United pilots contract, LOA 23-01 — Implementation of the UPA 2023 Contract Amendments

A. Effective Date and Implementation Process

1. The effective date of UPA23 will be September 29, 2023. Until a provision is implemented, the Parties will continue operating under the related provisions of the predecessor UPA, or as may otherwise be agreed to by the Company and the Association.

2. The earliest implementation of the UPA is desired by both parties and they pledge to work diligently towards that goal. The parties acknowledge that by its nature, predicting implementation is imprecise, and recognize that technology and operational imperatives can affect any implementation schedule.

3. The implementation dates contained in Appendix A, any conditions related to the implementation of certain provisions contained in Paragraph C, and any interim solutions for delayed implementation of certain provisions contained in Paragraph D may only be modified with mutual concurrence of the parties or as otherwise determined by an arbitrator in accordance with Paragraph F. Should the implementation of a particular item be delayed past the date specified in Appendix A, the parties shall meet and discuss the reason for the delay and any appropriate workaround or commensurate remedial action for the delay.

4. In order to facilitate a smooth implementation of all provisions, the Parties agree to continue meeting to address any issues that arise during the implementation process.

Both the Company and the Association shall designate two (2) members from each side who participated in the negotiations to participate in such meetings. Any flight pay loss incurred by the two (2) Association members shall be reimbursed by the Company and shall not be counted against the flight pay loss credit provided to the Association in accordance with Paragraph C-1 of LOA 12-14, Association Business, until full implementation of the agreement or December 31, 2024, whichever is earlier.

5. In the event there is an impasse over the implementation schedule or any other aspect of implementation, the matter shall be referred to the MEC Chair and the senior-most flight-qualified Vice-President in charge of Flight Operations for resolution. In the event the matter cannot be resolved within thirty (30) days from the initial impasse it can be referred by either party to the mediation arbitration process established in Paragraph E of this Letter of Agreement.

B. Clarifications and Provisions Governing Implementation Timetable

1. Unless stated otherwise in Appendix A, all provisions of UPA23 are effective with the start of the October Bid Period, which begins on September 29, 2023. Items delineated in Appendix A shall be effective on the date indicated as the “Implementation Date” included therein, except as modified by Paragraph C of this Letter of Agreement.

2. References to the first day of a Bid Period shall include preparation for the Bid Period. For example, the implementation of amended Trip construction rules effective with the first day of a Bid Period means the Trips built for that Bid Period will be constructed in accordance with the new rules even if it means that action must occur prior to the listed date.

3. For a Trip that crosses an implementation date, the rules governing the later Bid Period shall apply to the Trip. If both sets of rules would provide the Pilot with additional compensation, the Pilot shall be paid the greater of the two amounts.

4. The parties agree that a provision does not need to be automated, completely or in part, in order to be implemented. For example, if a manual process is available to ensure additional pay provided within a new provision can be calculated, then the delayed automation of the provision for payroll purposes shall not in and of itself prevent the implementation of the provision.

5. The Company will meet and agree with the Association when prioritizing resource allocation related to implementation and when developing and implementing all automation and manual processes.

C. Provisions Related to Conditional Implementation

Notwithstanding any specific implementation date provided in Appendix A, the implementation of the following items shall be subject to the following additional conditions:

1. Accelerated Captain Upgrade Training of Pilots who Qualify for Upgrade under Section 8- I-1-b shall not be permitted until the following provisions of UPA23 have been implemented:

a. Reassignment and Overtime Pay

b. Elimination of mandatory FSB

c. Implementation of all forms of reserve lines (VEC, Long-Call Only, SC line, Compressed, et. al.)

d. SC Matrix/SC Cap

e. Rolled Day Off protections

f. Reserve MPG/Days-Off

g. Holiday Pay

h. Unused short calls, late-build short calls

i. FDO Restrictions

j. PBS Timeline and G-line

k. Trip construction and rigs

l. Assignment ladder

m. Reserve to Lineholder

n. Ability to preference minimum time between vacation awards.

2. No “Application of Sick Leave in Excess of 95 Hours” under Section 13-A-3-c shall be permitted until April 2024.

3. The Company may not utilize the Contingent Reserve provisions contained in Section 20- K-12 until involuntary Field Standby has been eliminated.

4. The Company may not freeze Trips for consolidation in accordance with Section 20-G-6 until the Company starts offering Section 20-Q-18 Consolidation Lines.

5. The Company may not utilize the reassignment limits contained in LOA 12-01 Paragraph D-17 until Section 20-L-5 Overtime Pay is implemented for all Pilots.

D. Interim Solutions for Delayed Implementation

1. Starting in January 2024 and until all the reserve improvements noted in Appendix A as being implemented no later than the August 2024 Bid period are implemented, each Reserve Pilot during a given Bid Period will be provided Add Pay based on the table below:

2. Until the elimination of involuntary Field Standby (FSB), Pilots shall be entitled to three (3) hours of Add Pay for each voluntary and involuntary FSB assignment.

3. Until Section 20-L-5 Overtime Add Pay is implemented, the current Section 20-L-6-a late pay shall be applied to Reserves.

4. Until the implementation of unused Short Call increase to MPG under Section 3-C-1-b- (1)-(a), Pilots impacted by unused Short Calls shall be entitled to one (1) hour of Add Pay.

5. Until implementation of the Short Call caps under Section 20-K-6-k, Pilots shall be entitled to two (2) hours of Add Pay for every Short Call assigned (not aggressively picked up) over six (6) in a Bid Period. If the Short Call cap is not implemented by August 2024, Pilots shall be entitled to two (2) hours of Add Pay for all Short Calls (whether picked up or assigned) over six (6) in a Bid Period.

6. Until the automation of Rolled Day Off Pay under 20-I-6-a or 20-I-6-b, such Pilots shall be paid through a post-pay process for any assignment into a day off.

E. Mediation Arbitration Process

1. The parties will attempt to identify all unresolved issues so that only one mediation arbitration process with respect to implementation is required. If the matter is referred to arbitration the neutral shall have the authority to establish and amend timelines and to provide additional relief to the Association or any Pilot or group of Pilots affected by the unresolved issues, regardless of whether the individual Pilot(s) can demonstrate a specific harm related to the delay.

2. The parties will select a neutral mediator/arbitrator (the “neutral”) to mediate and/or arbitrate any unresolved issue(s) and will select the neutral’s first-available date (unless the parties agree otherwise). The parties will bear equally the neutral’s compensation and\expenses.

3. Mediated Negotiations

a. The parties will engage in negotiations mediated by the neutral as to all identified issues for a minimum of three (3) days and a maximum of five (5) days.

b. These mediated negotiations will commence at a mutually agreed upon date and location.

c. If the parties are unable to reach an agreement through mediated negotiations, each party will submit written proposals to the neutral.

4. Arbitration

a. The neutral will take oral and written evidence in support of and in opposition to these respective proposals.

b. The neutral may award the proposal of either party as to the resolution of an open implementation issue (if the issue has not been resolved before the award) or may award a compromise between the proposals of the parties. The neutral’s award should conform to the terms and intent of the Agreement as closely as possible.

c. The neutral will not award a proposal that modifies the rates, rules and working conditions specified in the Agreement.

d. If the neutral determines that the positions of both parties on an open issue modifies the terms of the Agreement, the neutral will so advise the parties, explaining the basis of their determination, and the parties will then submit revised proposals.

e. Arbitration hearings before the neutral will be conducted at a mutually agreed upon time and will be transcribed if the parties agree.

f. The neutral’s award as to an open implementation issue will be final and binding.

This Letter of Agreement shall become effective upon signing and shall continue in force until such time as the parties agree that all provisions of UPA23 have been implemented.

IN WITNESS HEREOF, the parties have executed this Letter of Agreement this 29th day of September, 2023.

FOR UNITED AIRLINES, INC. FOR THE AIR LINE PILOTS ASSOCIATION, INT’L

Z. Michael Jones, Vice President Captain Jason Ambrosi, President Labor Relations Air Line Pilots Association, Intl

Captain Marc Champion Captain Garth Thompson, Chair Vice President Flight Operations United Master Executive Council

Mike Hansen, Managing Director Captain Phil Otis, Chair LR & Labor Economics UAL MEC Negotiating Committee

Captain Mary Ann Schaffer, Captain Andy Riggs, Vice-Chair Managing Director Aviation Safety UAL MEC Negotiating Committee

Captain David Zullo, Director Captain Adrian Rivero, Member Pilot Contract Administration UAL MEC Negotiating Committee

Sarah Nau, Director Labor Relations

*$60.97 per LCP hour paid between Jan 22 – Nov 22, $65.37 per LCP hour paid between Dec 22 and Sep 23 **Pay will be based on the difference between what an Instructor was paid compared what they would have been paid if the pay cap was 12th year 320 CA Note 1: 2023 portion will receive retirement contributions and count as eligible earnings for 2023 profit sharing Note 2: Will be included in the 2023 portion of the Ratification Bonus (14%) Note 3: Amounts for 2022 will be paid no later than November 1st 2023, amounts for 2023 will be paid no later than December 1st 2023