling of Flight Attendants out of each Domicile or satellite shall be in accordance with seniority and the provisions of the Agreement. Since all situations cannot be covered, any question of interpretation should be brought to the attention of the Regional General Manager, In-Flight Services of the respective Domicile. If such interpretation is not satisfactory to the Flight Attendant involved, he/she shall nevertheless follow instructions received from the Regional General Manager, In-Flight Services of the respective Domicile without prejudice to the Flight Attendant's rights under Article 16 of the Agreement. (b) In each category at each Domicile, bid runs shall be posted and bid in accordance with this Article. The minimum number of relief runs anticipated shall be indicated in the bid package. Relief bids will be constructed after completion of initial balancing and shall be construed to be bid runs. (c) International pairings and domestic pairings published in the bid package will be sequenced separately. Relief runs and open time lines may contain both international and domestic pairings. ARTICLE 18 / Page 5 (d) All flights which cannot be included in a published sequence shall be listed separately at the back of the monthly bid package. (e) One Cabin Attendant reserve complement and one Service Manager reserve complement shall be established at each domicile in order to protect open flights on both operations. (f) Concurrently with posting and bidding of bid runs, as provided in (b) above, Cabin Attendant reserve spreads shall be posted and bid. These reserve run selections shall be posted in such a manner as to reflect the date of the projected reserve spread for each Cabin Attendant awarded a reserve run selection. A Cabin Attendant may bid and be assigned a bid run or reserve spread. Each Cabin Attendant who does not hold a bid run shall hold a reserve spread. Concurrently with posting and bidding of bid runs, as provided in (b) above, Service Manager reserve spreads shall be posted and bid. These reserve run selections shall be posted in such a manner as to reflect the date of the projected reserve spread for each Service Manager awarded a reserve run selection. A Service Manager may bid and be assigned a bid run or reserve spread. Each Service Manager who does not hold a bid run shall hold a reserve spread. (4) Flight Attendant Assignment and Bidding Every month the Company will publish a single bid package for each Flight Attendant category and domicile. Individual published sequences shall not contain both domestic and international flight pairings unless otherwise provided herein. Once having been awarded a bid to a location with both Domestic and International flying, a Flight Attendant shall indicate his/her choice of operations via his/her monthly bid sheet. At domiciles where both Domestic and International flights are flown, the Company may publish one bid package for the purposes of Flight Attendant bidding on either operation. Bid packages shall be distributed no later than the twelfth (12th) day of each month. Flight Attendants will be allowed a minimum of eight (8) days, information permitting, to express their preferences. Closing date of the bids as indicated on the cover letter of the bid package shall be no earlier than the twentieth (20th) of the month. The date and time of closing of bids as indicated on the cover letter ARTICLE 18 / Page 6 shall be final and binding in all instances. The System Scheduling meeting as specified in paragraph 18(B) above shall be conducted as early in the month as possible, but in no event later than the sixteenth (16th) day of the month. (a) Each Flight Attendant should indicate a minimum of six (6) choices on the preference sheet regardless of seniority. Such choices should include at least two (2) separate flight assignments. Reserve Flight Attendants desirous of being moved up to a pattern of open flights that can be developed into a line of time subsequent to the initial balance and prior to the 7th day of the month should indicate "open time" by placing the word "open" in the appropriate block on the bid preference sheet. [EXAMPLE IMAGE NOT DISPLAYED] (b) Each run selection shall be numbered and lettered. Run selections may be made singularly or in series. For series bidding, the run numbers must be side by side with a dash in the position column in between. Example: Series Bid: 999Z - A bid in ascending run order for all runs and available positions: 110-11 5Z - A bid in ascending run order for all inclusive runs and available positions: 140-137C - A bid in descending run order for all inclusive runs and positions for the first three (3) positions only. A bid of 999Z will not subject a Flight Attendant to being awarded any satellite sequence unless a Flight Attendant's bid preferences include at least one sequence for a specific satellite. If a domicile has more than one satellite in any given month a bid of 999Z will only subject a Flight Attendant to being awarded the satellite that he/she had indicated in his/her bid preferences. Position: "A" signifies a bid for the senior Cabin Attendant position, B signifies that either "A" or B is acceptable, "C" ARTICLE 18 / Page 7 signifies that either "A", "B" or "C" is acceptable, etc. "Z" in the position column always means a bid for all available positions. [EXAMPLE IMAGE NOT DISPLAYED] NOTE: The "A", "B" and "C" in no way relate to the position or duties Flight Attendants will assume on the airplane. (c) Each Flight Attendant shall indicate in the identified box on the bid preference sheet his/her preference(s): Line fifty (50): bow-wave/initial balance: initial down balance; back-to- back flying (waive and/or defer): and bow-wave payoff. A Flight Attendant must indicate with a "yes" or no A failure to so indicate shall result in a default to "no". Line fifty-one (51): flights for initial balance purposes. Such preferences may be identified by flight number(s). Line fifty-two (52): voluntary Annual Emergency Review (AER) preference. A Flight Attendant who fails to enter a date preference may be assigned to an AER in his/her prior, due or grace month on any date that he/she is legal. A Flight Attendant must indicate preferences only for those dates on which he/she wishes to attend. Each date must be followed ARTICLE 18 / Page 8 by the letter "Y" or "N". Y indicates that a Flight Attendant is willing to attend training on a Guaranteed Day Off (GDO). "N" indicates that a Flight Attendant is unwilling to attend training on a GDO. A date not followed by the letter "Y" or "N" will result in the Flight Attendant not being scheduled if that date is a GDO. [EXAMPLE IMAGE NOT DISPLAYED] A Flight Attendant may bid for the AER as follows: 1. With respect to the "prior" month: a. Bid for specific date(s): If requested date available- awarded. If unavailable - no assignment in the prior month. b. Bid for any date: If a date is available - assign any date. c. Decline assignment in the prior month. No assignment. d. Silent, i.e., no bid. Assign any date. 2. With respect to the "due/base" month: a. Bid for specific date(s): If requested date available -awarded. ARTICLE 18 / Page 9 If unavailable - assign any date. b. Silent, i.e., no bid. Assign any date 3. With respect to the "grace" month: a. Bid for specific date(s): If requested date available -awarded. If unavailable - assign any date. b. Silent, i.e., no bid: Assign any date NOTE: If a Flight Attendant's bid for an AER conflicts with a flight in the sequence which he/she has bid, the bid for the sequence will take precedence. In the event the Company changes a Flight Attendant's AER "due/base" month, the Company will notify the Flight Attendant in writing or in the JXCAF not later than the first week of the bid period preceding the Flight Attendant's new "prior" month. A Flight Attendant who bids for a relief run or a Flight Attendant who is subject to move-up to an open line of time may express her/his relief run preferences and balance preferences as outlined below by listing the appropriate letter code on line(s) fifty-three (53) through fifty-eight (58) of the bid sheet. To the extent possible preferences will be awarded in the order listed. Action Code Preference ----------- ---------- A Specific dates off B Weekends off C Charter Flights D Domestic Flights E Consecutive days off at any time F Long Flights G Short Flights I International Flights K-K Back-to-Back Flights L Layover M Limousine P Late departure - early arrival S Satellite T Turnaround Flights W Specific departure date Z Deadhead ARTICLE 18 / Page 10 (d) When two Cabin Attendants desire to fly together during a bid period, the senior of the two shall not submit sequence preferences. The senior Cabin Attendant must list on the bid sheet or by computer input the name and payroll number of the Cabin Attendant with whom he/she wishes to fly, and may indicate such additional preferences as specified in paragraph (c) above other than sequence preferences. The junior Cabin Attendant must list all the bids and must also write the name and payroll number of the Cabin Attendant with whom he/she wishes to fly. If the junior Cabin Attendant fails to write the name and payroll number of the senior Cabin Attendant, the senior Cabin Attendant shall be handled in accordance with paragraph (5)(d) below. NOTE: If a senior Cabin Attendant enters any bid preferences the request for partner preference is negated. (e) It will be the responsibility of each Flight Attendant to ensure that his/her bid preference is submitted by the time and date of the closing of bid preferences. Bid preferences may be submitted through computer input, the automated bid preference form and telegram or U.S. mail. Non receipt of a bid preference sheet will be handled in accordance with paragraph (5)(d) below. (f) Flight Attendants who are absent from their Domicile by reason of vacation, illness, personal time off, leaves of absence or irregular flight operations during the period preferences are posted for bid shall be responsible for having their preferences submitted. Valid excuses will not be limited to the above. Under unusual circumstances permission may be obtained from the Regional General Manager - In-Flight Services to bid by telegram. Bid preferences sent by telegram or U.S. Mail must be received by the Regional General Manager prior to the time and date of the close of bid preferences. If the above bid preferences are submitted by either telegram or certified U.S. Mail the Company will not be responsible for the non-receipt of any bid preferences submitted in accordance with the above. (g) The Company will ensure that the bid packages for every domicile and category will be available at each domicile in order to provide information to Flight Attendants transferring per paragraphs (5)(e) and (f) below. ARTICLE 18 / Page 11 (5) Awarding Of Run Selections (a) Run selections shall be awarded in accordance with seniority and posted. Every effort shall be made to post the run selection awards within forty-eight (48) hours after the time and date of the closing of the bid preferences. Flight Attendants may call Crew Schedule during specified hours for bid results. Those specified hours will be indicated on the cover letter of the bid package. If the bid results are not posted forty- eight (48) hours prior to the beginning of the new bid period, Flight Attendants may call Crew Schedule other than the specified times indicated on the cover letter for results. At each domicile for each classification, copies of the alphabetical listing of monthly bid awards will be available for use by Flight Attendants. In addition, one (1) copy of the Bid Results as applicable to each domicile, in alphabetical, seniority and run order, shall be provided on a monthly basis by each domicile to a Union representative designated by the IAM. (b) Pursuant to Paragraph (4)(d) above, when awarding bids, the senior Cabin Attendant will be by-passed until the junior Cabin Attendant with whom he/she wishes to fly is reached. If there is only one position on a sequence, neither Cabin Attendant will be awarded it since they requested to fly together. (c) Flight Attendants who will be unavailable for the entire period will be by-passed in the awarding of bids. However, those Flight Attendants who are expected to be on personal illness, industrial injury or jury duty for thirty (30) days or more during a bid period may be awarded a bid run, seniority permitting. In the event a Flight Attendant returns to duty during the month, he/she will be given a sequence of open flights or a reserve schedule. (d) If a Flight Attendant fails to bid or submits insufficient bid, her/his assignment, after all other awards have been made, shall be in seniority order and in the following order: A run selection, relief run selection, a pattern of open flights or reserve. However, in any month in which it is necessary to re- bid due to schedule changes, a Flight Attendant who was absent from her/his Domicile during the period in which bid ARTICLE 18 / Page 12 preference sheets were posted for bid shall be awarded a bid in accordance with her/his original bid for the month. NOTE: If the run selection originally bid by such Flight Attendant has been eliminated because of the scheduled change, and a re-bid occurs as specified above she/he would be awarded a sequence based on her/his original bid preferences. (e) A Flight Attendant who is scheduled to transfer to another Domicile or who will resign during a bid period shall be entitled to bid at her/his present Domicile only if she/he will be available at her/his present Domicile for a minimum of fifteen (15) days during such bid period; otherwise, she/he will be assigned to a pattern of open flights or reserve. (f) If a Flight Attendant's request for transfer to a new Domicile is awarded prior to or during the period bid preference sheets are posted at her/his new Domicile and she/he will be available for a minimum of fifteen (15) days during the subsequent bid period, such Flight Attendant may file a bid by either hand- delivered telegram or certified U.S. mail, addressed to the Regional General Manager - In-Flight Services. Such bid must be received by the Regional General Manager - In-Flight Services prior to the closing of bids at that station. In the event such a bid is not received, the Flight Attendant will be assigned to a bid line, relief line or open time line, or may also be assigned to reserve, whichever is available. Under extenuating circumstances, such as short notice of transfer or emergencies, her/his supervisor may, on occasion, accept telephone bids from the transferee. (g) Bid sequences, other than reserve sequences, shall not be traded. (h) Bid sequences not covered by bid shall be assigned in order of seniority. (i) Flight assignments which form a complete relief run selection will normally be constructed by the first day of the bid period but in no case later than 0001 of the fourth (4th) day of such bid period. In no case will the relief run holder be considered a reserve during any part of the bid period. ARTICLE 18 / Page 13 (j) If, subsequent to the initial balancing, but prior to the 7th day of the month, there is open time that can be developed into additional Flight Attendant lines of time, such lines may be awarded in seniority order amongst the following: Insufficient bidders, transferees or Flight Attendants holding a reserve run selection who have indicated a preference for Open Time. (k) Subject to reserve availability, Flight Attendants who bid or are assigned a reserve run selection in any bid period they are scheduled for vacation, may have their reserve spread(s) attached to their vacation, upon request to the Flight Attendant category planner. (l) The Company shall provide four (4) copies of the Crew Activity Display (JXCAF) microfiches monthly to IAM. The Company shall provide to the IAM one (1) copy of each JXCAF microfiche for the period March 1986 through the effective date of this Agreement. (6) Open Time Information (a) The Company shall provide Open Time information, on both commercial and charter flights, through computer terminals on Company property. Such computer terminals and open time information shall be available to the Flight Attendants on a twenty four (24) hour basis. The following information will be included in the Open Time computer display: 1) pairing number; 2) flight number; 3) date of departure; 4) departure time; 5) departure station; 6) arrival date; 7) arrival time; and 8) total trip block, credit and pay. (7) Utilization (a) The Company shall have the prerogative of obtaining maximum utilization of each Flight Attendant's monthly available flight hours. (b) Initial Projection The published credit value of each Flight Attendants awarded sequence shall establish the Flight Attendants initial line projection for the bid period. A Flight Attendant ARTICLE 18 / Page 14 will be subject to initial balance if his/her projected credit for the bid period, including inbound credit, is less than (a) the credit guarantee or (b) the published credit value minus five credit hours. (c) Initial Balancing 1) The purpose of initial balancing is to correct any illegality as specified in Article 6 in a bid line which is a result of time carried over from the previous month or time flown in the previous month or to increase a projection which was lowered due to instances such as vacation, personal illness, industrial injury, family emergency, leaves of absence, PTO, or special assignment. However, a Flight Attendant will not be initially balanced solely by reason of low original projection. 2) In order to minimize the incidents of initial balancing, the Company will comply with the following procedures: a) The Company will not engage in automatic trading of flights. b) In the event the published monthly sequences are low, the Company will not unilaterally increase them. c) Inbound time which does not overlap with another trip shall not occasion initial balancing or automatic trip drop even though the Flight Attendant's inbound time when added to the scheduled projection exceeds eighty-five (85) flight credit hours. Flight Attendants at their option will not be down balanced if their monthly projection exceeds eighty-five (85) credit hours as a result of vacation, personal illness, industrial injury, family emergency, leaves of absence, PTO, training, Company required meeting or special assignment. In no event, however, may the full line Flight ARTICLE 18 / Page 15 Attendant exceed ninety-five (95) hours block-to-block or fifty-five (55) hours for the alternate line Flight Attendant. d) A Flight Attendant may indicate in the appropriate box on line fifty (50) of the monthly bid preference sheet his/her request to use excess credit (bow-wave) carried forward from the previous month (if he/she has a sufficient amount to increase the line projection to no less than his/her initial projection minus five (5) hours to avoid initial balancing. Such request will be granted in seniority order, reserve availability permitting. Use of excess credit to avoid initial balancing shall not result in make-up base pay. Failure to indicate this request on the bid sheet will result in initial balancing as otherwise specified in this Article. 3) Flight Attendants will have the ability to request an initial balance for the beginning, middle or end of month; however, in the event the Company is unable to grant the request, such balance shall be accomplished by assignment of any available trip(s), and such assignment will be made at the time such initial balances are normally made. The Company will not engage in automatic trading of flights. (d) After initial balancing, except when no other Flight Attendant is available, a Flight Attendant shall not be further balanced, subject to the provisions of Article 6(Z) and paragraph (f)1) below. (e) Reserve The Company may schedule a Flight Attendant holding a reserve schedule to a maximum of eighty-five (85) block hours per bid month. (f) Balancing and Limitations: The Company may schedule a full-line Flight Attendant holding a bid run to complete his/her last bid trip of the ARTICLE 18 / Page 16 month, if at the time of leaving his/her domicile, the scheduled flight time block-to-block for the trip to be flown prior to the end of the month will not, when added to his/her already accumulated block-to-block hours, total more than ninety-five (95) hours. A Flight Attendant shall receive pay and credit for the portion of the trip flown during that month. The balance of the pay and credit for the trip (including penalty) shall be paid and credited in the subsequent month. Flight Attendants exceeding the ninety-five (95) hour block-to-block limit through the use of the Enhanced Trip Option shall be covered by the provisions of Article 6(X). Provided that the trip is not scheduled to fly into the "no fly zone" of the subsequent month, the Company may schedule an alternate line Flight Attendant to complete his/her last bid trip of the month, if at the time of leaving his/her domicile, the scheduled flight time block-to- block for the portion of the trip flown prior to the end of the month will not, when added to his/her already accumulated block-to-block hours, total more than fifty-five (55) hours, provided that the trip is not scheduled to fly into the "no fly zone" of the subsequent month. If the trip is scheduled to operate during the "fly zone" of the subsequent month, a Flight Attendant shall receive pay and credit for the portion of the trip flown during the month that the trip originates. The balance of the pay and credit for the trip (including penalty) shall be paid and credited in the subsequent month. 1) a) Company Same Calendar Day Balance (When the Flight is not provided "Guaranteed Trip Protection" under Article 6(Z). In the event a Flight Attendant, subsequent to initial balancing, suffers a loss of credit due to cancellations, illegalities, transitions, schedule changes, non-routine operations, AER assignment, no shows, illegality due to drug testing or equipment substitution and the provisions of Article 6(Z) - Guaranteed Trip Protection - do not apply, the Flight Attendant will be subject to balance to restore the loss of time only (except as provided in paragraph e) below) on the same calendar days as originally scheduled prior to the loss of credit. ARTICLE 18 / Page 17 b) Flight Attendant Responsibility To Call In To Obtain Balance Trip. All Flight Attendants subject to "same calendar day" balance under the provision must contact Crew Scheduling as soon as such loss occurs, and if not balanced at that time, must contact Crew Schedule following the completion of FAA rest or, at his/her option, during the reserve call-in periods applicable to the calendar day(s) of the originally scheduled flight, until balanced. Such balance may consist of more than one (1) flight and such flight(s) need not be assigned simultaneously. c) No Further Balance If Flight Attendant Self Balances To Within Five (5) Hours Below Initial Line Projection. If not yet balanced by the Company, Flight Attendants may balance themselves as long as the balance flight(s) increase their projections to be not more than 5:00 below their initial line projection. The credit limitation for any Company balance in this event will be 5:00 over initial line projection. d) After Same Calendar Days No Balance If Above Credit Guarantee. In the event there is a loss of credit which does not result in a below-guarantee credit projection, and the Company does not "same calendar day" balance the Flight Attendant, the Flight Attendant will not be subject to balance. The Flight Attendant may at any time take trip(s) from open time to increase or replace the credit as long as the prevailing credit limitations are not exceeded. e) Flight Attendant 48-Hour Opportunity ARTICLE 18 / Page 18 To Correct Projection If Company Does Not Balance For Below-Guarantee Credit Projection During Same Calendar Days. In the event of a loss of flight time which results in a below guarantee credit projection, and the Company does not "same calendar day" balance the Flight Attendant, the Company, at any time after 48 hours has elapsed since the end of the last required reserve call-in period described in paragraph b) above, may balance such low projected Flight Attendant with a trip(s) to bring the projection to the guarantee; provided, however, that if there are less than 72 hours remaining in the bid month, the 48- hour provision shall not apply. A Flight Attendant who has a below guarantee credit projection and who is subject to balance due to the provisions of this paragraph must thereafter contact Crew Schedule during each reserve call-in period until the low projection is cured. f) Protection For Below-Guarantee Initial Credit Projection. In the event of a loss of flight time by a Flight Attendant who has a below-guarantee initial credit projection (64:59 or less), such Flight Attendant will not be subject to Company balance until the loss of flight time exceeds two (2) hours. g) Other Below-Guarantee Credit Loss; Company Opportunity For Immediate Balance; Flight Attendant Opportunity To Correct Projection. Notwithstanding the provisions of paragraph i) below, in the event a Flight Attendant suffers a loss of credit which results in a below-guarantee credit projection, such as a net loss of credit due to a period of illness being paid at the daily rate of 4:00, the Company may ARTICLE 18 / Page 19 balance the Flight Attendant at the time of the return-to-duty call by assigning a trip departing no earlier than twelve (12) hours after the return to duty call; provided, however, that the Flight Attendant may waive the twelve (12) hour restriction. If the Company balance is not accomplished at that time, the Flight Attendant will have 48 hours to bring the credit projection to guarantee before the Company may balance the Flight Attendant; provided, however, that if there are less than 72 hours remaining in the bid month, the 48-hour provision shall not apply. The Company may, as a result of such balance, increase the credit in the balanced Flight Attendant's line no more than five (5) hours above the initial line projection; in such event the Company shall endeavor to assign a balance trip having only such hours as is necessary to increase the Flight Attendant's line to the initial line projection, but in no event in excess of 85:00 credit hours. h) Flight Attendant Responsibility To Call In When Below Guarantee Credit Projection Not Corrected. A bid Flight Attendant who, after the expiration of the periods described in this paragraph (f), is still projected below credit guarantee must contact Crew Schedule during the reserve call-in periods until the low credit projection is corrected or unless a request for balance avoidance is granted by the Company. i) No Balance For Jury Duty. A Flight Attendant who suffers a loss of credit due to a period(s) of jury duty shall not be subject to balance. j) Other Below-Guarantee Losses And Balance. All other losses of credit resulting in a ARTICLE 18 / Page 20 below guarantee credit projection may subject the Flight Attendant to immediate balancing. k) Bow-wave Used to Avoid Progressive Balance: Notwithstanding the above, a Flight Attendant may request that his/her excess credit be used (if he/she has a sufficient amount to make up for the flight time loss) to avoid progressive balancing and has not utilized the 25-hour per month bow-wave limit. Such request shall be granted in seniority order and subject to operational requirements. Further, such request must be made immediately upon return to domicile or if at domicile at the time the under-projection occurs. If the Flight Attendant does not indicate this request, he/she shall be progressively balanced in accordance with the above paragraph. Use of excess credit to avoid balancing shall not result in make-up base pay. l) Request Balance: Notwithstanding the foregoing, nothing in this section (D)(7) precludes a Flight Attendant from requesting and being awarded a balance trip. m) Whenever a bid Flight Attendant is removed from flight assignment because of a Company-created error, the Flight Attendant will be paid no less than the scheduled value of the flight assignment and shall be subject to the provisions of Article 6(Z). 2) a) Balance Avoidance Flight Attendants who are subject to balance shall be provided an opportunity to avoid balancing. Requests to avoid balancing must be telephoned to Crew Schedule. The decisions of Crew Schedule to reduce the base guarantee ARTICLE 18 / Page 21 and/or the initial projection to avoid balancing, or to avoid same calendar day balance when the current projection is not more than five (5) hours below the initial projection, will depend on the forecast of availability of reserves and operational considerations. Crew Schedule's decision will be based on the circumstances at the time of the request. b) Avoidance of Balance When at or Above Credit Guarantee When a Flight Attendant suffers a loss of time or trades down where his/her credit is more than five (5) hours below his/her initial projection, the Flight Attendant may call Crew Schedule after the bid month has begun to request a reduction in his/her IP to the then current credit projection plus five (5) hours. Such request, if accepted, shall remove the Flight Attendant from the balance list. A Flight Attendant who suffers a loss of time or trades down below this reduced Initial Projection shall be subject to balance in accordance with the terms of this Article. c) Avoidance of Below Guarantee Balancing When a Flight Attendant suffers a loss of time where his/her credit is projected below the applicable credit guarantee, the Flight Attendant may call Crew Schedule after the bid month has begun to request a reduction in his/her credit guarantee to the then current projection. A reduction of the same amount will be made in the pay guarantee. 3) Automatic Trip Drop All credit hours accrued, as provided in this paragraph (f), in excess of eighty-five (85) hours shall be paid and credited in the following month for a full-line Flight Attendant or forty-five (45) hours for an alternate line Flight Attendant. Such ARTICLE 18 / Page 22 pay and credit carried forward may result in an over-projection of the Flight Attendant in the new month. When such over-projection is equivalent to or greater than the credited time of an entire trip (commencing and terminating within a month) in the Flight Attendant's projection in the current month, a flight shall be deleted from his/her bid run projection up to a maximum of 25:00 hours (if a full-line Flight Attendant) or a maximum of 12:30 hours (if an Alternate Line Flight Attendant). When a Flight Attendant is over-projected as specified above the Flight Attendant must select the flight assignment to be deleted from his/her current bid run projection, subject to reserve availability, as outlined in (7)(g) below. If the Flight Attendant does not make the selection, the Company will designate the trip or trips to be deleted. If such deletion reduces the projection below the Flight Attendant's base pay, exclusive of the credit brought forward, such reduction shall not result in make-up base pay. Notwithstanding the foregoing, a full-line Flight Attendant who has accrued credit hours in excess of eighty-five (85) hours or an alternate-line Flight Attendant who has accrued credit hours in excess of fifty-five (55) hours may exercise the option in paragraph (7)(g) below. 4) Trip Drop During Month If subsequent to the forty-eight (48) hour period as specified in (7)(g) below, a Flight Attendant accrues excess credit hours which would require a complete trip within a month to be dropped, the Flight Attendant must immediately upon return to domicile from the trip which caused the over-projection advise Crew Schedule of his/her preference of trip(s) to be dropped. If such deletion reduces the projection below the Flight Attendant's base pay, exclusive of the credit brought forward, such reduction shall not result in make-up base pay. 5) No Automatic Trip Drop During Month: If the Flight Attendant does not immediately upon return to domicile from the trip that caused the over projection advise the Company of the trip(s) to be deleted he/she will not be removed from a ARTICLE 18 / Page 23 trip(s) and will fly his/her flights as scheduled subject to paragraph (f) above. Any such credit in excess of eighty-five (85) hours will be carried forward into the following month or paid to the Flight Attendant as specified on the option form defined in paragraph (g) below. (g) Bow-wave Option As specified in the cover letter of the bid package, but in no case less than forty-eight (48) hours after bids have been awarded and posted, Flight Attendants may deposit in the locked box, or receptacle provided for that purpose, a form identifying his/her option. On such form the Flight Attendant may indicate: 1) Payment for all accrued excess credit, including excess credit as determined in Article 6(X), and corresponding bank deduction for credit accrued in the current bid period; or 2) Trip(s) up to twenty-five (25) hours for full- line Flight Attendants or twelve hours thirty minutes (12:30) for alternate line Flight Attendants which are to be dropped in the succeeding bid period by reason of over- projection as specified in (7)(f)4) above; or Failure to submit a form or failure to request payment for excess credit will automatically result in the application of the provisions of paragraph (7)(f)4) above. The Flight Attendant selection of the trip(s) to be deleted will be honored subject to reserve availability. If the Flight Attendant has not indicated the trip(s) to be deleted, the Company will make the designation. 3) Excess credit carried forward as bow-wave shall not be credited towards the Quarterly Minimum. Bow-wave used to drop trip(s) shall be credited towards the Quarterly Minimum. NOTE: A Flight Attendant's Bow-wave bank shall be capped at a maximum of 100 credit hours. Any credit in excess of 100 hours shall be paid pursuant to Paragraph (i) below. (h) In the event that a Flight Attendant accrues excess credit hours, the pay and credit for such hours shall not be offset ARTICLE 18 / Page 24 against the Flight Attendant's base pay or any other form of pay and credit, except as provided in paragraphs (4) and (5) above. (i) Notwithstanding the limitations contained in paragraph 4) above, when a Flight Attendant changes category during a month in which excess credit (Bow Wave) has been brought into such month, such excess credit will be counted toward the monthly limitation, but the excess pay shall be paid to such Flight Attendant at the appropriate earned rate. (j) Flight Attendants who are subject to balance and who have not requested and been awarded an open time flight may be assigned to cover open flights at their Domiciles or to cover open flights at their satellite stations within their respective categories in seniority order. Operational requirements permitting, requests for open time flights for purposes of trading and/or self balance shall be honored in accordance with the provisions of Article 6(X) [Enhanced Trip Option]. NOTE: In the event of an equipment substitution a Service Manager may be balanced in accordance with Article 6(W)(4)(b). In the event the substituted equipment does not utilize the Flight Service Manager, the Flight Service Manager will not be permitted to exercise his/her Flight Attendant seniority on the substituted equipment.) (k) Any flights which are not protected in accordance with paragraphs (c) and (j) above, shall be classified as open flights and will be covered in the following order; 1) Covering FSM Openings All flight time which cannot be covered by Flight Attendants holding a run selection shall be assigned to reserve Flight Attendants. One reserve complement will be established at each combined location in order to protect all open positions on both domestic and international operations. In the event a Service Manager position is available due to circumstances as outlined above, the working cabin crew will apply the concepts of consensus decision making to determine which crew member is best qualified and will fulfill the Service Manager responsibility. The individual so designated must be on a parallel pairing and must ARTICLE 18 / Page 25 fulfill the Service Manager responsibility for the entire pairing. The Cabin Attendant will be compensated for each flight assignment in which she/he is upgraded and will receive the applicable Service Manager rate of pay. 2) Inverse Seniority - Assign the most junior qualified Flight Attendant in the category. (l) After exhausting the order for covering open flights as outlined in paragraph (k) above, in order to ensure the availability of legal and qualified Flight Attendants, only when insufficient reserves are available or legal, the most junior qualified Cabin Attendant required for such protection may be placed on residence standby status. (8) Reserve (a) A Flight Attendant who is scheduled for vacation may bid and be awarded, seniority permitting, a reserve schedule. (b) All flight time which cannot be covered by Flight Attendants holding a run selection shall be assigned to reserve Flight Attendants in that category. One reserve complement for each category shall be established at each combined location in order to protect open flights on both Domestic and International operations. (c) Whenever flight openings are known in advance, a reserve shall be assigned as far in advance as practicable subject to the following procedures: A one-hour reserve assignment set-up period shall precede each call-in period. For the purpose of receiving assignments, call-in periods for reserves shall be between the hours of 2000 and 0100 and between the hours of 1000 and 1300. Only those known open flights departing not earlier than four (4) hours nor later than twenty (20) hours after the end of the call-in period shall be assigned to a reserve Flight Attendant. Example 1: During a call-in period commencing at 2000 on the 10th, a reserve may be assigned to a flight departing between 0500 and 2059 on the 11th. Example 2: During a call-in period commencing at 1000 on the 10th, a reserve may be assigned to a flight departing no ARTICLE 18 / Page 26 earlier than 1700 on the 10th nor later than 0859 on the 11th. (d) During the call-in period as mentioned in (c) above, the Company may assign a reasonable number of reserves to residence standby and airport standby to protect unanticipated open flights, Assignments to residence standby and airport standby shall not commence earlier than two (2) hours after the end of the respective call-in period except as provided for in (f) below. (e) Standby duty shall be defined as specified below: 1) Residence Standby A reserve Flight Attendant shall be considered to be on residence standby if she/he is informed that she/he is assigned to residence standby and that she/he must standby the telephone in order to be available for immediate flight duty. A reserve will not be assigned to a residence standby period for more than twenty-four (24) consecutive hours. The Company may release a reserve on residence standby for a period not in excess of two (2) hours, operational requirements permitting. Those reserve Flight Attendants assigned to residence standby must be available to report for flight duty within two (2) hours via surface transportation of being assigned to a flight. 2) Airport Standby Reserve Flight Attendants may be called to the airport without specific flight assignments on a standby basis. Flight Attendants assigned to airport standby will be considered on duty for the purposes of 6 (I) and 6(R) from the time they report until they are released from such duty or from the time they report for such duty until actual release time of the last flight of a trip assignment flown during that on-duty period. Airport standby duty shall not be scheduled for more than eight (8) consecutive hours and shall not commence prior to 0600 nor after 2200. When a reserve Flight Attendant reports for airport standby duty and is not given a flight assignment, she/he shall be released and shall not be assigned any other duty ARTICLE 18 / Page 27 with the Company earlier than the next calendar day. In no event may such release be less than ten (10) hours. The Flight Attendant shall be free from all duty with the Company until his/her next regularly scheduled call-in period. 3) Standby Rotation During any bid month a reserve Flight Attendant will not be assigned to residence standby and/or airport standby for more than three (3) occasions unless all other reserves in the domicile who are legal and available during such call-in period have been assigned a minimum of three (3) residence standby assignments and/or airport standby assignments. 4) Standby Penalties Should a reserve Flight Attendant serve more than four (4) airport standby assignments, during any one bid month, she/he shall receive standby penalty pay pursuant to Article 3(K) for each additional airport standby assignment and such amount shall not be offset against base pay. 5) Should a reserve Flight Attendant serve more than a total of five (5) airport standby assignments and/or residence standby assignments, during any one bid month, she/he shall receive standby penalty pay pursuant to Article 3(K) for each additional airport standby assignment or residence standby assignment and such amount shall not be offset against base pay. 6) For purposes of the two paragraphs immediately preceding, a single assignment of airport standby shall consist of any amount of time between one minute and 8 hours, not to exceed 8 consecutive hours. A Single assignment of residence standby shall consist of any amount of time between one minute and 24 consecutive hours, not to exceed twenty-four (24) consecutive hours. Further for purposes of paragraphs 4) and 5) above, a Flight Attendant shall not receive more than one (1) standby ARTICLE 18 / Page 28 penalty payment for each additional assignment so mentioned. (f) During the call-in periods as outlined in paragraph (c) above, the Company may also assign a reserve Flight Attendant to training, an AER or any other Company required assignment. Those Flight Attendants not assigned to flight assignments, airport standby, residence standby, training, AER or any other Company required assignment will be free from all duty with the Company, until his/her next call-in period. However, during an emergency situation, if Crew Schedule contacts a Flight Attendant for assignment to a specific flight, residence standby or airport standby, the Flight Attendant, if legal, must accept the assignment. (g) Reserves not on their reserve spread, vacation, FAA rest or on off duty status must contact Crew Schedule twice daily during the call-in periods, unless released by the reserve recording as specified in paragraph (j) of this Article. (h) A Reserve Flight Attendant who is unavailable during the call-in period due to FAA rest or flight assignment, may be assigned during the call-in period. Upon return to domicile and upon completion of FAA rest, such Flight Attendant must contact Crew Schedule to be advised of his/her status. (i) If subsequent to initial balancing but prior to the seventh day of the month, there is open time that can be developed into additional Flight Attendant lines of time, such line will be subject to the provisions of Paragraphs 18(D)(5)(i) and 18(D)(5)(j) and may be awarded to those reserve Flight Attendants who have indicated a preference for Open Time. The total number of open time lines available to reserves will be awarded in seniority order. (j) The Company will provide a recorded message for Reserve Flight Attendants. The recorded message will list by name and by groups or numbers those reserves that will be required to contact Crew Scheduling during the next call-in period. Such recording shall be updated no later than two (2) hours prior to the commencement time of each call-in period. All other reserves not so listed will be released until the next call-in period except as provided in (h) above. ARTICLE 18 / Page 29 (k) For scheduling purposes at the beginning of the month, a reserve Flight Attendant shall be assigned his/her relative position on the reserve list on a first-legal, first-out basis consistent with paragraph 8(c) above. If a Flight Attendant's assignment to a Domicile occurs subsequent to the first day of the bid period he/she shall be given, for scheduling purposes only, credit on a prorated basis as if he/she had been available at the commencement of the bid period. The Company reserves the right to deviate from first-legal, first-out scheduling subsequent to the first day of the bid period in order to equalize flight time and assignment to residence standby/airport standby status as defined in paragraph (e) above. (l) 1) The number of days of reserve spread is to be determined on a pro rata basis as follows: Duty Days Actual or Anticipated Reserve Spread (Including Spread) Days 1 to 2 0 3 to 4 1 5 to 7 2 8 to 10 3 11 to 12 4 13 to 14 5 15 to 17 6 18 to 19 7 20 to 21 8 22 to 23 9 24 to 25 10 26 to 28 11 29 to 31 12 2) If a Flight Attendant arrives at her/his Domicile (or satellite station if so assigned) after the scheduled commencement of her/his reserve spread, the Flight Attendant's reserve spread will be rescheduled to commence at 2400 that day. 3) Flight Attendants will not be scheduled for any duty during their spread by the company. Reserve Flight Attendants may add trip(s) by utilizing the ARTICLE 18 / Page 30 Enhanced Trip Option (ETO) or adding trips from open time during their spread. Such trips may not be added to the spread any earlier than 48 hours prior to the departure of the requested flight and must be totally within: a) a fixed scheduled spread (DOF); the report time for the added trip(s) must commence no earlier than the second day of the spread and the scheduled arrival must be no later than 2359 hours of the next to last day of the spread; b) a fixed spread (DOF) or a movable spread (DOM) either of which are in progress; the report time for the added trip(s) may commence on the first day of the spread and the scheduled arrival must be no later than 2359 hours of the next to last day of the spread. 4) Reserve Flight Attendants may mutually trade their spreads with other reserves, however, four (4) available days between spreads shall be maintained within the bid period. Reserve Flight Attendants may mutually trade two (2) six (6) day spreads, if such spreads are in their lines, for a twelve (12) day spread. Those twelve (12) consecutive day spreads, initially awarded, which are vacated as a result of Reserve Flight Attendants being moved up to relief lines or open time lines shall be included in the open time computer display for trading purposes. Reserves may trade into a twelve (12) day spread up to the maximum number of the original awards. 5) Assignment of reserve spread shall be made in accordance with preference bid in seniority order. A reserve spread so awarded shall be considered immovable with the exception of one (1) spread, identified on the monthly bid sheet, which shall not be moved more than forty-eight (48) hours except by mutual agreement or when necessary to accomplish training for the Cabin Attendant. ARTICLE 18 / Page 31 (9) Availability for Flight (a) At Domicile and Satellite 1) The Company will publish a sequence notification date and time in the monthly bid package for each domicile and category. All Flight Attendants holding bid and relief lines and Cabin Attendants holding reserve will be responsible for the scheduled activities in their respective lines as of that date and time. Those bid Flight Attendants who are subject to balancing shall, when legal, be available to domicile Crew Schedule until such balancing is completed. In the event a Flight Attendant will be illegal or unavailable for any bid flight in her/his sequence she/he shall bear the responsibility of advising her/his domicile Crew Schedule of such illegality or unavailability for flight duty at the time she/he becomes aware of the illegality or unavailability. Similarly the Company will make every effort to contact the Flight Attendant to notify him/her of an illegality for a trip and/or balance which is the result of an illegality or a flight time loss. 2) A Flight Attendant who is off duty for personal illness, industrial injury, family emergency or jury duty, must contact Crew Schedule and return to duty no later than two and one-half (2:30) hours prior to the commencement of the call-in period in which her/his domicile flight would be assigned. A Flight Attendant, who is off duty for personal illness, industrial injury family emergency or jury duty; and who holds a satellite flight, must contact Crew Schedule and return to duty no later than two and one-half (2:30) hours prior to the commencement of the call-in period in which a reserve Flight Attendant is assigned the positioning flight at the commencement of the pairing. A Flight Attendant who fails to contact Crew Schedule and return to duty, prior to such deadline, will lose all rights to that trip. Those flights vacated at 0730 and 1930 respectively will become "soft openings". If such vacated flights are not used for balancing purposes, they will be released for open time trading and self balancing not later than 0800 and 2000, respectively. ARTICLE 18 / Page 32 Domicile flights not taken in open time by line holders may be assigned to reserves at 0900 and 2100, respectively. Satellite flights not taken in open time by line holders may be assigned as a domicile pairing and assigned to reserves at 0900 and 2100, respectively. A Flight Attendant on Union Business, who has been removed from a flight that is currently a soft opening, will lose all rights to that trip per the policy as stated above. In all cases, should a Flight Attendant return to duty after a reserve has been assigned, Crew Schedule will make one attempt to call the reserve Flight Attendant at her/his normal contact. If successful, the line holder may be placed on her/his original flight and the reserve may be given another assignment or released to the next call-in period. 3) Flight Attendants who have not checked in when required by the Company to so report, prior to scheduled departure of his/her flight will forfeit his/her right to the trip at the time a Flight Attendant notified to protect the flight has left his/her residence, unless it will cause a delay to the flight. Any bid Flight Attendant not departing on his/her flight may be reassigned or subject to balance under Paragraph (7)(f)(1)(a) preceding. (b) At a Domicile Layover Station If a Service Manager or Cabin Attendant cannot be contacted at his/her designated crew call time prior to the departure of his/her flight, the provisions of Section E(2)(h) of the Away From Domicile Policies shall be adhered to. If it is necessary to call out a reserve to protect the flight the reserve will protect the flight unless the Service Manager or Cabin Attendant to whom the flight was originally assigned arrived at the airport in sufficient time to board the plane without incurring a flight delay. (c) Notification of Schedule Changes The Company agrees that timely notification of schedule changes to Flight Attendants is a necessity. The primary responsibility for this function rests with the individual TWA station personnel. Airport Operations staff will issue the necessary instructions to each station so that Flight Attendant personnel receive schedule change notifications. Further, the Company agrees to review with IAM the application of pay penalties associated with non-standard ARTICLE 18 / Page 33 reporting where the failure is through no fault of the Flight Attendant. (10) Trading of Flights Trips may be exchanged by mutual agreement between Flight Attendants within the same classification based at the same domicile upon the following conditions: (a) Flight Attendants may submit open flight trades into pairings up to one hour prior to the last call-in period that the first departure of such affected pairing would be assigned. This provision applies to Domestic and International domicile flights only. On the International operation, trips may be exchanged at layover station by submitting a request to Station Operations which will seek the approval of Operational Planning. A Flight Attendant so trading may not make himself/herself illegal for any subsequent scheduled assignment within the bid month. For flights departing from satellite locations, trades may be submitted no later than 16 hours prior to departure on both domestic international operations. (b) There is no limit as to the number of mutual flight trades. Flight Attendants at both domicile and satellite locations may submit mutual trades up to the report time of the first departure of such affected pairings. (c) There is no limit as to the number of open flight trades. A bid holder may trade one or more flights, taking trip(s) from open time (other than a trip offered by another Flight Attendant pursuant to the Enhanced Trip Option) and returning trip(s) from the line into open time. (d) A Flight Attendant, through trading, may not reduce his/her line projection below his/her applicable guarantee. In the event a Flight Attendant through trading, reduces his/her line projection more than 5:00 below the applicable initial line projection, that Flight Attendant shall, within 48 hours from the end of the next reserve call-in period following the trade which produced the low line projection, restore his/her line projection by self-balancing to a value not more than ARTICLE 18 / Page 34 5:00 below the initial line projection. In the event the Flight Attendant fails to restore sufficient time within 48 hours as described in the preceding sentence, the Flight Attendant will be subject to balance and the Company may thereafter at any time balance such low projected Flight Attendant with a trip(s) to bring the projection at least to a value of 5:00 below initial projection; provided, however, that if there are less than 72 hours remaining in the bid month, the 48-hour provision shall not apply. A Flight Attendant who, as a result of trading, has a line projection more than 5:00 below the initial projection and who is subject to balance due to the provisions of this paragraph must thereafter contact Crew Schedule during each reserve call-in period until the low projection is cured. In the event a Flight Attendant is on a trip, the duties of which prevent the Flight Attendant from contacting Crew Schedule during the prescribed reserve call-in period(s), such Flight Attendant must contact Crew Schedule not later than the end of the trip. The Company may, as a result of such balance, increase the credit in the balanced Flight Attendant's line no more than five (5) hours above the initial line projection; in such event the Company shall endeavor to assign a balance trip having only such hours as is necessary to increase the Flight Attendant's line to the initial projection, but in no event in excess of 85 credit hours. In accordance with Article 6(X), a Flight Attendant shall have, at his/her option, the ability to exceed ninety- five (95) block hours through trading. (e) Trades into open flight(s) shall be permitted in accordance with this article, however, the Company requirements for available open flights for training and balancing purposes shall be given consideration prior to the processing of such trades. The number of trades creating additional open flights on any one day will be limited to the availability of qualified reserves at the domicile. (f) Crew Schedule will allow trades to be processed during each reserve set-up hour but the trade must not affect that reserve setup hour. All trade requests during the reserve set-up hours must be self input via the computer, as they will not be accepted by telephone. (g) A listing of open, unassigned AER training dates shall be made available through the CAMS system display and ARTICLE 18 / Page 35 Flight Attendants will be allowed to trade into such open AER dates. In addition, Flight Attendants may make mutual trades of AERs through CAMS. (11) Legal Rest at Layover Station After One-Way Trip (a) When a Flight Attendant is required to deadhead to his/her Domicile or Satellite station after flight assignment, he/she shall return to his/her Domicile or Satellite station on the first available flight for which legal, unless otherwise indicated in the flight pairing. In no way will the above nullify the provisions of Article 6(L) which allows Flight Attendants to proceed to a location other than their domicile. (b) The only exception to paragraph (a) above shall be when a Flight Attendant (other than a reserve Cabin Attendant) obtains permission from the Regional General Manager - In-Flight Services or his/her designated representative at the Flight Attendant's Domicile to remain at the layover station for an additional period of time. For the purpose of this paragraph, Crew Schedule will not be considered the designated representative. (12) A Flight Attendant's schedule shall not be changed at the opposite end of the trip without permission of the Flight Attendant affected unless it is the Company's opinion that an emergency exists. (13) A Flight Attendant will receive no less than the projected time of his/her monthly bid sequence should, in reality, the scheduled times posted for bid be less than those published. A Flight Attendant will not be balanced as a result of the application of this provision. (14) On all ferry flights where a Flight Attendant crew is deadheading, the Service Manager in charge on wide-body equipment is responsible for the performance of cabin duties while in flight and will be paid full flight credit/pay including report and release, and receive legal rest as a working crew member. (DD) Alternate Line Flying Scheduling. -------------------------------- (1) The provisions of Article 18(A) and (B) shall apply in their entirety to this Article. (2) Published lines of time shall consist of construction ranges of a minimum of 32:30 credit hours and a maximum of 45:00 credit hours. Under no circumstances may a Flight Attendant be scheduled to ARTICLE 18 / Page 36 exceed fifty-five (55:00) credit hours. (3) In any bid month, alternate lines shall be divided into two (2) parts. Alternate lines shall be constructed so that the published lines of time shall be flown during the first fifteen (15) days of the month or the last fifteen (15) days of the month. The days that a Flight Attendant is available to fly or available for any other Company activity (such as training) shall be defined as a "fly zone." The days that a Flight Attendant is not available to fly or not available for any other Company activity (such as training) shall be defined as a "no fly zone." Neither the Company nor the Flight Attendant may schedule any activity during the "no fly zone." (4) Lines designated as alternate lines shall be clearly designated as such in the monthly bid package. (5) The Company shall determine the pairings to be used in connection with the construction of the Alternate Lines. The Company shall only use domicile pairings in construction of alternate lines. (6) The number of alternate month vacancies to be offered for each quarter not to exceed 13% of the average number of equivalent full month bid positions published during the corresponding quarter of the previous year. The number of Flight Attendants participating in the Alternate Line Program shall be determined by the number of Flight Attendant who request to be in the Alternate Line Program not to exceed the percentage as identified above. Under no circumstances may the Company publish Alternate Lines in excess of the number of Flight Attendants requesting to participate in the Alternate Line Program. (7) Flight Attendants shall apply to fly alternate lines on a quarterly basis. Bids shall be awarded in seniority order. Quarters shall consist of January, February, and March (1st Quarter); April, May, and June (2nd Quarter); July, August, and September (3rd Quarter); and October, November, and December (4th Quarter). In order to be considered, applications must be submitted no later than the 1st day of the month sixty (60) days prior to the beginning of any quarter. TWA shall notify the Flight Attendants on or before the 10th day the following month of participation in the Alternate Line Program. For example, a Flight Attendant who wishes to apply for the 1st Quarter (January, February, and March) shall be required to submit his or her application no later than November 1. TWA shall notify the Flight Attendant on or before November 10. ARTICLE 18 / Page 37 (8) Flight Attendants participating in the Alternate Line Program shall be paid for vacation days if those days are scheduled in the "no fly zone." Those vacation days scheduled during the "fly zone" shall be handled in accordance with Article 6(B) and 18(D)(7). (9) Flight credit in excess of 45:00 shall be considered excess credit and shall be handled in accordance with Article 18(D)(7)(G). (10) Flight Attendants participating in the Alternate Line Program may not place trips into ETO Offer but may elect to take ETO trips subject to the limitations contained in Paragraph (2) above. (E) Charters (1) All Charter time which is assigned to a domicile and which is known prior to the bid period will be included in the domicile relief run requirements. Relief runs will be completed no later than 0001 of the fourth day of the new month and such runs shall be constructed so as to consist of at least sixty-five (65) flight credit hours. All charter time which cannot be placed in such run selections shall be handled as open time. As soon as relief runs are constructed as above, the duty free periods as required in Article 6(V) will be inserted in the lines and shown as such in the Crew Activity Display. The Company will provide the Union with a copy of the monthly charter schedule and revisions thereto. Known open time will be made available through computer terminals on Company property. Trades into such open time will be processed and honored subject to the availability of reserves to cover the resultant open trips. The Company reserves the right to assign Flight Attendants to any charter flight when a purchaser so requests by name or qualification. In such cases the Company shall be prepared to document that the request is a bona tide request of the purchaser. (2) Extended Charter or Special Interest Flights: The provisions of this Article notwithstanding, an "Extended Charter" or "Special Interest" Flight(s) is a flight(s) chartered by a single chartering agency or interest, the length and/or nature of which requires or would deem desirable the continuous assignment of the same employee and/or employees for a total period scheduled to be ARTICLE 18 / Page 38 away from the Domicile in excess of three hundred and forty hours (340:00). (a) An employee assigned to such flight as outlined in (2) above, shall receive flight credit hours for no less than the following: 1) Actual or scheduled block-to-block time, whichever is greater, calculated on a stop-by- stop basis. 2) Trip hours as outlined in Article 6 computed as follows: 1:4.00 credit hours to a maximum of 340 trip hours. 1:4.00 pay hours to a maximum of 340 trip hours. All trip hours in excess of those outlined above, are to be credited and paid on the basis on one (1) hour for each six (6) trip hours, prorated. (a) Notwithstanding the provisions of Article 6 all credit accrued, as a result of (a) above, shall be paid and credited in the month earned, except as otherwise provided in this Article 18(D)(7). (b) An employee assigned to an "Extended Charter" or "Special Interest" flight(s) for a continuous period in excess of thirty (30) days, may, after thirty (30) days, request relief from such assignment from the Regional General Manager - In- Flight Services and such relief will be granted provided notice of at least seventy-two (72) hours is given. (3) Off-line and Special On-line charters are non-military charter operations defined as follows: (a) An off-line charter is a charter flight operating between two (2) regular airports, at least one of which is not a TWA regular or provisional airport. If a Flight Attendant deadheads or ferries on the aircraft between such airports or between two regular TWA stations to commence, continue ARTICLE 18 / Page 39 or end such flights, the provisions of this paragraph and paragraph (b) will apply. (b) A special On-line charter is a charter flight which may be operated between airports between which TWA does not serve in scheduled service on a non-stop basis. Revenue load carried on such charter must be bona fide charter sales and not consolidation of canceled scheduled flights. If an intermediate stop is made at a regular TWA station, additional revenue load must be limited to consolidation of the original charter or to the boarding of charter passengers on a segment that does not compete with regularly scheduled non-stop service. (c) For charter flights operated under this subparagraph 3, the Domestic thirteen hour maximum scheduled on duty limitation of Article 6(R)(2)(d) shall be increased to thirteen and one-half (13 1/2) hours and the International fourteen (14) maximum scheduled on- duty limitation of Article 6(R)(4) shall be increased to fifteen (15) hours. All other provisions of Article 6 shall apply. (F) Satellites (1) Satellites may be established by the Company at any city served by TWA at present or in the future. Satellite lines of time may be posted for bid at any domicile. (2) Satellite lines of time shall consist only of pairings operating out of the satellite airport and shall be identified by separate code and posted for bid in a domicile bid package. Unsequenced pairings that originate and terminate at a satellite shall be placed into open time and awarded in accordance with Flight Attendant open time preferences. (3) Satellite lines of time shall only be awarded to Flight Attendants bidding such lines on their monthly bid preference sheet. Flight Attendants will not be involuntarily assigned to such lines. Flights in lines of time not awarded will be handled as unsequenced time as in paragraph 2 above. (4) Flight Attendants awarded satellite lines of time shall report directly to the satellite. Mailboxes and suitable free parking shall be provided to Flight Attendants holding a line of time at the satellite. All duty limitations, trip credit. duty credit and expenses for flights originating and terminating at the satellite shall be based on satellite report and release times for Flight Attendants awarded satellite lines of time. ARTICLE 18 / Page 40 (5) Reserve coverage of satellite flights shall be provided by domicile reserves. Should the Company decide to staff reserves at a satellite, the Company may advertise and award satellite reserve lines to Flight Attendants who bid such reserve lines. The proportion of satellite reserve lines to domicile reserve lines shall be determined by the Company. For a Flight Attendant awarded a satellite reserve line, the roles of the domicile and satellite shall be reversed for the purpose of the provisions of this letter. (6) Domicile reserves, domicile inversed Flight Attendants and domicile Flight Attendants involuntarily balanced on or involuntarily assigned to open satellite flights shall be provided Class B transportation (or positive off line if appropriate) from the domicile to the satellite. For all Flight Attendants assigned satellite flights under this paragraph, expenses, trip credit and duty credit provided in the working agreement shall be based on domicile report and release times. Duty limitations will be the same as the rescheduled maximums in Articles 6(R) and 6(D) of this Agreement for the originating and terminating duty periods of such flight assignment. A Flight Attendant may elect to report directly to the satellite under this paragraph and will then have his trip and duty limitations and credit and expenses based on the satellite report and release times. (7) Flight Attendants trading into satellite flights, requesting balance on satellite flight or awarded open satellite flights in accordance with open time preferences shall be handled as in paragraph 4 above. (8) The Company shall have the option to assign a Reserve Flight Attendant from the Saint Louis (STL) or New York (JFK) domicile, to any open Satellite Flight(s). Such assignment shall not be considered a temporary assignment pursuant to Article 13(E). (G) Back-To-Back Flying (1) Back-to-Back flying will be available to Flight Attendants through self balance/trade and the Enhanced Trip Option (ETO). Back-to-Back flying may also be available through bid award and relief/open time award. (2) Back-to-Back flying may result in either a waiver of rest or a deferral of rest in association with international flying. A waiver of rest will result in no less than twelve hours (12:00) of actual rest between flight pairings, where an international flight pairing is involved. A deferral of rest will result in no less than twelve hours (12:00) of rest between pairings, where an international flight pal ring is involved, and the amount of rest deferred between the first and second pairings will be added to the full legal rest following the second pairing, unless ARTICLE 18 / Page 41 prevented by FAA rest requirements. (3) On line fifty (50) of the bid input format there will be options available to Flight Attendants to elect either to waive or defer, to no less than 12:00 hours, their required legal rest following an international flight pairing (or following a domestic flight pairing prior to an international flight pairing). These options are available to bid line holders only. When the Flight Attendant indicates a "yes" in both boxes, the waiver of rest will apply to that bid month. A Flight Attendant opting for the deferral of rest, must have full legal rest plus the deferred rest from the first trip in the pair following the second trip of the Back-to-Back pair. If the Flight Attendant does not indicate "yes" in the waive or defer box and is not awarded a Back-to-Back sequence, such Flight Attendant shall always require full legal rest following an international flight pairing, unless he/she exercises the automatic waive option by trade/self-balance/ETO. (4) The Company may, with timely concurrence of the System Scheduling Committee, publish international sequences in the bid package with Back-to-Back flying at each domicile and satellite. No domestic trips may be sequenced in the bid package with international trips. Back-to-Back pairings in sequences must depart on consecutive calendar days and be scheduled to have no less than 20:00 hours rest between the two pal rings. The awarding of a sequence with Back-to-Back flying results in an automatic deferral of rest for the entire bid month. Flight Attendants who are awarded Back-to- Back trips as part of a published sequence may not decline such trips and, subject to the election on line fifty (50) of the bid sheet to waive and/or defer rest, will be deemed to have agreed to waive or defer rest, as appropriate, in accordance with paragraph (G)(2) above. Once having indicated "yes" in the waiver box the waiver shall only be used in actual operation and shall have priority over the automatic deferral. (5) A Flight Attendant desiring "Back-to-Back" flying in a relief/open time sequence must bid the COREL option code "K- K" in his/her specific COREL preferences. In order to defer rest in the construction of relief open time awards, the Flight attendant must indicate "yes" in the defer box for bid preferences. Indicating "no" in the defer box when the "K-K" option is requested could result in consecutive day flying, but would require full legal rest between trips. In the construction of relief/open time sequences the waiver of rest cannot be used; however, if the Flight Attendant indicates "yes" in the waive box the waiver shall, in actual operation, have priority over the automatic deferral. ARTICLE 18 / Page 42 (6) If the Flight Attendant has elected "no" in both the waive and defer box such Flight Attendant may exercise a trip-by- trip waiver of the rest through trading, self-balance and ETO in association with international flying. An automatic waiver of rest shall occur when a Flight Attendant's trade, self-balance or ETO results in less than the required legal rest. In no event will a Flight Attendant's rest be less than twelve (12:00) hours, or as required by FAA minimum rest. (7) The Back-to-Back option transition from one month to the next shall always be governed by the bid award and/or waive or defer preferences of the new bid month. This applies to both bid line holders and reserves. (8) Rest associated with international "Back-to-Back" flying to be taken prior to the first trip in the new bid month shall be waived, if necessary, when the Flight Attendant indicates "yes" in the waive box and is a bid line holder in the new month. Rest associated with international "Back-to-Back" flying to be taken prior to the first trip in the new bid month shall be deferred, if necessary, when the Flight Attendant indicates "yes" in the defer box, "no" in the waive box and is a bid line holder in the new month. This would apply even if the Flight Attendant was a reserve in the old bid month. Reserve Flight Attendants will receive a minimum of 24:00 hours rest after an international trip preceding their next reserve assignment. (9) Rest associated with international flying to be taken prior to the first trip in the new bid month must be full legal rest as required under Articles 6(R) and (U) of this Agreement if the Flight Attendant has placed "no" in the waive box, "no" in the defer box, has not been awarded a published "Back-to-Back" sequence, or is a reserve in the new bid month. (10) Flight Attendants who fly Back-to-Back trips and suffer a loss of flight time shall be subject to balance in accordance with Article 6(Z) or Article 18(D)(7), as applicable. (11) A Flight Attendant who has exercised any option that results in waived or deferred rest in her/his sequence and suffers a loss of time may be balanced on the same calendar days in the same manner as the Back-to-Back option in effect for the affected pairings in accordance with Article 6(Z). A Flight Attendant who elects to waive rest may be balanced to no less than twelve (12:00) hours, or rest as required by FAA minimums, between trips. A Flight Attendant who elects to defer rest may be balanced to no less than twenty (20:00) hours between trips. In cases where the Flight Attendant has indicated "yes" in both the waive and defer boxes on line fifty (50) of the bid input format, the waive option shall take precedence over the option to defer. The day/number of waivers/deferrals need not be identical to the ARTICLE 18 / Page 43 day/number of waivers/deferrals affected. (12) Flight Attendants who are scheduled to receive full legal rest between trips, and later incur pairing changes which result in less than full legal rest between trips, would normally be removed from their next scheduled trip as the result of not receiving full legal rest. However. if the Flight Attendant indicated "yes" in the waive box or defer box on line fifty (50) of her/his bid preferences, that option will be used to determine her/his required legal rest. The following chart indicates the rest and balancing requirements. on a scheduled basis, as determined by a Flight Attendant's election on the bid input format to waive and/or defer rest: BOX 3 BOX 4 WAIVE DEFER REST ----- ----- ---- A. IF - NO NO Full legal rest after every flight. B. IF - NO YES Defer international rest down to 12:00 hours to be taken after second trip of "back-to-back" pair. Company may defer only a maximum of 4:00 hours down to 20:00 for balancing purposes. C. IF - YES NO Waiver of rest down to 12:00 - no deferral of rest. Company may also waive rest down to no less than 12:00 hours for balancing purposes. D. IF - YES YES Waiver of rest down to 12:00 hours no deferral of rest. Company may also waive rest down to no less than 12:00 hours for balancing purposes. (Same as "C") Waive option takes precedence over defer option. ARTICLE 18 / Page 44 EXAMPLES OF BACK-TO-BACK FLYING
TYPE OF INTERNATIONAL TRIP SCHEDULED REST ACTUAL REST 1. Bid Flight Attendant trades/ Scheduled rest following the If the actual rest is less self-balances/ETOs into an international trip is equal than 24:00 but 12:00 or international or domestic trip to or greater than 12:00 but greater, the second trip such that an international less than 24:00 at the time remains in the line. If trip precedes a domestic or of the MTD/OTD/SBL/ETO the actual rest following international trip. and the second trip the international trip is departs no later than the less than 12:00, the next calendar day. This second trip is removed establishes an automatic from the line. Flight waiver down to 12:00 hours. Attendant becomes subject to balance on the same days as originally scheduled for the second trip. 2. Bid Flight Attendant who has Scheduled rest following the If the actual rest following not elected to defer or waive international trip must be the international trip is rest and who has not been 24:00 or greater. less than 24:00, the second awarded a back-to-back trip is removed from the line. sequence is balanced on an Flight Attendant becomes subject international or domestic trip to balance on the same days which follows an international as originally scheduled for trip; or is balanced on an the second trip. international trip that precedes a previously scheduled international or domestic trip. ARTICLE 18 / Page 45 TYPE OF INTERNATIONAL TRIP SCHEDULED REST ACTUAL REST 3. Bid Flight Attendant who has Scheduled rest following If the actual rest is less elected to defer rest or who the international trip than 24:00 but 12:00 or greater, has been awarded a published is 20:00 or greater. that portion of the rest not back-to-back sequence and has taken between the first and elected not to waive rest, is second pairing is deferred balanced on an international of until after the second trip; domestic trip which follows an the second trip remains in international trip; or is the line. If the actual rest balanced on an international following the international trip which precedes a previously trip is less than 12:00, the scheduled international or second trip is removed from domestic trip. the line. Flight Attendant becomes subject to balance on the same days as originally scheduled for the second trip. 4. Reserve Flight Attendant is Scheduled rest following the If the actual rest assigned an international or international trip must be following the international domestic trip which follows 24:00 or greater. trip is less than 24:00, an international trip. the second trip is removed from the line. Normal reserve assignment provisions will apply. ARTICLE 18 / Page 46 TYPE OF INTERNATIONAL TRIP SCHEDULED REST ACTUAL REST 5. Flight Attendant who is Scheduled rest following If the actual rest following awarded a relief run containing international trip must the international trip is an international or domestic be 24:00 or greater. less than 24:00, the second trip following an international trip is removed from the line. trip but who did not elect on Flight Attendant becomes the monthly bid sheet a subject to balance on the preference to waive or defer same days as originally rest. scheduled for the second trip. 6. Flight Attendant who is awarded Scheduled rest following If the actual rest is less than a relief run containing an the international trip 24:00 but 12:00 or greater, international ordomestic trip must be 20:00 or greater. that portion of the rest not following an international trip taken between the first and and who elected on the monthly second pairing is deferred bid sheet a preference to defer until after the second trip; rest and did not elect to waive the second trip remains in the rest. line. If the actual rest following the international trip is less than 12:00, the second trip is removed from the line. Flight Attendant becomes subject to balance on the same days as originally scheduled for the second trip. ARTICLE 18 / Page 47 TYPE OF INTERNATIONAL TRIP SCHEDULED REST ACTUAL REST 7. Flight Attendant who is awarded Scheduled rest following If the actual rest following an international sequence which each international trip the international trip is contains trips not leaving the must be 24:00 or greater. less than 24:00, the second next calendar day; and the trip is removed from the line. Flight Attendant did not elect Flight Attendant becomes subject to waive or defer rest. to balance on the same days as originally scheduled for the second trip. 8. Bid Flight Attendant who has Scheduled rest following If the actual rest following elected to waive rest is the international trip the international trip is balanced on an international must be 12:00 or greater. less than 12:00, the second or domestic trip which follows trip is removed from the line. an international trip; or is Flight Attendant becomes subject balanced on an international to balance on the same days trip which precedes a previously as originally scheduled for scheduled international or the second trip. domestic trip.
ARTICLE 18 / Page 48 (H) Trip Hours Formula Pro-ration Charts Pro-ration Chart for Trip Hours Formula 1:4:00 Trip Hours of Trip Hours of Hours Credit Hours Credit :01 176:00 44:00 Thru 4:00 180:00 45:00 16:00 184:00 46:00 20:00 5:00 188:00 47:00 24:00 6:00 192:00 48:00 28:00 7:00 196:00 49:00 32:00 8:00 200:00 50:00 36:00 9:00 204:00 51:00 40:00 10:00 208:00 52:00 44:00 11:00 212:00 53:00 48:00 12:00 216:00 54:00 52:00 13:00 220:00 55:00 56:00 14:00 224:00 56:00 60:00 15:00 228:00 57:00 64:00 16:00 232:00 58:00 68:00 17:00 236:00 59:00 72:00 18:00 240:00 60:00 76:00 19:00 244:00 61:00 80:00 20:00 248:00 62:00 84:00 21:00 252:00 63:00 88:00 22:00 256:00 64:00 92:00 23:00 260:00 65:00 96:00 24:00 264:00 66:00 100:00 25:00 268:00 67:00 104:00 26:00 272:00 68:00 108:00 27:00 276:00 69:00 112:00 28:00 280:00 70:00 116:00 29:00 284:00 71:00 120:00 30:00 288:00 72:00 124:00 31:00 292:00 73:00 128:00 32:00 296:00 74:00 132:00 33:00 300:00 75:00 136:00 34:00 304:00 76:00 140:00 35:00 308:00 77:00 144:00 36:00 312:00 78:00 148:00 37:00 316:00 79:00 152:00 38:00 320:00 80:00 156:00 39:00 324:00 81:00 160:00 40:00 328:00 82:00 164:00 41:00 332:00 83:00 168:00 42:00 336:00 84:00 172:00 43:00 340:00 85:00 ARTICLE 18 / Page 49 Credit for Minutes Over 16:00 Hours Trip Hours Credit Trip Hours Credit :01 :00 1:58-2:01 :30 :02- :05 :01 2:02-2:05 :31 :06- :09 :02 2:06-2:09 :32 :10- :13 :03 2:10-2:13 :33 :14- :17 :04 2:14-2:17 :34 :18- :21 :05 2:18-2:21 :35 :22- :25 :06 2:22-2:25 :36 :26- :29 :07 2:26-2:29 :37 :30- :33 :08 2:30-2:33 :38 :34- :37 :09 2:34-2:37 :39 :38- :41 :10 2:38-2:41 :40 :42- :45 :11 2:42-2:45 :41 :46- :49 :12 2:46-2:49 :42 :50- :53 :13 2:50-2:53 :43 :54- :57 :14 2:54-2:57 :44 :58-:1:01 :15 2:58-3:01 :45 1:02-1:05 :16 3:02-3:05 :46 1:06-1:09 :17 3:06-3:09 :47 1:10-1:13 :18 3:10-3:13 :48 1:14-1:17 :19 3:14-3:17 :49 1:18-1:21 :20 3:18-3:21 :50 1:22-1:25 :21 3:22-3:25 :51 1:26-1:29 :22 3:26-3:29 :52 1:30-1:33 :23 3:30-3:33 :53 1:34-1:37 :24 3:34-3:37 :54 1:38-1:41 :25 3:38-3:41 :55 1:42-1:45 :26 3:42-3:45 :56 1:46-1:49 :27 3:46-3:49 :57 1:50-1:53 :28 3:50-3:53 :58 1:54-1:57 :29 3:54-3:57 :59 3:58-4:00 1:00 In the computation of the "Trip Hours" formula, pay credit generated by same shall be computed as an extension of the final portion of the last leg flown as an operating Flight Attendant. ARTICLE 18 / Page 50 ARTICLE 19 PERSONNEL FILE (A) A personnel file shall be maintained for each employee in the employ of the Company, containing all records and reports, including electronic ("IER") file/reports, involving said employee. All records and reports shall be opened for inspection by the flight attendant or the flight attendant's specifically authorized Union representative upon appointment during normal business hours. For hearing and investigative purposes, a flight attendant's file shall on request be made available to the flight attendant or her/his specifically authorized Union representative upon appointment during normal business hours. (B) Passenger Complaint Letters (1) A passenger complaint letter shall not be placed in a flight attendant's personnel file unless: (a) The flight attendant is clearly identified in the letter. (b) The alleged misconduct or disservice was something over which the flight attendant had control. (c) The letter is reviewed with the flight attendant and she/he is afforded the opportunity to add her/his comments to the letter. (d) The name of the person writing such a report or letter is clearly identified to the Company. The Company will provide a copy of the letter of complaint to the affected flight attendant after deleting the identification of the sender. (2) All passenger complaint letters will be removed at the first opportunity from the employee's file after a period of twelve (12) months of active service from the date of the receipt, provided there has been no other infractions during that period. The letters shall be removed at the flight attendant's request. In the event other passenger complaint letters are received at any time during the said twelve (12) months, the letter will be retained for an additional twelve (12) months, after which time the documents shall be removed from the flight attendant's file upon request. ARTICLE 19 / Page 1 (C) Disciplinary Documents. (1) Documents two (2) years or older reflecting discipline or reprimand will not be considered by the Company in assessing discipline nor will they be introduced in support of such action. The Company will consider any disciplinary action taken against a flight attendant as cleared from her/his record after a two (2) year period of active service. (2) A flight attendant may attach comments to any disciplinary document that is placed in her/his file. (3) Such documents upon the flight attendant's request shall be removed from her/his file after the expiration of the two (2) year period. Any such document removed from the flight attendant's file will be date-stamped to reflect removal from the personnel file, placement in the corporate file, and shall not be used for the purpose of assessing discipline. (4) The flight attendant's record including notations may be cleared earlier, when, in the judgment of the Company, her/his performance warrants such action. (D) Non-Disciplinary Documents. As provided in Article 16(H), the Company shall have the right to make a notation in the flight attendant personnel file indicating that such discussion was held. A copy of such notation shall be provided to the flight attendant. In no event shall such notation or discussion be used by the Company in assessing discipline, except as to indicate prior counseling relating to the same subject matter. Any notations shall be subject to removal by the flight attendant as provided in Paragraph (C). (E) Inflight observation reports shall be removed from the flight attendant's personnel file after two (2) years of active service from date of issuance upon request from the flight attendant. A flight attendant may attach comments to any observation reports placed in her/his file. (F) Any matters contained in a flight attendant "IER" file/report shall, as appropriate, be subject to the same terms and conditions contained in Paragraphs (B) and (C) above. (G) For definitional purposes, active service shall exclude any period of time while on furlough or leave of absence which may be granted to the flight attendant. ARTICLE 19 / Page 2 ARTICLE 20 GENERAL (A) COPIES OF AGREEMENT Within sixty (60) days of signing this Agreement, the Company will provide each employee with a copy, printed and bound in a pocket- sized booklet which shall include Letters of Understanding, Amendments, or Addenda to the Agreement. Any Amendments to the Agreement completed subsequently shall be printed in similar format and distributed by the Company to each employee for inclusion in the Agreement within sixty (60) days of signing of such Amendments. The Agreement will have the complete title of the organization on the cover, will contain an appropriate printer's union logo, will contain an index of materials contained herein, including letters and examples of Back-to-Back Flying. (B) ORDERS IN WRITING All orders to Flight Attendants involving a change in Domiciles, promotions, demotions, furloughs, and leaves of absence shall be stated in writing, except that when time does not permit, assignments of Flight Attendants shall not require a written order. Such assignments shall be confirmed later in writing. (C) FLIGHT ATTENDANT RESPONSIBILITY Flight Attendants have a responsibility to exercise reasonable prudence in safeguarding Company property entrusted to them, including money, however, Flight Attendants are not guarantors and where circumstances indicate there is a loss despite the exercise of reasonable prudence the Flight Attendant will not be held liable. (D) OTHER BENEFITS (1) In the event that flying on International Operations shall cause an increase in premium for personal life insurance policies carried by an employee hereunder, the Company will, upon prompt submission of proof, reimburse such employee for such increased premium. (2) Any Flight Attendant who while engaged in Company business becomes missing, interned, or held as a hostage shall be entitled to monthly compensation as provided below, until released from such internment or hostage or, if missing, until death is established in fact or is presumed in accordance with this rule. Such monthly compensation shall be equal to the rate being paid to such employee at the time she or he becomes missing, interned, or held as hostage. Said monthly compensation will be paid to the beneficiary or beneficiaries ARTICLE 20 / Page 1 designated by said employee and filed with the Company. If the whereabouts or existence of an employee is not reasonably ascertained or established within twenty-four (24) months of disappearance, she or he shall be presumed to be dead. (3) Where obvious inequalities in the cost of living between stations outside the United States are such as to constitute a marked difference in the monthly income of Flight Attendants of equal pay status after fixed and continuing expenses have been deducted, the Company shall adjust the inequalities by means of a station allowance to cover cost of living differential which shall not be less than the cost of living differential paid to any other Company flight crew member stationed at the same domicile. (4) If the Flight Attendant is injured or becomes ill while at a layover station, the Flight Attendant will continue to receive normal trip expenses until return to Domicile or Satellite or upon arrival of the regularly scheduled turnaround flight, whichever is earlier. If the Flight Attendant is unable to return to Domicile or Satellite as normally scheduled, reasonable actual expenses, as determined by the Flight Attendant's Regional General Manager, will be paid for the period beyond that which is covered by trip expenses outlined above. Expenses of this nature include room (if not at a contract hotel), meals, telephone, transportation to and from the airport and transportation associated with required medical attention. Such expenses are to be reported on form G-118 by the Flight Attendant for approval by the supervisor. In the event the Flight Attendant is hospitalized away from Domicile or Satellite, reasonable actual expenses will not include rooms or meals. Under exceptional circumstances wherein a Flight Attendant is unable, by reason of illness, to visit a physician and one is summoned, payment for these services will be reimbursed under the provisions of Article 4(C)(1) of the TWA-IAM Working Agreement. Any employee who becomes sick or injured as a result of having been outside the United States on Company business, due to causes related to his/her occupation or to the living and health conditions peculiar to the countries in which she or he performed services, shall be properly hospitalized at Company expense. If the sickness or injury necessitates treatment or convalescence in the United States, such employee shall be returned by the Company to the United States in a passenger seat, positive space. This provision shall apply to recurrences of the same sickness or injury so long as the Flight Attendant remains an employee of the Company. ARTICLE 20 / Page 2 (E) OTHER EMPLOYMENT WITH THE COMPANY Flight Attendants will be given consideration in other types of employment with the Company if, in the opinion of the Company, they are properly qualified for such positions. (F) CUSTOMER SERVICE PANEL The Vice President In-Flight Services and the President-Directing Chairman or designated IAM District 142 representative are mutually committed to the consistent delivery of TWA's In-Flight Service product in accordance with TWA's Customer Service Standards. A panel, to be known as the "Customer Service Panel" co-chaired by the Vice President In-Flight Services and the President-Directing Chairman designated IAM District 142 representative, or their designees, will meet on a quarterly basis to review the appropriateness of the Company's handling of in- flight performance feedback. (G) INFORMATION TO BE PROVIDED BY THE COMPANY TO IAM TWA shall provide prospectively (and retroactively where indicated) the following documents and reports to IAM so long as these documents and reports continue to be prepared. In the event that TWA ceases to prepare such documents but continues to maintain the information contained therein, TWA shall provide the information in whatever form or format it deems convenient. Nothing contained herein shall require TWA to prepare reports or maintain information of any kind. (1) JXCAF Microfiche (2) Transfer Request List (3) Transfer Message (4) Furlough, Recall and Displacement Notices (5) Bid Results (Alphabetical, Seniority and Run order) (6) PTO/Leaves (7) Other Documents. All documents specifically addressed in the settlement dated September 9, 1985, in the Central Crew Schedule Lawsuit will be furnished as required. (8) Dues Notices Should an arbitration arise out of the application of Article 24, the Company shall furnish to IAM District 142 and Local Lodge 1997 no later than seven (7) days prior to the arbitration, its file copy and return receipt green card from the letter of notification to the affected individual. (9) TWA will provide the IAM with hardware (CRT, Terminal, Printer) and software (CAMS, PARS, DRS access, and PROFS access) which will be used to assist the IAM in providing service and representation to its members. Such access will be provided no later than November 1, 1994, and will include, but not be limited to: i) all information ARTICLE 20 / Page 3 currently available to Flight Attendants via Company CRT/Home Access; and ii) the following codes: CAMS INQUIRIES JXCAF = F/A Monthly Schedules (Unsuppressed & Suppressed) JXSKF = Sick Leave Bank JXQIF = (SPV, IER, FAQ) JXMHF = Category Change History JXCIF = Pairing History JXSHF = Sequence History JXHAF = Lost Time History JXTIF = Transfer Requests on File JXRVF = Reserve List JXSLF = Stand-by List JXOPF = Open Time Flights (All) JXEIF = Block Time History Inquiry JXFSF = Flight Staffing (Unrestricted) JXTW = Training History DRS G/IFS/SUM = IFS Summary G/APS/TVL/RRT = Reduced Rate Information G/IFS/JIA (TIA) = Central Crew Scheduling - Pages G/IFS/TRN/P04 = In-Flight Training Course Codes GM/OPS/CRW = Mask to Operations Planning Special Operations Mask to Central Crew Scheduling/Operations Planning from IAM Access to PROFS for all IAM Representatives Access to MOBIUS for six (6) grievance representatives as designated by District Lodge 142 PARS 4L*F#/DAMON STA = S.P.I.L. WPDF#/DAMON STA = POST DEPARTURE LOAD TWA will provide such other computerized data as may be required pursuant to the Central Scheduling lawsuit settlement. In addition, the IAM shall be provided such other information necessary to the Union in its participative, joint decision making role. (H) RAILWAY LABOR ACT Nothing in this Agreement shall be construed to limit or deny any Flight Attendant hereunder any rights or privileges to which he or she may be entitled under the provisions of the Railway Labor Act, as amended. ARTICLE 20 / Page 4 (I) MISCELLANEOUS (1) The Company shall provide and make available at each Domicile a bulletin board to be used exclusively by the Union. The board shall be similar in size and construction to boards provided other associations or unions at that base. All notices posted on this board shall be signed or initialed by a duly authorized representative of the Union. The Union may make Bulletin Boards available at Satellite Locations. These Bulletin Boards will be supplied and paid for by IAM and will be for their exclusive use. (2) The Company shall furnish the Union upon request the printed list of current addresses of employees. (3) The Company shall also furnish a computer diskette to the Union regarding Article 24 payroll deductions for Union Dues check-off. (4) Official Union bulletins, newsletters, notices, etc., may be distributed in employees' mail boxes if they have been approved for such distribution by the Vice-President - In- Flight Services or his/her designee. (5) When a Flight Attendant receives an overpayment from the Company, the Flight Attendant shall have the option of repaying such overpayment in a lump sum or at the rate of $50 per biweekly paycheck. This shall not apply in cases of terminating employees, Flight Attendants taking leaves of absence or any overpayment resulting from the terms of the Enhanced trip Option provisions under Article 6. (6) Commencing with the effective date of this Agreement, TWA will provide, on a monthly basis, a list of the names and payroll numbers of Flight Attendants who were tested and the dates of testing. Upon specific request from IAM in each instance TWA will thereafter provide the IAM with a copy of TWA Employee Drug/Alcohol Test Notification/Verification form for the applicable Flight Attendant who has been tested as outlined in Article 6(Y). (7) There shall be no unlawful discrimination against employees covered by this Agreement because of race, sex, religion, sexual orientation, creed, age, color, handicap or disability, or national origin, veteran status including veteran, Vietnam era veteran or special disabled veteran status. Neither the Company nor the Union will condone acts of sexual harassment. The Company agrees not to unlawfully discriminate against any employee because of Union membership or activity and the Union agrees not to unlawfully discriminate against any employee based on non- membership in the Union. This paragraph ARTICLE 20 / Page 5 reaffirms the longstanding mutual practice of both parties to this Agreement. (8) Effective January 1, 2000, at the Flight Attendant's option, the Company shall provide direct deposit of all pay and expense checks, by electronic transfer, to the bank or financial institution of the Flight Attendant's choice. If the Flight Attendant utilizes the electronic direct deposit, his/her paycheck stub will be available at his/her domicile or the Flight Attendant may provide a self-addressed stamped envelope of appropriate size with the domicile administration for the purpose of mailing his/her paycheck stub. ARTICLE 20 / Page 6 ARTICLE 21 RETIREMENT (A) Unless alternate dates are specified below, the Company has amended the Retirement Plan for Flight Attendants effective as of March 7, 1986, and as further effective January 8, 1993, and September 22, 1994. Except as specifically amended hereunder, all provisions of the Retirement Plan for Flight Attendants as amended and in effect August 1, 1981, shall remain in full force and effect. (1) Early Retirement A Member who retires early on or after the attainment of age forty-five (45) shall be entitled to receive, at his/her election, either: (a) A retirement income commencing on his/her normal retirement date in an amount calculated under the provisions of Article (B)(5) below for normal retirement but on the basis of his/her Continuous Employment up to such early retirement; or (b) Effective March 7, 1986, a retirement income commencing on the first of any earlier month equal to the retirement income described in (a) above reduced by 5/12% for each month by which the commencement date precedes age 60. Notwithstanding the foregoing, the retirement income of any Member who commences the receipt of early retirement income hereunder subsequent to March 7, 1986, shall be based on the greater of: 1) the Member's accrued benefit as of March 6, 1986, reduced by 4/12% for each month by which the commencement date precedes age 60; or 2) the Member's accrued benefit as of the date benefits commence, reduced by 5/12% for each month by which the commencement date precedes age 60. (2) Lump Sum Distribution Effective March 7, 1986, the monthly benefit will be reduced by five per cent (5%) for each year by which the termination date precedes age sixty (60), with the lump sum actuarial adjustments computed on the basis of two per cent (2%) over the prevailing interest rate of the Pension Benefit Guaranty Corporation, but not higher than the highest percentage permitted by law. ARTICLE 21 / Page 1 NOTE: As a result of the change in the reduction factor from four per cent (4%) to five per cent (5%), a Flight Attendant will receive the greater of: (a) A lump sum calculated by reducing the monthly benefit accrued prior to March 7, 1986, by four per cent (4%) for each year by which the termination date precedes age sixty (60); or (b) A lump sum calculated by reducing the monthly benefit accrued during the employee's total continuous service by five per cent (5%) for each year by which the termination date precedes age sixty (60). (3) Lump Sum Notice Effective September 1, 1992, the requirement for a six-month notice of election in order to receive a lump sum distribution is eliminated. (4) Freeze of Benefit Accruals The Retirement Plan for Flight Attendants of Trans World Airlines, Inc. has been amended to freeze future benefit accruals after December 31, 1992. Earnings after December 31, 1992, will not be taken into account in computing benefits under the Plan. No person who is not a Plan Member or former Member on December 31, 1992, shall become a Member on or after January 1, 1993. (5) Defined Benefit Plan (a) If the IAM elects to have a spin-off of its portion (The Retirement Plan For Flight Attendants of Trans World Airlines, Inc.) of the Employee's Plan, and such spin-off occurs, then TWA shall not object to the selection by the IAM of a person or entity to act as the benefits administrator for the spun-off IAM portion unless and until that Plan is terminated or transferred to the control of the PBGC. (b) The spin-off shall comply with the provisions of the Comprehensive Settlement Agreement providing for such a spin-off. The actuarial assumptions for such spin- off shall be determined by the Plan's actuary and approved by the IAM and PICHIN Corp. Nothing herein shall narrow or otherwise limit the rights of the Company or the IAM to legally challenge those assumptions on the basis that they are detrimental to the lAM or non-contract employees. (c) If a Triggering Event occurs and if the IAM does not elect to have its plan spun off, the Company and the IAM shall ARTICLE 21 / Page 2 select a person or an entity reasonably agreeable to both parties and use their respective best efforts to cause such entity to act as a benefits administrator for the Employee's Plan until that Plan is terminated and transferred to the control of the PBGC. (6) Retirement Savings Plan [401(k)] Effective November 1, 1988, the Trust Plan for Pursers of Trans World Airlines, Inc. has been amended and restated to include a 401(k) feature available to all TWA Flight Attendants and has been renamed "The Retirement Savings Plan for Flight Attendants of Trans World Airlines, Inc." Company contributions for recognized service under the former Pursers' Plan continue under the restated Plan for Flight Service Managers who qualify under the plan eligibility standards. Effective September 1, 1992, but subject to the provisions of Article 21(C), TWA will include and extend payment of Company contributions to Flight Service Managers on both the International and Domestic operations. (B) Summary of Retirement Plan The Summary of your Plan and your Rights as a Plan Participant as required by the Employee Retirement Income Security Act of 1974 appears in the TWA booklet entitled, "Your TWA Retirement Plan for Flight Attendants" as amended and in effect on August 1, 1981; and further amended effective January 1, 1986; and as further amended March 7, 1986; and as further amended effective January 8, 1993. (1) Type of Plan: Fixed (2) Participants: Flight Attendant Employees who have met the eligibility requirements specified in the Plan. (3) Participant Eligibility: Notwithstanding paragraph (A)(4) above, all Flight Attendants in active service who have completed one Year of Service shall automatically become Members of the Retirement Plan. Membership shall be effective on the first day of the month coincident with or next following the completion of one Year of Service. This provision shall also be applicable to those Flight Attendants on furlough or authorized leave of absence upon their return to active service. (4) Normal Retirement Age: Age sixty (60). ARTICLE 21 / Page 3 (5) Normal Benefit Formula: (a) For participants in the Plan on and after August 1, 1981: Past Service: 2.0% of gross earnings per month for each year of Continuous Employment from date of hire to July 31, 1981, less any unpaid absences. Gross earnings are the average monthly earnings for calendar years 1979, 1980, 1981. Average monthly earnings will be determined by dividing the total earnings as a Flight Attendant for the calendar years 1979, 1980 and 1981 by the total number of months of active service as a Flight Attendant during these years. ("Months of active service" will be determined by dividing the total number of days of active service as a Flight Attendant during 1979, 1980 and 1981 by 30.44, which is the average number of days per month during this period.) Flight Attendants who had no earnings during these years will be credited with the average of the average monthly earnings for such years of the next most senior and the next most junior Flight Attendants who had earnings in the same category and same division on the System Seniority List on January 1, 1982. Future Service: For service on and after August 1, 1981 or the actual date the Employee becomes a Member of the Plan if subsequent to August 1, 1981, an annual benefit equal to 2% of each year's gross earnings after that date. (b) Participants in the Plan prior to August 1, 1981 will receive the greater of (i) the benefit described above or (ii) the benefit accrued through July 31, 1981 under the prior Plan. Temporary Annuity Supplement: A temporary annuity will be provided to Flight Attendants, while alive, who are receiving normal, early or disability retirement income and who have accumulated ten (10) or more years of credited Plan participation, equal to 50% of a normal, early or disability retiree's pension on a life annuity basis to a maximum of $250 per month to be paid only from age 60 to age 62 or the earliest age at which non- disability social security benefits become available. Such temporary annuity supplement will not be subject to early retirement reduction factors or a joint and survivor or other option ARTICLE 21 / Page 4 elections; nor shall it be included in the determination of any lump sum settlements; nor shall it be applicable to vested terminations. (6) Lump Sum Distribution Age forty-five (45); lump sum benefit reduced according to Plan provisions for each year by which the termination date precedes age sixty (60), with actuarial adjustments as provided in the Plan. (7) Disability Retirement: Ten (10) years of Company service: benefit equal to accrued pension to date of disability retirement. (8) Normal Form of Benefit: If unmarried, life annuity; if married, fifty percent (50%) Automatic Qualified Joint and Survivor Annuity actuarially reduced, unless employee opts out. (9) Contingent Annuitant Option: (a) Members may elect a joint annuitant not less than six (6) months prior to commencement of benefits. (b) For married participants who retire subsequent to January 1, 1976, an actuarially equivalent fifty percent (50%) joint and surviving spouse pension will be provided unless the participant has, with proper notice, elected another available option. (10) Optional Forms of Benefits: Joint annuities above fifty percent (50%); level income, lump sum. (11) Vesting in Pension Accrued to Date: A participant will become one hundred percent (100%) vested in the pension accrued to date, upon completion of ten (10) or more years of continuous service with the Company, (with due consideration for Breaks in Service or reinstatement of service prior to a Break in Service, to the extent permitted under ERISA). Effective January 1, 1989, A participant will become one hundred percent (100%) vested in the pension accrued to date, upon completion of five (5) or more ARTICLE 21 / Page 5 years of continuous service with the Company, (with due consideration for Breaks in Service or reinstatement of service prior to a Break in Service, to the extent permitted under ERISA). (12) Employee Contributions: None. The Plan Sponsor will assume the full cost of the Retirement Plan for Flight Attendants. Consequently, the Plan will be non-contributory for all Flight Attendants. (13) Unisex Option Factors: A single set of factors, equally applicable to male or female participants, is to be used where the form of pension is other than a life annuity. This table will reflect the relative proportion of males versus female participants currently and in near future, as well as the likely proportion of each sex on this form of pension. Representatives of the IAM will have the opportunity to review these factors. (C) Retirement Savings Plan for Flight Attendants of Trans World Airlines, Inc. (1) Effective November 1, 1988, the Trust Plan for Pursers of Trans World Airlines, Inc. has been amended and restated to include a 401(k) feature available to all TWA Flight Attendants and has been renamed "The Retirement Savings Plan for Flight Attendants of Trans World Airlines, Inc." Company contributions for recognized service under the former Pursers' Plan continue under the restated Plan for Flight Service Managers who qualify under the plan eligibility standards. Effective September 1, 1992, TWA will include and extend payment of Company contributions to Flight Service Managers on both the International and the Domestic operations, provided, however that: (a) The Company 5% contribution to the Retirement Savings/401(k) Plan accounts of Flight Service Managers for recognized service pursuant to Exhibit B, Section B(3)(B) of the Agreement in Principle signed August 13, 1992, shall continue to be suspended pursuant to the Agreement in Principle dated August 13, 1992 until the day prior to the amendable date of this Agreement. Thereafter, Flight Service Managers shall become eligible to receive contributions for recognized service under the Plan, which contributions shall be borne by and distributed from the Company defined contribution payment required by the Comprehensive Settlement Agreement dated January 8, 1993, between and among TWA, Labor, PBGC, Unsecured Creditors' Committee and the Icahn Affiliates. ARTICLE 21 / Page 6 (b) Payments pursuant to this agreement shall be made monthly, and the Retirement Savings Plan for Flight Attendants shall be amended so as to provide for such monthly contribution to participant accounts. (2) A vested Plan member upon termination at age forty-five (45) or later may elect to receive a lump sum of the Accumulation Units credited to the member's account as of termination date. (3) Delivery of Contributions The contributions required to be made by the Company for the benefit of IAM members pursuant to the arbitrator's allocation decision and award, which decision and award allocated among the four employee groups receiving the contributions required to be made by the Company pursuant to Section 15 of the Comprehensive Settlement Agreement of 1993, shall, unless otherwise agreed in writing by the Company and the IAM, be made in accordance with such arbitration decision and award and paid over to the trustee for the 401(k) Plan by the Company at the end of the plan year to which the contributions are attributable. Evidence of payment by the Company to the trustee will be provided to the IAM showing the total contribution and confirming that the percentage is in accordance with the arbitration decision and award. (4) Allocation of Employer Contribution for Plan Years beginning on or after January 1, 1993 Employer Contributions to be allocated for any Plan Year beginning on or after January 1, 1993, shall be allocated to the respective Employer Contribution Accounts for each Eligible Participant. Each Eligible Participant's Compensation received during the Plan Year while a Participant shall be weighted by multiplying such Compensation by the applicable factor set forth in Appendix A (attached to and made a part of the Plan) based on the Participant's age as of January 1 of the year following the Plan year for which such contribution is made. The allocation of the Employer's Contribution shall be made to each such Participant on a pro rata basis according to the ratio that such weighted Compensation for the Eligible Participant for the Plan Year bears to the weighted Compensation for all such Eligible Participants for the Plan Year. (Capitalized terms in this paragraph shall be defined as in the existing 401(k) Plan). ARTICLE 21 / Page 7 (5) Cooperation and Study The Company in its capacity as representative of the non- contract workers and the IAM shall work together in good faith to study all material problems in connection with, and to provide for, administration of all relevant retirement trusts related to the IAM and/or non-contract workers in the event of Triggering Events, as defined below. Such study shall include the possibility of transferring administration of IAM plans to entities organized by or designated by the IAM but, in such event, the expense shall continue to be borne by the Company. (6) Effect of Triggering Event on 401(k) Plan (a) "Triggering Event" shall mean liquidation, merger, petition in bankruptcy, amalgamation, winding up or other like event affecting the Company or other event agreed by the Company and the IAM. (b) If a Triggering Event occurs, the IAM shall have the option of becoming the plan sponsor/administrator of the 401(k) Plan, or the IAM may select an entity as plan sponsor/administrator. The option to become or select the plan sponsor/administrator shall continue to be exercisable until final liquidation, merger or winding up of the Company. (c) The IAM shall have the option of requesting that the 401(k) Plan and Retirement Savings Plan for the benefit of non-contract workers be included under a common sponsor/administrator, provided that such sponsor/administrator is reasonably acceptable to both the IAM and the Company. Other TWA Defined Contribution plans that are not terminated or transferred to another corporate sponsor may be transferred and included under the common sponsor/ administrator if the Company and the IAM shall so agree. (7) Expense Reimbursement The Company shall reimburse the IAM for its reasonable out- of-pocket costs and expenses, including professional fees, (a) in studying and negotiating the agreement concerning administration contemplated in Section (5) above and up to five thousand dollars ($5,000) (b) in amending the IAM ESOP to reflect the new securities issuable to the IAM in connection with the restructuring initiated by the Company. ARTICLE 21 / Page 8 APPENDIX In accordance with the provisions of Section 2 of the amendment to the 401(k) Plan, an Eligible Participant's Compensation for any Plan Year beginning on or after January 1, 1993 for which a contribution is made shall be multiplied by the applicable factor set forth below based on such Participant's age as of the Valuation Date for which the contribution is being made. For purposes of said Section 2, an Eligible Participant's age is determined as of the birthday in the calendar year preceding the Valuation Date for which the contribution is being made. (The factors set forth below are based on an interest rate of 7.5% and an assumed retirement age of 60.) FACTORS AGE 7.5% 20 & UNDER 0.0554 21 0.0596 22 0.0640 23 0.0688 24 0.0740 25 0.0796 26 0.0855 27 0.0919 28 0.0988 29 0.1063 30 0.1142 31 0.1228 32 0.1320 33 0.1419 34 0.1525 35 0.1640 36 0.1763 37 0.1895 38 0.2037 39 0.2190 40 0.2354 41 0.2531 42 0.2720 43 0.2925 44 0.3144 45 0.3380 46 0.3633 47 0.3906 48 0.4199 49 0.4513 50 0.4852 51 0.5216 52 0.5607 53 0.6028 ARTICLE 21 / Page 9 54 0.6480 55 0.6966 56 0.7488 57 0.8050 58 0.8653 59 0.9302 60 & OVER 1.0000 ARTICLE 21 / Page 10 ARTICLE 22 INSURANCE BENEFITS Except as specifically amended hereunder, all provisions of the Summary Plan Description and Article 22 of the agreement dated November 1, 1994 except as amended by the provisions of the following group benefits, shall remain in full force and effect: (A) Group Insurance (1) Effective November 1, 1994, the Group Medical Benefit Plan (the "Plan") will be a plan that incorporates a Preferred Provider Organization ("PPO") and provides two levels of comprehensive benefits based upon whether the service is obtained through the PPO network ("In-Network") or outside the PPO network ("Out-of-Network"). Employees who live in areas where no PPO network is available are paid in accordance with the In-Network benefits. (a) The Group Medical Benefit Plan shall provide for the following schedule of benefits: - -----------------------------------------------------------------------------------------
PLAN FEATURES PPO IN-NETWORK OR PPO OUT-OF-NETWORK ---- -------- NO PPO AVAILABLE ------------------ ---------------- - ----------------------------------------------------------------------------------------- Annual Deductible $200 family $600 individual All members combined $1800 family (3 persons) - ----------------------------------------------------------------------------------------- Retiree Deductible $200 family $600 individual For those retiring after All members combined $1800 family (3 persons) 8/1/99 - ----------------------------------------------------------------------------------------- Applies to All expenses except for All expenses office visits, routine physical except Chiropractic exams, immunizations, in- hospital confinements, out patient surgery - ----------------------------------------------------------------------------------------- Deductible carryover None None - ----------------------------------------------------------------------------------------- Co-Insurance 90%/10% Plan pays 70%/30% after Plan pays 90% after deductible based on deductible; but for physician reasonable & customary visits pays 100% after $10 office co-pay - ----------------------------------------------------------------------------------------- Employee co-insurance $1,000 individual/$3,000 $3,000 individual/$9,000 limits per calendar year family plus deductible family plus deductible ($1,000 per individual, ($3,000 per individual, 3 individual at $1,000 3 individual at $3,000 each each for family) for family) - ----------------------------------------------------------------------------------------- Lifetime Maximum Unlimited Unlimited Benefit - -----------------------------------------------------------------------------------------
ARTICLE 22 / Page 1 NOTE: Covered expenses from Out-of-Network providers will be based on the reasonable and customary fee for that geographical area. (b) Hospital Expense Benefits In-Network, the Plan will pay 90% of hospital charges for room and board, services and supplies, no deductible. Out-of-Network, the Plan will pay 70% of hospital charges for room and board, services and supplies, after the annual deductible has been satisfied. Covered Expenses under the Medical Plan shall include in-hospital expenses incurred for newborn children. (c) Inpatient Surgical Expense Benefits In-Network, the Plan will pay 90% of surgeon charges, after the annual deductible has been satisfied. Out- of-Network, the Plan will pay 70% of surgeon charges, after the annual deductible has been satisfied. (d) Outpatient Surgical Expense Benefits In-Network, the Plan will pay 90% of hospital and surgeon charges, no deductible. Out-of-Network, the Plan will pay 70% of doctors visit charges, after the annual deductible has been satisfied. (e) In-Hospital Doctors Visit Benefits In-Network, the Plan will pay 90% of doctors visit charges, after the annual deductible has been satisfied. Out-of-Network, the Plan will pay 70% of doctors visit charges, after the annual deductible has been satisfied. (f) Doctor's Office Visit Benefits In-Network, the Plan will pay 100% of doctor's office visit charge, after a $10 co-payment. Out-of-Network, the Plan will pay 70% of doctor's visit charges, after the annual deductible has been satisfied. (g) Chiropractic Care Benefits Chiropractic benefits will be paid subject to reasonable and customary charges with no deductible and will be limited to 20 visits per member per year. These visits are not subject ARTICLE 22 / Page 2 to medical necessity. (h) Preventive Health Care Benefits In-Network, after a $10 office visit co-payment, the Plan will pay for routine physical exams, including Pap smears and mammograms, not to exceed the following: Six (6) visits, including immunizations, up to 1 year of age; no coverage for immunizations beyond age 1; One (1) visit per calendar year from ages 1 through 5 years; One (1) visit every calendar year, age 6 and older. Effective 8/1/1999, Pap smears, mammograms, proctosigmoidoscopys and PSA tests will be a covered expense eligible for submission every calendar year. No preventive health care benefits are payable Out-of- Network. (i) Diagnostic X-ray and Laboratory Expense Benefits In-Network, the Plan will pay 100% of expenses for outpatient x-rays and laboratory tests for diagnosis of an injury, illness or pregnancy, up to $500 per year for all illnesses and up to $500 for each accident. Expenses in excess of $500 will be paid at 90% after the annual deductible has been satisfied. Out-of-Network, the Plan will pay 100% of expenses for outpatient x-rays and laboratory tests for diagnosis of an injury, illness or pregnancy, up to $500 per year for all illness and up to $500 for each accident. Expenses in excess of $500 will be paid at 70% after the annual deductible has been satisfied. (j) Pre-Admission Testing Expense Benefits In-Network, The Plan will pay 100% of expenses for outpatient tests ordered by a physician as a planned preliminary to inpatient admission within four (4) days, no deductible. Out-of-Network, the Plan will pay 70% of expenses for outpatient tests ordered by a physician as a planned preliminary to inpatient admission within tour (4) days, after the annual deductible has been satisfied. (k) Pre-Admission Certification and Continued Stay Review Pre-Admission Certification and Continued Stay Review (PAC/CSR) is a process performed through a utilization review program that is used to certify the medical necessity and length of any inpatient hospital confinement. PAC/CSR will be required under the Plan. If Pre-Admission ARTICLE 22 / Page 3 Certification is not received four (4) days prior to a planned admission, a $300 penalty will be assessed. Hospital charges otherwise payable will be reduced by 50% for any day in excess of the number of days that have been certified through PAC/CSR. No benefits will be paid for hospital expenses incurred during a hospital confinement for which Pre-Admission Certification was performed but which was not certified as medically necessary. All eligible employees should call TWA Special Health Services to obtain certification for in-patient mental, nervous and substance abuse confinements. (l) Second Opinion Surgical Benefits In-Network, the Plan will pay 100% of reasonable and customary expenses for a second opinion as to the need for non-emergency surgery. Out-of-Network, the Plan will pay 70% of reasonable and customary expenses for a second opinion as to the need for non-emergency surgery, after the annual deductible has been satisfied. (m) Free-Standing Surgical Facility Expense Benefits In-Network, the Plan will pay 90% of expenses incurred in a Free-Standing Surgical Facility. Out-of-Network, the Plan will pay 70% of expenses incurred in a Free- Standing Surgical Facility, after the annual deductible has been satisfied. (n) Supplemental Accident Expense Benefits In-Network, the Plan will pay 100% of physician charges for treatment of an injury during the 90-day period following an accident, up to a maximum of $300 per calendar year. Physician charges exceeding $300 will be paid at 90% after the annual deductible has been satisfied. Out-of-Network, the Plan will pay 100% of physician charges for treatment of an injury during the 90-day period following an accident, up to a maximum of $300 per calendar year. Physician charges exceeding $300 will be paid at 70% after the annual deductible has been satisfied. (o) Skilled Nursing Facility Expense Benefit After the annual deductible has been satisfied, the Plan will ARTICLE 22 / Page 4 pay 80% of Skilled Nursing Facility expenses for room and board, services and supplies for medical care and treatment up to 60 days of confinement per calendar year. Payment for room and board will be based on the facility's most common semi-private room charge. (p) Home Health Care Benefits In-Network, the Medical Plan shall pay 90% of expenses for up to 60 home health care visits per calendar year, after $50 of the $200 deductible has been satisfied. Out-of-Network, the Medical Plan shall pay 70% of expenses for up to 60 home health care visits per calendar year, after the full deductible has been satisfied. (q) Hospice Care Benefits The Medical Plan shall pay 80% of hospice care expenses, incurred in a hospice care facility or at home, after the $200 annual deductible has been satisfied, up to a maximum lifetime benefit of $10,000 per individual. (r) Medical Plan Prescription Drug Benefits The Plan will pay based on hospital affiliation for prescription drug expenses, after the applicable family deductible has been satisfied, for drugs administered in a hospital facility. Employees who live in an area where there is a pharmacy, but there is no INTEQ network pharmacy available, will submit their prescription drug claims for reimbursement at 80% through their third party company authorized administrator for medical claims. (B) Prescription Drug Program Effective November 1, 1994, the Prescription Drug Program will include the Mail Order Maintenance Drug Plan and an Acute Care Drug Plan. (1) The Mail Order Drug Plan provides for the following schedule of benefits: (a) $5 co-payment for generic drugs; (b) $15 co-payment for brand name drugs when generic is not available; (c) Co-payment for brand name drugs when generic drug is available will be $5 plus the difference in generic and brand ARTICLE 22 / Page 5 name ingredient costs; (d) Initial prescriptions will be limited to 30 days. Subsequent prescriptions may be filled for up to 90 days. (2) The Acute Care Drug Plan provides for the following schedule of benefits: (a) Employees issued prescription drug cards for use at participating pharmacies; (b) All drug prescriptions must be submitted through the Inteq Drug Plan (Acute and/or Mail Order). However, drugs dispensed in conjunction with hospital visits will continue to be processed through Third Party Administrator; Employees who live in an area where there is a pharmacy (but there is no Inteq network pharmacy available, will continue to submit their prescription drug claims for reimbursement through their third party company authorized administrator for medical claims; (c) Five dollar ($5.00) co-pay for generic drugs or 30% for brands when no generic substitution is available; (d) Five dollar ($5.00) co-pay plus the difference in ingredient cost between brand and generic when generic substitution is available. (e) Effective August 1, 1999, there shall be no deductible. All drug prescriptions will be submitted through the Inteq Drug Plan. (Acute or Mail Order). (C) Dental Plan Benefits The Group Dental Plan effective October 1, 1999 includes a Preferred Provider Organization (PPO) which provides three (3) levels of comprehensive benefits based upon whether the service is obtained through the PPO network (In-Network), outside the PPO network (Out-of-Network), or through a voluntarily elected Dental Health Maintenance Organization (DHMO) to be effective January 1, 2000. Employees who live in areas where no PPO network is available are paid in accordance with the In-Network benefits. In- Network shall ARTICLE 22 / Page 6 be defined as at least two (2) general practitioners within a ten (10) mile radius. Features of the Group Dental Plan are as follows: DENTAL HMO - ----------------------------------------------------------------------------------------
DENTAL BENEFITS PAYABLE DEDUCTIBLE MAXIMUM SERVICE - ---------------------------------------------------------------------------------------- Class I 100% of network fees None None - ---------------------------------------------------------------------------------------- Class II 90% of network fees None None - ---------------------------------------------------------------------------------------- Class III 80% of network fees None None - ---------------------------------------------------------------------------------------- Class IV 60% of network fees None None - ---------------------------------------------------------------------------------------- IN-NETWORK (PPO) - ---------------------------------------------------------------------------------------- DENTAL BENEFITS DEDUCTIBLE MAXIMUM SERVICE PAYABLE - ---------------------------------------------------------------------------------------- Class I 100% of network None $3000 per calendar (Preventive) fees year per member (Oral Exams) inclusive of Class I, (X-rays) II, III - ---------------------------------------------------------------------------------------- Class II 90% of network fees $100 per calendar $3000 per calendar (Minor year per member year per member Restorative) inclusive of Class II inclusive of Class I, (Periodontal) and III II, III (Fillings) (Root Canals) - ---------------------------------------------------------------------------------------- Class III 60% of network fees $100 per calendar $3000 per calendar (Major year per member year per member Restorative) inclusive of Class II inclusive of Class I, (Crowns) and III II, III (Bridges) (Dentures) - ---------------------------------------------------------------------------------------- Class IV 50% of network fees $100 per member for $1500 per member (Orthodontics) life inclusive of Class for life IV. - ---------------------------------------------------------------------------------------- ARTICLE 22 / Page 7 OUT-OF-NETWORK (PPO) - ---------------------------------------------------------------------------------------- DENTAL BENEFITS DEDUCTIBLE MAXIMUM SERVICE PAYABLE - ---------------------------------------------------------------------------------------- Class 1 100% of reasonable None $500 per calendar (Preventive) and customary year per member (Oral Exams) charges (X-rays) - ---------------------------------------------------------------------------------------- Class II 75% of reasonable None $1250 per calendar (Minor and customary year per member Restorative) charges (Periodontal) (Fillings) (Root Canals) - ---------------------------------------------------------------------------------------- Class III 50% of reasonable $100 per calendar $1500 per calendar (Major and customary year per member year per member Restorative) charges inclusive of Class (Crowns) III (Bridges) Dentures) - ---------------------------------------------------------------------------------------- Class IV 50% of reasonable $100 per member for $1500 per member (Orthodontics) and customary life inclusive of Class for life charges IV. - ---------------------------------------------------------------------------------------- Classes for DHMO same as for PPO
(D) Life Insurance (1) Basic and Additional Life Insurance Basic life insurance shall be provided in accordance with the schedule in paragraph (E)(8) below. Additional life insurance will be made available to each Flight Attendant as follows: (2) Spouse Life Insurance The Company will provide coverage for spouse in the amount of five thousand dollars ($5,000). (3) Child Life Insurance The Company will provide coverage for eligible dependent children in the amount of two thousand five hundred dollars ($2,500) dollars. ARTICLE 22 / Page 8 (E) Group Coverage General (1) The Company agrees to continue group basic life and medical/dental coverage for Flight Attendants furloughed for a period of ninety (90) days from date of furlough. The insurance coverage shall be that in effect on the date of furlough. Flight Attendants can elect, only during this ninety (90) day period, to purchase this same coverage, as a package, at the prevailing group rates for an additional twenty-four (24) months. If elected, this option takes effect on the ninety-first (91st) day from date of furlough. This coverage is not renewable if cancelled at any time. (2) Flight Attendants married to other TWA Employees: In the event that a Flight Attendant elects family coverage and the spouse incurs a claim, the spouse's plan will be primary, making payment first. The Flight Attendant's plan will be secondary for the spouse, just as it would if the spouse were employed elsewhere with employee only coverage unless the spouse's TWA plan provides otherwise. Medical/Dental benefits will be coordinated between the two plans so that the two plans may pay up to 100% of incurred covered expenses, but no more than 100%. (3) Flight Attendants in need of care for substance abuse or mental emotional illness shall have access to Special Health Services whether or not such Flight Attendant is in job jeopardy. The Summary of your Plan and your rights as a Plan participant as required by the Employee Retirement Income Security Act of 1974 appears in the TWA booklet entitled TWA Group Benefits for Flight Attendants effective January 1, 1989 and October 1989, and as further effective November 1, 1994, and January 1, 1995. (F) Outline of Plans (1) Medical Plan: (a) Type of Plan: Comprehensive Medical 90/10 (In- Network); 70/30 Out-of-Network. (b) Inpatient Hospital Charges In Network is 90%, after the Out-of-Network deductible 70% of reasonable and customary charges for semi-private room and board, services and supplies. Surgeon's and anesthesiologists fees for surgery performed while an inpatient; and physician's (other than surgeon's) charges for visits during hospital confinement (note: if surgery is performed, any visit on the ARTICLE 22 / Page 9 day of surgery is excluded); and ambulance. Pre-admission tests will be covered as an In-Patient Hospital expense with First Dollar Coverage, 100% of reasonable and customary charges established by locale, with no deductible, if performed within four days of a planned admission. [See 22(A)]) above.] Hospital bed and board charges incurred between Friday noon and Sunday noon will not be covered if admitted to the hospital during that period unless medical care is administered during that period or the admitting physician is in attendance. Hospital Pre-admission Certification and Continued Stay Review; PAC/CSR Requirements: Pre-Admission Certification (PAC) and Continued Stay Review (CSR) refer to the process used to certify the medical necessity and length of any Hospital Confinement as a registered bed patient. PAC and CSR are performed through a utilization review program directed by Third Party Administrator. PAC should be requested by the employee or her/his Family Member or the Employee's Physician for each Inpatient Hospital admission. CSR should be requested, prior to the end of the certified length of stay, for continued inpatient Hospital Confinement. Expenses incurred for which benefits would otherwise be paid under this Plan will not include the first $300 of Hospital charges made for each separate admission to the Hospital as a registered bed patient unless PAC is received: (a) prior to the date of admission; or (b) in the case of an emergency admission, certification must be made within 48 hours. The amount otherwise payable under this Plan for the Hospital charges listed below will be reduced by 50%: Hospital charges for Bed and Board and necessary services and supplies, during a Hospital Confinement for which PAC is performed, which are made for any day in excess of the number of days certified through PAC or CSR, even if such charges are determined to be medically necessary. ARTICLE 22 / Page 10 No benefits are payable for any Hospital charges made during any Hospital Confinement as a registered bed patient: (a) for which PAC was performed; but (b) which was not certified as medically necessary. In any case, those expenses incurred for which payment is excluded by the terms set forth above will not be considered as expenses incurred for the purpose of any other part of the medical plan, except for the "Coordination of Benefits" section. The Review Organization is an organization with a staff of Registered Graduate Nurses who perform the PAC and CSR process in conjunction with consultant Physicians. As of July 1, 1988, all Flight Attendants should call TWA Special Health Services to obtain approval for inpatient substance abuse and psychiatric admissions. Admissions for such care which are not pre-certified by Special Health Services will result in out-of- pocket costs to the employee, as described above. (c) Hospital Out-Patient for: 1) Emergency care immediately following an accident. 2) Surgery. 3) Chemotherapy. (d) Maximum amounts payable: If a Flight Attendant or one of the Flight Attendant's Family Members incurs Covered Expenses as the result of an injury, sickness or pregnancy, payment will be based on the percentages listed below subject to the specific benefit maximums. 100% of Covered Expenses for charges made by a Physician for treatment of an injury during the 90-day period following the accident, but not more than a maximum of $300 per calendar year. This benefit is payable only for treatment of an injury. Charges in excess of this maximum will be considered under other Covered Expenses which are subject to the Plan deductible and payable at 90% In-Network (70% Out-of- Network); ARTICLE 22 / Page 11 90% of Covered Expenses for charges made by a Hospital for outpatient "emergency care" of an injury within 48 hours after the injury is received. Outpatient care in an out patient facility of an injury for charges will be covered at 90% of covered expenses for In-Network services or 70% for Out of Network. after deductible. This benefit is payable only for treatment of an injury; 100% of Covered Expenses for charges made by a Hospital for tests performed as an outpatient ordered by a Physician as a planned preliminary to admission within four days; In-Network, 90% of Covered Expenses (Out-of-Network, 70% after deductible) for charges made by a Hospital for chemotherapy treatment performed on an outpatient basis; In-Network, 90% of Covered Expenses (Out-of-Network, 70% after deductible) for charges made by a Free- Standing Surgical Facility or the outpatient department of a Hospital for or in connection with outpatient surgery; 100% after $10 co-payment for physician office visit charges. However: In-Network, 90% of Covered Expenses (Out-of-Network, 70% after deductible) for charges made by a Physician for anesthesia or the performance of a surgical procedure, including post-operative care, if performed in a Free Standing Surgical Facility, the outpatient department of a Hospital or a physician's office; 100% of Covered Expenses for charges for outpatient X-ray examinations and laboratory tests for diagnosis of an injury, sickness or pregnancy while not confined in a Hospital, up to $500 for each accident, and $500 for all sicknesses in a calendar year; Charges in excess of these maximums will be considered under other Covered Expenses subject to the Plan deductible; 100% of Covered Expenses for charges made by a Physician for consultation and charges for X-ray examinations and laboratory tests in connection with obtaining a second surgical opinion prior to performance of a surgical ARTICLE 22 / Page 12 procedure. (e) Diagnostic X-Ray and Lab Test: Up to five hundred dollars ($500) for all illness per calendar year per individual. Applies only for diagnosing illness, not preventive. Up to five hundred dollars ($500) per accident per individual. (f) Maternity: Covered as any other illness. (g) Skilled Nursing Facility: 80% after deductible for up to sixty (60) days confinement per person per calendar year based on semi-private room rate. (h) Maximum: Unlimited per individual per lifetime. Deductible: In-Network, two hundred dollars ($200) per calendar year per family; (Out-of-Network, six hundred dollars [$600] per individual/one thousand eight hundred dollars [$1,800] per family) maximum 3 individuals. Stop Loss: In-Network after deductible, if an individual's out-of-pocket Covered Expenses exceed $1,000 (maximum 3 individuals, $3,000 per family) or Out-of-Network after deductible of $3,000 per individual (maximum 3 individuals, $9,000 per family). The Plan pays 100% of any further Covered Expenses incurred by that individual in that calendar year. (i) Mental Illness: Covered Expenses in connection with Non-Hospital confined treatment of mental illness or functional nervous disorder, payment will be made at 80% of Covered Expenses for charges incurred from a psychiatrist or licensed clinical psychologist during a calendar year. The maximum visits in any one (1) calendar year will be thirty five (35). (j) Exclusive Provider Care The Company shall provide for an "Exclusive Provider" organization network for mental illness, substance abuse, and/or psychiatric inpatient care. 1) There will be no change in existing levels for in-hospital treatment for mental illness and substance ARTICLE 22 / Page 13 abuse in Exclusive Provider Facilities. 2) Except as provided in (4)(b) below, in-hospital treatment for mental illness and substance abuse in Non-Exclusive Provider Facilities will be covered at fifty percent (50%) of reasonable and customary covered charges after deductible. 3) The Company and Union will jointly designate hospitals or freestanding facilities as Exclusive Providers for the treatment of mental illness, functional nervous disorders, alcohol abuse, or drug abuse on the basis of the quality of care and competitive cost structures. The list of Exclusive Providers may be changed by mutual agreement in order to satisfy these criteria. 4) (a) The Company and Union will jointly designate a minimum number of such facilities in order to provide a reasonable choice of quality facilities in a given geographic area while affording the Company an opportunity to negotiate significant discounts on provided services. (b) For Flight Attendants and their dependents not residing within one of the twelve designated regions and requiring inpatient mental health and/or substance abuse treatment, TWA will recognize, for the purpose of reimbursement, charges that do not exceed the seventy-fifth percentile for similar services provided within the same geographic area. (k) Home Health Care (l) Coordination of Benefits: YES. (m) Dependent Definition: Spouse, children to twenty-one (21) years; students to age twenty-three (23) and still an employees dependent; mentally or physically handicapped children to any age, so long as one (1) parent remains covered under the Plan. However, coverage for a dependent child will continue through December 31 of the year in which the child attains age 21 or age 23 if the child is ARTICLE 22 / Page 14 enrolled as a full-time student. (n) Financing: Paid by Company. (o) Furloughed Employees: Coverage continued for ninety (90) days. May be continued at Flight Attendant's expense for an additional twenty-four (24) months. (p) No-Fault Integration: Excludes benefits for medical and dental expenses to the extent the individual is indemnified for those expenses under the mandatory portion of any "No Fault" automobile insurance policy. (q) Retired Employees prior to August 1, 1999: Coverage includes hospitalization and surgical. Improvements negotiated for active Flight Attendants will also apply to Flight Attendants who have officially retired on or after November 1, 1994, at age 50 or over who retire under the Flight Attendant Retirement Plan at age 50 or over disability retired while eligible. If retired prior to November 1, 1994 benefit will not be changed. (2) Short Term Disability (a) Basic Earnings: 50% of base pay; maximum $400 per week. (b) Duration: If unable to perform own occupation, payable if disability commences: PRIOR to reaching age 61, until no longer disabled, or up to five (5) years from date of disability or up to age 65, whichever comes first. AFTER age 61 or older, until no longer disabled or for period based on age at disablement (e.g., 3 1/2 years if age 62, reduced per schedule to 1 year if age 69), whichever occurs first. All payments will be discontinued when Flight Attendant actually retires or on 70th birthday. (c) Waiting Period: The later of: (a) 1st day of disability due to an accident, or (b) the 4th day of disability due to sickness (unless confined to hospital before 4th day - then with 1st day of hospital confinement or (c) day after the TWA Sick Leave pay is exhausted. ARTICLE 22 / Page 15 (d) Exclusions: No payment will be made for any disability: (1) which is caused by an injury arising out of, or in the course of any employment for wage or profit; (2) which is caused by sickness for which the Employee is entitled to benefits under any Workers' Compensation Legislation; (3) which commences during any period of work stoppage by any class of employee; (4) during which the Employee is not regularly treated by a Physician; (5) during any period of work stoppage by the class of Employees to which the Employee belonged on the date the disability began; (6) following the date of the Employee's actual retirement. (e) Integration: State disability laws; social security after fifteen (15) months from the date the Flight Attendant becomes disabled. (f) Financing: Paid by Company. (3) Long-Term Disability (4) Accidental Death and Dismemberment (a) Basic monthly earnings Amount of Coverage less than $600 $ 12,500 $ 600 but less than 800 $ 15,000 800 but less than 1,200 $ 17,500 1,200 but less than 2,400 $ 20,000 2,400 or more $ 25,000 (b) Financing: Paid by Company. (c) Restrictions: Risks Excepted - The insurance does not cover, and no payment will be made for, any loss which results ARTICLE 22 / Page 16 directly or indirectly from 1) Suicide or intentionally self-inflicted injury, while sane; 2) Infection (except pus-forming infections resulting from an accident, cut or wound), disease, war or any act of war. (5) Life Insurance (a) Basic Monthly Earnings Basic Insurance less than $ 600 $27,500 $ 600 but less than 800 30,000 800 but less than 1,200 32,500 1,200 but less than 2,400 35,000 2,400 or more 40,000 (b) Additional Life Program Effective January 1, 2000 the existing Voluntary Additional Life Insurance for IAM represented employees will be replaced by a new program described below. The key provisions are: (1) Guaranteed issue upon portability when terminating or retiring from TWA; (2) Guaranteed issue up to plan maximum or $150,000 whichever is lower for new enrollees; (3) Guaranteed rates for three years; (4) Rates shall remain fixed upon portability at retirement; (5) An additional Life Insurance program will be made available for spouses and children of active employees that will include limited portability. ARTICLE 22 / Page 17 Provisions of Additional Life Program at Portability ---------------------------------------------------- Employee Rates ---------------------------------------------------- (Rate / $1000 of Covered Age Rate Payroll)Volume - # < 30 0.10 30-34 0.15 35-39 0.20 40-44 0.25 45-49 0.40 50-54 0.70 55-59 1.10 60+ 2.10 ---------------------------------------------------- (6) Continuation of Insurance Should an active Flight Attendant or a Flight Attendant on approved medical leave die, dependent medical and dental coverage then in effect shall continue for twenty-four (24) months to eligible dependents and to the spouse until remarriage or twenty-four (24) months, whichever is earlier. (7) Work Stoppage Should another group cause a work stoppage, the Flight Attendant benefits plans shall continue (except for existing Disability Claims). (8) Flight Attendant Waiver of Medical Coverage (a) All active Flight Attendants shall be permitted to waive TWA sponsored medical coverage in accordance with the following terms: (1) The employee must certify in writing that he or she is covered by another (non-TWA) medical plan. (2) The employee must certify in writing that the waiver of his or her medical benefits is not prohibited by any court order or court-approved settlement. (3) The waiver must also be signed by the employee's spouse. ARTICLE 22 / Page 18 (4) Election forms for waiving medical benefits must be received by TWA between November 1 and November 30 of the year preceding the calendar year for which the waiver applies. (5) The waiver shall remain in effect for a one-year period commencing January 1. If, however, an employee who waived TWA coverage subsequently loses his or her other coverage prior to the expiration of the one year period, TWA medical coverage shall be reinstated as of the date written notification is received by TWA. TWA may, however, request documentation with respect to the employee's loss of other coverage and may refuse or delay reinstatement of that employee's benefits at TWA's sole discretion. (b) An employee shall receive $500.00 for each full year that he or she is not covered by TWA's medical plan. All such payments shall be paid to the employee at the end of the year. In the event an employee's coverage is reinstated as provided in paragraph (A)(5) above, the employee shall not receive any payment for the year in which coverage is reinstated. (1) Medical benefits for purposes of this waiver program shall include dental benefits. (2) TWA reserves the right to terminate or modify this waiver program if it is determined that the tax-qualified status of TWA's medical plans are adversely affected or if it is determined that the waiver program adversely affects TWA's costs or liabilities. (9) New Hire Coverage Effective with the signing of this Agreement, a 120-day waiting period will be required for all new hire employees' dependents for Medical/Dental/Prescription Drug, and Life Insurance coverage begins. (10) Retiree Medical Coverage Effective October 1, 1999, a new Post-65 PPO Medical Plan, administered by a Company authorized Third Party Administrator will ARTICLE 22 / Page 19 be made available to TWA retirees. The current 65 Plus enrollees will be given the option of converting to the new Post-65 PPO Medical Plan or remaining under the old 65 Plus Plan. All future retirees will only be eligible for the new Post-65 PPO Medical Plan. The Post-65 PPO Medical Plan premiums will be $45.05 per month per member for the duration of the Collective Bargaining Agreement. Provisions of this Post-65 PPO Medical Plan are: ------------------------------------------------------------------------------
Post-65 PPO Medical Plan ------------------------------------------------------------------------------ In-Network Out-of-Network ------------------------------------------------------------------------------ Annual Deductible $750 $1,000 $1,500 $2,000 ------------------------------------------------------------------------------ Hospital Coverage 90% 80% after deductible after deductible and $200 per confinement ------------------------------------------------------------------------------ Coinsurance 90% 80% Scheduled/Units after deductible after deductible ------------------------------------------------------------------------------ Out-of-Pocket $2,000 $3,000 Maximum $4,000 $6,000 ------------------------------------------------------------------------------ Doctor Office 90% 80% Visit after deductible after deductible ------------------------------------------------------------------------------ Prescription Brand 80% Brand 80% Generic 90% Generic 90% ------------------------------------------------------------------------------ Plan Maximum $1,000,000 per insured ------------------------------------------------------------------------------
(11) Bomb Insurance. Bomb Insurance for all IAM employees will be increased to $200,000.00. (12) Aviation Insurance. Aviation Insurance for all IAM employees will be increased to $200,000.00. ARTICLE 22 / Page 20 ARTICLE 23 PHYSICAL EXAMINATIONS (A) REQUIREMENTS An employee shall not be required to submit to any Company physical examinations in excess of one (1) in any twelve-month period without the employee's consent unless it is apparent that his or her health or physical condition is seriously impaired, in which case the employee's personal physician shall be furnished a copy of the Company's medical examiner's report, when so requested in writing by the employee. (B) (1) Flight Attendants Considered Medically Unfit for Duty. The term "medically unfit" as used herein means a prognosis or finding by the Company that the Flight Attendant is, and will continue to be, disabled with limitations which will preclude the Flight Attendant from performing the duties of a Flight Attendant for a period of time which will exceed the five (5) year maximum period for a medical leave of absence. A Flight Attendant who has been found by the Company to be medically unfit to perform the duties of a Flight Attendant shall be administratively dismissed subject to the provisions outlined below. The Company shall inform the Flight Attendant and the IAM Full-Time Representative of its findings and its intent to administratively dismiss the Flight Attendant, by Certified Mail, Return Receipt Requested. (2) NEUTRAL MEDICAL EXAMINATION --------------------------- In the event the Company's physician considers that an employee does not meet the physical requirements of the job as determined by the Company, or in the event the Company's physician considers that an employee meets the physical requirements of the job as determined by the Company, and in either event the employee's physician has made a contrary determination, the employee shall have fifteen (15) calendar days from the date he/she is notified of the contrary determination, to elect to have a third party impartial physician who specializes in the treatment of the medical condition at issue make a determination resolving the contrary determination. If the employee elects a third impartial physician to make such a determination, a third impartial qualified physician will be selected by the Company from the predetermined, mutually agreed upon medical panels to examine the employee. Pending review by a third impartial physician, the employee shall remain in his or her current status. The decision of the third impartial physician will determine the employee's ability to meet the physical requirements of the job (i.e. whether the employee should return to work or not return to work) and shall be final and binding upon the Company and the Employee. For Flight Attendants, the decision of the third impartial physician will determine the employee's ability to meet the physical requirements of the job [i.e. whether the ARTICLE 23 / Page 1 employee shall return to work or not return to work or determine whether or not the employee is permanently unfit to return to work under the meaning of Article 15(b)]. The predetermined medical panels will be mutually agreed upon by both the Company and the Union and will consist of physicians who will be board certified in their respective specialties. The third impartial physician's determination shall be final and binding upon the Company and the employee on the issue submitted. The parties further agree that they shall establish the procedures, forms, and guidelines to be used by the impartial physician in making the determination as to fitness to return to work. The Union shall be entitled to review and approve the Regional Medical Panel facility for determination as to whether or not such facility shall be entitled or qualified to provide the services herein described. The parties shall each appoint one (1) individual for purposes of making the selections. All facilities must be a teaching hospital or affiliated with a medical school. The parties agree that if the third impartial physician determines that the employee has continuously met the physical requirements of the job as determined by the Company, and the Company has held that employee out of service pending this determination, the employee will be reinstated and paid for sick/industrial pay or wages, as appropriate. If, however, the employee has held himself/ herself out of service pending this determination, the employee will receive no back pay for the time period that the third impartial physician determines that the employee should have been in service for the Company. In the event the third impartial physician determines that the employee is unable to return to work and should remain on medical leave, the employee shall be returned to his or her medical leave status. The expense of the employee's physician will be borne by the employee; the expense of the Company's physician will be borne by the Company; and the expense of the impartial physician will be borne by the Company. (C) Procedural Letter of Understanding. The Procedural Letter of Understanding (No. LII) will provide the parameters to be followed in the selection and implementation of Article 23(B) Medical Facilities and the procedures to facilitate the application of Article 23(B). ARTICLE 23 / Page 2 (D) Employee/Company Rights Any information obtained by or as a result of a Company physical examination shall be confidential between and/or among the doctor, the employee, and those supervisory and administrative personnel concerned with the employee's physical condition. The above notwithstanding, there is no intent to restrict the use of medical information necessary to arrive at a correct medical diagnosis or to interfere with the processes of this selection or the grievance sections of this Agreement, or to interfere with or prevent investigations required in legal processes. ARTICLE 23 / Page 3 ARTICLE 24 UNION SECURITY (A) Union Dues Check-off. The Company shall provide the District -------------------- with union dues collected in connection with Union Dues Check-off no later than the 25th day of the month for which the dues have been collected. (B) Union Security -------------- (1) Each employee now or hereafter employed as a flight attendant covered by this Agreement shall, as a condition of continued employment within sixty (60) days following the beginning of such employment or the effective date of this Agreement, whichever is later become a member of the Union, and shall maintain membership in good standing (as described below) in the Union so long as this Section remains in effect; provided, that such condition shall not apply to any employee to whom such membership is not available upon the same terms and conditions as generally applicable to any other member of his/her occupation or with respect to any employee to whom membership is denied or terminated for any reason other than the failure of the employee to tender the initiation and reinstatement fees, assessments, and monthly dues uniformly required of other employees in her/his occupation as a condition of acquiring or retaining membership. (2) The condition of payment shall be met if the amount due is tendered to the Local Lodge Financial Secretary of the Union in person or is mailed to him/her within the prescribed time limits or if the employee has executed a valid assignment and authorization for checkoff of Union initiation, reinstatement, assessments and dues. (3) For purpose of this Agreement "membership in good standing in the Union" shall consist of the payment by the employee not later than the last day of the following calendar month and initiation, reinstatement, fees and assessments (not including fines and penalties) which are uniformly required of other members of his/her classification as a condition of acquiring ore retaining membership, provided however, that the time limits prescribed in the preceding portion of this sentence shall not apply to employees beginning employment in work covered by this Agreement who shall, instead be required to fulfill the requirements of "membership in good standing" within sixty (60) days following the beginning of such employment. (4) Employees on leave of absence, including sick leave, must maintain membership in good standing in the Union. (5) Any employee who has not held membership in good standing with the Union at any time on or after March 6, 1947, who was in the employ of the Company previous to such date shall not be required, as ARTICLE 24 / Page 1 a condition of continued employment, to become a member of the Union as set out above. However, any such employee who, subsequent to the effective date of this Article and during the term of this Agreement, joins the Union, must thereafter maintain his/her membership in the Union as provided in (A) above. (C) Returning to Position. --------------------- (1) When a person holding seniority under this Agreement returns from a position in which he was not covered by the Agreement, he/she will assume his/her obligation to the Union within seven (7) calendar days after return in the same manner, as if he had been continuously employed in such position from the effective date of this Article. (2) Persons on military leave holding seniority under this Agreement shall not be required to maintain good standing in the Union. However, when the employee returns to a position covered by this Agreement, he/she will assume his/her obligation to the Union within seven (7) calendar days after return in the same manner as if he/she had been actively employed in such position on the effective date of this Article. (D) Loss of Membership in Good Standing. When an employee begins ----------------------------------- employment or loses his good standing membership in the Union, because of failure to pay dues and initiation, reinstatement fees and assessments, the following procedures shall be observed: (1) The Local Financial Secretary for the Union for the particular location involved shall notify the employee by registered or certified letter, return receipt requested, with copies to the President-General Chairman, District Lodge 142 IAM, 400 NE 32nd Street, Kansas City, MO 64116 and the Company's Director - Labor Relations, In-Flight, that the employee is delinquent in the payment of dues, initiation or reinstatement fees and assessment as specified herein and accordingly is subject to discharge as an employee of the Company. Such letter shall also notify the employee that she or he make the required payment to the Financial Secretary of the Union's local lodge with jurisdiction at the location where he/she works within fifteen (15) calendar days of the date of mailing of the notice or be subject to discharge under the terms of the Agreement. If the notice above is not received by the employee or is delayed in reaching such employee as the result of the employee's failure to keep both the Company and the Union informed as to his or her correct current mailing address, no extension in the time limit specified in the original notice is required. ARTICLE 24 / Page 2 (2) Upon the expiration of the fifteen (15) day period following the mailing of the notice in subsection (1) above, if the employee still remains delinquent, the President-General Chairman of the Union may certify in writing to the Company's Director - Labor Relations, In-Flight, that the employee has failed to make the required payment within the fifteen (15) day grace period and is, therefore, to be discharged. (3) Within seven (7) calendar days after receipt by the Company of the certified letter set forth in (2) above that the employee is to be discharged the Company shall discharge the employee from its service for failure to pay or tender dues, reinstatement or initiation fees or assessments under this Article. (E) System Board Protest -------------------- (1) If the employee discharged or to be discharged under this Article contends that he or she is not properly subject to discharge under the terms of this Article, he or she may protest such action to the Trans World Airlines Flight Attendants' System Board of Adjustment provided that such protest in writing is mailed to the Board prior to the expiration of the seven (7) days set forth in paragraph D(3) of this Article. If the employee fails to file a protest with the Board, his/her discharge shall be effective upon the expiration of the fifteen (15) day period as set forth in paragraph (D)(3). (2) If a protest is filed as provided in (1) above, such protest shall be submitted in triplicate to the Chairman of the System Board of Adjustment, with one copy to be mailed in care of the Director Labor Relations, In-Flight, TWA, One City Centre, 18th Floor, 515 N. Sixth St., St. Louis, MO 63101 and the other copy to be mailed in care of the President-General Chairman of the Union. The letter to the Chairman of the Board and both copies shall be sent by certified mail, return receipt requested. In the event no protest is so filed within the above time limits, the action will be considered as proper and will be final and binding upon all parties concerned. Within ten (10) days of receipt of such a protest, the System Board of Adjustment will meet and consider the dispute. A representative of the Company, a representative of the Union, and the employee affected will be allowed to present to the Board all evidence and argument which is pertinent to the issue. Prior to the expiration of the work day following such Board meeting, the Board will issue either a majority decision or a notice of deadlock. If a majority decision is issued, it will be final and binding upon all parties concerned. If a deadlock is reached, and if at the time ARTICLE 24 / Page 3 of the deadlock the Board cannot agree upon a neutral to sit with the Board to decide the dispute, the Board will immediately request the National Mediation Board to appoint a neutral, and the Board will meet with him at the earliest opportunity and decide the dispute. At the meeting of the Board, sitting with a neutral, a representative of the Union, a representative of the Company and the employee affected will be allowed to present to the Board all evidence and argument which is pertinent to the issue. A majority decision of the Board, including the neutral, will be issued within five (5) days after such meeting and will be final and binding upon all parties concerned. The expenses and reasonable compensation of the neutral selected as provided herein shall be borne equally by the parties to this Agreement. (3) The provisions of Article 16 shall not apply to disputes arising under this Article, and the provisions of the Agreement establishing a System Board of Adjustment shall apply to such disputes except as they are superseded by the above provisions relating to procedures for handling disputes. (4) During the period a protest is being handled under the provisions of this paragraph (E) and until after final award by the System Board of Adjustment the employee shall not be discharged from the Company as a result of alleged non- compliance with the terms and provisions of this agreement. If a decision is made that the employee should be discharged, the discharge shall be effected the day following the issuance of the decision. In the event a reduction in force occurs during such time as an employee's status is being protested under the provisions of this Article, such employee will be considered as having seniority under this Agreement for purposes of effecting the reduction. (5) Should an arbitration arise out of the application of this Article, the Company shall furnish to IAM no later than seven (7) days prior to the arbitration, its file copy and return receipt green card from the letter of notification to the affected individual. (F) Extension of Time Limits. Time limits specified in this Article ------------------------ may be extended in individual cases only, and then only by written agreement between the Company and the Union. (G) Discharge. An employee discharged under the provisions of the --------- Article shall be deemed to have been "discharged for just cause" within the meaning of the terms of the Agreement. ARTICLE 24 / Page 4 (H) Notice. Unless otherwise specified in this Article 24, all ------ letters and notices provided for by this Article shall be sent by certified mail, return receipt requested. Such letters and notices or copies sent to the Union shall be addressed to the President- General Chairman, District Lodge 142, 400 NE 32nd Street, Kansas City, MO 64116 while those sent to the Company shall be directed to the Director-Labor Relations, In Flight, TWA, One City Centre, 18th Floor, 515 N. Sixth St., St. Louis, MO 63101. (I) Return to Employment Following Discharge or Resignation. When ------------------------------------------------------- an employee is discharged or resigns, she or he will be considered as a new employee for purposes of this Article if she or he returns, at a later date, to pay status under this Agreement. (J) Notification to Employee. Both the Union and the Company, or ------------------------ either of them, shall have the right at any time, to notify individual employees directly of any provisions of this Agreement. (K) Company to Furnish Names. When new employees are hired or ------------------------ transferred into classifications covered by this Agreement the Company will furnish monthly to the Union the names, classification, point of employment and payroll register number of such new employees. The Company will furnish to the Union the names, present and previous classification, point of employment and payroll register number of all employees who may transfer out of classifications covered by the Agreement; in addition, the Company will furnish to the Union the names, location, payroll register number and status of employees covered by the Agreement who terminate their payroll status for any reason, such listings will be furnished monthly. DUES AND INITIATION FEE CHECK-OFF (L) During the life of this Agreement the Company will deduct from the pay of each member of the Union and remit to the Union initiation fees and monthly membership dues uniformly levied in accordance with the Railway Labor Act, as amended, and the constitution and by-laws of the Union, provided such member of the Union voluntarily executes the agreed form, which is hereinafter included in this Agreement to be known as "check-off form", which shall be prepared and furnished by the Union. The Company will not be required to deduct initiation fees and monthly membership dues from the pay of employees covered by this Agreement unless (i) the Company has received a check-off form and has not received a notice of revocation thereof, and (ii) the dues for the employee conform to the applicable dues for employees of his or her classification at his or her point on the system. ARTICLE 24 / Page 5 ASSIGNMENT AND AUTHORIZATION FOR CHECK-OFF OF INITIATION FEES AND UNION DUES TO: TRANS WORLD AIRLINES, INC. I, , (print name), hereby assign to ---------------------------- the International Association of Machinists and Aerospace Workers: A sum of money to cover (initiation)(reinstatement), or (assessments) from the wages earned by me as your employee which sum is to be certified by the District Secretary-Treasurer of the Union. I also assign a sum to be designated by the District Secretary- Treasurer of the Union to cover the standard monthly membership dues, or such monthly membership dues as may hereinafter be established by the Local Lodge, as dues for employees in my present or future classification under the Agreement earned by me or to be earned by me as an employee of Trans World Airlines, Inc. and I hereby authorize and direct you to deduct that amount from my first pay period following my sixtieth (60th) day of employment and remit the same to the District Secretary-Treasurer of the Union. This authorization and direction is made subject to the provisions of the Railway Labor Act, as amended, and in accordance with existing agreement between the Union and the Company. Employee Register No. -------------------------------------------- Classification: -------------------------------------------------- Date: ------------------------------------------------------------ ------------------------------------------------------------------ Signature of Employee ------------------------------------------------------------------ City/State (M) Dues Check-Off Form to Be Furnished to Company. When a member ---------------------------------------------- of the Union properly executes such check-off form, the President- General Chairman of the Union shall forward the original signed copy to the Manager of Payroll, Kansas City Administrative Center, Kansas City, Missouri 64195. A check-off form must be completed in a legible manner or it will be returned to the President-General Chairman of the Union for correction. Any notice of revocation as provided for in this Section or the Railway Labor Act, as amended, must be in writing, signed by the employee and two copies delivered by certified mail, addressed to the President-General Chairman of the Union. Dues deductions will be continued until one (1) copy of such notice of revocation is received by the Manager of Payroll, Kansas City Administrative ARTICLE 24 / Page 6 Center, Kansas City, Missouri 64195, from the President-General Chairman of the Union. Check-off forms and notices received by the Manager of Payroll will be stamp-dated on the date received and will constitute notice to the Company on the date received and not when mailed. (N) Remittance of Union Dues. When a check-off form, as specified ------------------------ herein, is received by the Manager of Payroll fifteen (15) days or more before the issuing date of the first bi-weekly paycheck of the month, deductions will commence with such paycheck and continue thereafter until revoked or canceled as provided in this Article. The Company will remit a check to the Union in payment of all dues collected as soon as practicable after the pay day on which deductions are made, but no later than the 25th day of the month. The remittance of Union membership dues by the Company to the office of the Financial Secretary of District Lodge 142 will be accompanied by two (2) copies of a list for each location which includes (1) names, (2) employee register numbers, (3) location numbers, and (4) individual amounts deducted. (O) Automatic Revocation of Union Dues Assignment. An employee who --------------------------------------------- has executed a check-off form and who has been (1) transferred or promoted to a job not covered by the Agreement, (excluding transfers or promotions on a "Temporary" or "Acting" basis), (2) who quits or resigns from the Company, or is (3) otherwise terminated from the employ of the Company, shall be deemed to have automatically revoked his/her assignment as of the date of such action and if he/she (1) transfers back or returns to a job covered by the Agreement, (2) is rehired, or (3) re-employed, further deductions of Union dues will be made only upon execution and receipt of another check-off form. No deductions of Union dues will be made from the wages of any Flight Attendant who has executed a check-off form and who has taken a leave of absence without pay or who has been laid off. Upon return to work as a Flight Attendant, deductions will be automatically resumed, provided the Flight Attendant has not revoked the assignment in accordance with the other appropriate provisions of this Agreement and of the Railway Labor Act, as amended. (P) Collection of Back Dues. Collection of any back dues owed at ----------------------- the time of starting deductions for an employee, collection of dues missed because the employee's earnings were not sufficient to cover the payment of dues for a particular pay period, and collection of dues missed because of accidental errors in the accounting procedure, will be the responsibility of the Union and will not be the subject of payroll deduction. It will be the Union's responsibility to verify apparent errors with the individual Union member before the representative contacts the Company's Manager of Payroll. (Q) Deduction of Membership Dues From Paycheck. Deductions of ------------------------------------------ membership dues shall be made from one (1) paycheck each month provided there is a balance in the paycheck sufficient to cover the amount after all other deductions authorized by the employee or required by law have been justified. In the event of termination of employment, there shall be no obligation of the Company to ARTICLE 24 / Page 7 collect dues until all such other deductions (including money claims of the Company and the Credit Union) have been made, and such obligation to collect dues shall not extend beyond the pay period in which the employee's last day of work occurs. (R) Recognition of Union Representation. This Article shall be in ----------------------------------- force only so long as the Union continues as the recognized representative of the employees under this Agreement. (S) Indemnification of Company. The Union shall indemnify and save -------------------------- the Company harmless against all forms of liability that shall arise out of or by reason of action taken by the Company which action was requested by the Union under the provisions of this Article. It is agreed that the Company will promptly notify the Union of all claims of liability made against the Company pursuant to such action taken by the Company, and the Company will make every reasonable effort to defend itself against such liability. (T) Definition of Time Limits. For purposes of calculating the time ------------------------- limits prescribed in this Article, the term "days" shall be understood to mean calendar days unless otherwise specified. ARTICLE 24 / Page 8 ARTICLE 25 SAFETY COMMITTEE (A) Establishment of Safety Committee. There is established a --------------------------------- Flight Attendant Safety Committee which shall consist of three (3) members designated by the Union and three (3) members designated by the Company. (1) The Safety Committee shall meet quarterly or on a more frequent basis should a need arise. To ensure prompt resolution of issues and the provide necessary focus and attention to safety concerns, resources of all support groups under the control or jurisdiction of the Vice- President Flight Operations shall be made available to the Committee, to the IAM and to In-Flight Services. Such support group shall include Industrial Safety, Maintenance Engineering, Ground and In-Flight Support Services and Flight Safety. (2) Any recommendations of the Union members of the Safety Committee will be considered in relation to all matters affecting the safety of Flight Attendants. (3) The Company shall assume all costs for three (3) IAM designees who are members of the Accident Investigation Team and Critical Incident Response Program (CIRP), including Critical Incident Response Team. The Company will also assume all costs related to initial and recurrent training and equipment purchases for three (3) members who are so designated by the IAM. The three (3) Team members will be compensated on a trips missed or daily rate basis, whichever is greater. All out of pocket expenses incurred by the three (3) team members shall be paid by the Company. (B) Notification of Accident or Incident. In the event of an ------------------------------------ accident or incident involving a TWA aircraft, a hostage or assault situation, or a mid-trip injury or illness requiring the hospitalization of a Flight Attendant, TWA Systems Operational Control shall notify the IAM Director of Safety and Health or other IAM designee via electronic pager. The Union shall be included in the current notification process that has been established in conjunction with the Company. A Company designee, or the Company members of the Safety Committee, shall, upon request, confer with the Union Director of Safety and Health or IAM designee, or the Union members of the Safety Committee, to provide other relevant information and discuss matters pertaining to the affected Flight Attendants. (C) Travel to Investigation Site. In addition, the Company shall ---------------------------- arrange positive space on-line transportation (or the same transportation used by TWA in the positioning of its personnel) to the Union Director of Safety or IAM designee, Accident Investigation Team Members and CIRP Team members for travel from any location to the site of any accident, incident, injury/casualty situation, ARTICLE 25 / Page 1 assault or hostage-taking incident, so that, IAM can participate in any investigation regarding Flight Attendant procedures or duties or the role of the Flight Attendants in the specific situation and provide aid to affected Flight Attendants covered by this Agreement. (D) OSHA 2000 Logs. On a quarterly basis, the Company shall provide -------------- to the IAM Director of Safety copies of the current OSHA 2000 log maintained at each domicile. (E) Acquisition of New Aircraft or Reconfiguration of Existing ---------------------------------------------------------- Aircraft. In the process of acquisition of new aircraft or -------- redesign/reconfiguration of existing aircraft, the Company shall notify the Union of the major changes in aircraft configuration or interior design expected in the implementation of the new or redesigned/reconfigured aircraft. To the extent possible and/or practical, prior to the introduction of the new/reconfigured aircraft, the Company will arrange to meet with the Union for purposes of the Union offering comments and suggestions in the interests of cabin safety and efficiency. The Company will provide on-line positive space transportation for two (2) designees of the Union to attend the meeting. (F) Advisory Capacity; Non-Liability of Union. It is agreed that ----------------------------------------- the Safety and Health Committee acts exclusively in an advisory capacity regarding Health and Safety related issues and that the Union, and its officers, agents and employees shall not be liable for any unsafe working condition or work-connected injuries, disabilities or diseases which may result from the implementation of Union suggestions and/or recommendations. ARTICLE 25 / Page 2 ARTICLE 26 AIRCRAFT CREW COMPLEMENT (A) BASIC CREW COMPLEMENT The Company has agreed to basic crew complements by equipment type, both Domestic and International for commercial and charter flights. (1) International Type of Aircraft Basic Crew Complement ---------------- --------------------- 747 1 FSM 9 C/As 747 SP 1 FSM 7 C/As 1011 1 FSM 7 C/As 767 1 FSM 4 C/As 767-300 1 FSM 4 C/As 727-231/737/MD-80/DC-9-50 1 FSM 3 C/As DC-9-10/30/40 1 FSM 2 C/As (2) Domestic Type of Aircraft Basic Crew Complement ---------------- --------------------- 747 1 FSM 8 C/As 747SP 1 FSM 6 C/As 1011 1 FSM 6 C/As 767 1 FSM 4 C/As 767-30 1 FSM 4 C/As 727-231/737/MD-80/DC-9-50 3 C/As DC-9-10/30/40 2 C/As Note: The Company shall assign a Flight Service Manager on all aircraft which operate outside the contiguous 48 United States, Alaska and Puerto Rico. (B) FEDERAL AVIATION ADMINISTRATION MINIMUM STAFFING REQUIREMENT Type of Aircraft FAA Minimum ---------------- ----------- 747 9 747SP 6 1011 6 767 4 767-300 5 727-231/MD-80/DC-9-50 3 DC9-10/30/40 2 ARTICLE 26 / Page 1 On commercial and charter flights where there is no service the Company reserves the right to operate such flights pursuant to FAA staffing requirements. Note: FAA minimum requirement is one (1) Flight Attendant per every fifty (50) passenger seats. (C) ADDITIONAL CABIN STAFFING Cabin Attendant staffing in addition to the above for all International and Domestic flights shall be determined by the Company in accordance with requirements of service and projected loads. (D) DEMAND STAFFING - VARIABLE STAFFING (VSU) TWA and the IAM mutually acknowledge that the segment-by-segment Cabin Attendant staffing, i.e. variances from Basic Crew Complement as determined by aircraft type, operation, service requirements, etc., in individual flight segments will: (a) materially affect the work load of Flight Attendants comprising the Cabin Crew; (b) enhance the Company's ability to respond quickly to market and service demands in an ever-changing airline transportation environment and; (c) provide TWA the opportunity for greater Cabin Attendant utilization and efficiency. It is therefore agreed that, subject to the following conditions and notwithstanding the provisions above, TWA may establish a variable cabin staffing unit or program (VSU) whereby, on a segment-by- segment basis, Cabin Attendant crew staffing levels may be increased above, or reduced below, those contained in the Basic Crew Complement in effect in actual operation at the time of the Agreement. (1) TWA, in consultation with the IAM Scheduling Committee, and based on projections then made as to passenger load and service requirements, may construct for bid pairings and/or segments with a Cabin Attendant Crew Complement at, above, or lower than that prescribed in the Basic Crew Complement; (2) At any time following construction of monthly pairings, and throughout the month, the Company's [VSU/Operational Planning Unit/Scheduling Unit - as appropriate] may decide to staff additional Cabin Attendants on any segment(s) based on passenger load, service requirements, marketing/ competitive consideration, or any other reason; (3) Subject to the provisions of Article 18(D)(7), VSU additional postings/pairings shall be posted in open time and made available to bidholders for self-balance; (4) VSU positions not filled by bidholders shall be placed in a pool from which reserve assignments will be made during the appropriate call-in periods; ARTICLE 26 / Page 2 (5) Staffing of Flight Service Managers as required by this Agreement shall not be reduced by virtue of provisions of this Section (D); (6) Consistent with the principles of participative management embodied in this Agreement, and in recognition of employee ownership of this Airline, TWA's VSU Director or other appropriate designer shall meet regularly with, and as requested by, the IAM Director of Scheduling to jointly review VSU variable staffing determinations; trends in Crew Planning; market and competitive considerations affecting cabin staffing; and any other matters that may be relevant to determination of cabin staffing levels and requirements as well as Cabin Attendant in-flight work load. The function will be incorporated into an existing operational department. ARTICLE 26 / Page 3 ARTICLE 27 REOPENERS (A) Foreign Bases ------------- Should the Company decide to establish foreign bases outside the contiguous forty-eight (48) United States and Washington, D.C., it shall promptly notify the IAM. Thereafter conferences may, irrespective of any provisions of Article 28 (Duration) of the Agreement be initiated by either the Company or the Union under the provisions of the Railway Labor Act, as amended, for the purpose of negotiating rates of compensation, rules and working conditions with respect thereto. (B) Merger, Purchase, Acquisition, Absorption ------------------------------------------ In the event the Company purchases, acquires or absorbs another airline or portions thereof, or in the event the Company or a portion thereof is purchased, acquired or absorbed by another airline, or in the event the Company merges with another airline, the Company will promptly notify the Union and conferences may irrespective of any provisions of Article 28 (Duration) of the Agreement, be initiated by either the Company or the Union under the provisions of the Railway Labor Act, as amended for the purpose of negotiating rates of compensation, rules and working conditions with respect thereto. (C) Deregulation ------------- In the event that the Company, because of the enactment of Federal legislation on the deregulation of the Air Transport industry, undertakes a major restructuring of its existing routes which seriously and adversely affects the Company and/or the employees covered by this Agreement, conferences may, irrespective of any provisions of Article 28 (Duration) of the Agreement, be initiated by either the Company or the Union under the provisions of the Railway Labor Act, as amended for the purpose of negotiating rates of compensation, rules and working conditions for such operation. (D) Wage Controls, Deferrals, Cut-Backs ----------------------------------- Should the Federal Government institute any form of wage controls, review or reporting requirements, the parties to this Agreement shall meet and jointly prepare any and all reports to be filed with the Government. Further, should any portion of this Collective Bargaining Agreement be deferred or cut back by action of the Federal Government, the Union irrespective of any provisions of Article 28 (Duration) of such Agreement, shall have the right to initiate conferences under the provisions of the Railway Labor Act, as amended, for the purpose of negotiating rates of compensation in compliance with Government requirements. ARTICLE 27 / Page 1 ARTICLE 28 DURATION OF AGREEMENT This Agreement signed this 1st day of August, 1999 shall supersede and take precedence over all agreements, supplemental agreements, amendments, letters of understanding, except those contained herein, and similar documents executed between the Company and the Union prior to signing of this Agreement, except as modified herein. Except as specified in this Agreement, this Agreement shall be effective August 1, 1999, shall remain in effect until January 31, 2001, and thereafter shall renew itself without change for yearly periods after the amendable date unless written notice of intended change is served in accordance with Section 6, Title 1 of the Railway Labor Act, as amended, by either party hereto, at least 90 days prior to the amendable date in each year. IN WITNESS WHEREOF, the parties have signed this Agreement on August 1, 1999 For the Company: Trans World Airlines, Inc. /s/ William F. Compton President and Chief Executive Officer Witness: Bette E. Dubinsky Director, Labor Relations Terry L. Hayes Managing-Director, Labor Relations For the Flight Attendants in the Service of Trans World Airlines, Inc. as Represented by the International Association of Machinists and Aerospace Workers /s/ William O'Driscoll President and Directing General Chairman /s/ Sherry L. Cooper /s/ Michael Woicekowski General Chairperson IAM Negotiating Committee Member /s/ Art Teolis /s/ Cynthia Jones General Chairperson IAM Negotiating Committee Member /s/ C.W. Numrich General Chairperson ARTICLE 28 / Page 1 ARTICLE 29 LETTERS AND AGREEMENTS
SUBJECT LTR. NO. PAGE In-Flight Service Performance Policy I 3 Labor Advisory Board II 6 Revised Attendance Control Program III 8 Language of Destination [8/1/78] IV 13 Language of Destination [9/1/92] V 16 Language of Destination - German Corridor VI 18 Language of Destination [5/31/94] VII 20 In-Flight Sales Incentive Program [6/8/89] VIII 21 In-Flight Sales Incentive Program [3/15/91] IX 22 In-Flight Sales Incentive Program [1/27/93] X 23 In-Flight Sales Incentive Program [3/6/94] XI 24 In-Flight Sales Incentive Program [9/22/94] XII 25 Joint Statement of Marketing Objective [9/22/94] XIII 26 Paycheck Distribution XIV 27 Retirement Savings Plan Investment Committee XV 28 Retirement 'A' Plan Rollover XVI 30 Ozark Flight Attendants Entry into TWA Retirement Plan [6/15/90 and 7/1/90] XVII 31 Recall/Bypass XVIII 35 Advocate on Furlough [4/5/95] XIX 42 Flight Service Manager - Narrowbody XX 43 Flight Service Manager Rotating Reserve XXI 44 Redeployment of In-Flight Service Supervisors [6/6/76] XXII 45 Redeployment of In-Flight Service Supervisors [7/21/76] XXIII 46 CAMS Home Access/Reserves Over Cap XXIV 47 Random Substance Testing [9/22/94] XXV 50 Joint Drug Policy (Appendix Letter of Agreement) XXVI 55 Drug Test Technician [5/18/95] XXVII 58 Maternity Leaves of Absence - Unemployment XXVIII 59 747 SP Agreement XXIX 60 Re-Engineering of TWA [9/22/94] XXX 64 Order of Removal -- Ground Service Manual [9/22/94] XXXI 70 Preferential Bidding [9/22/94] XXXII 71 IFFA-TWA pay Study Committee XXXIII 72 Voluntary Release of Layover Hotel Rooms [9/22/94] XXXIV 73 Direct Report [5/31/94] XXXV 74 PTO Computer Mask [6/1/94] XXXVI 75 Code 4/UBS Override [7/28/94] XXXVII 76 Professional Standards [8/1/94] XXXVIII 77 Ok'ing Reserve Assignment and Changes to Bid Awards [2/9/95] XXXIX 80 Reserve Spreads [4/19/95] XL 81 Workers' Compensation Task Force XLI 82 ARTICLE 29 / Page 1 Amendment to Article 24 (R) -- Deduction of Membership Union Dues [10/10/95] XLII 83 Reserve Spreads XLIII 84 Downtown Layover Hotels XLIV 85 Reserve Trading XLV 86 Reserve Assignment Set-up/Call-in Periods XLVI 88 Union Dues XLVII 90 Uniforms XLVIII 91 Mental Health/Substance Abuse Program XLIX 93 757 Staffing Agreement L 94 Pension Plan Contributions LI 96 Procedural Letter of Understanding (Article 23(B)) LII 97
ARTICLE 29 / Page 2 LETTER I - IN-FLIGHT SERVICE PERFORMANCE POLICY LETTER OF AGREEMENT IN-FLIGHT SERVICE PERFORMANCE POLICY I. PHILOSOPHY A. TWA is committed to providing a superior service to its customers. Every employee of TWA is expected to be dedicated and sensitive to this commitment. B. Well developed competitive standards of service, when consistently applied, will ensure that our customers perceive excellence in TWA. All members of TWA In-Flight Services and IFFA are expected to be committed to: 1. Professional presentation of TWA's on-board product; 2. Personal attention, to each TWA customer consistent with the delivery of overall service, passenger load, staffing and duration of flight; 3. A helpful, courteous, and responsive attitude; 4. A gracious and friendly cabin atmosphere; 5. A cooperative team spirit. C. To these ends, TWA In-Flight Services is committed to fully supporting its Flight Attendants by providing guidance, counseling and positive reinforcement necessary for the achievement of customer service excellence. II. ANALYSIS OF PERFORMANCE FEEDBACK A. Delivery of In-Flight Service in accordance with TWA's Customer Service philosophy and standards will be measured through feedback received from, but not limited to the following: 1. Customers; 2. TWA Flight Attendants; 3. Supervisors; 4. IFFA; 5. Quality assurance observers; 6. Company employees; 7. Outside contractors, e.g., catering and security personnel. B. Reflecting the high level of service normally provided by TWA Flight Attendants, the majority of In-Flight Service feedback is positive. In accordance with existing practice positive feedback will be relayed to Flight Attendants with letters/notes of appreciation and will also be included in their personnel files. C. Negative feedback will be carefully and fairly analyzed. Such analysis shall be conducted so as to pursue the truth, to qualify, validate or invalidate a negative report/perception. The factors to be considered in the analysis may include, but are not limited to: 1. Relevant flight reports/flight attendant feedback; 2. Pilot debrief reports; ARTICLE 29 / Page 3 3. Station reports; 4. Quality assurance reports; 5. Customer correspondence and feedback; 6. Passenger load and aircraft staffing; 7. Delays; 8. Provisioning discrepancies; 9. Mechanical problems; and 10. Emergency situations. D. Where such information exists and provides adequate explanation for any perceived service deficiency, no further action will be taken. E. Where follow-up action with the involved Flight Attendant(s) is determined to be necessary, the In-Flight Service Supervisor must view each individual as a separate and distinct case. Along with the provisions of the contract and the perceived discrepancy, the supervisor must consider: 1. The entire two-year time frame of each Flight Attendant's performance record; 2. The nature of each prior discrepancy; 3. The frequency of prior discrepancies; 4. Treatment of similar Flight Attendants in similar circumstances; 5. The overall work record and seniority of the Flight Attendant; 6. The gravity of the instant discrepancy; and 7. The Supervisor's own feelings as to the necessity for and probable success of the discipline -- a "common sense" rule that asks the question, "Will a correction occur without the imposition of discipline?" F. When valid constructive performance feedback is received that warrants dissemination to the Flight Attendant, but -- in the Supervisor's judgement -- does not warrant an informal or formal disciplinary meeting, such feedback shall be routed to the Flight Attendant, for her/his information. G. When it is determined, based on the steps covered above, that the Flight Attendant's service performance has been below TWA's published standards, and further action is deemed appropriate, the following shall apply: 1. The primary objective of the In-Flight Service Performance Policy being positive reinforcement, perceived performance deficiencies shall be addressed primarily through instruction and counseling between the Supervisor and the Flight Attendant. Discipline, including letters of reprimand, may be utilized: (a) where there is a basis for believing that improvement will not result from positive reinforcement through instruction and/or counseling; or (b) where prior instruction or counseling for similar performance deficiency(ies) have failed to yield required improvement; or (c) where the Flight Attendant's action/inaction, considered alone, constitutes more than a performance deficiency, but ARTICLE 29 / Page 4 rather a violation of General Rules of Conduct or Personal Rules of Conduct or any action deemed gross misconduct. 2. When the Supervisor schedules a meeting with the Flight Attendant, notice of such meeting shall be provided to the Flight Attendant and to the IFFA Full-time domicile representative in accordance with Article 16. 3. When disciplinary action resulting from negative performance feedback is warranted, such discipline shall be handled in accordance with the steps of Progressive discipline and Article 16 Progressive discipline and Article 16 Progressive discipline and Article 16 Progressive discipline and Article 16 Progressive discipline and Article 16 Progressive discipline and Article 16 Progressive discipline and Article 16 Progressive discipline and Article 16 Progressive discipline and Article 16 progressive discipline and Article 16. a. When a Flight Attendant receives performance feedback which warrants a conference, a discussion will be scheduled. The Supervisor will outline the Customer Service Philosophy/Standards and establish a clear understanding of why the employee's action/discrepancy warrants attention. When validated by the investigatory hearing and when appropriate, in accordance with the steps of progressive discipline, a formal warning letter may be sent to the employee, notifying the employee of the Supervisor's intent to take disciplinary action. b. If the specific performance and/or behavior deficiency(ies) identified are considered egregious in nature and validated by the investigatory hearing, it may result in a disciplinary letter of warning with disciplinary suspension or a letter of intent to terminate employment. ARTICLE 29 / Page 5 LETTER II LETTER OF AGREEMENT LABOR ADVISORY BOARD September 1, 1992 Ms. Victoria L. Frankovich President Independent Federation of Flight Attendants 630 Third Avenue New York New York 10017 Dear Ms. Frankovich: This will confirm our agreement reached during negotiations that Trans World Airlines, Inc. ("TWA") will establish and maintain a Flight Attendants' Labor Advisory Board of which the initial members shall be a Vice Chairman of TWA and two representatives of the Independent Federation of Flight Attendants ("IFFA"). The Labor Advisory Board will meet at least quarterly and at least five (5) business days prior to each quarterly scheduled TWA Board of Directors (the "Board") meeting and, to the extent practicable, each special Board meeting. At the option of any of its members, such meeting may be had by telephone. Otherwise, such meetings shall be held at the TWA offices in Mt. Kisco, New York or at such other location in the New York metropolitan area as the members shall select. The IFFA representatives who are members of the Flight Attendants' Labor Advisory Board shall have the right to submit twenty (20) typewritten pages in length to the Board in connection with any regularly scheduled meeting or, to the extent practicable, any special meeting. If not satisfied with the report concerning the Board's consideration of any such written presentation or suggestion, with the unanimous agreement of all of its members, the Labor Advisory Board shall have the right to appear at the next regular Board meeting or the next special Board meeting, to the extent practicable, for the purpose of making such presentation or suggestion in person. If any other craft or class of employees of TWA represented by a labor organization shall obtain more favorable corporate governance participation rights than those provided for in this letter, TWA shall extend such more favorable corporate governance participation rights to IFFA. TWA's representative of the Flight Attendants' Labor Advisory Board shall serve as the Flight Attendants' Labor Advisory Board's official liaison with Senior management of TWA and the Board. The responsibilities of TWA's representative on the Labor Advisory Board shall be to advise the Senior management of TWA and the Board. As appropriate, TWA agrees to make members of Senior management available to the Labor Advisory Board on reasonable notice. If the Vice Chairman initially designated by TWA to serve on the Labor Advisory Board shall be unavailable for any reason to serve in the capacity specified in this letter, the ARTICLE 29 / Page 6 TWA Board shall, after consultation with the other members of the Flight Attendants' Labor Advisory Board, designate a successor who shall be reasonably acceptable to the remaining members of the Flight Attendants' Advisory Board. Very truly yours, William L. Schecter ACCEPTED AND AGREED - ------------------------------- Victoria L. Frankovich ARTICLE 29 / Page 7 LETTER III REVISED ATTENDANCE CONTROL PROGRAM The following program calls for the elimination of any requirement for Flight Attendants to attend discussions regarding legitimate illnesses or dependability discrepancies with a Management person through the "Second Warning" letter in the Company Attendance Control Program. Individual attendance control letters will not be subject to the grievance procedure but the grievances of any Flight Attendants progressing to the "Final Warning" and "Intent to Terminate" stages, if timely appealed, will be scheduled on a monthly basis to have their case heard before a Neutral Arbitrator at an expedited arbitration. 1. After each dependability discrepancy or recorded absence from duty, a Flight Attendant's attendance record for the past 24 months (in the form of a copy of a printed JXHAF record) will be deposited in the Flight Attendant's mailbox after the Flight Attendant's return to duty. A copy of the attendance record will also be delivered to the domicile Union Representative after the Flight Attendant's return to duty. A pre-printed note will be attached to each record indicating that an absence or dependability discrepancy was recently recorded and that the Flight Attendant should insure that the record is correct. If it appears that an error has been made, the Flight Attendant should contact his/her supervisor to resolve the discrepancy within 30 days of the date of distribution of the JXHAF record. 2. After each dependability discrepancy or recorded absence from duty, a Flight Attendant's attendance record will be reviewed. If the record is sufficient to warrant concern by management, a non- disciplinary note will be attached to the JXHAF record containing the same information as the note in item 1 above but will also indicate that the attendance record indicates a pattern of absence or dependability that requires the Flight Attendant's attention. The note ("Informal Warning Notice") will inform the Flight Attendant that if a correction in attendance is not noted the Flight Attendant may be placed on the Company Attendance Control Program. A copy of the note and the JXHAF record will be placed in the Flight Attendant's personnel file under Article 19 and the Union will receive a copy. 3. Flight Attendants who have received an "Informal Warning Notice" will progress to a "First Warning" if they continue to incur absences and/or dependability discrepancies that are considered to be excessive by the Company. If the record indicates a frequency, length or pattern of absence or undependability that is considered excessive by the Company, the Company will notify the Flight Attendant that the Flight Attendant is being placed on an Attendance Control Program. Notification will take the form of a certified letter written to the Flight Attendant's address of record, delivered after the Flight Attendant's return to duty, indicating why the dependability is considered unsatisfactory and including a copy of the JXHAF for the past twenty-four (24) months containing the most recent absence or dependability discrepancy. This letter is considered to be the "First Warning" (Letter A) and will inform the Flight Attendant that a correction in attendance and/or dependability is expected or the Flight Attendant will progress to the next stage in the Attendance Control Program. A copy of the "First Warning" letter will be placed in the Flight Attendant's personnel file and the Union will receive a copy. ARTICLE 29 / Page 8 4. Flight Attendants who have received a "First Warning" will progress to a "Second Warning" if they continue to incur absences and/or dependability discrepancies that are considered to be excessive by the Company. Notification of the "Second Warning" (Letter B) will be by certified mail to the Flight Attendant's address of record after the Flight Attendant's return to duty and will include a copy of the JXHAF for the past twenty-four (24) months containing the most recent absence or dependability discrepancy. "Letter B" will indicate why the dependability is considered unsatisfactory and inform the Flight Attendant that a correction is expected or the Flight Attendant will progress to the next stage in the Attendance Control Program. A copy of the "Second Warning" letter will be placed in the Flight Attendant's personnel file and the Union will receive a copy. 5. Flight Attendants who have received "Formal Warning" letters (A, B, or C) and who incur additional absences or dependability discrepancies that warrant concern on the part of the Company but do not necessarily indicate a need to progress to the next level in the Attendance Control Program may receive an "Exception Letter" (Letter E). "Letter E" will indicate why the latest absence or dependability discrepancy is of concern and that a correction in attendance dependability continues to be expected or the Flight Attendant will progress to the next stage in the Attendance Control Program. A copy of "Letter E" will be placed in the Flight Attendant's personnel file and the Union will receive a copy. 6. Access to the grievance procedure for the receipt of JXHAF Attendance Records, the attached "Informal warning notice", "First Warning" or "Second Warning" letters is limited to the question of whether or not the absence and/or discrepancy have been accurately recorded on the attendance record. Attendance records or dependability discrepancies to which no objection has been indicated in writing by the Flight Attendant within 30 days of distribution of the JXHAF record will be considered to be accurate and not subject to grievance as to the occurrence of the absence or discrepancy. 7. Flight Attendants who have received a "Second Warning" and continue to incur absences and/or dependability discrepancies that are considered to be excessive by the Company will be scheduled for a discussion and investigation under Article 16. Based on the outcome of the investigation, a letter of "Final Warning" (Letter C) may be sent. "Letter C", sent via certified mail, to both the Flight Attendant's address of record and the IFFA Full-time domicile representative, will indicate why the Flight Attendant's dependability is considered unsatisfactory and inform the Flight Attendant that a correction is expected or the Flight Attendant will be subject to termination of employment. Flight Attendants receiving a "Final Warning" letter will be scheduled to have their cases reviewed by a Neutral Arbitrator at the next expedited attendance arbitration, scheduled in accordance with Paragraph 9. At issue in this expedited arbitration is the just cause for the Company's actions, pursuant to Article 16(C)(8) of the Agreement, taking into account each of the "Formal Warning" letters measured against the Flight Attendant's overall attendance record, consistent with Article 19(B) of the Agreement. ARTICLE 29 / Page 9 8. Flight Attendants who have received a "Final Warning" and continue to incur absences and/or dependability discrepancies that are considered to be excessive by the Company will be scheduled for a discussion and investigation under Article 16. Based on the outcome of the investigation, a letter of "Intent to Terminate" (Letter D) may be sent. "Letter D", sent via certified mail, to both the Flight Attendant's address of record and the IFFA Full- time domicile representative, will indicate why the Flight Attendant's dependability is considered unsatisfactory and inform the Flight Attendant that the Company intends to terminate the Flight Attendant's employment. Flight Attendants receiving an "Intent to Terminate" letter will be scheduled to have their cases reviewed by a Neutral Arbitrator at the next expedited attendance arbitration, scheduled in accordance with Paragraph 9. At issue in this expedited arbitration is the just cause for the Company's Intent to Terminate, pursuant to Article 16(C)(8) of the Agreement, taking into account the Flight Attendant's attendance record subsequent to the issuance of a Final Warning Letter as upheld by the Neutral Arbitrator pursuant to Paragraph 7 above. 9. Expedited attendance arbitrations before a Neutral Arbitrator will be scheduled, to the extent practical, in the third calendar week at each domicile. If four or fewer total "Final Warning" and/or "Intent to Terminate" letters have been issued by the last day of the preceding month at the domicile, the scheduled arbitration may be postponed by the Company until no later than the following month, or, upon mutual concurrence between the Company and the Union, be combined with a scheduled expedited arbitration at another domicile. Not later than the day prior to such hearing the Company will provide the Union with copies of all grievance related materials that the Company plans to introduce at the hearing. The Company will not be required to provide documents already furnished to the Union under paragraphs 1 through 8, above. Any Flight Attendant whose grievance was the subject of an expedited arbitration shall have the right to attend, or decline to attend, the expedited arbitration hearing. If the Flight Attendant is precluded from attending the scheduled expedited arbitration by an assigned Company duty, the Company will agree to remove the Flight Attendant from the assigned duty and credit the Flight Attendant with the daily rate for the day(s) of the expedited arbitration. Based on the length of the assigned duty the Flight Attendant was removed from, the Flight Attendant may be subject to balance under the terms of Article 18. 10. Flight Attendants achieving twelve (12) consecutive months of perfect attendance, or 24 consecutive months of dependability that is considered by the Company to be acceptable, will be removed from the Attendance Control Program. 11. Nothing in any of the preceding paragraphs is intended to prohibit the Flight Attendant from initiating discussions, meetings or phone conversations with management regarding the Flight Attendant's attendance record or the Company Attendance Control Program. /s/ William L. Schecter /s/ Victoria L. Frankovich ARTICLE 29 / Page 10 1. The base measurement for determining the success of the Revised Attendance Control Program will be an average of the Flight Attendant total monthly pay hours charged to Personal Illness (Pay code 1) and Industrial Injury (Pay codes 21 and 22) per active Flight Attendant (MA 210) in the years 1989, 1990 and 1991 (i.e., 5.21 average monthly pay hours lost per Flight Attendant). 2. Should the Company's average annual pay hours charged to Personal Illness and Industrial Injury decrease, when compared with the base measurement, in any of the years covered by the term of this Agreement, the Company shall return the savings to the Flight Attendants achieving perfect attendance in the comparison year. a. The amount of savings shall be determined in the following way: (1) Determine the average annual pay hours per average active Flight Attendant charged to Personal Illness and Industrial Injury in the comparison year by totaling the pay hours charged to codes 1, 21 and 22 and dividing that total by the average active Flight Attendant headcount listed in Management Account (MA 210). (2) Subtract the comparison year average active pay hours charged to personal illness and industrial injury [determined in Paragraph 2(a)(1)] from the base measurement average pay hours [determined in Paragraph 1] to obtain the average pay hours saved. If the number is positive, a saving has occurred. (3) Multiply the average pay hour savings [determined in Paragraph 2(a)(2)] by the average active Flight Attendant headcount (MA 210) in the comparison year to obtain total pay hours saved. (4) Multiply total pay hours saved [determined in Paragraph 2(a)(3)] by the average annual pay hour rate in the comparison year employed by the Payroll Department in determining the charges assigned to lost time in MA 218 (total Flight Attendant pay per month divided by total Flight Attendant pay hours for the month). This yields the dollar savings associated with the reduced lost time in the comparison year. b. The bonuses will be distributed to individual Flight Attendants by no later than May 1 of each year. c. The gross amount of the individual Flight Attendant bonus shall be determined by dividing equally the savings [determined in Paragraph 2(a)(4)] by the number of Flight Attendants on the seniority list on December 31 of the comparison year who were active for the entire year and who achieved perfect attendance in the comparison year. d. Such comparison of and distribution of savings, if applicable, shall continue so long as the Revised Attendance Control Program stays in place. In the event the Revised Attendance Control Program is ARTICLE 29 / Page 11 modified or terminated, the comparison of and distribution of savings, if applicable, shall continue for the term of this Agreement, regardless of what attendance control program may be in effect, and shall then terminate one week prior to the amendable date of the Agreement, absent agreement to the contrary. Further, it is the intent of the parties that, absent such agreement to the contrary, this provision is not subject to the status quo provisions of the Railway Labor Act. 3. The Revised Attendance Control Program is being implemented by the Company as a test program. The duration of the test shall be twenty-four (24) months following its implementation, after which the Company shall have the right to continue or to terminate this test program and revert to the current attendance control program or such other program it may devise which is not in conflict with the collective bargaining agreement. Should the Company elect to terminate this test program, it shall provide IFFA sixty (60) days advance notice in writing. Further, the Company shall, upon request, consult with IFFA regarding the Company's plans to revise its attendance control program, but the Company shall be under no obligation to secure the agreement of IFFA prior to implementing any such revision to its attendance control program. 4. In the event the Company elects to terminate the Revised Attendance Control Program, each Flight Attendant's attendance record for the twenty-four (24) months preceding such termination will be reviewed and the appropriate discussion pursuant to the Attendance Control Program which was in effect prior to this Agreement will be initiated at such time when a Flight Attendant's subsequent attendance record so warrants. 5. The parties recognize that it is in their mutual interests to attempt to find means to reduce lost time, avoid undue criticism of Flight Attendants, limit the amount of time spent in filing and processing grievances and to return to Flight Attendants in the form of bonuses the benefit of improved attendance. The parties further recognize that it is in their mutual interests to accomplish these objectives through fair, consistent and equitable application of the Revised Attendance Control Program. To these ends, the Customer Service Panel to be established pursuant to this Agreement will, at its quarterly meetings, review the application of the Revised Attendance Control Program and confer regarding any suggested improvements to the program and/or problems brought before the Panel. ARTICLE 29 / Page 12 LETTER IV - LANGUAGE OF DESTINATION (8/1/78) LETTER OF AGREEMENT BETWEEN TRANS WORLD AIRLINES, INC. AND THE FLIGHT ATTENDANTS IN THE SERVICE OF TRANS WORLD AIRLINES, INC. AS REPRESENTED BY THE INDEPENDENT FEDERATION OF FLIGHT ATTENDANTS 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 TRANS WORLD AIRLINES, INC. (hereinafter known as "Company") and the Flight Attendants as represented by the INDEPENDENT FEDERATION OF FLIGHT ATTENDANTS. WITNESSETH: LANGUAGE OF DESTINATION It is agreed that procedures will be established whereby the Company may assure that one Flight Attendant on each narrow bodied aircraft (two on each wide bodied aircraft) speak the foreign language of destination, (LOD) as determined by the Company. Entry into the LOD program shall be voluntary in nature and participation in the LOD program shall be limited to those Flight Attendants who have successfully completed qualifying language examinations (maximum one test per language). Such examinations shall be administered at Company expense by an outside language expert(s). An employee who successfully passes the LOD exam to qualify for the Purser position will also be considered to have volunteered for the program and to be LOD qualified under the provisions of this Letter. Flight Attendants who have successfully completed the examination will not be subject to retesting in fluency more frequently than one each five (5) years. Incumbent Flight Attendants will not be disqualified from their current classifications nor lose any rights to status previously held by reason of failure to pass a language examination or by reason of failure to submit to a language examination as described above. However, such Flight Attendants will not be designated as qualified for the LOD position. Without regard to the language of destination requirement, recognition of all work positions by seniority bid will prevail on a flight by flight basis. LOD Flight Attendants will not be cross-utilized between the Domestic and International operations as a result of their LOD qualifications. When the language capability on International is reduced to such level that the Company will shortly lose its ability to provide language of destination on each flight, priority bidding rights to International shall be accorded those Domestic Flight Attendants who successfully complete a language ARTICLE 29 / Page 13 examination or the Company may assign language qualified Flight Attendants out of training. In such event, the Company will be prepared to establish that the number of vacancies requiring a specific language exceed the number of Flight Attendants on International who speak the required language. In case of reduction in the level of International operations at a given location, resulting in a reduction in Flight Attendants, such Flight Attendant reductions shall be in inverse order of seniority among the Flight Attendants at the location and without regard to the language of destination requirement. Language of destination Flight Attendants shall be required to use their language capability while on board the aircraft only. In processing trades, the language of destination requirement will be considered. Bidding procedures will be established incorporating the following principles: a. Award Service Manager and Purser bids in seniority order. b. If Service Manager and/or Purser does not meet language of destination requirement, block last slot(s) on sequence. c. Award Cabin Attendant bids in seniority order. However, the Company will not be required to award the last slot(s) to a Cabin Attendant if such Cabin Attendant does not meet the LOD requirement not previously filled on that sequence. If through the bidding process the LOD requirement is not met, the company may assign the most junior LOD qualified Cabin Attendants who have not bid those LOD flights. Such assignment will be in seniority order to the open sequences in sequential order. Effective December 1, 1978, LOD Flight Attendants may bid or be assigned a bid sequence requiring any one of their LOD qualifications each month. When more than one classification of Flight Attendants on a sequence speaks the language of destination, the designated LOD Flight Attendant(s) will be in the following order of assignment to that sequence, i.e., Service Manager, Purser, senior LOD qualified Cabin Attendant. The LOD designated Flight Attendant(s) will be identified during the monthly bid awards and such Flight Attendant(s) will be paid $1.25 for each block hour flown during that month. It is understood that the provisions in the third paragraph of Articles 18-A(E)(1)and 18-B(E)(1) do not apply to language qualifications. However, if LOD is required on Domestic or International charters, LOD Flight Attendants will be assigned to charters and paid $1.25 for each block hour actually flown on those charters. Further, they will also be paid, if applicable, the greater of the charter flight or the bid flight from which they were removed. In addition, if on a scheduled basis, the charter so assigned necessitates removal ARTICLE 29 / Page 14 from a subsequent bid trip(s) due to illegality, he/she shall be credited and paid for such trip(s) as though he/she had flown such subsequent trip(s). In no event will an LOD Flight Attendant be balanced under the provisions of this paragraph. This entire Letter of Agreement shall become effective August 1, 1978. For TRANS WORLD AIRLINES, INC. /s/ J. C. Hilly WITNESS: Mary Kay Bain M. J. Conroy D. J. Crombie G. M. Moran Hank Ward For THE INDEPENDENT FEDERATION OF FLIGHT ATTENDANTS /s/ Arthur Teolis WITNESS: V. L. Frankovich Mary Ellen Miller C. W. Numrich Roberto E. Veitia ARTICLE 29 / Page 15 LETTER V - LANGUAGE OF DESTINATION - [9/1/92] September 1, 1992 Ms. Victoria L. Frankovich President Independent Federation of Flight Attendants 630 Third Avenue New York, New York 10017 Dear Ms. Frankovich: This will confirm our agreement reached during negotiations that Letter of Agreement No. VI (Language of Destination) shall be amended as follows: 1. The Company may, without restriction, designate the language of each LOD position on international flights. The number of LOD positions on each flight shall not exceed the current limitation of two (2) positions on wide-body aircraft and one (1) position on narrow-body aircraft, except as provided by the TWA-IFFA Letter of Agreement dated July 20, 1988 ("German Corridor"). 2. Flight Attendants freely and without restriction will be allowed to permanently remove themselves from the LOD program with regard to any language or languages. TWA shall have the right to retest Flight Attendants who seek to re- enter the program. 3. If the Company renews drafting of Language of Destination qualified Flight Attendants on International, TWA agrees, prior to the effective date of such drafting, to meet with IFFA representatives to discuss and attempt to work out alternative resolutions prior to the implementation of any involuntary LOD assignments. 4. Introduction of LOD on Domestic Flights. a. The LOD program is amended to include flights to San Juan. Any Cabin Attendant involuntarily assigned to an LOD position on a domestic San Juan flight who could otherwise hold an international line will be handled in accordance with the agreement signed July 20, 1988, regarding this subject. b. In order to provide language capability from time to time on certain domestic flights, excluding flights to San Juan, where, owing to marketing or code sharing arrangements, the Company will carry groups of passengers whose primary language is not English, the Company may designate one (1) LOD position for the required language on such domestic flights. In such cases the Company will inform the IFFA Scheduling Committee of the affected flights, the language to be utilized, the expected duration of the requirement and the nature of the group generating the need for LOD. Except ARTICLE 29 / Page 16 for flights to San Juan, there will be no drafting/involuntary LOD assignment on domestic flights. 5. TWA-IFFA LOD Joint Cooperation. The Company and the Union will, upon request by either party, confer regarding the LOD program and its administration and discuss means of enhancing the program and resolving problems. It is further agreed: a. The Company will provide IFFA with the names of Flight Attendants who are in the LOD program on not less than a quarterly basis; b. The Company will confer monthly with the IFFA Scheduling Committee chairperson prior to the posting of bids concerning the specific designation and assignment of LOD sequences and pairings. Further, it is understood by the parties that all references to the Purser category shall be deleted in the application of Letter No. VI. Very truly yours, William L. Schecter, Staff Vice President Labor Relations -- TWA Agreed and Accepted Victoria L. Frankovich President -- IFFA ARTICLE 29 / Page 17 LETTER VI - LANGUAGE OF DESTINATION - GERMAN CORRIDOR LETTER OF AGREEMENT BETWEEN TRANS WORLD AIRLINES, INC. AND INDEPENDENT FEDERATION OF FLIGHT ATTENDANTS REGARDING GERMAN CORRIDOR LANGUAGE OF DESTINATION Notwithstanding the conditions governing the Language of Destination Program outlined in Letter of Agreement VI of the 1981-1984 Agreement and the Flight Attendant Pay and Work Rules document dated July 28, 1986, it is agreed that: 1) All German qualified LOD Flight Attendants based at the domicile(s) where pairings originate which include Intra- Germany flying may bid (or be assigned if a Cabin Attendant) to those German LOD pairings. 2) The Company will have the ability to staff one hundred percent (100%) German LOD capability on each bid sequence to a maximum of one Flight Service Manager and three Cabin Attendants. 3) One hundred percent (100%) German language coverage for German corridor flights will take precedence over all requests for trades and self-balances. In the event of insufficient bids, involuntary Cabin Attendant LOD assignments will be made in inverse order of seniority. 4) All German LOD Cabin Attendants participating in this marketing program by being awarded or assigned a monthly sequence will receive Two Dollars ($2.00) for each block hour flown during the month. All German LOD flight Service Managers participating in this marketing program by being awarded a monthly sequence will receive Two Dollars and Fifty Cents ($2.50) for each block hour flown during the month. Additionally, LOD qualified Flight Attendants who mutually trade into, are balanced on or otherwise assigned to a German corridor pairing will be paid Two Dollars ($2.00)/Two Dollars and Fifty Cents ($2.50), whichever is applicable, per each block hour flown on such pairing. 5) Additionally, the Company will pay those Cabin Attendants who are initially awarded an international sequence and are subsequently assigned to the LOD position on designated domestic flights at the international rates, if applicable. ARTICLE 29 / Page 18 6) All assignments to any Language of Destination pairing or sequence will take precedence over rotating reserve obligations. 7) Effective September 1, 1988, Flight Attendants participating in the LOD program may exercise their option to be temporarily removed from such program up to six (6) times a year on a bi-monthly basis. A LOD Flight Attendant cannot be inversed into an LOD during a month in which he/she has opted out of the program. 8) German corridor pairings will be sequenced together to the extent possible. However, if necessary to achieve maximum utilization, German corridor pairings can be sequenced with pairings with German gateway destinations. This agreement does not in any way affect or prejudice either party's position in connection with outstanding grievances and/or existing litigation. Dated: July 20, 1988 On Behalf of Trans World Airlines, Inc.: /s/ Sharon K. Faris Director - Labor Relations Witness: /s/ Jill Swaya Director - Flight Attendant Contract Administration On Behalf of Independent Federation of Flight Attendants: /s/ Vicki Frankovich President Witness: /s/ Karen Lantz Vice-President /s/ Cynthia de Figueiredo Representative ARTICLE 29 / Page 19 LETTER VII - LANGUAGE OF DESTINATION [MAY 31, 1994] May 31, 1994 Ms. Victoria Frankovich President IFFA 630 Third Avenue New York, New York 11017 Dear Ms. Frankovich: It is hereby agreed that Flight Service Managers and Cabin Attendants shall be paid for use of the Language of Destination (LOD) when they work a flight segment(s) utilizing a language for which they are LOD qualified. A mask will be available through the computer, which shall be completed by the FSM on the completion of such trip for which pay is required for services performed. This mask will be routed to the FSM's domicile. Upon receipt of the mask by the domicile, the designated supervisor will verify the LOD qualifications of the Flight Attendants and send such information to CAMS Control for payment. Payment for LOD of less than $100.00 shall be reflected in the by-weekly pay check. If this letter accurately reflects your understanding, please sign below. Very truly yours, /s/ Bette E. Dubinsky Manager - Labor Relations Accepted and Agreed: /s/ Victoria Frankovich ARTICLE 29 / Page 20 LETTER VIII - INFLIGHT SALES INCENTIVE PROGRAM [6/8/89] June 8, 1989 Ms. Victoria Frankovich President Independent Federation of Flight Attendants 630 Third Avenue New York, NY 10017 Dear Ms. Frankovich: This will confirm the agreement reached in negotiation between Trans World Airlines and the Independent Federation of Flight Attendants regarding the Ambassador Boutique. Effective immediately, the Ambassador Boutique incentive program shall be amended to award cash bonuses totalling 5% of on-board sales transactions to Flight Attendants. Each Flight Attendant will receive a bonus of 4% for items he or she sells on the aircraft which would include such items as Ambassador Boutique products, headsets and liquor, and such additional items or services as may be determined by the In- Flight Services department, on a commission basis to be determined by said department at the time, not to exceed a total of 5%. The Flight Service Manager will receive a bonus of 1% of each item sold by members of his/her crew. Very Truly Yours, J.W. Hoar Agreed and Accepted: /s/ Victoria L. Frankovich ARTICLE 29 / Page 21 Letter IX - IN-FLIGHT SALES INCENTIVE PROGRAM [3/15/91] March 15, 1991 Ms. Karen Lantz Vice President Independent Federation of Flight Attendants 630 Third Avenue New York, NY 10017 Dear Ms. Lantz: This will confirm the agreement reached between Trans World Airlines and the Independent Federation of Flight Attendants regarding the distribution of the Sales Incentive override on domestic narrow-body equipment. Each April 1, 1991, with the removal of the Flight Service Manager position for domestic narrow-body equipment, the 1% override from all onboard sales previously distributed to the Flight Service Manager will not be issued to the Cabin Attendant designated per Company procedures to perform all pre and post inventories of the sale liquor product and completion of the liquor papers and sales incentive report. All other provisions of the June 8, 1989 agreement between Trans World Airlines and the Independent Federation of Flight Attendants remain in effect. Sincerely, Judith Zimmer Manager Flight Attendant Contract Administration Agreed and Accepted by: /s/ Karen Lantz ARTICLE 29 / Page 22 LETTER X - INFLIGHT SALES INCENTIVE PROGRAM [1/27/93] Ms. Victoria Frankovich President Independent Federation of Flight Attendants 630 Third Avenue New York, NY 10017 Dear Ms. Frankovich: As we have discussed, TWA will shortly discontinue the sale of liquor and headsets on certain international flights. This letter will confirm our agreement concerning the payment of an additional override to flight service managers on such flights. It is agreed that, effective January 31, 1993, on such flights the $1.00 wide-body override paid to flight service managers shall be increased to $1.25 per hour. This agreement is intended to govern the payment of the additional override only so long as TWA is not charging passengers for liquor or headsets on such flights. If, at a later date, TWA reinstitutes such charges, then the additional $0.25/hour override shall be discontinued. If the foregoing accurately reflects the terms of our agreement, please sign this letter where indicated below. Very truly yours, William L. Schecter AGREED AND ACCEPTED: /s/ Victoria Frankovich/WMH Date: February 1, 1993 ARTICLE 29 / Page 23 LETTER XI - IN-FLIGHT SALES INCENTIVE PROGRAM [3/6/94] Letter of Agreement Between Trans World Airlines, Inc. and Flight Attendants employed by Trans World Airlines, Inc. as represented by the Independent Federation of Flight Attendants RE: Sales Incentive Program This will confirm our understanding that monies due and owing to Flight Attendants in payment of the Sales Incentive Program will be held and issued only when the amount owed exceeds $10.00. Any monies earned will automatically accumulate in the Flight Attendant's account, and the Flight Attendant will be paid in the quarter his/her respective bank reflects a $10.00 or higher balance. Any Flight Attendant to terminate employment will, of course, be paid in full regardless of the balance. - --------------------------------------- -------------------------------- Consent and Concur Consent and Concur William Schecter Victoria Lee Frankovich Staff Vice President - Labor Relations President Trans World Airlines, Inc. Independent Federation of Flight Attendants ARTICLE 29 / Page 24 LETTER XII - IN-FLIGHT SALES INCENTIVE PROGRAM [9/22/94] 1994 IN-FLIGHT SALES LETTER OF AGREEMENT Recognizing the mutual benefits to TWA and Flight Attendants from increases in in-flight sales, a joint TWA-IFFA In-Flight Sales Committee is established. The Committee will consist of IFFA Representatives, employees selected by TWA from its In-Flight Services department and Flight Attendants jointly selected by TWA and IFFA who have demonstrated ability to generate in-flight sales. The Committee will review strategies and procedures to increase the level of in-flight sales. Such review will include an analysis of the relative benefits to TWA and the Flight Attendant workforce of increasing the sales commission paid. The Committee will convene and commence its efforts by November 1, 1994. Flight Attendants jointly selected by TWA and IFFA will be paid by the Company. TRANS WORLD AIRLINES, INC. By: /s/ Thomas Gorski Vice-President, In-Flight Services Dated: September 22, 1994 INDEPENDENT FEDERATION OF FLIGHT ATTENDANTS By: /s/ Victoria L. Frankovich President Dated: September 22, 1994 ARTICLE 29 / Page 25 LETTER XIII [9/22/94] JOINT STATEMENT OF MARKETING OBJECTIVE TWA's marketing department and the IFFA have a common interest in promoting increased revenues for TWA and increased earning potential for IFFA members. To that end, TWA and IFFA shall enter into negotiations 1) to create a marketing organization whose initial purpose is to promote TWA to travel agencies and corporate travel services and 2) increase earnings potential for members of IFFA. All personnel must 1) meet TWA's and IFFA's approval and 2) pass a TWA approved training course. Signed by: Trans World Airlines, Inc. /s/ Thomas Gorski Vice-President, Inflight Services Date: September 22, 1994 IFFA /s/Victoria L. Frankovich President Date: September 22, 1994 ARTICLE 29 / Page 26 LETTER XIV - PAYCHECK DISTRIBUTION June 4, 1993 Ms. Vicki Frankovich President Independent Federation of Flight Attendants 630 Third Avenue New York, NY 10017 Dear Vicki: This letter will confirm our agreement concerning the change of payday and paycheck distribution for the Flight Attendant work force. The transition process for this change will begin with the pay period ending July 11, 1993. All checks will be mailed to the domiciles and to salary directives on Monday, July 12, 1993. These checks will be dated July 13, 1993 and will be available for domicile distribution on Tuesday, July 13, 1993. Checks for the following pay period ending July 25, 1993 will reflect a date of July 29, 1993 and will be available for domicile distribution on Thursday, July 29, 1993. Checks will be mailed to salary directives on Monday, July 26, 1993, arriving at most destinations by Thursday, July 29, depending upon location and zip code. Thereafter, the Flight Attendant paychecks will be available for domicile distribution on Thursday following the close of the pay period. The Flight Attendant checks will bear a Thursday date. They will continue to be mailed on Mondays, unless preempted by a holiday which may require a Tuesday mailing. Thursday domicile distribution will remain constant. If a holiday occurs on Thursday, the domicile checks will be made available on Wednesday. This process has been scheduled to coincide with the distribution of overtime and expense checks on July 25th. If the foregoing accurately reflects your agreement and understanding, please sign below. Very truly yours, Alan R. English Director, Labor Relations AGREED AND ACCEPTED BY: Victoria Frankovich ARTICLE 29 / Page 27 LETTER XV - RETIREMENT SAVINGS PLAN INVESTMENT COMMITTEE LETTER OF AGREEMENT BY AND BETWEEN TRANS WORLD AIRLINES, INC. AND THE FLIGHT ATTENDANTS IN THE SERVICE OF TRANS WORLD AIRLINES, INC. AS REPRESENTED BY THE INTERNATIONAL FEDERAL OF FLIGHT ATTENDANTS This Letter of Agreement is made by and between Trans World Airlines, Inc. (the "Company") and the Flight Attendants in the service of the Company as represented by the IFFA (the "Union"). The Company and the Union hereby agree to adopt an amendment to the Retirement Savings Plan for Flight Attendants of Trans World Airlines, Inc., as amended and restated effective December 1, 1988, (the "Plan"), in accordance with the following: 1. The Investment Committee under the Plan shall select, monitor and replace the Plan's Trustee(s), custodian(s), Recordkeeper(s), Plan Administrator (which shall not be the Company, to the extent possible), investment manager, annuity providers, accountants, auditors, other service providers and employees of the Plan. All of the fees, expenses and compensation of the service providers and employees so selected (except the costs incurred by the Company to perform administrative functions which cannot be transferred to a third party) shall be borne by the Plan, allocated to individual participants Accounts on a basis weighted by the dollar balances of their accounts. 2. The Investment Committee shall determine all investment options and strategies, which must be deemed "prudent by ERISA standards", and the overall investment structure must be in compliance with the safe harbor guidelines issued by the Department of Labor for participant directed plans. 3. Investment options and strategies must be comparable or superior in quality and expected return when compared to current Plan investments, giving consideration to manager performance, portfolio risk, returns, and other characteristics generally used to evaluate quality for investment portfolios. 4. The Investment Committee may agree to daily valuation of the Plan at ARTICLE 29 / Page 28 such time as it deems appropriate. 5. The Plan shall permit rollover contributions to the maximum extent permissive under the law. 6. The Investment Committee shall determine all the procedural rules applicable to participants' investment directions. 7. At such time as distribution of a Participant's Account(s) is permitted, the Participant will be given the additional option to leave his/her Account(s) is the Plan, continue self-direction of the Accounts, and direct that distributions be made to him/her at such times and in such amounts as he/she specifies, in accordance with reasonable rules promulgated by the Plan Administrator and subject to applicable law. 8. In the event of a shutdown or liquidation of the Company the Investment Committee shall continue in its capacity under the provisions of the Plan until all Plan assets have been distributed. In this regard, rollover contributions of member-participant account(s) to other qualified plan(s) shall be allowed to the maximum extent permissible under the law. 9. The selection, monitoring and replacement (to the extent determined necessary by the Investment Committee) of the Plan's Trustee(s), custodian(s), Recordkeeper(s), Plan Administrator, investment managers, annuity providers, accountants, auditors, other service providers and employees of the Plan shall be executed expeditiously upon order of the Investment Committee. In the event that the Investment Committee is unable to secure a third-party Plan Administrator, whether prohibited by cost or the third-party Administrator's inability to perform required Plan services, TWA will remain Plan Administrator. 10. All Plan amendments necessary to implement this agreement will be made by the Company and the Union as soon as practical following execution of the Agreement, and such amendments shall comply with all aspects of ERISA and other pension regulations. IN WITNESS HEREOF the parties have executed this Letter of Agreement this 5th day of January, 1993. TRANS WORLD AIRLINES, INC. By: William S. Schecter WITNESS: INDEPENDENT FEDERATION OF FLIGHT ATTENDANTS By: William M. Hoffman WITNESS: Norma J. Adams ARTICLE 29 / Page 29 LETTER XVI - RETIREMENT "A" PLAN ROLLOVER September 8, 1993 William M. Hoffman Vice President IFFA 630 Third Avenue New York NY 10017 Dear Bill: This will confirm our agreement to amend the Retirement Savings Plan for Flight Attendants of Trans World Airlines. Inc. (401(k) Plan) to provide that, effective January 1, 1993, Flight Attendants who terminate and elect to take their A-Plan benefit in the form of a lump sum may roll over such lump sum directly into the 401(k) Plan. If the foregoing correctly reflects your understanding or our agreement, please sign in the place indicated below and return this letter to my office. Very truly yours, Alan R. English Director, Labor Relations AGREED AND ACCEPTED: William M. Hoffman Dated: 9/9/93 ARTICLE 29 / Page 30 LETTER XVII - OZARK FLIGHT ATTENDANTS ENTRY INTO TWA RETIREMENT PLAN [6/15/90 AND 7/1/90] SETTLEMENT AGREEMENT ---------- --------- In settlement of President's Grievance Case 89-5001, former Ozark Flight Attendants will be covered under the TWA Retirement Plan for Flight Attendants under the following provisions: * Former Ozark Flight Attendants will become eligible for the TWA Retirement Plan for Flight attendants on the later of October 1, 1987, or the first day of the calendar month on or after completion of one year of combined service with TWA and Ozark. * Benefits accrued to a former Ozark Flight Attendant under the TWA Retirement Plan for Flight Attendants will be equal to the larger of: - benefits as normally determined under the TWA Retirement Plan for Flight Attendants for the period of service beginning on and after October 1, 1987; or - benefits as normally determined under the provisions of the former Ozark Retirement Plan accrued for the period from October 1, 1987, through June 30, 1990 except as modified below, - In calculating the benefits for special early retirement under the former Ozark Plan, service with TWA will be included. - In calculating the benefits under the former Ozark Plan for a former Ozark Flight Attendant who retires early before age 55, the benefit reduction for early retirement will be 5% per year below the age 55 and 4% per year between the ages of 65 and 55. - The value of the five year certain normal form under the Ozark Plan will be recognized by increasing the accrued benefit under the Ozark Plan for the period from October 1, 1987 through June 30, 1990 by 2%. - Disability Benefits will be determined solely on the basis of the TWA Plan. - Optional forms of benefits will be determined using the applicable factors under the TWA Plan unless doing so would result in some cutback in benefits in which case the Ozark optional retirement factors will be applied. ARTICLE 29 / Page 31 * For purposes of determining eligibility to participate in the TWA Plan and of determining eligibility for benefits under the Ozark and TWA Plans, service with Ozark and TWA will be combined. However, except for early retirement eligibility as described above and pre-retirement survivor benefits as described below, the provisions of the Ozark Plan pertaining to eligibility for benefits will be applicable to benefits determined under the Ozark Plan and the provisions for eligibility for benefits under the TWA Plan will be applicable to benefits determined under that Plan. * The TWA Plan provides for commencement of pre-retirement spouse's benefits at age 50 if the participant's death occurs before age 50 and charges for the death benefit protection, whereas, the Ozark Plan provides for commencement of benefits at age 55 if death occurs before age 55 and does not charge for the death benefit protection. The rules under the TWA Plan will be applied to whichever death benefit is larger as determined above for early retirement. The former Ozark employees will be charged for the death benefit protection beginning on July 1, 1990. * The supplemental benefit payable to age 62 upon retirement at age 60, shall be limited to the benefit accrued from October 1, 1987. Attached is the suggested amendment to the TWA Retirement plan for Flight Attendants to include former Ozark Flight Attendants in the Plan beginning October 1, 1987. Such amendments may be modified by the Company if required to obtain an Internal Revenue Service approval of such amendment provided that such modifications do not alter the intent of this agreement. - -------------------------- ---------------------------- William M. Hoffman Sharon K. Faris Independent Federation Trans World Airlines of Flight Attendants - -------------------------- ---------------------------- Karen Lantz Tom McNally Union Board Member Company Board Member - -------------------------- ---------------------------- Marylou Thurau Diane Scott Union Board Member Company Board Member Dated: June 15, 1990 ARTICLE 29 / Page 32 SUGGESTED AMENDMENT TO RETIREMENT PLANS FOR THE ----------------------------------------------- TWA RETIREMENT PLAN FOR FLIGHT ATTENDANTS ----------------------------------------- * Add the following to Article 1.17 (Plan): Effective July 1, 1990, the provisions of the pension plan that covered employees who were Flight Attendants of Ozark Air Lines, Inc. (referred to herein as Ozark Plan") are incorporated into this plan and such Ozark Plan shall have no further accrual of benefits with respect to any employee under such plan subsequent to June 30, 1990. Any former Ozark Flight Attendant who became an employee of the Company as a result of the merger of the Company and Ozark Air Lines, Inc. (referred to herein as Ozark Flight Attendant') will accrue benefits under this Plan subsequent to October 1, 1987. Benefits payable to such Ozark Flight Attendants under this Plan shall be the greater of (a) benefits accrued under the Ozark Plan for the period from October 1, 1987, through June 30, 1990, or (b) benefits accrued under this Plan subsequent to October 1, 1987. All benefits accrued with respect to such employees subsequent to October 1, 1987, will be paid from this Plan. It is not intended to include all of the applicable provisions pertaining to eligibility and determination of benefits with respect to such former Ozark Flight Attendants under the provisions of this Plan and should there be any ambiguity as a result of protecting the benefits accrued through June 30, 1990, under such Ozark Plan, that ambiguity will be resolved by applying the provisions of such Ozark Plan. * Add a new section (d) to Article 2.3 (Entry into Plan) as follows: Any other provisions of this Plan notwithstanding, an Ozark Flight Attendant shall become a Member of this Plan on the later of (i) October 1, 1987, or (ii) completion of one Year of Service. * Add the following to Article 1.27 (Year of Service) as follows: For purposes of determining eligibility for vesting benefits and other benefits under this Plan, any other provisions of this Plan notwithstanding, an Ozark Flight Attendant shall be credited with a year of service under this Plan for each Year of Continuous service under the Ozark Plan. In determining years of Continuous Service under the Ozark Plan, the Ozark plan as amended through the date of merger of the Company and Ozark Air Lines, Inc. shall be applicable. Such Years of Continuous Service shall be combined with the Years of Service credited under this plan provided, however, there shall be no duplication of Years of Service for any Ozark Flight Attendant. * Add the following sentence to Article 5.1 (B): Such recalculations and reductions with respect to benefits accrued under the former Ozark Plan for the period from October 1, 1987, through June 30, 1990, shall be determined in accordance with such former Ozark Plan. * Add the following sentence to Article 5.2: This benefit calculation with respect to any Ozark Flight Attendant shall be limited to the benefit accrued under this ARTICLE 29 / Page 33 Plan from October 1, 1987. * Add a new sentence at the end of Article 7.2 (b) (iii) as follows: An Ozark Flight attendant shell be charged for this protection during the period that it is in effect from July 1, 1990. ARTICLE 29 / Page 34 LETTER XVIII - RECALL/BYPASS April 23, 1991 Ms. Victoria Frankovich President, Independent Federation of Flight Attendants 630 Third Avenue New York, NY 10017 Dear Ms. Frankovich: This letter of Agreement shall: 1) reiterate, clarify and supplement the existing recall precedence and procedures as specified in Article 12(E) and 12(G) of the TWA/IAM Working Agreement signed April 12, 1983, as modified by the lawfully implemented work rules and 2) confirm our agreement regarding the implementation of new recall bypass provisions. I. RECALLS: A. Subject to and consistent with the recall bypass provisions contained in section II below, Flight Service Manager vacancies are filled by recalling as follows: All Flight Attendants, whether active, on furlough or on a 12(B) leave of absence who have a recall right to the Flight Service Manager position, shall be merged into a single list and recalled in seniority order to Flight Service Manager. In the event an active Cabin Attendant refuses recall to the Flight Service Manager position, the Cabin Attendant shall forfeit all priority recall rights. In the event an inactive Flight Attendant [on furlough or 12(B) leave] refuses recall to active status, he/she shall forfeit entitlement to preference in reemployment and be removed from the TWA Flight Attendant System Seniority List. B. Subject to and consistent with the recall bypass provisions contained in section II below, Cabin Attendant vacancies are filled in the following order: 1. Active Flight Attendants (FSM and C/A, in seniority order, with a priority recall right to the domicile(s) where the vacancies exist. 2. Active Flight Attendants (FSM and C/A), in seniority order, with a priority recall right to a domicile(s) where vacancies were created due to the operation of "1" above, ARTICLE 29 / Page 35 3. A continuation of the process in "2" above if further vacancies were created. 4. Furlough of any excess Cabin Attendants at a domicile. Such Cabin Attendants may elect to displace to vacancies remaining unfilled by the operation of "1" through "3" above, elect furlough or elect 12(B) leave. 5. Any vacancies remaining after the operation of "4" above are system vacancies and are filled in seniority order from those Flight Attendants (FSM and C/A) on furlough or 12(B) leave. 6. Flight Attendants currently on a 12(B) leave of absence as of the signing of this Agreement may either, 1) retain their right upon recall to active status to displace, seniority permitting, the most junior Flight Attendant at the domicile from which they took a 12(B) leave or, 2) may exercise the new recall bypass provisions contained in section II below. Flight Attendants on 12(B) leaves who elect to utilize the new bypass provisions shall, while forgoing the displacement option, remain on the priority recall list indefinitely with the ability to change their bypass and/or recall preferences as described in paragraph 11(D) below. The provisions of this paragraph are applicable only to Flight Attendants on a 12(B) leave as of the date of this Agreement and shall not be applicable to Flight Attendants electing a 12(B) leave in conjunction with furlough subsequent to the date of this Agreement. In the event an active Cabin Attendant refuses priority recall to domicile, he/she shall forfeit all priority recall rights. In the event an inactive Flight Attendant [on furlough or 12(B) leave] refuses recall to active status, he/she shall forfeit entitlement to preference in reemployment and be removed from the TWA Flight Attendant System Seniority List. II. RECALL BYPASS Flight Attendants shall have a recall bypass option. Upon furlough or displacement, Flight Attendants shall submit, on a form specified by the Company, their choices regarding the combination of domicile and category position(s) (e.g. JFK C/A or STL-FSM): 1) to which they will accept recall and/or, 2) for which they desire to elect recall bypass. A. When vacancies are to be filled by recall, Flight Attendants who have submitted a Recall/Bypass Preference Form indicating a bypass ARTICLE 29 / Page 36 election for the domicile/category vacancy being filled, shall be skipped over (bypassed) and recall shall be offered to the next junior person who has not elected bypass. Flight --- Attendants are eligible to indicate their preferences for recall or bypass as follows: 1. Active FSMs: a. Accept priority recall to a FSM position at the domicile from which they were furloughed/displaced; b. Accept priority recall to the domicile from which they were furloughed/displaced to fill a C/A vacancy; or c. Bypass priority recall to FSM and/or original domicile. 2. Active C/As: a. Accept priority recall to the domicile from which they were furloughed/displaced; or b. Bypass priority recall to domicile. 3. Inactive [Furloughed/12(B) Leave] FSMS: a. Accept priority recall to the FSM position at the domicile from which they were furloughed/ displaced; b. Accept recall to the FSM position at one or more other domiciles; c. Accept recall to the C/A position at one or more domiciles; or d. Bypass recall to any one or more domicile/category positions. 4. Inactive [furlough/12(B) Leave] C/As: a. Accept priority recall to the domicile from which they were furloughed/displaced; b. Accept recall to one or more other domiciles; or c. Bypass recall to one or more domiciles. B. Recall/Bypass Preference Forms will be maintained on file by the Company and will be utilized when filling vacancies. C. Once a Flight Attendant has been granted priority recall to the domicile/category from which he/she was originally furloughed/displaced, the Flight Attendant shall be removed from the priority recall list. ARTICLE 29 / Page 37 D. Flight Attendants may change their preferences for Recall/Bypass by submitting a new form to the Company. Submission of a new form shall invalidate and supersede an existing form on file. All valid (fully completed) forms received by the Company by the close of business on the business day immediately preceding the announcement of a recall shall be effective for that recall. Any form received subsequent to the time specified above shall be effective for a subsequent recall. E. A Bypass election for either all domicile/category positions or for any one, or more, domicile/category positions shall remain valid until: 1. Replaced by a new Recall/Bypass Preference Form, as described in paragraph 11(D) above, which indicates a desire for recall to a domicile/category position or 2. For furloughed Flight Attendants, at the expiration of all recall rights after seven (7) years on furlough. F. Should a Flight Attendant, whether active, on furlough or on 12(B) leave, with a priority recall right submit an unsigned or otherwise incomplete Recall/Bypass Preference Form or fail to submit a Form, he/she shall be deemed to have selected recall to all domicile/category positions for which eligible, as indicated in paragraph 11(A) above. G. In the event that all Flight Attendants with remaining priority or other recall rights to a domicile/category have elected bypass, the vacancy(s) shall be filled in accordance with Article 13 of the TWA/IAM Working Agreement signed April 12, 1983 followed by new hire Flight Attendants. Flight Attendants who have canceled their bypass election, by submitting a new Recall/Bypass Preference Form, for a domicile/category where vacancies exist shall be recalled before any transfers are awarded. Should the Company be hiring Flight Attendants, Flight Attendants who have canceled their bypass election, by submitting a new Recall/ Bypass Preference Form, for a domicile/category where vacancies exist shall be recalled provided they have submitted their cancellation before the next group of applicants are hired by the Company. To be effective, the new Recall/Bypass Preference Form must be received by the close of business on the business day immediately preceding the action (transfer or hiring). Notwithstanding the foregoing, the Company may, at its option, cancel bypass options and recall Flight Attendants before hiring new Flight Attendants. Such a cancellation of bypass options would only occur after all other provisions for filling of vacancies had been satisfied, other than the hiring of new Flight Attendants. In such case, the cancellation of a Flight Attendant's bypass option and recall shall be accomplished in inverse seniority order from among Flight Attendants then on furlough or 12(B) leave. The inverse order of ARTICLE 29 / Page 38 recall applies only to Flight Attendants who have had their bypass option(s) canceled by the Company. H. In the event a domicile is closed, all priority recall rights for that domicile shall terminate and Flight Attendants will no longer have priority recall rights to that domicile. Such action will not affect any recall right to the Flight Service Manager category. I. Flight Attendants may voluntarily remove themselves from the Priority Recall List, thereby relinquishing their priority recall right, by submitting such an election in writing to the Company. III. TIME ON FURLOUGH The maximum time a Flight Attendant may remain on furlough as specified in Article 12(E) of the TWA/IAM Working Agreement signed April 12, 1983 shall be extended from five (5) years to seven (7) years. Very truly yours, Alan R. English Director, Labor Relations AGREED AND ACCEPTED: /s/ Victoria Frankovich ARTICLE 29 / Page 39 RECALL/BYPASS PREFERENCE FORM FLIGHT SERVICE MANAGERS CHOOSE THE DOMICILES AND POSITIONS TO WHICH YOU WILL ACCEPT RECALL. PUT A "l" IN THE BOX NEXT TO YOUR FIRST CHOICE, "2" NEXT TO YOUR SECOND CHOICE, ETC. DO NOT DUPLICATE ANY NUMBER. IF YOU DO NOT DESIRE TO ACCEPT RECALL TO A PARTICULAR DOMICILE/ POSITION, ENTER A "0" IN THE BOXES NEXT TO THE DOMICILES/POSITIONS THAT ARE NOT ACCEPTABLE.YOU WILL BE BYPASS" IF RECALL IS OFFERED TO A DOMICILE/POSITION WHICH YOU MARK "0". LEAVING A BOX BLANK IS EQUIVALENT TO PUTTING A "0" IN THE BOX. YOU WILL BE SUBJECT TO RECALL TO ANY DOMICILE/POSITION FOR WHICH YOU HAVE PLACED A NUMBER OTHER THAN "0" IN THE BOX. YOU WILL BE RECALLED TO YOUR FIRST CHOICE IF THAT DOMICILE/POSITION IS AVAILABLE. IF YOU WISH UNCONDITIONAL BYPASS AT THIS TIME (MEANING THAT YOU DO NOT WISH TO BE RECALLED TO ANY POSITION) PLACE A ZERO "0" IN EVERY BOX BELOW. YOU MUST SUBMIT A NEW FORM WHEN YOU WISH TO BE CONSIDERED FOR RECALL. FILL IN YOUR NAME AND PAYROLL NUMBER IN THE BOX BELOW. SIGN AND DATE THIS FORM AND RETURN IT BY U.S. MAIL OR FACSIMILE TO THE ADDRESS BELOW. ONLY SIGNED FORMS WILL BE ACCEPTED. [EXAMPLE IMAGE NOT DISPLAYED] ------------------------------- SIGNATURE DATE ----------------- JFK C/A ----------------- ----------------- STL C/A ----------------- ----------------- LAX C/A ----------------- ARTICLE 29 / Page 40 ----------------- JFK FSM ----------------- ----------------- STL FSM ----------------- ----------------- LAX FSM ----------------- Return to Director - Flight Crew Resources Trans World Airlines, Inc. (Address) ARTICLE 29 / Page 41 LETTER XIX - ADVOCATE ON FURLOUGH [4/5/95] April 5, 1995 Ms. Victoria L. Frankovich President Independent Federation of Flight Attendants 720 Olive Avenue, Suite 1700 St. Louis, MO 63101 Dear Vicki: This letter confirms our agreement that any Flight Attendant who is on a furloughed status or 12(B) leave may apply for the IFFA representative and/or advocate positions as described in the re-engineering portion of the 1994 TWA-IFFA Collective Bargaining Agreement. If a furloughed Flight Attendant or individual on 12(B) leave is a successful candidate for such position, she/he may be recalled to the active Flight Attendant payroll out of seniority order, in order to commence the job duties of an IFFA representative and/or advocate. If the foregoing accurately states the terms of our agreement, please sign this letter where indicated below and return one copy to me. Very truly yours, /s/ Bette E. Dubinsky Director Labor Relations, Inflight Agreed and Accepted /s/ Victoria L. Frankovich ARTICLE 29 / Page 42 LETTER XX - FLIGHT SERVICE MANAGER - NARROWBODY February 22, 1991 Ms. Victoria L. Frankovich, President Independent Federation of Flight Attendants 630 Third Avenue New York, New York 10017 Dear Ms. Frankovich: This letter shall confirm the various discussions of the parties regarding the removal of Flight Service Managers from domestic narrow body equipment and the possible removal at some future time on international narrow body equipment. The Company maintains that it has the inherent right to remove Flight Service Managers on narrow body equipment unilaterally. IFFA's position is that the removal of Flight Service Managers from narrow body equipment is subject to the collective bargaining process. Notwithstanding the parties' respective positions on this matter, the Union has agreed not to file a grievance or institute court action contesting the Company's present action of removing Flight Service Managers on domestic narrow body equipment. Similarly, should the Company at a later date remove Flight Service Managers from international narrow body flights, the Union has agreed not to file a grievance or institute court action contesting the removal. The Company has agreed not to cite the Union's failure to grieve this matter in any future dispute of this nature. Should the Company, having now removed Flight Service Managers on domestic narrow body flights or, at some later time, on international narrow body flights, subsequently re-institute the position of Flight Service Manager, then such action would negate this agreement. Were the Company to again remove Flight Service Managers from either domestic or international narrow body flights, IFFA would be free to undertake any challenge as it may then deem fit. The resolution of this matter is without prejudice to either parties' position on the underlying issues. If the foregoing accurately states the terms of our agreement, please sign this letter where indicated below. Very truly yours, William L. Schecter AGREED AND ACCEPTED: /s/ Victoria L. Frankovich ARTICLE 29 / Page 43 LETTER XXI - FLIGHT SERVICE MANAGER - ROTATING RESERVE October 11, 1978 Mr. Arthur Teolis President Independent Federation of Flight Attendants 630 Third Avenue New York, New York 10017 Dear Mr. Teolis: This will confirm our understanding reached during negotiations that if the Union notifies the Company in writing that Pursers and International Service Managers have requested that their reserve responsibilities be rotated at a particular domicile, the Company will meet with a representative of your office within sixty (60) days of receipt of the written notification to develop the necessary procedures required to be implemented in order to effect the reserve responsibility rotation. Very truly yours, /s/ J. C. Hilly Vice President-Labor Relations Agreed and Accepted: /s/ Arthur Teolis Arthur Teolis ARTICLE 29 / Page 44 LETTER XXII - REDEPLOYMENT OF IN-FLIGHT SERVICE SUPERVISORS [6/6/76] June 6, 1976 Mr. Ernest Mitchell Vice President Air Transport Division Transport Workers Union of America 1980 Broadway New York, NY 10023 Dear Mr. Mitchell: Upon notification from you of the ratification of the Agreement effective June 6, 1976, the Company will re-deploy its In-Flight Service Supervisors who will not be assigned to perform productive work covered by the Agreement between the Company and the TWU. This re-deployment will be completed by September 10, 1976. Very Truly Yours, /s/ D.J. Crombie Senior Vice President- Administration ARTICLE 29 / Page 45 LETTER XXIII - REDEPLOYMENT OF IN-FLIGHT SERVICE SUPERVISORS [7/21/76] July 21, 1976 Mr. Ernest Mitchell Vice President Air Transport Division Transport Workers Union of America 1980 Broadway New York, New York 10023 Dear Mr. Mitchell: I understand that there may have been some misunderstanding regarding the use of the word "re-deploy" in D. J. Crombie's letter of June 6, 1976, on the subject of the In-Flight Service Supervisor. To avoid any possible misinterpretation of the Company's intention regarding this matter, let me restate unequivocally the Company's position. The Company will discontinue its practice of assigning In-Flight Service Supervisors on all TWA aircraft. This commitment will be fully in effect not later than September 10, 1976. Very truly yours, /s/ J. C. Hilly Staff Vice President-Labor Relations ARTICLE 29 / Page 46 LETTER XXIV - CAMS HOME ACCESS/RESERVES OVER CAP January 4, 1990 Ms. Victoria Frankovich President Independent Federation of Flight Attendants 630 Third Avenue New York, NY 10017 Dear Ms. Frankovich: I. TWA will allow Flight Attendants to subscribe voluntarily to a service ("Home Access") whereby Flight Attendants for their personal use only may have limited access to TWA's Crew Administrative Management System ("CAMS") using personal computers or other compatible terminal devices. The Home Access service will be PARS Travel Information Service ("PTIS") which those Flight Attendants who wish to subscribe must apply and contract with directly. The form of Home Access provided to Flight Attendants will be substantially similar to the form of Home Access provided to TWA's pilots. TWA will provide not less than the below enumerated CAMS and PARS functions through Home Access for so long as these functions are available to Flight Attendants through CAMS computer terminals at the crew domiciles and for so long as the PTIS contracted service is in effect. CAMS JXBDF JXBGF JXBPF JXBUF JXCAF JXFSF JXGCF JXNXF JXOPF JXPI JXSLF JXTIF JXTRADE JXTRF JXTW JXVDF JXVGF JXVIF JXVPF JXVUF PARS 2 KC KD KGB MB MD MU MT S VINR 4A 4F 4WL FDH FFL FIP FTP FWI FFI FIA FOV FWD In addition, JXROF, the new over-cap function for reserves, will be provided. TWA will issue brochures describing Home Access for Flight Attendants. PTIS will charge $5.00 to each Flight Attendant who subscribes to the service to establish an individual account. Thereafter, PTIS will charge $20.00 monthly for the Home Access subscription. The amounts charged by PTIS are subject to change as described in "Dial CAMS Enrollment Agreement" contained in the ARTICLE 29 / Page 47 brochure. Access to CAMS for each account is limited to a total of one hundred (100) CAMS and/or PARS transactions daily. The $20.00 monthly fee charged by PTIS provides for two (2) hours of network usage monthly as described in the brochure. TWA will not make payroll deductions of amounts due PTIS; a Flight Attendant who subscribes to Home Access will remain individually responsible for payment of PTIS' charges. Flight Attendants who choose to subscribe to Home Access must sign the "Computer Communications/Facilities Protection Policy" Agreement. A Flight Attendant's signature on the Computer Communication/Facilities Protection Policy shall not constitute a waiver by IFFA or the individual Flight Attendant of any right and protection granted by the TWA/IAM Working Agreement, nor does it imply that any allegation of misuse of Home Access will automatically result in discipline or discharge or satisfy just cause provisions. All such questions will be resolved in accordance with Article 16 grievance procedures. II. TWA may, at its sole discretion, offer to Flight Attendants who hold reserve schedules the ability to waive the monthly flight limits as described in Article 18-A(D)(7)(d) of the Working Agreement signed April 12,1983. TWA will not make such offers to any Flight Attendants who hold reserve schedules unless TWA also offers to Flight Attendant who are line holders in the same status and at the same domicile the opportunity to exceed the applicable Cap in accordance with existing rules. When offered by TWA, a reserve Flight Attendant who elects to waive the monthly limit must notify the Company either by CAMS function JXROF or by telephone advise to Crew Schedule. Once a Flight Attendant has elected to waived the monthly limit that waiver may not be revoked. As the result of the waiver, the adjusted reserve monthly limit will be the applicable monthly Cap plus ten hours (10:00), provided that the adjusted limited will not exceed 85:00 hours (accumulated credit hours plus the scheduled block-to-block flight time to be flown on the last trip prior to the end of the month). TWA agrees to: a. process the Home Access subscription applications received from Flight Attendants; b. make available through CAMS and Home Access a new CAMS function, JXROF for use by reserve Flight Attendants who elect to waive the monthly limits as described above. The reserve adjusted monthly limit provisions of this agreement will be implemented no later than the February 1990 bid month. III. Either TWA or IFFA may, by written notice given to the other by certified mail, return receipt requested, on or before May 21, 1990, terminate this agreement in its entirety effective July 31, 1990. In the event of such termination, all ARTICLE 29 / Page 48 provisions of this agreement will become null and void after July 31, 1990. In the event neither party gives such notice, this agreement shall thereafter remain in effect until terminated or changed by agreement of the parties or by operation of law. If the above correctly sets forth our agreement, please execute both copies of this letter and return one fully executed copy to the undersigned. Very truly yours, TRANS WORLD AIRLINES, INC. By: ---------------------------------- John C. Crowe Vice President - Operations Administration Attachment Accepted and Agreed: INDEPENDENT FEDERATION OF FLIGHT ATTENDANTS By: Vicki Frankovich Date: January 9, 1990 ARTICLE 29 / Page 49 LETTER XXV - RANDOM SUBSTANCE TESTING [9/22/94] LETTER OF AGREEMENT JOINT TWA-IAM POLICY REGARDING SUBSTANCE ABUSE AND SUBSTANCE TESTING Preamble The primary goal of this policy is to encourage employees who are experiencing difficulty with drugs or alcohol to undertake immediate and effective measures to address such problems voluntarily. While the emphasis is on voluntary treatment, the parties recognize the need for the enforcement of reasonable rules for regulating employee conduct in the work place. Recognizing that a Flight Attendant's misuse of drugs or alcohol on the job not only endangers the Flight Attendant but also threatens the safety of co-workers, members of the traveling public and emergency personnel, it is the policy of TWA and the IAM to protect the health and safety of all employees and passengers of the Company. For this reason, TWA and the IAM agree to the following Policy regarding Drug and Alcohol Use and Testing: I. Testing - The first step in addressing the problem of drugs and alcohol in the workplace is that of identifying the substance abuser. Therefore, testing shall be conducted under the following circumstances. 1. When there is a reasonable suspicion that an employee is under the influence of or impaired by alcohol or drugs, that employee may be required to undergo testing to confirm or disprove the suspicion. This is called testing "for cause". Any employee refusing to submit to a test where reasonable suspicion exists shall be discharged. 2. An employee who has been found to be under the influence of or impaired by alcohol or drugs within the preceding two years may be tested at any time. This is called "follow-up" testing. 3. Employees will be tested as required by regulations of the Department of Transportation or other governmental agency. Such testing includes both testing for cause and random testing, post-accident testing, return to duty testing, follow-up testing and pre-employment testing. II. Rehabilitation The TWA-IAM Special Health Services Program ("SHS") is an employee assistance program jointly administered by the Company and the IAM. Through SHS TWA offers treatment for employees who suffer from drug or alcohol dependency and encourages employees in the need of such treatment to seek help before they violate any of the foregoing rules. Flight Attendants in ARTICLE 29 / Page 50 need of assistance who contact SHS representative and who elect to seek rehabilitation under SHS auspices, will, to the extent possible, be referred for appropriate treatment within their own communities. The cost of treatment will be paid through the group medical insurance policy. When a Flight Attendant, having engaged in the prohibited use of drugs or alcohol, requests the assistance of Special Health Services, such request and any referral will be held in strict confidence. Neither supervisor personnel nor Union officials, excluding Company and Union designated SHS representatives, will be informed of the nature of a Flight Attendant's participation in the program without her/his consent. If a Flight Attendant must be absent from work in order to participate in the program, such absence will normally be coded in the Company attendance records as a "personal illness". III. Disciplinary Guidelines A. Flight Attendants who are found actually drinking or possessing alcohol or using or posses sing drugs while on duty, or within twelve (12) hours prior to reporting for duty, will be subject to discipline up to and including discharge in accordance with Articles 16 and 17 of the Agreement and shall be subject to such additional penalties as may be required by Federal Aviation Administration regulations. B. The Company's knowledge of off duty possession or use of drugs or alcohol by a Flight Attendant within twenty-four (24) hours of the time such Flight Attendant reports for duty shall not be used as grounds for discipline for the first occurrence but may be grounds for testing such Flight Attendant. C. Flight Attendants who are suspected of drug or alcohol use who are first offenders and who are not involved in conduct which would otherwise subject them to discipline but who test positive will not be discharged, but may be required to successfully complete a rehabilitation program implemented and supervised by TWA and IAM personnel. D. Flight Attendants involved in conduct which would otherwise subject them to discipline and who are suspended and test negative shall be returned to work and made whole for such suspension before discipline is assessed concerning such conduct. E. Flight Attendants who are involved in conduct which would otherwise subject them to discipline and who test positive may be disciplined for the incident. They may not, however, be disciplined for using drugs or alcohol if the instance is the first occurrence under the policy. If such employee receives discipline less than discharge, then such employee shall, if required by TWA's Medical Review Officer (MRO) or, in the ARTICLE 29 / Page 51 case of alcohol, by TWA's Special Health Services, be required to successfully complete a rehabilitation program supervised by TWA and IAM personnel. Flight Attendants who do not successfully complete the rehabilitation program may be discharged. F. Except as provided in (A) above, and to the extent not inconsistent with requirements of the Department of Transportation, Flight Attendants who, for the first time, test positive for drugs or alcohol as a result of random tests conducted pursuant to requirements of the Department of Transportation or other governmental agency or otherwise pursuant to this Agreement shall be subject to the following terms. 1. TWA shall initiate an investigatory meeting with the Flight Attendant pursuant to Article 16(C)(1)(a) and (b) of the IAM-TWA Agreement. Such meeting, which the Flight Attendant must attend, shall be held within three (3) business days following the notification to the Company by the Medical Review Officer (MRO) of a positive test result. Such meeting may be postponed by mutual agreement for up to five (5) business days if there are exceptional circumstances which would prevent the Flight Attendant from attending the meeting within the normal three (3) day time limit. In such meeting the Flight Attendant shall be given the opportunity to execute a last-chance letter of agreement (as per attached Appendix). The deadline for execution of the Letter of Agreement may be extended no later than five (5) work days following this meeting. 2. A Flight Attendant who refuses to execute the last- chance letter of agreement shall not be given a second chance pursuant to this Policy, but shall instead be treated in accordance with all relevant provisions of Articles 16 and 17 of the IFFA-TWA Agreement. 3. A Flight Attendant executing the last-chance letter of agreement may not return to active service without approval(s), if any, required by regulations of the Department of Transportation or other governmental agency. In most instances return to active service will be coordinated upon the Flight Attendant's participation in the substance abuse rehabilitation program selected by the Flight Attendant from the list provided by TWA's Special Health Services as determined in accordance with Section II above. If such participation is deemed necessary, the Flight ARTICLE 29 / Page 52 Attendant must successfully complete the approved rehabilitation program as a condition of return to active service. 4. Upon return to active service, a Flight Attendant will be subject to unannounced follow-up testing as directed by the Medical Review Officer for a period of up to two (2) years. 5. The Flight Attendant's continued employment after returning to active service shall also be conditioned upon TWA Special Health Services continual review and approval of the Flight Attendant's successful participation in the required after care, if any, as determined by the approved rehabilitation program. 6. Flight Attendants who refuse to submit to tests required by this Agreement shall be subject to discipline, including discharge, subject to Articles 16 and 17 of the Agreement. G. Any Flight Attendant entering a rehabilitation program after testing positive will be subjected to follow-up testing during the course of the program and for no less than three months after successful completion of the program. However, in no event shall such follow-up testing period exceed two years from the Flight attendants return to work and if such Flight Attendant tests positive as a result of the follow-up tests, she/he may be discharged. Any Flight Attendant who tests positive within two years from the date she/he executes a Last Chance Agreement pursuant to this policy may be discharged. A Flight Attendant who tests positive at any time after two years from the date she/he executes a Last Chance Agreement pursuant to this policy shall be referred to a joint Company-Union committee for disposition of her/his case. Such committee shall be made up of one Company and one Union representative. If such committee cannot agree, the case shall be submitted to a neutral party jointly selected by the parties who is considered to be an expert in matters of this kind and such neutral shall have authority to make final determination which shall be binding upon both parties. IV. Procedural Guidelines - Drug Testing A Flight Attendant who is required to submit to drug testing as required by regulations of the Department of Transportation or other governmental agencies shall be required to give a split sample in accordance with Federal Regulations. The split sample will be submitted to the NIDA-certified laboratory selected by the Company whereupon the primary sample will be tested. If the result of that test is verified positive by ARTICLE 29 / Page 53 the MRO, the Flight Attendant may request to have the split sample tested by another NIDA certified laboratory selected from a list of NIDA-certified laboratories, provided that such a request for additional testing is made within seventy-two (72) hours of the Flight Attendant being notified of a positive result. The Flight Attendant will be responsible for any costs related to the testing, but not the collection of the split sample (e.g. administrative costs, mailing costs, testing costs, etc.). In the event TWA agrees to pay the costs of or related to the testing for any other employee group, TWA shall pay such costs for Flight Attendants. If the results of both tests are positive, the final result will be deemed conclusively a positive and the validity of the tests is not subject to further review or challenge If the result of the test of the primary sample is positive and the result of the split sample is negative the final result will be deemed a negative. When a follow-up test is conducted on a Flight Attendant who has executed a last chance letter of agreement, and a split sample is collected and the results of both tests are positive, the final result will be deemed conclusively a positive and neither the validity of the tests nor the discharge of the Flight Attendant shall be subject to further review or challenge When a split sample is provided and the result of the tests of the primary sample is positive and the result of the test of the split sample is negative, the final result will be deemed a negative. V. General Should any of this policy be in conflict with existing or future Federal laws or regulations, the parties agree that they shall meet to amend this policy to comply with such Federal laws or regulations Should state or local laws be found to be inconsistent with this policy and binding upon TWA and its employees, the parties shall meet and agree upon how the policy shall be applied in such states. AGREED AND ACCEPTED For IFFA: By /s/ Victoria L. Frankovich, President Date: September 22, 1994 For TWA: By /s/ William L. Schecter Vice President, Labor Relations Date: September 22, 1994 ARTICLE 29 / Page 54 LETTER XXVI - JOINT DRUG POLICY (APPENDIX LETTER OF AGREEMENT) DATE Name Flight Attendant Address City, State, Zip Dear --------------- On , you were tested for drugs (or alcohol) pursuant to the -------- procedures which have been adopted pursuant to federal regulations and approved by the FAA. The test sample submitted by you on that date tested positive for drugs (or alcohol) in your system. [For drug tests only, add the following:] The result was reviewed by TWA's Medical Review Officer ("MRO") who verified the result and determined that there was no legitimate explanation for the test result that is consistent with permissible drug use. Under the Joint TWA-IAM Drug and Alcohol Policy, you are hereby provided a one time second chance to avoid discharge and secure return to active service as a TWA Flight Attendant. This one-time second chance is subject to the following: 1. You will initially be removed from active service from Trans World Airlines with the ability to return to active service. As a condition of such return you will, if deemed necessary, enroll in or will have completed an approved drug (alcohol) rehabilitation program prescribed by TWA's Special Health Services ("SHS"). If such participation is deemed necessary by SHS, you must successfully complete the approved rehabilitation program and receive authorization to return to active service. 2. By signing this letter of agreement, you agree that your subsequent return to active service is conditioned upon your compliance with all requirements set forth in the Joint TWA- IAM Drug and Alcohol Policy and this letter. 3. This letter of agreement shall constitute a full and final resolution concerning your positive drug (alcohol) test, and TWA disciplinary or other action as a result of such positive test; and you agree not to file any new grievances, complaints, or claims of any nature against TWA or IAM in connection with your positive test, discipline, or other action taken as a result thereof. ARTICLE 29 / Page 55 It is important to understand, however, that the option to enroll in a rehabilitation program and sign this letter of agreement provides you a one-time opportunity for return to active service as a Flight Attendant. This one-time opportunity for return to active service will not be repeated if you violate the Joint TWA-IAM Drug and Alcohol Policy in the future. Return to active service is contingent upon satisfactory completion of the rehabilitation program, evaluation and full compliance with all post rehabilitation requirements. If you do not agree to all conditions as set forth in this letter of agreement, you shall be discharged from Trans World Airlines, Inc., subject only to procedures of Articles 16 and 17 of the TWA-IAM Basic Agreement. The requirements for participation in the rehabilitation program are as follows: You must enter a drug (or alcohol) rehabilitation program jointly approved by TWA and IAM and successfully complete (or have completed) such program in accordance with SHS guidelines and objectives to the satisfaction of TWA's Medical Review Officer and/or TWA SHS. While actively participating in the rehabilitation program, you will be coded as on "Personal Illness". Before return to active service, you will undergo another drug (alcohol) test, must pass that test, and be released to return to active duty by the MRO and/or TWA SHS in accordance with applicable governmental regulations. In addition, you must comply with the following requirements after completing the program: 1. You will abstain from the use of medically unauthorized drugs or illegal substances (alcohol). 2. You agree to undergo further drug (alcohol) tests for a period of up to two (2) years, as determined following your return to duty, on an unannounced basis, at any time to ensure that you remain drug (alcohol)-free. If you fail to comply with any of the above conditions or in the event that such a test reveals unlawful drug or alcohol use, you understand that you will be discharged from TWA and no mitigating factors will be considered and there will be no additional opportunity for reinstatement or for continued employment with TWA. If you accept the terms and conditions of this letter of agreement and agree to be bound by the provisions of the Joint TWA-IAM Drug and Alcohol Policy you must sign and date the original of this letter and return it to me. A copy of this letter of agreement will remain in your personnel file for a period of two (2) years. I wish to make it clear to you that whether or not you sign this letter of agreement is your personal decision. I urge you to make sure that you understand completely all of the terms and conditions of this Agreement and that you consult with a Union representative or any other person(s) you wish before making this decision. Very truly yours, In-Flight Services ARTICLE 29 / Page 56 I accept all of the terms and conditions of this letter of agreement for rehabilitation and return to active service and agree to comply with all of my obligations as stated above. I acknowledge that I fully understand all of such terms and conditions and that I have had ample opportunity to review them. Date: -------------------------- -------------------------------------- (Flight Attendant) Agreed and Accepted: IAM Representative ARTICLE 29 / Page 57 LETTER XXVII - DRUG TEST TECHNICIAN Originally dated 5/18/95 Amended August 1, 1999 This letter confirms that all drug testing notification of Flight Attendants shall be provided through ACARS notification and non-IAM employee notification at domiciles. Inflight shall work with the IAM to establish an appropriate "drug notification" form to be hand-delivered to Flight Attendants at the domiciles. At outlying stations, individual notifications shall be accomplished by the Station Manager. If the Station Manager is not on-duty at the time of the scheduled notification, the Employee-in-Charge (E.I.C.) shall provide the individual notification using the appropriate "drug notification" form. This letter confirms the agreement concerning those instances when a testing technician is not present at the drug/alcohol test facility at the time a Flight Attendant reports for a random drug and/or alcohol test. Once notified of a random test, the Flight Attendant must proceed immediately to the test facility upon arrival of her/his flight. The Flight Attendant will be required to wait for the testing technician at the test facility for (1) one hour after scheduled or actual block in of her/his flight, whichever is later. If the testing technician does not appear at the test site within the time frame of one (1) hour as specified above, the Flight Attendant must request authorization to depart the test facility from her/his domicile supervisor on duty, during normal In- Flight office hours who will authorize such release. After close of normal office hours, the Flight Attendant must contact the Crew Schedule Manager on Duty who will authorize her/his departure from the test facility. If the test technician appears at the test facility prior to the Flight Attendants receiving authorization to depart, the Flight Attendant will be expected to proceed with the test. /s/ Terry Hayes Vice-President Labor Relations TWA /s/ Sherry Cooper IAM Dated: 8/1/99 ARTICLE 29 / Page 58 LETTER XXVIII - MATERNITY LEAVES OF ABSENCE - UNEMPLOYMENT October 11, 1978 Mr. Arthur Teolis President Independent Federation of Flight Attendants 630 Third Avenue New York, New York 10017 Dear Mr. Teolis: Re: Unemployment Insurance - Maternity Leaves of Absence This will confirm our recent discussions wherein I indicated that the Company will not oppose or controvert any application for unemployment insurance by a Flight Attendant who is required, pursuant to the provisions of Article 15(G), to take a maternity leave of absence. However, this policy will be applicable only so long as Flight Attendants do not receive sick pay and/or disability pay for pregnancy. Very truly yours, /s/ J. C. Hilly Vice President Labor Relations Agreed and Accepted: /s/ Arthur Teolis ARTICLE 29 / Page 59 LETTER XXIX - 747SP AGREEMENT Dated: New York, New York, November 3, 1980 As the result of negotiations conducted between the Independent Federation of Flight Attendants ("Union") and Trans World Airlines, Inc. ("Company"), pursuant to Article 27(B) of the present Contract, the parties have agreed to the following modifications of their current collective bargaining agreement. These modifications shall effect only and solely the B-747-SP aircraft fleet presently operated by the Company and any additions thereto, which may be operated in the future: A. Excess on Duty for Long Haul Flights On B-747-SP flights scheduled for 12 hours or more block to block, flight attendants shall receive $10.00 per hour or fraction thereof prorated for each hour actually flown in excess of 12 hours block to block. Such compensation shall be in addition to any other form of payment under the Agreement and shall not be offset or reduced in any way whatsoever. The amount earned under this provision shall not count towards quarterly pay or credit limitation. B. Crew Rest Provisions (Bunks) In addition to the provisions of Paragraph 6(B)(S) of the current collective bargaining agreement between the parties, the Company shall provide a self-contained, walled, well-ventilated bunk compartment which may be used only by flight attendants who serve as productive crew members on B-747-SP aircraft utilized on nonstop flights scheduled for 12 or more block to block hours duration. The compartment may be placed in any zone on the aircraft and will be large enough to accommodate at least four (4) bunks and mattresses of adequate size and will have a safe means of access to the upper bunks. The bunks will be equipped with individual black-out curtains, emergency oxygen masks, reading lights and fresh air outlets. On any B-747-SP flight which has a scheduled block-to-block time of between 10:00 and 11:59 hours, the Company will provide four (4) First Class seats for exclusive use by flight attendants for rest and sleeping purposes. These four (4) First Class seats shall be blocked and curtained as soon as possible by the Company but in no case later than 15 days after the date of signing of this agreement. (For purposes of this provision, First Class seats are defined as being ARTICLE 29 / Page 60 those non-sleeper reclining type First Class seats which have the same dimensions as the normal non-sleeper First Class seat.) It is understood, however, that such blocked and curtained First Class seats may be located in the area designated "A zone", the "upper deck" or the left side of "B zone" in rows 15 and 16. They may also be placed along a bulkhead on the left or right side of the fuselage in "B zone" only if "B zone" is reconfigured to include all First Class type seats as its regular seat complement. C. Minimum Rest at Layover Station Scheduled Flight Time Scheduled Rest Time Actual Rest Time (block-to-block) (release to report) release to report) ---------------- ------------------- ------------------ :00 - 12:00 12:00 12:00 12:01 - 14:00 24:00 24:00 14:01 and over 42:00 39:00 For purpose of this provision, the rest period is defined as being free from all duty with the Company. If a Flight Attendant is released at a scheduled layover station, the above-referenced rest periods are based upon the scheduled block-to-block time on the flight which assigned. In instances of a non-scheduled stop where the flight attendants are released for rest, the actual rest due will be determined by the actual block-to-block flight time flown during the on-duty period as dictated by the following chart: Actual Rest Actual Block-to-Block (release to report) --------------------- ------------------- :00 - 12:00 12 12:01 - 14:00 24 14:01 and over 39 D. Crew Complement 1. International (i) Long Haul (4 hours or more scheduled block-to-block) 8 Cabin Attendants ) 1 Flight Purser ) +2 additional Cabin Attendants 1 Service Manager ) at penalty points of 253 & 277. In addition: + 1 additional Cabin Attendant on flights scheduled with block-to-block of 12:00 hours or more with passenger load of 170 + 1 additional Cabin Attendant on flights scheduled ARTICLE 29 / Page 61 with block-to-block of 14:00 hours or more with passenger load of 250. (ii) Short Haul/Intra-European (3:59 hours or less scheduled block-to-block) 7 Cabin Attendants ) 1 Flight Purser ) +1 additional Cabin Attendant 1 Service Manager ) at penalty point of 225. (iii) Charter 10 Cabin Attendants 1 Flight Purser 1 Service Manager In addition: +1 additional Cabin Attendant on flights scheduled with block-to-block of 12:00 hours or more with passenger toad of 200 +1 additional Cabin Attendant on flights scheduled with block-to-block of 14:00 hours or more with passenger load of 250. 2. Domestic (i) Long Haul (4 hours or more scheduled block-to-block) 8 Cabin Attendants ) +2 additional Cabin Attendants at 1 Service Manager ) penalty points of 230 & 258. OR +1 additional Cabin Attendant on flights operated between 2000 and 0800, local time, that have meal service at penalty point of 230. OR +0 additional Cabin Attendant on flights operated between 2000 and 0800, local time, that have no meal service. ARTICLE 29 / Page 62 (ii) Short Haul (3:59 hours or less scheduled block-to- block) 7 Cabin Attendants ) +1 additional Cabin Attendant at 1 Service Manager ) penalty point of 200. OR +0 additional Cabin Attendant on flights operated between 2000 and 0800, local time, that have no meal service. (iii) Charter 10 Cabin Attendants ) 1 Service Manager ) At all times 3. General Provisions for International & Domestic (i) Meal service will be defined as anything served on any type of tray. (ii) No meal service will include the service of liquor, beverage, peanuts, donuts or the like. (iii) All basic and additional flight attendant positions listed above will be protected by the provisions of Article 26. E. This Agreement is subject to ratification by IFFA membership and approval by their Executive Board. IN WITNESS WHEREOF the parties have signed this Agreement on November 3, 1980. For the Company: For the Flight Attendants in the Service of Trans World Airlines, Inc. as TRANS WORLD AIRLINES, INC. Represented by the Independent Federation of Flight Attendants Allen S. Mathers Victoria L. Frankovich Director - Labor Relations Vice President Flight Attendants WITNESS: WITNESS: Hank Ward John Salvador ARTICLE 29 / Page 63 LETTER XXX - RE-ENGINEERING OF TWA [9/22/94] LETTER OF AGREEMENT RE-ENGINEERING OF TWA Preamble This Agreement represents a fresh beginning and a new direction in the entire relationship between TWA and the IAM. It embodies principles of meaningful participative management of the airline and all aspects of TWA operations as they affect Flight Attendants both on and off the job; acknowledges employee ownership and the correlative interests of Flight Attendant-owners in the determination of objectives and methods of achieving the highest quality of customer service and TWA prosperity; recognizes that the purpose of management personnel and policy is to provide support for its employees in the performance of In-flight service and safety, and to eliminate and correct problems in the work environment that interfere with or distract from high quality work performance on an individual or collective basis. This Agreement therefore commits TWA and the IAM to a reengineering of the In Flight Service Department, full integration of the IAM and the Flight Attendants (collectively the IAM) into all areas and aspects of TWA operations affecting Flight Attendants, and joint decision-making on all such matters. Self-managed teams will be the basic building blocks of the In-Flight organization. Recognizing that a re-engineering process including the improvement of TWA services, enhancement of Flight Attendant work environment and quality of life, and increase in job satisfaction and earning potential - - is an ongoing responsibility; this document represents a living and flexible covenant. TWA and the IAM shall, after its execution, continue to meet, negotiate, solve problems and improve employment opportunity on an ongoing basis. 1. Consensus Decision-Making and Responsiveness to Flight Attendants. Decisions involving the airline as a whole, In-Flight Services and individual Flight Attendants, affect all Flight Attendants both on and off the job. Best value decisions will be most supportive of the In-Flight Services mission, philosophy and values and will be arrived at through established steps of consensus decision making. Any Flight Attendant problem or complaint, arising in connection with any aspect of the job, will be taken seriously and addressed promptly in recognition of the value and worth that each employee brings to this airline. In a re-engineered workplace, TWA and the IAM mutually share the obligation of responsiveness to Flight Attendants. Flight Attendants, as represented by the IAM, have valuable experience and insights and possess a wealth of knowledge and skills that are recognized and will be utilized to the mutual advancement of the airline and the Flight Attendants. To these ends, in matters relating to operation of the airline as they affect Flight Attendants, policy shall be established and implemented by TWA and the IAM, ARTICLE 29 / Page 64 as co-equals, on the basis of joint decision-making and co- responsiveness to Flight Attendant employment matters, within the following structure: a. President and Directing General Chairman - District Lodge --------------------------------------------------------- 142 or designee(s) TWA President and Senior Officers: all ------------------ matters and issues relating to overall airline policy including, but not limited to, finance; airline expansion and contraction; airline acquisition replacement/employment policy affecting all TWA employees including Flight Attendants; and the overall implementation of and improvement upon terms of this Agreement. (see paragraph 6 below) b. General Chairpersons or designees - President and Vice --------------------------------- President - TWA Vice President, In-Flight Services and Department Heads: all matters and issues including administration and oversight, relating to In-Flight policy and procedures; all TWA operations as they affect Flight Attendants; and an overall implementation and improvement upon terms of this Agreement not performed in accordance with (a) above. c. At each domicile, IAM Domicile Chair - General Manager and Managers, In Flight: all matters and issues relating to this Agreement, and its improvement, affecting the individual domicile and Flight Attendants within the Domicile and its satellites, including grievances arising under Article 16. d. At each Domicile, three (3) IAM Representatives - TWA Domicile Coordinators (Supervisor): all matters and issues, relating to the providing of needed support for Flight Attendants within the domicile; and all matters relating to individual Flight Attendants or specific problems of one or more Flight Attendants involving interpretation of this Agreement or benefits, rights, and protection provided herein. Flight Attendants will be empowered and encouraged to exercise their responsibility and authority. They will be given the opportunity to use common sense, solve problems and exceed customer expectations. e. IAM Medical, Safety, Workers' Compensation/Benefits/Payroll Directors/Representatives (2) - TWA Director Medical; TWA Director Safety, TWA Director Workers' Compensation, TWA Director Benefits and TWA Director Payroll: all matters relating to individual Flight Attendant claims, problems and complaints relating to the aforesaid, respecting the right of the Flight Attendant to request confidentiality. In addition and in coordination with the domicile, the development by no later than January 1, 1995 of (1) the precise Flight Attendant job description - with updates as needed thereafter - including nature and extent of physical requirements; (2) programs designed to rehabilitate injured workers for earliest return to the job including such programs as, work hardening, and wellness programs. ARTICLE 29 / Page 65 f. IAM Director In-Flight Service Operations and Training - TWA In-Flight Service Operations and Training Designee: in coordination with the domiciles, all matters relating to operations and training of Flight Attendants including but not limited to new hire training, Annual Emergency Reviews, equipment and service training, and training of Flight Attendants in the ongoing re-engineering of the Airline as specified in this Agreement; and determination of need for, and selection of, Flight Attendants for Special or other Assignment in connection with temporary or permanent duties related to In-Flight Operations and Training. g. IAM Director Flight Attendant Crew Operations and Scheduling Representatives - TWA Director Flight Attendant Crew Operations; Managers Crew Resources, Crew Schedule, Operational Planning and Variable Staffing Unit: all matters relating to policy and procedures in connection with construction of pairings/sequences; reserve utilization, away from domicile reassignment; amendments to, or improvement of, the Away From Domicile Scheduling Policy; and policies/procedures in implementing and enhancing efficiency of operation through the Variable Cabin Staffing provisions of the Agreement. h. IAM Director Professional Standards and Special Health Services - TWA Director Special Health Services and other TWA personnel: all matters relating to overall administration of Professional Standards and Special Health Services policy as applied to Flight Attendants on general as well as individual basis. 2. Training Training will be essential to introduce the In-Flight team members to the concepts of union-management partnership, team building, self-management, conflict resolution and consensus decision making. The ongoing training objective will also focus on application of people skills. It is Therefore Agreed: a. Such training shall be jointly developed by representatives of In-Flight Services and the IAM in conjunction with such other personnel and/or outside consultant(s) as may be jointly determined. b. Flight Attendants shall have the ability to participate in forty (40) hours of training each year to enhance their understanding of the issues described herein. c. Such training may be provided in crew briefings, specific training sessions, home study, recommended reading, videos, seminars or other methods as determined in accordance with (a) and (b) above. ARTICLE 29 / Page 66 3. Flight Attendant Crew Schedule and Operational Planning The timely, efficient and professional delivery of in-flight services to TWA passengers is central to the overall mission and success of the airline. TWA and the IAM mutually recognize (1) the overall importance of the In-Flight Services Department, to both TWA and to working Flight Attendants, in the delivery of TWA service and product and (2) the unique expertise and resources of the personnel, including Flight Attendants, IAM representatives and In-Flight management employees, within the In-Flight Services Department in determining the means and methods of delivery of in- flight service to the traveling public. Consistent with the foregoing and with principles of Participative Management embodied in this Agreement, the IAM and TWA agree: (1) TWA, the IAM, and outside consultants shall continue to explore the most feasible and most efficient manner of integrating TWA's Crew Scheduling, Operational Planning, Crew Allocation and Resources and Variable Staffing Unit into the In-Flight Services Department, TWA operational needs and Flight Attendant work schedules. (2) Effective immediately and irrespective of jurisdictional placement issues specified in (1) above, the IAM Scheduling Director and Advocates/Representatives shall, in addition to assisting individual Flight Attendants in the resolution of specific questions, problems and complaints related to scheduling or operational planning, work with TWA Scheduling and Operational Planning, Crew Allocation and Resources and Variable Staffing Unit personnel and, together with such personnel, determine Scheduling, Operational Planning and Crew Allocation and Resource policies and resolve issues of general applicability to Flight Attendants; by no later than January 1, 1995, IAM representatives and TWA representatives shall jointly determine the administrative structure of the Flight Attendant Scheduling and Operational planning, Crew Allocation and resources and Variable Staffing Unit functions and operation within the In-Flight Services Department, including lines of authority and reporting. 4. IAM Representatives With the exception of the President, Vice President, and in addition to the six (6) representatives enumerated in Article 16, the IAM representatives specified herein shall be paid by TWA in the manner set forth in Article 16. 5. IAM Representation Nothing contained in the Agreement shall abrogate in any way the rights of union representation, in grievance or otherwise, of any Flight Attendant. Any issue, grievance or complaint may be resolved by TWA and the IAM through ARTICLE 29 / Page 67 the co-equal lines of decision-making or through the procedures of Article 16. Any Flight Attendant may invoke the procedures of Article 16 over any matter or dispute arising out of the Agreement. If such dispute is not resolved either through joint decision-making or Article 16, it may be submitted to the final and binding dispute resolution procedures specified in Article 17. In proceedings conducted under Article 17, no joint decision maker directly involved in the issue at question shall participate as a member of the System Board determining the issue. Neither statements made, positions taken by the IAM representative, nor the fact that the IAM representative concurred in, the challenged decision, shall be referred to or introduced into evidence in such System Board proceeding. 6. Management/Labor Advisory Task Force The Management/Labor Advisory Task Force ("Task Force") established in 1994 shall become a permanent part of the corporate structure. Participation on the Task Force by the most senior officials of both the Company and its three largest unions highlights the joint commitment to the re-engineering effort and creates a decision making forum for action. The Task Force will meet at least once a month and will have the authority to create similar committees throughout the Company. These other committees may be department specific, issue specific, or cross departmental and/or operational lines. All such committees shall ultimately report to the Task Force. The Task Force shall continuously monitor all aspects of the Company including its structure, policies, procedures, long and short term business and financial plans, communications strategies, and any and all other matters involving the Company. The Company shall institute procedures to ensure that the recommendations of the Task Force and the committees are promptly acted upon. The Company shall pay the flight pay loss and expenses of the IAM representatives on the Task Force and all such committees and shall provide the necessary and appropriate insurance coverage for the performance of the duties of each IAM representatives. The Task Force Committee structure shall become a part of the company's Management Policies and Procedures Manual. 7. Filling of Positions in In-Flight In redefining the role of front line management, In-Flight Services and the IAM commit to the concepts of self-management, empowerment, consensus decision making, and team building. To that end, In-Flight Services and the IAM shall, no later than November 1, 1994 begin to jointly develop and administer a recruitment and selection process for all In-Flight personnel. ARTICLE 29 / Page 68 8. Access to Information The Company shall provide to the General Chairpersons of District Lodge 142 or their designee of the IAM or her/his representative, a monthly report setting forth information on the Company. The Company shall provide to the IAM's representatives on the Task Force and its related committees such information as may be required to carry out their work. 9. Management Consultant By March 31, 1995, the Company shall retain a management consulting firm to fully review and analyze the Company's management structure. The members of the Task Force shall be entitled to meet regularly with this firm following its retention and to review its results prior to implementation. 10. Communication Improvement The Company shall make a good faith effort to improve communications within management and between management and the employees. The IAM and the Company agree to meet and to set goals achieving such improvement, including staff meetings, road shows, newsletters, surveys and financial updates. The IAM shall make its expertise and resources reasonably available to assist the Company in improving its communication with employees represented by the IAM. TRANS WORLD AIRLINES, Inc. By: Thomas Gorski Vice-President, In-Flight Services Date: September 22, 1994 INDEPENDENT FEDERATION OF FLIGHT ATTENDANTS By: Victoria L. Frankovich President Date: September 22, 1994 Amended to integrate IAM and its organizational levels by: TRANS WORLD AIRLINES, Inc. /s/ Terry L. Hayes Vice President, Labor Relations IAM /s/ Sherry L. Cooper General Chairperson Date: August 1, 1999 ARTICLE 29 / Page 69 LETTER XXXI - ORDER OF REMOVAL - GROUND SERVICE MANUAL [9/22/94] Dated: September 9, 1994 ORDER OF REMOVAL - GSM The Company agrees to review with IFFA the Order of Removal in the Ground Service Manual, specifically as it applies to XCAP and ACM classifications, and make those corrections necessary to bring the manual into contractual compliance. TRANS WORLD AIRLINES, Inc. By: /s/ Thomas Gorski Vice-President, Inflight Services Date: September 22, 1994 INDEPENDENT FEDERATION OF FLIGHT ATTENDANTS By: /s/ Victoria L. Frankovich President Date: September 22, 1994 ARTICLE 29 / Page 70 LETTER XXXII - PREFERENTIAL BIDDING [9/22/94] IFFA and TWA agree to a test of a Preferential Bidding Program. 1. The test will be conducted for a six (6) month period using a mutually agreed upon Flight Attendant location and category. 2. The test will commence as soon as practical once a mutually agreed upon vendor of a Preferential Bidding Program has been selected. Progress reports will be provided IFFA monthly with a targeted start-up date of 4/30/95. 3. During the first two (2) months of the test period, Flight Attendants will submit bid preferences utilizing both the current TWA Crew Allocations-generated bid package and the vendor Preferential Bidding Program. Flight Attendants will fly the lines of the time that they are awarded from the TWA Crew Allocations CAMS bid award process. 4. Beginning with the third month of the test period Flight Attendants will bid and fly lines of time awarded by the Preferential Bidding System. 5. At the conclusion of the 6-month test period, IFFA and TWA will jointly evaluate the results. If the decision is made to implement the program on a permanent basis, system-wide application will be made as soon as practical. 6. IFFA Representatives will meet with TWA Representatives on a monthly basis to review the bid awards, determine bid request satisfaction levels, correct bid award errors and identify outstanding problems concerning the bidding process. NOTE: If the test proves successful and preferential bidding is implemented on a permanent basis, Article 18(A), (B), (C) and (D) will be affected, and the parties shall promptly meet to award related provisions so as to be consistent with preferential bidding. TRANS WORLD AIRLINES, INC. /s/ William L. Schecter Vice President, Labor Relations Date: September 22, 1994 IFFA By: Victoria L. Frankovich President Date: September 22, 1994 ARTICLE 29 / Page 71 LETTER XXXIII - IFFA-TWA PAY STUDY COMMITTEE September 24, 1994 There is hereby established a Joint Pay Study Committee consisting of the IFFA president or her/his designee and two other members appointed by IFFA, and the Vice President, In-Flight Services or her/his designee and two members appointed by In-Flight Services. The Committee shall review and make recommendations concerning revisions in Flight Attendant pay structure based on industry averages; pay simplification; equalization of International and Domestic pay; and correction of contract/pay inequities and anomalies. The Committee shall commence its review no later than January 1, 1995. TRANS WORLD AIRLINES, Inc. /s/ Thomas Gorski Vice-President, In-Flight Services Date: September 22, 1994 INDEPENDENT FEDERATION OF FLIGHT ATTENDANTS /s/ Victoria L. Frankovich President Date: September 22, 1994 ARTICLE 29 / Page 72 LETTER XXXIV - VOLUNTARY RELEASE OF LAYOVER HOTEL ROOMS [9/22/94] VOLUNTARY RELEASE OF LAYOVER HOTEL ROOMS TWA and IFFA agree to continue the Voluntary Release of Layover Hotel Rooms. The program will provide for a $10.00 rebate for each voluntary release of an eligible hotel room on the domestic and international operations. In order to qualify for this rebate, the Flight Attendant must follow agreed-upon procedures and notify the Company at least twelve (12 hours prior to the arrival of the inbound flight for the specific layover. A listing of eligible hotels at which this voluntary release of rooms is applicable will be provided. Representatives of TWA and IFFA will continue to establish the procedures with the Director of Hotel Administration no later than November 1, 1994. TRANS WORLD AIRLINES, INC. /s/ Thomas Gorski Vice-President, In-Flight Services Date: September 22, 1994 INDEPENDENT FEDERATION OF FLIGHT ATTENDANTS /s/ Victoria L. Frankovich President Date: September 22, 1994 ARTICLE 29 / Page 73 LETTER XXXV - DIRECT REPORT [5/31/94] May 31, 1994 Ms. Victoria Frankovich President Independent Federation of Flight Attendants 630 Third Avenue New York, NY 10017 Dear Ms. Frankovich: A Flight Attendant who is scheduled to begin his/her flight assignment by a deadhead flight segment(s) out of his/her domicile/satellite shall be permitted, upon notification to Crew Schedule, to report directly to the departure station of the first working flight segment of such flight assignment. The notification to Crew Schedule must occur no later than two (2) hours prior to the departure of the domicile/satellite deadhead flight segment, giving Crew Schedule sufficient time to stand up the appropriate Flight attendants if necessary. A Flight Attendant utilizing the provisions described in this letter of agreement, will be required to fill out a computer mask showing the waived deadhead. The Flight Attendant shall be deemed to have actually performed the deadhead assignment as scheduled except that his/her trip expenses shall commence at the scheduled departure time of the first segment that the Flight Attendant actually protects. In the event that a layover is scheduled prior to the first segment actually worked by the Flight Attendant, he/she shall be provided with the necessary hotel accommodations. The Flight Attendant shall be required to notify the JFK Hotel Desk, using the 800 number or the mask entry in the bid package to cancel any hotel accommodations that are not needed. The ability to "direct report" cannot be utilized for deadheads associated with charter or reserve assignments. If this letter accurately reflects your understanding, please indicate by signing below. Very truly yours, /s/ Bette Dubinsky Manager - Labor Relations Agreed and Accepted: /s/ Victoria Frankovich ARTICLE 29 / Page 74 LETTER XXXVI - PTO COMPUTER MASK [6/1/94] June 1, 1994 Ms. Victoria Frankovich President Independent Federation of Flight Attendants 630 Third Avenue New York, NY 10017 Dear Ms. Frankovich: It is agreed that the company shall adjust the computer mask used by the Flight Attendants to request whole month, half month, specific dates or any range of days off for PTO. The awarding of the PTO, including last minute/short notice PTO, shall always be on a first come, first serve basis, via such computer request, documenting the date and time of each request. The award of all requests will be by domicile positions and listed in order of input by type of PTO requested, i.e. all full month requests will be listed on a report by domicile/position, all first half month will be listed on a different report by domicile/position. The PTO computer mask for the month will be available forty-five (45) days prior to the start of the specific month and will be open, accepting all requests until the actual contract month has come to an end. If this letter accurately reflects your understanding, please indicate by signing below. Very truly yours, /s/ Bette E. Dubinsky Manager, Labor Relations BED/bw Agreed and Accepted: Victoria Frankovich ARTICLE 29 / Page 75 LETTER XXXVII - CODE 4/UBS OVERRIDE [7/28/94] July 28, 1994 William L. Schecter Vice President - Labor Relations Trans World Airlines, Inc. Building 60, Terminal 4A JFK International Airport Jamaica, NY 11430 Re: IFFA-TWA Code 4/UBS Override ------------------- Dear Mr. Schecter: This letter will confirm our agreement concerning the IAM's obligation to reimburse TWA for payroll-related and non-payroll-related benefits and other TWA employment costs, in excess of salary, associated with the removal of Flight Attendants from TWA flight duty at IAM request for purposes of union-related business (Code 4/UBS override). It is understood and agreed: (1) TWA forever releases and forgives IFFA of and from any debt or obligation, if any, that may exist on IFFA's part, which IFFA expressly denies, in connection with Code 4/UBS override for Flight Attendants removed from TWA flight duty on Code 4/UBS at IFFA's request prior to August 1, 1994; this release shall become effective upon payment by IFFA to TWA of the Code 4/UBS salary and override (computed at 35% of salary), if any, for the period prior to August 1, 1994. (2) IFFA shall pay TWA Code 4/UBS override equal to forty (40%) of salary of Flight Attendants removed from TWA flight duty, on and after August 1, 1994, on Code 4/UBS at IFFA's request for purposes of union-related business. If the foregoing accurately reflects your understanding, please signify by signing below. Sincerely, /s/ Victoria Frankovich Agreed and Accepted /s/ William L. Schecter ARTICLE 29 / Page 76 LETTER XXXVIII - PROFESSIONAL STANDARDS COMMITTEE LETTER OF AGREEMENT BETWEEN TRANS WORLD AIRLINES. INC. (TWA) AND THE FLIGHT ATTENDANTS AS REPRESENTED BY THE IAM WHEREAS, it is in the best interests of TWA, its Flight Attendants and the travelling public to ensure the highest standards of safety and service among its Flight Attendants; and WHEREAS, it is in the best interests of TWA and its Flight Attendants to ensure the most productive work environment with the earliest possible resolution of disputes of problems within the Flight Attendant workforce; and WHEREAS, certain job performance issues are best addressed and resolved by and among peers. NOW THEREFORE, IT IS AGREED: The Company agrees that disputes that arise regarding employee conflicts and professional conduct which may come to the Company's attention may be referred to the IAM Professional Standards Committee. The Company further agrees that this Letter will be utilized and applied in exactly the same manner as Letter of Agreement VII is applied as contained in the TWA-ALPA Agreement. Whenever TWA refers an issue to the IAM Professional Standards Committee, the Committee shall normally have a period of thirty (30) days or such longer period as may be designated by mutual agreement, during which to attempt to resolve the problem. During such thirty day (or longer) period. TWA agrees to hold in abeyance any action it may have commenced or contemplated taking. At or before the end of the thirty day or longer period the IAM Professional Standards Committee shall make a verbal report to appropriate management either that "the problem is resolved" or that the "IAM Professional Standards Committee is unable to be of any further assistance". In the event that successful resolution of a problem is not attained by the committee within the above thirty day (or longer) period. TWA is then free to take whatever action it deems appropriate in order to resolve the problem. In cases where TWA would elect to ARTICLE 29 / Page 77 commence or continue disciplinary proceedings the delay caused by the thirty day (or longer) period to arrive at a successful resolution, will not be raised by the IAM as supporting its position. In cases where TWA commenced adverse action against a Flight Attendant prior to referring the issue to the IAM Professional Standards Committee, the disciplinary time clock will stop and the thirty day (or longer) period in which the IAM Professional Standards Committee attempted to resolve the problem shall not count toward the established time limits for the filing of a grievance. After the thirty day (or longer) period has past. the Company shall resume the time limit count continuing from the last day the count was suspended and prior to referring the issue to the IAM Professional Standards Committee. TWA further agrees that no IAM Professional Standards Committee member will be asked or required by TWA to testify in any disciplinary case that has been previously referred to the Committee by TWA. IT IS FURTHER AGREED: That TWA shall, in connection with any case referred by it and if so requested by the IAM Professional Standards Committee, encourage any employee involved in a dispute to work with the Committee to attempt to attain an amicable and equitable resolution of the problem. IT IS FURTHER AGREED: That it will be the solemn responsibility of the members of the IAM Professional Standards Committee to uphold the highest standards of safety, service and professionalism among the work force and will accomplish that by; 1) Aiding in the resolution of flight conduct problems which affect the safety and/or the professional conduct of a flight. 2) Aiding in the resolution of conflicts between Flight Attendants when these conflicts may affect the safety and/or the professional conduct of a flight. 3) Aiding in the resolution of conflicts between a Flight Attendant, a member of another employee group, or another individual when the conflict may affect the safety and/or professional conduct of a flight. 4) Promoting understanding that Flight Attendant conduct off the aircraft has a favorable or unfavorable reflection upon the profession, therefore, such conduct must be addressed if it reflects negatively upon the profession. 5) Proceeding with respect for the individual by offering supportive peer counseling which protests the individuals self-esteem. ARTICLE 29 / Page 78 6) Promoting the highest standards of professional conduct through regular communication with the Flight Attendant group through newsletters and other such vehicles. IT IS FURTHER AGREED: That, the proceedings of the IAM Professional Standards Committee shall be kept and remain confidential to the fullest extent practicable. That the provisions of this Letter of Agreement and the procedures delineated herein shall in no way alter or diminish TWA's authority to ensure proficiency and air safety nor shall they abridge or infringe upon TWA's, the IAM's or a Flight Attendant's rights under the IAM - TWA Collective Bargaining Agreement. AGREED AND ACCEPTED: Trans World Airlines, Inc. /s/ TERRY L. HAYES IAM /s/ SHERRY L. COOPER ARTICLE 29 / Page 79 LETTER XXXIX - OK'ING RESERVE ASSIGNMENT AND CHANGES TO BID AWARDS [2/9/95] February 9, 1995 Ms. Victoria Frankovich President Independent Federation of Flight Attendants 720 Olive Street, Suite 1700 St. Louis, MO 63101 Dear Ms. Frankovich: It is agreed that the Company will allow Flight Attendants to O.K. reserve assignments and changes to line holder bid awards via computer input, except during the hours of 0900 and 1000 and 2100 and 2200 daily, local domicile time. The ability to O.K. via computer will be effective with the sequence notification date and time as published in the Flight Attendant bid packages. If the foregoing accurately states the terms of this agreement, please sign one copy where indicated below and return that fully executed copy to my office. Very truly yours, /s/ Bette E. Dubinsky Director Labor Relations, Inflight BED: jdc Agreed and Accepted: /s/ Victoria Frankovich ARTICLE 29 / Page 80 LETTER XL - RESERVE SPREAD [4/19/95] April 19, 1995 Ms. Victoria Frankovich President IFFA 720 Olive Street, Suite 1700 St. Louis, MO 63101 Dear Ms. Frankovich: This letter will confirm our agreement concerning the expansion of options for reserve spreads. The reserve spread options may include three, four, five and ten day spreads and may be discontinued by mutual consent of the parties with notification to the Director of Crew Scheduling no later than the first of the month preceding the effected month. If the foregoing accurately states the terms of this agreement, please sign one copy where indicated and return that fully executed copy to my office. Very truly yours, /s/ Bette E. Dubinsky Director Labor Relations, Inflight BED:jdc Agreed and Accepted: /s/ Victoria Frankovich ARTICLE 29 / Page 81 LETTER XLI - WORKERS' COMPENSATION TASK FORCE LETTER OF AGREEMENT BETWEEN IFFA AND TRANS WORLD AIRLINES, INC. IFFA and TWA agree that a reduction in the cost of workers' compensation is in the best interest of the Company and the work force. Therefore, TWA commits to establishing a joint task force to reduce such cost. The task force shall consist of representatives of TWA, ALPA, IAM, and IFFA. The initial meeting of the task force shall be held no later than 10/30/94. The task force shall determine specific measures, which if implemented, will reduce workers' compensation costs to or below industry averages. Should TWA and, individually or collectively, any or all of the labor unions agree, such task force may be developed into a Joint Medical Board which shall be responsible for maintaining or improving upon these savings by reviewing: a) facilities b) providers c) fee schedules d) legal requirements e) associated costs f) risk assessment g) problem case reviews The task force shall immediately identify any and all areas of cost savings, related to workers' compensation and such cost saving determinations shall be implemented at the earliest practicable date, but no later than July 1, 1995. TRANS WORLD AIRLINES, Inc. By: /s/ Thomas Gorski Vice-President, In-Flight Services Date: September 22, 1994 INDEPENDENT FEDERATION OF FLIGHT ATTENDANTS By: /s/ Victoria Frankovich President Date: September 22, 1994 ARTICLE 29 / Page 82 LETTER XLII - AMENDMENT TO ARTICLE 24(R) - DEDUCTION OF MEMBERSHIP UNION DUES [10/10/95] October 10, 1995 Ms. Sherry Cooper President Independent Federation of Flight Attendants 720 Olive Street, Suite 1700 St. Louis, MO 63101 Dear Ms. Cooper: This is to confirm the Agreement of the parties that the deduction of membership union dues pursuant to Article 24(R) of the TWA-IFFA Collective Bargaining Agreement will be amended as follows: Deductions of membership dues shall be made from one (1) paycheck each month provided there is a balance in the paycheck sufficient to cover the amount after all other deductions authorized by the employee relating to health benefits or pension benefits or required by law have been justified. In the event of termination of employment, there shall be no obligation of the Company to collect dues until all such other deductions (including money claims of the Company and the Credit Union) have been made, and such obligation to collect dues shall not extend beyond the pay period in which the employee's last day of work occurs. This letter will not affect any other provision of the TWA-IFFA Agreements. If the foregoing accurately reflects our understanding please sign where indicated below. Very truly yours, /s/ Philip B. Whitcomb Staff Vice President Labor Relations PBW:jdc Agreed and Accepted: /s/ Sherry Cooper ARTICLE 29 / Page 83 LETTER XLIII - RESERVE SPREADS August 8, 1995 Michael McDermott Director, Contract and Scheduling Independent Federation of Flight Attendants 720 Olive Street, Suite 1700 St. Louis, MO 63101 Dear Michael: This letter will cancel and supersede my letter dated April 19, 1995. This letter will confirm our agreement concerning the expansion of options for reserve spreads. The reserve spread option may include two, three, four, five and ten day spreads which in combination may not exceed four separate spreads. Such Reserve Spreads or any combinations thereof may be discontinued by mutual consent of the parties with notification to the Director of Crew Scheduling no later than the first of the month preceding the effected month. If the foregoing accurately states the terms of this agreement, please sign one copy where indicated and return that fully executed copy to my office. Very truly yours, /s/ Bette E. Dubinsky Director Labor Relations, In Flight Agreed and Accepted: /s/ Michael McDermott ARTICLE 29 / Page 84 LETTER XLIV - DOWNTOWN LAYOVER HOTELS August 23, 1995 Ms. Bette Dubinsky Director, Labor Relations Trans World Airlines, Inc. One City Centre 515 N. Sixth Street St. Louis, MO 63101 Re: Downtown Layover Hotels Dear Ms. Dubinsky: In accordance with the IFFA/TWA Collective Bargaining Agreement, downtown layover hotels are required for Flight Attendants whose layovers are scheduled for 24 or more hours. During non-routine operations, occasionally Flight Attendants who are scheduled for downtown layovers end up with less than 24 hours from release to report and depending on the amount of delay related to non-routine operations, a Flight Attendant's legal rest could be jeopardized. In order to ensure that Flight Attendants receive sufficient rest at layover stations, IFFA and TWA agree that scheduled downtown layover hotels may be moved to an airport hotel location where the time from release to report is reduced to less than 12 hours. If you agree with the above, please indicate by signing below and return one fully-executed copy to me. Very truly yours, /s/ Michael McDermott Director, Contract Administration AGREED AND ACCEPTED: /s/ Bette Dubinsky TWA Director, Labor Relations cc: V. Frankovich B. Hoffman N. Adams B. Jolley Full-Time Reps. ARTICLE 29 / Page 85 LETTER XLV - RESERVE TRADING August 24, 1995 Michael McDermott Director, Contract and Scheduling Independent Federation of Flight Attendants 720 Olive Street, Suite 1700 St. Louis, MO 63101 Dear Michael: This letter of agreement confirms our understanding permitting Reserve Cabin Attendants to mutually trade flights and expand the parameters governing the Open Trading of their Spread Days. A. Mutual Trading of Flights: ------------------------- Reserve Cabin Attendants may mutually trade their entire assigned pairing no later than the report time of the first affected pairing provided: 1. Pairings operate on the same calendar days. 2. Both pairings are of the same operation. a. Domestic to Domestic b. International to International B. Additional Trading of Spread Days: --------------------------------- All Reserve Spreads vacated due to move-ups prior to the beginning of the new month shall be placed in international open time for trading. 1. All trades must maintain a period of four (4) days of availability between spread days. 2. Trades must result in combinations that do not exceed four separate spreads. 3. Spreads may be traded not later than fifteen (15) hours prior to the first spread affected. 4. Effective with this agreement, two (2), three (3), four (4), and five (5) day spreads, which are on the open flight list, shall be available for trading prior to, but not on/after the first day of the new month. Any additional move-ups which occur on or after the first day of a new month, shall not create additional reserve spread trading, except those of a ten (10) day spread duration. ARTICLE 29 / Page 86 If the foregoing accurately states the terms of this Agreement, please sign one copy where indicated and return one fully-executed original to my office. Very truly yours, /s/ Bette E. Dubinsky Director Labor Relations, In Flight Agreed and Accepted /s/ M. McDermott ARTICLE 29 / Page 87 LETTER XLVI - RESERVE ASSIGNMENT SET-UP/CALL-IN PERIODS September 28, 1995 Ms. Victoria L. Frankovich President Independent Federation of Flight Attendants 720 Olive Street, Suite 1700 St. Louis, MO 63101 Re: P.M. Reserve Assignment Set-up and Call-in Periods Dear Ms. Frankovich: This letter will confirm our agreement concerning the change in the start time of the PM. Reserve Assignment Set-up Period and the PM. Reserve Call in Period. 1. The P.M. Reserve Assignment Set-up Period shall begin at 1900 (previous time was 2100). 2. The P.M. Reserve Call-in Period shall begin at 2000 (previous time was 2200). 3. The end time of the P.M. Reserve Call-in Period remains unchanged, ending at 0100. 4. It is further understood and agreed that all procedures requiring a Reserve Flight Attendant returning from a status that ends at midnight remain in effect. 5. A Flight Attendant who is off duty and is scheduled on a flight that is normally covered from the P.M. Set-up period will lose all rights to such trip at 1730 local domicile time. Any flight that -------------- is vacated will become a soft opening and if said flight is not used for balancing, it will be released for trading and self- balancing not later than 1800 local domicile time. 6. Trading will be suspended during the Set-up period from 1900 to 2000. 7. Only those known open flights departing not earlier than four (4) hours nor later than twenty (20) hours after the end of the Call- in period shall be assigned to a Reserve Flight Attendant. ARTICLE 29 / Page 88 If the foregoing accurately states the terms of this Agreement, please sign one copy where indicated and return one fully-executed original to my office. Very truly yours, /s/ Bette E. Dubinsky Director Labor Relations, In Flight BED:jdc Agreed and Accepted /s/ Victoria L. Frankovich ARTICLE 29 / Page 89 LETTER XLVII - UNION DUES October 10, 1995 Ms. Sherry Cooper President Independent Federation of Flight Attendants 720 Olive Street, Suite 1700 St. Louis, MO 63101 Re: Dues Deduction Dear Ms. Cooper: This is to confirm the Agreement of the parties that the deduction of membership union dues pursuant to Article 24(R) of the TWA-IFFA Collective Bargaining Agreement will be amended as follows: Deductions of membership dues shall be made from one (1) paycheck each month provided there is a balance in the paycheck sufficient to cover the amount after all other deductions authorized by the employee relating to health benefits or pension benefits or required by law have been justified. In the event of termination of employment, there shall be no obligation of the Company to collect dues until all such other deductions (including money claims of the Company and the Credit Union) have been made, and such obligation to collect dues shall not extend beyond the pay period in which the employee's last day of work occurs. This letter will not affect any other provision of the TWA-IFFA Agreements. If the foregoing accurately reflects our understanding please sign where indicated below. Very truly yours, /s/ Philip B. Whitcomb Staff Vice-President Labor Relations, TWA Agreed and Accepted by: /s/ Sherry Cooper ARTICLE 29 / Page 90 LETTER XLVIII - UNIFORMS February 7, 1996 Ms. Sherry Cooper, President IFFA 720 Olive Street, Suite 1700 St. Louis, MO 63101 Dear Sherry: As discussed, TWA has acquired new vendors for Flight Attendant uniform items. Presently, the prices stated in the contract, Article 5(C)(2), are inconsistent with the actual prices paid by TWA to the vendors for additional/accessory uniform items. The enclosed comparison chart reflects the differences that presently exist between TWA costs and the IFFA contract. As is apparent several of the items are considerably less in price than as stated in the contract, enabling us to pass the savings onto the Flight Attendant work force. An increase is noted for shirts and the unisex tie, while the Flight Attendant wings, service stars and hash marks remain the same. By this Letter of Agreement, the parties concur that the prices as stated on the enclosed form reflect the costs that will be paid by all Flight Attendants for additional/accessory uniform items. If the foregoing accurately reflects our understanding please sign where indicated below. Yours truly, /s/ Bette E. Dubinsky Director, Labor Relations In-Flight BED:jdc Agreed and Accepted: /s/ Sherry Cooper ARTICLE 29 / Page 91 FLIGHT ATTENDANT UNIFORM COMPARISON BETWEEN TWA COST AND IFFA CONTRACT Uniform Item TWA Cost IFFA Contract Double-Breasted Blazer - Female $109.50 N/A Single-Breasted Blazer - Female 104.50 N/A Double-Breasted Blazer - Male 144.50 N/A Single-Breasted Blazer - Male 139.50 N/A Skirt 49.50 N/A Slacks - Female 57.50 N/A Trousers 55.00 N/A Longsleeve Blouse/Shirt 19.35 15.00 Shortsleeve Blouse/Shirt 17.15 13.13 Epaulet Covers 2.50 3.13 Serving Garment - Female 13.95 29.88 Serving Garment - Male 13.95 26.81 Handbag 31.50 37.50 Suitcase 45.00 56.25 Topcoat 115.00 N/A Collar Bar 2.25 2.58 Pocket Square .50 .94 Unisex Tie 6.75 6.56 Bias Cut Scarf 3.50 6.06 Belt 5.75 8.44 Sweater 18.75 30.63 Sweater Vest 15.00 25.00 F/A Wings 6.25 6.25 FSM Wings 10.15 11.25 Floppy Bow Tie Stock depleted 2.31 FSM Pouch 1.53 1.84 Attache 50.12 62.65 Service Stars .45 .45 Hash Marks .45 .45 Maternity Jumper 60.00 61.88 Maternity Blouse Not available 66.00 2/5/96 ARTICLE 29 / Page 92 LETTER XLIX - MENTAL HEALTH/SUBSTANCE ABUSE PROGRAM April 18, 1996 Ms. Sherry Cooper, President Independent Federation of Flight Attendants 720 Olive Street, Suite 1700 St. Louis, MO 63101 Subject: Mental Health/Substance Abuse Program Ref: My Correspondence Dated January 16, 1996 Dear Ms. Cooper: Thank you for reviewing the company's proposal for an updated Mental Health/Substance Abuse Benefit Plan. This letter will confirm the agreement reached during the 1994 negotiations to modify the Mental Health/Substance Abuse benefits as described in the enclosed universal schedule which will replace the existing schedules that provide different benefit levels for each employee group. If the foregoing and the enclosed schedule reflects your understanding of the changes we have agreed to, please sign this letter where indicated below and return one copy to me. Very truly yours, /s/ Bette E. Dubinsky Director Labor Relations In Flight Agreed and Accepted /s/ Sherry Cooper ARTICLE 29 / Page 93 LETTER L - 757 STAFFING June 12, 1998 Sherry L. Cooper IAM General Chairperson IAM Local Lodge 1997 Dear Ms. Cooper: With regard to the Boeing 757 staffing, the following are the terms of the agreement reached between Trans World Airlines, Inc. and the International Association of Machinists: 1. Effective August 1, 1998, the basic crew staffing for 757 commercial and charter flights is established as one (1) FSM plus four (4) Cabin Attendants on Domestic flights; and one (1) FSM plus five (5) Cabin Attendants on International Flights. 2. The Company will determine crew staffing on all 757 aircraft for International, Domestic, commercial and charter flights at or above FAA minimum requirements. Additional crew staffing above the FAA minimum requirements may be published in the monthly bid package or may be established by the Variable Cabin Staffing Unit (VSU) based on the following criteria: Service Type % Revenue Load ------------ -------------- Hot Meal 70% Snack or cold meal 85% 3. For under-staffing payment purposes, the Company will be required to make an under-staffing payment when it does not operate 757 commercial or charter flights with the basic crew staffing. 4. For under-staffing payment purposes, the Company will be required to make an under-staffing payment when crew staffing as published in the monthly bid package or additional staffing established by the VSU is not provided on a 757 flight segment where the actual total revenue passenger load is 70% or greater. When the actual total revenue passenger load is less than 70%, the Company will not be required to make such under-staffing payment. 5. Such under-staffing payment, when required, shall be made to each crew member who actually worked the flight segment in accordance with the following formula: (a) Number of crew members under-staffed (b) Number of hours of flight segment (block-to-block) (c) $10.00 per hour or fraction thereof pro-rated per Flight ARTICLE 29 / Page 94 Attendant absent. Multiply (a) x (b) x (c) = amount each Flight Attendant will receive as an understaffing payment in addition to all other compensation earned. 6. Effective August 1, 1998, for pay purposes only, 757 flights arriving or departing to or from Mexico and Caribbean stations will be deemed "International" and Flight Attendants working such flights will be compensated at the appropriate International rates of pay set forth in Article 3 of the CBA. 7. For staffing purposes, 757 flights arriving or departing to or from Mexico and Caribbean stations will continue to be deemed "Domestic" with a basic crew staff level of one (1) FSM plus four (4) Cabin Attendants. 8. For scheduling purposes, 757 flights arriving or departing to or from Mexico and Caribbean stations will continue to be deemed "Domestic" and subject to all applicable provisions of Article 6 and Article 18 of the CBA. 9. The under-staffing payment provisions will become effective July 1, 1998 based on the July bid package. 10. This agreement is effective upon execution by the parties, is incorporated in the collective bargaining agreement signed September 22, 1994 and is subject to all provisions of the Railway Labor Act, as amended. If this letter accurately reflects our agreement, please sign below. Very truly yours, /s/ Philip B. Whitcomb Vice-President - Labor Relations Agreed and Accepted by: /s/ Sherry L. Cooper General Chairperson, IAM ARTICLE 29 / Page 95 LETTER LI - PENSION PLAN CONTRIBUTIONS March 31, 2000 Mr. William O'Driscoll President-Directing General Chairperson District Lodge 142 International Association of Machinists and Aerospace Workers 400 NE 32nd Street Kansas City, MO 64116 Dear Mr. O'Driscoll This letter will confirm our agreement that TWA will make certain contributions to the IAM National Pension Plan. Effective March 1, 2001, TWA will begin contributions on behalf of eligible IAM represented employees to the IAM National Pension Fund, National Pension Plan $0.50 per hour to a maximum of 173 hours per month based on flight credit hours of up to seventy-three (73) hours per month multiplied by two point three seven (2.37). The terms and conditions of such contributions, including employee eligibility, shall be set forth in the National Pension Plan Contract. The actual contribution shall be calculated as follows: (Flight Credit Hours (up to 73 hours) x 2.37 x hourly contribution ($0.50) = total monthly contribution.) If this letter accurately reflects our agreement, please sign this letter where indicated below. Very truly yours, Terry L. Hayes Vice President-Labor Relations Trans World Airlines, Inc. TLH:jdc Agreed and Accepted: /s/ William O'Driscoll ARTICLE 29 / Page 96 LETTER LII PROCEDURAL LETTER OF UNDERSTANDING FOR ARTICLE 23(B) This Letter of Understanding will provide the parameters to be followed in the selection and implementation of Article 23(B) Medical Facilities and the procedures to facilitate the application of Article 23(B). REGIONAL MEDICAL FACILITIES The parties agree to establish Regional Medical Facilities within one hundred twenty (120) days of ratification of a new Collective Bargaining Agreement. Regional Medical Facilities will be chosen by the parties in the areas named below. Regional Medical Panels will be chosen from Board-certified physicians on staff at the facilities. The purpose of the Regional Medical Panels is to have a physician render an impartial finding of medical condition at issue before him/her as outlined under the provisions of Article 23(B) of the TWA-IAM Flight Attendant Agreement. Either party shall have the right to require a review and approval of any Medical Panel facility every eighteen (18) months. The third impartial physician's determination shall be final and binding upon the Company and the employee on the issue submitted. The parties agree to establish Regional Medical Panels for the following areas: NY Metro Area STL MCI LAX SFO ORD Southeastern US (ATL/FL area) ORF DEN PHX BOS SEA SPECIALTIES The Regional Medical Panels will consist of the following specialties: 1. Cardiology 2. Internal Medicine 3. Neurology 4. Orthopedics 5. Obstetrics/Gynecology 6. Occupational Medicine 7. Psychiatry/Licensed Clinical Psychologist (For Flight Attendants, the treating physician shall determine whether the examination shall be by a psychiatrist or a licensed clinical psychologist). 8. Otolaryngology The parties agree that it may be necessary to increase the number of specialties to encompass the area of medicine that may be required in the application of Article 23(B). In the event the employee requires the services of a specialty not included in the existing panel, the parties will expand the list to include such specialty on a case-by-case basis. The parties further agree that there shall be at least two (2) physicians in each specialty on the Regional Medical Panel at each location. ARTICLE 29 / Page 97 TRAVEL/MISCELLANEOUS In the event a Flight Attendant resides more than 100 miles from any established Regional Medical Panel, he/she shall have three (3) options when attending an impartial medical examination: (1) The Flight Attendant may choose to attend an impartial medical examination at the STL Regional Medical location; or (2) The Flight Attendant may choose to attend an impartial medical examination at a Regional Medical location most convenient for travel from his or her residence; or (3) The Flight Attendant may request an impartial medical examination at a location more convenient to his/her residence. In this event, the Flight Attendant's treating physician shall provide TWA Medical Services with the names of three (3) physicians (along with the appropriate curriculum vitae). TWA Medical Services shall select one of the three physicians for the scheduling of the impartial medical examination. The doctors shall not be affiliated with the treating physician and shall be board- certified in the field related to the medical examination. In all events the Flight Attendant shall notify TWA Medical Services of his or her choice of one (1) of the three (3) options within fifteen (15) days following the Company's notice of the Flight Attendant's ability to request a third party medical examination. In the event the Flight Attendant selects the third option, his or her treating physician shall provide TWA Medical Services with the names of the three (3) physicians no more than fifteen (15) days following the Flight Attendant's choice of the third option. If any employee is required to travel to an area where the Article 23(B) Medical Panel physician is located, the Company shall provide positive space air transportation on TWA for the 23(B) examination. If the employee has to provide his or her own transportation, the Company will reimburse the employee for other and reasonable actual expenses such as mileage and tolls. The Company shall reimburse the employee for such other reasonable and actual expenses such as hotel and meals when necessitated by the travel. Mileage and other reimbursements will be governed by the provisions of the TWA Management Policy and Procedures Manual and will require the submission of a TWA Expense Report (Form G-118). Example: If an employee based at MCO elects to invoke Article 23(B) and the Medical Panel physician is located at TPA, the Company will reimburse the employee for expenses incurred for the purpose of attending the examination. ARTICLE 29 / Page 98 INDEX SUBJECT ARTICLE A Accident/Incident 25(B) Accidental Death and Dismemberment 22(F)(1) Accident Investigation Team 25 Acquisition of Redesigned/Reconfigured Aircraft 25(E) Addresses of Employees 20(J) Adoption Leave 15(H) Airport Standby 2(L)(2) 18(D)(8)(e) Alternate Line Flying 6(A)(2) 6(X) Alternate Line Flying Definition 2(Q) Attendance Control Program 29 Automatic Trip Drop 18(D)(7)(f) Availability for Flight 18(D)(9) Average Line Value (ALV) 2(O) Awarding of Run Selections 18(D)(5) Away From Domicile Policy 18(B)(2) B B-747 Letter of Agreement 29 Back Dues 24(Q) Back-to-Back Flying 18(G) Balance, Not Further 18(D)(7)(g) Balance Avoidance (RIP, RGU) 18(D)(7)(f) Balancing and Limitations 18(D)(7)(f) Balancing, Company Same Calendar Day 18(D)(7)(f)(1) 6(Z) Balancing, Family Emergency 8, 18 Balancing, Initial 18(D)(7)(c) Balancing, Personal Illness 8, 18 Bankruptcy 1 Bow-wave Option 18(D)(7))g) Buffers 6(Z) Bulletin Boards 20(J) Bulletined Vacancies 13(B) C Cabin Attendant 2(A) Cabin Staffing, Additional 26(C) Calendar Month Limitations, Vacation 9(G) Call Out 18(D)(8)(g) Call-in Requirements, Reserve 18(D)(8)(g) INDEX / Page 1 CAMS Home Access 20 Cancellation of Bids on File 13(D) Category Bids, Additional 18(B)(6) Change in Address 12(D) Change in Schedules/Availability of Information 18(B)(3) Chart Examples of Back-to-Back Flying 18(G)(12) Charters 18(E) Chiropractic Care 22 Codeshares 1 Co-Terminal 6(E)(7) Company Balance Limitation 18(D)(7)(f) Company Insignia 5(D) Company Maximum Block Hours, Reserve 18(D)(7)(e) Company Same Day Calendar Balance 18(D)(7)(f)(1) 6(Z) Confirmation of Illness 8(B) Contact While on Medical 8(L) Continuation of Insurance 22(F)(6) Copies of Agreement 20(A) Corporate Governance 1 Crew Complement, Basic 26(A) Crew Meals 4(C)(4) Crew Rest 6(T) Customer Service Panel 20(G) D Daily Credit Rate 2(P) 18(F) Daily Credit Rate, Sick Leave 8(D) Daily Credit Rate, Industrial 8(I) Deadhead Pay 3(CC) Deductible 22(A) Deduction of Membership Dues, Letter of Agreement 24, 29 Dental Insurance Plan Benefit 22(C) Dental Plan 22(C) Deregulation 27(D) Direct Report, Letter of Agreement 29 Disability Retirement 21(B)(7) Disability Retirement Pass 7(G) Discharge, Union Security 24(F) Discipline and Discharge 16(C) Discipline/Reprimand 19(B) Displacement/Involuntary Assignment 13(C) Displacement, Leave Expiration 15(D) Displacement Options 12(B) Displacement Passes 12(G) & (M) 7(G) INDEX / Page 2 Domestic Excess On Duty 3(DD) 6(R)(1) Domestic Flight 2(I) Domicile 2(E) Domicile Scheduling 18(C) Domicile Scheduling Policy 18(D) Downtown Layovers (Domestic) 4(A)(5) Drug Testing, Duty 6(Y) Drug Testing, Expense 4(C)(5) Drug Testing Letters of Agreement 29 Dues and Initiation Fee Check-Off 24(M) Dues and Initiation Fee (Letter of Agreement) 29 Duty Hours 6(D) Duty Hours (Duty Rig) - Domestic 6(E)(3) Duty Hours (Duty Rig) - International 6(E)(4) Duty/Trip Hours, Additional 6(E)(6) E Early Retirement 7 21(A)(1) Employee 2(C) Enhanced Trip Option (ETO) 6(X) Equipment Substitution 6(W) Excess Credit Hours 18(D)(7)(h) Excess Pay Hours 8(G) 18(D)(7)(i) Exclusive Care Provider 22(E)(1)(j) Expense Allowance (Domestic) 4(A)(1) Expense Allowance (International) 4(B)(3) Expenses, General 4(C) Expenses Subject to Deductible and Coinsurance 22(A) F FAA Minimum Staffing Requirement 26(B) FAA Rest 6(R) FAA Rest, Reserve 6(S) Family Emergency 8(G) Family Emergency Passes 7(K) Fatigue, Calling Off On 6 Ferry Flight Assignment 2(N) Filing of Permanent Bids for Transfer 13(A) Filling of Vacancies (Temporary Assignment) 13 Fixed Daily Credit 2 Flight Attendant Assignment and Bidding 18(D)(4) Flight Attendant Illness 8(D) Flight Credit Hours 6(B) Flight Pay Hours 6(C) INDEX / Page 3 Flight Service Manager, Narrowbody 29 Flight Service Manager, Rotating Reserve 29 Flight Service Manager, SPA/FUR 29 Flight Service Manager Vacancies 13(I) Flight Time Limitations 6(N) Foreign Bases 27(A) Full-Time Union Representatives 16(B) Furlough, Expiration 12(F) Furlough, Notice of Reduction 12(A) Furlough, Options/Leaves of Absence 12(B) Furlough, Re-employment 12(E) Furlough, Subsequent 12(K) Furlough Pay 12(I) Furlough Pay, Disqualification 12(J) Furlough Pay, Amount 12(L) G Grievance Procedure, Accessibility of Transcripts and Records 17(E)(7) Grievance Procedures, Appeals 16(E) Grievance Procedure, Company Time Limitations 16(C)(6) Grievance Procedure, Failure to Request Step 1 Hearing 16(C)(3) Grievance Procedure, General 16(G) Grievance Procedure, Investigation 16(C)(1) Grievance Procedure, No Pay Loss Prior to Written Step 1 Decision 16(C)(7) Grievance Procedure, Other Grievances 16(D) Grievance Procedure, Policy 16(A)(3) Grievance Procedure, Pre-Grievance 16(D)(1) Grievance Procedure, General (District) Grievance 16(F) Grievance Procedure, Non-Disciplinary Discussions 16(H) Grievance Procedure, Representation 16(A) Grievance Procedure, Request for Step 1 Hearing 16(C)(2) Grievance Procedure, Untimely Grievance Appeals 16(G)(4) Grievance Procedure, Work Day 16(G)(7) Grievance Settlement 16(G)(9) Ground Transportation 4(A)(5) Group Insurance 22(A) Group Insurance, General 22(E) Group/"et al" Grievances 16(G)(2) GTP (Guaranteed Trip Protection) 6(Z) Guaranteed Days Off, Prescheduled 48's 6(U) Guaranteed Days Off, Reserves 6 H HMO Benefits 22 Hardship Leave 15(J) INDEX / Page 4 Holding Time 6(K) Home Health Care 22 Hotel Rebate 29 I Industrial Injury 8(I) In-Flight Performance 29 In-Flight Sales 29 Information to be Provided by Company to IAM 20(H) Initial Balancing 18(D)(7)(c) Initial Projection 18(D)(7)(b) Insufficient Reserves 18(D)(7)(l) Insufficient Sick Hours 8(F) Insurance Benefits, Maximum Amount 22(F)(1)(d) Insurance, Outline of Insurance Plans 22(F) Insurance, Preadmission Certification/Continued Stay Review 22(A)(1)(k) International Flight 2(I)(2) J Joint Drug Policy (Appendix Letter of Agreement) 29 Jumpseat Authority 7(D) Jury Duty 6(Q) Jury Duty, No Balancing 18(D)(7)(f)(1)(i) L Labor Advisory Board 29 Labor Protective Provisions 1(D) Language of Destination 29 Language of Destination, Pay 3(U) Language of Destination, Pay (757) 29 Language Training 4(C)(6) Late Check-In, Rights to Trip 18(D)(9)(a)(3) Layover Hotels, Downtown 4 Layover Hotels, Room Selection 4(B)(2) Leaves, Return from Leave/Company Standards 15(K) Leaves, Return from Leave/Vacancies 15(D) Legal Rest at Layover Station After, One-Way Trip 18(D)(110 Legal Rest/Scheduled on Duty - Domestic 6(R)(1) Legal Rest/Scheduled on Duty - International 6(R)(2) Life Insurance 22(D) 22(F)(5) Local Flights 6(E)(5) Lodging Expenses 4(A)(3) Lounges/Day Rooms 4(C)(2) INDEX / Page 5 Lump Sum Distribution 21(A)(2) 21(B)(6) Lump Sum Notice 21(A)(3) Lump Sum Rollover, Letter of Agreement 29 M Maternity Leave 15(G) Maternity Leave Unemployment, Letter of Agreement 29 Medical Insurance 22 Medical Leaves 15(B) Medically Fit for Duty 23(B)(2) Medically Unfit for Duty 23(B)(1) Mergers, Purchase, Acquisition, Absorption 27(C) Military Leave 15(F) Minimum Pay and Monthly Maximum Flight Credit Full-Month Flying 6(A)(1) Half-Month Flying 6(A)(2) Miscellaneous Accident Program 22 Month 2(H) Moving Expenses 14(A) Mutual Transfers 13(H) N Neutral Medical Examiner 23(B) Neutral Medical Panels Letter of Agreement 29 Night Pay 3(T) No Unlawful Discrimination 20(J)(7) Non-pay Status/Flight Time Limitations 6(P) Normal Retirement Age 21(B)(4) O Ok'ing Assigments, Letter of Agreement 29 Open Time Information 18(D)(6) Open Time Move-up 18(D)(8)(i) Operational Duty Hours 2(J) Operational Duty Pay 3(Q) Operational Meetings/Training 6(H) Operational Meetings/Training/Physicals 4(C)(3) Orders in Writing 20(B) OSHA 2000 Logs 25(D) Other Company Department, Transfer 10(D) Other Employment with the Company 20(E) Overpayments 20(J)(5) Overseas Transfers 9(F) Ozark-TWA Retirement, Letter of Agreement 29 INDEX / Page 6 P Parking Areas 4(C)(7) Parking at Other Stations 4(C)(7) Passes, Employee/Union Transportation 7(C) Passenger Complaint Letters 19 Passes, Grievance 16(E)(5) 17(E)(9) Passes, Inlaw 7 Passes, Me-Too Pass Policy 7(I) Paternity Personal Time Off 15(I) Pay Assignments 6(M) Pay Charts 3(A) Pay Study Committee, Letter of Agreement 29 Pay, 24 in 7 3(V) Paycheck Distribution 29 Paycheck Dues Deduction 24(M) - (R) Payment for Training 4(C)(6) Personal Leaves and Other Employment 15(A) Personnel File 19(A) Personnel File, Documents One (1) Year or Older 19 Personnel File, Documents Two (2) Years or Older 19(B) Physical Examinations 23(A) Preferential Bidding 29 Preparation of Bid Runs 18(D)(3) Prescription Drug Program 22(B) Probationary Employees 10(G) Probationary Period 19(G) Professional Standards 29 PTO Computer Mask Letter of Agreement 29 R Railway Labor Act 17(E) Railway Labor Act 20(I) Random Drug Testing Pay 3(X) Recall/Bypass Letter of Agreement 29 Recall/Bypass Preferences & Transfers 12(H) Recognition 1(A) Reduced Rates 7(E)-(G) Reduction in Force/Recall/Preference to Assignment 10(B) Re-engineering TWA 29 Regional Jets 1 Release from Call-in Period 18(D)(8)(g) Relief After 4 Hours 6(O) Relief from Duty, 24 in 7 - Domestic 6(S) Reserve 2(K) Reserve Assignments 18(D)(8)(c) Reserve Complement 18(D)(8)(b) INDEX / Page 7 Reserve Guarantee 3(S) Reserve List 18(D)(8)(k) Reserve Recording 18(D)(8)(j) Reserve Spreads 6(V) Reserve, Maximum Block Scheduled 18(D)(7)(e) Reserve, Set-up Period/Call-in Period 18(D)(8)(c) Reserve Trading 29 Residence Standby 2(L) Retirement Passes - Age 45 7(F) Retirement Passes - Age 50 7(E) Retirement Plan, Summary 21(B) Retirement Savings Plan [401(k)] 21(C) Retirement Savings Plan Investment Committee Letter 29 Retirement, Contingent Annuitant Option 21(B)(9) Retirement, Freeze of Benefit Accruals 21(A)(4) Retirement, Lump Sum Option 21 Retirement, Optional Forms of Benefit 21(B)(10) Retirement, Participant Eligibility 21(B)(3) S Safety Committee, Composition 25(A) Satellite 2(F) Satellites 18(F) Scheduling Committee 18(B)(1) Scheduling Committee, Reimbursement 18(B)(4) Scheduling, General 18(A) Scheduling, Maximum Utilization 18(D)(7)(a) Scope 1(B) Seniority Lists, Posting 11(A) Seniority Lists, Protest 11(C) Seniority, Accruals 10(A) Seniority, Retention 10(C) Sequence Notification/Balancing 18(D)(9)(a) Service Manager 21(B) Service Manager Emergency Downgrade 3(W) Service Manager Override 3(R) Service Manager Temporary Upgrade 3(AA) Short Term Disability 22(F)(2) Sick Leave Allowance 8(A)(1) Sick Leave, Prevention of Sick Leave Abuse 8(K) Sick Leave, Return to Duty Deadline 18(D)(9)(a)(2) Soft Time Openings 18(D)(9)(a)(2) Special Assignment 3(BB) Special Assignment/Loan/Promotion 10(C) Special Care Facility, Inpatient Care Limitation 22 Split Vacations 9(H) Spread Days 18(D)(8)(l) Staffing - 757 29 INDEX / Page 8 Standby Duty 2(L) 6(I) Standby Penalties 3(Y) Standby, Residence/Airport Standby 18(D)(8)(e) Statute of Limitations (Grievances) Step 1 Hearing 16(C)(4) System Board of Adjustment 17 System Board of Adjustment, Jurisdiction 17(E)(2) System Scheduling 18(B) T Tag Ends 2(I)(3) Taxi Expense 4(A)(4) Temporary Vacancies 13(E) Terminating Employee Vacation Pay 9(D) Time Limits for Grievance Filing 16(C)(2) 16(G)(1) Trading of Flights 18(D)(10) Trading, Requests for Open Time 18(D)(7)(j) Training and Special Assignment 6(G) Transfers at Company Request 14(C) Transfers, Expense and Mileage 14(A) Transfers, Travel Time and Report for Duty 14(B) Trip Drop During Month 18(D)(7)(f)(5) Trip Drop, No Automatic Trip Drop During Month 18(D)(7)(f)(6) Trip Hours (Trip Rig) 6(E) Trip Hours Formula Proration Charts 18(H) Trip Pay and Credit 6(D) Trips Missed PIL Bank 8(D) 8(E)(1) U Unavailable During Call-in Period, Reserve 18(D)(8)(h) Uniform Items, Basic/Additional 5(B) Uniform Point System 5(D) Union Business Override (UBS) Letter of Agreement 29 Union Leaves 15(C) Union Materials in Flight Attendant Mailboxes 20(J)(4) Union Security, Delinquency 24(E) Union Security, Membership in Good Standing 24(A) Union Security, Requirement to Maintain Membership 24(B) Union Security, Revocation of Dues Check-off 24(N) Unprotected Flight/Domicile Layover Station 18(D)(9)(b) Unprotected Flights 18(D)(7)(k) Utilization 18(D)(7) INDEX / Page 9 V Vacation, Bidding and Posting Procedures 9(B) Vacation, Reserve 18(D)(8)(a) Vacation Credit and Pay 6(F) Vacation Increment Pay 3(Z) Vacations, Accrual and Days Allowed 9(A) Variable Staffing Unit (VSU) 26 W Wage Controls, Deferrals, Cut-Backs 27(E) Wellness Program 22 Wide-body Aircraft 2(M) Workers' Compensation Payments 8(I) Workers' Compensation Task Force 29 X XCAP-ACM Removal Letter of Agreement 29 XCAP Procedures 7(D) INDEX / Page 10 EX-10.2 3 0003.txt MECHANIC & RELATED AGREEMENT TABLE OF CONTENTS Article Page 1 Purpose of Agreement 2 2 Scope of Agreement 2 3 Status of Agreement 5 4 Classifications of Work 6 5 Examination(s) License(s) Requirements and Training 20 6 Seniority 27 7 Hours of Service 42 8 Overtime and Holidays 45 9 Field Service 49 10 Vacancies and Bidding 51 11 Grievance Procedure 59 12 System Board of Adjustment 65 13 Leave of Absence 70 14 Safety and Health 73 15 Free Transportation 76 16 Vacations 78 17 Sick Leave 84 18 Longevity 86 19 Shift Premium 87 20 Benefits 89 21 Wage Rules 95 22 Apprenticeship Program 97 23 General and Miscellaneous 97 24 Saving Clause 99 25 Geographical Scope of Agreement 99 26 Union Security 101 27 Layoff Pay 108 28 Letters and Agreements 111 29 Effective Date and Duration 246 SCHEDULE A 247 INDEX 251 THIS AGREEMENT is made and entered into this 1st day of August, 1999, in accordance with the provisions of Title II of the Railway Labor Act, as amended, by and between TRANS WORLD AIRLINES, INC., hereinafter referred to as the "Company," and the INTERNATIONAL ASSOCIATION OF MACHINISTS AND AEROSPACE WORKERS, hereinafter referred to as the "Union," and representing in the United States, its territories and possessions within the jurisdiction of the Railway Labor Act, as amended, all employees of the Company comprising maintenance of equipment employees and including all grades of Mechanics and Inspectors, Fire Inspectors, Fleet Service Helpers, Ground Service Helpers, Cargo, Commissary, and Stockroom employees, as certified by the National Mediation Board on November 20, 1945, May 15, 1946, and September 23, 1949, and all employees of the Company comprising the Guard personnel, as certified by the National Mediation Board on May 22, 1946. ARTICLE I PURPOSE OF AGREEMENT (a) The purpose of this Agreement is, in the mutual interest of the Company and the employees, to provide for the operation of the services of the Company under methods which will further, to the fullest extent possible, the safety of air transportation, the efficiency of operation, and the continuation of employment under conditions of reasonable working hours, proper compensation, and reasonable working conditions. It is recognized by this Agreement to be the duty of the Company and the employees to cooperate fully, both individually and collectively, for these purposes. (b) No employee covered by this Agreement will be interfered with, restrained, coerced, or discriminated against by the Company, its officers, or agents, because of membership in or lawful activity on behalf of the Union, nor shall either the Company, its officers, or agents, or the Union, its officers, or agents, discriminate against any employee or member on account of race, color, creed, national origin, religion, sex (sexual harassment), age, handicap, or disability, veteran status including veteran, Vietnam era veteran or special disabled veteran status. This paragraph reaffirms the long standing mutual practice of both of the parties to this Agreement. (c) It is understood that wherever in this Agreement employees or jobs are referred to in the masculine gender it shall be recognized as referring to both male and female employees. ARTICLE 2 SCOPE OF AGREEMENT (a) The Company agrees all work generally recognized as mechanical inspection work, mechanic's work, and helper's work performed in and about Company, shops, major stations, overhaul bases, line service stations. and other Company facilities including but not limited to mechanical work involved in dismantling, overhauling, repairing, fabricating, assembling, welding, and erecting all parts of airplanes, 2 ARTICLE 2(A) (CONTINUED) airplane engines, radio equipment, computers on aircraft and digital readouts, cathode ray tube devices, cables and other electronic devices associated with such computers, electrical systems, heating systems, hydraulic systems, and machine tool work in connection therewith, and including the dismantling, repairing, assembling, and erecting of all machinery and mechanical devices and automotive and building maintenance and repair work, the work of Fire Inspectors, the work of Stores Clerks, and the work of Ramp Servicemen in the handling of stores stock, commissary supplies, mail. Express, cargo, and freight is recognized as coming within the jurisdiction of the International Association of Machinists and Aerospace Workers and is covered by this Agreement. The Company hereby recognizes the Union as sole and exclusive bargaining agent for all employees of the Company working within the limits of the United States who are designated as Guards. The Company agrees that all work involving the guarding of certain gates, entrances, and other designated posts in and about Company premises, the patrolling of designated areas, the punching of watchman's clocks, or other similar assigned duties involving internal security and protection of Company property is recognized as coming within the jurisdiction of the International Association of Machinists and Aerospace Workers, and is covered by this Agreement. Wherever the Company operates a baggage claim facility exclusively for the use of its passengers, and/or the passengers of another carrier to whom it has sublet such facility or part thereof, and the Company requires the guarding of such facility, TWA-IAM Guards will be used. Wherever the Company operates an air freight terminal exclusively for the use of its customers, and/or the customers of another carrier to whom it has sublet such facility or part thereof, and the Company requires the guarding of such facility, TWA-IAM Guards will be used. Whenever the Company deems it necessary to assign personnel to alleviate congestion of pedestrian or vehicular traffic, TWA-IAM Guards will be used. It is understood and agreed that the provisions of this paragraph as it relates to the baggage claim facility and pedestrian and vehicular traffic shall not be applicable if the Company's requirement of the guarding of these facilities does not exceed sixty (60) days, provided that the Company first advises the President - General Chairman of District 142. International Association of Machinists and Aerospace Workers, that such requirement exists. (b) Employees covered by this Agreement shall be governed by all reasonable rules, regulations, and orders previously or hereafter issued by the Company which are not in conflict with the terms and conditions of this Agreement and which have been made available to the affected employees prior to becoming effective. Nothing in these rules and regulations and/or this Agreement shall be construed to limit or deny to any employee herein covered any rights or privileges to which he may be entitled under the provisions of the Railway Labor Act, as amended, or to deny him recourse to any action he might have pursuant to any other applicable Federal statute. (c) It is agreed that all work covered by this Agreement shall be performed by employees in the classifications specified herein, except that at other than major stations or overhaul bases on shifts where there is not sufficient work as herein described for 3 ARTICLE 2(C) (CONTINUED) Ramp Servicemen to justify the assignment of an employee coming within such classification, any employee who is in the same or higher pay bracket may be assigned to do the work. At stations other than major stations or overhaul bases, on shifts where Ramp Servicemen are assigned and there is not sufficient work to justify the assignment of an additional employee in such classification, any employee covered by the Agreement who is in the same or higher pay bracket may be assigned to do the work. Except at overhaul bases, employees in the same or higher pay bracket may be assigned to do the work of Fire Inspectors where there is insufficient Fire Inspector work to justify the assignment of an employee so classified. The number of employees in each classification will be established by the Company in accordance with the normal requirements of the service. Employees will normally perform the work of their classification; however, it is recognized that at major stations (1) where more than the scheduled number of flights are on the ground at one time, (2) in cases of emergency where it is necessary in order to maintain operating requirements, or (3) where work within their regular classification is not available any employee who is in the same or higher classification may be assigned to the performance of work normally performed by the classifications of Fleet Service Helper, Ramp Serviceman, or Janitor. In this event it is understood, however, that employees outside the classifications covered by this Agreement will not be assigned to perform this work if employees in the same or higher classifications covered by this Agreement are available and can be assigned without interfering with their regular duties. When an employee is assigned to work outside his classification, another employee in a different classification shall not perform the regular duties of the employee so assigned. If the Union doubts the fairness of the assignment, it may invoke the grievance procedure for settlement of the matter. The total mechanical work force and the number of mechanics necessary in each specialty will be established in accordance with the normal workload requirements. Mechanics will confine their work to their specialty except (1) the Company may assign mechanics to any mechanical work even when work within their specialty is available; and (2) during abnormal operating conditions mechanics may be assigned to any work in the same or lower pay classification other than that to which they are normally assigned, to the extent necessary to maintain operations and flight schedules, even when work within their regular assignment is available. (d) A Technical Service Location shall mean a station at which the Company regularly schedules Check C's or other major modification work and any other required maintenance work. A Line Maintenance station shall mean one that will perform routine line maintenance and other checks below the Check C level. Technical Service Locations shall be staffed with the maintenance classifications and specialties necessary to perform the required work, including, but not limited to: 4 ARTICLE 2(D) (CONTINUED) Lead Systems Technician Crew Chief Inspector Inspector Crew Chief Mechanic Mechanic Crew Chief Stores Clerk Stores Clerk Crew Chief Fleet Service Fleet Service Crew Chief Janitor Janitor The following stations are Technical Service Locations: JFK/LGA, MCI, LAX and STL. The parties mutually agree that the four (4) hour work rule does not apply to the maintenance staffing at Technical Service Locations. When there is a need to eliminate a Technical Service Location, or to transfer work between Technical Service Locations, the Company will provide the IAM with sixty (60) days notice, and the matter will be discussed and resolved by the President/Directing General Chairman of District Lodge 142 and the Senior Vice President of Maintenance and Engineering. Such changes are to be planned and executed in a manner that is consistent with the operational needs and efficiencies and minimizes the disturbance of employee seniority rights. The IAM will not unreasonably withhold its agreement to such a change. If a satisfactory resolution is not reached within the sixty (60) day period, the question whether the proposed change is justified by the above criteria will be submitted to the System Board of Adjustment and heard on an expedited basis within a sixty (60) day period. ARTICLE 3 STATUS OF AGREEMENT (a) This Agreement supersedes any and all agreements existing or previously executed between the Company and any Union or individual, affecting the craft or class of employees covered by this Agreement, except Letters of Understanding and Supplemental Agreements found in Article 28 of this Agreement. (b) The Company will notify the Union promptly in writing in case of consolidation, merger and route swap affecting work covered by IAM Agreements, or in the event the Company purchases, acquires, or absorbs another airline or portions thereof, or in the event the Company or portion thereof is acquired by another airline. 5 ARTICLE 3(B) (CONTINUED) All provisions of this Agreement shall be binding upon the successors or assigns of the Company. The Company and this Union will meet without delay and negotiate for proper provisions for the protection of employee(s) seniority and other property rights, in the event that any of the above occur. (c) All matters not covered by this Agreement or the Railway Labor Act, as amended, shall remain exclusively and without limitation within the prerogatives of Management. ARTICLE 4 CLASSIFICATIONS OF WORK (a) (1) Lead Systems Technician The work of a Lead Systems Technician will consist of and include providing as related to Aircraft Maintenance, necessary technical knowledge, guidance and direction to other classifications in trouble-shooting complex aircraft systems, locating and correcting trouble and malfunctions, coordinating with foremen and Crew Chief Mechanics, and, as assigned, monitoring the performance of routine work. The Lead Systems Technician classification is not intended to replace the Crew Chief Mechanic in any way. However, the Lead Systems Technician may coordinate the activities outlined in this paragraph with any number of employees. He will also coordinate his activities with station or location management and/or with engineering and flight crews and other functions as appropriate. He will perform on-the-job training and will conduct classroom training as directed. See Lead Systems Technician letter, Article 28, Page 115. (2) Crew Chief Flight Simulator Technician The work of a Crew Chief Flight Simulator Technician shall consist of and include, and he shall be responsible for leading, directing and assigning the work of other employees of the Flight Simulator Technician classification to the satisfaction of the Company and must hold the necessary license as is required for the Flight Simulator Technician. A Crew Chief Flight Simulator Technician will give on-the- job training and instruction to Flight Simulator Technicians whenever such training and instruction is required by the Company. If any checking, reviewing and verification of work sheets and forms related to Flight Simulator Technicians' work is necessary, it will be done by a Crew Chief Flight Simulator Technician. In addition, a Crew Chief Flight Simulator Technician will be responsible for, and his duties shall consist of and include. coordinating of work, consistent with the overall work plan established by the Company. He shall also be familiar with the duties of the Flight Simulator Technician 6 ARTICLE 4(A)(2) (CONTINUED) classification and will be capable of performing such duties. He will assist his group in the performance of such duties provided such assistance does not interfere with the performing of his primary responsibilities as described above and provided further, that while he is performing Flight Simulator Technician's work his primary duties are not assumed by others. A Crew Chief may be assigned to coordinate the work of other Crew Chiefs. In such instances, he may or may not have other employees assigned to him. The Crew Chief shall be required (on a non-exclusive basis) to demonstrate proper work methods, conduct on-the-job training, and conduct meetings or indoctrinate employees in new or revised operational Procedures. The Crew Chief Flight Simulator Technician will coordinate as between the Flight Simulator Technicians in his group and vendor or Company representatives. A Crew Chief Flight Simulator Technician shall not supervise or direct the working force other than Flight Simulator Technicians. (3) Flight Simulator Technician The work of a Flight Simulator Technician shall consist of and include any and all maintenance, modification, trouble- shooting, repair, and overhaul of any type of electronic or mechanical devices, including all types of computers and associated apparatus, used for training flying personnel under simulated flying conditions. In addition this work shall include the trouble-shooting, identification, and repairing malfunctions of such apparatus and simulators. Non-contract personnel, including vendor representatives, may direct Flight Simulator Technicians in the work required during the initial installation of flight simulators and associated apparatus including computers and their systems. Such personnel will normally assign the physical aspects of work on developmental installations to Flight Simulator Technicians and will direct such assignments consistent with the Company rights under vendor warranties. The Company and the Union jointly recognize the developmental status of such equipment to be an integral part of such initial installation and the consequent necessity to utilize engineering and vendor personnel therein. The Company will advise the Union of the nature, extent, and anticipated duration of warranties and engineering or vendor assistance on Company property, for the purpose of initial installation of aircraft simulators or associated equipment and apparatus and computers and their systems. The Flight Simulator Technician shall be responsible for the loading of programs, in any and all types of computers integrally associated with flight simulators, for maintenance purposes and flight training purposes. The Flight Simulator Technician will also assist in troubleshooting programs in use and debugging new or modified programs. 7 ARTICLE 4(A)(3) (CONTINUED) Flight Simulator Technicians must hold a General Radio- telephone license or higher. Flight Simulator Technicians will be required to give on-the-job instruction to other Flight Simulator Technicians. Work shifts of Flight Simulator Technicians shall be established to comply with Article 7(e). (4) Crew Chief Inspector The work of a Crew Chief Inspector shall consist of and include leading, directing and assigning the work of Inspectors and performing such inspection work as may be required to the satisfaction of the Company. In addition, a Crew Chief Inspector will be responsible for on-the-job training and checking and reviewing work sheets and forms (including verification of completed work sheets and forms in cases of Check "C" and base overhaul) related to Inspector's work as set forth under the Inspector classification covered by this Agreement. A Crew Chief Inspector shall not supervise or direct the working force other than Inspectors. A Crew Chief may be assigned to coordinate the work of other Crew Chiefs. In such instances, he may or may not have other employees assigned to him. The Crew Chief shall be required (on a non-exclusive basis) to demonstrate proper work methods, conduct on-the-job training, and conduct meetings or indoctrinate employees in new or revised operational procedures. (5) Inspector The work of an Inspector will consist of and include the overall inspection of Company aircraft (including power plant) in connection with major repairs and overhauls at those points on the Company's system where such work is performed. At those points where Inspectors are employed, the work of Inspectors shall include special checks and special inspections including eddy current, magna flux, ultrasonic, zyglo, x-ray (x-ray to be performed by Inspectors at the overhaul base only), and comparable processes except that the reading and interpretation of the x-ray prints shall be performed by non-contract employee(s). The work of Inspectors will include the inspection of materials, parts, and subassemblies as necessary. An Inspector must be capable of performing the inspection work assigned to the satisfaction of the Company, and must hold valid Federal licenses for his assignment as set forth in Article 5. He shall be selected from the Mechanic or higher classification, and will not supervise or direct the working force. At those points on the Company system where Inspectors are employed and where the Company's policies and procedures as published in its manuals require the presence of an observer on test flights conducted for maintenance or 8 ARTICLE 4(A)(5) (CONTINUED) engineering reasons, Inspector or Inspectors (as required) shall accompany such test hops as an observer unless prohibited by Federal regulations. The Company reserves the right to assign additional non-IAM contract observers to such test flights as it may see fit at the option of local Management and/or other Management levels in the Technical Services Division. (6) Crew Chief Mechanic The work of a Crew Chief Mechanic shall consist of and include, and he shall be responsible for, leading, directing, and assigning the work of other employees of the Mechanic classification to the satisfaction of the Company and must hold valid Federal licenses as required for his assignment as set forth in Article 5. A Crew Chief Mechanic may be required to sign for his own work and the work of others in his group (not including work historically performed by Inspectors) provided, however, that such signing shall not relieve any other members of his group from responsibility for the work he performed or from being required to sign appropriate Company work records. A Crew Chief Mechanic will also give on-the-job instructions and training to Mechanics when such training and instruction is required by the Company. If any checking, reviewing and verification of work sheets and forms related to Mechanic's work is necessary, it will be done by a Crew Chief Mechanic. A Crew Chief Mechanic will be required to review aircraft log books. In addition, a Crew Chief Mechanic will be responsible for, and his duties shall consist of and include, coordinating of work and scheduling and issuing of any and all work cards related to Mechanic's work, consistent with the overall work plan established by the Company. The Crew Chief Mechanic shall also be familiar with the duties of the Mechanic classification and will be capable of performing such duties. He will assist his group in the performance of such duties provided such assistance does not interfere with the performing of his primary responsibilities as described above and provided further, that while he is performing Mechanic's work his primary duties are not assumed by others. A Crew Chief may be assigned to coordinate the work of other Crew Chiefs. In such instances, he may or may not have other employees assigned to him. The Crew Chief shall be required (on a non-exclusive basis) to demonstrate proper work methods, conduct on-the-job training, and conduct meetings or indoctrinate employees in new or revised operational procedures. (7) Mechanic The work of a Mechanic shall consist of and include any and all work generally recognized as Mechanics' work performed in and about Company shops, 9 ARTICLE 4(A)(7) (CONTINUED) maintenance bases, overhaul bases, and Company buildings, including but not limited to mechanical work involved in dismantling, overhauling, repairing, fabricating, assembling, welding, and erecting all parts of airplanes, airplane engines, radio equipment, electrical systems, temperature control systems, hydraulic systems, communications systems, modifications, electronic systems, instruments systems, computers on aircraft and digital readouts, cathode ray tube devices, cables and other electronic devices associated with such computers, and related components (in connection with aircraft maintenance and testing), and machine tool work, in connection therewith. In addition the work of a Mechanic shall include trouble-shooting, assisted as necessary by the Crew Chief Mechanic and when not in conflict with the terms of this Agreement, by Management. The work of a Mechanic shall also include engine runups and that work of a type generally recognized as a mechanic's work in the conversion of aircraft from one configuration to another. In addition, the work of a mechanic shall include, but not be limited to, taxiing, towing and pushout of all aircraft, servicing of de-icing equipment, de-icing of aircraft, operation of de-icing equipment when used for deicing of aircraft and/or in connection with other work generally recognized as mechanic's work. Such work shall also include the dismantling, repairing, assembling, modifying and erecting of machinery, mechanical devices, public address systems, T.V. monitors (transmitters and receivers), ground two-way radio ramp communications equipment, security equipment, automotive equipment, building maintenance and repair work. (8) Crew Chief Stores Clerk The work of a Crew Chief Stores Clerk shall consist of and include, and he shall be responsible for, leading, directing, and assigning the work of other employees of the Stores classification to the satisfaction of the Company. A Crew Chief Stores Clerk may be required to sign for his own work and work of others in his group provided, however, that such signing shall not relieve any other member of his group from responsibility for the work he performed or from being required to sign appropriate Company work forms and/or records. A Crew Chief Stores Clerk will also give on-the-job instruction and training to Stores Clerks when such training and instruction is required by the Company. If any checking, reviewing and verification of work forms or records related to Stores Clerk work is necessary, it will be done by a Crew Chief Stores Clerk. In addition a Crew Chief Stores Clerk will be responsible for, and his duties shall consist of and include, coordinating of work and scheduling and issuing of any and all work forms consistent with the overall work plan established by the Company. The Crew Chief Stores Clerk shall also be familiar with the duties of the Stores classification and will be capable of performing such duties. He will assist his group in the performance of such duties provided such assistance does not interfere with the performing of his primary responsibility as described above 10 ARTICLE 4(A)(8) (CONTINUED) and provided further that while he is performing Stores work his primary duties are not assumed by others. A Crew Chief may be assigned to coordinate the work of other Crew Chiefs. In such instances, he may or may not have other employees assigned to him. The Crew Chief shall be required (on a non-exclusive basis) to demonstrate proper work methods, conduct on-the-job training, and conduct meetings or indoctrinate employees in new or revised operational procedures. (9) Stores Clerk A Stores Clerk will do all work generally recognized as the routine duties of a Stores Clerk in and about the Company storerooms and stockrooms, except as provided in the Dining Service Agreement. The duties of a Stores Clerk shall include the delivering of parts and materials at overhaul bases and other locations on the system where mechanics do not accomplish this work. The duties of a Stores Clerk shall also include the driving of trucks in transporting stores supplies. At those locations where Stores Clerks are employed they shall transport Company parts, materials supplies, and stationery materials between Company facilities within a city or metropolitan area. Materials, etc., waybilled or labeled to a specific location within the metropolitan area would be considered en route until it reaches the final destination. The Company may require Stores Clerks to transport U. S. and Company mail. Building maintenance and automotive parts, supplies and/or materials will be inventory received, ordered and issued by Stores Clerks. Stores Clerks will also be responsible for the replenishment of all self service stock. At major stations and overhaul bases, all parts, materials, supplies and stationery materials, will be delivered by Stores Clerks. Deliveries to any office facilities which are part of such stations or bases will be let a point designated by the Company. (With respect to the handling of stationery materials at the Overhaul Bases, refer to the attached Letter Page 139.) At locations other than major stations and overhaul bases any deliveries by Stores Clerks will be to a point designated by the Company. It is clearly understood and agreed that all parts, materials supplies and stationery materials (specifically excluding ticket stock) shall be delivered directly to the Company stockroom at locations where Stores Clerks are employed. The preparation and forwarding of A.O.G.'s to transportation, the receipt from transportation and forwarding to the user, is the duty of a Stores Clerk. All required labeling and documentation in connection with ordering, receiving, issuing and shipping as well as the preparation and maintenance of required records (specifically excluding Kardex posting) will be performed by Stores Clerks. At all locations on the TWA system that do not maintain Dining Service Units, the following shall apply: (a) At those facilities where TWA employs Stores Clerks, any Company inventory taking place at the caterer's facility, including any inventory of Company materials delivered to the caterer's facility direct from the vendor will be performed by Stores Clerks. Should the Company 11 ARTICLE 4(A)(9) (CONTINUED) require that materials delivered directly to the caterer be received by Company personnel, such personnel shall be Stores Clerks. (b) The movement of Commissary items to caterers from airport locations will be performed by Stores Clerks. Stores Clerks are to be employed at the Overland Park Training Center (Hostess Academy) and Surplus Sales where the Company maintains its Surplus Sales facilities. In addition, Stores Clerks will be employed at the Jack Frye Building (Flight Simulator Building), and new facilities such as the KCI Administrative Building will be staffed with Stores Clerks as required. At locations where Stores Clerks are not employed, all work described above will be performed by the Mechanic classification unless the amount of work involved herein and other normal Stores Clerks functions exceed four (4) hours on a shift. In such event a Stores Clerk will be employed. (See letter Page 137 for additional detailed Stores Clerk duties.) (10) Crew Chief Fire Inspector The work of a Crew Chief Fire Inspector shall consist of and include, and he shall be responsible for, leading, directing, and assigning the work of other employees of the Fire Inspector classification to the satisfaction of the Company. A Crew Chief Fire Inspector may be required to sign for his own work and the work of others in his group provided, however, that such signing shall not relieve any other member of his group from responsibility for the work he performed or from being required to sign appropriate Company work forms. A Crew Chief Fire Inspector will also give on-the-job instruction and training to Fire Inspectors when such training and instruction is required by the Company. If any checking, reviewing and verification of work forms related to Fire Inspectors' work is necessary, it will be done by a Crew Chief Fire Inspector. In addition a Crew Chief Fire Inspector will be responsible for, and his duties shall consist of and include, coordinating of work and scheduling and issuing of any and all work forms consistent with the overall work plan established by the Company. The Crew Chief Fire Inspector shall also be familiar with the duties of the Fire Inspector classification and will be capable of performing such duties. He will assist his group in the performance of such duties provided such assistance does not interfere with the performing of his primary responsibility as described above and provided, further, that while he is performing Fire Inspectors' work his primary duties are not assumed by others. Where a Crew Chief Fire Inspector is employed, he, as well as the Fire Inspectors, will assist in the training of employee volunteer fire brigades and direct such employees in fire fighting activities when required. A Crew Chief 12 ARTICLE 4(A)(10) (CONTINUED) may be assigned to coordinate the work of other Crew Chiefs. In such instances, he may or may not have other employees assigned to him. The Crew Chief shall be required (on a non-exclusive basis) to demonstrate proper work methods, conduct on-the-job training, and conduct meetings or indoctrinate employees in new or revised operational procedures. (11) Fire Inspector The work of a Fire Inspector shall consist of and include all work recognized as Fire Inspector's work, including, but not limited to, inspection and testing of all fire prevention and control equipment such as hoses, nozzles, sprinkler systems, valves, extinguishers, pumps, ladders, fire carts, fire wagons, etc., and including the replacement of necessary parts in fire extinguishers. They shall operate all fire prevention and control equipment and stand by during jobs involving a fire hazard when necessary. Fire Inspectors will assist in the training of employee volunteer fire brigades and direct such employees in fire fighting activities when required. Fire Inspectors will operate all pumping equipment; make observations for wind direction, ceiling, and visibility; and inspect plant facilities for fire and safety hazards. They shall administer first aid to personnel when required. A Fire Inspector will not perform any mechanical work of any nature. (12) Crew Chief Ramp Serviceman The work of a Crew Chief Ramp Serviceman shall consist of and include, and be shall be responsible for leading, directing, and assigning the work of other employees of the Ramp Service classification to the satisfaction of the Company. A Crew Chief Ramp Serviceman may be required to sign for his own work and the work of others in his group provided, however, that such signing shall not relieve any other member of his group from responsibility for the work he performed or from being required to sign appropriate Company work forms. A Crew Chief Ramp Serviceman will also give on-the-job instruction and training to Ramp Servicemen when such training and instruction is required by the Company. If any checking, reviewing and verification of work forms related to Ramp Service work is necessary, it will be done by a Crew Chief Ramp Serviceman (unless it is performed by a higher classification under this Agreement). In addition a Crew Chief Ramp Serviceman will be responsible for, and his duties shall consist of and include, coordinating of work and scheduling and issuing of any and all work forms consistent with the overall work plan established by the Company. The Crew Chief Ramp Serviceman shall also be familiar with the duties of the Ramp Service classification and will be capable of performing such duties. He will assist his group in the performance of such duties provided such assistance does not interfere with the performing of his primary responsibility as 13 ARTICLE 4(A)(12) (CONTINUED) described above and provided, further, that while he is performing Ramp Service work his primary duties are not assumed by others. A Crew Chief may be assigned to coordinate the work of other Crew Chiefs. In such instances, he may or may not have other employees assigned to him. The Crew Chief shall be required (on a non-exclusive basis) to demonstrate proper work methods, conduct on-the-job training, and conduct meetings or indoctrinate employees in new or revised operational procedures. (13) Ramp Serviceman The work of a Ramp Serviceman will consist of and include the transporting and handling of all commissary, food, beverages, liquors, passenger service kits, supplies and equipment, to and from the aircraft; including the preflight check of all such items on board the aircraft. The Ramp Serviceman will do all necessary work relative to the preparation of the plane's service equipment for flight. A Ramp Serviceman's duties will also include the loading and unloading of aircraft galleys, the performance of errands in connection with commissary and the transporting of commissary and food service equipment to and from the aircraft. The Ramp Serviceman will also be responsible for work involving the cleanliness of the commissary at such points and times Janitors do not perform such work under the terms of this or the TWA-IAM Dining Service Agreement. It is further intended that the Company will not be obliged to change existing caterer operations except to the extent that Ramp Servicemen be employed to handle all commissary movements from caterer's truck to Company aircraft and vice versa at the following stations: SFO, ORD, STL, PIT, BOS, LAS, EWR, PHL, DCA, IAD, PHX, DEN, IND, CMH, and DAY. As soon as possible, but not later than six (6) months from October 18, 1976, Ramp Servicemen will also handle all commissary movements from caterer's truck to Company aircraft and vice versa at those stations not enumerated in this paragraph. The work of a Ramp Serviceman will include the handling of baggage. Ramp Servicemen will also handle and operate all passenger loading stairs and mobile lounges owned or operated by the Company. The assembly and disassembly of prefabricated kennels and shipping containers will be performed by Ramp Servicemen. The work of a Ramp Serviceman will include all work in connection with all loading, unloading, and handling of all mail, express, cargo, and air freight, also the crating, uncrating, and recrating of all shipments in and about Company facilities, wherever for any reason, it is necessary to do so. In addition, he will perform all work connected with the palletizing and depalletizing, including the loading, unloading, buildup, breakdown, and tiedown of all pallets, igloos and containers, at any Company owned and/or occupied facilities. The Company shall furnish the necessary tools for accomplishment of the above, and the Ramp Serviceman shall not be permitted the use of other tools. 14 ARTICLE 4(A)(13) (CONTINUED) The work of a Ramp Serviceman shall consist of and include driving all types of trucks, tractors, Company operated flight crew buses. and automotive equipment, the servicing of aircraft and automotive equipment with fuel, oil, and water, the greasing of automotive and ground equipment, operation of bulk fuel stations and portable air conditioners. He will maintain equipment used in his work in a clean safe condition: however, he shall not perform any mechanical work of any nature. It is further agreed and understood that he may be required to perform other work of a general utility nature. The handling and acceptance of all freight, cargo, mail and express, etc., mentioned in this classification, and the preparation and handling of related forms, including the receipt, checking and inventorying, labeling and warehouse routing of all freight shipments, cargo, etc., which have been tendered to the Company will be performed by Ramp Servicemen, on a dock delivery basis, and/or channeled through the appropriate Company warehouses, except as otherwise provided under the terms of the letter from D. J. Crombie to J. J. Schwind on Page 141. The on airport transporting of all the above mentioned cargo, etc., between all hangars, shops, mail facilities, express facilities. aircraft, warehouses and trucks (except as expressly defined in the Stores classification), etc., shall be performed by Ramp Servicemen. The Ramp Serviceman shall operate and handle all job related automated equipment, in addition he shall operate all equipment owned or leased by the Company, in performing the above job function. Ramp Servicemen may also input and retrieve data from computers which they use for the accomplishment of their work. At Technical Service locations, the work of a Ramp Serviceman will include the servicing and cleaning of station equipment. including equipment used in the performance of his duties. (Present Technical Service locations are JFK/LGA, LAX, MCI and STL.) At other than Technical Service locations, the work of a Ramp Serviceman will include the work specified in paragraph (a)(18) of Article 4. When there is a need for adding or eliminating a station or stations from the Technical Service locations listed above, the method to be used in effecting such changes, insofar as such change affects the employee(s) rights created by this Agreement, will be discussed and resolved with the President - General Chairman. District 142 prior to such changes being implemented. Such change is to be planned and effected in a manner which will minimize the disturbance of the employee(s) seniority rights. (14) Mechanic Helper The work of Mechanic Helper shall include the performance of simple repetitive jobs such as moving parts and equipment exclusive of stores stock, cleaning out oil tanks, and other duties now recognized as work of Mechanic Helper. Should the Company desire to expand this classification to other simple repetitive jobs, or to locations other than Engine Overhaul - KCI, or to assist mechanics, it shall, prior to such expansion secure the agreement of District 142 of the Union. 15 ARTICLE 4(A) (CONTINUED) (15) Crew Chief Guard The work of a Crew Chief Guard shall consist of and include, and he shall be responsible for, leading, directing and assigning the work of other employees of the Guard classification to the satisfaction of the Company. A Crew Chief Guard may be required to sign for his own work and the work of others in his group, provided however, that such signing shall not relieve any other member of his group from responsibility for the work he performed or from being required to sign appropriate Company work records. A Crew Chief Guard will also give on-the-job instruction and training to Guards when such training and instruction is required by the Company. If checking, reviewing and verification of work sheets and forms related to Guard work is necessary, it will be done by a Crew Chief Guard. In addition a Crew Chief Guard will be responsible for, and his duties shall consist of and include coordinating of work and scheduling and issuing of any and all work cards related to Guard work, consistent with the overall work plan established by the Company. The Crew Chief Guard shall also be familiar with the duties of the Guard classification and will be capable of performing such duties. He will assist his group in the performance of such duties provided such assistance does not interfere with the performing of his primary responsibility as described above and provided further that while he is performing Guard work his primary duties are not assumed by others. A Crew Chief may be assigned to coordinate the work of other Crew Chiefs. In such instances, he may or may not have other employees assigned to him. The Crew Chief shall be required (on a non-exclusive basis) to demonstrate proper work methods, conduct on-the-job training, and conduct meetings or indoctrinate employees in new or revised operational procedures. (16) Guard A Guard shall be defined as an employee, a majority of whose work assignment consists of all Company required guarding of gates, entrances, or other posts in and about Company premises, patrolling areas, punching watchman clocks, use and monitoring of electronic audio and video security devices, and all other similar work generally recognized as that of guard personnel. (17) Crew Chief Fleet Service Helper The work of a Crew Chief Fleet Service Helper shall consist of and include, and he shall be responsible for leading, directing, and assigning the work of other employees of the Fleet Service classification to the satisfaction of the Company. A Crew Chief Fleet Service Helper may be required to sign for his own work and 16 ARTICLE 4(A)(17) (CONTINUED) the work of others in his group provided, however, that such signing shall not relieve any other member of his group from responsibility for the work he performed or from being required to sign appropriate Company work records. A Crew Chief Fleet Service Helper will also give on-the-job instruction and training to Fleet Service Helpers when such training and instruction is required by the Company. If any checking, reviewing and verification of work sheets and forms related to Fleet Service work is necessary, it will be done by a Crew Chief Fleet Service Helper (unless it is performed by a higher classification under this Agreement). In addition a Crew Chief Fleet Service Helper will be responsible for, and his duties shall consist of and include coordinating of work and scheduling and issuing of any and all work cards related to Fleet Service work, consistent with the overall work plan established by the Company. The Crew Chief Fleet Service Helper shall also be familiar with the duties of the Fleet Service Helper classification and will be capable of performing such duties. He will assist his group in the performance of such duties provided such assistance does not interfere with the performing of his primary responsibility as described above and provided, further that while he is performing Fleet Service Helper work his primary duties are not assumed by others. A Crew Chief may be assigned to coordinate the work of other Crew Chiefs. In such instances, he may or may not have other employees assigned to him. The Crew Chief shall be required (on a non-exclusive basis) to demonstrate proper work methods, conduct on-the-job training, and conduct meetings or indoctrinate employees in new or revised operational procedures. (18) Fleet Service Helper At Technical Service locations the work of a Fleet Service Helper shall include all cleaning, washing, and polishing of aircraft both on interior and exterior. He may also be required to clean all parts, ramp and automotive equipment, exclusive of work normally performed by Ramp Servicemen. A Fleet Service Helper shall do all chatting of parking lots (provided that no driving is required), removing snow with shovels and/or hand-operated snow blowers, cleaning ramps and sidewalks, moving materials and equipment (exclusive of Stores stock), provided that he operates no machinery. A Fleet Service Helper will do all other work generally recognized as common labor, and may be required to perform Janitor work, and he shall do no mechanical work or work of a higher classification. A Fleet Service Helper may operate automotive equipment in connection with the performance of his work. This driving shall not include the transporting of employees other than Fleet Service Helpers or transportation of parts, equipment, or material other than used in connection with Fleet Service Helper work. A Fleet Service Helper may be required to change seat covers and curtains. 17 ARTICLE 4(A) (CONTINUED) (19) Crew Chief Janitor The work of a Crew Chief Janitor shall consist of and include, and he shall be responsible for, leading, directing, and assigning the work of other employees of the Janitor classification to the satisfaction of the Company. A Crew Chief Janitor may be required to sign for his own work and the work of others in his group provided, however, that such signing shall not relieve any other member of his group from responsibility for the work he performed or from being required to sign appropriate Company work records. A Crew Chief Janitor will also give on-the-job instruction and training to Janitors when such training and instruction is required by the Company. If any checking, reviewing and verification of work sheets and forms related to Janitor work is necessary, it will be done by a Crew Chief Janitor. In addition a Crew Chief Janitor will be responsible for, and his duties shall consist of and include, coordinating of work and scheduling and issuing of any and all work cards related to Janitor work, consistent with the overall work plan established by the Company. The Crew Chief Janitor shall also be familiar with the duties of the Janitor classification and will be capable of performing such duties. He will assist his group in the performance of such duties provided such assistance does not interfere with the performing of his primary responsibility as described above and provided, further, that while he is performing Janitor work his primary duties are not assumed by others. A Crew Chief may be assigned to coordinate the work of other Crew Chiefs. In such instances, he may or may not have other employees assigned to him. The Crew Chief shall be required (on a non-exclusive basis) to demonstrate proper work methods, conduct on-the-job training, and conduct meetings or indoctrinate employees in new or revised operational procedures. (20) Janitor The work of a Janitor at overhaul bases and at major stations and other locations, as outlined in the letter from William Schecter, to William O'Driscoll on Page 144, shall consist of and include the cleaning inside (also outside first story, window washing) of buildings and hangars, sweeping shops and walks, grass cutting, and other work normally performed by Janitors. (b) (1) In the respective classification and seniority groupings listed above, whenever it is necessary to maintain employees on a shift, they will work for Crew Chiefs in their respective classifications and or seniority groupings. No Crew Chief will be required to Crew Chief and direct the work of a group totaling more than ten (10) other employees. 18 ARTICLE 4(B)(CONTINUED) (2) In each respective classification and/or seniority grouping, whenever it is necessary to maintain three (3) or more employees on a shift, one of them will be a Crew Chief. (3) The highest classification employed on a shift (up to and including Mechanic) shall have a Crew Chief regardless of the number of employees in such classification on that shift. Whenever there are only one (1) or two (2) employees in one or more classifications lower than the highest classification on a shift, such employees will be assigned to a Crew Chief who is in a classification above their own, and in such situations the special composite crew will not total more than ten (10) such diversified employees. If there are more than ten (10) such employees involved, there will be additional Crew Chiefs created. (4) All Crew Chiefs shall have regular assigned crews. However, a Crew Chief in any classification and/or seniority grouping may be assigned duties which do not involve the assignment of employees to him, provided that such duties are within the scope of his job description as set forth under the Agreement, and provided that such assignment does not result in the employee to Crew Chief ratio being exceeded in any way. (5) Sub-paragraphs (1) through (4) above shall not apply to Guards, who shall be governed by the following: Wherever it is necessary to maintain three (3) or more Guards on a shift, one of them shall be a Crew Chief Guard, however, if this Article does not otherwise provide for the employment of a Crew Chief Guard at a location where three or more Guards are employed, a Crew Chief Guard shall be employed at such locations. A Crew Chief Guard will not be required to Crew Chief or direct a group of more than ten (10) employees. (c) The making and revising of individual assignments to the work force shall be accomplished by a Crew Chief. If the Crew Chief is unavailable in point of time adequately to handle a situation the making or revising of an individual work assignment may be accomplished by management. In the event of conflicting orders, the responsibility shall be assumed by the last individual issuing such orders. The supervision of the work force is ultimately the responsibility of management. (d) At stations accomplishing aircraft major checks (Check C), base overhauls (Check D), and engine changes, on a pre-planned basis, employees in the classification of Inspector or higher will be required to conduct and sign off for the inspections connected with such operations, including final release of aircraft for flights. (e) At all locations, (except as provided in Article 4(a)(5)) employees in the classification of Mechanic or higher will be required to sign off for mechanical work connected with accomplishment of routine aircraft maintenance of a type 19 ARTICLE 4(B)(2)(E) (CONTINUED) which was on October 12, 1961, performed by Mechanics and designated as station service, through service, daily service, and fueling service, including special checks and special inspections and final release of aircraft for flight. (f) The two preceding paragraphs are not intended to change the present practice of inspection or non-inspection in connection with maintenance and overhaul work not specifically mentioned. ARTICLE 5 EXAMINATION(S), LICENSE(S) REQUIREMENTS AND TRAINING (a) Examination (where applicable) The Mechanic's Examination will consist of two (2) parts. Employees bidding for vacancies in the Mechanic classification must have successfully completed the applicable PART I. Employees bidding for vacancies in classifications higher than Mechanic must have successfully completed the applicable PART II. Employees must have successfully completed the applicable PART I and hold seniority in the classification of Mechanic or higher prior to taking PART II in that specialty. In the event an employee fails to pass the Mechanic Examination(s), he may submit in writing (Registered or Certified Mail - Return Receipt Requested) his request for review to the Employee Relations Department, TWA, Kansas City International Airport, P. 0. Box 20126, Kansas City, Missouri 64195, not later than five (5) days after notification that he has failed the exam. Such review shall be made by a Mechanic's Examination Committee of four (4) consisting of two (2) members selected by the Union and two (2) members selected by the Company from the Kansas City point. The Committee may establish rules governing its procedure, consistent with the provisions of the Agreement. The Committee will meet at MCI/KCI during regular day shift working hours, unless otherwise mutually agreed to, and members will not suffer loss of pay while performing their duties. A member of the TWA Training Section and the Union President - General Chairman, or his designated representative, may serve as Co-Chairman to the Committee without vote. The Mechanic's Examination Committee will complete its review within five (5) days after receiving the employee's request and will thereupon advise the Company, Union and employee, in writing, of its decision. If the Committee determines that the employee has successfully completed the examination, such decision is final and binding upon the Company. If the Committee determines that the employee has failed the examination, such decision is final and binding upon the employee. In the event the Committee is unable to arrive at a 20 ARTICLE 5(A) (CONTINUED) decision, a grievance may be filed in accordance with the provisions of Article 11 omitting Step I of the grievance procedure. (1) PART I will consist of not more than two (2) hours of written examination consisting of theory applicable to the specialty. Employees who have successfully completed the written examination for a specialty, other than his own, will be required to successfully complete a practical examination, not to exceed eight (8) hours, consisting of more than one (1) work function applicable to the specialty. All new employees will be required to successfully complete a written examination (at least equivalent to the PART I Examination) for the applicable specialty prior to filling any Mechanic vacancy covered by this Agreement. Employees who have successfully completed their probationary period or trial period as a Mechanic will be considered to have successfully completed PART I of the Mechanic's Examination in that specialty. (2) PART II will consist of not more than three (3) hours of written examination consisting of job related work applicable to the specialty. After successfully completing the written examination, a practical examination will be required, not to exceed eight (8) hours, consisting of more than one (1) work function including Crew Chief type activities related to the applicable specialty. Employees who have successfully completed their probationary or trial period as a Crew Chief Mechanic, Inspector, or higher classifications will be considered to have completed PART II of the Mechanic's Examination in that specialty. (3) Application forms for Mechanic Examination(s) shall be furnished by the Company and supplied by an employee's immediate supervisor upon request. Employees may apply for and complete only one (1) examination at a time. The Company will notify the employee seven (7) days in advance of the examination to be taken. (4) Applications shall be submitted in duplicate with one (1) copy forwarded by Registered or Certified United States Mail (Return Receipt Requested): c/o Regional Employee Relations Department, TWA, Kansas City International Airport, P. O. Box 20126, Kansas City, Missouri 64195, and one (1) copy c/o President - General Chairman, District Lodge 142, 400 N.E. 32nd Street, Kansas City, Missouri 64116. (5) Within seven (7) days after completing the Mechanic Examination, an employee will be notified in writing of the results (including a statement identifying the area(s) of deficiency for those failing the examination). 21 ARTICLE 5(A) (CONTINUED) (6) PART I and II, Mechanic Examinations, methods of grading procedures, applications, and job related specialties shall be agreed to by both the Union and the Company. (7) Results of the examinations shall be open to inspection by the Local Grievance Committee or a representative designated by District 142. A record of employees having successfully completed Mechanic Examination(s) shall be maintained by the Company. (8) An employee who has completed fifteen (15) months continuous active employment with the Company as a Mechanic may apply for additional Mechanic Examination(s), PART I. Only an employee currently working as a Mechanic or in a higher classification who has completed fifteen (15) months continuous active employment with the Company as a Mechanic or higher classification may apply for additional Mechanic Examination(s), PART II. (9) At stations where maintenance instructors are based, examinations will be given by the TWA Training Section. At other stations a ranking Maintenance Representative designated by the Company may give the examination under the direction of the TWA Training Section. Such examination will be given during an employee's regular working hours without loss of pay. When it is impractical to schedule an examination during an employee's regular working hours, such examination may be scheduled during an employee's own time, convenient and agreeable to the employee, and the employee given compensating time off. (10) All examinations will be completed not more than thirty (30) days after an employee's application is received by the Company. All employees will have a completion date effective thirty-seven (37) days from the date the application is received by the Company. (11) Failure to appear for examination at the designated time and place will invalidate the application, unless satisfactory reason is given, in which case the time limits mentioned in (10) above will be extended by the exact number of days remaining in the original time limits, computed from date of the missed examination. Such extension will begin from the date the employee returns to work. (12) Employees who fail to pass the examination will not be permitted to take the same examination within ninety (90) days from date of previous examination. (13) Where a license or licenses are required, no examination will be required, except the practical portion of PART II, where applicable. (14) An employee having achieved the Master Mechanic rating prior to July 1, 1955, will be considered as having passed the Mechanic's Examination(s). 22 ARTICLE 5(A) (CONTINUED) (15) No employee accruing seniority as a Crew Chief, Flight Simulator Technician, Inspector, or Mechanic on the date of the Agreement will be required to take additional Mechanic's Examinations to maintain his rating. (16) Any employee holding seniority in the Mechanic classification bidding for a Mechanic vacancy in a different specialty must have successfully completed the Mechanic's Examination PART I, applicable to that specialty. (17) Any employee holding seniority in the Mechanic classification or higher, bidding for or displacing into an Inspector or Crew Chief classifications above Mechanic, must have successfully completed the Mechanic's Examination PART II, applicable to that specialty. (18) Employees having passed the Mechanic's Examination(s) as provided for in the TWA-IAM Agreement signed August 25, 1966, will be considered as having successfully completed the Mechanic's Examinations PART I and PART 11, applicable to that specialty. (19) Employees having successfully completed the applicable Mechanic's Examination PART II will be considered as qualified in connection with bids for Inspector and Crew Chief Jobs in the Mechanic classification or higher. (20) Employees having successfully completed the applicable Mechanic's Examination PART I will be considered as qualified in connection with bids for jobs in the Mechanic classification. (b) Employee(s) in a classification below Mechanic must have a qualification sheet on file as provided in Article 6(f)(12) prior to submitting an application for a Mechanic's Examination. Upon receipt of the employee's application, the Company will review the employee's qualification record on file, work experience and the applicable performance standard as agreed upon by the Company and Union. Employees who meet the basic requirements will be scheduled for the applicable PART I Examination as outlined in Article 5(a)(10). The Company will notify the employee in writing when it is determined that the employee does not meet the basic requirements for the applicable PART I Examination. The employee may request a review of his qualifications in the same manner as provided for in Article 10(b)(19). (c) Employees not holding seniority in the Flight Simulator Technician classification will be required to successfully complete the Flight Simulator Technician Examination Part I prior to submitting a bid to fill a vacancy in the Flight Simulator Technician Classification. Such Examination will be agreed upon by the Company and the Union. 23 ARTICLE 5(C) (CONTINUED) Flight Simulator Technicians, prior to the commencement of the ninety (90) day trial period, will be assigned a sixty (60) day training period during which he/she will receive classroom and on- the-job training. (d) Stores Classification: Employees not holding seniority in the Stores classification will be required to successfully complete the Stores Examination prior to submitting a bid to fill a vacancy in the Stores classification. Such Examination will be agreed upon by the Company and the Union. (e) Ramp Serviceman Classification: Employees not holding seniority in the Ramp Serviceman classification will be required to successfully complete the Fueling Examination prior to submitting a bid to fill a vacancy in such classification. The examination will be agreed upon by the Company and the Union. (f) Employees must have a qualification sheet on file as provided in Article 6(f)(12) prior to submitting an application for Stores or Fueling Examinations. Upon receipt of the employee's application, the Company will review the employee's qualification record on file and work experience. Employees who meet the basic requirements will be scheduled for the applicable examination. The Company will notify the employee in writing when it is determined that the employee does not meet the basic requirements of the job. (g) License Requirements (1) Crew Chief Inspectors and Inspectors (a) Overhaul Bases (1) Airframe Overhaul - Must possess FAA "A & P' license or FCC General Radio-telephone license, or higher, depending upon the work to which assigned. (2) Power Plant Overhaul - Must possess FAA "P" license. (b) Line Stations - Must possess FAA "A & P" license or FCC General Radio-telephone license, or higher, depending upon work to which assigned. 24 ARTICLE 5(G) (CONTINUED) (2) Crew Chief Mechanic (a) Overhaul Bases - Airframe Hangar Specialties (1) Aircraft Must possess FAA "A" license. (2) Aircraft Engine - Must possess FAA "P" license. (3) Hydraulic - Must possess FAA "A" license. (4) Radio - Must possess FCC General Radio-telephone license, or higher. Possession of FAA 'A' or 'P' license will suffice for employees in these Specialties as of July 1, 1955. (b) Overhaul Bases - Shop Assigned Specialties (1) Power Plant Overhaul - Must possess FAA "P" license. (2) Radio Shop - Must possess FCC General Radio- telephone license, or higher. (c) Line Stations (where applicable) - Must possess FAA "A & P" license and FCC Restricted Radio-telephone Operator's permit or Radio-telephone license, second class or higher, depending upon the work to which assigned. (3) Line Service and Overhaul Bases (where applicable) - Mechanics or higher holding or bidding for line service assignments, will be required to possess and exercise valid FAA "A & P" license(s) and FCC Restricted Radio-telephone Operator's permit, or General Radio-telephone license, or higher, depending upon the work to which assigned. (4) Employees possessing temporary FAA Certificate(s) shall be considered as possessing the applicable license(s). (5) No employee accruing seniority in any classification will be required to obtain additional license(s) to maintain his rating. (6) It is understood that an employee having achieved the Master Mechanic rating prior to July 1, 1955, bidding laterally for positions requiring license(s) shall be allowed six (6) months from date of acceptance as successful bidder to obtain the necessary license(s). If he fails to obtain the required license(s) within the specified period, he will return to his former position at his own expense. 25 ARTICLE 5(G) (CONTINUED) (7) In the event that Federal requirements are changed, the Company and the Union will meet and make such changes in the license requirements provisions as become necessary. In the event that Federal agencies or their agents determine that the work experience which can be acquired in a job does not constitute the experience required to obtain or renew Federal license(s), the requirements for such license(s) under this Agreement shall be waived for employees working in that job. (8) Whenever an employee is required by State or Federal law to possess a special permit and/or license to perform duties to which he is normally assigned, such permit and/or license will be paid for by the Company. The employee will be allowed reasonable time off to obtain such permit and/or license without loss of pay. This paragraph shall not apply for the obtaining of FAA 'A' or 'P' licenses, or FCC Radio Telephone licenses (second class or higher). (9) Should there by any change during the life of this Agreement in license requirements, all employees affected shall be given a reasonable length of time from the date of change to obtain such license without change in status or pay. Any qualified employee, upon request, shall be furnished with a certificate of eligibility by the Company for presentation to the proper government agency for procuring an FAA or FCC license. (h) (1) Inspector and Mechanic Training (a) New Equipment As new equipment is introduced into the system, Inspectors and Mechanics affected will be given training (Classroom and/or on-the-job) concerning such equipment to gain proficiency in their work. (2) All Crew Chiefs (a) New Equipment As new equipment is introduced into the system, each Crew Chief affected will be given training (Classroom and/or on-the-job) to gain proficiency in his work and further will receive an amount of technical training that is equal to the amount of training to be received by his immediate supervisor for that specialty. (b) Administrative The Company will provide administrative training to all Crew Chiefs. Such training will be for the purpose of acquainting such Crew Chiefs with the elements of leadership and direction, the effective coordination of work and requisite record keeping. 26 ARTICLE 5(H) (CONTINUED) (3) Crew Chief Inspector and Crew Chief Mechanic Training Recurrent Each Crew Chief Mechanic and Crew Chief Inspector will receive annual recurrent training (Classroom and/or on-the- job) of a similar order as that given such Crew Chief's immediate supervisor for the specialties listed on the following list: Minimum Hours Annual Recurrent Crew Chief Classification by Specialty Training -------------------------------------- ---------------- Metal 20 Electrical 20 Hydraulic 20 Radio 20 Instrument 20 Engine Overhaul 20 Aircraft 20 Aircraft - Engine 20 Hangar - Line (A & P Line) 20 Plating 20 Electro Mechanical 20 Electronic 20 Automotive 20 Ground Equipment and Repair 20 Welding 20 (4) Crew Chief Flight Simulator Technicians will receive a minimum of twenty-four (24) hours annual recurrent training on-the-job and/or in the classroom and both they and Flight Simulator Technicians will be given new equipment training consistent with the principles set forth in paragraph 1 above. (5) Any of the foregoing training which is on-the-job training will be given on the employee's regular shift and during his regular hours. (6) Any of the foregoing training which is classroom training will be minimum increments of four (4) hours each. (7) Training of newly assigned station personnel i.e.. Ramp Service employees, transferring to a station outside the metropolitan area with unique job functions (e.g.: receipt & dispatch, de-icing, aircraft towing) will be provided sufficient training after reporting to the new station and prior to an assignment to perform functions. ARTICLE 6 SENIORITY (a) Seniority (Company and Classification) 27 ARTICLE 6(A) (CONTINUED) (1) Seniority shall be defined as the length of service for which an employee receives credit, regardless of location, in any of the classifications covered by this Agreement with this Company or any of its predecessors. (2) The definition of seniority shall include ability to perform the required work of the job in a satisfactory manner, and except as hereinafter provided shall accrue from the date of entering a classification on a regular assignment. Seniority shall be applicable to all classifications covered by the Agreement. (3) Company seniority shall be defined as the date of hire (i.e., first day of work). An employee's company seniority date will not be adjusted for assistant/part-time service. (4) Classification seniority date shall be adjusted based on one-half accrual for assistant/part-time service and shall be used for bidding purposes except as otherwise provided in the agreement. In the exercise of seniority: (a) If two or more employees in the same Crew Chief classification have the same Crew Chief seniority date, basic classification seniority shall govern. Should this be one and the same date (Mechanic and Above: Refer to (b) below) Company seniority shall govern. Should this be one and the same date, the alphabetical order of the employees' names shall govern. (b) If two or more employees in the same basic classification above Mechanic have the same classification seniority date, Mechanic seniority shall govern. Should this be one and the same date, Company seniority shall govern. Should this be one and the same date, the alphabetical order of the employees' names shall govern. (c) If two or more employees in the same basic classification, Mechanic or below, have the same classification seniority date, Company seniority shall govern. Should this be one and the same date, the alphabetical order of the employees' names shall govern. (5) Periodically it may become necessary to separate or combine seniority groupings. These changes will not be made arbitrarily or without good reason. They will be made only to achieve improved operation, performance, and working conditions from which everyone will benefit. Such changes necessarily present problems which must be worked out with the cooperation of everyone concerned. When the need for a change in seniority groupings which may affect seniority exercise has been recognized, and the nature of such change has been determined by the Company, the method to be used in effecting such change will be discussed and resolved with the appropriate Union representatives. Such change will be planned and effected in a manner which will minimize the 28 ARTICLE 6(A)(5) (CONTINUED) disturbance of employees' seniority exercise. Regardless of other provisions of this Agreement, employees whose seniority exercise may be affected by any separation or combining of seniority groupings, shall be permitted to exercise seniority for choice of assignment in the groupings affected. Any such change will be preceded by adequate advance notice to all employees affected. (6) At the Overhaul Base, it is agreed that in the transfer of work or the assignment of new work, the Company will assign it to the appropriate specialty. When such transfer of work takes place, the Company and the Union will agree on the disposition of the personnel affected as a result of such transfer. (7) The principle of seniority shall apply in the application of the Agreement in all reductions or increases of force, preference of shift, days off, vacation period selection, in bidding for vacancies or new jobs, and in all promotions, demotions, or transfers involving classifications covered by this Agreement. (b) Probationary Employees: (1) Upon entering an IAM Agreement, employees not holding seniority in any of the TWA-IAM Agreements will be considered as probationary employees for the first one hundred twenty (120) days of their employment, excepting such employees hired as mechanics who will be considered as probationary employees for the first one hundred eighty (180) days of their employment, and there shall be no responsibility on the part of the Company or the Union for reemployment of probationary employees if they are discharged or laid off during this period. (2) If retained after the probationary period, the names of such employees shall then be placed on the appropriate seniority list as of their date of hire. The seniority of employees subject to the one hundred eighty (180) days probationary period will be considered after they, have completed one hundred twenty (120) days of such probationary period for the purpose of exercising seniority in the event of reduction and or displacement. (3) It is understood that employees promoted will be subject to a trial period in accordance with Article 10(b)(16). Such employees promoted into the mechanic classification will be subject to a one hundred eighty (180) day trial period. (c) System Seniority Lists: (1) Seniority lists, corrected to December 1 and June 1, shall be prepared by the Company, and furnished each local Committee and the President - General Chairman for the Union, and shall be posted on bulletin boards at each point on the system by January 1 and July 1 each year. Errors of omission and typographical errors will be corrected currently with a copy furnished the President - General Chairman. 29 ARTICLE 6(C) (CONTINUED) (2) All seniority lists shall be open to protest for a period of fifteen (15) days from date of posting, but if the seniority date on a list is not protested within the prescribed time limit after the initial appearance of a name on a list, such date shall stand as correct and official on all subsequent lists. Any employee on leave, on special assignment, in a laid-off status, on vacation, or on sick or injured absence at the time of posting shall have a period of fifteen (15) days from the date of his return to service to file a protest. The Company shall thereafter post any revisions in the list, and any adjustment or failure to make an adjustment with which an employee or the Union may be dissatisfied shall be handled as a grievance in accordance with the provisions of Article 11 upon request of the party filing the protest or an employee affected by any adjustment made. The filing of the grievance must be made within seven (7) days after the posting of the revisions, and any employee on leave, on special assignment, in a laid-off status, on vacation, or on sick or injured absence at the time of posting such revisions shall have a period of seven (7) days from the date of his return to service to file such grievance. Regardless of other provisions of this Agreement to the contrary, when the Company and the Union mutually agree that a seniority list should be changed to comply with the provisions of this Agreement, or when it has been established through the grievance procedure that a list should be changed, such change will be posted currently. It is understood that any resulting adjustment in the list shall not create any liability to the Company or the Union. (3) System seniority lists will reflect names of employees in a classification in the order of basic classification seniority, except that in the classification of Inspector, employees will be listed in the order of Mechanic seniority. If two or more employees in the same classification (Mechanic and below) have the same classification seniority date their names will appear in the order of Company seniority. Should this be one and the same date the names will then be arranged in alphabetical order. (4) The classes or crafts covered by this Agreement are identified as the classifications set forth herein and for the purpose of computing and applying seniority, it is understood that all Company operations within any city or metropolitan area shall be considered as one point. 1. Crew Chief Systems Technician 2. Crew Chief Flight Simulator Technician 3. Flight Simulator Technician 4. Crew Chief Inspector 5. Inspector 6. Crew Chief Mechanic 7. Mechanic 8. Crew Chief Stores Clerk 9. Stores Clerk 10. Crew Chief Fire Inspector 30 ARTICLE 6(C)(4) (CONTINUED) 11. Fire Inspector 12. Crew Chief Ramp Serviceman 13. Ramp Serviceman 14. Mechanic Helper 15. Crew Chief Guard 16. Guard 17. Crew Chief Fleet Service Helper 18. Fleet Service Helper 19. Crew Chief Janitor 20. Janitor One combined seniority list for Janitors under this Agreement and Dining Service Agreement. (5) When an employee goes to a higher classification (Full Time/Part Time) covered by any TWA-IAM Agreement, he shall continue to accrue seniority in the lower classification from which promoted. The basic classification listed in (4) above (i. e., Mechanic, Stores Clerk, Janitor, etc.) shall govern in considering which is a higher or lower classification. (d) Loss of Seniority An employee will lose his seniority status and his name will be removed from the seniority list(s) under the following conditions: (1) He accepts any position not covered by any of the TWA-IAM Agreements, with this Company or any of its predecessors, regardless of location (except as provided in this Agreement). (2) He quits or resigns. (3) He is discharged for just cause. (4) An employee who voluntarily reduces himself from a classification, including accepting a bid to a lower classification, shall have his name removed from the seniority list for that classification from which he is being reduced, for Crew Chief in that classification and for all lower classification(s), including Crew Chief, which he voluntarily bypassed and shall lose all seniority and pay credit for such classifications), except as provided in Article 10(b)(3). An employee holding seniority in classifications) above Mechanic who voluntarily reduces himself from the Mechanic classification shall have his name removed from the seniority list for all higher classification(s) and shall lose all seniority and pay credit in such classification(s). However, an employee who has received a notice of reduction to a lower classification and, prior to actual reduction, submits a bid and accepts a job to fill a vacancy in the same or higher classification than the one to which he is being reduced, will not forfeit seniority in the classification from which being reduced. 31 ARTICLE 6(D) (CONTINUED) (5) He does not inform the Company in writing or by telegram of his intention to return to work within seven (7) calendar days after date of sending a notice offering to re-employ him after a layoff, unless satisfactory reason is given. (6) He accepts recall for temporary work, including promotion on a temporary basis, and quits before completion of the temporary period for which recalled. (7) He does not return to work on or before a date specified in the recall notice from the Company after a layoff, which date shall be not prior to seventeen (17) calendar days after receipt of such notice. Any notice provided for in this paragraph shall be sent by Certified Mail (Return Receipt Requested) or telegram/mailgram to the employee only at the last address filed in writing by him with the Employee Relations Department. This paragraph and (d)(5) above shall not apply to offers of temporary work. Whenever the approximate duration of the work period for which the employee is being recalled is known to the Company and specified in the recall notice, the vacancy shall be considered as temporary. (8) He engages in gainful employment while on leave of absence in violation of Article 13(e). (9) He fails to return to work at the end of an authorized leave of absence, unless satisfactory reason is given. (10) He is absent three (3) consecutive work days without notifying the Company, unless satisfactory reason is given. (11) Any employee who loses seniority under (5), (6), (7), (8), (9) or (10) preceding will be notified by certified mail, copy to the Local Union Representative, of the specific paragraph under which such action was taken. Within thirty (30) days from the date of such notice, he may submit by certified mail, copy to the Local Union Representative, his request for a hearing to the Manager - Employee Relations for his region. A hearing will be held no later than ten (10) days after receipt of the employee's request and a written decision will be issued within three (3) work days after the close of the hearing. If the decision is not satisfactory, then appeal may be made in accordance with the procedure prescribed in Step 3. (12) Any employee who fails to exercise seniority as required in 6(e)(4), 6(f)(8), 6(f)(11)(a), 6(f)(19)(c) and 10(b)(9). (e) Reduction and Increase of Working Force (1) All reductions and/or displacements within a seniority grouping and/or classification at a point shall be effected in the inverse order of seniority. When 32 ARTICLE 6(E)(1) (CONTINUED) an employee is being reduced or displaced in a seniority grouping and a vacancy exists in his seniority grouping, such vacancy will be canceled and filled by the reduced or displaced employee. (2) An employee who is being reduced or displaced from a seniority grouping must exercise his classification seniority as follows: (a) The specialty at the location. (b) The specialty at the point. (c) The classification at the location, where qualified. (d) The classification at the point, where qualified. (e) When an employee is being reduced or displaced and cannot displace in his classification at a point and prior to actual reduction or layoff a vacancy exists in his classification, at his point. That vacancy will be canceled and filled by the reduced or displaced employee, if qualified. (3) The Company will notify an employee in writing after it is determined that there is not a less senior employee for which the displacing employee is qualified in the classification at the point. Such notice shall be sent by certified mail (addressee only) to those employees who are not at work. (4) (a) Not later than the employees third work day after he is so notified the employee may notify the Company, in writing of the point(s) on the system to which he wishes to exercise seniority in the classification from which he is being reduced. At the time an employee notifies the Company of his desire to displace on the system, he must submit a written notice, copy to the designated Local Union Representative, if he will accept recall to his former specialty/classification at the point from which reduced. Such recall will be only in the classification from which he is being reduced. However, in the Mechanic classification such recall will be only in those specialties in which he has completed a trial period. This recall notice may be canceled by the employee in writing to the Company in the same manner as preference bid submissions in Article (10)(b)(1) plus one copy to the employee's supervisor. (b) An employee who displaces on the system holding seniority in any classification higher than the one to which he is displacing may indicate at that time his intent to be recalled to his former point in the classification from which displaced. Such employee may waive his recall to any higher classification(s) at his displacing point. If the employee does not waive this recall and accepts a position in a higher classification at his displacing point and subsequently accepts recall to his former point, he will forfeit seniority in such higher classification(s). If an employee does not waive 33 ARTICLE 6(E)(4)(B) (CONTINUED) recall to any higher classification under this provision, Article 6(f)(2) will apply. Notices mentioned above may be canceled by the employee in writing as set forth in Article 10(b)(1), including one copy to the employee's supervisor. If an employee cancels this notice, he will lose recall to his former point. (c) The Company will notify the employee of the point on the system where he must exercise his seniority to displace the least senior employee working at the point(s) to which he wishes to exercise seniority. In the event an employee cannot displace in his classification at the point(s) selected pursuant to the above, the vacancies exist in his classification at the point(s) selected, the vacancy nearest the point of his reduction will be canceled and filled by the employee, seniority permitting. An employee who displaces on the system shall not be required to report to his displacing point within forty-eight (48) hours of the completion of his last scheduled work shift at his former point. Such employee may waive the allotted forty-eight (48) hour period by notifying the Company in writing of his intent to do so, and in such case shall be required to report to his displacing point on the report date determined by the Company. An employee electing to utilize the allotted forty-eight (48) hour period shall not be compensated for such time. (d) An employee displacing on the system will displace in his specialty where possible. If the employee has insufficient seniority to hold his current specialty at the point(s) selected he must displace the least senior employee of all specialties in which he is qualified at those points selected seniority permitting. (e) An employee failing to so exercise his seniority will lose all seniority, will be removed from the seniority lists, and his refusal to displace on the system will not affect any other displacements for which notice has been issued. However, if such results in other than the least senior employee on the system being laid off, the most senior employee from another point will be permitted to displace the least senior employee not thus laid off, etc. (5) If an employee fails to notify the Company of his desire to displace on the system, it will be conclusively presumed that he elects to exercise seniority at his point in a lower classification in which he holds seniority. An employee who fails to exercise his seniority in a lower classification at his point, where it is possible for him to do so, will lose all seniority and forfeit all recall rights in such lower classification. 34 ARTICLE 6(E) (CONTINUED) (6) An employee must displace in his highest classification at his point before displacing in the next lower classification, etc. (7) Subject to other provisions of this Agreement, the following conditions will apply: (a) A Crew Chief Mechanic may not exercise his Crew Chief Mechanic's seniority in a specialty in which he has not worked as a Crew Chief Mechanic unless he has successfully completed PART II of the Mechanic Examination for that specialty. (b) An Inspector may not exercise his Inspector's seniority into a specialty in which he has not worked as an Inspector unless he has successfully completed PART II of the Mechanic Examination for that specialty. (c) An Inspector may not submit a bid for a lateral transfer to a different specialty within his classification, unless he has successfully completed PART II of the Mechanic Examination for the specialty. (8) An employee who fails to exercise seniority at his point in the classification from which reduced where it is possible for him to do so, will lose all seniority in such classification. (f) General (1) In reductions where more than one employee is displacing at a point, the most senior of those displacing must displace first, then the next senior, etc. Displacement on the system will be in the same manner, except that in reductions where more than one employee is displacing on the system, the least senior employee being displaced on the system will be displaced by the most senior employee displacing who has listed the point of the former as acceptable. (2) Any employee in a reduced or laid off status must accept recall in any higher classification at his point, where possible to do so, or forfeit seniority in that classification, except as otherwise provided in this Agreement. (3) Only an employee holding classification seniority of at least one (1) year, on the day preceding the date notice of reduction is given, under the provisions of Article 6(f)(10), will be permitted to exercise seniority to displace on the system in such classification (and such specialty as provided in Article 6(e)(4)(d)). It is understood that an employee with less than one (1) year's seniority in the classification from which reduced may elect to displace on the system in the next lower classification in which he holds a minimum of one (1) year's seniority, provided he is unable to displace at his point in such classification. If he elects to displace on the system in the next lower classification, his recall to his former location will be in that lower classification as provided in Article 6(e)(4). 35 ARTICLE 6(F) (CONTINUED) (4) Crew Chief and classification seniority above Mechanic will not be used to displace on the system. (5) In the event there is a dispute regarding an employee's qualifications as they affect his rights to displace, the reduction will proceed as though the Company has made a correct determination of the qualifications. If it is later determined that the employee is qualified, he will then be permitted to exercise his seniority at the time of and in accordance with such qualification determination, and any resulting displacement or layoff will be on the basis of the current status of the employees in jobs at that time. (6) (a) An employee who is to be reduced or laid off in a reduction of force because the Company has determined that he is not qualified for any classification in which he seeks to exercise seniority may request a review of his qualifications. Such employee may submit in writing via certified U. S. mail his request for review to: Employee Relations Department, TWA, Kansas City International Airport, P. 0. Box 20126, Kansas City, Missouri 64195, not later than one (1) work day after written notification that he is to be reduced. (b) Such review shall be made by a Qualifications Committee of four (4) consisting of two (2) members selected by the Union and two (2) members selected by the Company. The Committee may establish rules governing their procedure, consistent with the provisions of the Agreement. In reviewing the employee's qualifications, the Committee will consider the employee's work experience with the Company and his record of qualifications filed under Article 6(f) (12), and the employee's ability as indicated by performance standards as agreed upon by the Company and the Union. (c) The Qualifications Committee will meet during regular day shift working hours, unless otherwise mutually agreed to, and members will not suffer loss of pay while performing their duties. A member of the TWA Employee Relations Department and the Union President - General Chairman, or his designated representative, may serve as Co-Chairman to the Committee without vote. (d) The Qualifications Committee will complete its review within five (5) calendar days after receiving the employee's request and will thereupon advise the Company, Union, and employee, in writing, of its decision. (e) If the Qualifications Committee determines that the employee is so qualified, such determination is final and binding upon the Company and the Company is then obligated to place the employee in the job, seniority permitting. If the Committee determines that the employee is not so qualified, such determination is final and binding upon the employee. 36 ARTICLE 6(F)(6) (CONTINUED) (f) In the event the Committee is unable to arrive at a majority decision, a grievance may be filed in accordance with the provisions of Article 11 omitting Step I of the grievance procedure. (7) Whenever an employee moves to another point (either by bid or displacement), he will take all seniority to the new point. Any seniority taken to another point may thereafter be exercised for any openings subsequent to his arrival at that point except as provided in this Agreement. (8) (a) Any employee who has displaced on the system must accept recall to the first job opening in the highest classification for which qualified, and in which he holds seniority, at his displacing point or forfeit seniority in that classification except as provided in Article 6(e)(4). (b) In the event an employee who has displaced on the system is recalled to his former point, he must notify the Company representative designated in the recall notice in writing within one (1) work day after receipt of recall notice of his acceptance of the recall. If an employee fails to notify the designated Company representative in writing within the time limits specified above, he will forfeit all recall rights at his former point. If he accepts recall, he will be required to report to the point from which reduced on the date specified in the recall notice, not less than seventeen (17) days, unless otherwise mutually agreed to. If an employee refuses recall after he has indicated acceptance of a notice of recall, he will lose all seniority and will be removed from all seniority list(s). (c) If an employee files any bids at his displacing location requesting transfer to another location, point, or classification at the point or specialty at the point (excluding bids to another seniority grouping in the specialty at the point) and accepts such transfer, he shall thereupon forfeit recall rights to the location or point from which displaced. (d) An employee who is subsequently displaced and exercises seniority to another point may notify the Company, pursuant to Article 6(e)(4), of his desire to cancel a former recall point and designate the point from which he is displacing as the new recall point. If a displaced employee is furloughed he will be recalled to the point designated above or to the point from which he was furloughed. Refusal of recall to the designated point will not cancel recall to the point from which furloughed. Recall to the point from which he was furloughed will not cancel recall to the designated point. (9) An employee exercising seniority to displace who is found not qualified in his new job will be laid off, provided he is unable to return to the specialty at the point from which reduced, and when so disqualified he shall lose all rights to layoff pay. He shall have recall rights only to the specialty at the point from which originally reduced or laid off. 37 ARTICLE 6(F) (CONTINUED) (10) Ten (10) work days notice or pay therefore, at the Company's option, will be given employees to be reduced before a reduction is made, and a copy of such notice will be furnished the employee and the designated Local Union Representative. Where there is temporarily no work because of an Act of God, circumstances over which the Company has no control, or work stoppage and strikes by employees of the Company, it shall not be considered a normal reduction in force and subject to this provision. (11) (a) Seniority will apply in the restoration of forces of all classifications: the most senior qualified employee holding seniority in the classification who is reduced to a lower classification at the point or laid off at the point or with system recall rights will be recalled in seniority order prior to any employees with lateral recall rights at the point. An employee (Mechanic and higher) at the point displaced from one specialty to another within his classification will retain lateral recall rights to his former specialty providing that at the time of displacement to the new specialty he has submitted written notice to the Company, COPY to the designated Local Union Representative, stating his desire to accept recall to his former specialty. The employee may cancel such recall option by written notification to the Company anytime prior to the date of notice of recall. If the employee refuses recall, he shall forfeit lateral recall rights. Lateral recall rights at the point are canceled if the employee is laid off at the point, leaves the classification at the point or displaces to another point. Employees displaced from one seniority grouping to another, at the point, in the Ramp Service classification shall have the same recall rights provided above. A reduced employee at the point shall have one (1) work day after receipt of the recall notice to notify the Company in writing of his acceptance of the recall. (b) Any employee in a reduced or laid off status at the point must accept recall to the first job opening in the highest classification for which he is qualified at the point from which he was reduced or laid off or he will forfeit seniority in that classification. (c) An employee reduced from a classification shall not continue to accrue service for pay purposes in the higher classification from which reduced, but upon return to the higher classification will be paid not less than the hourly rate applicable for previously accrued service. (d) Employees laid off in a force reduction will accrue all classification seniority, but shall only accrue service credit for pay purposes up to a maximum of thirty (30) calendar days after date of layoff. 38 ARTICLE 6(F) (CONTINUED) (12) (a) It shall be the responsibility of each employee to file with the Employee Relations Department of the Company and with the President - General Chairman of the Union a complete record of his qualifications for use in making proper determination of an employee's ability in the future exercise of seniority, and to keep such record current at all times. (b) Only the record of the employee's work experience with the Company, license(s), completed examinations and his qualification record on file ten (10) days prior to notice of reduction, displacement or recall will be considered. Only such materials on file one (1) day prior to the posting date of a bid will be considered. (c) The Company shall be relieved of all liability in any case where the employee is not selected as successful bidder, is not permitted to displace, or is not recalled because of information not being in his qualification record. (13) The Company will maintain a current, corrected listing of employees, in seniority order, by seniority grouping, in each classification and location, for use of employees exercising seniority under the terms of this Agreement. (14) In the case of demotion due to reduction in force the employee demoted shall continue to accrue seniority in the classification from which demoted if he was unable to exercise seniority in such classification. (15) Employees covered by the Agreements may voluntarily reduce themselves to lower classifications in which they hold seniority, by giving written notification to the Company, the Steward and Local Union Committee. Such voluntary reduction shall be effected after an eight hour break following the work shift that notice to the Company is given and such employees will be allowed full seniority, exercise. (16) Employees who are laid off will be given the opportunity to bid for vacancies in accordance with the provisions of Article 10. (17) In the event a Crew Chief is reduced and is unable to exercise seniority in his classification or if he should forfeit his Crew Chief seniority, he shall return to the basic classification in the seniority grouping where he was serving as Crew Chief. (18) Employees at a point promoted to Inspector, Flight Simulator Technician or Crew Chief Systems Technician who are reduced and are unable to exercise seniority in their respective classification, or voluntarily reduce themselves, shall return to the seniority grouping from which promoted, seniority permitting. 39 ARTICLE 6(F) (CONTINUED) (19) (a) Any employee accepting any position with the Company not covered by TWA-IAMAW Agreements shall retain but shall no longer accrue seniority. (b) In the event an employee returns to a position covered by this Agreement, he shall displace only the least senior employee in the specialty at the location from which promoted, seniority permitting, and assume the shift and days off of the displaced employee. (c) Any employee who has retained seniority in accordance with paragraph (a) and who leaves a position with the Company not covered by the TWA-IAM Agreements, must thereupon exercise his seniority in accordance with paragraph (b) or forfeit his seniority. (d) An employee who has applied for disability retirement benefits under the Retirement Plan for employees covered by this Agreement, and is continuing employment with the Company after being found unable to perform the duties of his classification but able to perform the duties in another classification, will retain and continue to accrue seniority under the Collective Bargaining Agreement in the higher classification(s) during the period of such disability. (20) Flight Simulator Technician seniority will govern in determining successful bidders for Crew Chief Flight Simulator Technician. Mechanic seniority will govern in determining successful bidders for Flight Simulator Technician, Crew Chief Mechanic or Inspector. Inspector seniority will govern in moving into the Crew Chief Inspector classification and when Inspectors are not available, Mechanic seniority shall govern. Other classifications will be governed by the same principle. Basic seniority in the classification will govern in the selection of Crew Chief positions. (21) (a) Classification seniority shall apply in the selection of shift and days off within a seniority grouping. (b) The shift and days off assignment in a seniority grouping shall be established by the Company in accordance with the normal requirements of the service. In preparing shift and days off schedule(s) the Company will determine how many employees are needed on a shift and the determination will be based on the work performed by the seniority grouping. This information will be posted for five (5) days prior to working a bid in order to give an employee the opportunity to update his preference. (c) Upon entering a seniority grouping an employee will exercise his seniority for shift and then days off assignment The Company may delay announcing shift and days off vacancies during the first one hundred twenty (120) days of employment for probationary employees and employees entering a basic classification, in which they do not hold 40 ARTICLE 6(F)(21)(C) (CONTINUED) seniority (Mechanic or below). Such employees may be assigned shift and days off as determined by the Company during this period of time. Thereafter, seniority may be exercised only in case of bumping due to a reduction in force or when an opening occurs. (d) An employee who is notified that his shift and/or days off preference has been accepted shall have one (1) work day after the date so notified to refuse that assignment. Such employee will not be permitted to bid for a different shift and/or days off assignment for six (6) months after such refusal. An employee may withdraw his bid at any time prior to the time the Local Union Representative is notified of an opening. (e) Where shift and/or days off preferences are solicited verbally, employees must confirm their preferences in writing and any employer refusing to accept his preference will not be permitted to bid for a different shift and or days off assignment for six (6) months after such refusal. (f) At locations where seven (7) or more employees are assigned to the day shift, members of the Union's Local Grievance Committee shall be assigned to the day shift with Saturday and Sunday days off, provided this does not require the Company to hire additional personnel at such locations. At locations where employees work rotating shifts, members of the Union's Local Grievance Committee shall have preference of assignment to shifts with Saturday, and Sunday days off. This paragraph shall not apply to Full Time Committeemen referred to in Article 11. (22) The Company will furnish free non-positive air transportation for the employee and dependent members of his family for any transfer from one location to another. (g) Geographical Relocation (1) In the event of the geographical relocation, in whole or in part, of any of the work performed by employees covered by this Agreement, the employees whose work is affected will be advised of the current corrected listing of employees in seniority order by seniority grouping in each classification at the new location and shall be given an opportunity to transfer to the new location at Company expense in accordance with paragraph (2) below, and given full credit for their accumulated seniority at the point to which the work is transferred in whole or in part. It is understood that the increase or expansion of facilities at a particular point that does not involve a reduction in jobs or facilities at another point shall not be construed as a geographical relocation of work in whole or in part. The employees whose work is affected shall be offered the opportunity to transfer in seniority order, with the most senior employee having first choice. 41 ARTICLE 6(G) (CONTINUED) (2) Employees will be allowed either actual moving expenses for household effects up to a maximum of 5,000 pounds gross weight for a single employee and up to a maximum of 10,000 pounds gross weight for an employee with one dependent plus an additional 1,000 pounds gross weight for each additional dependent or a sum of money equal to the existing tariff for moving up to a maximum of 10,000 pounds of household effects between the two points. This reimbursement will be based upon submission of verifiable receipts of expenses incurred when moving their primary residence. If the employee elects to drive his own automobile to the point he shall be reimbursed at a mileage rate equal to the amount allowed by the federal government for federal employees for the most direct AAA mileage between the points from and to which he is being transferred, plus en route expense at the rate of two dollars ($2.00) per hour based upon 400 miles travel per day. An employee who does not drive to his new point will be allowed en route expenses for twenty-four (24) hours at two dollars ($2.00) per hour. Additionally, an employee will be allowed $400 relocation expense. (3) In the event an employee who is reduced because his work is relocated does not elect to transfer to the point of relocation (herein called the new point), he shall be reduced at the point from which the work was relocated (herein called the old point), and shall exercise seniority in accordance with Article 6(e). In such event, employees who are subsequently displaced at the old point by employees reduced shall be offered an opportunity to transfer to the new point or exercise seniority as provided in Article 6(e) at Company expense in accordance with the above. However, the expenses paid shall not exceed those which such employee would have received had he transferred to the new point. (4) In the event an employee elects to accept reduction at the old point, he shall have no further claim under the provisions of Article 6(g). ARTICLE 7 HOURS OF SERVICE (a) Eight (8) consecutive hours, exclusive of a lunch period of not to exceed thirty (30) consecutive minutes, shall constitute a standard day's work. Eight (8) consecutive hours including a thirty (30) consecutive minute lunch period shall constitute a standard day's work for employees assigned to operate boiler rooms, or power houses, and Fire Inspectors, and for employees assigned to shifts which start at 5:00 p.m. or later and before 6:00 a.m. (b) Forty (40) hours, consisting of five (5) eight-hour days, worked within seven (7) consecutive days, midnight Sunday to midnight Sunday, will constitute a standard work week. Each employee will have two (2) consecutive days scheduled as regular days off in each work week, and the only deviation from this practice of two (2) consecutive days off will be where under the local schedule adopted, it is found necessary to rotate scheduled days off and in order to repeat the schedule, deviation 42 ARTICLE 7(B) (CONTINUED) is necessary. At the overhaul base, every reasonable effort will be made in the future to arrange work schedules to allow Saturday and Sunday as regularly scheduled days off. The fixing of a work schedule allowing part of the employees of a facility Sunday of one week and Monday of the following week as regularly scheduled days off will not be deemed a violation of this provision. Five (5) days notice must be given of change in the schedule of shifts or days off. (c) When only one shift is employed at the overhaul base or at a major station, the starting time of the shift will be not earlier than 6:30 a.m. and not later than 8:00 a.m., and all employees will take a lunch period not to exceed thirty (30) consecutive minutes within the limits of the fourth and fifth hour of the shift, subject to paragraphs (f), (g), and (h) below. (d) Where two shifts are employed at the overhaul base or at a major station, the starting time of the first shift will be governed by paragraph (c) above and the second shift will start not earlier than thirty (30) minutes before the close of the first shift, or immediately following the first shift, or in the alternative at 8:00 p.m., and the same allowance for lunch period shall be provided as in the case of only one shift, subject to paragraphs (f), (g), and (h) below. (e) Where three shifts are employed at the overhaul base or at a major station, the starting time of the first shift will be governed by paragraph (c) above, and the second shift will start not earlier than thirty (30) minutes before the close of the first shift, and the third shift will start not earlier than thirty (30) minutes before the close of the second shift, subject to paragraphs (f), (g), and (h) below. (f) At major stations, in addition to the standard shift starting times provided in paragraphs (c), (d), and (e) a maximum of three (3) additional shift starting times within the twenty-four (24) hour period may be established for employees in the combined Mechanic and higher classification and/or for each classification below the Mechanic classification, subject to paragraph (h) below. For the purpose of this provision, major stations shall be considered as John F. Kennedy, LaGuardia, Newark, O'Hare, St. Louis, Philadelphia, Kansas City (MKC/MCI), Boston, Washington National, Los Angeles, and San Francisco. When Mechanics or higher classified employees are assigned to such additional shifts, a minimum of three (3) such employees will be assigned to each such shift. (g) At all line stations other than major stations mentioned in (f) above, one, two, or three shifts may be established to suit the needs of the service. In addition, one, two, or three shifts may be established for the combined Mechanic classification and/or or for each classification below the Mechanic classification. However, when four (4), five (5), or six (6) shifts are required the standard starting times provided in paragraph (c), (d), and (e) shall apply to three (3) of such shifts. (h) Any change in shift starting times in excess of two hours shall result in shift bid bulletins on all jobs affected on a local basis. Working shifts established other than in 43 ARTICLE 7(H) (CONTINUED) accordance with paragraphs (c), (d), and (e) shall be scheduled and posted at the location with copy furnished to Local Union Representative and the President - General Chairman. Any change in starting times of shifts shall be posted at least five (5) calendar days in advance of the change. Deviation from the starting times provided in paragraphs (c), (d), and (e) above may be made at an location when agreed upon by representatives of the Company and the President - General Chairman of the Union. Nothing in this Agreement shall require any change in shift starting time arrangements presently in effect at any location. (i) Working shifts shall be scheduled and posted at each station or facility. The standard shifts will be identified at each station or facility. (j) All employees will be given a ten (10) consecutive minute rest period during the first half of their shift and a ten (10) consecutive minute rest period during the second half of their shift for the purpose of relaxation, smoking, etc. and a five (5) consecutive minute period as a personal cleanup period prior to quitting time. An employee working overtime after his regular shift for an anticipated period of at least two (2) hours will be given a ten (10) consecutive minute rest period prior to beginning his overtime work. An employee working overtime into periods overlapping subsequent shifts will be given the rest periods taken by such shifts. Each of the foregoing periods shall be given without loss of time. (k) Except on his regularly scheduled days off, no employee will be called to work or required to report for work for a work shift of less than eight (8) hours or pay therefor, except (1) where recalled after completing a regular shift of eight (8) hours or more, or (2) to complete a regular shift, the first portion of which was paid for in accordance with Article 8(b). Employees regularly in the service of the Company will be considered as required to report for eight (8) hours work on their scheduled work days unless notified by the Company before the close of the last shift worked, or at least sixteen (16) hours before the start of their regular scheduled shift, whichever period is shorter, that there will temporarily be no work because of an Act of God, circumstances over which the Company has no control, or work stoppages and strikes by employees of the Company. Any employee not notified by the Company and as a result reporting for work when there is temporarily no work because of an Act of God, circumstances over which the Company has no control, or because of work stoppages and strikes by employees of the Company shall receive a minimum of four (4) hours pay at his regular hourly rate. An employee called to work or required to report for work on his regular scheduled day off will be paid a minimum of four (4) hours pay at the applicable rate. (l) Employees who, because of the requirements of the service, are requested to start their lunch period prior to the fourth hour of the shift or complete their lunch period after the fifth hour of their shift will be allowed a thirty (30) consecutive minute lunch period as close to their regular scheduled lunch period as possible and paid for same at straight time rate in addition to their regular straight time shift compensation. Every effort will be made to allow the employees their regularly scheduled lunch period within the limits of the fourth and fifth hours. In the event that the employee 44 ARTICLE 7(L) (CONTINUED) does not receive a lunch period during his regular shift, he will receive compensation for the lunch period at time and one-half provided that the provisions of Article 8(a) do not apply in this event. ARTICLE 8 OVERTIME AND HOLIDAYS (a) Overtime rate of time and one-half, computed on an actual minute adjusted to the nearest tenth of an hour basis with a minimum of one (1) hour overtime, shall be paid for all work performed in excess of eight (8) hours in any one day, for all work performed either in advance of or after regularly scheduled hours, and for the first eight (8) hours worked on one (1) of the two (2) regularly scheduled days off each work week. (b) (1) Overtime rate of double time shall be paid: (a) For all hours in excess of the first eight (8) hours worked on one of the two (2) regularly scheduled days off each work week, (b) For all time worked on the second regularly scheduled day off in a work week if the first regularly scheduled day off has been worked, (c) For all time worked in excess of twelve (12) hours in any twenty-four (24) hour period except when an employee, after bidding, voluntarily changes shifts. (2) There are two conditions which could occur when an employee would not receive an eight (8) hour break without the loss of his regularly scheduled hours, and would be entitled to the double time rate of pay: (a) When an employee involuntarily moves from one regularly assigned shift to another, (b) When an employee works more than sixteen (16) hours in a twenty-four (24) hour period. (3) When either one of these conditions occur, the employee will have the option to report for work as scheduled, provided he notifies appropriate supervision of such election before quitting duty at the termination of his prior overtime assignment or prior shift. Or be relieved from duty until he has at least an eight (8) hour break. If he elects relief from duty, the employee shall be reimbursed at his regular straight time rate of pay for such loss. However, an employee who elects to report for his next regularly assigned shift, foregoing the eight (8) hour break shall be compensated at the double time rate for all hours worked until he is off duty at least eight (8) consecutive hours. Relief from duty under this 45 ARTICLE 8(B)(3) (CONTINUED) paragraph shall not be considered as absorption of overtime under paragraph (f) of this Article. (4) For overtime purposes, the twenty-four (24) hour period shall begin with the starting time of the employee's regularly assigned shift and shall continue for twenty-four (24) consecutive hours thereafter or until the employee has been off duty at least eight (8) consecutive hours (whichever occurs later). An employee can not be required to take an eight (8) hour break under this Article. (See examples of application of this provision in back of this booklet on Page 250.) (c) Work in excess of eight (8) hours in any twenty-four (24) hour period as a result of rotation of shift or vacation relief assignment shall be paid for at straight time rates for the second eight (8) hours or portion thereof worked during such twenty-four (24) hour period, provided that not less than seven and one-half (7-1/2) hours shall have elapsed between the quitting time of the first shift and the starting time of the second shift. (d) (1) Employees covered by this Agreement will observe the following holidays: New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, Christmas Day, Employee's Birthday, and a Floating Holiday (only scheduled workdays). Effective January 1, 2000, employees covered by this agreement will observe two (2) additional floating holidays. All holidays will be observed in the current calendar year in which they fall. If Federal law designates a date other than the calendar date of one of the above listed holidays for observance of the holiday, the date designated by law shall be considered the holiday. Any employee required to work on any of the foregoing holidays shall be compensated at the rate of double time and a half for all hours worked up to eight (8) hours. The twenty-four (24) hour period beginning with the starting time of the employee's regularly assigned shift shall constitute the holiday for purposes of pay under this provision. Any employee required to work on any of the foregoing holidays in excess of eight (8) hours shall be compensated at the rate of triple time. Employees required to work on the above named holidays will be given a minimum of seventy two (72) hours notice. However, if staffing requirements change after this notification, additional employees may be required to work the holiday. 46 ARTICLE 8(D)(1) (CONTINUED) (2) The date of the employee's floating holiday(s) will be established by the employee submitting a written request to his supervisor at least seven (7) days prior to the date the employee desires to designate as his floating holidays. The date will be awarded to the senior employee(s) who requests such date seven (7) days or more in advance of the date in question. At least five (5) days prior to the date requested the Company will post a list of those employees who will observe the holidays. Employees whose names do not appear on the posted list will be permitted to designate a different date in accordance with the above. Except for employees discharged for cause or who quit, all other employees who have not observed their floating holiday(s) by December 31, shall have such holiday carried forward to the following year and it must then be taken as a holiday on a day adjacent to the employee's birthday holiday in the same regularly scheduled work week as that in which the employee's birthday falls. Any employee who resigns with notice or is furloughed prior to observing his carried over floating holiday(s) will be paid for the carried over floating holiday(s). If an employee is unable to schedule his additional Floating Holiday(s), the Floating Holiday(s) will carry over to the following year and the employee will be required to bid the carry over Floating Holiday(s) from open vacation periods, which will be bid no later than February 1. If there are no open vacation periods, the Company will be required to open additional vacation days, sufficient to accommodate all those employees who have carry over Floating Holiday(s). (3) In the event an Employee's Birthday falls on February 29, March 1 shall be observed. If Employee's Birthday falls on another of the holidays specified above, his next following workday shall be considered such other holiday. An employee may elect to take his birthday holiday on any day (within the same calendar year) falling within the same regular scheduled work week as that which his birthday falls. If an employee desires to move his birthday holiday as provided above, he shall provide written notification to his supervisor at least fourteen (14) days prior to the day the employee elects to take as his birthday holiday. For the purpose of determining which regular scheduled work week the employee's birthday falls, Article 8(d)(4) and (5) shall apply. 47 ARTICLE 8(D) (CONTINUED) (4) If any of the above holidays fall on an employee's regularly scheduled first day off, the preceding day shall be considered as the holiday. Should any of the foregoing holidays fall on an employee's second day off, the following day will be considered as the holiday. In accordance with the provisions of 8(d)(1), this provision shall not apply if it results in the holiday being observed in other than the current calendar year. In that case, the holiday will be observed on the first scheduled work day either immediately before or after the employee's regularly scheduled days off in order that the holiday be observed within the current calendar year. (5) If any of the above mentioned holidays fall during the employee's regularly scheduled vacation, the employee may elect, prior to going on vacation, to move his vacation forward, or extend it, by the number of holidays falling during his vacation. If the employee fails to elect as provided herein, then the employee's vacation shall be extended by the number of holidays falling during his vacation except that if the vacation runs to the end of the calendar year, the vacation shall be moved forward by the appropriate number of days. An employee will not be eligible for overtime or to work on a holiday or scheduled days off that falls in or in conjunction with his vacation. The vacation will commence when he punches out on his last scheduled work day and will continue until the employee punches in on his first scheduled work day following his vacation. (e) (1) The Company will make every effort to avoid requiring employees to work on a holiday to the extent that such holiday observance does not interfere with the required service. Employees not required to work on above mentioned holidays will be compensated for the day at eight (8) hours at straight time rate. An employee scheduled and required to work on a holiday who does not report for work shall not receive any pay for that day unless such absence is for reason(s) beyond the employee's control. (2) With the exception of the birthday holiday or a floating holiday which has been carried forward from the preceding year, as provided in Article 8(d)(2), the Company will, unless there is a local agreement to the contrary, offer the holiday off in seniority order. To the extent that the Company may allow more employees off than the number requesting such holidays, the Company will assign the holiday off in the inverse order of seniority. (f) Overtime shall be distributed as equally as possible among all qualified employees at the location or in the department where overtime is required, and employees will not be required to suspend work during regular working hours to absorb overtime. (g) (1) Except in an emergency, an employee will not be required to work overtime against his wishes. In the administration of this paragraph management will make a good faith effort to secure voluntary overtime before declaring an emergency. (2) Whenever an emergency is declared, the Local Union Representative and the President - General Chairman, District 142 will, within a reasonable period of 48 ARTICLE 8(G)(2) (CONTINUED) time be furnished with a statement regarding the date, time, and nature of circumstances giving rise to the declaration. (h) When an employee covered by this Agreement has been relieved for the day and is recalled to work, he will be paid not less than three (3) hours at the overtime rate applicable for each call. (i) For continuous service before or after regular working hours no employee will be required to work more than two (2) hours without being permitted to go to meals, and all employees will be allowed a thirty (30) minute period in which to eat without loss of time. (j) No overtime shall be worked except by direction of the proper supervisory personnel of the Company, except in cases of emergency where prior authority cannot be obtained. (k) There shall be no pyramiding of the overtime rates provided for in this Agreement, and no employee shall receive more than double the straight time rate for any hours worked, except as provided in paragraph (d) of this Article. (l) Employees shall be given four (4) hours notice of contemplated overtime work, except (1) in cases of emergency, and (2) at line stations where interruptions in flight schedules make a four (4) hours notice impossible. (m) Employees covered by this Agreement will not be bypassed for overtime assignments because of overtime rates of pay. ARTICLE 9 FIELD SERVICE (a) Employees covered by this Agreement engaging in emergency field service away from their base station to restore airplanes or equipment to service shall be paid for such work on the same basis as paid at their base station, with a minimum of eight (8) hours at straight time rate, including any premiums to which they are regularly entitled, for each twenty-four (24) hour period away from the base station. (b) All time spent in traveling or waiting in connection with emergency field service as defined in paragraph (a) above, including hours in excess of eight (8) hours in one day, will be paid for at straight time rate, if during the current twenty-four (24) hour period no work is required before or after traveling, and it is not an employee's regular day off or a holiday. (c) All time spent in travel, waiting, or working at Company direction on scheduled days off, holidays, and in excess of eight (8) hours on scheduled work days when work is required, will be paid for at the overtime rate applicable. However, if travel is interrupted for any reason and employees are released by written order through an 49 ARTICLE 9(C) (CONTINUED) agent of the Company for five (5) consecutive hours or more, they shall not be paid for the time released, but in no event shall any employee receive less than eight (8) hours pay at straight time rate for any twenty-four (24) hour period while away from his base station on emergency field service. (d) Upon completion of emergency field service, employees shall return to their home station in accordance with the orders received at the time they left their home station, or in accordance with the orders they received from the person to whom they are ordered to report in the field, and shall be compensated for the return trip in accordance with the provisions of paragraphs (b) and (c) above. (e) Employees called from home for field service after completing their regular shift assignment, or on a regular day off, will be allowed one (1) hour as preparatory time in advance of scheduled departure time at the overtime rate. In all possible cases they will be notified at least two (2) hours before departure time. (f) An employee away from his home station on emergency field service. or on a special assignment to attend training classes pertaining to his work, shall receive the following expenses: (1) For emergency field service, effective August 1, 1999, two dollars ($2.00) per hour for each hour or fraction thereof while away from his base station, it being understood that such expenses begin at block-out time at his home station and end at block-in time back at his home station. For special assignments or to attend training classes pertaining to his work, effective August 1, 1999, one dollar and sixty cents ($1.60) per hour will be paid. Additionally, in the event an employee is delayed in leaving his base station, in excess of three (3) hours, he shall receive reimbursement for reasonable actual expenses for meals during the period of such delay. (2) Actual expenses for suitable lodging at a Company designated or approved hotel. (3) In addition to the expenses provided for under subparagraphs (1) and (2) of this paragraph, the Company may allow additional expenses covering any extraordinary conditions. Upon application, an employee will be given an advance by the Company to cover his expenses while away from his base station. Expense reports shall be submitted by the employee not later than five (5) days after the last day of the period covered. Reports covering actual expenses shall be submitted for half-month periods as follows: 1st to 15th inclusive: 16th to last date of the month inclusive. (f) When an employee covered by this Agreement receives a special assignment to attend training classes pertaining to his work, or to fulfill other special assignments not constituting emergency field service, he shall receive compensation not to exceed 50 ARTICLE 9(G) (CONTINUED) eight (8) hours per day for the time spent in traveling or waiting, at the employee's straight time rate. If such special assignment involves traveling after completion of his regular work for the day, he shall receive the applicable overtime rate for the first succeeding eight (8) hours of traveling and waiting. ARTICLE 10 VACANCIES AND BIDDING (JOBS COVERED BY THIS AGREEMENT) (a) (1) A Vacancy shall be any opening (permanent or temporary in nature) which cannot be filled through an application of seniority provisions of this Agreement providing for the restoration of forces. (2) Any vacancy not filled within sixty (60) days from the date the Local Union Representatives are notified of the vacancy will be canceled and may be reannounced. (3) Whenever a new classification(s) is established at a point, excluding all Crew Chiefs and classifications above Mechanic, such vacancies will be bulletin bid system wide, and the successful bidder will be allowed either actual moving expenses for household effects up to a maximum of 3,000 pounds gross weight for a single employee and up to a maximum of 8,000 pounds gross weight for an employee with one dependent, plus an additional 500 pounds gross weight for each additional dependent or a sum of money equal to the existing tariff for moving 5,500 pounds of household effects between the two points, plus $300.00 relocation expense. (4) Prior to filling a vacancy, the Local Grievance Committee or a designated representative of the Union will be notified whenever any vacancy(s) is announced by the Company. The Union will be notified of the number of vacancies, point, location, classification, seniority grouping, and reporting date. (5) Provided that qualified employees with preference bids on file are available, vacancies will be filled in seniority order from among employees having bids on file the day preceding the date the Local Union Representatives are notified of the vacancy(s). (6) Bid forms shall be furnished by the Company and supplied by an employee's immediate supervisor upon request. (7) An employee who desires to transfer at his point and/or another point in a classification in which he holds seniority may submit a preference bid. In filling vacancies, preference bids of employees at the point where the vacancy exists shall be given preference over employees at other points. 51 ARTICLE 10(A) (CONTINUED) (8) An employee who desires to bid for vacancies in the Mechanic classification or lower (who does not hold seniority in the classification into which he desires to transfer) may submit a Company seniority bid. In filling vacancies, Company seniority bids of employees at the point will be given preference over Company seniority bids of employees at other points. Such bids are to be handled in the same manner as set forth in Article 10(b)(1) and Article 10(b)(2). (9) Vacancies in Crew Chief classifications, Receiving Inspector, and in the classifications above Mechanic, which are not filled locally by point preference bid, will be bulletined only at the point where the vacancy exists, and if not filled locally seven (7) calendar days after the bulletin is posted, the vacancy will then be filled from preference bids of employees from other points on the system. If the vacancy still exists, it will then be bulletined at all points where employees covered by this Agreement are located. (10) Whenever and wherever a vacancy exists in the Mechanic classification or lower, excluding Crew Chief positions and Receiving Inspector vacancies not filled by employees holding seniority in that classification, Company seniority shall govern and such vacancy will be filled by the most senior qualified employee bidding from another classification covered by the Agreements. In filling vacancies in the Stores and Ramp Serviceman classifications, employees who have successfully completed the applicable examination will be considered as qualified in connection with bids. The Company shall not institute any testing procedures in connection with promotions or seniority exercise without the participation and concurrence of the Union. (11) In the event a vacancy in the classifications covered by this Agreement exists at any location on the Company's system, and no qualified employee bids, the Company may select to fill such position any qualified employee at any location willing to accept transfer at the Company's expense, or hire a qualified new employee to fill such vacancy. When the Company transfers or hires employees under this paragraph, the Company will notify the Local Union Representative of the names of the employees, seniority date, reporting date, and the number of remaining openings. An employee hired as or promoted to a Crew Chief pursuant to this provision will accrue concurrently seniority in the basic classification and that employee will exercise that basic classification seniority in accordance with the applicable provisions of this Agreement subject to Article 6(b)(2) and Article 10(b)(16). (b) Bidding A current bidding information document to be maintained by the Company and made available to employees upon request. (1) Preference bids will be submitted in three (3) written copies, specifying the classification, point, location and seniority grouping to which transfer is desired. One (1) copy to be mailed, via U. S. Mail to: TWA-IAM BIDDING SECTION, 52 ARTICLE 10(B)(1) (CONTINUED) KANSAS CITY INTERNATIONAL AIRPORT, P. O. BOX 20126, KANSAS CITY, MISSOURI 64195 and one (1) copy furnished to the Local Grievance Committee or designated representative of the Union; and one (1) copy to be retained by the bidding employee. (2) Preference bids may be canceled by the employee at any time prior to announcement of the employee as a successful bidder and shall automatically expire on January 1 of each year. Employees desiring to submit bids effective on January 1 may not submit such bids earlier than thirty (30) days prior to this date and must specify the January 1 effective date. Cancellation of bids must be made in writing with three (3) copies distributed in the same manner as set forth for submission of bids. (3) (a) Employees laid off may file system preference bids to fill vacancies at any point on the system. In the event a laid-off employee is successful bidder, the Company shall notify him only at the last address filed with the Company, and he must report on the date specified (not less than seventeen (17) days), unless otherwise mutually agreed to. Any laid-off employee named successful bidder for a vacancy at another point who refuses to accept the job will be considered only for recall at the point at which he was laid-off. (b) Employees laid off may also file Company seniority bids to any classification where qualified in the same manner as set forth in Article 10(a)(8). Laid off employees submitting and accepting these bids will not lose seniority rights in any higher classification in which they hold seniority. However, should the bid be awarded and accepted to a position at a point other than that from which laid off, the employee will lose recall rights at the point from which laid off. (c) A successful bidder who is laid off must inform the Company in writing or by telegram of his acceptance of the bid within seven (7) calendar days after the date of the bid award notification. (4) Vacancies created by employees entering the Armed Forces when bulletined for bid must make mention that the vacancy is created by an employee entering the Armed Forces to assure that the successful bidder is fully aware of the conditions existing at the time of his transfer. It is understood that the employee returning from the Military Services shall be entitled to full point seniority exercise and the employee eventually displaced will be the least senior employee at the point. (5) All bulletined bids will contain a general description of the work performed by the seniority grouping, the date vacancy is announced by the Company, posting date, reporting date, number of vacancies, classification, seniority grouping, point, location, and the final date after which bids will not be considered. The closing date for a bid bulletin will be seven (7) calendar days from date of posting and all bids in response thereto must be postmarked no later than that closing date. 53 ARTICLE 10(B) (CONTINUED) (6) An employee bidding for more than one vacancy shall indicate his order of preference, such order of preference will be honored if he is senior bidder for more than one vacancy announced on the same date and he will be selected for the classification ranked highest in his preferences. Having been named successful bidder for one of his preferences, an employee's bid(s) for the same classification and for other lower classification preferences will be canceled. (7) Employees covered by this Agreement desiring to bid down to classifications in which they hold seniority may do so by preference bid. Such bids will be filled in order of seniority in the classification in which the employee wishes to transfer. (8) Employees who voluntarily bid down and accept positions in lower classifications shall forfeit seniority in accordance with Article 6(d)(4). (9) Any employee named as a successful bidder for a vacancy and refusing to accept the job will not be permitted to bid for another vacancy in the same classification for a period of one (1) year from the date of refusal. Upon receipt of notice that an employee is a successful bidder he shall notify his supervisor in writing no later than his third work day of a refusal of a bid. The supervisor will advise the TWA/IAM Bidding Section by the most expeditious means. If the employee has failed to refuse the bid as provided above, the employee must accept the bid or lose all seniority and have his name removed from all seniority lists. (10) An employee who accepts a bid to another point on the system will not be permitted to bid to a former point and classification for a period of one (1) year from the reporting date of the bid. (11) A successful bidder will not be permitted to bid for a vacancy, in the same classification for which he was named successful bidder, at the point, for a period of six (6) months after the reporting date of the bid, or twelve (12) months if the vacancy is in a different specialty within the same classification. (12) Excluding Crew Chiefs classifications, employees bidding laterally within their specialty will be considered as qualified in connection with bids. (13) Employees who have passed the applicable Mechanic Examination(s) as provided in Article 5 will be considered as qualified in connection with bids. (14) Excluding employees in a basic classification bidding laterally within their specialty, it is understood that the provisions for meeting performance standards are retained as to employees who achieved the Master Mechanic rating prior to July 1, 1955 and in selecting successful bidders the Company will take into consideration the employee's work experience with the Company, the qualification record filed by the employee, and the applicable performance standards as agreed upon by the Company and the Union. 54 ARTICLE 10(B) (CONTINUED) (15) After an employee has been chosen to fill a vacancy, the Company shall mail to the President - General Chairman and all shops and locations a notice to be posted on the bulletin boards showing the name, number of vacancies, point, location, and seniority, date of the employees selected to fill the vacancies. If the vacancy is filled by preference bid, such notice shall be mailed within seven (7) calendar days after the Union Representative was notified of the vacancy, and will specify the date the employee is expected to report. If the vacancy is filled by bid for a bulletined vacancy, such notice shall be mailed within ten (10) calendar days after the close of the bulletin. (16) Excluding employees in a basic classification bidding laterally within their specialty a successful bidder shall hold the job for a fair and reasonable period of time, not to exceed ninety (90) days (180 days for employees not holding seniority in the Mechanic classification) on a trial basis in order to demonstrate his ability to perform the work required. In case the job is found to be not as represented, the employee will, seniority permitting, return at Company expense to his former location and seniority grouping. If an employee is promoted to a higher classification during a trial period(s), the trial period(s) in the lower classification(s) will not be interrupted and the balance of such trail period(s) will continue to run concurrently with the trial period in the higher classification. Employees reduced during a trial period shall complete the balance remaining upon returning to such classification. During such trial period, if the employee is unable to demonstrate ability to perform the work required by the job, he will be privileged to exercise his seniority at his previous location by displacing only the employee with the least seniority in his seniority grouping and assume the shift and days off of the displaced employee, and for a period of six (6) months thereafter his bid for a vacancy in the same classification for which he was unable to demonstrate ability will not be considered. Thereafter, an employee who wishes to submit a bid for the same specialty must submit an updated Qualification Sheet indicating additional training or work experience since his disqualification which will qualify him to submit a new bid. If the employee elects to return to his previous job during such trial period, he may do so, provided such job is in a lower classification than the job for which he bid, and he will be privileged to exercise his seniority at his previous location by displacing only the employee with the least seniority in his seniority grouping and assume the shift and days off of the displaced employee, and for a period of six (6) months thereafter his bid for a vacancy in the classification from which he returned will not be considered. (17) If the successful bidder for a vacancy is located at some point other than the point where the vacancy is to be filled, the Company will furnish free non-positive air transportation for the employee and for the dependent members of 55 ARTICLE 10(B)(17) (CONTINUED) his immediate family, from the location from which he is transferring to the location of the job. (18) The seniority date and the effective date of wage rate of the successful bidder, including employees promoted, shall be the reporting date set forth in the bid notice received by the Local Union Representative at the time the vacancy, was announced. Regardless of the reporting date of the successful bidder, no employee will be required to transfer to another point on the system with less than seventeen (17) days written notice. The seniority date of newly hired employees shall be one (1) calendar day after the reporting date specified in the bid notice or the date they first report to work, whichever is later. An employee entering a higher classification will start at the minimum pay rate of the higher classification or the pay rate he then held in his former classification, whichever is higher. He will remain at such rate until the date of his next automatic (19) (a) The Company will notify an employee, in writing, in the event he is not selected as successful bidder because the Company has determined he is unable to perform the required work of the job in a satisfactory manner. Such employee may submit in writing his request for review of his qualifications to: EMPLOYEE RELATIONS DEPARTMENT, TWA, KANSAS CITY INTERNATIONAL AIRPORT, P. O. BOX 20126, KANSAS CITY, MISSOURI 64195, not later than two (2) work days after written notification is received. (b) Such review shall be made by a Qualification Committee of four (4) consisting of two (2) members selected by the Union and two (2) members selected by the Company. The Committee may establish rules governing its procedure, consistent with the provisions of the Agreement. In reviewing the employee's qualifications, the Committee will consider the employee's work experience with the Company and his record of qualifications filed under Article 6(f)(12), and the employees' ability as indicated by performance standards as agreed upon by, the Company and the Union. (c) The Qualifications Committee will meet during regular day shift working hours, unless otherwise mutually agreed to, and members will not suffer loss of pay while performing their duties. A member of the TWA EMPLOYEE RELATIONS DEPARTMENT and the Union President - General Chairman, or his designated representative, may serve as Co-Chairman to the Committee without vote. (d) The Qualifications Committee will complete its review within five (5) calendar days after receiving the employee's request and will thereupon advise the Company, Union, and employee, in writing, the reason of its decision. 56 ARTICLE 10(B)(19) (CONTINUED (e) If the Qualifications Committee determines that the employee is so qualified, such determination is final and binding upon the company and the Company is then obligated to place the employee in the job, seniority permitting. If the Committee determines that the employee is not qualified such determination is final and binding upon the employee. (f) In the event the Committee is unable to arrive at a majority decision, a grievance may be filed in accordance with the provisions of Article 11 omitting Step I of the grievance procedure. (g) Where there is an adjustment of any grievance involving the rights of an employee who may have been transferred to fill a vacancy for which another employee is subsequently determined to be qualified, after the Company had previously determined he was not qualified, such adjustment will include appropriate adjustment for expenses incurred. (h) Nothing in this Agreement will prevent the Company from delaying the actual transfer of an employee to fill a vacancy if another employee has protested to the Qualifications Committee the Company's determination that he was unqualified. Such transfer may be delayed until the protest of the other employee is finally determined in accordance with this Agreement. (20) No employee will be compelled to accept a permanent transfer against his wishes. (c) Temporary Crew Chief Assignments A vacancy in Crew Chief classification of less than thirty (30) days duration will be considered temporary in nature and such vacancies will be filled from employees in respective seniority groupings at work as follows: (1) Where license(s) and an examination are required for a Crew Chief job in the seniority grouping, the Temporary Crew Chief selection will be made as follows: (a) Senior reduced Crew Chief in the seniority grouping at work. (b) Senior qualified employee in the seniority grouping at work who possesses applicable license(s) and examination. (c) Senior qualified employee in the seniority grouping at work who possesses applicable license(s). (d) Senior qualified employee in the seniority grouping at work who possesses applicable examination. (e) Senior qualified employee in the seniority grouping at work. 57 ARTICLE 10(C) (CONTINUED) (2) Where only an examination is required for a Crew Chief job in the seniority grouping, the Temporary Crew Chief selection will be made as follows: (a) Senior reduced Crew Chief in the seniority grouping at work. (b) Senior qualified employee in the seniority grouping at work who possesses applicable examination. (c) Senior qualified employee in the seniority grouping at work. (3) Where no license(s) or examination is required for a Crew Chief job in the seniority grouping, the Temporary Crew Chief selection will be made as follows: AT OTHER THAN MAJOR STATIONS LISTED IN ARTICLE 7(f): (a) The senior reduced Crew Chief in the seniority grouping at work. (b) The senior qualified employee in the seniority grouping at work. AT MAJOR STATIONS LISTED IN ARTICLE 7(f): (c) The senior reduced Crew Chief in the seniority grouping at work, provided that if the estimated duration of the Temporary Crew Chief assignment does not exceed one full work shift the Temporary Crew Chief shall be selected from among the employees in the work area (i.e., Hangar, Hangar/Line, Terminal/Ramp, Commissary, or Air Freight) in which the Crew Chief is required. (d) The senior qualified employee in the seniority grouping at work, provided that if the estimated duration of the Temporary Crew Chief assignment does not exceed one full work shift the Temporary Crew Chief shall be selected from among the employees in the work area (i.e., Hangar, Hangar/Line, Terminal/Ramp, Commissary, or Air Freight) in which the Crew Chief is required. (4) No employee will be compelled to accept a Temporary Crew Chief Assignment against his wishes. (d) In the event it becomes necessary to temporarily assign employees to another seniority grouping because of unusual and/or unanticipated circumstances resulting from work load changes or for the purpose of performing a special work function, such assignment will not be made arbitrarily or without good reason. When the Company has determined the work to be performed, the number of employees affected and the estimated duration of such assignment, the method of effecting the assignments in an expeditious, efficient and fair manner will be discussed and resolved with the appropriate Union Representative. 58 ARTICLE 10 (CONTINUED) (e) It is the recognized policy of the Company to promote its own employees to supervisory positions insofar as possible, and only when competent employees cannot be found in the ranks, or when competent employees will not accept vacancies or new positions, will the Company vary from this policy. ARTICLE 11 GRIEVANCE PROCEDURE (a) Representation The representation of presentation and adjustment of disputes or grievances that may arise under this Agreement shall be: The Union will be represented by properly designated stewards, one in each department or section thereof, for each shift at each point on the system. In addition, the Union will be represented by full-time committees at those points listed in (b) below, one of whom shall be designated as chairman. In addition, the Union will be represented by a local committee consisting of not more than three (3) members at EWR, IND, LAS and PHX: of not more than two (2) members at ABQ, CMH, CVG, DAY, DCA DEN, IAD and PHL and one (1) member at all other points. One (1) member of the local committee shall be designated as Local Chairman. Where a metropolitan area with more than one location is involved, there may be separate stewards and separate committees. (b) Full-Time Committees Line Stations and Overhaul Base Committeemen Committeemen ------------------------------- ------------ ------------ (Including (Alternates) Chairman) Kansas City Overhaul Base/Line 7 3 JFK and LGA 6 3 Chicago 1 1 SFO 2 1 LAX 4 1 STL 5 1 BOS 1 1 Such committeemen shall be the sole committee members under the terms of Article 11(a)(1), unless during the term of the current agreement the parties otherwise mutually agree. Full-time committeemen will be paid by the Company for a maximum of forty (40) hours per week at their hourly rate of pay including the afternoon shift premium. The Union will notify the Company of the individuals who will serve in these positions and the designated area of representation for each committeeman. Normally each 59 ARTICLE 11(B) (CONTINUED) local committeeman will participate in handling complaints, disputes and grievances in his designated area. The Committee may represent the Union on any complaints, disputes or grievances below Step 3 level. Full-time committeemen will be assigned to various shifts where needed using a basic forty (40) hour work week which shall be determined by the Local Committee Chairman, IAMAW, who in turn will advise the Regional Manager Employee Relations or his/her designee in writing of each committeeman's work assignment. Committeemen will normally check 'in' and 'out' when arriving and/or leaving Company premises. Committeemen will submit time cards in accordance with existing time card procedure. Each committeeman will represent the Union in handling Step 2 grievances, complaints and disputes with the ranking Company official at the point. In order to facilitate the conduct of union-management business in an orderly and businesslike manner, it is agreed: (1) The Company will provide the full-time committeemen with space for a single office with an intra-base telephone in an acceptable area. (2) Stewards and committeemen will be empowered to settle all local grievances or disputes not involving changes in policy or the intent and purposes of this Agreement. (3) Full-time committeemen may leave the premises during their working hours without loss of pay for the purpose of conducting union-management business with the President - General Chairman and/or General Chairmen of District Lodge 142. When leaving the premises for these purposes, the President - General Chairman and/or General Chairmen shall advise local management. (4) The Company and the Union will make every effort to keep to a minimum the actual time spent in disposing of grievances, disputes or complaints. (5) All committeemen will be eligible for overtime in their respective departments. While working overtime, committeemen will not function as Union representatives. If a committeeman does not desire to work overtime, he will request his name be removed from the overtime list. (6) All committeemen will be allowed free access and availability to all work areas and shops within their respective areas of representation in order to conduct their business in a proper, efficient and expedient manner. In so doing, they will contact appropriate management personnel. (7) The Union will be further represented by a President - General Chairman and/or his designated representative(s) for dealing with regional or general officials of the Company. 60 ARTICLE 11(B) (CONTINUED) (8) The Company will be represented at each seniority point by an authorized official who will be empowered to settle local grievances or disputes, but such settlement may not-involve any change in the intent and purpose of the Agreement. The Company will be further represented on a regional and system basis for dealing with the Union President - General Chairman or his authorized representative. (9) The Union and the Company will, at all times, keep the other party advised, through written notice, of any change in authorized representatives. (10) The President - General Chairman and/or his designated representative(s) and a reasonable number of Grand Lodge Representatives of the Union shall be permitted at any time to enter the facilities of the Company for the purpose of representing employees covered by this Agreement, after notifying the Company official in charge. (11) It is agreed that the Union and the Company will make every effort to keep to a minimum the actual time spent in disposing of grievances, disputes or complaints. When stewards and committeemen are required to leave their work for the purpose of investigating, processing, presenting, and adjusting grievances or to attend meetings as provided for in this Article, they will first notify their immediate supervisor or his designee, if available, before leaving their work and will again report to him upon their return. In the event it is necessary to go to another area, they will report in with the foreman or supervisor in that area. It is recognized that stewards and committeemen are not required to obtain permission from their supervisors before leaving work in order to attend to Union business, they are merely required to notify their supervisor, who, upon being notified, must inform the steward or committeeman of the specific contingency which makes his departure at the time stated impractical, if such should be the case. The steward or committeeman and the supervisor are then under an obligation to seek a satisfactory time for such business that will not frustrate the needs of the service. (c) Procedure The procedure for presentation and adjustment of disputes, complaints, or grievances that may arise between the Company and the Union with reference to interpretation or application of any provisions of this Agreement shall be: STEP I (1) Any employee having a complaint or grievance in connection with the terms of employment, application of this Agreement, or working conditions, will with the 61 ARTICLE 11(C)(1) (CONTINUED) steward, discuss the matter with his immediate supervisor. If unable to secure satisfactory adjustment in this manner, the employee may present his complaint or grievance in writing to the department steward, who in turn will, if in his opinion the complaint is justified, present the written grievance to the Company's designated representative at the particular point or in the department. Subject to operational requirements and the time remaining on a particular shift, a hearing shall be convened on that shift for the purpose of rendering a decision in the matter. In no event shall the hearing be postponed beyond the next regular shift of the grieving employee. A decision in writing shall be rendered not later than three (3) work days following such hearing. STEP 2 (2) If the decision in Step I is not satisfactory, the Grievance Committee may refer the matter to the appropriate chief operating official for the point or his designated representative. The appeal must be made in writing within five (5) work days after the Step I decision, and the actual appeal must be presented at a hearing within seven (7) work days from the date of appeal to Step 2. A written decision will be rendered by the Company within four (4) work days after adjournment of the hearing. At points on the system where a Grievance Committee is not established by the IAMAW (District 142) appeal may be made by the President - General Chairman to Step 3, and the time limits for Step 3 appeals shall apply. STEP 3 (3) If the decision in Step 2 is not satisfactory, the Union's President - General Chairman or his designee may refer the matter to the Company's Vice President - Labor Relations. The notice of intent to appeal the matter to Step 3 must be made in writing within thirty (30) work days after the Step 2 decision. Within thirty (30) days after the Step 3 appeal date, the Vice President Labor Relations or his designee will meet with the Union's President General Chairman or his designee and endeavor to reach a settlement of the issues involved in the matter appealed. If unable to resolve the issues the Company shall issue a decision setting forth it's position on the issues. A written decision shall be issued no later than five (5) work days following the meeting. (4) If the decision in Step 3 is not satisfactory to the Union, the matter may be referred by the Union's President - General Chairman to the System Board of Adjustment. (5) Grievances relating to matters general in character, which cannot be settled by an immediate supervisor or local Union representative shall be discussed by the appropriate Corporate Vice President of the Company and the Union's President - General Chairman. If such grievances are submitted in writing by either of them. If a satisfactory settlement is not reached within ten (10) work days after 62 ARTICLE 11(C)(5) (CONTINUED) the grievance is submitted such matters may be referred, within five (5) work days after the expiration of said ten (10) day period, to the President of the Company or his designated representative if submitted by the Union, or to the International President of the Union or his designated representative, if submitted by the Company. (6) Individual grievances must be filed promptly after the cause giving rise to the grievance is evident, and no individual grievance will be valid if not filed within thirty (30) days of the date the employee knew or could reasonably be expected to have known of the grievance. Grievances filed under paragraph (5) above which involve wage claims must be filed promptly after the cause giving rise to the grievance is evident and such wage claims will not be collectible for a period earlier than thirty (30) days prior to the date of the filing of the grievance or the date the grievance arose, whichever is more recent. (7) Disciplinary Time Off No employee who has been in the service of the Company one hundred twenty (120) days or more shall be assessed a disciplinary layoff until he has been given the opportunity to discuss with a Union representative the circumstances involved and to attend an investigation meeting with a representative of the Union, conducted by the charging supervisor, and presented with a written statement copy to his Union representative of the precise charges and the penalty imposed. The employee and his authorized representative will be advised of the purpose of this investigation before it is convened (see letter on Page 148). In the event the Company determines that a decision resulting from such investigation meeting will not be rendered for several days, then the appropriate union representative will be advised of the progress of such investigation and the anticipated date for rendering a decision. Discharge No Mechanic who has been in the service of the Company one hundred and eighty (180) days or more as a Mechanic. and no other employee who has been in the service of the Company one hundred twenty (120) days or more, shall be discharged without a fair hearing (No hearing will be conducted without the presence of duly authorized Union representative, i.e., committeemen designated by the Union.) before a designated representative of the Company, other than the one bringing the complaint against the employee. If an employee is suspended, pursuant to Article 11(d)(4), the Company will advise the employee and/or his duty authorized Union representative in writing of the precise charge or charges preferred against him not later than one (1) work day from the time of the suspension. 63 ARTICLE 11(C)(7) (CONTINUED) A discharge hearing will be held not later than five (5) days after the employee and the Union are notified of the precise charges and a written decision will be issued within three (3) work days after the close of the hearing. Prior to the hearing, the employee and his duly authorized representative will be given a reasonable opportunity to secure the presence of necessary witnesses. If the decision is not satisfactory then appeal may be made in accordance with the procedure prescribed in Step 3. If the above mentioned provisions are not adhered to, the employee and his duly authorized Union representatives shall be notified in writing advising him of his reinstatement in accordance with Article 11(c)(8) of this Agreement. The notification of the decision of the discharge hearing is to be mailed and postmarked not later than three (3) work days after the close of the hearing. (8) If it is found that an employee has been unjustly suspended or dismissed from the service, such employee will be reinstated with his seniority rights unimpaired, compensated for all wage loss, and his service record cleared. (9) The Company will not discriminate against any witnesses called to testify in any hearing or investigation under this Agreement, and if any employee witness is located at some point other than the point of hearing, employee witnesses and Union committeemen will be furnished necessary free non- positive transportation over Company lines. (10) Except as specifically provided in this Article, all hearings, meetings and investigations will be conducted during regular day shift working hours insofar as possible. Union representatives and necessary employee witnesses shall not suffer loss of pay while engaging in the provisions of this Article. If grievance hearings or investigations are held during other than regular day shift working hours, at the Company's written request, or if a Union representative spends in excess of eight (8) hours per day attending such hearings, at the Company's written request, such Union representative shall be paid at his regular straight time rate for time so spent. (d) General (1) It is understood that either or both the Union President - General Chairman or his authorized representative and the Vice President - Labor Relations or his authorized representative may intervene and participate in the handling of a grievance or dispute at any level of the grievance procedure. (2) Probationary employees (mechanics with less than one hundred eighty (180) days service as a mechanic and other employees with less than one hundred twenty (120) days service) covered by this Agreement shall not have recourse to 64 ARTICLE 11(D)(2) (CONTINUED) the grievance procedure in the event of discharge within the probationary period. (3) For the purpose of computing work days in connection with provisions of this Article, only the calendar days Monday through Friday each week shall be counted. (4) In meetings for the purpose of investigation of any matter which may eventuate in the application of discipline or dismissal, an employee will be entitled to Union representation, if he so desires. Regardless of any other provisions of this Article, an employee will not be suspended from the service of the Company, pending a hearing, unless the Company determines that its employees, property, or operation is seriously jeopardized. The Union recognizes the right of the Company supervisors to manage and supervise its work force of employees, individually or collectively in the normal course of work. (5) The Union's decision to withdraw grievances, not to process or appeal a grievance to the next step shall not in any way prejudice its position on the issues involved. (6) In assessing discipline the Company will consider the gravity of the offense, seniority and the work record of the employee involved. (7) An employee may elect to have legal counsel present only at the System Board of Adjustment, and only after he has signed a Union representation waiver. ARTICLE 12 SYSTEM BOARD OF ADJUSTMENT (a) In compliance with Section 204. Title II, of the Railway Labor Act, as amended, there is hereby established a System Board of Adjustment for the purpose of adjusting and deciding disputes or grievances which may arise under the terms of this Agreement and which are properly submitted to it after exhausting the procedures for settling disputes, as set forth under Article 11. (b) The System Board of Adjustment shall consist of three (3) members; one (1) appointed by the Company, one (1) appointed by the Union and one (1) selected by the parties from a standing panel of six (6) Referees. Each of the parties shall name three (3) individuals who shall serve on this panel. In addition, an Alternate panel of four (4) Referees shall be established by each of the parties hereto naming two (2) individuals. 65 ARTICLE 12(B) (CONTINUED) (1) Either party may cause the services of a Referee on the six (6) member standing panel to be terminated at anytime, (except as to cases already scheduled for hearing) after thirty (30) days written notice to the other party and to the Referee whose services are being terminated by naming a replacement who must be one of the Alternate panel members appointed to said panel by the party making change. Each party is limited to two (2) such replacements in accordance with the above. Thereafter, thirty (30) days prior to the expiration date of the Agreements the parties must name members to the six (6) member standing panel and the four (4) member Alternate panel as provided in paragraph (b) above. (2) In the event a vacancy or vacancies on the six (6) member panel of Referees exists, prior to the expiration date of the Agreements, both parties shall within ten (10) working days agree upon replacement panel member(s). Should the Company and the Union be unable to agree upon said replacement member(s) they shall make joint request to the National Mediation Board to name interim Referee(s). (3) The foregoing notwithstanding, the parties may agree to select a Referee who is not a member of the six (6) member panel to hear a case with the Company and the Union Board members and such panel will, for such case, constitute the System Board of Adjustment. Such 'Ad Hoc' arbitrator will be selected from a list of seven (7) arbitrators submitted, in alternate turns from case to case by one party to the other, the party receiving the list taking the first turn at striking a name from the list. The remaining name on the list shall be the Referee for the case, however, if he is unable to serve in timely fashion, then the parties will make joint request to the National Mediation Board to name a Referee. Unless the Company and the Union agree upon a combination of cases to be presented to a Referee, each case presented to the Board shall be treated as a separate case; except those grievances involving more than one (1) employee or incident concerning an alleged violation with similar facts and circumstances which shall be treated as one case. The Company and the Union member of the Board shall serve until their successor is duly appointed. (4) Secretary to the Board The Office of 'Secretary to the Board' shall alternate January 1st of each year between the Company member of the Board and the Union member of the Board with the Union member serving on even numbered years and the Company member serving on odd numbered years. The Secretary shall give written notice to the Board members and the parties to the dispute in connection with the scheduling of Board matters. (c) The Board shall have jurisdiction over disputes between any employee covered by this Agreement and the Company growing out of grievances, interpretation or 66 ARTICLE 12(C) (CONTINUED) application of any of the terms of this Agreement. The jurisdiction of the Board shall not extend to propose changes in hours of employment, basic rates of compensation, or working conditions covered by this Agreement or any amendment hereto. (d) The Board shall consider any dispute properly submitted to it by the President General Chairman of the Union or his authorized representative, or by the chief operating official of the Company or his authorized representative, when such dispute has not been previously settled in accordance with the terms provided for in this Agreement, provided that notice of the dispute is filed with the Company and the Union members of the Board, with copy to the Company or Union, as may be appropriate, within forty-five (45) work days after the decision in the last step of the grievance procedure. The date of notice shall determine the order for considering cases, unless the parties mutually agree otherwise. (e) The neutral member (Referee) shall preside at meetings and hearings of the Board and shall be designated as Chairman of the System Board of Adjustment. It shall be the responsibility of the Chairman to guide the parties in the presentation of testimony, exhibits, and arguments at hearings to the end that a fair, prompt and orderly hearing of the dispute is afforded. (f) The Board shall meet at such location or locations where the parties may agree, generally to be the location(s) where the grievance arose or the location most convenient to the majority of the individuals necessary to the proceedings. If the parties cannot agree to a location, then the Secretary to the Board shall promptly request in writing with notice to the parties that the Chairperson, in consultation with the Company's and Union's designees to the Board, determine the location or locations where the Board will convene. (g) The notice of disputes referred to the Board shall be addressed in writing to the Company member and the Union member jointly and shall include a statement of: (1) The question or questions at issue. (2) Statement of facts. (3) Position of appealing party. (4) Position of other party. A copy of the notice of dispute shall be served upon the other party. (h) Upon filing the notice of dispute, the Company and Union Board members shall within five (5) work days, select a Referee to sit with the Board to settle the dispute and the Secretary of the Board shall advise the appealing party and other party of the name and address of the Referee. If the Board members are unable to agree upon a Neutral Referee within the five (5) work days, a joint request will be directed to the Chairman of the National Mediation Board for the appointment of a Neutral Referee. A copy of the notice of dispute shall be forwarded by the Secretary of the Board to the Neutral Referee who has been appointed or selected to serve in this matter. All 67 ARTICLE 12(H) (CONTINUED) subsequent documents filed with the Board shall be addressed to all three members, with copy to the other party or parties. (i) The Neutral Referee shall set a date for hearing scheduled within thirty (30) days after his appointment. If the Neutral Referee is a member of the standing panel and cannot serve during this thirty (30) day period, the parties may agree to another member of the standing panel who is available during this same period or the parties shall jointly petition the Chairman of the National Mediation Board to assign a Neutral Referee. (j) If neither party or the Chairman requests a hearing, such hearing shall be waived. If either party desires a hearing to present evidence or oral argument to the Board, or if the Referee desires that evidence or arguments be presented by either party, request for hearing shall be made to the Board and served on the parties within fifteen (15) days after the appointment of the Neutral Referee. If such request is served, the hearing shall be held within thirty (30) days of the date the request is served at a time mutually satisfactory to the Chairman and the Company and Union members of the Board. (k) (1) Immediately following the hearing, the Board shall convene in Executive Session, unless the parties mutually agree otherwise. The Board shall issue its decision at the conclusion of the Executive Session, if possible. However, a written award will be rendered to the parties not later than ten (10) work days following the Executive Session. (2) In no event shall a decision be issued until after an Executive Session has been held if either the Company or the Union Board member has requested such session. In the event there is to be no hearing, the Chairman shall set a date which is agreeable to the Board members, for an Executive Session of the Board. The Board shall issue its decision at the conclusion of the Executive Session, if possible. However, a written award will be rendered to the parties not later than ten (10) work days following the Executive Session. (l) The time limits expressed in this Article may be extended by mutual agreement of the parties to this Agreement. The expenses and reasonable compensation of the Referee selected, as provided herein, shall be borne equally by the parties hereto. (m) Employees covered by this Agreement may be represented at Board hearings by such person or persons as they may choose and designate, and the Company may be represented by such person or persons as it may choose and designate. Evidence may be presented either orally or in writing or both. The Board may, at the request of either the Union member or the Company member thereon, call any witnesses who are employed by the Company and who may be deemed necessary to the dispute. (n) (1) A majority vote of all members of the Board shall be competent to make a decision. Decisions of the Board in all cases properly referred to it shall be final and binding upon the parties hereto. 68 ARTICLE 12(N) (CONTINUED) (2) In grievances involving disciplinary suspensions or discharges in which the Board awards back pay, the employee will be paid the amount of straight time and overtime pay he would have earned had he not been held out of service. The amount of overtime pay due to the employee will be the average amount of overtime pay earned during the period in question by other employees in the grievant's classification/seniority group and location. (3) Unless otherwise provided in the award, the employee will receive restoration of all retirement plans, benefits, restoration of sick leave accrual, and payment for actual unreimbursed medical expenses that would have been covered by Company provided medical benefits plans had he/she not been held out of service. A discharged employee who is returned to work by a decision of the System Board of Adjustment shall receive pay for the vacation accrued in the year of his discharge. (o) If the parties mutually agree, a stenographic report will be made. The costs of such report shall be borne equally. (p) The Chairman's copy of any transcripts and/or all records of cases will be filed at the conclusion of each case in a place to be provided by the Company, and will be accessible to Board members and to the parties. (q) Each of the parties hereto will assume the compensation, travel expense, and other expenses of the Board member selected by it. (r) Each of the parties hereto will assume the compensation, travel expense, and other expenses of the witnesses called or summoned by it. Witnesses who are employees of the Company shall receive positive free transportation over the lines of the Company from the point of assignment to the point at which they must appear as witnesses and return to the extent permitted by law. (s) The Company and the Union members, acting jointly, shall have the authority to incur such other expenses as in their judgment may be deemed necessary for the proper conduct of the business of the Board and such expenses shall be borne one-half by each of the parties hereto. Board members who are employees of the Company shall be granted necessary leave of absence for the performance of their duties as Board members. Board members shall be furnished positive free transportation over the lines of the Company for the purpose of attending meetings of the Board, to the extent permitted by law. (t) It is understood and agreed that each and every Board member shall be free to discharge his duty in an independent manner, without fear that his individual relations with the Company or with the Union may be affected in any manner by any action taken by him in good faith in his capacity as a Board member. 69 ARTICLE 12 (CONTINUED) (u) Nothing herein shall be construed to limit, restrict, or abridge the rights or privileges accorded either to the employees or to the Company or to their duly accredited representatives, under the provisions of the Railway Labor Act, as amended. ARTICLE 13 LEAVE OF ABSENCE (a) When the requirements of the service will permit (the preceding limitation will not apply in cases of medical and maternity leaves), any, employee hereunder shall upon proper application and approval of the Company, be granted a leave of absence in writing for a period not in excess of ninety (90) days. Under such leaves, the employee shall retain and continue to accrue seniority, and the designated local representative of the Union shall be notified of all leaves granted. (b) (1) Upon proper application accompanied by a physician's statement employees' requests for medical leave extensions shall be granted. In no case will extension be granted so as to cause the total medical leave of absence to exceed five (5) years. Seniority will accrue during such extension(s). All other leaves may be extended for additional periods not to exceed ninety (90) days each when approved by both the Company and the above designated Local Representative of the Union, in writing, and seniority will accrue during such extension. An employee who returns from a Medical Leave of Absence and has exhausted more than three (3) years of his disability insurance benefit period and/or his five-year Medical Leave of Absence time for a given illness or injury shall be required to re-establish his disability insurance benefit period and/or his Medical Leave of Absence time for the same or a related illness or injury. Re-accrual shall occur only after the employee has been back to work for six (6) consecutive months. At that time, the employee will be credited with two (2) years of his disability insurance benefit period and Medical Leave of Absence time. Thereafter, the employee will re-accrue ten (10) days of disability insurance benefit time and Medical Leave of Absence time for every eighty (80) straight time hours worked until he has re-accrued his maximum disability insurance benefit time and Medical Leave of Absence time of five (5) years. An employee who returns from a Medical Leave of Absence and has exhausted less than three (3) years of his disability insurance benefit period and/or his five-year Medical Leave of Absence time will re-accrue his entire five-year disability insurance benefit period and/or Medical Leave of Absence time for the same or a related illness or injury upon completing six (6) consecutive months of work. If, however such employee suffers the same or related illness or injury prior to completing six (6) consecutive months of work such illness or injury shall be considered the same disability as the previous illness or injury for the purpose of computing the employee's five-year disability insurance benefit period and/or Medical Leave of Absence time. 70 ARTICLE 13(B)(1) (CONTINUED) An employee who returns to work from a Medical Leave of Absence for seven (7) consecutive days and who becomes disabled by an illness or injury unrelated to the illness or injury which occasioned the original Medical Leave of Absence need not re-establish his disability insurance benefit period or his Medical Leave of Absence time through re-accrual time and, upon proper application, shall be granted a new Medical Leave of Absence and extensions thereto not to exceed five (5) years. (2) In the event the Company's physician considers that an employee does not meet the physical requirements of the job as determined by the Company, or in the event the Company's physician considers that an employee meets the physical requirements of the job as determined by the Company, and in either event the employee's physician has made a contrary determination, the employee shall have fifteen (15) calendar days from the date he/she is notified of the contrary determination, to elect to have a third party impartial physician who specializes in the treatment of the medical condition at issue make a determination resolving the contrary determination. If the employee elects a third impartial physician to make such a determination, a third impartial qualified physician will be selected by the Company from the predetermined, mutually agreed upon medical panels to examine the employee. Pending review by a third impartial physician, the employee shall remain in his or her current status. The decision of the third impartial physician will determine the employee's ability to meet the physical requirements of the job (i.e. whether the employee should return to work or not return to work) and shall be final and binding upon the Company and the employee. The predetermined medical panels will be mutually agreed upon by both the Company and the Union and will consist of physicians who will be board certified in their respective specialties. The third impartial physician's determination shall be final and binding upon the Company and the employee on the issue submitted. The parties further agree that they shall establish the procedures, forms, and guidelines to be used by the impartial physician in making the determination as to fitness to return to work. The Union shall be entitled to review and approve the Regional Medical Panel facility for determination as to whether or not such facility shall be entitled or qualified to provide the services herein described. The parties shall each appoint one (1) individual for purposes of making the selections. All facilities must be a teaching hospital or affiliated with a medical school. The parties agree that if the third impartial physician determines that the employee has continuously met the physical requirements of the job as determined by the Company and the Company has held that employee out of service pending this determination, the employee will be reinstated and paid for sick/industrial pay or wages, as appropriate. If, however, the employee has held himself/herself out of service pending this determination, the employee will receive no back pay for the time period that the third impartial physician determines that the employee should have been in service for the Company. In 71 ARTICLE 13(B)(2) (CONTINUED) the event the third impartial physician determines that the employee is unable to return to work and should remain on medical leave, the employee shall be returned to his or her medical leave status. The expense of the employee's physician will be borne by the employee; the expense of the Company's physician will be borne by the Company; and the expense of the impartial physician will be borne by the Company. (c) Employees accepting full-time employment with the IAMAW as a District 142 officer, and/or other designated local lodge officers of a Local Lodge of District 142, or Grand Lodge staff or officer shall be granted an indefinite leave of absence by the Company for the period so employed as long as this Union remains the exclusive bargaining agency of employees covered by this Agreement. Under such leaves the employees shall continue to accrue seniority. Such employees shall have all employee benefits that can reasonably be continued in effect during their leave of absence and upon their return from such leave of absence will be credited with the maximum vacation, sick leave, and occupational illness or injury allowances provided by the Agreement then in effect for employees of like seniority. (d) An employee hereunder returning from an authorized leave of absence or extension thereof will be returned to the job held when the leave was granted unless an employee with more seniority holds the job as the result of exercising displacement rights or unless the job no longer exists. In either case, he may exercise his seniority rights as set forth in this Agreement. An employee returning from a leave of absence must give notice of return in writing to the Company at least ten (10) days prior to his anticipated return. (e) Any employee hereunder on leave of absence engaging in gainful employment not provided for in paragraph (c) above without prior written permission from both the Company and the Union General Chairman shall forfeit his seniority rights and his name will be stricken from the seniority roster. (f) Any employee enlisting in, drafted, or conscripted for military or naval service in defense of the United States during an actual period of war, or any employee drafted or conscripted by Act of Congress for military or naval training, shall retain his seniority rights unimpaired and upon honorable discharge from such service shall be restored to his former position or one of equal rating in accordance with the exercise of seniority rights, provided he applies for reinstatement within ninety (90) days following his discharge from military or naval service. In case of temporary or partial disability which makes it impossible to return to work within ninety (90) days after discharge, special arrangements will be made by the Company and the Union for a proper extension of time. (g) Twenty-five (25) days prior to the expiration of a leave of absence for medical reasons, granted under (a) and (b) of this Article, or of any extension of such leave granted under (b) of this Article, the Company will send a written notice to any employee on such medical leave of absence advising him or her that he or she must 72 ARTICLE 13(G) (CONTINUED) either give notice of intent to return, pursuant to (d) of this Article, or request an extension in accordance with (b) of this Article. (h) An employee elected to a public office (state or national) or any position with the AFL - CIO (not covered by Article 13(c) in which the duties of that office require a leave of absence, shall be granted such leave of absence for the term of that elective office. Such employee shall retain and continue to accrue seniority, and the designated local representative of the Union shall be notified of all leaves granted. Any extensions to such leaves granted under this provision shall not exceed the duration of this Agreement. Subsections (a) and (g) shall not be applicable to this subsection. Such employees shall have all employee benefits that can reasonably be continued in effect during their leave of absence and, upon their return from such leave of absence will be credited with the maximum vacation, sick leave, and occupational illness or injury allowances provided by the Agreement then in effect for employees of like seniority. ARTICLE 14 SAFETY AND HEALTH (a) Employees entering the service of the Company may be subjected to a physical examination. The cost of any such examination will be paid by the Company. (b) The Company hereby agrees to maintain safe, sanitary, and healthful conditions at all points and to maintain on all shifts proper first aid equipment to take care of its employees in case of accident or illness. The Company agrees to furnish good drinking water, and sanitary fountains will be provided where necessary. The floors of the toilets and washrooms will be kept in good repair and in a clean and sanitary condition. Shops and washrooms will be lighted and heated in the best manner possible, consistent with the source of heat and light available. Lockers will be provided for all employees within a reasonable time. (c) In order to eliminate, as far as possible, accidents and illness, an adequate safety committee will be established at each point where advisable on the system, to be composed of an equal number of Union and Company representatives. The Union and the Company shall each appoint not more than three members. The Chairman of the local Safety Committee shall be the safety engineer, wherever a safety engineer is permanently stationed, provided he is designated as one of the Company representatives on the committee. The Safety Committee will make periodic tours of inspections not less frequently than monthly for the purpose of seeing that all safety and sanitary regulations are complied with as well as to make recommendations for the maintenance of proper standards. The Company and the Union shall each appoint one (1) Safety Representative per shift to supplement the regular Safety Committee during periods of time when the Safety Committee is not available. 73 ARTICLE 14(C) (CONTINUED) The appointment of these Representatives shall conform with the three (3) basic shifts as outlined in Article 7 in order to provide seven (7) day, twenty-four (24) hour coverage. At such times, such Representatives will have precisely the same jurisdiction and role as the local Safety Committee. In the event these Representatives cannot agree in a particular case, the matter will be referred to the Safety Committee. The Union Safety Representative shall comply with Article 11 (b)(11) when it becomes necessary for him to leave his work area for a safety problem. Each party will advise the other of its respective shift Safety Representative it is recognized and desirable that the Company Representative is a ranking official of the Company. To provide a means whereby individuals may bring to the attention of their departmental supervision and the IAM Safety Health Committee, matters which they feel might adversely affect the safe and healthful working conditions within their department and to establish procedures for the prompt handling of such complaints. PROCEDURE (1) The individual or his/her steward must first discuss the matter with complainant's immediate supervisor, allowing the supervisor a reasonable length of time (normally 48 hours) to investigate and take action. Those matters brought to the supervisor's attention must be handled promptly. If the complaint is not thought to be legitimate the supervisor must explain his/her position to the individual and the steward. (2) If the matter is not thought to be satisfactorily handled the steward will meet with the Manager or his designee. This discussion will not include the individual or the immediate supervisor, except by mutual agreement of both parties. (3) A matter not resolved by the above procedure will be submitted in writing, on Safety Compliance Report (Form M-344) to the Manager by the individual's steward. (4) When presented with the Safety Compliance Report (Form M-344), the Manager will answer, in writing, stating the action taken or the reason for rejection. The Manager will return the original Safety Compliance Report to the initiating steward by the end of the second work day. (5) The steward will forward the original Safety Compliance Report to the IAM Safety/Health Committee for their record and/or possible further handling. (6) If the matter is not resolved, the IAM Safety/Health Committee will meet with the Director of the department who will answer the complaint, in writing, on the 74 ARTICLE 14(C)(6) (CONTINUED) Safety Compliance Report. The Director of the Department will return the answered Safety Compliance Report to the IAM Safety/Health Committee by the end of the third work day. (7) Should the matter remain unresolved, the IAM Safety/Health Committee if deemed advisable, will meet with the appropriate Chief Operating Official for the point and/or location. When necessary, the Safety/Health Committee will meet with the appropriate Full-Time Grievance Committee Chairman for the point and/or location. (8) The IAM Safety/Health Committee will return a copy of the Safety Compliance Report (Form M-344) to the steward as soon as the matter is finally resolved. (d) No employee shall be discharged or suspended pending an investigation by the Safety Committee for refusing to work on a job which is not reasonably safe and/or sanitary or which might endanger his health. In no event shall an employee be discharged, suspended and/or disciplined in any manner for adhering to Company, both local and/or system, rules and/or regulations. (e) Proper and modern safety devices shall be provided for all employees working on hazardous or unsanitary work, such devices to be furnished by the Company. (f) The Company will furnish protective clothing for the use of employees required to work with acids or chemicals that are injurious to clothing and personnel. Suitable rain suits or protective outer garments shall be kept available at all shops or points by the Company. (g) Employees taken sick or injured while at work shall be given medical attention at the earliest possible moment, and employees will be permitted to return to work without signing any releases of liability pending the disposition of settlement of any claim for damage or compensation. An employee injured while at work on his regular shift shall not lose any pay for the remainder of the shift if the injury is such that he is unable to resume work, nor shall he lose pay for any treatments or doctor's visits required on his scheduled shift as a result of such injury. (h) (1) For employees covered by this Agreement except Fire Inspectors and Crew Chief Fire Inspectors, wherever the Company shall require a standard coverall, the coverall will be furnished at Company expense and laundering shall be done at Company expense. The coverall will remain the property of the Company. Whenever a standard coverall is designated by the Company, the Company will make available for sale to such employees at cost, all items of standard uniform, and the cost of coverall insignia and its application to the coverall shall not be considered as part of the cost and the employee will not be charged therefor. Employees who are required to wear a cap will be issued such cap without charge. 75 ARTICLE 14(H)(1) (CONTINUED) The Company will provide IAM insignias affixed on replacement uniforms not later than January 1, 2000. (2) Wherever the Company shall require Fire Inspectors or Crew Chief Fire Inspectors to wear a standard uniform the uniform will be furnished at Company expense. The uniform will remain the property of the Company. (3) The Company agrees to furnish one uniform to each Guard upon his entering service as a Guard, and thereafter to replace the uniform as needed, but not normally to exceed one uniform a year, such to remain the property of the Company. The following items comprise the standard uniform furnished for Guards: 1 TWA uniform cap with Guard badge 1 TWA Guard uniform blouse 1 TWA Guard badge for blouse 4 TWA Guard uniform trousers (2 of which will be summer weight) 1 TWA Guard pea coat 1 TWA Sam Browne belt (i) The Company agrees to comply with OSHA rules and regulations for general industry, as well as those related State Occupational Safety and Health Plans which have been approved by OSHA. In addition, the Company agrees to use as guidelines the list of Threshold Limit Values (TLV's) of the American Conference of Governmental Industrial Hygienists (ACGIH) as updated from time to time and to comply with the list of Permissible Exposure Limits (PEL's) as adopted by OSHA. In the event the Occupational Safety and Health Act is repealed the Company shall remain obligated in accordance with Paragraph (b) hereof, to maintain its then existing standards for safe and healthful work places. (j) It is agreed the Safety and Health Committee acts hereunder exclusively in an advisory capacity and that the International Union, District, Local Union, Safety Committee and its officers, agents and employees shall not be liable for any work connected injuries, disabilities or diseases which may be incurred by an employee. ARTICLE 15 FREE TRANSPORTATION (a) In addition to any other pass benefits referred to in this Agreement, employees covered by the Agreement will be afforded free and reduced fare transportation as 76 ARTICLE 15(A) (CONTINUED) established by Company policy on the date of signing of this Agreement which will not be changed or discontinued during the term of this Agreement without first giving the Union ninety (90) days notice of the reason therefore and affording the Union an opportunity to confer with the Company. Employees covered by this Agreement and their eligible family members who are traveling on the employee's vacation shall have boarding priority over employees who are traveling on "Incentive" passes issued by the Company for such purposes as Perfect Attendance, etc. (b) The President - General Chairman and the District Lodge 142 full- time staff of the Union will be furnished with Class 3, positive space, non-removable, non-downgradable term passes for transportation over the Company System within the scope of the Union's geographical jurisdiction under this Agreement as defined by the Railway Labor Act during their term of office for use in connection with their work to the extent permitted by law. (c) In addition to any applicable provisions of the Company's Management Policy and Procedure Manual. Employees laid off by the Company in a reduction of force who desire to seek employment elsewhere will, upon application be granted on one occasion, free one-way, non-positive air transportation on the Company's planes to any point on the system within the United States, to the extent permitted by law. (d) Employees who at the time of retirement are covered by this Agreement shall receive pass privileges in accordance with the policy and regulations specified in the Company's Management Policy and Procedure Manual on page 13.13.01 dated July 1, 1998 Federal law permitting. Employees who have fifteen (15) or more years of service with the Company and who retire under the IAM Retirement Plan shall be entitled to retiree term pass privileges for self, spouse and dependents. (e) Once a year employees with more than six (6) months and less than fifteen (15) years of Company service and their spouse and dependent children (or parents, in the case of single employees) will be issued Class 7 "vacation passes", according to employees' Company seniority date. Employees with fifteen (15) years or more of Company service and their spouse and dependent children (or parents, in the case of single employees) will be issued Class 6 "vacation passes", according to employees' Company seniority date. These passes will be in addition to employees' regular annual allotment and will allow boarding priority over all other lower rated passes. Request for "vacation passes" may be submitted in conjunction with an employee's regularly scheduled vacation. The yearly request must include all eligible family members who wish to accompany employees. Geographical limitation and seasonal regulations as set forth for regular annual allotments will apply to the use of vacation passes. (f) The Company agrees to make such changes as are necessary to provide that employees shall become entitled to annual passes after fifteen (15) years of service. 77 ARTICLE 15 (CONTINUED) (g) Hawaii will be deemed to be a domestic station for the purposes of determining pass policies for employees at such time as the Company's regularly scheduled service to and from Hawaii increases to four (4) daily flights each way. Employees stationed in Hawaii shall be entitled to travel Honolulu-Mainland, round trip, year around, within limits of their allotments. ARTICLE 16 VACATIONS (a) Employees will be eligible for annual paid vacations in accordance with the regulations hereinafter set forth. (b) Vacation Allotment Schedule (1) The vacation year shall be from January 1 to December 31. (2) Paid vacation allowance will be computed on scheduled work days and based on the number of months worked in the preceding calendar year and the number of full years active service with the Company completed prior to January 1 of the year vacation is due to be taken, in accordance with the schedule below: Effective January 1, 1981:
Months of Service Less 5 Years 10 Years 17 Years 25 Years Prior To Than Through Through Through Through 30 Years January 1 5 Years 9 Years 16 Years 24 Years 29 Years and Over --------- ------- ------- -------- -------- -------- -------- 1 1 2 2 3 4 5 2 2 3 4 5 6 7 3 3 4 6 7 8 10 4 4 6 8 10 12 14 5 4 6 8 10 12 16 6 5 8 10 13 16 20 7 6 9 12 15 18 22 8 7 11 14 18 22 26 9 8 12 16 20 24 29 10 9 14 18 23 28 33 11 9 14 18 23 28 33 12 10 15 20 25 30 35
The maximum vacation allowance in no case will exceed thirty-five (35) work days. 78 ARTICLE 16 (CONTINUED) (c) Vacation allowance will accrue during each calendar month for which an employee receives pay for eighty-five (85) or more straight time hours from the Company, whether he is working or is on sick leave or vacation. An employee loaned to another company will accrue vacation credit during such loan period. An employee on approved time off for Union business will accrue vacation allowance during such period. (d) (1) An employee may take his vacation at any time during the calendar year in which the vacation is due, subject to departmental vacation schedules and approval of his supervisor. However, in no case will a vacation be allowed to an employee until he has completed six (6) months of service with the Company. (2) An employee who is disabled because of an industrial injury for the entirety of his vacation period or for the entirety of any split vacation period may take the vacation period lost due to the injury at a later open period provided he advises his supervisor prior to the start of such scheduled vacation. If such vacation period cannot be rescheduled by the end of the calendar year in which it is due to be taken. the employee shall be paid the vacation due him. Any requests to postpone a vacation period under this paragraph must be supported by a physician's certificate confirming the period of disability involved. (3) Effective October 1, 1999, an employee with a minimum accrual of five (5) weeks of vacation may elect to receive pay in lieu of taking such vacation provided that his accrual limits are not less than four (4) weeks after making such election. The employee may elect such option during his/her respective vacation selection period as outlined in Article 16(m). Payment will take place in first pay period of November during the year in which the vacation would have been taken. (e) Compensation for the vacation period shall be computed at the employee's base rate of pay (including premium pay) in effect at the time the vacation is taken. (f) Vacation leave is not cumulative and must be taken during the year following the year in which vacation is accrued, unless an employee has received written request from his supervisor to forego his vacation during the year. Otherwise, if not taken within the calendar year when eligible, his vacation will be forfeited. (g) (1) Except as provided in sub-paragraph (2) of this paragraph (g), an employee temporarily terminating because of layoff due to reduction in force or an employee granted a leave of absence shall be given vacation pay based on the number of months worked in the preceding year in accordance with paragraph (b)(2) if vacation has not been taken in the current calendar year. Such employees shall also be paid vacation credit for the period worked during the current calendar year in accordance with the schedule set forth in paragraph (b)(2). 79 ARTICLE 16(G) (CONTINUED) (2) An employee who is granted a leave of absence other than for military service, upon written request may retain vacation credit for earned and or accrued vacation for use upon return from leave. (a) Employees entering approved leave may retain credit for earned and/or accrued vacation in lieu of receiving payment. (b) Upon notification of leave approval the employee must designate in writing whether the vacation is to be paid or retained. The employee may split the election, i.e., payment for all earned and retention of all accrued. No other split is permissible. Changes to this election may only occur at the time of a leave extension subject to (c) below. (c) Payment will automatically be made for EARNED vacation by December 31, if the employee has not returned from the leave of absence. Accrued vacation may be carried through the end of the second year at which time it will be paid if employee has not returned from the leave of absence. (d) An employee who has elected to retain vacation as provided above, must return to active status prior to taking such retained vacation. At the time an employee returns to active status he may select his retained vacation from any period in the vacation schedule remaining open. In the event there are no open vacation periods in the calendar year in which the employee returns to work, and such vacation period(s) become available at a later date within the calendar year, such vacation period(s) shall be assigned to the employee and the balance of vacation, if any, shall be paid at the end of the year. In the event no vacation periods become available during the calendar year, the employee shall be paid at the end of the year. (h) An employee who is discharged or who resigns shall be paid for vacation due him, based on the number of months worked in the preceding year, in accordance with paragraphs (b)(2), if vacation has not been taken during the current calendar year. Employees discharged for cause or resigning without giving at least two (2) calendar weeks written notice shall not be paid vacation credit for any months worked in the current year. (i) If an employee received written request from his supervisor to forego his vacation during a previous year and has not yet received that vacation, vacation pay will be paid for that year upon termination, regardless of reason for termination. (j) An employee recalled from layoff or returning from leave of absence will accrue vacation leave from the date of return to service in accordance with paragraph (b)(2), which vacation leave may be taken in the next calendar year. (k) In the case of the death of an employee, any vacation pay allowance due him shall be paid to the executor, administrator, or legal heir. 80 ARTICLE 16 (CONTINUED) (1) Request for vacation leave will be granted on a basis of Company seniority. However, a senior employee will not be permitted to take vacation leave already assigned to a junior employee. (m) The Company will notify each employee of his anticipated vacation earned by October 1 of the preceding year. Each employee must notify the Company by October 15 on a form furnished by the Company of the amount of vacation, if any, he elects to bank as provided in the letter of agreement on Page 157, or elects payment pursuant to Article 16 (d)(3), as well as the amount of eligible day at a time (DAT) vacation to be taken. The Company will post a vacation schedule (excluding any allowance for banked vacation, 16(d)(3) election or DATS by November 1, indicating the number and classification of employees who may be on vacation at any given time during the next calendar year. The vacation schedule will include at least 100% of the vacation earned by each employee after taking into account any vacation the employees have elected to take as banked vacation, 16 (d) (3) election and/or day at a time (DAT) vacation, which will be excluded from the posted vacation schedule. Wherever necessary, such list may indicate the number and classification of employees in each work assignment who may be on vacation at any given time during the year. Crew Chiefs will not be considered as separate classifications for the purpose of the foregoing list; however, the Company may refuse to permit more than ten (10) percent of the Crew Chiefs on the same regular work assignment in a classification on a shift to be on vacation at the same time. To the extent such scheduling is permitted by operational requirements, the Company will (1) schedule vacation during desirable periods and (2) prorate by shift, in accordance with the number of employees assigned, the vacations it has determined are available during a period. The November 1 posting will advise employees that they will be contacted for vacation selection between November 5 and November 20. Employees must be prepared to make their vacation selection when contacted. Reasonable provisions shall be made by the Company to secure the selections of employees who may be absent or on vacation from November 1 to November 20. Vacation lists will be posted by December 10 at each point. (n) Employees shall be given their vacation pay prior to taking their vacation if they request the same by written notification to their immediate supervisor not less than three (3) weeks prior to the start of the vacation. (o) (1) A vacation group is defined as the grouping by shift or by 'seniority grouping' for the purpose of vacation allowance and selection. A sheet upon which the year is divided into weekly periods showing the number of employees in a vacation group who may be on vacation during each weekly period will be provided by the Company. The Company will also provide a listing of the number of days vacation to which each employee on the list is entitled. In any case where an employee has made his vacation selection, and it later develops that he is entitled to a greater or lesser number of days than initially indicated, such employee will not be required to change his vacation from the period(s) previously selected, but will be entitled to add or subtract such greater or lesser number of days. 81 ARTICLE 16(O)(1) (CONTINUED) The Company will make every reasonable effort to contact the employee in accordance with Article 16(m), but if his selection cannot be determined, he should be assigned a vacation period based upon the best judgment of the supervisor and the vacation selections of other employees are not to be held up. (2) The first weekly period in the calendar year will be the first full week (considering Monday as the first day of the week). However, if an employee desires, he may start his vacation as early in the year as January 1, or end it on December 31, subject to all other conditions of selection set forth in the Agreement. (3) Split vacations will be permitted for employees with ten (10) days or more vacation. The split must provide at least five (5) work days on the first choice. Vacations will not be split into more than three (3) parts. An employee will select only one (1) part during his first choice and all remaining parts of the second choice. The second choice will be considered only after all first choices are made. When an employee's vacation allotment cannot be evenly divided by five (5), the odd days must be taken with one of the choices. One (1) or two (2) odd days overlap will not close out a vacation period. (4) When an employee leaves a vacation group and thus vacates a vacation period(s), the vacated period(s) will be left open for selection by the employee who in the future enters the vacation group and as a result is required to re-select vacation. (5) If, during original selection of vacations, certain periods were closed with no vacations permitted, and should any of these closed periods later be opened for vacation selection, all employees within the vacation group who have vacations remaining shall be given the opportunity to re-select vacation periods in seniority order. However, a senior employee will not be permitted to take a vacation period already assigned to a less senior employee. (6) When an employee is forced from a vacation group he will retain his vacation period. When an employee initiates a bid into a vacation group covered by an established vacation schedule, he may retain his scheduled vacation period providing it does not conflict with operational requirements. (7) Except as provided in paragraph (2) above, vacations must start or end continuous with an employee's regularly scheduled days off. For the purpose of vacation selection, all employees will be assumed to have Saturday and Sunday days off. Employees with other than Saturday and Sunday scheduled days off will start their vacation with their scheduled days off by moving their vacation selection to obtain the larger part of their vacation in the week selected. (p) (1) In accordance with Article 16(m) an employee must express his desire in writing to take up to ten (10) days of his vacation on a day at a time (DAT) basis. When 82 ARTICLE 16(P)(1) (CONTINUED) an employee's vacation allotment cannot be evenly divided by five (5), the odd days plus five (5) remaining can be set aside for DAT. (2) In no event can an employee set aside more than ten (10) vacation days to be used as DAT. DAT vacation days left over at the end of the calendar year will be carried forward. In such event an employee shall be permitted to set aside as DAT in the next calendar year only those days carried forward. (3) In accordance with Article 16(m) an employee must indicate his desire to take DAT days even though he has not yet taken all of his DAT vacation days for the current calendar year. However, if for any reason, the employee does not thereafter take all of his DAT days for the current calendar year by December 31 of such year, the DAT days remaining will be handled as outlined in the preceding paragraph. Consequently, an employee having previously set aside five (5) new DAT vacation days, to be used in the next calendar year, and not having taken all DAT vacation days in the previous calendar year, will be required to select a regular vacation period only from the available weeks remaining. (4) Each day the Company will post a list indicating the number of employees in each work assignment who will be allowed DAT seven (7) days hence. (For example on January 1, the Company will post a list stating the number of DAT's that will be allowed on January 8.) Employees desiring the DAT day will write their name and Company seniority date on the list, provided such day is a regular scheduled work day for such employee. Five (5) days prior to the DAT date the Company will post a list of the names of the employee(s) to be allowed DAT. (Using the above example, the Company will post on January 3 the names of the employee(s) allowed DAT on January 8.) Only if an insufficient number of employees sign up for a DAT date the Company may allow the day to additional employees on a first come, first served basis based on the needs of the service. (5) Employees who will not be present on the day DAT requests are solicited shall be permitted to make their DAT day request on their last work day prior to the day requests are solicited. (6) Employees who are unexpectedly absent on the day DAT requests are solicited shall be permitted to make their DAT day request by contacting the appropriate Company official on such day. (7) The Company shall grant DAT day requests of employees in Crew Chief classifications based on the needs of the service. (8) Another employee on vacation will not be grounds for refusing a DAT vacation day. However, the Company retains the right to determine the allowable number of DAT days based on the needs of the service. 83 ARTICLE 16(P) (CONTINUED) (9) The Company shall maintain DAT records to assist the employee(s) in determining their DAT usage. ARTICLE 17 SICK LEAVE (a) Employees who have completed six (6) months of continuous service shall be granted sick leave with pay according to the amount of sick leave allowance accrued at time of sickness. (b) When it is necessary for an employee who has completed six (6) months of continuous service to be absent from work because of occupational illness or injury, he may be granted occupational illness or injury leave with pay for such absence to the extent that he has occupational illness or injury leave allowance accrued at time of such illness or injury. (1) Sick leave and occupational illness or injury allowances will accrue to employees at the rate of one (1) day for each month of continuous service. Effective October 18, 1976 sick leave may accumulate to a maximum at any time of one hundred and twenty (120) work days and occupational illness or injury allowances may accumulate to a maximum at any one time of one hundred (100) work days. After exhausting their occupational illness or injury leave, the employee may use their non-occupational sick leave credits. He may not, however, use occupational illness or injury leave for non-occupational illness or injury under any circumstances. (2) Re-accrual of both non-occupational sick leave and occupational illness or injury leave will commence immediately upon an employee's return to active service. In the event he received workmen's compensation because of such absence, any occupational illness or injury leave and/or sick leave pay due for such absence will be reduced by the amount of such workmen's compensation received. In such an event, when he returns to work he shall have sick leave credit and or occupational illness or injury leave credit used in connection with such injury restored to the extent that the amount of the compensation offsets the amount of the sick leave pay granted. In effecting such restoration, the following rules shall apply: (a) In the event the employee had used occupational illness or injury leave only, the restoration will be made to his accrual of occupational illness or injury leave. (b) In the event the employee had exhausted his occupational illness or injury leave and had also invaded thereafter his non-occupational sick leave accrual, the restoration will first be made to his non-occupational sick leave accrual, up to but not exceeding his non-occupational sick leave balance 84 ARTICLE 17(B)(2) (CONTINUED) credited to him on the date of occurrence of the occupational illness or injury, and the balance of such restoration, if any will then be made to his occupational illness or injury leave accrual. (3) Occupational illness or injury leave compensation shall begin with the first day of absence due to such injury or illness. In this connection, the Company will for any period of disability, waive its rights to reimbursement out of an disability award paid to an employee. (4) It is understood and agreed that neither sick leave nor occupational illness or injury leave shall be granted any employee who is injured or suffers occupational illness while in the employ of anyone other than the Company. (c) Employees will not be eligible for sick leave benefits during the first six (6) months of continuous service; however, sick leave credit will accrue during that period. (d) Sick leave and occupational illness or injury pay shall be at the employee's current straight time rate. (e) After use of leave under this Article, the number of days paid for will be charged against the allowances and one (1) day for each month of continuous service shall again accrue to the employee until the accumulation again reaches the maximums permitted under paragraph (c) of this Article. (f) The Company reserves the right to require a physician's certificate to confirm any pay claim, except that for claims of pay for three (3) days or less which are based on non-occupational injury or illness, a physician's certificate may be required only if there is good reason to believe that the intent of this Article is being abused, and if the employee has been notified that he may be required to furnish such certificate. Such notice to an employee will be given prior to his returning to work from the absence for which the certificate is requested, it being understood that such notice may be given at any time within ninety (90) days prior to the beginning of the absence for which the certificate is requested. (g) It is the responsibility of any employee absent from work because of sickness or injury to report immediately such absence and the reason therefor to his immediate superior, or to the officer or person designated by the Company, and to notify the Company promptly of any change which affects his return to work. (h) Sick leave and occupational illness or injury allowance will accrue during each calendar month for which an employee receives pay for eighty-five (85) or more straight time hours, whether he is working, is on sick leave occupational illness or injury leave or vacation. An employee on approved time off for Union business will accrue sick leave and occupational illness or injury allowances during such period. 85 ARTICLE 17 (CONTINUED) (i) (1) For absence because of death in his immediate family, an employee shall, upon request, be granted three (3) days of pay continuance, such days are not to be deducted from the employee's sick leave credits. For the purpose of this subparagraph, immediate family is defined as spouse, child, stepchild, parent, stepparent, grandparent, brother, stepbrother, sister and stepsister. (2) For absences because of the death(s) of his parent-in-law, foster parent, grandchild, brother-in-law, sister-in-law, or ward, an employee shall, upon request, be granted a maximum of three (3) days of pay continuance each calendar year, these days to be deducted from the employee's sick leave credit. (3) For absences because of dangerous illness/injury in his immediate family, an employee shall, upon request, be granted a maximum of three (3) days of pay continuance each calendar year, these days to be deducted from the employee's sick leave credit. To qualify for pay, the absence(s) must be at the time the danger exists. For the purposes of this subparagraph, immediate family is defined as spouse, child, stepchild, parent, stepparent, parent-in-law, foster parent, grandparent, grandchild, brother, stepbrother, sister, stepsister, brother-in-law, sister-in-law or ward. The Company may require confirmation from the attending physician that the illness/injury was dangerous stating the reasons therefore. (j) The employees covered by this Agreement, and the Union, recognize an obligation to be truthful and honest and to prevent unnecessary absences and other abuses of sick leave privileges. (k) No employee will be reprimanded for the legitimate use of sick, and/or injury leave. The Company will not maintain attendance records on any employee in excess of two (2) years duration. ARTICLE 18 LONGEVITY (a) Effective August 1, 1999, all employees covered by this Agreement will receive for each year of completed employment spent in any of the classifications covered by this Agreement and Dining Service Agreement, exclusive of the first three (3) years of employment, longevity of one (1) cent per hour for each year of continuous employment, to a maximum of fifteen (15) cents. The maximum of fifteen (15) cents will be reached at the end of eighteen (18) years of employment. (b) Effective November 1, 1980, employees who receive fifteen (15) cents or more longevity under former longevity plans will retain their longevity and will accrue no more. 86 ARTICLE 18 (CONTINUED) (c) Effective November 1, 1980, employees who at that time are receiving less than fifteen (15) cents longevity will retain their present longevity but will accrue no more until the scale in (a) above catches up. Thereafter, they will receive longevity based on the provisions of paragraph (a) of this Article. (d) Longevity accrued in any classification will be retained upon transfer or promotion to another classification. For the purpose of computing longevity credit, only pay seniority shall be counted. ARTICLE 19 SHIFT PREMIUMS (a) Employees shall be paid for afternoon and night shifts as additional compensation over the rate paid on day shifts, for all hours worked. Effective August 31, 1997, fifty-one ($.51*) cents and fifty-eight ($.58*) cents per hour, respectively. This premium shall be considered a part of the base rate for the purposes of pay computations. (b) Any shift starting at 11:00 a.m. or later and before 5:00 p.m. shall be considered an afternoon shift; and any shift starting at 5:00 p.m. or later and before 6:00 a.m. shall be considered a night shift. (c) The Company and the Union may, at any point, change from fixed to rotating shifts, or vice-versa, by mutual agreement. (d) The Company may establish relief schedules which require employees to work on different shifts for the purpose of providing: (1) Day Off Relief: Day off relief assignments shall be bid from within a seniority grouping and filled by classification seniority. (2) Vacation Relief: (a) In establishing Vacation Relief schedules, the Vacation Relief employee shall have two (2) consecutive days off each week (48 consecutive hours off duty) with the exception of a Sunday/Monday day off pattern as provided for in Article 7(b). (b) Vacation Relief assignments shall be bid from within a seniority group and filled by classification seniority as soon after December 10 of each year as practicable. Thereafter, when the vacation liability increases the Company 87 ARTICLE 19(D)(2)(B) (CONTINUED) may rebid vacation relief to add to the existing vacation relief pool. An employee(s) named a successful bidder(s) to the initial vacation relief bid in December will receive the premium pay for the entire year. Employees on vacation relief as a result of subsequent bids will receive the premium only during the time they are in the Vacation Relief position(s). Afterwards the additional Vacation Relief employees will return to their respective shift and days off seniority permitting. At no time will the Vacation Relief pool fall below is original allotment. Employees will be allowed to refuse a Vacation Relief bid at the time it is awarded. However, such employee will not be permitted to bid for a different shift and/or day off assignment for six (6) months after such refusal. During the vacation year, if Vacation Relief assignments are vacated because an employee is reduced, furloughed or accepts a bid, the opening(s) shall be awarded from bids on file from within a seniority grouping and filled by classification seniority and, if there are no bids on file, by inverse order of seniority within the vacation group. (c) An employee on Vacation Relief shall have a home shift and days off within his seniority grouping determined by his classification seniority, which shall apply when he is not relieving a vacationing employees. (d) Vacation Relief assignments will consist of lines of time constructed to provide coverage for vacationing employees. The lines of time will be constructed based upon the aggregate number of openings created by vacationing employees. (e) In the event there is more than one Vacation Relief assignment in a seniority grouping, the assignment of lines of time referenced in (d) above shall be determined by the classification seniority of those Vacation Relief employees who are not then relieving a vacationing employee. (f) Vacation relief employees in a basic classification may be used to fill an opening created by a Crew Chief on vacation only when a Crew Chief Vacation Relief position is not utilized (bid). Temporary Crew Chief assignments made to provide coverage for the Crew Chief on vacation shall be in accordance with Article 10(c). (g) Vacation Relief employees in Crew Chief classification may not be used to provide Vacation Relief coverage for employees in a basic classification. (h) Vacation Relief employees may not be used to relieve for other than vacations. (i) Day Off Relief employees may not be used to provide Vacation Relief. 88 ARTICLE 19(D)(2) (CONTINUED) (j) An employee on Vacation Relief shall not be assigned to any other relief position or temporary vacancy, unless his seniority so requires. (k) Vacation Relief employee shall not have less than seven and one-half (7-1/2) hours between quitting time of his shift and starting time of his next shift as provided for in Article 8(c). (l) A Vacation Relief employee will receive sixty-one (61) cents per hour above the day shift rate for all shifts worked. (3) Except as provided in Article 2(c), a rotating relief employee(s) shall not perform work out of his classification. The rotating relief shall have two (2) consecutive days off each week (48 consecutive hours off duty). The rotating relief may work on not more than two shifts (shift start times) in any work week and may rotate between or within shifts twice per work week. An employee on a relief schedule who does not rotate between shifts during his work week shall be paid shift premiums in keeping with paragraphs (a) and (b) of this Article, as applicable, except that an employee on a relief schedule who is scheduled to work different shifts within the day shift, afternoon shift or night shift shall receive forty-six (46) cents per hour, fifty-three (53) cents per hour, or sixty (60) cents per hour, respectively for all shifts worked. An employee on a relief schedule who is scheduled to work on the day and afternoon shifts during a workweek will receive fifty-six (56) cents per hour above the day shift rate for all shifts worked. An employee on a relief schedule who is scheduled to work on the (1) afternoon and night shifts or (2) day and night shifts during a work week, will receive sixty-one (61) cents per hour above the day shift rate for all shifts worked. The above shift premiums shall become effective the first of the month after date of signing. This premium shall be considered a part of the base rate for pay computation. Rate adjustments are determined by System Board of Adjustment award dated April 16, 1997, as follows: (57), (43), (50), (57), (53), (58). ARTICLE 20 BENEFITS Except as specifically amended hereunder, all provisions of the Summary Plan Description and Article 20 of the agreement dated September 1, 1994 except as amended by the provisions of the following group benefits, shall remain in full force and effect: (a) The Group Medical and Dental Benefit Plan administered by the Company authorized third party administrator, as described in the "A World of Benefits From TWA Universal Benefit Plan" Summary Plan Description dated September, 1997, shall be amended as follows: (1) The In-Network deductible under the Universal Medical Plan shall be $200 per family. 89 ARTICLE 20 (CONTINUED) (2) Covered Expenses under the Medical Plan shall include in- hospital expenses incurred for newborn children. (3) Preventive Health Care Benefits Effective 8/1/1999, Pap smears, mammograms, proctosigmoidoscopys and PSA tests will be a covered expense eligible for submission every calendar year. (4) Home Health Care Benefits In-Network, the Medical Plan shall pay 90% of expenses for up to 60 home health care visits per calendar year, after $50 of the $200 deductible has been satisfied. Out-of- Network, the Medical Plan shall pay 70% of expenses for up to 60 home health care visits per calendar year, after the full deductible has been satisfied. (5) Hospice Care Benefits The Medical Plan shall pay 80% of hospice care expenses, incurred in a hospice care facility or at home, after the $200 annual deductible has been satisfied, up to a maximum lifetime benefit of $10,000 per individual. (6) Dental Plan Benefits The Group Dental Plan effective October 1, 1999 includes a Preferred Provider Organization (PPO) which provides three (3) levels of comprehensive benefits based upon whether the service is obtained through the PPO network (In-Network), outside the PPO network (Out-of-Network), or through a voluntarily elected Dental Health Maintenance Organization (DHMO). Employees who live in areas where no PPO network is available are paid in accordance with the In-Network benefits. In-Network shall be defined as at least two (2) general practitioners within a ten (10) mile radius. Features of the Group Dental Plan are as follows: DENTAL HMO - --------------------------------------------------------------------- DENTAL SERVICE BENEFITS PAYABLE DEDUCTIBLE MAXIMUM - --------------------------------------------------------------------- Class I 100% of network fees None None - --------------------------------------------------------------------- Class II 90% of network fees None None - --------------------------------------------------------------------- Class III 80% of network fees None None - --------------------------------------------------------------------- Class IV 60% of network fees None None - --------------------------------------------------------------------- 90 IN-NETWORK (PPO)
- ----------------------------------------------------------------------------------------------- DENTAL SERVICE BENEFITS PAYABLE DEDUCTIBLE MAXIMUM - ----------------------------------------------------------------------------------------------- Class I (Preventive) 100% of None $3000 per calendar (Oral Exams) network fees year per member inclusive of Class I, (X-rays) II, III - ----------------------------------------------------------------------------------------------- Class II 90% of network $100 per calendar $3000 per calendar (Minor Restorative) fees year per member year per member (Periodontal) inclusive of Class II inclusive of Class I, (Fillings) and III II, III (Root Canals) - ----------------------------------------------------------------------------------------------- Class III 60% of network $100 per calendar $3000 per calendar (Major Restorative) fees year per member year per member (Crowns) (Bridges) inclusive of Class II inclusive of Class I, (Dentures) and III II, III - ----------------------------------------------------------------------------------------------- Class IV 50% of network $100 per member $1500 per member for (Orthodontics) fees for life life - ----------------------------------------------------------------------------------------------- OUT-OF-NETWORK (PPO) - ----------------------------------------------------------------------------------------------- DENTAL SERVICE BENEFITS PAYABLE DEDUCTIBLE MAXIMUM - ----------------------------------------------------------------------------------------------- Class I (Preventive) 100% of reasonable None $500 per calendar (Oral Exams) and customary charges year per member (X-rays) - ----------------------------------------------------------------------------------------------- Class II 75% of reasonable None $1250 per calendar (Minor Restorative) and customary charges year per member (Periodontal) (Fillings) (Root Canals) - ----------------------------------------------------------------------------------------------- Class III 50% of reasonable $100 per calendar $1500 per calendar (Major Restorative) and customary charges year per member year per member (Crowns) (Bridges) inclusive of (Dentures) Class III - ----------------------------------------------------------------------------------------------- Class IV 50% of reasonable $100 per member 1500 per member (Orthodontics) and customary charges for life for life - ----------------------------------------------------------------------------------------------- Classes for DHMO same as for PPO
91 ARTICLE 20 (CONTINUED) (7) Acute Care Prescription Drug Program There shall be no deductible. All drug prescriptions will be submitted through the Inteq Drug Plan. (Acute or Mail Order). (8) Medical Plan Prescription Drug Benefits The Plan will pay based on hospital affiliation for prescription drug expenses, after the applicable family deductible has been satisfied, for drugs administered in a hospital facility. Employees who live in an area where there is a pharmacy, but there is no INTEQ network pharmacy available, will submit their prescription drug claims for reimbursement through their third party company authorized administrator for medical claims. (9) Chiropractic Care Benefits Chiropractic benefits will be paid subject to reasonable and customary charges with no deductible and will be limited to 20 visits per member per year. These visits are not subject to medical necessity. (b) The existing Employee Life Insurance provided by the Company to all IAM represented employees shall be increased by $10,000. (c) Bomb Insurance for all IAM represented employees will be increased to $200,000. (d) Aviation Insurance for all IAM represented employees will be increased to $200,000. (e) Retiree Benefits 1. If you worked for TWA for ten (10) or more years and retire on or before age sixty-five (65) under the IAM Retirement Plan, your Life Insurance but not more than $20,000, will be continued for the first year after you retire. Then on each anniversary of your retirement, this amount will be reduced by $2,000 until $10,000 is reached. 2. Effective August 1, 1999, any future retirees will be subject to all negotiated changes affecting active IAM represented employees. 3. Effective October 1, 1999, a new Post-65 PPO Medical Plan, administered by a Company authorized Third Party Administrator will be made available to TWA retirees. The current 65 Plus enrollees will be given the option of converting to the new Post-65 PPO Medical Plan or remaining under the 92 ARTICLE 20 (CONTINUED) old 65 Plus Plan. All future retirees will only be eligible for the new Post-65 PPO Medical Plan. The Post-65 PPO Medical Plan premiums will be $45.05 per month per member for the duration of the Collective Bargaining Agreement. Provisions of this Post-65 PPO Medical Plan are: - ------------------------------------------------------------------------ Post-65 PPO Medical Plan - ------------------------------------------------------------------------ In-Network Out-of-Network - ------------------------------------------------------------------------ Annual Deductible $750 $1,000 $1,500 $2,000 - ------------------------------------------------------------------------ Hospital Coverage 90% 80% after deductible after deductible and $200 per confinement - ------------------------------------------------------------------------ Coinsurance 90% 80% Scheduled/Units after deductible after deductible - ------------------------------------------------------------------------ Out-of-Pocket Maximum $2,000 $3,000 $4,000 $6,000 - ------------------------------------------------------------------------ Doctor Office 90% 80% Visit after deductible after deductible - ------------------------------------------------------------------------ Prescription Brand 80% Brand 80% Generic 90% Generic 90% - ------------------------------------------------------------------------ Plan Maximum $1,000,000 per insured - ------------------------------------------------------------------------ (f) Additional Life Program The existing Voluntary Additional Life Insurance for IAM represented employees will be replaced by a new program described below. The key provisions are: (1) Guaranteed issue upon portability when terminating or retiring from TWA; (2) Guaranteed issue up to plan maximum or $150,000 whichever is lower for new enrollees; (3) Guaranteed rates for three years; 93 ARTICLE 20 (CONTINUED) (4) Rates shall remain fixed upon portability at retirement; (5) An additional Life Insurance program will be made available for spouses and children of active employees that will include limited portability. Provisions of Additional Life Program at Portability -------------------------------------------------------- Employee Rates -------------------------------------------------------- (Rate / $1000 of Covered Age Rate Payroll) Volume - # --- ---- < 30 0.10 30-34 0.15 35-39 0.20 40-44 0.25 45-49 0.40 50-54 0.70 55-59 1.10 60+ 2.10 -------------------------------------------------------- (g) Tool Box Insurance The Company will make available, at no cost to Crew Chief Flight Simulator Technicians, Flight Simulator Technicians, Crew Chief Mechanics and Mechanics, these maximum insurance coverages against loss by fire or theft of the following items owned by the employee while such is on Company premises for use in connection with the employee's work, and while in transit to or while being used in connection with a field service assignment. A new hire inventory will be required within thirty (30) days of hire. (1) For the loss of the entire contents of a Tool Box $2,000 (2) For the loss of the entire contents of a Top Tray of a Tool Box $ 750 (3) For the loss of the entire contents of a Tote Type Tool box $ 500 Losses will be settled by the insurance company directly with the employee who will bear the first $50 of any loss. 94 ARTICLE 21 WAGE RULES (a) The minimum hourly rates set forth in Schedule A attached hereto and made a part of this Agreement shall prevail on and after the dates indicated thereon. (1) Effective November 1, 1978, all employees in the Mechanic or higher classifications assigned to Aircraft Maintenance at Line Service Stations or to Line Maintenance crews at the Overhaul Base shall receive a premium of ten (10) cents per hour in addition to their base pay. All employees in the classifications below Mechanic assigned to the servicing of aircraft (thru flights, terminating flights, originating flights, charter flights, air freight flights, training flights, etc.) shall receive a premium of ten (10) cents per hour in addition to their base pay. This premium for pay purposes shall be computed as a part of the basic hourly wage rate. If an employee is assigned to line aircraft maintenance for less than four (4) hours in a workday, he shall not be entitled to the line differential. If the employee is assigned to line aircraft maintenance for four (4) hours or more in a workday, he shall be paid the line differential for the entire shift, if worked. (b) No employee shall suffer any reduction in hourly rate or classification as a result of this Agreement, and nothing in this Agreement shall be construed to prevent increases in individual rates or classifications over and above the minimum specified. This shall not be construed to prevent force reductions, demotions for cause, or other changes in classification and rate allowed in the Agreement. (c) Employees shall be paid bi-weekly, every other Friday, except where applicable laws provide a more frequent paying-off condition. (d) Should the regular pay day fall on a holiday or on days when the department or point is closed down, employees will be paid on the preceding day. (e) Where there is a shortage equal to one-half a day's pay or more in the pay of an employee, the employee will be reimbursed for such shortage as soon as possible. (f) Pay checks will include an itemized statement of all hours, wages, adjustment, and deductions for the pay period. (g) Employees leaving the service of the Company will be paid for all time due upon request at the earliest possible time after separation and in compliance with State Law. (h) Automatic changes in pay rate will be effective on the nearest date commencing a regular pay period. (i) An employee absent during his normal working day for the purpose of serving as a juror shall be entitled to his regular pay less any fee received for such service. An employee receiving summons shall notify his supervisor immediately, and shall 95 ARTICLE 21(I) (CONTINUED) provide his supervisor with written proof of time spent on jury duty, with actual dates and hours of service. If an employee is released from serving as a juror and does not receive a fee payment, he shall be entitled to his regular pay, provided he reports for work in accordance with the following: (1) Day Shift Employees Whether actually selected for jury service or not, employee is expected to report for duty if he is released sufficiently early in the day to permit three (3) or more hours of work. (2) Afternoon Shift Employees (a) If employee serves on jury duty for a full day, he will not be expected to work his shift on that day. (b) If an employee is released from service by noon he will be expected to work his shift on that day. However, if he is scheduled to report for jury duty on the following day, he will be released two (2) hours before the end of his shift. (3) Night Shift Employees If employee is required to report for jury duty on a given day, he will be excused from work on the shift immediately preceding. (j) An employee subpoenaed to serve as a trial witness shall be entitled to his regular pay during such authorized absence and shall report for work in accordance with the provisions of paragraph (1), (2), or (3) of (i) above, whichever is applicable. (k) Effective with the first payroll period commencing on or after the following dates, employees classified as mechanics or higher who hold and continue to hold a valid FAA mechanic certificate with an airframe or power plant rating (each rating considered as one (1) license) or a valid FAA General Radio-telephone operator license will be paid for each of two licenses held at these rates per hour. This premium shall be considered a part of the base rate for purposes of pay computation. Any employee who, as of October 31, 1981, possesses a First Class Radio-telephone license and renews that First Class license as a General Radio-telephone license will continue to receive two license premiums for the General Radio- telephone license. This premium will be considered as part of the base rate for purposes of pay computation. Current 8/1/99 8/1/00 First License $ .71 $1.00 $1.50 Second License .71 1.00 1.50 ----- ----- ----- $1.42 $2.00 $3.00 96 ARTICLE 21(K) (CONTINUED) (l) (1) Effective September 1, 1980, all employees shall receive one (1) cent per hour with a maximum of seventeen (17) cents for each .3 rise in the Consumer Price Index for Urban Wage and Clerical Workers (CPI-W) published by the Bureau of Labor Statistics based upon a comparison of the Index for the months of December 1979 and August 1980. (2) Effective September 1, 1981, all employees shall receive one (1) cent per hour with a maximum of eighteen (18) cents for each .3 rise in the Consumer Price Index for Urban Wage and Clerical Workers (CPI-W) published by the Bureau of Labor Statistics based upon a comparison of the Index for the months of December 1980 and August 1981. The cost of living adjustment shall, for pay purposes, be computed as part of the basic hourly wage rate. (m) Time off with pay (one day limit with exception for second day when evidence is submitted showing employee has been held over by induction center) for a military pre-induction physical exam which is scheduled on the employee's work day shall be granted by the Company. (n) Effective August 1, 2000 employees in the Mechanic and above classifications will receive a skill pay premium of $1.00 per hour. ARTICLE 22 APPRENTICESHIP PROGRAM Within thirty (30) days after the signing of this Agreement the Company and the Union will meet to discuss and to endeavor to agree upon the establishment of an apprenticeship program and such program as they mutually agree upon will be established. No apprentice mechanics will be employed by the Company until such a program is established. ARTICLE 23 GENERAL AND MISCELLANEOUS (a) Employees who have grown old in the service of the Company and become unable to follow their regular work to advantage shall be given preference of such light work as they are able to handle in their work classification. (b) Complete service files shall be maintained for all employees by the Company. In the event of disciplinary action up to and including discharge, the service file will, upon request, be made available to the employee and/or his District 142 representative (President-General Chairman or General Chairman) for review and inspection. An employee and his Local Union Representative will receive a copy of any record in the employee's file which may be construed as a criticism or reprimand of the employee. Any record placed in the employee's file as a criticism or reprimand shall be removed from the file after a two (2) year period from the date of issuance. 97 ARTICLE 23 (CONTINUED) (c) Any employee leaving the service of the Company will, upon request to the appropriate Regional Manager Employee Relations, be furnished with a letter setting forth the individual's qualifications and length of service. (d) In the event new equipment is put into service or existing equipment is technologically upgraded, affected employees shall be given every opportunity to become familiar with the new or upgraded equipment without change of classification or rate. (e) Except in the servicing of flights, no work shall be performed out of doors during inclement weather when shelter is reasonably available. (f) All orders or notices to an employee under this Agreement, involving a change in station assignment, promotion, demotion. furlough, and leave of absence shall be given in writing. (g) Foremen, Assistant Foremen, and higher ranking officials of the Company shall not be permitted to perform work on any hourly rated job covered by this Agreement except in emergencies or instruction or training of employees. It is agreed that the servicing of late flights where qualified personnel are not available, and the performance of necessary work caused by unusual circumstances at line service stations in order to maintain flight schedules, or the protection of Company property against the elements may be considered an emergency. (h) Bulletin boards will be provided by the Company in the vicinity of each locker or dressing room assigned to employees or at locations mutually agreed upon, marked "International Association of Machinists", for posting notices restricted to: 1. Notices of Union recreational and social affairs. 2. Notices of Union Elections. 3. Notices of Union appointments and results of Union elections. 4. Notices of Union meetings. 5. Official Union business of District Lodge 142. There shall be no general distribution or posting by employees of advertising or political matter or of any kind of literature upon the Company's property. (i) The Company shall provide each employee covered by this Agreement with a copy of the Agreement printed in a union shop and bound in a convenient pocket size booklet. (j) The Company will not lock out any employee covered hereby and the Union will not authorize or take part in any work stoppage, strike, or picketing of Company premises during the life of this Agreement, until the procedures for settling disputes involving employees covered by this Agreement and as provided by the Railway Labor Act have been exhausted. The Company reserves the right to discipline. 98 ARTICLE 23(J) (CONTINUED) including discharge of any employee taking part in any violation of this provision of the Agreement. Notwithstanding the foregoing, the Company will not require any employees covered hereunder to cross the picket line of Company employees who are engaged in a lawful strike under the Railway Labor Act. The individual or concerted refusal to cross such picket lines shall not constitute grounds for discipline or discharge or be considered a violation of this agreement. (k) No employee covered by this Agreement shall during working hours, engage in solicitation of membership for any Union, collection of dues, or other Union activity not provided for in this Agreement. (l) The Company may designate any employee covered by this Agreement who is in the guard or higher classification to relieve guards during lunch and rest periods. (m) In the event free parking facilities are not available for employees working at airport locations, the Company will assume the monthly parking charge up to a maximum of seven dollars ($7.00) per month assessed by the appropriate authority for parking in an area designated for employees. This provision does not apply to original or replacement charges to employees for parking decals, stickers, gate keys, or similar items. (n) The Company and the Union recognize the need for the District and Local Lodge(s) designated representatives to be off work periodically to handle official business of the Union. (The identity of the representatives shall be supplied in advance to the Company.) In recognition thereof the Company shall grant approved time off without pay for this purpose provided that sufficient advance notification has been given to the Company. ARTICLE 24 SAVING CLAUSE Should any part or provision of this Agreement be rendered invalid by reason of any existing or subsequently enacted legislation, such invalidation of any part or provision of this Agreement shall not invalidate the remaining portions thereof, and they shall remain in full force and effect. ARTICLE 25 GEOGRAPHICAL SCOPE OF AGREEMENT (a) This Agreement shall not apply to personnel based outside of the United States, its territories and possessions, within the jurisdiction of the Railway Labor Act, as amended, except as set forth in this Article. 99 ARTICLE 25 (CONTINUED) (b) An employee who has completed his probationary period under this Agreement and is subsequently sent abroad will retain and continue to accrue seniority provided the work performed during such overseas assignment is the same as that described in the job descriptions set forth under Article 4 of this Agreement. The seniority of all other employees on overseas assignment shall be governed by the provisions of Article 6(f)(19)(a). (c) Employees hired in the United States for Overseas assignments shall not be covered by the terms of this Agreement and shall not accrue seniority. (d) Employees returning from overseas assignment whose seniority will not permit them to return to the classification at the point from which they transferred overseas shall be furloughed. Such an employee, while still overseas will notify the Company at least twenty(20) days prior to the date of his return of his intention to exercise his seniority at the point from which he transferred overseas. Thereafter, in accordance with Article 6 (f)(10), the Company will give the employee ten (10) work days notice, or pay therefor, at the Company's option informing him that upon his return he will be reduced at the point from which he transferred overseas and that he has the following options: (1) Return to his prior domestic location and take furlough. (2) Exercise his 6(e)(4) system displacement rights. (3) Report back to his prior domestic location and be officially furloughed at that time. If the employee elects option 2 above, he must advise the Company in writing within three days of the points to which he wishes to system displace. The Company will advise the employee to report directly to the displacing location upon his return. If the employee elects option 3 above, upon his return to his prior domestic location he will be given a furlough letter and, should he at that time elect system displacement, will be off without pay until such a displacement can be worked. (e) Selection of employees covered by this Agreement for overseas assignment shall be made in a fair and uniform manner, with due regard for seniority and qualifications, and notices of openings and the names of the employees selected shall be posted on a system wide basis. Such selection shall not be subject to the procedures contained in Article 10, 11 and 12, provided, however that in the event of a dispute concerning such selection the President-General Chairman, District 142, may advise the Company's Director - Labor Relations, Ground, and the parties shall meet promptly to discuss the matter and review the action which occurred. (f) It shall be the responsibility, of the Company to notify employees in writing of their seniority status prior to being accepted for overseas assignment or of any change in assignment thereafter affecting the employee's seniority. Copies of the aforementioned 100 ARTICLE 25(F) (CONTINUED) notices will be furnished to the Union's President-General Chairman and the affected Local Committee Chairman and Financial Secretary. ARTICLE 26 UNION SECURITY (a) Each employee now or hereafter employed in any, classification covered by this Agreement shall, as a condition of continued employment, within sixty (60) days following the beginning of such employment or the effective date of this Article, whichever is later, become a member of, and thereafter maintain membership in good standing in the Union except as provided otherwise herein. Such condition shall not apply with respect to any employee to whom such membership is not available upon the same terms and conditions as are generally applicable to any other member of his classification (and at his point on the Company's system), or with respect to any employee to whom membership is denied or terminated for any reason other than the failure of the employee to tender his initiation, reinstatement, assessments, or dues uniformly required of other members of his classification (and at his point on the Company's system), as a condition of acquiring or retaining membership. The condition of payment shall be met if the amount due is tendered to the Local Lodge Financial Secretary of the Union in person or is mailed to him within the prescribed time limits or if the employee has executed a valid assignment and authorization for check-off of Union initiation, reinstatement, assessments and dues. For the purpose of this Article, "membership in good standing in the Union" shall consist of the payment by the employee not later than the last day of the following calendar month, of dues for each calendar month, initiation, reinstatement, fees and assessments (not including fines and penalties), which are uniformly required of members of his classification (and at his point on the Company's system) as a condition of acquiring or retaining membership; provided however, that the time limits prescribed in the preceding portion of this sentence shall not apply to employees beginning employment in work covered by this Agreement who shall, instead, be required to fulfill the requirements of "membership in good standing" within the sixty (60) day period following the beginning of such employment. Employees on leave of absence, including sick leave, must maintain membership in good standing in the Union. (b) Any employee who has not held membership in good standing with the Union at an time on or after the applicable date shown for his present classification and who was in the employ of the Company previous to such applicable date shall not be required, as a condition of continued employment, to become a member of the Union. However, any such employee who subsequent to the effective date of this Article and during the term of this Agreement joins the Union, must thereafter maintain his membership in the Union. This paragraph is applicable to the following classifications on the following dates: 101 ARTICLE 26(B) (CONTINUED) Classifications except janitor and Crew Chief janitor in Group #1 November 20, 1945 Crew Chief janitor and janitor April 5, 1948 Groups #2, #3 and #4 May 15, 1946 Group #5 September 23, 1949 Guards May 22, 1946 The classifications referred to above appear in Article 6 of the mechanic and related employees agreement dated August 25, 1966, and the guards agreement dated August 25, 1966. (c) Notwithstanding any other provisions contained in this Agreement, if any person is transferred or promoted to a position in which he is not covered by this Agreement, the provisions of the Union Security Agreement shall become inoperative as to him. However, this provision shall not apply to employees who retain and accrue seniority in accordance with the first sentence of Article 25(b). (d) (1) Persons on military leave holding seniority under this Agreement shall not be required to maintain good standing in the Union. However, when the employee returns to a position covered by this Agreement, he will assume his obligation to the Union and maintain good standing in the Union as if he had been continuously employed in such position from the effective date of this Article. (2) When a person holding seniority under this Agreement returns from a position in which he was not covered by the Agreement, he will assume his obligation to the Union within seven (7) calendar days after return in the same manner, as if he had been continuously employed in such position from the effective date of this Article. (e) When an employee begins employment or loses his good standing membership in the Union because of failure to pay dues and initiation, reinstatement fees and assessments, the following procedure shall be observed: (1) The Local Financial Secretary of the Union for the particular location involved shall notify the employee by registered or certified letter, return receipt requested, with copies to the President-General Chairman. District 142 IAM, 400 N.E. 32nd Street, Kansas City, Missouri 64116 and the Company's Director - Labor Relations, Ground, that the employee is delinquent in the payment of dues, initiation or reinstatement fees and assessment as specified herein and accordingly is subject to discharge as an employee of the Company. Such letter shall also notify the employee that he must make the required payment to the Financial Secretary of the Union's local lodge with jurisdiction at the location 102 ARTICLE 26(E) (1) (CONTINUED) where he works within fifteen (15) calendar days within date of mailing of the notice or agreement. If the employee does not keep both the Company and Union informed as to his correct mailing address, no extension of time set forth above shall be granted. (2) Upon expiration of the fifteen (15) day period following the mailing of the notice set forth above, if the employee still remains delinquent, the President-General Chairman of the Union may certify in writing to the Company's Director - Labor Relations, Ground, that the employee has failed to make the required payment within the fifteen (15) day grace period and is, therefore, to be discharged. (3) Within seven (7) days after receipt by the Company of the certified letter set forth in (2) above that the employee is to be discharged the Company shall discharge the employee from its service for failure to pay or tender dues, reinstatement or initiation fees or assessments under this Article. (f) If the employee discharged or to be discharged under this Article contends that he is not properly subject to discharge under the terms of this Article, he may protest such action to the TWA-IAM System Board of Adjustment provided that such protest in writing is mailed within seven (7) days after the employee is notified of such action. This protest shall be submitted in duplicate to the TWA-IAM System Board of Adjustment, with one copy mailed to the Director - Labor Relations, Ground, TWA, and the other copy mailed to the President-General Chairman, IAMAW, 400 N.E. 32nd Street, Kansas City, Missouri 64116. Both copies shall be sent by registered or certified mail return receipt requested. The last date of receipt of such written protest by the Board shall be considered the date of receipt. In the event no protest is to be filed within the above time limits, the action will be considered as proper and will be final and binding on all parties concerned. For the purposes of this paragraph (f) only, the System Board of Adjustment and procedures before the Board shall be as follows: The System Board of Adjustment shall consist of three (3) members, one (1) appointed by the Company, one (1) appointed by the Union, and a neutral member selected jointly by the Union and the Company. Even, reasonable effort shall be made by the parties to secure the neutral from the Kansas City Area to assure, as nearly as possible, prompt handling of each protest. The neutral member shall serve as Chairman of the Board. The Board shall have jurisdiction over all protests properly filed under this provision. Within five (5) days of receipt of request for such meeting the Board shall establish the date of hearing. When the protesting employee is employed at a point other than the Kansas City Area, the hearing date shall not be earlier than ten (10) days following the date of the request for meeting. When the protesting employee is employed within the Kansas City Metropolitan Area, such meeting shall not be earlier than seven (7) days following the request for meeting. Unless otherwise agreed by the Company and the Union, all meetings of the Board will be at Kansas City, Missouri. The protesting employee shall be advised in writing of the date and time of the meeting. At the meeting of the Board a representative of the Company, a representative of the Union, 103 ARTICLE 26(F) (CONTINUED) and the employee and/or his designated representative will be allowed to present to the Board all evidence and argument which is pertinent to the issue. A majority decision of the Board will be issued within five (5) days after the meeting and will be final and binding upon all parties concerned. The expenses and reasonable compensation of the neutral shall be borne equally by the parties. The provisions of Article 11 shall not apply to disputes arising under this Article, and the provisions of Article 12 shall apply to such disputes except as they are superseded by the above provisions relating to procedures for handling disputes. The effective date of an employee's discharge under this Article will be held in abeyance during the time that a dispute is unsettled as to whether or not the individual is properly subject to discharge under this Article. If a decision is made that the employee is properly subject to discharge, the discharge shall be effected the day following the issuance of the decision. In the event a reduction in force occurs during such time as an employee's status is under protest under the provisions of this Article, such employee will be considered as having seniority under this Agreement for purposes of effecting the reduction. (g) Time limits specified in this Article may be extended in individual cases only, and then only by written agreement between the Company and the Union. (h) An employee discharged under the provisions of this Article shall be deemed to have been "discharged for just cause" within the meaning of the terms of the Agreement. (i) All letters and notices provided for by this Article shall be sent by registered or certified mail, return receipt requested. Such letters and notices or copies sent to the Union shall be addressed to the President-General Chairman of the Union at 400 N.E. 32nd Street, Kansas City, Missouri 64116, while those sent to the Company shall be directed to the Company's Director - Labor Relations, Ground. (j) Nothing in this Article shall require the Company to terminate the employment of any employee until the services of a qualified replacement are available; except that the provisions of this paragraph will not permit the Company to retain an employee in its employment in excess of ninety (90) days from the date of the Union's original notice given pursuant to paragraph (e), Subsection (1) of this Article. (k) When an employee is discharged or resigns, he will be considered as a new employee for purposes of this Article if he returns, at a later date, to pay status under this Agreement. (l) Both the Union and the Company, or either of them, shall have the right at any time, to notify individual employees directly of any provisions of this Agreement. The Local Union Committee shall be notified of group orientation sessions for newly hired bargaining unit members and a member of the Committee shall be afforded an opportunity to meet with such employees during such sessions. 104 ARTICLE 26 (CONTINUED) (m) When employees are hired, returned from leave of absence (including medical), recalled after layoff, or transferred into classifications covered by this Agreement, the Company will furnish once each month to District 142, IAMAW, the names, classification, point of employment and payroll register number of such employees. In addition, at the time employees are hired or transferred into classifications covered by this Agreement or otherwise beginning employment under this Agreement, the Company will present to them and request them to complete the following notice: TRANS WORLD AIRLINES UNION REPRESENTATION NOTICE Name ------------------------------------------------------------------- Position --------------------------------------------------------------- Location --------------------------------------------------------------- Date Employed ---------------------------------------------------------- The position for which you are being employed is represented by the International Association of Machinists. The current Agreement requires that you must become a member of the Union within sixty (60) days from the date of employment and maintain such membership in good standing to continue employment in classifications covered by that Agreement. It is also required that you keep both the Union and the Company advised of any change in your address. You should study the Agreement in order to be familiar with all of its provisions. You will be introduced to your shop steward. Signed, Co. Rep. ------------------------------------------------------- Location Date ------------------------------------ ----------------- I understand that this notification serves to advise me regarding the requirement for Union membership and representation for the position in which I am to be employed. I also understand that application for membership is my responsibility. Employee's Signature Date ------------------- ---------------------- Street Address ----------------------------------------------- City State ------------------------- -------------------------- White - Personnel File Distribution Pink - Employee Buff - Local Lodge Fin. Secy. Form No. US-1 The Company will then provide one copy of such completed notice to the employee, one to the Local Lodge Financial Secretary and one for the Personnel File. In 105 ARTICLE 26(M) (CONTINUED) addition, the Company will furnish to the local Union and District 142, IAMAW, the names, present and previous classification, point of employment and payroll register number of all employees who may transfer out of classifications covered by this Agreement; in addition, the Company will furnish to the Union the names, location, payroll register number and status of employees covered by this Agreement, who terminate their payroll status for any reason, such listings will be furnished twice each month. (n) During the life of this Agreement, the Company will deduct from the pay of each member of the Union and remit to the Union monthly, membership dues, INITIATION OR REINSTATEMENT FEES, AND ASSESSMENTS uniformly levied in accordance with the Railway Labor Act, as amended, and the constitution and by-laws of the Union, provided such member of the Union voluntarily executes the agreed form, which is hereinafter included in this Agreement to be known as "Check-off Form", which shall be prepared and furnished by the Union. The Company will not be required to deduct monthly membership dues, initiation or reinstatement fees or assessments from the pay of employees covered by this Agreement unless (1) the Company has received a check-off form and has not received a notice of revocation thereof, and (2) the dues initiation or reinstatement fees or assessments for the employee conforms to the applicable rates for employees of his classification at his point on the system. ASSIGNMENT AND AUTHORIZATION FOR CHECKOFF OF UNION FEES AND DUES TO: TRANS WORLD AIRLINES, INC. I, , hereby assign to the ------------------------------------------- (Please Print) (Name) First - Middle - Last International Association of Machinists and Aerospace Workers: A sum of money to cover (initiation), (reinstatement), or (assessments) from the wages earned by me, an employee of Trans World Airlines, Inc. which sum is to be certified by the District Secretary-Treasurer of the Union. I also assign a sum to be designated by the District Secretary- Treasurer of the Union to cover standard monthly membership dues, or such monthly membership dues as may hereinafter be established by the Local Lodge, as dues for employees in my present or future classification under the Agreement from any wages earned by me or to be earned by me as an employee of Trans World Airlines, Inc., and I hereby authorize and direct Trans World Airlines, Inc., as my employer to deduct that amount from my first pay period following my sixtieth (60th) day of employment and remit the same to the District Secretary-Treasurer of the Union. This assignment and authorization shall continue in effect and be irrevocable for a period of one (1) year from the date hereof, or upon the termination date of the applicable labor agreement in effect at the time this authorization is signed, whichever occurs sooner. Such notice of revocation must be sent by me in duplicate by registered mail to the District President and General Chairman of the Union and Trans World Airlines, Inc. 106 ARTICLE 26(N) (CONTINUED) This authorization and direction is made subject to the provisions of the Railway Labor Act, as amended, and in accordance with existing agreements between the Union and the Company. Job Title ---------------------------------- Payroll Register Number Name of Location -------------------- (City & State) Hired for Employment Signature of Employee --------------------------------------------- Home Address ------------------------------------------------------ City State ------------------------------ -------------------------- Zip Code Date --------------------- -------------------------------- (o) When a member of the Union property executes such check-off form, the President-General Chairman of the Union shall forward the original signed copy to the Manager - Payroll. A check-off form must be completed in a legible manner or it will be returned to the President-General Chairman of the Union for correction. Any notice of revocation as provided for in this Article or the Railway Labor Act, as amended, must be in writing signed by the employee and two (2) copies delivered by registered or certified mail. Addressed to the President-General Chairman of the Union. Dues deductions will be continued until one (1) copy of such notice of revocation is received by the Manager - Payroll from the President-General Chairman of the Union. Check-off forms and notices received by the Manager - Payroll will be stamp-dated on the date received and will constitute notice to the Company on the date received and not when mailed. (p) When a check-off form as specified herein is received by the Manager - Payroll twelve (12) days or more before the issuing date of the first biweekly paycheck of the month or the first weekly pay check of the month at locations where weekly checks are issued. Deductions will commence with such paycheck and continue thereafter until revoked or canceled as provided in this Article. The Company will remit to the Union a check in payment of all dues collected as soon after the payday on which deductions were made, as practicable and within thirty (30) days. The Company remittance of Union membership dues to the office of the District Secretary- Treasurer of the Union will be accompanied by two (2) copies of a list for each location which includes (1) names (alphabetically), (2) employee register numbers, (3) location numbers, and (4) individual amounts deducted. (q) An employee who has executed a check-off form and who has been (1) transferred or promoted to a job not covered by the Agreement. (excluding transfers or promotions on a "Temporary" or "acting" basis), (2) who has taken a leave of absence without pay, (3) who quits or resigns from the Company, (4) who is laid off, or is (5) otherwise terminated from the employ of the Company, shall be deemed to have automatically 107 ARTICLE 26(Q) (CONTINUED) revoked his assignment as of the date of such action and if he (1) transfers back or returns to a job covered by the Agreement, (2) returns from leave of absence, (3) is rehired, (4) is recalled or (5) re-employed, further deductions of Union dues, will be made only upon execution and receipt of another check-off form. (r) Collection of initiation or reinstatement fees and assessments. As well as any back dues owed at the time of starting deductions for an employee, collection of dues missed because the employee's earnings were not sufficient to cover the payment of dues for a particular pay period, and collection of dues missed because of accidental errors in the accounting procedure, will be the responsibility of the Local Lodge Financial Secretary and will not be the subject of payroll deduction. It will be the Union's responsibility to verify apparent errors with the individual Union member before the Union's District office representative contacts the Company's Manager - Payroll. (s) Deductions of membership dues shall be made from one (1) paycheck each month provided there is a balance in the paycheck sufficient to cover the amount after all other deductions authorized by the employee or required by law have been justified. In the event of termination of employment, there shall be no obligation of the Company to collect dues until all such other deductions (including money claims of the Company and the Credit Union) have been made, and such obligation to collect dues shall not extend beyond the pay period in which the employee's last day of work occurs. TWA agrees that payment of dues funds shall be received by District Lodge 142 in the Kansas City office as soon as possible based on payroll system information but in no event later than the twenty-fifth (25) day of the month. (t) This Article shall be in force only so long as the Union continues as the recognized representative of the employees under this Agreement. (u) The Union shall indemnify and save the Company harmless against all forms of liability that shall arise out of or by reason of action taken by the Company, which action was requested by the Union under the provisions of this Article. It is agreed that the Company will promptly notify the Union of all claims of liability made against the Company pursuant to such action taken by the Company, and the Company will make every reasonable effort to defend itself against such liability. (v) For the purpose of computing the time limits prescribed in this Article, the term "days" shall be understood to mean calendar days unless otherwise specified. 108 ARTICLE 27 LAYOFF PAY (a) An employee who is laid off shall receive layoff pay as provided in paragraph (c) of this Article, subject to the limitations and conditions set forth herein. (b) An employee will not be eligible for or receive layoff pay if any of the following conditions exist: (1) He has not completed at least one (1) year with the Company, on pay status, in a position covered by this Agreement. For the purpose of this paragraph (b)(1), "Pay Status" includes all time spent in a position covered by the particular agreement, exclusive of leaves of absence or furlough. (2) He remains in the employ of the Company in any position. (3) He fails to exercise his seniority which would enable him to remain in the employ of the Company, except where such exercise of seniority would require moving to a new point. (4) He has been laid off as a result of an Act of God, a war emergency, revocation of the Company's operating certificate or certificates, or grounding of a substantial number of Company aircraft for safety reasons. (5) He is dismissed for cause, resigns, or retires. (6) There is a temporary cessation of work because of a strike or picketing. (7) There is a temporary cessation of work because of circumstances beyond the Company's control. (c) (1) The amount of layoff pay due under this Article shall be based on the length of actual straight time compensated service with the Company under this Agreement, and shall be computed on the basis of the employee's regular straight time basic hourly rate at time of layoff. An employee shall accrue layoff pay credit at the rate of two (2) weeks of credit for the first through the second full year of compensated service; thereafter, accrual shall be at the rate of one (1) week credit for each additional full year of service, to a maximum accrual of twelve (12) weeks of credit for twelve (12) or more full years of compensated service. For the purpose of this paragraph (c), the amount of layoff pay will be computed upon the basis of the total number of straight time hours of compensated service, but not to exceed 24,960 hours. Each 2,080 hours remaining after computing and paying the number of full weeks of layoff pay due shall be left standing to the employee's credit pending recall. The remaining hours shall be added to the straight time hours of compensated service earned after recall and used to compute weeks of layoff pay in the event of future furlough, but the total of these hours shall not exceed 24,960. 109 ARTICLE 27 (CONTINUED) Effective with the first anniversary of the ratification date of this agreement, employees with fifteen (15) or more full years of compensated service will accrue one additional week of layoff pay. (2) If an employee is involved in more than one furlough, no re- qualification will be necessary provided such employee completes at least one additional year of active service with the Company under the Agreement from the date on which the employee reported for duty upon the occasion of the prior recall. (d) An employee laid off shall receive layoff pay starting at time of layoff and payments for the amount due shall be at regular pay periods and continue until all layoff pay credit is used; except that in no event shall any layoff pay be due after effective date of recall by the Company in any position. (e) The layoff allowance provided herein shall be in addition to any or all other benefits provided under this Agreement. 110 ARTICLE 28 LETTERS AND AGREEMENTS In addition to the letters and agreements printed in this Article, it is understood and agreed that the following letters and agreements will remain in effect: (a) All local field service agreements currently in effect on the System; (b) Local letters, agreements, procedures and practices in effect on the System as of January 1, 1969, regarding selection of employees for overtime and/or holiday coverage; (c) The following letters and agreements: SUBJECT PAGE Metropolitan Area Bidding Agreements 114 Lead Systems Technician 115 Aircraft Acceptance Notification 120 Aircraft Acceptance Inspectors 121 Crew Chief Supplemental Agreement 122 Crew Chief Concept Implementation 124 Crew Chief Responsibilities 125 Assistant Ramp Service 126 Inspector Designees 129 Taxiing 130 Building Maintenance and Repair Work 131 Metric Tools 132 Snow Removal 133 Two-Way Radio - Ramp Communications 134 Stores Clerk Staffing 135 Stores Coverage 136 Stores Clerks 137 Stores Clerk Overhaul Base 139 Staffing at TWTTA 140 Cargo Warehouses 141 Receipt of Air Freight 142 SFO Staffing 143 Janitorial Functions 144 Pass Issuance 145 7 Term Pass Holders 146 Pass Policy 147 Disciplinary Action 148 Investigative Reports 149 Payroll Information Records 150 Lunch Period for Guards, etc. 151 111 SUBJECT PAGE Consolidation of Ground Service with Ramp Service 152 Fueling Letter for KCI and DEN 153 Attendance Hearings 154 New Contract or Lease Arrangements 156 Vacation Banking 157 401K Plan 158 Amendment to 401K Plan 159 Implementing Basic Retirement "A" Plan 160 Implementing the Retirement "B" Plan 164 Retirement Benefits Full-Time District 142 Staff IAM Grand Lodge Staff 165 Metropolitan Area Temporary Re-Assignment 167 Laid Off Employee Examinations 168 Maintenance of Security Equipment 170 Crew Chief Systems Technician Coverage 171 Maintenance Evaluation Committee 172 Overhaul Base Work Transfer Committee 173 Disability Income 175 Payroll Deductions - Political Action Fund 176 Elimination of Classification At a Point - Moving Expenses 177 Application of Agreement at New Stations 178 Guard Staffing - JFK 179 Filling Crew Chief Openings 180 Lay-Off of Crew Chief vis-a-vis Basic Classification 181 Receipt and Dispatch 182 Worker's Compensation Controverted Claims 183 Greasing and Oiling Ground Equipment 184 Station Staffing Review Committee 185 Emergency Overtime Procedures 186 Mechanic Examinations 187 Training Programs 188 Transitional Duty 189 Warranty - Aircraft Parts and Components 190 Metal and Machine Shop Specialties - STL 191 Recognition - IAM 192 Avionics Specialty - RE&I Combination (Mechanic, Inspector, LST) 193 Plant Maintenance Electronics Specialty - MCI 198 Drug and Alcohol Policy 200 Labor Advisory Board 203 Collective Bargaining Agreement Supplement (Protective Covenants) 205 Cross Utilization between Ramp Service Seniority Groups 206 Full Time Committee Staffing 207 Shift Staffing Deviation Assistant Ramp Service 208 Assistant Ramp Service and Part Time Guard Benefits 209 112 SUBJECT PAGE Assistant Ramp Service and PT Guard Vacancies at a location 210 Assistant Ramp Service and PT Guard Vacancies 211 Additional Staffing Third Party Contract Work 212 Assistant Ramp Service and PT Guard Expirations 213 Meal Pickup and Delivery JFK/LAX 214 Dining Units 215 Furloughed Dining Unit Employee Currently Accruing Seniority under M&R Agreement 216 Furlough Dining Unit Employees 217 Dining Unit Employees 218 Dining Unit Stores Clerks 219 Medical/Dental Coverage Emergency Out of Network 220 Modification of Local Overtime Agreement 221 Air Freight - SEA - ATL 222 MD 80 Landing Gear 223 757 Engine Review 224 Status of Agreement 225 Unused Sick Leave 226 Ground Equipment Field Service 227 Company Seniority Date 228 Recall Right 229 Consolidation of Fire Inspector Classification 230 Fire Inspector 231 Field Service Inspector 232 Stock Distribution Letter 233 Focus Stations 234 Regional Jets/Code Sharing 235 Chicago Air Freight 239 Back Pay Bonds 240 Covenants 242 IAM National Pension Plan 245 113 April 10, 1992 Mr. William O'Driscoll President - Directing General Chairman District Lodge 142 International Association of Machinists and Aerospace Workers 400 N.E. 32 Street Kansas City, Missouri 64116 Dear Mr. O'Driscoll: This will confirm our agreement reached during negotiations that there are currently four (4) Metropolitan Areas covered by the Mechanics and Related Employees Agreement. These areas are: San Francisco (SFO-OAK), Kansas City (MKC-KCI), Chicago (ORD-MDW), and New York (JFK-LGA-EWR). Each Metropolitan Area is considered one point under this agreement. All work at each location at the point covered by this agreement will be performed by the appropriate classification at the point. With the exception of New York, each location within the Metropolitan Area is regarded as a separate station for purposes of bidding. Accordingly, an employee bidding for one of these three (3) Metropolitan Areas must be specific as to location desired. In the event he desires to transfer to a Metropolitan Area, but has no specific choice of location, he should place a bid for each location. Under historical practice, all locations within the New York Area are regarded as a single station. An employee bidding to the New York Area is permitted to select his location (LGA-EWR or JFK) upon arrival at New York, seniority permitting. At the time an employee places a bid for New York he is not privileged to specify location within the Metropolitan Area, but will be privileged to exercise seniority for location upon arrival in the area. Very truly yours, /s/ William L. Schecter William L. Schecter Staff Vice President Labor Relations Agreed and Accepted: /s/ William O'Driscoll William O'Driscoll 114 LEAD SYSTEMS TECHNICIAN The Company and the Union hereby agree to maintain the classification of Lead Systems Technician. The following Supplemental Agreement is intended to express the understanding of the parties with regard to such classification. (1) The responsibilities of a Lead Systems Technician will fall into one of four designated specialty categories, which are: Systems- Structures, Power Plant, Systems-Structures/Power Plant, and Avionics (Electrical/ Electronics). Personnel selected for a given specialty category(s) must have and maintain valid license(s) as follows: Systems-Structures FAA "A&P" Power Plant FAA "A&P" Systems-Structures/ Power Plant FAA "A&P" Avionics (Electrical/ FCC 2nd Class Radio Electronics) Telephone or higher (2) (a) A Lead Systems Technician will be provided with the necessary training to enable him to carry out his responsibilities as referred to in paragraph (1) above in the appropriate specialty category(s). Such training may be conducted at his assigned location, at a manufacturer's plant or at another location by regular TWA and/or factory instructor. (b) Upon selection as a Lead Systems Technician, an employee will normally receive initial training in the amount of 120 hours of classroom training by a regular TWA Instructor and/or factory instructor, and on-the-job training as necessary which may initially be provided by a Specialty Foreman and subsequently by a Lead Systems Technician in the same specialty category. Additionally, the Lead Systems Technician will receive training as required when: (1) There has been a major change in the systems and or components of the aircraft systems to which he is assigned. (2) After working at a location or locations where an aircraft type or model does not operate to or through and which will start operation to or through his assigned location and/or when he moves to a location to or through which a type or model of aircraft operates on which he has not received training in the past two (2) years. (3) When a new model aircraft enters the service of the Company on which he has not received previous training and which will operate to and/or through his assigned location. 115 (4) There has been a combination of the specialty to which he is assigned with another specialty, as mutually agreed to by the Company and the Union. (c) Following initial training and/or recurrent training by regular TWA instructors and/or factory instructors on an aircraft system or function, the Lead Systems Technician will be required to pass written tests with passing grades as agreed upon by the Company and the Union. In the event that a Lead Systems Technician fails to pass a required test, he may request that the results of his examination be inspected by a person(s) to be designated by the President- General Chairman of District 142. (d) A Lead Systems Technician will be expected to stay abreast of technical information published by the Company and applicable to those aircraft and/or systems on which he has received training pertaining to his specialty. Examples would be Engineering Change Orders, Maintenance Service Letters, Special Checks, Special Inspections and other specifically pertinent information. (3) All provisions of the Basic TWA-IAM Agreement (hereinafter referred to as the Basic Agreement) will be applicable to the classification of Lead Systems Technician, except as modified by this Supplemental Agreement. (4) (a) To be eligible for the position of Lead Systems Technician an employee must: (1) currently be engaged in aircraft maintenance work under the Basic Agreement as a Mechanic or Crew Chief Mechanic, Inspector or Crew Chief Inspector, Flight Simulator Technician or Crew Chief Flight Simulator Technician, or Crew Chief Systems Technician, and must have been engaged in such work for the past five (5) consecutive years or more; and, (2) possess the applicable license(s) outlined in paragraph (1) above. (b) The senior employee(s) eligible in accordance with paragraph (4)(a) above submitting a bid shall be required to take and pass the applicable entrance examination(s) before being named successful bidder. The entrance examination(s) and passing grade(s) shall be agreed upon by the Company and the Union. There will be separate examinations for each specialty category referred to in paragraph (1) above. (5) (a) Article 10(c) of the Basic Agreement shall not apply to this Supplemental Agreement. (b) Article 10(B)(13) of the Basic Agreement shall not apply to this Supplemental Agreement. (c) Article 10(a)(9) and 10(b)(5) of the Basic Agreement shall not apply to this Supplemental Agreement and shall be replaced, for the purpose of this Supplemental Agreement only, by paragraph (5)(d) below: 116 (d) Except as provided in paragraph (7) below, any Lead Systems Technician vacancy(s) which is not filled locally under the provisions of Article 10(a)(5) of the Basic Agreement will be bulletined only at the point where the vacancy exists and will remain on the board for fifteen (15) calendar days, and, if not filled locally within forty-five (45) calendar days after the bulletin is posted, the vacancy(s) will then be filled from preference bids of employees on file from other points as provided in Article 10(a)(5), (6), (7) and (8) of the Basic Agreement. If not filled under the provisions of this paragraph (5)(d) as outlined above the vacancy would then be bulletined at all points where employees covered by the Basic Agreement are located. Each bulletin will state the number of jobs to be filled, the specialty category applicable to each job, the point (location), the date the successful bidder is expected to report, and shall specify a final date after which bids will not be considered. Such date shall be not less than fifteen (15) calendar days after the bulletin is posted. (e) Article 10(b)(14) of the Basic Agreement shall not apply to this Supplemental Agreement. (f) Article 10(b)(15) of the Basic Agreement shall not apply to this Supplemental Agreement, and shall be replaced, for the purpose of this Supplemental Agreement only, by paragraph (5)(g) below: (g) After an employee has been chosen to fill a job, the proper officials of the Company shall mail to the President-General Chairman and all shops and locations a notice to be posted on the bulletin boards showing the name, number of openings, location, and seniority date of the employee(s) selected to fill the job. Such notice shall be mailed within seven (7) calendar days after the successful bidder is selected. (h) For the purpose of this Supplemental Agreement only the words "ninety (90) days" as they appear in Article 10(b)(16) of the Basic Agreement shall be replaced by the words "one hundred and eighty (180) days." (i) The third sentence of Article 10(b)(19)(b) of the Basic Agreement shall not apply to this Supplemental Agreement. For the purpose of this Supplemental Agreement only, wherever the word "committee" is used in Article 10(b)(19) of the Basic Agreement, such word shall be replaced by the words "Special Technical Review Committee." (j) The requirements referring to completion of "Mechanic's Examination(s)" as set forth in the Basic Agreement shall not apply to an employee promoted to Lead Systems Technician or laterally transferring between a Lead Systems Technician specialty category or categories. However, he will be required to pass the applicable entrance examination(s) as referred to in paragraph (4) of this Supplemental Agreement. Employees reduced or bidding down will be required to meet the license(s) and/or examinations requirement as set forth under the Basic Agreement. 117 (6) (a) Lead Systems Technicians will be selected by basic Mechanic Seniority. (b) The position of Lead Systems Technician shall be added to the classifications listed in Article 6 of the Basic Agreement. (c) Lead Systems Technician seniority will not be used to displace on the system except as provided in paragraph (7) below. (d) Article 6(f)(12) of the Basic Agreement shall not apply to employees promoted to the Lead Systems Technician classification, laterally transferring between the specialty categories in such classification, reduced from such classification, or recalled to such classification. (7) Any change in the requirements of the service for the LSTs will be governed by the following: (a) When any changes in the level of LST staffing at any location/point or in any LST specialty are contemplated, the Company will notify the Union and the parties will mutually agree as to whether such changes are needed. The Company will not request such changes unreasonably and the Union will not unreasonably withhold its agreement. If TWA establishes an additional hub, technical service station and/or integrates an airline acquired by merger, acquisition or otherwise, the parties will mutually agree upon appropriate LST staffing at these new facilities using 8(d) below as a guide. (b) (1) The affected LSTs may elect to relocate to the location where additional LSTs are required or to any vacancy in the LST classification at another location if qualified. (See paragraphs 4(a) and 4(b) above.) Should the affected LST elect to relocate, he will be allowed either actual moving expenses for household effects up to a maximum of 3,000 pounds gross weight for a single employee and up to a maximum of 8,000 pounds gross weight for an employee with one dependent plus an additional 500 pounds gross weight for each additional dependent or a sum of money equal to the existing tariff for moving 5,500 pounds of household effects between the two points. If the employee elects to drive his own automobile to the point he shall be reimbursed at a mileage rate equal to the amount allowed by the federal government for federal employees for the most direct AAA mileage between the points from and to which he is being transferred. plus en route expense at the rate of one dollar and fifty cents ($1.50) per hour (based upon 400 miles travel per day). An employee who does not drive to his new point will be allowed enroute expenses for twenty-four (24) hours at one dollar and fifty cents ($1.50) per hour. Additionally, an employee will be allowed $300 relocation expense. (2) Should the affected LST elect not to fill a vacancy, Article 6(e)(4), (5) and (6) of the Agreement shall apply. An LST who elects to displace on the system may do so in his own specialty or any other specialty in which he is qualified. (See paragraph 4(a) and 4(b).) 118 (8) (a) The provisions of Article 7 of the Basic Agreement shall apply, except that Lead System Technician(s) may have scheduled shift starting times thirty (30) minutes prior to the regular shift starting time of other employees in the Mechanic or higher classification to provide coordination time with the Lead Systems Technicians whom he is relieving. Depending upon the requirements of the service, Lead Systems Technician(s) may be required to extend their shift thirty (30) minutes to provide necessary technical knowledge and guidance to other classifications. For the purpose of this thirty (30) minute time only, the provisions of Article 8(a) shall be amended to provide for a minimum of thirty (30) minutes overtime. (b) The Company may establish rotating shift schedules for Lead Systems Technician(s) in accordance with the provisions of Article 19(a), (b), (c), and (d)(3) of the Basic Agreement. (c) The provisions of Article 16 of the Basic Agreement shall apply, except that for the purpose of vacation selection, Lead Systems Technician(s), at a point and/or location, shall be considered as one seniority grouping within a classification. When, because of the limited number of Lead Systems Technicians at a location, it is necessary to combine Lead Systems Technician specialties for the purpose of vacation selection, such vacation selection will be handled in accordance with the provisions of Article 16(m), except that the Union recognizes the Company's right to limit the number of employees in a specialty that may be on vacation during a given period. (d) The classification of Lead Systems Technician shall be operative at points/locations designated as JFK, LAX, MKC (MCI Major Base Maintenance which replaces MKC), MCIB (MCI Overhaul Base) and STL. (e) The Classification of Lead System Technician will be staffed in accordance with the needs of the operation at the points/locations specified in paragraph 8(d) above. (f) Lead Systems Technician(s) will be assigned at any point/location not mentioned in paragraph (8)(d) above where Specialty Foremen continue to be assigned. (g) Lead System Technicians at MCI. MBM and MCIB may be used at either location as determined by the Maintenance Department. Dated: August 1, 1999 /s/ Linda L. Ferchland /s/ Ed LaClair 119 April 10, 1992 Mr. William O'Driscoll President - Directing General Chairman District Lodge 142 International Association of Machinists and Aerospace Workers 400 N.E. 32 Street Kansas City, Missouri 64116 Dear Mr. O'Driscoll: During the course of negotiations which led to the Agreement dated April 10, 1992, the parties agreed that the Company will notify the President- Directing General Chairman, District #142 or his designated representative as soon as possible following the Carrier's receipt of notice of the acceptance date(s) of new or leased aircraft which it obtains. Very truly yours, /s/ William L. Schecter William L. Schecter Staff Vice President Labor Relations Agreed and Accepted: /s/ William O'Driscoll William O'Driscoll 120 January 28, 1970 Mr. David J. Crombie Vice President-Industrial Relations Trans World Airlines, Inc. 605 Third Avenue New York, New York 10016 Subject: Aircraft Acceptance Inspectors Dear Mr. Crombie: Employees accepting temporary transfer to "Aircraft Acceptance Inspectors" will continue to accrue seniority while so assigned, provided they maintain membership in good standing as defined in Article 26(a). An employee returning from such temporary assignment shall return to the point, location, classification, and seniority grouping from which transferred, seniority permitting, and displace the least senior employee and exercise seniority for shift and days off assignment. Selection of employees for acceptance inspection and/or retention in such work will be made from among TWA Inspectors in order of seniority to the extent practical. If any employee requests an explanation for refusal to accept or retain him in such assignment it will be furnished. Acceptance inspection work on new aircraft being constructed for delivery to TWA is not covered by the TWA-IAM Agreement, and the experience gained during the special assignment will not be used to the disadvantage of other employees in connection with work covered by the TWA-IAM Agreement. This letter cancels and supersedes the letter dated January 2, 1964, from Mr. Cliff Miller to Mr. John P. Mead. Very truly yours, /s/ John J. Schwind John J. Schwind President - General Chairman District Lodge 142 International Association of Machinists Agreed and Accepted: /s/ D. J. Crombie D. J. Crombie 121 CREW CHIEF SUPPLEMENTAL AGREEMENT The Company and Union hereby agree to implement a Crew Chief concept. A Crew Chief shall be responsible for the leading, directing, and assigning the work of his crew. It is recognized that the establishment of the classification of Crew Chief and the implementation of the Crew Chief program may expose the parties to those problems associated with the inauguration of any system. Therefore, each of the parties has reserved the right to bring any problems associated with the implementation of this program, whether or not such problem was the subject of discussion during these negotiations, to the attention of the other party. Upon setting forth, in writing, the problem or problems involved the parties will, within thirty (30) days of receipt of such notice, convene a meeting for the purpose of resolving the issue. The Crew Chief shall be responsible to management for the overall performance of the employees assigned to his crew and the timely and satisfactory completion of work assignments by insuring that: A. Management instructions are promptly and correctly complied with. B. Employees assigned to his crew are properly utilized and instructed for the safe and efficient performance of their daily work. C. Work assignments are carried out in compliance with operational and safety procedures required by the policies of the Company and appropriate Governmental Regulations. D. Required forms, records, reports and other paperwork are completed legibly and corrective. E. Employees assigned to his crew use only those vehicles, tools and equipment on which the Company has determined such employees to be qualified. F. Assigned equipment is in proper operating condition, scheduled for maximum utilization and operated properly for the purpose intended. G. Hazardous conditions, unsafe practices, improperly functioning equipment and tools are immediately brought to the attention of management for appropriate corrective action. The Crew Chief shall be responsible to management for insuring compliance with all Company, policies, while on the job by, those employees assigned to him. 122 In addition to the above, the Crew Chief shall, upon request, assist management in areas such as, but not limited to: A. Periodic evaluation of operational requirements and performance. B. Operational planning and scheduling. C. Evaluation of training methods and techniques. D. Evaluation of equipment, vehicles and tools. E. Performance appraisal of employees by providing oral advice and comments. Crew Chiefs will be selected in accordance with the seniority and bidding procedures of this Agreement. When an aircraft is being returned to service, and there is a need for coordination beyond the scheduled shift involving flight control rig checks, landing gear rig checks, or avionics system checks, a Crew Chief (Mechanic) assigned to a particular aircraft may be required to continue that assignment on overtime notwithstanding the provisions of the local overtime agreement. The Department Steward will be timely notified of the assignment. The overtime worked will be recorded for distribution purposes. In conjunction with those duties outlined in the Crew Chief job descriptions, the Crew Chief will be responsible for the planning and assigning of the daily work of his crew. In order to facilitate this process, the Company may require the Crew Chief to start work up to thirty (30) minutes in advance of the starting time of his basic shift. When this occurs, the Crew Chief will be paid at the overtime rate for actual time of early report. Dated: April 10, 1992 /s/ William L. Schecter /s/ William O'Driscoll 123 April 10, 1992 Mr. William Schecter Staff Vice President Labor Relations Trans World Airlines, Inc. 110 South Bedford Road Mt. Kisco, New York 10549 SUBJECT: CREW CHIEF CONCEPT Dear Mr. Schecter: This will confirm our agreement that the crew chief concept will be implemented in total one hundred eighty (180) days after the signing of this agreement- During this one hundred eighty (180) day period, all Crew Chiefs in all classifications will be trained in the crew chief concept. All crew chief work/functions performed by supervisors and management will be transferred to the Crew Chief no later then the implementation date. The crew chief concept will function in accordance with all the requirements of the collective bargaining agreement. Very truly yours, /s/ William O'Driscoll William O'Driscoll President General Chairman Agreed and Accepted: /s/William L. Schecter William L. Schecter 124 April 10, 1992 Mr. William O'Driscoll President - General Chairman District Lodge 142 International Association of Machinists and Aerospace Workers 400 N.E. 32 Street Kansas City, Missouri 64116 Re: Crew Chiefs Dear Mr. O'Driscoll: This letter will clarify the parties' intent concerning the implementation of the Crew Chief Concept. The parties in reaching this Agreement have emphasized the Crew Chief's responsibilities for the routine direction of the employees assigned to him. The Crew Chief will be the individual who is primarily responsible for the direction of the employees covered by this Agreement. The making and revising of individual assignments to the work force shall be accomplished by a Crew Chief. If the Crew Chief is unavailable in point of time adequately to handle a situation the making or revising of an individual work assignment may be accomplished by management. In the event of conflicting orders, the responsibility shall be assumed by the last individual issuing such order. The supervision of the work force is ultimately the responsibility of management. Very truly yours, /s/ William L. Schecter William L. Schecter Staff Vice President Labor Relations Agreed and Accepted: /s/ William O'Driscoll William O'Driscoll 125 ASSISTANT RAMP SERVICEMEN This will confirm our understanding reached during negotiations concerning TWA's competitive need to employ assistant ramp servicemen in order to meet staffing requirements for operational peaks. It is the intention of the parties that all of the provisions of the basic agreement shall apply to such employees except as follows: 1. Prior to the staffing of assistant ramp servicemen at a point. the Company will notify and consult with representatives of the Union to review staffing requirements in accordance with the provisions of this Letter. 2. The Company will not staff assistant ramp servicemen at a location unless and until all full-time ramp service employees are recalled at that point. Further, any subsequent reductions in the work force due to operational requirements at that point will be accomplished from among assistant ramp servicemen, in accordance with Article 6 of the Agreement, before any full-time ramp service employee is reduced or furloughed. 3. Qualified employees covered by the TWA-IAM Agreements desiring to bid to assistant ramp service vacancies may do so in accordance with Article 10 of the Mechanic and Related Employees Agreement. A successful bidder who fills an assistant ramp service vacancy will retain and continue to accrue seniority in the ramp service classification and any classification below ramp service in which he holds seniority at the one-half accrual rate described in paragraph 11 of this letter of agreement. The moving expense provisions of the TWA-IAM Agreement will not be applicable to assist ramp service vacancies. 4. The number of assistant ramp service employees hired pursuant to this letter will not exceed 10% of the ramp service employees staffed on a full-time basis at each point and shall not exceed 10% at the location in a metropolitan area. Any fraction will be rounded up to the next whole number. The Company will be permitted to staff at least three (3) assistant ramp service employees at any location. 5. Assistant ramp servicemen will be assigned to ramp service crew chiefs who will Crew Chief and direct assistant ramp servicemen in accordance with all of the provisions of the Agreement covering ramp service crew chiefs. Assistant ramp servicemen will not be eligible for Acting Crew Chief Assignments provided for in Article 10(c). 6. An assistant ramp service employee's hours shall consist of twenty (20) hours of five (5) four-hour days worked within seven (7) consecutive days. Midnight Sunday to midnight Sunday will constitute a regular work week. Each assistant ramp serviceman will have two (2) consecutive days scheduled as regular days off in each work week. 7. A maximum of two (2) shifts during a twenty-four (24) hour period, which shall have a minimum separation of four (4) hours, may be established at each location for assistant ramp service employees. Assistant ramp servicemen will bid these shifts by classification separately from ramp service shifts. 126 8. An assistant ramp serviceman will receive a ten (10) consecutive minute rest period during his regular shift. 9. Assistant ramp servicemen will not be offered extended work hours in addition to their regular work schedule or overtime hours unless sufficient overtime of the duration needed (day off, post shift, pre-shift or recall) is first offered and filled by, full- time ramp servicemen in accordance with Article 8 and prevailing local overtime agreements. 10. Assistant ramp service employees will receive overtime compensation in accordance with Article 8 for work in excess of eight (8) hours in a work day or forty (40) hours in a work week. 11. Seniority: A separate seniority roster will be maintained for assistant ramp servicemen. Seniority dates will be established in accordance with Article 6 and 10 of the TWA-IAM Agreement. Assistant ramp service employees shall accrue seniority at the rate of half of a full-time employee. Seniority will accrue at one-half the regular rate for purposes of bidding, vacation accrual, sick leave, occupational injury leave and layoff pay. The one-half accrual rate will be based on the employee's regular work schedule. Assistant ramp servicemen will be subject to a one hundred and twenty (120) calendar day probationary period. 12. An assistant ramp serviceman will be eligible to bid for vacancies in the mechanic classification or lower (and if he does not hold seniority in the classification into which he desires to transfer, he may submit a company seniority bid). In filling vacancies, company seniority bids of full-time employees at the point and company seniority bids of full-time employees at other points will be given preference over company seniority bids of assistant ramp servicemen at the point. Such bids shall be handled in the same manner as set forth in Article 10(b)(1) and Article 10(b)(2). 13. Assistant ramp servicemen will not have system seniority rights for displacement purposes. 14. Benefits: Assistant ramp servicemen will be allowed sick leave based on the accrual rates outlined above and in accordance with Article 17. Assistant ramp service employees will receive the same benefits as the full-time ramp service employee except that during their probationary period medical/dental insurance will not be provided for dependents. Pension benefits for assistant ramp servicemen will be determined as defined under the provisions of the Retirement Plan for Mechanics and Related Employees. 15. Wages and Premiums: Assistant ramp servicemen will be paid as provided in Schedule A of the TWA-IAM Agreement. 127 Assistant ramp servicemen will not receive premium pay described in Articles 18 and 19 of the TWA-IAM Agreement. If an assistant ramp service employee transfers to a full-time position, he will begin receiving longevity premium based on his seniority accrual described in paragraph 11 above. 16. Any deviation of the staffing of assistant ramp service employees at an location as provided for in this agreement may be made when agreed upon by the President-General Chairman of District 142 and the T.W.A. Senior Vice President of Labor Relations. Such deviation is subject to a 30-day cancellation notice by either party. Dated: April 10, 1992 /s/ William L. Schecter /s/ William O'Driscoll 128 January 28, 1970 Mr. John J. Schwind President-General Chairman District 142 International Association of Machinists and Aerospace Workers 206 E. 32nd Avenue Kansas City, Missouri 64116 Dear Mr. Schwind: This will confirm the understanding reached between the Company and the Union during the negotiation of the TWA-IAM Agreement signed January 28, 1970. At locations where the Inspector classification is not presently employed, there will be established, as required, Inspector Designee(s). The number of shift(s) on which such Inspector Designee(s) are required will be determined by the Company and they shall be selected, in seniority order, from mechanics on such shift(s) holding A&P or other appropriate license(s). In the event senior employees do not exercise their seniority for this assignment the least senior employee(s) who meets the above license requirements will be assigned. The employee(s) so assigned will receive 15 cents per hour to be included in his basic rate for as long as he remains on that shift as an Inspector Designee. The Company may appoint Inspector Designee alternates, on a one for one basis per shift, who will function in the absence from duty of their respective Inspector Designee(s). The Designee alternate will receive 15 cents per hour in addition to his basic rate for all hours worked on required inspection items, with a minimum of four (4) hours on each occasion. Inspector Designee assignments on through flights may be performed by the senior Crew Chief Mechanic on duty if neither the Inspector Designee nor his alternate is present. In this event such senior Crew Chief Mechanic will receive 15 cents per hour in addition to his basic rate for all hours worked on required inspection items, with a minimum of four (4) hours on each occasion. No employee will be delegated the authority as Inspector Designee or Inspector Designee alternate for a period of less than thirty (30) calendar days. The use of the Inspector Designee will not circumvent the assignment of regular inspectors when this classification is required under the terms of the Agreement. Sincerely yours, /s/ D. J. Crombie D. J. Crombie Vice President - Industrial Relations Agreed and Accepted: /s/ John J. Schwind John J. Schwind 129 January 28, 1970 Mr. John J. Schwind President-General Chairman District Lodge 142 International Association of Machinists and Aerospace Workers 206 East 32nd Avenue Kansas City, Missouri 64116 Dear Mr. Schwind: In the Agreement signed January 28, 1970, we have agreed that the work of a Crew Chief Mechanic/Mechanic shall include the taxiing of Company aircraft. The Company will solicit preferences of Line Crew Chief Mechanics/Mechanics desiring to be qualified for taxi duty and will certify for taxi duty in seniority order by shift at the point and/or location and limited to the three (3) shifts. To qualify, for taxi certification, a Crew Chief Mechanic/Mechanic must possess the necessary FAA and FCC licenses; must meet the standards for taxiing service established by the local Airport Authority and must meet the visual color blindness and 20/30 vision corrected and normal hearing standards established by the Company. A Crew Chief Mechanic/Mechanic who successfully qualifies for taxiing aircraft by meeting the standards set forth above, shall be trained by the Company in taxiing aircraft and must pass a proficiency examination administered by the Company prior to his certification for taxiing. A Crew Chief Mechanic/Mechanic, to maintain his certification for taxiing shall each six (6) months thereafter pass a proficiency examination. A taxi crew shall be required to perform systems functional checks prescribed by the Company while enroute. Failure to qualify as above, shall not jeopardize the employee's status for work other than taxiing of aircraft. Sincerely yours, /s/ D. J. Crombie D. J. Crombie Vice President - Industrial Relations Agreed and Accepted: /s/ J. J. Schwind J. J. Schwind 130 January 28, 1970 Mr. John J. Schwind President-General Chairman District 142 International Association of Machinists and Aerospace Workers 206 East 32nd Avenue Kansas City, Missouri 64116 Dear Mr. Schwind: In connection with the work of a Mechanic as it concerns building maintenance and repair work as defined in Article 4(a)(7), the Company and the Union recognize the need to utilize contractors for major construction work, major repairs and major building alterations which may not be able to be carried out by the Mechanic work force at a given location. Accordingly, the local manager responsible will discuss with the Local Union Representative such plans in a timely way, prior to the execution of any such contract. Sincerely yours, /s/ D. J. Crombie D. J. Crombie Vice President - Industrial Relations Agreed and Accepted: /s/ J. J. Schwind J. J. Schwind 131 January 28, 1970 Mr. John J. Schwind President-General Chairman District 142 International Association of Machinists and Aerospace Workers 206 East 32nd Avenue Kansas City, Missouri 64116 Dear Mr. Schwind: In the event that employees covered by this Agreement are required, prior to the general adoption of the metric standard in the United States, to use hand tools of metric design or calibration in the course of their assigned work, such tools will be made available by the Company at no cost to the employees. Sincerely yours, /s/ D. J. Crombie D. J. Crombie Vice President - Industrial Relations Agreed and Accepted: /s/ J. J. Schwind J. J. Schwind 132 January 28, 1970 Mr. John J. Schwind President-General Chairman District 142 International Association of Machinists and Aerospace Workers 206 East 32nd Avenue Kansas City, Missouri 64116 Dear Mr. Schwind: During the course of the negotiations of the Agreement signed January 28, 1970, the parties recognized that the question of snow removal constitutes a unique operating problem and agreed as follows: The Company will utilize its own Mechanics for snow removal to the extent it has mechanical snow removal equipment available. In the application of the foregoing, preference will be given to plant maintenance Mechanics where staffed to the extent practicable. Overtime procedures will be utilized to obtain overtime as required to operate such equipment. As long as Company Mechanics and equipment are engaged in snow removal as aforesaid, the Company may supplement with other mechanized snow removal equipment as necessary. Sincerely yours, /s/ D. J. Crombie D. J. Crombie Vice President - Industrial Relations Agreed and Accepted: /s/ J. J. Schwind J. J. Schwind 133 April 10, 1992 Mr. William O'Driscoll President - Directing General Chairman District Lodge 142 International Association of Machinists and Aerospace Workers 400 N.E. 32nd Street Kansas City, Missouri 64116 Dear Mr. O'Driscoll: During the negotiations which led to the Agreement signed April 10, 1992, the Company and the Union agreed that at JFK, ORD, MKC, MCI, STL, LAX and SFO, all ground two-way radio ramp communications equipment will undergo all minor or major repairs to the extent of existing available equipment and qualified manpower. Additionally, it is understood and agreed that as such capability becomes available, in the normal course of expansion of TWA facilities for purposes of aircraft maintenance and repair, at other locations on the Company's domestic system, such repair work outlined above will be performed at those locations. Sincerely yours, /s/ William L. Schecter William L. Schecter Staff Vice President Labor Relations Agreed and Accepted: /s/ William O'Driscoll William O'Driscoll 134 April 10, 1992 Mr. William O'Driscoll President - Directing General Chairman District Lodge 142 International Association of Machinists and Aerospace Workers 400 N.E. 32nd Street Kansas City, Missouri 64116 Dear Mr. O'Driscoll: This will confirm our understanding reached during negotiations leading to the Agreement dated April 10, 1992, concerning Stores Clerk work. It is agreed that at stations other than the Overhaul Base and Technical Services locations, Stores Clerks will be staffed on a shift in accordance with the needs of the service, i.e., if there are four (4) hours or more of Stores Clerk work on that shift (to be defined as any 8 hour period). On a shift where Stores Clerks are not staffed and a part(s) is issued/received, the Crew Chief Mechanic will be responsible for having such part(s) issued/received and recorded for the Stores Clerk. When it is anticipated or known that additional Stores' work is to be performed, overtime will be requested from the Stores classification. Very truly yours, /s/ William L. Schecter William L. Schecter Staff Vice President Labor Relations Agreed and Accepted: /s/ William O'Driscoll William O'Driscoll 135 April 10, 1992 Mr. William O'Driscoll President - Directing General Chairman District Lodge 142 International Association of Machinists and Aerospace Workers 400 N.E. 32nd Street Kansas City, Missouri 64116 Dear Mr. O'Driscoll: This is to confirm the agreement reached during the negotiations concerning stores work. At stations other than the overhaul base, technical service locations, and major stations where mechanics and stores clerks are not staffed, the Crew Chief ramp service person shall be responsible for all stores functions. At stations where station agents are staffed, the employee- in-charge will have the responsibility for all stores functions. All stores functions will remain included in the computation of stores work in determining whether mechanics and or stores clerks are staffed as required under the four-hour rule. Very truly yours, /s/ William L. Schecter William L. Schecter Staff Vice President Labor Relations Agreed and Accepted: /s/ William O'Driscoll William O'Driscoll 136 October 18, 1976 Mr. Quenton A. Kerr President-General Chairman District 142 International Association of Machinists and Aerospace Workers 400 N.E. 32nd Avenue Kansas City, Missouri 64116 Re: Stores Clerks Dear Mr. Kerr: This is a clarification of the understanding reached between the Company and the Union relative to the problems the parties have experienced in the implementation of the stores clerk classification work as negotiated under the January 28, 1970, Agreement. However, this does not negate the above January 28, 1970, Agreement and is in addition to the normal duties performed by stores clerks. 1. Automotive and Building Maintenance ----------------------------------- a. All building maintenance and automotive parts and materials will be ordered and received from the vendor. All parts and materials received shall be binned, inventoried, and issued by stores clerks. All required labeling and documentation in connection with ordering, receiving, issuing, and shipping, as well as the preparation and maintenance of required records will be performed by stores clerks. b. Stores clerks will be responsible for the replenishment and control of all self-service stock. c. If a Company employee is utilized to pick up building maintenance and automotive parts and materials such employee will be a stores clerk. In addition, if a Company employee is utilized to deliver or pick up building maintenance and automotive parts and materials repaired by an outside contractor, such employee shall be a stores clerk. d. Where a supplier(s) has been established at a particular location and automotive and building maintenance parts and materials are not available in the stores room. the stores clerk will complete the appropriate paper work and place the order. 2. Bulk Storage Commissary ----------------------- a. Commissary Stockroom,/storage area(s) will be established at each station where there are no commissary dining units. All commissary material and supplies will be ordered, received, binned, inventoried, and issued by stores clerks. All required labeling and documentation in connection with ordering, receiving, issuing, and shipping, as well as the preparation and maintenance of required records will be performed by stores clerks. 137 b. The delivery of working stock to the buildup areas will be the responsibility of the stores clerk. c. All liquor, alcoholic beverages, and bar supplies will be handled in accordance with (a) above. However, at stations were the liquor storage area and liquor buildup area are one and the same, all liquor, alcoholic beverages, and bar supplies will be ordered, received, binned, and inventoried by stores clerks. 3. Caterer ------- In the administration of Article 4(a)(10), the Company agrees that any inventory(s) required by the Company will be performed by a stores clerk. The Company further agrees to use stores clerks at least once a month to conduct a Company inventory(s). Company material shipped COMAT/RIMAT to the caterer will be delivered by a stores clerk. 4. Pickup Area ----------- In the administration of Article 4(a)(10), the parties agree all parts, materials, and supplies being air shipped to and from stores will be delivered to a pickup area designated by the Company for transfer of such parts, materials, and supplies from ramp service to the stores classification. 5. Stationery Supplies ------------------- a. At airport locations where stationery supply room(s) are maintained, stores clerks will receive and deliver stationery supplies (specifically excluding ticket stock and locally purchased petty cash items) and place inside the supply room(s). b. At airport locations where a stationery supply room is not maintained, delivery to any office facilities will be at a point designated by the Company. c. The parties are in agreement that non-stationery supplies and materials i.e., typewriters, etc., are delivered to the user or addressee. 6. Downtown Deliveries ------------------- Stores clerks will transport COMAT/RIMAT material originating out of MCI or station stores to downtown drop point(s) designated by the Company within the city or metropolitan area at the following locations: BOS, JFK, LGA, EWR, PIT, STL, DCA, MCI/KCI, PHL, LAX, SFO, and ORD. Very truly yours, /s/ W. J. Dougherty W. J. Dougherty Vice President -Industrial Relations Agreed and Accepted: /s/ Quenton A. Kerr Quenton A. Kerr 138 October 18, 1976 Mr. Quenton A. Kerr President-General Chairman District 142 International Association of Machinists and Aerospace Workers 400 N.E. 32nd Avenue Kansas City, Missouri 64116 Re: Stores Letter Dear Mr. Kerr: This will confirm our understandings with regard to Stores Clerks that at the Kansas City Overhaul Base, the following will govern mail room activity: (1) Stores Clerks will deliver all outgoing packages and/or letters containing stocked forms destined for mail (Company or U. S.) to the mail room. (2) Stores Clerks will pick up from the mail room for stores all items outlined in (1). (3) Parts, materials, and stationery supplies (other than stationery supplies as in (4)(a) of this letter) will not be handled by Mail Clerks. (4) Stationery supplies will be delivered and handled as follows: (a) Second and third floors - Building One - such supplies will be delivered to the floor freight elevator area by a Stores Clerk and distributed by Mail Clerks. (b) First floor - Delivered by Stores Clerks. (5) Distribution of mail - Company and U. S. - to Building Two, Engine Overhaul will be by Mail Clerks. Other items will be delivered by Stores Clerks. Very truly yours, /s/ W. J. Dougherty W. J. Dougherty Vice President - Industrial Relations 139 April 10, 1992 Mr. William O'Driscoll President - General Chairman District Lodge 142 International Association of Machinists and Aerospace Workers 400 N.E. 32nd Street Kansas City, Missouri 64116 Dear Mr. O'Driscoll: This is to confirm the agreement reached between the parties during negotiations concerning the performance of Plant Maintenance, Stores Clerks, and Janitor's work at the Trans World Technical Training Academy. The parties agree that TWA Plant Maintenance Mechanics will perform required plant maintenance function at the Trans World Technical Training Academy. The TWTTA shall be added to paragraph 1 of the Janitor Letter of Agreement (on Page 144 of the current agreement) with the exception of space leased to other tenants. Stores Clerks shall perform Stores work at this facility in accordance with the Letters of Agreement on Page 137, and Page 139 of the Agreement. Very truly yours. /s/ William L. Schecter William L Schecter Staff Vice President Labor Relations Agreed and Accepted: /s/ William O'Driscoll William O'Driscoll 140 January 28, 1970 Mr. John J. Schwind President-General Chairman District 142 International Association of Machinists and Aerospace Workers 206 East 32nd Avenue Kansas City, Missouri 64116 Dear Mr. Schwind: This will confirm conversations between the Company and the Union during the course of the negotiations leading to the IAM-TWA Agreement signed January 28, 1970. It is the policy of the Company to handle, to the extent possible, all cargo and freight through its cargo warehouses. It is understood that the Company may utilize open dock facilities adjacent to cargo warehouses for the loading and unloading of cargo. Such loading and unloading will be done by Ramp Servicemen. In instances when it is impossible to handle through the cargo warehouse a specific unit of customers' freight because of its size or because of the limitations of the warehouse or cargo handling equipment, it is agreed that this type of freight may be dispatched directly to or from the ramp area to facilitate handling. When a cargo warehouse is being used to its capacity, and then only with notice to a Crew Chief Ramp Serviceman, customers' freight may be dispatched directly to or from the ramp area to facilitate handling. It is further understood that in the event the above are necessary, a Crew Chief Ramp Serviceman will direct the freight driver and vehicle from the entrance to the ramp area, and direct the loading and/or unloading of such freight by Ramp Servicemen under his directions. Upon the completion of the loading and/or unloading of such freight, a Crew Chief Ramp Serviceman will direct the truck and driver to the exit. It is additionally understood that the truck driver(s) will not be permitted into any Company operated warehouse, and/or to perform any work on such premises. The truck driver(s) will perform their work behind a line drawn four feet from the truck bed on the warehouse floor. Sincerely yours, /s/ D. J. Crombie D. J. Crombie Vice President -Industrial Relations Agreed and Accepted: /s/ J. J. Schwind 141 April 10, 1992 Mr. William O'Driscoll President - General Chairman District Lodge 142 International Association of Machinists and Aerospace Workers 400 N.E. 32nd Street Kansas City, Missouri 64116 Re: Receipt of Air Freight Dear Mr. O'Driscoll: This will confirm the agreement reached during negotiations concerning the receipt of air freight shipments. It is agreed that at other than Major Stations and the Overhaul Base(s), Customer Service agents may be assigned to receive air freight shipments when Ramp Service personnel are not available at the air freight facility to perform this function. The receipt of such shipments shall consist of the signing for the shipment, the verification of weight and the number of pieces received. This is to facilitate the customer and to prevent any unnecessary delays. The Customer Service Agent will notify the Crew Chief Ramp Service Person of the shipment(s) received as soon as possible thereafter. This letter of agreement is not intended to reduce the normal staffing of air freight facilities by the Ramp Service classification. Very truly yours, /s/ William L. Schecter William L. Schecter Staff Vice President Labor Relations Agreed and Accepted: /s/ William O'Driscoll William O'Driscoll 142 August 1, 1999 Mr. Ed LaClair General Chairman District Association of Machinists And Aerospace Workers 400 NE 32nd Street Kansas City, MO 64116 Dear Mr. LaClair: In confirmation of discussions in the course of negotiations leading to the Agreement signed August 1, 1999, the Company agrees it will maintain the classifications of Inspector and LST at SFO until the current employees attrit from these classifications. It is understood and agreed that Inspectors assigned to SFO, when not engaged in Inspector work, may be utilized in Mechanic work. The active and furloughed Avionics mechanic(s) will be recalled and placed into the A&P specialty if qualified. If not qualified, these two (2) employees will remain Avionics mechanics. The mechanic in the paint specialty will be placed in the Automotive specialty. The Company will continue to maintain the Automotive, Plant Maintenance and A&P specialties as well as the Stores Clerk classification. Future staffing including the Guard classification will be determined based on the needs of the service. Very truly yours, /s/ Linda Ferchland Linda L. Ferchland Director Labor Relations, Ground Agreed and Accepted: /s/ Ed LaClair Ed LaClair 143 April 10, 1992 Mr. William O'Driscoll President - General Chairman District Lodge 142 International Association of Machinists and Aerospace Workers 206 East 32nd Avenue Kansas City, Missouri 64116 Dear Mr. O'Driscoll: The following is to clarify the understanding of the parties during the negotiations leading to the Agreement signed April 10, 1992, as to janitorial work pursuant to Article 4(a)(21) of such Agreement. The Company and Union agree that: (1) Required janitorial functions will be performed by Janitors covered by a TWA-IAM Agreement at the following locations: the Administrative Building at KCI, the Charles A. Lindbergh Flight Training Center, and the Trans World Technical Training Academy, with the exception of space leased to other tenants. (2) Required janitorial functions at the Company's airfreight terminals at JFK, LGA, EWR, ORD, MKC/KCI, LAX, SFO, STL, PIT. BOS and PHL will be performed by Janitors covered by the TWA-IAM Agreement. Such duties shall include required cleaning of the following areas: Airfreight Building lunchrooms, washrooms, walkways and offices. It is explicitly understood that work areas used by Ramp Servicemen in the performance of their normal duties in the above airfreight terminals shall be kept clean by such Ramp Servicemen. (3) Required janitorial functions in passenger terminal IAM locker rooms, lunchrooms, ready rooms and washrooms will be performed by Janitors and/or Fleet Service Helpers at the following locations: JFK, LGA, ORD, MKC/KCI, LAX, SFO, EWR, BOS, PHL, STL and PIT. (4) The Company's undertakings respecting a cutback of farm-out of janitorial work pursuant to paragraphs (1), (2) and (3) above shall be subject to the four hour rule recognized by the parties and will be implemented by the Company as soon after the effective date of the Basic Agreement between the parties as the Company can terminate or gain release from particular janitorial sub-contracts without incurring any liability or penalty. Very truly yours, /s/ William L. Schecter William L. Schecter Staff Vice President-Labor Relations Agreed and Accepted: /s/ William O'Driscoll William O'Driscoll 144 January 28, 1970 Mr. John J. Schwind President-General Chairman District 142 International Association of Machinists and Aerospace Workers 206 East 32nd Avenue Kansas City, Missouri 64116 Dear Mr. Schwind: This will serve as confirmation of the Company's commitment that passes will be issued to employees covered by the TWA-IAM Agreement within one week after the pass request is received, except in cases of interline passes. Sincerely yours, /s/ D. J. Crombie D. J. Crombie Vice President - Industrial Relations Agreed and Accepted: /s/ J. J. Schwind J. J. Schwind 145 March 14, 1975 Mr. Quenton A. Kerr President-General Chairman International Association of Machinists and Aerospace Workers District 142 206 East 32nd Avenue Kansas City, Missouri 64116 Dear Mr. Kerr: This will confirm our understanding reached during negotiations leading to the Agreement dated March 14, 1975. Class 7 term pass holders and their eligible dependents who would not otherwise retain such privilege will be allowed to retain such term passes during medical leaves of absence and extensions thereto up to a maximum period of five (5) years. Very truly yours, /s/ D. J. Crombie D. J. Crombie Vice President - Industrial Relations Agreed and Accepted: /s/ Quenton A. Kerr Quenton A. Kerr President-General Chairman District Lodge 142 146 April 10, 1992 Mr. William O'Driscoll President - General Chairman District Lodge 142 International Association of Machinists and Aerospace Workers 400 N.E. 32nd Street Kansas City, Missouri 64116 Dear Mr. O'Driscoll: During the course of the negotiations which led to the signing of the Agreement dated April 10, 1992, the parties discussed a number of problems pertaining to the pass policy and the Company's failure to comply with Article 15 of the Agreement. The Company reaffirms its commitment to comply with Article 15 of the Agreement and should the Union deem the Company has failed to do so, it may invoke the grievance procedure. Very truly yours, /s/ William L. Schecter William L. Schecter Staff Vice President Labor Relations Agreed and Accepted: /s/ William O'Driscoll William O'Driscoll 147 March 14, 1975 Mr. Quenton A. Kerr President-General Chairman International Association of Machinists and Aerospace Workers District 142 206 East 32nd Avenue Kansas City, Missouri 64116 Dear Mr. Kerr: This will confirm our understanding reached during negotiations leading to the Agreement dated March 14, 1975, respecting Article 1l(c)(7) (disciplinary action). In cases involving the possibility of unauthorized possession of property on the employee's person, the opportunity to confer with his Union representative may be deferred by the Company. However, it is understood that a Union representative will be present during such preliminary investigation, if the employee so desires. Very truly yours, /s/ W. E. Malarkey W. E. Malarkey Staff Vice President - Labor Relations Agreed and Accepted: /s/ Quenton A. Kerr Quenton A. Kerr President-General Chairman District Lodge 142 148 April 10, 1992 Mr. William O'Driscoll President - General Chairman District Lodge 142 International Association of Machinists and Aerospace Workers 400 East 32nd Street Kansas City, Missouri 64116 Dear Mr. O'Driscoll: This is to confirm our discussions during negotiations which led to the Agreement signed April 10, 1992, that the parties will furnish to one another any investigative agency report which they rely upon or use in any disciplinary or discharge proceeding. At the earliest possible time after they receive it, the Company shall furnish the Union with internal records used to support their position, retaining the right to delete therefrom any indication of confidential sources. Very truly yours, /s/ William L. Schecter William L. Schecter Staff Vice President Labor Relations Agreed and Accepted: /s/ William O'Driscoll William O'Driscoll 149 January 28, 1970 Mr. J. J. Schwind President-General Chairman District 142 International Association of Machinists and Aerospace Workers 206 East 32nd Avenue Kansas City, Missouri 64116 Dear Mr. Schwind: This will confirm the conversations we had during the course of the negotiation of the Agreement, signed January 28, 1970, with regard to certain payroll and fringe benefit accrual reports. These reports have been designed to help resolve a problem which is important to you and important to us. As I mentioned to you, the Company has taken steps to provide payroll group heads with reports designed to increase our ability, on a local basis, to straighten out payroll or accrual errors, and to answer promptly the questions which employees may have. The first of these reports is the A-641 record. This record, which is developed on a monthly basis, is set up to reflect, as appropriate, an employee's current accrual, days charged and resulting balance for each of the following categories: vacation, personal illness, death or dangerous illness in the family, and industrial injury. The second report is the Pay Period Control Register, which is prepared for each pay period and is designed to break down the basis for each employee's pay by showing the individual elements of such pay, including premium rates, acting Crew Chief and line maintenance differentials, among others. Informational letters have been sent to all payroll group heads to explain the A-641 and the Payroll Control Register. Sincerely yours, /s/ D. J. Crombie D. J. Crombie Vice President - Industrial Relations Agreed and Accepted: /s/ J. J. Schwind J. J. Schwind 150 December 28, 1972 Mr. John J. Schwind President-General Chairman District Lodge 142 International Association of Machinists and Aerospace Workers 206 N.E. 32nd Avenue Kansas City, Missouri 64116 Dear Mr. Schwind: It has come to my attention that the language of Article 7(a), as finally printed in the TWA-IAM Agreement, does not reflect clearly our joint understanding that Guards, Fire Inspectors, and employees assigned to operate boiler rooms or power houses are to eat lunch during their eight hour shifts at a time, and in a manner consistent with their continuing duties. If you concur in this statement of our understanding, please sign and return a copy of this letter. Sincerely yours, /s/ William A. Malarkey William A. Malarkey Staff Vice President - Labor Relations Agreed and Accepted: /s/ John J. Schwind John J. Schwind President-General Chairman District Lodge 142 151 December 28, 1972 Mr. John J. Schwind President-General Chairman District 142 International Association of Machinists and Aerospace Workers 206 N.E. 32nd Avenue Kansas City, Missouri 64116 Dear Mr. Schwind: This will confirm the understanding we reached during the negotiation of the current Agreement with regard to the consolidation of the Ramp Serviceman and Ground Service Helper classifications (with the Ground Service Helper group becoming a seniority grouping(s) within the Ramp Serviceman classification); and the performance of certain Fleet Service Helper work (involving interior cleaning of aircraft) by Ramp Servicemen. In the course of the discussions it was agreed that questions would arise in several areas with regard to the implementation of these changes. Accordingly, this letter will set forth the areas which we have agreed upon, and will establish a means of dealing with the implementation of these concepts on a fair and equitable basis: 1. The Ground Service Helper classification will be consolidated into the Ramp Serviceman group as a separate seniority grouping(s). Matters relating to seniority, etc. will be reviewed prior to actual implementation. 2. Certain Fleet Service Helper work, involving the interior cleaning of aircraft (including aircraft involved in certain maintenance procedures) will be performed by the Ramp Serviceman classification. The initial absorption of such work into the Ramp Serviceman group will be deemed a transfer of work from the one classification to the other, and an appropriate number of jobs will be established in the Ramp Serviceman classification. Matters relating to seniority, etc. will be reviewed prior to actual implementation. The Company and Union both recognize the need to approach the implementation of these changes in a consistent and reasonable manner. To this end, the parties anticipate that meetings will be held to discuss the matters referred to in this letter. Sincerely yours, /s/ D. J. Crombie D. J. Crombie Vice President - Industrial Relations Agreed and Accepted: /s/ John J. Schwind John J. Schwind President-General Chairman 152 December 28, 1972 Mr. John J. Schwind President-General Chairman District Lodge 142 International Association of Machinists and Aerospace Workers 206 N.E. 32nd Avenue Kansas City, Missouri 64116 Dear Mr. Schwind: You have inquired as to the justification of the Company's policy in regard to fueling of Company aircraft and servicing and maintenance of certain fueling equipment at the new airport at KCI as well as the new terminal facilities at DEN. As you know, each of these functions is presently being performed by Allied Maintenance. It is my understanding that this procedure is in keeping with obligations imposed by the City of Kansas City, Missouri in the former case, and by the City and County of Denver, Colorado in the latter case, in what we are informed to be the rightful exercise of their statutory police power. Were these not the circumstances, the Company would assign such work to members of the IAM. Sincerely yours, /s/ D. J. Crombie D. J. Crombie Vice President - Industrial Relations Agreed and Accepted: /s/ John J. Schwind John J. Schwind President-General Chairman District Lodge 142 153 August 1, 1999 Mr. Ed LaClair General Chairman District Lodge 142 400 N.E. 32nd Street Kansas City, Missouri 64116 Dear Mr. LaClair: This will confirm our understanding reached during negotiations which led to the Agreement dated August 1, 1999, in connection with the Company's Absenteeism Control Program. It is understood that employee requested and Company approved time off (PTO) will not be used against the employee's attendance record. When the Company believes that an employee's attendance record is not satisfactory, the Company will schedule an informal meeting with the employee and Shop Steward to review attendance matters. The Company will offer advice and assistance to the employee to correct the attendance problem. The Company will review the employee's attendance record thereafter. If the employee has not corrected his attendance record, the Company will schedule a formal meeting with the employee and the Shop Steward to again review the attendance record at which time the Company will notify the employee in writing of his attendance record. As such a letter will not be construed as a letter of reprimand or discipline, it will not be subject to the grievance procedure. It is understood that no employee who has been in the service of the Company one hundred eighty (180) days or more, in the case of a mechanic and one hundred twenty (120) days or more, in the case of all other employees shall be disciplined for attendance deficiencies without a fair hearing before a designated representative of the Company, other than the one bringing the complaint against the employee. Such hearing shall be held not later than five (5) days after the employee and the Union are notified of the precise charges and a written decision will be issued within three (3) work days after the close of the hearing. Furthermore. as to any action respecting attendance deficiencies, the initiation of such action will hereafter be made by the hearing officer referred to above. Prior to the initiation of any action or hearing, the employee will be entitled to Union representation, if he so desires. In the event the Local Committee is dissatisfied with the decision of the designated hearing officer, the matter may be appealed to Step 3 in accordance with Article 11. 154 Very truly yours, /s/Linda Ferchland Linda Ferchland Director-Labor Relations Labor Relations Agreed and Accepted: /s/ Edward LaClair Edward LaClair 155 March 14, 1975 Mr. Quenton A. Kerr President-General Chairman International Association of Machinists and Aerospace Workers District 142 206 East 32nd Avenue Kansas City, Missouri 64116 Dear Mr. Kerr: Before Trans World Airlines, Inc. renews or enters into new contract or lease arrangements with outside concerns which involves work covered by the I.A.M. Agreements, at least sixty (60) days notice shall be given to the Union prior to the signing of such contract or lease arrangements. The Company agrees to meet with the Union during such period and endeavor to resolve the issues involved. Failing to do so, a general grievance may be filed in accordance with the applicable Agreement provisions, within ten (10) days of such failure. Very truly yours, /s/ D. J. Crombie D. J. Crombie Vice President - Industrial Relations Agreed and Accepted: /s/ Quenton A. Kerr Quenton A. Kerr President-General Chairman District Lodge 142 156 April 10, 1992 Mr. William O'Driscoll President and General Chairman International Association of Machinists and Aerospace Workers District 142 400 East 32nd Street Kansas City, Missouri 64116 Dear Mr. O'Driscoll: This is to confirm our agreement reached during negotiations regarding the "banking" of vacation by eligible employees covered by this Agreement. Employees eligible for four or more weeks of vacation will be allowed to bank up to two weeks of earned vacation per year. On or before July 1 of the vacation year, the amount of banked vacation money due to the employee will be contributed to the employee's 401K account or to another retirement account designated by the IAM&AW, as permitted by applicable law. Very truly yours, /s/ William L. Schecter William L. Schecter Staff Vice President Labor Relations Agreed and Accepted: /s/ William O'Driscoll William O'Driscoll 157 April 10, 1992 Mr. William O'Driscoll President - General Chairman International Association of Machinists and Aerospace Workers District 142 400 East 32nd Street Kansas City, Missouri 64116 Dear Mr. O'Driscoll: This will confirm our agreement to modify the 401(K) Plan for Machinists of Trans World Airlines, Inc. to permit deferral of benefit commencement under the Plan until such time as benefits are required to commence pursuant to the provisions of the Internal Revenue Code and/or ERISA and the regulations thereunder. It is our understanding that this new deferral provision shall apply to all Plan members who have not begun to withdraw payments from the Plan as of November 1, 1991. If the foregoing accurately states the terms of our agreement, please sign where indicated below. Very truly yours, /s/ William L. Schecter William L. Schecter Staff Vice President Labor Relations Agreed and Accepted: /s/ William O'Driscoll William O'Driscoll 158 August 1, 1999 Mr. Edward LaClair General Chairman International Associations of Machinists And Aerospace Workers 400 NE 32nd Street Kansas City, MO 64116 Subject: Amendment to 401 (k) Plan Dear Mr. LaClair, Subject to the approval of the Trustee Committees to amend the Deferred Compensation Plan(s) for IAM employees and effective upon the date of the signing of a new Collective Bargaining Agreement, the Deferred Compensation Plan(s) for all IAM employees shall provide for a one-time election for each individual employee who currently has retirement funds held in trust at Chase Manhattan Bank to transfer all funds to the existing self-directed 401(k) Retirement Savings Plan Number 005. The Plan(s) shall be further amended to permit future monthly contributions to be made to the participant's new Retirement Savings plan account. The fee agreement may be amended to provide for a transaction fee to be paid by individual participants for excess transfer activity between funds. This election must be made no later than November 30, 1999 and will become effective the last day of the month in which the employee's election is made. An employee who has elected this plan will have a one-time transfer option back to the Deferred Compensation Plan effective November 30, 1999 only. Thereafter, the employee's election is irrevocable and permanent. Current and future employees in the Mechanic & Related and Passenger Service classifications who are not members of a 401(k) Plan may elect to join either Plan but not both. That election is irrevocable. Very truly yours, /s/ Linda Ferchland Linda Ferchland Director Labor Relations Ground Agreed and Accepted: /s/ Edward LaClair Edward LaClair IAM District 142 159 SUPPLEMENTAL AGREEMENT ON RETIREMENT PLAN FOR MACHINISTS OF TRANS WORLD AIRLINES, INC. THIS AGREEMENT, made and entered into this 28th day of January, 1970, by and between TRANS WORLD AIRLINES, INC., a Delaware corporation (hereinafter referred to as the "Company"), and the INTERNATIONAL ASSOCIATION OF MACHINISTS AND AEROSPACE WORKERS, AFL-CIO (hereinafter referred to as the 'Union'): W I T N E S S E T H: WHEREAS, the Company and the Union have agreed to continue, amend and restate, effective as of January 1, 1969, the provisions of the retirement plan covering "Employees" of the Company represented by the Union, as the "Retirement Plan for Machinists of Trans World Airlines, Inc." (hereinafter referred to as the 'Plan). NOW, THEREFORE, the parties agree as follows: SECTION 1. ESTABLISHMENT AND ACCEPTANCE OF PLAN 1.1 Establishment and acceptance of Plan. The Company shall establish the Plan, effective as of January 1, 1969. The Union hereby accepts the Plan for Employees of the Company within the collective bargaining unit represented by the Union. SECTION 2. ELIMINATION OF CONFLICTS 2.1 Elimination of Conflicts. In the event of any conflict between the provisions of this Agreement and the Plan, the provisions of this Agreement shall supersede the provisions of the Plan to the extent necessary to eliminate such conflict. SECTION 3. INTERNAL REVENUE APPROVAL AND AMENDMENTS 3.1 Internal Revenue Approval and Amendments. It is the intention of the parties to this Agreement that the Plan, as it may be modified by this Agreement, shall be and remain an approved Plan so as to qualify under the applicable provisions of the Internal Revenue Code of 1954 as now in effect or as hereafter adopted and the regulations issued thereunder, and that any and all contributions made by the Company under the Plan be deductible for federal income tax purposes. The Company agrees not to modify or amend or terminate the Plan while this Agreement is in full force and effect unless the Union consents to such modification, amendment or termination, provided, however, that the Company may, after notifying the Union, make any modifications or amendments to the Plan that are necessary or appropriate to qualify or maintain the Plan as a plan meeting the requirements of Section 401(a) of the Internal Revenue Code of 1954 as now in effect or hereafter amended or any other applicable provisions of the Internal Revenue Code as now in effect or hereafter adopted or the regulation issued thereunder, and any such 160 modification, alteration, or amendment of the Plan may be made retroactively, if necessary or appropriate. SECTION 4. FINANCING 4.1 Pension Fund. The Company shall establish a Pension Fund with a trustee or insurance company, or both, and make contributions thereto, in accordance with and as required by the provisions of the Plan. 4.2 No Employee Contributions. No Employee will be required to make contributions to the Pension Fund on and after February 1, 1970. SECTION 5. ADMINISTRATION BY COMMITTEE 5.1 Administration by Committee (a) The Plan shall be administered by a Committee consisting of four members, two members of which shall be appointed by the Company, (hereinafter referred to as the Company members), and two members of which shall be appointed by the Union (hereinafter referred to as the Union members). These members shall serve without compensation from the Pension Fund. In the event of a deadlock, an impartial chairman shall be selected by mutual agreement of the Company and the Union members of the Committee, but shall vote at meetings of the Committee only for the purpose of breaking such deadlock. Failing selection, either party may petition the United States District Court in New York, New York, for appointment of a chairman. The fees and expenses of the impartial chairman shall be paid equally by the Company and the Union. In the event of a deadlock over the approval/denial of an employee's request for disability retirement, the impartial chairman shall be a qualified physician who specializes in the treatment of the medical condition giving rise to the employee's request for disability retirement. (b) Either the Company or the Union at any time may remove a member appointed by it and may fill any vacancy in the position of its appointee. Both the Company and Union shall notify each other in writing of the members respectively appointed by them before any such appointment shall be effective. (c) To constitute a quorum for the transaction of business, there shall be required to be present at any meeting of the Committee at least one Union member and one Company member. At all meetings of the Committee, the Company members shall have a total of two votes and the Union members shall have a total of two votes, the vote of any absent member being cast by the member Present appointed by the same party. Decisions of the Committee shall be by a majority of the votes cast. 5.2 Powers of the Committee. The Committee shall have the following powers incident to the proper administration of the Plan: 161 (a) To prescribe procedures to be followed by Employees in filing application for benefits, and for the furnishings of evidence necessary to establish rights to such benefits. (b) To make conclusive determinations as to the rights of any person applying for or receiving retirement benefits, and to afford any such individual dissatisfied with any such determination the right to a hearing thereon. (c) To develop procedures for the determination and notification to Employees of their Continuous Service, and after affording Employees an opportunity to make objection with respect thereto, to conclusively establish such Continuous Service in advance of or at retirement. (d) To obtain from the Company, from the Union, the Trustee or insurance company, the Actuary and from Employees such information as shall be necessary to carry out the Committee's responsibilities, including all actuarial valuations and all reports on assets and on receipts and disbursements relating to the Pension Fund. Any such actuarial report or valuation shall include, as a minimum, a full statement of the actuarial assumptions employed. (e) To establish appropriate procedure for authorizing the Trustee or insurance company to make all disbursements to Employees from the Pension Fund in accordance with the provisions of the Plan. (f) To furnish to the Company and the Union, upon request, such reports with respect to the administration of the Plan as are reasonable and appropriate. 5.3 Liability. The Committee and any member thereof shall be entitled to rely upon the correctness of any information furnished by the Trustee or insurance company, the Actuary, the Union or the Company. Neither the Committee nor any of its members, nor the Union, any other representative of the Union, nor the Company nor any officer or any other representative of the Company shall be liable because of any act or failure to act on the part of the Committee, or any of its members, to any person whomsoever, except that nothing herein shall be deemed to relieve any such individual from liability for his own fraud or bad faith. SECTION 6. DURATION OF AGREEMENT 6.1 Duration. This Agreement shall be effective as of January 1, 1970, and shall continue in full force and effect through and including January 31, 2001. It shall be automatically renewed thereafter for successive one year periods unless either party shall give written notice to the other in accordance with the Railway Labor Act, as amended. 6.2 Changes in Agreement. During the life of this Agreement, neither party hereto shall demand any changes in this Agreement other than as provided in Section 3 hereof, nor shall either party be required to bargain with respect to this Agreement, nor shall a change in or addition to this Agreement be an objective of or be stated as a reason for any strike or lockout or other exercise of economic force or threat thereof by the Union or by the Company. 162 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written. TRANS WORLD AIRLINES, INC. By William L. Schecter INTERNATIONAL ASSOCIATION OF MACHINISTS AND AEROSPACE WORKERS, AFL-CIO By William O'Driscoll 163 AGREEMENT BETWEEN TRANS WORLD AIRLINES, INC. AND MECHANICS AND RELATED EMPLOYEES IN THE EMPLOY OF TRANS WORLD AIRLINES. INC. AS REPRESENTED BY THE INTERNATIONAL ASSOCIATION OF MACHINISTS AND AEROSPACE WORKERS, AFL-CIO. This Agreement is made and entered into by and between TRANS WORLD AIRLINES, INC., hereinafter known as the "Company", and MECHANICS AND RELATED EMPLOYEES in the employ of Trans World Airlines, Inc. as represented by the INTERNATIONAL ASSOCIATION OF MACHINISTS AND AEROSPACE WORKERS, AFL-CIO, hereinafter known as the 'Union'. It is mutually agreed to establish the Plan agreed to during negotiations, subject to the receipt of a ruling from the Internal Revenue Service that the Plan is qualified under Section 401 (a), that the Trust described therein is exempt from taxation under Section 501 (a), that the Company's contributions thereto will be deductible under Section 404 of the Internal Revenue Code of 1954. The parties agree that, subject to such ruling, the Company will make contributions to the plan effective February 1, 1970. Prior to receipt of said ruling, the contributions will be paid to a bank or trust company in escrow. IN WITNESS WHEREOF, the parties hereto have signed this Agreement this 28th day of January 1970. TRANS WORLD AIRLINES, INC. /s/ D. J. Crombie MECHANICS AND RELATED EMPLOYEES in the employ of Trans World Airlines, Inc. as represented by the INTERNATIONAL ASSOCIATION OF MACHINISTS AND AEROSPACE WORKERS, AFL-CIO /s/ J. J. Schwind 164 January 28, 1970 Mr. John J. Schwind President-General Chairman International Association of Machinists and Aerospace Workers District 142 206 East 32nd Avenue Kansas City, Missouri 64116 Dear Mr. Schwind: In order to continue the benefit accrual of an employee in the services of Trans World Airlines, Inc. covered by the TWA-IAM Agreement in the Retirement Plan for Machinists of Trans World Airlines, Inc. and the Trust Plan of which he is a participating member, the Company agrees to enter into the following arrangement with the Union in cases where such employee is a TWA employee who is a full-time member of District 142 staff, or IAM Grand Lodge staff. The Company will remit on behalf of the employee on such leave or leaves of absence for the purpose indicated the full cost for the basic Retirement Plan ("A" Plan). The District will remit on behalf of the employee on such leave or leaves of absence for the purpose indicated (and on its own behalf) to cover contributions the Company would have made for the employee, had the employee continued on active pay status and not been on leave, the following: (a) For the Trust Plan - Effective February 1, 1970, an amount equal to 1% of the pay the employee received from the Union while he is on off-payroll status with the Company. Further an additional 1% of the pay effective February 1, 1971. In addition, the employee will be permitted to continue voluntary contributions to the Trust Plan based on the monies paid to him by the Union. (b) A monthly statement of the monies paid by the Union to such employee after February 1, 1970. The statements, together with the remittances, will be forwarded by the Union to Director - Employee Benefits, Trans World Airlines, Inc., 11500 Ambassador Drive, Kansas City, Missouri 64153. The statement will show the periods covered for each such employee, the employee's contribution for such period, and the Union's contribution for the like period. This agreement shall become effective as of February 1, 1970. 165 If this is in accordance with your understanding, please sign in the lower left-hand corner, where indicated. Sincerely, /s/ D. J. Crombie D. J. Crombie Vice President - Industrial Relations Agreed and Accepted: /s/ J. J. Schwind J. J. Schwind 166 August 1, 1999 Mr. Ed LaClair General Chairman District 142 International Association of Machinists and Aerospace Workers 400 N.E. 32nd Avenue Kansas City, Missouri 64116 Dear Mr. LaClair: This will confirm our understanding reached during negotiations that when an employee is assigned to another point and/or location within a metropolitan area, he will: 1. Be paid twenty cents (20 cents) per mile actual mileage plus tolls between said point and/or location. If thereafter, the mileage allowance as set forth in the Management Policy and Procedures Manual 12.05.01 should be increased, the mileage allowance set forth herein will be increased to the same amount or 2. Be provided round trip Company transportation to the assigned point and/or location. The above will apply until the employee is reassigned and reports back to his regular assigned point and/or location. Very truly yours, /s/ Linda Ferchland Linda Ferchland Director Labor Relations Agreed and Accepted: /s/ Edward LaClair Edward LaClair 167 October 18, 1976 Mr. Quenton Kerr President-General Chairman District 142 International Association of Machinists and Aerospace Workers 400 N.E. 32nd Avenue Kansas City, Missouri 64116 Dear Mr. Kerr: This will confirm our Agreement reached during negotiations that any employee who is laid off subsequent to the effective date of this letter and who meets the requirements as outlined in Article 5 will be entitled to submit an application for an examination while on such laid off status. It is understood and agreed that the following guidelines are applicable to such employee who submits an application to take an examination. 1. A laid off employee may apply for and complete only one examination within any sixty (60) day period. 2. Applications shall be obtained and submitted as provided in Articles 5(a)(3) and 5(a)(4) respectively. On the application form as provided under Article 5(a)(4), a "laid off" employee will designate "laid off" in the space provided for the supervisor's name. 3. All written examinations of laid off employees shall be handled through TWA-MCI training section. 4. Failure to appear for an examination at the designated time and place will invalidate the application and the employee will not be permitted to apply for any other examination while on laid off status unless satisfactory reason is given. 5. All written examinations will be completed not more than thirty (30) days after a laid off employee's application is received by the Company. All laid off employees will have a completion date effective sixty (60) days from the date the application is received by the Company. 6. A laid off employee will be entitled to take only the written portion of Part I of the mechanic examination. The written portion of the examination will be given at a time and place designated by TWA. The practical portion of the examination will be given on the first work day of the employee's return to active status. It is understood and agreed that the return to active status as provided in this Letter of Agreement be subject to the satisfactory completion of the practical examination. If the employee fails the practical portion of the exam, it will be treated as a failure as provided in 7 and it is further understood and agreed that the provisions of Article 6(f)(10) shall not be applicable in such instance. 168 7. A laid off employee who fails to pass the examination will not be permitted to take the same examination for one hundred and eighty (180) days from the date of the previous examination. 8. Laid off employees not holding seniority in the Ramp Service or Stores classifications will be permitted to take the examinations for such classifications, while on laid off status, in accordance with Article 5(c), (d), and (e). 9. To be eligible for recall or promotion under these provisions, a laid off employee must submit a qualification sheet and/or have a Company seniority bid on file. Employees who are recalled or promoted and are subsequently found not qualified, will be laid off, provided they are unable to return to the specialty at the point from which reduced; and when so disqualified they shall lose all rights to lay off pay. They shall have recall rights only to the specialty at the point from which originally reduced or laid off. 10. All other provisions of the Agreement not set forth herein shall apply. Very truly yours, /s/ W. J. Dougherty W. J. Dougherty Vice President Industrial Relations Agreed and Accepted: /s/ Quenton A. Kerr Quenton A. Kerr 169 October 18, 1976 Mr. Quenton Kerr President-General Chairman District 142 International Association of Machinists and Aerospace Workers 400 N.E. 32nd Avenue Kansas City, Missouri 64116 Dear Mr. Kerr: It is understood and agreed that IAM-TWA Mechanics will be utilized to maintain carry-on baggage X-ray equipment, passenger magnetic detection equipment, and any other similar security equipment that may be placed in use by the Company. Very truly yours, /s/ W. J. Dougherty W. J. Dougherty Agreed and Accepted: /s/ Quenton A. Kerr Quenton A. Kerr 170 October 18, 1976 Mr. Quenton Kerr President-General Chairman District 142 International Association of Machinists and Aerospace Workers 400 N.E. 32nd Avenue Kansas City, Missouri 64116 Re: Coverage for LST Absences Dear Mr. Kerr: The Company will utilize the proper LST specialty to provide necessary technical knowledge, guidance, and direction to other classifications in trouble shooting complex aircraft systems in support of the requirements of the service. However, when the LST for his specialty is not on duty and the technical expertise for that specialty is necessary, the Company will: 1. Have the other LSTs on duty examine the problem, and if able, provide the necessary technical knowledge and assistance, or 2. Refer the work to the oncoming shift, or 3. Call in overtime for that LST specialty in accordance with the local overtime procedure. In no event will a foreman or other employees perform the functions of the LST when LSTs are available to perform these functions. Very truly yours, /s/ W. J. Dougherty W. J. Dougherty Vice President Industrial Relations Agreed and Accepted: /s/ Quenton A. Kerr Quenton A. Kerr 171 April 10, 1992 Mr. William O'Driscoll President - General Chairman District Lodge 142 International Association of Machinists and Aerospace Workers 400 N.E. 32nd Street Kansas City, Missouri 64116 Dear Mr. O'Driscoll: This will confirm the understanding reached during the negotiations regarding the establishment of a Maintenance Evaluation Committee at the Overhaul Base. Effective with the signing of the TWA/IAM Agreement, a joint Company/Union Committee will be established to continue to evaluate and reassess the placement of units and parts in various categories, based on the guidelines used by the Overhaul Base Committee during negotiations leading to the Agreement signed April 10, 1992. The Committee will be a permanent one that will continue to function as new equipment is phased into the existing fleet or new aircraft are added. Meetings and associated activities will be conducted on an "as needed" basis. The Committee will consist of four (4) members. Two (2) members selected by the Union, and two (2) members selected by the Company. The Union and Company may have one (1) alternate each to serve in the event their regular members are not available. The Committee may establish rules governing their procedures, consistent with the provisions of the Agreement. A member of the Maintenance Department and the Grievance Committee Chairman or their designated representatives may serve as co- chairpersons to the Committee without vote. The Committee will meet during regular day shift working hours, unless otherwise mutually agreed to, and members will not suffer loss of pay while performing their duties. Very truly yours, /s/ William L. Schecter William L. Schecter Staff Vice President Labor Relations Agreed and Accepted: /s/ William O'Driscoll William O'Driscoll 172 April 10, 1992 Mr. William O'Driscoll President - General Chairman District Lodge 142 International Association of Machinists and Aerospace Workers 400 N.E. 32nd Street Kansas City, Missouri 64116 Dear Mr. O'Driscoll: This will confirm the understanding reached during the negotiations regarding the establishment of a 6(a) Committee at MCI/MBM. The Committee will consist of four (4) members. Two (2) members selected by the Union, and two (2) members selected by the Company. The Union and Company may have two (2) alternates each to serve in the event their regular members are not available. Guidelines for the Committee shall be defined below: 6(a) Committee: 1. At MCI/MBM, it is agreed that the transfer of work or the assignment of new work will be assigned to the appropriate specialty by the Company. When such transfer of work takes place, the Company and Union will agree on the disposition of the personnel affected as a result of such transfer as provided for in Article 6(a)(3) of the current TWA/IAM Agreement. 2. When the Company has determined they are considering transfer of work and before the transfer occurs, the 6(a) Committee will be activated to investigate the intended move and to reach a decision as to whether the work is being assigned to the appropriate specialty. They will also consider the method of transferring personnel is such moves are needed. 3. The Committee may establish rules governing their procedures, consistent with the provisions of the Agreement. 4. The 6(a) Committee will meet during regular day shift working hours, unless otherwise mutually agreed to, and members will not suffer loss of pay while performing their duties. A member of the TWA Employee Relations Department and the Union President/General Chairman or their designated representatives, may serve as Co- chairpersons to the Committee without vote. 5. The Committee will complete its investigation in an expeditious manner. In the event the Committee is unable to arrive at a majority decision, a grievance may be filed in accordance with provisions of Article 11, omitting Step I of the grievance procedure. 6. The parties have reached this agreement to form a 6(a) Committee with the intent of improving the manner in which work is transferred at MCI/MBM. If in practice, the 173 establishment of the committee does not result in the improvements expected, the parties have an obligation to discuss and resolve their differences. Very truly yours, /s/ William L. Schecter William L. Schecter Staff Vice President Labor Relations Agreed and Accepted: /s/ William O'Driscoll William O'Driscoll 174 October 18, 1976 Mr. Quenton A. Kerr President-General Chairman District 142 International Association of Machinists and Aerospace Workers 400 N.E. 32nd Avenue Kansas City, Missouri 64116 Re: Disability Income Dear Mr. Kerr: Effective the first pay period after April 10, 1992, the Disability Income Plan will be revised to provide weekly disability income benefits in the amount of 50% of weekly Basic Earnings, subject to the following minimum and maximum amounts: Minimum amount of weekly disability benefit: 20% of weekly Basic Earnings Maximum amount of weekly disability benefits: $975.00. Weekly Benefits will be reduced by the amount of (1) any benefits payable under compulsory state disability income plans and (2) any disability benefits under the Federal Social Security Act, including benefits for the Employee's dependents which are paid or payable (after the first fifteen (15) months of disability.) For the purpose of items (1) and (2) above, each employee who is covered under the Federal Social Security Act will be considered to be receiving periodic cash payments under such Act, in an amount equal to the amount he and his dependents would receive were they receiving such payments, unless the employee submits proof to the Insurance Company that such payments have been applied for but are not payable. Social Security Freeze - Weekly payments will not be reduced by any increase in Social Security benefits made after weekly payments have started. Very truly yours, /s/ W. J. Dougherty W. J. Dougherty Vice President Industrial Relations Agreed and Accepted: /s/ Quenton A. Kerr Quenton A. Kerr 175 November 1, 1978 Mr. Quenton A. Kerr President-General Chairman District 142 International Association of Machinists and Aerospace Workers 400 N.E. 32nd Avenue Kansas City, Missouri 64116 Dear Mr. Kerr: This is to confirm the agreement reached between the parties in the current round of bargaining. The Company will honor those voluntary payroll deduction authorizations made by IAM employees for the political action fund which is designated by the Secretary-Treasurer of District 142. Very truly yours, /s/ J. C. Hilly J. C. Hilly Vice President Labor Relations Agreed and Accepted: /s/ Quenton A. Kerr Quenton A. Kerr 176 November 1, 1978 Mr. Quenton A. Kerr President-General Chairman District 142 International Association of Machinists and Aerospace Workers 400 N.E. 32nd Avenue Kansas City, Missouri 64116 Dear Mr. Kerr: This is to confirm our agreement reached during negotiations that when all employees in any IAM classification are furloughed from a point and as a result there are no employees in that classification at that point, any employee so furloughed who successfully displaces to another point will be allowed (1) $300.00 relocation expense plus either (2) Actual moving expenses for household effects up to a maximum of 3,000 pounds gross weight for a single employee and up to a maximum of 8,000 pounds gross weight for an employee with one dependent plus an additional 500 pounds gross weight for each additional dependent or (3) A sum of money equal to the existing tariff for moving 5,500 pounds of household effects between the two points. All employees in that classification at that point who were furloughed within one hundred and twenty (120) days prior to the date the last employee in that classification was furloughed from that point who successfully displaces to another point will be allowed (4) $300.00 relocation expense plus either (5) The amount of a substantiated bill from an ICC accredited moving company not to exceed the allowances specified in (2) above or (6) A sum of money equal to the existing tariff for moving 5,500 pounds of household effects between the two points. Very truly yours, /s/ J. C. Hilly J. C. Hilly Vice President Labor Relations Agreed and Accepted: /s/ Quenton A. Kerr Quenton A. Kerr 177 November 1, 1978 Mr. Quenton A. Kerr President-General Chairman District 142 International Association of Machinists and Aerospace Workers 400 N.E. 32nd Avenue Kansas City, Missouri 64116 Dear Mr. Kerr: The parties recognize that the current regulatory environment may present serious competitive challenges which can adversely affect the Company and its employees. Accordingly, in order to provide the Company an opportunity to test new markets with minimum disruption of the workforce, after the signing of this Agreement, whenever the Company institutes scheduled flight activity into a location not so presently served, the Vice President - Labor Relations or his designee and the President-General Chairman of District 142 or his designee will meet to discuss the application of the TWA-IAM Agreement at that location in a timely way prior to the institution of such service. It is agreed and recognized that any agreement by the Union and Company to waive or modify the TWA-IAM Agreement is to be temporary and sets no precedent and is not to be referred to in future contract interpretations and applications. Very truly yours, /s/ J. C. Hilly J. C. Hilly Vice President Labor Relations Agreed and Accepted: /s/ Quenton A. Kerr Quenton A. Kerr 178 January 28, 1983 Mr. Quenton A. Kerr President-General Chairman District 142 International Association of Machinists and Aerospace Workers 400 N.E. 32nd Street Kansas City, Missouri 64116 Dear Mr. Kerr: This is to confirm our agreement that TWA-IAM Guards will perform the required passenger screening function at TWA-JFK facilities including passengers of all other carriers using those facilities. It is further agreed that the action taken by the Company to resolve this issue in the manner described above will not in any way be referred to by either party in regard to any question relating to the establishment of the IAM Guard classification at any point for the purpose of performing the passenger screening function nor will this action reverse the precedent set in arbitration decisions rendered on this issue. Very truly yours, /s/ Ralph P. Craviso Ralph P. Craviso Director Labor Relations, Ground Agreed and Accepted: /s/ Quenton A. Kerr Quenton A. Kerr 179 January 28, 1983 Mr. Quenton A. Kerr President-General Chairman District 142 International Association of Machinists and Aerospace Workers 400 N.E. 32nd Street Kansas City, Missouri 64116 Dear Mr. Kerr: It is agreed between the parties that the following sequence will be used by the Company in filling Crew Chief openings in classifications Crew Chief Mechanic and below: (1) Restoration of forces, that is, recall the most senior reduced Crew Chief(s) at the point or on lay off status at the point. All Crew Chief opening(s) will be filled by such employee(s) in seniority order. If a Crew Chief opening(s) still exists after exhausting this procedure, then (2) below will be followed. (2) If a Crew Chief opening(s) still exists, the Company will consider the opening(s) to be in the basic classification and will recall to the point the most senior employee(s) with recall rights in the basic classification. (a) After recalling such employee(s), the Crew Chief position(s) will be filled by the senior reduced Crew Chief(s) at the point. (b) If the Crew Chief opening(s) remain unfilled, the Company will bid the Crew Chief position(s) in accordance with Article 10. The above procedure will be followed only when the Crew Chief opening(s) adds to the total headcount in the combined Crew Chief and basic classification at the point. Very truly yours, /s/ Ralph P. Craviso Ralph P. Craviso Director Labor Relations, Ground Agreed and Accepted: /s/ Quenton A. Kerr Quenton A. Kerr 180 January 28, 1983 Mr. Quenton A. Kerr President-General Chairman District 142 International Association of Machinists and Aerospace Workers 400 N.E. 32nd Street Kansas City, Missouri 64116 Dear Mr. Kerr: During the course of negotiations leading to this Agreement, the parties discussed the problems related to reduction in force in the basic classification vis-a-vis the Crew Chief classification. The parties agree that prior to any reduction in force the Company will review the staffing needs subsequent to the reduction and if appropriate effect a reduction in the Crew Chief classification concurrently with the reduction of the basic classification. This letter is not intended by the parties to determine Crew Chief staffing by the Company. Very truly yours, /s/ Ralph P. Craviso Ralph P. Craviso Director Labor Relations, Ground Agreed and Accepted: /s/ Quenton A. Kerr Quenton A. Kerr 181 April 10, 1992 Mr. William O'Driscoll President - General Chairman District Lodge 142 International Association of Machinists and Aerospace Workers 400 N.E. 32nd Street Kansas City, Missouri 64116 Dear Mr. O'Driscoll: This is to confirm the agreement reached between the parties during negotiations concerning the receipt and dispatch of aircraft and deicing. At stations other than the Overhaul Base, Technical Service locations, and major stations where mechanics are staffed, the crew chief mechanic shall be responsible for the receipt and dispatch functions and deicing. When a mechanic is not available, he may utilize a ramp serviceman to assist. At stations where mechanics are not staffed, the crew chief ramp serviceman shall have the responsibility for receipt and dispatch and deicing functions. At stations where station agents are staffed, the Employee in Charge shall have the responsibility for receipt and dispatch and deicing functions. All receipt and dispatch and deicing functions will remain included in the computation of Mechanic's work in determining whether Mechanic staffing is required under the Four Hour Rule. Very truly yours, /s/ William L. Schecter William L. Schecter Staff Vice President Labor Relations Agreed and Accepted: /s/ William O'Driscoll William O'Driscoll 182 April 10, 1992 Mr. William O'Driscoll President - General Chairman District Lodge 142 International Association of Machinists and Aerospace Workers 400 N.E. 32nd Street Kansas City, Missouri 64116 Dear Mr. O'Driscoll: This is to confirm the agreement reached during negotiations regarding the denial of Worker's Compensation benefits because of controverted claims. When an employee is denied weekly worker's compensation benefits because the claim is controverted, the employee shall, upon proper application, be paid weekly disability income, under the weekly disability income program, until the issue has been resolved. Proper application shall include a representation by the employee that in the event the claim is later determined to be compensable as an industrial injury, there will be no duplication of benefits. If the foregoing accurately reflects your understanding of our agreement, please sign where indicated below. Very truly yours, /s/ William L. Schecter William L. Schecter Staff Vice President Labor Relations Agreed and Accepted: /s/ William O'Driscoll William O'Driscoll 183 April 10, 1992 Mr. William O'Driscoll President - General Chairman District Lodge 142 International Association of Machinists and Aerospace Workers 400 N.E. 32nd Street Kansas City, Missouri 64116 Dear Mr. O'Driscoll: This is to confirm the agreement reached between the parties during negotiations concerning the greasing and oiling of automotive and non- motorized ground equipment. It is agreed that when such equipment is being repaired or having periodic maintenance performed by Mechanics, a Mechanic will be responsible for changing or adding oil and greasing. When such equipment is not in the garage for preventative maintenance or repair, Rampservicemen shall be responsible for adding oil and greasing as set forth in Article 4(a)(13). At locations where Mechanics are not staffed, the current practice will continue. If the foregoing accurately reflects our understanding, please sign where indicated below. Very truly yours, /s/ William L. Schecter William L. Schecter Staff Vice President Labor Relations Agreed and Accepted: /s/ William O'Driscoll William O'Driscoll 184 April 10, 1992 Mr. William O'Driscoll President - General Chairman District Lodge 142 International Association of Machinists and Aerospace Workers 400 N.E. 32nd Street Kansas City, Missouri 64116 Re: Station Staffing Review Committee Dear Mr. O'Driscoll: This will confirm the agreement of the parties to establish a standing committee. The function of this committee shall be to review whether or not to staff mechanics and/or ramp servicemen at stations on the TWA system where they are presently not staffed. In determining whether a particular station(s) exceeds the four hour rule, (man-minute calculation for the Four-Hour Rule shall be mutually agreed upon by the parties.) the committee shall evaluate the amount of work described in Article 4 (Job Description) of the TWA/IAM Agreement in the context of the existing and anticipated flight schedules. When the committee has determined that a station(s) activity has exceeded the Four Hour Work Rule on a shift and/or new hub cities are opened, the Company will staff the station(s) with the appropriate classification(s) in accordance with Article 2 (Scope of Agreement) and Article 4 (Classification of Work) of the TWA/IAM Agreement. If the foregoing accurately reflects your understanding of our agreement, please sign where indicated below. Very truly yours, /s/ William L. Schecter William L. Schecter Staff Vice President Labor Relations Agreed and Accepted: /s/ William O'Driscoll William O'Driscoll 185 April 10, 1992 Mr. William O'Driscoll President - General Chairman District Lodge 142 International Association of Machinists and Aerospace Workers 400 N.E. 32nd Street Kansas City, Missouri 64116 Re: Procedures for Emergency Overtime Dear Mr. O'Driscoll: This will confirm our understanding regarding the procedures for calling emergency overtime. 1. The Company will notify the Union Representative on duty of the nature of the emergency, the anticipated duration of the emergency and the number of people needed. 2. Prior to declaring an emergency, the Company will make every reasonable effort to secure voluntary overtime and ask for volunteers. 3. Overtime (pre-shift) will continue to be solicited to relieve the people affected by the emergency. 4. Employees forced to work will be held in the inverse order of seniority. 5. An up-to-date crew list with seniority dates will be kept in the Overtime Office and Supervisor's Office. Very truly yours, /s/ William L. Schecter William L. Schecter Staff Vice President Labor Relations Agreed and Accepted: /s/ William O'Driscoll William O'Driscoll 186 April 10, 1992 Mr. William O'Driscoll President - General Chairman District Lodge 142 International Association of Machinists and Aerospace Workers 400 N.E. 32nd Street Kansas City, Missouri 64116 Dear Mr. O'Driscoll: This will confirm our understanding reached during negotiations leading to the Agreement dated April 10, 1992, as to the eligibility of employees to take Mechanic examinations. Employees in classifications below mechanic, enrolled in a mechanic specialty program, in an accredited school or college, will be eligible to apply for a mechanic examination in that specialty providing his her qualification sheet on file contains a record of such enrollment 60 days prior to the successful completion of the course. The employee will be eligible to bid for that specialty providing he/she has met the requirements of Article 5(a)(20)(b) and Article 6(f)(12)(b) of the Agreement. The employee must complete the course for that specialty prior to filling the vacancy. Very truly yours, /s/ William L. Schecter William L. Schecter Staff Vice President Labor Relations Agreed and Accepted: /s/ William O'Driscoll William O'Driscoll 187 April 10, 1992 Mr. William O'Driscoll President - General Chairman District Lodge 142 International Association of Machinists and Aerospace Workers 400 N.E. 32nd Street Kansas City, Missouri 64116 Dear Mr. O'Driscoll: The parties, having discussed the growing shortage of qualified mechanics in the industry, agree that it is in their mutual interest to continue to discuss and on a mutually agreeable basis experiment with new upgrading techniques and to explore new on the job and off duty training programs. Very truly yours, /s/ William L. Schecter William L. Schecter Staff Vice President Labor Relations Agreed and Accepted: /s/ William O'Driscoll William O'Driscoll 188 August 1, 1999 Mr. Edward LaClair General Chairman District Lodge 142 400 NE 32nd Street Kansas City, MO 64116 Dear Mr. LaClair: This will confirm our understanding reached during negotiations concerning Transitional Duty for employees with a temporary disability. 1. An employee returning from illness or injury may be given a transitional duty assignment providing such transitional duty assignment is available in his classification and on his bid shift. If no assignment is available in his classification on his bid shift, he may be given a transitional duty assignment in a different classification and/or shift by mutual agreement between the local management and the IAM Grievance Committee (except MCI - Relief Committee). 2. Transitional duty assignments shall be for a period of up to ninety (90) days. By mutual agreement between local management and the IAM Grievance Committee (except MCI - Relief Committee). Such assignment may be extended in up to thirty (30) days increments. 3. Employees on transitional duty assignment will not be eligible to work overtime during such assignments. 4. Employees on transitional duty assignment will observe all holidays. 5. Transitional duty assignments will be made based on the employee's ability to perform work. 6. The local IAM Grievance committee shall be advised in advance of any employee being assigned to transitional duty. The Local Manager or his designee shall meet with the Local IAM Grievance Committee periodically to review any complaints raised by employees about the use of transitional duty at the location. 7. This provision shall in no way limit the rights of an employee who is covered by the Americans with Disabilities Act. Very truly yours, /s/ Linda Ferchland Linda Ferchland Agreed and Accepted: Director Labor Relations - Ground /s/ Ed LaClair Ed LaClair 189 April 10, 1992 Mr. William O'Driscoll President - General Chairman District Lodge 142 International Association of Machinists and Aerospace Workers 400 N.E. 32nd Street Kansas City, Missouri 64116 Dear Mr. O'Driscoll: This will confirm conversations between the Company and the Union during the course of negotiations leading to the IAM-TWA Agreement signed April 10, 1992. In instances where the manufacturer of aircraft parts or components offers a warranty on its product, the parties agree that work to be performed under the warranty is work within the jurisdiction of employees covered by the Agreement. The parties acknowledge, however, that any work performed by non- bargaining unit employees under an original manufacturer's warranty would be justified. In addition, the purchase of an extended warranty may be justified under certain circumstances, such as cost of tooling or infrequency of maintenance. Purchase of an extended warranty will be subject to the Union's agreement which will not be unreasonably withheld in accordance with the principles stated herein. Very truly yours, /s/ William L. Schecter William L. Schecter Staff Vice President Labor Relations Agreed and Accepted: /s/ William O'Driscoll William O'Driscoll 190 April 10, 1992 Mr. William O'Driscoll President - General Chairman District Lodge 142 International Association of Machinists and Aerospace Workers 400 N.E. 32nd Street Kansas City, Missouri 64116 Dear Mr. O'Driscoll: This will confirm our understanding reached during negotiations which led to the Agreement dated March 1, 1992. The Company will establish the Metal and Machine Shop Specialties at the St. Louis Technical Service location. The Company will post the necessary vacancies for bid among the St. Louis mechanic group not later than thirty (30) days after the signing of the Agreement. Thereafter the Company will modify the bidding document to include the additional specialties. Very truly yours, /s/ William L. Schecter William L. Schecter Staff Vice President Labor Relations Agreed and Accepted: /s/ William O'Driscoll William O'Driscoll 191 April 10, 1992 Mr. William O'Driscoll President - General Chairman District Lodge 142 International Association of Machinists and Aerospace Workers 400 N.E. 32nd Street Kansas City, Missouri 64116 Dear Mr. O'Driscoll: This will confirm our understanding reached during negotiations that in the event of a merger, acquisition, combination or any comparable transaction in which (1) TWA is the surviving carrier and (2) the NMB has determined that no certifications for the crafts or classes currently represented by the IAM exist post-transaction, TWA hereby agrees to recognize the IAM for the purposes of collective bargaining for employees in such crafts or classes. Very truly yours, /s/ William L. Schecter William L. Schecter Staff Vice President Labor Relations Agreed and Accepted: /s/ William O'Driscoll William O'Driscoll 192 COMBINING RE&I MECHANIC SPECIALTIES INTO ONE SPECIALTY NAMED AVIONICS The following constitutes our understanding of the above subject. The existing specialties and seniority groups will be changed as follows: MCI - --- Instrument, Electrical and Radio specialties combined into a specialty named Avionics. The seniority groups at MCI will be: 1. Airframe Hangar 2. Airframe Shop 3. Power Plant Shop MBM - --- Electro and Electronics specialties combined into a specialty named Avionics. LAX - --- Electro and Electronics specialties combined into a specialty named Avionics. SFO - --- Radio/Electric into a specialty named Avionics. STL - --- Electro and Electronics specialties combined into a specialty named Avionics. The seniority groups at STL will be: 1. Hangar/Line Avionics 2. Shop Avionics NYC METRO - --------- Electro and Electronic specialties combined into a specialty named Avionics. SECURITY No reductions will result from these combinations. LICENSE REQUIREMENTS 1. No new requirements will be instituted unless required by the appropriate section of the TWA/IAM Agreement or new government regulations. An FCC license is not presently required for this specialty per the revised FCC rules effective November 11, 1984. 193 2. The position of Crew Chief Mechanic, Avionics Airframe Shop, shall require the possession of the General Radio Telephone license. An exception to the above is made for all personnel who, upon the date of signing of this Agreement, are eligible to bid for crew chief positions in RE&I Shops (specifically having passed the Part II examination for any of the existing RE&I specialties). Further, any Personnel successfully completing the existing Part II exam for any one of these specialties within six (6) months following the signing of this agreement shall be eligible for bidding for crew chief positions. SENIORITY LISTS All persons currently in the affected specialties will be considered qualified for the new specialty of Avionics, The individual seniority lists will be combined into a common seniority list for each seniority group (seniority groups are listed in the beginning of this document). QUALIFICATIONS Those employees possessing the Part I Electric/Electro exam or who previously completed a trial period in any one of the Radio/Electronics, Electric/Electro, or Instrument specialties or who possess a Radio- telephone license, will be considered qualified for the Avionics specialty. Those employees who possess the Part II exam in any one of the Radio/Electronics, Electric/Electro, or Instrument specialties prior to the signing of this agreement or who pass any of the existing Part II exams in the six (6) months following the signing of this agreement will be considered qualified for an Avionics specialty crew chief position. CREW CHIEFS No reduction of Crew Chiefs will result from the specialty combination contained in this agreement. MECHANIC EXAMINATIONS Exams for the new specialty "Avionics" will be created as soon as possible. The "Joe Doke's" bidding guide will be revised to reflect the specialty champs. REASSIGNMENT OF WORK It is recognized that some work tasks presently performed by the various RE&I specialties may, by its nature, be more appropriately accomplished by a mechanical related specialty. These changes will be effected through "6A" committee established by separate letter signed concurrently with this agreement. TRAINING In order for the new specialty of "Avionics" to be effective, considerable additional training will be needed. A training curriculum will be established as soon as practical. The availability of qualified instructors, vendor training classrooms, and related items, make a calendar 194 commitment impossible at this time, but every effort will be made to expedite a time table. Field locations will provide training as required to insure the effectiveness of the new specialty and to meet operational requirements. This training will also be expedited. VACATIONS For the calendar year 1992, vacation selection was based on separate seniority lists for the specialties combined in this agreement. No forced vacation re-selections are to occur as a result of shift/day off realignments caused by these combinations during the calendar year 1992. Movement between the new seniority groupings via the bid procedure during 1992 will be subject to the terms of the agreement. Beginning in 1993, vacation selection will be from the new specialty "Avionics" seniority lists for each seniority grouping. SHIFT AND DAY OFF BIDS Utilizing the combined seniority lists, a shift and day off realignment will be completed within thirty (30) days following the signing of this agreement. OVERTIME Until adequate training is completed, overtime requirements may be handled utilizing the original separate seniority lists. When sufficient training is completed, overtime will be called using the combined seniority lists. Since training requirements vary by seniority group, no firm calendar can be made for all areas. However, in no case will the separate lists be utilized in excess of twelve (12) months. Individuals transferring into a department that is utilizing separate seniority lists for overtime solicitation will be placed on the appropriate overtime list based on their general skills and work experience until such time as training levels allow the use of the combined lists. The Parties have reached this agreement with the intent of improving the operations. If in practice these changes do not result in the desired improvements, the parties have an obligation to discuss and resolve the problem areas. Dated: April 10, 1992 /s/ William L. Schecter /s/ William O'Driscoll 195 COMBINATION OF RE&I INSPECTION INTO A&P INSPECTION GROUP The following constitutes our understanding of the above subject. The MCI Radio/Electric Inspection group and the MCI Instrument Shop Inspection group will be merged into the MCI Airframe Overhaul Inspection group. SECURITY Effective, with the signing of this agreement, the four (4) existing MCI Radio/Electric Inspectors and the two (2) existing MCI Instrument Shop Inspectors will be merged into the MCI Airframe Overhaul Inspection group. Of the six (6) existing RE&I Inspectors, four (4) presently have the qualification (hold an A&P license) required for an Airframe Overhaul Inspector and they can be immediately placed in the Airframe Inspection group by merging their inspection seniority with the existing Airframe Overhaul seniority list. The inspection seniority will permit them to hold the shift and days off of their choice. One of these four is a Crew Chief Inspector. He is qualified as a Crew Chief Airframe Overhaul Inspector and his crew chief seniority will permit him to hold the shift and days off of his choice. The two (2) remaining RE&I Inspectors, R. K. Blundell and J. C. Frazer, do not presently hold the FAA A&P license required for the Airframe Inspection group. These two inspectors will be maintained as "shop" inspectors. CREW CHIEFS No reduction of Crew Chiefs will result from this merger of groups. TRANSFER OF WORK Existing RE&I Inspector work tasks will be transferred to the Airframe Overhaul Inspector group. VACATIONS For the calendar year 1992, vacation selection was based on separate seniority lists for the specialties combined in this agreement. No forced vacation reselection will occur as a result of shift/day off realignments caused by this merger during 1992. Movement between seniority groups via the bid procedure during 1992 will be subject to the terms of the agreement. Beginning in 1993, vacation selection will be from the single merged seniority list for the Airframe Overhaul seniority group. SHIFT/DAY OFF REALIGNMENT Within thirty (30) days of the signing of this agreement, a shift/day off realignment will be conducted in the Airframe Overhaul Inspection group. Dated: April 10, 1992 /s/ William L. Schecter /s/ William O'Driscoll 196 COMBINATION OF LST ELECTRICAL AND ELECTRONICS SPECIALTIES AT JFK AND LAX INTO LST AVIONICS SPECIALTY The following constitutes our understanding of the above subject. Effective with the signing of this agreement, the LST specialties of Electrical and Electronics at JFK and LAX (the only locations where these specialties exist) will be merged into the LST specialty of Avionics. Thereafter, the LST specialties of Electrical and Electronics will no longer exist. SECURITY Individuals holding seniority in the LST specialties of Electrical or Electronics will be deemed qualified for the LST specialty of Avionics. VACATIONS For the calendar year 1992, vacation selection was based on the separate specialties seniority lists. No forced vacation re-selection will occur as a result of the above combination of specialties. TRAINING Additional training will be required to ensure the individuals involved in this combination are fully competent in the specialty of Avionics. The Company will expedite this training as much as practical considering the availability of instructors, classrooms, etc. Dated: April 10, 1992 /s/ William L. Schecter /s/ William O'Driscoll 197 COMBINATION OF PLANT MAINTENANCE ELECTRICAL AND PLANT MAINTENANCE INSTRUMENT MCI Plant Maintenance Electrical and Plant Maintenance Instrument specialties combined into a specialty named Plant Maintenance Electronics. SECURITY No reductions will result from this combination. CREW CHIEF MECHANIC No reduction of Crew Chiefs will result from the specialty combination contained in this Agreement. The position of Crew Chief Mechanic, for all personnel who, upon the date of signing this Agreement, are eligible to bid for Crew Chief positions in Plant Maintenance Instrument and Plant Maintenance Electrical (specifically having passed the Part II examination for any existing P/M Electrical and P/M Instrument specialties). Further, any personnel successfully completing the existing Part II exam for any of these specialties within six (6) months following the signing of this Agreement shall be eligible for bidding for Crew Chief positions. SENIORITY LISTS All persons currently in the affected specialties will be considered qualified for the new specialty of Plant Maintenance Electronics. The individual seniority list will be combined into a common seniority list. QUALIFICATIONS Those employees possessing the Part I Plant Maintenance Electric Exam or Plant Maintenance Instrument Exam, or who previously completed a trial period in any one of the Plant Maintenance Electrical or Plant Maintenance Instrument specialties will be considered qualified for the Electronics specialty. Those employees who possess the Part II exam in any one of the Plant Maintenance Electrical or Plant Maintenance Instrument specialties prior to the signing of this Agreement or who pass any of the existing Part II exams in the six (6) months following the signing of this Agreement will be considered qualified for a Plant Maintenance Electronics specialty Crew Chief position. 198 MECHANIC EXAMINATIONS Exams for the new specialty "Plant Maintenance Electronics" will be created as soon as possible. The "Joe Dokes" bidding guide will be revised to reflect the specialty changes. TRAINING In order for the new specialty of Plant Maintenance Electronics to be effective, considerable additional training will be needed. A training curriculum will be established as soon as practical. The availability of qualified instructors, vendor training, classrooms, and related items, make a calendar commitment impossible at this time, but every effort will be made to expedite a timetable. Field locations will provide training as required to insure the effectiveness of the new specialty and to meet operational requirements. This training will also be expedited. VACATIONS For the calendar year 1992, vacation selection was based on separate seniority lists for the specialties combined in this Agreement. No forced vacation re-selections are to occur as a result of shift/day off realignments caused by these combinations during the calendar year 1992. Beginning in 1993, vacation selection will be from the new specialty Plant Maintenance Electronics seniority lists. SHIFT AND DAY OFF BIDS Utilizing the combined seniority lists, a shift and day off realignment will be completed within thirty (30) days following the signing of this Agreement. OVERTIME Until adequate training is completed, overtime requirements may be handled utilizing the original separate seniority lists. When sufficient training is completed, overtime will be called using the combined seniority lists. Since training requirements vary by seniority group, no firm calendar can be made for all areas. However, in no case will separate lists be utilized in excess of twelve (12) months. Individuals transferring into a department that is utilizing separate seniority lists for overtime solicitation will be placed on the appropriate overtime list based on their general skills and work experience until such time as training levels allow the use of the combined lists. The parties have reached this Agreement with the intent of improving the operations. If in practice these changes do not result in the desired improvements, the parties have an obligation to discuss and resolve the problem areas. Dated: April 10, 1992 /s/ William L. Schecter /s/ William O'Driscoll 199 JOINT TWA-IAMAW DRUG AND ALCOHOL POLICY I. Preamble - It is the policy of TWA and the IAM to protect the -------- health and safety of all employees of the Company. An employee's misuse of drugs or alcohol on the job not only endangers the employee himself, but also threatens the safety of co-workers and members of the traveling public. The primary goal of this policy is to encourage employees who are experiencing difficulty with drugs or alcohol to undertake immediate and effective measures to address such problems voluntarily. While the emphasis is on voluntary treatment, the parties recognize the need for the enforcement of reasonable rules for regulating employee conduct in the workplace. II. Rehabilitation - The TWA-IAM Special Health Services Program is an -------------- employee assistance program jointly administered by representatives of the Company and the Union. Employees in need of assistance who contact Special Health Services representatives will be referred for appropriate treatment within their own communities. Institutions or outside services which are utilized in such rehabilitation shall be selected by a committee made up of one TWA and one IAM representative. The cost of treatment will be paid through the group medical insurance policy. When an employee requests the assistance of Special Health Services, such request and any referral will be held in strict confidence. Neither supervisory personnel nor Union officials will be informed of the nature of an employee's participation in the program without his consent. If an employee must be absent from work in order to participate in the program, such absence will normally be coded in Company attendance records only as a "personal illness - Special Health Services". III. Testing - The first step in addressing the problem of drugs and ------- alcohol in the workplace is that of identifying the substance abuser. Therefore, testing shall be conducted under the following circumstances. 1. When there is a reasonable suspicion that an employee is under the influence of or impaired by alcohol or drugs, that employee may be required to undergo testing to confirm or disprove the suspicion. This is called testing "for cause". Any employee refusing to submit to a test where reasonable suspicion exists shall be discharged. 2. An employee who has been found to be under the influence of or impaired by alcohol or drugs within the preceding two years may be tested at any time. This is called "random" testing. 3. Employees will be tested as required by regulations of the Department of Transportation or other governmental agency. Such testing includes both testing for cause and random testing. 200 The following general principles will apply to testing: The Company's knowledge of off duty possession or use of drugs and/or alcohol by an employee within twenty-four (24) hours of the time such employee reports to work may be used as grounds for testing such employee. The Company's knowledge of such possession or use outside of said twenty-four (24) hour period shall not be grounds for testing. Any employee who is required to submit to urinalysis and who requests will be permitted to give a split sample that will be submitted to a licensed, accredited laboratory selected by the IAM and agreed to by TWA. TWA will bear the cost of such test. If split samples are submitted and the results are one positive and one negative finding, the results shall be considered negative. Both tests must be positive on a substance to be considered positive. Both TWA and the IAM will receive copies of the results of both samples. The parties agree that a laboratory's positive finding of drugs and/or alcohol is conclusive. All testing shall be performed at a laboratory or medical facility off TWA property. However, a simple, preliminary alcohol test which does not require drawing blood will be given (on or off TWA property) and only if the results of such tests are positive will a blood test be administered. In the event of an accident where the Company is considering testing an employee involved, a shop steward or other Union representative, where available, shall be allowed to participate in such investigation. The final determination concerning the results of such investigation shall be by the Company. In the event of an accident requiring first aid, such first aid will be administered prior to any drug or alcohol testing. IV. Disciplinary Guidelines - Employees who are found actually ----------------------- drinking or possessing or taking drugs or alcohol while on Company premises will be subject to discipline up to and including discharge. The Company's knowledge of off duty possession or use of drugs and/or alcohol by an employee within twenty-four (24) hours of the time such employee reports for work shall not be used as grounds for discipline for the first occurrence but may be grounds for testing such employee. Employees who are suspected of drug or alcohol use, who are first offenders and who are not involved in accidents but who test positive will not be discharged but must successfully complete a rehabilitation program implemented and supervised by TWA and IAM personnel. 201 Employees involved in an accident who are suspended and test negative shall be returned to work and made whole for such suspension before discipline is assessed concerning the accident. Employees who are involved in an accident and test positive may be disciplined for the accident. They may not, however, be disciplined for using drugs or alcohol if the instance is the first occurrence under the policy. If such employee receives discipline less than discharge, then such employee must also successfully complete a rehabilitation program supervised by TWA and IAM personnel. Any employee who does not successfully complete the rehabilitation program may be discharged. Any employee entering a rehabilitation program after testing positive will be subjected to random testing during the course of the program and for three months after successful completion of the Program. However, in no event shall such random testing period exceed two years from the employee's return to work and if such employee tests positive as a result of the random tests, he may be discharged. Any employee who tests positive within two years from the date he enters a rehabilitation program may be discharged. An employee who tests positive at any time after two years from the date he entered such a program shall be referred to a joint Company-Union established committee for disposition of his case. Such committee shall be made up of one Company and one Union representative. If such committee cannot agree, the case shall be submitted to a neutral party jointly selected by the parties who is considered to be an expert in matters of this kind and such neutral shall have authority to make final determination which shall be binding upon both parties. V. General - The Union will select one employee who will work full ------- time on matters related to this program and who shall be paid on the same basis as a Full-Time Committeeman. The parties agree that changes in Federal laws or regulations affecting this policy shall be reviewed by the TWA and IAM representatives and such policy shall be amended to comply with such changes. Where state laws are found to be inconsistent with such new policy, these two representatives shall meet and agree upon how the policy shall be applied in such states. Dated: April 10, 1992 /s/ William L. Schecter /s/ William O'Driscoll 202 April 10, 1992 Mr. William O'Driscoll President - General Chairman District Lodge 142 International Association of Machinists and Aerospace Workers 400 N.E. 32nd Street Kansas City, Missouri 64116 Dear Mr. O'Driscoll: This will confirm our agreement reached during negotiations that Trans World Airlines, Inc. ("TWA") will establish and maintain a Labor Advisory Board of which the initial members shall be a Vice Chairman of TWA and two representatives of the International Association of Machinists and Aerospace Workers (the "IAM"). The Labor Advisory Board will meet at least quarterly and at least two (2) business days prior to each regularly scheduled TWA Board of Directors (the "Board') meeting and, to the extent practicable, each special Board meeting. At the option of the members, such meeting may be had by telephone. Otherwise, such meetings shall be held at the TWA offices in Mt. Kisco, New York or at such other location in the New York metropolitan area as the members shall select. The IAM representatives who are members of the Labor Advisory Board shall have the right to submit written presentation(s) or suggestion(s) not exceeding twenty (20) typewritten pages in length to the Board in connection with any regularly scheduled meeting or, to the extent practicable, any special meeting. If not satisfied with the report concerning the Board's consideration of any such written presentation or suggestion, the Labor Advisory Board shall have the right to appear at the next regular Board meeting or the next special Board meeting, to the extent practicable, for the purpose of making such presentation or suggestion in person. If any other craft or class of employees of TWA represented by a labor organization shall obtain more favorable corporate governance participation rights than those provided for in this letter, the IAM shall at its option be entitled to such more favorable corporate governance participation rights. TWA's representative on the Labor Advisory Board shall serve as the Labor Advisory Board's official liaison with Senior Management of TWA and the Board. The responsibilities of TWA's representative on the Labor Advisory Board shall be to advise the Senior Management of TWA and the Board. TWA agrees to make members of Senior Management available to the Labor Advisory Board on reasonable notice. 203 If the Vice Chairman initially designated by TWA to serve on the Labor Advisory Board shall be unavailable for any reason to serve in the capacity specified in this letter, the TWA Board shall, after consultation with the other members of the Labor Advisory Board, designate a successor who shall be reasonably acceptable to the remaining members of the Labor Advisory Board. Very truly yours, /s/ William L. Schecter William L. Schecter Staff Vice President Labor Relation's Agreed and Accepted: /s/ William O'Driscoll William O'Driscoll 204 April 10, 1992 Mr. William O'Driscoll President - General Chairman District Lodge 142 International Association of Machinists and Aerospace Workers 400 N.E. 32nd Street Kansas City, Missouri 64116 Dear Mr. O'Driscoll: This is to confirm our agreement that the Supplement to the Collective Bargaining Agreement dated as of April 10, 1992, which provides for protective covenants, the payment of miscellaneous fees and other benefits is incorporated by reference into the Collective Bargaining Agreement. This letter is not intended to modify in any way the terms of the Supplement including without limitation the duration and termination provisions. Very truly yours, /s/ William L. Schecter William L. Schecter Staff Vice President Labor Relations Agreed and Accepted: /s/ William O'Driscoll William O'Driscoll 205 August 31, 1994 William O'Driscoll President - General Chairman District 142 International Association of Machinists and Aerospace Workers 400 NE 32nd Street Kansas City, MO 64116 Re: Cross Utilization Between Ramp Service Seniority Groups Dear Mr. O'Driscoll: This letter will confirm our agreement concerning the Company's ability to cross utilize employees in the ramp service and ground service seniority groupings. The parties agree that the Company may assign qualified ramp service and ground service employees to duties of the other seniority grouping as necessary to support the needs of the operation. The Company may not, however, so assign an employee who is on overtime unless voluntary overtime from within the seniority grouping in which the work is to be performed has been exhausted. Very truly yours, /s/ William L Schecter William L. Schecter Vice President Labor Relations Agreed and Accepted: /s/ William O'Driscoll William O'Driscoll 206 August 31, 1994 Mr. William O'Driscoll President - General Chairman District 142 International Association of Machinists and Aerospace Workers 400 N.E. 32nd Street Kansas City, MO 64116 SUBJECT: Mechanic and Related Agreement Full-Time Committee Staffing Dear Mr. O'Driscoll: This letter will confirm our agreement to review full-time union representative staffing in Kansas City, Chicago, Philadelphia and Los Angeles. Necessary adjustments to staffing will become effective January 1, 1995 or as otherwise agreed to. Very truly yours, /s/ Edward J. Paquette Edward J. Paquette Senior Vice President Operations Agreed and Accepted: /s/ William O'Driscoll William O'Driscoll 207 August 31, 1994 Mr. William O'Driscoll President - General Chairman District 142 International Association of Machinists and Aerospace Workers 400 N.E. 32nd Street Kansas City, Missouri 64116 SUBJECT: Shift Staffing Deviation Assistant Ramp Service Dear Mr. O'Driscoll: This letter will confirm our agreement, that at a particular location should a deviation for shift staffing be necessary, that management will meet with the local grievance committee and where the need is demonstrated for such deviations, the parties will resolve the details for staffing, assisted by the General Chairperson assigned to that location. Very truly yours, /s/ Edward J. Paquette Edward J. Paquette Senior Vice President Operations Agreed and Accepted: /s/ W. O'Driscoll William O'Driscoll 208 August 31, 1994 Mr. William O'Driscoll President - General Chairman District 142 International Association of Machinists and Aerospace Workers 400 N.E. 32nd Street Kansas City, MO 64116 SUBJECT: Assistant Ramp Service and Part-Time Guard Benefits Dear Mr. O'Driscoll: This letter will confirm our agreement that Ramp Service and Guard employees who are subject to furlough after the signing of this agreement, and who fill Assistant Ramp Service and Part-Time Guard vacancies will retain their current medical and dental benefits for themselves and their eligible dependents. Very truly yours, /s/ Edward J. Paquette Edward J. Paquette Senior Vice President Operations Agreed and Accepted: /s/ William O'Driscoll William O'Driscoll 209 August 31, 1994 Mr. William O'Driscoll President - General Chairman District 142 International Association of Machinists and Aerospace Workers 400 N.E. 32nd Street Kansas City, MO 64116 SUBJECT: Assistant Ramp Service and Part-Time Guard Vacancies at a Location Dear Mr. O'Driscoll: This will confirm our agreement that ramp service and guard employees who are subject to furlough after the signing of this agreement at a location where assistant ramp service and part-time guard vacancies are created will be permitted to fill these vacancies in seniority order prior to the vacancies being filled by system bid. Their election not to seek such vacancies will not affect their rights under Article 6 of the TWA-IAM Agreement. Very truly yours, /s/ Edward J. Paquette Edward J. Paquette Senior Vice President Operations Agreed and Accepted: /s/ William O'Driscoll William O'Driscoll 210 August 31, 1994 Mr. William O'Driscoll President - General Chairman District 142 International Association of Machinists and Aerospace Workers 400 N.E. 32nd Street Kansas City, MO 64116 Subject: Assistant Ramp Service and Part-Time Guard Vacancies Dear Mr. O'Driscoll: This letter will confirm our agreement that employees who are subject to furlough after the signing of this agreement, and elect to fill Assistant Ramp Service and Part-Time Guard vacancies at the time of their furlough will retain and continue to accrue seniority in their respective classifications from which he/she was reduced. If at a later date such employee desires to leave the Assistant or Part- Time position, he/she may do so without forfeiting seniority and recall rights in the higher classification(s). Such employees, however, who elect to leave these positions will not be eligible to receive furlough pay or furlough benefits. Very truly yours, /s/ William L. Schecter William L. Schecter Vice President Labor Relations Agreed and Accepted: /s/William O'Driscoll William O'Driscoll 211 August 31, 1994 Mr. William O'Driscoll President - General Chairman District 142 International Association of Machinists and Aerospace Workers 400 N.E. 32nd Street Kansas City, MO 64116 Subject: Additional Staffing Third Party Contract Work Dear Mr. O'Driscoll: This is to clarify the agreement reached regarding additional staffing for third party contract work. When additional staffing (Assistant RSP and P/T Guard) is required and agreed to for third party contract work, all such positions will be deemed to be temporary. The parties will agree upon the number of positions in each classification at each location which are attributable to such temporary work. Because the positions are temporary, reduced employees who have recall rights to the affected classifications may refuse recall and continue to retain their seniority and recall rights pursuant to Article 6(d)(7) of the TWA-IAM Agreement. This will not be deemed a refusal of recall. When this additional staffing is implemented, all such employees will be covered by the collective bargaining agreement for all purposes. Very truly yours, /s/ William L. Schecter William L. Schecter Vice President Labor Relations Agreed and Accepted: /s/ William O'Driscoll William O'Driscoll 212 August 31, 1994 William O'Driscoll President - General Chairman District Lodge 142 International Association of Machinists and Aerospace Workers 400 NE 32nd Street Kansas City, MO 64116 Subject: Assistant Ramp Service/Part-Time Guard Expiration Dear Mr. O'Driscoll: This letter will confirm our agreement reached during negotiations concerning Assistant Ramp Servicemen and Part - Time Guards. It is agreed that the amendments to the Assistant Ramp Serviceman letter of agreement and the provisions of the Part -Time Guard letter of agreement agreed to in the course of these negotiations will expire effective August 31, 1997. The status quo as of the amendable date of this Agreement with regard to the Assistant Ramp Serviceman letter of agreement will, therefore, be the provisions of the letter of agreement on page 126 of the TWA-IAM Agreement signed April 10, 1992 and the status quo with regard to Part - Time Guards will be the relevant provisions of Article 7 (Hours of Service) of the TWA-IAM Agreement signed April 10, 1992. Very truly yours, /s/ William L. Schecter William L. Schecter Vice President Labor Relations Agreed and Accepted: /s/ William O'Driscoll William O'Driscoll 213 August 31, 1994 Mr. William O'Driscoll President - General Chairman District 142 International Association of Machinists and Aerospace Workers 400 NE 32nd St. Kansas City, MO 64116 Subject: Meal Pickup and Delivery - JFK/LAX Dear Mr. O'Driscoll: This will confirm our agreement that ramp service employees will continue to pick up and deliver meals from the caterer facilities to/from the aircraft at JFK and LAX. Very truly yours, /s/ Edward J. Paquette Edward J. Paquette Senior vice President Operations Agreed and Accepted: /s/ William O'Driscoll William O'Driscoll 214 August 31, 1994 Mr. William O'Driscoll President - General Chairman District 142 International Association of Machinists and Aerospace Workers 400 N.E. 32nd Street Kansas City, MO 64116 SUBJECT: Dining Units Dear Mr. O'Driscoll: This letter will confirm our agreement that Article 2(d) of the Dining Service Employee's Agreement is deleted and the company will discontinue operations at the Dining Unit facilities at JFK and LAX. Very truly yours, /s/ Edward J. Paquette Edward J. Paquette Senior Vice President Operations Agreed and Accepted: /s/ William O'Driscoll William O'Driscoll 215 August 31, 1994 Mr. William O'Driscoll President - General Chairman District 142 International Association of Machinists and Aerospace Workers 400 N.E. 32nd Street Kansas City, MO 64116 SUBJECT: Furloughed Dining Unit Employees Currently Accruing Seniority Under the Mechanic and Related Agreement Dear Mr. O'Driscoll: This letter will confirm our agreement that dining unit employees furloughed as a result of the closing of the JFK and LAX dining units who are, at the time of this furlough, accruing seniority under the Mechanic and Related Agreement may elect at the time of furlough to displace on the system at that time only in such classification. Very truly yours, /s/ Edward J. Paquette Edward J. Paquette Senior Vice President Operations Agreed and Accepted: /s/ William O'Driscoll William O'Driscoll 216 August 31, 1994 Mr. William O'Driscoll President - General Chairman District 142 International Association of Machinists and Aerospace Workers 400 N.E. 32nd Street Kansas City, MO 64116 SUBJECT: Furloughed Dining Unit Employees Dear Mr. O'Driscoll: This letter will confirm our agreement that furloughed dining unit employees at JFK and LAX who are successful bidders to other IAM represented positions in any classification will maintain their rate of pay or higher whichever is applicable in effect on the date of their furlough from the Dining Unit. Very truly yours, /s/ Edward J. Paquette Edward J. Paquette Senior Vice President Operations Agreed and Accepted: /s/ William O'Driscoll William O'Driscoll 217 August 31, 1994 Mr. William O'Driscoll President - General Chairman District 142 International Association of Machinists and Aerospace Workers 400 N.E. 32nd Street Kansas City, MO 64116 SUBJECT: Dining Unit Employees Dear Mr. O'Driscoll: The Dining Unit employees (excluding Stores Clerks) furloughed as a result of the closing of the TWA Dining Units will continue to accrue company seniority. These employees will establish Fleet Service seniority as of the last date of operation of the dining unit to which he/she was assigned. These employees will be eligible for recall to any Fleet Service vacancies at the location from which they were furloughed. They may also bid to Fleet Service openings on TWA's system in accordance with Article 10(b)(3). Very truly yours, /s/ Edward J. Paquette Edward J. Paquette Senior Vice President Operations Agreed and Accepted: /s/ William O'Driscoll William O'Driscoll 218 August 31, 1994 Mr. William O'Driscoll resident - General Chairman District 142 International Association of Machinists and Aerospace Workers 400 N.E. 32nd Street Kansas City, MO 64116 SUBJECT: Dining Unit Stores Clerks Dear Mr. O'Driscoll: The Dining Unit Stores Clerks furloughed as a result of the closing of the TWA Dining Units will continue to accrue company seniority. These employees will establish Stores seniority under the Mechanic and Related Agreement and Fleet Service seniority as of the last date of operation of the dining unit to which he/she was assigned. These employees will be eligible for recall to the first opening in either Stores or Fleet Service at the location from which they were furloughed. They may also bid to Stores or Fleet Service openings on TWA's system in accordance with Article 10(b)(3). Very truly yours, /s/ Edward J. Paquette Edward J. Paquette Senior Vice President Operations Agreed and Accepted: /s/ William O'Driscoll William O'Driscoll 219 August 31, 1994 Mr. William O'Driscoll President - General Chairman District Lodge 142 International Association of Machinists and Aerospace Workers 400 NE 32nd Street Kansas City, MO 64116 Re: Medical/Dental Coverage Emergency Out of Network Dear Mr. O'Driscoll: This letter will confirm TWA's commitment concerning employees and eligible dependents who reside within geographic areas where preferred provider networks (PPO's) are available, but who must utilize non- network providers for emergency medical treatment while outside their PPO areas. Covered charges for such treatment will be reimbursed at the "in- network" rate. Employees and eligible dependents who can reasonably access providers within the network but who elect not to do so will be reimbursed for charges at the "out-of-network" rate. Very truly yours, /s/ William L. Schecter William L. Schecter Vice President Labor Relations Agreed and Accepted: /s/William O'Driscoll William O'Driscoll 220 August 31, 1994 Mr. William O'Driscoll President - General Chairman 41 District 142 International Association of Machinists and Aerospace Workers 400 N.E. 32nd Street Kansas City, Missouri 64116 Dear Mr. O'Driscoll: This letter will confirm our agreement that "after TWA shall have staffed according to the needs of the service", there shall be a reduction in TWA's overtime cost, such reduction to be accomplished through the modification of local agreements to provide that overtime will be utilized only on an "as needed" basis. Very truly yours, /s/ Edward J. Paquette Edward J. Paquette Senior Vice President Operations Agreed and Accepted: /s/ W. O'Driscoll William O'Driscoll 221 August 1, 1999 Mr. William O'Driscoll President - Directing General Chairman District 142 IAMAW 400 NE 32nd Street Kansas City, MO 64116 Subject: Air Freight Staffing Dear Mr. O'Driscoll: In settlement of grievances asserting air freight farm out violations (airports where the Company currently staffs RSP's but utilizes a vendor for freight handling), the Company agrees to the following: 1. The Company agrees to secure an air freight facility at SEA and staff it in accord with the provisions of the TWA-IAMAW agreement as expeditiously as possible. 2. The Company agrees to mutually develop with the IAM an Air Freight Agent classification on a trial basis and initiate a test of such an air freight handling process at ATL as expeditiously as possible. In addition, the Company and IAM representatives will meet to examine the overall handling process of air freight for the airline with the intent of creating methods which would maximize TWA's ability to improve its air freight revenue performance. All grievances concerning air freight farm out are withdrawn with prejudice. Yours very truly, /s/ Linda Ferchland Linda Ferchland Director Labor Relations Agreed and Accepted: /s/ William O'Driscoll William O'Driscoll 222 August 1, 1999 Mr. Al Calhoun General Chairperson District 142 IAMAW 400 NE 32nd Street Kansas City, MO 64116 SUBJECT: MD 80 LANDING GEAR IN-HOUSE REPAIR Dear Mr. Calhoun: TWA agrees to overhaul the MD-80 landing gear in-house as soon as approval has been obtained for the purchase of necessary spare landing gear components to support the repair process. The capital approval package has been prepared and will be placed on the agenda for approval at the June Capital Expenditure Review Committee meeting. Approval will be obtained at the June Meeting and TWA will locate and order the spare components. As soon as delivery dates are known, we will begin scheduling MD-80 landing gear for repair in our shops. Until this process reaches the point of knowing when the spare landing gear components will be delivered to TWA, we are unable to forecast an exact date for the first in-house landing gear overhaul. If the above accurately reflects our agreement, please sign this letter where indicated below. Very truly yours, /s/ Linda Ferchland Linda Ferchland Director Labor Relations AGREED AND ACCEPTED /s/ Al Calhoun Al Calhoun 223 August 1, 1999 Mr. William O'Driscoll President - Directing General Chairman District 142 IAMAW 400 NE 32nd Street Kansas City, MO 64116 SUBJECT: 757-PW 2037 Engine In-House Repair Dear Mr. O'Driscoll: We agree to perform a detailed review of the requirements necessary to repair PW2037 engines in-house. This will include cost estimates for the capital tooling and equipment necessary to perform the work, including the test cell modifications necessary to perform engine testing. The review will also assess shop space requirements, as well as the estimated engine volume. Also, manpower requirements need to be estimated. This data will then be used to perform an analysis which will aid in determining the viability of bringing this engine work into our shop. I estimate that this review can be completed within ninety (90) days. Very truly yours, /s/ James R. Jensen James R. Jensen Senior Vice President Maintenance and Engineering AGREED AND ACCEPTED /s/ William O'Driscoll William O'Driscoll 224 August 1, 1999 Mr. William O'Driscoll President - Directing General Chairperson District 142 IAMAW 400 NE 32nd Street Kansas City, MO 64116 SUBJECT: Status of Agreement Dear Mr. O'Driscoll: This letter will confirm our agreement and understanding that all local letters and agreements contained in the MCI Mini Agreement must conform to the TWA-IAM Collective Bargaining Agreement. Should any provision of the Mini Agreement create a conflict, the TWA-IAM Agreement for Mechanic and Related Employees will prevail. If the above accurately reflects our agreement, please sign this letter where indicated below. Very truly yours, /s/Linda Ferchland Linda Ferchland Director Labor Relations - Ground Agreed and Accepted: /s/ William O'Driscoll William O'Driscoll 225 August 1, 1999 Mr. Edward LaClair General Chairman IAM District Lodge 142 400 NE 32nd Street Kansas City, MO 64116 Subject: Unused Sick Leave Dear Mr. LaClair: Effective one year following date of signing, the Company will provide a lump sum payment for unused personal illness sick leave to those employees who retire from active status and meet the following criteria. The retiring employee must have a fully accrued personal illness bank of 120 days, have been in active status the past twelve (12) consecutive months and have achieved perfect attendance during such twelve (12) consecutive months preceding the effective date of retirement. For each day of unused sick leave the Company will pay an employee covered by this agreement five dollars ($5.00), for a total of six hundred dollars ($600). Very truly yours, /s/ Linda Ferchland Linda Ferchland Director Labor Relations Agreed and Accepted: /s/ Edward LaClair Edward LaClair 226 August 1, 1999 Edward LaClair General Chairperson IAM District Lodge 142 400 NE 32nd Street Kansas City, MO 64116 Dear Mr. LaClair: This will confirm our agreement during the course of negotiations that at stations where Mechanics are not staffed, the Company may use on-call maintenance to put TWA Owned Motorized Automotive Ground Equipment (excluding jetways) back in service. All major maintenance and overhaul of this equipment will be performed in a similar manner as aircraft maintenance by Mechanics covered by this Agreement in accordance with Article 9 of the Collective Bargaining Agreement or TWA will have the failed equipment transported to a station staffed with IAM Mechanics that could effect repairs. Very truly yours, /s/Linda Ferchland Linda Ferchland Director Labor Relations Agreed and Accepted: /s/Edward LaClair Edward LaClair 227 August 1, 1999 Mr. Edward LaClair General Chairperson District 142 International Association of Machinists and Aerospace Workers 400 N.E. 32nd Street Kansas City, MO 64116 Subject: Article 6(a) Company Seniority Dates Dear Mr. LaClair: This will confirm the agreement reached between the Company and the Union that the adjustment of company seniority dates will apply prospectively only effective with the signing of a new collective bargaining agreement. The new language of Article 6(a) will apply to active employees as of the date of signing. Retirees will not be eligible for this change and employees who are inactive (i.e., furlough, leave of absence) will have their company seniority date readjusted, if necessary, upon return to active employment status. Additionally, this letter will confirm that the only employment date which will be readjusted will be the company seniority date of those employees whose company seniority dates were previously adjusted due to part-time service. There will continue to be adjustments of other seniority dates to reflect assistant/part-time service governing classification seniority, longevity, pay seniority, accrual of sick/occupational injury, layoff pay, vacation and retirement benefits in accordance with the provisions of the TWA-IAM Agreement. Very truly yours, /s/Linda Ferchland Linda Ferchland Director Labor Relations Agreed and Accepted: /s/ Ed LaClair Edward LaClair 228 August 1, 1999 Mr. Ed LaClair General Chairperson District 142 International Association of Machinists and Aerospace Workers 400 N.E. 32nd Street Kansas City, MO 64116 Subject: Recall Rights Dear Mr. LaClair: This will confirm our agreement concerning the recall rights of furloughed employees who are eligible for recall to both Ramp Service and Assistant Ramp Service positions. An employee who elected an Assistant Ramp Service position rather than system displacing or accepting furlough at the point when first reduced from full-time Ramp Service and is subsequently furloughed will continue to accrue Ramp Service seniority at the full-time rate and have recall to both positions. Upon recall to the Ramp Service classification, the employee must accept such at that time or forfeit all recall rights in the Ramp Service classification (full-time) and his name will be removed from the Ramp Service seniority roster. Upon refusal of such recall, he shall accrue seniority at one-half (1/2) the full time rate. This employee will still be eligible for recall to Assistant Ramp Service. If he then refuses recall to an Assistant Ramp Service position, such refusal will result in his loss of all seniority and his name will be removed from the seniority roster. Very truly yours, /s/Linda Ferchland Linda Ferchland Director Labor Relations Agreed and Accepted: /s/ Edward LaClair Edward LaClair 229 August 1, 1999 Mr. Edward LaClair General Chairman District Association of Machinists and Aerospace Workers 400 N.E. 32nd Street Kansas City, Missouri 64116 Dear Mr. LaClair: In confirmation of our discussions in the course of negotiations leading to the Agreement signed August 1, 1999, it is agreed that the work of the Fire Inspector classification will be consolidated into the Mechanic classification as Plant/Facility Maintenance. They may remain as Fire Inspectors and will not be replaced upon leaving the Fire Inspector position. For those Fire Inspectors who currently retain seniority in lower classifications they may exercise seniority in accordance with Article 6 and 10 at their current rate of pay. Yours very truly, /s/ Linda Ferchland Linda Ferchland Director Labor Relations Agreed and Accepted: /s/ Edward LaClair Edward LaClair 230 August 1, 1999 Mr. Ed LaClair General Chairman District Association of Machinists and Aerospace Workers 400 N.E. 32nd Street Kansas City, Missouri 64116 Subject: Fire Inspector Classification Dear Mr. LaClair: During the negotiations of the TWA - IAM Agreement signed August 1, 1999, the parties agreed to the incorporation of the Fire Inspector into the Mechanic (Plant Maintenance specialty) job description. Further it is agreed that the Fire Inspector classification will be reduced through attrition. During the interim period, Plant/Facility Mechanics will be cross utilized to support the needs of the operation. Following this attrition period, the parties agree to remove all references to Fire Inspector and place the Article 4 job description language into Article 4(a)(7) of the TWA-IAM Agreement. Very truly yours /s/ Linda Ferchland Linda Ferchland Director Labor Relations Agreed and Accepted: /s/ Edward LaClair Edward LaClair 231 August 1, 1999 Mr. Edward LaClair General Chairman IAM District Lodge 142 400 NE 32nd St. Kansas City, Mo. 64116 Subject: Field Service - Inspection Dear Mr. LaClair, This will confirm our agreement in regard to the use of Inspectors on Field Service. An Inspector will be dispatched for Field Service from a station where Inspectors are located when it is known in advance that the field service assignment to a TWA non-mechanic staffed station will require inspection work. The work of an Inspector at a TWA Mechanic staffed station shall be performed by an Inspector or Inspector Designee at that station. Very truly yours, /s/ Linda Ferchland Linda Ferchland Director Labor Relations Agreed and Accepted: /s/ Edward LaClair Edward LaClair 232 August 1, 1999 Mr. William O'Driscoll President - Directing General Chairperson International Association of Machinists And Aerospace Workers 400 NE 32nd Street Kansas City, MO 64116 Subject: Stock Distribution Dear Mr. O'Driscoll: On July 31, 2000 or as soon as practicable after fulfillment of all necessary requirements associated with the registration, listing, issuance and distribution of stock certificates, the Company will distribute one million (1,000,000) shares of TWA common stock to IAM represented employees. Distribution of such shares of stock will be determined by the IAM in its sole discretion. On January 31, 2001 or as soon as practicable after fulfillment of all necessary requirements associated with the registration, listing, issuance and distribution of stock certificates, the Company will distribute one million (1,000,000) shares of TWA common stock to IAM represented employees. Distribution of such shares of stock will be determined by the IAM in its sole discretion. On January 31, 2002 or as soon as practicable after fulfillment of all necessary requirements associated with the registration, listing, issuance and distribution of stock certificates, the Company will distribute one million (1,000,000) shares of TWA common stock to IAM represented employees. Distribution of such shares of stock will be determined by the IAM in its sole discretion. Very truly yours, /s/ Linda Ferchland Linda Ferchland Director Labor Relations-Ground Agreed and Accepted: /s/William O'Driscoll William O'Driscoll 233 August 1, 1999 Mr. William O'Driscoll President - Directing General Chairman International Association of Machinist And Aerospace Workers 400 NE 32nd Street Kansas City, MO 64116 Re: Staffing of Focus Stations Dear Mr. O'Driscoll: It is understood that during this agreement, TWA may designate one or more stations as a "Focus Station". The parties recognize the competitive challenges and risks which may adversely affect the Company and its employees. Accordingly, in order to provide the Company with an opportunity to test the viability of the Focus Stations and to avoid the disruption employees suffer from transfers which are unexpectedly temporary, upon the effective date of this Agreement, the IAM may agree to allow the Company to staff a Focus Station without all classifications required under the collective Bargaining Agreement. Thirty days before the designation of a station as a Focus Station, TWA shall provide written notice to the IAM in which it identifies the station as such, the frequency of service, and the anticipated number of employees in IAM-related classifications which will be staffed at such station. Should the IAM agree to permit the Company to staff a Focus Station without all IAM-related classifications, such permission shall be granted in increments of six months. At such time as the IAM terminates the company's ability to staff a Focus Station as described herein, the Company shall staff the Focus Station(s) in accordance with the Collective Bargaining Agreement and without regard to this Letter of Agreement. Accordingly, staffing pursuant to paragraph 1 is deemed to be temporary and sets no precedent and is not to be referred to in interpreting or applying any other provision of this Collective Bargaining Agreement. It is understood that the Company will establish San Juan as its first Focus Station. Since both the challenge to the Company and the disruption to employees resulting from establishing San Juan as its first Focus Station is heightened, it is agreed that the only IAM- represented classification which the Company will staff at San Juan will be passenger service and all other terms of this letter shall not apply to San Juan while it remains a Focus Station. Very truly yours, /s/ Linda Ferchland Linda Ferchland Director Labor Relations Ground Agreed and Accepted: /s/ William O'Driscoll William O'Driscoll 234 August 1, 1999 Mr. William O'Driscoll President-Directing General Chairperson International Association of Machinists And Aerospace Workers 400 NE 32nd Street Kansas City, MO 64116 Subject: Regional Jets/Code Shares This is to confirm the understanding between the parties in regard to the Company's ability to implement and maintain Regional Jet and/or Code Share Agreements. Our Agreement reflects the following: Commuter Carriers, Code Sharing and Block Seating (1) The Company, its subsidiaries and its corporate affiliates may acquire an ownership interest in commuter carriers and may operate such commuter carriers under the terms of separate collective bargaining agreements with the IAM provided that any such commuter carriers comply with the restrictions contained in Section 1 through 10 below. (2) Except as agreed in the September 5, 1995 Letter of Agreement between TWA and ALPA pertaining to the use of ATR aircraft by Trans States Inc., the Company and its Affiliates will not operate, maintain any ownership interest in, or enter into any code sharing arrangement with, any, United States air carrier as defined in 49 U.S.C. 40102 (a)(2) that operates any aircraft under the Company's designator code, name, logo or marks with: (a) a maximum seating capacity in excess of sixty (60) seats; (b) a maximum certified gross takeoff weight in excess of 60,000 pounds; (c) a maximum certified cruising speed in excess of 400 miles per hour; or (d) any Jet Aircraft as defined herein. Any carrier that satisfies all of the restrictions contained in this Section 2 and that utilizes the Company's or an Affiliate's designator code is hereinafter referred to as a "TWA Commuter Carrier." For purposes of this subsection, "Jet Aircraft" is defined as any aircraft that uses a turbine-driven engine without an external propeller. (3) Notwithstanding the limitations in Section 2 above, TWA Commuter Carriers may operate up to an aggregate of fifteen (15) Jet Aircraft with a maximum seating capacity of fifty (50) seats. (4) In addition to the fifteen (15) Jet Aircraft referred to in Section 3 above, TWA Commuter Carriers may operate: (i) one additional Jet Aircraft for each additional three aircraft operated by TWA above its current fleet size of 184 aircraft until the TWA fleet size reaches 200 aircraft; and (ii) one additional Jet Aircraft for each additional two aircraft operated by TWA exceeding 200 TWA fleet aircraft. The maximum average seating capacity of the Jet Aircraft operated by TWA Commuter Carriers shall be: fifty (50) seats while the Company's fleet size is less than 190; fifty four (54) seats while the Company's fleet size is between 191 and 195; fifty six (56) seats while the Company's fleet size is between 196 and 200; and sixty (60) seats while the Company's 235 fleet size exceeds 200. The relationship of the Company's fleet size to the number of Jet Aircraft that may be operated by TWA Commuter Carriers and the average seating capacity of the Jet Aircraft that may be operated by TWA Commuter Carriers is shown in Section 9 below. (5) (a) In no event will TWA Commuter Carriers operate more than a maximum aggregate of thirty (30) Jet Aircraft, and in no event will the certificated seating capacity of any Jet Aircraft operated by any TWA Commuter Carrier exceed seventy (70) seats. (b) If TWA owns (or leases) and operates regional jets, TWA employees covered by IAM Agreements shall perform all covered work. If regional jets are operated by a wholly-owned subsidiary of TWA, TWA employees otherwise covered by IAM agreements shall perform all covered work, provided that IAM and TWA enter into a new, separate agreement establishing fully competitive market rates and market working conditions for the performance of such work. All work on regional jets operated by a commuter carrier shall be performed by employees of the commuter carrier of its service provider. (6) As a limited exception to the restrictions contained in Sections 1, 2, 3, 4 and 5 above, the Company may enter into or maintain code sharing agreements with: (a) Carriers other than United States air carriers (as defined in 49 U.S.C. 40102 (a)(2)) so long as the Company can demonstrate by clear and convincing evidence, that such code sharing arrangements: (i) do not result, directly or indirectly, in the furlough of any Company flight attendant or a reduction in pay status for any Company flight attendant and (ii) do not directly or indirectly result in the involuntary furlough from his/her location of any active Mechanic & Related and Passenger Service Employees employed as of the signing and as listed on the Attached Exhibit A ("Active Employees"). (b) United States air carriers (as defined in 49 U.S.C. 40102 (a)(2)) other than TWA Commuter Carriers that permit such carriers to apply the Company's designator code to their operations within the United States and its territories as long as (i) the number of quarterly block hours operated by such carriers utilizing the Company's designator code does not exceed four percent (4.0%) of the total number of block hours operated by the Company for the same quarter within the Untied States and its territories and (ii) the Company can demonstrate, by clear and convincing evidence, that such code sharing arrangements do not result, directly or indirectly, in the involuntary furlough of any IAM represented employee or a reduction in pay status for any IAM represented employee; provided however, the IAM may, in its sole discretion, increase the total number of block hours available for such operations to up to 10% of the total number of block hours operated by the Company for the same quarter within the United States; and 236 (c) The number of quarterly block hours specified in Section 6 (b) (i) above may be increased as follows: if the Company's fleet size increases to 193 aircraft, then the number shall be four and one-half percent (4.5%); if the Company's Fleet is at least 199 aircraft, then the number shall be five percent (5.0%). The relationship between the Company's fleet size and the number of quarterly block hours that may be operated by such United States air carriers is shown in Section 9 below. (7) The Company and its Affiliate may only enter into block seating arrangements (i.e., the advance purchase or reservation of blocks of seats on other carriers for resale by the Company) aboard any aircraft operated by any person or entity other than the Company if and to the extent that the Company can demonstrate, by clear and convincing evidence, that any such block seating arrangement does not result, in the involuntary furlough of any IAM represented IAM employee or a reduction in pay status for any IAM represented employee. (8) Mechanic & Related and Passenger Service Employees listed on the Attached Exhibit A ("Active Employees") employed at a TWA location as of the signing shall not be involuntarily furloughed from that location as a direct result of a commuter carrier operating Regional Jets. The Company will not furlough any Flight Attendant on the TWA Flight Attendant System Seniority List as a result of the acquisition, expansion over TWA's domestic route system or operation of Regional Jets by any TWA Commuter Carrier. (9) Summary Chart - Sections (1), (4), (5) and (6) Company Aircraft Quarterly Code Share Domestic
Company Quarterly Code Share No. Of Jet Air- Max Avg. Aircraft Domestic Block Hours craft That May Be Seating That May Be Operated By Operated by TWA Capacity Of U.S. Air Carriers Other than Commuter Carriers Jet Aircraft TWA Commuter Operated Carriers by TWA Commuter Carriers 187-189 4.0% 16 50 190-192 4.0% 17 54 193-195 4.5% 18 54 196-198 4.5% 19 56 199-200 5.0% 20 56 201 + 5.0% 21 + 1 for 2 thereafter 60 up to 30 Maximum
(10) In addition to and apart from the Jet Aircraft carrying only that TWA Commuter Carrier's and TWA's or Affliliate's designator code that TWA Commuter Carriers are otherwise authorized to operate by this agreement, TWA Commuter Carriers may additionally operate a maximum of three (3) Jet Aircraft with a 237 capacity of no more than seventy (70) seats for which that TWA Commuter Carrier has a code-sharing agreement involving both (a) TWA or an Affiliate and (b) a third-party code- sharing carrier ("Shared Code-Sharing Jet Aircraft"). These 3 Shared Code-Sharing Jet Aircraft are not subject to and will not count towards maximum average seating limitations of Section 4 and the 30 aircraft aggregate limitation of Section 5. All other restrictions and limitation imposed by this Section remain in effect for these Shared Code-Sharing Jet Aircraft. REGIONAL JET BIDS TWA will make its best efforts to submit competitive bids for all work performed on regional jets operated by Commuter Carriers ("Regional Jet Bids"). The Company shall schedule two meetings each year with the IAM to discuss the results of the Regional Jet Bids it has submitted and review those situations where it chose not to submit such bids. If the aforementioned confirms our understanding of the subject please indicate so by signing below. Very truly yours /s/ Linda Ferchland Linda Ferchland Director Labor Relations Agreed and Accepted: /s/ William O'Driscoll William O'Driscoll 238 August 1, 1999 Mr. William O'Driscoll President- Directing General Chairman District 142 IAMAW 400 NE 32nd Street Kansas City, MO 64116 SUBJECT: Chicago Air Freight The Company and Union agree to meet and resolve the off field vendor operation in Chicago as expeditiously as possible. Very truly yours, /s/ Linda Ferchland Linda Ferchland Director Labor Relations Agreed and Accepted: /s/ William O'Driscoll William O'Driscoll 239 August 1, 1999 Mr. William O'Driscoll President - Directing General Chairman International Association of Machinists and Aerospace Workers District Lodge 142 400 NE 32nd Street Kansas City, MO 64116 Re: Back Pay Bonds Dear Mr. O'Driscoll: The Company shall solicit from the Back Pay Bond holders their consent to an amendment to the Back Pay Bond indenture such that the collateral for the bonds under the indenture shall include the collateral now held in trust outside of the indenture (indirect interest in Worldspan LLP) for the benefit of the bond holders, and make other conforming changes, including, but not limited to releasing any collateral to which the Trustee currently holds and interest (or possible claim of interest). Such amendment shall (to the extent permissible) further state that the Company may prepay the entire indebtedness or shall have the right alternatively to prepay one half of the outstanding principal amount of the bonds and substitute collateral with an appraised value equal to or in excess of the collateral coverage rate of 1.66% of the debt remaining outstanding upon the disposition by the Company of its indirect interest in Worldspan (not including consummation of any merger predating such disposition). The indenture shall be further amended to reinstate the rights of the IAM relative to instructing the Trustee on collateral substitution matters. It is agreed that the consent solicitation will also request authorization for the release and termination of that certain Aircraft Chattel Mortgage [Engines] by and between the Company and Joseph Adinolfi, as Mortgagee dated as of May 21, 1997 as subsequently amended. The IAM agrees, following the receipt of such authorization, to execute and deliver such documents as shall be required to effectuate such release and termination. The IAM agrees that it will execute such documents as required to effectuate a transfer of collateral and to release the Company from further obligation to secure the Monthly Contributions to the Retirement Savings Plan for Flight Attendants of Trans World Airlines, Inc. and the Annuity Plan for Machinists of Trans World Airlines, Inc. In addition, 1993 Interest Guaranty Note having been satisfied in full, the IAM hereby releases the Company from all obligations under the Agreements relative to the C Plan. Obligations and covenants to authorize, direct and take or cause to be taken all such actions as shall be necessary to evidence and effectuate the termination of the Agreements 240 with respect to the C Plan Obligations, including but not limited to the execution and delivery of a Release Notice to the Collateral Trustee. Very truly yours, /s/ Linda Ferchland Linda Ferchland Director Labor Relations Ground Agreed & Accepted: /s/ William O'Driscoll William O'Driscoll 241 COVENANTS 1. A. Within thirty (30) business days of the effective date of this agreement ("effective date"), TWA shall meet with the City of Kansas City for the purpose of beginning negotiations to secure leases for the Kansas City Maintenance Base. Within five (5) business days of the effective date, TWA shall advise the City of Kansas City in writing of its desire to begin such negotiations. B. TWA shall enter into leases for the Kansas City Maintenance Base within six (6) months of the effective date, provided that IAM shall agree to extend this deadline for as long as negotiations continue. C. Paragraph B of this Section shall be subject to the City of Kansas City offering terms, rates, and conditions which are economically reasonable when compared to leases offered to other airlines by other lessors for similar facilities, adjusted for local market conditions, and which are for a commercially reasonable period taking into account economically reasonable amortization periods for capital expenditures/improvements made within the new lease agreement. D. TWA shall provide the IAM with reasonable but not less than five (5) days notice of any meeting with the City of Kansas City. The IAM shall have the right to participate in all such meetings. E. TWA will continue to perform major aircraft overhaul and maintenance work at the Kansas City Maintenance Base, provided that it is a tenant in that facility. 2. A. Within forty five (45) business days of the effective date, TWA shall meet with the Port Authority of New York and New Jersey ("Port Authority") for the purpose of beginning negotiations to secure a lease for Hangar 12 at JFK International Airport ("JFK"). Within five (5) business days of the effective date, TWA shall advise the Port Authority in writing of its desire to begin such negotiations. B. TWA shall enter into a lease for Hangar 12 within six (6) months of the effective date, provided that IAM shall agree to extend that deadline for as long as negotiations continue. C. Paragraph B of this Section shall be subject to the lessor offering terms, rates and conditions which (i) are economically comparable to leases entered into by other carriers for maintenance hangars at JFK; (ii) include economically reasonable financing for capital expenditures/ improvements (either as required by the lessor or necessary for habitability and functionality purposes comparable to facilities of the same type, i.e. "Capital Expenditure/ Improvements"); and (iii) is for a commercially reasonable period taking into account economically reasonable amortization periods for Capital Expenditures/Improvements made within the new lease. The Company shall continue to have the right to adjust, amend or sublease portions of such leasehold consistent with the provisions of Article 2 relating to Technical Service Locations. 242 D. In the event TWA is unable to secure a lease for Hangar 12 from the Port Authority containing the terms, rates, and conditions set forth in Paragraph C of this Section, TWA shall seek to secure such a lease from a third party. TWA's efforts and obligations in that regard shall be governed by Paragraphs A-C of this Section. E. In the event TWA is unable to secure a lease for Hangar 12 from any lessor containing the terms, rates and conditions set forth in Paragraph C of this Section, TWA shall seek to secure such a lease for Hangar 19. TWA's obligations in that regard shall be governed by Paragraphs A-C of this Section. F. TWA shall provide the IAM with reasonable but no less than five (5) days notice of any meeting with the Port Authority or third party lessor. The IAM shall have the right to participate in all such meetings. G. TWA shall perform work at Hangar 12 consistent with the provisions of Article 2 relating to Technical Service Locations, provided that it is a tenant in that facility. 3. A. Within forty-five (45) business days of the effective date, TWA shall meet with the Port Authority for the purpose of beginning negotiations to secure a lease for Terminal 5 at JFK. Within five (5) business days of the effective date, TWA shall advise the Port Authority in writing of its desire to begin such negotiations. B. TWA shall enter into a lease for Terminal 5 covering the property covered by the current Terminal 5 lease within six (6) months of the effective date of this agreement, provided that the IAM shall agree to extend that deadline for as long as negotiations continue. C. Paragraph B of this Section shall be subject to the Port Authority offering terms, rates and conditions which are economically comparable to leases entered into by other carriers for passenger terminals at JFK and which are for commercially reasonable amortization periods for capital expenditures/improvements made within the new lease agreement. D. TWA shall provide the IAM with reasonable but no less than five (5) days notice of any meeting with the Port Authority. The IAM shall have the right to participate in all such meetings. E. Within one-hundred fifty (150) days of the effective date of this Agreement, TWA shall prepare a feasibility study, to be shared with the IAM, on the: 1. Physical expansion and expansion of flights out of Terminal 5: and 2. Use of slots allocated to TWA at JFK, LaGuardia Airport, O'Hare Airport and Washington National Airport. IAM shall have thirty (30) days to provide comments before the study is finalized. 243 4. If as a result of airport expansion in St. Louis the STL hangar is demolished, the Company shall, subject to the lessor offering terms, rates and conditions consistent with standards established in Paragraph 2C, enter into a lease for a comparable facility at the St. Louis Airport. 5. Adopt previously discussed corporate governance provision side letter. 6. Back Pay Collateral Letter of Agreement dated August 1, 1999. 7. A summary of the lease term and termination provisions for STL hangar, ORD reservations facility, STL reservations facility, LAX hangar and ORF reservations facility is attached (Exhibit B). The listing of these lease provisions in this agreement confers no legal or contractual right upon the Union, under Section 6 of the RLA or otherwise, and does not in any way affect the rights of the Company either under or with respect to those leases. Dated August 1, 1999 /s/William O'Driscoll /s/Linda L. Ferchland William O'Driscoll Linda Ferchland President - General Chairman Director Labor Relations 244 August 1, 1999 Mr. William O'Driscoll President - Directing General Chairperson International Association of Machinists And Aerospace Workers 400 NE 32nd Street Kansas City, MO 64116 Dear Mr. O'Driscoll: This letter will confirm our agreement that TWA will make certain contributions to the IAM National Pension Plan. Effective March 1, 2000, TWA will begin contributions on behalf of eligible IAM represented employees to the IAM National Pension Fund, National Pension Plan up to a maximum of forty (40) straight time hours per week paid as follows. The terms and conditions of such contributions, including employee eligibility, shall be as set forth in the National Pension Plan Contract. Mechanic and Higher Classifications $1.00 Below Mechanic Classifications $ .75 If this letter accurately reflects our agreement, please sign this letter where indicated below. Very truly yours, /s/ Linda Ferchland Linda Ferchland Director Labor Relations Agreed and Accepted: /s/ William O'Driscoll William O'Driscoll 245 ARTICLE 29 EFFECTIVE DATE AND DURATION Schedule A (Rate of Pay) shall become effective as indicated thereon. Except as specifically provided elsewhere in this Agreement, the provisions of same shall become effective upon the signing of this complete Agreement. The entire Agreement shall remain in full force and effect to and including January 31, 2001, and, thereafter shall be subject to change as provided in Section 6 of the Railway Labor Act, as amended. Signed this 1st day of August, 1999. FOR TRANS WORLD AIRLINES, INCORPORATED William Compton /s/ William Compton Chief Executive Officer Terry Hayes /s/Terry Hayes Managing Director Labor Relations Linda Ferchland /s/Linda Ferchland Director Labor Relations FOR THE INTERNATIONAL ASSOCIATION OF MACHINISTS AND AEROSPACE WORKERS William O'Driscoll /s/William O'Driscoll President - General Chairman Edward LaClair /s/Edward LaClair General Chairman 246 SCHEDULE A - EMPLOYEES HIRED BEFORE MARCH 1, 1992 CLASSIFICATIONS PRESENT 8/1/99 8/1/00 - --------------- ------- ------ ------ Crew Chief Systems Technicians Flat Rate 20.73 22.49 23.17 Crew Chief flight Simulators Flat Rate 20.22 21.94 22.60 Flight Simulator Technicians 1st Year 14.26 15.47 15.94 2nd Year 15.30 16.60 17.10 3rd Year 16.34 17.73 18.26 4th Year 17.38 18.86 19.42 5th Year 18.42 19.99 20.59 Thereafter 19.46 21.11 21.75 Crew Chief Inspector Flat Rate 19.83 21.52 22.16 Inspector Flat Rate 19.08 20.70 21.32 Crew Chief Mechanic Flat Rate 18.98 20.59 21.21 Mechanic 1st Year 12.73 13.81 14.23 2nd Year 13.77 14.94 15.39 3rd Year 14.81 16.07 16.55 4th Year 15.85 17.20 17.71 5th Year 16.89 18.33 18.88 Thereafter 17.93 19.45 20.04 Crew Chief Stores Clerk Flat Rate 15.97 17.33 17.85 Stores Clerk 1st Year 10.13 10.99 11.32 2nd Year 11.17 12.12 12.48 3rd Year 12.21 13.25 13.65 4th Year 13.25 14.38 14.81 5th Year 14.29 15.50 15.97 Thereafter 15.33 16.63 17.13 Crew Chief Fire Inspector Flat Rate 15.59 16.92 17.42 Fire Inspector 1st Year 9.70 10.52 10.84 2nd Year 10.74 11.65 12.00 3rd year 11.78 12.78 13.16 4th Year 12.82 13.91 14.33 5th Year 13.86 15.04 15.49 Thereafter 14.90 16.17 16.65 247 Crew Chief Ramp Serviceman Flat Rate 15.73 17.07 17.58 Ramp Serviceman Assistant Ramp Serviceman 1st Year 9.65 10.47 10.78 2nd Year 10.69 11.60 11.95 3rd Year 11.73 12.73 13.11 4th Year 12.77 13.86 14.27 5th Year 13.81 14.98 15.43 Thereafter 14.85 16.11 16.59 Crew Chief Guard Flat Rate 14.64 15.88 16.36 Guard Part Time Guard 1st Year 8.85 9.60 9.89 2nd Year 9.89 10.73 11.05 3rd Year 10.93 11.86 12.21 4th Year 11.97 12.99 13.38 5th Year 13.01 14.12 14.54 Thereafter 14.05 15.24 15.70 Mechanic Helper 1st Year 8.97 9.73 10.02 2nd Year 10.01 10.86 11.19 3rd Year 11.05 11.99 12.35 4th Year 12.09 13.12 13.51 5th Year 13.13 14.25 14.67 Thereafter 14.17 15.37 15.84 Crew Chief Fleet Service Helper Flat Rate 14.36 15.58 16.05 Fleet Service Helper 1st Year 8.61 9.34 9.62 2nd Year 9.64 10.46 10.77 3rd Year 10.68 11.59 11.94 4th Year 11.72 12.72 13.10 5th Year 12.76 13.84 14.26 Thereafter 13.80 14.97 15.42 Crew Chief Janitor Flat Rate 13.30 14.43 14.86 Janitor 1st Year 7.66 8.31 8.56 2nd Year 8.70 9.44 9.72 3rd Year 9.74 10.57 10.88 4th Year 10.78 11.70 12.05 5th Year 11.82 12.82 13.21 Thereafter 12.86 13.95 14.37 248 SCHEDULE A EMPLOYEES HIRED MARCH 1, 1992 AND THEREAFTER CLASSIFICATIONS PRESENT 8/1/9 8/1/00 - --------------- ------- ----- ------ Mechanic 1st Year 12.13 13.16 13.56 2nd Year 13.77 14.94 15.39 3rd Year 14.81 16.07 16.55 4th Year 15.85 17.20 17.71 5th Year 16.89 18.33 18.88 Thereafter 17.93 19.45 20.04 Ramp Serviceman Assistant Ramp Serviceman 1st Year 7.22 7.83 8.06 2nd Year 8.21 8.91 9.18 3rd Year 9.20 9.98 10.28 4th Year 10.33 11.20 11.54 5th Year 11.46 12.43 12.80 6th Year 12.59 13.66 14.07 7th Year 13.71 14.88 15.33 Thereafter 14.85 16.11 16.59 Guard 1st Year 6.45 7.00 7.21 2nd Year 7.44 8.07 8.31 3rd Year 8.43 9.15 9.42 4th Year 9.56 10.37 10.68 5th Year 10.68 11.59 11.94 6th Year 11.81 12.81 13.20 7th Year 12.94 14.04 14.46 Thereafter 14.05 15.24 15.70 Fleet Service Helper 1st Year 6.22 6.75 6.95 2nd Year 7.21 7.82 8.05 3rd Year 8.20 8.90 9.16 4th Year 9.32 10.11 10.42 5th Year 10.44 11.33 11.67 6th Year 11.56 12.54 12.92 7th Year 12.67 13.75 14.16 Thereafter 13.80 14.97 15.42 Janitor 1st Year 5.32 5.77 5.95 2nd Year 6.31 6.85 7.05 3rd Year 7.30 7.92 8.16 4th Year 8.41 9.12 9.40 5th Year 9.53 10.34 10.65 6th Year 10.64 11.54 11.89 7th Year 11.75 12.75 13.13 Thereafter 12.86 13.95 14.37 249 Examples of the Application of Article 8(b) as Negotiated In Mediation Proceedings in N.M.B. Case No. 3355 Pay Rate -------- Example 1 --------- Twenty-four 8 hours work Straight Time hour 8 hours off period 8 hours work 4 hours @ time and one-half 4 hours @ double time 8 hours work Straight Time 16 hours off Example 2 --------- Twenty-four 8 hours work Straight Time hour 8 hours off period 8 hours work 4 hours @ time and one-half 4 hours @ double time 12 hours work 8 hours Straight Time 4 hours @ time and one-half 12 hours off Example 3 --------- Twenty-four 8 hours work Straight Time hour 6 hours off period 6 hours work 4 hours @ time and one-half 2 hours @ double time 4 hours off 4 hours off Straight Time 4 hours work Straight Time 16 hours off Example 4 --------- Twenty-four 8 hours work Straight Time hour 6 hours off period 6 hours work 4 hours @ time and one-half 2 hours @ double time 4 hours off 4 hours off Straight Time 8 hours work 4 hours @ straight time 4 hours @ time and one-half 12 hours off 250 MECHANICS AND RELATED EMPLOYEES AGREEMENT INDEX ARTICLE PAGE - ------- ---- 1 PURPOSE OF AGREEMENT (a) Safety, Efficiency, Reasonable Hours, Working 2 Conditions and Mutual Cooperation (b) No Discrimination 2 2 SCOPE OF AGREEMENT (a) Inspector, Mechanic, Helper, Fire Inspector 2-3 Stores, Guards, and Ramp Service Jurisdiction. Temporary Guarding (b) Reasonable Rules, Regulations 3 (c) Staffing Requirements Out of Classification Work 3-4 Restrictions and Mechanic Specialty Staffing 3 STATUS OF AGREEMENT (a) Merger, Consolidation, Route Swap Protection 5 4 CLASSIFICATIONS OF WORK (a) (1) Crew Chief Systems Technician 6 (2) Crew Chief Flight Simulator Technician 6-7 (3) Flight Simulator Technician 7-8 (4) Crew Chief Inspector 8 (5) Inspector 8-9 (6) Crew Chief Mechanic 9 (7) Mechanic 9-10 (8) Crew Chief Stores Clerk 10-11 (9) Stores Clerk 11-12 (10) Crew Chief Fire Inspector 12-13 (11) Fire Inspector 13 (12) Crew Chief Ramp Serviceman 13-14 (13) Ramp Serviceman 14-15 (14) Mechanic Helper 15 (15) Crew Chief Guard 16 (16) Guard 16 (17) Crew Chief Fleet Service Helper 16-17 (18) Fleet Service Helper 17 (19) Crew Chief Janitor 18 (20) Janitor 18 251 ARTICLE PAGE - ------- ---- 4 CLASSIFICATIONS OF WORK (continued) (b) (1) Crew Chief Employee Ratio 18 (3) Composite Crew Concept 19 (5) Crew Chief Guard Ratio 19 (c) Making and Revising of Individual Assignments 19 (d) (Check C) Base Overhaul (Check D) Inspector Duties 19 (e) Sign Off of Mechanical Work by Mechanic 19-20 5 EXAMINATIONS, LICENSE REQUIREMENTS AND TRAINING (a) Mechanics Exam Committee, Review Procedures 20-21 (1) Part I Written and Practical, New 21 Employee Requirements (2) Part II Written and Practical 21 (3) Examinations Forms 21 (4) Submission of Applications 21 (5) Exam Results 21 (8) Additional Mechanic Examination 22 (9) Scheduling of Exams 22 (10) Examination Completion Date 22 (11) Failure to Appear for Examination 22 (12) Employees Who Fail Exams 22 (13) No Exam Where License Required 22 (16) Bidding to Different Specialties 23 (17) Bidding to Crew Chief or Inspector 23 (19) (20) Qualified in Connection with Bids 23 (b) Employees Below Mechanic Taking Exams 23 (c) Flight Simulator Technician Training Period 23-24 (f) Stores and Fueling Exams 24 (g) (1) License Requirements Crew Chief Inspectors and Inspectors 24 (2) Crew Chief Mechanic License Requirements 25 (3) Mechanic License Requirements 25 (8) Company to Pay For State and Federal 26 Required Licenses (h) Training Requirements 26-27 6 SENIORITY (COMPANY AND CLASSIFICATION) (a) (1) (2) Definition of Seniority 28 (4) (a) (b) (c) Determining Senior Employee 28 (5) Separating or Combining of Seniority Groups 28-29 (6) Transfer and Assignment of New Work at 29 Overhaul Base 252 ARTICLE PAGE - ------- ---- 6 SENIORITY (COMPANY AND CLASSIFICATION) (continued) (b) (1) Probationary Periods 29 (c) (2) Seniority, Protest Period, Changing Seniority List 30 (3) System Seniority Lists 30 (4) Classifications 30-31 (5) Lower Seniority Accrual 31 (d) Loss of Seniority 31-32 (e) Reduction and Increase of Working Force 32 (1) (2) (3) Point Reduction or Displacement 32-33 (4) System Displacement and Recall Rights 33-34 (5) (6) Point Exercise of Seniority 34-35 (7) Crew Chief Mechanic and Inspector Seniority Exercise Restrictions 35 (f) (1) Displacement Procedure 35 (2) Point Recall Provisions 35 (3) Seniority Displacement Restrictions 35 (6) Qualification Review Procedures 36-37 (8) Recall Procedure 37 (10) Ten (10) Days Notice or Pay to Employees 38 Being Reduced (11) (a) Point Recall: Classification, Specialty and Lateral 38 (15) Voluntary Reduction Procedure 39 (16) Vacancy Bidding by Laid Off Employee 39 (19) Positions Not Covered by Agreement 40 (21) (b) (c) Shift and Day Off Assignment 40-41 (21) (d) (e) Penalties for Shift, Day Off Refusal 41 (21) (f) Grievance Committee Shift and Day Off 41 Assignment (g) Geographical Relocation Procedure and Expenses 41-42 7 HOURS OF SERVICE (a) Standard Work Day 42 (b) Standard Work Week 42-43 (c) (d) (e) Shift Requirements: Major Station and Overhaul Base 43 (f) Additional Shifts - Major Stations 43 (g) Line Stations, Shift Requirements 43 (h) Shift Deviation 43-44 (j) Rest and Clean Up Period 44 (k) Work Shifts: Exceptions 44 (l) Lunch Periods 44-45 253 ARTICLE PAGE - ------- ---- 8 OVERTIME AND HOLIDAYS (a) Time and One-Half Rate 45 (b) Double Time Rate; 8 Hour Break Option 45-46 (c) Shift Rotation, Break Requirement 46 (d) (e) Holidays 46-48 (f) Overtime Distribution 48 (g) Emergency Overtime 48 (h) Recall Pay Minimum 48 (i) Overtime Meal Period 48 (j) Overtime Authorization 48 (k) Overtime Pay Maximums 49 (1) Overtime Notice Requirement 49 9 FIELD SERVICE (a) Emergency Field Service Pay 49 (b) (c) (d) Traveling or Waiting Pay 49 (e) Preparation Time 49-50 (f) (1) (2) (3) Expenses and Lodging 50 (g) Special Assignment Pay 50 10 VACANCIES AND BIDDING (a) (1) Vacancy Definition 51 (2) Vacancy Cancellations 51 (3) New Classification Bids and Moving Expenses 51 (4) Vacancy Notice to Union 51 (5) Successful Bidder Selection 51 (7) Preference Bid 51 (8) Company Seniority Bid 51 (9) Bulletin Bids Filling Vacancy 51 (10) Union Concurrence on Testing Procedures 52 (11) Company Option to Fill Vacancy 52 (b) (1) (2) Submission, Cancellation, Renewal 52 and Expiration of All Bid (3) Bidding For Laid Off Employees 52-53 (5) Bulletined Bids 53 (6) Bid Cancellation Rule 53 (7) (8) Bidding to Lower Classifications 53 (9) Bid Refusal 54 (10) System Bidding Restriction 54 (11) Point Bidding Restriction 54 (15) Successful Bid Notices 54 (16) Trial Periods 54-55 (17) Transportation: Successful Bidders 55 (18) Seniority and Wage Rate: Successful 55 Bidders 254 ARTICLE PAGE - ------- ---- 10 VACANCIES AND BIDDING (continued) (19) Notice to Unsuccessful Bidder: Qualification Review Procedures 56 (c) Temporary Crew Chief Assignments 57 (d) Temporary Assignment to Another Seniority 58 Grouping (e) Company Promotion Policy 58 11 GRIEVANCE PROCEDURE (a) Stewards and Committees 59 (b) Full Time Committees 59-61 (c) Step 1; Step 2; Step 3; Disciplinary Time 61-64 Off and Discharge (d) General 64 12 SYSTEM BOARD OF ADJUSTMENT 65 (b) Referee Panels 65-66 (c) Board Jurisdiction 66 (d) Board Appeals 66-67 (h) Referee Selection 67 (r) Witness Expenses and Transportation 69 13 LEAVES OF ABSENCE (a) Medical Leave 69-70 (b) (1) Applications and Extensions 70 (2) Third Party Physician Resolution 72 (c) Union Leaves of Absence 72 (d) Return from Authorized Leaves 72 (f) Return From Military Leave 72 (g) Leave Expiration Notice 72 (h) Public Office 72-73 14 SAFETY AND HEALTH 73 (b) Safe and Sanitary Working Conditions 73 (c) Safety Committees 73 Safety Compliance Procedure 74-75 (h) Uniforms 75 15 FREE TRANSPORTATION 76 (b) Union Staff Passes 77 (c) Laid Off Employee Pass 77 (d) Retiree Pass Privilege 77 (e) Vacation Pass 77 255 ARTICLE PAGE - ------- ---- 16 VACATIONS 78 (b) Allotment Schedule 78 (c) Accrual 78 (g) Laid Off or Leave Status 79 (h) Resignation or Discharge 80 (l) Company Seniority Applies in Selection of Vacation 80 (m) Vacation Schedules 80-81 (o) Vacation Selection 81-82 (p) Day-at-a-Time Vacation Procedure 82-83 17 SICK LEAVE 84 (b) (1) Occupational Illness 84 (b) (2) Occupational Illness and Sick Leave 84 Re-accrual and Restoration (g) Physician's Certificate 85 (j) Death in Family and Dangerous Illness 86 (k) Attendance Records 86 18 LONGEVITY 86 19 SHIFT PREMIUMS (a) Afternoon and Night 87 (b) Shift Definitions 87 (d) Relief Schedules 87 (1) Day Off 87 (2) Vacation 87-88 (3) Rotating 88-89 20 BENEFITS (a) (1) In Network Deductible 89 (2) Covered Expenses 89 (3) Preventive Health Care Benefits 89 (4) Home Health Care Benefits 89-90 (5) Hospice Care Benefits 90 (6) Dental Plan Benefits 90-91 (7) Acute Care Prescription Drug Program 92 (8) Medical Plan Prescription Drug Benefits 92 (9) Chiropractic Care Benefits 92 (b) Employee Life Insurance 92 (c) Bomb Insurance 92 (d) Aviation Insurance 92 (e) Retiree Benefits 92-93 (f) Additional Life Program 93-94 (g) Tool Box Insurance 94 256 ARTICLE PAGE - ------- ---- 21 WAGE RULES (a) Line Differential 94-95 (c) through (h) Pay 95 (i) Jury Duty 95-96 (k) License Premium 96 (1) Cost of Living 96-97 22 APPRENTICESHIP PROGRAM 97 23 GENERAL AND MISCELLANEOUS (a) Employees Grown Old in Service 97 (b) Employees Service Files 97 (g) Emergencies 98 (h) Union Bulletin Boards 98 (j) Work Stoppage and Lockout 98-99 (m) Free Parking 99 24 SAVINGS CLAUSE 99 25 GEOGRAPHICAL SCOPE OF AGREEMENT 99 (b) Seniority Rights 99-100 (d) Return From Overseas 100 (e) Selection For Overseas 100 (f) Notification of Seniority Status 100 26 UNION SECURITY (a) Membership in Good Standing 101 (e) Delinquency 102-103 (f) Appeal Procedures 103-104 (i) Employee Notices 104 (m) Representation Notice 104-105 (n) thru (s) Dues 106-107 27 LAYOFF PAY 108 (b) Eligibility 108-109 (c) Pay and Restoration 109 28 LETTERS AND AGREEMENTS 111 29 EFFECTIVE DATE AND DURATION 248 257 EX-11 4 0004.txt STATEMENT OF COMPUTATION OF PER SHARE EARNINGS EXHIBIT 11 TRANS WORLD AIRLINES, INC. AND SUBSIDIARIES COMPUTATION OF EARNINGS PER SHARE (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNT)
Three Months Ended June 30, -------------------------- 2000 1999 -------- -------- EARNINGS PER SHARE BEFORE EXTRAORDINARY ITEMS : Net loss $ (4,225) $ (6,209) Extraordinary items - (866) -------- -------- Loss before extraordinary items (4,225) (5,343) Preferred stock dividend requirements (1,632) (5,863) -------- -------- Loss before extraordinary items applicable to common for basic earnings per share calculation (5,857) (11,206) Average number of shares of common stock 76,872 66,092 -------- -------- Loss per share $ (0.08) $ (0.17) ======== ======== EARNINGS PER SHARE FROM EXTRAORDINARY ITEMS : Extraordinary items $ - $ 866 Average number of shares of common stock 76,872 66,092 -------- -------- Loss per share $ - $ (0.01) ======== ======== EARNINGS PER SHARE FROM NET LOSS : Net loss $ (4,225) $ (6,209) Preferred stock dividend requirements (1,632) (5,863) -------- -------- Loss applicable to common shares for basic earnings per share calculation (5,857) (12,072) Average number of shares of common stock 76,872 66,092 -------- -------- Loss per share $ (0.08) $ (0.18) ======== ======== - ---------- Includes 6,557 and 7,623 shares of Employee Preferred Stock for the quarter ended June 30, 2000 and 1999, respectively, which, except for a liquidation preference of $.01 per share and the right to elect a certain number of directors to the Board of Directors, is the functional equivalent of Common Stock. As the effects of including the incremental shares associated with options and warrants and the assumed conversion of the 8% and the 9 1/4% Preferred Stock are antidilutive, diluted earnings per share are equal to basic earnings per share and are not presented in the accompanying condensed statements of consolidated operations for the second quarter of 2000 and 1999. Preferred stock dividend requirements for the three months ended June 30, 2000 reflect the reversals of first quarter 2000 dividend requirements of $1.9 million as a result of the conversion of preferred stock into common stock during the second quarter of 2000.
EXHIBIT 11 TRANS WORLD AIRLINES, INC. AND SUBSIDIARIES COMPUTATION OF EARNINGS PER SHARE (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNT)
Six Months Ended June 30, --------------------------- 2000 1999 --------- --------- EARNINGS PER SHARE BEFORE EXTRAORDINARY ITEMS AND CUMULATIVE EFFECT OF ACCOUNTING CHANGE : Net loss $ (80,348) $ (27,767) Extraordinary items - (866) Cumulative effect of accounting change (12,844) - --------- --------- Loss before extraordinary items and cumulative effect of accounting change (67,504) (26,901) Preferred stock dividend requirements (7,048) (11,726) --------- --------- Loss before extraordinary items and cumulative effect of accounting change applicable to common for basic earnings per share calculation (74,552) (38,627) Average number of shares of common stock 73,602 65,861 --------- --------- Loss per share $ (1.01) $ (0.59) ========= ========= EARNINGS PER SHARE FROM EXTRAORDINARY ITEMS : Extraordinary items $ - $ (866) Average number of shares of common stock 73,602 65,861 --------- --------- Loss per share $ - $ (0.01) ========= ========= EARNINGS PER SHARE FROM CUMULATIVE EFFECT OF ACCOUNTING CHANGE : Cumulative effect of accounting change $ (12,844) $ - Average number of shares of common stock 73,602 65,861 --------- --------- Loss per share $ (0.18) $ - ========= ========= EARNINGS PER SHARE FROM NET LOSS : Net loss $ (80,348) $ (27,767) Preferred stock dividend requirements (7,048) (11,726) --------- --------- Loss applicable to common shares for basic earnings per share calculation (87,396) (39,493) Average number of shares of common stock 73,602 65,861 --------- --------- Loss per share $ (1.19) $ (0.60) ========= ========= - ---------- Includes 6,622 and 7,631 shares of Employee Preferred Stock for the six months ended June 30, 2000 and 1999, respectively, which, except for a liquidation preference of $.01 per share and the right to elect a certain number of directors to the Board of Directors, is the functional equivalent of Common Stock. As the effects of including the incremental shares associated with options and warrants and the assumed conversion of the 8% and the 9 1/4% Preferred Stock are antidilutive, diluted earnings per share are equal to basic earnings per share and are not presented in the accompanying condensed statements of consolidated operations for the six months ended June 30, 2000 and 1999. Preferred stock dividend requirements for the six months ended June 30, 2000 reflect the reversals of first quarter 2000 dividend requirements of $1.9 million as a result of the conversion of preferred stock into common stock during the second quarter of 2000.
EX-27 5 0005.txt FINANCIAL DATA SCHEDULE
5 THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF TRANS WORLD AIRLINES, INC. AND SUBSIDIARIES AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH CONDENSED CONSOLIDATED FINANCIAL STATEMENTS. 1,000 6-MOS DEC-31-2000 JAN-01-2000 JUN-30-2000 194,312 0 270,787 13,541 102,418 651,380 806,541 315,219 2,192,978 1,290,886 533,359 0 99 697 (251,351) 2,192,978 0 1,763,919 0 1,852,539 0 1,672 46,711 (91,656) (24,152) (67,504) 0 0 (12,844) (80,348) (1.19) (1.19)
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