United pilots contract, SETTLEMENT AGREEMENT — contractual violations resulting in a Pilot losing a voluntary flying opportunity

A. Notification and Confirmation of Errors Relating to Senior Man (“SRM”), Premium Pick- Ups (“PPU”), other Pick-ups or Trip trades

1. The Pilot shall not intentionally delay notifying the Company of an error, nor shall the Company intentionally delay confirmation of an error. Once an error is confirmed the Company shall promptly attempt to contact the Pilot to confirm the error occurred. For the purpose of this Agreement, the “time of confirmation” shall be the time contact is made with the Pilot to inform him of confirmation of the error.

2. Except for cases of Trip trade errors that include a drop and except for cases when the Pilot’s schedule contains one (1) or more Trips that overlap the Trip erroneously denied, if the time of confirmation occurs prior to the scheduled report time of the Trip, the Pilot shall be treated in accordance with Paragraph B, below.

3. Except for cases of Trip trade errors that include a drop and except for cases when the Pilot’s schedule contains one (1) or more Trips that overlap the Trip erroneously denied, if the time of confirmation occurs after the scheduled report time of the Trip, the Pilot shall be treated in accordance with Paragraph C, below.

4. Trip trade errors that include a drop shall be treated in accordance with Paragraph D, below.

5. If at the time of confirmation the Pilot’s schedule contains one (1) or more Trips that overlap the day(s) of the Trip erroneously denied, the Pilot shall be treated in accordance with Paragraph E, below.

B. Confirmation of a SRM, PPU or other Pick-Up Error Prior to the Scheduled Report Time of the Trip

1. At the time of confirmation, the Pilot may elect one of the following options:

a. AV Days:

1. The Pilot may elect to convert the day(s) covered by the Trip erroneously denied to availability (“AV”) days in accordance with either Section 20-F-1-a- (1) or 20-F-1-a-(3) based upon the time of confirmation.

2. After satisfying his 20-F-1 obligation, the Pilot shall have his PTC increased by the greater of the Trip erroneously denied or any Trip(s) assigned as a result of the 20-F-1 obligation.

3. Any SRM or PPU Add Pay attached to the Trip erroneously denied shall be “banked” as if the error did not occur. A 20-F-1 assignment, if any, will not change any previously “banked” Add Pay. For example, a Pilot was denied a three (3) day SRM Trip worth seventeen (17) hours with 100% Add Pay. On AV days, the Pilot receives a 20-F-1 assignment worth twenty (20) hours. The Pilot’s PTC shall be increased by twenty (20) hours and he shall receive seventeen (17) hours of Add Pay.

b. No Obligation

1. If the Pilot elects not to convert the days to AV he will receive no increase in PTC or Add Pay for the erroneously denied Trip.

2. The Pilot shall have no obligation to the Company over the affected Trip day(s).

C. Confirmation of a SRM, PPU or other Pick-Up Error After the Scheduled Report Time of the Trip

1. At the time of confirmation, the Pilot may elect one of the following options (note that if the Company declines to offer option a, the Pilot is limited to option b):

a. AV Days:

1. If offered by the Company, the Pilot may elect to sit AV in accordance with Section 20-F-1-a-(1) on consecutive, mutually-determined days and the Pilot will receive one (1) hour of additional Add Pay per AV day.

2. After satisfying his 20-F-1 obligation, the Pilot shall have his PTC increased by the greater of the Trip erroneously denied or any Trip(s) assigned as a result of the 20-F-1 obligation.

3. Any SRM or PPU Add Pay attached to the Trip erroneously denied shall be “banked” as if the error did not occur. A 20-F-1 assignment, if any, will not change any previously “banked” Add Pay.

b. If the Company chooses not to offer AV Days in accordance with C.1.a, or if offered and the Pilot chooses not to elect option C.1.a:

1. The Pilot shall be paid the scheduled value of the Trip, including Add Pay, entirely as Add Pay.

2. The Pilot shall have no further obligation to the Company.

D. Remedy for Trip trade errors that include a drop:

1. The Pilot’s PTC shall reflect the greater of the scheduled pay value of the two Trips (or the combined scheduled pay value of multiple Trips, in the event of a complex Trip trade).

2. The Pilot’s Add Pay shall reflect the greater of the Add Pay (as measured at the time the error occurred) of the two Trips (or the combined scheduled pay value of multiple Trips, in the event of a complex Trip trade).

3. The Pilot shall be credited a vacation day(s) for each extra day worked due to the error, if any.

a. Vacation days credited by the last day of the November Bid Period shall be added to the scheduled vacation in the upcoming vacation year.

b. For example, vacation days credited in October 2016 shall be added to the scheduled vacation used in the vacation year that runs from May 2017 to April 2018.

c. For example, vacation days credited in January 2017 shall be added to the scheduled vacation used in the vacation year that runs from May 2018 to April 2019.

E. Notwithstanding Paragraphs B and C above, if at the time of confirmation the Pilot’s schedule contains one (1) or more Trips that overlap the day(s) of the Trip erroneously denied, then the error shall be treated as a Trip trade error in accordance with Paragraph D, except that Paragraph D.3 shall not apply.

1. If the Pilot operated multiple Trips that overlap with the Trip day(s) of the Trip erroneously denied, the multiple overlapping Trips shall be considered a single Trip for the purpose of this Paragraph E.

2. For example, a Pilot was erroneously passed over for a SRM assignment for a Trip with a scheduled pay value of fifteen (15) hours with fifteen (15) hours of Add Pay, occurring on the 10th – 12th. At the time of confirmation, the Pilot’s schedule reflected the following additional voluntary modifications:

a. A PPU Trip on the 11th with a scheduled pay value of eight (8) hours and four (4) hours of Add Pay, and

b. A “straight time” Trip on the 12th – 13th worth ten (10) hours. In this case, the Pilot’s pay would reflect the following:

The Pilot would be paid the PTC of the overlapping Trips, because it is greater than that of the Trip erroneously denied. He would be paid the Add Pay of the Trip erroneously denied, because it is greater than the Add Pay associated with the overlapping Trip(s), as measured at the time the error occurred in both cases. The Pilot’s total compensation would be 33 hours [18 hours PTC plus 15 hours Add Pay].

3. For example, a Pilot was erroneously passed over for a SRM assignment for a Trip with a scheduled pay value of fifteen (15) hours with fifteen (15) hours of Add Pay, occurring on the 10th – 12th. At the time of confirmation, the Pilot’s schedule reflected the following additional voluntary modification: A PPU Trip on the 12th – 14th with a scheduled pay value of sixteen (16) hours and sixteen (16) hours of Add Pay.

In this case, the Pilot’s pay would reflect the following:

The Pilot would be paid the PTC of the overlapping Trip, because it is greater than that of the Trip erroneously denied. He would be paid the Add Pay of the overlapping Trip, because it is greater than the Add Pay associated with the Trip erroneously denied, as measured at the time the error occurred in both cases. The Pilot’s total compensation would not change from the 32 hours [16 hours PTC plus 16 hours Add Pay] that existed at the time the Company confirmed the error.

If this accurately reflects our understanding, please sign and return two (2) copies for our files.

Dated this 15th day of June 2016.

For Air Line Pilots Association For United Airlines, Inc.

First Officer Joe Pedata Justin Doane Chairman Director UAL-MEC Grievance Committee Labor Arbitration