2015 Between FEDERAL EXPRESS CORPORATION and THE AIR …fdx.alpa.org/portals/26/docs/2015_TA_Docs/FDX Tentative Agreemen… · Implementation LOA & Appendix (2015) ..... 600 Table

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FEDERAL EXPRESS CORPORATION

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THE AIR LINE PILOTS

in the service of

FEDERAL EXPRESS CORPORATION

as represented by

THE AIR LINE PILOTS ASSOCIATION, INT’L

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Table of Contents

Section 1: Recognition, Scope, & Successorship ............................................................. 3Letter from FedEx Corporation to ALPA (2006) .................................................................................9

Section 2: Definitions .............................................................................................................. 11Section 3: Compensation .......................................................................................................21Section 4: Minimum Guarantees ........................................................................................ 33

Letter—Effect of a Furlough on the Application of Section 4.A.2.c ................................64Section 5: Traveling Expenses .............................................................................................66Section 6: Relocation Expenses .......................................................................................... 76Section 7: Vacation ............................................................................................................... 100Section 8: Deadheading ....................................................................................................... 113Section 9: Miscellaneous Flying.........................................................................................137

Letter —Quality Assurance Program .........................................................................................................146Section 10: Pilots Transferred to Management or Other Duties ............................ 147Section 11: Training ................................................................................................................ 148Section 12: Hours of Service ...............................................................................................203Section 13: Leaves of Absence ..........................................................................................242Section 14: Sick Leave ..........................................................................................................253Section 15: Medical Standards ......................................................................................... 260Section 16: Workers’ Compensation Benefits ............................................................. 268Section 17: Prisoner of War or Hostage Benefits .........................................................269Section 18: Witnesses and Representatives .................................................................272Section 19: Investigation and Discipline ........................................................................282Section 20: Grievances: Administrative .........................................................................289Section 21: System Board of Adjustment ......................................................................293Section 22: Seniority ............................................................................................................. 301Section 23: Furlough and Recall ...................................................................................... 304Section 24: Filling of Vacancies ........................................................................................ 310

Letter—Pilots on Leave of Absence without ATP Certificates ........................................342Section 25: Scheduling........................................................................................................ 344

Appendix A ....................................................................................................................................................................427Section 26: General .............................................................................................................. 430Section 27: Insurance Benefits ..........................................................................................441

Appendices .................................................................................................................................................................. 488Letter—Process for Handling Potential Onset of Excise Tax ...............................................511Letter—Optional Life Working Group (OLWG) ..............................................................................514Letter—Status of Insurance Plans Listed in Section 27.A.1., Footnote 1 ....................515

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Letter—Medical Benefit Tiers ......................................................................................................................... 517Section 28: Retirement (Pension Benefits) ................................................................... 518

Letter—NRA Under the Plans ....................................................................................................................... 540Letter—End of Career Sick Leave/Advance Notice of

Planned Retirement Bonus .....................................................................................................................542Letter—Section 28 Plan Amendment Timetable ........................................................................ 544

Section 29: Union Security and Checkoff ..................................................................... 546Section 30: ALPA-PAC Checkoff .......................................................................................552Section 31: Effect on Prior Agreements, Effective Date, and Duration ................554Lump Sum Payment Distribution (2015) ........................................................................557FDA LOA—EMEA/HKG (2015) ........................................................................................... 560Implementation of a Secondary Line Replacement System LOA (2015) .............596Implementation LOA & Appendix (2015) ..................................................................... 600

Table of Contents (cont.)

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Recognition, Scope, & Successorship 1

SECTION 1 RECOGNITION, SCOPE AND SUCCESSORSHIP A. Recognition

1. In accordance with the National Mediation Board’s certification in case number R-6450 dated October 29, 1996, as transferred from the Fedex Pilots Association to the Air Line Pilots Association (“the Association”) in File No. C-6762/Case No. R-6450, 29 NMB 320 dated May 29, 2002, the Company recognizes the Association as the duly authorized representative for the specific craft or class of flight deck crew members (hereinafter referred to as “pilots”) of the Company covered by the Railway Labor Act (“the RLA”).

2. The Company further recognizes that included in the craft or class represented by the Association in conformity with the RLA are those crewmembers on Foreign Duty Assignment (“FDA”), Special International Bid Award (“SIBA”) and/or any other international assignment, domicile or location manned by pilots on the Federal Express Master Seniority List.

B. Scope, Operation of Company Aircraft The Company’s revenue flights (including Company revenue charter flights), conducted with aircraft owned, leased, or operated within the domestic or international operations described below, conducted with aircraft over 60,000 lbs. MTOGW, shall be flown only by pilots whose names appear on the Federal Express Master Seniority List in accordance with the terms of the Agreement. 1. “Domestic flights” are all those Company flights wherein all flight legs

within a single pairing originate and terminate at cities located solely within the contiguous 48 states.

2. “International flights” are all Company flights which originate from, terminate in or transit the U.S. or its territories via a location outside the contiguous 48 states. International flights also include all flights conducted by any pilots on the Federal Express Master Seniority List assigned to Foreign Duty Assignment (“FDA”), or Special International Bid Award (“SIBA”).

3. All Domestic and International revenue flights conducted with aircraft that are owned, leased, or operated by the Company, having a MTOGW of greater than 60,000 lbs., and operated pursuant to the Company’s Airline Operating Certificate or any additional Part 121 Airline Operating Certificate obtained by the Company, shall be operated by pilots on the Federal Express Master Seniority List in accordance with the terms of the Agreement. Flying conducted with aircraft at or under 60,000 lbs. MTOGW (commonly referred to as “feeder flying”) shall not be substituted for Federal Express trunk flying (over 60,000 lbs. MTOGW) so as to cause a

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Recognition, Scope, & Successorship1

furlough of any Federal Express pilot. However, if and to the extent that and for such period of time that the furlough is the result of an act beyond the control of the Company (e.g., FAA grounding of a fleet, etc.), feeder/wet lease flying may be used to replace lost trunk flying. The Company shall not deploy multiple feeder flying in the domestic system to effect an elimination/reduction of the overall flying of an affected aircraft type; however, the Company may use multiple feeders to assume some existing trunk flying when aircraft or lift shortages exist during high volume periods. If feeder flying is substituted for Federal Express trunk flying, any pilots who are involuntarily excessed as a result of such substitution (and not due to changes in fleet deployment or composition unrelated to feeder flying such as retirement/replacement of, e.g., B727 aircraft), shall not have their hourly rate of pay reduced. This hourly rate protection shall end if a junior pilot is activated into a higher paying crew position that the senior pilot could have bid upon and been awarded, but elected not to do so.

4. Notwithstanding any other provision of the Agreement, the Company may continue to interline, co-load, code-share, part charter and enter into block space agreements with other carriers to move freight and service in International (outside the contiguous 48 states) markets as required. Within the Domestic system (the contiguous 48 United States) the use of the above shall be done only: (1) when necessary to expedite or (2) when economically necessary, unless otherwise agreed to by the parties.

5. At any time during the year should severe damage or destruction to a hull(s) occur the Company may utilize wet lease on a one for one basis until the lost aircraft is actually replaced in the fleet or for a period of one year, whichever is earlier.

6. The Company may also wet lease a minimum of two aircraft above 60,000 lbs. MTOGW for up to four (4) bid periods per calendar year. At least three (3) of those bid periods shall be consecutive. The Company may elect to divide the fourth bid period of wet leasing into four 7-day parts to use over the course of the year. The Company shall provide a minimum of 30 days’ written notice to the Association of any such wet lease(s). The following conditions shall apply to such wet lease arrangements: a. Should a wet lease operation assume flying regularly and historically

performed by FedEx crewmembers, as evidenced by the FedEx bid packs, for more than two (2) bid periods in a calendar year, the Company shall pay the Association a sum of money for the period of the wet lease in excess of two (2) bid periods calculated as follows: The average pay for a Federal Express crew complement times the number of regular bid pack credit hours that would have been earned by Federal Express pilots but for the wet lease. This sum shall be calculated after the expiration of the wet lease and shall be distributed to pilots in the manner identified by the Association. Wet leases done

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in support of charter flying during this four month period shall not be subject to this penalty.

b. Except for the minimum two aircraft wet leasing referred to above, during the bid periods described in this paragraph, the Company shall not wet lease more than the net gain of trunk aircraft scheduled to be added and brought into service in any calendar year. Should, at the end of the calendar year, the Company actually bring into service fewer trunk aircraft than were scheduled and based on the schedule, the Company wet leased more aircraft than would have been permitted if the scheduled additions were the same as the actual deliveries, then the Company shall pay to the Association the same monies it would have paid the Association as calculated under 6.a. above.

c. Should the Company violate the four bid period restriction, the Company shall pay to the Association the following for each wet lease conducted the greater of the number of block hours scheduled or flown, times 2.0, times the highest hourly rate for a three (3) man crew with fifteen (15) years of pay longevity, in addition to the international override, if any.

7. The Company may enter into wet lease and other agreements with other carriers at any time without penalty or payment to any pilot or the Association in order to deliver freight to cities that cannot be served by Federal Express trunk aircraft because: a. The Company does not possess all the requisite regulatory authority

(or what authority it does possess is in dispute with any government or any agency thereto), all traffic authority and foreign government approvals/authority, as are necessary to fly the scheduled or required route. Should the Company not possess the requisite regulatory authority at the time of the wet lease, it shall make a good faith effort to acquire that authority.

b. Foreign government or foreign authorities’ action restricts the use of pilots on the Master Seniority List so as to render the use of FedEx pilots not economically feasible; or

c. An emergency exists that precludes the Company from utilizing Company aircraft. In the event the Company wet leases aircraft under this provision, the Vice President, Flight Operations, shall notify the Association and crew force through an FCIF as soon as practicable. Routine maintenance problems shall not constitute an emergency.

d. The utilization of pilots on the Master Seniority List is not, or does not continue to be, economically or operationally feasible given the low freight volume, treaty or regulatory restrictions on the right of the Company to move freight through or beyond certain countries or cities, or remoteness or isolation of the served city to the existing Federal Express international route structure.

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8. Should the configuration of a given shipment (certain satellites, aircraft, helicopters, etc.) preclude the Company from using one of its own aircraft, then the Company may enlist the services of another carrier to handle that shipment on a sub-contract basis.

9. The Company shall notify the Association quarterly concerning all wet-leasing done during the preceding three bid periods. The Company shall identify the wet lease operator, the trip(s) flown by same, and the reason and effect on Federal Express crewmembers. The Company shall also meet with the Association on a quarterly basis to discuss wet leasing, fleet acquisition and disposal plans and to share with the Association the additional Federal Express trunk route additions/deletions it anticipates over the next quarter. A standing committee consisting of an equal number of Association and Company representatives shall meet within fifteen (15) days following the end of the calendar quarter to review and discuss these matters.

C. Parent and Affiliates Should the parent of the Company (FedEx Corp.) or any subsidiary or Affiliate directly or indirectly controlled by the parent of the Company acquire with the intention of retaining and operating a U.S. certificated air carrier or air operation operating aircraft of over 60,000 lbs. MTOGW, then the acquired carrier’s routes and operation of aircraft above the MTOGW of 60,000 lbs. shall be assumed by the pilots on the FedEx Master Seniority List. If the acquired airline is to be sold in the normal course of business, these seniority-merger provisions do not apply. If FedEx Corp., its subsidiaries or Affiliates retain and operate the acquired airline, the assumption of the acquired flying by Federal Express Master Seniority List pilots shall take place as soon as reasonably practical after either the merger of the acquired carrier’s appropriate pilots (those flying aircraft over 60,000 lbs.) into the Federal Express Master Seniority List in the manner set forth in Section 1.D.3., or in the event the pilots from the acquired carrier are not intended to be retained, then upon the final regulatory confirmation and transfer of the operating certificates to Federal Express and/or FedEx Corp.

D. Successorship 1. If another U.S. certificated airline or U.S. certificated air cargo operation

acquires all or a substantial portion of the Company’s air operations and as a result pilots on the Federal Express Master Seniority List are to be integrated with pilots on seniority lists at that airline or air cargo operation, the integration of pilot seniority lists shall be governed by the Association’s Merger Policy if the Association represents the airline’s pilots as well as the Federal Express pilots and otherwise by Section 3 and Section 13 of the Allegheny-Mohawk Labor Protective Provisions [as specified in 59 CAB 22 (1972)].

2. This agreement shall be binding upon any successor, including without limitation, any assignee, purchaser, transferee, administrator, receiver,

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executor, and/or trustee of the Company (hereinafter referred to as a "Successor" to the Company). Neither the Company nor its Affiliates shall consummate a Successor transaction unless the Successor agrees in writing, in advance of executing an agreement to consummate such transaction and as an irrevocable condition of the Successorship transaction, to assume and be bound by the Agreement, to recognize the Association as the representative of the Federal Express pilots and to guarantee that the pilots on the Federal Express Pilots' Master Seniority List will be employed by the Successor in accordance with the provisions of this Agreement. The Successor shall continue to recognize the Association in accordance with Section 1.A. above unless and until the National Mediation Board transfers or extinguishes the Association’s certification following an operational merger. The Successor shall continue to be bound by the Agreement until the terms of the Agreement are modified in accordance with applicable law.

3. Should the Company acquire, merge, or operate another U.S. certificated airline or U.S. certificated air operation that employs pilots who operate aircraft with a MTOGW of greater than 60,000 lbs., then such pilots operating aircraft above 60,000 lbs. MTOGW scheduled to be retained, if any, shall be integrated into the Federal Express Master Seniority List.

4. While the integration of the pilot seniority lists is pending or in process the Company agrees not to divert active and existing flying done by Federal Express pilots to the acquired airline or air cargo operation. This restriction shall not preclude the Company from acting to eliminate redundancies, overlaps of routes/services or similar services/routes provided by both carriers. The Company shall, however, not cause Federal Express pilots to be furloughed, excessed or downgraded as a direct result of the elimination of these redundancies, or the discontinuance of the overlaps of route/services, or the similar service/routes, and the elimination or discontinuance of redundancies, overlaps or similar service/routes shall, to the extent operationally and economically practical, be accomplished without an elimination of or a reduction in flights operated by pilots on the Master Seniority List.

E. Expedited Grievance and Arbitration Procedures Any grievance alleging a violation of the provisions of Section 1 shall be filed in writing with the Vice-President, Labor Relations, within 10 days following the date on which the pilot acquired knowledge or reasonably should have acquired knowledge, of the fact(s) or event(s) giving rise to the grievance. The grievance shall be considered and a decision rendered in accordance with the provisions of Section 20 of this Agreement. The hearing before the Vice-President, Labor Relations shall be conducted within 5 business days following receipt of the grievance, and a decision shall be rendered within 5 business days of the conclusion of the hearing. If the decision of the Vice-President, Labor Relations is not satisfactory to the pilot or the Association, such decision may be appealed to the System Board in the manner set forth

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in Section 21. The System Board hearing shall be commenced within 30 days after the Vice President’s decision, or on the earliest available date offered by the neutral arbitrator selected by the parties. The parties shall attempt to use Robert Harris as the neutral arbitrator. If Mr. Harris is unavailable, the parties shall select the neutral arbitrator from the panel of arbitrators empowered to hear administrative grievances under Section 20. The parties shall make known to the selected arbitrator the expeditious nature of this arbitration and request a decision in the matter as soon as possible.

F. Disruption of Company Business The Company shall not lock out pilots and pilots shall not engage in, cause or support any strike or work stoppage at the Company. In the event of an existing or impending labor dispute involving other represented employees, which is or has the capability of disrupting Company flight operations, the MEC Chairman and the Vice President, Flight Operations or the System Chief Pilot shall consult about what measures, if any, were or would be appropriate for Federal Express to take in light of the situation. The Vice President, Flight Operations or the System Chief Pilot will share the result of those conversations in an FCIF to the crewforce and outline what action(s), if any, the Company will take (or has taken) concerning the possible labor dispute.

In the event of a work stoppage legally authorized under the Railway Labor Act, involving other U.S. employees of the Company, the Vice President, Flight Operations or the System Chief Pilot shall consult with the MEC Chairman concerning the nature of any possible disruptions and the expectations the Company has in light of those anticipated disruptions. Pilots shall not be required to perform work customarily done by the pilots of another U.S. certificated air cargo operation who are engaged in a lawful strike against their employer unless the Company has historically performed and provided such services on that airline’s behalf. In cases where the Company has contracted to conduct training for another carrier’s pilots, Federal Express pilots may refuse to train the other carrier’s pilots if those pilots are strike replacements. Strike replacement pilots are those pilots who are being trained to replace the carrier’s current striking pilots or those pilots (from the other carrier) in training for a new seat position when an imminent pilot strike is threatened. Nothing in this section shall preclude the Association from engaging in self-help activities after the procedures provided by the Railway Labor Act, as amended, for changing the terms of this comprehensive collective bargaining agreement have been exhausted.

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Letter from FedEx Corporation to ALPA (2006) 1

February 28, 2011 1-7

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Letter from FedEx Corporation to ALPA (2006)1

February 28, 20111-8

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Definitions 2

SECTION 2

DEFINITIONS

Note: This Section 2 is reprinted verbatim from the 2011 Agreement. New and modified definitions are found in the individual sections and will be included in Section 2 when a new CBA is published.

1. [RESERVED] 2. ACTIVATION DATE

The date a pilot is released from training upon certified completion of IOE or, if training is not required, then on a date specified for activation by the Company.

3. ACTIVE PAY STATUS The pay status of an active pilot.

4. ACTIVE PILOT A pilot other than a pilot on disability, furlough, leave of absence or disciplinary suspension.

5. ACTUAL BLOCK HOURS (ABH) Actual time computed in hours and minutes from block-out to block-in.

6. ACTUAL CREDIT HOURS (ACH) ACH is computed at the completion of an assignment.

a. ACH for a duty period is the highest of: i. MPDP; or ii. actual block hours; or iii. actual duty rig.

b. ACH for a trip is the higher of: i. trip rig as actually flown, plus actual revenue block hours in

excess of 8 in any duty period, plus duty rig for the portion of any duty period beyond the scheduled on duty limitations; or

ii. the sum of ACH for each duty period. 7. AFFILIATE

The term “Affiliate” refers to (a) any entity that Controls the Company or any entity that that Company Controls, and/or (b) any other corporate subsidiary, parent, or entity Controlled by or that Controls any entity referred to in (a) above. The term shall include, but not be limited to, FedEx Corporation, FedEx Ground Package System, Inc., FedEx Custom Critical, Inc., FedEx Trade Networks, Inc., FedEx Freight Corporation, FedEx Kinko’s Office and Print Services, Inc., and FedEx Corporate Services, Inc.

8. AGREEMENT The term “Agreement” means the collective bargaining agreement between the Company and Association effective February 28, 2011, and all letters of

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Definitions2

agreement and interpretations that remain as part of the Agreement by operation of Section 31.A. This definition does not apply to the use of the term, “Agreement,” in paragraph headings and section titles.

9. AIR CARRIER The term “Air Carrier” means any common carrier by air.

10. ASSIGNED A pilot is considered to have been assigned to an activity when he receives notice of his responsibility for that activity from the appropriate FedEx personnel or through the VIPS notification system.

11. BASE An aircraft specific operational work location (FDA, temporary vacancy or domicile).

12. BLOCK-IN The moment that an aircraft comes to a complete rest in the blocks.

13. BLOCK-OUT The moment that an aircraft first moves from the blocks for the purpose of flight or repositioning on the airport (including push back or tow).

14. CAPTAIN A pilot, designated by the Company, to command an aircraft, and who has authority over all crew members and passengers for the purpose of operating that aircraft.

15. CARRYOVER A trip or block of R-days scheduled to begin in one bid period and end in the next.

16. CASE IN CHIEF The evidence presented by a party in the primary presentation of its case. The term does not include evidence used on cross examination or in rebuttal.

17. COMPANY Federal Express Corporation, a Delaware corporation, and its successors and assigns.

18. COMPANY AIRCRAFT The term “Company Aircraft” refers to Company trunk aircraft that are not Feeder Aircraft. The term “Company Aircraft” also shall not include corporate jets used primarily for the transportation of the Company or Affiliate personnel and not freight. Company Aircraft shall include aircraft owned, leased, or otherwise operated by the Company.

19. CONSENSUS OF TRAINING REVIEW BOARD (TRB) The voluntary agreement of all members of the TRB. It does not require that all members believe that a particular recommendation is the most desirable solution, but that the result falls within each member’s range of acceptable

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Definitions 2

solutions for that matter. The members of the TRB shall strive to reach consensus on any matter within their discretion.

20. CONSULT To consider and take input from before implementation but not requiring agreement, approval, or consensus.

21. CO-TERMINAL Two or more airports in a specific grouping recognized as "co-terminals" in the Official Airline Guide (OAG).

22. CREDIT HOUR (CH) A unit, expressed in hours and minutes, used to calculate the value of an activity for purposes of pilot pay.

23. CREW POSITION A specific crew seat, in a specific aircraft type, at a specific domicile (e.g., Captain MD-11 MEM; First Officer A-300 MEM).

24. CREW SEAT Crew seat means Captain, First Officer or Second Officer.

25. CREW STATUS A specific crew seat, in a specific aircraft type (e.g., Captain A-300; First Officer MD-11).

26. DATE OF HIRE The first day of initial new hire training/basic indoctrination completed by a new hire pilot.

27. DAY A 24:00 hour period of time, stated in local base time, specific to each base. A day is also referred to as a local base day.

28. DEADHEAD (DH) Travel scheduled by the Company to position a pilot.

29. DEPENDENTS Dependents are individuals listed in the January 1998 Your Employee Benefits book as dependents eligible for health care coverage.

30. DIFFERENCES TRAINING The training required for a pilot who has qualified in a crew status, when such training is necessary before a pilot serves in the same crew status on a particular version of that airplane.

31. DOMICILE An airport or co-terminal airports, designated by the Company, to which pilots are permanently assigned. A domicile is aircraft and base specific. A pilot's base is his domicile, except for pilots assigned to an FDA or temporary vacancy.

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Definitions2

32. DUTY PERIOD

A period of time a pilot is scheduled to be on duty or is actually on duty during a trip or airport standby.

33. EMERGENCY The term “Emergency” shall include a situation beyond the Company’s Control as well as a situation or occurrence of a serious nature, developing suddenly and unexpectedly, and demanding immediate action, A situation is “Beyond the Company’s Control” can include: (1) an act of God, (2) a strike by any other Company employee group, (3) a national emergency, (4) revocation of the Company’s operating certificate(s), (5) unexpected grounding of the Company’s aircraft, or (6) a governmental or commercial action imposed on the Company which substantially reduces or inhibits the Company’s operation or ability to operate its air fleet, or portion thereof.

34. EXPEDITED FREIGHT The term “Expedited Freight” shall mean freight that exceeds the volume that can be shipped on the Company’s scheduled aircraft from a given airport location, or is available to be shipped after the Company’s aircraft has departed or freight that has arrived after a sort.

35. FEEDER AIRCRAFT The term “Feeder Aircraft” shall mean aircraft with a maximum certificated gross takeoff weight not in excess of 60,000 pounds.

36. FILE/ISSUE A document shall be deemed "filed” or “issued,” as applicable, on the day in which the document is postmarked, or if Federal Express is used, on the day in which the document is submitted to the Company for shipment.

37. FIRST OFFICER (F/O) A pilot who is second in command of a Company aircraft and, in the absence or incapacitation of the captain, has the authority over all crew members and passengers for the purposes of operating that aircraft.

38. FLEX ASSIGNED TRAINING BASE An operational work location during pay only months for flex instructor/PCA and/or SCA which may be different than his flying base by mutual consent of the pilot and the Company.

39. FLIGHT OR FLIGHT SEQUENCE A flight segment or series of flight segments, uninterrupted by a legal rest period.

40. FLIGHT SEGMENT A single flight leg between block-out and block-in.

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Definitions 2

41. FOREIGN DUTY ASSIGNMENT An assignment of a pilot to a base outside the United States, or its territories, designated by the Company, for greater than 3 bid periods. A pilot holding an FDA shall be permanently domiciled in MEM.

42. FUNCTION A subroutine in pairing generation software designed to accomplish a particular task. Some functions have variable settings that allow the user to adjust the influence they have on a particular pairing solution. Example: “Cie global soft credit max per position” is a function designed to control the amount of flying assigned to a particular base. It is colloquially referred to as the “base constraint” function.

43. FURLOUGH A method for reducing the number of active pilots.

44. LAYOVER A period of time during a trip, starting at release and ending at showtime, which contains a legal rest period.

45. LEGAL REST PERIOD A period of time established prior to release, uninterrupted by the Company, during which a pilot is free from all duty. A pilot's legal rest period shall begin when released from duty.

46. LEGAL RESTRICTIONS Limitations imposed as a result of regulated age restrictions, FAA medical restrictions or other aviation-related restrictions imposed by law or regulation.

47. LINE OPERATIONAL EVALUATION (LOE) An evaluation/qualification event conducted in a simulator using a line operational flight scenario.

48. LINE OPERATIONAL FLIGHT TRAINING (LOFT) A training or evaluation/qualification event conducted in a simulator using a line operational flight scenario.

49. LOCAL BASE TIME (LBT) The local time (standard or daylight savings) at a pilot's base.

50. LONGEVITY YEAR GROUP For pay purposes, a pilot's full years of longevity plus one (e.g., a pilot earns the fifth year hourly rate when he has completed 4 years of active service).

51. MANEUVERS VALIDATION A fixed maneuvers validation event conducted in a simulator administered by a PCA/SCA.

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Definitions2

52. MATERNITY PERIOD A pilot’s maternity period begins on the date of pregnancy and extends through 120 days following the date of the end of the pregnancy.

53. NEGATIVE BID PERIOD REPORT A report indicating that no revenue flying was performed by pilots other than line pilots during a particular bid period.

54. OFF SITE TRAINING (As applied to instructors) Any training conducted at a location other than a flex instructor/PCA’s/SCA’s base or Flex Assigned Training Base.

55. OFF SITE TRAINING (As applied to students) Any training conducted at a location other than a pilot’s base.

56. OPEN TIME A trip or base standby period which is or becomes unassigned for any reason.

57. OPERATION IN THE CRITICAL PERIOD Operation during any part of the critical period as an operating (i.e., required as part of the crew, not deadheading) crewmember.

58. OVERRIDE SCHEDULED CREDIT (OSC) OSC for a trip is the higher of:

a. Trip rig as scheduled, plus actual revenue block hours in excess of 8 in any duty period; or

b. The sum of the scheduled credit hour values of the duty periods. The scheduled credit hour value of each duty period is computed as the highest of:

i. minimum pay per duty period (MPDP); or ii. block hours; or iii. duty rig.

59. PARAMETER For purposes of this subsection, a parameter is a rule, used in the SIG process and identified as a parameter, regarding the construction of pairings or lines. Example: “Maximum block per duty period” is a domestic parameter. Its current value is 7:35.

60. PASSOVER PAY An hourly rate of pay which is higher than the hourly rate of pay a pilot otherwise would earn and to which such pilot may be entitled as a result of a junior pilot's activation out of seniority order.

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Definitions 2

61. PHASE CHECK The check ride/qualification event(s) in each phase of Initial, Transition, and Upgrade training.

62. PILOT A Captain, First Officer or Second Officer covered by this Agreement, employed by the Company, and whose name appears on the Master Seniority List.

63. PROFICIENCY CHECK (PC) ITU/LINE OPERATIONAL EVALUATION (LOE) /MANEUVERS EVALUATION (ME) A check ride/qualification event which shall be conducted by a PCA/SCA or the FAA. Maneuvers are specified in applicable FARs, AQP documents and the FOTM. Maneuvers may be reaccomplished but no training may be conducted.

64. PROFICIENCY CHECK (PC) RECURRENT/CONTINUING LINE OPERATIONAL EVALUATION (CLOE)/RECURRENT MANEUVERS EVALUATION (RME) A check ride/qualification event to maintain or reestablish a pilot’s qualification in a crew status which shall be conducted by a PCA/SCA or the FAA. Maneuvers are specified in applicable FARs, AQP documents and the FOTM. Maneuvers may be reaccomplished and training may be conducted. If conducted in a flight simulator for a pilot in a qualified status, the evaluation shall be preceded by a warm-up simulator period.

65. PROFICIENCY TRAINING (PT) /CONTINUING MANEUVERS VALIDATION (CMV) A check ride/qualification event to maintain or reestablish a pilot’s qualification in a crew status which shall be conducted by a PCA/SCA or the FAA. Maneuvers are specified in applicable FARs, AQP documents and the FOTM. There are no limits to the number of maneuvers which may be reaccomplished and training that may be conducted within the event, but proficiency in all maneuvers must be achieved.

66. REGULATED AGE The age at which FARs do not permit a pilot to continue flying as a Captain or First Officer.

67. RELIEF FLIGHT OFFICER (RFO) A pilot who is assigned to serve as a third pilot in a 2-pilot cockpit crew. The RFO's primary responsibility is to assist the Captain and First Officer and while aloft, relieve the Captain and First Officer for the purpose of obtaining rest during the cruise portion of a flight(s).

68. REQUESTS/PREFERENCES Requests and preferences (e.g., for trips to be dropped to satisfy minimum day off protection) shall be processed in the sequence provided in the

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Definitions2

Agreement, and shall be granted or denied based on objective criteria which may be specific to the particular request.

69. SECOND OFFICER (S/O) A pilot who is third in command and who assists the Captain and First Officer in operating and monitoring aircraft systems.

70. SERIES OF TRIPS A combination of trips that are not separated by a legal rest period.

71. SETTING: The particular value at which a variable function is fixed for a given solution. Example For February 2006, the base constraint setting for ANC MD-11 CAP was 217 CH/day.

72. SHOWPAY Credit hours to which a pilot may be entitled as a result of his removal from an assignment. A pilot shall be deemed removed from his assignment when he is actually notified of his removal, or when the Company has made reasonable efforts to notify him, whichever occurs first.

73. SHOWTIME The time a pilot is scheduled to report for duty.

74. SPECIAL INTERNATIONAL BID AWARD (SIBA) A bidding status in which pilots bid for certain specified international flying.

75. STANDBY SEQUENCE A standby sequence is defined when a pilot’s trip is awarded/assigned. A standby sequence is the period of time starting at the beginning of a standby, and ending at the scheduled departure of the next scheduled flight activity (revenue flight or deadhead), in the trip, as awarded/assigned.

76. SUBMISSIONS 1. Except as provided in 2 (below), submissions (e.g., for bid line adjustments) shall be processed in the order specified in the Agreement and shall be granted or denied based on uniformly applied, objective criteria, material aspects of which shall be supplied to the Association in writing prior to implementation, including any subsequent changes. 2. No bid line adjustment submission shall be unreasonably denied; however, with the approval of the Vice President, Flight Operations or the System Chief Pilot, a bid line adjustment submission may be denied for reasons other than those under item 1. In such cases, the denial shall be reported to the Association within 3 days and shall specify the reasons for the denial.

77. SYSTEM BOARD OF ADJUSTMENT The legal proceeding used for resolving disputes growing out of grievances (including discipline under Section 19) or out of the interpretation or

19

Definitions 2

application of this agreement in accordance with Section 204 of the Railway Labor Act, 45 U.S.C. Section 184.

78. TEMPORARY VACANCY The temporary reassignment of a pilot to a base other than his permanent base, for three bid periods or less.

79. TIME AWAY FROM BASE (TAFB) The total hours and minutes a pilot is away from his base, beginning at showtime and ending upon release at his base at the conclusion of his trip

80. TIME ZONE DIFFERENTIAL (TZD) The number of hours difference between the time zone in which a duty period begins and the time zone in which it ends.

81. TRAINING FOR PROFICIENCY EVENT An event to establish, maintain or demonstrate a pilot’s proficiency in which end level proficiency is not required in order to progress (e.g., WU). The type and number of maneuvers shall be tailored to the specific objectives. Training may be conducted by any qualified instructor. There are no limits to the number of maneuvers which may be reaccomplished and the training that is conducted within the allotted time/event.

82. TRAINING TO PROFICIENCY EVENT A training event to maintain or demonstrate a pilot’s proficiency in which end level proficiency is required in order to progress (e.g., PT). The type and number of maneuvers shall be tailored to the specific objectives of the training. Training may be conducted by any qualified instructor. There are no limits to the number of maneuvers which may be reaccomplished and training that may be conducted within the allotted time/event.

83. TRAINING TO PROFICIENCY PHILOSOPHY It is recognized that all pilots do not learn at the same rate and there may be disparities in the experience level and background of pilots entering the same course. Training may be extended beyond planned hours in all phases of ITU and in requalification training, by the TRB, if there is consensus that reasonable progress is being made and there is a likelihood of success.

84. TRAINING REVIEW BOARD (TRB) A board established by the Association and the Company for the purpose of reviewing and making decisions and, where appropriate, referrals and recommendations concerning training. The TRB shall be comprised of two members each from the Association and the Company. The TRB members shall consist of the MEC Training Committee Chairman, the Human Performance Group Chairman, the Company’s Managing Director of Flight Training and the Managing Director of Flight Standards. If any of the Company’s members are not on the Federal Express Pilots’ Master Seniority List, the Company will appoint a TRB member who is a Federal Express

20

Definitions2

Pilots’ Master Seniority List holder. The Association or the Company may appoint a substitute TRB member(s) in any particular case. When dealing with situations involving individual pilots, the TRB shall be governed by a train to proficiency philosophy. Individual pilots will be dealt with on a case by case basis, without regard to past precedent. If reasonable progress is being made and there is reason to believe the pilot will ultimately be successful, training is usually extended. The overall goal of the TRB is the continuing improvement and quality assurance of the Company’s training program. The TRB shall make its decisions and recommendations based on consensus.

85. TRIP A series of flights normally commencing 1 hour prior to scheduled or rescheduled departure time from a pilot’s base and normally terminating 30 minutes after actual block-in at his base, except as provided in Section 12.A.6. (Operational Trip Return to Base) and 12.B.3. (Standby).

86. TRIP DAY A day on which any portion of a trip is scheduled to operate.

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Compensation 3

SECTION 3 COMPENSATION A. New Hire Compensation

A new hire pilot shall receive a salary of twofour-thousand dollars per month until his first actual activation date. 1. If a new hire pilot's date of hire is other than the first day of a month, his first

month's salary shall be prorated. 2. If a new hire pilot is activated on any day other than the first day of a month,

his salary (i.e., $2,0004,000 per month), shall be prorated based on the number of days in that month prior to activation.

B. Longevity and Crew Status A pilot's hourly rate of pay shall be based on his longevity year group and crew status, except as described in Section 3.A. (above). 1. Longevity

a. The longevity of a pilot employed by the Company as a pilot prior to the effective date of this Agreement shall be his longevity on the effective date. Longevity shall continue to accrue following the effective date except as otherwise provided for in this Agreement.

b. A pilot employed by the Company on or after the effective date of this Agreement shall accrue longevity beginning on his date of hire as a pilot. Longevity shall continue to accrue following the pilot's date of hire, except as otherwise provided for in this Agreement.

c. A pilot who changes longevity year groups after the beginning of any bid period shall be compensated at his new rate for that entire bid period.

2. Crew Status a. If a pilot's crew status changes, he shall receive the pay rate for his new

crew status upon activation. b. Notwithstanding Section 3.B.2.a., a pilot whose crew seat is restricted

by the FAA regulated age shall be compensated at the pay rate for his new S/O crew status on the date he reaches the regulated age.

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Compensation3

C. Hourly Rates of Pay 1. Hourly Rates – Effective First Day of March 2011 Bid Period

a. A-380

Year Group CAP F/O 1 $223.23 $67.86 2 248.02 153.94 3 248.51 154.16 4 249.53 157.26 5 250.51 160.39 6 251.51 163.59 7 252.54 166.87 8 253.53 170.21 9 254.52 173.61

10 257.47 178.46 11 260.44 183.45 12 263.43 188.60 13 265.40 189.56 14 268.04 190.50 15 270.73 191.92

b. Wide Body Rates of Pay

MD-10/11, DC-10, B-777F, A-300/310

Year Group CAP F/O S/O 1 $208.63 $63.42 $61.17 2 231.79 143.88 92.52 3 232.25 144.08 109.21 4 233.19 146.96 123.61 5 234.11 149.91 126.70 6 235.06 152.89 129.87 7 236.00 155.95 133.11 8 236.94 159.06 136.44 9 237.88 162.25 139.85 10 240.63 166.79 144.04 11 243.39 171.45 148.37 12 246.19 176.25 152.82 13 248.03 177.15 153.21 14 250.52 178.04 153.58 15 253.02 179.37 153.96

23

Compensation 3

c. Narrow Body Rates of Pay

B-727, B-737, B-757


2. Hourly Rates – Effective First Day of March 2012 Bid Period In the event the Association elects to exercise early reopening of this Agreement pursuant to Section 31.D.2., Section 3.C.2. shall become null and void. a. A-380

Year Group CAP F/O 1 $229.93 $69.89 2 255.46 158.56 3 255.96 158.78 4 257.01 161.98 5 258.02 165.20 6 259.05 168.50 7 260.11 171.88 8 261.14 175.31 9 262.16 178.81

10 265.19 183.81 11 268.25 188.96 12 271.34 194.26 13 273.36 195.25 14 276.08 196.21 15 278.85 197.68

24

Compensation3

b. Wide Body Rates of Pay

MD-10/11, DC-10, B-777F, A-300/310


c. Narrow Body Rates of Pay

B-727, B-737, B-757


25

Compensation 3

1. Hourly Rates – Effective First Day of November 2015 Bid Period a. Wide Body Rates of Pay

MD-10/11, DC-10, B-777F, A-300/310, B767F Year Group CAP F/O

1 236.38 71.85 2 262.61 163.02 3 263.14 163.24 4 264.21 166.51 5 265.24 169.84 6 266.32 173.23 7 267.39 176.69 8 268.46 180.21 9 269.51 183.82 10 272.64 188.97 11 275.76 194.26 12 278.94 199.69 13 281.03 200.71 14 283.83 201.72 15 286.67 203.24

b. Narrow Body Rates of Pay B-737, B-757

Year Group CAP F/O 1 200.39 69.31 2 222.67 133.61 3 223.80 139.04 4 225.03 142.08 5 226.29 145.21 6 227.52 148.42 7 228.77 151.68 8 230.03 155.01 9 231.29 158.42 10 233.95 164.11 11 236.64 170.05 12 239.35 176.17 13 241.76 177.05 14 244.18 177.91 15 247.12 178.81

26

Compensation3

2. Hourly Rates – Effective First Day of November 2016 Bid Period

a. Wide Body Rates of Pay MD-10/11, DC-10, B-777F, A-300/310, B767F Year Group CAP F/O

1 243.47 74.01 2 270.49 167.91 3 271.04 168.14 4 272.14 171.50 5 273.20 174.94 6 274.31 178.42 7 275.41 181.99 8 276.51 185.62 9 277.60 189.34 10 280.81 194.64 11 284.03 200.09 12 287.31 205.68 13 289.46 206.73 14 292.35 207.77 15 295.27 209.33


Year Group CAP F/O 1 206.40 71.39 2 229.35 137.61 3 230.51 143.21 4 231.78 146.34 5 233.08 149.57 6 234.35 152.88 7 235.63 156.23 8 236.93 159.66 9 238.22 163.17 10 240.97 169.03 11 243.74 175.15 12 246.53 181.45 13 249.01 182.36 14 251.50 183.25 15 254.53 184.17

27

Compensation 3



1 250.77 76.23 2 278.61 172.95 3 279.17 173.18 4 280.30 176.65 5 281.40 180.18 6 282.54 183.78 7 283.67 187.45 8 284.80 191.19 9 285.92 195.02 10 289.24 200.48 11 292.55 206.09 12 295.93 211.86 13 298.14 212.93 14 301.12 214.00 15 304.13 215.61


Year Group CAP F/O 1 212.59 73.53 2 236.23 141.74 3 237.42 147.51 4 238.73 150.73 5 240.07 154.05 6 241.38 157.46 7 242.70 160.92 8 244.04 164.45 9 245.37 168.07 10 248.20 174.10 11 251.05 180.40 12 253.93 186.89 13 256.48 187.83 14 259.05 188.75 15 262.16 189.69

28

Compensation3



1 258.30 78.51 2 286.97 178.14 3 287.54 178.38 4 288.71 181.95 5 289.84 185.59 6 291.02 189.29 7 292.18 193.08 8 293.35 196.92 9 294.50 200.87 10 297.92 206.49 11 301.33 212.27 12 304.80 218.21 13 307.09 219.32 14 310.15 220.42 15 313.25 222.08


Year Group CAP F/O 1 218.97 75.74 2 243.32 145.99 3 244.55 151.93 4 245.89 155.25 5 247.28 158.68 6 248.62 162.19 7 249.98 165.74 8 251.36 169.39 9 252.73 173.11 10 255.64 179.33 11 258.59 185.82 12 261.54 192.50 13 264.18 193.46 14 266.82 194.41 15 270.03 195.39

29

Compensation 3



1 268.63 81.66 2 298.44 185.26 3 299.04 185.51 4 300.26 189.22 5 301.43 193.01 6 302.66 196.86 7 303.87 200.80 8 305.08 204.80 9 306.28 208.90 10 309.83 214.75 11 313.38 220.76 12 317.00 226.94 13 319.37 228.09 14 322.56 229.24 15 325.78 230.96


Year Group CAP F/O 1 227.73 78.77 2 253.05 151.83 3 254.33 158.01 4 255.73 161.46 5 257.17 165.02 6 258.57 168.67 7 259.98 172.37 8 261.42 176.16 9 262.84 180.04 10 265.87 186.50 11 268.93 193.25 12 272.00 200.20 13 274.74 201.20 14 277.49 202.19 15 280.83 203.20

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Compensation3



1 276.69 84.10 2 307.40 190.82 3 308.02 191.08 4 309.26 194.90 5 310.47 198.80 6 311.74 202.77 7 312.99 206.82 8 314.23 210.94 9 315.47 215.17 10 319.13 221.19 11 322.78 227.39 12 326.51 233.75 13 328.95 234.93 14 332.23 236.12 15 335.56 237.89


Year Group CAP F/O 1 234.56 81.13 2 260.65 156.39 3 261.96 162.75 4 263.40 166.30 5 264.88 169.97 6 266.32 173.73 7 267.78 177.54 8 269.26 181.45 9 270.73 185.44 10 273.84 192.09 11 277.00 199.05 12 280.16 206.21 13 282.98 207.24 14 285.82 208.25 15 289.26 209.30

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Compensation 3

7. In no event, however, shall a pilot activated in an FDA crew position have an hourly rate of pay less than $100.00 per CH.

D. International Override

1. A pilot who blocks out (as a required crewmember, deadheading crewmember, SCA or LCA), on a flight segment that originates from, arrives at a destination of, or makes an intermediate stop at a location outside the contiguous 48 states, shall earn international override for the trip containing that flight segment. A pilot who shows for a standby in a location outside the contiguous 48 states shall also earn international override for that standby, regardless of whether he blocks out on any flights.

2. International override shall be paid in addition to all other compensation for a trip. International override shall be paid for trip guarantee and overage credit hours earned for that trip as follows:

a. Captain $9.00 per hour$10.00 per hour b. First Officer/RFO $8.00 per hour b. Relief Flight Officer $7.00 per hour c. First Officer $7.00 per hour d. Second Officer $6.00 per hour

E. Checks

1. Pilots shall be paid by checks issued on the 15th and last days of each month.

a. The check issued on the 15th day of the month shall contain: i. one-half of a new hire pilot's monthly salary; or ii. one-half of a pilot's BLG/RLG as awarded, adjusted for phase-

in; and iii. debits for compensation previously received but not earned

(e.g., OTP, drop, no-show); and iv. credits for compensation earned above BLG/RLG from the

previous bid period but not yet received; (e.g., make-up, overage); and

v. per diem earned in the previous bid period; and

32

Compensation3

vi. adjustments or reimbursements to the Company for other overpayments or underpayments. If an adjustment, other than an adjustment described in Section 3.E.1.a.iii., would reduce the pilot's check by 25% of his gross compensation or more, the adjustment may be made in a single lump sum, or in installments of 25% of the overpayment, at the pilot's option; provided, however, that: (a) the pilot shall be given prior notice of any such adjustments;

and (b) any adjustment shall not exceed 25% of gross amount of the

pilot's check without the pilot's consent; and (c) the limits contained in this paragraph shall not apply to

deductions the Company is required by law to make; and (d) any adjustment shall not exceed the maximum adjustment

permitted by law. b. The check issued on the last day of the month shall contain the

remaining one-half of his awarded BLG/RLG, adjusted for phase-in (25.F.) and any other required deductions as described in Section 3.E.1.a. (above).

2. A pilot may request automatic bank deposit of his payroll checks. F. Ultra Long Range (ULR) Premium

1. If a pilot blocks out as a required crewmember, SCA, or LCA on a flight segment, scheduled to exceed 16 block hours at the time the pilot was awarded/assigned the trip, the pilot shall earn the ultra-long range premium (ULR) for the trip containing that segment. Example: A pilot operates a ten-day trip including a revenue segment between MEM-HKG, with a scheduled block time of 16:24. All other segments in that trip have block times less than 16 hours. The pilot earns the ultra-long range premium for the entire trip containing that segment.

2. The ultra-long range premium described in Section 3.F. shall be in addition to all other compensation for that trip (e.g., BKO, International Override). This premium shall be paid for trip guarantee and overage credit hours earned for that trip as follows:

a. Captain $24.00 per hour b. First Officer/RFO $17.00 per hour

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Minimum Guarantees 4

SECTION 4 MINIMUM GUARANTEES AND OTHER PAY PROVISIONS Definitions SAM – The System-wide Average Metric (SAM) shall be the Credit Hour (CH) average of regular and secondary lines, system wide. Secondary lines that are constructed solely with reserve days shall not be included in the average. Two Consecutive Non-Peak Bid Periods – Any bid period with the exception of the November and December bid periods. October and January shall be considered consecutive bid periods. Maximum Line Value (MLV) – The maximum credit hour value of a pilot’s line, including carry-in credit hours. MLV Drop Range – The credit hour span between a pilot’s awarded BLG/RLG (not including carryover) and MLV. A. Minimum Bid Period Guarantee

1. A pilot shall have the following minimum bid period guarantee, except as provided in Section 4.A.2. through A.5. (below): a. 68 CH in a 4-week bid period. b. 85 CH in a 5-week bid period. c. 102 CH in a 6-week bid period.

2. Change to Minimum Bid Period Guarantee a. A pilot's minimum bid period guarantee shall be reduced by the net

number of CH by which the pilot's actual credit hour compensation for a bid period is less than his BLG/RLG as a result of activities being dropped from his awarded line with reduced pay or without pay. Examples of reduced pay include: trips dropped and trip traded down to a lesser value. Examples of trips dropped without pay include: pilot requested drops, phase-in conflict, transition to inactive pay status, emergency drop and disciplinary suspension.

b. If the System Wide Average Metric (SAM) falls below 68/85/102 for two consecutive bid periods, unless otherwise agreed to by the Association, the Company shall employ the measures set out in Section 4.A.2.b.i.

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Minimum Guarantees4

i. b. The minimum bid period guarantee shall be reduced to a minimum of 48/60 CH before any pilot is furloughed. At least a full bid period must follow the announcement of this action. This provision shall only be used to prevent or delay a furlough.Company and the Association shall agree to the sequence and extent of the following: (a) Offer voluntary leaves of absences [discuss potential

enhancements] in certain crew positions as determined by the Company;

(b) To an extent determined by the Company, consider an early retirement incentive [harmonize with Section 23.C.];

(c) Administer Section 25.L.5. (Make-Up), system-wide, such that a pilot will not be eligible for a make-up assignment unless he has at greater than a zero (i.e., at least 0:01) CH bank balance;

(d) Reduce the BLG limit found in Section 25.L.7. (Trading with Open Time), system-wide, from +12 CH to +6 CH;

(e) If not already employed prior to Section 4.A.2.b. being triggered, limit the construction of carryover TAFB into the subsequent bid period as follows:

(1) In crew positions whose average BLG is below 68 CH, domestic carryover shall be limited to 48 hours TAFB; and

(2) In crew positions whose average BLG is below 68 CH, international carryover shall be limited such that no more than 2% of total CH in any bid period package shall be attributable to carryover flying in excess of 168 hours TAFB;

ii. The application of Section 4.A.2.b. shall cease when the SAM climbs above 70/87/105 for two consecutive, non-peak bid periods, or as otherwise agreed by the Company and the Association.

c. If the System Wide Average Metric (SAM) has fallen below 64/80/96 CH for two consecutive bid periods, notwithstanding the application of Section 4.A.2.b., the minimum bid period guarantee shall be reduced to a minimum of 54/68/81 CH. For the bid periods during which Section 4.A.2.c. is implemented, unless otherwise agreed to by the Association, the following shall apply: i. The measures provided in Section 4.A.2.b., except for 4.A.2.b.i.(e)

which shall not be applicable;

35


ii. At least 85% of all lines, system wide, shall be constructed so that such lines are no more than 13 CH (17 CH in a 5 week bid period, or 22 CH in a 6 week bid period) greater than the lowest paid regular line;

iii. At least 95% of all lines, system wide, shall be constructed so that such lines are no more than 16 CH (20 CH in a 5 week bid period, or 25 CH in a 6 week bid period) greater than the lowest paid regular line;

iv. Regular and secondary lines for crew positions in which there are fewer than 100 active pilots who are available for line flying are excluded from the calculations and constraints set forth in Paragraphs 4.A.2.c.ii. and iii. above.

v. In any bid period when the average BLG is less than 64 CHs (81 in a 5 week bid period, or 96 in a 6 week bid period) in a crew position, the Company shall construct reserve lines in that crew position with a minimum of 1 less reserve day than allowed per Section 25.D.3. In any bid period when the average BLG is less than 59 CHs (76 in a 5 week bid period, or 92 in a 6 week bid period) in a crew position, the Company shall construct reserve lines in that crew position with a minimum of 2 less reserve days than allowed per Section 25.D.3. For purposes of this paragraph, the calculation of BLG for a crew position shall not include lines that are more than 16 CH (20 CH in a 5 week bid period, or 25 CH in a 6 week bid period) greater than the lowest paid regular line, system wide.

vi. The Company may establish a Buy-Up Value (BUV) above 54/68/81 CH in order to comply with Paragraphs 4.A.2.c.ii. and iii.

vii. Publish a System Bid to rebalance staffing among the crew positions in the Company’s fleets.

viii. There shall be no volunteer flying. ix. Employ other measures as agreed upon by the Company and Association.

x. Unless otherwise agreed by the Association, if the SAM has fallen below 56/70/84 CH for two consecutive bid periods, the Company shall institute a Maximum Line Value (MLV) as described in Section 4.A.6. below. When the SAM meets or exceeds 64/80/96 for two non-peak consecutive bid periods, MLV shall cease to apply.

xi. If the SAM meets or exceeds 66/82/99 CH for two non-peak consecutive bid periods, the minimum bid period guarantee shall return to the normal limits set forth in Section 4.A.1. in the following bid period, though the provisions of Section 4.A.2.b. may still be

36

Minimum Guarantees4

applicable. Nothing in this paragraph shall restrict the ability of the Company to otherwise exit Section 4.A.2.b. or c.

xii. If the Company hires a pilot(s) and adds the pilot(s) to the Master Seniority List, other than pursuant to a court order or arbitration award, the Company shall exit Section 4.A.2.b. effective with the first day of the bid period immediately following the Date of Hire.

[Note: Harmonize with Section 23 …No furlough prior to invocation of 4.A.2.b. and c.]

3. A pilot who is in an inactive pay status during an entire bid period shall not have a minimum bid period guarantee for such bid period.

4. When a pilot returns to active pay status during a bid period for which he was not awarded a bid line (e.g., Section 25.I.1.a., Custom lines), his minimum bid period guarantee shall be prorated based on the number of days in which the pilot is in active pay status during that bid period.

5. A new hire pilot covered by Section 3.A., shall not have a minimum bid period guarantee. When he is activated into his first crew position following initial new hire training, his minimum bid period guarantee shall be prorated based upon the number of days in the bid period following his activation.

6. Maximum Line Value (MLV) When Section 4.A.2.c.x. is in force, for the purposes of establishing a maximum line value (MLV), the following shall apply: a. The initial value for a crew position shall be a pilot’s awarded BLG

(excluding carryover), plus an additional CH value (that has been designated for that specific crew position) which shall be between 4 and 12 CH.

b. By written agreement of the Vice President, Flight Operations and the FedEx MEC Chairman, MLV may be changed to any value higher than a pilot’s awarded BLG + 12:00 CH. The timing of any change in MLV shall be as agreed upon by the VP and the MEC Chairman.

c. Administration of MLV i. Prior to open time release, a pilot’s line, including carry-in, shall be

limited to MLV. ii. Carry-in CH and activities removed due to vacation, count toward

MLV. Recurrent training pay does not count towards MLV, except where designated in accordance with Section 25.E.4.b.iv. for secondary line awardees.

37


iii. If, after processing conflicts, a pilot’s awarded line exceeds MLV, the following shall occur: (a) During the bid period processing conflict window, the pilot shall

have the ability to drop activities in order to bring his line within the MLV drop range. The process for doing so shall be as follows: (1) A pilot shall have the ability to drop a trip(s)/R-day

block(s) from his line, provided that the value of his line after the adjustment, is within the MLV drop range.

(2) If a pilot is unable to bring his line within the MLV drop range, the pilot shall have the ability to drop a trip(s)/R-day block(s) until the drop(s) would bring his line below the MLV drop range.

(3) Ordinarily, activities scheduled in whole or in part on the following days (i.e., base days): New Year’s Eve, New Year’s Day, Thanksgiving Day, Christmas Eve, or Christmas Day will not be dropped.

(b) If the application of Section 4.A.6.c.iii.(a) does not result in an MLV-compliant line (e.g., not enough CH dropped, submission for dropping activities over holiday, no combination of activities that meet the MLV drop range), the Company shall drop activities, as necessary, to bring his line within the MLV drop range. If it is not possible to drop activities that bring a pilot’s line within the MLV drop range, then activities shall be dropped to bring the pilot’s line below MLV by the least amount possible. If the only means of bringing a pilot’s line below MLV is to drop a trip or activity scheduled in whole or in part on the following days: New Year's Eve, New Year's Day, Thanksgiving Day, Christmas Eve or Christmas Day; whether to drop that activity shall be at the Company’s discretion.

(c) All activities dropped due to MLV shall be treated as carry-in conflicts and shall be eligible for phase-in make up, subject to the limitation contained in Section 4.A.6.c.iii.(d) below The pilot shall be notified of all trips dropped due to MLV.

(d) Pilots eligible to participate in the View/Add window may not increase their lines above MLV.

(e) MLV shall not apply after the release of open time.

38

Minimum Guarantees4

B. Bid Line Guarantee (BLG) A pilot who is awarded a regular line shall have a BLG equal to the total of the trip guarantees for all trips on the line, excluding that portion of the CH of a carryover trip allocated to the next bid period as provided in Section 4.G. (below). Prior to any adjustments, however, a BLG shall not be less than the minimum bid period guarantee as provided in Section 4.A.1. (above). If the sum of trip guarantees for trips on a pilot’’s regular line is less than the minimum bid period guarantee, such pilot’’s BLG shall be increased to the minimum bid period guarantee.

C. Reserve Line Guarantee (RLG) and R-Day Value A pilot who is awarded a reserve line shall have an RLG equal to the value of an R-day multiplied by the number of R-days scheduled on a reserve line for the bid period package (i.e., up to a maximum of 1515, 19, or 1923 days). The value of an R-day shall be determined by dividing 96% of the average BLG for regular lines published in the bid period package by the number of R-days scheduled on a reserve line for the bid period package and then rounding that amount to the nearest minute. Prior to any adjustments, however, an RLG shall not be less than the minimum bid period guarantee as provided in Section 4.A.1. (above).

D. Mini-RLG If a pilot's schedule has both trips and R-days in the same bid period, (i.e., secondary, conversion or custom line, or carryover R-days), the following shall apply: 1. The value of all such R-days shall comprise a mini-RLG. Credit hour accrual

for assignments on such R-days shall be the same as for a regular RLG. 2. CH earned prior to an R-day shall apply toward reserve leveling. 3. CH earned in reserve status in excess of a pilot's mini-RLG shall be paid in

addition to his BLG as provided in Section 4.H.7. (100% up to RLG, 150% for CH over RLG).

E. Secondary, Conversion and Custom Line Guarantee 1. Secondary Line Guarantee

Once constructed, a secondary line shall have a BLG or RLG as follows: a. A secondary line comprised entirely of trips shall have a BLG computed

as provided in Section 4.B. (above). b. A secondary line comprised of trips and R-days shall have a BLG equal

to the sum of the trip guarantees (for trips scheduled on the line) and R-day values (for R-days scheduled on the line). Prior to any adjustments, however, the BLG shall not be less than the minimum bid period

39


guarantee (as provided in Section 4.A.1.). The CH of a carryover trip shall be allocated between bid periods as provided in Section 4.G. (below). The CH of a carryover R-day(s) shall be allocated to the subsequent bid period.

c. A secondary line comprised entirely of R-days shall have an RLG computed as provided in Section 4.C. (above).

d. Considering regular and secondary lines together, the spread between the high and low line in a given crew position shall not exceed 13 CH.

2. Conversion Line Guarantee[Reserved] A pilot whose awarded reserve line is changed to a conversion line shall have a BLG as follows: a. If the reserve line is converted at the pilot's request, he shall have a BLG

computed as provided in Section 4.E.1.a. or E.1.b., (above), as applicable.

b. If the reserve line is converted by inverse seniority, the pilot's BLG shall be equal to the greater of BLG for the converted line, computed as provided in Section 4.E.2.a., (above), or the RLG for the line prior to conversion.

3. Custom Line Guarantee a. If a pilot is assigned a custom line, (as described in Section 25.I.), and

he does not otherwise have a BLG/RLG for the bid period, he shall have a BLG/RLG for his custom line computed as provided in Section 4.B., C. or E.1.b., as applicable. Prior to any adjustments, however, the minimum bid period guarantee shall not be less than the minimum BLG/RLG prorated as provided in Section 4.A.4. (above).

b. If a pilot is assigned a custom line, (as described in Section 25.I.), and he has a BLG/RLG for the bid period (e.g. pay only line), his BLG/RLG for the bid period shall be the greater of his original BLG/RLG or the BLG/RLG for his assigned custom line computed as provided in Section 4.E.3.a. (above).

F. Trip Guarantee 1. A pilot's trip guarantee shall be the scheduled credit hour (SCH) value of

the trip when the trip is awarded/assigned to the pilot (e.g., bid award, trip trade, open time assignment) or when the pilot blocks out on the trip, whichever is greater. The credit hour (CH) value for a trip is computed as the higher of: a. Trip rig, plus revenue block hours in excess of 10 hours in any duty

period; or

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Minimum Guarantees4

b. The sum of the credit hour values of the duty periods. The credit hour value of each duty period is computed as the highest of: i. minimum pay per duty period (MPDP); or ii. block hours; or iii. duty rig.

2. Computation of Credit Hour Values a. Trip Rig

Trip rig is 1 CH for each 3.75 hours of time away from base (TAFB), rounded to the nearest minute.

b. Minimum Pay Per Duty Period (MPDP) A pilot may earn a maximum of 1 MPDP per duty period as follows:

i. MPDP-1 Duty periods during a trip, when such trip contains at least one layover, shall have an MPDP-1 of 3 CH.

ii. MPDP-2 A duty period comprised exclusively of a trip which departs and returns to base in the same duty period shall have an MPDP-2 of 6 CH.

iii. MPDP-E A duty period which operates into and out of a designated MPDP-E sort facility shall have an MPDP-E of 6 CH when the duty period neither originated nor terminated at base.

iv. MPDP-F The final duty period of a trip, which is comprised of revenue flying then deadhead to base, shall have an MPDP-F of 9 CH when: (a) the flight sequence originates at a layover city; and (b) operates to a designated sort facility; and (c) transits such facility and operates to another city; and (d) transits such city and concludes with a deadhead by air to base.

v. Designated Sort Facilities For MPDP-E and MPDP-F, the designated sort facilities are MEM, IND, EWR, OAK, ORD, AFW, GSO, LAX, ANC, CAN, CDG and any additional sort facilities so designated by agreement between the SIG and the Vice President, Flight Operations. If the Company

41


schedules FDA trips to domestic parameters as provided in Section 12.D.1.c., theThe primary sort facility for thatan FDA shall be athe designated sort facility for purposes of MPDP-E and MPDP-F, on such trips.

c. Block Hours Block hours are computed as 1 CH for each 1 hour from block-out to block-in computed on a minute by minute basis.

d. Duty Rig i. Domestic Day Duty Rig

Duty rig is computed as 1 CH for each 2.0 hours on duty within a single duty period, rounded to the nearest minute, when that duty period has a showtime between the hours of 0500 and 1559 LBT.

ii. Domestic Night Duty Rig Duty rig is computed as 1 CH for each 1.92 hours on duty within a single duty period, rounded to the nearest minute, when that duty period has a showtime between the hours of 1600 and 0059 LBT.

iii. Domestic Critical Duty Rig Duty rig is computed as 1 CH for each 1.5 hours on duty within a single duty period, rounded to the nearest minute, when that duty period has a showtime between the hours of 0100 and 0459 LBT.

iv. International Duty Rig Duty rig is computed as 1 CH for each 1.92 hours on duty within a single international duty period, rounded to the nearest minute.

G. Allocation of Carryover 1. Carryover R-Days (into Regular or Reserve Line)

The following shall apply to carryover R-days on which no trip is assigned, for regular and reserve line holders: a. Carryover R-day(s) shall have the R-day value for the bid period in which

they occur.; b. If the pilot holds a reserve line, custom line or secondary line with R-

days in the second bid period, carryover R-days shall be added to the RLG for such bid period.;

c. If the pilot holds a regular line for the second bid period that contains no R-days, carryover R-days shall be paid in addition to the BLG for such bid period.

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Minimum Guarantees4

2. Carryover R-days (into Secondary Line) A secondary line holder with carryover R-days may designate the amount of his carryover R-day CH to be applied toward the new bid period’s BLG or RLG, as applicable. The default setting shall be 0 (zero) CH applied toward the new bid period’s BLG/RLG. Such designation shall be made during the monthly View/Add window, as described in Section 25.__.

3. 2. Carryover Trips a. The total credit hour value of a carryover trip shall be computed as a

single trip as provided in Section 4.F. (Trip Guarantee). b. The total credit hour value for the carryover trip shall be divided between

the two bid periods in which the trip occurs as follows: i. All Trips

(a) If the trip guarantee for the carryover trip is based on trip rig, the first bid period BLG or RLG shall include trip rig for the portion of the carryover trip scheduled to occur in the first bid period; provided, however, if the last duty period of such trip begins in the first bid period, the first bid period BLG or RLG shall include full trip guarantee.

(b) If the trip guarantee for the carryover trip is based on the sum of the duty periods, the first bid period BLG or RLG shall include the sum of the credit hour values of duty periods beginning in the first bid period.

ii. Non-Reserve Trips (Carrying Over into a Regular or Reserve Line) If the carryover trip was not a reserve trip, then the following shall apply: (a) If the pilot holds a BLG in the second bid period, the remainder

of trip guarantee for the carryover trip shall be added to such BLG.

(b) If the pilot holds a BLG with mini-RLG in the second bid period, the remainder of trip guarantee for the carryover trip shall be added to such BLG, and shall not be credited toward mini-RLG or leveling.

(b) (c) If the pilot holds an RLG in the second bid period, the remainder of trip guarantee shall be paid in addition to such RLG, and shall not be credited toward RLG but shall be credited toward leveling.

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iii. Non-Reserve Trips (Carrying Over into a Secondary Line) If the carryover trip was not a reserve trip, then a secondary line holder may designate the amount of his carryover CH to be applied toward the new bid period’s BLG or RLG, as applicable. If the secondary or custom line holder has a mini-RLG, his designated carryover CH shall not be credited toward mini-RLG or leveling. The default setting shall be 0 (zero) CH applied toward the new bid period’s BLG/RLG. Such designation shall be made during the monthly VIEW window, as described in Section 25.__.

iv. iii. Reserve Trips (Carrying Over into a Regular or Reserve Line) If the carryover trip was a reserve trip, the following shall apply: (a) If the pilot holds a BLG in the second bid period, his carryover

R-days shall constitute a mini-RLG for the second bid period. The remainder of trip guarantee for the carryover trip shall be credited toward mini-RLG and leveling.

(b) If the pilot holds a BLG with mini-RLG in the second bid period, his carryover R-days shall be added to the mini-RLG for the second bid period. The remainder of trip guarantee for the carryover trip shall be credited toward mini-RLG and leveling.

(b) (c) If the pilot holds an RLG in the second bid period, the remainder of trip guarantee shall be credited toward such RLG and leveling.

v. Reserve Trips (Carrying Over into a Secondary Line) If the carryover trip was a reserve trip, a secondary line holder shall be afforded the same designation opportunity and default as provided in Section 4.G.3.b.iii. above. If the secondary line holder has a BLG with mini-RLG in the second bid period, his carryover R-days shall be added to the mini-RLG for the second bid period. His designated carryover CH, if any, shall be credited toward mini-RLG and leveling.

c. Notwithstanding other provisions of this paragraph, compensation for carryover trips flown in VLT/DRF/CMU status shall be paid on the 15th of the month following the bid period in which the trip originated; provided, however, that overage accrued on such trips shall be paid on the 15th of the month following the bid period in which the trip terminated.

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Minimum Guarantees4

H. Reserve Credit Hour Accrual 1. A pilot who is assigned a trip(s) or base standby in reserve status shall have

the trip guarantee or standby pay credited toward his leveling and/or RLG as follows: a. For leveling, trip guarantee or standby pay shall be credited upon

assignment. b. For RLG, trip guarantee or standby pay shall be credited when that pilot:

i. actually blocks out on the trip; ii. shows for the standby; iii. is bumped from the trip or standby; or iv. is removed from the reserve assignment for sick leave in

accordance with Section 14.B.5.b. (Sick Leave). 2. If a reserve pilot's R-day(s) is removed for vacation or training, other than

initial, transition, upgrade (ITU) training, an R-day value shall be credited on the first day of the bid period toward his leveling and RLG for each R-day removed.

3. If a reserve pilot's R-day(s) is removed with pay for jury duty, bereavement or Association business, an R-day value shall be credited toward leveling and RLG for each R-day removed.

4. If a reserve pilot is removed from a reserve trip prior to actual block-out for the reasons stated in Section 4.H.4.a. (this paragraph), his RLG shall be credited as provided in Section 4.H.4.b., H.4.c., and H.4.d. a. A reserve pilot removed from a trip for the following reasons shall return

to his reserve schedule: i. trip canceled; (Section 25.H.2.a.); ii. trip revised to extend beyond R-days; (Section 25.M.1.b.); iii. early show without notice; (Section 25.H.2.c.); iv. weather restrictions; (Section 25.H.2.f.); v. FAR or other governmental authority; (Section 25.H.2.g.); vi. Contract limitations (Section 25.H.2.h.).

b. If the pilot is removed from the trip via VIPS more than 1:30 hours prior to his scheduled showtime for an R-1.5 reserve, ormore than 2 hours for an R-2, more than 3 hours for an R-3, or more than 20 hours for an R-24, he shall receive no credit for that trip.

c. If the pilot is removed from the trip via VIPS 1:30 hours or less prior to his scheduled showtime for an R-1.5 reserve, or2 hours or less for an R-

45


2, 3 hours or less for an R-3, or 20 hours or less for an R-24, he shall be credited 3 CH showpay toward his RLG.

d. If the pilot is removed from the trip via VIPS at or after his scheduled showtime, he shall receive 3 CH showpay toward his RLG.

e. The VIPS information is used solely to time stamp the change in assignment. Showpay will be based upon this time stamp. Pilot availability is determined by Section 25.M.3.g.ii.

5. A reserve pilot shall not receive the 3 CH showpay described in Section 4.H.4.c. or H.4.d. (above), if he is removed from the trip and is assigned a trip scheduled to depart in the same duty period.

6. If a reserve pilot is entitled to additional compensation, as provided in Section 4.X. (FAR extension), Section 4.Z. (recall from rest), Section 4.BB.8. (reserve overage), Section 4.CC. (weather replacement), Section 12.D.11. (grid penalties), or Section 25.M.3.d.vii. (disruption for change from any RP to RP-A or RP-B+), that pay shall be compensated in addition to his BLG/RLG.

7. CH accrued on R-days shall be compensated as follows: a. at 100% of his normal pay rate for CH earned up to the RLG for that fleet

in that bid period. b. at 150% of his normal pay rate for CH earned over the RLG for that fleet

in that bid period. 8. Overage CH shall be credited to RLG or compensated in addition to

BLG/RLG as provided in Section 4.BB.8. 9. A reserve pilot who voluntarily accepted a reserve assignment that was

scheduled to extend no greater than 24 hours beyond the end of his block of R-days shall have that portion of that trip that extended beyond his scheduled block of R-days compensated at 150% in addition to RLG. The calculation of the portion of his trip to be compensated at 150% shall be done in the same manner as a carryover trip, as provided in Section 4.G.2.b.i.(a).

I. Adjustments to BLG/RLG 1. Phase-inIn Conflicts

a. If a pilot is removed from a trip(s) or R-day(s) at the beginning of a bid period due to a phase-in conflict (Section 25.F.), the value of such trip(s) or R-day(s) shall be deducted from his new bid period BLG/RLG.

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Minimum Guarantees4

b. If a pilot is removed from a trip(s) or R-day(s) to protect minimum scheduled days off, the value of such trip(s) or R-day(s) shall be deducted from the pilot'’s BLG/RLG.

c. If a pilot is awarded a line in a "“pay only"” status, phase-in conflicts on such line, if any, shall be processed as provided in Section 4.I.1.a. (above).

2. Trip Trades and Trip Drops a. If a pilot drops a trip for which he was entitled to trip guarantee, or trades

a trip(s) for a trip(s) of lesser value, his BLG shall be reduced by the value of the trip dropped or by the difference in the value of the traded trips.

b. If a pilot trades a trip(s) for a trip(s) of higher value, his BLG shall be increased by the difference in the value of the trips.

3. Pay During a Jury Duty Absence If a pilot is removed from an R-day(s), trip(s) or portion of a trip(s), as provided in Section 25.Y., (Jury Duty Absence) he shall be compensated for the portion of those activities in actual conflict with jury duty as follows: a. If an R-day conflicts with jury duty, an R-day value shall be credited

toward leveling and there shall be no adjustment of or credit toward his RLG.

b. If a trip conflicts with jury duty the pilot shall earn trip guarantee. The pilot shall be eligible for substitution on any trip days not in conflict with jury duty.

c. A pilot is on jury duty from initial report date until released by the court. A weekend off with jury duty on the Friday, before and again on the Monday, following is considered continuous jury duty.

[harmonize with jury duty settlement agreement] 4. Recurrent Training Pay (Other than Line Checks)

a. If a pilot’’s recurrent training is scheduled other than as provided in Section 25.C.11.d.iii.(b), the following shall apply: i. When a pilot attendsis scheduled for recurrent training on a

scheduled day off, (including a day(s) off generated due to phase-in conflict), he shall be compensated 4:30 CH for each such day, in addition to BLG/RLG, except as provided in Section 4.I.7.

ii. If a pilot is awarded/assigned recurrent training in conflict with a trip or block of R-days, his pay shall be handled as provided in Section 4.I.1.a. (phase-in conflicts). Conflicts with blocks of R-days under this paragraph shall be handled as follows:(a) If the pilot’’s

47


recurrent training conflicts with a block of R-days but does not split that block (i.e., it does not leave an R-day(s) both before and after the recurrent training), then only the R-days in conflict with recurrent training shall be dropped as a phase-in conflict and the pilot shall remain responsible for the remaining R-days.(b) If the pilot’s recurrent training splits a block of R-days, then, the entire block shall be dropped as a phase-in conflict and the pilot shall not be responsible for any of the R-days in that block.

iii. If a pilot receiving recurrent training is removed from a trip(s) to protect minimum scheduled days off, his pay shall be handled as provided in Section 4.I.1.b.

b. If a secondary line holder is scheduled for recurrent training other than as provided in Section 25.C.11.d.iii.(b), he shall designate whether or not his recurrent training credit hours (4:30 CH for each such day) are to be counted toward his BLG/RLG. The default setting shall be for those credit hours not to count toward his BLG/RLG. Such designation shall be made during the View/Add window.

c. If a pilot’’s recurrent training is scheduled as provided in Section 25.C.11.d.iii.(b), the following shall apply:

i. If a pilot is removed from a trip(s) for which he has trip guarantee, due to a conflict with recurrent training, he shall earn the trip guarantee for that trip(s). His eligibility for substitution shall be governed by Section 25.H.4.b. (Substitution).

ii. If a pilot receiving recurrent training is removed from a trip(s) to protect minimum scheduled days off, he shall earn trip guarantee for that trip(s). His eligibility for substitution shall be governed by Section 25.H.4.b. (substitutionSubstitution).

iii. If a pilot attends recurrent training on a scheduled day off, or on a combination of days off and trip days, the following shall apply: (a) if no trip was removed due to recurrent training or minimum

days off, the pilot shall be compensated 4:30 CH per day, in addition to BLG/RLG, except as provided in Section 4.I.7.

(b) if a trip was removed due to recurrent training or minimum days off, and the total number of training days exceeds the number of trip days removed, the excess days shall be compensated at 4:30 CH per day.

iv. If a reserve pilot attends recurrent training on an R-day, the R-day value shall be credited toward his leveling and RLG.

v. If a reserve pilot attends recurrent training on a scheduled day off the following shall apply:

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Minimum Guarantees4

(a) if the pilot has not waived his minimum days off protection as provided in Section 25.E.1.b., (minimum day off protection for recurrent training), an R-day shall be removed from his line and the R-day value shall be credited toward his leveling and RLG.

(b) if the pilot has waived his minimum days off protection, no R-day shall be removed from his line and he shall earn 4:30 CH in addition to his RLG.

d. c. A pilot who completes CBTdistance learning-based training shall earn 31 CH for each 82 scheduled hours of that training, or portion thereof. That compensation shall be in addition to BLG/RLG.

5. Initial, Transition, Upgrade (ITU) Training Pay a. A pilot in ITU training for an upgrade award or an award as a result of

an excess bida crew position assignment shall earn a minimum of his BLG/RLG, adjusted as described in Section 4.I.1.,1. (Phase in-In Conflict), excluding carryover CH. If he does not have a BLG/RLG (e.g., returning from a leave of absence), he shall be assigned a prorated RLG (4 days of work for every 7 days available) for his crew position based on the number of days he is in active pay status during the remainder of the bid period.

b. For any bid period not completely covered by a pilot’’s ITU footprint, in which the pilot is awarded a secondary line, the value of his ITU to be applied toward his BLG/RLG shall be a prorated portion of the credit hour value of average BLG for his crew position. This pro-ration shall be calculated by dividing the number of days underneath his ITU footprint, in the bid period, by the total number of days in the bid period (28, 35, or 42), rounded to the nearest whole number.

c. b. A pilot in ITU training for a lateral or down bid, other than a pilot who was excessedassigned into that crew position, shall be awarded a line in pay only status. The pilot shall not be compensated for any carryover CH on his pay only line.

d. c. A pilot in ITU training will only be compensated for the carryover credit hours he actually flies and any remaining carryover credit hours shall be eligible for make-up.

e. For the bid period in which the pilot completes OE, the pilot shall be compensated the greater of:

i. the pilot’s pay only line; or ii. the higher of SCH or ACH for OE trips, plus 4:30 CH for each day

the pilot received or showed for scheduled training other than OE.

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6. Requalification Training Pay a. If a pilot receiving requalification training does not hold a pay only line,

pay for requalification training shall be as described in Section 4.I.4. (recurrent training pay), or I.5. (ITU training pay), whichever is applicable based on the extent of the training necessary to accomplish requalification.

b. If a pilot receiving requalification training holds a pay only line, he shall be compensated as provided in Section 4.I.5. (ITU training pay).

c. The Company shall notify a pilot requiring requalification training, via VIPS, of a potential lapse in currency at least 14 days prior to the lapse. If the pilot does not maintain currency, the following shall apply:

i. trips or R-days shall be dropped due to non-currency; and ii. the pilot shall be eligible for make-up for any trips or R-days

dropped as a result of non-currency; and. iii. the pilot shall not be compensated for days spent in requalification

training. iv. A pilot is expected to take proactive steps to maintain currency. A

pilot who makes reasonable efforts to maintain currency will not be penalized, e.g., schedules simulator and it cancels, or has trip scheduled and it cancels.

7. Pay Following Training Failure a. If a pilot incurs a training failure, he shall continue to receive

compensation as described in Section 4.I.4., I.5. or I.6., (recurrent, ITU or requalification training) as applicable, except that he shall not be compensated for any subsequent training on a scheduled day off.

b. If a pilot training for a down bid award fails to complete his first training cycle, such pilot shall be compensated at his new (down bid) pay rate until he trains for and is activated into a higher paying crew position.A pilot awarded or assigned a lower-paying crew position, whose activation is delayed owing to his performance or unavailability (e.g., leave of absence, sick leave), will begin to earn the lower hourly rate of pay 90 days following the pilot’s awarded/assigned training start date, unless his actual activation is sooner.

8. Bereavement Pay A pilot removed from a trip(s) or R-day(s), as provided in Section 25.Z., (Bereavement Absence), shall be compensated for the portion of such activities in actual conflict with the bereavement absence as follows:

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Minimum Guarantees4

a. If an R-day conflicts with a bereavement absence, an R-day value shall be credited toward leveling and there shall be no adjustment of or credit toward his RLG.

b. If an entire trip conflicts with a bereavement absence, the pilot shall earn trip guarantee.

c. If a portion of a trip conflicts with a bereavement absence, the following shall apply:

i. the pilot shall be paid for any portion of the trip which he actually operated; and

ii. the pilot shall be paid for other portions of the trip that conflict with bereavement absence; and

iii. The CH remainder of trip guarantee (i.e., that part not compensated as bereavement pay, and not actually operated), if anymultiplied by 100, 125, or 150%, as applicable based on the trip’s assignment code, shall be : (a) charged to the pilot’’s sick bank. ; or (b) If the pilot requests, however, the remainder of trip guarantee,

if any, will be charged to his vacation bank; or may be (c) If the pilot requests, deducted from his BLG, and be eligible for

make-up. 9. Training Support Pay

a. If a pilot occupiesis scheduled to occupy a crew seat in support of another pilot's simulator training (or aircraft/FTD training in lieu thereof) on an R-day, at his base, he shall be credited R-day value toward his leveling upon assignment and RLGcredited toward RLG if he shows for such assignment. [Note: He will have an R-day value deducted from his RLG, and receive no leveling credit, if he no-shows such assignment.]

b. If a pilot, other than a pilot on an R-day, occupies a crew seat in support of another pilot's simulator training (or aircraft/FTD training in lieu thereof) he shall earn 4:30 CH in addition to his BLG/RLG. If the pilot is a VLT/DRF/CMU pilot, such compensation shall be at 150% of his normal pay rate.

10. Military Absence A pilot's BLG/RLG shall be reduced by the value of any trip(s) and/or R-day(s) dropped due to military obligations. Such pilot shall be eligible for make-up. A pilot is eligible to use available vacation CH to cover trip days

51


in actual conflict with his military obligations. A pilot’’s use of vacation CH for military obligations shall not create a deficit in his vacation bank.

J. Effect of Line Revisions Prior to the Start of a Bid Period If the Company revises a regular line following publication of a bid period package but prior to the close of the bidding for that bid period, the following shall apply:

1. The Company shall notify the affected pilots of the revision through VIPS and Administrative FCIF.

2. The line shall be awarded as revised at the time the bid closes. 3. The BLG for that line shall be the higher of BLG as originally published or

as revised at the time the bid closes. K. Correction of BLG/RLG Errors

1. If a line is published with a miscalculated BLG, the pilot awarded that line shall receive the higher of the published or the correctly calculated BLG, except that a pilot awarded a line with a BLG published as higher than the maximum permissible under line construction rules shall earn the highest BLG permissible under such rules.

2. The published RLG for a bid period package shall be revised to correct clerical or calculation errors.

L. Substitution 1. A pilot’’s substitution guarantee shall be the sum of all CH earned in

substitution status (i.e., availability credits, airport hold credits, substitution base standby credits and pay for a substitution trip). A pilot shall earn trip guarantee for a substitution trip only if he blocks out on such trip. As provided in Section 25.H.3.b.ii., if a pilot’’s substitution window is greater than 72 hours, and the pilot chooses not to remain eligible for substitution at 4 hours after showtime of the trip that caused substitution eligibility, he shall be paid 18 CH toward trip guarantee and is eligible for OTP for the balance of trip guarantee.

2. If a pilot becomes eligible for substitution, he shall be compensated as follows: a. If the pilot accepts all substitution assignments and fulfills all availability

requirements (as described in Section 25.H.3.), he shall earn the greater of the trip guarantee for the original trip or substitution guarantee, provided, however, that a pilot shall not earn more than the trip guarantee for his original trip unless the value of the substitution assignments he performs (i.e., trips, standbys and airport holds) is greater than original trip guarantee; or

52

Minimum Guarantees4

b. If the pilot forfeits trip guarantee (e.g. by refusing a substitution assignment or failing to remain available for contact), and neither accepts a reassignment trip nor enters OTP, he shall earn substitution guarantee only; or

c. If the pilot accepts a reassignment trip, he shall earn reassignment trip pay as determined by Section 25 H.10. and Section 4.M. (below); or

d. If the pilot enters OTP, he shall earn compensation as determined by Section 4.N. (below); and

e. A pilot shall not earn both assignment trip CH and substitution availability CH during the same day of substitution eligibility.

3. If a pilot initially eligible for substitution remains available as provided in Section 25.H.3.b. through H.3.e., (availability periods), he shall receive 6 CH toward his substitution guarantee for each availability period if: a. during that availability period, he was not offered a substitution trip; or b. during that availability period, he did not reject a substitution trip; and c. the availability period was not entirely contained within the 72 hours in

which no substitution assignment can begin as provided in Section 25.H.3.b.ii.

4. If a pilot is held for 4 hours at the airport following removal from his original or substitution trip, and does not block out on a substitution trip during that 4 hour window, he shall earn 6 CH credit toward his substitution guarantee.

5. If a pilot forfeits trip guarantee, he shall be eligible to make-up the value of his original trip guarantee less CH earned in OTP, (if the pilot is in OTP) or his substitution guarantee (if the pilot is not in OTP).

6. If a pilot is eligible for substitution due to recurrent training, the recurrent training pay provided in Section 4.I.4.b.iii. shall be credited toward his substitution guarantee.

M. Reassignment Trip Pay 1. If a pilot accepts a reassignment trip he shall be compensated the higher of

trip guarantee for the original trip(s) calculated at 100% of his normal pay rate, or trip guarantee for the reassignment trip calculated at 125% of that rate, if: a. he blocks out on the reassignment trip; or b. he becomes eligible for substitution based on his reassignment trip; or c. the Company removes him from his reassignment trip for operational

reasons (e.g., to replace a high minimums pilot).

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2. If a pilot trades his reassignment trip, he shall earn only the trip guarantee for the trip(s) assumed as a result of the trade.

3. If a pilot does not block out on a reassignment trip due to illness or injury, he shall be compensated the trip guarantee of the reassignment trip (at 100% of his normal pay rate), and his sick bank shall be charged accordingly.

N. PMU (Priority Make Up) Trip Pay 1. A pilot in OTP shall be pay protected for the trip guarantee of his original

trip for the remainder of the bid period in which the trip began plus twothree additional bid periods thereafter. The trip guarantee for his original trip shall then be deducted from his first paycheck after the pay protection ends (and subsequent paychecks if necessary).

2. If a pilot is assigned an OTP trip, he shall earn trip guarantee. 3. CH for trips assigned in OTP status shall be compensated at 125% of the

pilot’’s normal pay rate, except that CH earned for trips assigned in OTP status, which exceed the pilot’’s OTP eligibility shall be compensated at 100%. Example: A 12 CH trip and aan 18 CH trip become eligible for substitution. The pilot holding those trips elects OTP and therefore has an OTP eligibility of 30 CH. The pilot flies a 24 CH trip in OTP status. These CH are paid at 125%. With 6 hours of OTP eligibility remaining, (and before that eligibility expires), the pilot flies a 9 CH trip in OTP status. Six of these CH are paid at 125% and the other 3 CH are paid at 100%.

O. Base Standby Pay 1. A pilot on base airport or base hotel standby shall be guaranteed minimum

standby pay of an R-day value, except as provided in Section 4.O.2. (below).

2. If a pilot eligible for substitution is assigned a base standby, (as provided in Section 25.H.5.d.), and does not block-out on a trip, he shall be credited with 6 CH towards his substitution guarantee. If he blocks out on a trip, he shall be compensated the greater of trip guarantee for such trip or substitution availability credit.

3. If a pilot on base airport standby blocks out on a trip, he shall earn the trip guarantee for that trip, with the calculation of MPDP and duty rig beginning at showtime of the standby period.

4. If a pilot on base hotel standby blocks out on a trip, he shall earn the trip guarantee for that trip.

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Minimum Guarantees4

P. Make-Up Pay A pilot who is assigned a make-up trip shall be compensated as follows: 1. If a pilot is assigned a make-up trip, other than make-up sick or make-up

vacation, he shall earn trip guarantee. 2. Make-Up Sick (MUS), Make-Up Disability (MUD) and Make-Up Vacation

(MUV) a. If a pilot is assigned an MUS, MUD or MUV trip, he shall earn trip

guarantee if he blocks out on such trip. b. If a pilot is removed from an MUS, MUD or MUV trip prior to block-out,

he shall be credited as follows: i. If he is removed via VIPS more than 13:3000 hours prior to his

scheduled showtime, he shall receive no credit for that trip. ii. If he is removed via VIPS 13:3000 hours or less prior to his

scheduled showtime he shall be credited with 3 CH showpay. iii. If he is removed at or after his scheduled showtime, he shall be

credited with 3 CH showpay. iv. Notwithstanding other provisions of this paragraph, if a pilot blocks

out on another MUS, MUD or MUV trip with a showtime within 4 hours of the showtime of the original trip, he shall not receive showpay for the first trip.

c. If a pilot is removed from an MUS, MUD or MUV trip prior to block-out due to sick leave, he shall not earn any CH for that trip and no deduction shall be made from his sick leave account.

Q. Volunteer (VLT), Draft (DRF), and Compensatory Make-Up (CMU) Pay A pilot who is notified of a VLT trip or has accepted a DRF trip shall be compensated as follows: 1. Except as provided in Section 12.C.2.c.iii., (taxi/air turn back to base), and

Section 8.C.1.f.iii., (deviation trip schedule change), if a pilot blocks out on a VLT/DRF trip, he shall earn trip guarantee at 150% of his normal pay rate and overage, if any, as provided in Section 4.BB. Such compensation shall be in addition to BLG/RLG.

2. If a pilot is removed from a VLT/DRF trip prior to block-out, he shall be compensated as follows. a. If he is removed via VIPS more than 13:3000 hours prior to his

scheduled showtime, he shall receive no compensation for that trip. b. If he is removed via VIPS 13:3000 hours or less prior to his scheduled

showtime he shall earn 3 CH showpay at 150% of his normal pay rate.

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c. If he is removed at or after his scheduled showtime, he shall earn 3 CH showpay at 150% of his normal pay rate.

d. A pilot who is removed from multiple VLT or DRF trips within the same duty period shall receive a maximum of one showpay associated with such duty period.

3. A pilot who is removed from a VLT or DRF trip and blocks out on another VLT or DRF trip with a showtime within 4 hours of the showtime of the original trip shall not receive showpay for the first trip.

4. If a pilot is removed from a VLT or DRF trip prior to block-out due to sick leave, he shall not earn any CH for that trip and no deduction shall be made from his sick leave account.

5. A pilot who is removed from a VLT or DRF trip after block-out due to sick leave shall be compensated at 150% of his normal pay rate for such trip. The CH charged to sick leave, (as described in Section 14.B.5.), shall be charged at 150%.

6. For purposes of this Section, the provisions of Section 4.Q.1. through 4.Q.5. apply for a pilot assigned a CMU trip.

7. CH for trips assigned in compensatory make-up status shall be compensated at 150% of the pilot’s normal pay rate, except that CH earned for trips assigned in compensatory make-up status, which exceed the pilot’s compensatory make-up eligibility, shall be compensated at 100%.

R. Field Emergency Pay 1. If a pilot in field emergency pay status departs his location to position for the

trip, or blocks out on the revenue portion of a trip, he shall earn trip guarantee at 150% of his normal pay rate. He shall be reimbursed for expenses incurred in positioning, as provided in Section 5.A.7., (authorized expenses), by submission of an expense report. (A field emergency pilot’’s trip shall be constructed as provided in Section 25.R., in order to establish a credit hour value for the trip).

2. If a pilot accepts a field emergency trip and is removed from that trip prior to departing his location for the purpose of positioning for the field emergency trip, he shall earn 3 CH paid at 150% of his normal pay rate.

S. Special Project Pay A pilot assigned to special projects shall receive $20100 per hour worked on a scheduled day off, not to exceed 8 hours per day.

T. Special Exemption PayPriority Non-Premium (PNP) A pilot shall be paid 3 CH in addition to all other compensation for any duty period that requires a special exemption due to the carriage of a substance that

56

Minimum Guarantees4

requires a special exemption to be carried on board FedEx aircraft. This extra pay shall be accomplished by submission of a pay log. This paragraph does not extend to radioactive substances that exceed 50 Transport Indices (TI’s), i.e., DOT 7060 “Hot Flight,” but this paragraph does extend to such substances as Hydrazine that require a special exception in and of themselves.who is assigned a PNP trip shall earn trip guarantee, in the same manner as provided for a general make-up trip in Section 4.P.1. above.

U. Taxi Pay 1. A pilot who reports for or performs aircraft ground operations for a purpose

other than flight, not during a trip or base standby, shall earn 3 CH or duty rig, whichever is greater.

2. A pilot who reports for or performs aircraft ground operations for a purpose other than flight, during a trip or base standby, shall earn 1 CH in addition to all other compensation due. This additional 1 CH shall be payable upon the pilot’s submission of a pay log.

V. [Reserved] W. Disruption Compensation

1. Trips held in the following pay codes are eligible for disruption pay: TRP, AST, SOFSON, SWP, M/U, PNP, MUV, MUD, MUS, PDO, AFB and CIA. If a pilot's eligible trip is disrupted as provided in Section 25.S., the pilot shall receive disruption pay as follows: a. Landing Disruption

0:30 CH for the first extra landing in a trip and 1:30 CH per extra landing thereafter as provided in Section 25.S.2.a.

b. Duty Period Disruptions 1:30 CH for each duty period in which one or more of the disruptions described in Section 25.S.2.b. occurs.

c. Layover Change Disruption 1:30 CH per trip for disruptions described in Section 25.S.2.c.

d. Crew Designation Disruption 1:30 CH for each flight in which a pilot who was awarded/assigned a crew designation as a Standard Crew member, and is assigned and operates as a Relief Pilot, or vice versa, as described in Section 25.S.2.d.

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e. Out-and-Back Disruption 1:30 CH per trip for disruptions described in Section 25.S.2.e.

f. Single Layover Disruption 3:00 CH per trip for disruptions described in Section 25.S.2.f.

2. The applicability of disruption pay is determined by comparing the trip as awarded/assigned with the trip as actually operated, regardless of intermediate revisions. A pilot must operate a disruption to receive the corresponding pay.

3. Except for the disruption due to a deadhead at the end of a trip being revised to operate, as provided in Section 25.S.2.b.ii., a disruption(s) is not payable based on events that occurred during a duty period that qualifies for extra duty period pay, as provided in Section 4.Y.

X. FAR Extension Pay If a pilot’’s duty period is extended beyond the 1:30 operational limits as provided in Section 25.T., he shall earn an additional 3 CH at his normal pay rate.

Y. Extra Duty Period Pay 1. Trips held in the following pay codes are eligible for extra duty period pay:

TRP, AST, SOFSON, SWP, M/U, MUV, MUD, MUS, PDO, AFB, PNP, and CIA. If the actual number of duty periods operated in a pilot’’s eligible trip exceeds the number of duty periods scheduled when the pilot was awarded/assigned the trip, the pilot shall be compensated 3:30 CH at his normal pay rate for each additional duty period, in addition to all other compensation. Activities assigned during single day base standbys (airport or hotel) shall not generate extra duty period pay.

2. If a duty period qualifies for extra duty period pay, no disruptions, (except for the disruption due to a deadhead at the end of a trip being revised to operate, as provided in Section 25.S.2.b.ii.), are payable based on events that occurred during that duty period.

3. For purposes of determining extra duty period pay, a standby period(s) that is part of a multiple day trip, but is not attached to a duty period scheduled to contain flying shall count as 1 duty period. A hotel standby period counts as a duty period only for purposes of extra duty period pay; the provisions of Section 12 apply in all other cases.

Z. Recall From Rest Pay If a pilot is recalled from a legal rest period, he shall be compensated 3 CH, at his normal pay rate, in addition to all other compensation.

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Minimum Guarantees4

AA. Base Replacement Pay 1. If a pilot blocks out on a base replacement trip, (Section 25.Q.), he shall

earn the greater of trip guarantee for his original or replacement trip. 2. If a pilot described in Section 4.AA.1. (above), is involuntarily assigned,

(Section 25.Q.2.), he shall be compensated at 150% of his normal pay rate. 3. If a pilot blocks out on a base replacement trip, he shall earn 3 CH base

replacement pay at his normal pay rate in addition to all other compensation.

4. If a pilot's base replacement trip is canceled, he shall earn the trip guarantee of his original trip.

BB. Overage Accrual and Compensation 1. Overage Compensation and Credit

a. Overage compensation shall be paid in addition to all other compensation to which a pilot is entitled, except as provided in Section 4.BB.1.b. through BB.1.f. (below).

b. Overage CH for a reserve trip shall be credited and compensated as provided in Section 4.BB.8.

c. Overage CH for a substitution trip shall be credited and compensated as provided in Section 4.BB.9.

d. Overage CH accrued during a make-up vacation trip shall be applied toward a pilot's vacation bank.

e. Overage CH accrued during a make-up sick trip shall be applied toward a pilot's disability sick account.

f. Overage CH accrued during an AFB trip shall be applied as provided in Section 18.E. (Association Fly Back).

2. For the purpose of computing overage compensation, SCH is equal to trip guarantee.

3. If the revision or operation of a non-reserve trip causes a conflict with a pilot's subsequent trip or R-day, the following shall apply: a. If the conflicted activity is an R-day, then:

i. if the pilot was available for any portion of his RP, he shall be compensated both the overage earned and the value of the R-day.

ii. if the pilot was not available for any portion of his RP, he shall be compensated the greater of the overage earned or the value of that R-day.

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b. If the conflicted activity is a trip, it shall be removed and the following shall apply:

i. the pilot shall not be entitled to compensation for the removed trip if he operated the first trip in PDO status, as described in Section 25.L.10., or ifdid not have trip guarantee for the dropped trip is a VLT, DRF, CMU, SUB, MUS, MUV, AFB or RSV trip.

ii. if the removed trip was a substitution trip, the substitution trip shall not be credited toward the pilot’’’s substitution guarantee, and the pilot shall remain eligible for substitution. His entitlement to trip guarantee for his original trip shall not be affected.

c. If the pilot has trip guarantee for the removed trip (i.e., it was not a VLT, DRF, CMU, MUS, MUV, AFB or RSV trip), the pilot may elect the following:

i. to have the trip in conflict dropped without pay, in which case the accrued overage shall be paid and the dropped credit hours shall be eligible for make-up; or

ii. If the pilot does not elect the option in Section 4.BB.3.c.i. (the above paragraph), the subsequent trip shall be removed with pay and the pilot shall be eligible for substitution.

4. If the revision or operation of a reserve trip causes a conflict with a pilot's subsequent trip, the subsequent trip shall be removed and the following shall apply: a. If he did not hold trip guarantee for the subsequent trip (i.e., it was a

VLT, DRF, CMU, MUS, MUV, AFB or RSV trip), the pilot shall not be entitled to compensation for such trip.

b. If the pilot held trip guarantee for the subsequent trip (i.e., it was not a VLT, DRF, CMU, MUS, MUV, AFB or RSV trip), the pilot may elect to have the trip in conflict dropped without pay, in which case the accrued overage shall be paid and the dropped credit hours shall be eligible for make-up.

c. If the pilot does not elect the option in Section 4.BB.4.b. (the above paragraph), the subsequent trip shall be removed with pay (as provided in Section 4.L.), and the pilot shall be eligible for substitution. If the removed trip was a substitution trip, that trip shall not be credited towards the pilot’’s substitution guarantee and the pilot shall remain eligible for substitution. His entitlement to trip guarantee for his original trip shall not be affected.

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Minimum Guarantees4

5. If a trip's ACH exceed OSC or the trip is operationally extended past its original scheduled return time, a pilot shall earn overage CH computed as the higher of: a. ACH minus the sum of OSC for the trip and SCH of any subsequent

trip(s) removed with pay due to actual conflict; or b. trip rig computed for the time the extended trip conflicts with time the

pilot was scheduled to be free from duty at base, if such time exceeds 2 hours.

6. If a trip extends 2 hours or less into time scheduled free from duty at base, overage CH shall be paid at the pay rate applicable to the extended trip; provided however, that overage CH for a PDO trip shall be paid to the pilot who operated the trip.

7. If a trip extends more than 2 hours into time scheduled free from duty at base, overage compensation for the first 12 CH shall be paid at 150% of the pilot’’s normal pay rate. If a pilot earns more than 12 CH of overage on a trip, the excess shall be paid at 200% of the pilot’’s normal pay rate.

8. Reserve Overage a. If the ACH of a reserve trip exceed OSC and/or such trip is operationally

extended 2 hours or less into time scheduled free from duty at base on a non R-day, all overage CH shall be applied to the pilot's RLG and leveling at 100%.

b. If a reserve trip extends more than 2 hours into time scheduled free from duty at base on a non R-day, overage CH shall be computed as trip rig for the period from scheduled trip termination until actual trip termination. Overage CH shall be applied as follows:

i. Overage CH accrued on an R-day shall be applied toward leveling and credited toward RLG at 100%.

ii. Overage CH accrued on time scheduled free from duty on a non R-day shall be applied toward leveling only at 100% and shall be compensated in addition to BLG/RLG at 150% of the pilot's normal pay rate.

9. Substitution Overage a. If the ACH of a substitution trip exceed OSC or that trip is operationally

extended 2 hours or less beyond the release time of the original trip, into time scheduled free from duty at base, all overage CH shall be credited toward his original trip guarantee at 100%.

b. If a substitution trip extends more than 2 hours beyond the scheduled termination of the pilot's original trip, into time scheduled free from duty at base, overage shall be computed as trip rig for the period from

61


scheduled termination of the substitution trip until actual termination of that trip. Overage CH shall be applied as follows:

i. Overage CH accrued, if any, from the scheduled termination of the substitution trip until the scheduled termination of the original trip shall be credited toward trip guarantee of the original trip at 100%.

ii. Overage CH accrued from scheduled termination of the original trip until actual termination of the substitution trip shall be compensated at 150% of the pilot's normal pay rate.

CC. Weather Replacement Pay A pilotcaptain, while away from base on a trip, who is removed from his scheduled activity to replace a weather restricted pilotcaptain earns weather replacement pay of 2:30 CH.

DD. Compensatory Make-Up (CMU)[Reserved] 1. CH for trips assigned in compensatory make-up status shall be

compensated at 150% of the pilot’s normal pay rate, except that CH earned for trips assigned in compensatory make-up status, which exceed the pilot’s compensatory make-up eligibility, shall be compensated at 100%.

2. For purposes of Section 4., a pilot in compensatory make-up status shall be treated as if he were a VLT/DRF pilot and as such does not have trip guarantee.

EE. Grid Penalty Event (GPE) This paragraph applies to all international trips except for international trips constructed under Section 12.D.1.b. or c. 1. A grid penalty event (GPE) occurs in the following five circumstances:

a. A pilot’’s duty period exceeds the maximum duty permitted in the Grid based on his Grid sleep state by more than 1:30.

b. A pilot’’s layover was less than the applicable International Grid Minimum Layover (i.e., 14 hours or 12 based on the chart in Section 12.D.2.e.).

c. A pilot received more than 4 “not adjusted” rests in a row. Each rest after 4 non-adjusted rests shall be a separate GPE event. An initial GPE occurs when the pilot’’s sixth duty period begins without the pilot having received at least 18 hours free from duty preceding the beginning of that duty period. For purposes of Section 4.EE.1.c., only, an unassigned hotel standby period shall be counted as part of the rest periods preceding and/or following it (e.g., an unassigned 11:30 hotel standby period, followed by a 12:30 rest period will be counted as an adjusted rest).

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Minimum Guarantees4

d. A pilot exceeds the landing limitations as permitted in the grid in any single duty period.

e. 3430-in-168120 Nonconformance Penalty If a pilot’’s trip did not conform to 3430-in-168,120 (as set forth in Section 12.D.2.g., except using 30 instead of 32 hours), he shall be paid 3 CH in addition to all other compensation regardless of the 48-hour period as stated in Section 4.EE.3., and the event shall be additive to the total count of GPEs for the trip.

f. 34-in-168 Nonconformance Penalty If a pilot’s trip did not conform to 34-in-168 (as set forth in Section 12.D.2.g., except using 34 instead of 36 hours), he shall be paid 3 CH in addition to all other compensation regardless of the 48-hour period as stated in Section 4.EE.3., and the event shall be additive to the total count of GPEs for the trip.

2. If all GPEs in a trip touch a single 48 hour period, no grid penalty shall be due, except as provided in Section 4.EE.1.e.

3. If all GPEs do not touch a single 48 hour period, then the following penalties shall apply: a. If the trip has two or fewer GPEs, the pilot shall be paid 3 CH per violation

in addition to all other compensation. A duty period that triggers a payment under this paragraph shall be ineligible for FAR Extension Pay.

b. If the trip contained more than two GPEs, the pilot’’s trip guarantee shall be paid a premium of 50% based on the pilot’’s normal rate of pay (i.e., if trip guarantee was at 100%, it pays at 150%,; if trip guarantee was at 125% (OTP), it pays at 175%,; if trip guarantee was at 150%, it pays at 200%). For a reserve pilot, the CH representing the 50% premium shall not be credited toward RLG, but shall be paid in addition to all other compensation, including BLG/RLG.

c. If a trip has multiple GPEs, the following shall apply, one of which is a 30-in-120 or 34-in-168 violation, the GPEs in that trip shall be deemed not to touch a single 48 hour period.

d. GPEs shall be paid to a pilot in his paycheck issued on the 15th of the month, in the bid period following the bid period in which the applicable trip(s) ended.

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FF. Block Override (BKO) If a trip’’s OSC exceed SCH, a pilot shall earn block override CH equal to OSC minus SCH. BKO shall be paid in the same form (e.g., credited toward RLG for reserve trips, credited toward MUS for MUS trips, cash for TRP), at the same pay rate, as trip guarantee.

GG. Critical Period Pay Events 1. This paragraph applies to all trips, regardless of assignment code, and shall

be paid in addition to all other compensation. 2. Critical Period Departures

Following flight deck duty that operates anytime in the critical period, if a pilot has an intermediate stop at a facility other than AFW, CDG, EWR, IND, MEM, or OAK (or other like facilities as agreed upon by the SIG), that is greater than 2 but less than 4 hours (from block-in to block-out), the pilot shall be paid 1.5 CH. This event shall not apply to trips that depart base in the critical period and return to base in the same duty period (out and backs).

3. For any duty period that begins in the critical period, a pilot shall be paid 1.5 CH for each landing in excess of 2 in that duty period.

4. For any duty period that begins in the critical period, if a trip departs from base and returns to base in the same duty period, and blocks in after 10:15 LBT, the pilot shall be paid 1.5 CH.

5. For any flight deck duty period that operates in the critical period, and has a flight in excess of 4:30 block hours, the pilot shall be paid 3 CH for each subsequent flight in that duty period.

HH. Intermediate Stop Pay 1. This paragraph applies to all trips, regardless of assignment code, and shall

be paid in addition to all other compensation. 2. For any flight deck duty period that does not operate in the critical period,

and has a flight in excess of 4:30 block hours, and an intermediate stop (from block-in to block-out time) greater than 2 but less than 4 hours, the pilot shall be paid 1.5 CH for each subsequent flight in that duty period after such intermediate stop.

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Letter—Effect of a Furlough on the Application of Section 4.A.2.c

4

[Date]

Captain Charles W. Dyer, Chairman FedEx Master Executive Council Air Line Pilots Association, International 1770 Kirby Parkway, Suite 300 Memphis, TN 38138 Re: Effect of a Furlough on the Application of Section 4.A.2.c.

Captain Dyer: During our negotiations for a new collective bargaining agreement, the parties agreed upon provisions designed to create objective parameters defining when a reduction in the minimum bid period guarantee would occur (ref. 2015 Agreement Section 4.A.2.c.). As you are well aware, the reduction in the minimum bid period guarantee under the 2011 Agreement was based on a subjective standard, which stated in relevant part, “This provision shall only be used to prevent or delay a furlough” (ref. 2011 Agreement Section 4.A.2.b.). Both parties recognized, during the prior application of this provision and during the negotiations leading up to the 2015 Agreement, the value of including objective parameters in this provision of the Agreement. Even though the parameters for a reduction of the minimum bid period guarantee are now based on objective measures, the parties still agree that the underlying purpose of the language in 2015 Agreement Section 4.A.2.c. remains the same as the underlying purpose of the language in 2011 Agreement Section 4.A.2.b., which was “to prevent or delay a furlough.” During the negotiations for the new Section 4.A.2.c., however, the parties disagreed about the meaning and effect of this provision in the event of a furlough. The Association’s position is that the furlough of a pilot would necessitate an immediate return to the minimum bid period guarantee set forth in Section 4.A.1. The Company, however, believes that the furlough of a pilot would not necessitate an immediate return to the minimum bid period guarantee set forth in Section 4.A.1. if additional furloughs are prevented or delayed by the continued application of Section 4.A.2.c. Rather than continue to argue over what would happen in this scenario – one that neither party hopes will ever occur – we decided to resolve that dispute in a way that does not prejudice either party’s position and that allows the parties to reach agreement on the overall contract. To that end, we have agreed to the following in the event this unlikely scenario arises:

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Letter—Effect of a Furlough on the Application of Section 4.A.2.c

4

In the event of a furlough while Section 4.A.2.c. of the 2015 Agreement is being applied by the Company, notwithstanding the timelines in Section 20 and Section 21, any grievance alleging the issue described immediately above shall be filed in writing with the Vice President, Labor Relations, within 10 days following the date on which the pilot acquired knowledge or reasonably should have acquired knowledge, of the fact(s) or event(s) giving rise to the grievance. The grievance shall be considered and a decision rendered in accordance with the provisions of Section 20. The hearing before the Vice President, Labor Relations shall be conducted within 5 business days following receipt of the grievance, and a decision shall be rendered within 5 business days of the conclusion of the hearing. If the decision of the Vice President, Labor Relations is not satisfactory to the pilot or the Association, such decision may be appealed to the System Board of Adjustment in the manner set forth in Section 21. The System Board hearing shall be commenced within 30 days after the Vice President’s decision, or on the earliest available date offered by the neutral arbitrator selected by the parties. The parties shall make known to the selected arbitrator the expeditious nature of this arbitration and request a decision in the matter as soon as possible. In any such System Board proceeding, the bargaining history of Section 4.A.2.c. in the 2015 Agreement, except as specifically described in this letter, shall not have an impact on the System Board’s adjustment of the dispute described above. If this reflects your understanding, please indicate your agreement by signing below. Sincerely, FEDERAL EXPRESS CORPORATION John D. Maxwell Vice President, Labor Relations Accepted and agreed to on behalf of the Air Line Pilots Association:

_________________________________ Captain Charles W. Dyer Chairman, FedEx ALPA MEC

Dated this _____ day of ______, ______

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Traveling Expenses5

SECTION 5 TRAVELING EXPENSES A. Per Diem

1. Domestic per diem is $1.952.25 per hour of actual TAFB, prorated on a minute by minute basis. On the first day of the July 2011[ ] bid period [DOS+2 years], the domestic per diem shall increase to $2.152.30 per hour of actual TAFB, prorated on a minute by minute basis.

2. International per diem is $2.753.05 per hour of actual TAFB, prorated on a minute by minute basis. On the first day of the July 2011[ ] bid period [DOS+2 years], the international per diem shall increase to $2.953.15 per hour of actual TAFB, prorated on a minute by minute basis. On the first day of the [ ] bid period [DOS+4 years], the international per diem shall increase to $3.25 per hour of actual TAFB, prorated on a minute by minute basis.

3. A pilot on a trip that includes one or more legal rest periods shall receive the applicable per diem to offset the cost of meals, laundry and incidental expenses.

4. A pilot assigned base hotel standby shall receive the applicable per diem for the duration of such standby.

5. A pilot who is away from his base on Company assigned non-flying duty, including training, shall be paid per diem for all hours during which he is away from his base for such duty including travel to and from his duty. When this duty is performed within the contiguous 48 states, the per diem shall be paid at the domestic rate; when this duty is performed outside the contiguous 48 states, the per diem shall be paid at the international rate. This per diem shall be paid by submission of a pay log.

6. Except as provided in Section 8.C.3.e. (regarding hotel use in lieu of double deadhead), per diem shall be paid to a pilot who deviates as if he had flown the trip as scheduled.

7. The Company shall reimburse a pilot for authorized reasonable expenses not covered by Section 5.A.3. through A.6. (e.g., authorized transportation, non-contract hotels, reasonable excess baggage charges in regards to an international commercial flight), incurred while on a trip or on Company business away from his base. The Company issued travel card, if accepted, shall be used to pay for these authorized expenses. An expense report shall be submitted within one bid period to document expenses incurred during the preceding bid period.

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Traveling Expenses 5

8. Per diem based on flying activities shall be paid to pilots in the first paycheck in the bid period immediately following the bid period in which the per diem was earned; provided however, that all per diem for a carryover trip shall be paid: a. on the 15th of the month in which the carryover trip terminated if the trip

terminated before the edit cycle began for that month or; b. on the 15th of the following month if the trip terminated after the edit cycle

began. B. Lodging and Rest Facilities

1. The Company shall provide a pilot a single occupancy hotel room in the following circumstances: a. between 2 consecutive flights within a trip containing an intermediate

stop scheduled to exceed 4 hours. b. at a pilot’s election, if, due to operational circumstances, he is projected

to experience an actual intermediate stop, from block-in to block-out, that is:i. in excess of 4 hours; andii. more than one hour greater than the originally scheduled intermediate stop.

c. while on hotel standby. d. while away from his base for training or other Company assigned non-

flying duty requiring an overnight stay. e. during any legal rest period away from his domicile. f. at the conclusion of the revenue portion of a trip, at the pilot’s election,

when the final duty period of that trip exceeds 10 hours and the pilot is scheduled to deadhead by air to his base as the concluding segment of the trip. i. The room shall be located in the city in which the revenue portion of

the trip terminates and the deadhead is scheduled to originate. ii. The pilot is responsible for maintaining his eligibility and legality for a

subsequent assignment. iii. Unless operational circumstances preclude it, CRS shall assist the

pilot in making his reservation at the contract hotel, or, if unavailable, at another comparable hotel in the same city.

iv. Deviation from scheduled deadhead procedures as referenced in Section 8.C.1.h. (End of Trip Deviation), shall be followed.

g. at the conclusion of a trip at domicile when the trip was scheduled with a layover(s) and is rescheduled as follows: i. the trip has no layover; and

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Traveling Expenses5

ii. the duty time for the trip as rescheduled exceeds 9 hours. h. For hotel rooms required under Section 5.B.1.a. and 5.B.1.b. only, if an

intermediate stop, measured from block-in to block-out, is less than 5 hours and the stop occurs during the night or critical duty period (or during a domestic duty period at the Memphis hub sort facility), the Company may substitute a sleep room in the hub sort facility for a hotel room; provided, however, that the Company has sleep rooms available in the hub sort facility for all pilots transiting the hub sort facility with an intermediate stop of 2:30 hours or more (from block-in to block-out).

2. If a routinely scheduled intermediate stop is scheduled to exceed 2 hours, a suitable rest/break facility shall be provided, except where it is not operationally feasible and it shall meet the following parameters: a. clean and sanitary; b. appropriately climate and light controlled; c. adequate comfortable seating with at least 3 recliners; d. access to refreshments and snacks; and e. clean, sanitary washrooms with hot and cold running water and toilet

facilities. f. In selecting locations for pilot rest/break facilities, in order to promote the

best practicable rest opportunities, preference shall be given to locations that are segregated from disturbances (e.g., excessive foot traffic, operational activities, etc.)

g. The Company’s Fatigue Risk Management Group, with input from the Data Collection Steering Committee, will provide oversight concerning the Company’s compliance with these parameters.

3. The Company agrees to provide pilots lodging facilities consistent with its historical practices. Such facilities permit pilots to receive adequate rest and offer a range of services while at the same time providing the Company with a good and predictable value. At a minimum, the following guidelines shall be considered when contracting hotel accommodations: a. Secure, and clean and, when possible, with guaranteed non-smoking

rooms. Pilots who smoke in designated non-smoking rooms shall be responsible for room cleaning expenses charged by the hotel, if any;

b. 24 hour room service or restaurant availability, or transportation to a dining facility;

c. Transportation to the hotel shall be made available within 30 minutes of block-in;

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d. Access to exercise facilities, if possible, whether on-site, or by arrangement with near bynearby facilities;

e. For a scheduled layover of 12 hours or more, locations more distant from the airport with amenities close to the hotel such as dining, recreation and shopping, will be considered as part of the hotel selection process; and

f. Free in-room high-speed wireless internet access. 4. The Vice President, Flight Operations shall be ultimately responsible for the

selection of facilities for which this Section provides. a. The Company shall meet at least quarterly with the MEC Hotel and

CateringTrip Services Committee to evaluate the adequacy of current facilities.

b. Addressing Concerns/Problems i. The Company shall promptly investigate complaints from the MEC

Hotel and CateringTrip Services Committee relating to service at any facility. If the investigation reveals a deterioration of service below the acceptable guidelines as stated above, the Company shall take appropriate action to remedy the reported problem or seek alternate facilities. The Company shall advise the MEC Hotel and CateringTrip Services Committee of its findings and any corrective action taken.

ii. Should the Company and the MEC Hotel and CateringTrip Services Committee fail to resolve or address concerns/problems experienced by pilots about the quality or performance of a particular present or proposed lodging facility to the satisfaction of the MEC Hotel and CateringTrip Services Committee as described above, the MEC Chairman may elect to notify the Vice President, Flight Operations concerning the issue(s). The notification shall be in writing and shall state the unresolved concerns/problems and the Association’s position. Upon receipt, the Vice President, Flight Operations shall promptly have the stated unresolved concerns/problems investigated. Within a reasonable time, the Vice President, Flight Operations shall meet with the MEC Chairman at a mutually acceptable date and time to review the results of the investigation and discuss options for dealing with the unresolved concerns/problems. Following the meeting, the Vice President, Flight Operations shall advise the MEC Chairman within 15 business days in writing of what actions, if any, the Company shall take to address the presented concerns.

c. If the Company intends to enter into or cancel a contract for lodging facilities for pilots, the Company shall notify the MEC Hotel and

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Traveling Expenses5

CateringTrip Services Committee. Unless precluded by unforeseen circumstances, notice shall be provided 30 days prior to the execution or cancellation of any contract. The Company and the MEC Hotel and CateringTrip Services Committee shall discuss at the quarterly meeting, and consult at other times, regarding the suitability of particular lodging facilities/locations or the desired change.

5. The Company shall pay for a pilot's hotel room, tax, access charges related to phone calls (local and long distance), and business related telephone calls. All other incidental charges shall be paid by the pilot when checking out. The Company shall arrange direct billing for all designated facilities, and, if possible, for unscheduled accommodations. The pilot shall ensure that the direct bill for his stay includes only expenses that qualify for reimbursement (e.g., no long distance personal calls on direct bill).

6. The Company shall maintain and distribute to pilots a list of all approved facilities at stations and alternate locations where pilots are scheduled to receive lodging as provided by this section. This list shall include the facility name, telephone number, scheduled pick up time prior to departure and ground transportation vendor information.

7. A pilot shall cancel any scheduled hotel rooms he does not intend to use. Credit for the cancelation shall be as provided in Section 8.C.2.g. If, having canceled his hotel room, a pilot’s personal plans change and he needs a hotel room as originally scheduled, he may either re-book his original hotel room, or if unavailable, obtain a hotel room in the same city and be reimbursed for such room up to the contract hotel rate. CRS shall re-book the pilot’s room, (subject to availability), at that city’s contract hotels only, when Company schedule changes or operational delays are the reason for the pilot’s change of plans. If the pilot stays in a hotel room, as provided in this paragraph, other than after a revenue trip, he shall notify CRS of his contact numbers. This hotel room shall be paid for using the Company issued Travel Card, unless CRS advises the pilot of a direct billing arrangement at a contract hotel. This hotel room shall not be charged to the pilot’s deviation bank, and shall be documented by the submission of an expense report.

8. If the Company becomes aware of circumstances at a hotel property that could preclude pilots from receiving adequate rest (e.g., public demonstration, labor actions), the Company shall attempt to minimize or eliminate the potential disruption (e.g., by relocating pilots, etc.).

C. Transportation The Company shall arrange safe and secure transportation at no cost to the pilot to and from all accommodations required in this Section.

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D. Alternate Accommodations or Transportation 1. If crew accommodations (as described in Section 5.B.), have not previously

been made, a pilot shall contact CRS to obtain accommodations. If reservations have not been made, at the pilot’s option, he may obtain comparable accommodations at the lowest rate available at the time the reservation is made. If these accommodations cannot be direct billed, pilots are authorized to charge these expenses as provided in Section 5.A.7. (above).

2. If transportation required under Section 5.C. (above), is not provided within 30 minutes after block-in, the crew is authorized to obtain transportation and to charge these expenses as provided in Section 5.A.7. (above). If the scheduled transportation from the layover location to the departure airport is not available in time to prevent a departure delay, the crew shall use their best efforts to obtain transportation as provided in Section 5.A.7.

E. Catering 1. Catering for duty periods within a trip shall be provided as follows:

a. Domestic Duty Periods and Trips Scheduled to Domestic Parameters (pursuant to Section 12.D.1.c.i. and ii.) i. All duty periods shall receive at least a mini-snack. Mini-snack

contents shall be developed and revised in consultation with the MEC Trip Services Committee subject to Section 5.E.6. below.

ii. i. Duty periods between 5:30 and 7:29 hours shall receive a snack. iii. ii. Duty periods between 7:30 and 11:29 hours shall receive 1 meal

service. iv. iii. Duty periods in excess of 11:29 hours shall receive 1 meal and 1

snack. v. iv. Domestic flights shall be catered at the point of origin. vi. v. No hotHot meal service is not required on domestic flights. vii. vi. Domestic flights shall not be delayed for catering. viii. vii. If catering is not delivered by departure time, CRS will attempt to

arrange catering down line. If catering required under Section 5.E.1.a.i., ii., or iii., or iv. is not delivered down line, the pilot entitled to such catering shall be eligible to expense a meal for up to $25 upon arrival at the layover city. The pilot shall submit an online Pilot Ops Report (POR) [potential nomenclature change] regarding the catering failure and attach a copy of such POR to his expense report in order to secure reimbursement.

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Traveling Expenses5

ix. viii. Jumpseaters will not be catered domestically, except as provided in Section 5.E.1.e.

x. On international trips scheduled to domestic parameters (Pursuant to Section 12.D.1.c.i. and ii.), menu selection shall be provided when available.

b. International Duty Periods i. All duty periods shall receive at least a mini-snack. Duty periods

between 5:30 and 7:29 hours shall receive a snack. ii. Duty periods between 7:30 and 9:00 hours shall receive 1 meal

service. iii. Duty periods in excess of 9:00 hours shall receive 2 meals. One

meal shall be hot if the scheduled aircraft is equipped with an oven. Menu selection shall be provided when available.

iv. An International flight shall not be delayed for catering if it is scheduled for snack or mini-snack service only, or if it is scheduled to domestic parameters, as provided in Section 12.D.1.b. and , 12.D.1.c.i. and ii. [check cross-references]

v. Jumpseaters will be provided one meal on flights where the crew is provided meal service. Generally, meal selection is not available for jumpseaters, however, deviating crewmembers are entitled to meal selection, provided they are both confirmed on the jumpseat and request meal selection at least 12 hours before showtime of the flight. International flights shall never be delayed waiting for jumpseater catering.

vi. Menu selection forms will be provided for formalizing crew requests.

vii. All international flights are catered by the point of origin. viii. For purposes of catering parameters, Canada, Mexico and Puerto

Rico will be considered international locations as far as duty time is concerned, however, meal selection is not available in these locations.

c. If a domestic flight sequence not otherwise scheduled for catering is scheduled to block-out between 2300 and 0830 local time, such flight shall be catered with a mini-snack at the point of origin. If a pilot’s flight sequence otherwise covered by this paragraph, blocks out between 05300500 and 0830, such flight sequence shall receive a breakfast snack instead of a mini-snack.

d. If a flight sequence is scheduled for an intermediate stop for more than 2 hours (from block-in to block-out) at a hub or sort facility with open

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dining facilities, catering shall not be provided as required by Section 5.E.1.a. However, a flight shall be catered if the individual flight (or flight/deadhead) segments before or after the 2 hour intermediate stop would otherwise require catering as described in Section 5.E.1.a.[Reserved]

e. If a flight is scheduled to be catered, all Company scheduled deadheading pilots on that flight shall also be catered.

f. If a pilot on airport standby is assigned a flight, a snack shall be catered for him, regardless of whether the flight would otherwise be eligible for catering.

g. If a pilot on hotel standby is assigned a flight with a report time less than 1:30 from time of notification, he shall receive a mini-snack at the point of origin.

2. Flights originating from any base, IND, OAK, EWR or AFW shall be catered with hot coffee and at least 1 ice chest containing ice, water and an assortment of juices and sodas. Flights originating from other stations shall be catered with hot coffee, ice and water. All required drinks, including coffee, shall be placed on the aircraft by ground personnel.

3. When operational circumstances warrant, (e.g., hub malfunctions, weather or aircraft maintenance delays, etc.), a Captain operating a flight not scheduled for catering may request that catering be provided. These requests shall not be unreasonably denied.

4. When combined in the same duty period with Company assigned flying, deadhead travel time (air or ground) shall be included in applying the catering provisions contained in Section 5. E.1.a. and E.1.b. Travel from airport to hotel is not ground deadhead (unless the arrival city and the next departure city are different, in which case it may be ground DH).

5. If the Company is required to provide catering, and the location has no FDA-approved inflight kitchen (i.e., it is a “NOCAT” city), the pilot shall, upon submission of an online expense report identifying the NOCAT city, be entitled to $25 for each occurrence, in lieu of catering. NOCAT cities shall be designated in the bid period package.

6. The Vice President, Flight Operations, or his designee, shall make arrangements for the catering required by this Section. The Company shall meet quarterly with the MEC Hotel and CateringTrip Services Committee to review catering and discuss possible modifications (e.g., composition and/or quality of mini-snack, snack, meal selections, etc.). Should the Company and the MEC Trip Services Committee fail to resolve or address concerns/problems to the satisfaction of the MEC Trip Services Committee, ALPA may elect to use the process outlined in Section 5.B.4.b.ii.

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Traveling Expenses5

Additionally, the Association shall have the ability to meet with the Vice President, Flight Operations, or his designee, at mutually agreeable times and locations regarding catering concerns.

F. Parking The Company shall provide each pilot with a parking space in his domicile (or base in case of an FDA base). If a pilot does not live at his domicile (or base in case of an FDA base), he may request a parking space at the Company airport facility, subject to availability and approval. (For information regarding the parking allowance as a deviation expense, see Section 8.C.3.f. [check cross-references])

G. Temporary Vacancy Expenses The following additional provisions apply to a pilot holding a temporary vacancy: 1. The Company shall provide a pilot holding a temporary vacancy with:

a. Deadhead transportation between his base and the domicile of his temporary vacancy at the beginning and end of the temporary vacancy; andb. Business Jumpseat status to and from the domicile of his temporary vacancy for the duration of the pilot’s temporary vacancy.

2. A pilot awarded or assigned a temporary vacancy shall be provided a single occupancy hotel room, as described in Section 5.B.2., for the duration of the temporary vacancy.

3. A pilot awarded or assigned a temporary vacancy shall be paid per diem for all on- and off-duty periods for the duration of the temporary vacancy. The rate of per diem for off-duty periods and for on-duty periods for which the pilot otherwise would not be entitled to per diem shall be determined by the location of the temporary vacancy domicile, in the same manner as described in Section 5.A.5.

G. [Reserved] H. FDA Expenses

The following additional provisions shall apply to a pilot holding an FDA assignment: 1. A pilot, and dependents who relocate to the FDA location, shall be provided

one way air transportation to the FDA location prior to the commencement of the assignment and return transportation to the pilot's domicile at the conclusion of his assignment.

2. A pilot may book 1 round trip business jumpseat during each quarter between the FDA location and any other location designated by the pilot.

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I. Lost and Damaged Baggage In case luggage (including the contents of the luggage) is lost or damaged on a commercial flight, the pilot shall first file a claim with the airline following the airline’s policy for luggage claims. If the airline denies the claim, or portion thereof, because the ticket was not a privately purchased full fare ticket, the pilot should submit airline documentation to his ACPFleet Captain with a claim for the difference between what the airline would have paid a full fare passenger and what the airline actually paid for the claim. The Company shall pay this difference.

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Relocation Expenses6

SECTION 6 RELOCATION EXPENSES Definitions: BASE: An aircraft specific operational work location (an FDA, temporary vacancy or domicile). DOMICILE: An airport or co-terminal airports, designated by the Company, to which pilots are permanently assigned. A domicile is aircraft and base specific. A pilot’’s base is his domicile, except for pilots assigned to an FDA or temporary vacancy. IMMEDIATE FAMILY: A pilot’s spouse, his dependents under the age of 18, and his dependents over the age of 18 that are relocating with the pilot to his new permanent residence. A. General Eligibility Criteria

Except as otherwise provided in this Section, the Company shall provide relocation benefits in accordance with the schedule below: 1. Domicile Closure

A pilot whose permanent domicile is closed shall be eligible for a relocation package #1, as described in Section 6.C. In the event that the ANC domicile is closed, the residency and time-in-crew position requirements for a return move pursuant to the “Special Provisions Related to Anchorage Domicile Moves for Pilots” LOA shall be waived if the domicile closure was the reason the residency and time-in-crew position requirements were not satisfied by the pilot.

2. Excess Assignment A pilot who is excessed from hisassigned to a new crew position, as that term is defined in Section 24, shall be eligible for a relocation package #1; provided, however, that: a pilot excessed from an FDA location a. A pilot currently activated in an FDA crew position who is assigned to a

new crew position in a different FDA or a non-FDA crew position shall be eligible for a relocation package #2, as described in Section 6.D.

b. A junior pilot who is assigned an unfilled permanent vacancy pursuant to Section 24.C.3.b. (inverse assignment), shall be considered to have been excessed. pilot who is assigned from a crew position into which he never activated and to a crew position in the same geographic

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Relocation Expenses 6

location as the base associated with his current crew position will not be eligible for the relocation benefits described in this paragraph.

c. The application of this paragraph shall not result in a relocation package for a new hire pilot.

3. Bidding to Relieve an ExcessStand In Bid Award A pilot who bids to relieve an excessis awarded a new crew position pursuant to a “stand in” bid pursuant to Section 24.C.2.b. and 24.C.2.c.i.(b) shall be eligible for a relocation package #1; provided, however, that a pilot who bids to relieve an excess from an FDA locationcurrently activated in an FDA crew position who is awarded a crew position in a different FDA pursuant to a stand in bid shall be eligible for a relocation package #2, subject to Section 6.A.7. and E.

4. New Domicile A domicile shall remain a new domicile for a period of 12 months commencing with the activation of the first pilot assigned to that domicile, subject to Section 6.A.7.(establishment of an FDA). A pilot who is awarded a vacancy at a new domicile shall be eligible for a relocation package #2., except as provided in Section 6.A.2. and A.3. (above).

5. Different Domicile When Returning From Furlough A pilot recalled from furlough to active service as a pilot to a domicile in a different geographic location than the domicile to which he was last previously awarded/assigned, shall be eligible for relocation package #2.

6. Return From Leave of Absence A pilot returning from a leave of absence who would have been eligible for a relocation package but for his being on leave of absence, shall be afforded an opportunity to relocate and receive the applicable relocation package. In no event shall a pilot be entitled to more than one relocation package upon his return from a leave of absence.

7. Foreign Duty Assignments (FDA) A pilot assignedgoing to or returning from an FDA location shall be eligible for relocation benefits in accordance with Section 6.E., subject to the provisions in Paragraph C.1. of the Letter of Agreement concerning Foreign Duty Assignments in the EMEA and HKG (FDA LOA) for pilots based in the HKG or EMEA FDAs. The establishment of Memphis (MEM) as the permanent domicile for all pilots on an FDA assignment shall not constitute the establishment of a new domicile for purposes of Section 6 and a pilot shall not become eligible for relocation benefits on the basis of his assignment into or out of his MemphisMEM FDA domicile.

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[Harmonize other uses of FDA “assignments” in Section 6, FDA LOA, and the rest of the CBA]

8. Eligibility For Benefits Prior To Activation A pilot may receive relocation benefits prior to being activated into his new crew position, but shall reimburse the Company for expenditures related to his relocation if he is not activated into his new crew position for reasons other than death, or if he does not activate within 18 months following the Company’s first expenditure on the pilot’s relocation.

Note: The Company currently requires, and may continue to require, the pilot to sign a confirmation letter concerning his reimbursement obligations.

9. Crash Pad Eligibility a. A pilot eligible for a relocation package may apply for and shall receive

a relocation package #2.a. (i.e., crash pad move) as described in Section 6.D.2. or D.3.

b. Except as specifically provided otherwise, a pilot who receives a relocation package #2.a. shall be treated as if he had received the full relocation package for which he was eligible.

10. Anchorage based MD-11 pilots who received a Company paid relocation package to the ANC MD-11 domicile as a result of any posting prior to posting 96-01, shall be provided with a Company -paid relocation to their first domicile assignment subsequent to their assignment to the ANC MD-11 domicile. Such pilot is entitled to relocation package #2.2, in accordance with Paragraphs A., B., and C. of the Letter of Agreement concerning Special Provisions Related to Anchorage Domicile Moves for Pilots. In the case of retirement or resignation incident to retirement while assigned to the ANC domicile, the pilot shall be eligible to receive a relocation package #2 when leaving ANC, provided, however that: a. Such pilot shall not be eligible for the relocation allowance described in

Section 6.C.2.; and b. the cost of transporting his household goods shall be limited to the actual

cost of transporting those goods to his pre-ANC residence or pre-ANC domicile, whichever is less.

B. Limitations 1. First Crew Position

a. No benefits under this Section are payable to a pilot for relocation toA newly hired pilot (other than a pilot awarded an FDA crew position or a pilot awarded/assigned an ANC crew position as his first crew position) shall be eligible for the relocation package described in Section 6.D.4.

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(below) upon activation in his first crew position with the Company, except as provided.

b. A newly hired pilot awarded an FDA crew position as his first crew position shall be eligible for either the relocation package described in Section 6.E.1.c. (new hire assigned to FDA). or the “Enhanced” relocation option described in Paragraph C.2. of the FDA LOA upon activation in his first crew position with the Company.

c. A newly hired pilot awarded/assigned an ANC crew position as his first crew position shall be eligible for the relocation benefits described in the Special Provisions Related to Anchorage Domicile Moves for Pilots LOA upon activation in his first crew position with the Company.

d. Basic Indoctrination and Initial New Hire Training are not considered a first crew position for purposes of this Section.

2. Distance Limitations A pilot shall not be entitled to a move package unless: a. the domicile (or base in the case of an FDA) to which he is moving is

more than 50 nautical miles from his current domicile (or base in the case of an FDA); and

b. the permanent residence to which he is moving is more than 50 nautical miles from his current permanent residence; and

c. the domicile (or base in the case of an FDA) to which he is moving is more than 50 nautical miles from his current permanent residence; and

d. the residence to which he is moving is within 100 nautical miles of the domicile (or base in the case of an FDA) to which he is moving; and

e. the residence to which he is moving is in the same country as the base. 3. Limitation Based On Location of Current Residence

The following limitations apply to a pilot eligible for a relocation package, and whose current permanent residence is not located within a radius of 100 nautical miles from his current domicile (or base, in the case of an FDA) and who previously has received a Company relocation package as a pilot, which included a relocation allowance: a. The cost of transporting his household goods shall be limited to the

lesser of: i. the actual cost of transporting those goods from his current

permanent residence; or ii. the cost of transporting those goods from his current domicile (or

base, in the case of an FDA).

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b. The cost of any air transportation benefits for housing searches for the pilot and/or his spouse pursuant to Section 6.C.12. (below), shall be limited to the lesser of: i. the actual cost of the airline travel from his permanent residence, or ii. the cost of air transportation from his current domicile.

c. Any cost for the transportation of household goods that is the responsibility of the pilot pursuant to Section 6.B.3.a. (above), shall be paid by the pilot to the commercial carrier at the time those goods are transported, and shall not be billed to the Company.

4. Package #1, 12 Month Limitation A pilot shall reimburse the Company for 100% of the allowance specified in Section 6.C.2. (below), that was paid under the relocation package #1 if:a. the pilot : a. receives a relocation package #1; and b. he subsequently bids and is awarded a new crew position for which the

projected training date or projected activation date, whichever is earlier, fallshe begins training for or base transfers to within the period of 12 months following his activation into his current crew position; and

c. he is not entitled to a relocation package for his new crew position; and d. he is not covered by Section 6.B.5. (excess and bid to relieve

excessbelow). 5. Ineligibility For Relocation In Multiple Stand In Bid To Relieve ExcessAward

Situations A pilot shall not be eligible for a relocation package in conjunction with a subsequent award to a new crew position pursuant to a stand in bid to relieve an excess award ifaward pursuant to Section 24.C.2.c.i., if the pilot: a. He receives a relocation package in accordance with Section 6.A.3.

(Bidding to Relieve an Excess); and b. he is subsequently awarded another bid to relieve an excessnew crew

position pursuant to a stand in bid award; and c. the projectedbegins training date or activation date for thefor or base

transfers to his new crew position to which he is excessed, whichever is earlier, falls(awarded as a stand in bid award), within 12 months following completion of his prior relocation.

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6. Package #2, 18 Month Limitation a. A pilot shall reimburse relocation expenditures paid by the Company for

his relocation package #2, if the pilot: i. He receives a relocation package #2 pursuant to Section 6.A.4. (New

Domicile); and ii. he subsequently bids and is awarded a crew position for which the

projected training date or projected activation date, whichever is earlier, fallshe begins training, or to which he base transfers, within the period of 18 months following his activation into his current crew position; and

iii. he is not eligible for a relocation package for his new crew position. b. The reimbursement shall be prorated as described in Section 6.B.9.

(Reimbursement Schedule). Expenditures incurred pursuant to Section 6.C.8 (Marketing Assistance), shall not be reimbursed.

7. Package #1, or #2, 18 Month Limitation a. A pilot not covered by Section 6.B.4., B.5. or B.6., shall be required to

reimburse relocation expenditures paid by the Company, if: i. within 18 months after completion of his relocation, he moves outside

a radius of 100 nautical miles from his domicile (or base, in the case of an FDA); or

ii. within 18 months after completion of his relocation, he leaves the Company, provided, however, that: (a) a pilot who leaves the Company due to retirement or resignation

incident to retirement shall not have any reimbursement obligation unless he retired or resigned within 12 months after having completed his relocation; and

(b) there shall be no reimbursement obligation by a pilot’’s estate due to his death.

b. The amount of reimbursement shall be prorated as described in Section 6.B.9. (Reimbursement Schedule). Expenditures incurred pursuant to Section 6.C.8. (Marketing Assistance), shall not be reimbursed. Reimbursement of expenses incurred pursuant to Section 6.C.12., shall be limited to the cost of airline tickets in excess of 2 round trips for the pilot and 2 round trips for the pilot's spouse.

8. Failure To Complete Relocation If a pilot fails to complete his relocation within 18 months following his activation or the Company’s first expenditure on the pilot’s relocation (at which time the pilot shall be notified of such expenditure by appropriate

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Company officials), whichever is earlier, he shall reimburse the Company 100% of relocation expenditures paid by the Company, other than expenditures for benefits received pursuant to Section 6.C.8. (Marketing Assistance). Reimbursement of expenses incurred pursuant to Section 6.C.12. (below), shall be limited to the cost of airline tickets in excess of 2 round trips for the pilot and 2 round trips for the pilot's spouse.

9. Reimbursement Schedule A pilot who is required to reimburse the Company for relocation expenses as provided in Section 6.B.6. and B.7., shall reimburse the Company on a prorated basis in accordance with the following schedule:

Time When Obligation to Reimburse Arises

Percentage of Relocation Benefits Reimbursable

before completion of the 12th month of the applicable time frame

100%

during the 13th month of the applicable time frame

33%


28%


22%


17%


11%


6%

10. Additional Benefits Withheld While Reimbursement Pending Relocation benefits to which a pilot is entitled may be withheld pending the pilot’’s full reimbursement of amounts that he is obligated to reimburse in accordance with Section 6.B.4., B.6., B.7. or B.8. (above), with respect to a prior relocation. Application of this paragraph shall not extend the period during which a pilot must complete his relocation, as provided in Section 6.B.8. (above).

11. Relocation to Property Already Owned by Pilot

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If the residence to which the pilot is moving is already the property of the pilot, he shall not be entitled to a relocation allowance or the benefits provided in Section 6.C.12. (air transportation for housing searches). This paragraph shall not prevent a pilot, who is otherwise eligible for a relocation allowance as part of a return move from an FDA, from receiving such allowance.

12. First Crew Position Package, 36 Month Limitation A pilot shall reimburse the Company for 100% of the relocation costs paid by the Company pursuant to Section 6.D.4. (below) if the pilot subsequently is awarded a new crew position (in a different geographic location) for which he is awarded a training slot or base transfer date that is within the period of 36 months following the completion of his relocation to his first base.

C. Relocation Package #1 Relocation package #1 shall include the following: 1. Household Goods

a. Transportation of household goods from former residence to new permanent residence (The Company shall transport (using a qualified commercial carrier to be selected by the Company) the household goods of the pilot and his immediate family to his new permanent residence. The Company shall make best efforts to ensure that the household goods are delivered to the pilot’s new permanent residence within 30 days following the receipt of the pilot’shousehold goods for shipment. If the household goods have not been delivered within 45 days following the receipt of the pilot’shousehold goods for shipment, the pilot shall be entitled to reimbursement for reasonable expenses occasioned by the delayed shipment, (e.g., rental charges for basic household goods). The pilot shall not be entitled to reimbursement for reasonable expenses occasioned by the delayed shipment to the extent that the pilot’s actions caused the delay of the shipment. A pilot shall coordinate with Human Resources, AOD, to arrange for reimbursement under this paragraph. The move shall be limited to 16,500 maximum allowable pounds forCompany shall pay for the shipment of household goods, (inclusive of packaging materials, but not including any automobiles, and payment due over the maximum pounds) up to 16,500 lbs. i. Payment for any excess weight over the applicable weight limits

contained in Section 6 shall be the sole responsibility of the pilot and shall be paid at the time of the move.

ii. For all shipments of household goods by air covered by Section 6, the pilot shall be responsible for the cost of shipping any excess dimensional weight if the dimensional weight exceeds both the actual

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weight and the maximum weight allowance (e.g. 16,500 for package 1). The dimensional weight for shipments by air transportation is calculated by multiplying the actual volume of the shipment (in cu. ft.) by 4.0 lbs./cu. ft.

b. Although not all inclusive, the following cannot be handled by the carrier: transportation of pets, boats (or other water vehicles), snowmobiles, all-terrain vehicles, trailers, aircraft, auxiliary buildings, excessive hobby equipmentThe Company will not pay for the shipment of any household goods prohibited by applicable governmental regulations from being shipped by commercial carrier or by applicable guidelines of the Company’s contracted commercial carrier, high value items (e.g., arcade games, juke boxes, jewelry, alcohol, guns, livestock, perishables, plants, shrubs, trees, campers, firewood, fences, flammables, hazardous materials, excessive lawn furniture, shop equipment, family heirlooms, antiques, coins, stamps, china of great value, paintings, photographs, slides;, etc.), or other unreasonable transportation and/or packaging expenses.

c. Even if offered by the Company’s contracted commercial carrier, the Company will not pay for the following services: piano tuning, dismantling and setting up swing sets;/playground equipment, draining/refilling of water beds and/or aquariums, disconnecting and reconnecting stereoaudio/visual equipment;, or storage of automobile; other unreasonable transportation expenses.(s). If the carrier offers such services, the pilot may make such arrangements with the carrier at his own expense.

2. Relocation Allowance In order to help defray the cost of relocation, an eligible relocating pilot shall be paid a relocation allowance of $10,000, or 79 credit hours (CH) multiplied by the pilot's new hourly rate of pay, whichever is greater, subject to the following: a. Twenty-five per cent (25%) of the relocation allowance shall be

forwarded to the pilot after receipt and approval of the relocation request form. The allowance shall not be issued more than 30 days prior to the pilot's activation date.

b. Another twenty-five per cent (25%) shall be forwarded to the pilot after verification by the Company’’s transportation department of the relocation of the pilot’s household goods of the pilot and his immediate family to his residence address within the 100 nautical mile radius of his new domicile.

c. The final fifty per cent (50%) payment shall be forwarded to the pilot upon verification of the pilot’’s having completed all aspects of the move,

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provided the move is made within the time limits (or authorized exceptions thereto) specified in this Section.

d. If a pilot'’s spouse is an employee of the Company and both are eligible for a Company relocation allowance, only the greater of the 2 allowances shall be paid.

3. Insurance for replacement cost of furnishings up to $250,000. 4. Maximum of 90 days of temporary storage. 5. Reimbursement of rental fee for truck/trailer and fuel when pilot moves

himself, in lieu of being moved by commercial carrier. Original receipts must be submitted to the Company within 60 days of incurring the expenses in order to be eligible for reimbursement.

6. Movement of household goods shall include transportation of 1 automobile if the move is more than 750 miles except that 2 automobiles may be moved to U.S. domiciles outside the contiguous 48 states.

7. One pickup at current residence and one delivery at new residence. 8. Marketing Assistance

The purpose of marketing assistance is to provide an estimate of the property value and to facilitate sale of the pilot's primary residence. The pilot must own the home from which he is moving and for which this assistance is provided. This benefit must be used before initiation of the third-party home purchase plan. Marketing assistance includes the following: a. Counseling on home sale issues with a marketing assistance expert. b. Assignment of a sales associate for the pilot. c. Inspection of the property by the sales associate. d. Completion of a detailed marketing analysis by the sales associate. e. Review of the analysis with the pilot to determine a list price.

9. Reimbursement of Costs Associated with Sale of Current Residence. Sale of residence must occur within 18 months of the pilot's activation. The residence sold must be the permanent residence of the pilot and his immediate family. A pilot must provide to the relocation department a signed copy of the settlement statement within 18 months of his activation date. The property must be a single family dwelling or individually owned condominium or cooperative. The sale -of -residence benefits are limited to the following:

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a. Realtor's commission not to exceed 6 percent of the sale price of the residence, unless a higher percentage is authorized by the designated Company official, based on prevailing market conditions.

b. Title search and title insurance. c. Abstract continuation fees. d. Reasonable attorney fees excluding fees for correcting title defects, etc. e. Escrow agent settlement fee, not to include monies placed in escrow. f. Deed preparation fee. g. Notary fee. h. Legally required inspection fee and termite inspection (not treatment). i. Transfer tax, document stamps and recording fees. j. One appraisal fee if legally required. k. Loan transfer fees. l. Maximum of $2,500 in discount points if required (Veteran loan).

10. Reimbursement of Costs Associated with the Purchase of New Permanent Residence. The purchase must be made within 18 months of the pilot's activation date. The residence purchased must be the permanent residence of the pilot and his immediate family and must be a single family dwelling or individually owned condominium or cooperative. The pilot shall furnish the relocation department with a signed copy of the settlement statement within 18 months following his activation date. Reimbursable costs do not include property taxes, interest, hazard insurance or mortgage insurance. This provision does not apply to mobile homes or boats. The purchase of residence benefit is limited to the following: a. Reimbursement of reasonable attorney fees related to the sale and

closing of a new residence, but not to include payment of attorney fees for alleged breaches of a contract to purchase same.

b. Reimbursement of 1 appraisal fee. c. Reimbursement of credit report fee. d. Reimbursement of title insurance (this does not include optional

coverage). e. Reimbursement of loan application/origination/assumption fee, up to 1%

of loan amount. f. Reimbursement of loan commitment fee.

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g. Reimbursement of notary fee. h. Reimbursement of document preparation fee. i. Reimbursement of discount points with a $3,000 maximum. j. Reimbursement of tax service fee. k. Reimbursement of amortization schedule. l. Reimbursement of VA funding fee. m. Reimbursement of federal and local transfer fees, stamps and recording

fees. n. Reimbursement of applicable survey fees. o. Reimbursement of lender's inspection fee. p. Reimbursement of reasonable inspection fees including fees for the

detection of radon. 11. Third-Party Home Purchase Plan.

a. This benefit is provided to assist a pilot in the sale of his current residence. A pilot is required to use the marketing assistance program before this benefit is utilized. A pilot must request the third-party purchase plan within 4 months of his activation date. The property must be a single family dwelling or a condominium, located in the United States, which the pilot owns and which is his permanent residence, and which is not a mobile home or boat. The property must not contain unacceptable levels of radon gas (EPA guidelines used). The Company shall reasonably determine the eligibility of the property to be purchased for purposes of the application of this paragraph; and that determination shall not be unreasonable.

b. This plan shall provide two independent, professional appraisals to determine the current market value of the property, which shall become the purchase price of the home. Current market value shall be determined by averaging the 2 appraisals. If, however, the 2 appraisals differ by more than 5% of the lower appraisal, the third party relocation company shall obtain a third appraisal and market value shall then be determined by averaging the 2 closest appraisals. The appraisers shall be selected by the pilot from a list of 5 provided by the Company. Fewer appraisers may be listed in the event that less than 5 certified appraisers are available in a particular real estate market. The Company shall notify the pilot of the purchase amount, and the pilot shall have 45 days from notification to accept the purchase price. If the pilot accepts that price, the third-party company shall purchase the residence at the values established herein and handle all paperwork related to the closing. The

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pilot and his immediate family must be prepared to vacate their residence within 60 days after accepting the offer.

c. The Company shall pay the pilot 2% of the lower of the contract sales price or the appraised value if: i. the pilot secures a buyer; and ii. the third party company closes the transaction; and iii. the Company’s overall costs do not exceed 12% of the lesser of the

contract sales price or the appraised value (not including the 2% bonus paid to the pilot).

c. d. Other Limitations i. A pilot may not sign a real estate listing agreement without first

advising the relocation department. ii. Synthetic stucco homes are ineligible for third party home purchase. iii. Except when specifically waived by the Company, the Company will

not pay more than 1.25 million dollars for a home under the third party home purchase program.

iv. Homes in which a part is used for commercial (non-residential) purposes.

v. Historical home sites. vi. Cooperative homes. vii. Homes in such poor condition that appraisers, realtors, and other

service providers refuse the assignment. viii. Residences that are not complete. ix. Residences that contain “Imported Corrosive Drywall” building

materials. d. Additional limitations for any home purchased by a pilot on or after

[DOS]: i. Farms (i.e., stock, dairy, poultry, and fruit farms, plantations,

ranches, nurseries, ranges, greenhouses or other similar structures used primarily for the raising of agricultural or horticultural commodities, and orchards and woodlands).

ii. Homes with excessive acreage (i.e., homes situated on tracts of land with acreage that is non-conforming with surrounding and competing real estate).

iii. Homes subject to a Private Road Maintenance Agreement and/or with private road maintenance costs in excess of $5,000 per year.

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This does not include periodic assessments charged by a home owners’ association for private street maintenance expenses (e.g., assessments charged in a gated community for street repaving every 10 years or annual snow removal expenses, etc.). Note: The pilot may be required to provide adequate proof of the purchase date of his home (e.g., HUD-1 or mortgage agreement).

12. Air Transportation for Housing Searches and Relocation to DomicileBase a. Air transportation for a pilot and his spouse shall be provided to the

pilot’s new domicilebase for housing searches and relocation to such domicile. Travel request(s) shall be processed through the Relocation Department. A pilot eligible for this benefit shall use the Company designated travel group or department or Company jumpseats. If a pilot orbase. i. The Company shall establish a relocation air travel expense bank for

each pilot entitled to relocation air travel authorized by Section 6.C.12.a. The value of the pilot’s relocation air travel expense bank shall be equal to the reference fare quote obtained by the Company’s travel vendor pursuant to Section 6.C.12.a.iii (below).

ii. A pilot shall submit his request for relocation air travel to the Relocation Department at least 21 days prior to the requested travel date.

Note: The Company currently requires, and may continue to require, the pilot to submit a relocation air travel request form to the Relocation Department in order to access this benefit.

iii. Within 3 days of the Relocation Department’s receipt of the pilot’s request for air travel authorized by Section 6.C.12.a., the Company’s travel vendor shall obtain a fare quote (“reference fare quote”) for the total cost of economy class air travel for the pilot’s entire traveling party between the pilot’s currently assigned base and the pilot’s new base. The Company’s travel vendor shall transmit the reference fare quote electronically to the Company’s Relocation and Crew Travel Audit Departments and to the pilot.

iv. Within 3 days of the pilot’s request for air travel authorized by Section 6.C.12.a., the Company’s travel vendor shall also obtain a fare quote (“requested fare quote”) for the total cost of air travel for the pilot’s entire traveling party on the requested itinerary. The Company’s travel vendor shall transmit the requested fare quote electronically to the pilot, at which time the pilot may purchase tickets for his requested itinerary (as quoted) or make alternative arrangements with the Company’s travel vendor.

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v. If the pilot elects to travel on the “reference” itinerary, the pilot must purchase tickets from the Company’s travel vendor within 3 days of the pilot’s receipt of the reference fare quote.

vi. Any air travel expenses in excess of the balance of the pilot’s relocation air travel expense bank shall be remitted to the Company by payroll deduction, as provided in Section 3.E.1.a.vi., from the pay check on the 15th of the month following the pilot’s purchase of air travel tickets authorized by Section 6.C.12.a.

vii. If a pilot or the pilot’s jumpseat eligible spouse chooses to use Company jumpseats, the (in lieu of or in combination with relocation air travel tickets purchased through the Company’s travel vendor), the pilot’s jumpseat booking priority shall be business travel. or an equivalent booking status.

b. A pilot shall be eligible for 7 round trips/14 one-way trips, including businesstravel on Company jumpseats, at the pilot’’s election (or any combination thereof) for housing searches/relocation to domicilebase, which he may distribute among his immediate family (pilot, spouse and eligible dependents) in any manner that will facilitate the housing search/relocation to the new domicilebase.

c. In the event that the pilot does not relocate to his new base, the pilot shall reimburse the Company for any air transportation costs in accordance with Section 6.B.8.

13. Lease Cancellation Reimbursement A pilot who incurs a lease cancellation penalty on his residence shall be reimbursed for such penalty, up to a maximum of 6 months’ rent. The pilot shall provide the relocation department with a copy of the lease at the time he submits a request for reimbursement. The leased or rented residence must be the pilot's permanent residence. Cleaning fees and loss of deposit due to damage are not reimbursable.

14. Income tax gross up benefits as provided in the Personnel Policy and Procedure Manual (3-86) dated October 2003.

D. Relocation Packages #2 and #2.a. 1. Relocation package #2 includes all benefits associated with relocation

package #1 with the exception of Section 6.C.9., C.10., C.11., C.12. and C.13. (above).

2. Relocation package #2.a. consists only of the movement of the household goods of the pilot and his immediate family, as described and limited in Section 6.C.1. A pilot who fails to complete a relocation and is required to reimburse the Company package #2.a., shall do so in accordance with Section 6.B.9. (Reimbursement Schedule). A pilot who receives a

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relocation package #2.a. is not required to change his permanent residence or relocate his immediate family. A pilot who is eligible for a relocation package #1 or #2 may elect a relocation package #2.a. in lieu thereof.

3. An eligible pilot who chooses not to move his household goods under a relocation package #2.a. but who nevertheless establishes a secondary home or apartment (a “crash pad”) within 30 miles of his domicile/base, may apply for and shall receive an allowance of 16 CH, except that an FDA crash pad move shall receive an allowance of 32 CH multiplied by the pilot's hourly rate of pay. In cases of special circumstances, a pilot may request that Human Resources, AOD approve a larger acceptable radius for his crash pad. A pilot may apply for and shall receive this allowance following his activation into his new crew position and establishment of the crash pad. If a pilot fails to provide documentation that he has occupied the crash pad for a continuous period of 12 months, the pilot shall reimburse the Company 100% of the allowance paid by the Company.

4. First Crew Position a. Upon activation in his first crew position, a newly hired pilot (other than

a pilot awarded an FDA crew position or awarded/assigned an ANC crew position as his first crew position) shall be eligible for Relocation Package #2 (described above in Section 6.D.1.), excluding the relocation allowance described in Section 6.C.2.

b. For moves to bases within the contiguous 48 states other than Memphis (e.g. IND, LAX), the cost of moving his household goods to his first base shall be limited to the lesser of the cost of moving those goods from his current residence or from Memphis. Any cost of moving his household goods above this amount shall be the responsibility of the pilot and shall be paid by the pilot to the commercial carrier at the time of the move.

c. A newly hired pilot may elect to receive relocation benefits prior to being activated into his first crew position in accordance with Section 6.A.8. (Eligibility for Benefits Prior to Activation).

E. Foreign Duty Assignment (FDA) A pilot assignedgoing to or leavingreturning from an FDA shall be eligible for relocation benefits as follows:, subject to the provisions in Paragraph C.1. in the Letter of Agreement concerning Foreign Duty Assignments in the EMEA and HKG (FDA LOA) for pilots based in the HKG or EMEA FDAs. 1. Award/Assignment to an FDA

a. A pilot assigned to an FDA as a result of an excess or bid to relieve an excesswho has an assignment, as that term is defined in Section 24, to a new FDA crew position or a stand in bid award to a new FDA crew position shall receive a relocation package in accordance with Section

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6.A.1., A.2. or A.3. (above), as applicable. However, if he receives a relocation package #1, he shall not be entitled to the provisions of Section 6.C.10. (costs pertaining to purchase of new residence) or C.12. (air travel for housing searches).

b. A pilot assigned toawarded an FDA locationcrew position shall be eligible for a relocation package #2 to that location except: i. the cost of transporting that pilot's household goods shall be limited

to the lesser of: (a) the actual cost of transporting those goods from the pilot's current

permanent residence, or (b) the cost of transporting those goods from the pilot's current

domicile (or base in the case of an FDA); and ii. Any cost for the transportation of the household goods of the pilot

and his immediate family that is the responsibility of the pilot pursuant to Section 6.E.1.b.i., shall be paid by the pilot to the commercial carrier at the time those goods are transported, and shall not be billed to the Company.

iii. This paragraph shall not apply to a pilot whose FDA assignment is his first crew position, or a pilot described in Section 6.E.1.a.(above).

c. A pilot awarded/assigned to an FDA as his first crew position shall be eligible for the relocation package described in Section 6.E.1.b. (above), excluding the relocation allowance described in Section 6.C.2. The pilot, however, shall be eligible for an allowance of $2,000. That allowance shall be payable upon the completion of the pilot’’s probationary period, provided he has not voluntarily bid out of the FDA prior to completion of his probationary period. The cost of moving histhe household goods of the pilot and his immediate family shall be limited to the lesser of the cost of moving those goods from his current residence or from MEM.

d. A pilot may receive relocation benefits prior to being activated into his new FDA crew position in accordance with Section 6.A.8. (Eligibility for Benefits Prior to Activation).

e. In addition to the relocation allowance provided in Section 6.C.2., a pilot, other than a pilot awarded/assigned to an FDA location as his first crew position, may be eligible for an FDA bonus as follows: i. The amount of the bonus, if any, shall be determined by the

Company after consultation with the Association. ii. In no case shall an FDA bonus exceed $20,000 for each Captain or

$15,000 for each First and Second Officer.

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iii. The Company may condition a pilot's eligibility to receive or retain the bonus on his activation at the FDA location and/or his service at the FDA location for a minimum period of time. In no case, however, shall the service requirement at any FDA exceed 4 years. The minimum period for the FDA in Subic Bay shall remain 3 years.

iv. If the Company and the Association disagree as to the amount of an FDA bonus, if any, the disagreement may be submitted for resolution to the System Board. The System Board shall lack jurisdiction to establish FDA bonuses in excess of the maximums established in Section 6.E.1.e.ii. (above).

v. A pilot shall not be eligible for an additional FDA bonus as a result of a change of crew status within the same FDA location.

f. A pilot shall be eligible for a total of two round trip/four one-way airline tickets for the purpose of housing searches.economy class tickets, which he may distribute among his immediate family in any manner that will facilitate the housing search/relocation to the FDA. The Company shall be responsible for the cost of economy class air travel (with the itinerary and carrier selected by the Company’s designated travel group or department based on input from the pilot) from the pilot’s current residence to the FDA. If upgradeable and/or refundable economy class tickets are available on a routing between the pilot’s origin and destination and the cost of those tickets does not exceed the cost of non-refundable economy class tickets on that same routing by more than 25%, the Company shall purchase upgradeable and/or refundable tickets. Travel request(s) shall be processed through the Relocation Department.

2. Leaving An FDA Assignment a. Reimbursement Obligations

i. If a pilot receives a relocation package in accordance with Section 6.E.1. (Award/Assignment to an FDA), he shall be subject to the reimbursement provisions of Section 6.B.6. through B.10.

ii. If a pilot receives a relocation package in accordance with Section 6.E.1., and subsequently bids to relieve an excess at the FDA locationreceives a stand in bid award to a crew position in a different FDA or a non-FDA crew position, the following shall apply: (a) he shall be subject to the provisions of Section 6.B.6., as if he

had received a relocation package for a new domicile. (b) Section 6.B.6. shall apply notwithstanding his entitlement to a

relocation package for his new crew position.

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(c) If the number of pilots to be excessed from the FDAwho are imminently subject to assignment pursuant to Section 24.C.2.c.i.(b)(2) exceeds the number of pilots who have been activated in the FDA position for 18 months or more, then this paragraph may be waived in seniority order for a number of pilots bidding to relieve the excessreceiving a stand in bid award to a crew position in a different FDA or a non-FDA crew position not to exceed the difference between the number of pilots to be excessed from the FDAwho are imminently subject to assignment pursuant to Section 24.C.2.c.i.(b)(2) and the number of pilots who have been activated in the FDA position for 18 months or more. Example:

20 pilots in a crew position to be excessedwho are imminently subject to assignment pursuant to Section 24.C.2.c.i.(b)(2).

15 pilots in that crew position have been activated at FDA for 18 months or more.

8 pilots bid to relieve the excessare awarded a new crew position pursuant to a stand in bid award, 2 of whom have been activated at the FDA for 18 months or more.

The 2 pilots who had been activated for 18 months or more have no obligation. Of the remaining 6 pilots, the reimbursement obligation is waived for the 5 most senior pilots. The least senior of those 6 pilots has an obligation under this paragraph.

b. Paid Relocation When Leaving FDA i. A pilot who remains at the FDA location in the same crew position

for a minimum of 3 years shall be eligible to receive a relocation package #2 when leaving the FDA location, provided he relocates, at his option, to:

(a) his last domestic pre-FDA residence, or a different location involving no greater cost to the Company; or

(b) his new base. However, if he upgrades to a new crew status at the same FDA location, his 3 year commitment shall be increased by the period of time the pilot is unavailable for line flying due to his training for the new crew status. If a pilot chooses a location which exceeds the cost to the Company described above, his relocation benefit shall apply, provided he pays the difference in cost.

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ii. A pilot who is furloughed from an FDA, shall be eligible for relocation package #2, excluding the relocation allowance described in Section 6.C.2., or 6.E.1.c., provided he relocates to his last pre-FDA residence or to MEM, at his option. If a furloughed pilot is recalled to an FDA base, he shall be eligible for the relocation package provided in Section 6.E.1.c., excluding the FDA bonus, if any, provided in Section 6.E.1.e. However, he shall be eligible for an allowance of $2,000. If the pilot recalled from furlough is still a probationary pilot, the original payment of that allowance shall continue to be deferred until completion of his probationary period and no allowance shall be paid for the relocation back to an FDA location.

iii. Notwithstanding the provisions of Section 6.A.2. and A.3., a pilot who is excessedassigned from an FDA, or who bids to relieve an excessis awarded a new crew position pursuant to a stand in bid award, shall be eligible for a relocation package #2, subject to the provisions of Section 6.E.2.a.ii. (above).

iv. A pilot who retires, resigns incident to retirement, or who is terminated (other than for an act involving drugs, violence, or moral turpitude, that would be felonious under either a U.S. statute or the State of Tennessee) shall be eligible for the movement of his household goods, including one automobile, and one, one-way ticket for himself, and (if applicable), his spouse and eligible dependentsimmediate family, back to his last domestic pre-FDA residence or his previous domestic base, at his option. If a pilot fails to meet the eligibility standards due to his termination, and the Company does not otherwise grant such, the pilot’s spouse and eligible dependents’s immediate family shall be provided the movement of their household goods, including one automobile, and each shall be provided the one-way ticket. The same restrictions that apply to other FDA move backs (e.g., time limitations and documentation requirements) apply to moves under this paragraph with time limits being measured from the date of the pilot’’s termination.

3. Reimbursement Obligations a. A pilot shall reimburse the Company for the relocation expenses

incurred for his prior relocation package if the pilot: i. he received a relocation package for his current crew position (i.e.,

his prior relocation package); and ii. he receives an FDA award for which the projected training or

projected activation date, whichever is earlier, falls within the period

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ofhe begins training, or to which he base transfers, within 18 months following his activation into his current crew position.

b. A pilot covered by Section 6.E.3. (this paragraph), shall reimburse the Company according to the proration schedule set forth in Section 6.B.9. He shall also be subject to the provisions of Section 6.B.10. (withholding of relocation benefits).

4. Additional Weight Limitations Notwithstanding the weight limit established in Section 6.C.1.a. (above), transportation of household goods shall be limited as follows, with any excess weight determined in accordance with the provisions in Section 6.C.1.a. (above): a. A single pilot shall be limited to 7,500eligible for 8,000 maximum

allowable pounds for his household goods plus one automobile. b. A married pilot shall be limited to 12,500 maximum allowable pounds for

household goods plus one automobile. b. c. AThe pilot shall be entitled to an additional 5,000 pounds for the first

dependent that relocates to the FDA with the pilot and 1,500 pounds of household goods per non-spousalfor each additional dependent that relocates to the FDA with the pilot.

c. d. The Company may limit the weight to be shipped by air to 2,5003,000 pounds.

d. e. A pilot entitled to a paid relocation upon return from FDA as provided in Section 6.E.2.b. (above), shall be entitled to an increase in the weight limit originally shipped of 10% per year of international residence not to exceed a total increase of 40%. (subject to the chargeable weight limitation in Section 6.C.1.a.)

e. f. Notwithstanding the provisions of Section 6.E.4.a. through E.4.e. (above), the weight limitation for a pilot leaving an FDA shall not be less than the amount originally shipped to the FDA plus the increase provided in Section 6.E.4.e. (above).

f. g. The Company shall reimburse a pilot (if goods were stored by the pilot without the Company’’s assistance) or pay the cost for the storage (if the goods were handled by the Company or its vendor) of a reasonable amount of household goods for the duration of the FDA assignment, plus 90 days. The payment of storage costs shall end if the pilot no longer holds a vacancy at the FDA or if the pilot relocates outside the acceptable radius for that base (even if he still holds a vacancy at the FDA).

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g. h. The Company shall allow up to three additional space-available personal shipments over the course of the FDA assignment from the storage facility to the residence at the FDA; provided, however, that one of the additional shipments (not to exceed 1,000 pounds) may be from a location other than the storage facility. Goods shipped from the storage facility must be goods that have been stored at that facility at the Company’’s cost, whether directly, or by reimbursement to the pilot. Additional shipments may not exceed a total weight of 3,000 pounds, cumulative. Eligibility for the additional shipments commences on the first anniversary of the completion of the relocation to the FDA at 1,000 pounds with each additional 1,000 pounds accruing on the second and third anniversaries, respectively. In addition, the Company shall also allow a personal shipment of up to 100 pounds per month over the course of the FDA assignment, with the ability of the pilot to rollover any unused monthly shipment(s) in previous months to subsequent months up to a total of 1,2002,000 pounds; provided, however, that the shipping limit shall be reset to zero on January 1 of each year. A pilot shall have until January 31 to use the accrued, but unused, balance from the previous year.

h. i. A pilot shall be responsible for all customs charges associated with his move to and from the FDA.

i. j. The Company shall reimburse a pilot up to a cumulative total of $1,000 for the transportation of pets.

F. Relocation Days Off 1. Any pilot eligible for and exercising a Company paid relocation pursuant to

Section 6 shall be entitled to a certain number of days off in order to assist in that relocation. The number of days off is based on the following formula: a. For domestic moves (including Anchorage, Hawaii, and Puerto Rico):

i. time off is equal to the lesser of the distance between the old and new domicile or actual residence and new domicile, divided by 400 if driving, or 800 if flying; and

ii. the result is rounded to the next highest whole number, if applicable. b. For FDA moves pursuant to Section 6.E., either to or from the FDA, the

pilot shall receive 7 days off. 2. The total number of days off provided by the formula may be split into 2

periods. 3. The pilot shall be compensated an R-day value for each trip day or R-day

that is dropped (without pay) as a relocation day under Section 6.F. Relocation days that occur on days off shall not be compensated.

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4. Credit Hours lost from a pilot’’s BLG/RLG as a result of Section 6.F. shall be eligible for make-upMake Up.

5. A pilot eligible for a relocation package shall coordinate in advance with his ACPFleet Captain(s) the days off for relocation.

6. Days off for relocation also apply to pilots taking either of the crash pad move options as provided in Section 6.D.2. or D.3.

7. A pilot changing to a geographically different base, who is not entitled to a relocation package, shall request and coordinate with his ACPFleet Captain any schedule that involves dropping activities without pay to facilitate such change of base.

G. General 1. A relocation request form shall be submitted to Human Resources, AOD, to

initiate benefit eligibility. 2. A pilot shall advise Human Resources, AOD, in writing of the completion of

his relocation. His relocation is complete when he has established a new permanent residence for himself and, if applicable, his spouse, and/or his dependent children, within the acceptable radius of his base within 18 months following his activation date or the Company’s first expenditures on the pilot’s relocation, whichever is earlier. The Company shall verify completion of a pilot's relocation based on objective factors.

3. In extenuatingBased on a review of all the circumstances, Human Resources, AOD, may deemdetermine that a pilot has completed his relocation even though some of the factors ordinarily establishing a completed relocation are absent. If the pilot subsequently fails to complete his relocation, as provided in Section 6.G.2., the pilot shall be deemed never to have relocated and shall be obligated to reimburse the Company in accordance with Section 6.B.8.

4. The Company may request documentation to establish that a pilot has completed ahis relocation, as provided in Section 6.G.2. The documentation may include, but is not limited to, settlement statements relating to the purchase and/or sale of residences,; verification of the movement of household goods and automobile(s) to the new location,; verification of the permanent relocation of a pilot’s spouse and/orthe pilot; verification of the permanent relocation of the pilot’s spouse; verification of the permanent relocation of the pilot’s dependent children under the age of 18 years, if applicable,; establishment of a pilot’’s residence at the new location for purposes of applicable property or state income taxes, driver’’s license, automobile registration and voter’’s registration. A pilot shall submit documentation requested by the Company in accordance with this paragraph.

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5. If a pilot becomes obligated to reimburse the Company for expenditures related to relocation, he may request of Human Resources, AOD, a repayment schedule based on a mutually agreeable per pay check amount. If the parties are unable to agree on an amount to be deducted per pay check, the Company is authorized to initiate a payroll deduction as provided in Section 3.E.1.a.vi. Unless mutually waived by both the pilot and Human Resources, AOD, the maximum period allowed for repayment under this provision shall not exceed nine (9) months.

6. Notwithstanding the provisions of Section 6.G.5. (above), if a pilot’’s obligation to reimburse the Company for expenditures related to relocation becomes the subject of a grievance filed pursuant to Section 20, the period contained in Section 6.G.5., shall not commence until final resolution of that grievance pursuant to Sections 20 and 21.

7. A pilot’’s eligibility for staging jumpseat travel status as a pilot commuting to and from work at his new base expires 30 days following his receipt of the full relocation allowance provided in Section 6.C.2. [Note: need to harmonize with Section 26]

8. The Company may extend any of the time limits contained in Section 6 on a non-precedential basis. A pilot’’s request for such extension shall be submitted in writing to Human Resources, AOD, and shall contain a complete description of the reasons for which the extension is requested. The request shall be made prior to the expiration of the applicable time limit and shall not be unreasonably denied.

9. Notwithstanding other provisions in this Section, if a pilot is forced to leave his current geographic domicile (or base in the case of an FDA), due to legal restrictions, furlough, or involuntary excessassignment (as defined by Section 24) such pilot shall not incur any reimbursement obligations pursuant to this Section.

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Vacation7

SECTION 7 VACATION A. General

1. A pilot shall receive 6 CH for each day of accrued vacation. 2. A vacation day shall be a 24 hour period corresponding to the local base

day. A vacation period is a series of consecutive days posted and awarded as provided in Section 7.C. (below), and rescheduled, if applicable, as provided in Section 7.A.9. or E. (below).

3. A pilot may not be assigned a trip in conflict with his vacation period. 4. A pilot shall not be permitted to trip trade into, out of, or within his vacation

period. 5. A pilot must have a vacation credit hour bank balance greater than zero to

take a vacation period. 6. On the implementation date of this Agreement, vacation days previously

scheduled or accrued shall be retained. 7. When a pilot's employment with the Company terminates (including

retirement), he shall be compensated for all vacation time accrued and not taken. The amount of this vacation compensation shall be based on the pilot's last rate of pay and computed at the rate of 6 CH per day. If a pilot has a negative vacation bank balance, his final compensation settlement shall be reduced by his negative vacation bank credit hour balance at his current pay rate.

8. In the event of a pilot's death, any earned and unused vacation credit shall be paid to his beneficiary or to his estate. If a pilot has a negative vacation bank balance, his estate's final compensation settlement shall be adjusted accordingly.

9. In extenuating circumstances, a pilot may request that his flight manager approve an immediate, unscheduled vacation.

10. For purposes of this Section, a "year" shall be a calendar year. 11. As provided in Section 4.I.10, Section 14.A.7., Section 25.L.12.d.

(Emergency Drop), and Section 25.Z.3. (Bereavement Absence), a pilot may use available hours in his vacation bank to cover annual military training, to preclude or delay going on disability, for personal emergencies, and to add additional days for bereavement absence.

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Vacation 7

B. Vacation Accrual 1. A pilot shall accrue vacation to be taken in the following calendar year based

on his longevity as a pilot as of December 31 of the current calendar year. a. A pilot with less than 1 year longevity shall accrue 1.5 days per month

for the first 10 months in an active pay status during the year. b. A pilot with longevity of at least 1 year, but less than 4 years shall be

eligible for 15 days vacation. c. A pilot with longevity of at least 4 years, but less than 5 years, shall be

eligible for 15 days vacation plus a pro rata share based on his longevity and the pro rata formula in Section 7.B.5. (below).

d. A pilot with longevity of at least 5 years, but less than 9 years, shall be eligible for 22 days vacation.

e. A pilot with longevity of at least 9 years, but less than 10 years, shall be eligible for 22 days vacation plus a pro rata share based on his longevity and the pro rata formula in Section 7.B.5. (below).

f. A pilot with longevity of at least 10 years, but less than 19 years, shall be eligible for 29 days vacation.

g. A pilot with longevity of at least 19 years but less than 20 years shall be eligible for 29 days vacation plus a pro rata share based on his longevity and the pro rata formula in Section 7.B.5. (below).

h. A pilot with longevity of 20 years or more shall be eligible for 36 days vacation.

2. If a pilot does not complete 10 months in an active pay status during a calendar year due to retirement, furlough, disability, or unpaid leave(s) of absence (Section 13), other than leave due to on-the-job injury, he shall not be entitled to the full accrual as per Section 7.B.1. (above). That pilot's vacation accrual shall be 1/10th of the full accrual for each calendar month the pilot is in an active pay status. For purposes of this paragraph, a month shall be counted if the pilot is not retired, or on furlough, disability or unpaid leave of absence for more than 15 days during that month. Example-1: A pilot incurs a disabling event on December 31, 1998. He is on sick leave from January 1, 1999 until March 1, at which time his sick bank is exhausted. He is then on disability and returns to active service on June 15. The pilot is in active pay status for 9 months (Jan., Feb., and June through December). His vacation accrual (i.e., to be used in the year 2000), is reduced by 1/10th.

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Example-2: A pilot actively flew the line until his retirement on July 29, 1999. Since the pilot completed 7 months in an active pay status in 1999, his vacation accrual for the year 2000 is 70% of his normal full accrual. The pilot will be paid for this vacation after retirement, as part of his 1999 wages.

3. The month in which a pilot is hired shall count for vacation accrual purposes only if his hire date is on or before the 15th day of that month.

4. Fractions of an accrued vacation day shall be rounded to the nearest whole day.

5. Vacation days earned on a pro rata basis (as described in Section 7.B.1.c., B.1.e., and B.1.g.) shall be computed at a rate of 0.7 days per month for each month of service, up to 10 months per calendar year, subject to the provisions of Section 7.B.4. (above).

Example: Hire Date: June 18, 1994 Vacation calendar year 1999 = 15 regular days plus 4 extra days (6 mos. X 0.7 = 4.2 days rounded to 4 days)

C. Vacation Bidding Procedures 1. Vacation shall not be cumulative and must be taken within the calendar year

following the year in which it is earned except for an awarded vacation period which carries from one calendar year into the next, and except as otherwise provided in this Section. Vacation bids shall be awarded on the basis of seniority within each crew position.

2. A pilot's crew position for a vacation bid shall be the crew position he holds at the close of such bid. However, a pilot who has been awarded, but has not yet been activated in, a new crew position as a result of a base closure shall bid vacation in his new crew position.

3. Vacation shall be bid and awarded as follows: a. Available 7 day vacation slots for the next year shall be distributed

concurrent with the bid period package published closest to August 1. The first vacation bid shall open on the date indicated on each vacation bid pack and close at noon, 14 days later. The first vacation bid awards shall be published 7 days after the first vacation bids have closed.

b. The second vacation bid shall be distributed concurrent with the first bid period package published after the first vacation bid closes. The second vacation bid shall open on the date indicated on each vacation bid pack and close at noon, 14 days later. The second vacation bid awards shall be published 7 days after the second vacation bids have closed.

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c. The third vacation bid shall be distributed in the first bid period package published after the second vacation bid closes. The third vacation bid shall open on the date indicated on each vacation bid pack and close at noon, 14 days later. The third vacation bid awards shall be published 7 days after the third vacation bids have closed.

d. The fourth vacation bid shall be distributed in the first bid period package published after the third vacation bid closes. The fourth vacation bid shall open on the date indicated on each vacation bid pack and close at noon, 14 days later. Fourth vacation bid awards shall be published 7 days after the fourth vacation bids have closed.

4. If a pilot fails to submit a bid, or submits an insufficient number of bids, he shall be assigned a vacation period(s) when the fourth vacation bid awards are published.

5. For vacation award purposes, a vacation period that extends into a subsequent vacation slot by 4 or more days shall occupy both slots.

6. A sufficient number of vacation slots shall be available for bid to cover all anticipated vacations in each crew position. Available vacation slots for a month for a crew position shall not be less than 3% of the total annual vacation time to be awarded for that crew position; provided, however, that there must be at least 1 slot available for bid in each crew position each month.

D. Splitting Vacations A pilot may split his vacation into as many as 4 separate periods provided each period contains a minimum of 7 days vacation; provided further, however, that a pilot who has accrued fewer than 7 vacation days in the previous calendar year shall take all accrued vacation days as a single period. Once awarded, a period of vacation may not be split.

E. Change, Slide and Expansion of Vacation 1. Vacation Change

a. A pilot may exchange his vacation slot(s) for an open slot(s) in his crew position or trade his slot with another pilot in the same crew position; any other change in a pilot's vacation slot requires the approval of flight management. A pilot who wishes to exchange or trade a vacation slot must accomplish the exchange/trade no later than 30 days prior to the beginning of the affected bid period.

b. Change of Crew Position i. A pilot changing crew positions shall retain his previously awarded

or assigned vacation period(s).

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ii. If a pilot is unable to take his scheduled vacation due to a conflict with initial, transition or upgrade (ITU) training, and he is then activated with more than 120 days remaining until the end of the last bid period in the calendar year, then within 30 days following activation into his new crew position, he shall select a different vacation period(s). His selection shall be made from among the following slots in the current year: (a) open slots; or (b) slots currently held by any junior pilot in the new crew position; or (c) slots retained by any junior pilot who is scheduled to activate in

that same new crew position within 120 days following the pilot's activation into his new crew position.

iii. Notwithstanding Section 7.E.1.b.ii. (above), if fewer than 3 slots are available for selection when the pilot activates, Section 7.E.1.b.iv. (below), shall apply.

iv. If a pilot is unable to take his scheduled vacation due to a conflict with ITU training, and he is activated with 120 days or less remaining until the end of the last bid period in the calendar year, he may select a different vacation period as provided in Section 7.E.1.b.ii. (above). If no selection is made within 30 days following his activation, Section 7.E.1.b.v. (below), shall apply.

v. If a pilot's vacation is not rescheduled as provided in Section 7.E.1.b.ii., or E.1.b.iv. (above), his vacation slot shall be bought back subject to the provisions of Section 7.G.6. (below), or, as an exception to the 40% buy back, the pilot may request to have the credit hours of vacation affected by the training in Section 7.E.1.b.ii (above) paid. Any vacation not bought back shall be a positive adjustment to the pilot's vacation bank for the following year. A vacation change or buy back required in connection with a crew position change shall not be considered a vacation cancellation.

vi. Selection of a junior pilot's vacation slot shall not impact the junior pilot's vacation award.

c. A pilot with vacation scheduled in a bid period in which he is in pay only bidding status as a result of sick leave may elect to take his vacation as scheduled or reschedule that vacation (as provided in Section 7.E.1.b.). For purposes of this paragraph, a pilot’s vacation credit hour bank shall be reduced by 6 CH for each day of vacation in his pay only bid period, and the remainder of his BLG/RLG shall be charged to his sick bank. An election to reschedule that vacation shall be made no later than the close of bidding for the bid period in which the vacation is scheduled.

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2. Vacation Period Slide a. A pilot may enter a vacation slide submission during the Conflict Input

Window immediately before the bid period in which a trip(s) affected by the slide (or the vacation period itself, if no trip is affected) is scheduled to begin, as provided in Section 25.E.2. (Conflict Input Window). A pilot may adjust his vacation period by sliding it up to a maximum of 5 days in either direction. However, the slide shall not reschedule any portion of that vacation into the preceding bid periods of November or December. A vacation period of more than 7 days, that begins in one bid period and ends in the following bid period, may be slid up to a maximum of 5 days in either direction. Example: A vacation in the first week of January may not be slid back into December, but a vacation in the first week of February may be slid back into January. The slide must be accomplished during the Conflict Input Window for the January bid period, (which is in late December.

b. A pilot may slide a vacation to conflict with a carryover trip as provided in Section 7.E.2.a. (above), only if he submits for the slide during the Conflict Input Window associated with the award of bid period in which the carryover trip began [e.g., the Conflict Input Window in the end of November (i.e., the Conflict Input Window for the December bid period award) is used to slide a January vacation to conflict with a December into January carryover trip].

c. If a pilot slides his vacation period to within 48 hours of the scheduled end of a trip in which the last activity is an international duty period, that trip shall be deemed in conflict with the vacation period, except for a trip described in Section 12.D.1.c.i.

d. There is no maximum limit on the number of credit hours that may be touched by a vacation slide.

3. Vacation Expansion (Regular Line Holders) a. In addition to or in lieu of a vacation slide, a pilot awarded a regular line

may expand his vacation period in either or both directions to conflict with a greater number of credit hours. However, a pilot may not expand his vacation from December into November, or from January into December. A pilot may submit for a vacation expansion during the Conflict Input Window immediately before the bid period in which a trip(s) affected by the expansion is scheduled to begin, as provided in Section 25.E.2.

b. A vacation expansion shall not cause a vacation conflict that exceeds the credit hour value of the original vacation period by more than 6 CH. All days in the expanded vacation period shall be consecutive.

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c. A pilot may not expand his vacation period to conflict with a trip(s) that begins outside the bid period of his vacation as awarded or slid. However, a pilot awarded vacation that extends into the next bid period may expand within either bid period. Example: A pilot awarded a 7 day vacation period in week 1 of August may slide his vacation back so that it overlaps both the August and July bid periods. He may then expand his vacation period to hit trips in either July or August in accordance with normal expansion rules.

d. A vacation period may not be expanded to cause a vacation conflict with a trip(s) that is scheduled to operate in whole or in part on the following days (i.e., base days): Thanksgiving Day, Christmas Eve, Christmas Day, New Years Eve or New Year's Day.

F. Vacation Bank Each pilot shall have a vacation credit hour bank established at the beginning of the bid period commencing closest to January 1, each year, based upon the vacation hours he has accrued (as provided in Section 7.B.). A pilot's vacation credit hour bank shall be calculated by multiplying the number of vacation days by 6 CH. A pilot's bank shall be adjusted for positive balances (as provided in Section 7.I.3.d., 7.E.1.b.v., or 7.G.5.c.), or negative credit hour balances from the previous year's vacation bank.

G. Vacation Bank Administration 1. Regular Line Holder

A regular line holder shall be removed from a trip(s) in conflict with his vacation period (as awarded or slid) or vacation expansion. Conflict with an international duty free buffer, as described in Section 12.D.1.d., shall constitute a conflict with the trip protected by that buffer and may not be waived. The SCH value of the removed trip(s) shall be deducted from the pilot's vacation credit hour bank. Intent: A vacation period slides as a whole.

2. Secondary/Custom Line Holder Except as otherwise specifically provided in Sections 25.E.4.b. and E.5., for secondary line holders, the following shall apply to secondary and custom line holders: a. A pilot shall receive a 48 hour duty free vacation buffer at each end of

his vacation period provided that the buffer occurs in a bid period in which the pilot is awarded a secondary line. A vacation buffer shall not extend outside the bid period(s) in which the vacation occurred. A vacation buffer shall not create a conflict with a trip that began in the previous bid period.

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b. A secondary line holder's vacation credit hour bank shall be reduced by 6 CH for each day of vacation in the bid period not in conflict with a carryover trip or R-day, excluding the vacation buffer provided in Section 7.G.2.a. (above).

c. If a secondary line holder's vacation period conflicts with a scheduled trip(s) or R-day(s), (e.g., carryover trip from the prior bid period, vacations spanning two bid periods) the pilot shall be removed from that trip(s) or R-day(s) and the following shall apply: i. A conflict with an international duty free buffer (as provided in Section

12.D.1.d.) shall constitute a conflict with the trip protected by that buffer.

ii. A pilot's vacation credit hour bank shall be reduced by the SCH of any trip(s) removed and/or the R-day credit hour value for any R-day(s) removed.

iii. A pilot may waive the vacation buffer within the Conflict Input Window to avoid a conflict.

iv. A vacation buffer that touches a trip(s) or R-day is a conflict. A vacation buffer that touches an international buffer is not a conflict.

d. The following apply when a secondary line is awarded to a pilot with a scheduled vacation in the bid period. i. A secondary line shall not be constructed with a trip(s) or R-day(s) in

conflict with the vacation period or a vacation buffer. ii. Days constituting a vacation buffer shall be constructed as

scheduled days off on that secondary line. iii. For purposes of Section 25.D.2. (secondary line construction), hours

deducted from the pilot's vacation credit hour bank for the bid period, other than carryover credit hours from the previous bid period, shall be considered as trip credit hours.

iv. For purposes of Section 7.E.1. (Vacation Change), hours deducted from the pilot's vacation credit hour bank for the bid period, other than carryover credit hours from the previous bid period, shall be considered as trip credit hours constituting a trip guarantee.

v. For purposes of minimum days off protection, vacation days shall not be considered days scheduled free from duty; vacation buffer days shall be considered days scheduled free from duty. Section 12.D.1.d. (international trip buffer), shall not apply when constructing a secondary line for a pilot with vacation in the bid period.

e. A secondary line holder may adjust his vacation period by sliding it up to a maximum of 5 days in either direction, except that the slide shall not

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reschedule any portion of that vacation into the preceding bid period. However, a vacation period that is scheduled for more than 7 days, that begins in one bid period and ends in the following bid period, may also be slid up to a maximum of 5 days in either direction. A vacation slide submission shall be entered during the Conflict Input Window for that vacation period.

f. The provisions of Section 7.G.2. shall apply to a pilot assigned a custom line (as provided in Section 25.I.1.a., and 25.I.1.e.).

3. Reserve Line Holder

a. A pilot shall receive a 48 hour duty free vacation buffer at each end of his vacation period provided that the buffer occurs in a bid period in which he is awarded a reserve line. A vacation buffer shall not extend outside the bid period(s) in which the vacation occurred. A vacation buffer shall not create a conflict with a trip that began in the previous bid period.

b. A reserve line holder's vacation credit hour bank shall be reduced by the R-day value for each day of vacation in the bid period.

c. If a reserve line holder's vacation period conflicts with a scheduled trip(s) or R-day(s), (e.g., carryover trip from the prior bid period, vacations spanning two bid periods) the pilot shall be removed from that trip(s) or R-day(s) and the following shall apply: i. A conflict with an international duty free buffer (as provided in Section

12.D.1.d.) shall constitute a conflict with the trip protected by that buffer, and may not be waived.

ii. A pilot's vacation credit hour bank shall be reduced by the SCH of any trip(s) removed and/or the R-day credit hour value for any R-day(s) removed.

iii. A pilot may waive the vacation buffer during the Conflict Input Window to avoid a conflict with that buffer.

iv. A vacation buffer that touches a trip(s) or R-day is a conflict. A vacation buffer that touches an international buffer is not a conflict.

d. A reserve line awarded to a pilot with a scheduled vacation in the bid period shall be reconstructed as follows: i. A pilot's reconstructed line shall contain the originally scheduled

blocks of R-days that did not conflict with vacation (or the vacation buffer), unless the number of R-days in those block(s) plus the number of vacation days exceeds the number of R-days in the bid period, (i.e., the pilot's vacation conflicts with fewer R-days than the

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number of vacation days). In that case, the line shall be reconstructed preserving the greatest number of originally scheduled R-day blocks as possible.

ii. A pilot may enter preferences for reconstruction of his reserve line during the Conflict Input Window (as provided in Section 25.E.).

iii. A reserve line shall not be constructed with R-days in conflict with the vacation period or a vacation buffer.

iv. Days constituting a vacation buffer shall be scheduled days off on the reconstructed reserve line.

v. For purposes of Section 25.D.3. (Reserve Line construction), vacation days are considered R-days. Section 25.D.3.c. (mini-block R-days), shall not apply when reconstructing a reserve line for a pilot with vacation in the bid period.

vi. For purposes of determining RLG (as described in Section 4.C.), vacation days are considered R-days. Credit hours deducted from the pilot's vacation credit hour bank (as described in Section 7.G.3.b.) shall be credited toward the pilot's RLG.

vii. A reserve pilot's leveling position for the remainder of the bid period shall include an R-day value for each day of vacation beginning with his first R-day following his vacation.

viii. For purposes of minimum days off protection, vacation buffer days shall be considered days scheduled free from duty.

ix. If a pilot's reserve line is voluntarily converted, as provided in Section 25.D.4. (Conversion Lines), his converted line shall be constructed as provided in Section 7.G.2. (above). A pilot's reserve line may not be involuntarily converted (as provided in Section 25.D.4.e.) in a bid period in which he has a scheduled vacation.

e. Reserve Vacation Extension A pilot with vacation during a month in which he holds a reserve line may extend the vacation that occurs in that month. Vacation buffers shall then be added to the extended vacation as provided in Section 7.G.3.a., unless waived by the pilot. i. The maximum extension shall be determined by the following

formula: Maximum Extension = ({[(Number of vacation days (as awarded or slid) in the bid period multiplied by 6) + 6] = R-day value} rounded down) minus the number of originally scheduled vacation days in the bid period.

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Example: A pilot has a 7 day vacation period in a bid period in which the R-day value is 4:36. The maximum extension is

{[(7 x 6) +6] ÷ 4.600} - 7 = [(42 + 6) ÷ 4.600] - 7 = (10.434 rounded down) - 7 = 10 - 7 = 3.

Consequently, the pilot could add up to three days to his vacation period. This would give him a total of 14 days (presuming buffers could fit on both ends of his vacation period as extended). The pilot's vacation bank would be charged 46 CH (10 x 4.600), but only 7 vacation days would be removed from his vacation accrual.

ii. A pilot may enter a vacation extension submission during the Conflict Input Window immediately before the bid period in which the vacation is scheduled to occur.

iii. A pilot may not extend his vacation (as awarded or slid) outside of the bid period.

iv. In case of a vacation period scheduled to span 2 bid periods, if the pilot holds a reserve line in both bid periods, then for purposes of vacation extension, the vacation in each month shall be treated as if it were a separate vacation period. Example: A pilot's 10 day vacation period has 7 days in one bid period and 3 days in the next. The pilot holds a reserve line in both bid periods. R-day value in the first bid period is 4:36; in the second it is 4:47. The pilot may extend his vacation a maximum of 3 days in the first bid period (which must expand backward, since he can't expand outside of the bid period). The vacation in the second month is treated as if it were a stand alone 3 day vacation period, for purposes of expansion. His maximum expansion would be 3 x 6 = 18 + 6 = 24 ÷ 4.783 = 5.017 rounded down = 5 minus 3 = 2 days of available extension.

v. A pilot may not extend his vacation period to conflict with a trip(s) that begins outside the bid period of his vacation as awarded or slid.

vi. A vacation period shall not be extended to cause conflict with R-days scheduled on Thanksgiving Day, Christmas Eve, Christmas Day, New Years Eve or New Year's Day.

4. If the SCH value of a pilot's last vacation period in a year exceeds the balance in his vacation credit hour bank, he may elect to reduce the number of vacation days in his vacation period in order to avoid or reduce a deficit

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in his vacation bank. A pilot shall communicate this election to CRS during the Conflict Input Window.

5. Vacation Deficit and Make-Up If a pilot's vacation credit hour bank balance falls below the credit hour value of his remaining vacation in a calendar year, the following shall apply: a. The pilot may bid for a make-up vacation trip(s) during the View/Add

window for the bid period in which the pilot has a vacation period that, if taken as scheduled, would result in a vacation bank deficit. The credit hour of the make-up vacation trip(s) shall not exceed the projected deficit by more than 6 hours.

b. The pilot may submit for a make-up vacation trip(s) (as provided in Section 25.L.5.) at any time during the calendar year.

c. Make-up vacation credit hours earned in the last bid period of a calendar year (i.e., December), shall be credited to the pilot's vacation credit hour bank for the following calendar year.

6. Clearing the Bank a. A pilot who has a positive balance in his vacation bank after his last

vacation period of the year shall be paid for those credit hours, prior to the end of the year, at his pay rate at the beginning of the bid period in which the buy back is paid. The maximum balance subject to buy back is 40% of the vacation bank balance as of the beginning of the calendar year, including positive or negative adjustments from the previous year, plus positive adjustments in the current year, if any.

b. Flight management may approve vacation buy back in excess of the 40% limit contained in Section 7.G.6.a. (above), due to a pilot's extenuating circumstances.

H. Disruption of Vacations 1. If a pilot's trip operationally extends more than 2 hours but less than 26

hours into his vacation period, 6 CH shall be added to his vacation bank and 1 day shall be added to his next vacation period.

2. If a pilot's trip operationally extends at least 26 hours but less than 48 hours into his vacation period, 18 CH shall be added to his vacation bank and 3 days shall be added to his next vacation period.

3. If a pilot's trip operationally extends 48 hours or more into his vacation

period, the following shall apply: a. The pilot may elect to cancel his vacation period and have an additional

24 hours credited to his vacation bank. The credit hours for the canceled

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vacation shall be restored to the pilot's vacation bank, and he shall be eligible for substitution for the trip(s) from which he was removed for the vacation that was canceled; or,

b. The pilot may elect to take the remainder of his vacation period, as scheduled, and have an additional 24 CH credited to his vacation bank.

I. Cancellation of Vacation 1. A pilot's vacation period may be canceled due to operational requirements. 2. If a pilot voluntarily cancels his vacation at Company request, he shall be

paid, not later than the following bid period, the CH value of the canceled vacation, not to exceed the balance in his vacation credit hour bank, plus an additional 24 CH. The credit hour value of the canceled vacation shall be deducted from the pilot's vacation bank.

3. If a pilot's vacation is involuntarily canceled, the following shall apply. a. The pilot shall be notified of the cancellation in writing at least 30 days

in advance. b. The pilot's vacation bank shall be increased by 24 CH. c. The pilot may reschedule the canceled vacation period to a currently

open vacation slot(s) or to a slot(s) held by any pilot junior to him in his crew position. The junior pilot's vacation award shall not be impacted.

d. If the pilot is unable to reschedule the canceled vacation period as provided in Section 7.I.3.c. (above), the vacation hours shall be carried over into the following year.

e. Notwithstanding Section 7.I.3.c. and I.3.d. (above) the pilot may elect to be paid the credit hour value of his canceled vacation period, plus the additional 24 CH, in the manner provided in Section 7.I.2. (above).

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SECTION 8 DEADHEADING Domestic Deadhead: A deadhead that operates solely within the contiguous 48 United States. International Deadhead: A deadhead that originates or terminates in a location outside the contiguous 48 United States. Intercontinental Deadhead: A deadhead that originates on one continent and terminates on another continent, and is scheduled for more than 5 block hours (OAG). Front-End Deadhead: Deadhead travel that is scheduled to occur prior to the first revenue segment or standby period of a trip, and which originates in the pilot’s base. Mid-Trip Deadhead: Deadhead travel that is scheduled to occur between 2 revenue segments or standby periods within a trip. Back-End Deadhead: Deadhead travel that is scheduled to occur after the last revenue segment or standby period of a trip, and which terminates in the pilot’s base. Fare Quote: A quote for the actual cost of a deadhead ticket, capable of being purchased by the Company at the time this quote is obtained. This includes quotes obtained for a deadhead to which a pilot is not yet assigned. Established Fare: A fare quote obtained pursuant to Section 8.A.4.b. The fare quote shall include documentation which verifies the time and date that the fare quote was obtained and the employee number for the pilot(s), if any, assigned to the deadhead at that time. Baseline Fare: A fare quote that is obtained at the publication of the Baseline Fare. Flat Bed Seat: A seat on a commercial deadhead carrier that when fully reclined is greater than 175 degrees. Scheduled: For the purposes of Section 8, commencing at the construction of a trip, any time period not meeting the definition of operational. Operational: For the purposes of Section 8, a period of time that commences at the scheduled report time of a duty period and concludes at the end of that duty period.

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Operational Recovery: The inclusion of a scheduled deadhead into a trip (either via revision, or ad-hoc trip construction), when there are less than 72 hours remaining between such inclusion, and the first revenue flight protected by such scheduling. A. Deadheading By Air

The provisions of this paragraph apply to pilots scheduled to deadhead by air transportation. 1. Deadheading To Revenue Operations

A pilot scheduled to deadhead to or from revenue operations shall receive pay and credit as provided in Section 4.F. (Trip Guarantee).

2. Deadheading To Training A pilot scheduled to deadhead to or from training shall receive deviation bank credit for that deadhead.

3. Selection of Deadhead Carriers Requirements regarding carrier selection shall apply when the deadhead is scheduled. The Company shall not be in violation of this Section due to operational changes or conditions imposed by passenger carriers after the deadhead is scheduled (e.g., aircraft change)trip is constructed or revised. a. Scheduled Domestic Deadheads

Scheduled domestic deadheads shall be booked exclusively on U.S. certificated air carriers operating under FAR Part 121, except:

i. when the route of the deadhead travel is not served by an FAR Part 121 U.S. air carrier, and

ii. when authorized by the SIG. The Company shall not schedule front-end domestic deadheads, other than non-stop, that operate during the hours of 0200-0459 LBT. Deadheads scheduled in accordance with Section 8.A.3.c., below, do not violate this paragraph.

b. ScheduledAll Deadheads (Domestic and International Deadheads) i. Commercial deadhead tickets shall be purchased exclusively on:

(a) Air carriers on the Company’s approved commercial carriers list on April 29, 2014 (“existing air carriers”); or

(b) Air carriers rated “Good” (Class 1) by Airline Insider/Frontier MEDEX (or successor vendor providing similar ratings); or

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(c) Air carriers rated “Adequate” (Class 2) that are not on the Company’s approved commercial carriers list (Section 8.A.3.b.i.(a) above) subject to the dispute process set forth in Section 8.A.3.b.ii. below; or

(d) Air carriers rated “Questionable” (Class 3), with approval of the Association SIG.

ii. Disputes over Class 2 air carriers shall be resolved using the scheduling dispute final resolution process set forth in Section 25.BB.F. or G. Existing air carriers shall not be subject to dispute unless their rating falls below Class 2 or the Company’s experience with the carrier creates a substantial concern for the safety and reliability of the carrier’s operations.

iii. In code share situations in which 2 or more airlines share the same flight segment, the airline operating the flight shall determine compliance with this Section.

iv. International deadheads shallmust be scheduled on FAR Part 121 U.S. air carriers or comparable foreign air carriers with comparable jet service.: (a) Jet aircraft; (b) The De Havilland Canada DHC-8-400 Dash 8, for deadhead

flight segments entirely within the “European Theater” (as defined in Section 12.D.1.c.ii.); or

(c) Another aircraft/deadhead routing, as agreed upon by the Association SIG. The Association SIG shall not unreasonably deny the use of other aircraft meeting similar (to jets and DHC-8-400) safety, reliability, and comfort standards.

v. A deadhead shall not be scheduled for more than 22 consecutive hours on duty.

c. OperationalBusiness Necessity Deadheads In individual cases of operationalbusiness necessity, in addition to carriers authorized by Section 8.A.3.b. above, and with the approval of the System Chief Pilot, a Regional Chief PilotFleet Captain (or his designee), or the Duty Officer, a pilot may be scheduled to deadhead on a Company aircraft, chartered jet carrier, Company corporate business jet aircraft or on a, scheduled U.S. certificated air carrier operating under FAR Part 135. The SIG shall be advised of the reasons forpart 121 or 135, or on any other carrier to which the pilot agrees. The Company shall provide a written report detailing the reason(s) requiring the use of this actionprovision to the SIG within 5 days of occurrencethe construction or revision.

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d. Scheduling of Deadheads on Company Aircraft Notwithstanding Section 8.A.3.c. (above), the Company may schedule deadheads on Company aircraft operating to/from Almaty, Kazakhstan (ALA) consistent with the terms of the Grievance 09-16 Settlement Agreement.

e. Deadhead by Company Aircraft to Base i. Except as provided in Section 8.A.3.e.ii., if the Company constructs

a trip outside of the bid period package and/or revises any trip, and the Company determines a necessity exists under Section 8.A.3.c. as to a deadhead(s) located at the end of the trip that does not include any further flight deck or other non-deadhead duty, the use of Company aircraft for deadheads shall be accomplished as provided in the following “Fly Window Procedures.” (a) The fly window shall begin 12 hours after the end of the pilot’s

previous duty period. The fly window shall terminate 36 hours from its beginning point.

(b) If there is a commercial flight with available seats within the fly window, the Company shall obtain such for the pilot (provided it complies with other provisions of the contract (e.g., minimum rest requirements)). The unavailability of the class of service otherwise required by Section 8 shall not be a reason justifying a failure to purchase a commercial ticket under this paragraph.

(c) If there is a commercial flight(s) within the fly window but it has fewer available seats than the number of pilots requiring deadheads, the Company shall offer to purchase commercial ticket(s) in the following order: Captain, First Officer, and Second Officer. If there were multiple pilots holding the same crew position on the trip, the most senior pilot within that crew position will be given higher priority.

(d) In the event that there are insufficient seats available on commercial flight(s) within the fly window, the Company may schedule a pilot for a Company jumpseat that departs at any time after the beginning of the fly window.

ii. The fly window procedures shall not apply if:

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(a) The pilot would be placed at risk of substantial bodily harm, or loss of property or life due to his continued presence in a location during the fly window; or

(b) There is any legal or regulatory reason why the pilot cannot deadhead on a commercial carrier (e.g., does not possess required visa); or

(c) Application of the fly window procedures would result in the pilot being illegal for his next Company scheduled activity (e.g., flight duty, standby, reserve, training). In that case, if specifically authorized by the Duty Officer based on staffing needs (in case the pilot otherwise would miss non-training duty) or disruptions to training schedules (in cases where the pilot would miss training), the Company may schedule the pilot for any legal jumpseat that would protect his legality for further scheduled duty.

iii. A pilot who is positioned by means of this provision (Deadhead by Company Aircraft to Base) shall be entitled to deviation bank credit in the amount of the Baseline Fare for a ticket in the highest class of service for which the pilot is eligible, on the first flight that would have been legal for the return deadhead, but for the unavailability of seats.

4. Administration of Deadhead Fares a. The Company shall publish the Baseline Fare for all scheduled

commercial deadheads. i. For trips in the bid period package, the “Baseline Fare” is a fare quote

obtained no earlier than 7 days before and no later than 2 days after the publication of the bid period package.

ii. For trip revisions, and for trips constructed after the publication of the bid period package, which include a commercial deadhead(s) for which a Baseline Fare has not yet been published, the Baseline Fare is a fare quote obtained at the time the Company constructs or revises the trip.

iii. A Baseline Fare is applicable to all crew positions on the trip containing the commercial deadhead.

b. The Company shall determine and publish the Established Fare for all scheduled commercial deadheads after the publishing of First Officer monthly bid awards, as provided in Section 25.__, and no later than 14 days prior to the scheduled departure of the commercial deadhead (except where less than 14 days remain). i. The Established Fare is a fare quote obtained pursuant to Section

8.A.4.b.

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ii. For trip revision(s) involving revision(s) to a deadhead(s), and for trips constructed after the publication of the bid period package, the Established Fare will be determined: (a) When a pilot is assigned to the trip, if 14 or more days remain

prior to the scheduled departure of the deadhead; (b) 14 days prior to the scheduled departure of the deadhead, if no

pilot has been assigned as of that time; or (c) At the time the Company constructs or revises the trip, if less than

14 days remain prior to the scheduled departure of the deadhead. iii. An Established Fare is applicable to all crew positions on the trip

containing the commercial deadhead. c. The Baseline and Established Fare(s) for any trip containing a

commercial deadhead shall also be included with the information associated with the trip in VIPS (e.g., displayed on the Trip Pairing screen).

5. 4. Class of Service for Commercial Deadhead Travel Requirements regarding class of service shall apply when the trip is constructed with a deadhead is scheduled. The Company shall not be in violation of this Section due to operational changes or conditions imposed by passenger carriers after the deadheadtrip is scheduledconstructed (e.g., increased or reduced block time, aircraft change, etc.). Regardless of whether such changes occur, a pilot’s deviation allowance is based on the class of service authorized in the original schedule. a. Deadhead travel shall be booked in coacheconomy class unless a

higher class of service is authorized. b. A class of service higher than coacheconomy shall be authorized if:

i. a deadhead exceeds 5 scheduled block hours; or ii. a deadhead is included in a single duty period exceeding 11:30; or iii. the scheduled block hours of a revenue flight plus the scheduled

block hours of a deadhead in a single duty period exceed 8 hours. However, if a domestic duty period does not exceed 11:30 and a deadhead within that duty period does not exceed 1:30 (OAG) block, the deadhead may be scheduled in coacheconomy;

iv. the deadhead is an international deadhead that exceeds 2:30 scheduled block hours, and whose origin and destination are both outside the contiguous 48 United States; or

v. as authorized by the SIG.

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c. Higher Class of Service i. Regardless of a passenger carrier’s nomenclature or hierarchy for

classes of service, a Flat Bed Seat satisfies the higher class of service requirements set forth in this Section.

ii. i. If a higher class of service is authorized on a deadhead with less than 10 scheduled block hours, such service shall be booked in Business or First Class at the Company’s option, subject to availability on the scheduled flight. If a seat with the required class of service is not available when the Company books a seat for the pilot, the Company shall book a seat in the next highest class of service available, provided it places a request to upgrade to the required higher class(es) of service.

iii. ii. If a deadhead has 10 or more scheduled block hours, the travel shall be booked in the following order based upon availability on the scheduled flight: (a) First Class (discounted); (b) Business Class (full fare or discounted) ; (c) First Class (full fare).

iv. iii. If the deadhead is scheduled for more than 16 hours duty, the following shall apply: (a) The flight must be a non-stop flight; and (b) A special booking priority shall apply to deadheads scheduled

over 16 hours. That priority shall be: (1) Discounted first class; (2) Full fare first class; (3) Business class; and.

(c) The Company shall ensure that Corporate Travel (or any subsequent Company designated travel administrator) attempts to secure first class seating at the earliest practical point in the planning process. If Corporate Travel is unable to book first class at the time the initial booking is made, Corporate Travel shall notify the pilot who is awarded that trip, via e-mail, of the unavailability of first class.

Intent: Ordinarily, Corporate Travel will make the reservations for deadheads over 16 hours when the final pairings are complete. Often, and primarily in the domestic system, Corporate Travel waits until several days before departure to

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issue tickets due to the high level of deviation and the possibility of double billing in those circumstances.

v. iv. If neither Business nor First Class is available on the scheduled flight, coachan economy class may be booked ticket (with a reservation to upgrade to the appropriate higher class of service.) may be purchased only in the following two circumstances: (a) The scheduled deadhead flight is for the purposes of “operational

recovery;” or (b) The scheduled deadhead duty period is 16 hours or less.

vi. v. Regardless of the class of service actually bookedticketed, a pilot’s deviation bank shall be credited with the Baseline Fare for the highest class of service which is authorized on the scheduled deadhead flight, and which exists on that flight.

Intent: Pilot 1 is scheduled to deadhead from Memphis to Frankfurt on American. American’s first class service was sold out on that flight, so the pilot was scheduled in business class. Pilot 1’s deviation bank is credited with the discounted first class fare on American because that was the highest fare that was both authorized and which existed on that flight. Pilot 2 is scheduled to deadhead from Memphis to Frankfurt on Northwest through Amsterdam. The KLM airplane to Amsterdam does not offer any first class, so business class is booked. Pilot 2’s deviation bank is credited with the Business class fare that was booked because that was the highest fare that was both authorized and which existed on that flight.

d. Company BookingPurchase of Higher Class of Service Tickets in Bid Period Package When bookingpurchasing deadhead tickets prior to the beginning of a bid period, deadhead tickets for flights entitled an upgradedto a higher class of service shall be bookedpurchased prior to tickets requiring a lower class of service. Intent: Corporate Travel books deadhead tickets after the final pairings are complete. In this new deadhead booking process, flights entitled to business/first class at the time the pairings are complete will go to the head of the queue. By moving the booking of these tickets to the earliest practical time in the planning phase, the likelihood of being able to book a higher class (as opposed to being wait listed with an upgrade reservation), is maximized. This procedure is not to be confused with the special booking priority, and enhanced deviation options applicable

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to deadheads scheduled over 16 hours in a single duty period. Those provisions apply only to deadheads scheduled over 16 hours.

6. 5. Airline Reservations andDeadhead Tickets

This paragraph shall apply equally to deviation deadhead tickets and Company scheduled deadhead tickets. a. Making Reservations a. A Company designated group or department shall be utilized for

makingpurchasing all airline reservationsdeadhead tickets, except when: i. the Company cannot issuepurchase a ticket for a lower fare than the

pilot can obtainpurchase himself; or ii. the pilot must makepurchase the reservationticket himself to prevent

delay to FedEx flight operations. b. Obtaining Tickets

i. Pilots shall obtain all deadhead tickets from the Company unless: (a) the assignment to the trip, training event(s) or other duty is not

scheduled at least 48 hours in advance; or (b) the Company is unable to deliver the ticket to the pilot due to

delivery limitations; or (c) the pilot made the airline reservation himself as provided in

Section 8.A.5.a. (above). b. ii. If a pilot does not obtainpurchase his deadhead ticket fromusing the

Company’s travel vendor, he shall use the Company issued Travel Card to purchase such ticket. In extenuating circumstances, a pilot may contact the Company to arrange a pre-paid ticket, or he may buy a deadhead ticket by other means, if necessary to prevent delay to FedEx flight operations (e.g., carrier won’t take the credit card, Travel Card unavailable).

c. Validation and Authorized Use c. A pilot must either use his Company paidpurchased deadhead ticket in

conjunction with the trip for which it was scheduled or returnaccount for that ticket to the Company with the expense report reconciling his deviation expenses for the month. Upon written request, a pilot shall provide the Company proof of his use of a deadhead ticket.

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B. Deadhead by Surface Transportation

1. A pilot who is scheduled for surface transportation between two airports shall receive credit for pay toward the duty period calculation, for such deadhead, based on historical FedEx data as follows: a. :30 CH for each 1 hour, or portion thereof, up to a maximum of 2:30 CH. b. Surface transportation greater than 2 hours must be approved by the

SIG. 2. The surface transportation shall be provided on a non-public commercial

operator; provided, however, that between international locations specifically approved by the SIG (e.g., HKG-CAN and CGN-FRA), a pilot may be scheduled for ground transportation on a public commercial operator (e.g., train, hydrofoil).

3. Surface transportation between an airport and a layover facility is not deadhead by surface transportation, provided that the flights immediately preceding and following the layover operate from the same airport.

C. Deviation From Scheduled Deadhead The intent of the deviation policy is to allow a pilot business travel flexibility in accordance with the options and conditions specified herein. Except as provided in Section 8.C.1.f.ii., a pilot who deviates is responsible for his scheduled, revised, rerouted, or canceled trip. A deviating pilot must ensure his compliance with FAR crew rest requirements prior to operating a Company flight. A pilot who deviates from a scheduled deadhead shall earn trip guarantee as if he were deadheading as scheduled. 1. Deviating Operating Procedures

a. Notification i. A pilot shall notify the Company through VIPS of his intention to

deviate from a scheduled deadhead at the beginning of a trip. This notification shall occur no later than 60 hours prior to the showtime of the scheduled deadhead.

ii. Except as provided in Section 8.C.1.a.i. (above), if a pilot is notified of a trip assignment less than 60 hours prior to showtime, upon notification, he shall advise the Company through VIPS of his deviation from a scheduled deadhead at the beginning of the trip.

iii. If a pilot has provided notification of a deviation, and the deadhead at the beginning of a pilot’s trip is subsequently revised, upon notification he shall advise the Company through VIPS of his deviation on the revised deadhead.

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iv. Failure to notify the Company of a deviation as required may result in the deviation bank credit for the appropriate deadhead being deducted from the pilot’s deviation bank only if the cancellation of the scheduled deadhead results in a charge to the Company. Any such deduction shall not exceed the lesser of the value of the charge to the Company, or the deviation bank credit for that deadhead.

Intent: The check-in of 60 hours allows the Company to cancel scheduled deadhead reservations. In many cases, airlines are charging the Company for reservations not canceled more than 48 hours prior to showtime. Otherwise, the Company will be double paying for the deadhead. The Company intends to deduct the deadhead credit from a pilots bank only if the pilot doesn’t notify the Company of his deviation in time, and that failure results in the Company not getting credit from the airline.

v. A pilot may maintain 2 active reservations for each scheduled lane segment. Example: A pilot may book his deviation travel itinerary before canceling his scheduled travel itinerary, except where a passenger carrier’s reservation systems will not allow the pilot to do so.

b. Trip Trade Restrictions After Deviation Notification (International Deadheads) After a pilot provides notification of his deviation from a scheduled international deadhead, hedeadhead that originates or terminates in a location outside the contiguous 48 United States, Canada, or Mexico, the pilot may not trade, drop, or authorize a personal bump on the international trip containing the deadhead if there are less than 14 days remaining until scheduled showtime of that trip, unless authorized by CRS, or his ACP. For purposes of this paragraph, an international deadhead shall be a deadhead that originates or terminates in a location outside the contiguous 48 United States, Canada or Mexico.Intent: This is necessary because, when the pilot notifies the Company of his intention to deviate, the Company cancels the original deadhead reservation in order not to be double charged. Many carriers are requiring cancellation at least 48 hours prior to departure in order to ensure proper credit or the Fleet Captain (or his designee).

c. Initial Deviation Check-In A deviating pilot shall check in with VIPS, or CRS if VIPS is not accessible, no earlier than 4860 hours and no later than 4 hours prior to showtime of the originally scheduled deadhead at the beginning of a trip. This callcheck-in will satisfy the requirements of the final deviation check in if the pilot is already in position for the first revenue leg when he makes

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this call.Intent: When a pilot makes his initial check-in, VIPS will ask him whether he is already in position for the trip. If so, VIPS will ask whether the pilot is also accomplishing his final check in.his Initial Deviation Check-In.

d. Final Deviation Check-In i. A deviating pilot shall check in with VIPS, or CRS if VIPS is not

accessible, and indicate that he is positioned within 100 nautical miles, or at a distance as approved by his ACPFleet Captain (or his designee), of the airport from which the first revenue flight will depart or at which the pilot’s standby period begins. This check in must occur as follows:: (a) no later than 8 hours prior to showtime of a revenue flight that

operates entirely within North America (i.e., Alaska, Canada, Mexico, 48-the contiguous 48 United States, Caribbean and Puerto Rico); or

(b) no later than 12 hours prior to showtime of a revenue flight that either takes off from, or lands in, a city outside North America or a standby period that did not require an intercontinental deadhead from the pilot’s base; or

(c) for a revenue flight or standby period that required an intercontinental deadhead from the pilot’s base, no later than: (1) 18 hours prior to showtime of a revenue flight or

commencement of the standby period; or (2) The scheduled arrival time of the Company-scheduled

deadhead at the location of the revenue flight or standby period (if less than 18 hours prior to the scheduled departure of the revenue flight or commencement of the standby period).

Example: A pilot deviates from his scheduled deadhead to CDG. The scheduled deadhead was scheduled to arrive in CDG 36 hours prior to showtime. The pilot’s final deviation check-in must occur no later than 18 hours prior to showtime. Example: A pilot deviates from his scheduled deadhead to HKG. The scheduled deadhead was scheduled to arrive in HKG 17 hours prior to showtime. The pilot’s final deviation check-in must occur no later than 17 hours prior to showtime.

ii. For purposes of Section 8.C.1.d. (this paragraph) the showtime of a revenue flight shall be one hour prior to the scheduled departure of that flight.

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iii. The final deviation check-in may occur at the same time as the initial deviation check-in if the pilot is already in position for the scheduledfirst revenue departureleg when he makes the initial deviation check-in.

iv. Final deviation check-in may be accomplished if the deviating pilot joins the Company scheduled deadhead(s) and, as a result, he will arrive at the point of origin of the pilot’s first revenue flight or standby period as if the pilot had not deviated. Upon arrival at the departure gate of the scheduled deadhead flight, the pilot shall check-in with VIPS, or CRS if VIPS is not accessible, and indicate that he is in position for the scheduled deadhead flight. Once this check-in has been accomplished, the pilot shall no longer be considered as deviating, for the purposes of subsequent delays, revisions, and all trip services. Example: The scheduled deadhead travel is MEM-ATL-CDG. The pilot deviates and obtains a ticket to join the scheduled ATL-CDG flight. Final deviation check-in may be accomplished upon arrival at the departure gate for the CDG flight in the ATL airport.

v. iv. If a final deviation check-in has not occurred as required, then prior to replacing the deviating pilot, CRS shall place threefirst place a call to the scheduled layover hotel, then a minimum of 2 calls based on the following hierarchy. However, if time does not permit, CRS shall not be required to make these calls., unless the pilot has fewer than two phone numbers listed in VIPS: (a) VIPS primary contact number. (b) “Beeper” (or cellCell phone) number. (c) permanentAlternate contact number #1. (d) permanentAlternate contact number #2.

e. Deviation Delay/Failure If a pilot encounters difficulty in his deviation travel to the revenue departure location to such an extent that a live flight is jeopardized, he shall contact CRS at the earliest opportunity. If the notification to CRS is provided in sufficient time to allow the trip to be covered by a reserve, and the flight is not delayed due to the deviation failure, then the pilot will be dropped from the trip without pay, receive no deviation bank credit for the trip, and shall not be disciplined.

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f. Trip Schedule ChangeRevisions i. If a pilot'’s trip is rescheduledrevised at or prior to his initial deviation

check-in and, as a result, the pilot is unable to report on time, the trip shall be dropped and the pilot shall be eligible for Priority Non-Premium (PNP) make -up.

ii. If a pilot'’s trip is rescheduledrevised after his initial deviation check-in and, as a result, the pilot is unable to report on time, the Company shall make best efforts to reposition the pilot for the trip. If the Company is unable to do so, the pilot shall be eligible for substitution and is authorized return deadhead transportation to base. The cost of the original deadhead tickets shall be deducted from the pilot’s deviation bank, however, the cost of the deviation ticket used, and the cost of his return ticket, shall be allowable as a claim, up to the accepted fare for suchapplicable fare (as determined in accordance with Section 8.C.2.a.) for the original deadhead tickets, regardless of the pilot’s deviation bank balance. Such claim shall be specifically documented on a deviation expense report.

iii. A VLT/DRF/CMU pilot covered by Section 8.C.1.f.ii., (above), shall not be eligible for substitution and shall earn the greater of 3:00 CH or duty rig computed from his scheduled showtime until the VIPS notification of the revision.

iv. A deviating pilot is considered on a trip after the scheduled show time of the pairing. Therefore, if a trip changes after showtimeshow time, the pairing will be rebuilt to reflect the changes.

g. Mid-Trip Deviations A pilot may deviate from a scheduled deadhead between any two revenue segments of a trip only with the prior approval of his ACP, or his designee. All approved SFS mid-trip deviations that were scheduled on the airbridge, require the pilot to inform SFS GOC not later than 24 hours prior to the scheduled airbridge departure, so that the seat reservations may be canceled.Intent: Scheduled mid trip deadheads are included in a pilot’s deviation bank like any other deadheadsFleet Captain (or his designee).

h. End-of-Trip Deviations A pilot shall notify the Company through VIPS of his deviation from a deadhead scheduled deadhead at the end of a trip through VIPS: i. at least 60 hours prior to the showtime for an international deadhead;

or ii. at least 8 hours prior to the showtime for a domestic deadhead,

unless the airline requires an earlier notification to avoid cancellation

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penalties, in which case the deviation notification must occur 12 hours prior to the carrier’s no penalty deadline.Intent: The Company will provide a list of carriers who have cancellation penalty deadlines The Company shall include the carrier’s cancellation policy in the E-Ticket issued to the pilot by the Company’s travel department or vendor.

i. Business Status While Deviating i. A pilot who deviates is considered to be on business travel (and shall

be afforded all rights and benefits as such) while traveling under the provisions of this Section.

ii. A pilot may book a Company jumpseat as all or part of his deviation travel. A pilot bookingusing a jumpseat for the purpose of a deviation shall be considered inhave business jumpseat status [include new BP status].

2. Deadhead Deviation Banks a. A pilot shall have a deviation bank established for each bid period. The

value of the deviation bank shall equal the value of the scheduled deadhead tickets for trips flown during the bid period plus the value of any scheduled deadheads for recurrent training. However, if a deadhead trip is changed or canceled by the Company, the deadhead bank monies remain intact. A deadhead associated with a carryover trip shall be credited to the deviation bank for the bid period containing the showtime for the deadhead.Application By Bid Period Intent: If the pilot does not fly a deadhead trip the deviation bank will be reduced accordingly ,e.g., drop without pay, bump by another line pilot, trip trade, etc. The Company shall establish a deviation bank for each pilot for each bid period. i. The value of a given bid period’s deviation bank shall be equal to the

value of: (a) the applicable fare(s) for the scheduled commercial deadhead

ticket(s) for all trips flown during that bid period; and (b) the value of the applicable fare(s) for the scheduled commercial

deadhead ticket(s) for recurrent training scheduled during that bid period (if any).

ii. To the extent that the pilot’s allowable/reimbursable deviation expense claims for a given bid period are less than his deviation bank credit for that bid period, that balance shall first be reduced by half.

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This deviation bank allowance (DBA) shall be available to offset past or future deviation bank overspends, as follows: (a) If the pilot had allowable/reimbursable deviation expense claims

for the immediately preceding bid period which exceeded his deviation bank for that bid period, the DBA shall be applied to offset the prior overspend; and

(b) Any DBA balance remaining after application of Section 8.C.2.a.ii.(a) above shall be added to the pilot’s deviation bank in the immediately subsequent bid period.

Example: For the April bid period, the pilot incurred allowable deviation expenses which exceeded his April deviation bank by $200. In May, the pilot incurred allowable deviation expenses which were $1,000 less than his deviation bank. The pilot’s DBA for May was $500, of which $200 rolled back to offset the pilot’s April overspend. The remaining $300 of the pilot’s May DBA shall be included in the pilot’s June deviation bank.

b. Deviation Bank Credit i. Bid Period Package Deadhead

(a) If the pilot notifies the Company of his deviation from a commercial deadhead prior to the first day of the bid period in which the applicable trip begins, the pilot’s deviation bank shall be credited with the higher of the Baseline Fare or the Established Fare.

(b) If the pilot notifies the Company of his deviation from a commercial deadhead on or after the first day of the bid period in which the applicable trip begins, the pilot’s deviation bank shall be credited with the Established Fare.

ii. Non-Bid Period Package Deadhead For trip revision(s) involving revision(s) to a deadhead(s), and for trips constructed after the publication of the bid period package, the pilot’s deviation bank shall be credited with the higher of the Baseline Fare or the Established Fare.

c. A deadhead associated with a carryover trip shall be credited to the deviation bank for the bid period containing the showtime for the deadhead.

d. All deadhead travel shall be classified into two categories, Front/Back-End, and Mid-Trip. For the purpose of deviation bank credit, each category shall be treated separately. However, if a deadhead trip is changed or canceled by the Company, the associated deadhead bank

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monies remain intact. Within each category, a pilot’s bank credit shall be determined as set forth in Section 8.C.2.a. (above).

e. With respect to a pilot who deviates on the front-end of a trip, but who does not actually operate any portion of the trip due to a sick call, the pilot shall be compensated and the pilot’s sick leave account shall be reduced by the scheduled credit hours for that entire trip, unless he has made a demonstrable effort to commence his deviation travel.

Example 1: A pilot deviates from his scheduled deadhead travel from MEM to CDG via ATL, and instead plans to travel from JAX to CDG via EWR. The pilot arrives at the JAX airport and calls in sick, after the scheduled showtime of the original trip. The pilot receives partial pay and credit for the trip up to the time of his sick call, with the balance of the trip guarantee charged to his sick bank, in accordance with Section 14. Example 2: A pilot deviates from his scheduled deadhead travel from MEM to CDG via ATL, and instead plans to travel from DEN to CDG via ORD. The scheduled showtime for the MEM to ATL scheduled deadhead is 1540z on September 3. The pilot’s deviation deadhead from DEN to ORD has a showtime of 1100z on September 4. The pilot calls in sick from his home in DEN at 0900z on September 4. If the pilot holds trip guarantee, the pilot shall be compensated, and his sick leave account shall be reduced by the scheduled credit hours for the entire trip, in accordance with Section 14.

f. b. A pilot in initial, transition or upgrade training (ITU) shall have a separate deviation bank established for the duration of such training. The training deviation bank shall equal the value of any scheduled deadhead tickets associated with the trainingbe determined as set forth in Section 8.C.2.a. (above).

g. c. Deviation expenses associated with ITU training shall be reconciled against the pilot’s training deviation bank by submission of an expense report at the end of his training period.

h. Hotel Room Cancelation (HRC) Bank i. The Company shall establish a Hotel Room Cancelation (HRC) bank

for each pilot. ii. For all hotel rooms canceled by a pilot through CRS or other

designated means at least 26 hours prior to the scheduled hotel check-in (i.e., in accordance with Section 5.B.7.), the Company shall credit $35 (domestic hotel reservations), or $65 (international hotel reservations) to that pilot’s HRC bank, provided, however, that the pilot actually operated the trip containing the canceled hotel room(s).

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iii. HRC bank credits shall be available to offset allowable/reimbursable deviation bank expenses incurred during any bid period.

iv. The Company shall make available for his reference, via VIPS, a pilot’s current HRC bank balance.

v. A pilot’s HRC bank balance shall be capped at $10,000. vi. On-property sleep rooms are not guaranteed to pilots who cancel

Company-scheduled hotel rooms (e.g., IND day rooms). 3. Deviation Options and Qualifying Expenses

Subject to the limitations and reporting provisions in Section 8.C.4. and C.5. (below), a pilot'’s air travel, train travel, surface transportation, hotel use, parking and non-taxable per diem are allowable/reimbursable expenses as provided in this paragraph. a. Air Travel

i. In the following circumstances, air travel expenses are allowable/reimbursable: (a) to or from a pilot'’s base to position to/from a scheduled

assignment. (b) deviation from scheduled deadhead travel. (c) deviation from scheduled deadhead travel between a pilot'’s base

and training conducted away from his base. ii. Air travel expenses shall be limited to the accepted fare for

coachapplicable fare (as determined in accordance with Section 8.C.2.a.) for the class unlessof service for which the deviation flighttravel would otherwise qualify for a higher class of service under Section 8.A.4.bunder Section 8.A.5.

iii. Seat selection fees (e.g., Southwest Business Select, Delta Economy Comfort, United Economy Plus), provided the pilot charges the fee(s) to his Company issued travel card (receipts required regardless of amount). Such fees shall be limited to the greater of: (a) $40 per flight segment; or (b) $80 per positioning sequence (i.e., front-end, mid-trip, or back-

end). iv. iii. Airport departure fees.

iv. Ticket issuing, refund or transfer costs, if any, of an unused deviation ticket shall not be allowable unless a Company schedule change was the reason why the ticket could not be used, or had to be changed.

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v. If a pilot scheduled for a nonstop deadhead over 16 hours on duty, who is not booked in first class, deviates from the scheduled flightdeadhead in order to obtain first class on another carrier, the following shall apply: (a) the pilot shall include with his deviation expense report an e-mail

from corporate travel indicating that first class was not available on the originally scheduled flightdeadhead at the time the booking was made; and

(b) the provision of the e-mail in Section 8.C.3.a.v.(a) (the preceding paragraph) shall entitle the pilot to be reimbursed for his deviation ticket up to the full fare first class cost of a direct, nonstop deviation flight on the planned routingdeadhead whose origin and destination match the scheduled deadhead, regardless of his deviation bank value. A deviation deadhead covered by this paragraph must be among the standard routings scheduled by the carrier. Intent: This rule is designed to put the pilot in excellent position to obtain first class on long deadheads. The change in priority greatly increases the chance that the pilot will be booked in first class at the outset. If that does not occur, and the pilot wishes to deviate so that he can find first class on another carrier, provision is made to allow that even if the accepted fare for the ticket that was planned is below the actual cost of the first class ticket he buys. This provision is intended for use only for conventional, scheduled airline travel, not, for example, the Concorde, Lear jet, or other specialty air travel. This rule does not apply to emergency replacements under Section 12.D.1.e., nor does it permit an increase in the deviation bank beyond that necessary to pay for the deviation ticket. With respect to the e-mail notification from Corporate Travel, Corporate travel will only know to send an e-mail indicating the unavailability of first class to the pilot who was originally awarded the trip. If a pilot receives the trip later in the bid period, (e.g., due to the original pilot going sick, etc.,), then the pilot who flies the trip will have to request the e-mail from Corporate Travel if, at the time Corporate Travel is attempting to book his ticket, first class is not available. This only applies to deadheads originally scheduled over 16 hours under the provisions of this rule. The pilot should not ask Corporate Travel for an e-mail in any other situation in which first class is authorized, but cannot be booked due to availability.

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Example: A pilot is booked on United to HKG. There is no seating for either discounted first class or full fare first class, so Corporate Travel books the pilot in business class with a reservation to upgrade to first class contingent upon availability. The accepted fare for the discounted first class was $1500, which is the amount the pilot's deviation bank is credited with per Section 8.A.4.c.v. Corporate travel sends the pilot an e-mail indicating that first class could not be booked on his deadhead flight over 16 hours. The pilot deviates, using a full fare first class ticket on a direct flight on Northwest, which costs $2300. The pilot's total deviation bank for the month normally would be $2,500 ($1,000 for other tickets, and $1,500 for the UA flight to HKG). Assume that the pilot has spent a total of $3,000 ($2,300 for the NW flight to HKG, and $700 for other travel). When reconciling his deviation expenses, the pilot includes a copy of the Corporate Travel e-mail indicating that first class could not be booked on the UA flight to HKG. This e-mail indicates to the travel auditors to increase the deviation bank by $800 in order to pay the NW flight to HKG. This essentially pays the NW deviation flight as a separate transaction, and the remainder of the pilot's deviation expenses are reconciled against a bank of $1,000 (the original bank less the planned UA ticket to HKG). Consequently, if the pilot had spent a total of $3,400 ($2,300 for the NW ticket and $1,100 for other deviation expenses), $100 of those expenses would not be reimbursed, and must be paid by the pilot, just like in the normal situation.

vi. If a pilot scheduled for a deadhead less than 16 hours on duty but more than 10 hours scheduled block hours, who is booked in economy class, deviates from the scheduled deadhead in order to obtain a higher class of service on another carrier, the following shall apply: (a) the pilot’s Deviation Bank shall be credited with 130% of the

Established Fare on the scheduled deadhead routing; and (b) the pilot’s deviation travel is not required to match the scheduled

deadhead routing. b. Surface Transportation

i. Surface (including water borne) transportation expenses between a field airport/FedEx operations area and the layover hotel associated with that airport are allowable/reimbursable. (a) The vendor for surface transportation shall be selected in the

following order:

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Deadheading 8

(1) Company provided transportation (crew bus), or hotel transportation, or, if unavailable,

(2) The contract vendor in that city, or, if unavailable, (3) Another vendor, in which case reimbursement for surface

transportation is limited to $100150 per occurrence, unless a higher charge is authorized by the pilot’s ACPFleet Captain, or his designee.

(b) Surface transportation used at other than the scheduled pickup time shall not be direct billed.

ii. Surface (including water borne) transportation of reasonable expense between commercial locations, or between a residence and the field airport/FedEx field operations area, greater than $100 per occurrence requires prior approval by a pilot’s ACP. Such approvals may be granted on an on-going basis.Intent: ACP approval will not be required for qualifying ground transportation up to $100 per occurrence. Deviation ground transportation greater than $100 up to $200 must have specific ACP approval. Deviation ground transportation for amounts greater than $200 must be approved by a pilot's RCP. In both instances, a copy of the e-mail documenting the ACP/RCP approval must be included with the pilot's expense report. Approvals may be granted on an on-going basis. It is not the intent of this policy to allow extravagant travel when reasonable, lower cost transportation is available.Fleet Captain. Approval requests shall be available via the Company’s online expense reporting system.

iii. A pilot who is assigned to initial, transition or upgrade training away from his base may elect to drive his vehicle to the training location. In this event, the AAA calculated mileage, round trip from the pilot’s permanent residence to the training facility at the current IRS mileage rate shall be allowable/reimbursable. (e.g., Trainingtraining in DFW and a pilot drives his car to and from).

c. Trains Travel by train or subway areis an allowable/reimbursable expensesexpense to the same extent air travel or surface transportation expenses would have been allowable/reimbursable.

d. Hotel i. DomesticNon-Intercontinental Deadheads

A pilot who is scheduled for consecutive non-intercontinental deadheads from and back to the same domestic city, may expense up to 3 nights of hotel use in the contract hotel in lieu of the scheduled deadhead tickets. The hotel use shall be between the scheduled

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Deadheading8

deadheads. Use of a non-contract hotel, and any hotel use for greater than 3 nights, requires prior approval of the pilot'’s ACPFleet Captain, or his designee.

ii. InternationalIntercontinental Deadheads (a) A pilot who deviates from internationalintercontinental deadhead

travel may expense up to 3 nights of hotel use in lieu of the scheduled deadhead ticket. The hotel use at an international location shall be on consecutive days in conjunction with the revenue portion at the beginning or end of a trip. Hotel use for greater than 3 nights requires prior approval of the pilot'’s ACPFleet Captain, or his designee.

(b) A pilot who deviates from internationalintercontinental deadhead travel may expense hotel(s) as part of his deviation travel as follows: (1) he may expense 1 hotel room as a deviation expense, or (2) he may expense up to the same number of hotel rooms as in

his scheduled deadhead. Intent: A pilot scheduled for an intervening layover during a 2 duty period international deadhead may expense an intervening hotel use enroute to his scheduled destination.

iii. Domestic and International iii. (a) A pilot who deviates from deadhead travel at the beginning of a

trip may check in at the contract hotel a maximum of 1 day2 days early. This hotel use is a deviation expense charged to his bid period deviation bank.

iv. (b) When hotel use is an allowable/reimbursable deviation expense: (a) (1) the pilot is responsible for his hotel reservation, (b) (2) reimbursement shall be limited to the contract hotel rate for

the city associated with the revenue portion of the trip, and (c) (3) authorized expenses shall not be direct billed.

e. Non-Taxable Per Diem A pilot claiming hotel use as a deviation expense under Section 8.C.3.d.i. or C.3.d.ii. (above) may also claim non-taxable per diem for the period covered by his hotel reimbursement claim (i.e., one night hotel use equals 24 hours per diem) and not otherwise covered by per diem for a scheduled trip. This per diem shall be paid at the rate for the city associated with the revenue portion of the trip.

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Deadheading 8

f. Parking A pilot may claim up to $100375 per bid periodquarter for parking (monthly passpasses or fees) at an airport outside his domicile/base.

4. Limitations on Deviation Expenses The following limitations apply to deviation expenses: a. All deviation expenses shall be paid for using the Company issued

Travel Card, unless: i. the vendor will not accept the card; or ii. the vendor has rendered both authorized and unauthorized deviation

expenses, and refuses to allow the pilot to pay for authorized expenses with the Company Card and for unauthorized expenses in another manner. In this case, the pilot shall pay the vendor’s bill by personal means, and shall submit an expense report requesting reimbursement for the authorized expenses.

b. Expenses which are otherwise allowable/reimbursable, but which exceed the value of a pilot'’s deviation bank are the pilot’s responsibility, and shall be reimbursed to the Companyhandled in accordance with Section 8.C.5. (below)b.

c. The Company shall pay all fees associated with scheduled deadhead tickets. Fees associated with an unused deviation ticket shall not be allowable unless a Company schedule change was the reason why the ticket could not be used, or had to be changed. These costs/fees shall be handled in accordance with Section 8.C.5.b., and shall be limited to the actual cost but shall not exceed $25 per transaction.

Note: When a deviating pilot arranges for the booking of his deviation travel, either via an electronic system(s) or by phone contact with the Company’s travel department or vendor, the Company is responsible for any of the above-listed fees that may be incurred due to the cancellation of the scheduled travel, and/or the booking of the pilot’s deviation travel itinerary. However, in the event the pilot makes any subsequent changes to his deviation travel itinerary, and if those changes result in any of the above-listed fees, he shall be responsible for those fees.

d. c. All deviation travel must be on a commercial carrier, except as specifically authorized otherwise in this Section.

e. d. Travel claimed as a deviation expense must begin or end within 3 days of the scheduled assignment to/from which the pilot is deviating (e.g. scheduled deadhead, trip or R-day) and must proceed to the intended destination of the deviation with no greater than a 24 hour delay

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Deadheading8

enrouteen-route, domestically, and a 48 hour delay enrouteen-route internationally.

f. e. When a pilot claims hotel use in lieu of a scheduled deadhead ticket(s) as provided in Section 8.C.3.d.i. or C.3.d.ii.(a) (above): i. the scheduled deadhead ticket(s) establishes a “mini-bank” (i.e.,

claims based on that ticket(s) are allowable/reimbursable only up to the cost of that scheduled deadhead ticket(s)); and

ii. the value of the deadhead ticket(s) may not be used for any deviation expense other than hotel use (as provided in Section 8.C.3.d.i. or C.3.d.ii.(a).), and non-taxable per diem.

g. f. Expenses, other than those identified in this section as authorized, are not allowable/reimbursable (e.g., expenses associated with the use of a personal vehicle (other than allowable parking expenses), telephone, food, newspapers, recreation, etc., are not allowable/reimbursable).

5. Reporting Procedures a. Any time an expense is charged to a Company -issued Travel Card, a

deviation ticket is issuedpurchased, or a deviation expense is incurred, an expense form shall be submitted, with appropriate original receipts (or electronic reproduction thereof). Boarding passes are required onfor tickets purchased with personal funds. Receipts are not required for reimbursable expenses under $25. Such expense form shall be submitted no later than the end of the subsequent bid period. A

b. If a pilot whose’s allowable deviation expenses for a bid period exceed the value of his deviation bank (as adjusted by operation of Section 8.C.2.a.ii., if applicable) for such bid period shall submit appropriate payment with his bid period expense formor if a pilot has incurred unallowable expenses, the Company shall utilize payroll deduction to satisfy the pilot’s balance, subject to the 25% limit expressed in Section 3.E.

c. b. A pilot shall designate on his online expense report any claim for deviation travel expenses incurred while commuting to or from his base. The amount of such claim that is allowed/reimbursed shall be included in the pilot'’s income as taxable compensation and all applicable taxes will be withheld.

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Miscellaneous Flying 9

SECTION 9 MISCELLANEOUS FLYING Definitions: FPS DUTIES Duties which cannot be performed by a line pilot with standard qualifications, and for which special flight test-related training and/or qualification may be required by the Flight Operations Manual (FOM) and/or Flight Test Operations Manual (FTOM). NEGATIVE BID PERIOD REPORT A report indicating that no revenue flying was performed by pilots other than line pilots during a particular bid period. PDH ASSIGNMENT(S) An assignment(s) designated for humanitarian or publicity purposes. PDH assignments shall not include revenue flying. A. General

1. All revenue flying covered by this Agreement shall be performed by pilots on the master seniority list. No pilot may fly a revenue flight in a crew position he cannot hold by his seniority.

2. If a management pilot bumps a line pilot from his scheduled trip or a portion thereof, in accordance with other provisions of this Agreement, the line pilot shall receive the scheduled credit hours and deviation credit, if any, for the trip, or portion thereof, notwithstanding Section 8.C.2.a. (trips flown).

3. If a management pilot flies a trip, or portion thereof, covered by this Agreement and it is not possible to identify the line pilot who would have been bumped and otherwise would be entitled to compensation as described in Section 9.A.2., (above), the scheduled credit hours for such trip, or portion thereof, either shall be paid to the Association or offset against monies owed by the Association to the Company pursuant to Section 18.C. The value of any monies owed or offset pursuant to this paragraph shall be determined by multiplying the number of credit hours

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Miscellaneous Flying9

flown by the average hourly pay rate system wide for the crew status in which the management pilot flew.

4. Disputes arising from the application of Section 9.A.2. and A.3., shall be resolved as provided in Sections 20 and 21. In no event shall the Company be required to pay a trip guarantee pursuant to Section 9.A.2. and A.3., more than once.

5. Section 9.A.2. or A.3., shall not apply to the following non-revenue flights, except to the extent that a line pilot previously assigned is bumped from that flight: a. publicity flights; b. scenic flights; c. ferry flights; d. experimental flights; e. engine, instrument, radio or acceptance test flights; f. humanitarian flights; g. maintenance flights.

6. The provisions of Section 9.A.2. and A.3., shall not apply to a trip(s) assigned to a management pilot pursuant to Section 25.P., provided such assignment is made within 49 hours of showtime for thea domestic trip, or within 13 hours of showtime for an international trip. Trips shall not be held out of open time to permit assignment under this paragraph.

7. The Company will provide a means, via VIPS or successor automation, for each pilot to indicate his willingness to operate humanitarian or publicity flights (PDH assignments) for per diem only, and without any other compensation of any kind. To the extent that PDH assignments are made, those assignments will be made subject to the following, and in lieu of the normal assignments orders prescribed by Section 25.G.: a. PDH submissions shall be handled on the same bases as for VLT

submissions, under Section 25.N.1.; b. PDH assignments shall be made on the same bases as for VLT

assignments, under Section 25.N.2.; c. The VLT assignment limitations contained in Section 25.N.3.a. through

f. shall also apply to PDH assignments.

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B. Bid Period Report 1. The Company shall provide to the Association a bid period report of all

revenue trips, or portions thereof, covered by this Agreement, performed by pilots other than line pilots. Such report shall include: a. The pairing number, base, equipment and date; b. Name and employee number of the pilot who flew the trip; c. Name and employee number of the pilot who received compensation

under Section 9.A.2., if applicable; and d. Amounts paid or credited to the Association pursuant to Section

9.A.3., if applicable, and the rate of pay and credit hours used to calculate such payment.

2. If applicable, the Company shall submit a negative bid period report. 3. The report referred to in Section 9.B.1., shall be submitted no later than

30 days following the close of the bid period to which it pertains. C. Except for pilots assigned to the flight test group, line pilots shall not be required

to conduct engine-out ferry, test or experimental flights. D. Except for line pilots assigned to the flight test group who may be required to

hold and maintain multiple ratings and qualifications, no line pilot covered by this Agreement shall be required by the Company to maintain currency in more than 1 type rating. This paragraph shall not be construed to prohibit the Company from requiring pilots to maintain qualifications in aircraft with a common type rating.

E. Flight Project Specialist (FPS) and Technical Advisor/Aircraft (TAA) 1. The duties and conditions of a FPS/TAA shall be at the discretion of his

Flight Test/Standards Managermanager. Such conditions may include but shall not be limited to dual aircraft and/or seat qualifications, and any attendant special training and certification required. However, those duties and conditions may not contradict provisions of this Agreement.

2. FPS/TAA shall bid for and be awarded a bid line for flying purposes or “pay only,” as determined by his Flight Test/Standards Managermanager, in his primary crew position. For purposes of Section 9.E., an FPS’s “primary crew position” means the crew position in which the pilot is currently performing his line flying activities, (i.e., seniority bid position). Unless released to the line for an entire bid period by his Flight Test/Standards Managermanager, a FPS/TAA shall bid “pay only,” and shall be awarded a BLG/RLG and compensated as follows: a. In addition to all other compensation to which he is entitled, an FPS/TAA

shall receive a bid period override commencing with the first month in

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the program. If anAn FPS/TAA is sick for anon extended time (90 days or greater) and issick leave, incapable of performing duties as assigned, Bid Period Override will be stoppedshall have his FPS/TAA override suspended effective 90 days from the date he called sickfirst day of the bid period following his sick election in VIPS. His Bid Period Override will be resumed when the pilot is off sick status. The bid period override shall be based on the number of consecutive years of service as a Captain or First Officer/Second Officer FPS/TAA as follows: i. Captains

(a) Year 1: $1,300 (b) Year 2: $1,400 (c) Year 3: $1,500 (d) Year 4 and above: $1,600

ii. Second Officers (a) Year 1: $600 (b) Year 2: $700 (c) Year 3 and above: $800 Year 1 = $1,500 Year 2 = $1,600 Year 3 = $1,700 Year 4 and above = $1,900

b. Passover Pay for FPS/TAAs i. An FPS/TAA shall be entitled to passover pay if the following

prerequisites are met: (a) he bids for a higher paying crew position and is awarded that

position; and (b) a junior pilot is activated into that crew position as a result of a

vacancy bid award on the same or a subsequent posting. ii. If an FPS/TAA is entitled to passover pay in accordance with Section

9.E.2.b.i., (above), such passover pay shall be calculated as follows: (a) beginning when the junior pilot is activated into the crew position

that generated passover pay; and (b) ending upon the earlier of:

1. the FPS/TAA’s activation into a new crew position; or

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2. the FPS/TAAs withdrawal from training for a new crew position.

iii. The payment and, if applicable, repayment of passover pay due in accordance with Section 9.E.2.b.i., shall be administered as provided in Section 24.D.2.c.

b. c. An FPS shall receive an additional $300 per bid period override if he is required to maintain qualification in more than one aircraft, or as both a first officer and second officer.

c. d. An FPS/TAA who performs relatedFPS/TAA duties on a day(s) off in excess of the duty requirements contained in Section 9.E.6.5.b., shall be compensated as follows:

i. For work involving flight deck duties, a pairing shall be constructed and the pilot shall earn trip guarantee at 150% of his normal pay rate, when he blocks out on such pairing; and

ii. For each additional work day not involving flight deck duties he shall earn R-day value.

iii. Failure to block out will result in showpay. 3. An FPS/TAA that wisheswho elects to resign from the programhis position

must notify the Flight Test/Standards Managerhis manager at least 3 bid periods in advance. a. the notification period may be reduced at the discretion of the Flight

Test/Standards Manager. b. the FPS/TAA may be retained in the program for up to 3 months beyond

his desired resignation date at the discretion of the Flight Test/Standards Managerhis manager, or 6 months by mutual consent.

4. FPS/TAAs hold their FPS/TAA positions at the discretion of the Flight Test/Standards Managerapplicable manager.

5. The crew position of an FPS/TAA who resigns or is removed from the FPS/TAA program shall be determined as follows: a. If the FPS/TAA does not hold a bid award for a different crew position,

he shall remain in his current crew position. b. If the FPS/TAA holds a bid award for a different crew position or, would

have been awarded such different crew position but for his FPS/TAA status (pursuant to Section 9.E.2.b.) and is receiving passover pay based on such crew position, the following shall apply:

i. In those cases where a training date has already been assigned, the FPS/TAA will proceed to training as scheduled.

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ii. In those cases where a training date has not been assigned, the Flight Test/Standards Manager will arrange a class date and communicate that date to the FPS/TAA.

5. 6. During each bid period, the Company shall construct a work day schedule for each FPS/TAA, as follows: a. An FPS/TAA shall have 5 inviolate days off (which may be not more than

2 blocks). He may provide primary and secondary requests regarding which specific days shall be his inviolate days off, and the Company shall accommodate those requests in seniority order. The Company shall make all reasonable efforts to award a pilot’s requested days off by seniority.

b. The maximum number of duty days on an FPS/TAA’s bid period schedule shall not exceed the maximum number of R-days in the bid period plus. In addition, an FPS/TAA may have up to 5 days of carryover, if bid. Carryover days will be paid only if work is available, as determined by the Flight Test/Standards Managermanager.

c. If an FPS/TAA is working consecutive months in pay- only status, he may work the carry over portion in either month, provided enough work is available, as determined by the Flight Test/Standards Managermanager.

d. An FPS/TAA, bidding in a “pay only” status, shall be notified of his bid period schedule by 1700 LBT on the Friday prior to the beginning of the bid period.

e. Additional work days may not be scheduled without an FPS/TAA’s consent. If the FPS/TAA performs assigned duties on a day previously scheduled free from duty, he shall be entitled to compensation as per Section 9.E.2.dc., as applicable.

f. HeAn FPS/TAA may operate open time assignments (e.g., M/U, VLT or DRF), in his primary crew position provided such assignments do not conflict with his scheduled work days. An FPS/TAA operating as a line pilot shall only operate revenue trips in his primary crew position.

g. When an FPS/TAA is positioning to or from a location other than his assigned base, the class of service for his deadhead will be as provided in Section 8.

h. Bid periods in which an FPS/TAA is scheduled for an awarded vacation shall be line flying bid periods to the extent practical. An FPS/TAA, however, who performs FPS/TAA duties during a month in which he has vacation shall have his bid period schedule reduced, day for day, by the number of days in his vacation period. His vacation bank shall be reduced by an R-day value for each day of vacation. An FPS/TAA:

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i. May adjust his vacation period by sliding it up to a maximum of 5 days in either direction, in accordance with Section 7.

ii. Shall receive, if requested, a 48 hour duty free vacation buffer at each end of his vacation period. A vacation buffer shall not extend outside the bid period(s) in which the vacation occurred. A vacation buffer shall not create a conflict with a trip that began in the previous bid period.

i. An FPS/TAA on sick leave shall have his sick bank reduced by R-day value for each work day missed due to sick.

6. Flight Project Specialist and Technical Advisor/Aircraft Pay Adjustment (FTPA) shall be administered in accordance with Section 11.Q. (Check Airman/Instructor Pilot Pay Adjustment (CIPPA)), as if the FPS/TAA were a Check Airman or Instructor Pilot.

7. Non-FPS/TAA Pilot Performing FPS Duties With his concurrence, a qualified pilot who is not an FPS may be assigned FPS duties. a. If his FPS duties conflict with a trip(s), the pilot shall be removed from

that trip(s) and shall earn trip guarantee. If the number of trip days removed exceeds the number of days on which the pilot performed FPS duties, he may be scheduled for additional FPS duties to make up the excess days.

b. If a pilot performs FPS duties on a day off, he shall be compensated as follows:

i. For work involving flight deck duties, a pairing shall be constructed and the pilot shall earn trip guarantee at 150% of his normal pay rate, when he blocks out on such pairing; and

ii. For each additional work day not involving flight deck duties he shall earn R-day value.

iii. Failure to block out will result in showpay. c. A pilot shall receive an additional $300 per bid period for each bid period

in which he performs FPS flight deck duties.

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F. Quality Assurance (QA) Program To the extent that the Company continues to operate a Quality Assurance (QA) Program, the following shall apply to any pilots designated as QA Observers: 1. QA Observers.

a. QA Observers shall not be Management pilots, Check Airmen, or Instructor Pilots.

b. QA Observers shall be designated as TAAs. c. A QA Observer shall be designated as an Additional Crew Member

(ACM) (for priority purposes only) on the FP/R for any flight on which he is assigned by the Company to perform duties associated with the QA Program. This designation shall not be construed as eroding the authority of a Pilot-in-Command (PIC) under relevant FAA regulations and interpretive guidance and/or under relevant provisions of the Company’s Flight Operations Manual concerning access to the cockpit.

2. QA Observations. a. Line checks, initial operating experience, or other training flights shall

not be used to conduct a QA Observation. b. Observation of cockpit activities shall be conducted on a voluntary basis.

i. Before conducting a QA Observation, the QA Observer will first ask the PIC for permission to conduct a QA Observation.

ii. If the PIC decides not to participate in the QA Observation, the QA Observer will not conduct an observation during the flight.

iii. The QA Observer may occupy a cockpit jumpseat, subject to the PIC’s authority concerning access to the cockpit.

iv. If a cabin (i.e., non-cockpit) jumpseat is available, the QA Observer may occupy that cabin jumpseat on the flight.

c. Identified information related to a QA Observation, including any data, a pilot’s statements, performance, and actions observed (including a PIC’s decision to not participate in the QA Observation) shall not be used in any Section 19 or related Section 21 proceeding.

d. Identified information related to a QA Observation including any data, a pilot’s statements, performance, and actions observed (including a PIC’s decision to not participate in the QA Observation) shall not constitute grounds for placement in any Section 11 process, any Enhanced Oversight Program, or any other similar program and/or training.

3. The QA Program shall ensure the confidentiality and anonymity of individual crewmembers. Under no circumstances should it be possible to connect or

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otherwise identify individuals or a crew that operated a flight on which a QA Observation was conducted.

4. QA Program Informational Meetings. a. Unless otherwise agreed by the parties, the Company and the

Association (two representatives designated by the MEC Chairman, or their designees) shall meet on at least a quarterly basis for an in-depth briefing on the QA Program (QA Program Informational Meeting). The briefing will include current issues being studied along with any operational or procedural changes made because of the QA Program, since the last QA Program Informational Meeting.

b. The Association’s representatives shall be provided with de-identified data collected pursuant to the QA Program and the results or analyses of those data pertaining to items being discussed during the QA Program Informational Meetings.

c. The Association’s representatives must sign an agreed-upon non-disclosure agreement prohibiting the use or disclosure of QA Program data to anyone other than the Company or ALPA without the written consent of the Vice President of Flight Operations.

d. The Association’s representatives must also complete training, to be provided by the Company, on the Company’s QA Program, including how to collect and analyze QA Program data.

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Letter —Quality Assurance Program9

[Date TBD] Captain Jim Bowman FedEx Express Vice President, Flight Operations 3131 Democrat Road, Bldg. C Memphis, TN 38118 Dear Captain Bowman: The purpose of this letter is to confirm the Association’s commitments to the Company concerning the Company’s Quality Assurance (QA) Program. As you know, the Association is generally supportive of Flight Operations initiatives that have, at their core, the goal of improving our flight operations. In light of the way we resolved the Association’s contractual issues concerning the QA Program in Section 9 of the Basic Agreement, the Association agrees to support the QA Program and its operation. The Association will encourage Pilots-In-Command (PICs) to permit QA Observers to conduct in-flight QA observations, including permitting those QA Observers to have access to the cockpit. I am pleased that we were able to resolve both the Association’s and the Company’s concerns about the QA Program and that we are able to move forward on this initiative in a collaborative and cooperative manner. Sincerely, Captain Charles W. Dyer Fedex Master Executive Council, Chairman

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Pilots Transferred to Management or Other Duties 10

SECTION 10 PILOTS TRANSFERRED TO MANAGEMENT OR OTHER DUTIES A. A pilot who transfers to or occupies a management position within the

Company, or who assumes duties for Air Operations other than flying covered by this Agreement, shall retain and continue to accrue seniority, longevity, insurance and retirement benefits consistent with this Agreement.

B. A pilot covered by Section 10.A., may not bid and be awarded a published line of flying covered by this Agreement.

C. A pilot returning from duty or assignment covered by Section 10.A., shall be awarded ahave his crew position determined as provided in Section 10.D., provided that: 1. the pilot has not forfeited his seniority as provided in Section 22.B.1.e.

(failure to return after leave of absence); and 2. the pilot has not been discharged by the Company; and 3. the pilot meets the requirements outlined in Section 24.A.3. (medical and

professional certifications), for the appropriate crew seat. D. When a pilot returns from duty or assignment covered by Section 10.A., to

flying covered by this Agreement, the Company shall designate the pilot as eligible to bid for a bid period flying schedule by listing his name in seniority order in the appropriate bid period package. Such pilot’s crew position and training shall be determined as follows:in the same manner as a pilot returning from a leave of absence pursuant to Section 13.A.6. 1. If no crew position postings occurred while he was in a position covered

by Section 10.A., he shall remain in his current crew position. 2. If 1 or more crew position postings occurred during that time, he shall be

awarded a different crew position, if applicable, based upon those postings consistent with his seniority and his updated standing bid preference. However he shall not be awarded a crew position at an FDA if such award would cause an excess at the FDA.

3. If the pilot is awarded a new crew position, he will resume and bid in his last qualified crew position until he is activated into his new crew position.

E. A pilot who returns to flying covered by this Agreement shall receive training, as necessary, as provided in Section 11.

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Training11

SECTION 11 TRAINING Definitions: AIRCREW PROGRAM DESIGNEE (APD) An APD is a Check Airman who is authorized by the FAA to conduct airman certifications on behalf of the Administrator. ASSIGNED TRAINING BASE An Instructor Pilot’s or Check Airman’s operational, training-related work location, whenever that location is not his flying base. CHECK AIRMAN A pilot qualified to administer evaluations. Aircrew Program Designee (APD), Line Check Airmen (LCA), Proficiency Check Airmen (PCA), and Standards Check Airman (SCA) are each a type of Check Airman. A Check Airman may be qualified as more than one type (e.g., dual qualified). CONSENSUS OF TRAINING REVIEW BOARD (TRB) The voluntary agreement of all members of the TRB. It does not require that all members believe that a particular recommendation is the most desirable solution, but that the result falls within each member’s range of acceptable solutions for that matter. The members of the TRB shall strive to reach consensus on any matter within their discretion. DISTANCE LEARNING Learning that occurs when the trainee and instructors are separated by space and/or time. Distance learning courses are taught using various methods, including online technology, software, audio/video, videoconferencing, teleconferencing, or written material. Computer Based Training (CBT), and Learning Management System (LMS), are types of distance learning. DUAL QUALIFIED CHECK AIRMAN A Check Airman who holds LCA and PCA qualifications. ENHANCED OVERSIGHT PROGRAM (EOP) A program specifically created to improve air safety at the Company by providing a method of identifying pilots who have demonstrated performance deficiencies or have experienced failures in the training environment.

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INSTRUCTOR A Check Airman, Instructor Pilot, or professional instructor selected by the Company to perform instructional duties. All instruction after the Procedures Validation (PV) shall be conducted by an Instructor who holds an Airline Transport Pilot (ATP) certificate. INSTRUCTOR PILOT A pilot selected to perform instructional duties in the training center. Instructor Pilots must be qualified on the airplane in which they instruct. INITIAL CADRE CHECK AIRMAN Pilots that the Company desires to be employed as Line Check Airmen (LCA) and Proficiency Check Airmen (PCA) to facilitate the introduction of a new aircraft. FLEX ASSIGNED TRAINING BASE An operational work location during pay only months for flex instructor/PCA and/or SCA which may be different than his flying base by mutual consent of the pilot and the Company. INFLIGHT RELIEF OFFICER A pilot operating in the capacity of an RFO or RF2. OFF SITE TRAINING (As applied to instructors) Any training conducted at a location other than a flex instructor/PCA’s/SCA’s base or Flex Assigned Training Base. INSTRUCTIONAL BID PERIOD A bid period during which an Instructor Pilot or Check Airman is in a pay only status for the purposes of conducting training. OFF SITE TRAINING (As applied to students) Any training conducted at a location other than a pilot’s base. LINE CHECK A line check is an operational evaluation event conducted to observe a pilot’s performance of his duties and responsibilities during line flights dispatched under FAR Part 121.

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PHASE LINE CHECK The check ride/qualification event(s) in each phase of Initial, Transition, and Upgrade training. AIRMAN (LCA) A pilot qualified to administer line checks and conduct OE training. PROFICIENCY CHECK (PC) ITU/LINE OPERATIONAL EVALUATION QUALIFICATION (LOE) / MANEUVERS EVALUATION (ME) A check ride/qualification event which shall be conducted by a PCA/SCA or the FAA. Maneuvers are specified in applicable FARs, AQP documents and the FOTM. Maneuvers may be reaccomplished but no training may be conducted. PROFICIENCY CHECK (PC) RECURRENT/CONTINUING LINE OPERATIONAL EVALUATION CONTINUING QUALIFICATION (CLOE) /RECURRENT MANEUVERS EVALUATION (RMEVALIDATION QUALIFICATION (MV) A check ride/qualification event to maintain or reestablish a pilot’s qualification in a crew statusAn evaluation/validation event which shall be conducted by a PCA/SCACheck Airman or the FAA. ManeuversEvent sets/maneuvers are specified in applicable FARs, and AQP source documents and the FOTM. Maneuvers may be reaccomplished and. Events sets/maneuvers may be re-accomplished in accordance with the FARs and AQP source documents, but no training may be conducted. If conducted in a flight simulator for a pilot in a qualified status, the evaluation shall be preceded by a warm-up simulator period. PROFICIENCY TRAINING (PT) /CONTINUING MANEUVERS VALIDATION CONTINUING QUALIFICATION (CMV) A check ridevalidation/qualification event to maintain or reestablish a pilot’s qualification in a crew status, which shall be conducted by a PCA/SCA or the FAAan Instructor Pilot. Maneuvers are specified in applicable FARs,FAR and AQP source documents and the FOTM. There are no limits to the number of maneuvers which may be reaccomplished and training that may be conducted within the event, but. This is a train-to-proficiency event; however, proficiency in all maneuvers must be achieved within the allotted time for the event. OFF SITE TRAINING Instructor Pilots and Check Airmen: Any training conducted at a location other than an Instructor Pilot’s/Check Airman’s base or Assigned Training Base. Students: Any training conducted at a location other than a pilot’s base.

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OPERATING EXPERIENCE (OE) A pilot’s operating experience is the final curriculum segment in a qualification or requalification curriculum. Operating experience provides hands-on experience in performing the duties of a specific crew status under the supervision of a current and qualified evaluator (Check Airman). Operating experience is conducted during actual flight operations. Operating experience is complete when the individual is recommended for a line check. PROFICIENCY CHECK AIRMAN (PCA) A Check Airman qualified to administer simulator validations/evaluations. QUALIFIED (for Section 11 purposes only) Has successfully completed the Company’s certification program, approved by the FAA, for a particular crew status. TRAINING FOR PROFICIENCY EVENT An event to establish, maintain, or demonstrate a pilot’s proficiency in which end level proficiency is not required in order to progress (e.g., WUremedial training). The type and number of maneuvers shall be tailored to the specific objectives. Training may be conducted by any qualified instructor. There are no limits to the number of maneuvers which may be reaccomplished andre-accomplished, nor to the training that is conducted within the allotted time/ for the event. TRAINING TO PROFICIENCY EVENT A training event to maintain or demonstrate a pilot’s proficiency in which end level proficiency is required in order to progress (e.g., PTSV/ESV/PV/CMV). The type and number of maneuvers shall be tailored to the specific objectives of the training. TrainingSV/ESV/PV training may be conducted by any qualified instructor. Unless otherwise specified in this Agreement, CMV training shall be conducted by an Instructor Pilot. There are no limits to the number of maneuvers which may be reaccomplished andre-accomplished, nor to the training that may beis conducted within the allotted time/ for the event.

TRAINING TO PROFICIENCY PHILOSOPHY It is recognized that all pilots do not learn at the same rate and there may be disparities in the experience level and background of pilots entering the same course. Training may be extended beyond planned hours in all phases of ITU and in requalification training, by the TRB, if there is consensus that reasonable progress is being made and there is a likelihood of success.

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TRAINING REVIEW BOARD (TRB) A board established by the Association and the Company for the purpose of reviewing and making decisions and, where appropriate, referrals and recommendations concerning training. The TRB shall be comprised of two members each from the Association and the Company. The TRB members shall consist of the MEC Training Committee Chairman, the Human PerformanceMEC Pilot Assistance Group Chairman, the Company’s Managing Director of FlightAir Operations Training and the Managing DirectorSenior Manager of Flight Standards. If any of the Company’s members are not on the Federal Express Pilots’ Master Seniority List, the Company will appoint a TRB member who is aon the Federal Express Pilots’ Master Seniority List holder. The Association or the Company may appoint a substitute TRB member(s) in any particular case. When dealing with situations involving individual pilots, the TRB shall be governed by a train to proficiency philosophy. Individual pilots will be dealt with on a case by case basis, without regard to past precedent. If reasonable progress is being made and there is reason to believe the pilot will ultimately be successful, training is usually extended. The overall goal of the TRB is the continuing improvement and quality assurance of the Company’s training program. The TRB shall make its decisions and recommendations based on consensus. A. The Company and Association shall hold meetings not less than quarterlysemi-

annually, or more frequently if requested by the Company or MEC Chairman, to share data, statistics, and information related to training standards. 1. Establishment of training requirements and performance standards shall be

specified in the appropriate Flight Operations Manual (FOM), the Flight Operations Training Manual (FOTM), and AQP source documents or in the Training and Procedures section of the applicable Company Flight Manual (CFM).

2. The Company shall meet with the ALPA Training Committee regarding training requirements included in the FOTM and AQP source documents at times and locations agreed upon by both parties. Any proposed changes to the above referenced manuals and

3. When AQP source documents are revised, the Company shall provide copies of the revised documents or a list of changes for the documents shall be provided to the MEC Training Committee and Representation Department at least two2 weeks prior to submission to the FAA and/or proposed at least 30 days prior to the effective date, whichever is earlier. Any changes shall be agreed upon by the of the document revisions, when feasible. a. The Association’s Training Committee Chairman and the Managing

DirectorsDirector of FlightAir Operations Training and Flight Standards. shall agree upon any changes.

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b. In the event that the parties fail to reach an agreement, the issue will be submitted to the Vice President of FlightAir Operations Training for resolution. Provided the required notice has been given, if this process is not completed before the projected date of implementation, the Company may implement the changes.

B. Classification and Special Instruction Materials 1. The following comprise the classifications of pilot training:

a. Initial new hire training; b. Initial training; c. Transition training; d. Upgrade training; e. Downbid training; f. e. RecurrentContinuing qualification training; g. f. Requalification training; h. g. Other training:

i. i. Differences training; ii. Crew resource management ii. Human factors training; iii. iii. Training for proficiency; iv. iv. Training to proficiency; v. Other training v. Training required by FAA regulations or Company policy.

2. Special instruction materials are designed to allow pilots to review recent developments or to, address FAA suspense items. Materials shall not exceed 45 minutes in length and shall not be required more often than 4 times per year. , or complete required corporate training (e.g., workplace violence, information security, EEO, etc.). a. The aggregate total of special instruction materials shall not exceed 3

hours in length measured over a calendar year. The Company and the Association’s Training Committee shall jointly determine the methodology for determining compliance with this provision.

b. The Company shall provide notice of the issuance of special instruction materials via Flight Crew Information File (FCIF) or other communications methods to be designated by the Company, and pilots shall be given a deadline, but not less than 30 days, to review/accomplish the materials.

c. Failure to complete that material shall result in unpaid removal from any activities until completion of the material, except in cases of exceptional circumstances as determined in the sole discretion of the System Chief Pilot, or his designee. The Company shall provide a VIPS notification to

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all pilots who have not completed such training at least 5 days prior to the deadline.

C. Pilot Qualifications For Training 1. A pilot entering training for a Captain or First Officer crew seat shall possess

and maintain currency of the following certificates: a. An Airline Transport Pilot Certificate (ATP) or a current FAA certification

of successful completion of the ATP written examination; and b. An FAA First Class medical certificate for that crew seat, as provided in

Section 15.A. (Medical Standards). b. An FAA medical certificate for that crew seat, as provided in Section

15.A. (Medical Standards). 2. First Officer Training

a. A pilot entering training for a First Officer crew seat shall possess and maintain currency of the following certificates:

i. At least a Commercial Pilot Certificate with Airplane Multi-Engine Land and Instrument Ratings; and

ii. An FAA medical certificate for that crew seat, as provided in Section 15.A. (Medical Standards).

b. A First Officer who will be type rated as a result of that training shall possess and maintain currency of the following certificates:

i. An Airline Transport Pilot Certificate (ATP) or an FAA certification of successful completion of the ATP written examination; and

ii. An FAA medical certificate for that crew seat, as provided in Section 15.A. (Medical Standards).

3. A pilot entering training for a Second Officer crew seat shall possess and maintain currency of the following certificates: a. A Flight Engineer (Turbojet) Certificate or a current FAA certification of

successful completion of the Flight Engineer (Basic and Turbojet) written examination; and

2. 4. The provisions of Section 11.C.1., C.2. and/or C.3.,1. may be revised by the Company to the extent necessary to comply with governing law and regulation.

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D. Notice of Training 1. Except as provided in Section 24.D.4. (ITU Training Activation/Procedures),

a A pilot shall receive notification at least 72 hours prior to the close of the bid for the period in which the pilot is scheduled to beginof his initial, transition, or upgrade (ITU) training. start date consistent with Section 24.D.4. Notice shall be given through FCIF or other communications methods to be designated by the Company. a. The Company may revise a pilot’s training commencement date. b. A revision of the start date which occurs after the close of the bid for the

period in which the training was scheduled to begin requires the approval of the pilot; rejection of such change shall constitute a waiver of entitlement to passover pay until the pilot is activated in his new crew position.

2. Continuing Qualification Training 2. Each bid period package shall contain a list of pilots who require recurrentcontinuing qualification training or differences training not in conjunction with any other training. The type of training required and, if applicable, available class dates and times (sessions) shall be communicated in VIPS or through other communication methods to be designated by the Company. a. Dates and times (sessions) available for that training shall be published

in the bid period package. b. A pilot shall bid for specific training sessions through VIPS. The

Company shall process those bids in seniority order as provided for in Section 25 25.C.11.

3. The Company shall provide pilots with 5 days’ notice in all classifications of training other than those referred to in Section 11.D.1. and D.2. (above).

E. Scheduling of Training Events for Trainees 1. Ground Training Events

a. 1. A pilot shall bid for specific recurrentcontinuing qualification or differences training sessions. Those bids shall be processed as provided in Section 25. C.11.

b. 2. AWith the pilot’s consent, a pilot may be scheduled for training, other than ITU training, on a day previously scheduled free of duty provided that he still receives the minimum number of days free of duty for the bid period. This paragraph shall not apply to training scheduled by the pilot (e.g., Computer Based Training - CBTdistance learning).

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c. 3. A pilot shall not be assigned to any training event excluding initial operating experience (IOEOE) or required to travel to or from training on the day before Thanksgiving Day, Thanksgiving, Christmas Eve, Christmas Day, New Year'’s Eve, or New Year'’s Day except: i. a. Pilots may be assigned to travel from training to base on the day

before Thanksgiving Day, Christmas Eve and New Year'’s Eve, provided they are scheduled to arrive by 1600 LBT; and

ii. b. Pilots may be scheduled for simulator training at their base on the day before Thanksgiving Day, Christmas Eve, and New Years'’ Eve provided the training is scheduled to terminate prior to 1400 LBT on that day.

iii. c. These restrictions may be waived at the pilot’s option. d. 4. A pilot shall not be required to train or travel to or from training, other

than ITU training, during his awarded vacation period(s). A pilot removed from a trip(s) for vacation shall not have any recurrent training scheduled during the scheduled days of the trip(s) or the scheduled days off between those trips in his pre-month or due-month unless he initiates a request for recurrent training date(s). This paragraph shall not apply to the scheduling of additional training for a pilot who has incurred a training failure.

e. 5. A pilot shall have at least the following number of days off during initial new hire and ITU training, excluding IOEOE: i. a. A minimum of 2 consecutive days off within each 7 consecutive

days of training in the ground phaseSystems and Procedures phases.

ii. b. In the simulator phaseManeuvers and Operations phases, the Company shall plan to give the pilot 1 day off following 4 consecutive days of simulator or aircraft training; in every case, a pilot shall receive at least 1 day2 days off following 5 consecutive days of such training.

iii. c. AFor initial and transition training programs that are scheduled for longer than 20 training event days (not to encompass OE), a pilot, other than a pilot in initial new hire training, shall receive one block of 6 consecutive days free from duty to be assigned near the midpoint of his scheduled ITU training program (not to encompass IOE).

iv. d. A new hire pilot shall receive 7 consecutive days free from duty following completion of IOEOE.

f. 6. A day of classroom training shall not be scheduled to exceed 8 hours excluding a 1 hour lunch break. A 5 minute break shall be provided during each hour of instruction. A 1 hour lunch break shall be afforded following approximately 4 hours of instruction. A day of CBT shall not exceed 8 hours for recurrent/continuing qualification and 6 hours for ITU.

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g. 7. When a pilot is assigned to train at a location other than his base, every day beginning with the first day of travel and ending on the day of return shall be considered a duty day for scheduling and compensation purposes. A pilot traveling to/from training shall be entitled to the following.scheduled for deadheads in accordance with Sections 8 and 12 as if he were deadheading to/from normal revenue line operations, and: i. a. If the deadhead block time does not exceed 2:30 hours, he shall

receive one day of travel to the off site location. Upon arrival at the training location, he shall be given a 12 hour duty free period prior to commencing any brief or training. ; and

ii. At the completion of any brief or training, he shall be given a 12 hour duty free period before being scheduled for return travel

b. If the deadhead block time is 2:30 hours or greater, he shall receive one day of travel to the off site location, and be scheduled in accordance with Sections 8, and 12, as if he were deadheading to normal revenue line operations. Upon arrival at the training location, he shall be given a 12 hour duty free period prior to commencing any brief or training.8. A pilot may be scheduled to deadhead to his base following training. He shall be scheduled in accordance with Sections 8, 12 and 25 with regard to travel and any duty following arrival at to his base.

h. 9. The following shall apply to a pilot receiving training in a simulator or flight training device (or aircraft in lieu thereof): i. a. He shall not be scheduled for more than 5 consecutive hours of

training, excluding brief and debrief. ii. b. After approximately 2:30 hours, a physiological comfort break shall

be provided. During training periods longer than 3 hours, he shall receive a break at approximately the mid-point of training, unless conducted in an aircraft.

iii. c. If in an aircraft, catering: (a) Catering will be provided in accordance with Section 5, as if the

training flight wereis a scheduled bid line trip. (b) Show time and release time shall be 1 hour prior to block-out and

30 minutes following block-in, respectively. iv. d. A pilot shall receive a duty free period of at least 12 hours between

each period of training. v. In ITU training, the pilot shall maintain his originally scheduled

simulator period over consecutive days. The Company may revise the period to either the immediate earlier period or immediate subsequent period, once during the consecutive days. Any further revision during the consecutive days is limited to a return to the originally scheduled simulator period. This paragraph shall not apply

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to extra training (ET) administered following a training failure, or to training administered following an “incomplete” event.

vi. e. The provisions of this paragraph do not apply to IOE.10. An IOE trip, including brief and debrief, shall comply with the duty limitations provided in Section 12 (Hours of Service), for the base from which the first operating (i.e., not deadheading) leg of the trip was scheduled. Duty limitations may be waived by the pilot up to optional assignment limitationsOE.

i. 11. Prior to and upon completion of ground school or simulator training, a pilot shall receive a minimum of 12 hours off. This buffer may be reduced operationally, by mutual agreement of the pilot and the duty officer.

12. A pilot shall not schedule or conduct CBT in conflict with any other scheduled activity.

13. Showtime and release time for aircraft training flights shall be 1 hour prior to block-out and 30 minutes following block-in, respectively. j. The Company shall not require a pilot to conduct or complete distance

learning or other special instruction materials within an individually customized time period other than a general deadline for the applicable group of pilots.

k. 14. Time limits and protection of days off and holidays contained in Section 11.E.1., except for Section 11.E.1.h.v., may be waived by mutual agreement of the pilot and the Company.

2. Flight Training Events/Operating Experience (OE) a. An OE trip, including brief and debrief, shall comply with the duty

limitations provided in Section 12 (Hours of Service), for the base from which the first operating (i.e., not deadheading) leg of the trip was scheduled. Duty limitations may be waived by the pilot up to optional assignment limitations.

b. A pilot shall receive a duty free period of at least 18 hours prior to the start of OE. Once a pilot’s OE has commenced his scheduling shall be governed by the provisions of Section 12.

c. Notwithstanding Section 12.B.1.a., the duty period containing the first operational leg (i.e., not deadheading) of OE shall have a showtime of 1:30 prior to scheduled block-out, for all pilots assigned to the duty period. For the purposes of Sections 4 and 12, these additional 30 minutes of showtime shall not be considered a standby period but will count as duty.

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3. Scheduling of Currency or Qualification Maintenance A pilot who requires a training or validation/evaluation event in order to maintain currency or qualification may be scheduled for that event on a day(s) previously free from duty with the pilot’s consent, provided he is not scheduled to exceed the minimum days off requirement as described in Section 25.D.1.b. The minimum day off requirement may be waived by mutual consent of the pilot and the Company.

F. Pay Forfor Training Pay for training shall be as provided in Sections 3 and 4 of this Agreement.

G. Performance Standards and Training Review Board G. 1. Performance Standards

1. a. A pilot shall not have completed CBT/LMS until he scores 100%. 2. b. The required minimum score on any written or electronic exam is 70%,

unless a higher score is required by the FAR’sFARs or AQP source documents.

3. c. Check ride/qualificationValidation/evaluation events will be recorded as either overall satisfactory (S), unsatisfactory (U) or marked as incomplete (I). An unsatisfactory (U) grade for any event shall not be given unless 1 or more specific tasks were not accomplished to performance standards. Tasks may be recorded as:

i. satisfactory or unsatisfactory or;ii. as specified in the FOTM or AQP source documents on an approved grading scale.If a first validation/evaluation event in any phase is unsuccessful, an instructor’s recommendation is required for the second validation/evaluation event in that phase.

H. 2. The Training Review Board (TRB) 1. General Decision-Making

The TRB is established to resolve situations involving individual pilots in training. The TRB shall be governed by a train to proficiency philosophy for pilots in training. Individual pilots will be dealt with on a case by case basis, without regard to past precedent. If reasonable progress is being made and there is reason to believe the pilot will ultimately be successful, training is usually extended. The overall goal of the TRB is the continuing improvement and quality assurance of the Company’s training program. The TRB shall make

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its decisions and recommendations based on consensus (i.e., “Consensus of the Training Review Board”).

2. The TRB shall be notified following the failure of any validation/evaluation event or failure to achieve any required recommendations. The appropriate training manager administers remedial training in accordance with TRB prescriptions.

3. The TRB shall meet to consider any of the following situations (for which there are no remedial training prescriptions): a. The election of a pilot to withdraw from training on or after the first day

of training; b. A failure of TRB assigned additional training c. A failure to be recommended for a validation/evaluation event; d. A second failure of an evaluation event; e. A failure to complete recurrent downbid training (Section 11.J.6.); f. At the discretion of the TRB, a failure of an evaluation event while

enrolled in the Enhanced Oversight Program (EOP); g. If a pilot is initially covered under the ASAP program, but is ultimately

excluded from the program as provided in ASAP MOU paragraph 11.f., his case shall be referred to the TRB for any necessary requalification training (as provided in Section 26.Y.4.); or

h. Training irregularities (e.g., ITU, recurrent) that occur during a pilot’s probationary period, provided however, that the TRB’s involvement does not limit the Company’s rights to apply Section 22.B.1.f.

4. Except in extenuating circumstances, the TRB shall confer within 2 business days following the occurrence of an event that requires a TRB meeting. a. The TRB shall conduct activities in strict confidence. TRB meetings

shall be restricted to TRB members unless all TRB members agree otherwise, on a case by case basis. If a non-TRB member(s) is permitted at a TRB meeting, such attendee(s) shall be bound by the same confidentiality requirements that are applicable to the TRB members.

b. The Company shall provide the TRB members and the pilot with copies of the pilot’s training records and any other documents pertaining to the matter no later than 2 business days prior to the TRB meeting.

c. The pilot shall have the right to make a presentation and to offer input to the TRB. The pilot may be required to appear before the TRB. Any time a pilot appears before the TRB, at the pilot’s request, an Association representative may observe the proceedings during the time of the pilot’s presence.

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d. When necessary, Association TRB members shall be removed from activities to attend TRB meetings as provided in Section 18.A.2.a.

5. a. The TRB shall have broad discretion in the action to be taken by individual pilots and the Company. TRB meetings shall occur in the manner agreed upon by TRB members (e.g., in person, telephonically, electronically, etc.). Action may include, but is not limited to: a. i. additionalAdditional training; b. ii. changeChange of instructor; c. iii. changeChange of support pilot; d. iv. changeChange of training times; e. v. changeChange of training location; f. vi. removalRemoval of a pilot from ITU/ recurrent training; g. Crew position freezes; h. Crew position reassignment consistent with the pilot’s seniority, based

upon the same or a subsequent posting; i. vii. individualIndividual plans for requalification training. This, which may

include crew position assignment, duration of freeze, and/or training plan;

j. viii. referral to MEC Human Performance Group;Referral to MEC Pilot Assistance Committee

k. ix. referralReferral to System Chief Pilot (SCP);x. referral to the Vice President, Flight Operations, who shall address his case as circumstances warrant.;

l. xi. pilot counseling;Pilot counseling; xii. other.

b. TRB Operations i. TRB Notification

The TRB shall be notified following the failure of any checkride/qualification event or failure to achieve any required recommendation.

ii. TRB Review m. Enrollment in the EOP; n. The TRB shall review and address each case.Other.

6. c. In the absence of a consensus concerning TRB recommended actions, the SCP shall use his best efforts to broker a consensus among the members of the TRB. In the event consensus can notcannot then be reached, the SCP shall determine the resolution. In the event the SCP is not on the Federal Express Pilots’ Master Seniority List, the Company shall

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designate a member who is on the Federal Express Pilots’ Master Seniority List to perform these functions.

7. d. If a pilot disagrees with the TRB’s decision, the pilot may appeal such to the SCP.

8. e. If the TRB authorizes additional training and if, after additional training, the pilot is still unable to progress further in the training program or unable to pass the required tests or checksvalidations/evaluations, the pilot’s matter will be referred back to the TRB for disposition. When a case has been referred back to the TRB after an earlier decision has not produced the desired results, the TRB may direct additional actions, (including referral to the SCP or Vice President).f. Except in extenuating circumstances, the TRB shall meet within 24 hours following the occurrence of an event that requires TRB review. The TRB shall conduct activities in strict confidence. TRB meetings shall be restricted to TRB members unless all TRB members agree otherwise, on a case by case basis. If a non-TRB member(s) is permitted at a TRB meeting, such attendee(s) shall be bound by the same confidentiality requirements that are applicable to the TRB members. Prior to the TRB meeting, the TRB members and the pilot will be provided with copies of his training records and any other documents pertaining to the matter before the TRB. The pilot shall have the right to make a presentation and to offer input to the TRB. The pilot may be required to appear before the TRB. Any time a pilot appears before the TRB, at the pilot’s request, an Association representative may observe the proceedings during the time of the pilot’s presence).

9. g. The deliberations and decisions of the TRB shall be non-precedential and shall not be discoverable, referenced or introduced as evidence in any grievance proceeding or arbitration involving any pilot other than the pilot to whom the TRB deliberations and decisions pertain.

10. h. Pilots frozen in their crew position or in any way restricted from freely exercising their seniority rights as a result of a TRB decision shall not be entitled to passover pay. The TRBshall not be eligible to participate in System Bids that close during such freeze. Upon written request from the pilot, the SCP shall review crew position freezes approximately at the midpoint of the freeze for reconsideration.

I. Enhanced Oversight Program (EOP) 1. i. The TRB shall meet:EOP exists to ensure that pilots who have

demonstrated, notable deficiencies during training or evaluation events maintain the required Company standards after remediation has been completed.

i. at the request of the Company;

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ii. at the request of the Association; iii. for the failure of an ITU validation or qualification event; iv. after receiving TRB assigned additional training, for the failure

to be recommended for an ITU validation or qualification re-check ride/qualification event, or failure to be recommended for a Line Check in IOE or any phase check/qualification event in aircraft training;

v. for failure(s) to be recommended as outlined in Section 11.K. and

vi. for failure to complete requalification training. j. When necessary, Association TRB members shall be removed from

flying to attend TRB meetings as provided in Section 18.A.2.a. H. Training During a Pilot’s Probationary Period

1. The resolution of irregularities, that occur in any training (e.g., ITU, recurrent, etc.) during a pilot’s probationary period, shall be at the discretion of management and shall not involve the TRB process.

2. Pilots on probation require an instructor’s recommendation prior to any phase check in ITU.will normally be enrolled into the EOP following a validation/evaluation grade of unsatisfactory. The Training Review Board (TRB) may also enroll a pilot in the EOP.

I. Initial, Transition and Upgrade Training Failures 1. General

a. If a first phase check/qualification event in a ground or simulator training phase is unsuccessful, an instructor’s recommendation is required for the second check/qualification event in that phase.

b. An instructor’s recommendation is required prior to any phase check/qualification event in aircraft training or initial operating experience regardless of whether additional training time has been utilized

3. The period of the EOP enrollment will normally extend 12 months from the date successful remediation is complete. However, should a subsequent evaluation/validation failure occur during the pilot’s enrollment period, his enrollment may be extended to a date beyond the initial 12 months as determined by the TRB.

4. Pilots entering the EOP will be advised via VIPS notification of their enrollment. Assuming no deficiencies are noted during a pilot’s EOP enrollment, the pilot will be released from the EOP and advised via VIPS notification.

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5. The 4 principal members of the TRB will comprise the Enhanced Oversight Group (EOG), and will have direct access to, and will jointly manage the EOP list. The EOG will confer on a quarterly basis to review the EOP list and to ensure its accuracy.

J. 2. Training Withdrawals and, Removals, Freezes and Reassignments 1. a. A pilot may elect to withdraw from training at any time. If his withdrawal

is not accomplished as provided in Section 11.I.2.f. (below), this withdrawal shall be addressed as provided in Section 11.I.3. (below).

2. If the pilot elects to withdraw from training prior to his award or assignment to a monthly training slot, the election will be reviewed by the System Chief Pilot (SCP). a. If extenuating circumstances exist, the pilot will return to his current crew

position and shall incur no training freeze. b. The TRB may remove a pilot from ITU training when reasonable

progress is not being made or when success is not likely. When a pilot’s case has been referred to the SCP, the SCP may remove a pilot from ITU training.If extenuating circumstances do not exist, the pilot will return to his current crew position, and may incur a crew position freeze of no longer than 3 years from the date of the election of the withdrawal.

c. A pilot will be referred to the TRB if he fails two Phase Checks in any one phase of ITU training.

3. d. The TRB willIf the pilot elects to withdraw from training after his award or assignment to a monthly training slot, the election will be referred to the TRB, who will meet and review it. Provided that the TRB agrees with the election, the TRB shall make decisions concerningregarding requalification for all withdrawals and removals. If necessary, the TRB may decide to consult and/or refer to the SCP as provided for in Section 11.G.2.a.vii. and ix.e. If, due to extenuating circumstances, a pilot withdraws from a training cycle with the approval of the Vice President, Flight Operations, or his designee, that pilot will return to his current crew position and shall incur no trainingbut shall also refer the case to the SCP for possible imposition of a crew position freeze (of no longer than 3 years from the date of the withdrawal election).

4. f. If, due to a withdrawal or removal from training, a pilot would otherwise return to his current crew position but is unable to do so because the position is unavailable for one of the following reasons, his situation shall be addressed as provided in Section 11.I.2.gJ.5. below. A pilot'’s current crew position is unavailable if: a. i. between the closing date of the bid on which he was awarded the

position for which he is training and the date on which he would otherwise return to his current crew position, a more senior pilot has

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been involuntarily excessed from the current crew position of the pilot in training; or

b. ii. his current crew position no longer exists (e.g., his domicilebase has closed); or

c. iii. he is ineligible to hold that position due to a legal restriction (e.g. regulated age, medical restriction).

5. g. If a pilot is unable to return to his current crew position because that position is unavailable as provided in Section 11.IJ.2.f. (4. above), the following shall apply: a. i. he shall be awarded a crew position in the same crew status as his

most recent crew position consistent with his updated standing bid preference, provided he has sufficient seniority to hold that position; or

b. ii. if he is unable to designate a crew position in accordance with Section 11.IJ.2.g5.a.i (above), he shall be awarded a crew position based uponhe chooses, consistent with his seniority and his updated standing bid preference; or

c. iii. if his seniority does not enable him to hold a crew position under Section 11.I.2.g.iJ.5.a. or 11.I.2.g.iib. (above), his employment status shall be determined by the Vice President, Flight Operations, consistent with the seniority and qualifications of the affected pilot.

3. Training Freezes and Reassignments a. ITU Removals and Withdrawals

If a pilot is removed or withdraws from ITU training, his case shall be referred to the TRB.

b. Recurrent Training Downbids 6. After the second consecutive failure of a recurrent check

ride/qualificationvalidation/evaluation event(s), Captains may elect to downbid to the F/O crew seat in the aircraft and base in which he was qualified as Captain. If he completes that training he shall be frozen for 2 years in that crew position, and shall be ineligible for passover payto participate in System Bids for the duration of such freeze [harmonize as necessary with Section 24]. If he does not complete that training, his case shall be addressed by the TRB.

K. J. Recurrent Training/Continuing Qualification Training 1. Ground Training. A pilot shall be required to satisfactorily complete the

following recurrent training activities as required by the FOTM, airplane specific AQP source documents, and the FARs: a. A pilot qualified in an aircraft type may require classroom ground school

training.

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b. An open-book, home study or CBTA distance learning program may be used in lieu of classroom training. Completion of any Company required home study entitles the pilot to one day of training pay in accordance with Section 4.I.4.c. He shall complete recurrent CBTdistance learning by the 23rd day of his grace month or 48 hours prior to the start of any activities scheduled to terminate after the expiration of such month, whichever is earlier. Failure to complete that training shall result in unpaid removal from any activities until completion of CBTthe distance learning.

2. Line Check Requirements a. A line check is an operational check ride/qualification event conducted

to observe a pilot’s performance of his duties and responsibilities. Line checks are required for Captains and Second Officers and may also be administered to First Officers.b. . Line checks shall be administered by a Standardsan appropriately qualified Check Airman (SCA), Line Check Airman (LCA) or an FAA Air Carrier Inspector.

L. K. Requalification Training 1. If a pilot fails to meet the recency of experience requirements (becoming

noncurrent) he shall be trained to proficiency and, if recommended by an instructor, receive a qualification event per the FOTM and AQP documents.re-qualified in accordance with AQP source documents. However, a pilot whose landing currency has lapsed, while away from base on a trip, may continue by performing the duties and responsibilities of an Inflight Relief Officer (RFO/RF2) only. This provision shall only be applicable in the event of extenuating circumstances (e.g., trip revision). Upon completion of that trip the pilot must complete requalification training before being assigned to any further activities.

2. If a pilot fails to complete recurrent training within his eligibility period (becoming overdue) he shall be trained to proficiency and, if recommended by an instructor, receive a qualification event per the FOTM andrequalified in accordance with AQP source documents.

3. If a pilot fails a check ride (becoming unqualified) he shall be trained to proficiency and, if recommended by an instructor, receive a qualification event per the FOTM and AQP documents. [RESERVED] a. If a pilot becomes unqualified due to a recurrent training failure (including

line checks), his case shall be referred to the TRB and the pilot shall receive training to proficiency and, if recommended by an instructor, a recheck.

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i. If the pilot fails a recheck under Section 11.K.3.a., his case shall be referred to the TRB and the pilot shall receive training to proficiency.

ii. if the pilot fails a recheck under Section 11.K.3.a.i., his case shall be referred to the TRB.

b. If a pilot becomes unqualified a second time within 18 months due to a recurrent training failure, his case shall be referred to the TRB and the pilot shall receive counseling and training to proficiency and, if recommended by an instructor, a recheck.

i. If the pilot fails a recheck under Section 11.K.3.b., his case shall be referred to the TRB and the pilot shall receive training to proficiency.

ii. if the pilot fails a recheck under Section 11.K.3.b.i., his case shall be referred to the TRB.

iii. If the pilot passes his recheck, but becomes unqualified within the next recurrent training cycle, his case shall be referred to the TRB.

4. Failure to complete requalification training shall be addressed by the TRB. 5. If a pilot is in an unqualified status due to recurrent training failure, and has

an interruption in training (e.g., sick leave, leave of absence, disability), he must complete the requalification training previously underway before he is eligible for an award of any other crew position.

M. L. Line Check Airmen (PCA/LCA/SCA/APD) 1. An LCAA Check Airman who checksevaluates and instructs Captains

and/or First Officers shall hold and be: a. Be currently qualified in the Captain crew status in the aircraft in which

he performs his LCA duties.; and b. a. An LCA shall be Category IIIa (and CAT IIIb, if applicable)

qualifiedHold the Captain crew status, if an LCA, SCA, or APD; and c. Except as provided in Section 11.P.; have a minimum of :

i. 300 hours as PIC in the aircraft in which he performs the duties of a LCA.LCA duties if it is the pilot’s first Company employment as an LCA; or

ii. b. The provisions of Section 11.L.1.a, shall be waived in case of an aircraft type new to the Company fleet.150 hours as PIC in the aircraft in which he performs LCA duties, if the pilot has been an LCA within the last 5 years.

2. c. An LCAA Check Airman who checksevaluates Captains may also giveconduct line checks toevaluations on other crew seats in that aircraft

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type. When a Captain or First Officer is being checkedevaluated, all other crew seats are also being checked.

2. An LCA who checks and instructs Second Officers shall hold and be currently qualified in the Second Officer crew status in the aircraft in which he performs his LCA duties. a. An LCA shall have a minimum of 100 hours as a second officer in the

aircraft in which he performs his LCA duties.b. The provisions of Section 11.L.2.a., shall be waived in case of an aircraft type new to the Company fleet.evaluated. This clause shall not be construed to permit an F/O PCA to conduct Line Checks.

3. The duties and the conditions of an LCAa Check Airman’s employment shall be at the discretion of the appropriate Standards or Training Manager, however, those duties and conditions may not contradict provisions of this Agreement.a. By mutual consent of the LCA, Check Airmen hold their positions at the discretion of the appropriate Standards Manager, andor Training Manager, an LCA.

4. Check Airmen may be qualified as a simulator instructor/PCA.b. Notwithstanding the provisions of Section 11.L.5., an LCA that is brought into pay only status to qualify as a simulator instructor/PCA or to conduct simulator training, shall be scheduled in accordance with the provisions in Section 11.M., LCA, SCA, and/or APD.

5. c. A pilot who is qualified as a simulator instructor/PCA and also as an LCA shall receive the LCA bid period override.4. An LCACheck Airman who is bidding for flying purposes shall bid on and be awarded a bid period schedule in accordance with the provisions of this Agreement.

6. 5. LCA will bid by seniority for pay only bid periods. The aircraft standards manager shall determine how many LCAs are needed and coordinate the rotation of LCAs monthly. The number of pay only months for an LCA shall not exceed 2 per calendar year unless waived by the LCA. The following shall apply for an LCA when he is bidding in a pay only status in order to perform LCA duties.: a. The maximum number of duty days shall not exceed the maximum

number of R-days in the bid period (plus up to 5 days of carryover if bid). Carryover days will be paid only if work is available, as determined by the appropriate standards manager.

a. b. When assigned flight duties in an aircraft (other than fly days), the maximum number of duty days on an LCA’s schedule shall be determined by dividing his pay only BLG/RLG (plus up to 5 days of carryover if bid) by 6:24 CH rounded to the nearest whole number, but theprovided the maximum number of duty days shall not exceed the

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maximum number of R-days in the bid period. The minimum number of duty days shall be 12 (in a 4 week bid period, 15 in a 5 week bid period).c. When assigned a combination of flight duties in an aircraft and other duties in a training base in a single pay only bid period, a combination of Section 11.L.5.a and 11.L.5.b shall be used to determine the maximum number of events on an LCA’s schedule. and 19 in a 6 week bid period.

b. d. He may designate up to 5 days off in a 4 week bid period, 7 days off in a 5 week bid period and 8 days off in a 6 week bid period (which may not be in more than 2 blocks), on his awarded schedule to be days free of duty on his revised schedule. He may provide primary and secondary requests for the specific days off, and the Company shall accommodate 1 of those requests. If 2 or more LCA’sLCAs request the same days off, those requests shall be considered in seniority order.

c. e. He shall be notified of his pay only schedule as soon as practicable, but at least 72[TBD] hours prior to commencement of the bid period. This minimum notice provision may be waived at the LCA’s option. When LCA scheduling automation has been developed by the Company, notice shall be increased to 120 hours.

d. 6. The Company may reschedule an LCA on a trip by trip basis to perform LCA duties with prior approval from the appropriate flight standards managerFlight Training Manager, or his designee. He shall be given at least 8 hours notice prior to a domestic trip or 12 hours notice prior to an international trip. An LCA shall not be required to work on a previously scheduled day(s) off without his consent.

e. 7. The notice required in Section 11.LM.5.e6.c. and L11.M.6.d. (above), may be waived at the LCA'’s option.

f. Any reserve days on an LCA’s schedule shall be scheduled in accordance with Section 11.N.11. and 12. below, however assignments shall be limited to training events only.

7. The Company shall not place a Check Airman in pay only status for more than 2 consecutive bid periods without his concurrence. However, if it is necessary to place a Check Airman (except for those qualified only as LCAs) in pay only status for more than 2 consecutive bid periods, the Company may fill those requirements in inverse seniority order.

8. An LCA shall be compensated as follows:In order to provide an opportunity for pay only Check Airmen to maintain line proficiency in their respective aircraft, the following shall apply to all Check Airmen, except those qualified only as LCAs: a. During a Check Airman’s third consecutive pay only bid period, he shall

be scheduled for 2 PDO fly days in lieu of scheduled training events, subject to the limitations contained in Section 11.M.9. (below) (PDO Bid

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Period). Due to the lengths of trips in certain domiciles, PDO fly days may be pooled to accommodate a trip longer than 2 days.

b. During a Check Airman’s fourth consecutive pay only bid period, he shall have eligibility equal to the CH value of 2 R-days (or a minimum of 4:30 CHs/day) available to him in the Secondary Working Window (SWW) (See Section 25.___) (SWW Bid Period). The Check Airman’s schedule shall include 2 fewer instructional days in an SWW Bid Period, unless deferred in accordance with Section 11.M.10.b. (below).

c. For each additional consecutive pay only bid period, the Check Airman’s proficiency flying eligibility shall alternate between PDO and SWW Bid Periods. When a Check Airman flexes back to line flying (i.e., is awarded a line for flying purposes) and he subsequently flexes back to his instructional duties (i.e., is awarded a line for pay only purposes), he will again be eligible for proficiency flying after his 3rd consecutive pay only bid period. However, he will resume the alternating proficiency flying pattern established when he was last eligible for proficiency flying. Example: A Check Airman is scheduled for 4 consecutive pay only instructional bid periods (January, February, March, and April). March shall be a PDO Bid Period and April shall be a SWW Bid Period. Example: A Check Airman is scheduled for 3 consecutive pay only instructional bid periods (January, February, and March). March shall be a PDO Bid Period. In April, the Check Airman is flexed back to line flying. The Check Airman is flexed back to instructional activities in May and is scheduled for 4 consecutive pay only bid periods (May, June, July, and August). July shall be a SWW Bid Period and August shall be a PDO Bid Period.

d. In order to maintain currency, proficiency with line operating policies and procedures, and enhance his professional capabilities, each Check Airman shall seek to attain 100 block hours (reducible by 2 hours per landing) per calendar year in the crew status in which he conducts training.

e. When a Check Airman’s schedule includes a combination of instruction/evaluation flying events, and simulator and/or ground training events (i.e., “combo line”), that schedule shall not be considered as a “pay only bid period” for the purposes of Section 11.M.8.

9. The following shall apply to all Check Airmen, except for those qualified only as LCAs, during a PDO Bid Period: a. A Check Airman may bump another pilot from his assigned trip(s) in

order to maintain his proficiency in the crew status in which he conducts training.

b. No pilot may be bumped without his consent.

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c. Check Airmen may PDO bump a pilot in any base. d. A Check Airman may bump a seat in which he is qualified but cannot

hold based on his system seniority, but only if an LCA, SCA, or PCA (who is a Captain by seniority) occupies the other seat.

10. The following shall apply to all Check Airmen, except for those qualified only as LCAs, during a SWW Bid Period: a. A Check Airman’s schedule shall include 2 fewer days, unless deferred

as provided in Section 11.M.10.b. below; b. A Check Airman may defer the schedule reduction that otherwise would

occur, in accordance with Section 11.M.10.a., in order to be entitled – in a subsequent, pay only bid period – to an aggregate schedule reduction of no more than 8 days. Example: A Check Airman is placed in pay only status for a third consecutive bid period (which, based on the pattern established in Section 11.M.8., is an SWW Bid Period), and as such is entitled to a 2-day schedule reduction. He elects to defer that reduction, so his instructional schedule is not reduced. During his next SWW Bid Period, he elects not to defer, and also elects to use the previously deferred 2-day reduction. His training schedule for that bid period will be reduced by a total of 4 days.

c. A Check Airman will have corresponding proficiency (PRO) flying eligibility during the SWW (see Section 25.___) as follows: i. For each day by which a pay only Check Airman’s schedule is

reduced, as provided in Section 11.M.10.a., as applicable, the CH value of an R-day (or a minimum of 4:30 CH) shall be available for participation in the Secondary Working Window (SWW) (See Section 25.___), and a corresponding, temporary BLG reduction shall also occur (subject to the proficiency flying/secondary line process immediately below);

ii. The eligibility will also include the CHs previously deferred as provided in Section 11.M.10.b. above, but in no case shall the eligibility exceed 36 CH (at which time the pilot must exercise his PRO flying eligibility);

iii. During the SWW, this eligibility may be used to preference trips from open time, which will be assigned using the PRO assignment code. The pilot may not voluntarily use, toward his secondary line construction, standby trips, R-day blocks, or inflight relief officer trips. The PRO assignment code will have the same pay characteristics as TRP;

iv. PRO eligibility shall be exercised at the pilot’s relative seniority; v. PRO eligibility may be exceeded by as much as 9 CH for each bid

period in which such eligibility is exercised; and

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vi. When a Check Airman is assigned to an R-day(s), through this process, he shall either: (a) Notify his Training or Standards manager, no later than the last

Friday prior to the start of the bid period in which such R-day(s) occur, to have such R-day(s) be dropped without pay and eligible for make-up; or

(b) have zero leveling on the first such R-day, and shall be in First Fly status for each such R-day.

d. In no event shall a pilot begin a pay only SWW bid period below the applicable Minimum Bid Period Guarantee, subject to the provisions of Section 4.A.

11. A Check Airman shall be notified of his Pay Only status at least 48 hours prior to the opening of the monthly bid, unless waived. The following shall apply for a Check Airman when he is bidding in a Pay Only status in order to perform Check Airman duties. a. The maximum number of scheduled duty days shall not exceed the

maximum number of R-days in the bid period. b. Pay only carryover CHs shall be deposited into the Check Airman’s

General Make-up Bank (GMB). c. A Check Airman bidding in Pay Only status may designate days free

from duty as follows: i. Up to 5 days off, which may not be in more than 2 blocks, in a 4-

week bid period; or ii. Up to 7 days off, which may not be in more than 2 blocks, in a 5-

week bid period; or iii. Up to 8 days off, which may not be in more than 2 blocks, in a 6-

week bid period. He may provide primary and secondary requests for the specific days off, and the Company shall accommodate 1 of those requests. If 2 or more Check Airmen request the same days off, those requests shall be considered in seniority order.

d. A Check Airman bidding in Pay Only status shall be notified of his pay only schedule as soon as practicable, but no later than TBD hours prior to the beginning of the bid period.

e. If he so desires, a Check Airman may pick up an instruction/evaluation activity(ies) by using credits in his General Make-Up Bank (GMB). Such activity(ies) does not constitute an excess of Section 11.M.7.a above (maximum number of scheduled duty days). The applicable credit hour deduction(s) from his GMB, for such activity(ies) shall be calculated using the same values as set forth in Section 11.M.14.c. (below).

f. A Check Airman awarded a pay only line, for a bid period in which he is not initially scheduled to perform any instructional or evaluation duties in

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an aircraft, may be scheduled in accordance with Section 11.N.10. below.

12. When assigned a combination of flight duties in an aircraft and other duties in a training base in a single pay only bid period, a combination of Section 11.M.6.a. and Section 11.M.16. shall be used to determine the maximum number of events on a Check Airman’s schedule.

13. The Company may reschedule or cancel a Check Airman on an event-by-event basis (trip or training activity) to perform Check Airman duties with prior approval from the appropriate Standards or Training Manager, or his designee. Assignments that occur as a result of this provision shall be limited to the event type cancelled (e.g., If the Company cancels a SIM event, the Check Airman shall be available for only SIM assignments). He shall be given at least 8 hours notice prior to a domestic trip/training activity or 12 hours notice prior to an international trip. A Check Airman shall not be required to work on a previously scheduled day(s) off without his consent, subject to the provisions of Section. 12.A.8.

14. Except for trips included on his awarded schedule during a non-instructional bid period, in the event that a Check Airman’s instruction/evaluation event (trip or training activity) is cancelled, the Check Airman will be assigned instructional reserve days as provided in Section 11.N.11. and 12. below.

15. The notice required in Section 11.M.13. above may be waived at the Check Airman’s option.

16. The Company may assign a maximum of 15 instructional days in a 4 week bid period, 19 instructional days in a 5 week bid period, and 23 instructional days in a 6 week bid period.

17. A Check Airman shall be compensated as follows: a. HeA Check Airman bidding in a flying status shall be compensated the

BLG/RLG of his awarded bid period schedule plus additional compensation, if any, to which he is entitled, as provided in Sections 3 and 4.

b. If an LCA's awarded bid period schedule is revised pursuant to Section 11.L.5. (above), he shall be compensatedA Check Airman bidding in a pay only status shall receive the BLG/RLG of his awarded pay only line.bid period schedule as published in his monthly bid pack, plus additional compensation, if any, to which he is entitled as provided in Sections 3 and 4.

c. If an LCA's trip(s) is rescheduled pursuant to Section 11.L.6., he shall be compensated the greater ofA Check Airman bidding in a Pay Only status shall accrue, toward his BLG/RLG, the credit hour value for the following training activities:

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i. the scheduledactual credit hour (ACH) value of his originalfor a line trip(s) assigned by Flight Training Scheduling; or

ii. the greater of scheduled or actual value of the rescheduled trip(s).R-day value for all other events.

d. An LCA in pay only status may work up to 5 days of carryover in his current pay only month or the foot print of the carryover days in the subsequent month. If an LCA is working consecutive months in pay only status, he may work the carryover portion in either month, provided enough work is available, as determined by the appropriate training manager.A Check Airman bidding in a Pay Only status shall be compensated as follows for all credit hours earned in a bid period for training activities occurring on days off (except for training activities assigned in Make-Up status), as defined by his originally published schedule: i. At 150% of the (ACH) for a line trip(s) assigned by Flight Training

Scheduling; ii. R-day value at 150% for direct student contact and non-instructional

seat support; iii. R-day value at his normal rate of pay for all other events.

e. If a Check Airman is revised pursuant to Section 11.M.13. above, he shall be compensated a minimum of his awarded BLG.

f. If a Check Airman’s trip(s) is rescheduled pursuant to Section 11.M.13., he shall be compensated for, or accrue, the greater of the following: i. the scheduled value of his original trip(s)/activity(s); or ii. the greater of scheduled or actual value of the rescheduled

trip(s)/activity(s). g. In the case of an initial or higher-level qualification, a Check Airman

candidate shall be paid the bid period override for that qualification upon commencement of his required training. Once qualified, a Check Airman’s Bid Period Override shall be administered in accordance with Section 11.M.17.i.

h. e. In addition to all other compensation to which he is entitled, an LCAa Check Airman shall receive a bid period override commencing with thehis first month in the program. If an LCAa Check Airman is sick for an extended time (9060 calendar days or greater) and is incapable of performing duties as assigned, Bid Period Overridehis bid period override will be stopped effective 90 days fromon the first day of the first full bid period following 90 calendar days of the date he called sick in VIPS. Bid Period OverrideHis bid period override will be resumed whenon the first day of the first full bid period after the pilot is off sick statusreleased to return to work.

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i. The bid period override for Check Airmen shall be based on the number of consecutive years of service as a Captain or Second Officer LCA as follows:

i. Captains

(a) Year 1: $1,300 (b) Year 2: $1,400 (c) Year 3: $1,500 (d) Year 4 and above: $1,600

ii. Second Officers (a) Year 1: $600 (b) Year 2: $700 (c) Year 3 and above: $800

Year 1 = $1,500 Year 2 = $1,600 Year 3 = $1,700 Year 4 and above = $1,900

f. Passover Pay for LCAs

i. An LCA shall be entitled to passover pay if the following prerequisites are met: (a) he bids for a higher paying crew position and is awarded that


vacancy bid award on the same or a subsequent posting. ii. If an LCA is entitled to passover pay in accordance with Section

11.L.8.f.i., (above), such passover pay shall be calculated as follows: (a) beginning when the junior pilot is activated into the crew

position that generated passover pay; and (b) ending upon the earlier of:

(1) the LCA’s activation into a new crew position; or (2) the LCA’s withdrawal from training for a new crew position.

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iii. The payment and, if applicable, repayment of passover pay due in accordance with Section 11.L.8.f., shall be administered as provided in Section 24.D.2.c.

18. A Check Airman is eligible to participate in System Bids that close during his tenure as a Check Airman, but will not receive an award without a release from his Training or Standards manager, as provided in Section 11.R.1. below.

19. 9. An LCAA Check Airman who wishes to resign his position must notify the Standards or Training Manager at least 3 bid periods in advance. a. theThe notification period may be reduced at the discretion of the

Standards or Training Manager. b. the LCAThe Check Airman may be retained in his position for up to 3

months beyond his desired resignation date at the discretion of the Standards or Training Manager or 6 months by mutual consent.

c. 10. LCAs hold their positions at the discretion of the Standards Manager.The Check Airman is eligible to participate, without restriction, in any System Bid which closes subsequent to the effective date of his resignation.

d. 11. The crew position of an LCAa Check Airman who resigns, or is removed from the LCA program shall be determined as follows:released from his Instructor Pilot status absent an open System Bid or CIPPA crew position, shall be determined by comparing his system-wide seniority against the results of the most recent System Bid. If the pilot is awarded or assigned a different crew position than his current crew position, the pilot shall be placed in the same applicable pool with other pilots, in accordance with Section 24.D.4. or D.5.

[Harmonize with Section 24 as appropriate] 20. Bid periods in which a Check Airman is scheduled for an awarded vacation

shall be non-Pay Only bid periods to the greatest extent practical. A Check Airman, however, who is bidding for Pay Only during a month in which he has vacation, shall have his bid period schedule reduced, day for day, by the number of days in his vacation period. His vacation bank shall be reduced by R-day value for each day of vacation.

21. A Check Airman on sick leave shall have his sick bank reduced by the value of the scheduled trip/training activity for each event missed due to sick.

22. A Check Airman may trade training assignments by coordinating the trade with the applicable training scheduler, and with the approval of the appropriate Standards or Training manager.

23. When a Check Airman is assigned to instruct at a location other than his assigned training base, every day beginning with the first day of travel and

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ending on the day of return shall be considered a duty day for scheduling and compensation purposes. A Check Airman traveling to/from training at a location other than his assigned training base shall be scheduled for deadheads in accordance with Sections 8 and 12, as if he were deadheading to/from normal revenue operations, and: a. Upon arrival at the training location, he shall be given a 12 hour duty free

period prior to commencing any brief or training; b. At the completion of any brief, training, or reserve period, he shall be

given a 12 hour duty free period before being scheduled for return travel; and

24. By mutual consent of the Check Airman and the appropriate Standards or Training manager, a Check Airman may be assigned a training base different from his flying base (e.g., LAX based pilot assigned to the MEM training base, or MEM based pilot assigned to ANC training base, etc.). In such case, the following shall apply: a. If the LCA does not hold a bid award for a different crew position, he

shall remain in his current crew position.A Check Airman’s assigned training base will not change during his tenure of service, unless mutually agreed upon by the Check Airman and the appropriate manager.

b. If the LCA holds a bid award for a different crew position or, would have been awarded such different crew position but for his LCA status (pursuant to Section 11.L.8.f.) and is receiving passover pay based on such crew position, the following shall apply:All training activities including travel to offsite training locations shall originate and end in the Check Airman’s assigned training base.

c. Travel between the Check Airman’s assigned training base and his flying base shall not be considered a duty day for scheduling purposes.

d. Deviation shall be permitted to and from the assigned training base or offsite training location using training travel bank which includes: i. In those cases where a training date has already been assigned, the

LCA will proceed to training as scheduled.travel between the assigned training base and offsite training in accordance with Section 11.M.17., (above); and

ii. In those cases where a training date has not been assigned, the aircraft standards manager will arrange a class date and communicate that date to the LCA.1 round trip ticket per pay only month between assigned training base and flying base.

e. The provisions of Sections 5.A. and B. shall not apply while an Instructor Pilot is performing duties in his assigned training base.

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M. Flex Instructors and Proficiency Check Airmen

25. Unless waived by mutual consent (Check Airman and appropriate Standards or Training manager), a Check Airman shall maintain his originally scheduled simulator period over consecutive days. The Company may revise the period to either the immediate earlier period or immediate subsequent period, once during the consecutive days. Any further revision during the consecutive days is limited to a return to the originally scheduled simulator period. This paragraph shall not apply to extra training (ET) administered following a training failure, or to training administered following an “incomplete” event.

26. If a Check Airman who is in “TDNIF” status is not current, he shall be permitted to provide simulator/ground instruction.

27. Bid periods in which a Check Airman is scheduled for an awarded vacation shall be non-instructional bid periods to the greatest extent practical. A Check Airman, however, who is utilized for training during a month in which he has vacation shall have his bid period schedule reduced, day for day, by the number of days in his vacation period. His vacation bank shall be reduced by an R-day value for each day of vacation. A Check Airman: a. May adjust his vacation period by sliding it up to a maximum of 5 days

in either direction, in accordance with Section 7; b. Shall receive, if requested, a 48 hour duty free vacation buffer at each

end of his vacation period. A vacation buffer shall not extend outside the bid period(s) in which the vacation occurred. A vacation buffer shall not create a conflict with a trip that began in the previous bid period.

28. The Company may deadhead a Check Airman to an off site location per Section 11.M.19.

29. A Standards Check Airman (SCA) or a Check Airman qualified as an Aircrew Program Designee (APD) shall receive an additional $600 per bid period.

N. Instructor Pilots 1. A flex instructor/PCA who checks and instructs Captains and/or First

OfficersAn Instructor Pilot shall be currentlycurrent and qualified as a Captain in the aircraft on which he checks and instructs.a. A flex instructor/PCA, and shall have a minimum of : a. 300 hours in the aircraft in which he performs his flex/PCA

duties.Instructor Pilot duties if it is the pilot’s first Company employment as an Instructor Pilot; or

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b. The provisions of Section 11.M.1.a., shall be waived in case of an aircraft type new to the Company fleet.

2. A flex instructor/PCA who checks and instructs Second Officers shall be currently qualified as a Second Officer in the aircraft on which he checks and instructs. b. a. A flex instructor/PCA shall have a minimum of 100 hours as a second

officer150 hours in the aircraft in which he performs his flex instructor/PCA dutiesInstructor Pilot duties if the pilot has been an Instructor Pilot within the last 5 years.

b. The provisions of Section 11.M.2.a., shall be waived in case of an aircraft type new to the Company fleet.

3. A PCA may check only on equipment on which he holds a crew status. 2. An Instructor Pilot who is in “TDNIF” status may not be current, in which

case he shall be permitted to instruct. 3. 4. A flex instructor/PCA'An Instructor Pilot’s duty day (for non-flying events)

may be scheduled for up to 8 hours, exclusive of 1 hour lunch break, with device training not to exceed 5 hours exclusive of brief/debrief.

4. The duties and the conditions of a flex instructor/PCAan Instructor Pilot’s employment shall be at the discretion of the appropriate Standards or Training Manager, however, those duties and conditions may not contradict provisions of this Agreement. a. By mutual consent of the flex instructor/PCA, Standards Manager, and

Training Manager, a flex instructor/PCA may be qualified as an LCA. b. A flex instructor/PCA that is brought into pay only status to qualify as an

LCA shall be scheduled in accordance with the provisions in Section 11.L.

c. A flex instructor/PCA that is flexed to the line may be scheduled LCA duties in accordance with the provisions in Section 11.L.

d. A pilot who is qualified as a flex instructor/PCA and also as an LCA shall receive the LCA bid period override.

5. A flex instructor/PCAAn Instructor Pilot shall bid on and be awarded a bid period schedule in accordance with the terms of this Agreement. If a flex instructor/PCA a. The appropriate Training manager, or his designee, shall determine the

monthly requirement for Instructor Pilots in a Pay Only status and coordinate the rotation of those Instructor Pilots on a monthly basis, and consistent with the provisions and limitations of this Agreement.

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b. If an Instructor Pilot is assigned to perform flex instructor/PCA duties for an entire bid period (flexinstructional bid period), his awardhe shall bebid for pay purposes onlya Pay Only line.

c. An Instructor Pilot shall be notified of his Pay Only status at least 48 hours prior to the opening of the monthly bid, except by mutual consent.

6. In the event that an instructor’s training activity is cancelled, the instructor will be assigned instructional reserve days as provided in Section 11.N.10.

7. 6. A flex instructor/PCAAn Instructor Pilot shall not be scheduled to perform instructor duties during non-flexinstructional bid periods without his consent. If he consents to perform those duties he shall be removed from his conflicting scheduled trip(s) and/or R-day(s) as necessary to perform such duties., and shall be paid in accordance with Section 11.N.21.a.iv. or v. (below), as applicable.

8. 7. The Company shall not flex the instructor to trainingplace an Instructor Pilot in pay only status for more than 2 consecutive months in pay only statusbid periods without thehis concurrence of the flex instructor/PCA. However, if it is necessary to flex an instructor to trainingplace an Instructor Pilot in pay only status for more than 2 consecutive monthsbid periods, the Company may fill those requirements in inverse seniority order.

9. In order to provide an opportunity for pay only Instructor Pilots to maintain line proficiency in their respective aircraft, the following shall apply: a. During a flex instructor/PCAan Instructor Pilot’s third and subsequent

consecutive flexpay only bid periods to trainingperiod, he shall be scheduled for at least 2 PDO fly days in lieu of scheduled training events, subject to the limitations contained in Section 11.M.8.a., M.8.b. and M.8.cN.10. (below) (PDO Bid Period). Due to tripthe lengths of trips in certain domiciles, PDO fly days may be pooled to accommodate a trip longer than 2 days.

8. A flex instructor/PCA may bump another pilot from his assigned trip(s) for PDO purposes to the extent required to maintain proficiency in the crew status in which he conducts training, and the following shall apply. a. No pilot may be PDO bumped without his consent. b. Flex instructor/PCAs may PDO bump another pilot in any base.During

an Instructor Pilot’s fourth consecutive pay only bid period, he shall have eligibility equal to the CH value of 2 R-days (or a minimum of 4:30 CHs/day) available to him in the Secondary Working Window (SWW) (See Section 25.___) (SWW Bid Period). The an Instructor Pilot’s schedule shall include 2 fewer instructional days in an SWW Bid Period, unless deferred in accordance with Section 11.N.11.b. (below).

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c. Bumping a captain or first officer seat which the instructor is qualified for but can not hold based upon his system seniority, shall require an LCA, SCA, or PCA (who is a captain by seniority) to be in the other seat.For each additional consecutive pay only bid period, the Instructor Pilot’s proficiency flying eligibility shall alternate between PDO and SWW Bid Periods. When an Instructor Pilot flexes back to line flying (i.e., is awarded a line for flying purposes) and he subsequently flexes back to his instructional duties (i.e., is awarded a line for pay only purposes), he will again be eligible for proficiency flying after his 3rd consecutive pay only bid period. However, he will resume the alternating proficiency flying pattern established when he was last eligible for proficiency flying. Example: An Instructor Pilot is scheduled for 4 consecutive pay only instructional bid periods (January, February, March, and April). March shall be a PDO Bid Period and April shall be a SWW Bid Period. Example: An Instructor Pilot is scheduled for 3 consecutive pay only instructional bid periods (January, February, and March). March shall be a PDO Bid Period. In April, the Instructor Pilot is flexed back to line flying. The Instructor Pilot is flexed back to instructional activities in May and is scheduled for 4 consecutive pay only bid periods (May, June, July, and August). July shall be a SWW Bid Period and August shall be a PDO Bid Period.

d. In order to maintain currency, proficiency with line operating policies and procedures, and enhance the instructor’shis professional capabilities, each flex instructor/PCAInstructor Pilot shall seek to attain 100 block hours (reducible by 2 hours per landing) per calendar year in the crew status in which he conducts training.

10. The following shall apply to all Instructor Pilots during a PDO Bid Period: a. An Instructor Pilot may bump another pilot from his assigned trip(s) in

order to maintain his proficiency in the crew status in which he conducts training.

b. No pilot may be bumped without his consent. c. An Instructor Pilot may PDO bump a pilot in any base. d. An Instructor Pilot may bump a seat in which he is qualified but cannot

hold based on his system seniority, but only if an LCA, SCA, or PCA (who is a Captain by seniority) occupies the other seat.

11. The following shall apply to all Instructor Pilots during a SWW Bid Period: a. An Instructor Pilot’s schedule shall include 2 fewer days, unless deferred

as provided in Section 11.N.11.b. below; b. An Instructor Pilot may defer the schedule reduction that otherwise

would occur, in accordance with Section 11.N.11.a., in order to be

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entitled – in a subsequent, pay only bid period – to an aggregate schedule reduction of no more than 8 days. Example: An Instructor Pilot is placed in pay only status for a third consecutive bid period (which, based on the pattern established in Section 11.N.9., is an SWW Bid Period), and as such is entitled to a 2-day schedule reduction. He elects to defer that reduction, so his instructional schedule is not reduced. During his next SWW Bid Period, he elects not to defer, and also elects to use the previously deferred 2-day reduction. His training schedule for that bid period will be reduced by a total of 4 days.

c. An Instructor Pilot will have corresponding proficiency (PRO) flying eligibility during the SWW (see Section 25.___) as follows: i. For each day by which a pay only Instructor Pilot’s schedule is

reduced, as provided in Section 11.N.11.a., as applicable, the CH value of an R-day (or a minimum of 4:30 CH) shall be available for participation in the Secondary Working Window (SWW) (See Section 25.___), and a corresponding, temporary BLG reduction shall also occur (subject to the proficiency flying/secondary line process immediately below);

ii. The eligibility will also include the CHs previously deferred as provided in Section 11.N.11.b. above, but in no case shall the eligibility exceed 36 CH (at which time the pilot must exercise his PRO flying eligibility);

iii. During the SWW, this eligibility may be used to preference trips from open time, which will be assigned using the PRO assignment code. The pilot may not voluntarily use, toward his secondary line construction, standby trips, R-day blocks, or inflight relief officer trips. The PRO assignment code will have the same pay characteristics as TRP;

iv. PRO eligibility shall be exercised at the pilot’s relative seniority; v. PRO eligibility may be exceeded by as much as 9 CH for each bid

period in which such eligibility is exercised; and vi. When an Instructor Pilot is assigned to an R-day(s), through this

process, he shall either: (a) Notify his Training manager, no later than the last Friday prior to

the start of the bid period in which such R-day(s) occur, to have such R-day(s) be dropped without pay and eligible for make-up; or

(b) have zero leveling on the first such R-day, and shall be in First Fly status for each such R-day.

d. In no event shall a pilot begin a pay only SWW bid period below the applicable Minimum Bid Period Guarantee, subject to the provisions of Section 4.A.

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12. Pay only carryover CHs shall be deposited into the Instructor Pilot’s General Make-up Bank (GMB).

13. In anticipation of an instructional bid period, for Instructor Pilots (and certain Check Airman, as provided in Section 11.M.8.f. above) who are not initially scheduled for instructional duties or evaluations in an aircraft: a. Training schedules shall be published at least ___. b. 9. During a flexan instructional bid period, the Company shall construct

a schedule of instructorinstructional duty days for each flex instructor/PCAInstructor Pilot, and the following shall apply.: i. An instructor bidding in Pay Only status may designate days free

from duty as follows: (a) Up to 5 days off, which may not be in more than 2 blocks, in a 4-

week bid period; or (b) Up to 7 days off, which may not be in more than 2 blocks, in a 5-

week bid period; or (c) Up to 8 days off, which may not be in more than 2 blocks, in a 6-

week bid period. a. A flex instructor/PCA shall have 5 inviolate days off (which may be not more than 2 blocks). He may provide primary and secondary requests regarding whichfor the specific days shall be his inviolate days off, and the Company shall accommodate 1 of those requests. If 2 or more Instructors request the same days off, those requests shall be considered in seniority order. The Company shall make all reasonable efforts to award a pilot’s requested days off by seniority.

ii. The Company may assign a maximum of 15 instructional days in a 4 week bid period, 19 instructional days in a 5 week bid period, and 22 instructional days in a 6 week bid period, except where otherwise further limited by Section 11.L.7. above.

iii. If he so desires, an Instructor Pilot may pick up an instructional activity(ies) by using credits in his General Make-Up Bank (GMB). Such activity(ies) does not constitute an excess of Section 11.N.9.b.ii. above (maximum number of scheduled duty days). The applicable credit hour deduction from his GMB shall be R-day value for each such activity.

14. Instructional reserve periods assigned to an Instructor Pilot or Check Airman shall be limited to instruction/evaluation duties, shall be the same period when scheduled on consecutive days, and may be designated as either: a. Instructor reserve periods are:

i. IR-A: 0200-1359 LBT; and ii. IR-B: 1400-0159 LBT.

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b. The maximum number of duty days on a flex instructor/PCA’s flex bid period schedule shall not exceed the maximum number of R-days in the bid period plus up to 5 days of carryover, if bid. Carryover days will be paid only if work is available, as determined by the appropriate training manager.Notification windows are: i. IR-A: 2200-0959 LBT; and ii. IR-B: 1000-2159 LBT.

c. If a flex instructor is working consecutive months in pay only status, he may work the carryover portion in either month, provided enough work is available, as determined by the appropriate training manager.Pilots on instructor reserve must be given at least 4 hours notice prior to an event. This notice can be waived by the instructor for seat support events.

d. A flex instructor/PCA shall be notified of his flex bid period schedule as soon as practicable, but in all cases at least 72 hours prior to beginning of the flex bid period. This minimum notice provision may be waived at the flex instructor/PCA’s option. When flex instructor/PCA scheduling automation has been developed by the Company, notice shall be increased to 120 hours.

e. Additional work days may not be scheduled without a flex instructor/PCA’s consent. If the flex instructor/PCA performs assigned duties on a day previously scheduled free from duty, he shall be entitled to compensation as per Section 11.M.18 (below), as applicable.

15. Flight Training Scheduling (FTS) may change an Instructor Pilot’s instructional reserve period (to/from IR-A, IR-B), consistent with the provisions of Section 25.M.3.d.i. through vi.

16. Unless waived by mutual consent (Instructor Pilot and Training manager), an Instructor Pilot shall be scheduled to conduct training in the same simulator period over a block of consecutive instructional days. The Company may revise the period to either the immediate earlier period, or the immediate subsequent period once during the block of consecutive days. Any further revision during the block of consecutive days shall be limited to a return to the originally scheduled simulator period. This paragraph shall not apply to extra training (ET) administered following a training failure, or to training administered following an “incomplete” event.

17. 10. When a flex instructor/PCAan Instructor Pilot is assigned to instruct at a location other than his flex assigned training base, every day beginning with the first day of travel and ending on the day of return shall be considered a duty day for scheduling and compensation purposes. An instructorInstructor Pilot traveling to/from training shall be entitled to the following.at a location other than his assigned training base shall be

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scheduled for deadheads in accordance with Sections 8 and 12, as if he were deadheading to/from normal revenue operations, and: a. If the deadhead block time does not exceed 2:30 hours, he shall receive

one day of travel to the off site location. Upon arrival at the training location, he shall be given a 12 hour duty free period prior to commencing any brief or training. ; and

b. At the completion of any brief or, training, or reserve period, he shall be given a 12 hour duty free period before being scheduled for return travel;

b. If the deadhead block time is 2:30 hours or greater, he shall receive one day of travel to the off site location, and be scheduled in accordance with Sections 8, and 12, as if he were deadheading to normal revenue line operations. Upon arrival at the training location, he shall be given a 12 hour duty free period prior to commencing any brief or training.

18. 11. By mutual consent of the flex instructor/PCA and the training manager, a flex instructor/PCAInstructor Pilot and the appropriate Training Manager, an Instructor Pilot may be assigned a flex training base different than his flying base (e.g., LAX based pilot assigned to the MEM training base, or MEM based pilot assigned to ANC training base, etc.). In such case, the following shall apply: a. An Instructor Pilot’s assigned training base will not change during his

tenure of service within the Flight Training Department, unless mutually agreed upon by the Instructor Pilot and the Training Manager.

b. a. allAll training activities including travel to offsite training locations shall originate and end in flexthe Instructor Pilot’s assigned training base.

c. b. travel to or from flexTravel between his assigned training base and his flying base shall not be considered a duty day for scheduling purposes.

d. c. deviationDeviation shall be permitted to and from the assigned training base or offsite training location using training travel bank which includes: i. travel between flexthe assigned training base and offsite training in

accordance with Section 11.M.10.,N.13., (above); and ii. 1 round trip ticket per pay only month between flex training base and

flying base. e. The provisions of Sections 5.A. and B. shall not apply while an Instructor

Pilot is performing duties in his assigned training base. 19. 12. Emergency Draft Off Site

Recognizing that emergencies may occur that could effectively stop an entire training/checkingvalidation/evaluation evolution, an instructorInstructor Pilot or Check Airman may be deadheaded to an off site

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location as soon as practicable to replace an individual and the following shall apply: a. Deadhead travel willshall be on scheduled jet service or Company

aircraftin accordance with Sections 8 and 12, except as provided below. b. Combined deadhead duty time and

training/checkingvalidation/evaluation shall not exceed 12 hours. c. The training/checkingvalidation/evaluation evolution, if performed on the

day of arrival, cannot exceed 6 hours, inclusive of brief and debrief. d. One hour showtime for deadhead travel to off site location and 30

minutes after block-in from deadhead return shall be used when determining the time away from base for compensation purposes.

e. The instructorInstructor Pilot or Check Airman will be afforded layover accommodations following his training/checkingvalidation/evaluation evolution for a minimum of 10 hours crew rest.

f. The instructorInstructor Pilot or Check Airman will be compensated at 150% for the duration of the assignment.

g. An instructorInstructor Pilot or Check Airman shall not be required to accept an emergency draft off site.

20. 13. To the greatest extent possible, the Company shall provide a flex instructor/PCAan Instructor Pilot at least 12 hours notice when his scheduled duty period changes by more than 6 hours. If the instructor chooses not to accept the change, he has 90 days to coordinate with his scheduler and make-up the event.

14. A flex instructor/PCA, excluding instructors undergoing instructor training, may be assigned "reserve" instructor duty for up to 35 % of his scheduled flex duty periods in a flex bid period

21. When an Instructor Pilot’s training event is cancelled, he will be assigned instructional reserve days as provided in Section 11.N.10. above.

22. 15. A Flex instructor/PCAAn Instructor Pilot may trade instructor assignments by coordinating the trade with the applicable training scheduler and with the approval of his flight training manager.Standards or Training Manager.

23. 16. A flex instructor/PCAAn Instructor Pilot may agree to reschedule his assigned duty days. A flex instructor/PCAAn Instructor Pilot shall not be entitled to additional compensation as provided in Section 11.M.18.N.23.a.iii. or b.ii. (below), as a result of the application of this paragraph, provided he receives his original number of scheduled days off.

24. 17. Bid periods in which a flex instructor/PCAan Instructor Pilot is scheduled for an awarded vacation shall be non-flexinstructional bid periods to the greatest extent practical. A flex instructor/PCAAn Instructor Pilot, however,

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who is flexed toutilized for training during a month in which he has vacation shall have his bid period schedule reduced, day for day, by the number of days in his vacation period. His vacation bank shall be reduced by an R-day value for each day of vacation. A flex instructor/PCA An Instructor Pilot: a. May adjust his vacation period by sliding it up to a maximum of 5 days

in either direction, in accordance with Section 7.7; b. Shall receive, if requested, a 48 hour duty free vacation buffer at each

end of his vacation period. A vacation buffer shall not extend outside the bid period(s) in which the vacation occurred. A vacation buffer shall not create a conflict with a trip that began in the previous bid period.

25. 18. A flex instructor/PCAAn Instructor Pilot shall be compensated as follows: a. During a non-flexbid period when an Instructor Pilot is scheduled to be

on the line and bidding for flying purposes (i.e., a non-instructional bid period, a flex instructor/PCA), an Instructor Pilot shall be compensated as follows: i. When he is not performing flex duties, he shall be compensated asAs

provided in Sections 3 and 4 of this Agreement., when he is not performing Instructor Pilot duties;

ii. If he so desires, he may pick up a training activity by using credits in his General Make-Up Bank. The credit hour deduction from his GMB shall be R-day value for each such training activity.

iii. ii. If he is requested and agrees to perform flex instructor/PCAInstructor Pilot duties on a day(s) off, he shall be compensated: (a) R-day value for direct student contact activities, at 150% of his

normal rate of pay for each day; or,, for direct student contact and non-instructional seat support; and/or

(b) R-day value at his normal rate of pay for each day of administrative/non-instructional workall other events.

iv. iii. If he is requested and agrees to perform flex instructor/PCAInstructor Pilot duties in lieu of hisa scheduled trip, he shall be compensated the value of the trip missed and may be used over the entire footprint of the scheduled trip.

v. iv. If he is requested and agrees to perform flex instructor/PCAInstructor Pilot duties on his scheduled R-day(s), an R-day value shall be credited toward his leveling and RLG (or mini RLG as appropriate) for each such R-day.

b. During a flexan instructional bid period, a flex instructor/PCAan Instructor Pilot shall be compensated as follows: i. he shall be compensated the BLG/RLG of his awarded bid period

schedule.An Instructor Pilot shall bid for a Pay Only line, and shall receive the BLG/RLG for his awarded (for pay only) line, as published

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in his monthly bid pack, plus additional compensation, if any, to which he is entitled, as provided in Sections 3 and 4. Pay Only carryover CHs on an instructor’s awarded Pay Only line shall be deposited into his general make-up bank.

ii. ifIf he is requested and agrees to perform flex instructor/PCAInstructor Pilot duties on a day(s) off, in excess of his required number of work days, he shall be compensated: (a) R-day value for direct student contact activities, and non-

instructional seat support at 150% of his normal rate of pay for each day; or,

(b) R-day value at his normal rate of pay for each day of administrative/non-instructional workall other events.

iii. he shall be paid additional compensation to which he is entitled, as provided in Sections 3 and 4.

c. In the case of an initial or higher level qualification, an Instructor Pilot candidate shall be paid the bid period override for that qualification upon commencement of his required training. Once qualified, an Instructor’s Bid Period Override shall be administered in accordance with Section 11.N.22.e.

d. c. In addition to all other compensation to which he is entitled, a flex instructor/PCAan Instructor Pilot shall receive a bid period override commencing with the first month in the program. If a flex instructor/PCAan Instructor Pilot is sick for an extended time (9060 days or greater) and is incapable of performing duties as assigned, Bid Period Overrideperiod override will be stopped effective 90on the first day of the first full bid period following 90 calendar days from the date he called sick in VIPS. Bid Period Overrideperiod override will be resumed whenon the first day of the first full bid period after the pilot is off sick status. released to return to work.

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e. The bid period override shall be based on the number of consecutive years functioning as a Captain, First Officer or Second Officer flex instructor/PCA as follows:

i. Captains/First Officers

(a) Year 1: $800 (b) Year 2: $900 (c) Year 3: $1000 (d) Year 4 and above: $1100

ii. Second Officers (a) Year 1: $600 (b) Year 2: $700 (c) Year 3 and above: $800

Year 1 = $1,000 Year 2 = $1,100 Year 3 = $1,200 Year 4 and above = $1,300

d. Passover Pay for Flex Instructor/PCAs

i. A flex instructor/PCA shall be entitled to passover pay if the following prerequisites are met: (a) he bids for a higher paying crew position and is awarded that


vacancy bid award on the same or a subsequent posting. ii. If a flex instructor/PCA is entitled to passover pay in accordance

with Section 11.M.18.d.i., (above), such passover pay shall be calculated as follows: (a) beginning when the junior pilot is activated into the crew

position that generated passover pay; and (b) ending upon the earlier of:

(1) the flex instructor/PCA’s activation into a new crew position; or

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(2) the flex instructor/PCA’s withdrawal from training for a new crew position.

iii. The payment and, if applicable, repayment of passover pay due in accordance with Section 11.M.18.d., shall be administered as provided in Section 24.D.2.c.

19. Pay only carryover credit hours shall be limited to 5 days at training day value, and shall be worked in the pay only bid period, or in the next bid period, if that is a pay only bid period, to the extent events are available. A pilot shall not be compensated for carryover CH which he did not earn by working additional duty days.

26. An Instructor Pilot may participate in System Bids that close during his tenure as an Instructor Pilot, but will not receive an award without a release from his training manager, as provided in Section 11.R.1. below. [Harmonize with Section 24 as appropriate]

27. 20. A flex instructor/PCAAn Instructor Pilot that wishes to resign his position must notify thehis Training Managermanager at least 3 bid periods in advance. a. the notification period may be reduced at the discretion of the Training

Managerhis manager. b. the flex instructor/PCAInstructor Pilot may be retained in his position for

up to 3 months beyond his desired resignation date at the discretion of the Training Managerhis manager or 6 months by mutual consent.

c. the instructor is eligible to participate, without restriction, in any System Bid which closes subsequent to the effective date of his resignation.

d. The crew position of an Instructor Pilot who resigns, or is released from his Instructor Pilot status absent an open System Bid or CIPPA crew position, shall be determined by comparing his system-wide seniority against the results of the most recent System Bid. If the pilot is awarded or assigned a different crew position than his current crew position, the pilot shall be placed in the same applicable pool with other pilots, in accordance with Section 24.D.4. or D.5.

[Harmonize with Section 24 as appropriate] 28. 21. Flex instructor/PCAsInstructor pilots hold their positions at the discretion

of the Training Manager. 22. The crew position of a flex instructor/PCA who resigns or is removed from

the flex instructor/PCA program shall be determined as follows: a. If the flex instructor/PCA does not hold a bid award for a different crew

position, he shall remain in his current crew position.

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b. If the flex instructor/PCA holds a bid award for a different crew position or, would have been awarded such different crew position but for his flex instructor/PCA status (pursuant to Section 11.M.18.d.) and is receiving passover pay based on such crew position, the following shall apply:

i. In those cases where a training date has already been assigned, the flex instructor/PCA will proceed to training as scheduled.

ii. In those cases where a training date has not been assigned, the training manager will arrange a class date and communicate that date to the flex instructor/PCA.

23. A flex instructor/PCA 29. An Instructor Pilot on sick leave shall have his sick bank reduced by R-

daythe value of the scheduled activity for each work dayevent missed due to sick.

30. Bumping a captain or first officer seat which the instructor is qualified for but cannot hold based upon his system seniority, shall require an LCA, SCA, or PCA (who is a captain by seniority) to be in the other seat.

N. Standards Check Airmen (SCA)

O. New Aircraft Entering Service

[Harmonize as necessary with Section 24, re: SDP, etc.] The provisions of Sections 9.A.1., 11.M.1.b., M.1.c., and N.1. shall be waived in case of an aircraft type new to the Company fleet. 1. All provisions of Section 11.M. (Flex instructor/PCAs), shall apply to SCA

except for Section 11.M.1. through M.3. and 11.M.18.c. All provisions of Section 11.M., referencing flight training managers shall apply to aircraft standards managers.The Company selection of such pilot candidates to undergo type rating and Check Airman training must occur prior to the introduction of a new aircraft into revenue service. A pilot who did not bid the new aircraft in the initial vacancy posting and could have held such position, shall not be eligible to be an initial cadre Check Airman.

2. An SCA who checks and instructs Captains and/or First Officers shall hold and be currently qualified in the CaptainInitial cadre Check Airmen candidates who hold the crew status in the aircraft on which he performs his SCA dutieson the initial vacancy posting. a. An SCA shall be Category IIIa (and Category IIIb, if applicable) qualified

and have a minimum of 300 hours as PIC in the aircraft in which he performs the duties of an SCA.After the closing of the initial posting, the

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Company shall notify the MEC Chairman in writing of those initial cadre Check Airmen candidates that have been awarded crew positions in the new aircraft in accordance with the provisions of Section 24 of the CBA within 60 days of the award.

b. The provisions of Section 11.N.2.a. (above), shall be waived in case of an aircraft type new to the Company fleet.Initial cadre Check Airmen candidates who receive an award on the initial new aircraft vacancy posting (i.e., the candidate is awarded the necessary crew status to perform his duties as described in Section 11) shall be considered “Check Airmen.”

c. Check Airmen will use normal bidding processes for BLG and schedule determination in accordance with the provisions of Section 11.M.5., as applicable. A Check Airman shall bid in a Pay Only status in his previous crew position until the Company publishes a bid period package for the new aircraft type, at which point the Check Airman shall bid in the new aircraft crew position.

d. A Check Airman’s hourly rate of pay shall be as provided in the basic Agreement, except that a Check Airman will receive the higher of: i. his pay rate at the time of selection as a Check Airman, (regardless

of whether it is derived from passover pay, CIPPA, or the crew position in which he is currently activated); or

ii. the new aircraft pay rate, upon activation as a Captain in the new aircraft crew position.

Note: if the Check Airman is excessed from the crew position for which he was being compensated prior to entering the initial cadre, the pay rate comparison shall be between the crew position he was awarded/assigned as a result of the excess and the new aircraft pay rate. Example: Pilot A, a 757 Captain, holds an award to A300 CAP and is receiving passover pay to A300 CAP. He was part of the initial cadre of Check Airmen for the 757. Under Section 11.P.2.d.ii., the Check Airman is initially compensated at the A300 CAP rate while working as a 757 Check Airman. Then, however, Pilot A is excessed from the A300 CAP seat and the position he receives as a result of the excess is MD-11 F/O. Pilot A is compensated as a 757 CAP under Section 11.P.2.d.ii. when the pilot would have activated in seniority order from the excess posting.

e. If the pilot resigns or is removed from the new aircraft training program, the pilot may elect to remain in the crew position the pilot was activated as a Check Airman and shall be compensated accordingly. If the pilot

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does not so elect, the pilot’s crew position shall be determined as follows: i. If the pilot holds no other award/assignment, the pilot shall be placed

in the crew position award/assignment the pilot held immediately prior to the Check Airman crew status award and compensated accordingly; or

ii. If the pilot holds an award/assignment other than the crew position in which the pilot was activated immediately prior to the Check Airman crew status award, the pilot shall be placed in such award and compensated accordingly.

iii. The scheduling of training required by application of Section 11.P.2.e.i. or ii. (above) shall be determined by the Company.

f. A Check Airman shall not incur a passover or CIPPA repayment or a down/lateral bid freeze or restriction relating to the pilot’s participation as a Check Airman under Section 11.P.

3. An SCA who checks and instructs Second Officers shall hold and be currently qualified in the Second OfficerInitial cadre Check Airmen candidates who cannot hold the crew status in the aircraft on which he performs his SCA dutieson the initial vacancy posting. a. An SCA shall be qualified and have a minimum of 100 hours as a second

officer in the aircraft in which he performs the duties of an SCA.Initial cadre pilot candidates who are not able to hold an award in the initial new aircraft vacancy posting will be considered “Provisional Check Airmen” (or Provo). The Company may award Provos captain crew positions as if they had been awarded such crew position from the initial new aircraft vacancy posting. Provos will be considered to hold a quasi-award to the new aircraft crew position for purposes of Sections 11.M. These positions will be in addition to the initial vacancy posting position awards. The Company may use Provisional Check Airmen for a maximum of 24 bid periods beginning with the introduction of the new aircraft into revenue service. The Company shall notify the MEC Chairman in writing of those pilots that have been awarded crew positions in accordance with this paragraph within 60 days of the award.

b. The provisions of Section 11.N.3.a. (above), shall be waived in case of an aircraft type new to the Company fleet.A Provo shall bid in a pay only status in his previous crew position until the Company publishes a bid period package for the new aircraft type, at which point the Provo shall bid for vacation in the new aircraft crew position, but shall receive average BLG (for pay only) for the new aircraft crew position. The Provo’s schedule shall be governed by the applicable provisions of Section 11 as if the Provo was bidding in Pay Only status. Any revenue flying assignments must be accomplished in accordance with the provisions of Section 25.U. (Bumping for Training).

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c. During the 24 bid periods, a Provo shall have the ability to participate in all other postings as if the pilot was not a Provo.

d. If the Provo receives a crew position award/assignment to the aircraft in which the pilot serves as a Provisional Check Airman, the crew status will no longer be considered “Provisional.”

e. A Provisional Check Airman’s hourly rate of pay shall be as provided in the basic Agreement, except that a Provo will receive the higher of: i. his pay rate at the time of selection as a Provo (regardless of whether

it is derived from passover pay or the crew position in which he is currently activated); or

ii. the new aircraft pay rate, upon “activation” as a Captain in the new aircraft crew position. Note: if the Provo is excessed from the crew position for which he was being compensated prior to entering the initial cadre, the pay rate comparison shall be between the crew position he was awarded/assigned as a result of the excess and the new aircraft pay rate.

f. A Provo shall cease to perform all Check Airman duties or be compensated as such upon the earlier of his resignation or removal from the program, or the expiration of 24 months after the introduction of the new aircraft into revenue service. The pilot’s crew position shall be determined as follows: i. If the pilot holds no other award/assignment, the pilot shall be placed

in the crew position award/assignment the pilot held immediately prior to the Provisional Check Airman crew status award and compensated accordingly; or

ii. If the pilot holds an award/assignment other than the crew position in which the pilot was activated immediately prior to the Provisional Check Airman crew status award, the pilot shall be placed in such award and compensated accordingly.

iii. The scheduling of training required by application of Section 11.P.3.f.i. or ii. (above) shall be determined by the Company.

g. A Provo shall not incur a passover repayment obligation or a down/lateral bid freeze or restriction relating to the pilot’s participation as a Provo under Section 11.P.

4. An SCA’s flight activity on a day previously scheduled free from duty in excess of his required number of work days, shall be compensated at 150% of his normal rate of pay.If an excess is declared: a. An initial cadre Provisional Check Airman shall be considered to be in

the pool for which the Provo holds a crew position award/assignment (not the quasi-award);

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b. An initial cadre Check Airman shall be considered to be in the pool of pilots in the crew position for which the pilot is receiving the pay rate (e.g., a MD-11 MEM Captain, selected as an initial cadre pilot candidate, holds an award in the initial vacancy posting for the 757 MEM Captain, and receives, through the operation of Section 11.P., the pay rate for an MD-11 Captain; if an excess is declared in the MD-11 MEM Captain crew position, the pilot will be considered as participating in the excess posting, and not as a 757 MEM Captain). If the pilot’s participation in the excess posting was in the crew position for which the pilot is performing duties as a Check Airman, the Company may continue to use the pilots as a Check Airman if the pilot is re-designated a Provo. In such case, the Company may continue to use the (newly designated) Provo until the expiration of 24 months following the introduction of the new aircraft into revenue service or 6 months after the close of the excess posting, whichever is later.

5. SCAs hold their positions at the discretion of the Standards Manager.Line Pilots

6. In addition to all other compensation to which he is entitled, an SCA shall receive a bid period override as described in Section 11.L.8.e.

7. A Captain SCA shall receive an additional $500 per bid period override. 8. A Second Officer SCA shall receive an additional $250 per bid period

override. 9. When assigned flight duties in an aircraft (other than fly days), the maximum

number of duty days on an SCA’s schedule shall be determined by dividing his pay only BLG/RLG (plus up to 5 days of carryover if bid) by 6:24 CH rounded to the nearest whole number, but the minimum number of duty days shall be 12 (15 in 5 week bid period).

10. When assigned a combination of flight duties in an aircraft and other duties in a training base in a single pay only bid period, a combination of Section 11.M.9.b., and 11.N.9., (above) shall be used to determine the maximum number of events on an SCA’s schedule. All pilots who hold an award from the initial aircraft posting, and who will not be Check Airmen, will be classified as Line Pilots. a. In addition to other provisions of the Agreement, for each Provisional

Check Airman who has been “activated” in the crew position as allowed under Section 11.P.3. (above), and for each Check Airman who activated earlier than his seniority would have dictated, one Line Pilot who holds an award for the new aircraft crew position will be entitled to the new aircraft pay rate if it is higher than their present rate. i. The rate assignment for the Line Pilots shall be determined by

seniority order.

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ii. For each additional Provo “activated” and Check Airman who activated into the new aircraft crew position earlier than his seniority would have dictated, the next most senior Line Pilot will begin receiving the new aircraft pay rate.

iii. When a Line Pilot receiving the new aircraft pay rate under this paragraph is no longer eligible for the rate due to activation, retirement, withdrawal from training, or an award/assignment to a different crew position, then the next most senior Line Pilot, if any, who was not previously receiving the new aircraft pay rate, shall begin receiving it.

iv. Notwithstanding Section 11.P.5.a.iii. (above), if a Provo ceases to be “provisional” (e.g., activates into the new aircraft crew position pursuant to an award/assignment commensurate with the pilot’s seniority or activates in another aircraft after leaving the new aircraft training program), that Provo shall not generate a new aircraft pay rate for any new additional Line Pilots.

v. Notwithstanding Section 11.P.5.a.iii. (above), once an out-of-seniority Check Airman reaches the point at which he would have been activated in seniority order or activates in another aircraft after leaving the new aircraft training program, that Check Airman shall not generate a new aircraft pay rate for any new additional Line Pilots.

b. For Line Pilots receiving the new aircraft pay rate in accordance with Section 11.P.5.a. (above), such pay shall end upon the earlier of: i. the Line Pilot’s activation into the new crew position for which the

Line Pilot is receiving the new aircraft pay rate; ii. the Line Pilot’s withdrawal or removal from training; or iii. the Line Pilot’s projected activation date from the original posting

(i.e., into the crew position that generated the new aircraft pay rate), if the Line Pilot receives a different intervening award.

P. O. General 1. For purposes of Section 11, "“current crew position"” is not intended to

indicate that the pilot is qualified as topresently maintains FAR currency for FAR purposes.

2. Training and checksvalidations/evaluations administered to non-pilots may not be conducted in Company aircraft during revenue operations.

3. To the greatest extent possible, recurrent check rides/Continuing qualification simulator events for flex instructor/PCAs, LCAsInstructor Pilots and non-pilot instructors shall be administered by an SCAa Check Airman.

4. An Instructor Pilot or reserve pilot (as provided in Section 25.__) may provide seat support for a student pilot during the simulator phase of ITU

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and all recurrent training events. An Instructor may support simulator phase ITU events except the Maneuvers Validation (MV) and all subsequent simulator events. Notwithstanding the above, an Instructor may provide seat support after the MV for any non-Evaluation/Validation maneuvers events.

5. An Instructor Pilot is required for all Continuing Qualification (CQ) simulator training events. During the simulator phase of ITU, an Instructor Pilot shall conduct the Maneuvers Validation (MV), and all subsequent simulator events. Notwithstanding the above, an Instructor may conduct any non-Validation/Evaluation maneuvers events including those subsequent to the MV. The Company’s ability to assign an Instructor to conduct non-Validation/Evaluation Continuing Qualification (CQ) simulator event(s) resulting from a revision(s) to the CQ curriculum(-a) shall be subject to the process described in Section 11.A.3.a. and b.

6. 4. All training and check ride/qualificationvalidation/evaluation events conducted in aircraft shall be administered by an LCA, SCAa line check qualified Check Airman or an FAA Air Carrier Inspector, subject to the following: a. Such training and check ride/qualificationvalidation/evaluation events for

Captains and First Officers shall be administered by a pilot who holds and is currently qualified in the Captain crew status on the aircraft, or by an FAA Air Carrier Inspector;

b. Such training and check ride/qualification events for Second Officers shall be administered by a pilot who holds and is currently qualified in the Second Officer crew status on the aircraft, or by an FAA Air Carrier Inspector; provided, however, that an LCA who checks Captains may also give line checks to other crew seats in that aircraft type.

b. c. Any crew seat not occupied by a pilot in training shall be occupied by a pilot who is current and qualified in that crew seat, except as provided in Section 11.O.4.dQ.6.c., (below).

c. d. During a Captain’s initial line check, the remaining crew positions must be occupied by a pilot(s) who is current and qualified in such seat(s). No training may be conducted in other seat positions during such a line checkOE validation, the First Officer seat must be occupied by an appropriately qualified Check Airman.

e. If training or a check ride/qualification event is administered on a non-revenue flight conducted solely for the purpose of training or checking, the Second Officer crew seat may be occupied by a non-pilot instructor who is current and qualified in that crew status.

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7. 5. All crew seats shall be occupied during simulator check ride/qualificationvalidation/evaluation events. a. During such simulator check ride/qualificationvalidation/evaluation

events for a Captain or First Officer crew seat, the Captain and First Officer seats, if not occupied by a pilot being checkedvalidated/evaluated, shall be occupied by pilots who area pilot(s) currently qualified to servein that crew seat(s) or, in the case of an ITU train to proficiency validation event, by an Instructor who is qualified in that crew seat(s).

b. During such simulator check ride/qualification events for a Second Officer crew seat, the Captain and First Officer crew seats may be occupied by non-pilot instructors who are current and qualified in those crew seats.Reserve pilots, who have voluntarily indicated a preference, may be assigned to provide seat support during simulator validation/evaluation events.

8. 6. AAny simulator training period, except a LOFT/LOS, shall not may be audio or video recorded withoutwith the written permission of all the pilots involved, and shall be; provided, however, that such audio or video recording is erased after being viewed and critiqued by the pilots involved. A check ride/qualificationvalidation/evaluation event shall not be audio or video recorded.

9. 7. A pilot assigned to occupy a crew seat in support of another pilot'’s training session/check ride/qualificationvalidation/evaluation event is not required to participate in the ground evaluationvalidation (e.g., walk-around inspection, emergency equipment) administered by the instructor during the pre-simulator briefing. The assigned pilot shall satisfy the performance standards required by his crew status. Should the pilot flying seat support encounter any significant performance issues that require training, (other than debrief), prior to his return to line flying, his case shall be referred to the TRB. A pilot shall not incur a training failure while occupying a seat in support of another pilot’s training.

10. 8. Casual observers are not permitted in a simulator during a training period or check ride/qualificationvalidation/evaluation event without the mutual agreement of all pilots receiving training. FAA Air Carrier Inspectors, check airmenCheck Airmen, instructors receiving training, pilot managers, Association representative (if requested by trainee), or other Company employees receiving required training are not considered casual observers.

11. 9. Notwithstanding Section 11.OQ.8., and available seating permitting, an LCA, SCA or flex instructor/PCAa Check Airman or Instructor pilot may observe, at the request of a pilot, his flight simulator training, aircraft training, IOE or check ride/qualificationOE or validation/evaluation event. In

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those cases, an LCA, SCA or flex instructor/PCAa Check Airman/Instructor Pilot is not entitled to additional compensation.

12. 10. Upon request, a pilot receiving training or a check ride/qualificationvalidation/evaluation event in a simulator or aircraft shall be granted 1 change of instructor or check airmanCheck Airman in the simulator, aircraft or IOEOE phases of ITU training.

13. 11. No simulator check rides/qualificationvalidation/evaluation events shall be scheduled to be conducted between 0001 LT and 0500 LT, including brief.

14. 12. [Reserved] 15. 13. A pilot who is subject to a crew status freeze in accordance with Section

11 shall be released from that freeze if he is involuntarily excessed or furloughed from his crew status or can no longer hold that crew status due to legal restrictions. If a pilot is ineligible for passover pay as a result of a crew status freeze, and that freeze is lifted, he may become eligible for passover pay based on his subsequent bid award.14. Notwithstanding other provisions of Section 11, a pilot may be assigned or awarded a crew status that he is otherwise "“permanently ineligible"” to hold if that crew status is the only crew status he could hold.

16. 15. Except for de-identified training data, which is not covered by this paragraph, the Company shall retain only training records required by law (including FAA and other governmental agency regulation), except that the Company may retain the following for 90 days after the associated training is completed:(s)). a. the cover sheet from the pilot's most recent initial new hire, ITU or

requalification training jacket; and b. recurrent LOFT form; and c. Flight Officer Proficiency Form (form 007); and d. Flight Officer En Route Report (form 008).

17. 16. A pilot may have Association representation at any conference with management involving unsatisfactory training performance. Meetings shall not be delayed unreasonably because of the need for representation.

18. 17. Proficiency Enhancement Partnership Program As part of its proficiency enhancement partnership program, the Company will offer the following additional training for proficiency (non-jeopardy training) at the pilot’s election and subject to availability. This training is entirely voluntary on the pilot’s part. The pilot shall not be paid for this training, nor shall it count as duty or a day of work for purposes of this Agreement. The Company shall make a good faith effort to accommodate

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a pilot’s request for scheduling this type of training, however, this training shall not be scheduled to create a conflict with any other scheduled activities. Should a Captain or First Officer taking advantage of this program encounter any significant performance issues that require training, (other than debrief), prior to his return to line flying, his case shall be referred to the TRB; Second Officers cannot require additional training as a result of participation in this program, and will be subject to device and instructor availability. The Company shall offer the following fourtwo types of training pursuant to this program: a. ITU Audit

PilotsA pilot holding an ITU award may audit ground school before the commencement of his training, and may select ASTPRO, MAN, and IOEOE events, at subject to the discretion of the training manager, before their training date.

b. Proficiency Enhancement Up to two times per year but not less than thirty days prior to scheduled recurrent training, a pilot may request proficiency enhancement training.

c. Second Officer Basic Airmanship Proficiency Retention Up to two times per year, a second officerpilot may request basic airmanship proficiency retentionproficiency enhancement training. Pilots shall not request proficiency enhancement training to occur within 30 days of scheduled recurrent training.

Q. Check Airman/Instructor Pilot Pay Adjustment (CIPPA) [Note: The below in part is an attempted harmonization with the language in Section 24, regarding “Eligible Pilot (for System Bid),” “Eligible Pilot (for Training/BTA Bid),” “Notional Award/Assignment,” and the corresponding provisions after. Additionally, this attempted harmonization presumes that there is no such thing as a notional assignment, i.e., assignment occurs regardless of a Check Airman’s, or Instructor Pilot’s active participation/standing bid entry.]

1. As provided in Sections 11.M.__ and N.__ above, Check Airmen and Instructor Pilots may participate in System Bids, but will only receive an actual award if released by the appropriate Standards or Training Senior Manager. An assignment to a crew position pursuant to Section 24 will be considered an actual assignment. [Application Note: The System Bid will be run and processed for preliminary results, which Crew Staffing will provide to appropriate Standards or Training Senior Managers with identification of all Check Airmen and Instructor Pilots with awards. The applicable senior manager will have the final decision authority regarding the release or retention of

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each Check Airman or Instructor Pilot. If one is released, the final system bid results will include him. If one is not released, he shall be considered to have received a notional crew position award and the final system bid results will not include him.]

2. If a Check Airman or Instructor Pilot is not released, he shall receive a notional award. In such case, he shall be eligible for CIPPA if the notional crew position award has an hourly rate of pay higher than: a. His current crew position, if he is not – at the time of the System Bid’s

closing – eligible for passover pay or CIPPA based upon a crew position whose hourly rate of pay is higher than his current crew positon; or

b. His currently awarded crew position, if he is eligible for passover pay. 3. The Company shall administer CIPPA as follows:

a. A Check Airman or Instructor Pilot eligible for CIPPA will have his system-wide seniority compared against those who received an actual award to the applicable crew position, along with other Check Airmen and Instructor Pilots who are eligible for CIPPA based upon the same crew position, in order to establish their “Nth” CIPPA position. An eligible pilot will begin to receive CIPPA either: i. Upon the Nth actual pilot activation into the applicable crew position,

following the close of the applicable System Bid; or ii. 90 days following the close of the applicable System Bid, if the

eligible pilot was the most senior in the comparison (i.e., “Nth”=1st). b. CIPPA shall continue until the earlier of:

i. The date as of which there are no longer any junior pilots activated in the crew position;

ii. The date as of which there would no longer be any junior pilot activated in the crew position, but for the junior pilot(s)’ unavailability;

iii. The closing date of a subsequent System Bid, in which he was again not released to receive an actual award (i.e., a new, intervening CIPPA eligibility);

iv. The effective date of the pilot’s release or resignation from his Check Airman or Instructor Pilot status; or

v. The first day following the 24th bid period in which the pilot received CIPPA. The pilot shall also be given notification, in that 24th bid period, of his release from Check Airman or Instructor Pilot status in accordance with 11.R.2.d. below.

c. In the event a CIPPA-eligible pilot is not released to receive an actual award in another, subsequent System Bid, as described in Section 11.R.2.b.iii., he shall begin to receive his intervening CIPPA consistent with Sections 11.R.2.c. and R.3.

d. Scan RidesA CIPPA-eligible pilot who exhausts the full 24 bid periods described in Section 11.R.2.b.v. above shall be released from his Check

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Airman or Instructor Pilot status, and he shall enter the pool of IT/U training bidding in the same manner as provided in Section 13.A.6.e., for the notional crew position award upon which his CIPPA was most recently based. Basic airmanship and instrument refresher training will be offered in applicable ITU syllabi for pilots upgrading to their first flying crew seat. [Application note: The bid periods during which a pilot is not collecting CIPPA, because of an intervening CIPPA trigger, do not count toward the 24 month limit.]

e. A pilot’s monthly CIPPA dollar amount shall be determined by comparing his currently awarded crew position to his currently awarded notional (i.e., CIPPA-eligible) crew position, and using the corresponding value in the SDP chart found in Section 24.E.

f. CIPPA shall be paid on a monthly basis in accordance with Section 3.E.1.a.

g. Repayment of CIPPA by Check Airmen or Instructor Pilots shall be exclusively limited to situations in which: i. The pilot subsequently is awarded, during his receipt of CIPPA, a

crew position whose hourly rate of pay is lower than the one upon which his CIPPA is based;

ii. The pilot withdraws from training for the crew status upon which his CIPPA was based, unless extenuating circumstances existed for such withdrawal (Section 11.J.2.a. or Section 11.J.3.).

R. Ongoing Implementation Measures The parties recognize that the matters governed by Section 11 are complicated and that the new provisions of Section 11 require significant changes to existing systems and practices. As a result, the parties foresee that flexibility will be required in order to ensure the smoothest possible transition to the new provisions of Section 11. To that end, measures facilitating the implementation, operation, or administration of the provisions in Section 11 may be implemented if agreed upon in writing by the Vice President, Labor Relations and the Association’s MEC Chairman.

NOTES:

Discussion re: implementation/automation schedule Validate cross-references throughout

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SECTION 12 HOURS OF SERVICE Definitions: SERIES OF TRIPS A combination of trips that are not separated by a legal rest period. OPERATION IN THE CRITICAL PERIOD Operation during any part of the critical period as an operating (i.e., required as part of the crew, not deadheading) crewmember. STANDBY SEQUENCE A standby sequence is defined when a pilot’’s trip is awarded/assigned. A standby sequence is the period of time starting at the beginning of a standby, and ending at the scheduled departure of the next scheduled flight activity (revenue flight or deadhead), in the trip, as awarded/assigned. TIME ZONE DIFFERENTIAL (TZD) The number of hours difference between the time zone in which a duty period begins and the time zone in which it ends.

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A. General 1. Flying (Non-Company)

a. This Agreement contemplates that pilots shall devote their entire professional flying service to the Company, except that nothing in this Agreement shall be construed to prevent a pilot from affiliating with the military service of the United States.

b. Pilots shall not fly aircraft other than those operated by the Company for hire or remuneration unless authorized by the Vice President, Flight Operations, or his designee.

c. Except for Company flight operations, a pilot shall not perform flying which would count toward his FAR regulated block hours or duty time limitations. This does not restrict a pilot who is a member of a military guard or reserve organization in the flying of military aircraft.

2. Except as provided in Section 12.B.3.a.iii. and B.3.c.iii. (Airport Standby), and Section 25.M.1.f. (Reserve), a pilot shall be subject to operational limitations during a duty period within a trip. At all other times, a pilot shall be subject to scheduled limitations.

3. Operational Emergency If the Company's operations are disrupted due to extenuating circumstances not within the control of the Company, including, but not limited to, severe weather, natural disasters, abnormal ATC limitations or significant system disruptions, the Vice President, Flight Operations, or his designee, may declare an operational emergency. When an operational emergency is declared, all flight, duty time and rest limitations may be extended/reduced to FAR limits, except as provided in Section 12.D.10. An operational emergency may be declared for a specific sort facility, a region of the system, nation wide or world wide. Thenationwide or worldwide. In addition, the Company shall publish an FCIF outliningcommunicate the reasons for an operational emergency withinas soon as practicable but no later than 72 hours following the declaration thereof. In case of an operational emergency declared under this paragraph, the processes described in Section 12.C.5.b.ii. (domestic) and 12.D.6.c.ii. (international), shall apply. [Note: Company will develop automation/means to indicate a pilot’s applicable duty limitations.]

4. A legal rest period shall not be considered interrupted when the Company: a. provides a wake-up (alert) call to the pilot:

i. no earlier than 2 hours prior to showtime for an international duty period; or

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ii. more than 2 hours prior to showtime as required by Section 12.D.1.g. in situations involving ground transit time exceeding 1 hour; or

b. leaves any form of non-verbal communication for a pilot staying at a hotel, e.g., note under the door, phone light; or

c. attempts to leave a message by telephone for a pilot at a location other than a hotel; or

d. attempts to notify a pilot of a personal emergency. 5. Maximum Landings

a. A pilot shall not be scheduled to exceed 3 landings, as part of an operating crew, in a duty period that begins in the critical period. If a pilot is scheduled for 3 landings as described above, his next duty period that begins in the critical period in that trip shall have 2 or fewer landings, unless the pilot had an intervening critical period free from duty.

b. A pilot shall not be scheduled to exceed 4 landings, as part of an operating crew, in any duty period that touches the critical period.

c. b. A pilot shall not be scheduled to exceed 5 landings, as part of an operating crew, in any duty period.

d. c. A domestic multiple day pairingtrip shall not be scheduled for a cumulative total of more than 12 landings in the critical period except when, unless approved by the SIG.

e. d. The landing limits in this paragraph may be increased by 1 operationally.

6. Operational Trip Return to Base a. Should an operational circumstance arise which requires a flight to

return to base (or remain there) with no other intermediate destination (e.g., not block out, return to blocks prior to take-off while at base, air turn-back to base), the trip is not terminated, and CRS has the following options: i. revise the trip to block out in that duty period; ii. revise the trip to block out after a legal rest period at base; or iii. remove the pilot, in which case:(1) the pilot :

(a) shall be compensated the greater of 3 CH, ABH, or duty rig computed from his scheduled showtime until his actual release; and

(b) (2) he shall be eligible for substitution, if applicable, for the balance of trip guarantee.

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b. Should an operational emergency be declared (as provided in Section 12.A.3.),3., due to severe weather, mechanical difficulties, or other extenuating circumstances in a designated sort facility, flight crews may be rescheduled or diverted to their base. Under these circumstances, the pilot’’s base will be treated as a normal alternate and not as a base. As such, the trip will not terminate, but will continue as if originally transiting the scheduled sort facility (i.e., hub turn outbound or layover in base as if the pilot was on a layover at the originally scheduled sort facility).

7. The AssociationCompany shall be provided withprovide a bid period report indicatingto the Association which indicates the dates, flights and relevant circumstances in which the Vice President, Flight Operations, or his designee, exercised his authority to operationally extend a pilot beyond the Section 12.C.5. and 12.D.6. operational duty limitations or as provided in Section 12.B.3.b.ii.(c) and Section 12.B.3.d.ii.(c), except for extensions due to an operational emergency declared under Section 12.A.3.

8. If a pilot’’s trip is extended into time originally scheduled free from duty at base, such extension shall be limited to the following, unless the pilot consents to a longer extension: a. the Company may extend a pilot:

i. on a domestic trip up to 4836 hours into time previously scheduled free from duty at base; or

ii. on an international trip up to 9684 hours into time previously scheduled free from duty at base.

b. maintenance or weather disruptions particular to the pilot’’s specific flight shall, but only to that limited extent, provide the Company with the ability to exceed the 4836/9684 hour limit without the pilot’’s consent. Notifications of the use of this provision shall occur using the provisions of Section 12.A.7.

9. Fatigue a. A pilot who is excessively tired prior to actual check-in for a trip in

domicilebase following a legal rest period shall notify CRS immediately and speak to an RCP/ACPa Fleet Captain or the Duty Officer about his situation. The pilot will be removed from his trip and to the extent he had trip guarantee, the hours shall be eligible for make-up. If the trip was a reserve assignment, the underlying R-days will be dropped without pay, and the value of those R-days shall be eligible for make-up.

b. A pilot who becomes excessively tired subsequent to actual trip check-in shall notify CRS immediately and talk to the Duty Officer about his situation. Depending on the pilot’’s situation and the Duty Officer’’s

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assessment, one of the following alternatives shall be enlisted to address the issue: i. the pilot may be given a legal rest period. The pilot’’s schedule

thereafter may also be postponed until after the legal rest period is concluded.

ii. The pilot’’s current trip may be revised to include some alternative duty assignment that more ably accommodates the pilot’s situation.

iii. The pilot may be removed from his trip and placed in sick leave status as provided in Section 14.B.5.5., subject to Section 12.A.9.f. below; the pilot shall automatically be returned from sick leave at the conclusion of his trip.

c. Deadheads that are necessary in any of the above situations shall be accomplished in accordance with the agreement.

d. In the event there are any questions about the pilot’’s fatigue call, the flight manager mayAssociation members of the Fatigue Event Review Committee (FERC), may make the initial contact with the pilot to discuss the issue(s) further.

e. The pilot shall submit a Fatigue Event Report, via appropriate Company automation, within 72 hours after his fatigue call.

f. A pilot who calls fatigued away from base during a trip shall be treated in the same manner as provided in Section 14.B.4., and shall have local transportation and lodging provided by the Company.

g. The FERC shall meet and discuss all pilot fatigue calls made subsequent to actual trip check-in. For instances to which Section 12.A.9.b.iii. applied, the FERC will evaluate the circumstances surrounding the fatigue call and will attempt to reach a consensus concerning compensation for that trip, or portion thereof, not operated owing to the fatigue call. i. The FERC may decide to authorize compensation as follows:

(a) With deduction of the applicable credit hours from the pilot’s sick bank; or

(b) With no deduction from the pilot’s sick bank. ii. In the absence of consensus, the FERC shall refer the decision to

the SCP.

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10. Fatigue Risk Management System (FRMS) With the consent of the Association, the parties may examine pairings as part of the Fatigue Risk Management System as follows: a. For purposes of FRMS study, pairings shall be grouped into three

categories: Category 1: Prospective ULR Pairings; Category 2: Prospective pairings that do not comply with either the

FARs or the CBA or both; and Category 3: Prospective pairings which comply with both the FARs

and the CBA; b. The Association consents to the study of ULR pairings (Category 1).

Specific ULR pairing designs shall be approved in advance, unanimously by the DCSC (e.g., flight sequence, layover times, location, departure and arrival times, time free from duty prior to and after the pairing). The DCSC will make decisions based upon available sleep science. Such pairings shall comply with Section 12.E.

c. The parties shall agree to a methodology for the clear and uniform identification of FRMS study pairings.

d. FRMS study pairings in category 1 and 2 shall be offered to pilots on a strictly voluntary basis as agreed to by the parties.

e. Reserve pilots will be assigned FRMS study pairings on a voluntary basis only.

f. FRMS pairings will not be placed onto secondary lines unless specifically preferenced by the pilot.

g. FRMS study pairings not assigned by the applicable assignment window, as described in Section 25.G.3.a., shall be: i. Reconstructed to comply with the CBA and FARs, and assigned per

the CBA; or ii. Notwithstanding Section 25.P., assigned to management pilots as

originally designed but without data collection. Section 9.A.3. shall not apply to management assignments pursuant to this paragraph. [Note: Connect the dots in Section 9.A.6.]

h. Pilots voluntarily operating category 1 or 2 FRMS pairings shall be required to participate in the collection of human performance/alertness data, in accordance with and as required by the data collection protocols contained in the Data Collection Memorandum of Understanding. For Category 3 FRMS pairings, the Company shall not require participation

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in the collection of human performance/alertness data, but may solicit for such, per Section A.6. of the Data Collection Memorandum of Understanding.

i. After appropriate testing and validation of such change(s) (as determined by the Data Collection Steering Committee with the concurrence of the Fatigue Risk Management Group (FRMG)), the parties may seek to change provisions of this Agreement to the extent necessary to implement the tested and validated change(s). Any such changes shall be implemented if approved by the Company and the Association. The Association’s approval shall be sought in a manner deemed appropriate by the Association’s MEC (e.g., MOU, LOA, etc.).

j. Association members of the DCSC and FRMG shall be removed from flying as provided for FOQA Gatekeepers under Section 18.A.2.a. and shall be compensated and treated accordingly under Section 18.B.

11. In the event the Company becomes subject to new flight and duty time regulations that restrict operations otherwise permitted by this Agreement, the Company and the Association will meet to discuss jointly pursuing FAA certification of the affected CBA provisions as an Alternative Means of Compliance (AMOC) in lieu of such new, otherwise restricting, regulations.

B. Duty Period Limitations 1. Duty periods begin and terminate as follows:

a. When the first activity in a duty period is flight deck duty, that duty period shall begin with a showtime 1 hour before the scheduled block-out or actual check-in time, whichever is later. Such duty period may begin with a showtime more than 1 hour prior to scheduled block-out if the time greater than 1 hour is designated as a standby period. Commencement of a duty period shall not be delayed if block-out is rescheduled after scheduled showtime or actual check-in, whichever is later. If a trip is designated for a potential early pull from a pilot’’s base, the showtime will be revised accordingly. Example: The scheduled block-out of 0900 is moved up to 0830. Showtime automatically moves up from 0800 to 0730, and this is not standby time. On the other hand, if the scheduled block-out remains at 0900 and the Company wants the pilot to show early at 0730, then the period between 0730 and 0800 is a standby period.

b. When the first activity in a duty period is an aircrafta deadhead by air, that duty period shall begin with a showtime at least 1 hour before the scheduled departure. Pilots may check in via VIPS in lieu of checking in at the FedEx operations area. The showtime for a deadhead

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sequence that begins with an intercontinental commercial deadhead segment shall be at least 1:30 hours prior to scheduled block out.

c. When the first activity in a duty period is a deadhead by surface deadheadtransportation, that duty period shall begin at the scheduled or rescheduled time of pick up.

d. When a deadhead precedes flight deck duty in the same duty period, the following shall apply: i. If the deadhead is on a scheduled passenger air carrier, at least 1:30

(domestic)/2:00 (international) hours shall be scheduled between deadhead arrival and FedEx revenue flight block-out.

ii. If the deadhead is on Company (freight) aircraft, (operational deadheads) chartered jet aircraft or non-freight Company jet aircraft, at least 1 hour shall be scheduled between block-in and block-out.

iii. If the deadhead is a surface deadhead by surface transportation, at least 1 hour shall be scheduled between the surface deadhead arrival and block-out.

e. When a deadhead follows flight deck duty in the same duty period, the following shall apply: i. If the deadhead is on a scheduled passenger air carrier (i.e., not the

SFS Airbridge), at least 1:30 (domestic)/2:00 (international) hours shall be scheduled between block-in of the FedEx revenue flight and departure of the deadhead.

ii. If the deadhead is on a chartered jet aircraft or non-freight Company jet aircraft, at least 1 hour shall be scheduled between block-in and block-out.

iii. If the deadhead is on Company jet (freight) aircraft (operational deadhead), at least 30 minutes shall be scheduled between block-in and block-out.

iv. If the deadhead is onby surface deadheadtransportation, 15 minutes shall be scheduled between block-in and the deadhead departure.

f. Except as provided in Section 12.B.2. (below), when the last activity of a duty period is surfacea deadhead by surface transportation that duty period shall terminate at the scheduled arrival time of the surface deadhead.

g. When the last activity of a duty period is flight deck duty or deadhead by air deadhead, that duty period shall terminate 30 minutes after block-in.

2. If a pilot is delayed in the completion of his assigned duties beyond the scheduled or rescheduled termination time of his duty period, (e.g. extended

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customs clearance, maintenance, surface deadhead), that duty period shall end at the completion of those duties, provided he notifies CRS of his actual termination time prior to entering legal rest.

3. Standby a. Base Airport Standby

i. A base airport standby duty period commences at showtime for the standby.

ii. A base airport standby duty period in which the pilot is not assigned a trip shall not exceed 5 hours.

iii. A base airport standby pilot may only be assigned a trip with a showtime during the 5 hour standby period (for revenue operations, scheduled block-out can be no later than 1 hour beyond the 5 hour standby period). If a pilot blocks out on that trip, he shall be subject to scheduled limitations for the entire duty period, unless extended to operational limitations with the prior approval of the Vice President, Flight Operations, or his designee.

iv. The pilot shall be notified of an assignment at least 1 hour prior to scheduled block-out, unless the first leg of the assignment is deadhead by chartered aircraft or Company jumpseat, in which case the notification shall occur at least 45 minutes prior to scheduled block-out.

b. Base Hotel Standby i. A base hotel standby period shall not exceed 11:30 hours. ii. A base hotel standby pilot may only be assigned duty commencing

during the standby period. If a pilot’’s pairing is revised, however, the following shall apply: (a) If his next activity is a scheduled hotel standby and the standby

is rescheduled to begin earlier, that new start time must be preceded by at least 12 hours free from duty.

(b) If a pilot is given an assignment with a showtime prior to the start of his next scheduled standby period, that assignment must be preceded by 12 hours free from duty.

(c) The 12 hour rest requirement provided in Section 12.B.3.b.ii.(a) and B.3.b.ii.(b) may be reduced to the rest requirements of Section 12.C.6., or 12.D.7., as applicable. This may only be done by the Vice President, Flight Operations, or his designee, in cases of operational emergency, as provided in Section 12.A.3., 12.C.5.b., or 12.D.6.c. If that occurs, the reduction in rest shall be reported to the Association in accordance with Section 12.A.7.

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(d) If the pilot returns to base within his standby period, the provisions of Section 12.B.3.b.vi., B.3.b.vii. and B.3.b.viii., shall apply.

(e) If a pilot is released early from his standby period, for purposes of this paragraph, that standby period ends upon his release.

iii. A base hotel standby pilot shall be notified of an assignment at least 1:30 prior to scheduled block out, unless the first leg of the assignment is deadhead by chartered aircraft or Company jumpseat, in which case the notification shall occur at least 45 minutes prior to scheduled block out.

iv. If assigned a trip, a base hotel standby pilot's duty period shall begin at the showtime for that trip. If assigned a domestic duty period, that does not consist exclusively of a deadhead or operation as part of an augmented crew, the standby pilot shall be scheduled for release to a legal rest period not later than the scheduled on-duty limit for that showtime, but in any case, the standby pilot shall be released to a legal rest period not later than 4:30 hours after the end of his standby period.

v. If assigned to base airport standby duty, the pilot's duty period shall begin at showtime of the airport standby. If a pilot is not assigned a trip, his airport standby shall terminate 5 hours after beginning duty for that standby or at the end of the base hotel standby period, whichever occurs first.

vi. A base hotel standby pilot who performs a flight sequence originating in his base and returning to his base within the same base hotel standby period, shall contact CRS within 30 minutes following block-in.

vii. If a base hotel standby pilot performs a flight sequence originating at a layover station and returning to his base for the purpose of resuming hotel standby status in that duty period, his 11:30 base hotel standby period starts at the showtime for that flight sequence or the beginning of the originally scheduled standby period in the base hotel standby sequence, whichever occurs first. He shall contact CRS within 30 minutes following block-in.

viii. If a pilot resumes base hotel standby duty as provided in Section 12.B.3.b.vi., or vii., CRS may: (a) hold the pilot for the remainder of his 11:30 base hotel standby

period; (b) assign the pilot to further duty commencing within the 11:30

standby period; or (c) release the pilot to a legal rest period.

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c. Field Airport Standby i. A field airport standby duty period commences at the showtime of

the standby. ii. A field airport standby duty period in which the pilot is not assigned

a flight shall not exceed 5 hours. iii. A field airport standby pilot may only be given a flight sequence with

a showtime during the 5 hour standby period (for revenue operations, scheduled block-out can be no later than 1 hour beyond the 5 hour standby period). If he blocks out on the flight, he shall be subject to scheduled limitations for the entire duty period, unless extended to operational limitations with the prior approval of the Vice President, Flight Operations, or his designee.

iv. A field airport standby pilot who performs a flight sequence originating in his standby city and returning to that city within the same 5 hour field airport standby period, shall contact CRS within 30 minutes following block-in.

v. If a pilot performs a flight sequence originating at a layover city and returning to the standby city for the purpose of resuming airport standby status in that duty period, his 5 hour field airport standby period starts at the showtime for that flight sequence or the beginning of the originally scheduled standby period in the field airport standby sequence, whichever occurs first. He shall contact CRS within 30 minutes following block-in.

vi. If a pilot resumes standby duty as provided in Section 12.B.3.c.iv., or v., CRS may: (a) hold the pilot for the remainder of his 5 hour airport standby

period; (b) assign the pilot a flight sequence with a showtime within the 5

hour standby period; or (c) release the pilot to a legal rest period.

vii. The pilot shall be notified of an assignment at least 1 hour prior to scheduled block-out, unless the first leg of the assignment is deadhead by chartered aircraft or Company jumpseat, in which case the notification shall occur at least 45 minutes prior to scheduled block-out.

viii. If a field airport standby pilot returns to his base, unless he is released from the remainder of his trip by CRS, his trip shall not end as a result of returning to his base, notwithstanding the definition of a trip and the following shall apply:

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(a) if the pilot is not returned to his field standby location by the end of his next duty period, then at the end of the subsequent duty period, either his trip shall end or he shall be returned to his standby location.

(b) the pilot may be scheduled to layover in his base prior to the application of Section 12.B.3.c.viii.(a).

d. Field Hotel Standby i. A field hotel standby period shall not exceed 11:30 hours. ii. A field hotel standby pilot may only be assigned duty commencing

during the standby period. However, if a pilot’s pairing is revised, in accordance with Section 25.S., the following shall apply: (a) If his next activity is a scheduled hotel standby and the standby

is rescheduled to begin earlier, that new start time must be preceded by at least 12 hours free from duty.

(b) If a pilot is given an assignment with a showtime prior to the start of his next scheduled standby period, that assignment must be preceded by 12 hours free from duty.

(c) The 12 hour rest requirement provided in Section 12.B.3.d.ii.(a) and B.3.d.ii.(b) may be reduced to the rest requirements of Section 12.C.6., or 12.D.7., as applicable. This may only be done by the Vice President, Flight Operations, or his designee, in cases of operational emergency, as provided in Section 12.A.3., 12.C.5.b., or 12.D.6.c. If that occurs, the reduction in rest shall be reported to the Association in accordance with Section 12.A.7.

(d) If the pilot returns to his standby city within his standby period, the provisions of Section 12.B.3.d.vi., B.3.d.vii. and B.3.d.viii., shall apply.

(e) If a pilot is released early from his standby period, for purposes of this paragraph, that standby period ends upon his release.

iii. A field hotel standby pilot shall be notified of an assignment at least 1:30 prior to scheduled block out unless the first leg of the assignment is deadhead by chartered aircraft or Company jumpseat, in which case the notification shall occur at least 45 minutes prior to scheduled block out.

iv. If assigned a flight, the pilot's duty period shall begin at the showtime

for such flight. If assigned a domestic duty period that does not consist exclusively of a deadhead or operation as part of an augmented crew, the standby pilot shall be scheduled for release to

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Hours of Service 12

a legal rest period not later than the scheduled on-duty limit for that showtime, but in any case, the standby pilot shall be released to a legal rest period not later than 4:30 hours after the end of his standby period.

v. If assigned to field airport standby duty, the pilot's duty period shall begin at showtime of the airport standby. If a pilot is not assigned a flight, his airport standby shall terminate 5 hours after the showtime of that standby or at the end of the field hotel standby period, whichever occurs first.

vi. A field hotel standby pilot who performs a flight sequence originating in his standby city and returning to that city within the same field hotel standby period, shall contact CRS within 30 minutes following block-in.

vii. If a pilot performs a flight sequence originating at a layover city and returning to the standby city for the purpose of resuming hotel standby status in that duty period, his 11:30 field hotel standby period starts at the showtime for that flight sequence or the originally scheduled showtime for that field hotel standby sequence, whichever occurs first. He shall contact CRS within 30 minutes following block-in.

viii. If a pilot resumes field hotel standby duty as provided in Section 12.B.3.d.vi., or vii., CRS may: (a) hold the pilot for the remainder of his 11:30 field hotel standby

period; (b) assign the pilot to further duty commencing within the 11:30

standby period; or (c) release the pilot to a legal rest period.

ix. If a field hotel standby pilot returns to his base, unless he is released from the remainder of his trip by CRS, his trip shall not end as a result of returning to his base, notwithstanding the definition of a trip and the following shall apply: (a) if the pilot is not returned to his field standby location by the end

of his next duty period, then at the end of the subsequent duty period, either his trip shall end or he shall be returned to his standby location.

(b) the pilot may be scheduled to layover in his base prior to the application of Section 12.B.3.c.viii.(a).

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C. Domestic Provisions 1. General

a. Applicability Domestic provisions apply to activities conducted entirely within the contiguous 48 states, and to trips constructed under Section 12.D.1.b or D.1.c. (International Provisions).

b. 1-in-7 A pilot shall be relieved from all duty for at least 24 consecutive hours at least once during any seven consecutive days.

c. 1-in-10 A pilot assigned exclusively to domestic trips within a period of 240 hours shall be scheduled to be relieved from all duty at his base for at least 24 consecutive hours at least once during that period. A pilot may waive the provisions of this paragraph to prevent a phase-in conflict, by indicating his waiver when he submits his bid. It shall not be a violation of this rule if a pilot would have received the relief from duty required by this paragraph but for a bid line adjustment, reassignment trip, or a volunteer or draft assignment.

2. Domestic Block Hour Limitations a. A pilot shall not be scheduled as an operating crew member in excess

of 8 block hours during a single duty period or during any consecutive 24 hour period, except as provided in Section 12.C.2.b. or d.

b. A pilot may be scheduled as an operating crew member to exceed 8 block hours during any 24 consecutive hours. Prior to exceeding 8 ABH in that period, however, he shall have received an intervening legal rest period of twice the block hours flown since his last legal rest period, or 9 hours, whichever is greater, except as provided in Section 12.C.2.c.ii., or iii.

c. A pilot originally scheduled under Section 12.C.2.a., or b., but who, due to headwinds, ATC delays or other unavoidable circumstances (including an intermediate stop for these reasons) is projected to exceed the limitations contained in those paragraphs, may continue to the extent permitted by FAR regulations. Duty time and rest limitations as provided in Section 12.C.5. and C.6. still apply. i. A pilot who, due to headwinds, ATC delays or other unavoidable

circumstances (including an intermediate stop for these reasons) is projected to exceed 8 ABH without an intervening legal rest period, shall be permitted to continue to base or to his layover station, whichever is scheduled to occur first, at which point he shall receive

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a legal rest period. However, a crew shall not block-out from a location after having exceeded 8 hours of block time in a 24 hour period without a legal rest period.

ii. If a pilot is originally scheduled to exceed 8 block hours in 24 consecutive hours, as provided in Section 12.C.2.b. (above), but due to headwinds, ATC delays or other unavoidable circumstances (including any intermediate stops for these reasons), cannot receive the minimum required legal rest period, the following shall apply: (a) he may be rescheduled for a legal rest period of at least twice the

block hours flown since his last legal rest period, but not less than 8 hours; or

(b) his schedule may be revised to not exceed 8 block hours in 24 consecutive hours; or

(c) he may be replaced (and shall earn trip guarantee). iii. If a pilot departs his base on a flight and makes an unscheduled

return to that base without an intervening stop and he is then projected to exceed 8 block hours in that same duty period, the Company shall employ one of the following options: (a) reschedule the pilot so as not to exceed 8 block hours; or (b) schedule the pilot for a legal rest period at base to ensure future

legality; or (c) remove the pilot, and, if he is not a MUV, MUS, CMU, AFB, VLT,

or DRF pilot, he shall be eligible for substitution; or (d) remove the pilot, and, if he is a MUV, MUS, CMU, AFB, VLT, or

DRF pilot, compensate him the greater of 3 CH, ABH or duty rig computed from his scheduled showtime until his actual release.

d. The following provisions shall apply in place of Sections 12.C.2.b. and c. above, for a pilot whose trip (or series of trips) includes no duty (scheduled or actual) in the Critical Duty Period:

i. If his trip (or series of trips), as awarded/assigned, exceeds 7:35 block hours in 24 consecutive hours, during two consecutive Day Duty Periods, then: (a) Prior to exceeding 7:35 ABH during that 24 consecutive hour

period, he shall have received an intervening legal rest period of at least 10:15, operationally reducible to 9:15;

(b) As awarded/assigned, he may be scheduled for one additional flight segment after having exceeded 7:35 block hours during that 24 consecutive hour period. Operationally,

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however, he may block-out on two scheduled flight segments during the duty period after having exceeded 8 ABH during that 24 consecutive hour period, provided that his intervening rest (described in Section 12.C.2.d.i.(a) above) was at least 10:15; and

(c) He shall be scheduled for a rest period of at least 13:00 following that second consecutive Day Duty Period, operationally reducible to 12:00.

ii. If his trip (or series of trips), as awarded/assigned, does not exceed 7:35 block hours in 24 consecutive hours, during two consecutive Day Duty Periods, but he actually accrues additional block time such that he is projected to exceed 8 ABH, then: (a) Prior to exceeding 8 ABH during that 24 consecutive hour

period, he shall have received an intervening legal rest period of at least 10:15, operationally reducible to 9:15; and

(b) He may not block-out on any additional flight segments after having exceeded 8 ABH in a 24 consecutive hour period without a legal rest period.

3. Domestic Crew Planning Limitations Crew Planning limitations shall apply until 48 hours prior to showtime of a trip or series of trips, except that such limitations do not apply to a sequence of trips that includes an optional assignment (e.g., make-up, trip trade, volunteer or draft). Trips constructed and revisions that occur after that time shall be governed by Section 12.C.4. through C.6., as applicable. a. Layover Minimum

A layover preceding duty as an operating pilot shall be scheduled for at least 10:15 hours. A layover preceding deadhead duty may be scheduled to a minimum of 8 hours.;

b. Anchor Zone Requirements An anchor zone is an 8 hour period of time, scheduled free from duty, that is common throughout a specified sequence of layovers. An anchor zone is required if a pilot’’s planned trip, or series of trips involves operation in the critical period. The following shall apply to trips requiring an anchor zone: i. The anchor zone shall be established based on the layover

immediately preceding the first operation in the critical period and shall apply going forward only. If the first duty period in a trip or series of trips involves operation in the critical period, then the anchor zone

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is established based on the layover following such first operation in the critical period.

ii. By providing a layover of 18 hours or greater, an anchor zone may be reset. If the anchor zone is reset, then for the purposes of the anchor zone concept, the remainder of the trip following the reset anchor zone is considered to be a separate trip. An anchor zone is not reset merely due to the existence of a layover of 18 hours or greater; an anchor zone is only considered reset if the anchor zone after the 18 hour layover does not share a common 8 hours with the anchor zone prior to the 18 hour layover.

iii. An anchor zone may not be reset more than once during any trip or series of trips.

iv. For purposes of bid period package construction, an anchor zone reset within a trip or series of trips shall require approval of the SIG.

v. iv. An anchor zone is not required in a layover preceding a deadhead-only duty period that concludes a trip.

vi. v. An anchor zone is not required on a standby trip.

c. Maximum Trip Length A domestic trip shall not be scheduled for more than 204 hours TAFB.

d. Critical Period Operation with Deadhead Return If flight deck duty occurs anytime in the critical period, there shall not be a following deadhead within the same duty period, except that the final duty period in a trip may contain such deadhead if the trip is scheduled to terminate in base prior to 10:30 am and the duty period cannot be extended beyond normal scheduled duty limits to accomplish such.

e. Maximum Connect Time When a deadhead follows flight deck duty in the same duty period, no more than 4 hours shall be scheduled between block-in of the FedEx revenue flight and departure of the deadhead.

f. Critical Period Out and Backs Trips that depart base in the critical period and return to base in the same duty period (out and backs) shall be scheduled to block-in by 10:00 am LBT.

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4. Domestic On-Duty Limitations (Scheduled) a. Day

If the showtime for a duty period is between 0500 and 1559 LBT, that duty period shall be limited to a maximum of 13 hours scheduled, except as provided in Sections 12.C.4.d., C.4.e. or C.4.f.

b. Night If the showtime for a duty period is between 1600 and 0059 LBT, that duty period shall be limited to a maximum of 11:30 hours scheduled, except as provided in Sections 12.C.4.d., C.4.e. or C.4.f.

c. Critical If the showtime for a duty period is between 0100 and 0459 LBT, that duty period shall be limited to a maximum of 9 hours scheduled, except as provided in Section 12.C.4.g. and C.4.h.

d. Blended Duty Requirements Transitions between the scheduled duty limits set forth in Section 12.C.4.a., b. and c., shall be as follows: i. Day to night transition: 1515 to 1645 with 1:1 slope ii. Night to critical transition: 2230 to 0100 with 1:1 slope iii. Critical to day transition: 0500 to 0530 blend from 11 hours to 13

hours. iv. If a pilot’s duty period contains flight segments with at least 4 hours

between block-in and block-out, and a day room is scheduled and reserved during that time, normal scheduled domestic on-duty limitations (not blended duty limitations) shall apply.

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Blended Duty Limits

1:00

22:30

16:45

15:155:30

5:00

8:00

9:00

10:00

11:00

12:00

13:00

14:00

1:302:303:304:305:306:307:308:309:3010:3011:3012:3013:3014:3015:3016:3017:3018:3019:3020:3021:3022:3023:300:301:30

Show Time

Max

Dut

y Ho

urs

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e. If a pilot's duty period comprises portions of 2 trips (e.g., two trips hub

turning), one of which is an optional assignment, (e.g., make-up, trip trade, volunteer or draft), the following scheduled on-duty limitations apply: i. If the duty period is less than the scheduled on-duty limitations of

Section 12.C.4.a. or C.4.b. (i.e., 13 Day and 11:30 Night), then the applicable scheduled on-duty limit (i.e., 13 Day and 11:30 Night), shall still apply.

ii. If the duty period comprised of 2 trips exceeds the scheduled on-duty limitations of Section 12.C.4.a. or C.4.b (i.e., 13 Day and 11:30 Night), then the duty period shall be limited to a maximum of 13:30 hours(Day)/13:00 (Night) scheduled on-duty.

f. If a duty period is comprised exclusively of deadhead, the scheduled on-duty limitations contained in Section 12.C.4.a., C.4.b. or C.4.c. (above) shall apply.

g. Deadhead Following Revenue Flight The following applies to a duty period which includes deadhead to base after revenue flight. i. If the duty period began in the critical period, the entire duty period

remains limited to 9 hours scheduled (i.e., no increased duty is permitted in order to deadhead).

ii. If the duty period began in the day or night period, the entire duty period may be scheduled up to 2 hours beyond the scheduled limitations in Section 12.C.4.a. or C.4.b., in order to accomplish the deadhead. However, the portion of the duty period prior to check-in for the deadhead shall be scheduled to the on-duty limitations contained in Section 12.C.4.a. or C.4.b., as applicable.

h. For purposes of revenue recovery, the Vice President, Flight Operations, or his designee, may authorize a trip to be scheduled up to operational limits in the critical period. This paragraph is for recovery purposes only; bid pack trips may not be scheduled this way.

i. If a pilot is scheduled to deadhead to base after revenue flying, and his duty period exceeds 10 hours, he may obtain a hotel room at Company expense, in order to take a later flight, as provided in Section 5.B.1.f.

j. If a pilot transits a base within a single duty period, at least 1:30 hours shall be scheduled between block-in and block-out. This paragraph does not apply to a transit which does not involve a change of aircraft.

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Summary Chart for non-Blended Duty Limitations

DAY

Scheduled Operational FAR

0500 - 1559 LBT

13:00

14:30 16

Optional assignment awarded in excess of day limitations

(e.g., SOFSON, SWP, PDO, VLT, DRF, etc.)

13:30

15:00

16

NIGHT

Scheduled Operational FAR

1600 - 0059 LBT

11:30

13:00

16

Optional assignment awarded in excess of night limitations

(e.g., SOFSON, SWP, PDO, VLT, DRF, etc.)

13:3000

15:0014:30

16

CRITICAL

Scheduled

Operational

FAR

0100 - 0459 LBT 9:00 10:30 16

Optional assignment must be scheduled within critical

limitations (e.g., SOFSON, SWP, PDO, VLT, DRF, etc.)

9:00

10:30

16

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5. Domestic On-Duty Limitations (Operational) a. General Rule

A pilot shall not be operationally extended more than 1:30 past the applicable scheduled on-duty limitation, except as provided in Section 12.C.5.a.ii., and 12.C.5.b. The “applicable scheduled on-duty limitation” is the maximum scheduled on duty limitation in each category, (i.e., day, night, critical, deadhead to base or optional trip trade, VLT, etc.), with reference to Section 12.C.4.a., b., c., d., e. or f., except that if the scheduled duty limit is blended, then the operational duty limit shall be 1:30 more than that specific blended limit. i. If a pilot’’s duty period was properly scheduled as provided in Section

12.C.4.d.iv., such pilot’s scheduled duty limit remains the maximum scheduled on duty limit for his category, regardless of operational events affecting the pilot’s scheduled ground time, or ability to use his day room, (e.g., delayed inbound).

ii. Reduced Operational Limit for Early Day Period Duties (a) If the showtime for a pilot’s duty period is between 0500 and 0530

his operational duty limit shall be :30 over his scheduled duty limit. (b) If the showtime for a pilot’’s duty period is between 0531 and

0600, his operational duty limit shall be 1:00 over his scheduled duty limit.

b. If the Company's operations or flight(s) are disrupted due to extenuating circumstances not within the control of the Company, including, but not limited to, severe weather, natural disasters, ATC limitations or significant system disruptions, the following shall apply: i. A pilot may, subject to Section 12.C.5.b.ii., (below), be scheduled to

continue up to FAR duty limits, with the prior approval of the Vice President, Flight Operations, or his designee, if necessary to complete his scheduled or rescheduled flight sequence or return to base, whichever occurs first. Block time limitations as described in Section 12.C.2.c. still apply.

ii. In the event of a trip delay, revision or operational emergency that extends, or would extend, a pilot beyond the operational limitations, a pilot who becomes excessively tired shall notify CRS immediately and then speak to the Duty Officer about his situation. Depending on the pilot’’s situation and the Duty Officer’’s assessment, one of the following alternatives shall be enlisted to address the issue: (a) The pilot’’s duty may be revised to include some alternative duty

that is at or within operational limits,; or;

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(b) The pilot may be given a legal rest period. In this case, the pilot’’s schedule thereafter may be postponed until after the legal rest period is concluded.

(c) Should it be determined that the pilot requires more rest than the legal rest provided pursuant to Section 12.C.5.b.ii.(b) above, the pilot may be removed from the balance of his trip and be placed in sick leave status. If the pilot is placed in sick leave status the pilot shall be automatically returned from sick leave at the conclusion of his trip.

(d) The FERC shall meet and discuss all instances to which 12.C.5.b.ii. applied.

iii. Deadheads that are necessary in any of the situations described in Section 12.C.5.b.ii., shall be accomplished in accordance with the Agreement.

iv. Nothing in these paragraphs shall diminish a pilot’’s responsibility to ensure that he has adequate rest prior to reporting for duty.

c. The 1:30 buffer applicable to base transits may be operationally reduced to not less than 1 hour (CRS may provide the 1 hour minimum operational buffer by rescheduling the outbound segment of a hub turn).

6. Domestic Rest Provisions a. A domestic rest period shall be scheduled for not less than 9 hours (8

hours when the following duty period consists entirely of deadhead to base), and shall operationally be not less than 8 hours.

b. A pilot who exceeds 8 ABH in any consecutive 24 hour period shall be scheduled for a rest period of : i. 17 hours prior to performing his next duty as an operating crew

member. That, when Sections 12.C.2.b. or c. are applicable. This rest period may be operationally reduced as necessary, consistent with FAR limitations; or

ii. 13 hours prior to performing his next duty as an operating crew member, when Sections 12.C.2.d.i. or ii. are applicable. This rest period may be operationally reduced to 12 hours.

c. If a pilot cannot be scheduled for a return deadhead within 4 hours after scheduled block-in of his last revenue flight, he shall be given a legal rest period prior to his return deadhead.

d. If a pilot operationally receives a layover of less than 11 hours, immediately following operation in the critical period, his next layover must be at least 12 hours, unless the remainder of his trip contains only

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deadheading, except as provided in Section 12.A.3. (operational emergency).

D. International Provisions

1. General a. Except as provided in Section 12.D.1.b. and D.1.c. (below), international

provisions apply to flight activities of pilots that originate from, have a destination of, or make an intermediate stop at a location outside the contiguous 48- states. A scheduled international flight activity that actually operates entirely within the 48 contiguous states shall be governed by the domestic provisions contained in Section 12.C.

b. Domestic rest limitations may be applied to SIBA and FDA trips operating entirely outside the locations described in Section 12.D.1.c.i. (below), provided that they are scheduled not to exceed domestic block hour and on-duty limitations. Such trips must also meet the following: i. no duty period is scheduled to exceed 6 block hours or 11 hours on

duty; and ii. if a duty period actually exceeds 6 block hours or 11 hours on duty,

that duty period may be operationally extended as follows: (a) to domestic limitations if the preceding rest period was at least

a minimum domestic legal rest period; or (b) to international limitations if the preceding rest period was at

least a minimum international legal rest period; and iii. if a duty period actually exceeds 6 block hours or 11 hours on duty,

the pilot shall receive an international legal rest period after that duty period.

iv. a rest period of at least 18 hours after an intercontinental deadhead shall be scheduled prior to the operation of a live flight.

v. an international legal rest period must follow a deadhead to and from a SIBA or FDA base in a trip on which a pilot, other than a pilot on SIBA or FDA, deadheads to and from a SIBA or FDA base to perform flying described in Section 12.D.1.b. (above) (i.e., the pilot is not assigned to the SIBA or FDA location, but is assigned to fly a trip at such a location).

c. TripsUnless otherwise agreed by the Association SIG Chairman, trips in the following categories mayshall be scheduled and operated in accordance with domestic parameters rather than international

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parameters. When such trip(s) are built, they will be designated as being subject to domestic or international parameters, as applicable.: i. trips that operate entirely within Alaska; or within or between,

Canada, Mexico, Bermuda and Puerto Rico, or between any of these locations and the contiguous 48 states.

ii. For FDA pilots, trips operated exclusively within the “European theater.” For purposes of this provision, Section 12.D.1.c.ii., the “European theater” includes airports west of 40 degrees east longitude, north of 3530 degrees north latitude and east of 10 degrees west longitude. (a) If a non FDA pilot, other than a pilot on FDA, deadheads to and

from an FDA to perform flying described in this paragraph, an international legal rest period shall follow each of these deadheads, but in any case a rest period of at least 18 hours after an intercontinental deadhead shall be scheduled prior to the operation of a live flight. The non FDA pilot shall otherwise be subject to domestic parameters.

(b) If the Company revises a trip that, prior to the revision, was scheduled exclusively within the “European theater,” and due to the revision includes activity outside the European theater, the remainder of the trip shall be subject to international parameters.

iii. If the Company opens a new FDA to operate trips that are not in the European theater, the parties shall meet and discuss whether trips assigned to that base should be eligible for construction under Section 12.D.1.c. If the Company and the Association agree, trips in that new FDA may be constructed under Section 12.D.1.c.

d. International Duty Free Buffer i. A pilot shall be relieved of all duty for at least 24 consecutive hours

prior to the start of an international trip scheduled to exceed 120 consecutive hours. A pilot may, however, be on reserve (during which time he performed no flying or standby duty) within 24 hours of the showtime for an international trip scheduled to exceed 120 consecutive hours.

ii. A pilot shall be relieved of all duty and reserve availability for at least 48 consecutive hours at the conclusion of an international trip that exceeds 120 hours TAFB, except for trips scheduled in accordance with Section 12.D.1.c.i. If the 48 hour buffer conflicts with an R-24 pilot’s notification window, he shall be responsible for reserve assignments placed in VIPS at least 24 hours prior to the scheduled

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showtime of the assignment (as described in Section 25.M.3.a.iii.(b)).

iii. A pilot may waive thisthe international buffer (i.e.,buffers set forth in Section 12.D.1.d.i. or D.1.d.and ii.). A pilot is deemed to have waived any conflict with the international buffer resulting from a bid line adjustment, reassignment trip, or a volunteer or draft assignment.

e. International Emergency Replacement If it is necessary to position a pilot to a location outside the contiguous 48 states, to replace another pilot who cannot complete his trip, the positioning pilot’’s duty period may be extended as necessary, subject to the following conditions: i. no field emergency pilot is available; and ii. operational requirements prevent the positioning pilot from being

scheduled in compliance with normal scheduling parameters (i.e., Section 12.D.5.); and

iii. the duty time extension must be authorized by the System Chief Pilot or his designee; and

iv. the class of service for a deadhead scheduled for less than 16 hours on duty shall comply with Section 8.A.4.c.i. and A.4.c.ii. The class of service for a deadhead scheduled to exceed 16 hours on duty shall comply with Section 8.A.4.c.iii.(b). A lower class of service may be authorized by the Vice President, Flight Operations, or his designee. In any case, the pilot’’s deviation bank shall be credited as provided in Section 8.A.4.c.v. (highest available class); and

v. the pilot shall receive an international legal rest period following the deadhead.

vi. If a pilot’s duty period is extended under the provisions of this paragraph, he shall be compensated as follows: (a) If the pilot is not a reserve pilot, he shall be compensated trip

guarantee at 150% of his normal pay rate. (b) If the pilot is a reserve pilot, 100% of the trip guarantee shall be

credited toward RLG and leveling, and the remaining 50% shall be compensated in addition to RLG.

f. A double crew may be scheduled only when the duty period requires such crew, or when the Company anticipates that such crew may be required.

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g. An international alert call will be given to all pilots on international flights by the departure city ramp at least 1 hour prior to scheduled pick-up time.International Alert Calls i. International alert calls shall be available as follows:

(a) Upon request, flight crews in domicile will receive an alert call for trip departures to ANC or HNL, and intercontinental destinations (e.g., to Europe, South America, or Asia), but not Canada, Caribbean, or Mexico (Central America) destinations;

(b) In advance of duty periods whose first revenue flight has an origin and destination outside the contiguous 48 States, regardless of scheduled duty time;

(c) Flight crews not in domicile will receive an alert call for trip departures to ANC or HNL, and intercontinental destinations (e.g., to Europe, South America, or Asia), but not Canada, Caribbean, or Mexico (Central America) destinations.

ii. Procedures for alert calls may vary by location, but in any event shall be provided at least 1 hour prior to scheduled pick-up time.

iii. Alert calls are provided on the basis that they do not start a pilot’s duty clock; should regulations apply which require a pilot’s duty clock to start when he receives an alert call, there shall no longer be any alert call requirement in force.

h. [Reserved]The Company shall pursue FAA approval of an enhanced rest environment on B767 aircraft. Any augmented duty periods on B757 or B767 aircraft lacking an enhanced rest environment, shall require an enhanced sleep opportunity (ESO). The ESO shall be required prior to the flight segment if the flight segment departs from a location outside the pilot’s base. The ESO shall be required following the flight segment, unless that flight segment ends at base. The ESO shall consist of a duty free period of at least 36 hours. The ESO may be waived by the pilot operationally.

i. 1-in-7 A pilot shall be relieved from all duty for at least 24 consecutive hours at least once during any seven consecutive days.

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2. International Grid The international grid and its related crew planning limitations shall apply until 96 hours prior to the showtime of an international trip or series of trips, other than those scheduled in accordance with Section 12.D.1.b. or 12.D.1.c. Trips constructed and revisions that occur after that time shall be governed by Section 12.D.3. through D.10.

INTERNATIONAL GRID

Inbound Flight

Segment Crew

Complement Sleep State Scheduled Duty Number of Landings

Block Hours

TZD of 5 or more

2 Pilots

Reset 13:30 3

8 Reset 12:00 4

Adjusted 10:00 2

Not Adjusted 8:30 2

2 Pilots + RFO

Reset 13:30 2

12 Adjusted 12:30 2

Not Adjusted 10:00 2

2 Full Crews (Non-A380)

Reset 18:00 *1

16 Adjusted 16:00 *1


2 Full Crews (A380)

Reset 20:00 *1

16 Adjusted 18:00 *1


Reset

13:30

3

2 Pilots 1 S/O[Reserved]

Adjusted[Reserved] 12:30[Reserved] 2[Reserved] 12[Reserv

ed] Not Adjusted[Reserved] 10:00[Reserved] 2[Reserved]

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Reset[Reserved] 22:00[Reserv

ed]

2[Reserved]

2 Full Crews

+ 1 Pilot

(A380)[Reserved]

Adjusted[Reserved] 20:00[Reserved] 2[Reserved]

20[Reserved]


Not Adjusted[Reserved] 20:00[Reserved] 1[Reserved]

TZD of less than 5

2 Pilots

Reset/Adjusted 13:30 3

8 Reset/Adjusted 12:00 4


2 Pilots + RFO Reset/Adjusted 13:30 2

12 Not Adjusted 10:00 2

2 Full Crews (Non-A380)

Reset/Adjusted 18:00 *1 16


2 Full Crews (A380)

Reset/Adjusted 20:00 *1 16

Not Adjusted 18:00 *1

2 Pilots 1 S/O[Reserved]

Reset/Adjusted[Reserved] 13:30[Reserved] 3[Reserved]

12[Reserved] Not


2 Full Crews

+ 1 Pilot

(A380 Only)[Reserved]

Reset/Adjusted[Reserved] 22:00[Reserved] 2[Reserved] 20[Reserv

ed] Not Adjusted[Reserved] 20:00[Reserved] 1[Reserved]

*This international grid landing limit may be increased by one for the accommodation of a scheduled “tech stop,” or where otherwise authorized by the Vice-President of Flight Operations, System Chief Pilot, or Director of Operations.

a. For purposes of applying the international grid, the following values shall apply: i. A layover of 32 hours or more is a reset, provided, however, that for

European SIBA only, after deadheading into theater, an immediate layover of 30 hours or greater acts as a reset.

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ii. A layover of 18 hours or more is adjusted. iii. A layover of less than 18 hours is not adjusted. iv. Duty periods including tech stops (e.g., HNL-NAN-SYD) may be

scheduled to operate up to reset duty limits provided that the preceding layover is at least adjusted.

b. After crossing 5 or more TZD remain on top half of the chart until a reset layover occurs.

c. A pilot shall not be scheduled for more than 43 “not adjusted” rests in a row (containing no more than 4 hub turns).

d. After an inbound of 5 or more TZD a reset is required if more than 1 “not adjusted” rest is scheduled.

e. International Grid minimum layovers shall be as follows:

Preceding Duty Period

Required Layover (Hours)

Duty Period Following

Revenue Operation 14 Revenue Operation

Revenue Operation 12 Hotel Standby

Revenue Operation 12 Deadhead Only

Deadhead Only 14 Revenue Operation

Deadhead Only 12 Hotel Standby

Deadhead Only 12 Deadhead Only

Hotel Standby 12 Revenue Operation

Hotel Standby 12 Hotel Standby

Hotel Standby 12 Deadhead

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f. Duty periods involving deadheads shall be scheduled in accordance with the following:

LANDINGS DUTY LIMITS

DH only Live to DH

DH to live

DH only

Live to DH DH to live

no limit no limit Grid Section 12.D.5.b. and D.5.c.

Grid based on reset

parameters

Grid

g. A pilot on a trip or series of trips containing any duty period with a TZD

of 5 or more shall be scheduled for a layover of at least 32 hours at least once in any period of 120 consecutive hours; provided, however the 32 hour layover shall not be required after all live operations in a trip are finished. For trips that do not cross 5 TZDs, a pilot shall be scheduled for a layover of at least 36 hours at least once in any period of 168 consecutive hours; provided, however, the 36 hour layover shall not be required after all live operations in a trip are finished.

h. Trips shall be constructed with a maximum of 313 hours TAFB in a 4-week bid period, andor 390 hours TAFB in a 5-week or 6-week bid period.

3. International Block Hour Limitations (Scheduled)

a. 2-Pilot Crew A pilot operating as part of a two pilot crew shall not be scheduled in excess of the block hour limitationslimitation provided in Section 12.C.2. (8-in-24 and related rules).

b. 3-Pilot Crew A pilot operating as part of a three pilot crew (CAP, and F/O, and RFO or CAP, F/O, S/ORF2) shall have the following scheduled block hour limitations: i. Not more than 12 SBH in any 24 consecutive hours on a non-stop

flight.;

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ii. Not more than 11:30 SBH in any 24 consecutive hours on a flight having 1 intermediate landing.;

iii. Not more than 10 SBH in any 24 consecutive hours on a flight having 2 or more intermediate landings.

4. International Block Hour Limitations (Operational) a. 2-Pilot Crew

A pilot operating as part of a two pilot crew shall be subject to the operational block hour limitations provided in Section 12.C.2. (8-in-24 and related rules).

b. 3-Pilot Crew If a pilot operating as part of a three pilot crew (CAP, and F/O, and RFO or CAP, F/O, S/ORF2) is projected to exceed the scheduled block hour limitations provided in Section 12.D.3.b. (above), since the completion of his last international legal rest period due to headwinds, ATC limitations, or other unavoidable circumstances (including an intermediate stop for these reasons), he may continue to his base or his original destination, whichever occurs first. However, a crew shall not block out from a location after having exceeded 12 ABH in a 24 hour period without a legal rest period.

5. International On-Duty Limitations (Scheduled) a. 13:30 Hour Duty

A pilot may be scheduled to a maximum of 13:30 hours on-duty. b. 16 Hour Duty For Duty Periods Involving Deadhead Only

If a duty period is comprised entirely of deadhead, that duty period shall be limited to a maximum of 16 hours scheduled on duty, except as provided in Section 12.D.5.c. (below),

c. Deadheads Over 16 Hours on Duty Deadheads may be scheduled over 16 hours in a single duty period subject to the procedures outlined in Section 8.A.4.c.iii.

6. International On-Duty Limitations (Operational) a. The 13:30 hour scheduled on-duty limitation contained in Section

12.D.5.a. (above), may be operationally extended to a maximum of 15:00 hours.

b. The 16 hour scheduled on-duty limitation contained in Section 12.D.5.b., may be operationally extended to a maximum of 17:30 hours.

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i. If the deadhead departure is delayed more than 2 hours, the pilot shall promptly advise CRS of such delay; and

ii. if, due to the delay, the pilot is projected to exceed operational limitations, he shall advise CRS, and shall be given a legal rest period, or with mutual consent of the pilot and CRS, the pilot may extend up to the time required to complete the deadhead or until cancellation, whichever occurs first. CRS shall ensure that adequate crew rest is provided at the destination.

c. If the Company's operations or flight(s) are disrupted due to extenuating circumstances not within the control of the Company, including, but not limited to, severe weather, natural disasters, ATC limitations or significant system disruptions, the following shall apply: i. A pilot may, subject to Section 12.D.6.c.ii., (below), be scheduled to

continue on duty up to 1:30 past operational limits, or 16 hours, whichever is greater, with the prior approval of the Vice President, Flight Operations, or his designee, if necessary to complete his scheduled or rescheduled flight sequence or return to base, whichever occurs first. Block time limitations as described in Section 12.D.4., still apply.

ii. In the event of a trip delay, revision or operational emergency that extends, or would extend, a pilot beyond the operational limitations, a pilot who becomes excessively tired shall notify CRS immediately and then speak to the Duty Officer about his situation. Depending on the pilot’’s situation and the Duty Officer’’s assessment, one of the following alternatives shall be enlisted to address the issue: (a) The pilot’’s duty may be revised to include some alternative duty

that is at or within operational limits, or; (b) The pilot may be given a legal rest period. In this case, the pilot’’s

schedule thereafter may be postponed until after the legal rest period is concluded.

(c) Should it be determined that the pilot requires more rest than the legal rest provided pursuant to Section 12.D.6.c.ii.(b) above, the pilot may be removed from the balance of his trip and be placed in sick leave status. If the pilot is placed in sick leave status, the pilot shall be automatically returned from sick leave at the conclusion of his trip.

(d) The FERC shall meet and discuss all instances to which Section 12.D.6.c.ii. applied.

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iii. Deadheads that are necessary in any of the situations described in Section 12.D.6.c.ii., shall be accomplished in accordance with the Agreement.

iv. Nothing in these paragraphs shall diminish a pilot’’s responsibility to ensure that he has adequate rest prior to reporting for duty.

7. International Rest Provisions a. An international legal rest period shall be a minimum of 12 hours. b. An international duty period shall be preceded by a duty free period of

not less than 12 hours, except for international trips scheduled to domestic parameters (as described in Section 12.D.1.b. and D.1.c.).

c. If a pilot's international duty period is scheduled to exceed 8 block hours or 12 hours on-duty, he shall be scheduled for a rest period of at least 17 hours following that duty period. That rest period may be operationally reduced: i. to a rest period of 16 hours;. ii. to a minimum of 12 hours if the ABH do not exceed 8 hours and the

actual hours on duty do not exceed 12 hours; or iii. to a minimum of 12 hours, as provided in Section 12.D.7.d. (below).

d. If an international flight arrives late at a layover location, the international rest period at that location may be reduced to the extent necessary to protect an on time departure for the next duty period. The international rest period, however, shall not be less than 12 hours plus 1 minute rest for each minute by which the duty period preceding that rest period exceeded the applicable scheduled on duty limitation.

e. Except for international trips scheduled to domestic parameters (as described in Section 12.D.1.b. and D.1.c.), upon completion of an international duty period and prior to a domestic duty period, a pilot shall receive a minimum international legal rest period unless a greater legal rest period is required as provided in Section 12.CD.6.7.b. (above).

8. International Double Crew Provisions (Non-ULR) a. A double crew for a 2-pilot aircraft shall be:

i. Scheduled: A double crew may be scheduled with 2 Captains and 2 First Officers or with 1 Captain and 3 First Officers, provided, however that for the first 3 bid periods during which a new lane segment is being developed, a double crew flying that lane segment shall consist of 2 Captains and 2 First Officers.

ii. Operational: 1 Captain and 3 First Officers 2-Pilot Aircraft

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b. A double crew may be utilized only on aircraft equipped with FAA approved rest provisions for each pilot not flyinga bunk for each resting pilot that allows for a flat sleeping position and is located separate from the flight deck and in an area that is temperature- controlled, allows the flight crew member to control light, and provides isolation from noise and disturbance.

c. Block Hour Limitations A 4-pilot double crew shall not exceed 16 block hours in any 24 consecutive hours.

d. On-duty Limitations A 4-pilot crew on aircraft other than the A380 may be scheduled to a maximum of 18 hours on duty, which may be extended to 19:30 hours operational. A 4-pilot crew on the A380 may be scheduled to a maximum of 20 hours on duty, which may be extended to 21:30 hours operational.

e. Rest Provisions A double crew shall be scheduled to receive a rest period following each duty period equal to or greater than the actual on-duty hours of that duty period, but not less than 17 hours. This rest requirement may be operationally reduced to 16 hours.

9. International A380 “Double Plus” (Two Full Crews and Additional Pilot(s) as Required) Provisions a. An international A380 “Double Plus” crew may be utilized only on aircraft

equipped with FAA approved rest provisions for each pilot not flying. b. Block Hour Limitations

An international A380 “Double Plus” crew shall not exceed 20 block hours in any 24 consecutive hours.

c. On-duty Limitations An international A380 “Double Plus” crew may be scheduled to a maximum of 22 hours on duty, which may be extended to 23:30 hours operational.

d. Rest Provisions An international A380 “Double Plus” crew shall be scheduled to receive a rest period following each duty period equal to or greater than the actual on-duty hours of that duty period, but not less than 17 hours. This rest requirement may be operationally reduced to 16 hours.

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9. 10. Additional Landing and Duty Extension Limitations The following additional limits apply to trips governed by SectionSections 12.D.3. through D.9., even in situations covered by Section 12.A.3. or 12.D.6.c.i. a. If a landing(s) is added to a trip governed by Section 12.D.3. through

D.9., such landing(s) shall be limited to one more than those permitted in the International Grid, provided however, that in unusual operational circumstances (e.g., air turn backs, weather/maintenance diverts, unscheduled tech stops, etc.), a pilot shall consult with the Vice President, Flight Operations or his designee, and may, at the pilot’’s election, exceed such limits in order to finish his scheduled flight sequence.

b. Any extension beyond operational limits as provided in Section 12.A.3., or D.6.c.i., shall be limited to 1:30 past operational limits, or 16 hours, whichever is greater.

10. 11. Grid Penalties This paragraph applies to all international trips except for international trips constructed under Section 12.D.1.b. or c. a. A grid penalty event (GPE) occurs in the following five circumstances:

i. A pilot’’s duty period exceeds the maximum duty permitted in the Grid based on his Grid sleep state by more than 1:30.

ii. A pilot’’s layover was less than the applicable International Grid Minimum Layover (i.e., 14 hours or 12 based on the chart in Section 12.D.2.e.).

iii. A pilot received more than 4 “not adjusted” rests in a row. Each rest after 43 non-adjusted rests shall be a separate GPE event. An initial GPE occurs when the pilot’’s sixth duty period begins without the pilot having received at least 18 hours free from duty preceding the beginning of that duty period. For purposes of Section 12.D.1011.a.iii., (this paragraph) only, an unassigned hotel standby period shall be counted as part of the rest periods preceding and/or following it (e.g., an unassigned 11:30 hotel standby period, followed by a 12:30 rest period will be counted as an adjusted rest).

iv. A pilot exceeds the landing limitations as permitted in the grid in any single duty period.

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v. 30-in-120 Nonconformance Penalty If a pilot’s trip did not conform to 30-in-120, (as set forth in Section 12.D.2.g., except using 30 instead of 32 hours) he shall be paid 3 CH in addition to all other compensation regardless of the 48-hour period as stated in Section 12.D.10.c., and the event shall be additive to the total count of GPEs for the trip.

vi. 34-in-168 Nonconformance Penalty If a pilot’s trip did not conform to 34-in-168. (as set forth in Section 12.D.2.g., except using 34 instead of 36 hours) he shall be paid 3 CH in addition to all other compensation regardless of the 48 -hour period as stated in Section 12.D.1011.c., and the event shall be additive to the total count of GPEs for the trip.

b. If all GPEs in a trip touch a single 48 hour period, no grid penalty shall be due, except as provided in Section 12.D.1011.a.v. or vi. (above).

c. If all GPEs do not touch a single 48 hour period, then the following penalties shall apply: i. If the trip has two or fewer GPEs, the pilot shall be paid 3 CH per

violation in addition to all other compensation. A duty period that triggers a payment under this paragraph shall be ineligible for FAR Extension Pay.

ii. If the trip contained more than two GPEs, the pilot’’s trip guarantee shall be paid a premium of 50% based on the pilot’’s normal rate of pay (i.e., if trip guarantee was at 100%, it pays at 150%,; if trip guarantee was at 125% (OTP), it pays at 175%,; if trip guarantee was at 150%, it pays at 200%). For a reserve pilot, the CH representing the 50% premium shall not be credited toward RLG, but shall be paid in addition to all other compensation, including BLG/RLG.

iii. If a trip has multiple GPEs, one of which is a 30-in-120 or 34-in-168 violation, the GPEs in that trip shall be deemed not to touch a single 48 hour period.

11. In the event that the Company acquires any Airbus A380 aircraft for use in revenue operations, the Company agrees to reinstate and honor all A380-specific language as it appeared in the 2006 and 2011 CBAs.

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E. Ultra Long Range (ULR) Flying 1. A ULR trip is a trip in which at least one revenue flight segment is scheduled

to exceed either 16 hours of block or 18 hours of duty. 2. ULR Grid

The ULR Grid is only applicable to ULR flight segments within a trip.

ULR Grid

Pre-Rest for ULR

segments beginning within +/- 1

time zone of pilot’s base

Required layover

before and after

embedded ULR flight segments

Scheduled Duty

Number of Landings in

a Duty Period with a ULR Flight Segment

ULR Flight Segment Block Hours

*24 hours

reducible to 18 hours

40 hours reducible to 38 hours *

20:00

1 18:00

*A lower limit may be agreed upon by the Association’s SIG Chairman.

3. As provided in Section 12.A.10., ULR operations shall be evaluated as part of the FRMS. In addition to the provisions in Section 12.A.10., following the FRMS study, and with the unanimous approval of the Scientific Advisory Committee, the Company may seek approval by the FAA for ULR city pair flight segments which shall include the specific pairing design as approved by the DCSC. If approved, the specific pairing design shall not be materially altered without the consent of the Association.

4. Other ULR Scheduling Limitations and Provisions Upon FAA’s approval of ULR operations under the Company’s FRMS, and notwithstanding Section 12.D.8. above, all ULR-related provisions contained in this Agreement shall become immediately applicable for the specific pairing design approved by the FAA.

a. A ULR crew may be utilized only on aircraft equipped with a bunk for each resting pilot that allows for a flat sleeping position and is located separate from the flight deck and in an area that is temperature- controlled, allows the flight crew member to control light, and provides isolation from noise and disturbance.

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b. Block Hour Limitations A ULR crew shall not exceed 18 block hours in any 24 consecutive hours.

c. On-Duty Limitations A ULR crew may be scheduled to a maximum of 20 hours on duty, which may be extended to 21:30 hours operational. Any extension beyond the operational limit up to legal limits shall include the protections contained in Section 12.D.6.c.

d. Rest Provisions A ULR crew shall be scheduled to receive a rest period of 40 hours or greater, prior to and after a ULR flight segment. This rest period may be operationally reduced to 38 hours. However, if the ULR flight segment is scheduled to depart within (+/-) 1 time zone of the pilot’s base, and the flight sequence prior to the ULR flight contains no more than a single flight segment, the scheduled rest period required prior to the ULR flight segment shall be 24 hours, which may be operationally reduced to 18 hours.

e. There shall be no more than 2 scheduled ULR flight segments per trip, except on an operational basis with the pilot’s consent.

f. A ULR double crew shall be scheduled with a minimum of 2 Captains but, operationally, may consist of 1 Captain and 3 First Officers.

g. Upon a return to base from a trip greater than 168 hours TAFB which concludes with a ULR flight segment, a ULR crew shall receive a 56 hour period free from duty, encompassing 3 Physiological Nights Rest (0100-0700 LBT).

h. The parties recognize that the matters governed by Section 12.E. are new to our system and involve as yet unforeseen operational considerations. As a result, the parties foresee that flexibility will be required in order to ensure the smoothest possible transition to the application of ULR rules. To that end, measures facilitating the implementation, operation, and/or administration of the provisions in Section 12.E. may be implemented if agreed upon in writing by the Vice President, Labor Relations and the Association’s MEC Chairman.

[Note: Other amendments in Sections regarding ULR] 1. Section 5.E.1.b.iii. shall be amended to provide as follows:

Duty periods in excess of 9:00 hours shall receive 2 meals. One meal shall be hot if the scheduled aircraft is equipped with an oven. ULR duty periods shall receive 3 meals. Menu selection shall be provided when available.

2. Section 12.D.8. shall not apply to ULR operations.

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SECTION 13 LEAVES OF ABSENCE Definitions: FILE/ISSUE A document shall be deemed "filed” or “issued,” as applicable, on the day in which the document is postmarked, or if Federal Express is used, on the day in which the document is submitted to the Company for shipment. MATERNITY PERIOD A pilot’s maternity period begins on the date of pregnancy and extends through 120 days following the date of the end of the pregnancy. A. General

1. A pilot’s filing for a leave of absence shall be directed to the Regional Chief Pilot (RCP)his Fleet Captain. The filing shall be submitted as far in advance as practicable prior to the intended start of the leave filed for, except as provided in Section 13.B.1. (Personal Leave of Absence). The filing shall contain a statement of the type of leave and the reason(s) for which the leave of absence is being filed for, except that reasons for a Medical Leave of Absence shall be sent to the Company’s aeromedical advisor, as provided in Section 13.C. The RCPpilot’s Fleet Captain, or ahis designee, shall respond in writing to a filing for a leave of absence as soon as practicable, but in no event later than 15 calendar days following receipt of the filing.

2. A pilot returning from a leave of absence is expected to possess FAA certificates and ratings consistent with the crew status to which the pilot is returning, as provided in Section 24.A.3.a., A.3.b. and A.3.c.

3. A pilot returning from a leave of absence, other than a medical leave of absence, who does not possess an FAA medical certificate, shall be placed on sick leave or Medical Leave of Absence, provided the pilot is otherwise eligible for that leave as provided for in Section 13.C. (including verification of his medical condition by the Company’s aeromedical advisor if required by the Company).

4. Rules of conduct applicable to pilots in active service apply to pilots on leaves of absence. The standard for administering discipline and discharge for a pilot on a leave of absence shall be as provided in Section 19. Notice for preliminary hearings and other disciplinary proceedings shall be sent in

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accordance with Section 19.E.1. and Section 19.F.4. and F.5. A pilot may designate in writing an alternative mailing address for all notices.

5. A pilot on a leave of absence shall not engage in other flying employment without prior written permission from the System Chief Pilot, or his designee.

6. The following provisions shall apply to a pilot capable of returning to active service following a leave of absence. a. A pilot on leave of absence in excess of a full bid period shall contact

the RCPhis Fleet Captain to notify the RCPhim of the return date to active service; and the RCPhis Fleet Captain shall aid the pilot in coordinating such return. i. The contact shall occur at least 30 days prior to the anticipated end

of his leave of absence. The RCPFleet Captain shall confirm, in writing if requested, the return date and resumption to active pay status, as provided in Section 13.A.6.a.ii.

ii. Provided that a pilot has complied with Section 13.A.6.a.i., the pilot shall be returned to active pay status upon his return. Failure to comply with Section 13.A.6.a.i., may result in the pilot’s return to active pay status being delayed an amount equal to the notification delay. In no case shall the pilot be returned to active pay status later than 30 days following the pilot’s return date.

b. A pilot’s crew position upon return to duty following a leave of absence shall be determined as follows: i. If no vacancy award occurredSystem Bids closed during his

absence, the pilot shall return to the crew position heldthat was the pilot’s then currently awarded/assigned crew position immediately prior to the commencement of the leave of absence.; or

ii. If a vacancy award(s) occurred during his absence, the pilot shall be awarded the crew position the pilot would have held had he not been on leave of absence, as determined by the pilot’s seniority and standing bid as of 1700 GMT, 3 days following his contact with the Regional Chief Pilot specified in Section 13.A.6.a. A pilot may not be awarded a crew position at an FDA if that award would cause an excess at the FDA.any System Bids closed during his absence, he shall select from among those crew positions that: (a) he could have been awarded/assigned, but for his absence, on

any of the System Bids that closed during his absence; and (b) in which, upon his return to active status, he would not be the

junior awarded/assigned pilot in that crew position.

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c. If training is required for a pilot upon returning to active status from a leave of absence, the pilot’s current crew position does not differ from the pilot’s currently awarded/assigned crew position, and requalification training is required, requalification training for the pilot’s current crew position shall start within 60 days of his return date, if either: i. No System Bid closed during his absence; or ii. A System Bid closed during his absence, but he did not (or could not)

select a new crew position (as provided in Section 13.A.6.b.ii. above).

d. If upon returning to active status from a leave of absence that training shall be provided, the pilot’s current crew position differs from the pilot’s currently awarded/assigned crew position, the pilot’s training shall be handled in the same manner as provided in Section 13.A.6.e. (below).

e. If the pilot selects a new crew position (as provided in Section 13.A.6.b.ii. above), training for that crew position shall be as follows: i. If no vacancy award occurred during the pilot’s absence, the

requalification training in the pilot’s current crew position shall commence no later than 30 days following his return date; orthe System Bid on which the pilot was awarded/assigned his selected crew position has been trained to completion, the pilot shall be assigned to start training within 60 days of his return.

ii. If the pilot was awarded a vacancy from a posting prior to the commencement of the leave of absence for which the pilot has not yet completed training and/or if a vacancy award(s) occurred during the pilot’s absence and the pilot elected a new award, training will be assigned as follows: System Bid on which the pilot was awarded/assigned his selected crew position has not been trained to completion and if he requires full requalification training (i.e., training with a footprint similar to ITU) in his current crew position upon his return, the pilot shall be assigned to start training for his selected crew position within 60 days of his return.

iii. If the System Bid on which the pilot was awarded/assigned his selected crew position has not been trained to completion and if the pilot requires 24-requal training in his current crew position upon his return: (a) If the training date from the prior award has lapsed, and the pilot

has not elected a new award, training shall commence no later than 30 days following the return date, either in a previously vacated date or new slot; or the pilot will be assigned to start training for his selected crew position within 60 days of his return

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if a junior pilot in the case of a crew position award (or a senior pilot in the case of a crew position assignment) has been awarded/assigned a training date.

(b) If the training date from the prior award has not lapsed, or the pilot was awarded a new crew position, the Company has the following options:the pilot will be assigned to start 24-requal training within 60 days of his return if a junior pilot in the case of a crew position award (or a senior pilot in the case of a crew position assignment) has not been awarded/assigned a training date. Such pilot shall be eligible to bid for and/or be assigned to training dates (for his awarded/assigned crew position) following completion of his 24-requal training. (1) For the current crew position:

(A) commence requalification training no later than 30 days following the return date; or

(B) withhold the commencement of training, in which case the pilot shall be paid at the current pay rate while he awaits the commencement of training for the awarded crew position; and/or

(2) For the awarded crew position, commence training either: (A) on the scheduled training date for the awarded crew

position if the commencement of the date is no later than 30 days following the return date;

(B) out-of-seniority order with the training commencing no later than 30 days following the return date; or

iv. If the pilot’s selected crew position requires a BTA but the pilot requires requalification training in his current crew position, he will be assigned to start requalification training within 60 days of his return. His BTA shall be effective on the first day of the first full bid period following the completion of requalification training. (C) after the 30 days following the return date provided the pilot is paid at the current pay rate as stated in Section 13.A.6.c.ii.(b)(1)(B).If the pilot’s selected crew position requires a BTA but the pilot does not require requalification training in his current crew position, his BTA shall be effective on the first day of the first full bid period following his return.

f. d. A pilot returning from a leave of absence who requires training prior to returning to line flying shall be compensated as provided in Section 4.I.6.

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g. e. A pilot returning from a leave of absence who is able to return to line flying without training shall be scheduled as follows: i. A pilot whose return coincides with the beginning of a bid period shall

be afforded the opportunity to bid for that bid period in the normal bid process prior to his return., in accordance with Section 25.C.6.

ii. A pilot who returns for a portion of a bid period shall be assigned a custom line (Section 25.I.) for the bid period in which he returns.

7. A pilot on a leave of absence shall continue to accrue seniority and longevity for the duration of the leave of absence, except longevity accrual for a pilot on a Personal Leave of Absence shall be limited to 60 days. Adjustments to longevity, if any, shall be made upon a pilot’s return from a leave of absence.

8. A pilot on a leave of absence may be converted to furlough status in accordance with Section 23. If the pilot is recalled from furlough prior to the date on which he was scheduled to return from a leave of absence, he shall have the option of returning to a leave of absence status following his recall from furlough.

9. With the coordination of the System Chief Pilot, or ahis designee, a pilot on a leave of absence shall be permitted to convert the current leave of absence to another type if the pilot otherwise qualifies for the leave. Nothing in this paragraph shall require the Company to convert a pilot to a leave of absence that the Company is not otherwise required to permit.

10. Failure to return to work at the expiration of a leave of absence shall cause a forfeiture of a pilot’s seniority and employment rights.

11. Pilots needing more information regarding possible benefit continuation during or after a leave of absence should consult an Association official, benefits specialist, personnel representative, legal representative and/or refer to theirthe current Pilot BenefitsBenefit Book (PBB).

12. A pilot on a leave of absence shall be granted access to VIPS as if he were an active pilot, except for interactive functions relevant only to pilots in active status.

13. Vacation period allocation following a pilot’s return to active pay status from a leave of absence shall be treated as follows: a. A pilot shall retain the previously awarded or assigned vacation

period(s). b. If a pilot is unable to take the scheduled vacation or bid for vacation due

to a leave of absence, then within 30 days following the pilot’s return to active pay status, the pilot shall select a different or new vacation

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period(s). The selection shall be made from among the following slots in the current year: i. open slots; or ii. slots currently held by any junior pilot in the crew position.

c. If a pilot fails to make a selection as described above, the Company may assign the pilot a vacation slot in accordance with Section 13.A.13.a.,b., and d.

d. If a pilot's vacation is unable to be rescheduled/assigned as provided above, the vacation bank shall be bought back, subject to the provisions of Section 7.G.6., or as an exception to the 40% buy back, the pilot may request to have the CH of vacation paid. Any vacation not bought back shall be a positive adjustment to the pilot’s vacation bank for the following year.

e. Selection of a junior pilot's vacation slot shall not impact any junior pilot's vacation award.

14. Any medical information received by the Company’s aeromedical advisor under this Section shall be treated on the same basis as medical information in Section 15.H.

B. Personal Leave of Absence 1. A filing for a Personal Leave of Absence shall be submitted as far in

advance as practicable. In emergency circumstances, a Personal Leave of Absence may be granted on short notice for up to 30 days; however, if the pilot seeks additional leave beyond the 30 days, the pilot must provide at least 20 calendar days notice prior to the start of the additional leave.

2. At the discretion of the Company, a pilot may be granted a Personal Leave of Absence without pay for a period not to exceed 90 days. The System Chief Pilot, or his designee, may require a pilot to exhaust earned and unused vacation prior to granting a Personal Leave of Absence. A Personal Leave of Absence may be extended for additional periods, not to exceed 90 days per extension. No personal leave, including extensions, shall exceed 24 months; provided, however, that in extenuating circumstances and on a case-by-case basis, the Vice President, Flight Operations, or his designee, may extend such leave beyond 24 months.

C. Medical Leave of Absence 1. A pilot who files for a Medical Leave of Absence, because the pilot is unable

to perform the duties as a pilot due to illness or injury, shall be placed on medical leave of absence without pay, provided the need for such leave is substantiated, if required by the Company, as provided in Section 13.C.2.

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2. The Company may require a pilot filing for a Medical Leave of Absence to submit medical documentation substantiating the need for such leave from a physician selected by the pilot. Such medical documentation shall be submitted to the Company’s aeromedical advisor. The Company’s aeromedical advisor shall inform the RCPpilot’s Fleet Captain as to whether the pilot is able to perform his duties due to illness or injury, in accordance with Section 15.H. Disputes concerning a pilot’s physical condition shall be resolved as provided in Section 15 (Medical Standards).

3. A medical leaveMedical Leave of absenceAbsence may not exceed a total continuous period of 7 years.

D. Extended Military Leave of Absence (Leaves Other than Annual Training)Service in the Uniformed Services (More than 30 days)

1. Upon receipt of notification from the military, a pilot shall notify the Company of his need for leave and the anticipated beginning of such leave. Upon filing for an Extended Military Leave of Absence with a copy of the pilot’s military service orders, a pilot shall be granted a leave of absence without pay to perform military service. All militaryAll leaves of absence and related re-employment rights and benefits concerning service in the uniformed services shall be governed by applicable statutes and regulations.

2. When warranted by operational needs, the Company may request appropriate military or government authorities to defer a pilot’s military service. Once notified of a FDA assignment, a pilot shall advise the appropriate military authorities in writing of his expected absence from the country.

E. Family Medical Leave (FMLA Type Leaves of Absence) 1. General

a. FMLA-type leave shall mirror the 12 week (maximum) unpaid leave rights and continuation of certain benefits as provided in the Family Medical Leave Act of 1993 (FMLA).

b. To be eligible for an FMLA-type leave, the pilot must have been an employee for at least 12 months with the Company.

c. Except for FMLA-type leaves under Section 13.E.3. and 13.E.4., where a combined total of 12 weeks of unpaid leave is available, in cases where both spouses are employed by the Company, the employees are each entitled to a total of 12 weeks unpaid leave of absence for FMLA-type leaves.

2. Notification

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A pilot shall notify his/her flight manager at least one bid period prior, if foreseeable, or as soon as is practicable if unforeseen, about the pilot’s need for a FMLA-type leave of absence.

3. Absence for Birth of a ChildThe parties recognize that issues regarding the sharing of pilot resources between the Company and the various branches of the uniformed services are important concerns for both the Company and its pilots with service obligations. The parties pledge their mutual cooperation when dealing with periods of service and re-employment issues as they might affect both the Company and its pilots. The Company and Association’s Military Affairs committee shall endeavor to minimize and resolve issues involving pilots and their service in the uniformed services. a. An FMLA-type leave for birth and care of a child shall be granted

consistent with existing FMLA provisions. Additional/other leaves outside the 12 week FMLA period may be available if justified by attendant medical/other circumstances. Should a pilot’s medical condition require the pilot to use sick, disability, or medical leave, the use of these shall be governed by the provisions applicable to sick leave, disability and medical leave respectively.

b. Pilots who continue to work and require a maternity uniform accommodation shall be provided a one-time allowance of $150.00. If the initial maternity uniform is not in compliance with future uniform standards, an additional allowance will be provided to bring the uniform into compliance.

4. Absence for Adoption or Foster Care ParentsThe Company shall consult with the Association’s Military Affairs committee prior to publication of Company guidelines concerning long-term periods of service. An FMLA-type leave shall be granted to adopting or foster care parents for up to 12 weeks provided the leave occurs within the 12 month period beginning 2 weeks prior to the date of adoption or placement of the child (and ending 12 months later).

5. Leave to Take Care of the Spouse, Son, Daughter or Parent of the Employee With a Serious Health ConditionContract requirements and guidance pertaining to short-term periods of service (less than 31 days) are found in Section 25.X. A pilot shall be granted a family leave of up to 12 weeks to care for a spouse, son, daughter or parent of the employee if such person has a serious health condition. For purposes of this provision, a spouse means a husband or wife, not a domestic partner. A son or daughter means a child under 18, a child enrolled as a full time student and less than age 23, or a child age 18 or older if “incapable of self-care because of a mental or physical disability.” A parent means a biological parent of the employee, not an in-law. The

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meaning of serious health condition is intended to be synonymous with the same term in the FMLA.

6. Limitations a. For purposes of FMLA-type coverage, 12 weeks means 12 calendar

weeks per year, irrespective of how much or how little flying, if any, a pilot might do during the 12 week period, and irrespective of how the pilot might manipulate his/her schedule via trip trade, vacation, etc.

b. A pilot electing to take an FMLA-type leave during a calendar year shall be entitled to move and use vacation in conjunction with such leave. If a pilot requesting an FMLA-type leave is scheduled to receive more than a 20% vacation buyback for the year, the Company may insist that the pilot take all or some portion of the requested leave as vacation.

c. To the greatest extent practicable, a pilot shall take FMLA-type leaves in full bid period increments but in no event shall the 12 week leave be taken in any more than 4 blocks, unless a need for more intermittent leave is medically substantiated.

d. Prior to and upon return from FMLA type leaves, a pilot will remain eligible for sick leave, (both regular and disability), vacation and disability, under the terms normally applicable to those benefits.

E. [RESERVED] F. Absence During a Maternity Period & Maternity Leave of Absence

1. During a Maternity Period in conjunction with her pregnancy/care for her newborn child, a pilot may elect any of the following, either alone, or in sequence: a. Vacation

A pilot may use available vacation hours in her vacation bank during the Maternity Period as follows: i. The use of available vacation hours must be a part of a single,

continuous period of absence within a Maternity Period; ii. If a pilot elects to use available vacation hours during a Maternity

Period, the pilot shall notify her Chief PilotFleet Captain, or his designee, of the election. If the need to use vacation was foreseeable, the notification shall occur prior to the opening for bidding of the initial affected bid period. If unforeseeable, the notification shall occur as soon as practicable;

iii. The pilot shall provide her Chief Pilot (Fleet Captain, or his designee), or at her election the Company’s aeromedical advisor,

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with a medical certification of pregnancy or childbirth, as applicable; and

iv. A pilot who is not expected to be in a flying status at the beginning of a bid period due to her use of vacation hours during a Maternity Period shall bid in a “pay only” status. A pilot using vacation for an entire bid period may elect to take vacation in whole hour increments from 36 CH up to and including her BLG/RLG. That election may be changed from bid period to bid period and must be submitted in writing (email is acceptable) to the pilot’s Chief PilotFleet Captain, or his designee, within 48 hours following the close of bidding for the bid period to which the election pertains. In the absence of an election, the pilot shall be compensated at the BLG/RLG of her awarded line (if supported by her vacation bank).

b. Sick Leave A pilot shall be deemed automatically eligible to use sick leave within the Maternity Period from the beginning of the 21st week of pregnancy through 30 days from the end of the pregnancy, provided that the pilot provides her Chief Pilot (Fleet Captain, or his designee), or at her election the Company’s aeromedical advisor, with a medical certification of pregnancy and of the beginning of the 21st week of pregnancy or a medical certification of childbirth, as applicable.

c. Disability A pilot’s eligibility for LTD benefits shall be as provided in Section 27.

d. Unpaid Maternity Leave of Absence i. The use of an unpaid Maternity Leave of Absence must be a part of

a single, continuous period of absence within a Maternity Period. ii. If a pilot elects to be placed on an unpaid Maternity Leave of Absence

during a Maternity Period, the pilot shall notify her Chief Pilot (Fleet Captain, or his designee), of the election, if foreseeable, prior to the opening for bidding of the initial affected bid period, or as soon as practicable if unforeseeable.

iii. The pilot shall provide her Chief Pilot (Fleet Captain, or his designee), or at her election the Company’s aeromedical advisor, with a medical certification of pregnancy or childbirth, as applicable.

2. iv. An unpaidA Maternity Leave of Absence shall run concurrently with FMLA-type leave, Absence for Birth of a Child, as provided in Section 13.E.3. leave when permitted by law.

3. 2. Other uses of sick leave or vacation before, during, or after a Maternity Period are as provided by Sections 7 and 14, and other applicable Sections.

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G. Association Leave Upon filing, a pilot elected to function as a national officer of the Association or IFALPA, or appointed to national Association or IFALPA offices shall be placed on an unpaid Association Leave of Absence for the duration of such position or office. An Association Leave of Absence shall begin and end concurrent with a bid period. A pilot may not simultaneously be removed from flying under the applicable provisions in Section 18 and also be on Association Leave of Absence.

H. United States Government Executive/Legislative Leave Upon filing, a pilot who is elected to the United States Congress, or who is serving at the appointment of the President of the United States, shall be granted an unpaid United States Government Executive/Legislative Leave of Absence for the earlier of either the duration of such office or appointment, or 6 years. The Company shall not be obligated to place such a pilot on more than two such leaves consecutively.

I. Statutorily Imposed Leaves of Absence 1. All statutorily imposed leave rights and benefits (federal or state) shall be

governed by applicable statutes and regulations. The collective bargaining agreement guarantees a minimum benefit level for FedEx pilots. If required by applicable state or federal laws, the Company will provide a pilot with more generous leave benefits.

2. Pilots needing more information regarding possible benefit continuation for statutorily imposed leaves should consult with an Association, state, or Federal official, benefits specialist, personnel representative, a legal representative and/or refer to theirthe current PBB for more information about particular rights/responsibilities for statutory leaves.

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Sick Leave 14

SECTION 14 SICK LEAVE A. General

1. The purpose of sick leave is to protect a pilot from loss of pay, to the extent of his sick leave accrual, when the pilot is unable to perform his assigned duties because of injury, physical or mental illness, or trip fatigue as provided in Section 12.A.9., Section 12.C.5. b.ii., and Section 12.D.6.c.

2. A pilot may review his regular and disability sick account balances in VIPS or other Company computer systems. A pilot shall continue to accrue seniority and longevity while on sick leave.

3. A furloughed pilot shall retain his regular and disability sick accounts as follows: a. If a pilot is on furlough on the last day of the calendar year, the balance

of his regular sick account, if any, shall be transferred to his disability sick account or to the surplus program, as applicable in accordance with Section 14.D. and 14.E. (below).

b. If a pilot recalled from furlough was not in an active pay status on the first day of the calendar year, he shall be credited with a pro rata portion of his annual sick leave accrual.

4. If, having exhausted his occupational injury/illness leave, a pilot receives workers’ compensation payments and sick leave pay at the same time, he may use only enough sick leave so that the workers’ compensation payments plus the sick leave pay equals 100 percent of his BLG/RLG.

5. A pilot who has been removed from a scheduled event and placed on sick leave shall not perform any flight duty during the time that the original event was scheduled to take place, except as follows: a. by calling CRS directly, the pilot may elect to be placed back on his

original event if it has not been reassigned at the time of his “well call”; or

b. after calling in “well,” in VIPS, the pilot may elect to submit for a different event as MUS, if that event has a showtime: i. outside the footprint of the original event, or ii. at least 48 hours after the showtime of the original event.

6. The Company may require a pilot to provide the System Chief Pilot’s designee with a written statement from the pilot’s physician explaining his inability to perform his assigned duties because of illness or injury if: a. The Company has a good faith, and objective reason to question a pilot’s

use or attempted use of sick leave; or b. The pilot’s absence from duty occurred within 24 hours of the beginning

or end of the pilot’s vacation period or a “holiday.” As used herein, “holiday” means Easter, Memorial Day, Independence Day, Labor Day, Thanksgiving, Christmas Eve, Christmas, New Year’s Eve or New

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Year’s Day. For purposes of this provision, the “vacation period” is the period originally awarded, unless the period is slid and/or extended, in which case the slid and/or extended dates become the “vacation period.”

c. The pilot has requested to utilize his disability sick account in accordance with Section 14.D.2.a.

7. A pilot may elect to use vacation CH to delay or avoid going on disability. Failure to exercise this election is a factor that may result in forfeiture of CH from his vacation bank pursuant to Section 7.G.6. (40% limitation on vacation buy back).

B. Use of Sick Leave 1. If a pilot has no credit in his regular or disability sick accounts, and would

otherwise be in sick leave status, he shall be removed from his trips while he is sick and placed on medical leave of absence (without pay). If a pilot has an injury/illness that qualifies for LTD, he will receive disability benefits in accordance with Section 27.

2. Illness or Injury Notification Requirements A pilot who becomes ill or injured shall promptly notify the Company via VIPS of his unavailability for assigned duties. a. After notification of his illness or injury a pilot shall be placed on sick

leave. b. Pilots Not on Reserve

i. At 0700 LBT each day, any trip with 120 hours TAFB or more, with a showtime during the next two local base days that is assigned to a pilot who is on sick leave shall be available in open time for Bid Line Adjustments as provided in Section 25.L. At 10201000 LBT, such trips shall become available for assignment by CRS.

ii. At 0700 LBT each day, any trip with less than 120 hours TAFB, with a showtime during the next local base day that is assigned to a pilot who is on sick leave shall be available in open time for Bid Line Adjustments as provided in Section 25.L. At 10201000 LBT, such trips shall become available for assignment by CRS, with the exception of trips with a showtime prior to 1800 LBT that same day, which shall become available for assignment by CRS at 09200900 LBT.

c. Reserve Pilots The following shall apply to a reserve pilot who calls in sick for an R-day(s) or a reserve assignment: i. A pilot holding a line comprised entirely of R-days or holding a mini-

RLG consisting of a block(s) of R-days and who is sick for all such R-days shall be compensated his RLG/mini-RLG and shall have his sick leave reduced by such RLG/mini-RLG.

ii. A reserve pilot who has been given a reserve assignment(s) prior to calling in sick shall be removed from that assignment(s) commencing

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at 0900 LBT on the day prior to showtime for that assignment(s) or at the time of the sick call, whichever is later.

iii. A reserve pilot on sick leave shall be assigned open time as if he were not on sick leave (Section 25.G.3. Open Time Assignment and Section 25.M.6. Reserve Assignment Options). A reserve pilot will maintain his leveling position on the reserve list, and the scheduled credit hours for any trips he is assigned and removed as sick will be credited toward his RLG/mini-RLG and deducted from his sick bank. Commencing at 0900 LBT each day, a reserve pilot with an assignment(s) having a showtime during the next day shall be removed for sick leave and such assignment shall be available for open time assignment by CRS.

3. Well Call A pilot who is no longer ill or injured shall promptly notify the Company via VIPS, consistent with other provisions of this Agreement (e.g., medical clearance if required, Section 15 process if applicable). Except as provided by Section 12.A.9., Section 12.C.5.b.ii., and Section 12.D.6.c., a pilot shall remain in sick leave status until he notifies the Company via VIPS of his ability to return to flight status and, if applicable, is released by the Company aeromedical advisor to return to duty. If the pilot so elects, in accordance with Section 14.A.5.a., then he shall be given his original assignment(s) if it has not been reassigned to another pilot.

4. Ill or Injured During a Trip A pilot who becomes ill or injured away from base during a trip shall earn trip guarantee for the entire trip plus actual accumulated overage, if any. He shall be charged sick leave, commencing with the next showtime following his sick call and ending at the showtime for the next duty period he operates during that trip, if any, for the remaining value of his trip. A pilot who becomes ill or injured while away from his base on Company duty shall be provided with proper medical attention, including hospitalization, when required. The Company shall provide transportation, when the pilot is able to travel, back to his base, or at the pilot’s option, to his residence provided that the travel cost is limited to the travel cost of returning to base. A pilot whose placement on sick leave causes him to return to base later than scheduled shall not accrue additional CH for that late return.

5. Sick Leave Pay and Account Deductions If a pilot is removed from an assigned activity due to sick leave, the following shall apply: a. Pilots Not On Reserve (who hold trip guarantee)

If a pilot is removed from a trip, or portion thereof, for which he holds trip guarantee, he shall be compensated, and his sick leave account(s) shall be reduced by the scheduled credit hours for that trip.

b. Pilots On Reserve

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i. If a pilot is removed from a reserve assignment due to sick leave, the scheduled CH for the assignment shall be credited toward RLG and leveling and shall be charged to his sick leave account.

ii. The CH value of an assignment (or portion thereof) shall not be charged to sick leave if it would cause the pilot to exceed RLG.

iii. Upon his return to flight status, a reserve pilot may be given an assignment(s) for which he is eligible provided that assignment does not begin prior to the scheduled termination of the last activity charged to sick leave. No legality conflict shall be considered to take place between the last reserve trip charged to sick leave and a subsequent assignment.

c. If a pilot assigned as MUS, MUV, CMU, VLT or DRF is removed from a trip prior to block out due to sick leave, he shall not earn any credit hours for that trip and no deduction shall be made from his sick leave account.

d. If a pilot assigned a reassignment trip (RAT) is removed from a trip prior to block out due to sick leave, he shall be compensated the trip guarantee of the reassignment trip at 100% of his normal pay rate and his sick leave bank shall be charged accordingly.

e. If a pilot assigned a PDO trip is unable to operate that trip due to illness or injury, the scheduled trip guarantee shall be deducted from his sick leave account.

f. The sick leave account of a pilot scheduled for recurrent training shall be charged for all hours of pay received (as applicable in Section 4.I.4., Recurrent Training Pay), but not worked as a result of sick leave.

g. If a pilot, having commenced initial, transition or upgrade training, is unable to attend that training due to sick leave, he shall be compensated as provided in Section 4.I.5., and his sick leave account(s) shall be reduced by 3 CH for each day sick on a scheduled event, not to exceed his BLG/RLG.

h. If a pilot shows for a base standby assignment, but is unable to complete that assignment due to sick leave, he shall be compensated the CH he would have earned had he completed that standby and his sick leave account shall be reduced by the same amount.

i. If a pilot eligible for substitution is placed on sick leave, the following shall apply: i. If he is removed from a substitution trip(s), the SCH for that trip shall

be credited toward his original trip guarantee and deducted from his sick leave account.

ii. If he is removed from a base standby assignment, 6 CH shall be credited toward his original trip guarantee and deducted from his sick leave account(s).

iii. If he is unavailable for a day(s) of substitution eligibility, and a deduction was not made as provided in Section 14.B.5.i.i. (above) for that day, trip rig shall be calculated for the period the pilot is

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unavailable due to sick leave, and shall be credited toward his substitution guarantee and deducted from his sick leave account.

iv. The total CH deducted from his sick leave account shall not exceed trip guarantee for his original or substitution trip(s), whichever is greater.

6. Illness or Injury for Entire Bid Period A pilot who has been on sick leave for at least 30 days prior to the monthly bid closing and/or is expected to be on sick leave for the entire bid period shall bid pay only unless his Chief Pilot authorizes him to bid a line for flying purposes. However, a pilot who, at the time of bid closing, is activated but is not qualified in his assigned crew position shall be handled in accordance with Section 25.C.6. Unless such pilot is assigned a custom line as provided in Section 25.I., he shall be compensated the BLG or RLG of his pay only line and his sick leave account(s) shall be reduced by the same amount. If assigned a Custom Line, any credit hours earned as a result shall be credited to the applicable sick leave account(s).

7. Lapse of Currency A pilot on sick leave whose currency is expected to lapse shall be notified by the Company of his expected non-currency. He shall notify his flight manager of his anticipated date of return as soon as he is aware of that date. If the pilot fails to notify his flight manager of his anticipated date of return and, as a result, he cannot be scheduled for required training within 14 days following his return to flight status, he shall be placed in an unpaid status commencing on the date his currency lapses following his date of return and ending at the time his training actually commences, but no later than 14 days after his return.

C. Regular Sick Account A pilot’s regular sick account shall be credited as follows: 1. A pilot in active pay status on the first day of the first bid period of each

calendar year shall be credited with 72 CH on that day. 2. A pilot not in active pay status on the first day of the first bid period of a

calendar year shall be credited with 6 CH for each bid period remaining in the calendar year beginning with the bid period in which he returns to paid status, subject to Section 14.C.5. (below).

3. During the calendar year in which a pilot is hired, he shall be credited with 6 CH for each bid period remaining in such calendar year, subject to Section 14.C.5. (below).

4. If a pilot is placed in an inactive pay status following the first day of the first bid period of a calendar year, his regular sick account shall be reduced by 6 CH for each bid period during which he is in an unpaid status during the remainder of the calendar year. If the balance in his regular sick account is insufficient to make the adjustment, then the adjustment shall be made from the pilot’s disability sick account. This adjustment shall occur before the

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pilot’s regular sick account balance is converted and credited to his disability sick account or surplus program, as applicable.

5. If a pilot is in an active pay status for less than one half of a bid period, that bid period shall not count for purposes of sick leave accrual.

6. Administration a. A pilot removed from an activity due to sick leave shall have the credit

for that activity(ies) charged against his regular sick account. However, a pilot may elect to have that sick leave charged to his disability sick account provided he complies with the requirements of Section 14.D.2. (below).

b. At the end of the last bid period of each calendar year, any hours remaining in a pilot’s regular sick account shall be transferred to his disability sick account, subject to the disability sick account ceiling (as described in Section 14.D.1.). Any sick leave credits in excess of the disability sick account ceiling shall be transferred to the surplus program provided in Section 14.E. (below).

7. Make-Up Sick (MUS) A pilot is eligible to make up CH drawn from his regular sick account. No more than 72 CH per calendar year may be earned in MUS status to replace hours drawn from his regular sick account.

D. Disability Sick Account 1. The disability sick account ceiling shall be 686 CH. 2. Administration

a. A pilot who wishes to utilize his disability sick account shall notify his Regional Chief Pilot of the nature of his illness or injury and, if requested, provide medical documentation. A pilot may utilize his disability sick account under any of the following conditions: i. The pilot’s application for a medical certificate has been denied or

the pilot has been advised by an aviation medical examiner or the Company’s Aeromedical advisor that he is or may not be entitled to exercise the privileges of his medical certificate; or

ii. The pilot has sustained an illness or injury that is anticipated to result in the pilot’s missing more than 36 CH; or

iii. The pilot has exhausted his regular sick account. b. A pilot on sick leave for a full bid period or longer may elect to receive

sick leave in whole hour increments from 36 CH up to and including his BLG/RLG. That election may be changed from bid period to bid period and must be submitted in writing (e-mail is acceptable) to the System Chief Pilot’s designee within 48 hours following the close of bidding for the bid period to which the election pertains. In the absence of an election, the pilot shall be compensated the BLG/RLG of his awarded line.

3. Make-Up Sick—Disability

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A pilot is eligible to make up CH drawn from his disability sick account as described in Section 14.D.2.a. (above).

E. Surplus Program As provided in Section 14.C.6.b., the number of hours remaining in each pilot’s regular sick account shall be added to the existing balance in that pilot’s disability sick account subject to the account ceiling. If the addition of these hours would cause the balance of the pilot’s disability sick account to exceed the disability sick account ceiling, the value of the excess hours shall be deposited into the pilot’s Employer Contribution Unused Sick Leave Account within the Federal Express Corporation Profit Sharing Plan. The amount of the deposit shall be determined by multiplying the excess CH by the pilot’s pay rate at the end of the calendar year, or if he is no longer in active employment, by his last pay rate. The deposit shall be made during the first bid period of the following calendar year as provided in Section 28. Pilots who would otherwise have been eligible for a contribution into the pilot’s Employer Contribution Unused Sick Leave Account within the Federal Express Corporation Profit Sharing Plan but for the termination of his employment, including retirement, death or resignation, prior to the close of the calendar year shall have the value of any surplus contributed to the pilot’s Employer Contribution Unused Sick Leave Account.

F. Occupational Injury/Illness 1. A pilot who sustains a workers’ compensable injury or illness covered by

Section 16 shall be eligible for up to 168 CH of occupational injury/illness leave for each occupational injury or illness. Occupational injury/illness leave may be used for a recurrence of an occupational injury or illness up to the balance of the 168 CH not used for the original occurrence of the injury or illness. Occupational injury/illness leave is a non-accruable benefit. Sick leave shall not be used for occupational injuries or illnesses until occupational injury/illness is exhausted.

2. A pilot shall notify his Chief Pilot as soon as practical of any occupational injury or illness covered by this paragraph.

3. If a pilot exhausts his occupational injury/illness leave and remains unable to return to his scheduled duty, he may utilize his accrued sick leave as provided in this Section.

4. A pilot shall provide the Company and appropriate State authorities with medical documentation verifying an occupational injury/illness and his fitness to return to duty following the injury or illness.

5. Workers’ compensation received by the pilot for a period of absence during which he also received occupational injury/illness leave shall be reimbursed to the Company. In no case shall additional compensation received from workers’ compensation enable a pilot to receive total compensation greater than 100% of his awarded BLG/RLG.

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SECTION 15 MEDICAL STANDARDS A. General

1. Pilots shall meet the medical standards and possess a valid medical certificate consistent with the FAA standards including its waiver, limitations, restriction, special issuance and related FAA policies for the class of medical certificate required for the pilot’s crew seat.

2. Each pilot shall validate, through VIPS, the issuance of his new medical certificate not later than the earlier of the following: a. 48 hours prior to the end of his due month; or b. 0900 LBT the day prior to the start of any trip(s) scheduled to terminate

either: i. after the expiration of the pilot’s medical certificate; or ii. within 48 hours of the expiration.

3. While a VIPS notification(s) of a pilot’s pending FAA medical certificate expiration is provided to each pilot, it is the pilot’s responsibility to know and meet the medical standards by possessing a valid FAA medical certificate. Failure of a pilot to receive a VIPS notice shall not excuse the pilot’s failure to maintain his/her valid FAA medical certificate. If a pilot fails to provide the Company with confirmation via VIPS that he has a valid medical certificate as required by this paragraph, before 0900 LBT on the day prior to the showtime of a trip or R-day scheduled to start within the time period as stated in Section 15.A.2., the trip or R-day shall be removed without pay, and the pilot shall not be eligible for make-up. Trip(s) or R-day(s) shall no longer be removed after the pilot provides the Company with the required validation.

B. Company Payment of FAA Medical Exam Expenses

1. The Company shall cover an active pilot’s cost of annual or semiannual FAA medical examinations including the cost of a required EKG, up to an annual maximum of $275, which shall increase to an annual maximum of $300 on January 1, 2014. The pilot shall use the Company issued travel card if accepted by the provider. If the provider does not accept the Company issued credit card, the pilot must comply with normal non-travel reimbursement procedures that require an itemized list of the services performed by the FAA physician (i.e., FAA physical, EKG if any, physician’s office, date, charge).

2. If an active pilot (or an inactive pilot receiving LTD benefits) incurs medical expenses in order to qualify for an FAA medical certificate, which are not covered by Section 15.B.1., the following shall apply:

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a. If submitted within 90 days after having incurred the expense, the Company shall reimburse such pilot for the non-routine medical expenses if: i. the expenses were incurred at the direction of either:

(a) the FAA; or (b) an FAA designated Aviation Medical Examiner (AME) who

reasonably concluded that, in light of FAA requirements, it was necessary to perform a non-routine medical procedure in order for the active pilot to obtain or maintain his FAA medical certificate; or

ii. the expenses were incurred in order to obtain a special issuance FAA medical certificate, as required by the FAA.

b. A pilot who incurs medical expenses covered by Section 15.B.2. shall submit or cause to have submitted a medical insurance claim for any such expenses that are covered by insurance. The pilot shall provide a copy of any response(s) to the medical insurance claim to his flight manager (currently titled Assistant Chief Pilot) within a reasonable time after receiving same. The pilot shall remit to the Company the amount of any insurance claim that was both paid by the Company and reimbursed by the insurance plan. The primary purpose of Section 15.B.2.b. is to allow any group health insurance discount to be recognized for medical charges that arise out of this section and to avoid any double payment being made for the same service. If a pilot gets reimbursed from both the Company and the service is also covered and paid through the group health plan, the pilot may receive a reimbursement from the health care provider for an overpayment that actually belongs to the Company. In this case, a pilot should remit or cause to have remitted the extra monies paid back to the Company.

C. Alcohol and Drug Testing

The Company may test pilots for drugs and alcohol only in accordance with the following: 1. The Company shall maintain the drug and alcohol testing programs that are

in use on the effective date of this Agreement, as long as such testing is mandated by law or regulation. The term “programs” includes the type of specimen collected, substances for which a pilot is tested, the methods of testing and the thresholds at which testing is conducted. a. If any change in a testing program is mandated by law or regulation and

the law or regulation does not afford multiple options of compliance, the Company shall give the Association notice and shall consult with the Association at a mutually agreeable time and location concerning such change.

b. If a law or regulation mandates that a testing program be changed, but affords multiple options by which compliance can be achieved, then the

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Company and the Association shall meet to discuss the available alternatives. The initial meeting shall commence no later than 60 days following the date the final rule regarding the alternative methods is published in the Federal Register. Should the parties be unable to mutually agree on an alternative testing method within 60 days, then each side may elect to advocate an alternative before a mutually selected arbitrator from the non-disciplinary panel. The parties’ presentations shall be in writing unless either party elects an in-person hearing. The arbitrator shall select the method of testing from the two alternatives presented. If the Company is required to implement a change prior to the conclusion of the process described in this paragraph, nothing in this paragraph shall prevent it from doing so (subject to change depending on the outcome of the Section 15.C.1.b. process).

c. The Company may implement a non-mandatory change in a testing program only with the written consent of the Association.

2. The Company shall maintain the FedEx Drug and Alcohol Rehabilitation and Recertification Plan for Flight Crewmembers (HIMS program) that complies with FAA directives regarding pilots who require an Authorization for Special Issuance of a Medical Certificate. Such Plan shall continue to contain full Company participation (including monitoring) in rehabilitating, and returning to work, those pilots who need professional treatment, along with insurance coverage for medical and associated bills in accordance with the terms of those plans as provided in Section 27. Such Plan shall continue to contain payment by the Company of the initial evaluation and the associated psychiatric/psychological evaluation required in conjunction with the petition for a Special Issuance Medical Certificate as provided in Appendix H of the FOM.

3. If the Company has a reasonable basis to believe that a pilot’s ability to perform his duties is impaired for reasons relating to substances not covered by the legally mandated drug testing programs referred to above, the pilot’s case shall be handled as provided in Section 15.D.

D. Company Mandated Medical Examinations

1. The VP of Flight Operations, the System Chief Pilot, a Regional Chief Pilot, or a Chief Pilot may direct a pilot to contact or see the Company’s aeromedical advisor if the Company has a reasonable basis to question whether a pilot has developed or recovered from an impairment to his ability to perform his duties as a pilot.

2. A pilot in an active pay status who is directed to contact or see the Company’s aeromedical advisor, shall be removed from any conflicting scheduled activities with pay until the aeromedical advisor determines whether the pilot is fit for flight duty.

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3. After the Company’s aeromedical advisor consults and/or meets with the pilot, by written notice, he may require the pilot to undergo a test(s), medical examination(s), and/or an evaluation(s) by the advisor or a physician designated by the aeromedical advisor. Upon the pilot’s request, the aeromedical advisor shall consult with the pilot to review and discuss the aeromedical advisor’s rationale for his concerns and the necessity of the prescribed examinations/evaluations.

4. The Company shall pay for all examinations, tests or evaluations performed or directed by its aeromedical advisor. If the pilot needs to travel from the pilot’s permanent, primary address in connection with a Company directed examination(s), test(s) and/or evaluation(s) pursuant to this paragraph, the Company shall provide and arrange transportation, lodging and per diem as provided in Section 5.

5. Following the Company’s aeromedical advisor’s review of the results of the examination(s), test(s) and/or evaluation(s), a determination and written notice of same shall be sent to the pilot. The notice shall state the specific grounds for the determination. The determination shall be made in accordance with the following: a. If the Company’s aeromedical advisor finds the pilot fit for duty, and the

pilot agrees, the pilot shall remain on or return to active flight status without loss of pay.

b. If the Company’s aeromedical advisor finds the pilot not fit for duty, and the pilot agrees, he shall be placed on sick leave, disability or medical leave of absence, as applicable.

c. If the Company’s aeromedical advisor finds the pilot fit for duty, and the pilot disagrees, then: i. if the pilot supplies the Company’s aeromedical advisor with medical

documentation substantiating his disagreement, he shall be placed or remain on sick leave, disability or medical leave of absence, as applicable. He shall remain in that status until his case is resolved as provided in Section 15.D.7. (below).

ii. if the pilot does not supply medical documentation supporting his disagreement within 30 days from receipt of the Company’s aeromedical advisor’s determination, he shall be placed on personal leave of absence. If warranted by extenuating circumstances, the System Chief Pilot shall extend the 30 day period. If the pilot subsequently supplies the required documentation, his status shall be determined pursuant to Section 15.D.5.c.i. (above).

d. If the Company’s aeromedical advisor finds the pilot not fit for duty and the pilot disagrees, the pilot shall be placed or remain on sick leave, disability or medical leave of absence, as applicable, until the Company’s aeromedical advisor determines the pilot to be fit for duty, or his case is resolved as provided in Section 15.D.7. (below).

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6. The Company shall give written notice to ALPA that the Company’s aeromedical advisor has issued a direction to a pilot under Section 15.D.3 or that the Company’s aeromedical advisor has issued a determination to a pilot under Section 15.D.5. Such notice shall occur as close in time to the Company’s aeromedical advisor’s notice to the pilot as is reasonably practical under the circumstances.

7. If the pilot disagrees with the Company’s aeromedical advisor, the pilot shall engage, at his expense, a second physician to evaluate his medical condition. Unless otherwise agreed to on a case-by-case basis, the second physician shall be a physician designated as the Association’s Aeromedical Advisor or a physician qualified to diagnose and treat the pilot’s underlying medical condition. If the pilot fails to provide the second physician’s evaluation within 30 days following the Company’s aeromedical advisor’s determination, the pilot may remain on sick, disability or medical leave or be placed on personal leave of absence, as applicable, until he provides the second physician’s evaluation to the Company’s aeromedical advisor. If warranted by extenuating circumstances, the System Chief Pilot shall extend the 30 day period. a. If the second physician agrees with the opinion of the Company’s

aeromedical advisor, the pilot shall return to active flying status or remain or be placed on sick leave, disability or medical leave of absence consistent with the Company’s aeromedical advisor’s findings.

b. If the second physician disagrees with the opinion of the Company’s aeromedical advisor, a Medical Review Panel (hereinafter MRP) shall be convened to decide whether the pilot, in their opinion, meets the standards for holding and exercising the privileges of the pilot’s medical certificate. Pending the MRP’s determination, the pilot shall be placed or remain on sick leave, disability or medical leave of absence, as applicable. i. An MRP shall be composed of the Company’s aeromedical advisor,

the physician engaged by the pilot as provided Section 15.D.5. (above), and a third physician qualified to determine the medical issue in question. The third physician shall be selected by agreement between the Company’s aeromedical advisor and the pilot’s physician.

ii. As soon as practicable, the MRP shall consult and determine whether the pilot, in their opinion, meets the standards for holding or exercising the privileges of the pilot’s medical certificate. (a) Questions regarding the pilot’s medical condition shall be

resolved based on the MRP’s determination. The pilot shall remain on or return to active flight status, sick leave, disability or medical leave of absence consistent with the MRP’s determination as applicable.

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(b) If the MRP rules that a pilot is fit for duty and the pilot still disagrees, the pilot shall be placed on personal leave of absence.

(c) If the MRP’s determination disagrees with the opinion of the Company’s aeromedical advisor, then: (1) the Company shall make adjustments, including retroactive

adjustments (e.g., back pay or restoration of sick leave), if applicable, that are necessary to make the pilot whole consistent with the MRP’s determination; and

(2) the Company shall reimburse the pilot for all reasonable costs and expenses he incurred in connection with the determination of his medical condition pursuant to Section 15.D.7. (this paragraph).

8. Questions regarding the medical condition of a pilot who has applied for or is receiving a benefit(s) pursuant to Section 27 or 28 shall be resolved in accordance with the provisions of the applicable benefit plan(s).

E. Medical Examination Documentation

Upon request, the Company’s aeromedical advisor, the pilot and the pilot’s physician or a physician associated with the Association’s aeromedical office, as applicable, shall be provided a copy of any report or medical record relating to any medical examination, test or evaluation of that pilot conducted pursuant to this Section. However, in cases where the Company’s aeromedical advisor believes that direct pilot access to information contained in the medical records regarding a specific diagnosis of a terminal illness or a psychiatric condition could be detrimental to the pilot or the pilot’s health, the aeromedical advisor may inform the pilot that access will only be provided to a designated representative of the pilot having specific written consent.

F. Effect on Certain Legal Rights Nothing in this Section shall be construed to guarantee, deny or limit a pilot’s right to FAA, NTSB or judicial appeal procedures, nor shall it preclude the Company from assisting a pilot with medical problems to regain his medical certificate and return to flight status. This assistance may also include directing the pilot to challenge or appeal the results of adverse findings to the Federal Air Surgeon. All costs of any Company directed challenge/appeal shall be paid by the Company.

G. Limitation of Medical Procedures 1. Flight Management shall not require a pilot to submit to a psychological or

psychiatric examination. However, flight management may refer a pilot to the Company’s aeromedical advisor in accordance with Section 15.D.1. (reasonable basis to question fitness). A pilot may be required to undergo a psychological/psychiatric examination if directed by the Company’s aeromedical advisors based on their independent evaluation, in accordance

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with Section 15. The evaluation conducted by the Company’s aeromedical advisors is expected to include contact with the pilot and any other preliminary evaluation that is necessary in order to reach an independent, informed decision as to the need for further testing.

2. Nothing contained in this Section shall be construed to permit the Company to require a pilot to submit to any medical treatment or invasive procedure which is not consistent with reasonable and current medical practice or which poses an unreasonable threat to the pilot’s health. This paragraph shall not be construed to prohibit testing for drugs, alcohol and, if applicable, other substances pursuant to the provisions of Section 15.C. (above). a. If the Company’s aeromedical advisor determines that a treatment,

procedure or evaluation is appropriate in the circumstances of a case, he shall consult with the pilot’s physician or a physician associated with the Association’s aeromedical office, as applicable, for the purpose of determining the permissibility of that treatment, procedure or evaluation under the provisions of Section 15.G. (this paragraph). The issue shall be resolved by mutual agreement of those 2 physicians.

b. If the 2 physicians cannot agree, the matter shall be submitted immediately to a third physician selected by the Company and the Association. The Company, the Association and the pilot shall be bound by the findings of the third physician. The fees and expenses of the third physician shall be shared equally by the Company and the Association or the pilot; provided, however, that if the third physician agrees with the pilot, the Company shall reimburse the pilot for all reasonable costs incurred in connection with this paragraph.

H. Confidentiality of Medical Information

All reports and records of any medical examination, test or evaluation of a pilot pursuant to this Section shall be strictly confidential between the Company’s aeromedical advisor and the pilot. Those reports and records shall not be divulged, except in the administration of this Agreement on a “need to know basis” or as required by law, to any other person or entity without the written permission of the pilot. If required by law to divulge, the Company shall provide the pilot notice of such, and upon the request of the pilot, provide the pilot with a copy of such records and reports, unless prohibited by law from doing so. If the final determination of a pilot’s medical condition pursuant to this Section is that the pilot is not medically fit for duty, the Company’s aeromedical advisor may provide a report regarding the pilot’s medical condition to officials in the Benefits Department on a “need to know” basis. Those officials shall receive only as much information as is necessary for them to perform their job functions.

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I. General Nothing in Section 15 shall be construed to limit the Company’s authority to act in accordance with Section 19. Disciplinary issues arising out of the application of Section 15 shall be handled in accordance with Sections 19 and 21.

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Workers’ Compensation Benefits16SECTION 16 WORKERS’ COMPENSATION BENEFITS A. Nothing in this Section shall be construed to alter the limits of coverage, or the basis

of liability, provided under the workers’ compensation law of any state. B. Notwithstanding the provisions of Section 16.A. (above), if a pilot suffers an otherwise

compensable injury and is ineligible for workers’ compensation benefits due solely to the geographic location at which the injury occurred, the Company shall provide him with benefits no less favorable than the benefits for which he would have been eligible in the state in which he is domiciled.

C. A pilot who is injured while on a trip or other Company business shall notify his flight manager (currently titled Chief Pilot) of such injury as soon as practicable. A workers’ compensation claim shall be processed expeditiously.

D. The Company shall reimburse a pilot for all out-of-pocket medical expenses incurred in connection with a workers compensable injury.

E. If a pilot has sustained a workers’ compensable injury or illness covered by this Section, his occupational illness/injury payments shall be an offset against his workers’ compensation benefits. If, having exhausted his occupational injury/illness leave, as provided in Section 14.F., a pilot receives workers’ compensation payments and sick leave pay at the same time, he may use only enough sick leave so that the workers’ compensation payments plus the sick leave pay equals 100 percent of his BLG/RLG. 1. In order to best ensure that medical expenses are covered by workers’

compensation as quickly as possible, an injured pilot should first attempt to contact his flight manager (currently titled Chief Pilot).

2. If the pilot cannot contact his flight manager (currently titled Chief Pilot) immediately and needs treatment, the pilot may request the treating facility to call FedEx Risk Management in the pilot’s domicile in order to get the initial treatment expenses billed to Risk Management. If such does not occur, the pilot may always use personal health insurance or pay cash, in order to get required treatment, and the Company shall reimburse all charges (including deductibles and co-payments) for medical treatment through workers’ compensation.

3. The pilot may contact his flight manager (currently titled Chief Pilot) to ensure expeditious reimbursement by workers’ compensation.

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Prisoner of War or Hostage Benefits 17SECTION 17 PRISONER OF WAR OR HOSTAGE BENEFITS A. A pilot who, while on a trip or on other Company business, and as a result of war,

rebellion, insurrection, terrorist act or action of a foreign government, becomes missing or interned, or is hijacked, or taken a prisoner of war by a foreign government, shall continue to accrue seniority and longevity during the period of his absence.

B. The Company shall provide such pilot with the following benefits until the date of release, the official date of death or, if the pilot’s whereabouts are unknown, the expiration of 5 years after the pilot’s disappearance or captivity, whichever occurs earliest: 1. Bid period compensation equal to the pilot’s average credit hours per bid period

during the last 12 bid periods (including credit hours earned in VLT, DRF, etc.), considering only those bid periods during which the pilot flew, or was compensated as if he had flown, for an entire bid period multiplied by the pay rate in his current crew position.

2. Applicable insurance benefits and other benefits attendant to his employment status.

3. Accruals and contributions normally made by the pilot and/or the Company. 4. Continuation of insurance benefits for spouse and/or eligible dependents of the

pilot. C. The benefits described in Section 17.A., shall not apply to:

1. conduct relating to the operation of a Company aircraft that would constitute just cause for termination, if established; or

2. conduct not relating to operation of Company aircraft that would constitute just cause for termination or which could have led to the pilot’s imprisonment for more than 30 days under Federal law or the laws of the State of Tennessee, if established. The benefits described in Section 17.A., shall not be withheld pursuant to this paragraph until the Company has presented the pilot with notice of its intent to apply this paragraph, and has allowed the pilot to respond.

D. Compensation and other benefits payable under this Section shall be provided to the beneficiaries indicated by the pilot in his Beneficiary Designation Form. In the absence of a completed beneficiary designation form, the Company shall deposit all applicable benefits in trust for the pilot until his status has been legally determined. The trustee shall invest such funds in accordance with applicable fiduciary responsibilities.

E. Should the pilot’s spouse and/or eligible dependents wish to continue health coverage beyond the end of the appropriate benefit continuation period provided in Section 17.A., they may do so under the provisions of COBRA. Pilots and their spouses and/or

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eligible dependents needing more information regarding COBRA (including time limits) should refer to Section 27 of this Agreement.

F. The Company shall provide each pilot with a beneficiary designation form in the manner described below. Each pilot shall submit such designation form to the designated Company official within 30 days of the pilot’s date of hire.

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Prisoner of War or Hostage Benefits 17PRISONER OF WAR OR HOSTAGE BENEFITS

BENEFICIARY DESIGNATION To: Federal Express Corporation You are hereby directed to pay all monthly compensation allowable to me under Section 17 and any other benefits due under the provisions of this Agreement while missing or resulting from death or any other condition which causes direct payment to be impossible as follows: _______________% of my monthly pay to ________________________________________________________ (name) ________________________________________________________ (address) as long as living, thereafter to ________________________________________________________ (name) ________________________________________________________ (address) as long as living. The balance, if any, and any amounts accrued after the death of all persons named in the above designation shall be held for me, or in the event of my death before receipt thereof, shall be paid to the legal representative of my estate. The foregoing direction may be modified from time to time by letter signed by the undersigned, and any such modification shall become effective upon receipt of such letter by you. Payments made by the Company pursuant to this direction shall fully release the Company from the obligation of making any further payments with respect thereto. _______________________________ (Pilot’s Signature) _______________________________ (Print Name) - (Emp. #) - (Date)

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Witnesses and Representatives18

SECTION 18 WITNESSES AND REPRESENTATIVES A. Removal from Duty

1. During their terms of office, and with 30 days written notice prior to the beginning of the first affected bid period, the following shall be removed from flying as provided in Section 18.B.1.b. or c.: a. the MEC Chairman; b. MEC Vice-Chairman; c. MEC Secretary-Treasurer; d. pilots elected to a national office of the Association or IFALPA office; e. pilots appointed to national Association or IFALPA positions; and f. other pilots designated by the MEC Chairman; provided, however, the

total number of pilots removed under Section 18.A.1. shall not exceed 10, except with the Company’’s agreement.

2. Other Pilots a. Pilots, not designated by the MEC Chairman as described above in

Section 18.A.1.f., and comprising the MEC negotiating committee (up to five pilots), members of the System Board of Adjustment, FOQA Gatekeepers, and Training Review Board (TRB) members, shall be removed from flying at the Association’’s notification, provided that the Association complies with Section 18.A.4.a. and c. Removals sent later than the 3 business day window shall not be unreasonably denied.

b. MEC members, or designees (one substitute for each absent MEC member) attending quarterly meetings, the ALPA Executive Vice-President, and members of the Pilot Benefit Review Board shall be removed from flying at the Association’’s notification if the notification is made prior to the close of the Conflict Input Window as described in Section 25.E.2. for the affected bid period, and the Association complies with Section 18.A.4.a. If a removal is sent subsequent to the applicable Conflict Input Window, the trip removal will be processed under Section 18.A.3. and A.4. (excluding A.4.b.), except that removals for pilots holding a secondary line shall be treated as having been sent prior to the close of the Conflict Input Window.

3. Upon written request by the MEC Chairman, or his designee, a reasonable number of pilots shall be removed from flying to participate in the business of the Association or to participate in dispute resolution proceedings (e.g.,

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Witnesses and Representatives 18

pilots appointed to ALPA national committees or MEC committees) provided that any removal shall not unduly disrupt the Company’’s operations.

4. Unless otherwise provided for, removal of pilots from flying pursuant to this Section shall be handled as follows: a. The documentation supporting such removal shall include the pilot’’s

name, employee number, domicile, equipment type, seat, trip(s)/R-day(s) and date(s) on which the pilot is to be removed from flying. Such documentation shall be sent in a manner permitting immediate delivery and verification (e.g., email, facsimile), or by telephone call if such systems are unavailable.

b. Documentation supporting a removal for an entire bid period shall be sent, by the MEC Chairman, or his designee, prior to the close of the Conflict Input Window for the affected bid period(s).

c. Unless otherwise agreed, documentation supporting a removal for other than a full bid period shall be sent to the the Managing Director, Flight Operations Contract Administration, or his designee, not later than 3 business days (Monday through Friday excluding holidays) in advance of the report time(s) of the trip(s) or reserve day(s) for the affected pilot(s).

d. Unless otherwise agreed, the Managing Director, Flight Operations Contract Administration, or his designee, shall respond in writing and transmit the response by facsimile to the MEC office and to the pilot via email, as soon as practicable, but not later than 2 business days following receipt of the removal documentation. Any response denying or limiting a removal shall include a statement of the grounds upon which the intended removal was denied or limited.

e. Requests shall not be unreasonably made or denied. f. A pilot removed from flying for Association business shall remain on

Association business for the entire period for which he was removed, except as provided in Section 18.A.6. (sick leave).

g. The MEC may use Company email to make initial contact with a pilot for business or trip drop planning purposes.

5. The following shall apply to a pilot removed for Association Business during a month in which he has a scheduled vacation, whether he is bidding in a flying, or pay only status. a. A pilot shall bid for, and be awarded, a vacation as if he were not

removed for Association business. b. A pilot awarded a regular line who has a scheduled vacation conflict with

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any trip(s), or conflict with the international buffer of an international trip, will be paid the full BLG. Trip(s) conflicting with vacation shall be charged to his vacation bank.

c. A pilot awarded a secondary line who has a scheduled vacation will be paid the full BLG but will have his vacation bank charged for each day of vacation.

d. A pilot awarded a reserve line who has a scheduled vacation will be paid the full RLG but will have his vacation bank charged the value of a reserve day for each day of vacation.

e. The Association will be billed, pursuant to Section 18.C., for the difference of the BLG/RLG minus the vacation value.

6. A pilot removed from flying for Association business, who, due to illness or injury, is unable to perform any Association business, may have his Association business status canceled. The MEC Chairman, or his designee, and the pilot shall each notify the System Chief Pilot, or his designee, in writing that the affected pilot shall be placed on sick leave status. This paragraph shall not apply to pilots removed for an entire bid period. a. If a regular or secondary line pilot’’s trip(s) has been removed for

Association business and he then becomes sick, the removal code(s) for that trip(s) shall be changed from Association business to sick leave pursuant to the following procedures: i. At 0900 Local Base Time (LBT), the day prior to the scheduled report

time for each affected trip, the removal code will be changed to sick leave while the pilot continues on sick leave.

ii. A pilot shall not be permitted to convert his status for a trip from Association business status to sick leave status after the beginning of that trip.

iii. Once a trip removal code has been changed from Association business status to sick leave, no further removal changes will be made, except as provided in Section 18.A.6.c. (below).

b. If a reserve pilot whose reserve day(s) have been removed for Association business is changed to sick leave for any future reserve day(s), that reserve day(s) value shall be charged to sick leave for each day(s) changed from Association business to sick leave. A pilot shall not be permitted to convert his status for an R-day from Association business status to sick leave status after the beginning of that R-day.

c. When the pilot desires to revert from sick leave status to Association business status, or to return to active flying, the MEC Chairman, or his designee (or the pilot, if returning to active flying), shall notify the System

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Chief Pilot, or his designee, in writing of the affected pilot’’s intentions. If the pilot has been removed from a remaining trip(s) or reserve day(s) during that bid period for Association business, he will return to Association business status at the end of the sick leave.

d. A trip(s) or R-day(s) removed for sick leave will not be billed to the Association.

B. Compensation and Benefits 1. Compensation for Full Bid Period Removals and Pilots Listed in Section

18.A.1. a. A pilot removed from flying for an entire bid period shall be compensated

by the Company for the number of credit hours of his awarded line, BLG or RLG, for that bid period, including carryover, if any, and including hourly rate override, if applicable.

b. Notwithstanding Section 18.B.1.a., the pilots listed in Section 18.A.1. shall not bid lines in their respective aircraft and seat position. They shall be compensated based on the number of CH established by the MEC. The MEC shall advise the Company each year by the end of the November bid period as to the monthly credit hours for each pilot for the following year. In no event shall this CH number for the new year be greater than the system-wide average of the highest lines with carryover for the current calendar year (the cap for the upcoming calendar year shall be derived from the system-wide average of the highest lines with carryover, in the bid periods of January through December of the current year). i. During bid periods where the pilots have scheduled vacation, the

Association’’s reimbursements to the Company shall be reduced by the value of the scheduled vacation (i.e., the number of days of awarded vacation for that bid period times 6 credit hours per day), unless the Association elects the bid period prior to not have the vacation days and hours in the following bid period deducted from the respective pilot’’s vacation bank.

ii. An Officer who is projected to be unable to perform his Association duties, for the remainder of the bid period, due to illness or injury, shall, upon notification to the Company, have the Association business status, as described in this paragraph, cancelled. The remainder of that bid period, if any, shall be prorated, and any subsequent periods bid in a “pay only” status shall be compensated the BLG or RLG of his pay only line and his sick leave account(s) shall be reduced by the same amount.

iii. With 30 days written notice to the Company, the Association may

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elect to process trip removals for an MEC officer(s) as provided in Section 18.A.2.a., rather than as provided in Section 18.B.1.b., or vice versa.

c. Notwithstanding Section 18.B.1.a., during their terms of office, pilots elected to function as a national officer of the Association or IFALPA, or appointed to national Association or IFALPA offices, shall not bid lines in their respective aircraft and seat position. They shall be compensated at the pay rate and the number of CH established in accordance with ALPA/IFALPA Constitution and By-laws and policies.

2. A pilot removed from flying for less than an entire bid period shall be protected by the Company from loss of compensation as follows: a. A line holder shall be compensated for the scheduled credit hours of the

trip(s) from which he is removed, including hourly rate override, if applicable, but excluding per diem.

b. A reserve line holder shall be compensated a reserve day value for each day of scheduled reserve availability from which he was removed during the month.

c. A regular, secondary or reserve line shall be adjusted for conflicts for a carryover trip or a carryover reserve day(s).

3. Subject to the provisions of Section 23, a pilot removed from flying for Association business shall continue to receive, earn, accrue and remain eligible for all benefits of employment, including seniority and longevity accrual, sick leave and vacation, as if he had not been removed.

4. A pilot removed from flying for Association business shall be eligible for an award/assignment on a vacancy bid posting(s)System Bid which closes during the period of his removal., subject to the following: a. A pilot on Association business status pursuant to Section 18.A.1.

(above), shall not be awarded a crew position on postings that occur while he is on such status. However, he shall be eligible for passover pay, in accordance with Section 24.D.2., as if he had been awarded the crew position(s) he would have held, based upon his seniority and standing bid. His crew position upon his return to duty shall be determined as follows:Pilots who have been, or will be (as notified by the Association), unavailable for flying for more than 30 days, due to Association business, shall receive a notional award/assignment. i. If no crew position award(s) occurred during his absence, the pilot

shall return to his current crew position. If, however, he was awarded a crew position from a posting prior to the commencement of his Association business status, he shall return to and, if applicable, be trained for that crew position. If that crew position was at an FDA

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location, however, the Company may cancel the award if the pilot is not anticipated to be available for the full FDA period.

ii. If a crew position award(s) occurred during his absence, the pilot shall return to the crew position he would have held had he not been on Association business status, as determined by his seniority and his standing bid, as of the end of his Association business status.

iii. If a pilot returning from Association business status requires training, it shall commence no later than 30 days following his return date.

b. Pilots on Association business pursuant to Section 18.A.3. who will not be available for the assigned training associated with a vacancy bid award, shall be offered a subsequent training date(s) associated with that crew position posting. If no date is acceptable to the pilot, he shall be released from his newly awarded crew position. Any change in training dates pursuant to this paragraph will not result in passover pay for a pilot(s). If the crew position was at an FDA location, however, the Company may cancel the award if the pilot is not anticipated to be available for the full FDA period.The following applies to a pilot who receives a notional System Bid award or assignment, pursuant to Section 18.B.4.a. above, and who would require training for that crew position. That pilot will have his system-wide seniority compared against those who were actually awarded/assigned the applicable crew position (and who also require training), in order to establish their “Nth” position. This comparison shall be as follows: i. All pilots who are awarded or assigned (both notionally and actually)

the applicable crew position shall be pooled together in a single list. ii. Pilots who are awarded the crew position shall be listed in seniority

order. iii. Pilots who are assigned the crew position shall be listed in inverse

seniority order after the pilots in Section 18.B.4.b.ii. c. Pilots subject to Section 18.B.4.b. will begin to earn the applicable hourly

rate either: i. Upon the Nth actual pilot activation into the applicable crew position,

following the close of the applicable System Bid; or ii. Upon the [N-1]th actual activation, if there is no Nth actual pilot

activation (for an award); or Writing committee note: this should be a repeating process, i.e., if there is no N-1 actual activation, then go to N-2 actual activation, etc.

iii. Upon the [N+1]th actual activation, if there is no Nth actual pilot activation (for an assignment);

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Writing committee note: this should be a repeating process, i.e., if there is no N+1 actual activation, then go to N+2 actual activation, etc.

iv. 90 days following the close of the applicable System Bid, if there are no actual pilots who activate in that pilot’s crew position.

d. A pilot who was notionally awarded or assigned to a different crew position, while unavailable for flying due to Association businesss, will be assigned to a training date for that crew position as soon as practicable after the Company receives notification of his availability.

e. A pilot who does not receive a notional award pursuant to Section 18.B.4.a., or whose period of unavailability did not include any System Bid closings, will return to his current crew position when the Company receives notification of his availability. If such pilot requires requalification training, he will be assigned to a training date as soon as practicable.

C. ALPA Flight Pay Loss Bank and Reimbursement of Compensation 1. On January 1 of each year, the Company shall deposit 2,000 CH into an

“ALPA Flight Pay Loss Bank.” On January 1 of each year, the Company shall deposit 870 hours1,600 CH into an “ALPA Safety and Data Collection Bank.” With respect to the ALPA Safety and Data Collection Bank for 2011, the Company shall deposit 870 CHs on February 28, 2011.,” which shall be allocated as follows:

Aviation Safety Action Program (ASAP) 285 CH

Info Share 95 CH

ASAP Event Review Committee Training

28 CH

Fatigue Risk Management Group, (including Fatigue Event Review Committee and Data Collection

Steering Committee)

307 CH

Flight Operational Quality Assurance (FOQA) Program

885 CH

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2. Should the Association cancel the FOQA Program or ASAP Programor elect to no longer participate in the programs covered by the ALPA Safety and Data Collection Bank, the Company may remove CHs attributable to those programs (FOQA/588 CHs & ASAP/210 CHs), prorated per the number of months remaining in the calendar year.

3. The Company shall bill the Association on a monthly basis for 95% of the compensation paid to pilots on Association business for trips or R-days missed, excluding trips dropped as a result of vacation pursuant to Section 18.A.5., or sick leave pursuant to Section 18.A.6. In addition, the Company shall bill the Association an override of 20% of the amount invoiced pursuant to this paragraph for ordinary compensation related costs incurred by the Company for items such as payroll taxes and the costs of benefits.

4. The Association shall not be billed for the compensation paid during the training of up to two Association members of the TRB per year, and one initial Association member of the Event Review Committee.

5. Invoices shall be submitted to the MEC Secretary-Treasurer, or his designee, and shall include pilot name, employee number, domicile, trip or reserve day dates (as applicable), pairing numbers (if applicable), and compensation paid.

6. Within 45 days following the MEC Secretary-Treasurer’s receipt of an invoice, the Association shall remit the amount due to the Company official designated to receive those payments. In lieu of reimbursement, provided that the MEC may, at its discretion, use the CH in the ALPA Flight Pay Loss Bank foror the ALPA Safety and Data Collection Bank to offset reimbursements owed to the Company other than MEC Officers, the Grievance Committee, Strategic Preparedness activities, and activities related to Section 6 negotiations. for specific pilots removed from specific trip(s)/activity(ies) by the Association in order to participate in the following Association business:

a. Accident Investigation Committee; b. Aeromedical Committee; c. ASAP Event Review Committee, including training for members of

the ERC (subject to Section 18.C.4. (above)); d. Bereavement Committee; e. Critical Incident Response Program Committee; f. Data Collection Steering Committee; g. Fatigue Event Review Committee; h. Fatigue Risk Management Group;

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i. FOQA Steering Committee (subject to the provisions of Paragraphs A.12., G.1., and G.2. of the FOQA LOA);

j. FOQA Monitoring Team (subject to the provisions of Paragraphs G.1. and G.2. of the FOQA LOA);

k. HIMS Committee; l. Insurance and Retirement Board; m. Jumpseat Committee; n. Legislative Affairs Committee, for activities that are consistent with

the Company’s stated interests. o. Military Affairs Committee; p. Pilot Benefit Review Board; q. Pilot Scheduling Improvement Team (subject to Section

25.BB.H.2.b.); r. Professional Standards Committee; s. Safety Committee; t. Security Committee; u. Security Event Review Committee; v. Scheduling Committee; w. Scheduling Improvement Group (subject to Section 25.BB.H.2.a.); x. Training Committee; y. Training Review Board, including training for members of the TRB

(subject to Section 18.C.4. (above)); z. Trip Services Committee; and aa. Any other activity agreed upon, in advance and in writing, by the

MEC Chairman and the Vice President, Labor Relations. Exhaustion of the ALPA Flight Pay Loss Bank will not be the basis for refusing to meet with the Company. Removals for Association business other than as listed above may not be charged against either the ALPA Flight Pay Loss Bank or the ALPA Safety and Data Collection Bank. Application note: when reconciling removals against either the ALPA Flight Pay Loss Bank or the ALPA Safety and Data Collection Bank, the Association shall include the reason for any such removal.

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D. Currency Requirements 1. Any pilot removed from flying for Association business shall maintain

currency unless unable to do so for reasons not related to Association business leave provided, however, that MEC officers, members of the MEC Negotiating Committee, along with pilots elected to a national office of the Association or IFALPA office, pilots appointed to national Association or IFALPA positions, and other pilots designated by the MEC Chairman under Section 18.A.1.f., may elect not to maintain currency.

2. A pilot removed for an entire bid period for Association business shall be permitted, during that same bid period, to bump a pilot(s) in his seat and equipment type to maintain currency, in accordance with Section 25.L.10.

E. Association Fly Back (“AFB” Pay Code) 1. During any calendar year in which a pilot is removed from flying to

participate in Association business on a full- or part-time basis such pilot may request an assignment from open time as AFB.

2. The pilot shall be paid per diem and, if applicable, international override when operating an AFB trip(s).

3. The number of hours of compensation to which the Company is entitled to reimbursement pursuant to Section 18.C., due to a pilot’’s removal from flying for Association business shall be reduced on an hour-for-hour basis by that pilot’’s AFB credit. In the event a pilot’s AFB credit exceeds the hours of his compensation to which the Company is entitled to reimbursement pursuant to Section 18.C. (above), the pilot shall be compensated for the excess AFB credit hours (by submission of a pay log). If a pilot is removed from an AFB trip prior to block out due to sick leave, he shall not earn any CH for that trip and no deduction shall be made from his sick leave account.

4. Invoices submitted to the Association pursuant to Section 18.C. (above), shall state for each AFB trip the pilot’’s name, employee number, domicile, trip, pairing number and the amount of compensation offset by the AFB trip.

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Investigation and Discipline19

SECTION 19 INVESTIGATION AND DISCIPLINE A. Preliminary Matters

1. Discipline is defined as Letters of Warning, Suspensions, Terminations and any other action taken by flight management resulting in a loss of pay or benefits to which the pilot would otherwise be entitled.

2. Counseling sessions and Advisory Letters do not constitute disciplinary action and may not be grieved. An Advisory letter is a non-disciplinary form letter issued to a pilot to communicate policy, procedures or work rules, which if violated in the future, could lead to discipline.

3. Standard for Discipline a. The discipline standard for non-probationary pilots shall be “just

cause.” b. Probationary pilots shall be considered to be employed on an “at will”

basis for purposes of administering and reviewing discipline. B. Documentation

1. The Company shall provide a pilot with a copy of any written record of disciplinary action or advisory letter within 10 days after that record is placed in his personnel file.

2. A pilot shall have 60 days from the date on which the written record is received or reasonably should have been received, to place a written response concerning that action in his personnel file.

3. A pilot may examine his personnel file on any business day during normal business hours with adequate notice to his Chief Pilot.

4. An irregularity report or documents referring to an irregularity report (except for Advisory or Disciplinary Letters) shall not be placed in a pilot’s personnel file.

C. Consideration of Prior Disciplinary Action An Advisory Letter or a Disciplinary Letter (e.g., a letter of warning, suspension, or termination) may be used to establish that a pilot was given notice of a policy, procedure or work rule, and/or that discipline could result from future violations of such policy, procedure or work rule, no matter the date of issuance of such Letter. An Advisory or Disciplinary Letter shall not serve as a basis for discipline after a period of 1 year during which the pilot receives no further Advisory or Disciplinary Letters. However, an Advisory or Disciplinary Letter may be considered in assessing future discipline involving similar misconduct for up to 2 years after the receipt of the most recent Advisory or Disciplinary Letter.

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Investigation and Discipline 19

D. Investigation

1. The Company shall investigate and understand a pilot’s performance and conduct before taking any disciplinary action against that pilot. Part of a proper investigation may include management talking or meeting with a pilot or group of pilots to determine the facts and circumstances surrounding a situation. Depending on the circumstances of the particular case, some or all of the necessary fact gathering may occur prior to or without the need for a hearing of any type.

2. A pilot may request Association representation at a Company investigatory interview/meeting. When a pilot makes such a request, the Company shall either: a. afford the pilot the opportunity to secure Association representation

before initiating or continuing the interview/meeting; b. refrain from or discontinue the interview/meeting immediately; or c. offer the pilot the choice of either continuing the interview/meeting

without Association representation or rescheduling the interview/meeting within a reasonable period of time, to allow the pilot the opportunity to arrange for Association representation.

3. Under no circumstances shall flight management require a pilot to submit to a psychological or psychiatric examination. However, a pilot may be required to undergo a psychological/psychiatric examination if directed by the Company’s aeromedical advisors, in accordance with Section 15.

E. Discipline A pilot shall not be disciplined without first being afforded the opportunity for a hearing. 1. Hearing

a. Notice of Hearing i. The Company shall send the pilot and the Association a Notice of

Hearing setting forth the date, time and place of the hearing, together with a statement of facts and specific subject matter(s) to be addressed. The Notice of Hearing shall be sent to the pilot and Association a reasonable amount of time prior to the hearing considering the time needed to prepare as well as the interest in concluding the matter without undue delay. Intent: The following example applies to Section 19.E.1. Example: The Company believes a pilot may have falsified his employment materials by significantly overstating his flight hours and by indicating that he had never received any discipline from a former

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employer. The following notice would satisfy this paragraph: “You are directed to attend a hearing on April 2 at 10:00 in my office. It has been alleged that you may have falsified your employment materials. If true, these allegations could warrant discipline.”

ii. Accompanying the Notice of Hearing, the Company shall attach the relevant document(s), excluding witness statements and notes, which prompted the flight manager to send the Notice of Hearing.

b. The hearing shall be conducted by a Regional Chief Pilot or a Chief Pilot. A written decision shall be issued within 15 days following the close of the hearing. If the decision is to discipline the pilot, the decision shall state the discipline and specific grounds for that discipline.

c. After an initial discussion in which the Company may ask questions and receive answers from the pilot, if requested by the pilot or the Association, the Company shall produce documentary information (including written witness statements and information in electronic format), known and in its possession, but excluding notes except to the extent that the notes contain information from fact or expert witnesses, and names of witnesses excluding confidential witnesses. i. Disputes whether a witness shall be considered confidential shall

be resolved by referring the issue to the arbitrator hearing the underlying case, or an arbitrator selected from the panel of arbitrators by mutual agreement. The parties shall present the issue to the arbitrator so that the System Board hearing on the underlying dispute is not delayed.

ii. Information provided along with the Notice of Hearing, as provided in Section 19.E.1.a.ii., need not be reproduced under this paragraph.

d. The pilot shall be afforded the opportunity to respond to information described in Section 19.E.1.c. (above) before a decision is rendered. If necessary, the hearing shall be delayed or continued in order to provide the pilot with adequate time to prepare and/or respond. The Company may continue to investigate the circumstances of a particular case and to gather additional documentation after the close of the hearing.

e. If a pilot is unavailable due to his arrest and detainment by government officials, the Company shall notify the Association, and shall take reasonable steps to notify the pilot of the hearing and to accommodate his participation to the extent permitted under the circumstances. After those prerequisites have been met, the pilot’s unavailability shall not prevent the Company from conducting a hearing regarding the pilot.

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2. Internal Appeal a. If the decision is to terminate the pilot, the case shall automatically be

appealed to the Vice President, Flight Operations. The appeal hearing shall be conducted by the Vice President, or his designee, within 15 days after the decision to terminate the pilot.

b. If the decision imposes discipline less than termination, the pilot or the Association may appeal the decision to the System Chief Pilot. Appeals shall be in writing and shall be filed within 15 days after the pilot receives notice of the decision. The appeal hearing shall be conducted by the System Chief Pilot, or his designee, within 15 days after his receipt of the appeal.

c. The hearing officer for the appeal shall be different from the hearing officer for the initial hearing.

d. After an initial discussion in which the Company may ask questions and receive answers from the pilot, if requested by the pilot or the Association, the Company shall produce documentary information (including written witness statements and information in electronic format but excluding notes maintained by management personnel) gathered since the close of the initial hearing.

e. [RESERVED] f. The hearing officer shall issue a written decision within 15 days

following the close of the hearing. If the decision is to discipline the pilot, the decision shall state the discipline and specific grounds for that discipline. If the hearing officer fails to issue a written decision in a timely manner, the pilot and/or Association shall not be deemed to have waived any arguments to the System Board regarding any claim for relief based on the untimely decision. Nothing in this paragraph diminishes the Company’s obligation to issue a timely decision.

3. The Association has the right to have a representative present at any disciplinary hearing. The Association shall be given notice prior to any disciplinary hearing in accordance with Section 19.F.5.

4. Appeal To System Board of Adjustment If the pilot disagrees with the decision at the internal appeal level, the pilot may appeal the decision, through the Association, to the System Board of Adjustment as described in Section 21. The appeal shall be in writing and shall be made within 15 days following the date on which the pilot received notice of the decision. Copies of the appeal shall be sent to the Association, the Vice President, Flight Operations and the designated official in the Company’s Labor Relations Department.

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F. General 1. If, as a result of any hearing or appeal, the original discipline imposed on a

pilot is reduced or rescinded, the pilot’s pay, benefits, seniority and longevity shall be restored consistent with the hearing officer’s decision, and the pilot’s file shall reflect such resolution.

2. Time limits and hearing/appeal dates may be modified, orally or in writing, by agreement of the parties. Oral agreements shall be confirmed in writing as soon as practicable. Requests for modifications shall not be unreasonably denied.

3. For the purpose of computing the time limits stated herein, an appeal shall be deemed "filed," and a decision shall be deemed "issued," on the day in which the appeal or decision is postmarked, or if Federal Express is used, on the day in which the appeal or decision is submitted to the Company for shipment, or if a facsimile machine or electronic mail is used to transmit the appeal or decision, on the day in which the appeal or decision is transmitted by such means.

4. For the purpose of Section 19, the term "day" means business day. However, if the last day of a time limit falls on a Corporate or ALPA Holiday (currently including New Year’s Day, Martin Luther King, Jr. Day, President’s Day, Memorial Day, Independence Day, Labor Day, Columbus Day, Thanksgiving Day and the following Friday, Christmas, or the day on which such holiday is observed by the Company or ALPA), the time limit shall be extended through the first business day following the holiday. The parties shall advise each other expeditiously of any changes to ALPA or Corporate holidays.

5. Delivery of all notices, Advisory Letters, Disciplinary Letters, decisions and appeals pursuant to Section 19 shall be made in person, by Federal Express Overnight Letter, by certified mail, return receipt requested, Company electronic mail, or by other methods which provide verification of receipt. Such correspondence shall be made to the pilot’s Company electronic mail address and to the pilot’s permanent, primary address. Such correspondence shall also be sent to the MEC Representation Department and the MEC Grievance Committee Chairman. A pilot shall be deemed to have received notice upon the earlier of the pilot’s actual receipt of notice or 20 days after transmission of the electronic mail message.

6. Every participant in disciplinary proceedings shall be free to discharge his duty without fear of retaliation by the Association or the Company. No participant shall be coerced or harassed by the Association or the Company.

7. Copies of recordings or other transcriptions made at any meeting or hearing conducted pursuant to this Section shall be provided to all parties, upon request, without undue delay, after it has been finalized. Failure to

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respond to a request without undue delay shall render that recording or transcript inadmissible until the requesting party has had sufficient time to review the recording or transcript.

8. Grievants and a reasonable number of witnesses and Association representatives involved in the resolution of disputes pursuant to Section 19 may be released from Company duty, if necessary, as provided in Section 18 of this Agreement. Expenses and flight pay loss, if any, for line pilot witnesses called by any party, shall be borne by the party who called the witness or otherwise incurred the expense.

9. Letter of Warning In Lieu of Hearing a. Absent the Association’s prior assent to the waiver of a preliminary

hearing, the Company shall send the Disciplinary Letter, including the hearing waiver language, to the pilot and the Association without first obtaining the pilot’s signature.

b. The letter will instruct the pilot to indicate his intentions within 7 business days, either by signing and returning the letter to his flight manager (measured from postmark/drop-off), or by communicating to flight management his desire not to waive the hearing.

c. If the pilot signs the letter and there is no correspondence from the Association within the same 7 day period indicating the Association’s disagreement, no further action is necessary, and the discipline will be fully precedential in accordance with Section 19.C. absent a specific agreement to the contrary.

d. If the pilot declines to sign the hearing waiver, then the Company may elect to conduct a Section 19.E hearing on the matter.

e. If the pilot signed the hearing waiver, but the Association timely indicates its disagreement in writing by overnight delivery, facsimile, or electronic mail, the Company has two choices:

i. The Company may accept the hearing waiver, in which case the discipline will have precedential effect only with regard to the pilot to whom the discipline was issued; or

ii. The Company may conduct a preliminary hearing under Section 19.E, in which case, any discipline, and the precedential effect thereof, would be determined in accordance with Section 19.C.

f. In any case, if the Company offers discipline in the context of a hearing waiver, but ultimately holds a preliminary hearing on the matter (whether under the process described in paragraph d. or e., above), the offer of discipline and the hearing waiver, and any discussions pertaining to that offer, shall be considered settlement discussions and shall carry the same evidentiary protections that normally accompany such discussions.

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10. When mutually agreeable, the Company may conduct disciplinary hearings pursuant to Section 19.E. by telephonic and/or video conference.

11. Removal From Service a. If a pilot is removed from flying during the disciplinary process set forth

in this Section, prior to any disciplinary action being taken, his access to Company communications systems (e.g., e-mail, VIPS, etc.) shall not be restricted or eliminated, and he shall continue to accrue all pay and benefits (e.g., seniority, longevity, retirement, vacation, sick leave), as if he had not been held out of service.

b. During the disciplinary process set forth in this Section, if (i) a pilot’s use of Company jumpseats has been restricted by the Company and (ii) the pilot does not have a residence within 100 nautical miles of the location of the disciplinary hearing, the Company shall provide him with travel to and from the disciplinary hearing and, if necessary, 1 night’s stay in a hotel room in the location of the disciplinary hearing.

c. After a pilot has been withheld from service with pay for more than 2 full bid periods, he is not eligible to bid a flying line. Instead, he must bid a pay-only line and shall be paid the BLG/RLG for his awarded pay-only line. The pilot may elect that he instead be paid the average of his awarded lines’ credit hour values, plus carryover, during the previous 12 bid periods.

12. Nothing in this Section shall be construed so as to waive or limit any privilege, provided under applicable law, that would protect information from disclosure, including the attorney-client privilege.

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Grievances: Administrative 20

SECTION 20 GRIEVANCES: ADMINISTRATIVE Definitions: FILE/ISSUE A document shall be deemed "filed” or “issued,” as applicable, on the day in which the document is postmarked, or if Federal Express is used, on the day in which the document is submitted to the Company for shipment, or if a facsimile machine or electronic mail is used to transmit the document, on the day in which the appeal or decision is transmitted by such means. A. Application

Section 20 applies to grievances, which are defined as disputes growing out of the interpretation or application of agreements between the parties hereto concerning rates of pay, rules or working conditions. Any pilot, group of pilots covered by this Agreement or the Association on behalf of such pilot(s) who has a grievance concerning any action of the Company affecting the pilot(s), except matters involving discipline, shall have such grievance handled in accordance with the following procedures, provided that such grievance is properly and timely filed in the manner set forth below.

B. Filing of Grievance 1. A grievance under Section 20 shall be filed in writing with the Vice

President, Flight Operations, within 60 days following the date on which the pilot acquired knowledge, or reasonably should have acquired knowledge, of the fact(s) or event(s) giving rise to the grievance. The 60-day filing period for a grievance shall be extended to 90 days in cases where there is written evidence within the 60-day period that a pilot (or the Association on behalf of a pilot) notified either FedEx Contract Administration or a member of flight management of the underlying issue in an attempt to resolve the matter within the 60 day filing period. A grievance shall contain a statement of the facts and circumstances from which it arises, a citation to the provision(s) of the agreement that has allegedly been violated and the relief or remedy requested.

2. Notwithstanding the time limitation in Section 20.B.1. (above); grievances arising out of clerical or bookkeeping errors may be filed outside the 60 day period provided that they: a. do not involve a dispute of the Company's interpretation or application

of agreements between the parties hereto; and b. can be definitively resolved by reference to Company records.

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3. The Company may take corrective action at any time upon the discovery of clerical or bookkeeping errors, and the pilot shall be given notice of such change.

4. Copies of grievances shall be provided to the Association, and the designated Company officials.

C. Discovery In response to a request by the other party for specific information, and if known and directly relevant to a grievance, a party shall produce names of witnesses and documentary information (including information in electronic format) but excluding notes except to the extent that the notes contain information from fact or expert witnesses. The party shall produce such information as soon as practicable. If necessary, the grievance hearing shall be delayed or continued in order to provide the parties with adequate time to prepare and/or respond. This paragraph shall not be construed to waive any privilege, provided under applicable law that would protect the information from disclosure, including the attorney-client privilege.

D. Hearing with Vice President 1. Within 15 days following receipt of a grievance, the Vice President, Flight

Operations, or his designee, shall conduct a hearing to establish the facts of the case and, if possible, to resolve the dispute.

2. A pilot shall be entitled to Association representation, or the pilot may elect to be represented by another pilot, at any hearing conducted under Section 20.

3. The Association has the right to be present during any hearing conducted under Section 20.

4. The hearing may be conducted telephonically if mutually agreeable to the grievant(s), the Association and the Vice President, Flight Operations, or his designee. Within 15 days after the close of the hearing, the Vice President, Flight Operations, or his designee, shall issue his decision in writing to the signatory of the grievance, with a copy to the named pilot grievants (if any), the FedEx MEC Representation Department, and the designated Company officials. If the FedEx MEC Grievance Chairman is not the signatory of the grievance, then a copy shall be distributed to the Grievance Chairman as well.

E. Appeal of Decision If the decision of the Vice President, Flight Operations, or his designee, is not satisfactory to the pilot or the Association, such decision may be appealed by the Association to the System Board in the manner set forth in Section 21. Such appeal shall be in writing and shall be filed within 15 days following the date on which the signatory of the grievance received the decision. Copies of the appeal shall be sent to the FedEx MEC Grievance Committee

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Chairman, the Vice President, Flight Operations and the designated officials in the Company’s Labor Relations and Contract Administration Departments.

F. General 1. Time Limits

a. Time limits and meeting dates set forth in this Section may be modified, orally or in writing, by mutual agreement of the parties. Oral agreements shall be confirmed in writing as soon as practicable. Requests for modifications shall not be unreasonably denied.

b. When any hearing or appeal afforded a pilot(s) by this Section is not requested within the respective time limits prescribed herein, including any extension mutually agreed upon, the decision of the Company shall be final and binding.

c. If the Company fails to schedule or conduct a hearing in a timely manner, or to issue a timely decision as required by this Section, the grievance shall be deemed denied on the deadline for the hearing or decision, provided, however, that: i. the Company’s obligations under Section 20.D.1. or D.4. shall

not be diminished by this provision; and ii. the Association shall not be deemed to have waived any

arguments to the System Board regarding any claim for relief based on the untimely hearing or decision.

2. For purposes of Section 20, if a time limit is 15 days or less, the term "day" means business day. If a time limit is more than 15 days, the term "day" means calendar day. In any event, if the last day of a time limit falls on a weekend, or on a Corporate or ALPA Holiday (currently including New Year’s Day, Martin Luther King, Jr. Day, President’s Day, Memorial Day, Independence Day, Labor Day, Columbus Day, Thanksgiving Day and the following Friday, Christmas, or the day on which such holiday is observed by the Company or ALPA), the time limit shall be extended through the first business day following the weekend or holiday. The parties shall inform each other expeditiously of any changes in Corporate or ALPA holidays.

3. Delivery of all notices, appeals, and discovery requests and responses pursuant to this Section shall be made by Federal Express Overnight Letter, by certified mail, return receipt requested, in person, by facsimile transmission, Company electronic mail, or by other methods which provide verification of receipt. Such correspondence shall be made to the pilot’s Company electronic mail address and to the pilot’s permanent primary address. A pilot shall be deemed to have received notice upon the earlier of the pilot’s actual receipt of notice or 20 days after the transmission of the electronic mail message. Company decisions shall be issued by FedEx Overnight Letter, with copies sent in the same manner to the

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FedEx MEC Representation Department, and the FedEx MEC Grievance Committee Chairman.

4. The release from Company duty of the grievant(s) and a reasonable number of witnesses and Association representative(s) involved in the resolution of disputes pursuant to Section 20 shall be as provided in Section 18 of this Agreement. Expenses and flight pay loss, if any, for line pilot witnesses called by any party, shall be borne by the party who called the witness or otherwise incurred the expense. Pilots participating as a witness or representative in a Section 20 hearing shall be authorized round trip business jumpseat status to prepare for and attend such hearing.

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System Board of Adjustment 21

SECTION 21 SYSTEM BOARD OF ADJUSTMENT Definitions: FILE/ISSUE A document shall be deemed "filed” or “issued,” as applicable, on the day in which the document is postmarked, or if Federal Express is used, on the day in which the document is submitted to the Company for shipment or if a facsimile machine or electronic mail is used to transmit the document, on the day in which the appeal or decision is transmitted by such means. CASE IN CHIEF The evidence presented by a party in the primary presentation of its case. The term does not include evidence used on cross examination or in rebuttal. As provided in Section 204, Title II of the Railway Labor Act, a System Board of Adjustment is established for the purpose of adjusting and deciding grievances which arise under the terms of this Agreement and have been processed under Section 19 or Section 20 of this Agreement which are properly brought before it in a timely fashion. The System Board of Adjustment shall be known as the Federal Express Pilots' System Board of Adjustment (hereinafter referred to as "the System Board"). A. Jurisdiction

1. The disciplinary System Board shall have jurisdiction over disputes between a pilot(s) or the Association and the Company growing out of grievances, or out of the interpretation or application of any of the terms of the Agreement, which are processed under Section 19 of this Agreement and which are submitted to the System Board as provided in Section 21.B. A neutral arbitrator from the disciplinary panel shall hear such disputes as the sole member of the Board unless either party elects to proceed before a 3-person board. Any such election must be made at least 45 days prior to the System Board proceeding.

2. The non-disciplinary System Board shall have jurisdiction over disputes between a pilot(s) or the Association and the Company growing out of grievances, or out of the interpretation or application of any of the terms of the Agreement, which have been processed under Section 20, and which have been submitted to the System Board as provided in Section 21.B. Such disputes shall be heard by a 3-person System Board unless either party elects to proceed before a 5-person System Board. Any such

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election must be made at least 45 days prior to the System Board proceeding.

3. Retirement and Benefit disputes which are referred to the Pilot Benefit Review Board, as provided in Sections 27 and 28, are handled as set forth in those Sections.

4. The jurisdiction of the System Boards shall not extend to proposed changes in hours of employment, rates of pay or working conditions covered by agreements between the parties in existence at the time the System Board decision is rendered.

B. Submissions to the System Board 1. At least 60 days prior to a System Board proceeding, the Company and

the Association shall confer and designate the case(s) to be heard during that session. Copies of the appeal(s) for the case(s) designated to be heard shall be promptly provided to the neutral member. If the parties cannot agree, the oldest case(s) shall be selected first, except that under the disciplinary System Board, termination cases shall take precedence over non-termination cases.

2. Disputes shall be appealed to the System Board by filing an Appeal with the System Board Chairman as provided herein.

3. Appeals to the System Board shall contain the following: a. Statement of facts and circumstances. b. A citation to the portions of this and/or related Agreements which gave

rise to the Grievance. c. A statement of the issue(s) and/or questions to be decided. d. Position of the party submitting the appeal. e. Position of the other party or parties. f. The relief sought (optional).

4. Copies of appeals shall be sent to the FedEx MEC Grievance Committee Chairman, the FedEx MEC Representation Department, the Vice President, Flight Operations and the designated officials in the Company’s Labor Relations and Contract Administration Departments.

5. If any party disagrees with the statement of its position contained in an appeal filed by another party, the objecting party may submit its own statement to the System Board and all other parties.

6. Pre-hearing briefs may be submitted only to the System Boards by agreement of the parties, or by order of the arbitrator.

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C. System Board Composition and Proceedings 1. Composition

a. The Company and the Association, when applicable, shall each appoint an equal number of members to serve on the System Board. Such members shall be current or former employees of the Company or current or former regular employees of the Association. The neutral member of the System Board shall be the arbitrator.

b. Each member of the System Board shall have one vote. 2. Proceedings before the System Board

a. System Board proceedings shall take place in person, unless all parties agree to conduct the hearing telephonically.

b. Disputes between pilots or the Association and the Company which are processed under Section 19 of this Agreement and which are submitted to the System Board as provided in Section 21.B., may be consolidated by mutual agreement of the Company and the Association.

D. Arbitration 1. The 3-person System Board, when elected by one of the parties for

disciplinary cases, shall hear disputes submitted under Section 19 of this Agreement. Otherwise, the neutral member shall decide disciplinary cases alone. The non-disciplinary System Board shall hear disputes submitted under Section 20 of this Agreement.

2. Each member of the System Board shall have one vote. If one member of a 5 person System Board is absent, he may give his proxy to another member. Proxies must be in writing. a. The System Board may not reach a decision without a vote by all

members. No member may refuse to vote in order to prevent a decision from being rendered.

b. If the System Board reaches a decision by majority vote, that decision shall be final and binding on all parties and the System Board shall issue a written decision within 30 days after the vote.

3. The neutral member shall serve as the chairman of the System Board and shall preside at all hearings of the System Board.

4. 15 Day Evidentiary Exchange Each party shall exchange all documents they intend to enter in their case in chief, in support of their respective positions, and make available, in writing, the names of all witnesses they intend to summon whom they deem necessary to the dispute 15 days prior to the date set for the hearing. Nothing herein shall require the parties to present the aforementioned documents or summon the aforementioned witnesses

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during the course of the hearing. The parties shall not be restricted from entering documents or summoning witnesses who become known subsequent to the 15 day exchange, provided timely notice is given to the opposing party.

E. Panels of Arbitrators 1. The Association and the Company shall maintain 2 separate panels of 6

arbitrators each: one with arbitrators for disciplinary cases and the other with arbitrators for non-disciplinary cases.

2. Impaneling of Arbitrators a. At least 180 days prior to the amendable date, the Association and the

Company shall meet to determine whether to retain either of the current panels of arbitrators. If either of the parties decides to replace a panel(s), the parties shall simultaneously exchange a list of 15 arbitrators for each panel to be replaced. An incumbent arbitrator(s) on a panel that is being re-selected may be submitted on a party’s 15 arbitrator list.

b. Within thirty days following the exchange, the parties shall meet in order to select the subsequent panel(s) of arbitrators.

c. The selection of arbitrators shall be accomplished as follows: i. If an arbitrator(s) appeared on both exchanged lists described in

Section 21.E.2.a., such arbitrator(s) shall be accepted as a member of the respective panel. If the panel is not complete, then;

ii. the parties shall examine each other’s lists and determine whether there are any arbitrators on the other party’s list that are acceptable to both parties. Any such arbitrator(s) shall be accepted as a member of the respective panel. If the panel is not complete, then;

iii. within 15 days following the meeting, the parties shall simultaneously exchange a second list, containing 7 different arbitrators, and repeat the process described in Section 21.E.2.b., and E.2.c.i., and E.2.c.ii. If a panel still is not complete, then; (a) the parties shall jointly request the NMB to provide a single list

containing 7 arbitrators for each remaining vacancy on that panel (e.g., a list of 14 arbitrators to fill 2 vacancies on a panel).

(b) following receipt of the list(s), the parties shall examine the list(s) and determine whether any arbitrators are acceptable to both parties. Any such arbitrator(s) shall be accepted as a member of the respective panel. If the panel still is not complete, then;

(c) any remaining vacancies shall be filled using the alternate strike method based on the list(s) provided by NMB. A coin toss shall determine which party has the first strike. If the alternative

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strike method is necessary for both panels, then the party losing the coin toss regarding the administrative panel shall have the first strike on the disciplinary panel.

3. Vacancies on a Panel of Arbitrators a. Should vacancies occur on either panel of neutral members, other than

by operation of Section 21.E.5., the parties shall attempt to agree on a replacement within 30 days after the vacancy occurs. If the parties are unable to agree on a replacement, the vacancy shall remain unfilled.

b. If there are too few arbitrators to hear scheduled arbitrations, the parties may select an arbitrator to hear a scheduled arbitration on an ad hoc basis. This arbitrator shall be selected by the alternate strike method from a list of 7 arbitrators provided by the National Mediation Board. A coin toss shall determine which party has the first strike.

4. Scheduling of Neutral Members of the System Boards a. In September of each year the Company and the Association shall

schedule mutually agreeable dates on which the neutral members of the System Boards shall conduct System Board proceedings during the following calendar year. The slotting of neutral members into the scheduled dates shall be done by mutual agreement. If by September 20 of each year, the parties have been unable to agree upon such slotting, then on the first business day thereafter, the parties shall meet to determine such slotting by drawing the panel members' names (first draw determined by coin toss) and slotting them in the order drawn.

b. If necessary, additional dates for System Board proceedings will be scheduled by mutual agreement of the Company and the Association.

5. Removal of Neutral a. Bilateral

The Association and the Company may, by mutual agreement, remove an arbitrator from a panel(s). Within 30 days after the arbitrator’s removal, the parties shall meet to determine whether the vacancy should be filled or left vacant. If either party wishes to fill the vacancy, then the following shall apply: i. The Association and the Company shall simultaneously exchange a

list of 7 arbitrators within 10 days after the removal. ii. Thirty days following the exchange, the Association and the

Company shall meet in order to select the arbitrator. The selection of the arbitrator shall be accomplished as follows: (a) If a single arbitrator appeared on both exchanged lists, such

arbitrator shall be accepted as a member of the panel. (b) If more than one arbitrator appeared on both exchanged lists,

the replacement arbitrator shall be selected by an alternative

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strike method among the arbitrators appearing on both lists, with a coin toss to determine which party has the first strike.

(c) If no arbitrator appeared on both lists, the parties shall determine whether either party is willing to accept an arbitrator from the other party’s list. If a mutually acceptable arbitrator is found, such arbitrator shall be impaneled. If not, then the parties shall use the process described in Section 21.E.2.c.iii.(a)-(c) to fill the vacancy.

b. Unilateral Each party shall have the opportunity to remove a total of three arbitrators during the term of the Agreement, but no more than one in any period of 12 months. A party exercising a unilateral removal shall inform the other party, in writing, of its removal. i. The arbitrator shall be considered removed as of the date of the

notice of removal, provided, however, that a System Board for which an appeal has been filed shall continue to retain jurisdiction over the dispute(s).

ii. If the removed arbitrator originally appeared on both parties’ list, then his replacement shall be accomplished as provided in Section 21.E.5.a.i., and ii.

iii. If the removed arbitrator originally appeared only on one party’s list, then, within 30 days following the removal, that party shall submit a list of 7 arbitrators. Within 15 days following receipt of the list, the parties shall determine whether there is a mutually acceptable arbitrator. If not, then the parties shall use the process described in Section 21.E.2.c.iii.(a)-(c) to fill the vacancy.

6. Unless otherwise agreed, all arbitrators, whether on lists submitted by the parties or obtained from the NMB, shall be members of the National Academy of Arbitrators experienced in airline arbitrations.

F. General Provisions 1. Time limits and meeting dates may be modified, orally or in writing, by

mutual agreement of the parties. Oral agreements shall be confirmed in writing as soon as practicable. Requests for modifications shall not be unreasonably denied. When any appeal to the System Board is not requested within the respective time limits prescribed herein, including any extension mutually agreed upon, the decision of the Company shall be final and binding.

2. For purposes of Section 21, if a time limit is 15 days or less, the term "day" means business day. If a time limit is more than 15 days, the term "day" means calendar day. In any event, if the last day of a time limit falls on a weekend, or on a Corporate or ALPA Holiday (currently including New Year’s Day, Martin Luther King, Jr. Day, President’s Day, Memorial Day,

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Independence Day, Labor Day, Columbus Day, Thanksgiving Day and the following Friday, Christmas, or the day on which such holiday is observed by the Company or ALPA), the time limit shall be extended through the first business day following the weekend or holiday. The parties shall inform each other expeditiously of any changes in Corporate or ALPA holidays.

3. The Association, the Company and, if applicable, the individual grievant pilot are parties to all System Board proceedings.

4. Every participant in System Board proceedings shall be free to discharge his duty without fear of retaliation by the Association or the Company. No participant shall be coerced or harassed by the Association or the Company.

5. The reasonable expenses and fees of neutral members and any line pilot witnesses summoned by the System Board, and the cost of facilities selected for System Board proceedings shall be borne equally by the Company and the Association. A party may order a transcript or other record of a System Board proceeding. A copy of such record shall be made available to a party upon request, provided the requesting party agrees to pay a pro-rata share of the cost of making such record. All other costs associated with System Board proceedings, including, but not limited to, expenses and, if applicable, flight pay loss for line pilot witnesses called by any party, shall be borne by the party who called the witness or otherwise incurred the expense.

6. If applicable, a schedule for submission of post-hearing briefs shall be established immediately prior to the close of the hearing.

7. Proceedings of the System Board shall be conducted at locations selected by agreement of the Company and the Association. In making such selections, the Company and the Association shall endeavor to minimize costs. In the absence of an agreement, proceedings shall be conducted in Memphis, Tennessee.

8. The grievant(s) and a reasonable number of witnesses and Association representatives involved in the resolution of disputes pursuant to this Section may be released from Company duty pursuant to the provisions of Section 18 of this Agreement. The arbitrator hearing the underlying dispute shall resolve disputes regarding whether the number of Grievants and witnesses to be released from Company duty is disruptive to Company operations. The Parties shall present the issue to the arbitrator so that the System Board hearing on the underlying dispute is not delayed by disputes regarding the number of grievants or witnesses to be released from Company duty. Pilots participating as a witness, representative or member in a System Board proceeding shall be authorized round trip business jumpseat status to prepare for and attend such proceeding.

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9. Delivery of all notices, decisions and appeals pursuant to Section 21, and any other documentation pursuant to Section 21 shall be made by Federal Express Overnight Letter, by certified mail, return receipt requested, in person, by facsimile transmission, Company electronic mail, or by other methods which provide verification of receipt. Such correspondence shall be sent to the pilot’s Company electronic mail address and the pilot’s permanent primary address. A pilot shall be deemed to have received notice upon the earlier of the pilot’s actual receipt of notice or 20 days after the transmission of the electronic mail message. Such correspondence shall also be sent to the FedEx MEC Representation Department, and the FedEx MEC Grievance Committee Chairman. Whenever a party sends correspondence or other documentation to an arbitrator related to a case under this Section, the other party shall be copied on such correspondence or documentation using the same delivery method by which the arbitrator was sent his copy. Correspondence by email is acceptable among System Board members unless the neutral provides otherwise.

10. By mutual agreement between the Company and the Association, a neutral from the disciplinary panel may hear a non-disciplinary case, and vice versa.

11. At any System Board proceeding, the Company and ALPA may be represented, respectively, by an employee or agent of the Company or a representative or agent of ALPA.

12. System Board Awards a. If a System Board Member dissents from an award issued by the

majority of the System Board, the dissenting Member may submit a written dissent within 30 days of the majority’s execution of the award, which shall be attached to the award.

b. If a System Board Member dissents from an award issued by the majority of the System Board and has not executed the award within 30 days after the award is executed by a majority of the System Board, the majority’s award shall be final and binding without the dissenting Member’s signature.

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Seniority 22

SECTION 22 SENIORITY A. Federal Express Pilots’ Master Seniority List

1. The Federal Express Pilots’ Master Seniority List (referred to throughout this Agreement as the Master Seniority List), containing the name of each pilot and his relative placement on the list, shall continue to be maintained. The list will include both pilot and engineer seniority numbers. The list shall be brought up to date as of July 1 of each year and will be posted within 30 days thereafter. The effective date shall appear on the list.

2. The seniority of a pilot employed on or after May 31, 1999 shall accrue from his date of hire. When 2 or more pilots have the same date of hire, those pilots shall be placed on the Master Seniority List in order of the last four digits of their social security numbers with the pilot having the highest last four digits of his social security number receiving the more senior placement on the list. If 2 or more pilots have the same date of hire and have the same last four social security digits, their relative placement on the Master Seniority List shall be determined by drawing lots.

B. Seniority Accrual and Application 1. A pilot who has established seniority shall not lose his seniority except that

a pilot shall forfeit all employment and seniority rights and his name shall be removed from the Master Seniority List under the following conditions: a. Retirement. b. Resignation. c. Termination for just cause pursuant to Section 19, 20, and 21.

i. The seniority list will include a terminated pilot’s name until his termination is final, inclusive of System Board proceedings, if any. A terminated pilot’s inclusion on the seniority list does not confer any rights of employment whatsoever.

ii. Section 20 is included because terminations that result from the application of Section 11 (Training) due to training failures give rise to contractual as opposed to disciplinary grievances.

d. Failing to return to a flying position upon recall pursuant to the provisions of Section 23.

e. Failing to return to work at the expiration of a leave of absence.

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f. Termination of probationary pilots pursuant to Sections 19.A.3.b., 20 and 21. Section 20 is included because terminations that result from the application of Section 11 (Training) due to training failures give rise to contractual as opposed to disciplinary grievances.

g. Failing to be recalled from furlough by the Company for 7 continuous years.

h. Rejecting an offer of retirement under Section 23.A.2.c. 2. Except as otherwise provided in this Agreement, seniority shall govern all

pilots in cases of vacancy posting awards, bid period schedule awards, vacation awards, ITU training schedules pursuant to Section 24, and retention in case of reduction in force and recall pursuant to Section 23.

C. [RESERVED] D. Protests of Master Seniority List

1. The Master Seniority List as of April 1, 2010[TBD] is considered inviolate. Challenges related to such arising from facts and circumstances occurring after April 1, 2010,[TBD], however, are subject to Section 20 as follows: a. Challenges relating to any subsequently published list must be filed on

or before March 31 of the year in which the subsequent list is published. b. An alleged error(s) on an annually updated Master Seniority List not

grieved by March 31 of the year following the year in which the list is published is not grievable at any time in the future.

c. A pilot who is on leave of absence, vacation, sick leave or is not engaged in active employment with the Company at the time an annually updated Master Seniority List is posted, may file a grievance concerning an alleged error on the most recently published list provided he does so before the earlier of: i. 30 days following his receipt of the updated Master Seniority List; or ii. 30 days following his return to active pilot employment.

d. The Company may correct typographical or clerical errors on the Master Seniority List any time during the year. The Company shall notify the Association in writing of any corrections.

E. Probationary Pilots 1. A pilot hired before February 28, 2011, shall be employed on a probationary

basis for the first 365 days of accumulated active service as a pilot with the Company. A pilot hired on or after February 28, 2011, shall be employed on a probationary basis on his DOH, and continuing for the first 365 days of accumulated active service as a pilot with the Company following the check ride/qualification event that establishes his base month for recurrent

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training/continuing qualification. Termination of a pilot’s employment during his probationary period shall result in the removal of the pilot from the Master Seniority List, subject to the provisions of Sections 19, 20 and 21.

2. Notwithstanding the provisions of Section 22.E.1., a probationary pilot is subject to the provisions of Section 23.

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Furlough and Recall23

SECTION 23 FURLOUGH AND RECALL Definitions: FURLOUGH A method for reducing the number of active pilots. A. Furlough

1. Except as provided in Section 23.A.1.b. and A.2., if the Company determines it is necessary to reduce the number of active pilots, the Company shall furlough pilots in reverse order of system seniority as listed on the Master Seniority List. All pilots holding a seniority number at the time of furlough shall be subject to the provisions of Section 23 regardless of their employment status at that time (e.g., active flying service, leave of absence, disability, probationary pilots). Reductions in the number of pilots shall be accomplished as follows: a. A pilot shall receive at least 30 calendar days notice with a copy to the

Association prior to the effective date of any furlough. In the event he receives less than 30 days notice, he shall be pay protected for 30 days in lieu of that notice. No notice or pay shall be required if the furlough is the result of circumstances beyond the Company’s control.

b. Prior to the issuance of furlough notices, the Company may offer voluntary furloughs. The Company may limit the offer to 1 or more designated crew statuses. Voluntary furloughs shall be granted in order of system seniority. The Company shall make best efforts to provide pilots at least 30 calendar days notice of the offer of voluntary furloughs, with a copy to the Association.

2. Notwithstanding the provisions of Section 23.A.1. and B.1., the following apply to a pilot subject to a regulated age restriction: a. If the pilot is involuntarily excessed from his current crew position and,

as a result of his restriction, he is ineligible to be awarded or assigned any other crew position, the pilot may be furloughed.

b. The pilot may be bypassed on recall from furlough until there is an available crew position that he is eligible to be awarded or assigned.

c. A restricted pilot who cannot move to or be accommodated as a second officer from another crew position because his relative seniority is less than the current population of second officers or there are no second officer crew seats, shall be offered the opportunity to retire as provided in the Agreement. Following a pilot’s rejection of the offer,

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Furlough and Recall 23

the pilot shall be released from employment as provided in Section 22.B.1., and shall not be considered as having been furloughed in cases where the only crew status the pilot can occupy is second officer.

3. A pilot who is on furlough shall file with the flight personnel department his current mailing address to be used in the event of recall. A pilot shall advise that department in writing of any change in his address.

4. A furloughed pilot shall retain all longevity and seniority accrued prior to furlough and shall continue to accrue longevity for a period of 3 years. A furloughed pilot shall retain and continue to accrue seniority for a period of 7 continuous years.

5. A furloughed pilot shall retain his regular and disability sick accounts in accordance with the provisions of Section 14.A.3.

6. A furloughed pilot shall be compensated for any earned and accrued vacation that is unused as of the date of furlough.

7. The continuation of a pilot's benefits beyond his furlough date shall be governed by applicable state or federal laws except that a pilot shall continue to be eligible for company related insurance programs for the period, if any, during which he is entitled to receive furlough pay as provided in Section 23.E.

8. The Company shall notify the Association in writing if it anticipates a furlough or a recall. Upon written request, the Company shall meet and consult with the Association concerning possible adjustments to provisions of this Agreement (e.g., construction of bid period schedules and reducing or eliminating volunteer and draft flying) that may avoid or mitigate the effects of a furlough.

9. A furloughed pilot shall continue to be eligible for employee reduced rate shipping privileges and Company jumpseat privileges, as provided in Section 26, for the period during which he is entitled to receive furlough pay. A furloughed pilot will continue to have access to E-mail, VIPS and IMS for the period during which he is entitled to receive furlough pay. During any period when there are pilots on furlough, the Company shall send the Association a copy of the Career Opportunities Postings, and each update. A furloughed pilot may coordinate with his last flight manager if he desires to apply for any Company positions.

10. Recall shall be offered to all pilots on furlough prior to the employment of a new hire pilot, except as provided in Section 23.A.2.b.

11. There shall be no volunteer flying in any crew status while any pilot is on furlough. The Company does not intend to rely on draft flying in order to avoid a recall.

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B. Recall

1. Except as provided in Section 23.A.2., pilots, including pilots who have not completed their probationary period, shall be recalled from furlough in order of system seniority.

2. Furloughed pilots shall be notified of recall in writing (e.g., Federal Express Overnight Letter) with a copy sent to the Association. The notice shall allow the pilot at least 30 days to report for duty. The pilot shall respond in writing (e.g., Federal Express Overnight Letter) within 14 calendar days following his receipt of the recall notice, and state whether he will accept recall.

3. A pilot recalled from furlough shall be returned to the payroll on the day he resumes active employment. Prior to his activation in a crew status, the hourly rate of pay for a pilot who is recalled shall be the current hourly rate for the last crew status held by the pilot prior to his furlough; provided, however, that if that crew status no longer exists, the pilot’s hourly rate of pay prior to activation shall be the hourly rate for the crew status to which the pilot has been recalled.

4. If a recalled pilot is unable to return to active flying service due to medical reasons, the following shall apply: a. If the pilot was on disability at the time of furlough, his eligibility for

disability benefits shall be governed by Section 27. b. If the pilot was on sick leave at the time of furlough he shall not be

entitled to sick leave until after he has returned to an active pay status; provided, however that if the pilot would otherwise be entitled to sick leave based on the same injury or illness that caused him to be on sick leave at the time of furlough, he may re-enter sick leave upon recall.

c. If the pilot was not on sick leave at the time of furlough, he shall not be entitled to sick leave until after he has returned to an active pay status.

d. If the pilot does not qualify for sick leave or disability, he shall be placed in a medical leave of absence.

e. For purposes of Section 22.B.1.d., the pilot shall be considered as having returned to a flying position.

5. A pilot may decline recall and remain on furlough if a junior pilot remains on furlough; provided, however, a pilot may not decline a recall if the Company has sent notice of recall to all furloughed pilots, and the pilot has not requested and been granted a leave of absence in accordance with Section 13.

6. Even if no junior pilot remains on furlough, a pilot may decline recall and remain on furlough for the duration of any individual contract of employment, not to exceed 24 months, to which he is a party at the time of

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his recall. The pilot shall provide the Company a copy of his contract of employment.

7. A pilot’s election to decline recall and remain on furlough in accordance with Section 23.B.4. or B.5., shall not extend the period of 7 years referred to in Section 22. B.1.g.

8. A pilot who is recalled from furlough shall be guaranteed at least 6 bid periods of active pilot employment following recall.

C. Incentive Plan The Company may, at its option, elect to avoid or mitigate a furlough by offering pilots or a specific group of pilots (using age or seniority, unless the Association consents to an alternate selection criteria) voluntary early retirement and/or severance package. If made to a specific group of pilots, any offer shall be made on a uniform and non-discriminatory basis. The Company shall notify, meet and consult with the Association prior to making any offer pursuant to this paragraph.

D. Non-Flying Employment Opportunities A pilot to whom a furlough notice has been issued may compete for available non-flying employment with the Company for which he is qualified for a period of 90 days following the effective date of his furlough or until expiration of the period, if any, during which the pilot is entitled to receive furlough pay, whichever is later. If a pilot is offered and accepts non-flying employment, his pay, working conditions and benefits, including any relocation benefits, shall be determined by Company policies pertinent to that position. A furloughed pilot may not work in a non-flying position with the Company at the same time that he is receiving furlough pay as provided in Section 23.E.1. If mutually acceptable to the pilot and the Company, however, such pilot may waive all or a portion of his furlough pay in order to begin his non-flying employment sooner.

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E. Furlough Pay 1. A furloughed pilot shall receive furlough pay based on his longevity as a

pilot, in accordance with the table below. The hourly rate of furlough pay shall be the rate applicable to the pilot's crew status on the day prior to the effective date of his furlough. For purposes of this paragraph, bid period compensation is deemed to be 70 hours and a bid period is deemed to be 4 weeks. Furlough pay shall be paid to pilots as provided in Section 3, commencing with the bid period immediately following a pilot's furlough.

Longevity as a Pilot Furlough Pay (Bid Periods)

Less than 1 year 0

1 years but less than 3 1.0






More than 10 years 4.5

A furloughed pilot must return his Company identification badge in order to receive furlough pay. Additionally, furloughed pilots must update their current contact information to ensure proper delivery of Company information, including recall notices.

2. A furloughed pilot may elect to reduce the dollar amount of the payments of the furlough pay to which he is entitled by 50%. In this event, the number of bid periods during which the pilot is entitled to receive furlough pay shall be doubled. Any election of this option shall be made prior to the effective date of furlough and may not be modified after the commencement of the furlough.

3. If a pilot receiving furlough pay is recalled, his furlough pay shall terminate on the date he resumes active employment. However, if the pilot has elected reduced payments in accordance with Section 23.E.2., he shall receive 60 hours of furlough pay per bid period, on a pro-rated basis, if

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applicable, for the period he was on furlough, not to exceed the maximum furlough pay to which the pilot was entitled pursuant to Section 23.E.1.

4. If a furloughed pilot is on leave of absence on the effective date of furlough, his furlough pay, if any, shall be based on his scheduled or actual return from leave of absence, whichever is later. His furlough pay shall be reduced by a prorated amount for each day he was on leave of absence (or scheduled to be on leave of absence) after the effective date of the furlough.

5. A furloughed pilot who is entitled to reimbursement of expenses under the Agreement shall submit the documentation required for reimbursement to the Company within 30 days of the date when the pilot incurred the reimbursable expense.

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Filling of Vacancies24

SECTION 24 FILLING OF VACANCIES Definitions Currently Awarded/Assigned Crew Position or Status: The crew position or crew status to which the pilot has an award/assignment. “Currently Awarded/Assigned Crew Position or Status” may differ from the pilot’s “Current Crew Position or Status.” Current Crew Position or Status: The crew position or crew status in which the pilot was most recently activated, and which may differ from his “Currently Awarded/Assigned Crew Position or Status.” Current Staffing Level: The number of active pilots currently awarded/assigned to a particular crew position on the date of the posting of a System Bid. Dynamic Staffing Level: The number of active pilots currently awarded/assigned to a particular crew position at any given time during the processing of the System Bid. The Dynamic Staffing Level may vary from the Current Staffing Level as the System Bid is processed. New Hire Junior Activation Compensation: An hourly rate of pay which is higher than the hourly rate of pay a pilot otherwise would earn, and to which he may be entitled as a result of a new hire junior pilot’s activation out of seniority order. Maximum Staffing Level: The threshold number of active pilots awarded/assigned to a particular crew position, beyond which that crew position is overstaffed, as determined by the Company. The “Maximum Staffing Level” shall be published for every crew position, on every system bid posting. Minimum Staffing Level: The threshold number of active pilots awarded/assigned to a particular crew position, below which that crew position is understaffed, as determined by the Company. The “Minimum Staffing Level” shall be published for every crew position, on every System Bid posting. Award: A pilot’s voluntary placement into a crew position, training start date, or base transfer activation date. Specifically in the context of a crew position, “voluntary” describes placement into a crew position which the pilot included on his standing bid above his previous, then-Currently Awarded/Assigned Crew Position. Assignment: A pilot’s involuntary placement into a crew position, training start date, or base transfer activation date. Specifically in the context of a crew position,

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Filling of Vacancies 24

“involuntary” describes placement into a crew position which the pilot either included on his standing bid below his previous, then-Currently Awarded/Assigned Crew Position, or did not include on his standing bid. Down/Lateral Bid Award: An award (not including either Stand-In Bid Awards or ARR awards) of a different crew status that requires ITU training, that is compensated at an hourly rate less than or equal to the hourly rate of pay for his current crew status. Pilot(s) Subject to Assignment: For any crew position in which the Dynamic Staffing Level exceeds the Maximum Staffing Level, the number of junior pilot(s) equal to the numerical difference between the Maximum Staffing Level and the Dynamic Staffing Level. Most Junior Pilot Not Subject to Assignment: For any crew position in which the Dynamic Staffing Level exceeds the Maximum Staffing Level, the pilot immediately senior to the most senior pilot subject to assignment. Slot Denial Payment (SDP): The payment due to a pilot who is:

1. Denied a training start date award to which he is otherwise entitled; or 2. Inversely assigned to a training start date as the result of a more junior pilot

being bypassed. System Bid: The process for awarding or assigning pilots to crew positions. Assignment Right of Return (ARR): A pilot’s right to return to the crew position from which he was previously assigned. Fleet Retirement: For a given aircraft (e.g., B727), when the number of pilots with that aircraft as their currently awarded/assigned crew status is zero following the closing of a System Bid. Base Closure: For a given base (e.g., MEM MD-11), when the number of pilots with that base as their currently awarded/assigned crew position is zero following the closing of a System Bid. 24-Requalification (24-Requal): A training course that is only available to an eligible pilot who was previously activated in his currently awarded/assigned crew status. Any requalification training course having a footprint similar to an I/T/U footprint shall not qualify as a 24-Requal. 24-Downbid Training (24-Downbid): A training course that is only available to an eligible pilot whose currently awarded/assigned crew status is the First Officer seat, in the same aircraft as the Captain seat from which he was awarded/assigned. Any downbid training course having a footprint similar to an I/T/U footprint shall not qualify as a 24-Downbid. 24-Differences Training (24-Differences): A training course that is only available to an eligible pilot whose currently awarded/assigned crew status involves the

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operation of an aircraft type that the FAA Administrator has determined requires differences training for which the pilot has to bid. New Hire Pilot: A pilot assigned to, or awarded his initial crew position. Eligible Pilot (for System Bid): All active pilots shall have the ability to participate in a System Bid and, by operation of Section 24.C., receive an actual or notional award/assignment consistent with their standing bid. Eligible Pilot (for Training/BTA Bid): All active pilots shall have the ability to bid for and/or be assigned to monthly training slots (or BTA dates), except for:

a. a pilot who received a notional crew position award/assignment under Sections 9.__, 11.__, 18.B.4., and 24.B.9.;

b. a pilot who received an actual or notional crew position award/assignment but who is returning from a pay only sick status (see Section 24.D.6. below);

c. an FDA pilot who was assigned to a crew position and elected to hold his required training or BTA date in abeyance until he completes his commitment period; or

d. an FDA pilot, who has completed his commitment period and was awarded/assigned to a crew position but has elected to defer his training or BTA date due to an education conflict (as defined in the FDA LOA).

Notional Award/Assignment: When a pilot is awarded or assigned a “notional” award or assignment, the preliminary System Bid results will determine the pilot’s notionally awarded/assigned crew position. The final System Bid results will not include that pilot’s notional award/assignment and will instead award/assign that crew position to another pilot. A. General

1. Vacancies and excesses inAll crew positions shall be posted and awarded or assigned pursuant to a System Bid conducted in accordance with the provisions of this Section, except as provided otherwise in this Agreement.

2. AAn eligible pilot's actual or notional crew position (i.e., domicilebase, aircraft and seat), shall be determined by his seniority and standing bid.

3. Certification Requirements a. Prior to being awarded a Captain crew position, a pilot must possess a

current FAA medical certificate for that crew position, as provided in Section 15.A., and an Airline Transport Pilot Certificate or a current FAA certification of successful completion of the Airline Transport Pilot written examination.b. Prior to being awarded acommencing training for a

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Captain or First Officer crew position, a pilot must possess a current FAA medical certificate for that crew position, as provided in Section 15.A., and at least a Commercialan Airline Transport Pilot Certificate (Airplane Multi-Engine Land with an Instrument Rating).c. Prior to being awarded a Second Officer crew position, a pilot must possess a current FAA medical certificate for that crew position, as provided in Section 15.A., and a Flight Engineer (Turbo-Jet) Certificate, or a current FAA certification of successful completion of the Flight Engineer (Basic and Turbo-Jet) written examination.

b. d. If a pilot receives an award but does not possess the requisite certifications as described in Section 24.A.3.a., A.3.b. or A.3.c. ( above), he may be removed from that award/assignment and, if removed, shall remain in his current crew position. A crew position which becomes vacant as a result of application of this paragraph shall be addressed as provided in Section 24.C.7. (below).

4. Standing Bid a. Each pilot shall maintain aAfter the close, or cancellation, of each

System Bid, a pilot’s standing bid on file with the Company reflecting his current crew position preferences, which shall remain effective until he submits an updated standing bidwill be reset to reflect only his currently awarded/assigned crew position at 100%.

b. A pilot may update histhe standing bid at any time. The standing bid format shall: i. Contain a separate and optional preference listing for the temporary

vacancies and/or FDA vacancies, if any, for which he wishes to bid;ii. Provide provide a method for percentage bidding on permanent vacancies; andiii. Provide a method to accept an award only if that award would qualify as a bid to relieve an excess.crew positions in 5% increments, measured as a function of each crew position’s Minimum Staffing Level.

c. Changes to standing bids shall be submitted through VIPS or other Company designated submission processthe Company’s appropriate electronic system (currently VIPS).

5. A pilot awarded or assigned a new crew position shall not relinquish his current crew position until he has been activated into his new crew position. a. If the pilot has been awarded/assigned a training start date and his

activation is delayed owing to his performance or unavailability (e.g., leave of absence, sick leave), then the pilot will begin to earn the lower hourly rate of pay 90 days following the pilot’s awarded/assigned training start date, unless his actual activation is sooner.

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b. If the pilot has not been awarded/assigned a training start date, then the pilot will begin to earn the lower hourly rate of pay 90 days following the training start date the pilot would have been assigned but for his unavailability.

Nothing in this paragraph shall be construed as a means to pay credit hours, earned by a pilot while operating flight activities, at an hourly rate lower than that rate associated with the aircraft he operated.

6. Once a pilot commences initial, transitionInitial, Transition or upgradeUpgrade (ITU) training, 24-Requalification (24-Requal), or 24-Downbid training, he may not perform flight duties in his current crew status, except as follows: a. hethe pilot is returned to his current crew position due to withdrawal from

training, or as a result of a training failure; or b. histhe pilot’s illness, injury or other absence(s) causes an unscheduled

interruption to his training which then results in a decision to return him to his current crew position; or

c. whenever unscheduled training interruptions are caused by natural disasters, emergencies, prolonged mechanical malfunctions or extended periods of unavailability of training equipment anticipated to last in excess of 21 days.

7. A pilot may be released from a vacancy bidan award or assignment only in extenuating circumstances by the Vice President, Flight Operations.

B. Crew Position PostingsSystem Bids 1. General 1. a. Notification of postings for crew position vacancies and crew positions in

excessa System Bid shall be communicated to pilots through the appropriate Flight Crew Information File (FCIF). Notification that an active postingSystem Bid exists shall be available through VIPSthe Company’s appropriate electronic system (currently the PFC website).

2. b. PostingsThe posting of a System Bid shall contain at least the following information:

i. Number of crew positions to be awarded; a. ii. Type ofFor each crew position:

i. (a) Primary permanent vacancy;The Current Staffing Level; (b) Temporary vacancy; (c) FDA vacancy;

ii. The Minimum Staffing Level; and

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iii. (d) Position(s) in excess.The Maximum Staffing Level. b. iii. SenioritySystem seniority numbers of the most senior and the most

junior pilots currently holding each crew position posted.: i. currently awarded/assigned each crew position; and ii. currently activated in each crew position.

c. iv. Dates and times on which the postingSystem Bid opens and closes. d. v. InformationTo the extent known, information as to when training

related to that postingSystem Bid is projected to begin, along with the anticipated training footprint for each ITU type, and anticipated range of monthly training throughput by crew position.

e. Required certificates for each crew position as described in Section 24.A.3.

f. vi. Additional information as appropriate. 3. c. Each postingSystem Bid shall be published and remain available for

bidding for the following minimum time periods:i. 14 days for permanent vacancies or excesses at an existing non-FDA domicile;a minimum of 14 days. A System Bid that includes crew positions at a new base (including FDAs) shall be published and remain available for bidding for a minimum of 28 days.

ii. 28 days for permanent vacancies or excesses at an FDA base; iii. 45 days for the initial posting of permanent vacancies establishing a

new domicile (including FDA domicile); iv. 10 days for temporary vacancies.

4. d. The Company shall publish at least 1 practice bid award between 7 days and 3 days prior to the closing of any posting for permanent crew position excesses or vacanciesSystem Bid. The results of a practice bid(s) shall be communicated to pilots through Company E-Mailthe Company’s appropriate electronic system (currently the PFC website) no later than 24 hours after the closing of the practice bid.

5. The published results of a System Bid (as provided in Section 24.C.1. (below)) shall be available in the Company’s appropriate electronic system (currently the PFC website) for a minimum of 7 years.

6. e. A postingSystem Bid may not be amended after it is published, but its closing date may be extended after consultation with ALPA. The Company may, however, cancel any postingSystem Bid prior to its closing.

2. Temporary Vacancy Posting

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7. a. A temporary vacancy shall begin and end concurrent with a bid period. Temporary vacancies may not be utilized in a crew position for more than 4 bid periods during any calendar year.System Bid must close, or be canceled, prior to the opening of another System Bid. b. A temporary vacancy posting shall specify the crew position(s) from

which bids will be accepted and, if applicable, the number of bids which will be awarded at each domicile from which bids are accepted.

c. Temporary vacancies in a crew position shall be posted and awarded separately for each bid period.

d. A temporary vacancy may be utilized only at an existing non-FDA domicile.

3. Excess Posting When crew position excesses are declared, they shall be posted in the same manner as crew position vacancies.

8. For the purposes of a System Bid, a pilot shall bid from his currently awarded/assigned crew position. However, a pilot who is assigned from a crew position into which he never activated and to a crew position in the same geographic location as the base associated with his current crew position will not be eligible for the relocation benefits described in Section 6.A.2. (Assignment).

9. For the purposes of a System Bid, any award for an FDA pilot, who has not yet met his applicable FDA commitment period when the System Bid closes, shall be a notional award.

10. For the purposes of a System Bid, any award/assignment for a pilot in pay only sick status when the System Bid closes shall be a notional award/assignment.

C. Bid Award/Assignment Procedure 1. Primary crew position vacancies or excesses shown on a posting are

deemed to have been awarded at the time the posting closes. If a posting contains both primary vacancies and crew positions in excess, primary vacancy bids and bids to relieve an excess shall be awarded prior to assignment of crew positions to pilots who are involuntarily excessed. The number of pilots involuntarily excessed from a crew position shall be reduced by the number of pilots holding that position who are awarded a new crew position on that posting.

1. 2. The effective date of all awards/assignments shall be the closing of the applicable System Bid, regardless of when the awards/assignments are published. Within 10 days following the closing of a postingSystem Bid, the Company shall communicate the following to pilots through an FCIF:

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a. Names, employee numbers and seniority numbers of pilots receiving an award or assignment and the crew position awarded or assigned;

b. Type(s) of crew position award(s)/assignment(s):Designation of any awards based on an Assignment Right of Return (ARR); i. Primary permanent vacancy; ii. Secondary permanent vacancy; iii. Temporary vacancy; iv. FDA vacancy; v. Excess;

c. Projected training dates;Anticipated start date for the first training start date in each crew position, along with anticipated range of monthly training throughput for each crew position (Example: M57C – First TRN Start Date January, 2012 – 6 to 12 per month); and

d. Projected activation dates; d. e. Miscellaneous additional information.

3. Permanent Vacancy Awards a. All primary and, if applicable, secondary permanent vacancies shall be

awarded in seniority order based on pilots’ standing bids and system seniority.

b. If no pilot on the Master Seniority List expresses a preference by standing bid for a primary permanent vacancy, the Company may either assign that vacancy to the most junior pilot(s) on the Master Seniority List or hire a pilot(s) to fill any remaining vacancy(ies).

c. The Company may elect to fill a secondary permanent vacancy, however, no pilot may be assigned involuntarily to fill a secondary vacancy.

4. Temporary Vacancy Awards a. A temporary vacancy(ies) shall be awarded in order of seniority to pilots

who: i. are currently qualified in and currently hold a permanent position in

the crew status in which the temporary vacancy exists at a base(s) specified by the Company as provided in Section 24.B.2.b.; and

ii. have requested that temporary vacancy on their standing bid. b. If a temporary vacancy(ies) remains following the award process the

most junior pilot(s) described in Section 24.C.4.a.i., (above), may be assigned that vacancy(ies) in order of reverse system seniority. A pilot

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may not be assigned to a temporary vacancy in accordance with this paragraph for longer than 1 bid period nor more than once in any period of 14 consecutive bid periods until all more senior pilots in his crew position have been inversely assigned to those temporary vacancies.

c. A temporary vacancy may not be awarded or assigned to a pilot who is scheduled or anticipated to be unavailable, (e.g., on vacation, training, sick leave, leave of absence), during the bid period in which the temporary vacancy exists.

d. A temporary vacancy shall be awarded or assigned prior to publication of the bid period packages for the bid period in which the temporary vacancy exists.

e. An award/assignment of a temporary vacancy shall not result in a permanent crew position change. Upon completion of a temporary award or assignment, a pilot shall return to his permanent crew position.

5. FDA Vacancy Awards 2. Except as provided in Section 24.C.2.e. below, the System Bid shall be

processed in system-wide seniority order, as follows: a. Primary and, if applicable, secondary FDA vacancies shall be awarded

in seniority order based on pilots' standing bids. The Company may elect not to fill secondary FDA vacancies.For each crew position for which the Dynamic Staffing Level is less than the Minimum Staffing Level, a pilot will be awarded/assigned such crew position according to his standing bid.

b. Stand-In Bid Award For each crew position for which the Dynamic Staffing Level is equal to or greater than the published Minimum Staffing Level, but less than the Maximum Staffing Level, a pilot will be awarded such crew position according to his standing bid, provided that: i. The pilot’s currently awarded/assigned crew position is overstaffed

(i.e., Dynamic > Maximum); and ii. The pilot is senior to the most junior pilot (in the “TO” crew position)

not subject to assignment. c. For each crew position for which the Dynamic Staffing Level is greater

than or equal to the Maximum Staffing Level (i.e., overstaffed, or staffed to its limit, respectively), the following will apply: i. A pilot will be awarded as provided in Section 24.C.2.c.i.(b) below,

or awarded/assigned as provided in Section 24.C.2.c.i.(a) below, such crew position, provided that he is:

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(a) Subject to assignment from his currently awarded/assigned crew position, and senior to the most junior pilot (in the “TO” position) not subject to assignment; or

(b) Senior to a pilot in his currently awarded/assigned crew position who: (1) is imminently subject to assignment, and (2) has the seniority necessary to hold the (“TO”) crew position. A crew position awarded pursuant to Section 24.C.2.c.i.(b) shall be considered a Stand-In Bid Award

ii. A pilot who is subject to assignment, and who is not assigned in accordance with Sections 24.C.2.a., b., or c.i., will be assigned to a different crew position as follows: (a) If the pilot has not listed a crew position on his standing bid that

he can hold as provided in Section 24.C.2.c.i.(a) above, then he will be assigned to the U.S. based crew position with the highest pay rate that his seniority will allow him to hold, and in which he would have the highest relative seniority, from among those crew positions whose Dynamic Staffing Level is less than the Maximum Staffing Level.

(b) If the pilot cannot hold any crew position as provided in Section 24.C.2.c.ii.(a) or (b) above, he will be assigned to the most junior held, U.S.-based crew position regardless of the Maximum Staffing Level.

d. For any crew position that is less than the Minimum Staffing Level after the processing of the System Bid is complete, the Company may hire a pilot(s) up to the Minimum Staffing Level for that crew position, from that System Bid.

e. Assignment Right of Return (ARR) i. A pilot shall have a right of return to the crew position(s) from which

he was assigned, beginning upon his activation date into the crew position to which he was assigned, and ending 18 months thereafter.

ii. On each subsequent, open System Bid (following a pilot’s assignment) during the 18 month period, a pilot may exercise his ARR by listing the applicable crew position(s) in his standing bid above his currently awarded/assigned crew position, at 100%, until the pilot is no longer eligible for any ARR. (a) If the pilot does not exercise an ARR for which he is eligible, or

he is awarded a crew position which he listed higher in his

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standing bid than the applicable ARR crew position(s), the ARR is permanently forfeited.

(b) If a pilot elects to exercise an ARR, the crew position(s) from which he was previously assigned shall be considered in seniority order among only other pilots exercising an ARR to that same crew position, prior to the consideration of any pilots without ARR eligibility, and provided that the Dynamic Staffing Level in that crew position(s) is less than the Maximum Staffing Level. (1) If a System Bid results in a pilot being awarded an ARR crew

position, his ARR ends. (2) If the pilot is not awarded the crew position via the exercise

of an ARR, his remaining standing bid shall be considered as otherwise provided in Section 24.C.2. above.

[Writing Committee note: add an “ARR award” to the list in Section 6.E.9.; FDA LOA Para C.2.g.; and ANC LOA (no reimbursement obligations)]

3. FDA Crew Positions a. b. No pilot may be assigned involuntarily to fill an FDA vacancyan FDA

crew position unless the pilot includes the FDA crew position in his standing bid in accordance with Section 24.C.2.c.i.(a) above. If no pilot on the Master Seniority List expresses a preference by standing bid for an FDA vacancycrew position, the Company may hire a pilot to fill that vacancy.

c. The Company and the Association shall work together to jointly develop a vacancy bidding procedure to protect FDA pilots from being assigned to an FDA for more than one year beyond the minimum period required for him to receive a paid return move because no vacancy postings have occurred during the additional year. Such procedure shall not involve increased training cycles and shall recognize seniority. Such procedure may involve relocation expenses. Intent: The implementation side letter will contain a target date for scripting and implementing this procedure within 6 months or less after the date of signing.d. Certain FDAs may have maximum time limitations attached to the assignments. In such cases, the Company shall advise pilots of any known time limitations. A pilot who must leave the FDA based on this paragraph shall be handled as if he had bid to relieve an excess (from an FDA location).into it in accordance with Section 24.C.2.d. (above).

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b. e. All pilots awarded or assigned to an FDA are fully covered by all provisions of this Agreement.

6. Excess Crew Positions a. Pilots shall be excessed from crew positions in seniority order from

among those pilots who bid to relieve that excess. If an insufficient number of pilots bid to relieve a crew position posted as excess, pilots shall be excessed from that crew position in reverse seniority order. Except as provided in Section 24.C.6.b., a pilot who has been excessed, or who has bid to relieve an excess, shall be awarded another permanent crew position in accordance with his seniority and standing bid; provided, however, no pilot may be awarded or assigned a crew position at an FDA base that would cause an excess at that base.

b. If an excessed pilot cannot be awarded a crew position due to insufficient preferences on his standing bid, the Company shall assign him to a permanent crew position with a base in the United States with the highest pay rate to which he is entitled by his seniority.

c. If an excessed pilot is awarded or assigned a crew position that is also in excess, the number of pilots to be excessed from that crew position may be increased accordingly; provided, however, no pilot may be awarded or assigned a crew position at an FDA base that would cause an excess at that base.A pilot awarded from an FDA, who has not yet met his applicable FDA commitment period, shall receive a notional award and is not eligible to bid on training or base transfer activation (BTA) dates. The Company shall notify the pilot of an assigned training start or BTA date. Such date shall be at least 60 days after the date on which the Company’s notification was posted, and no later than 60 days beyond the fulfillment of the pilot’s minimum FDA commitment period. Exercise of this provision will not create any SDP entitlement for any pilot. Following notification, the date may not be changed without the consent of the pilot.

d. If an excessed pilot is denied an award to an FDA crew position, pursuant to Section 24.C.6.a. or C.6.c., (above), and he has insufficient seniority to be awarded or assigned another crew position with the same or higher rate of pay, he shall be entitled to passover pay.A pilot assigned from an FDA may elect to hold required training, or a base transfer activation (BTA), in abeyance until the fulfillment of his minimum FDA commitment period, if any, provided the FDA is not being closed prior to the end of such commitment period. This election shall be by written notification to the Crew Staffing department within 10 days following the publication of the applicable System Bid results, as described in Section 24.C.1. If the pilot elects to hold the training or BTA in abeyance, he will not be in the applicable pool for BTA or ITU bidding.

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The Company shall notify the pilot of an assigned training start or BTA date. Such date shall be at least 60 days after the date on which the Company’s notification was posted, and no later than 60 days beyond the fulfillment of the pilot’s minimum FDA commitment period. Exercise of this provision will not create any SDP entitlement, for any pilot. Following notification, the date may not be changed without the consent of the pilot.

4. [Reserved] 5. 7. If,A pilot released from his currently awarded or assigned crew position

in accordance with other provisions of this Agreement, a pilot is released or is removed from a permanent, temporary or FDA award or assignment prior to his activation in that crew position, the resulting vacancy shall be handled as follows: a. the Company may leave that vacancy unfilled; or b. the Company may post that vacancy for bidding on a subsequent

posting; or c. that vacancy may be awarded to the next most senior pilot indicating a

preference for that crew position on his standing bid as of the closing date of the original crew position posting. A pilot may decline that award if fewer than 7 days exist prior to the training commencement date for that position. If a pilot declines the award, the Company may offer the vacancy to the next most senior pilot indicating a preference for that crew position on his standing bid as of the closing date of the original crew position posting. Application of this paragraph shall not result in the payment of passover pay to any pilot.8. A pilot released from his award as described in Section 24.C.7., (above), shall remain in his current crew position. If histhe pilot’s current crew position is unavailable for reasons identified in Section 11.I.2.f. (Training), his crew position shall be determined as provided in Section 11.I.2.g.

D. Training/Activation Procedures 1. Except as provided in Section 24.D.2., D.3. and D.4., (below), required

training for a crew position shall be scheduled by system seniority, senior first, for that crew position.for pilots who are not eligible to participate in a monthly training bid (or BTA bid), System Bids shall be trained (e.g., training slot awards/assignments, denials, BTA awards/assignments) to each crew position’s conclusion, prior to commencing any training in such crew position based upon a subsequent System Bid. Training Bids for two or more separate System Bids may run concurrent for one bid period, as training for the crew position from one System Bid concludes, and the training for the same crew position from another System Bid commences.

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2. Passover Pay Due To Junior Pilot’s Early ActivationA pilot’s superseding award/assignment shall take precedence over his prior award/assignment, if any, and his training will correspond to that superseding award/assignment, unless his current crew position is subject to Fleet Retirement and/or Base Closure, in which case the Company may require him to activate first to his prior award/assignment, and thereafter to his superseding award/assignment as follows: a. In case of a junior pilot’s activation to a higher paying position out of

seniority order, every senior pilot who meets the following prerequisites shall be paid as if he had activated in that higher paying position (passover pay):If the pilot could have held the superseding crew position on the System Bid from which his prior award/assignment resulted, then he shall immediately be eligible for training slot awards/assignment from among currently available training slots.

i. the junior pilot and the senior pilot(s) hold an award for the same crew position; and

ii. the junior pilot’s award is from the same posting as the senior pilot’s award or from a subsequent posting; and

iii. the Company chooses to activate the junior pilot prior to the senior pilot(s) and the junior pilot’s activation delays the training and activation of the senior pilot(s).

b. When passover pay is due to a senior pilot as described in Section 24.D.2.a., (above), such passover pay shall be calculated as follows:If the pilot could not have held the superseding crew position on the System Bid from which his prior award/assignment resulted, then the award/assignment of his training slot for the superseding crew position shall be handled in accordance with Section 24.D.4. below.

i. beginning when the junior pilot is activated into the crew position that generated passover pay; and

ii. ending upon the earlier of: (a) the senior pilot’s activation into a new crew position; or (b) the senior pilot’s withdrawal from training for his new crew

position, with the approval of the Vice President, Flight Operations, or his designee, as provided in Section 11.I.2.e.; or

(c) the date that the senior pilot incurs a training cycle failure for the crew position that generated passover pay; or

(d) the senior pilot’s projected activation date from the original posting (i.e., into the crew position that generated passover pay), if he received a different, intervening award.

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c. Passover pay due in accordance with Section 24.D.2., (and Section 11.M.18.d.), shall be paid on a monthly basis, in accordance with Section 3.E. Repayment of passover pay from pilots who do not activate in the crew position that generated the passover pay shall be exclusively limited to situations in which the pilot:

3. Notwithstanding Section 24.D.2. above, a pilot who has already begun to train for his prior award/assignment must activate prior to being awarded/assigned to a training or BTA date for his superseding award.

4. Pilots who are awarded or assigned to a crew position on a System Bid and who require training shall be pooled in their (“TO”) crew position, and shall bid and be awarded training dates in their (“TO”) crew position in a Training Bid as follows: a. At least 18 days prior to the closing of the monthly bid for First Officers,

the Company shall electronically publish a Training Bid Package, which shall include at least the following: i. withdrew from training for the new crew position before such training

began, other than as provided in Section 11.I.2.e. or Section 24.E.3.; orTraining start dates for all known training slots eligible to be bid upon and beginning in the applicable bid period;

ii. withdrew from training for the new crew position after such training began, other than as provided in Section 11.I.2.e.; or

iii. in a subsequent posting, received a different intervening award to remain in his current position, or to a lower paying crew position than his current crew position; or

iv. incurs a training cycle failure.

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Examples:

Current Seat 1st Award Receiving Passover

Intervening Award

Repay Passover

Scenario 1 27FM 11FM 10FM NO

Scenario 2 27FM 11FM 27CM NO

Scenario 3 27FM 11FM 27FM YES

Scenario 4 27FM 11FM 10SM YES

Scenario 5 27FM 27CM 11FM NO

d. If a pilot entitled to passover pay in accordance with Section 24.D.2.,

(above), requires additional training, his passover pay shall not accrue during the delay in training caused by his performance.

Example: Prior to the opening of the monthly bid for the November bid period, the pilot shall be afforded the opportunity to bid for training that begins in the November bid period.

Pilots with seniority numbers 1-20 are awarded MEMxxxCap from the same posting. Pilot 18 is activated first, because he needs no training (already having been an xxx Captain at another domicile). Pilot 15 is trained first (due to Company needs in his current crew position) and activated before any pilot other than pilot 18. Pilots 1-17 don’t get passover pay when pilot 18 is activated because pilot 18’s activation did not delay their activations. However, pilot 15’s activation did delay their activation (because pilot 15 took the first training slot, thereby delaying their training), and so pilots 1-14 get passover pay beginning when pilot 15 is activated.

3. Training Due To Excess a. Pilots involuntarily excessed from a crew status shall be scheduled for

training in reverse seniority order. Application of this paragraph shall not trigger passover pay for the involuntarily excessed pilots.

ii. The number of training slots available for each of the four training types (i.e., Initial/Transition/Upgrade, 24-Requal, 24-Downbid, and 24-Differences) for each training start date;

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iii. A list of all eligible pilots who have yet to be awarded or assigned to a training slot, ordered by seniority number, including name, employee number, and minimum syllabus requirement; and

iv. A closing date for the Training Bid, which shall be at least 168 hours after its publication.

b. If the actions of a foreign government, law or regulation require the unanticipated or accelerated closure or partial closure of a base, the Company shall endeavor to train and activate those pilots with a minimum impact on the existing training and activation schedules of other pilots. However, pilots excessed from that base may be trained and/or activated into their new crew positions without generating passover pay to any pilot.Awards, Denials, and Assignments of training slots shall be as follows:

4. A pilot shall not begin training for an awarded or assigned crew position earlier than 7 days following the notice of bid award or assignment except by mutual agreement between the Company and the pilot. If all senior pilots awaiting training for a crew position based on the same bid award or assignment were offered and rejected early training and a more junior pilot accepts, no passover pay shall be paid to those senior pilots.

i. A pilot desiring to begin training in the upcoming bid period, on any of the available dates listed, shall submit a training bid; if no training bid is submitted, he is deemed to have not bid for any of those dates.

ii. Except as provided in Section 24.D.4.b.iii. through viii. below, pilots will be awarded to training slots in seniority order. Pilots requiring Initial, Transition, or Upgrade training may only bid for an I/T/U training slot (an I/T/U training slot is considered one training type). Pilots requiring only a 24-Requal may only bid for a 24-Requal training slot. Pilots requiring only a 24-Downbid may only bid for a 24-Downbid slot. Pilots requiring only 24-Differences training may only bid for a 24-Differences slot.

iii. A bid for a training slot that conflicts with a carryover trip, or carryover block of R-days, from the previous bid period, shall be deemed an invalid bid. A training slot conflicts with a carryover trip if there are less than 48 hours between the scheduled termination of the carryover trip (at the time of the Training Bid processing), and the beginning of the local base day (i.e., 0130 LBT) on which the training slot is scheduled to start. A training slot conflicts with a carryover block of R-days unless there are at least two local base days between the last scheduled carryover R-day, and the local base day on which the training slot is scheduled to start. This 48 hour buffer may not be waived.

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iv. Denial of Training Slots (a) The Company may choose to deny a pilot a training slot award,

or bypass a pilot when inversely assigning training slots, because of: (1) Staffing needs in the “FROM” crew position; (2) Regulated age considerations; (3) The Company’s desired syllabus type for a given training slot

does not satisfy the pilot’s minimum required training syllabus type; or

(4) New hire training requirements. (b) A pilot who is denied a training slot award shall be entitled to Slot

Denial Payment(s) (SDP) in accordance with Section 24.E. below.

(c) The denied training slot shall be awarded to the next eligible, junior pilot(s) who bid for that slot, except when he is also denied by operation of Section 24.D.4.b.iv.(a) above. If there are no remaining junior pilot(s), that training slot shall be considered unfilled (see below in 24.D.4.b.v.).

v. For any training slots left unfilled in a training start date, the Company may assign those training slots in inverse seniority order, beginning with the most junior eligible pilot including new hire pilots, if any. A pilot inversely assigned to a training slot shall have a 48 hour duty free buffer prior to the beginning of the pilot’s training start date. (a) Trips in conflict with the 48 hour duty free buffer shall be

removed. The pilot shall earn trip guarantee for the trip, and shall be eligible for substitution for that portion of the trip’s footprint not in conflict with the 48 hour duty free buffer.

(b) R-days in conflict with the 48 hour duty free buffer shall be removed, and the credit hour value of such R-days shall be credited toward the pilot’s leveling and RLG.

vi. [Reserved] vii. If a pilot is inversely assigned to a training slot as the result of

a more junior, eligible pilot being bypassed as provided in Section 24.D.2.b.iv. above, he shall be eligible for inverse SDP, in accordance with Section 24.E.8. below.

viii. 5. If the Company elects not to inversely award a training date/slot is , or an awarded/assigned to a pilot for ITU training and

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is vacated by that pilot, the following prioritized process shall apply to the reassignment of that training date/slot:a. the date/slot will be usedtraining slot becomes vacant, the Company may use the slot to qualify a pilot who is otherwise available to fly but for his lack of qualification, including but not limited to, pilots returning from leaves of absence, LTD, and pilots who have experienced training failures, if. If no such pilot exists, then; b. the date/slot may be used to train new hires and/or Flight Training Personnel (e.g., Flex instructors/PCAs, non-pilot instructors, etc.). Thereafter, if the slot is not filled in that manner, then;the Company may offer any remaining unused training slot(s) to pilots who do not have an awarded/assigned training slot (in seniority order among the pilots who bid for training that month, then among all remaining pilots who do not have an awarded/assigned training slot).

ix. The Training Bid awards, denials, and assignments shall be published no later than the opening of the monthly bid.

c. Pre-Bid Period Package Training Bid If the Company desires to begin training prior to the Training Bid as provided in Section 24.D.2.a., the Company shall provide the ability for pilots to bid and be awarded training dates as follows: i. The Company shall announce any Pre-Bid Period Package Training

Bid via FCIF. The FCIF shall include: (a) Training start dates that shall not begin less than 14 days after

the close of the System Bid; (b) The number of training slots available for each of the four training

types (i.e., Initial/Transition/Upgrade, 24-Requal, 24-Downbid, and Differences), for each training start date;

(c) A list of all pilots who have yet to be awarded/assigned a training start date, ordered by seniority number and including name, employee number, and minimum syllabus requirement; and

(d) A closing date for the Pre-Bid Period Package Training Bid, which shall be no less than 5 days after the date on which the FCIF is issued.

ii. The awarding (and any denial and/or assignment) of Pre-Bid Period Package training slots shall be the same as provided in Section 24.D.4.b.

5. Award/Assignment of Base Transfer Activation (BTA) Dates Pilots who are awarded or assigned to a crew position on a System Bid but do not require training shall be pooled in their “TO” crew position.

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a. Separate and apart from the Training Bid, the Company shall also conduct a single BTA bid (i.e., not monthly). Such bid will include a list of all available BTA dates applicable to the most recent System Bid’s awards/assignments, with the awarded/assigned BTA dates handled in accordance with Section 25.C.6.

b. Among pilots who submit a BTA bid with a sufficient number of choices, for each “TO” crew position, those will be awarded a BTA date in system seniority order.

c. Among pilots who submit a BTA bid with an insufficient number of choices, for each “TO” crew position, as well as those pilots who submit no BTA bid, they will be assigned BTA dates as follows: i. For pilots who were awarded the crew position to which their base

transfer applies, BTA dates will be assigned in seniority order, beginning with the first available BTA date from among those BTA dates remaining unawarded via the BTA bid.

ii. For pilots who were assigned the crew position to which their base transfer applies, BTA dates will be assigned in inverse seniority order, beginning with the first available BTA date from among those BTA dates remaining unawarded via:

(a) the BTA bid, and; (b) the assignment of seniority order BTA dates, as provided in

24.D.4.c.i. above. 6. Training Slot or BTA Date Award/Assignments When Returning from Pay

Only Sick Training for a pilot who received a crew position award/assignment (whether notional or actual) on a System Bid, and who is returning from a pay only sick status, shall be handled as follows: a. If the System Bid on which the pilot received his crew position

award/assignment has been trained to completion, the pilot shall be assigned to start training within 60 days of his return from sick status.

b. If the System Bid on which the pilot received his crew position award/assignment has not been trained to completion and if he does not require full requalification training (i.e., training with a footprint similar to ITU) or 24-requal in his current crew position upon his return from sick status, the pilot shall be eligible to bid for and/or be assigned to training dates (for his awarded/assigned crew position).

c. If the System Bid on which the pilot received his crew position award/assignment has not been trained to completion and if he requires full requalification training (i.e., training with a footprint similar to ITU) in

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his current crew position upon his return from sick status, the pilot shall be assigned to start training for his awarded/assigned crew position within 60 days of his return from sick status.

d. If the System Bid on which the pilot received his crew position award/assignment has not been trained to completion and if the pilot requires 24-requal training in his current crew position upon his return from sick status: i. the pilot will be assigned to start training for his awarded/assigned

crew position within 60 days of his return from sick status if a junior pilot in the case of a crew position award (or a senior pilot in the case of a crew position assignment) has been awarded/assigned a training date.

ii. the pilot will be assigned to start 24-requal training within 60 days of his return from sick status if a junior pilot in the case of a crew position award (or a senior pilot in the case of a crew position assignment) has not been awarded/assigned a training date. Such pilot shall be eligible to bid for and/or be assigned to training dates (for his awarded/assigned crew position) following completion of his 24-requal training.

e. If the pilot’s crew position award/assignment requires a BTA but the pilot requires requalification training in his current crew position, he will be assigned to start requalification training within 60 days of his return from sick status. His BTA shall be effective on the first day of the first full bid period following the completion of requalification training. If the pilot’s crew position award/assignment requires a BTA but the pilot does not require requalification training in his current crew position, his BTA shall be effective on the first day of the first full bid period following his return from sick status.

7. Denial of Training Slots Due to Regulated Age a. The Company may deny a training slot award to a pilot who is within 24

months of the regulated age, as of the training start date associated with the slot he would otherwise have been awarded.

b. The Company may bypass a pilot for a training slot assignment if that pilot is within 24 months of the regulated age, as of the training start date associated with the slot he would otherwise have been assigned.

c. if the date/slot is to be filled, it shall be filled by advancing the pilots on the training list in training slot order and in seniority order within a given training slot, provided that this meets the notice requirements of Section 11.D.; No later than the close of the applicable Training Bid, the Company shall post a notification to any pilot who is denied a training

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slot award due to regulated age. The denied pilot shall not appear on subsequent Training Bids under Section 24.D.4.a.iii. or D.4.c.i.(c).

d. if the application of steps a-c does not result in filling the slot, and the slot is to be filled, then the slot will be offered to pilots, from the same crew position posting, who will be asked to waive the notice requirements of Section 11.D.3.;A pilot denied a training slot award in accordance with Section 24.D.6.a. above, and whose crew position award was not the result of a down/lateral bid, will be eligible for Regulated Age SDP as provided in Section 24.E.3. below.

e. the application of Section 24.D.5.b., and/or d. will not result in payment of passover pay to any pilot. Application of Section 24.D.5.a., or 24.D.5.c. will not result in Passover pay to any pilot, unless:If the regulated age is raised after a pilot has been denied a training slot in accordance with Section 24.D.6.a. above, and as a result his age is no longer within 24 months of the new regulated age (measured using the same standard as in Section 24.D.6.a. above), he shall elect to either: i. the Company inserts a pilot out of seniority order under Section

24.D.5.a. or the Company’s application of Section 24.D.5.c. changes the relative order of training judged at the time Section 24.D.5. is applied, andForgo the award, in which case his eligibility for Regulated Age SDP shall cease immediately (i.e., no SDP will be paid to the pilot after the date on which he makes this election); or

ii. passover pay is authorized underEnter into the Training Bid procedures as provided in Section 24.D.2.1.a. and b. above.

f. Once a pilot is eligible for Regulated Age SDP based on the highest captain hourly rate, he will not, on subsequent System Bids, be awarded any crew positions that are also restricted by regulated age, except as provided in Section 24.D.7.g. below.

g. A pilot who is eligible for Regulated Age SDP shall participate in subsequent System Bids if the Maximum Staffing Level in his currently awarded crew position is lower than its Current Staffing Level. In such case, the pilot may be awarded or assigned a new crew position by operation of Section 24.C. That pilot may become eligible for Regulated Age SDP (for his newly awarded or assigned crew position) by operation of Section 24.D.6.

h. A pilot who is eligible for Regulated Age SDP may be assigned to a training date for the crew position upon which his Regulated Age SDP is based, if he can no longer hold his current crew position.

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E. Slot Denial Payment (SDP) 1. If a pilot is denied a training slot as provided in Section 24.D.4.b.iv.(a) or

D.4.c.ii., he will be entitled to a Slot Denial Payment (SDP). The SDP shall correspond to the bid period containing the denied training slot award, and each subsequent bid period, except as provided below.

2. A pilot who is denied a training slot, but who is awarded or assigned to another training slot beginning in the same bid period as that in which the denied slot begins, shall be entitled to only one SDP (i.e., SDP does not continue into any subsequent bid periods).

3. A pilot who is denied a training slot award pursuant to Section 24.D.6.d. (Regulated Age) above, shall be entitled to SDP in accordance with Section 24.E.1. above. The pilot shall continue to receive the applicable SDP through the month in which he starts training, resulting from a subsequent System Bid, in which he was not denied a training slot award due to his regulated age.

4. In subsequent bid period(s), if a pilot (except for a pilot described by Section 24.E.2. or 3., above): a. does not bid for a training slot to begin ITU training during that bid

period(s), and he would have been awarded a training slot, he shall not be entitled to an SDP for that bid period(s);

b. is not eligible (as per 24.D.4.a.iii.) to bid for a training slot to begin ITU training during that bid period(s), he shall not be entitled to an SDP for that bid period(s).

5. The SDP shall be paid in the monthly payroll cycle as described in Section 3.E.1.

6. Pilots may exchange training dates with another pilot who received the award from the same posting or a subsequent posting, with flight management approval, provided that every pilot, with an award from that posting or a subsequent posting, who would be entitled to passover pay if the switch were at Company request, consents in writing not to block the training exchange, as no passover pay would be generated with the approval or denial of said exchange, since the swap request is being made by a pilot, not the Company and does not otherwise satisfy the requirements of Section 24.D.2.a.Only one pilot will be eligible for continuous SDP, per training slot. However, there may also be a single SDP associated with that same training slot, as provided in Section 24.E.2. above.

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7. Slot Denial Payment (SDP) shall be paid in the following dollar amounts:

Current Crew Position Denied Training Date Award

Compensation

NB FO

WB FO $3,000

NB CA $6,000

WB CA $9,000

WB FO

NB CA $3,500

WB CA $6,500

NB CA WB CA $3,000

Lateral and “Single”* Any $750 * ”Single” refers to 24.E.2., i.e. not the “continuous” SDP.

8. Inverse SDP shall be paid once (i.e., is not a “continuing” payment), in the following dollar amounts:

Current Crew Position Inversed to Training For:

Compensation

WB FO

NB FO

$9,000

NB CA $18,000

WB CA $27,000

NB CA WB FO

$10,500

WB CA $19,500

WB CA NB CA $9,000

Any Lateral or “Up” $2,250 Chart values in Paragraphs 24.E.7. and 8. (other than “Lateral or Up” or “Singles”) increase

commensurate with hourly rate increases, beginning with the first hourly rate increase beyond DOS.

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9. Except as provided in 24.E.3. and 4. above, SDP shall cease on the earlier of a pilot’s: a. Training commencement month; b. Award/Assignment to a different crew position than that from which the

SDP resulted; c. Withdrawal from training; or d. Unavailability for his subsequently awarded training slot.

10. 7. A pilotRepayment of SDP and Inverse SDP, from pilots who do not activate in the crew position for which the SDP or Inverse SDP was paid, shall not be entitled to passover pay when he is scheduled for training and activationbe exclusively limited to withdrawals from training (other than withdrawals accomplished in accordance with Section 24.D. (this paragraph), and his actual activation is delayed due to his performance in or his unavailability for training11.I.2.e.).

F. E. Other Crew Position Award Procedures

1. Down/Lateral Bid Freezes and Restrictions 1. a. Down/Lateral Bid Award Restrictions

A down/lateral bid is an award of a different crew status that is compensated at an hourly rate less than or equal to the hourly rate for the pilot’s current crew status.pilot may receive a crew position award, based on a down/lateral bid, provided that he:

a. Is bidding to an FDA; b. Down/Lateral Bid RestrictionIs returning from an FDA after fulfilling

his commitment period;

Unless waived by the Vice President, Flight Operations, or his designee, a pilot may not receive a permanent vacancy award based on a down/lateral bid unless he has been in his current crew status for at least 18 months. c. Down/Lateral Bid FreezeIs bidding to a new aircraft within the first

24 months following the closing date of the first System Bid that included awards/assignments in that new aircraft;

A pilot who is activated in a crew status that requires ITU training based on a down/lateral bid shall be frozen in that crew status for 24 months, commencing on his actual activation date. A pilot is not eligible for a

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permanent crew position award requiring ITU training with a projected training date during that freeze period except under the following conditions: i. the pilot was excessed or down/lateral bid to relieve an excess; or ii. the pilot down bid because of legal restrictions. d. Administration of Down/Lateral Bid Restrictions and FreezesCan no

longer hold his crew status due to legal restrictions; or

Notwithstanding the provisions of Section 24.E.1.b. and E.1.c., (above): e. Has been activated in his current crew status for at least (unless

waived by VP): i. A pilot subject to a down/lateral bid freeze or restriction is

eligible for an award or assignment of his crew status at a new base.24 months, if this will be his first awarded crew position based on a down/lateral bid;

ii. A pilot who down bid in his aircraft to a lower crew seat is eligible for an award of a crew position in a higher crew seat in the same aircraft type during the time of his freeze provided he advises the Crew Staffing Department of his intentions, in writing, at least 7 days prior to the close the bid.36 months, if this will be his second or third awarded crew position based on a down/lateral bid;

iii. A pilot who is subject to a down/lateral bid restriction or a crew status freeze in accordance with provisions of this Section shall be released from that restriction or freeze if he is involuntarily excessed or furloughed from his crew status or can no longer hold that crew status due to legal restrictions. If a pilot is ineligible for passover pay as a result of a crew status freeze, and that freeze is lifted, he may become eligible for passover pay based on his subsequent bid award.60 months, if this will be his fourth or subsequently awarded crew position based on a down/lateral bid.

iv. A pilot who is subject to a crew status freeze pursuant to provisions of this Section may receive a bid award and be assigned a projected training date subsequent to the projected training date he otherwise would have been assigned in accordance with Section 24.D., provided the assigned training date is beyond the freeze period. A pilot shall not be entitled to an award if the required training cannot

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be accomplished within the time period of the originally scheduled training dates associated with that posting. A pilot so assigned shall not be eligible for passover pay due to postponement of his training in accordance with this paragraph.

v. A pilot who is subject to a crew status freeze in accordance with this Section may be assigned or awarded another crew status that he is otherwise ineligible to hold due to the freeze, only if that other crew status is the only available crew status the pilot could hold.

[Application Note: At the date of implementation of the new System Bid system, pilots will be considered to have zero DLBA awards (i.e, the first DLBA will be measured at the close of the first “new” System Bid).]

2. For the purposes of Section 24.F.1.e. above, previous down/lateral awards pursuant to Sections 24.F.1.a., b., or d. shall not be considered.

3. 2. Bidding Restrictions on Subsequent PostingsSystem Bids During the time a pilot is in ITU training, hethe pilot shall not be awarded a crew status that he could have been awarded on the postingSystem Bid containing the crew position for which he presently is in training, or on a subsequent postingSystem Bid that closed prior to the start of his training.

3. If a pilot is within 2 years of the regulated age, he may be frozen in his current crew status. A pilot so restricted shall be entitled to passover pay beginning on the date a junior pilot is activated (from the same or a subsequent posting) in a crew status the more senior pilot is restricted from holding, unless the junior pilot was activated before the senior pilot due to a base transfer or training swap. Such passover pay shall be paid on a monthly basis. Should the regulated age be altered during the term of this Agreement, the Company shall have the option of releasing the freeze for any pilot receiving passover pay under this paragraph. If the pilot is released from the freeze imposed due to the regulated age, and the pilot elects not to upgrade, there shall be no requirement to repay passover pay earned prior to the date of election. Repayment of passover pay for the pilot who elects to upgrade, but subsequently does not activate into the crew position that generated passover pay, shall be governed by Section 24.D.2.c., but only as to the passover pay received for service(s) following the date of release from the freeze.

4. Cancellation of Awards[Reserved] a. The Company may cancel an award/assignment of a crew position in

reverse seniority order provided it does so at least 30 days prior to the pilot's scheduled training date. A pilot whose award/assignment is canceled may either remain in his current crew position, or exercise his seniority for an award or a vacancy posting that occurred between the

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date his crew position was awarded and the date it was canceled. He shall be eligible to receive passover pay if: i. a junior pilot is activated in a crew position pursuant to the same or

any subsequent posting and the rate of pay for that crew position is higher than the rate of pay for the current crew position of the pilot whose award has been canceled; and

ii. the standing bid of the pilot whose award has been canceled included the crew position in which the junior pilot has been activated as a preference higher than his current crew position.

b. A pilot’s entitlement to passover pay pursuant to Section 24.E.4.a.(above), shall continue until the earlier of: i. the affected pilot’s subsequent activation in a crew position with a

rate of pay equal to or higher than his passover rate of pay; or ii. the closing date of a subsequent posting meeting the following

criteria: (a) the posting contains a permanent vacancy in the crew position

with respect to which the affected pilot is receiving passover pay; and

(b) the pilot did not have that crew position on his standing bid; and (c) the pilot would have been awarded that crew position had he

included that crew position on his standing bid. 5. [Reserved] 6. 5. New Hire Crew Positions

a. As part of the hiring process, the Company may pre-assign initial crew positions for individual new hire pilots who accept an FDA crew position. During his initial new hire training, each pilot not pre-assigned a crew position shall be presented with appropriate information regarding crew position vacanciespositions available for bid. AThe initial crew position, for a new hire pilot’s not pre-assigned an initial crew position, shall be determined by his standing bid and seniority.

b. If the Company hires fewer pilots than the number of unfilled vacancies available to be filled by new hiresare needed to fill all crew positions up to the Minimum Staffing Level (see Section 24.B.1.b.i.(b)), the Company may designate the crew positions to be made available for bidding by only the affected new hire pilots in accordance with Section 24.EF.5.6.a. (above).

c. If the Company subsequently hires additional pilots to fill new hire crew positions remaining unfilled from a postingSystem Bid, the remaining

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unfilled crew positions shall first be available for award to the pilots previously hired to fill positions from that postingSystem Bid, based upon their seniority and initial standing bid; provided, however, that this paragraph shall not permit a new hire pilot to change his initial crew status.

d. If, through the application of Section 24.EF.5.6.c. (above), a junior pilot is activated into a higher-paying crew position for which a senior pilot(s) did not have the opportunity to bid, the eligible senior pilot(s) shall be paid passover pay in the same manner described in Section 24.D.2.b., D.2.c., and D.2.deligible for New Hire Junior Activation Compensation.

e. If a new hire pilot changes his initial crew position pursuant to Section 24.EF.5.6.c. (above), the Company shall activate him at his new domicilebase consistent with the Company's staffing requirements.

f. Except as provided in Section 6.E.1.c., a new hire pilot shall not become entitled to a relocation package pursuant to Section 6 as a result of the application of this paragraph.

7. New Hire Junior Activation Compensation due in accordance with Section 24.F.6.d. shall (for the senior pilot): a. Be equal to the hourly rate of pay for the crew position in which a junior

pilot is activated; and b. Begin on the date that a junior pilot, from the same or subsequent

System Bid, activates into the crew position with the higher hourly rate of pay; and

c. Continue until the earlier of: i. His activation into a new, subsequently awarded or assigned crew

position with a rate of pay the same or higher than his New Hire Junior Activation Compensation;

ii. His withdrawal or removal from training for a subsequently awarded or assigned crew position with a rate of pay the same or higher than his New Hire Junior Activation Compensation;

iii. The date he incurs a training cycle failure for a subsequently awarded or assigned crew position with a rate of pay the same or higher than his New Hire Junior Activation Compensation;

iv. The date as of which all available pilots have completed training (i.e., activated) for his new, subsequently awarded or assigned crew position, from the same System Bid, with a rate of pay the same or higher than his New Hire Junior Activation Compensation;

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v. The date as of which there are no longer any junior pilots activated in the crew position that generated his New Hire Junior Activation Compensation eligibility;

vi. The date the last junior pilot(s) would no longer have been activated in the crew position that generated the pilot’s New Hire Junior Activation Compensation eligibility, but for the junior pilot’s unavailability (e.g., owing to leave of absence, sick leave), if such junior pilot was awarded or assigned another crew position on a subsequent System Bid. That date shall be the date on which the last available, junior pilot is no longer activated in the crew position that generated the Junior Activation Compensation eligibility;

vii. The date the next most senior available pilot (compared with the junior pilot identified in Section 24.F.7.c.vi. above) is no longer activated in, or would no longer have been (if the standard in 24.F.7.c.vi. is applied) activated in, the crew position that generated the New Hire Junior Activation Compensation, if the junior pilot was not awarded a crew position on that subsequent System Bid (e.g., the junior pilot was on leave when the System Bid closed).

viii. The pilot’s award, on a subsequent System Bid, to another crew position with the same or lower rate of pay than the pilot’s currently awarded crew position; or

ix. The pilot’s failure to bid, at 100%, a crew position that the pilot could have been awarded, with a rate of pay the same or higher than the New Hire Junior Activation Compensation.

8. Repayment to the Company of New Hire Junior Activation Compensation paid in accordance with Section 24.F.6.d. above, from pilots who do not activate in the crew position that generated the New Hire Junior Activation Compensation, shall be exclusively limited to situations in which the pilot: a. withdrew from training, before or after such training began, for a

subsequently awarded or assigned crew position with a rate of pay the same or higher than his New Hire Junior Activation Compensation, other than as provided in Section 11.I.2.e. or Section 24.E.3.; or

b. [Reserved] c. in a subsequent System Bid, received an award to a crew position with

an hourly rate of pay lower than his currently awarded crew position; or d. incurs a training cycle failure. e. If a pilot entitled to New Hire Junior Activation Compensation in

accordance with Section 24.F.6.d. above requires additional training, his New Hire Junior Activation Compensation shall not accrue during the delay in training caused by his performance.

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9. 6. A pilot who has a legal restriction that prohibits him from flying in his current crew status shall be accommodated in another crew status, if any, from which he is not legally restricted consistent with his seniority and standing bid.

G. Ongoing Implementation Measures 1. The parties recognize that the matters governed by Section 24 are

complicated and that this new Section 24 requires significant changes to existing systems and practices. As a result, the parties foresee that flexibility will be required in order to ensure the smoothest possible transition to the new Section 24 rules. To that end, during the Transition Period (as defined below), measures facilitating the implementation, operation, and/or administration of the provisions in Section 24 may be implemented if agreed upon in writing by the Vice President, Labor Relations and the Association’s MEC Chairman.

2. The Transition Period shall begin on the date the first System Bid conducted pursuant to Section 24.B. is posted and shall end 60 days after the second System Bid conducted pursuant to Section 24.B. has been trained to completion. In no event, however, shall the Transition Period be less than 18 months or greater than 30 months in duration.

[Need: Discussion/agreement re: automation requirements]

[Captain-qualified activation of actual (non-notional) awarded instructors/check airmen shall be as follows: Instructor/check airman bids for ITU training slots along with all others awarded/assigned to the crew status. For a bid period in which the instructor/check airman would have begun training, he will be removed from the ITU training slot, and the training bid award will be re-run. He will then be activated on the first day of the bid period following that bid period in which his training would have begun, had he required it.] [Address transition from existing P/O pay paradigm to SDP paradigm in Implementation LOA

o Company and ALPA to agree to DOI & transition of new 24 o Current “vanilla” passover will cease when pilot activates into new

crew position, or another, existing passover-related mechanism takes effect (e.g., withdrawal from training, settlement agreements, etc.) as the parties will agree on harmonization with new System Bid system

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o No later than [DOS+1 month] pilots currently on FEPP list shall make a one-time election to either:

Affirmatively opt out of future FEPP payments (effective on next payroll cycle) without further obligation to “protect” FEPP eligible bid or repayment obligation; or

Continue FEPP participation. “Default selection”]

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Letter—Pilots on Leave of Absence without ATP Certificates

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[DATE]

Captain Charles W. Dyer, Chairman FedEx Master Executive Council Air Line Pilots Association, International 1770 Kirby Parkway, Suite 300 Memphis, TN 38138 Re: Pilots on Leave of Absence without ATP Certificates Captain Dyer: During our negotiations for a new collective bargaining agreement, the parties agreed upon new language in various sections of the contract that addressed the Company’s compliance with the Airline Safety and Federal Aviation Administration Extension Act of 2010 (P.L. 11-216), which as you know imposed a requirement that all flight deck crewmembers possess an Airline Transport Pilot (ATP) Certificate prior to conducting operations covered by Part 121 of the FARs. During those negotiations, the parties discussed the Company’s treatment of active pilots who did not possess an ATP on the effective date of the new law. The Company assisted those pilots in obtaining their ATP by providing the necessary training and certification events during those pilots’ regularly scheduled recurrent training or continuing qualification events. Because of this process, all active pilots currently possess an ATP. The parties also discussed how the Company would treat inactive pilots who do not have an ATP when those pilots are otherwise capable of returning to active service. Based on Company records, there are five (5) such pilots: [list names/employee numbers]. Notwithstanding any provisions of the contract to the contrary (e.g., Section 11.B.1.a., Section 13.A.6., and Section 24.A.3.), if and when these pilots return from their leave of absence, the Company has agreed to assist these pilots in obtaining their ATP by providing the necessary training and certification events during those pilots’ requalification or IT/U training, whichever is appropriate for each pilot’s situation upon his return from leave of absence.

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Letter—Pilots on Leave of Absence without ATP Certificates

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If this reflects your understanding, please indicate your agreement by signing below. Sincerely, FEDERAL EXPRESS CORPORATION John D. Maxwell Vice President, Flight Operations Accepted and agreed to on behalf of the Air Line Pilots Association:


Dated this _____ day of ______, _____

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SECTION 25 SCHEDULING Definitions: FUNCTION A subroutine in pairing generation software designed to accomplish a particular task. Some functions have variable settings that allow the user to adjust the influence they have on a particular pairing solution.

Example: “Cie global soft credit max per position” is a function designed to control the amount of flying assigned to a particular base. It is colloquially referred to as the “base constraint” function.

PARAMETER For purposes of this subsection, a parameter is a rule, used in the SIG process and identified as a parameter, regarding the construction of pairings or lines.

Example: “Maximum block per duty period” is a domestic parameter. Its current value is 7:35.

REQUESTS/PREFERENCES Requests and preferences (e.g., for trips to be dropped to satisfy minimum day off protection) shall be processed in the sequence provided in the Agreement, and shall be granted or denied based on objective criteria which may be specific to the particular request. SETTING The particular value at which a variable function is fixed for a given solution.

Example: For February 2006, the base constraint setting for ANC MD-11 CAP was 217 CH/day.

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STANDBY SEQUENCE A standby sequence is defined when a pilot’’s trip is awarded/assigned. A standby sequence is the period of time starting at the beginning of a standby, and ending at the scheduled departure of the next scheduled flight activity (revenue flight or deadhead), in the trip, as awarded/assigned. STANDING MONTHLY SECONDARY LINE PREFERENCES A set of preferences defined by a pilot, for use in constructing his secondary line, should he be awarded one, in a bid period for which he has not entered specific secondary line inputs or preferences. DEFAULT SECONDARY LINE PREFERENCES A set of preferences predetermined by the SIG, for a given Crew Position, which will be used when a pilot has entered neither Standing Monthly Secondary Line Preferences, nor specific preferences. SUBMISSIONS

1. Except as provided in 2., below, submissions (e.g., for bid line adjustments) shall be processed in the order specified in the Agreement and shall be granted or denied based on uniformly applied, objective criteria, material aspects of which. The Company shall be supplied toconsult with the Association in writing prior to implementation of any new objective criteria, including any subsequent changes, and will supply material aspects in writing.

2. No bid line adjustment submission shall be unreasonably denied; however, with the approval of the Vice President, Flight Operations or the System Chief Pilot, a bid line adjustment submission may be denied for reasons other than those under item 1. In such cases, the denial shall be reported to the Association within 3 days and shall specify the reasons for the denial.

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A. General 1. A bid period shall be either 4-weeks (28 days) or, 5-weeks (35 days), or 6-

weeks (42 days) in duration, as determined by the Company and shall be uniform system wide. Bid periods shall begin on Sunday or Monday.

2. The Company shall not change the start time of any local base day, except EUR, to any start time other than 0130 LBT without the consent of the Association. The Company shall not change the start time of the local EUR base day to any start time other than 0215 LBT without the consent of the Association.

3. All trips known and confirmed at the time a bid period package is published shall appear in the bid period package. To the extent reasonably practical, such trips shall be built into regular lines.

4. Unless waived by the SIG, at least 80% of all known reserve days, by crew position, shall be built into reserve lines published in the bid period package; however, all known R-24 blocks shall be built into reserve lines published in the bid period package. Remaining reserve days will be made available as reserve blocks, in the View/Add window, Secondary Working Window (SWW), and beyond.

5. 4. Days off are local base days scheduled free from duty at a pilot's base. 6. 5. Trips published in a bid period package that subsequently become

available as open time shall remain in the same base during the bid period. Flying not published in a bid period package, including newly constructed trips as described in Section 25.G.5. (certain open time assignments), may be assigned by the Company to any base.

7. 6. A pilot shall be provided access to the Company's computer systems and data in order to view: a. all bid awards and trips. b. information related to open time as follows:

i. in crew positions where the Company is using automated systems for trip assignment and trading (currently DReAM and the automated trip trade system), and such systems are functioning, all open time in the current bid period (and in the next bid period after open time is released) shall be visible in “real time,” except during periods when: (a) the daily assignment process is taking place;. (b) the system(s) is paused to allow manual processing functions; or (c) the system(s) affecting open time administration is not running

due to system maintenance, upgrades, etc.

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ii. in crew positions wherefor which such automated system(s) is not functioning, trip pairings more than 40.5 hours prior to showtime shall be visible to pilots accessing the open time interface.

iii. a trip(s) may be frozen to allow assignment by CRS. When a trip is frozen, it will be visible, but displayed in a manner indicating that it is available only to CRS.

c. the pilot’’s own work schedule and pay status.; d. The instances in which reserve coverage exceeds or meets forecast

reserve demand (i.e., “green” or “yellow” status) for the pilot’s crew position, by date, duration, and reserve period (RP);

e. d. Other reserve information as provided in Section 25.A.7. f. e. another pilot’’s schedule, as long as the other pilot has opened his

schedule to access. 8. 7. The Association, the Company and the pilots assigned to reserve status

agree that allowing reserve pilots to review more information about their reserve leveling position, their relative standing and utilization of other pilots on reserve in that aircraft type, on as practical a real time basis as is possible, is beneficial to all parties. More specifically, allowing pilots to access additional reserve information provides a reserve with more complete information about his “true” availability and allows the pilot to better prepare for transitioning for any reserve duty assignments. For the Company, allowing a pilot to see his position and relative standing provides the Company with increased assurance concerning the availability of those pilots standing reserve. To that end, reserve pilots shall be provided access to the Company’s computer system to view other pilots in the same crew position and reserve period (e.g., MEM MD11, F/O, RP-A):Company’s computer system shall allow pilots to view: a. the list of pilots arranged in leveling order by reserve period. b. the available remaining block days of reserve for each pilot on the list. c. the amount of leveling hours of each listed pilot. d. the accrued RLG hours for the monthbid period for each pilot. e. the current activity or general availability/unavailability status of other

reserves. f. the assignment of utilized reserves. g. special qualifications or restrictions attendant to a particular reserve. h. the names of pilots on the reserve list unless the pilot has not opened

his schedule for viewing by other pilots.

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8. The Company shall provide an E-MAIL/internet bulletin board for a pilot to list trips he wants to trade or drop, and vacation periods he wants to trade. The pilot may list and update the trip(s), SCH and date(s) of operation of the trip(s) or vacation period(s) he wishes to drop or trade, and, if appropriate, a method for contacting him. The Company shall delete out of date information periodically.

9. [Reserved] 10. 9. A trip will not be scheduled with any crew composition changes (i.e.,

basic, or augmented) during any duty period. An operational change of crew composition during a duty period shall not extend a pilot's block hour or on-duty limitations.

B. Bid Period Package 1. The Company shall publish (electronically or otherwise, as provided in

Section 25.B.3.) a bid period package for each base and, as necessary, a bid period supplemental package. At least one of these packages shall contain, at a minimum, the following information, current as of the publication date: a. Trips that are known and confirmed as of the date the bid period

package is printedpublished; b. A base seniority list for the bid period package; c. A list of vacations, with names and dates, scheduled for the current and

the first week of the next bid period; the entire next month’’s vacation schedule shall be available electronically.;

d. A list of pilots dueeligible to bid for recurrent training; e. Dates and times available for recurrent training; f. VIPS telephone information (if changed from most recent VIPS guide); g. Pilots bidding for pay only; h. Jumpseats blocked for use, at pilot’s option, in lieu of deadhead; h. i. Hotel, travel, layover and communications updates; i. j. Sweep aircraft information; j. k. SIBA/SBA bidding information; k. l. A calendar containing bidding dates and times for the current and

subsequent bid period; l. m. Standard miscellaneous forms pertaining to bidding and related

matters;

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m. n. Scheduled field (airport and hotel) standby, and base (airport and hotel) standby, if applicable;

n. o. Average days off for lines in that bid period; o. A list of Captains and First Officers who have not yet consolidated in

their current crew status; p. Identification of trips in the top 50% of that bid period package’s trips, in

terms of scheduled block hours, for the purpose of Section 25.C.10.a. below;

q. ITU Training Slots. 2. The bid period package shall list the following line bidding choices:

a. Regular lines; b. Secondary lines; and c. Reserve lines.

3. Bid period packages shall be published between 2023 and 25 days prior to the beginning of the bid period. The bid period package maywill be published by electronic means only. Thereafter, aA limited number of printed bid period packages shall also be distributed and available in bases and the following locations AFW, CAN, CDG, EWR, IND, OAK and other locations by agreement of the Company and the Association.

4. If, due to additional pilots activating in a position after the bid period package is distributed but before the bid is awarded, an insufficient number of lines have been published, the required number of secondary lines shall be increased to accommodate the additional pilots.

C. Bidding Procedures (Monthly)

1. Bid(s) shall be entered through VIPS. If access to VIPS is not available, a pilot may enter his bids by other Company approved means, in writing if possible.

2. A pilot may complete a standing monthly bid in a format designated by the Company. A pilot may update his standing monthly bid at any time. If a pilot does not enter a bid for the bid period, or enters an insufficient number of bid choices, he shall be awarded a line based on his standing monthly bid.

3. If a pilot does not bid, fails to enter a sufficient number of bid choices, and either does not have a standing monthly bid or has a standing monthly bid with an insufficient number of choices, he shall be awarded a line by

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seniority order, and by numerical order of remaining lines, lowest number first after all pilots entering bids have been processed.

4. Bidding for Captains shall close 75 days after distribution of the bid period package, unless the bid package is distributed late due to unforeseen circumstances, in which case the Captains’’ bids shall close 64 days after distribution of the bid package. In any event, Captains’’ bids shall close between 1821 and 1417 days prior to the commencement of the new bid period. Bidding for First Officer and Second Officer awards shall close 24 hours following the close of the bidding for Captain awards. Bids shall be awarded in order of seniority within each crew position based upon bids received as of 1200 CT on such date.

5. FAR Experience Bidding Limitations a. A First Officer shall not be awarded a regular line which, at the time of

bid awards, would result in a violation of the FAR related to experience requirements (e.g. FAR 121.434, regarding minimum experience for Captain/First Officer combinations). In such case, the First Officer shall be awarded his next choice for which he is legal.

b. If any First Officer regular line cannot be awarded through the normal bid award process due to FAR experience requirements, such line shall be assigned to the most junior First Officer who is legal for the assignment.

c. If a pilot is awarded a regular line that would result in a violation of any FAR related to flight time limitations (e.g., FAR 121.471, 121.483, 121.485, 121.487), and there are multiple trips from which to choose which, if removed, would resolve the FAR conflict, the trip with the lowest CH value shall be dropped as a phase-in conflict.

6. A pilot may only be awarded a line, for flying purposes, for the crew position (i.e., domicile, aircraft, seat) in which he is currently activated and qualified at the time of bid closing. However, a pilot changing domiciles in the same crew status (i.e., aircraft, seat) shall bid and be awarded a line in his new crew position prior to his activation into that new crew position. Such pilot’’s activation date shall be the first day of a bid period, or if operating a carryover trip, at the conclusion of such trip. If a pilot is activated but not qualified in his crew position at the time of bid closing, he shall be assigned a custom line as provided in Section 25.I.

7. A pilot in active pay status who is projected to be unavailable for line flying in his current crew position for an entire bid period (e.g., due to training, Association business status or sick leave) shall bid a line for pay only.

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a. A pilot awarded a secondary line in pay only status shall not be eligible for secondary line construction and shall be compensated the average bid period BLG for regular lines for his crew position.

b. A pilot awarded a reserve line in a pay only status shall not be eligible for reserve line conversion and shall be compensated an RLG.

c. A bid line shall not be awarded to more than one pay only pilot. 8. If no bid period package is published for a crew position due to the absence

of known and confirmed flying in such crew position, pilots holding such crew position shall not be awarded lines for the bid period and shall be paid the average scheduled BLG for regular lines, system-wide.

9. First and Second Officers may submit to be awarded a line with other designated pilotsCaptains. Such submissions shall be accommodated to the extent permitted by this Agreement.

10. Following the first full bid period after activation in which the pilot did not have a custom line, if a non-consolidated pilot is, at bid closing, not projected by the Company to be on-track for timely consolidation (using 1 projected-accrued block hour per remaining non-extension consolidation day), his monthly schedule awards may be restricted as follows: a. awarded a regular line, provided that it includes at least 30 scheduled

block hours, or is in the top 50% of lines in that base in terms of scheduled block hours; or

b. awarded a secondary line, with bidding preferences/priority [TBD by SIG/SLWG]; the pilot may not voluntarily use, toward his secondary line construction, standby trips, reserve blocks, or relief flight officer trips; or [Section 25.C.9.b. is intended to create a bias in the secondary line awardee’s schedule construction for block time once a successor secondary line system is in place.]

c. awarded a reserve line, only if he cannot be awarded a regular or secondary line by seniority.

11. 10. Bid awards shall be available on VIPS by 1700 CT on the date the bid closes. A limited number of printed bid line awards shall also be made available in all bases. Construction and publication of secondary and reserve conversion lines shall be available on VIPS by 1700 LBT not later than 4 days prior to the beginning of the bid period.

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12. 11. Bidding of Recurrent Training The awarding of a recurrent training session shall be as follows: a. A pilot scheduled for recurrent training in the following bid period shall

bid for a recurrent training session during the Bid Period Processing Conflict Input Window as provided in Section 25.E.2.

b. Bids shall be awarded during the Conflict Processing Window as described in Section 25.E.3., and a pilot shall be notified of the award prior to the opening of the View/Add Window as described in Section 25.E.4.

c. Recurrent training bids shall be awarded by seniority, provided, however, that a pilot shall not be awarded a recurrent training session in conflict with any other known absence, (e.g., vacation period, leave of absence) or carry-out activities from the previous bid period (e.g., carry-out trip or R-days). If a pilot bids a recurrent training session in conflict with a vacation buffer, that buffer will be deemed to have been waived. Conflicts between recurrent training and vacation will be determined based upon the vacation period as awarded, or as adjusted in the Conflict Input Window as provided in Section 25.E.2.b.

d. If a pilot cannot be awarded a recurrent training session based on his seniority as provided in Section 25.C.11.c., the following shall apply: i. The assignment of his recurrent training shall be done after the

award of all recurrent training slots that could be awarded based on seniority.

ii. The pilot shall be assigned recurrent training avoiding conflicts if possible. If recurrent training must be assigned in conflict with a trip(s) or R-day(s) block, (other than a carry-out trip or R-day(s), which will not be conflicted with under this paragraph), those conflicts shall be handled as provided in Section 25.C.11.13.f. (below).

iii. If it is not possible to assign such pilot to a recurrent training session without conflicting with a known absence (e.g., vacation period, leave of absence, carry-out activities), the following shall apply:

(a) if the pilot is not in his grace month, then recurrent training will be deferred until the next bid period.

(b) if the pilot is in his grace month, then upon completion of the bid period processing, the training Department will coordinate his recurrent training assignment and any conflicts will be handled as provided in Section 25.H.

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[Application Note: In certain pre and grace month situations, overlaps between calendar months and bid periods may restrict the recurrent training slots for which a pilot is eligible.]

e. The available sessions for First and Second Officers may be modified (i.e., “rebalanced”), prior to award based on the sessions awarded to pilots in higher seat positions. (e.g., rebalancing of First Officer available sessions will be based on Captains’ awards; rebalancing of Second Officer available sessions will be based on both Captains’ and First Officers’ awards). ’ awards).

f. Following the award during the Conflict Processing Window, a trip or block of R-days in conflict with the recurrent training session award shall be treated as a phase-in conflict as provided in Section 25.F. (e.g., the trip or R-day(s) block shall be dropped and be eligible for make-up under the CIA assignment code), with the pilot having the ability to enter bids during the following View/Add Window. Conflicts with blocks of R-days under this paragraph shall be handled as follows:i. If the pilot’sa recurrent training session award conflicts with a block of R-days but does not split that block (i.e., it does not leave an R-day(s) both before and after the recurrent training), then only the R-days in conflict with recurrent training shall be dropped as a phase-in conflict and the pilot shall remain responsible for the remaining R-days.ii. If the pilot’s recurrent training splits a block of R-days, thenany portion of a block of R-days, the entire block shall be dropped as a phase-in conflict and the pilot shall not be responsible for any of the R-days in that block.

D. Bid Line Categories and Construction 1. Regular Lines

a. Regular lines shall be constructed solely of trips and days off. b. Regular lines shall be constructed with a maximum of 313 hours TAFB

in a 4-week bid period, and 390 hours TAFB in a 5-week bid period, and 470 hours TAFB in a 6-week bid period. A single trip in a 6-week bid period shall not exceed 390 TAFB. Regular lines will only be constructed with a maximum of 15 work days in a 4-week bid period and, 19 work days in a 5-week bid period, and 23 work days in a 6-week bid period.

c. Regular lines in a 4-week bid period shall contain at least 1 block of 4 consecutive days off, 1 block of 3 consecutive days off and 1 block of 2 consecutive days off. Blocks of days off may be combined.

d. Regular lines in a 5-week bid period shall contain at least 1 block of 4 consecutive days off, 2 blocks of 3 consecutive days off and 1 block of 2 consecutive days off. Blocks of days off may be combined.

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e. Regular lines in a 6-week bid period shall contain at least 1 block of 4 consecutive days off, 3 blocks of 3 consecutive days off, and 1 block of 2 consecutive days off. Blocks of days off may be combined.

f. e. Regular lines shall be constructed so that the difference between the high BLG and low BLG in a bid period package shall not exceed 13 CH.

2. Secondary Line Construction a. A sufficient number of secondary lines shall be published to cover trips

and reserve blocks anticipated to be dropped from regular and reserve lines, and other open time that may be availableremaining open trips, reserve blocks, and base simulator support events.

b. Secondary lines shall be published as blank lines. b. c. Secondary lines shall be constructed in numerical order following the

processing of conflicts on regular lines, the assignment of trips for training and bid period processing as describedseniority order during the Secondary Working Window (SWW), as provided in Section 25.E. (below).

c. d. If a secondary line cannot reasonably be constructed entirely of trips, it may be constructed of trips and reserve days (R-days). If a secondary line cannot be constructed of trips and R-days, it shall be constructed as a reserve line. For purposes of secondary line construction, an R-day does not conflict with another scheduled activity if there is at least 12 hours between the reserve period (RP) and the scheduled activity. If the parties jointly agree to a new automated secondary line process which puts the pilot in direct contact with automation capable of generating secondary lines, such automation shall include the ability to assign available R-days/blocks before trips based on a pilot’s bids.

d. e. Secondary lines shall be constructed to comply with the provisions of Section 25.D.1.b. through D.1.e. (above); provided, however, that a secondary line constructed as a reserve line shall comply with the provisions of Section 25.D.3. (below).may be constructed using trips, base simulator support events (as provided in Section 25.L.15.), reserve blocks, or combinations of the three; however:

[Note: Company and Association to utilize SIG/SLWG to develop preference list and required programming.*]

i. a secondary line containing multiple reserve blocks shall contain at least one day off between them;

ii. a secondary line containing a reserve block prior to a trip shall contain at least:

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(a) 24 hours off (measured from the end of the last RP, to the scheduled showtime of the trip), if the pilot preferenced* a mixed line that includes a combination of trips and R-days that exceeds 6 consecutive days without a 24 consecutive hour period off; or

(b) 12 hours off (measured from the end of the last RP, to the scheduled showtime of the trip), if the pilot did not preference* a mixed line that exceeds 6 consecutive days without a 24 consecutive hour period off.

iii. a secondary line containing a trip prior to a reserve block shall contain at least: (a) 24 hours off (measured from the end of the trip’s scheduled

duty period to the beginning of the first RP), if the pilot preferenced* a mixed line that exceeds 6 consecutive days without a 24 consecutive hour period off; or

(b) 12 hours off (measured from the end of the trip’s scheduled duty period to the beginning of the first RP), if the pilot did not preference* a mixed line that exceeds 6 consecutive days without a 24 consecutive hour period off.

iv. A secondary line shall not contain a base simulator support event unless he has “preferenced*” it.

e. After the close of the View/Add window, and based on remaining open time and reserve blocks, the Company shall publish a high, low, and target secondary line BLG for each crew position. These high/low/target BLGs: i. Do not apply to trips available in open time for secondary line

construction which, by themselves and without regard to carry-in CH, exceed the high secondary line BLG; and

ii. Shall otherwise conform to the line spread provisions of Section ___. f. Carryover will not be included as part of a pilot's secondary line and

carryover CH will not be part of the BLG/RLG for a secondary line. The secondary line will be constructed within the applicable line spread, and this will be done avoiding conflicts to the greatest extent possible considering the pilot's seniority, and whether he elected minimum days off protection. If it is not possible to build a secondary line within the line spread without creating a conflict, then the line will be built within the spread and trips or R-days that conflict with carryover will be dropped and will be eligible for make-up.Secondary Line construction shall be consistent with the provisions of this Agreement, and the parameters established by the SIG and/or Secondary Line Working Group (SLWG).

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g. The maximum number of credit hours on the secondary line of a pilot who is entering ITU training in the bid period that the secondary line is awarded shall be determined using the number of calendar days in the bid period prior to the ITU start date in the formula set forth in Section 25.I.3.a.If it is not possible to build a secondary line within the line spread without creating a conflict, then the line will be built within the spread. In such case, the difference between that secondary line’s BLG/RLG, and the applicable crew position’s regular line average BLG shall be eligible for Priority Non-Premium (PNP) make-up.

h. Secondary line construction inputs and preferences shall be entered/updated via VIPS or another secondary line interface, as applicable. If access to VIPS or other interface is not available, a pilot may enter his inputs and preferences by other jointly approved means, in writing if possible.

i. A pilot may enter standing monthly secondary line preferences, which may be updated at any time. If a secondary line awardee does not enter any specific preferences for the bid period, or enters insufficient preferences, his secondary line shall be constructed respecting secondary line default preferences, as agreed upon by the SIG/SLWG.

j. If a pilot enters no preferences, and does not have a standing monthly bid, he shall be awarded a bid period schedule based on the default bid for his crew position.

k. A secondary line awardee may make other elections, during the first 48 hours of the Secondary Working Window (SWW), as provided in Section 25.E.5. below.

l. The Company shall make available a reasons report to help explain each secondary line awardee’s final awarded schedule.

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3. Reserve Line Construction a. A reserve line consists entirely of R-days and days off. b. In a 4-week bid period, a published reserve line shall contain a maximum

of 15 R-days. In a 5-week bid period, a reserve line shall contain a maximum of 19 R-days. In a 6-week bid period, a reserve line shall contain a maximum of 23 R-days.

c. In the top 6090% of published reserve lines, R-days shall be grouped into a block(s) with a minimum of 4 R-days. Other reserve lines shall have block(s) with a minimum of 3 R-days; provided, however, that reserve lines that contain blocks of 3 R-days shall not contain any R-days on weekends.

d. A published reserve line may be constructed with an additional R-day(s) that carries over into the following bid period.

e. ThereAmong published reserve lines in each bid period package there shall be a minimum of 1013% R-24 lines per bid pack, with a minimum of one R-24 line (described in Section 25.M.2.). The Company and the SIG shall coordinate to establish a percentage of R-24 lines by bid pack, and this percentage shall be reevaluated on a quarterly basis.

4. Conversion Lines a. A conversion line is a reserve line that has been converted into a

secondary line as provided in this paragraph. Conversion lines shall be constructed after the construction of all secondary lines and in seniority order among those pilots submitting for conversion.

b. A pilot's bid may contain a submission for conversion of his reserve line, if awarded.

c. If a pilot submits a line construction worksheet that identifies certain days off to be protected, his reserve line shall not be voluntarily converted unless those days off are protected.

d. A pilot who has submitted for a voluntary conversion line shall contact VIPS within 3 days prior to the commencement of the bid period to determine if his line was converted.

e. Involuntary Conversion Lines i. The Company may involuntarily assign conversion lines if:

(a) more than 5% of the total CH value of trips from the bid period package exists in open time after construction of voluntary conversion lines, or

(b) there are trips remaining in open time that operate over New Year’s Eve and Day, Thanksgiving or Christmas Eve and Day.

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ii. Involuntary conversion lines will be assigned until the thresholds established in Section 25.D.4.e.i.(a) and (b) no longer exist.

iii. Pilots shall be selected for such assignment in reverse seniority order. The additional conversion lines shall then be assigned in seniority order among those pilots. The number of reserve lines involuntarily converted may not exceed 50% of the total published reserve lines remaining after voluntary conversions. A pilot whose reserve line has been involuntarily converted shall be notified of the conversion as soon as practical.

f. Conversion lines shall comply with the provisions of Section 25.D.1.b. through D.1.e. (above). If a conversion line cannot reasonably be constructed entirely of trips, it may be constructed of trips and R-days.

g. The assignment of a conversion line may not conflict with a trip that began in the previous month.

E. Bid Period Processing 1. Monthly Bid

In addition to line preferences, a pilot's monthly bid shall have the ability to contain the following: a. Election of minimum days off protection as a result of phase-in, as

provided in Section 25.F.7.; b. Waiver of minimum days off protection as a result of recurrent training; c. Waiver of an international duty free buffer to avoid a phase-in conflict or

a conflict with recurrent training;d. Submission for conversion of a reserve line, if awarded; and

d. e. Waiver of 1-in-10 (Section 12.C.1.c.), to avoid phase-in conflict. 2. Bid Period Processing Conflict Input Window

The bid period processing conflict input window shall be notno less than 48 hours long beginning at 1700 CT on the date the bid closes. A pilot may enter the following via VIPS: a. Worksheet for minimum days off protection as provided in Section

25.F.7.; b. Submissions for vacation adjustments, (including waiver of vacation

buffer for a secondary or reserve line) as provided in Section 7.E.2., E.3., and Section 7.G.3., and 4.;

c. [Reserved]; d. Bids for recurrent training sessions following the completion and viewing

of vacation adjustments and waivers, if any;

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e. Election to retain carryover R-day(s) not in conflict with bid line trip as described in Section 25.F.3.a. (below).;

f. Submission to drop carryover trips under 72 hours TAFB as provided in Section 25.F.3.b.; and

g. Worksheet for reserve vacation line. 3. Conflict Processing Window

The Conflict Processing Window is a period of not less than 24 hours, beginning when the Bid Period Processing Conflict Input Window closes. Within the Conflict Processing Window, recurrent training sessions will be awarded after all other conflicts, except those due to minimum day off protection, have been processed. Following the award of recurrent training sessions, conflicts with recurrent training will then be processed. After recurrent training is awarded, conflicts due to minimum day off protection shall be processed.

4. View/Add Window The View/Add Window is a period of not less than 48 hours beginning at the close of the Bid Period Conflict Processing Window. During the View/Add Window, a pilot shall have the ability to view open time and(conflicted regular line trips and reserve blocks, as well as all remaining open trips, reserve blocks not included in regular/reserve line construction, and open base simulator support events as provided in Section 25.L.15.). [Application note re prior to upgrade of secondary line automation: Open time shall be “refreshed” following MUV/CIA awards, allowing secondary line preference inputs which are informed by remaining open time.] a. During the View/Add Window, a pilot may enter the following via VIPS: a. Worksheet for a secondary or conversion line;

i. b. Bids for make-up trips due to phase-in conflict, as provided in Section 25.F.;

ii. c. Bids for vacation make-up as provided in Section 7.G.5.; iii. d. Bids for phase-in make -up and MUV trips shall be only by specific:

(a) Specific trip number (including date) only; (b) Reserve block label; and/or (c) Base simulator support event label.

iv. e. Bids for MUV and CIA shall be awarded in seniority order. Preferences shall be processed in seniority order. The Company shall accommodate pilots' preferences to the greatest extent

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practicableThe results of the View/Add Window bids shall be posted no later than 5 hours following the close of the View/Add Window.

b. Additionally, during the View/Add Window, a secondary line awardee may: i. Submit the number of vacation days (i.e., whole 6 CH increments)

he desires to apply toward his secondary line, as follows: (a) For a pilot who has an awarded vacation period(s) in the

upcoming bid period, this number may be: (1) as small as zero, or; (2) as large as 12 days, for a 4 week bid period (but at least the

number of days in the pilot’s awarded vacation period(s) if larger than 12 days);

(3) as large as 15 days, for a 5 week bid period (but at least the number of days in the pilot’s awarded vacation period(s) if larger than 15 days); or

(4) as large as 18 days, for a 6 week bid period (but at least the number of days in the pilot’s awarded vacation period(s) if larger than 18 days).

For the purposes of 25.E.5.c.i.(b) below, additional vacation days (i.e., “extended” vacation days) are always added to the end of the vacation period as awarded. However, if adding an extended vacation day to the end of the pilot’s awarded vacation period could cause that extended vacation day to either fall beyond the end of the upcoming bid period or touch Thanksgiving Day, Christmas Eve, Christmas Day, New Year’s Eve, or New Year’s Day, that extended vacation day will be added to the beginning of the pilot’s awarded vacation period. If adding an extended vacation day to the beginning of the pilot’s awarded vacation period would cause that extended vacation day to either fall into the current bid period or touch Thanksgiving Day, Christmas Eve, Christmas Day, New Year’s Eve, or New Year’s Day,, the pilot’s request to add that extended vacation day will not be granted.

(b) For a pilot who has no awarded vacation period in the upcoming bid period, this number is limited only by his remaining unused vacation credit hours, in 6 CH increments;

ii. Notify the Company of any known absences (e.g., jury) pending during the upcoming bid period;

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iii. Designate the extent to which carryover CH, if any, should apply toward the new bid period’s BLG/RLG, if he is awarded a secondary line; and/or

iv. Designate the extent to which the CH associated with an awarded recurrent training session should apply toward the new bid period’s BLG/RLG, if he is awarded a secondary line.

5. The View/Add Processing Window is a period of not more than 24 hours (beginning when the View/Add Results are posted) during which time the Company shall process submissions, requests, and designations from secondary line awardees transmitted to the Company pursuant to Section 25.E.4.b. (above).

6. Secondary Working Window (SWW) The SWW is a period of not less than 144 hours beginning at the posting of the View/Add Processing Window results. During the SWW: a. A secondary line awardee may build his secondary line or modify his

secondary line preferences; b. The Company shall:

i. Comply with each request given staffing in each crew position, which shall be processed in seniority order within the request type, from secondary line awardees with an awarded vacation period(s) in the upcoming bid period, and who wish to avail themselves of Section 25.E.4.b.i.(a) above. In no case shall a request be approved if it creates a conflict with recurrent training or a known absence (e.g., jury).

ii. Comply with each request given staffing in each crew position, which shall be processed in seniority order within the request type, from pilots without any awarded vacation periods in the upcoming bid period who wish to avail themselves of Section 25.E.4.b.i.(b) above. In no case shall a request be approved if it creates a conflict with recurrent training or a known absence (e.g., jury).

[Application note: for i. and ii. above, the SIG shall be consulted regarding the staffing for each crew position and be provided that determination monthly]

c. Additionally, during the first 48 hours of the SWW, a secondary line awardee may:

i. slide his vacation footprint, up to 5 days measured against the greater of:

(a) his awarded vacation period; or

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(b) his vacation period, as adjusted in the View/Add window; Provided, however, that no slide may create a conflict with a pilot’s recurrent training or known absence (e.g., jury).

ii. shrink or eliminate his vacation footprint; and/or iii. elect to waive or protect his vacation buffer. iv. A vacation period which, as originally awarded, was wholly

contained in one bid period may have its footprint, but not its credit hours, slid into an adjacent bid period (except into November or December, or into the current bid period).

v. A pilot’s election to slide, shrink, or eliminate his vacation footprint, in accordance with Section 25.E.5.b. or c. above, has the effect only of enhancing a pilot’s flexibility during the SWW window. That election does not change the credit hour draw against his vacation bank as determined by the View/Add window.

F. Bid Period Phase-In 1. A phase-in conflict occurs when:

a. a pilot not qualified for the lowest FAR landing minimums for his aircraft is awarded a trip to an international location that was designated in the bid period package as restricted to pilots qualified to those minimums; or

b. a pilot is unable to perform an assignment(s) in a bid period due to a trip (including an international buffer, if any) that began in the previous bid period or a carryover R-day(s). For purposes of determining conflicts with R-days on which no activity has been assigned, the following shall apply: i. An R-day conflicts with an earlier assignment unless there is at least

12 hours prior to the start of the pilot's first RP, and no legality problems are caused by the previous assignment (e.g., 1-in-7).

ii. An R-day conflicts with a subsequent assignment unless there is at least 12 hours between the end of the pilot's R-day and the beginning of the scheduled assignment, and no legality problems are caused by the subsequent assignment (e.g., 1-in-7).

iii. An R-day conflicts with another R-day unless there is at least 12 hours between the consecutive RPs; however, consecutive R-days with the same RP do not create a conflict.

iv. The provisions of Section 25.F.1.b.i., 25.F.1.b.ii., and 25.F.1.b.iii., do not apply operationally or during the application of Section 25.M.3.d.

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c. a pilot is awarded/assigned a recurrent training session in conflict with a trip or block of R-days, as provided in Section 25.C.11.d.ii., or C.11.f.

2. Conflicts relating to on-duty limitations shall be determined based upon operationalscheduled duty limitations, as provided in Section 12.C.5.4. and D.6.5.

3. A pilot's current bid period schedule, inclusive of carryover R-days into the subsequent bid period, shall take precedence over a subsequent bid period award, except as follows: a. If a pilot has R-day(s) that carryover into a bid period in which a pilot has

a regular line: i. any carryover R-days in conflict with a trip shall be dropped, and be

eligible for make-up; and ii. any carryover R-days on which no trip was assigned shall be

dropped, and be eligible for make-up, unless the pilot elects to retain those R-day(s) during the Bid Period Processing Conflict Input Window, as provided in Section 25.E.2.e. (above).

a. b. To avoid a phase-in conflict, a pilot with a trip in the new bid period in excess of 120 hours TAFB shall, during the Bid Period Processing Conflict Input Window, have the ability to submit to drop a carryover trip/R-day block in the current bid period of less than 72 hours TAFB duration/3-day block as follows: i. Such submission shall be made during the Bid Period Processing

Conflict Input Window. ii. Any submissions shall be processed in seniority order.

b. c. Unpaid carryover on a pilot’’s pay only line during ITU shall not create a phase- in conflict in a subsequent bid period.

4. A pilot may elect to waive an international duty free buffer to avoid a phase-in conflict.

5. In the event of a phase-in conflict with a trip(s) on a regular line in the new bid period, the trip(s) in the new bid period shall be dropped without pay and the pilot shall be eligible to make -up the CH value of trip(s) dropped due to phase-in conflict prior to construction of secondary lines, as provided in Section 25.E.4.b., L.1. and L.5.

6. In the event of a phase-in conflict with an R-day(s) in the new bid period, the: a. If other than a vacation conflict, the block containing that R-day(s) in the

new bid period shall be dropped and the pilot shall be eligible to make-up an R-day value(s), as provided in Section 25.E.4., L.1. and L.5.;

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b. If a vacation conflict, the entire block containing that R-day(s) in the new bid period shall be made available in open time for the View/Add window; however i. The pilot’s vacation bank shall be charged only for the CH value of

those R-days in conflict (as provided in Section 7.G.3.); and ii. Those R-days not in conflict (as provided in Section 7.G.3.) shall

remain on his schedule, and his vacation bank shall not be charged for their CH value. [Note: Harmonize with Section 7]

7. If a pilot's line, including recurrent training and carryover from the previous bid period, does not meet minimum days off protection, the following shall apply prior to the construction of secondary lines: a. A pilot shall have the ability to drop a trip(s)/R-day(s) from his line,

provided that his line, after the adjustment, contains the minimum number of days off and the pilot shall be eligible for make-up. The pilot may request which trip(s) or R-day(s) will be dropped; or

b. If a pilot is unable to protect his minimum days off as provided in Section 25.F.7.a., the pilot shall have the ability to drop a trip(s) even though the drop(s) would cause his line to contain more than the minimum number of days off. He may request which trip(s) or R-day(s) will be dropped. The pilot shall then be eligible for make-up to the extent necessary to restore the CH value of a trip(s) dropped in the View/Add windowWindow, prior to construction of secondary lines.

c. Adjustments to a pilot's line in accordance with Section 25.F.7.a. and F.7.b. (above), shall be made in accordance with Section 25.E.

8. If a pilot’s vacation period ends on the last day of a bid period and is immediately followed on the first day of the subsequent bid period by a block of RP-A or R-24 reserve periods, the following shall apply: a. Unless the conflict is waived, the first reserve period will be dropped and

eligible for make-up as provided in Section 25.E.4. and Section 25.L.1. and L.5.

b. A pilot may waive the vacation/reserve conflict to avoid a phase-in conflict. If waived: i. an RP-A pilot shall be available for notification pursuant to Section

25.M.3.c.i.(a) or (b), as appropriate. ii. CRS may give an R-24 pilot a reserve assignment via VIPS at least

24 hours prior to its scheduled showtime.

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G. Open Time Assignments 1. Following resolution of phase-in conflicts, open time may be used in the

following order: training assignments, phase-in make-up, (including MUV, as provided in Section 7.G.5.a.), and then substitution/reassignment. Remaining open time shall be used for construction of secondary and conversion lines. After construction of secondary and conversion lines, open time may be used at any time prior to or during a bid period for PMU, substitution/reassignment, custom line construction, advance reserve assignment, advance volunteer assignment, make-up, training assignment and Association Fly Back (AFB). However, during the first 12 hours after the publication of open time, only pilots shall have access to open time trips starting in the new bid period. The Company may also use open time before the assignment window in order to assign a trip to an R-24 pilot.

2. Open Time Availability a. Open time for a bid period shall be available for viewing not later than

72 hours prior to the beginning of the bid period. Each bid period package will indicate when open time will be released. The release times may be staggered between aircraft types and bases to prevent VIPS overload.

b. A pilot shall be provided access to the Company’’s computer systems and data to view information related to available open time as follows: i. in crew positions where the Company is using automated systems

for trip assignment and trading (currently DReAM and the automated trip trade system), and such systems are functioning, all open time in the current bid period (and in the next bid period after open time is released) shall be visible in “real time,” except during periods when: (a) the daily assignment process is taking place;. (b) the system(s) is paused to allow manual processing functions; or (c) the system(s) affecting open time administration is not running

due to system maintenance, upgrades, etc. ii. in crew positions where such automated system(s)for which trip

assignment or trading automation is not functioning, trip pairings more than 40.5 hours prior to showtime shall be visible to pilots accessing the open time interface.

iii. a trip(s) may be frozen to allow assignment by CRS. When a trip is frozen, it will be visible, but displayed in a manner indicating that it is available only to CRS.

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3. Assignment Window a. Except as provided in Section 25.G.3.a.i. and ii., at 09200900 LBT each

day the Company shall begin to assign open time trips and base standbys with showtimes through the next 40.5 hours. i. At 0700 LBT each day, any trip with 120 hours TAFB or more, with a

showtime during the next two local base days that is assigned to a pilot who is on sick leave shall be available in open time for Bid Line Adjustments as provided in Section 25.L. At 10201000 LBT, such trips shall become available for assignment by CRS.

ii. At 0700 LBT each day, any trip with less than 120 hours TAFB, with a showtime during the next local base day that is assigned to a pilot who is on sick leave shall be available in open time for Bid Line Adjustments as provided in Section 25.L. At 10201000 LBT, such trips shall become available for assignment by CRS, with the exception of trips with a showtime prior to 1800 LBT that same day, which shall become available for assignment by CRS at 09200900 LBT.

b. Open time not assigned as provided in Section 25.G.1. (above), shall be assigned in the following order: i. SUB, RAT or PMU; ii. PNP; iii. ii. Make-up;:

(a) CMU (b) M/U (c) MUS (includes both MUS and MUD) (d) MUV

iv. iii. AFB; v. iv. RSV; vi. v. VLT; vii. vi. DRF.

c. Notwithstanding Section 25.G.3.b. above, the Company may assign open base airport standbys to reserve pilots prior to any other category.

4. 4. The Company may assign a VLT or DRF ahead of reserve, due to operational requirements, notwithstanding Section 25.G.3. (above). If necessary to prevent or mitigate a departure delay, the Company may make an open time assignment other than as provided in Section 25.G.3.

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(above) and will report the specific circumstances of such assignment(s) to the Association in the bid period report under Section 9.B.

5. 5. If an open time trip cannot be assigned through the application of Section 25.G.3.b.i. through iv., that trip may be canceled and a new trip(s) may be constructed and assigned according to this paragraph (Section 25.G.). This procedure may only be done inside the open time assignment window, as provided in Section 25.G.3.

[Note: Add 767 agreed to methodology in G.1-5 with 757/767] H. H. Substitution

1. 1. Applicability Substitution provisions apply only prior to block- out on a trip. Substitution shall not occur due to Company actions made for operational reasons (e.g., trip revision, high minimums pull) after block- out. A pilot who blocks out on a trip, but returns prior to making a landing at another airport, or who never blocks out due to an operational emergency, may be eligible for substitution, as if he had not blocked out.

2. 2. Eligibility for Substitution A pilot is eligible for substitution if he is removed from a trip for which he is entitled to trip guarantee for any of the reasons listed in this paragraph. Pilots in MUV, MUS, CMU, AFB, VLT, DRF or reserve are not eligible for substitution. If a pilot is removed from a substitution trip for any of the reasons listed in this paragraph, he shall remain eligible for substitution based upon his original trip (i.e., the trip or series of trips that actually created the substitution eligibility)., The following events generate substitution eligibility and, where noted, reassignment offers prior to substitution. a. a. Trip Canceled

i. i. The trip is canceled for any reason; or ii. ii. If a trip is canceled due to a change of gauge a pilot shall be

offered the rebuilt trip for his aircraft as a SUB or RAT, if possible. b. Trip Rescheduled Outside 4 Hour Window The trip is rescheduled to begin more than 4 hours prior to its original

showtime or to terminate more than 4 hours after its original termination time. Trips in this category must be offered to the pilot as a reassignment trip prior to the pilot being placed in substitution.

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c. Showtime Moved Up Without Notice The trip is rescheduled with a showtime at least 1 hour earlier than the

original showtime and the pilot is not adequately notified of that change. For purposes of this paragraph, adequate notification occurs if: i. the pilot checks in at or prior to the new showtime; or ii. he is notified of the change at least 8 hours prior to the new

showtime; or iii. he is transiting his base on separate trips not interrupted by a legal

rest period and he is notified of the change prior to the new showtime.

d. [Reserved] e. [Reserved] f. Weather Restrictions The pilot is removed from the trip due to weather related restrictions. g. FAR or Other Governing Authority The pilot is removed from the trip because he will or is projected to

exceed FAR limitations or because of other government controlled restrictions, (e.g., work visa not issued in time, revocation or denial of route authority).

h. Contract Limitations The pilot is removed from the trip: i. because he will or is projected to exceed limitations contained in

this Agreement (e.g., precautionary weather pull); ii. because the Company has determined that he is ineligible to fly

based on a general, uniformly applied set of criteria (e.g., lack of LCA on route familiarization segments); or

iii. due to other circumstances expressly specified in this Agreement as giving rise to substitution eligibility.

i. Operational Conflict If a trip is revised more than 24 hours prior to the showtime for that

trip, and it causes a conflict with a subsequent trip, the revised trip shall be dropped and eligible for substitution. If a trip is revised within 24 hours of showtime, and the revision causes a conflict with a subsequent trip, the subsequent trip shall be dropped and be eligible

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for substitution, unless the first trip is eligible for substitution for some additional reason.

j. Training The pilot is removed from the trip due to his recurrent training, other

than as a phase-in conflict (See Section 25.F.1.c.). 3. Notification of Substitution Assignment

a. Notification A pilot who is eligible for substitution may be offered a substitution

assignment at any time. He shall be available to receive substitution offers during the availability periods described in Section 25.H.3.b. and H.3.c. (below).

b. Initial Availability Period The initial availability period begins when a pilot is notified of his

substitution availability and ends 4 hours after the showtime of his original trip. Beginning 4 hours prior to the showtime of his original trip or once notified of substitution eligibility, whichever is later, he shall be available for substitution assignment until 4 hours after showtime of his original trip. If, before the end of his initial availability period, the pilot has not been offered a substitution assignment (other than airport hold) with a showtime within 72 hours after the showtime of his original trip, the following shall apply: i. If his substitution window, as provided in Section 25.H.4., is

shorter than 72 hours, he shall have no substitution responsibility after his initial availability period.

ii. If his substitution window is greater than 72 hours, he shall be credited with 18 hours toward his substitution guarantee. He may not be given a substitution assignment with a showtime within 72 hours of the showtime of his original trip, and he has the following options: (a) elect OTP for the balance of his original trip guarantee; or (b) remain eligible for substitution.

iii. A pilot entitled to elect OTP under Section 25.H.3.b.ii. (above) may do so until the first 0900 LBT after the end of his initial availability period. If the pilot has not elected OTP by that time, he will remain in substitution.

c. Subsequent Availability Periods For SUB Windows Greater Than 72 Hours

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If the pilot chooses to remain eligible for substitution by so indicating in VIPS his subsequent availability periods are as follows: i. A pilot shall be available for substitution assignment between

1000 and 1600 hours LBT the day prior to each remaining day on which he could operate a substitution assignment; however

ii. He is not required to be available during the last 1000 to 1600 LBT period within his substitution window.

d. Conflicts With Availability Periods A pilot shall be required to be available for substitution assignment only during the portion of an availability period during which he is not in a legal rest period, on a trip, or in training. A pilot shall not be considered available if during the entire portion of the IAP, the pilot is in a legal rest period, on a trip, or in training.

e. Meaning of “Availability” i. A pilot may supply VIPS with a primaryup to four contact

numbernumbers, with labels (e.g., “primary,” “cell,” “alternate”) for use during periods when he is required to be available for substitution assignment. In order to contact him during those periods, CRS shall place three calls based on the following hierarchy: (a) VIPS primary contact number.(b) “Beeper” (or cellcalls to

three (or fewer, when the pilot has listed fewer) of the pilot’s listed phone) number numbers.

(c) permanent contact number #1. (d) permanent contact number #2.

ii. A pilot shall be deemed “available” for substitution assignment if he either answers calls placed to his contact numbers or returns those calls within 15 minutes. In extenuating circumstances in which a pilot will be out of contact for more than 15 minutes, a pilot may work with CRS to make alternative contact arrangements.

f. Notification While On Duty Prior to starting a legal rest period, a pilot on a trip which ends during

his substitution window shall contact CRS within 30 minutes following block-in for possible substitution assignment.

g. Airport Hold A pilot eligible for substitution may be held at the airport for up to 4

hours after the showtime of the trip for which he was reporting, however, he shall not be held beyond the scheduled duty limitations

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applicable to that trip. A pilot on airport hold in MEM shall be eligible for a room in the crew rest facility. A pilot on airport hold shall earn 6 CH toward his substitution guarantee, as provided in Section 4.L.4.

4. Substitution Window A pilot’’s substitution window shall be the period beginning 4 hours prior to showtime of the original trip (i.e., the trip or series of trips that actually created the substitution eligibility) and ending 4 hours after the termination of the original trip. For purposes of determining a pilot’’s substitution window, a series of trips not interrupted by a legal rest period at base is considered a single trip. a. Early Close of Substitution Window A pilot’’s substitution window shall close if his substitution guarantee

exceeds his original trip guarantee. b. Recurrent Training If a pilot becomes eligible for substitution as a result of his recurrent

training, any substitution eligibility created will adhere to the provisions of Section 25.H.3.a., H.3.b. and H.3.c., (see also Section 25.C.11.d.iii.(b)). His substitution window shall be as follows:

Example: Recurrent training creates substitution eligibility for a 7 day trip, and the pilot is eligible for substitution for 4 days. This shall be treated as if it were a 4 day trip, for purposes of Section 25.H.3.a., H.3.b., and H.3.c. i. Training Exclusively On Days Off If the training is scheduled exclusively on scheduled days off, and

as a result of that training, he is scheduled to receive fewer than the minimum days off and has not waived such protection, he shall be removed from a trip(s), and is eligible for substitution on trip days dropped in excess of minimum days off. The Company shall notify him of the contiguous days on which he is eligible for substitution. The pilot shall be responsible for the availability periods corresponding to those days.

ii. Training Exclusively On Trip Days If the training is scheduled exclusively on trip days, the pilot shall

be eligible for substitution on any trip days dropped not in conflict with training.

iii. Training On Trip Days And Days Off If the training is scheduled on trip days and days off, the pilot shall

be eligible for substitution for any trip days dropped in excess of

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the total number of training days (i.e., training days in conflict plus training days not in conflict). If, as a result of the training scheduled under this paragraph, he is scheduled to receive fewer than the minimum days off, and has not waived that protection, he shall be removed from an additional trip(s) and is eligible for substitution on trip days dropped in excess of minimum days off. The Company shall notify him of the contiguous days on which he is eligible for substitution. The pilot shall be responsible for the availability periods corresponding to those days.

iv. Fewer Than Minimum Days Off Due To Carryover If the pilot's line has fewer than the minimum days off as a result

of carryover, the number of days off protected shall be limited to the number of scheduled days off on his line (including carryover).

v. Training Rescheduled By Pilot If the pilot has rescheduled his training from a prior bid period, he

shall not be entitled to minimum days off protection. He is eligible for substitution for all trip days dropped not in conflict with training.

vi. Location of SUB Window In Section 25.H.4.b.i., H.4.b.ii., and H.4.b.iii., when the trip dropped for recurrent training is in actual conflict with the pilot’’s recurrent training footprint, the pilot’’s substitution window will be scheduled to touch either end of his recurrent training, unless the pilot requests otherwise and an alternative arrangement can be made. If the trip dropped due to recurrent training is not in actual conflict with the training, the SUB window will be based on the footprint of the trip dropped, rather than the recurrent training footprint.

5. Substitution Assignment Parameters A pilot eligible for substitution may be assigned a substitution trip(s) or standby assignment(s) in accordance with the following: a. Substitution Trip Assignment The showtime and scheduled termination of a substitution trip must be

within a pilot’s substitution window. b. Daytime Flying Assignment A pilot eligible for substitution based on a trip in which more than half

of the revenue duty periods begin in the day period may be offered any legal substitution assignment; however, if such pilot is offered a trip in which more than half of the revenue duty periods begin outside the day period, he may refuse such trip without loss of trip guarantee.

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c. For a substitution assignment window of 72 hours or less, any assignment shall be sequential or any unassigned periods during this window are eligible to be claimed for reimbursement for a hotel room (not to exceed the base hotel contract rate).

d. Base Airport Standby Assignment A pilot may be offered a regularly scheduled base airport standby

assignment only if that standby would otherwise have to be assigned to a VLT or DRF pilot. A substitution pilot on standby must accept any standby trip assignment that is scheduled to operate within his substitution window.

Example: The Company may not create a base airport standby solely in order to use a substitution pilot/crew. If, due to operational circumstances, (e.g., weather, anticipated volume), the Company increases the number of standbys (e.g., not 1 pilot on a.m. standby, but 4 pilots on a.m. standby), then the Company could assign the standby to a substitution pilot, as long as it would otherwise have been assigned to a VLT or DRF pilot.

e. Hotel Standby Request i. A pilot whose original trip was greater than 72 consecutive hours

may request to have a hotel standby pairing constructed to cover his substitution window, or the portion of that window not covered by trips already accepted, if any, in accordance with the following: (a) If his substitution eligibility was posted in VIPS, or he was

notified of his substitution eligibility by CRS, more than 24 hours prior to showtime, he may request hotel standby through CRS up to 24 hours prior to showtime.

(b) If he does not have an answer to his hotel standby request or if substitution eligibility was posted in VIPS 24 hours or less prior to showtime, then he may call CRS to request hotel standby. CRS shall grant or deny that request immediately.

ii. A substitution pilot on hotel standby must accept any standby trip assignment that is scheduled to operate within his substitution window. Normal hotel standby report times apply to a pilot on substitution hotel standby.

f. Minimum Report Times Unless waived by the pilot, the earliest showtime for a substitution trip

shall be as follows: i. If a pilot is offered a substitution trip during his initial availability

period, and he is not already at the airport, the showtime for that

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assignment shall be at least 1:30 hours after notificationthe minimum reserve report status applicable to his base, as provided in Section 25.M.3.a. (e.g., R 1.5).

ii. If a pilot is offered a substitution trip during a subsequent availability period, (1000 through 1600 LBT), and he is not already at the airport, the showtime for that trip shall be: (a) at least 8:00 hours after the first attempt at notification if the

first duty period in the trip is scheduled to domestic block hour and on-duty limitations; or

(b) at least 12:00 hours after the first attempt at notification if the first duty period in the trip is scheduled to international block hour and on-duty limitations.

g. A pilot shall not be given a substitution assignment that would cause him to be illegal for his next assignment, except as provided in Section 25.H.2.i.

h. A substitution assignment shall not impinge on a required rest period (including such a rest period associated with training).

6. Acceptance or Rejection of Substitution Assignments a. A pilot shall accept or reject a substitution assignment when offered.

However, when a pilot learns of a substitution offer through VIPS prior to his initial availability period, he shall have up to 24 hours, or until 4 hours prior to to accept or reject the assignment, except that no assignment may be rejected within 4 hours of showtime, whichever is less, to call CRS and reject the trip. Failure to reject the assignment in that time frame constitutes acceptance of the assignment.

b. A pilot shall not earn trip guarantee for his original trip if he: i. fails to satisfy availability or contact requirements specified in

Section 25.H.3. (above), or ii. trades a substitution assignment, or iii. rejects a substitution assignment which is offered by CRS or

through VIPS: (a) prior to the scheduled showtime of the original trip; or (b) during a required contact or availability period; or (c) while on Company assignment during his substitution window.

c. A pilot may reject a substitution assignment offered other than as provided in Section 25.H.6.b.iii. (above), or in accordance with Section

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25.H.5.b., without loss of trip guarantee (i.e., night or critical flying offered to day flyer). Example: A pilot in the second day of a six day substitution window is not offered a substitution assignment during his 1000-1600 LBT availability period. A 3 day trip becomes available and CRS calls the pilot at 1730 to see if the pilot would like the trip as a substitution assignment. The pilot may decline the substitution offer without loss of trip guarantee because the trip was not offered at any of the times described in Section 25.H.6.b.iii. (the immediately preceding paragraph).

d. A pilot who has forfeited trip guarantee shall have no further substitution eligibility for his original trip, shall not be required to remain available for contact, and shall be eligible for OTP or normal make-up, as applicable. However, if he accepts a substitution assignment(s), but subsequently forfeits trip guarantee, the following shall apply: i. he shall be responsible for any previously accepted, but not yet

operated substitution assignment(s) and that assignment(s) shall be deemed make-up.

ii. he shall be eligible for make-up for the value of his original trip. 7. Trading or Dropping Substitution Assignments If a pilot accepts a substitution assignment and then subsequently trades

or drops that assignment, (including PDO bump by another line pilot), he shall forfeit trip guarantee and be released from future substitution eligibility.

8. Ineligibility for Volunteer a. A pilot may not accept a volunteer trip that operates during any portion

of his substitution window, except as provided in Section 25.H.8.b., H.8.c. and H.8.d. (below).

b. A pilot may accept a VLT trip which is assigned after his last availability period is over.

c. A pilot who elects OTP at least 4 hours prior to the showtime of his original trip may accept a VLT trip as if he had never been eligible for substitution.

d. A pilot who elects OTP less than 4 hours prior to showtime, shall not be eligible for a VLT trip with a showtime within 24 hours of the showtime of the original trip.

e. If a pilot is inadvertently assigned a VLT trip in conflict with Section 25.H.8. (this paragraph), he shall earn compensation for that trip at

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150% of his normal pay rate, or be notified of removal prior to block- out.

9. [Reserved] 10. Reassignment in Lieu of Substitution

A pilot eligible for substitution may be offered a reassignment trip in lieu of substitution subject to the following: a. Reassignment Trip Offer The Company may offer a reassignment trip to any pilot who has not

accepted a substitution assignment. b. Acceptance or Rejection of Reassignment Trip Offer

i. If a pilot accepts a reassignment trip he shall earn the higher of trip guarantee for the original trip(s) or trip guarantee for the reassignment trip, calculated as described in Section 4.M.1. (Reassignment Trip Pay). That pilot shall be released from all substitution obligations relating to his original trip.

ii. If a pilot declines a reassignment trip, he shall remain eligible for substitution.

iii. If a pilot trades his reassignment trip, he shall earn only the trip guarantee for the trip(s) assumed as a result of the trade.

11. Election of Open Time Priority In Lieu Of Substitution a. A pilot eligible for substitution on a non-PMU trip may elect OTP by

notifying CRS via VIPS as follows: i. any time prior to the showtime of his original trip if he was notified

of substitution eligibility prior to showtime; or ii. when notified of his substitution eligibility if he is notified after

showtime. b. If a pilot becomes eligible for substitution on an PMU trip, and rejects

SUB, he shall not earn any credit hours for that trip, and shall revert to his original OTP status.

c. If, while still eligible to elect OTP, a pilot forfeits trip guarantee as provided in Section 25.H.6., (above), he shall be placed in OTP automatically.

I. Custom Lines 1. A custom line shall be comprised of trips, R-days or a combination of trips

and R-days. The Company may construct and assign a custom line to a pilot if:

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a. he is returning to line flying in a bid period for which he was ineligible to bid (e.g., returning from a leave of absence); or

b. he is returning to line flying after having been awarded a pay only line (e.g., completion of IOE, extended sick leave); or

c. he is removed from his line, or a portion thereof, due to anticipated absence and the pilot subsequently becomes available (e.g., training is delayed); or

d. he is removed from a portion of his line due to conflict with the beginning of ITU training; or

e. he is a new hire pilot in a bid period for which he was ineligible to bid; or

f. he becomes qualified after the bid award closed, and as a result, did not receive a line for flying. (seeSee Section 25.C.6.).

2. A custom line shall be constructed as follows:comply with the provisions of Section 25.D.1.b. and f. a. A custom line constructed entirely of trips, or a combination of trips

and R-days, shall comply with the provisions of Section 25.D.1.b. and D.1.e. (regular line construction).

b. A custom line constructed entirely of R-days shall comply with the provisions of Section 25.D.3. (reserve line construction).

3. The provisions of Section 25.I.2.a. and I.2.b. (above), shall be applied on a prorated basis as follows: a. If a pilot is returning to line flying in a bid period for which he was

ineligible to bid, the maximum number of credit hours on his custom line shall be a prorated portion of the credit hour value of average BLG for his crew position, based on the number of days remaining in the bid period, rounded to the nearest whole number.

Example: Average BLG = 74 CH 10 of 28 days remain in bid period

(10÷28) x 74 = Maximum 26 CH on custom line. b. The number of credit hours on a custom line for a pilot who has been

awarded a pay-only line shall not exceed his pay-only BLG/RLG, less credit received during the bid period. i. A pilot returning from training shall be credited an R-day value for

each day he receives or shows for scheduled training other than IOEOE, and the higher of SCH or ACH for IOEOE trips. The number of days off on such pilot’’s pay only line shall be preserved

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when constructing his custom line. A day off during his training footprint shall be considered a day off when constructing his custom line.

ii. The credit hours on a custom line assigned to a pilot returning from sick leave shall be credited to his sick leave account.

c. A custom line assigned to a pilot who has been awarded a pay only line with carryover may include carryover CH in addition to the maximums established in Section 25.I.3.a. and I.3.b. (above), subject to the following: i. the number of carryover credit hours on the custom line shall not

exceed the credit hours allocated to the carryover portion of a trip on the pilot's pay only line; and

ii. the number of carryover R-days on a custom line shall not exceed the number of carryover work days on the pilot's pay only line.

d. If a pilot is removed from his line, or a portion thereof, due to anticipated absence and he subsequently becomes available (e.g., training is delayed), the number of credit hours on his custom line shall not exceed the credit hours removed due to his anticipated absence.

e. The custom line for a pilot who has been removed from a portion of his line due to the beginning of ITU training, shall include a 48 hour duty free period immediately prior to the beginning of ITU training. Any trips on the pilot’’s awarded line not in conflict with the pilot’’s training or training buffer will be included on his custom line. The number of additional credit hours placed on such pilot’’s custom line shall be limited to the following:

Trip(s) CH minus (R-day value times trip days in actual conflict with training) minus 12 CH training buffer.

4. Custom Line Assignment A pilot eligible for custom line assignment shall contact CRSCrew Resource Planning (CRP) no later than 72 hours prior to the anticipated eligibility for custom line assignment (e.g., return from LOA, IOEOE or beginning of ITU part of the way through a month). Such pilot shall have the ability to enter a line construction preference worksheet for his custom line at that time. The Company shall accommodate his preferences in accordance with seniority to the greatest extent practicable. a. The custom line for a pilot who was in training, shall not be constructed

earlier than his completion of training. He shall check VIPS for custom line assignment between 1000 and 1200 LBT after his legal rest period following his final IOE trip.

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b. The custom line for a pilot who does not require training shall be constructed within 2 days of his anticipated return to line flying. He shall check VIPS for custom line assignment prior to his anticipated return.

c. A pilot eligible for custom line assignment shall not submit for any bid line adjustments (Section 25.L.), volunteer or draft trips for the period covered by his custom line until after he receives such line.

J. Training Assignment A pilot whose training requires aircraft line flying (e.g., IOEOE, line check) and who is not currently assigned a trip that provides the required flying, may be assigned a trip(s), as provided in Section 25.G.1. (Open Time Assignments). InstructorsExcept during the first twelve hours after the monthly release of open time, instructors may also be assigned trips pursuant to this paragraph for the purpose of conducting training, in accordance with the following: 1. Prior to the end of the first twelve hours of open time release as described

in Section 25.G.1. (for the bid period in which the trip in question begins), a trip may not be assigned to an instructor if it was on the bid line of a pilot more senior than the instructor, prior to becoming open.

2. This seniority restriction does not apply to: a. Trips included in the construction of an instructor’’s secondary line

pursuant to Section 25.D.2.; or b. Trips assigned beyond the end of the first twelve hours of open time

release. K. Advance Reserve Assignment

1. The Company may advance assign a reserve pilot a trip(s) from open time in accordance with Section 25.G.1. (Open Time Assignments), only for the following purposes: a. a. to satisfy FAR experience requirements for the least restrictive

operating limitations (e.g., CAT II/III minimums, 100 block hours in 90 days, 75 block hourscompletion of consolidation requirements, combined crew experience in new equipment, etc.); or

b. b. to comply with visa acquisition procedures; or c. c. to cover an open time trip that is more than 5060 hours TAFB, in

which case such assignment shall not be awarded greater than 7 days in advance.; or

d. to cover an open base simulator support event (as provided in Section 25.L.15.), in which case such assignment shall not be awarded prior to the end of the first twelve hours of each bid period’s open time release.

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Base simulator support events assigned pursuant to this paragraph (25.K.) shall be on the same voluntary-only basis (i.e., pass down option available, as provided in Section 25.M.6.d.), and the following shall apply: i. An advance reserve assigned base simulator support event shall

remain on the reserve pilot’s schedule, with VIPS notification posted, for at least 12 hours before being removed (without leveling credit) for assignment to another pilot, unless Flight Training Scheduling notifies the pilot through other means (e.g., phone call); and

ii. Once notified of an advance reserve assigned base simulator support event, a reserve pilot shall exercise his pass down option within 15 minutes of notification, or else he shall be deemed to have accepted the assignment.

[Application Note: Automation to be developed to provide means to pass-down or accept the base simulator support event by default, as well as via individual notification.]

2. A pilot may be advance assigned a trip only if the trip is scheduled to operate on his scheduled R-day(s). At the request of CRS, a pilot may agree to reschedule his R-day(s) so that he can accept an advance reserve assignment.

3. A pilot shall not be removed from an advance reserve assignment except for the reasons stated in Section 25.H.2.a., H.2.c., and H.2.f. through H.2.j. (certain substitution situations), and 25.M.1.b. Upon notification of removal from an advance reserve assignment, a pilot shall return to reserve status for any of his originally scheduled block of R-days which remain after he was notified of his removal.

4. A trip assigned in advance reserve status is not eligible for bid line adjustments as provided in Section 25.L. (below), and is not eligible for substitution.

5. If an advance assignment is made in a future block of R-days, the pilot shall be released from R-days in that future block preceding the showtime of the advance assignment. A reserve pilot who is on R-days when an advance assignment is made shall remain responsible for any R-days remaining in his current block.

6. A pilot shall be credited toward leveling upon assignment as provided in Section 4.H.

7. A pilot given an advance reserve assignment shall not be given another assignment that conflicts with the advance reserve assignment.

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L. Bid Line Adjustments 1. General

a. a. A pilot shall have the ability to submit for a bid line adjustment through VIPS at any time during the bid period. Submissions for bid line adjustments shall be processed within each type of adjustment (e.g., PMU, make-up, open time trades, etc.) in the order in which they are received. CRS shall notify a pilot via VIPS that his submission has been accepted or denied and shall be reflected in open time. A pilot shall be responsible for determining whether his submission has been accepted or denied.

b. b. Submissions for open time trips (e.g., PMU, make-up or trip trade), and submissions to drop a trip shall be submitted no later than 0900 LBT on the day before the first affected activity. Submissions to drop, trade or move an R-day(s) shall be submitted no later than 0900 LBT 2 dayson the day before the first affected R-day(s). When submitted later than 0900 LBT on the applicable day, such submission may be processed at the Company's discretion.

c. c. A bid line adjustment that would remove a pilot from a trip scheduled for a check ride is prohibited unless waived by the pilot’s Chief Pilot’s Fleet Captain.

d. d. A bid line adjustment is prohibited if it would create a conflict with another scheduled activity (e.g., trip, R-day, training) or if the pilot making such would not be legal to operate another scheduled activity as a result of the bid line adjustment. For purposes of this paragraph, conflicts with R-days shall be determined using the rules set forth in Section 25.F.1.b.as follows: i. An R-day conflicts with an earlier assignment unless there are at

least 12 hours prior to the start of the pilot’s first RP, and no legality problems are caused by the previous assignment (e.g., 1 in 7).

ii. An R-day conflicts with a subsequent assignment unless there are at least 12 hours between the end of the pilot’s R-day and the beginning of the scheduled assignment, and no legality problems are caused by the subsequent assignment (e.g., 1 in 7).

iii. An R-day conflicts with another R-day unless there are at least 12 hours between the consecutive RP’s; however, consecutive R-days with the same RP do not create a conflict.

e. e. A pilot shall not submit for an open time assignment that he is not available to operate.

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f. f. The Company may limit bid line adjustments or other additional flying if it reasonably projects that the flying would cause a pilot to exceed FAR limitations.

g. [Reserved] g. The Company shall not deny a pilot’s bid line adjustment on the basis

of projected non-currency for landings, provided that the showtime for any trip or standby added as a result of such bid line adjustment is at least 72 hours after the pilot’s projected non-currency.

h. h. A pilot may not trade, proffer, or drop a trip for which he does not hold trip guaranteeassigned as VLT, DRF, AVA, CMU, or RSV.

i. i. A pilot may not be assigned an activity that originates at a base other than his own, except in PDO status.

2. Maximum Allowable Open Time a. The Company may deny a pilot'’s submission for a bid line

adjustment that would place a trip(s) into open time in excess of the maximum allowable open time. Maximum open time is defined as two reserves available for every open trip, as described in the letter of agreement entitled Maximum Open Time; provided, however, that the Company may employ a less restrictive formulation of Max Open in lieu of the formulation described in the Max Open LOA.

b. The Company may deny a pilot’’s submission for a bid line adjustment that involves the movement or drop of an R-day(s), if such would exceed the forecasted reserve requirement for that date and reserve period as determined by the Reserve Forecast modeling system.

3. Dropping Trips and R-days a. A pilot shall have the ability to submit to drop a trip or R-day(s) without

pay. b. A pilot may not drop a trip or R-day that is scheduled in whole or in

part on the following days (i.e. base days): New Year's Eve, New Year's Day, Thanksgiving Day, Christmas Eve or Christmas Day.

c. A pilot who drops a trip or R-day(s) shall be eligible for make-up. d. Contingency Bid Line Adjustment A pilot shall have the ability to submit a “contingency BLA” whereby

the pilot specifies a trip(s) or R-day(s) to drop only if the pilot is able to pick-up a specific trip(s). If the CH value of the traded trip(s) is less than the value of the trip(s) picked up, the pilot must have the applicable bank CHs sufficient to cover the difference in value. The

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use of this provision shall be subject to the rules applicable to the bank used by the pilot to cover the difference in value.

Example: A pilot holding a make-up trip submits a contingency BLA. Per Section 25.L.6.e., the difference in value shall not exceed his make-up eligibility by more than 6 CH.

[Note: Automation/Implementation timeline(s) to be determined.] 4. Open Time Priority In Lieu of Substitution (OTP removal code, PMU add

code) A pilot in OTP (as described in Section 25.H.11.) may submit for assignment of trips from open time in accordance with the following: a. He shall remain in OTP status until the close of the final bid period of

pay protection, as described in Section 4.N.1. (PMU Trip Pay). b. He may submit for a specific trip(s) from available open time, but not

for a trip which he rejected as a substitution assignment. The submission shall be processed in the order received among other submissions in OTP status, but ahead of all other open time submissions. This priority is guaranteed only for PMU submissions made prior to 0900 LBT, at least 48 hours prior to the showtime of the identified trip.

c. He may submit through VIPS for CRS to list him as available on a certain date(s) for PMU make-up assignment. That PMU make-up submission shall be processed in the order received among other make-up submissions in OTP status, but ahead of non-PMU make-up submissions. This priority is guaranteed only for PMU make-up submissions made prior to 0900 LBT on the day before the specific date for which PMU make-up is being submitted.

d. He is not eligible for a PMU assignment that exceeds his OTP eligibility by more than 6 CH.

e. If a pilot does not make -up all lost credit hours prior to the expiration of his OTP status, the remaining credit hours shall be available for normal make-up.

f. An OTP pilot’’s eligibility for volunteer shall be governed by Section 25.H.8.

g. If a pilot accepts a substitution assignment(s) he is not eligible for OTP.

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5. Priority Non-Premium (PNP) A pilot shall have the ability to submit for a specific trip(s) or standby(s) from open time (as provided in Section 25.G.2.), to make up eligible PNP hours, as follows:

a. He may submit for a specific trip(s) or standby(s) from available open time. The submission shall be processed in the order received among other submissions in PNP status, but ahead of all other open time submissions except PMU. This priority is guaranteed only for PNP submissions made prior to 0900 LBT, at least 48 hours prior to the showtime of the identified trip or standby.

b. He may submit through VIPS for CRS to list him as available on a certain date(s) for PNP assignment. That PNP submission shall be processed in the order received among other PNP submissions in, but ahead of non-PNP and non-PMU submissions. This priority is guaranteed only for PNP submissions made prior to 0900 LBT on the day before the specific date for which PNP is being submitted.

c. He is not eligible for a PNP assignment that exceeds his PNP eligibility by more than 6 CH.

6. Make-Up (M/U, CMU, MUS, MUV) a. A pilot shall have the ability to submit for a specific trip(s) or standby(s)

from open time, (as provided in Section 25.G.2.), to make -up eligible credit hours. These submissions, along with trip trades, will be processed in the order received.

b. A pilot may submit for an assignment (as provided in Section 25.G.2.), to make-up eligible credit hours. i. His submission shall include the date(s) he is available for a trip

or base standby. ii. His submission may include limitations (e.g., no late call, west

coast, weekend layover, no critical duty) or may designate a specific assignment, if available.

iii. His submission may be withdrawn or modified prior to assignment. iv. If a pilot's make-up submission contains no limitation on the length

of assignment, he may be given any make-up assignment that does not conflict with a subsequent assignment on his line.

v. A pilot shall be responsible for any make-up assignment that complies with his submission.

vi. Unless previously notified of assignment, a pilot shall be available for notification of a make-up assignment beginning 1:30 hours

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prior to the day on which he is submitting for that assignment or make prior arrangements for notification by mutual agreement with CRS. A pilot submitting for a make-up assignment shall be prepared to show in 1:30 hours unless specified otherwise in his submission. For a base whose shortest reserve report status is other than R-1.5, this paragraph’s requirements shall match accordingly. [Example: In the case of a base that has a 3 hourwith an R-3

reserve report status, the 1:30 showtime limita pilot submitting for a make-up assignment shall be increasedprepared to 3show in 3:00 hours. unless specified otherwise in his submission.]

vii. Submissions for make-up shall be processed in the following order: CMU, M/U, MUS, MUV and AFB.

c. [Reserved] d. A make-up assignment shall be operated under a single pay code

(e.g., one trip could not be half MUV and half MUS). e. A pilot is not eligible for a make-up assignment that exceeds his make-

up eligibility by more than 6 CH. f. [Reserved] g. A pilot entitled to make- up an R-day(s) will have an R-day value

added to his make-up eligibility for each R-day. He shall make-up that R-day(s) in accordance with Section 25.L.5.6.a. or L.5.6.b. (above).

6.7. Association Fly Back (AFB) Submissions for AFB shall be administered as provided in Section 25.L.5.6. (above).

7.8. Trading With Open Time a. A pilot shall have the ability to submit to trade his trip(s) for another

trip(s) in open time. The net effect of any trade(s) in a bid period (including similar footprint trades, as described in Section 25.L.8.b. below) may not increase his BLG, as published, by more than 12 CH.

b. Similar Footprint Trades If the submission of a bid line adjustment to trade trip(s) or a series of trips would have otherwise been denied due to staffing metrics (e.g. insufficient reserves), such submission shall be accepted if: i. The trade is submitted no later than 72 hours before the

showtime of the trip(s) being placed into open time; and

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ii. The trip(s) in open time has a showtime: (a) On the same local base day; and (b) In the same reserve period as the original trip(s); and (c) An equal to or greater TAFB than the original trip(s);

and iii. For a series of trips:

(a) The last trip must end no earlier than 4 hours prior to the end of the original trip(s); and

(b) The first trip in the series must have a showtime on the same local base day and within the same reserve period.

8. 9. Trading Between Pilots by Mutual Consent a. Trading Trips

i. A pilot shall have the ability to submit to trade a trip(s) with another pilot. His submission shall state whether it is a credit hour swap or mutual PDO bump.

ii. Trades between pilots shall be submitted at least 2 hours prior to showtime of the first affected activity. Submissions after 0900 LBT on the day preceding the first affected activity shall be confirmed through VIPS. Submissions within 2 hours of showtime may be processed at the Company's discretion. Should automatic trip trading become operational, the Company shall process all trip trades submitted at least 1 hour before showtime of the first affected activity.

iii. A trip trade between pilots may be processed when received, notwithstanding Section 25.L.1.a. (above).

iv. A mutual bump shall be subject to the provisions of Section 25.L.10.11. (below).

b. Trading Blocks of R-Days i. A pilot shall have the ability to submit to trade a full block of R-

days with another pilot. ii. If the submitted trade would combine 2 or more blocks of R-days

without an intervening day off on either pilot's schedule, the approval of that submission shall be at the discretion of CRS.

iii. R-days assumed by a pilot as a result of a trade(s) shall be considered scheduled R-days for purposes of RLG credit and leveling.

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c. Trading a Block of R-Days with Another Pilot’’s Trip i. Pilots shall have the ability to submit to trade a full block of R-days

and a trip. ii. If the trip and the block of R-days, as traded, would not be

preceded and followed by at least 1 day off, then the approval of that request shall be at the discretion of CRS.

iii. That trade, if approved, shall be on a PDO basis. The pilot standing the traded R-days shall assume the leveling position of the pilot originally holding the R-days.

9.10. Trip Pick-Up From Another Pilot a. A pilot shall have the ability to pick-up a trip(s) from another pilot with

his consent. If the submission meets all contract and legality parameters, the pilot originally assigned the trip shall be removed from the trip (without pay) and is not eligible for make-up. The pilot who picks-up the trip shall have trip guarantee for that trip.

b. Submissions for a pick-up trip shall be submitted at least 2 hours prior to showtime. Submissions after 0900 LBT on the day preceding the trip shall be confirmed in VIPS. Submissions within 2 hours of showtime may be processed at the Company's discretion.

c. Submissions for a trip pick-up may be processed when received, notwithstanding Section 25.L.1.a. (above).

10.11. Per Diem Only Bumping (Non-Training). a. A pilot shall have the ability to bump another pilot from his trip with that

pilot's consent, if the submission meets all contract and legality parameters. Submissions for PDO bumps shall be submitted at least 2 hours prior to showtime of the affected trip. Submissions after 0900 LBT on the day preceding the affected trip shall be confirmed through VIPS. Submissions within 2 hours of showtime may be processed at the Company's discretion. A pilot on R-days may submit to bump another pilot to satisfy pilot qualification requirements (e.g., consolidation, currency), and if such submission is approved, the bumped pilot is released and is not responsible for any R-days. A pilot may be bumped from his trip under this paragraph only if he: i. holds trip guarantee upon assignment for the trip to be bumped; ii. holds the trip to be bumped in reserve status; or iii. is bumped under Section 9.A.2.

b. If bumped, the following shall apply:

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i. The bumped pilot shall be removed from the trip and shall have no further responsibility for such trip.

ii. Unless the pilot held the trip in reserve status, he shall earn trip guarantee.

iii. If the bumped pilot held the trip in reserve status, he shall earn credit toward leveling and RLG, and shall return to his remaining reserve schedule, if any, following the footprint of the bumped trip.

iv. The pilot operating the trip shall earn per diem, international override and overage, if applicable. He shall earn deviation credit for the trip, if applicable, except as provided in Section 9.A.2. (management bump).

v. If the pilot assigned the PDO trip is unable to operate that trip due to illness or injury, the scheduled trip guarantee shall be deducted from his sick leave account.

vi. If the pilot assigned the PDO trip becomes illegal for his next scheduled trip or R-day, the subsequent activity shall be dropped without pay and he shall be eligible for make-up. [Reserved]

vii. If a pilot assigned a PDO trip rejects a substitution trip, the credit hours for the PDO trip shall be deducted from his current BLG/RLG and he shall be eligible for make-up.

11.12. Moving an R-day(s) A pilot shall have the ability to submit to move an R-day(s) within a bid period and that submission shall not be unreasonably denied.

12.13. Emergency Drop a. A pilot shall have the ability to submit to drop a trip(s) or R-day(s) due

to personal emergency. b. An emergency drop shall be submitted to a pilot's Chief PilotFleet

Captain, or his designee. The assistant chief pilotFleet Captain, or his designee, shall approve or deny the submission after consultation with CRS.

c. A pilot who drops an activity due to personal emergency shall be eligible for make-up.

d. A pilot may use his vacation in lieu of drop for personal emergencies.

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14. Proffer and Acquire in Open Time a. Proffer

A pilot shall have the ability to proffer a trip(s) in open time for pickup. The proffer shall designate whether the activity is:

i. make-up eligible; or ii. a trip pickup as provided in Section 25.L.10.

b. Acquiring a Proffer i. Provided the submission to acquire a proffer meets all

contract and legality parameters, a pilot shall have the ability to acquire a proffered trip in open time:

(a) To make-up eligible credit hours (M/U, CMU, MUS, MUD, MUV); or

(b) As a trip pickup. ii. Submissions to acquire a proffer shall be submitted at least

72 hours prior to showtime for the proffered trip, otherwise the proffering pilot shall retain that trip.

iii. The pilot who proffered the trip shall be removed from the trip without pay.

iv. If the proffer was designated “make-up eligible:” (a) The pilot who proffered the trip shall have the

scheduled credit hours for the trip deposited into the pilot’s general make-up bank; and

(b) The pilot who acquired the trip shall have the scheduled credit hours for the trip debited from the pilot’s designated make-up bank.

15. Base Simulator Support Events A pilot shall have the ability to submit for a specific base simulator support event from open time in their base. Only the following events shall be available as base simulator support events for bid line adjustments, secondary lines, and reserve assignments:

a. CQ training events (CLOE and CMV2 shall only be available as two linked events);

b. Training events pursuant to Section 24, except for MV-1, MV, LOE-1, and LOE; and

c. Requalification training events except for RMV-1, RMV, RLOE-1, and RLOE.

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M. Reserve 1. General

a. A reserve pilot shall be scheduled to stand R-days only in his base. b. A reserve pilot shall not be given an assignment that is scheduled to

terminate more than 2 hours into his day off. c. If a reserve assignment operationally extends more than 2 hours into

a pilot's day off, he shall accrue reserve overage (as described in Section 4.BB.8.b.), and shall have the ability to drop a subsequent R-day, if any, in the current bid period without pay. CRS shall make reasonable efforts to accommodate a pilot's request as to the subsequent R-day to be dropped. Such R-day shall be at the beginning or end of a block of R-days remaining on his line, unless the pilot agrees otherwise.

d. A tripAny activity (i.e., trip, base standby, or base simulator support event) assigned to a reserve pilot must have a showtime in his RP.

e. A reserve pilot removed from a base simulator support event for any reason: i. prior to his scheduled showtime, shall return to his reserve

schedule; or ii. at or after his scheduled showtime, shall be released for a

minimum rest period of 12 hours or until his next RP, whichever is greater.

f. A reserve pilot removed from a trip for the following reasons shall return to his reserve schedule: i. trip canceled; (Section 25.H.2.a.) ii. trip revised to extend more than two hours into his day off, as

provided in Section 25.M.1.b.; iii. early show without notice; (Section 25.H.2.c.) iv. weather restrictions; (Section 25.H.2.f.) v. FAR or other governmental authority; (Section 25.H.2.g.) vi. Contract limitations; (Section 25.H.2.h.) vii. Operational conflict; (Section 25.H.2.i.) viii. Duplicate or other assignment error, as defined in Section

25.AA.1. fg. A reserve pilot who departs his domicilebase to operate a

domesticnon-augmented duty period shall be scheduled for release to

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a legal rest period not later than 4“NW + 16” (i.e., 16 hours after the end ofstart of the notification window applicable to his RP). This paragraph shall not apply: i. to a pilot who is released for a legal rest period prior to the

showtime of his reserve assignment; or ii. if the reserve pilot is assigned to a duty period consisting

exclusively of deadhead; or iii. if the pilot, by virtue of having been timely notified of his next

assignment, serves neither his notification window nor any portion of his RP prior to showtime for the departing duty period, and that pilot has at least 8 hours free from duty prior to the next assignment’s showtime.

gh. If a reserve pilot has met or exceeded his RLG, his remaining R-day(s) in the bid period shall be removed without pay consequence.

hi. If a new base is established, the Company shall meet and consult with the Association regarding the feasibility of R-1.5 status in light of reasonable commuting times in the area of the new base, and the possibility of providing hotel rooms for pilots on R-1.5 in case commuting times are especially long or unpredictable.

ij. A reserve pilot released from availability or duty for 24 hours, (e.g., 24 hour or greater layover during a trip, released for international buffer, or day off), is assumed to have received a release for 1-in-7. A reserve pilot, during a block of R-days, without an assignment must be notified prior to the beginning of any release that is to satisfy 1-in-7. An R-24 pilot who is released for a 1-in-7 will not be required to be available for notification during his 1-in-7 but will be responsible for an assignment placed in VIPS during that period, provided such assignment is posted at least 24 hours prior to showtime.

jk. Upon release for a legal rest period at base from any assignment, a reserve pilot shall be given a minimum rest period of 10 hours prior to the beginning of any subsequent reserve availability or the showtime of any subsequent assignments.

kl. A reserve pilot shall not be hub turned through his base more than 4 times, during a single block of R-days, without his consent. This provision shall not apply to advance reserve assignments or pilots on first fly.

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2. Reserve Periods (RP) a. Reserve periods may take any of the following forms:

i. Reserve Period A (RP-A) is a 12 hour period of time beginning at the start of the day.

ii. Reserve Period A+ (RP-A+) is a 12 hour period of time beginning 6 hours after the start of the day.

iii. Reserve Period B (RP-B) is a 12 hour period of time beginning 12 hours after the start of the day.

iv. Reserve Period B+ (RP-B+) is a 12 hour period of time beginning 18 hours after the start of the day.

v. Reserve Period 24 (RP-24) is a 24 hour period of time beginning at the start of the day.

b. The following shall be published in the bid period package: i. RP-24 lines (minimum as provided in Section 25.D.3.e4.c.), and

at least one of the following: ii. linesLines of RP-A, RP-A+, RP-B, or RP-B+.

c. If, due to additional pilots activating in a position after the bid period package is distributed but before the bid is awarded, an insufficient number of reserve lines have been published, the following shall apply: i. The required number of reserve lines shall be duplicated from the

published reserve lines. The Company may duplicate the same reserve line multiple times; and

ii. The duplicated reserve lines shall be awarded in seniority order. 3. Availability

a. Report Status Reserve pilots shall have a report status of R-1.5, R-2, R-3 or R-24.

i. i. Pilots on R-1.5 status must be given at least 1:30 hours notice prior to the showtime of any assignment. However, an R-1.5 pilot on a RP-A (or an RP-A+ if an Operational Emergency has been declared under Section 12.A.3.) may be given a 1 hour notice prior to showtime if there is no airport standby pilot who could be given the assignment, and the pilot is given late call parking. For purposes of this Agreement, the parking lot in the Flight Operations areas in Anchorage and in the Subic Bay FDA is late call parking. Memphis, and any future bases, shall either have designated late call parking or this provision will not apply.

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ii. Pilots on R-2 status must be given at least 2 hours notice prior to the showtime of any assignment.

iii. ii. Pilots on R-3 status must be given at least 3 hours notice prior to the showtime of any assignment.

iv. Pilots on R-1.5, R-2, or R-3 must be given at least 3 hours notice prior to the showtime of a base simulator support event assignment.

v. iii. Pilots on R-24 status must be given at least 24 hours notice prior to the showtime of any assignment, except: (a) an R-24 pilot may be hub turned with less than 24 hours

notice; and (b) if an R-24 pilot is performing an assignment, is on vacation or

has a 48 hour international duty free buffer during his first availability period, CRS may give the pilot a reserve assignment by placing the assignment in VIPS at least 24 hours prior to its scheduled showtime.

vi. iv. An R-24 pilot shall not have his RP changed to a non R-24 period (Section 25.M.3.d.).

vii. v. If, due to a shortage of non R-24 pilots, an R-24 pilot is needed in his base for shorter notification, he may be assigned to base hotel standby for a block or a portion of a block of R-days. (a) Any assignment to base hotel standby will be for a minimum

of two days and a maximum of four consecutive days and shall cover the RP for which there is a shortage.

(b) The pilot’s originally scheduled R-24 base hotel standby trip may not be revised to include additional base hotel standby periods.

(c) If the Company assigns a trip to a pilot placed in base hotel standby under this provision, and the trip terminates after the conclusion of the original hotel standby assignment, the pilot shall be deemed to have completed the hotel standby assignment and shall return to his original R-24 schedule.

(d) Any assignment to base hotel standby shall be made in leveling order, as provided in Section 25.M.6.b. An R-24 pilot shall not be assigned to a base airport standby without first having been assigned to base hotel standby.

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b. Assignment of Report Status i. The report status for all reserve pilots in a base shall be published

in the bid period package. PilotsExcept for R-24, pilots shall be scheduled for either R-1.51.5, R-2, or R-3 status for an entire RP block.

ii. CRS shall notify a reserve pilot of any change in his report status. If a reserve pilot's report status is changed from R-3 to R-1.5, he shall be provided a minimum of 1:30 hours notice of that change and shall be provided a hotel room.

c. Notification A pilot shall be available for notification of an assignment throughout

his notification window. During his notification window, a pilot shall either answer calls placed by CRS or return those calls within 15 minutes. i. A pilot’’s notification window shall begin:

(a) 1:30 hours prior to his RP for an R-1.5. (b) 2 hours prior to his RP for an R-2. (c) 3 hours prior to his RP for an R-3. (cd) 24 hours prior to his RP for an R-24.

ii. A pilot’’s notification window shall end: (a) 1:30 hours prior to the end of his RP for an R-1.5. (b) 2 hours prior to the end of his RP for an R-2. (c) 3 hours prior to the end of his RP for an R-3. (cd) 24 hours prior to the end of his RP for an R-24.

d. Change of RP Status CRS may change a pilot’s RP (from or to A, A+, B, B+) consistent with

the following. The change of a pilot’s RP shall not interfere with his scheduled days off. i. CRS may change a pilot’s RP status by providing notice and a

duty free period of at least 18 hours, measured from the beginning of the pilot’s original RP or his new RP, whichever is earlier. A pilot may waive the 18 hour required notice.

ii. From the point of the RP status change, all R-days remaining in that block shall have the same RP.

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iii. If the change of a pilot’s RP conflicts with a scheduled day off, the portion of the RP in conflict with the day off shall be removed with pay. If this occurs, a pilot shall receive 3 CH toward his leveling.

iv. CRS may assign a reserve pilot 2 trips on consecutive R-days with showtimes in different RPs if the pilot is assigned the second trip at least 18 hours prior to showtime of that trip and: (a) the pilot remains on duty between the trips; or (b) the pilot has a legal rest period of at least 10 hours between

trips and the second trip contains a layover. v. If a reserve pilot is assigned 2 reserve trips with showtimes in

different RPs, his RP for the balance of the block of R-days shall be the RP applicable to the second trip, unless his RP subsequently is changed as provided in Section 25.M.3.d. (this paragraph).

vi. CRS shall notify a pilot of changes of his RP through VIPS. vii. vii. If a pilot’s RP is changed from any RP to A or B+, as provided

in Section 25.M.3.d., the pilot shall receive 1:30 CH disruption pay in addition to RLG.

e. Release Criteria and Provisions An RP-A, A+, B or B+ reserve pilot who is given an assignment in his

next RP shall be released until the showtime of that assignment. An RP-24 reserve pilot who has been given an assignment shall be released until the showtime of that assignment. If the period between release and showtime is long enough to constitute an FAR legal rest period, that period shall be considered a legal rest period.

f. Post Duty Availability A reserve pilot shall contact CRS at the completion of any assignment

that terminates within his R-day. Such contact shall be within 30 minutes after block-in if the assignment was a trip or within 30 minutes after the conclusion of any other assignment (e.g., simulator). If the pilot i. If a pilot, other than a pilot who has completed a base simulator

support event, is not given another assignment for that duty period, he shall be released for a minimum rest period of 10 hours;

ii. A pilot who has completed a base simulator support event may not be given another assignment for that duty period, and shall be released for a minimum rest period of 12 hours.

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g. Reduced Availability Situations A reserve pilot shall be available for assignment notification during his

notification window, except as follows: i. i. CRS may release a reserve pilot for a specified period of time

during a reserve period. ii. ii. If a reserve pilot has been given an assignment, he is not

required to be available prior to showtime for that assignment in the RP in which that assignment is scheduled to begin.

4. First Fly A reserve pilot shall have the ability to be assigned trips (not base standbys or base simulator support events) on a "first fly" basis for an R-day(s) by indicating a first fly election through VIPS no later than 0900 LBT two daysone day prior to the beginning of the first R-day to which first fly will apply. A pilot’’s first fly election shall be effective until withdrawn. A pilot may withdraw his first fly election, through VIPS, prior to 0900 LBT one day prior to the effective date of the withdrawal. Any first fly assignments already made shall remain assigned. A separate “first SIM” election shall be available for pilots through VIPS with the same parameters as a “first fly” election.

5. Reserve Leveling a. A reserve pilot's leveling position at the beginning of a bid period shall

be zero. b. A reserve pilot shall accrue leveling credit as provided in Section 4. c. CRS shall maintain the following reserve assignment lists for each

crew position: i. RP-A ii. RP-A+ iii. RP-B iv. RP-B+ v. RP-24

d. The reserve assignment lists shall be updated, and may be viewed by pilots in VIPS, as provided in Section 25.A.7.

e. Reserve assignments shall be made in order of reserve leveling except as provided otherwise in Section 25.K., (advance reserve assignment), and 25.M.6., (reserve open time assignments).

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f. A pilot who completes training and has R-day(s) on his custom line shall begin the R-day(s) at zero leveling.

6. Reserve Assignment Options Reserve assignments shall be made as follows: a. Trips in excess of 50with 60 hours TAFB may be assigned based

upon the maximum utilization of available R-days. "First fly" elections shall be given priority consideration in the assignment of those trips.b. Other reserve assignments shall be madeor less, base standbys, and base simulator support events shall be assigned in leveling order as follows:

i. i. The reserve pilot with the lowest leveling position within the RP (and sufficient R-days to perform the assignment) shall be assigned first (i.e., a pilot will not be skipped to optimize the use of another pilot’’s reserve days remaining, except as provided in Section 25.M.6.a).

ii. ii. If two or more pilots have the same leveling position, assignments shall be made in reverse seniority order.

iii. A reserve pilot shall be given the reserve assignment with the highest credit hour value for which he is legal at the time of assignment.

b. Trips in excess of 60 hours TAFB shall be assigned as follows: i. Among those reserve pilots, in a given RP, whose availability

duration (in R-days) most closely matches the duration of the assignment, the reserve pilot with the lowest leveling position shall be assigned first;

ii. If two or more pilots have the same leveling position, assignments shall be made in reverse seniority order; and

iii. iii. A reserve pilot shall be given the reserve assignment with the highest credit hour value for which he is legal at the time of assignment.

c. Notwithstanding Section 25.M.6.a. and b., (leveling order): i. Reserves who elected the "first fly" option as provided in Section

25.M.4. (above), shall be assigned in seniority order, prior to pilots who have not elected that option, until they have accrued 75% of RLG. A "first fly" reserve pilot who has met or exceeded 75% of RLG shall thereafter be assigned without regard to "first fly." The 75% limitation shall not apply to R-days that are part of a mini-RLG.

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ii. The Company may assign a reserve outside of leveling order to satisfy FAR minimum block hour requirements following training for a new crew position, and pilot proficiency requirements. The pilot shall also have the ability to requestsubmit a PDO bump to satisfy such requirements, as provided in Section 25.L.10.a. Such requestssubmissions shall be granted if CRS determines that the pilot is not on target to meet proficiency or consolidation requirements and that the trip requested is an appropriate means of addressing that issue.

d. [Reserved]In the event that a reserve pilot is assigned a base simulator support event (as provided in Section 25.L.15.), in normal leveling (non-“first SIM”) order, he may elect to “pass down” that assignment to a pilot lower on the leveling list. If all eligible reserve pilots have elected to “pass down” a base simulator support event, such activity shall not be assigned to a reserve.

e. No reserve pilot shall be scheduled for more than one base simulator support event in a single duty period.

f. If a reserve pilot shows for his assignment (other than base simulator support) and is removed, the following shall apply: i. he may be assigned to another trip, assigned to a base airport

standby, or released for a legal rest period. ii. If he is assigned a base airport standby, his duty period shall begin

at showtime of his original reserve assignment, or the beginning of the base airport standby, whichever is earlier. If he is not given an assignment during the standby period, he shall be released until his next scheduled activity.

fg. If a reserve pilot returns to base from a trip, and does not have another assignment in that duty period, he may either be assigned to another trip that falls within his scheduled duty limits, or released for a legal rest period.

gh. To facilitate reserve assignments, CRS may remove 1 R-day from the beginning or end of a subsequently scheduled block of R-days in the same bid period and add that day to the end of a reserve pilot’’s current block of R-days in order to complete a reserve assignment. No more than 1 R-day per line, per bid period, may be moved without a pilot’’s approval. A reserve trip must begin on an originally scheduled R-day. A pilot subject to the provisions of this paragraph shall receive 3 CH disruption pay in addition to his RLG. This paragraph shall not apply unless the reserve assignment could not be assigned to an exact availability match, or to a reserve whose

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availability is one day greater than the assignment’s duration (i.e., “best fit +1”), as provided in Section 25.M.6.b.i. above.

hi. A reserve pilot may be offered an assignment scheduled to extend up to 24 hours beyond the end of his block of R-days. The acceptance of such an assignment is at the pilot’’s option. If the pilot accepts the assignment, the portion of the trip that extended beyond his scheduled block of R-days shall be compensated as provided in Section 4.H.9., (150% calculated like carryover trip), and the pilot’’s responsibility for his remaining R-days on his reserve line shall continue. The Company shall provide a means for a pilot to declare to CRS his willingness to accept such an extension, in local base day increments.

N. Volunteer (VLT) 1. Volunteer Submissions

A pilot may submit for a VLT assignment through VIPS. a. A VLT submission shall include the date(s) the pilot is available for a

VLT trip or base standby. b. A VLT submission shall have the ability to include limitations (e.g., no

late call, west coast, weekend layover, no critical duty periods) or may designate a specific assignment, if available.

c. A VLT submission may be withdrawn or modified prior to assignment. d. A pilot shall be available for notification of a VLT assignment beginning

1:30 hours prior to the day on which he is submitting for a VLT assignment. A pilot submitting for a VLT assignment shall be prepared to show for an assignment in 1:30 hours unless specified otherwise in his VLT submission.

e. If a pilot's VLT submission contains no limitation on the length of assignment, he may be given any VLT assignment that does not conflict with a subsequent assignment on his line.

f. A pilot shall be responsible for any VLT assignment that complies with his VLT submission.

g. A pilot who holds a pay only line, except a pilot in ITU, may not accept a VLT trip or standby during that bid period.

2. Volunteer Assignment VLT assignments shall be made during the open time assignment window provided in Section 25.G.3., as follows: a. VLT submissions prior to 0900 LBT shall be considered before those

submitted after 0900 LBT.

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b. VLT assignments shall be made based on the number of VLT credit hours earned in the preceding 180 days. Pilots with the least number of VLT credit hours shall be assigned first. If 2 or more pilots have earned equal VLT credit hours, the most senior pilot shall be assigned first.

c. A pilot’’s submission for VLT assignment on multiple days shall be effective unless withdrawn by the pilot. Example:

A pilot submits for VLT on 4 consecutive days, and is assigned a VLT trip on days 1 and 2. The pilot remains eligible for VLT assignment(s) on days 3 and 4 unless he changes his submission.

3. Volunteer Limitations The following limitations apply to VLT assignments: a. A pilot shall not submit for a VLT assignment on a day(s) on which he

has dropped a trip, however, he shall have the ability to fly a DRF trip. b. A pilot shall not be given a VLT assignment that conflicts with another

scheduled activity (e.g., trip, R-day, training, vacation) or that he is not available or legal to operate.

c. The Company may limit a pilot’’s VLT flying if it anticipates that he would exceed FAR or contract limitations for future scheduled duty.

d. A pilot’’s eligibility for a VLT trip that operates during a portion of his substitution window shall be governed by Section 25.H.8. (above).

e. [Reserved] f. A VLT pilot is not eligible for substitution. g. When a VLT assignment is revised prior to block-out and does not

meet the pilot’’s stated limitations in Section 25.N.1.a. and N.1.b., such VLT pilot shall be removed from the assignment and shall be compensated as provided in Section 4.Q.2.

4. Advance Volunteer Assignment (AVA) The Company may advance assign a VLT trip prior to the open time assignment window subject to the following: a. AVA shall be available and assigned to all eligible pilots beginning 7

days prior to showtime for that assignment, based on the reserve forecast.

b. A trip is eligible for AVA assignment only if the trip has a showtime: i. between Thanksgiving Day and December 31; or

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ii. during a bid period in which the Company has requested voluntary vacation cancellations in the pilot's crew position; or

iii. during a bid period in which the Company has involuntarily canceled a vacation in the pilot's crew position.

O. Draft (DRF) 1. CRS shall offer a DRF assignment in reverse seniority order to pilots who

are legal and available for that assignment. 2. The first pilot offered a DRF assignment shall be the next pilot senior to

the last pilot who accepted a DRF assignment. 3. A pilot must accept or reject a DRF assignment at the time it is offered,

and provided that it has been constructed and is available for viewing in VIPS.

4. A pilot shall have the ability to fly DRF at any time during his time off (including during the time of a dropped trip or refused substitution).

5. A DRF pilot is not eligible for substitution. 6. When a DRF assignment is revised prior to block-out and would otherwise

be eligible for substitution, such DRF pilot shall be removed from the assignment and shall be compensated as provided in Section 4.Q.2.

P. Management Assignment If an open time trip cannot be assigned to a line pilot as provided in Section 25.G., except for substitution, that trip may be assigned to a management or supervisory pilot during the period of 9 hours prior to showtime for a domestic trip or 13 hours prior to showtime for an international trip.

Q. Base Replacement Assignment 1. The Company may remove a pilot from his assigned trip and assign him

as a base replacement to another trip when CRS determines that the assignment of that trip as provided in Section 25.G., would cause a departure delay.

2. When it is necessary to assign a base replacement trip, CRS shall identify the pilots in the applicable crew position who are appropriate for that assignment. If time permits, a base replacement trip shall be offered to those pilots in seniority order. If time does not permit, the assignment may be offered to 1 or more of those pilots in any order. A pilot may accept or reject a base replacement trip; provided, however, that when necessary, the Company may involuntarily assign that trip.

3. If a pilot's base replacement trip is canceled, he shall be reassigned to his original trip, if available, and if not, he shall be released.

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4. If a reserve pilot is reassigned under the circumstances described in Section 25.Q.1. (above), he shall not be considered to be on a base replacement trip.

R. Field Emergency Assignment 1. The Company may offer a field emergency assignment to a pilot not

currently on a trip to replace another pilot who is unable to complete his trip in progress, if that pilot cannot be replaced as provided in Section 25.G.

2. A pilot shall accept or reject a field emergency assignment at the time the assignment is offered.

3. A field emergency pilot shall be assigned a trip that is constructed in the following way. The trip shall: a. originate at his base; b. position the pilot to the aircraft’’s location; c. operate the required flight(s); and d. return to the pilot’’s base.

4. A field emergency pilot shall be provided his choice of business jumpseat or an appropriate class of deadhead travel, as provided in Section 8.A.3., to return to his original point of departure at the completion of the trip.

S. Trip Revision 1. The Company may revise a pilot's trip at any time in accordance with other

provisions of this Agreement. 2. Trips in the following pay codes are eligible for disruption compensation:

TRP, AST, SOFSON, SWP, M/U, MUV, MUD, MUS, PDO, PNP, AFB, and CIA. If a pilot's eligible trip results in a disruption, the pilot shall receive disruption pay, as provided in Section 4.W., in addition to all other compensation for that trip. The pilot must operate the disruption in order to receive the corresponding pay. a. Landing Disruption

A disruption(s) is created if a trip is revised such that the number of actual landings during the trip exceeds the number of landings scheduled when the trip was awarded/assigned. Each additional landing shall result in a separate disruption. For purposes of this paragraph, landings are counted if: i. the pilot was a member of an operating crew during the landing

(i.e., not deadheading or jumpseating); and

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ii. the landing did not occur in any of the following circumstances: (a) as the result of a diversion due to a maintenance problem on

the aircraft the pilot was operating or weather that prevented the pilot from landing at the scheduled destination;

(b) during a standby sequence; (c) during a duty period that was paid as an extra duty period as

provided in Section 4.Y.; (d) as the result of a deadhead at the end of a trip being revised

to operate back to base. If this occurs, the first two landings resulting from that change shall not count toward the actual landing total; or

(e) on a flight identified in the bid pack as a sweep flight. For purposes of this paragraph, no more than 2510% of the flights in a particular bid pack (e.g., 727MD-11 MEM), may be designated as sweep flights.

b. Duty Period DisruptionsDisruption A duty period is disrupted if one or more of the following events occurs: i. a trip was originally scheduled with one layover, and is

rescheduled so that the trip has no layover (i.e., trip with one layover rescheduled to an out and back).

ii. a deadhead at the end of the trip is deleted (i.e., trip revised to operate to base instead of deadhead to base) on a trip that was originally scheduled with revenue flights.

iii. a standby of any length is added immediately prior to (and in the same duty period as) an originally scheduled deadhead at the beginning or end of a trip.

iv. a standby period is added to a duty period for reasons other than maintenance or weather (e.g., snow, ice).

c. Layover Changes A disruption for a trip occurs if more than half of the layover cities are changed. A layover change is rescheduling a layover to occur in a different city, as determined by the airport identifier, except that the following are not considered changes of a layover city: i. A change between hotels in the same location; or ii. A change between cities that are determined by the SIG to be co-

terminal (e.g., MIA, FLL); or

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iii. Cancellation of a layover (e.g. trip with one layover becomes an out and back with no layover (this is a duty period disruption under Section 25.S.2.b.i.), or a multiple layover trip has fewer layovers due to returning to base early).

Note: The following formula is used for determining layover changes.

Determining whether more than 50% of the layovers have changed (for purposes of Section 25.S.) will be determined in accordance with the following methodology:

1. y = number of scheduled layovers when the pairing was awarded/assigned to the pilot.

2. x = number of scheduled layover locations that can notcannot be paired with actual layover locations (matching location only, not date or time).

3. If the trip is shortened, layovers that were scheduled to occur after the actual end of the trip are counted as if they occurred as scheduled.

4. Layovers that were scheduled to occur during a standby sequence are counted as if they occurred as scheduled, regardless of how the trip actually operates.

5. 5. If x/y > 50%, then a disruption occurs. d. Crew Designation Disruption

A crew designation disruption occurs for each flight in which a pilot who was awarded/assigned a designation as a Standard Crew member is reassigned and operates as a Relief Pilot, or vice versa.

e. Out-and-Back Disruption An out-and-back disruption occurs when a trip scheduled as an out-and-back (same duty departure and return to base), as awarded/assigned, actually operates as an out-and-back but not to the original outstation(s).

f. Single Layover Disruption A single layover disruption for a trip occurs if a domestic trip (including a Section 12.D.1.c.i. or ii. trip), as awarded/assigned, is scheduled for a single layover but actually operates as a domestic trip with a single layover to a different airport (as determined by the airport identifier).

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3. The Company shall make reasonable efforts to return a disrupted pilot to his original trip at the earliest opportunity. Example: A hi-mins pull from IND hub turns will be returned at the earliest opportunity to the Captain’’s original flight sequence. International point to point flight sequences ordinarily will not be rebuilt, nor will a deadhead be inserted to return a pilot to his original trip

T. FAR Extensions If a pilot’s duty period is extended beyond 1:30 hour operational limits (as provided in Section 12.C.5., or 12.D.6.), by the Vice President, Flight Operations, or his designee, or the pilot voluntarily extends beyond such limits as provided in Section 12.D.6.b.ii., such pilot shall receive FAR extension pay in addition to all other compensation as provided in Section 4.X. (FAR Extension Pay).

U. Bumping for Training 1. A pilot may be removed from his trip, or a portion thereof, for required

training of another pilot. He shall be notified of his removal as far in advance as possible, but not later than 1215 hours prior to showtime. He may waive such minimum notice.

2. If a pilot is bumped from his entire trip to facilitate the training of another pilot, he shall be removed from the trip, shall have no further responsibility for that trip and shall earn trip guarantee. Any deadhead monies associated with the removed trip shall remain intact. If a pilot is bumped from a trip in a series of trips he shall be entitled to a hotel room as an allowable deviation expense.

3. A pilot may be bumped from a portion of his trip to facilitate the training of another pilot, consistent with the following: a. His original trip shall be revised to contain the portion of that trip for

which he is still required, based on standard trip construction practices; and

b. He shall earn trip guarantee for his originally scheduled trip and shall earn per diem and international override, if any, for the revised trip.

Example: If a duty period(s) is normally constructed with an RFO (e.g., duty periods over 7:35 block hours, SYD-SFS, etc.) and a First Officer is bumped to facilitate IOE training, the First Officer will be kept on the RFO leg(s), because the student must leave the controls when the LCA leaves the cockpit to rest.

V. Extra Duty Period Trips in the following pay codes are eligible for extra duty period pay: TRP, AST, SOFSON, SWP, M/U, MUV, MUD, MUS, PDO, PNP, AFB, and CIA. If

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the actual number of duty periods operated in a pilot's eligible trip exceeds the number of duty periods scheduled when the pilot was awarded the trip, the pilot shall be compensated extra duty period pay (3:30 CH at his normal pay rate for each additional duty period), in addition to all other compensation, as provided in Section 4.Y. Extra duty periods shall be determined in accordance with the following methodology: 1. Pair scheduled duty periods with actual duty periods based on departure

city and final arrival city in that duty period; 2. If all scheduled duty periods can be paired with actual duty periods using

Section 25.V.1. above, then all unpaired duty periods are “extra duty periods;”

3. If all scheduled duty periods cannot be paired with actual duty periods, the unpaired actual duty period with the longest actual duty is the first extra duty period. This process shall continue until the number of actual duty periods remaining equals the number of originally scheduled duty periods.

W. Special International Bid Award (SIBA) and Special Bid Award (SBA) 1. When regulatory constraints or operational considerations in a foreign

location (e.g., availability of entry visas, training considerations), merit the maintenance of a limited number of qualified pilots dedicated to certain specified international flying, the Company may establish a SIBA in the Memphis pilot domicile from which to conduct that flying. When a SBA is established for certain specified flying entirely within the United States, it may only be for the purposes of FRMS study pairings, military charter, or as otherwise agreed to by the Company and the Association’s MEC Chairman.

2. A SIBA/SBA shall be located at the Memphis pilot domicile and shall consist of the specified international flying, constructed into regular, secondary, and reserve lines. SIBA/SBA lines of flying shall consist primarily of the specified international flying; however, limited amounts of other flying may be used to ensure proper balance in line construction and pay parameters.

3. Pilots bidding for the SIBA/SBA must be current and qualified, have no weather qualification restrictions and hold the crew position in the Memphis pilot domicile designated by the Company for that specified international flying. Bid awards to the SIBA/SBA shall be determined in seniority order based on the seniority of the pilots in the Memphis bid pack for the designated aircraft type. If a SIBA/SBA remains unfilled, it may be assigned to the most junior qualified pilot holding the appropriate crew position. An inverse assignment shall be for the duration of the posted

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SIBA/SBA. A pilot shall not be inversely assigned to a SIBA/SBA more than once in any 14 month period unless all more senior pilots eligible to bid for the SIBA/SBA have also been inversely assigned to the SIBA/SBA. Inverse SIBA/SBA assignments shall not apply FRMS study pairings.

4. Qualified pilots who are awarded a SIBA/SBA shall be obligated to bid and fly in that SIBA/SBA for up to three consecutive bid periods. SIBA/SBA lines shall be awarded in seniority order among pilots in the SIBA/SBA.

5. Any special training required for the SIBA/SBA flying, (e.g., ground school, line familiarization), shall be accomplished before or during the first trip of the first bid period associated with that SIBA/SBA, as scheduled by the Company.

6. International override and per diem associated with a SIBA shall be paid in accordance with Sections 3 and 5, and shall accrue on a trip by trip basis.

7. A pilot awarded a SIBA/SBA, who bids on and is awarded a vacancy inor assigned to another crew position, shall be released from his SIBA/SBA award during the bid period(s) in which his training for the vacancy awardnew crew position occurs.

X. DutyService in the Uniformed Services (as defined by USERRA) of lessLess than a full bid period31 Days)

1. 1. A pilot whose absence is less than a full bid period and is the result of uniformed service shall be governed by USERRA and its attendant regulations. Under those regulations a pilot is “strongly encouraged” (32 CFR 104.6 (a)(1)) by the Department of Defense to provide advance notice in writing to the Company of pending uniformed service. Notice by a pilot to the Company about uniformed service obligations should be addressed to the pilot’s immediate manager (Chief Pilot).The parties recognize that issues regarding the sharing of pilot resources between the Company and the various branches of the uniformed services are important concerns for both the Company and its pilots with service obligations. The parties pledge their mutual cooperation when dealing with periods of service and re-employment issues as they might affect both the Company and its pilots. The Company and Association’s Military Affairs committee shall endeavor to work cooperatively to minimize and resolve issues involving pilots and their service in the uniformed services.

2. The Company shall consult with the Association’s Military Affairs committee prior to publication of Company guidelines concerning short-term periods of service.

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3. 2. A pilot whose period of service period conflicts with an already scheduled flight activity shall have those activities dropped without pay and eligible for make-up. B-plan contributions shall be made to the pilots for service period conflicts as if those hours were flown by the pilot.

4. 3. A pilot may use available vacation CHs to cover the scheduled CHs in conflict with his service, provided such use does not create a deficit in the pilot’’s vacation bank.

5. 4. The Company and Association’s Military Affairs committee shall endeavor to work cooperatively to minimize and resolve issues involving pilots, their service in the uniformed services and their use of military leave.Contract requirements and guidance pertaining to long-term periods of service (more than 30 days) are found in Section 13.D.

Y. Jury Duty Absence Due to Jury Service 1. 1. When a pilot receives notice pertaining to jury dutyservice, he shall

notify the Regional Chief Pilot, or his designee,Pilot Administration Center (PAC) and provide himthe Company with a copy of that notice, as soon as practicable. When warranted by operational needs, the Company may request the appropriate authorities to defer or establish an alternate date(s) for a pilot's jury duty.within 18 calendar days from the original notice of jury service (measured from the date of the jury summons).

2. 2. Failure to provide the PAC with timely notice of jury service and with

adequate documentation from the court establishing the beginning and end of his period of jury service shall render the pilot ineligible for pay protection.

3. Jury service will be pay protected as follows:

a. For jury service in which the pilot’s personal attendance in the court room is required (“in-person jury service”):

i. The Company shall pay a pilot based on the value of each scheduled trip day or R-day missed during the period of jury service, beginning with the first day of government compensated jury service and ending with the last day of government compensated jury service. If a pilot is removed from a multiple day trip, the pilot shall be eligible for substitution for the portion of the trip not in conflict with jury duty. Jury duty shall include 1 day

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traveling to and 1 day traveling from jury duty if a pilot is assigned to an FDA location.

3. A pilot who fails to provide the notice required by Section 25.Y.1. (above), shall not be eligible for Company jury duty pay protection.

4. Once notified of an FDA assignment, if a pilot is called to jury duty and a potential conflict is created by that duty, the Company may advise the appropriate governmental authorities of his situation and seek for him to be excused from jury service.

5. In jurisdictions where a juror is required to stay in his city and call jury administration authorities daily to be available for jury assignment, a pilot shall be eligible for jury duty pay protection provided the pilot provides his RCP/ACP with notice and a copy of his jury duty service notice, with the call-in dates listed, within 18 calendar days from the original notice of jury service (measured from the date of postmark).100% of the CH value of each scheduled trip or R-day removed as a result of a conflict with the pilot’s period of in-person jury service, which period begins at the time the pilot is required to first attend court and ends upon the pilot’s release from in-person jury service by the court.

ii. If a pilot is removed from a scheduled multiple day trip in conflict with the pilot’s period of in-person jury service, the pilot shall be eligible for substitution for the portion of the trip not in conflict with in-person jury service. A pilot’s substitution window shall not include the 18 hours immediately preceding or the 8 hours immediately following the pilot’s period of in-person jury service.

iii. At the pilot’s request, the Company shall drop a scheduled trip(s) that, while not in conflict with the pilot’s period of in-person jury service (as defined above), either:

(a) ends within 18 hours of the time the pilot is required to first attend court; or

(b) begins within 18 hours of the time the pilot is released from in-person jury service.

For trips with an SCH of 12 CH or greater, the Company shall pay the pilot 6 CH for each such trip(s), with the remaining CH value of the trip(s) eligible for make-up.

b. For jury service in which the pilot is required to call the court (or check in with the court through other means) to determine whether the pilot’s

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personal attendance in the court room will be required in the future (“call-in jury service”):

i. The Company shall pay a pilot 50% of the CH value of each scheduled trip or R-day dropped as a result of a conflict with the period of call-in jury service, which period begins 18 hours prior to the time the pilot would potentially be required to attend court and ends as specified in the jury summons.

ii. The remaining 50% of the CH value of each scheduled trip or R-day in conflict with the period of call-in jury service (as defined above) shall be eligible for make-up.

c. Call-in jury service that becomes in-person jury service shall be treated in accordance with Section 25.Y.3.a.

4. When warranted by operational needs, the Company may request the appropriate authorities to defer or establish an alternate date(s) for a pilot's jury duty.

Z. Z. Bereavement Absence 1. In the event of a death in a pilot's immediate family (spouse, child, parent,

sister, brother, father-in-law, mother-in-law, grandparent, or grandchild, including half and current step relations), the pilot, after notifying the Company of the decedent's name, address, relationship to the pilot, and date of death, shall receive bereavement absence with pay for a maximum of 3 consecutive days. The 3 days shall begin within 7 days after the date of death. Pay for bereavement absence shall be as provided in Section 4.I.8.c.

2. Upon request, a pilot based in an FDA location shall receive an additional two days of bereavement absence without pay for the purpose of travel.

3. A pilot may receive additional days for bereavement absence, with the approval of his Chief PilotFleet Captain, by using available vacation, or by dropping trip(s)/R-day(s) eligible for make- up.

AA. AA. Duplicate or Other Assignment Error 1. A duplicate or other assignment error occurs if:

a. a pilot is inadvertently not given an assignment to which he was entitled; or

b. a pilot is notified of an assignment, through VIPS or contact with CRS, to which another pilot was entitled; or

c. multiple pilots are given the same assignment.

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2. In case of a duplicate or other assignment error, the following shall apply to the pilot who should have been given the assignment: a. If it is feasible, such pilot shall be given the assignment to which he

was entitled. b. If the assignment is not given to the pilot who should have received it,

(e.g., time constraints do not permit reassignment), the credit hours from the assignment shall be eligible for compensatory make-up.

c. If it is not possible to determine which pilot should have received the trip (e.g., time does not permit the necessary research), then the senior pilot shall be offered the choice of performing the assignment, or having the credit hours for the assignment deposited into his compensatory make-up bank.

3. In case of a duplicate or other assignment error, the following shall apply to the pilot, if any, who received the assignment in error. a. If operational circumstances permit, such pilot shall be removed from

the assignment and it shall be reassigned to the pilot who should have received the assignment, as provided in Section 25.AA.2.a. (above).

b. If the pilot removed from the trip held trip guarantee for the trip, and received notice of the assignment, through VIPS or contact with CRS, he shall be eligible for compensatory make-up for the credit hours removed due to assignment error.

c. If the pilot removed from the trip did not hold trip guarantee for the trip, his entitlement to showpay shall be determined in accordance with other provisions of the Agreement.

4. Substitution Election Notwithstanding the above, if, as a result of a duplicate or other assignment error, a pilot is removed from a trip for which he held trip guarantee, or does not receive an assignment for which he would have held trip guarantee upon assignment, the pilot may elect to be placed in substitution in lieu of having credit hours deposited into his compensatory make-up bank. Any such election must be made through direct contact with CRS, when the pilot first learns of the error.

5. Limitations a. Section 25.AA shall not apply to pilots in substitution or reserve status. b. Section 25.AA. shall be applied one time for each qualifying error. If

a single assignment error results in several pilots receiving different trips than they would have received but for the error, the provisions of this paragraph only apply to the pilot who received the first trip in error, and the pilot who was denied the first trip due to the error.

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6. Compensatory Make-Up a. A pilot shall have the ability to submit for a compensatory make-up

assignment in the same manner as for regular make-up assignments, as provided in Section 25.L.5.

b. A pilot is not eligible for a compensatory make-up assignment that exceeds his compensatory make-up eligibility by more than 6 CH.

c. Compensation for compensatory make-up shall be as provided in Section 4.DDQ.7.

BB. BB. Scheduling Improvement Group (SIG) A. Statement of Intent

The parties agree that the construction of the pairings and lines each month can immensely affect both the Company and the pilots. The purpose of the SIG is to provide, through joint participation and cooperation, a process that promotes, to the greatest extent possible, a reasonable balance between the following competing interests of both parties. 1. For the Company, the efficiency and productivity of the pairings impact

operational safety, reliability, cost, and business competitiveness that are critical for proper system and operational coordination. The flight pairing and line construction must be managed and maintained within acceptable financial and operational limits.

2. For the Federal Express pilots, flight pairings and lines represent an important factor in their work environment, including the promotion of a safe and effective flight operation. Pairings and lines also contribute, along with seat position, seniority and work effort to a pilot’’s income opportunities. A pilot’’s work schedule and the coordination of that work schedule with other flight, travel, and operational responsibilities can impact a pilot’’s ability to operate an aircraft safely.

B. Composition of SIG The SIG shall consist of 4 members. The Company shall select two representatives, one of whom shall be a seniority holding member of Flight Management, and shall designate a SIG Chairman from the two representatives. The Association’’s two SIG members shall be the MEC Scheduling Committee Chairman and Vice-Chairman or other line pilots designated by the Association.

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C. Responsibilities of the SIG 1. Oversee Monthly Pairing and Line Construction Process

a. Pairing Construction The SIG shall ensure that the pairings and lines are constructed, through coordination of the PSIT with CRP specialists. The Crew Planning department shall build the pairings. The SIG shall have oversight to ensure there is a mutually effective avenue for input into the pairing construction process between the PSIT and CRP Specialists. i. Manage Pairing Generation

(a) The SIG shall work with the Company to produce and develop the parameters that are input into the pairing generator. The Company and the SIG shall work jointly to utilize and manage pairing generation to produce safe, legal and reliable trips that are both flyable in terms of quality of life and cost effective. The Association SIG shall be provided with access to the Company fatigue modeling software for the purposes of evaluating domestic pairings.

(b) If the Company develops or purchases software including new or different functions for use in pairing generation, the Company shall notify the Association SIG members in writing, at least 45 days prior to using such software in the pairing generation process. The Company shall take input from the Association SIG members regarding the application of such software. The Association SIG members may dispute new functions.

(c) Upon notificationrequest by the MEC Scheduling Chairman, the Company shall advise the Association SIG members of significant changes in the settings of existing functions that led to a particular solution.

(d) Within 30 days after the effective date of the Agreement, the

company shall provide the Association SIG members with a list of each function used in pairing generation and a description of its purpose. Subsequently, this list shall be provided upon request of the MEC Scheduling Chairman.

ii. Pairings Conference Call The pairings conference call shall provide the opportunity for PSIT and the Association SIG members’’ input of needed repair and

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design changes. The MEC Scheduling Chairman will designate a lead PSIT member for each base (or at the election of the MEC Scheduling Chairman, each equipment type), who shall be the primary spokesperson for his subgroup on the conference call. The pairings conference call shall include: (a) the SIG members, or their designees; (b) the participating members of the PSIT and Reviewers, as

designated by the MEC Scheduling Committee Chairman; and

(c) appropriate Company employee(s) involved in pairing and line construction.

iii. Pairing Variety The Company recognizes that having an assortment of pairing lengths, (e.g., 1 day, 2 day, 3 day, 4 day and longer pairings), facilitates trip trading and provides a variety of choice in regular lines. While pairing solutions inevitably change along with the business, the Company will ensure that, from the perspective of the overall FedEx Flight Operation, there is a selection of trip lengths available for pilots to bid and fly (e.g., some trip lengths may only be available in certain fleets and bases and not others, etc.).

b. Line Construction The SIG shall manage the PSIT participation in the line construction and dispute process.

c. Evaluation Criteria The SIG shall evaluate both pairings and lines with regard to their impact on safety, (e.g., consideration of circadian rhythm disruptions, compounding effects of fatigue, etc.), reliability, reasonable crew desires and cost effectiveness.

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dc. Bid Pack Production Timeline Unless otherwise agreed by the MEC Scheduling Chairman and the SIG Chairman, or unless prevented by circumstances beyond the control of either party, the following timeline shall be observed for the construction of the bid period package. Target dates and “Not Later Than” (NLT) dates are measured from the target date for publication of the bid period package: i. The timeline for delivery of the preliminary pairings to the PSIT

and reviewers shall be: (a) Target: 13 days (b) NLT: 11 days

ii. The timeline for the pairings conference call shall be: (a) Target: 8 days (b) NLT: 7 days.

iii. The timeline for the delivery of the final pairings to the PSIT and reviewers (a) Target: 6 days (b) NLT: 4 days

iv. The timeline for the publication of the bid period package shall be: (a) Target Day 0 (b) NLT Day +1

ed. Management of SIG Parameters The SIG shall work to ensure that the collection of SIG parameters are effective in guiding pairing generation so that the automated solutions further the goals for the SIG process as outlined in in Section 25.BB.A. To facilitate this process, there shall be two types of SIG parameters——hard parameters and soft parameters, both of which are applicable in the bid period package construction process. i. The Company must apply hard parameters in the bid pack

construction process unless the Vice President, Flight Operations and the MEC Chairman agree otherwise in writing. Any such agreement may contain conditions and/or limitations, as mutually agreed between the V.P. and the MEC Chairman.

ii. The Company may override a soft parameter(s), provided it gives at least 45 days written notice, prior to the delivery of the preliminary pairings, of its intent to do so and the reasons

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therefore. This notice shall be sent to the MEC Scheduling Chairman. The Association may dispute the Company’’s decision via the VP/MEC Chairman track for resolution of disputes as described in paragraph G. Other soft parameters may be added by agreement of the Association and the Company.

2. Manage the Pilot Scheduling Improvement Team (PSIT) a. Composition of PSIT A primary PSIT member participates directly in the bid period build

process and is compensated as such in any given bid period. A back-up PSIT member is a fully trained member assisting the primary(s) in a given bid period through trip review and conference call participation. The roles are rotational and are scheduled by the MEC Scheduling Committee chairman. PSIT members shall be line pilots selected by the Association with the consent of the Company, which shall not be unreasonably withheld.

b. Number of PSIT members The number of primary PSIT members per base shall be predicated

on the crew position with the most lines and on the line count for three consecutive bid periods. There shall be:

i. i. 1 primary PSIT member if the number of lines is 100 or less; ii. ii. 2 primary PSIT members if the number of lines is between 101

and 350; iii. iii. An additional primary PSIT member for each increment of 250

lines (e.g., the third PSIT member is added at 351 lines, the fourth is added at 600 lines, etc.); and

iv. iii. There shall be one back-up PSIT member for each base, which shall be increased by one for each 300 lines, measured in the same manner as for primary PSIT members. Example: Suppose there are 280 captain lines in the Memphis MD-11 base and 320 first officer lines in that base. The number of back-up PSIT members is 2, since the number of lines is more than 300. When the number of MEM 11 F/O lines reaches 351 for three consecutive bid periods, the number of primary PSIT members assigned to the MEM 11 base shall increase to 3.

c. Duties of PSIT i. The PSIT shall report to the SIG and shall perform its duties

consistent with the goals outlined for the SIG/PSIT process, as set forth in Section 25.BB.A.

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ii. The PSIT shall participate each bid period in the conference call and other joint meetings called to provide constructive input into trip and line construction. Such input shall include, but not be limited to, pilot fatigue issues, weather anomalies, factors which cause variations in actual versus scheduled duty times, air traffic control delays, and other operational considerations related to the flight schedule.

iii. The PSIT shall provide the SIG and flight management with constructive feedback received from line pilots with regard to trips and lines for the purpose of performing the functions within the purview of the SIG/PSIT.

3. Coordinate Cross Divisional Cooperation in Schedule Construction a. Scope of Required Coordination The construction of the monthly flight schedule is influenced by

numerous groups within the Company. Promoting the closest practical coordination between the core groups responsible for the final airline schedule is essential to accomplishing the goals stated in Section 25.BB.A. The groups most directly involved in affecting the published flight schedule are: Airline SchedulingGlobal Network Planning, Crew Resource Planning, Flight Management, GOC, CRS; Aircraft Acquisitions, Charter Operations and Flight Safety.

b. Quarterly Cross-Sectional Meeting i. To facilitate cooperation between these different areas of the

Company which impact pilot schedule construction, and to promote a greater level of mutual understanding, unless otherwise agreed by the MEC Scheduling Chairman and the SIG Chairman, the parties shall meet each calendar quarter with designated representatives from each of the above areas to review, discuss, and share information in an attempt to foster a better understanding of the problems faced by both the Company and the pilots. The SIG Chairman will conduct the meeting. To the greatest extent possible, this group will mutually resolve concerns about flight schedules. At this quarterly meeting, the parties shall also discuss any upcoming changes that are likely to impact the future quarter’’s flight schedules, so that problems and disruptions accompanying the changes in constructing future flight schedules can be anticipated and minimized.

ii. Unless otherwise agreed by the MEC Scheduling Chairman and the SIG Chairman all SIG members shall attend and participate in the quarterly cross sectional meetings and shall work together to recommend jointly to flight management ways in which future

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schedules can be improved or adjusted. Recommendations to Flight Management shall be in writing and approved by all members of the SIG.

4. Participate in Development of New Software/Hardware The SIG shall have regular input into the process of purchasing or developing any new software or hardware that will be used to construct pairings and/or lines. Additionally, if the Company modifies computer systems that pilots use to interface with CRS or CRP (e.g., display of reserve leveling lists, display of open time, input screens, etc.), the SIG shall have input into such modifications.

5. Communications General communications to the crew force about the SIG activities and its accomplishments shall be mutually agreed to and jointly reviewed by the Company and the Association before publication, with appropriate consideration for confidentiality.

6. Provide SIG Input and Feedback on Ancillary Issues The MEC Scheduling Chairman shall have the ability to provide input into the percentage of credit hours left in open time to facilitate trip trading, and into the process for constructing reserve and secondary lines. The MEC Scheduling Chairman shall also have the ability to provide feedback regarding any revisions or the creation of flying outside the bid pack process.

D. Access to Information and Confidentiality 1. Flight Operations Plans and Analysis shall provide all members of the SIG

such information in the Company’’s possession, as mutually agreed between the Company and the SIG, which is necessary to perform the SIG’’s tasks. At a minimum, this information will include the following data in a mutually agreed upon format: a. A daily report of all trips that exceeded the operational on-duty or block

limits, including trip number(s) and the reasons for the extension(s). b. A bid period report of all trips that exceeded the scheduled on-duty or

block limitations, including, at a minimum, the trip numbers. c. A bid period report that identifies trips flown by number, frequency of

occurrence, CH value and assignment code. This information shall be available only on Company property unless otherwise agreed by the Vice President, Flight Operations or his designee.

d. Sick leave utilization by crew position, for each bid period.

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e. Reserve utilization by reserve period type, by crew position, for each bid period.

f. Volunteer and Draft incidence by crew position, for each bid period. g. actualActual block hours by crew position, for each bid period. h. actualActual credit hours by crew position, for each bid period. i. blockBlock hour distribution by crew position, for each bid period. j. Revision and x-pairing report. The Company shall work to automate

a report that includes the first and last revision of every trip that is revised, or every x-pairing that is built, beyond agreed upon thresholds. In the meantime, the Company shall continue to deliver the report in its current form.All revisions of specific trips, made viewable by Association SIG members

k. aA report, by occurrence, detailing the reason for and the frequency of any deadheadbusiness necessity deadheads on a Companycompany aircraft, chartered jet carrier, Company corporate business jet aircraft or on a scheduled U.S. certificated air carrier operating under FAR Part 135. All members of the SIG shall be notified of the reasons for any action by the end of the next business day.

2. The SIG, PSIT and reviewers recognize that they may be entrusted with information not generally made available to line pilots, or to the public, that constitutes confidential information, in which the Company has a significant and valuable proprietary interest. This information shall be kept confidential and shall not be published nor shall it be distributed outside the Company to any third party for any purpose, without the express written permission of the V.P. of Flight, nor shall it be used for any purpose other than to meet SIG responsibilities outlined in this Section.

E. E. Initial Resolution of Disputes Regarding Specific PairingsScheduling Disputes – System Chief Pilot and Fatigue Risk Management Group (FRMG) Tracks The SIG may formally dispute particular pairings in accordance with the following processprocesses that are inconsistent with the goals and purposes established elsewhere in this Agreement, the Company’s Fatigue Risk Management Plan (FRMP), and/or the Fatigue Risk Management System (FRMS) (as administered by the Company’s FRMG). In no case shall disputes made under the provisions of this Section, cause a delay in the printing or distributionpublication of the monthly bid package. Intent: The language regarding not creating a delay in bid pack printingpublication is not meant to allow a “fix it next month” mentality. The

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process is intended to be as expedited as possible, but it will not be permitted to jeopardize the timely publication of bid packs. 1. 1. The SIG may use the pairing dispute procedureprocedures

described in this paragraph only to dispute new pairings. A “new” pairing is one which is materially different from the way the pairing was constructed in the three previous bid periods. A pairing is not new if it has been built and flown materially the same way without challenge for three consecutive bid periods after 5/31/1999. A change in a deadhead carrier or service provider (e.g., change from Delta to United or from Super Shuttle to Argenbright) shall not, by itself, constitute a material change unless such deadhead change eliminates a layover or occurs mid-pairing.

2. 2. The SIG shall provide a written list of all disputed pairings prior to the monthly conference call/meeting and shall identify each disputed pairing and the reasons why it is unacceptable during that conference call. The Company may agree to rebuild the pairing to alleviate the concerns expressed by the SIG. The SIG may withdraw a dispute after discussion during the conference call/meeting. If, between the pairings conference call and the issuance of the final pairings, a new pairing design is built for inclusion in the bid period package, the SIG shall have the ability to dispute such new design as if it had been part of the preliminary pairing solution. Intent: Disputed pairings shall be corrected in the current month to the maximum extent possible without delaying the process.

3. 3 If there are pairings that remain disputed after the conference call/meeting, the SIG shall meet and attempt to resolve the pairings still in dispute. If all such disputes are not resolved by the SIG, the SIG shall select the appropriate dispute resolution track (i.e., System Chief Pilot track or FRMG track) based on the underlying rationale of the dispute.

4. System Chief Pilot Track a. The SIG shall present the System Chief Pilot (SCP), or his designee,

with the written rationale explaining why each disputed pairing should be changed.

b. 4. The SCP or his designee shall review each disputed pairing and may direct that the pairing be rebuilt to the SIG’’s satisfaction. The SIG may withdraw the dispute after the meeting with the SCP or his designee.

c. 5. If there are pairings that remain disputed after meeting with the SCP, or his designee, the following process shall apply to each bid pack which contains disputed pairings for the immediately upcoming bid period only:

i. a. If the number of remaining disputed pairings in a particular bid pack does not exceed 5% of the total number of pairings in that bid pack, the disputed pairings shall not be included on bid lines

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without SIG approval. Such pairings shall appear in open time and shall be available for ordinary open time assignment, or for placement on a VTOsecondary or custom line if specifically requested by a pilot holding such line.

ii. b. If the number of remaining disputed pairings in a particular bid pack exceeds 5% of the total number of pairings in that bid pack, the SIG shall choose the pairings which shall be placed in open time as described in paragraph 5.aSection 25.BB.E.4.c.i., above (i.e., up to 5% of the total number of pairings in the bid pack). The remaining disputed pairings may be built into bid lines.

iii. c. When calculating the 5% referenced in paragraphs E.6.a.,Sections 25.BB.E.4.c.i. and E.6.b.,ii. above, a bid pack with pairings that are not identical in all seat positions shall be treated as separate bid packs for each seat position. If a particular flight sequence which is the cause of a dispute appears in several pairings, those pairings shall count as one pairing for purposes of calculating the 5%.

5. FRMG Track (Fatigue-Related Disputes Only) a. If the only underlying rationale for the dispute is based on a fatigue-

related concern, the dispute must follow the FRMG track. b. The SIG shall transmit to the FERC the written rationale explaining why

each pairing should be changed. c. The FERC shall analyze the pairing for its impact on pilot alertness. At

a minimum this will include the fatigue model output of the Company and Association’s fatigue modeling software.

i. The FERC shall attempt to reach consensus on a recommendation to:

(a) Have the pairing rebuilt; or (b) Perform data collection on the pairing.

ii. In the absence of consensus the pairing will immediately be referred to the DCSC for evaluation. The DCSC shall make a recommendation to:

(a) Have the pairing rebuilt; or (b) Perform data collection on the pairing.

iii. In the absence of DCSC consensus the pairing shall be referred to the dispute track chosen by the Association MEC Scheduling Chairman.

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d. Should the FERC’s/DCSC’s recommendation be to perform data collection, then:

i. All fatigue report data gathered on the pairing shall be promptly reviewed and analyzed by the Fatigue Event Review Committee (FERC) and transmitted to the FRMG for review and consideration;

ii. The pairing shall be included in the Data Collection Steering Committee’s human performance/alertness data collection and analysis efforts;

iii. The parties may solicit feedback from pilots operating the pairing only by operation of the Data Collection Memorandum of Understanding, the Company’s FRMP, or Section 12.A.9.; and

iv. The pairing shall be studied as a Category 3 pairing as defined in Section 12.A.10. [Note: Both parties agree not to intentionally characterize such pairings in a way that compromises the scientific validity of data gathered on such pairings until the dispute is finally resolved.]

e. At its next regularly scheduled meeting, the FRMG shall review the pairing presented to it by the SIG (including the underlying rationale for the dispute), the data and analysis of the FERC (if any) on the pairing, and the human performance/alertness data collected from pilots operating the pairing since initiation of the FRMG track. To the extent that preliminary or final analyses of those human performance/alertness data are available, those analyses shall also be presented to the FRMG. The SIG may withdraw the dispute after presentation to the FRMG.

f. During the FRMG’s review of the pairing, the FRMG’s focus shall be on whether the pairing under review is consistent with the goals of the Company’s FRMP and/or FRMS and shall consider only whether the pairing under review is constructed with appropriate consideration of cumulative and transient fatigue. After completing its review, the FRMG may either:

i. Approve the pairing as designed by the Company; ii. Direct that the pairing be rebuilt; or iii. Conduct an enhanced review of the pairing.

g. If the FRMG decides to conduct an enhanced review of the pairing, the enhanced review period (ERP) shall be 3 bid periods in duration. The FRMG may consider revision of the pairing at any time during the ERP. At the end of the ERP, the FRMG may extend the ERP up to an additional 3 bid periods.

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h. In addition to any human performance/alertness data and fatigue report data gathered from pilots operating the pairing during the FRMG’s review, the FRMG shall also consider the manner in which the pairing is assigned (e.g., BLA, reserve, standby, etc.), the relative seniority of pilots assigned to the pairing, the turnover of each pairing (e.g., dropped, sick, etc.), and the operational history of the pairing (e.g., operational revisions, extensions, etc.).

i. During the FRMG review process, the members of the FRMG shall attempt to reach consensus. If the members of the FRMG reach consensus, that decision shall be final. If the members of the FRMG are unable to reach consensus on an issue, the matter shall be jointly presented to the Vice President, Flight Operations within 5 business days of the FRMG meeting. The Vice President shall render a written decision within 5 business days of the presentation of the matter. The Vice President shall send copies of the decision to the members of the FRMG. If the Association disagrees with the decision, it may appeal the matter to the Senior Vice President of Flight Operations, whose decision shall be final.

6. 6. If a pairing routinely goes into operational limits that pairing shall be rebuilt.

7. 7. If the Association SIG members elect to pursue the dispute further they shall choose between the mutually exclusive processes described in paragraph Section 25.BB.F. and G., below. If the Association SIG members do not choose a dispute track after having disputed a pairing for four bid periods, the SIG Chairman may initiate the SIG Neutral track.

F. Final Resolution of Scheduling Disputes: SIG Neutral Track If the Association SIG members elect to pursue the SIG neutral track, the following procedure shall apply. 1. Upon written request by the chairman of the SIG, the SCP shall convene

a Scheduling Dispute Board. The board shall be composed of the SCP, the MEC Chairman, one Company SIG rep and one Association SIG representative. a. The board shall meet within 5 calendar days to review appropriate

data, including the flying history of the disputed pairing(s), at issue and discuss reasonable options on how the disputed pairing can be reconfigured in light of the operational requirements. Both sides shall use their best efforts to resolve the problem.

b. If the disputed pairing can be reconstructed, rebuilt or combined into another pairing so that the overall cost of the pairing is the same or essentially the same as prior to the reconstruction and the change

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does not compromise system form or reliability, then the pairing shall be changed accordingly.

c. Additionally, if on a recurring basis, a pairing, disputed or not, appears in open time and is routinely avoided by pilots trip trading or eligible for make-up, OTP, etc., and therefore must be assigned to a reserve pilot, the above procedure shall apply, unless the Association elects to pursue the VP/MEC Chairman track instead.

2. If a schedule construction issue(s) or pairing dispute(s) is not solved in the SIG, the quarterly meeting, or at the Scheduling Dispute Board levels, the ALPA SIG may choose to submit the dispute to an independent neutral mutually selected by both parties. The neutral shall gather facts, report findings and within 14 calendar days offer a recommendation to the Sr.Senior V.P., Air of Flight Operations Division. The neutral may recommend the course of action that he finds which balances the competing needs and interests of both parties. The cost of the neutral shall be borne equally by both the Company and the Association.

3. The Senior V.P. of AODFlight Operations shall review the findings of the neutral within 7 business days and issue a final decision concerning the matter. That decision shall be final and shall be sent to the neutral, the V.P. Flight Ops, and the members of the SIG.

G. Final Resolution of Scheduling Disputes: VP/MEC Chairman Track The MEC Chairman may elect to notify the Vice President, Flight Operations that he is invoking the VP/MEC Chairman track regarding a particular SIG dispute. The notification shall be in writing and shall state the unresolved concerns/problems and the Association’’s position. Upon receipt, the Vice President, Flight Operations shall promptly have the stated unresolved concerns/problems investigated, including a review of the process undertaken thus far regarding the dispute. After at least one bid period of flying data is gathered on the disputed pairing, the Vice President, Flight Operations shall meet with the MEC Chairman at a mutually acceptable date and time to review the results of the investigation and discuss options for dealing with the unresolved concerns/problems. Following the meeting, the Vice President, Flight Operations shall advise the MEC Chairman in writing of what actions, if any, the Company shall take to address the presented concerns.

H. Removal and Compensation of Association Members of SIG and PSIT 1. Removal

a. The Association members of the SIG shall be removed from flying at the Association’’s notification as provided in Section 18.A.2.a.

b. PSIT members shall be removed from flying as provided in Section 18.A.2.b., provided such members are not requesting removal of an

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activity over a designated corporate holiday. Requests for removal over a holiday shall be processed as provided in Section 18.A.3., unless the build week conflicts with a corporate holiday in which case the removals shall be processed as provided in Section 18.A.2.b.

2. Compensation a. SIG members The Association SIG members shall receive compensation and

benefits as provided in Section 18. b. PSIT members

The primary members participating in a build month shall be compensated by the Company by being removed from scheduled activities with a standard value of 30 CH (12 CH for any FDA with fewer than 35 lines, 18 CH for any FDA with 35 to 55 lines, and 30 CH for any FDA with 55 or more lines) at the discretion of the SIG for each month that he is designated to complete the pairings/line construction cycle for his designated aircraft. Any additional credit hour value shall be reimbursed by the Association in accordance with Section 18, or the pilot shall be eligible to make- up the difference. The Association shall notify the Company whether the excess credit hours are to be removed for Association business or dropped eligible for make-up. If a PSIT member is assigned to work additional days, he shall be removed from scheduled activities with a value of 6 CH for each additional work day, (or portion thereof), and he shall be eligible to make-up the difference between credit hours removed and credit hours earned for PSIT activities. PSIT members shall be entitled to OTP status for any make-up entitlement arising from this paragraph.

I. Resignation A SIG or PSIT member may resign with notice of at least one full bid

period. J. General

1. Office Space for PSIT Members The Company shall provide a closed office space large enough to accommodate the entire PSIT at separate work stations with all supporting equipment that facilitates the line build process.

2. SIG/PSIT Travel and Expenses a. The MEC Scheduling Committee Chairman will provide the Company

a list of the PSIT and Association SIG participants that will be building bid period packages for the following bid period. Except for PSIT members assigned to an FDA, the Company shall provide a

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commercial airline ticket to the SIG/PSIT members to or from Memphis for the build week and other mutually agreed SIG/PSIT work. The Association SIG/PSIT members shall have the ability to utilize their deviation banks and/or business jumpseats to travel to or from Memphis for such activities.

b. The Company shall reimburse an Association member of the SIG or PSIT, consistent with Company policy and subject to approval by the SIG Chairman, for reasonable expenses related to such member’’s SIG/PSIT duties, including, but not limited to, hotels, telephone calls, high speed internet access, transportation (car rental), and meals.

3. Reviewers The MEC Scheduling Chairman shall have the ability to utilize designated pilots to review the preliminary and final pairings. Unless otherwise agreed by the MEC Scheduling Chairman and the SIG Chairman, the number of reviewers shall be limited to 5 per base.

4. Training of SIG/PSIT Members The Company shall reimburse pilots for training required to be a SIG/PSIT member. Reimbursable training is two full build weeks per trainee. Unless otherwise agreed by the Company, reimbursable training shall be limited to a maximum of two PSIT members per month with an annual maximum of eight PSIT members.

Appendix AAppendix A [as agreed by email from ALPA to Company on August 6, 2015 @ 5:40 p.m.] Except to the extent indicated otherwise by specific language in the new CBA, the ratification of the CBA will not change the parties’ course of dealing with regard to soft parameters, pairing templates, etc. 948865

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Section 25 Appendix A

Initial SIG Parameters and Starting Values

Hard Parameters The Company must apply hard parameters in the bid pack construction process unless the Vice President, Flight Operations and the MEC Chairman agree otherwise in writing. Any such agreement may contain conditions and/or limitations, as mutually agreed between the V.P. and the MEC Chairman.

Domestic 1. A pilot shall not be scheduled as a required crew member in excess of 7:35

block hours in a single duty period.

2. When aan air deadhead follows flight deck duty in the same duty period, at least 1:30 shall be scheduled between block-in of the FedEx revenue flight and departure of the deadhead.

3. When aan air deadhead follows flight deck duty in the same duty period, no more than 4 hours shall be scheduled between block-in of the FedEx revenue flight and departure of the deadhead.

4. Any duty period scheduled for a critical period departure(s) shall be limited to 3 departures in the critical period or afterward.

5. Trips that depart domicile in the critical period and return to domicile in the same duty period (out and backs) shall be scheduled to block-in by 10:00 am LBT.

6. If flight deck duty occurs anytime in the critical period, there shall not be a following deadhead within the same duty period, except that the final duty period in a trip may contain such deadhead if the trip is scheduled to terminate in base prior to 10:30 am and the duty period cannot be extended beyond normal scheduled duty limits to accomplish such.[Reserved]

7. The critical duty rig function shall be set at 1.0.

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International 1. No trip shall contain more than two round trip ocean crossings. Upon

completingAfter completion of the first, the second must commence in the next duty period (i.e., the duty period immediately following the completion of the first round trip ocean crossing, the crew must initiate the secondcontain an ocean crossing.)

2. No trip shall be scheduled to have more than 5 different continental arrivals (i.e., Africa, Antarctica, Asia, Australia, Europe, North America, and South America). For purposes of this parameter a duty period that arrives on a different continent, but has a TZD of 3 or fewer shall not count as a separate continental arrival.

3. Gateway City Parameter: a. Following entry at any airport in the United States (Gateway City) from an

international location, an International Pairing shall have no more than two domestic duty periods. The combined total number of operating legs in those two duty periods shall not exceed two. In addition, there shall be no deadhead legs scheduled in the same duty period as an operating leg, and the number of air deadhead legs shall be limited to two.

b. For pairings to which International SIG parameter number 1 (maximum ocean crossings) applies, the gateway city limitation applies to the last arrival at a gateway city from an ocean crossing.

c. Prior to leaving a U.S. Gateway City to an international location, an international pairing shall have no more than two domestic duty periods containing no more than four operating legs total.

4. Flight crews requiring a Second Officer that are scheduled to block-out from domicile between 2200 and 0500 LBT shall not be scheduled in excess of 1 flight of 12 block hours or 2 flights of 10 block hours.[Reserved]

5. An international duty period shall not be constructed in excess of 7+35 block hours without at least three airmen on board (e.g., DC-10 standard crew, MD-11 with RFO).

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Soft Parameters The Company may override a soft parameter(s), provided it gives at least 45 days written notice, prior to the delivery of the preliminary pairings, of its intent to do so and the reasons therefore. Other soft parameters may be added by agreement of the Association and the Company.

Domestic 1 The maximum length of carryover trips for each bid period shall be 7 days in

the subsequent bid period. 2 If a duty period starts in the critical period, and has three landings, such duty

period shall be scheduled to block in by 1000 LBT. 3 A standby period shall not be scheduled in the same duty period as a

deadhead return to base. 4 A domestic multiple day trip shall not be scheduled for a cumulative total of

more than 13 landings in the duty periods that operate in the critical period, unless approved by the SIG.

International

1 If a trip operates in the Asian theatre and transit 5 TZD’s or more, the final landing in any 3-leg duty period must occur between 06000900 and 2000 LT. for the MD11 and between 1200 and 2000 LT for the B777.

2 If a trip transits 5 TZD’s or more and contains a 3 leg duty period with the last landing in mainland China, (e.g., not TPE, HKG), that trip will contain at least a 36 our32 hour layover preceding such duty.

3 If a trip transits 5 TZD’s or more, it will not contain 3 leg duties that terminate in SFS. [Reserved]

4 A duty that begins between the hours 0100-0459 (Local time) shall not contain the following flight sequence (IND-ORD-ANC).

5 If a trip, with an RFO, begins in ANC with a duty starting between 1500-2300, such duty shall be scheduled for 1 landing.

6 If a pairing is scheduled with a CDG-SFSCAN leg immediately followed by a westbound duty period of 5 TZD’s or greater, then a layover of at least 36 hours will precede such westbound duty period.

7 A duty period containing an intermediate stop at SFSCAN shall be scheduled with a maximum of 3 landings.

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SECTION 26 GENERAL A. Aircraft Data Collection Systems

1. Definitions a. Flight Data Recorder means any device, equipment or system

maintained on board an aircraft that transmits and/or records and/or collects inflight data on the subjects of pilot, aircraft component or aircraft performance.

b. Cockpit Voice Recorder means any device, equipment or system maintained on board an aircraft that monitors or records a pilot'’s voice while he is on the aircraft.

c. Inflight data includes, but is not limited to, all aircraft facts and quantitative details recorded and associated with the aircraft’s operation in an alleged incident/event. For purposes of this definition Flight Safety reports are considered inflight data.

2. Information obtained from a flight data recorder or cockpit voice recorder or any other device as described in Section 26.A.5., shall not serve as a basis for discipline or discharge of a pilot. Proficiency or line checks conducted pursuant to any Safety investigation are not considered disciplinary action.

3. Information obtained from a flight data recorder or cockpit voice recorder or any other device as described in Section 26.A.5., shall not be disclosed or released by the Company to a third party except that the Company must release the flight data recorder, voice recorder data or other inflight collection devices to the National Safety Board or, where applicable, to other foreign or domestic governmental accident or criminal investigation agencies for accident/incident investigation purposes.

4. Information obtained from a flight data recorder or a cockpit voice recorder shall not be audited to evaluate or monitor the judgment or performance of an individual pilot or crew. That information, however, may be used for the purpose of evaluating or improving the Company’s training program. In the event that information from a flight data recorder is used in a Company training program, the names of the flight deck crew shall not be disclosed. Cockpit voice recordings may also be used in training but the voices of the flight deck crews shall not be used or reproduced in any manner. Transcripts may be made and recorded by personnel to reproduce the recording on tape or other multi mediamultimedia device. Actual voices of the pilots involved shall never be used.

5. Federal Express Corporation shall only release data from an aircraft data recording and/or data transmitting device, to an individual or entity outside of the Company if required by law, or where the Company desires to

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disclose de-identified data or analysis of such data to a third party solely for the purpose of evaluating aircraft engine or component performance, weather data, or other operational analysis. Information released to a third party shall be de-identified to the maximum extent possible. The Association will be briefed prior to the exchange being made.

6. Should the Company decide to install a new type of instrument or device not previously utilized on Company aircraft which is capable of collecting and/or reporting flight performance data of an aircraft, the Company shall consult with and receive input from the Association prior to installation. The consultation process between the Company and the Association is intended to be a meaningful, constructive, two-way process in which the parties address the suitability of the proposed installation and any issues of pilot concern. This process will occur before a decision is made to install the new device. It is the intent of this paragraph to require only one notification when an installation of such equipment is to be installed on more than one aircraft of a type. It is neither the intent nor the purpose of this paragraph to require notification for purposes of normal or emergency maintenance or flight test work on aircraft.

7. Flight Safety Reports will be sent only to the Flight Safety Department and the contents will only be used by the Flight Safety Department to conduct their investigation. The contents will not be shared with Flight Management or the Federal Aviation Administration (FAA) and will not be used for disciplinary purposes.

8. [Reserved] 9. In the event a FedEx aircraft is involved in an accident/incident/event, the

pilots who comprise the Association’s accident investigators (who have been designated and listed with Jumpseat Administration) will be authorized Business Emergency for jumpseating on a FedEx aircraft in response to the accident/incident/event.

10. Pilots involved in an accident/incident/event will be removed from trips with pay during the investigation, if any. Pilots will be paid training pay as appropriate for the time spent during days off cooperating with any investigation or completing any assigned retraining.

B. Appearance, Uniforms and Accessories 1. The Company may establish and maintain reasonable standards

concerning personal grooming and appearance and the wearing of uniforms and accessories. Pilots shall wear the uniform authorized by the Company.

2. A pilot shall wear his Company identification card so as to be visible on his outer most clothing at all times while on Company property.

3. The cost of the original uniform shall be borne by the Company for all pilots hired on or after May 31, 1999. This allowance shall be $300. The Company shall reimburse a pilot up to $150 per year for replacement of approved uniform items, provided the pilot submits original receipts for items purchased, which shall, to the extent possible, specify the items for

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which reimbursement is requested. Those receipts shall be submitted within 90 days after the date of purchase.Company shall provide all pilots hired on or after the effective date of this Agreement with the following uniform items: a. Pants (2 pair) b. Shirts (5), including 2 pairs of epaulets c. Ties (2) d. Blouse (1) e. Cold-weather/foul-weather parka (1) f. Belt (2) g. Other required uniform items agreed upon by the Company and the

Association. 4. Each calendar year, a pilot may purchase, from a Company-approved

uniform vendor(s), replacements for the required uniform items listed in Section 26.B.3. and/or the optional uniform items (and quantities) listed on the Company’s approved uniform items list. This list may be adjusted from time-to-time by the Company after consultation with the Association’s Uniform Committee Chairman. The Company’s approved uniform vendor(s) shall direct bill the Company for the pilot’s purchases, up to $200 per year, unless a direct bill arrangement is not feasible for the vendor(s), in which case the pilot may purchase items from the approved uniform vendor(s) and be reimbursed by the Company. Any purchases from the Company’s approved uniform vendor(s) over $200 per year shall be the pilot’s responsibility.

5. 4. The recommendations of the Association shall be considered by the Company before making any change in the style, color or material of uniforms. The cost of any Company prescribed change in uniform shall be borne by the Company.

6. 5. The Company shall provide free of charge any insignia prescribed as part of the pilot uniform. The insignia shall remain the property of the Company. A pilot shall bear the cost of replacing the insignia if lost.

7. 6. Unless authorized by the Company, no insignia or non-uniform articles or accessories, other than Company service pins, Association pins, and professional aviation related insignia, shall be worn on the Company uniform. “Professional aviation related insignia” is intended to allow accessories like a DC-10B777 pin, or an F-16 or a commemorative military service pin, but not an embroidered patch on the leather jacket.

8. Pilots who require a maternity uniform accommodation shall be provided an allowance of $200 to purchase a maternity uniform from the Company’s approved uniform vendor(s). If the pilot’s maternity uniform items are not in compliance with future uniform standards, an additional allowance will be provided to bring the pilot’s uniform into compliance.

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C. Applicable Laws and Government Regulations It is understood and agreed that the provisions of this Agreement are subject to all applicable laws and governmental regulations now or hereafter in effect and all lawful rulings and orders of all regulatory agencies now or hereafter having jurisdiction. If any provision of this Agreement is determined to be invalid or contrary to law, the parties shall consult concerning the effect of that law on this Agreement.

D. Bulletin Boards and Mailboxes The Company shall provide ALPA with an enclosed bulletin board in Memphis, Anchorage, Indianapolis, Oakland, Los Angeles, Alliance, Newark, and in the operations area of any FDA. Material that is defamatory, or that attacks individuals, groups, or the Company shall not be posted. The Company shall provide the Association with a locked mailbox in each domicile for the purposes of receiving communications from pilots.

E. Discrimination Except as otherwise mandated or excused by applicable law, the provisions of this Agreement shall apply to all employees covered by it without regard to race, religion, national origin, age, sex or disability.

F. Equipment Damage/Usage 1. A pilot shall not be fined or required to pay for any damage to any Company

equipment unless the damage is caused by the pilot’s intentional misconduct.

2. A pilot shall not be required to pay for any Company required training or for the use of any required training equipment or facilities.

G. Fitness for Duty

All pilots shall report for duty in proper mental and physical condition. H. Gender

Whenever the term “pilot,” “employee,” “crew member” or a gender specific adjective or pronoun is used in this Agreement, the reference applies equally to both the masculine and feminine genders.

I. Interline and Other Employee Services and Discounts 1. Consistent with the Company’s interline agreements with other carriers, if

any, all pilots covered under this Agreement and applicable family members and dependents shall be entitled to the same reduced fare privileges generally afforded or available to full-time Company employees and their families.

2. Pilots shall be provided discounts and be eligible to participate in programs, (e.g., ESPP, tuition refund, MedQuestreimbursement, LifeWorks, Smoking Cessation), to receive Company service awards and to maintain

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membership in the FedEx Credit Association, so long as these discounts, programs and awards are maintained and continue generally for all full time Company employees and/or their families. This paragraph does not apply to programs within the scope of this Agreement.

J. Jumpseats 1. To the extent permitted by law or regulation, pilots shall be given access to

Company jumpseats on terms no less favorable than those provided in the Company jumpseat policy effective January 25, 19981998, and included in the PBB. Procedures for booking and other provisions governing access to Company jumpseats shall be as provided in that policy. The Company shall consult with the Association before approving or terminating any reciprocal jumpseat agreements with other carriers. Jumpseat abuses discovered by flight crews shall be reported through the Association’s Jumpseat Committee chairperson and a response to the result of the inquiry shall be returned to the committee chairperson.

2. A pilot may use a Company staging jumpseat to position himself in Memphisto his base for the start of his scheduled trip in accordance with the following: a. The period beginning at scheduled showtime of a pilot’s inbound

jumpseat and ending 30 minutes after the scheduled termination of his first duty period must be less than 13:30.

b. There must be at least 1:30 hours between the scheduled block-in of the inbound jumpseat and the showtime of the pilot’s trip.

c. A pilot positioning to Memphishis base on a Company jumpseat shall take proactive steps to be aware of any circumstance which could prevent his timely report to work (e.g., potential maintenance, weather or FAA delays, reroutes). A pilot shall notify CRS at the first indication that a bump, cancellation, reroute or delay of his inbound jumpseat may prevent him from checking in by his scheduled showtime.

d. If a pilot positioning to Memphishis base on a Company jumpseat consistent with the provisions of this paragraph cannot report by showtime due to bump, cancellation, reroute or delay of his inbound jumpseat, CRS may remove the pilot without pay. If a pilot is removed under this paragraph, he shall be eligible for make-up (and shall not be eligible for substitution). There is no discipline associated with the removal if the pilot followed the parameters described above.

e. The provisions of Section 26.J.2. are predicated upon the premise that time spent on a pilot scheduled Company jumpseat is not accrued duty time under this contract or the FARs. Should the Company be required to consider time spent on a pilot scheduled Company jumpseat as accrued duty time, Section 26.J.2., shall become null and void immediately.

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3. Cockpit jumpseats on international flight legs over 4 block hours shall not be eligible to be reserved by Company jumpseaters without concurrence of the Captain, or in the event the Captain proves unavailable, then by another member of the flight crew who is available.

K. New Aircraft In Service 1. If the Company wishes to place into operation any aircraft above the

MTOGW limits outlined in Section 1, other than the aircraft for which rates of pay are established in Section 3 of this Agreement, the following shall apply: a. The Company or the Association may, by written request, initiate

conferences to negotiate agreements governing whether that equipment shall be considered a wide-body, narrow-body, or some new category of aircraft for the purposes of pay. Conferences shall commence no later than 30 days following receipt of the written request for those conferences.

b. If no agreement has been reached within 30 days following commencement of conferences, a non-disciplinary panel of the System Board shall be convened as provided in Section 21 for the purpose of establishing whether that equipment shall be considered a wide-body, narrow-body, or some new category of aircraft for the purposes of pay, notwithstanding the provisions of Section 21.A.4. (Jurisdiction of System Board).

c. The decision of the System Board shall be incorporated into this Agreement by reference. If the Company has placed the aircraft in service at a designated rate of pay before the System Board issues its decision, then the rates of pay determined by the System Board shall be applied retroactively.

d. The provisions of Section 31 of this Agreement shall not prevent the operation of Section 26.K.

2. If the Company introduces B737 and/or B757 aircraft, those aircraft will be considered narrow body aircraft. All B777 aircraft shall be considered wide body aircraft.

3. A-380 pay rates are as provided in Section 3.[Reserved] 4. New Aircraft Acquisition Procedures

a. The Company will give the Association notice of its intention to introduce a new aircraft type within thirty days after entering into the contract for procurement of the new equipment type.

b. Following the notice set forth in Section 26.K.4.a., if requested by the Association, the Company and the Association shall meet and consult regarding operational, safety or regulatory issues the Association seeks to raise. Specific areas to be addressed include, but are not limited to: a. Onboard rest facilities; b. Jumpseat Configuration; c. Aircraft configurations and equipment; and

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d. Type of operations planned with aircraft type, including possible pairing designs.

L. New Hire Briefing

A pilot representing the Association will be scheduled 3060 minutes to speak to new pilots during the initial new hire training program. Nothing of a defamatory or personal nature attacking individuals or groups or the Company shall be permitted during the briefings.

M. Passports, Visas and Immunizations 1. Each pilot shall maintain a current passport. The Company shall advise

each pilot of the visas and immunizations he must possess. The Company shall notify a pilot, via VIPS, of the expiration date(s) of his passport and any required visa(s) at least 30 days prior to the expiration date(s). The Company shall reimburse a pilot for the cost of obtaining and renewing his passport and all Company required visas and immunizations.

2. Each pilot shall validate, through VIPS, his renewed passport and required visas by 0900 LBT the day prior to the start of any trip(s) or R-day(s) scheduled to begin either: a. After the expiration date of the pilot’s passport or required visas; or b. Within 48 hours of the expiration date of the pilot’s passport or required

visas. 3. If a pilot does not obtain his renewed passport or required visa(s) as

required by Section 26.M.2., he may be removed from a trip(s) or R-day(s) scheduled to start within the time period stated in Section 26.M.2. without pay and without eligibility for make-up.

N. Personnel

1. A pilot may review and copy his personnel file and training records in their entirety, except for pre-employment related material, in the presence of a Company representative at mutually agreeable times and places. Within 5 days of the Association’s request (which shall include a written release signed by the pilot), the MEC Representation Department will be provided a copy of a terminated pilot’s personnel file and training records.

2. Each pilot shall, if necessary, update his permanent, primary residence address and telephone number in the Company’s PRISM system. Additional addresses may be provided at the pilot’s option, (e.g., paycheck mailing address, corporate mailing address and crew mailbox).

3. A pilot shall be allowed access to Company computer systems to the same extent generally available to all other employees.

O. Polygraph

No pilot shall be required by the Company to take any form of polygraph or lie detector test.

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P. Protection from Damage 1. Except as described below, the Company shall provide, at no expense to a

pilot, legal representation for a pilot named as a defendant in a legal proceeding arising out of the pilot’s operation or attempted operation of a Company aircraft. The pilot has the option to use representation from the Company, consistent with this paragraph, or from ALPA or his own representation.

2. Except as described below, the Company shall indemnify and hold the pilot or his estate harmless for the amount of any monetary judgment rendered personally against the pilot in a proceeding covered by Section 26.P.1., if that judgment arose out of the pilot’s operation or attempted operation of a Company aircraft. For purposes of this paragraph, a proceeding shall be deemed not covered by Section 26.P.1., if the pilot was not entitled to the legal representation described therein, regardless of whether the Company actually provided representation.

3. A pilot shall not be entitled to the benefits described in Section 26.P.1. or P.2., if: a. either the Company or the pilot has initiated the legal proceeding, in

good faith, against the other; or b. the legal proceeding at issue is one in which the pilot has committed

intentional or criminal misconduct; or c. the pilot refuses to cooperate in his own legal defense.

4. The Company shall not sue a pilot for indemnity in connection with any case covered by Section 26.P.1.

5. If a pilot is called by the Company as a witness in connection with a legal proceeding of any description, kind or character for any reason, the pilot shall receive scheduled pay and credit for a trip(s) or R-day(s) dropped, if applicable.

6. The provisions of this paragraph shall not apply in situations of certificate action instituted by the FAA against a pilot, or other situations in which a conflict of interest exists between the Company and the pilot.

Q. Publications/Identification Card 1. The Company shall provide pilots with appropriate navigation

publicationsmaterials as well as aircraft flight and training manuals, and changes to these, necessary for a pilot’s crew status. Upon request, the Company shall mail a pilot's Jeppesen charts to an address designated by the pilotThese materials and manuals may be provided in electronic format.

2. All changes or amendments to current aircraft flight manuals, pilot operating manuals and aircraft checklists affecting flight operations shall be furnished in advance to the Association designee.

3. The Company shall provide each pilot with a copy of this Agreement. The cost of publishing and distributing this Agreement shall be borne equally by the Association and the Company. The Company shall bear the cost of

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providing copies of this Agreement to pilots hired after the effective date of this Agreement.

4. The Company shall provide each pilot with his initial Company identification card. Replacement of lost cards shall be in accordance with Company policy.

5. A pilot may arrange for replacement of itemsthe materials referred to in Section 26.Q.1. through Q.3., by notifying his flight managerFleet Manager. The cost of replacement itemsmaterials shall be borne by the Company. Replacement of the materials referred to in Section 26.Q.1. and 2. does not necessarily include replacement of hardware, if any.

R. Monthly Information

The Company shall provide to the Association, in electronic format, a list containing all pilots’ names, employee numbers, dates of hire, dates of birth, base, crew status permanent mailing address and phone numbers of pilots who have made their phone numbers available in VIPS. The information shall be current as of the last pay period of each month and submitted no later than 25 days after the end of the month.

S. Recorded Phone Lines Pilots’ telephone conversations with the Company may be recorded. Recorded telephone conversations shall be archived by the Company for a period of not less than 60 days.

T. VIPS Inaccessibility A contact otherwise required to be made to VIPS shall be made to CRS or other designated department if VIPS is not accessible. The local access option in VIPS will remain available. This paragraph covers the situation where the VIPS system goes down.

U. Mediated Debrief Information obtained during a mediated debrief shall be subject to the provisions of Section 26.A.2.

V. Random Searches The Company and/or its representatives are prohibited from executing random searches on pilots, unless required by law to do so.

W. FDA 1. All pilots assigned to an FDA are fully covered by all provisions of this

Agreement. 2. If conditions in an FDA require evacuation for a temporary period of time,

the Company shall provide the pilot and his eligible dependents at the FDA with transportation, lodging, and other services appropriate to the situation (e.g., storage of household goods if circumstances warrant, etc.).

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3. If an FDA evacuation lasts longer than 30 days, the Company and the Association shall meet and consult regarding other accommodations that should be made for pilots and their families assigned to the FDA. If a permanent evacuation is required, the Company shall move the pilot and his family, as provided in Section 6, without application of time limits and reimbursement obligations normally accompanying such moves. The consultation process between the Company and the Association is intended to be a meaningful, constructive, two-way process in which the parties address the suitability of the proposed solution and any issues of pilot concern.

X. Administrative Corrections

Typographical or reference errors found in the ratified Agreement or any Letter of Agreement may be corrected by mutual agreement of the Company and the Association, in subsequent reprintings of the contract.

Y. Aviation Safety Action Program 1. Any Aviation Safety Action Program (ASAP) shall have the participation of

the Association as a party. 2. Removal from Flying and Flight Pay Loss

The ALPA ERC representative and/or alternate shall be removed from flying to participate in all ERC activities. The ALPA ERC representative and alternate shall receive compensation and benefits as provided in Section 18.

3. If any pilot is held out of service as part of the ASAP process, the pilot shall continue to have the same access to Company communications systems (e.g., e-mail, VIPS, etc.), and shall continue to accrue all pay and benefits (e.g., seniority, longevity, retirement, vacation, sick leave) as if he had not been held out of service.

4. Neither an ASAP report, the content of an ASAP report, or any corrective action arising from an ASAP report, shall be used in, or constitute grounds for placement in, or considered as any Section 11 training, any Enhanced Oversight Program, or any other similar program and/or training. If, however, a pilot is initially covered under the ASAP program, but is ultimately excluded from the program as provided in ASAP MOU paragraph 11.f. of the ASAP MOU, his case shall be referred to the TRB for any necessary requalification training and further processing under Section 11.K.

5. The Company will make ASAP Report Forms available on pilot.fedex.com.

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6. The Company shall establish and maintain facsimile and telephone numbers as alternative means of filing an ASAP Reportreport. The preferred method for the filing of an ASAP report, however, shall be to do so electronically.

7. The submission or non-submission of an ASAP report, an ASAP report, the contents of an ASAP report, and any conduct, statement, decisions, or recommendations made by those individuals involved in the ASAP process (e.g., the ASAP manager, coordinator(s), ERC, etc.), arising out of such process, shall not be used in or referred to in any Section 11, 19, or 21 process, except as provided in the MOU under paragraph 11.a.(3) of the ASAP Memorandum of Understanding (ASAP MOU), dated December 26, 2012, and any subsequently executed successor ASAP MOUs.

Z. Line Operations Safety Audit Line Operations Safety Audits (LOSAs) shall be conducted pursuant to the February 9, 2010 Memorandum of Understanding entitled “Line Operations Safety Audit.”

AA. Known Crewmember Program The Company shall participate in the Known Crewmember (KCM) Program, or any successor program, provided that the total cost to the Company of such participation does not exceed $250,000 per year.

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SECTION 27 INSURANCE BENEFITS Note: This Section 27 is reprinted verbatim from the negotiated Agreement of October 30, 2006. Some details have changed, however, through processes other than subsequent negotiations [e.g., by operation of the Agreement itself (for instance, contractually prescribed premium increases), vendors ceasing to exist, legally mandated changes, etc.]. Please consult the 2011 Pilot Benefit Book (“PBB”) for the most up-to-date information. A. General

1. The Company shall continue to provide health, welfare and related benefits through the Insurance Plans1 and under the terms and conditions of the Insurance Plans, as in effect on October 30, 2006,[DOS], except as specifically provided herein. The parties to this Agreement understand and agree that there is no intent by either party to create a vested benefit with respect to any benefits provided under any of the Insurance Plans.

2. The Insurance Plans’ summary plan descriptions are currently included in the 20042013 Pilot Benefit Book (PBB), as described in Section 27.A.8. . The PBB shall be updated in accordance with Section 27.A.8.8., to reflect changes made by this Agreement and any other changes made pursuant to Section 27.A.3.

1 The following Insurance Plans are effective in effect as of October 30, 2006:[DOS}:

(a) Federal Express Corporation Basic Life Insurance Policy, as effective October 1, 2005Plan; (b) Federal Express Corporation Optional Life Insurance Policy, as effective January 1, 2003Plan; (c) FedEx Corporation Accidental Death and Dismemberment Insurance Policy, as effective January 1, 2006,Plan

and FedEx Corporation Optional Accidental Death and Dismemberment Policy, as effective January 1, 2006Plan;

(d) FedEx Corporation Business Travel Accident Insurance Policy, as effective January 1, 2006 (to be amended to conform to the LOA dated March 7, 2003, covering pilots performing a CRAF mission)Plan;

(e) Federal Express Corporation CRAF Insurance Policy; (f) (e) Federal Express Corporation Survivor Income Benefit Policy, as effective October 1, 2005Plan; (g) (f) Federal Express Corporation Group Health Plan, as effective January 1, 2006 for Pilots; (h) (g) Federal Express Corporation Retiree Group Health Plan, as effective January 1, 2005 for Pilots; (i) (h) Federal Express Corporation Dependent Care Reimbursement Plan, as effective January 1, 2003Flexible

Spending Account Plan; (j) (i) Federal Express Corporation Health Care Contribution Plan, as effective January 1, 2003; (k) (j) Federal Express Corporation Long Term Disability Plan, as effective June 1, 2003 (to be replaced by Federal

Express Corporation Long Term Disability Plan for Crew Members, to be effective June 1, 2006); andPilots; (l) (k) Federal Express Corporation Health Care Flexible Spending Account Plan for Pilots; (m) Federal Express Corporation Health Reimbursement Plan, as effective January 1, 2004.Arrangement for

Retired Pilots; (n) Group Legal Services Plan for Federal Express Corporation and Affiliated Employers; and (o) Federal Express Corporation Group Long-Term Care Insurance Plan

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3. Amendment of Insurance Plans a. All Insurance Plans are incorporated by reference into this Agreement.

Notwithstanding any language in an Insurance Plan to the contrary, the amendment of an Insurance Plan as it applies to pilots (including but not limited to any change in premiums/contributions, coverage or benefit levels) is subject to the consent of the Association in accordance with the procedures applicable to the amendment of the Agreement, except as provided below in this Section 27.A.3. and in Section 27.C.1.

b. The Company, through its EmployeePilot Benefits Administration Department, shall make all amendments to any or all plans as are required by applicable law. The Company shall provide as much advance notice of such amendments, and corresponding revisions to the PBB, as is practicable. If an amendment to the Insurance Plans or the PBB is required by law, and if there is more than one alternative available under the law with respect to such required amendment(s), then the Company shall present to, and discuss the alternatives with the Association as far in advance of the effective date of the required amendment(s) as is practicable, and if the effectuation of either alternative would result in similar cost to the Company, the consent of the Association to one of the alternatives shall be required for such plan amendment. Such consent shall not be unreasonably withheld. The Association’s consent shall not be required for any amendment described in this paragraph if more than one alternative is available under the law but the effectuation of one or more of the alternatives would result in increased cost to the Company over the other available alternative(s).

c. If any vendor of the Insurance Plans (i) incurs financial distress, such that it no longer meets the Company's contracting requirements, (ii) is sold to, acquired by, or merged with another entity and because of such sale, acquisition or merger is unable to fulfill its contractual obligations to the Company, or (iii) is unable to meet the Company's contracting requirements for the plans contracted for, the Company shall, after notification to the Association, select a vendor to assure that the Insurance Plans are properly supported.

d. The Company may replace those "subordinate vendors" which are mutually agreed upon by the Company and the Association, provided the Company shall first notify and consult with the Association regarding such intended action as soon as practical and explain to the Association the reasons that the "subordinate vendor" is being replaced to better support the Insurance Plans. The current cumulative list of "subordinate vendors" consists of: Davis Vision

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HealthEquity (as new vendor for new HSA/HRA, and as replacement vendor for Dependent Care Flexible Spending Account and Health Care FSAs for Pilots,), Davis Vision (vision benefits), MetLife (Dental and ) or the replacement vendors for vision and dental benefits as described in Section 27.G.13., MetLife (Voluntary Programs), Aetna (Disability program), Jefferson Pilot Lincoln National (Basic Life Insurance and SIB), Prudential (Optional Life Insurance), AIGNational Union Fire Insurance (Accidental Death and Dismemberment and, Business Travel Accident and CRAF/AMC), ADP (COBRA), Ceridian (LifeWorks) and WageWorks (FSA)LifeCare (WorkLife), Mercer HR Services for the Health Reimbursement Arrangement for Retired Pilots.

e. Notwithstanding Sections 27.A.3.c. and d., the Company and the Association shall meet to agree upon any replacement for Wellpoint/BCBS.Anthem or GeoBlue (International Plan).

f. The Company may also amend the Group Health Plan for Pilots, if such amendment is both (i) initiated by a vendor, in accordance with the vendor's contract with the Company, and (ii) not subject to Company direction or discretion.

g. 4. The Group Health Plan for Pilots may be amended as provided in Section 27.A.11.

h. Procedures regarding amendment of Insurance Plans are described in Section 27.A.7.

4. The administration of the Insurance Plans shall remain within the purview of the Company's EmployeePilot Benefits Administration Department and all disputes concerning any claim for benefits shall be settled as described in Section 27.A.6.

5. Insurance Board a. TheAn Insurance Board shall be established for the Insurance Plans.

The Insurance Board shall consist of six members, three of whom shall be designated by the Company and three of whom shall be designated by the Association shall meet at least quarterly. The Insurance Board shall meet at least semi-annually, and at such other times as the Board shall agree. At any meeting of the Insurance Board, the Company members and Association members may be accompanied by individuals they deem appropriate. The Insurance Board shall meet to jointly discuss the cost, collective experience and performance of the claims paying administrators and service providers of the Insurance Plans and to seek to resolve any problems related to the administration of those plans. The Company and the Association may each designate up to three persons who shall attend each such meeting.

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b. The benefits specialists for the Company and the Association shall agree on an agenda for each meeting at least one week in advance of such meetings, and shall notify the Company of any agenda items which need to be addressed at the meeting so that the Company may designate the appropriate personnel to attend on behalf of the Company. Should the meeting be scheduled to cover multiple agenda items, the parties shall exchange a list of attendees based on the agenda items. The meetings held by the Company and the Association pursuant to this provision shall exclude any discussion related to any single claim made by an individual pilot and/or his covered dependents which would be protected by federal or state health privacy laws or properly appealed pursuant to ERISA. De-identified information may be used when necessary to discuss systemic issues.

c. b. The Company and the AssociationInsurance Board may also agree to meet with the claims paying administrators of the Insurance Plans. The Company and the Association shall each designate up to three persons to attend such meetings. The agenda for such meetings must be jointly agreed upon by the Company and the Association at least fourteen (14) days in advance of any such meetings, in order to give all participants, including the claims paying administrators, sufficient opportunity to prepare for such meetings.

d. c. The meetings of the Company and the AssociationInsurance Board (and, if applicable, the claims paying administrators) which are held pursuant to this provision may take place either face-to-face or by conference call, as agreed by the Company and the AssociationInsurance Board.

e. d. Neither the Company members of the Insurance Board nor the Association members of the Insurance Board, and neither the Company representatives nor the Association representatives who attend these meetings, shall be empowered to act as fiduciaries of any Insurance Plan; nor shall the Insurance Board members or representatives of the Company or the Association have the power to modify or interpret the terms of any Insurance Plan. However, either the Company representativesmembers of the Insurance Board or the Association representatives who attend these meetingsmembers of the Insurance Board may suggest modifications to the Insurance Plans to the Company and the Association.

6. Review of benefit denials shall be as follows: a. As described in the Insurance Plans and the PBB, benefit denials shall

be reviewed by the appropriate claims- paying administrator. The

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Company may remove or replace such claims- paying administrators as provided in Section 27.A.3 (above).

b. A pilotclaimant (pilot, former pilot, retired pilot, spouse, child or beneficiary) or authorized representative may appeal a claim which is denied through the claims and appeals process established by the claims- paying administrator. If the pilotclaimant is not satisfied with the decision on appeal, the pilothe/she may either seek review of the decision by the Pilot Benefit Review Board in accordance with the provisions of Section 27.QT. within 120 days of the decision, or opt to pursue a judicial remedy available under ERISA. A pilot’s request for judicial review of an appeal decision under the Employee Retirement Income Security Act (“ERISA”) shall be reviewable by a court of competent jurisdiction under ERISA and such review shall not be barred by the Railway Labor Act (“RLA”). A pilot’s decision to elect a particular course of dispute resolution shall constitute an express waiver of the other. With respect to a pilot. With respect to a claimant challenging his/her individual claim denial under this paragraph, the provisions of Section 27.A.3.a. (incorporating certain plans into the Agreement by reference) shall not afford him/her greater remedies than if such plans had been incorporated solely for the purposes of resolving his individual appeal.

c. Any denial of a claim for benefits, whether on the initial claims or an appeal, that is based on vendor guidelines shall be accompanied by either a copy of such guidelines or specific instructions on accessing such guidelines.

7. Procedures regarding amendment of Insurance Plans shall be as follows:

a. 7. No later than February 27, 2007 (120xxxx xx, 201x (180 days after October 30, 2006DOS), the Company shall provide the Association with proposed amendments effectuating the changes to the Insurance Plans contemplated by this Agreement. The draft amendments will include all modifications to the Insurance Plans that the Company determines are required by the Agreement. The Association will provide the Company with its comments on each draft amendment within 60 days following its receipt of the draft amendment from the Company.

b. Thereafter, in the case of changes to the Insurance Plans that require Association consent pursuant to Section 27.A.3.a., Section 27.A.3.b. or Section 27.A.3.e., the Company shall provide the Association with proposed amendments effectuating the changes, no later than 30 days prior to the proposed effective date of such amendments, and in the case of changes to the Insurance Plans that do not require Association

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consent pursuant to Section 27.A.3.b., Section 27.A.3.c., Section 27.A.3.d. or Section 27.A.3.e.,3, the Company shall provide the Association with executed copies of the amendments effectuating such changes no later than 30 days following the execution of such amendments. With respect to those changes to the Insurance Plans which will be effective January 1, 2008, the Company shall provide the Association with proposed amendments effectuating those changes no later than December 1, 2007.

c. By mutual agreement the parties may waive any time limit provided in this Section 27.A.7.

8. Procedures regarding amendment of the PBB shall be as follows: a. 8. No later than April 28, 2007xxxx xx, 201x (180 days after October

30, 2006, the date of signingDOS), the Company shall provide the Association with proposed updates to the PBB reflecting changes made as part of this Agreement. No later than 60120 days after receipt of the proposed updates, the Association shall meet with the Company and provide comments. As soon as practicable thereafter, a PBB that is mutually satisfactory to the Company and the Association shall be distributed to the pilots. The Association’s approval shall not be unreasonably withheld. The foregoing to the contrary notwithstanding, the failure of the Association to timely approve such updates shall not prevent the Company from distributing the updates to the pilots in accordance with the provisions of 29 U.S.C. §1104(b). The parties acknowledge that updates pertaining to benefit changes that are scheduled to take effect on January 1, 2008, may not be available for inclusion in the 2007 update to the PBBERISA §104(b).

b. With respect to any future updates to the PBB, the Company shall prepare and distribute to the pilots updates to the PBB, as required by 29 U.S.C.ERISA §1104104(b). The Association shall be given the opportunityno less than 60 days to review and approve such updates; the Association's approval of such updates shall not be unreasonably withheld. The foregoing to the contrary notwithstanding, the failure of the Association to timely approve such updates shall not prevent the Company from distributing the updates to the pilots in accordance with the provisions of 29 U.S.C. §1104ERISA §104(b).

9. The parties recognize that the future cost, delivery and structure of health care (including retiree health care) is an area of particular concern to both sides. The parties pledge their mutual cooperation in dealing with new health care initiatives, legislation, regulation and other future health care issues as they might affect both the pilots and the Company.

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10. Medical, dental, vision, optional life, and optional AD&D will be cancelled as a result of a pilot’s failure to pay premiums/contributions, as applicable, while on leave of absence.

11. In the event that any of the Company’s health plans for pilots are projected to generate an excise tax for a calendar year under Section 4980I of the Internal Revenue Code (“Excise Tax”), the Company shall notify the Association by [TBD] of the prior calendar year, and that plan shall be treated in accordance with this Section 27.A.11. as follows: a. Buy-Up Plan Option- For any plan year that the plan is projected to

generate an Excise Tax, the Company will make the following changes prior to annual benefits enrollment for the calendar year to the minimum extent necessary to avoid the Excise Tax.

i. First, the allowable employee pre-tax contribution to the participant’s Full Purpose FSA shall be reduced or eliminated.

ii. Second, the Company and the Association shall invoke the process detailed in the [Side Letter] to reach an agreement on what modifications to the plan’s deductibles, out-of-pocket maximums and/or other provisions should be implemented to avoid the Excise Tax and how the value of any benefit reductions resulting from such modifications shall be provided to the Pilots.

b. Purple CDHP Option and/or Orange CDHP Option- For any plan year

that a plan is projected to generate an Excise Tax, the Company will make the following changes prior to annual benefits enrollment for the calendar year to the minimum extent necessary to avoid the Excise Tax. i. First, the allowable employee pre-tax contribution to the

participant’s Full Purpose FSA (CDHP with HRA) or Limited Purpose FSA (CDHP with HSA) shall be reduced or eliminated.

ii. Second, the employee’s pre-tax contribution to the participant’s HSA shall be reduced or eliminated, and moved to an after-tax contribution.

iii. Third, the Company’s contribution to each participant’s HSA/HRA for wellness incentives shall be reduced or eliminated, such reduction shall be paid to the participant in cash.

iv. Fourth, the Company’s other contributions to each participant’s HSA/HRA shall be reduced or eliminated.

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If there is a reduction pursuant to Section 27. A.11.b.iv, the pilot’s monthly contributions for coverage will be reduced simultaneously by a corresponding amount, provided, however, that the resulting contributions will not fall below 50% of the contribution amounts established for that calendar year in paragraph 27.G.6.

v. Fifth, the Company and the Association shall invoke the process detailed in the [Side Letter] to reach an agreement on what modifications to the plan’s deductibles, out-of-pocket maximums and/or other provisions should be implemented to avoid the Excise Tax and how the value of any benefit reductions resulting from such modifications shall be provided to the Pilots.

c. If the law governing the Excise Tax is modified or clarified, the parties shall meet to discuss and agree how any such changes shall be reflected in the plans.

B. Basic Life Insurance Plan

1. The Company shall continue to provide Basic Life Insurance coverage. A pilot must comply with the eligibility requirements of the Basic Life Insurance plan or lose or risk losing coverage. Coverage levels for Basic Life Insurance shall not be decreased.

2. Basic Life Insurance Plan premiums shall be paid by the Company. 3. The life insurance benefit provided under the Basic Life Plan with respect

to any pilot whose date of death is prior to January 1, 2007, shall equal one and one-half times such pilot's basic annual salary (rounded to the nearest $1,000) up to a maximum of $100,000. This amount shall be reduced by 8% a year for pilots age 65 to 70, after which there shall be no further reduction.The life insurance benefit provided under the Basic Life Plan with respect to any pilot whose date of death is on or after January 1, 2007, shall equal $800,000. On and after April 1, 2007, the pilot may elect pursuantPursuant to the procedures established by the insurance carrier, the pilot may elect to receive coverage for a lower life insurance benefit amount, in any multiple of $100,000, with a minimum of either $300,000, $400,000 or $500,000, in lieu of $800,000. During each annual enrollment period, a pilot who is actively at work may elect to receive a different coverage amount, as described herein, and such election shall be effective on the date provided by the insurance carrier. Should a pilot elect to increase his coverage amount, he must provide such proof of insurability as is required by the insurance carrier.

4. Coverage under the Basic Life Plan begins for a pilot upon his date of hire, or if later, the first day he is actively at work.

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5. Coverage under the Basic Life Plan shall end as provided in the policy and PBB.

6. Other restrictions, requirements and limitations of the Basic Life Plan are described in the policy and the PBB.

C. Optional Life Insurance Plan

1. The Company shall continue the Optional Life Insurance Plan. A pilot must comply with the requirements of the plan or lose or risk losing coverage. Coverage levels shall not be decreased. ExceptUntil the effective date of a new insurance policy under Section 27.F.1., except for routine and scheduled premium adjustments caused by a pilot moving between rated age categories, a non-retired pilot’s premium payments for equal amounts of coverage shall not be increased. Upon the effective date of a new insurance policy under Section 27.F.1., routine and scheduled premium adjustments caused by a pilot moving between rated age categories and premium increases/decreases imposed by the vendor will be paid by the pilot.

2. With respect to a pilot whose date of death is before January 1, 2007, the A pilot may elect to purchase Optional Life Insurance coverage in increments of $100,000 to a maximum of $1,000,000 of coverage, at the premium rate provided by the insurer for such coverage. A pilot's Optional Life Insurance Plan provides 1.5coverage shall not exceed ten (10) times the pilot's basic annual salary (rounded to the nearest $1,000) up to a maximum of $100,000, or 3 times the pilot's basic annual salary (rounded to the nearest $1,000) up to a maximum of $300,000, as elected by the pilot. This amount shall be reduced by 8% aeach year for pilots beginning at age 65,on the pilot’s 65th birthday as shown onin the following table: 92% continued at age 65 84.64% continued at age 66 77.87% continued at age 67 71.64% continued at age 68 65.91% continued at age 69, after which there shall be no further reduction. With respect to a pilot whose date of death is on or after January 1, 2007, but before April 1, 2007, such pilot’s Optional Life Insurance Plan coverage will be increased to an amount equal to the nearest $100,000 increment (up to a maximum of $300,000), based on such pilot’s most recent election. This amount shall be reduced by 8% a year for pilots beginning at age 65, as shown above.

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Effective as of April 1, 2007, a pilot may elect to purchase Optional Life Insurance coverage in increments of $100,000 to a maximum of $1,000,000 of coverage, at the premium rate provided by the insurer for such coverage. A pilot's Optional Life Insurance Plan coverage shall not exceed 10 times the pilot's basic annual salary (rounded to the nearest $1,000). This amount shall be reduced by 8% a year for pilots beginning at age 65, as shown above. In order to make the election referenced in this paragraph, a pilot must be actively at work on the date that he makes such election and his date of death must be on or after the date of the election. The coverage level for a pilot who is not actively at work on April 1, 2007, will increase to the nearest $100,000 increment. This amount shall be reduced by 8% a year for pilots beginning at age 65, as shown above. Additionally, a pilot may purchase Optional Life Insurance coverage of $25,000 for his spouse, $5,000 for dependent children six months and older and $1,000 for dependent children younger than six months old (child must be alive at birth).

3. Eligibility for coverage under the Optional Life Plan begins for a pilot upon his date of hire, or if later, the first day the pilot is actively at work. If a pilot fails to complete the enrollment procedure described in the policy and the PBB within the first 31 days after his date of hire, he may enroll in the Optional Life Plan; however, he may only enroll under the Optional Life Plan upon providing proof of insurability to the insurance company that underwrites the Optional Life Plan, or during open enrollment periods, should they be offered to all pilots.

4. An individual pilot’s coverage under the Optional Life Plan shall end as provided in the policy and the PBB.

5. A pilot who is enrolled in the Optional Life Plan and who (i) retires on or after October 30, 2006, (ii) retires on or after his 55th birthday, and (iiiii) is active at work immediately prior to the date of his retirement, may, within 31 days of the later of his retirement date or the date on which he receives notice, enroll in Optional Life insurance for retirees at the premium rate provided by the insurer for such coverage. Such coverage may be purchased in increments of $100,000, to the lesser of $300,000 of coverage (or such higher amount as the Optional Life insurance policy may specify) or the pilot's pre-retirement Optional Life coverage level, as elected by the pilot. Additionally, a retiring pilot may purchase a maximum of $25,000 coverage (or such higher amount as the Optional Life insurance policy may specify) on his spouse, provided the spouse had Optional Life insurance coverage prior to the pilot's retirement; coverage for a spouse may only be continued while coverage is in effect for the pilot. No increases in coverage will be allowed after enrollment; however,

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a pilot who elected coverage in an amount greater than $100,000 shall be permitted to reduce the amount of coverage, but not below $100,000. The life insurance benefitThis amount shall be reduced by 8% aeach year for pilots beginning at age 65, as shown in Section 27.C.2. above. on the pilot’s 65th birthday, as shown in the following table: 92% continued at age 65 84.64% continued at age 66 77.87% continued at age 67 71.64% continued at age 68 65.91% continued at age 69, after which there shall be no further reduction.

6. Coverage shall terminate at the pilot's attainment of age 80, at which time the pilot may elect to convert his Optional Life insurance coverage to coverage under an individual insurance policy.

7. 6. A pilot who is enrolled in the Optional Life Plan and who (i) terminates on or after October 30, 2006, (ii) terminates before his 55th birthday, and (iiiii) is actively at work immediately prior to the date of his termination may, within 31 days of the later of his termination date or the date on which he receives notice, enroll in Optional Life Portability insurance at the premium rate provided by the insurer for such coverage. Such coverage may be purchased up to the lesser of the pilot's pre-termination Optional Life coverage level or $1,000,000 not to exceed five (5) times the amount of pre-termination salary. The minimum amount of coverage is $20,000. Additionally, a terminating pilot may purchase a maximum of $25,000 coverage on his spouse and $5,000 on eligible children, provided the spouse had Optional Life insurance coverage prior to the pilot's termination and dependents are not home-confined or hospital-confined on the day prior to the pilot's termination; dependent coverage may only be continued while coverage is in effect for the pilot. No increases in coverage will be allowed after enrollment; however, a pilot who elected coverage in an amount greater than $20,000 shall be permitted to reduce the amount of coverage. The life insurance benefit will reduce to 60% at age 65 and 50% at age 70. Coverage shall terminate at the pilot's attainment of age 80, at which time the pilot may elect to convert his Optional Life Portability Insurance coverage to coverage under an individual policy.

8. Subject to Section 27.C.1., pilots enrolled for coverage in the Optional Life Plan will pay all premiums required by the insurer

9. As of the date the vendor is selected in accordance with Section 27.F.1., the insurance company for the Optional Life Insurance Plan shall not be

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the same insurance company then in place for the FDX MEC life insurance policy.

D. Basic and Optional Accidental Death and Dismemberment Insurance

Plan 1. The Company shall continue the Basic and Optional Accidental Death

and Dismemberment Insurance Plan (AD&D). A pilot must comply with the requirements of the plan or lose or risk losing coverage. Coverage levels shall not be decreased during the term of this Agreement. A pilot’s premium payments, if any, shall not be increased for equal amounts of coverage.

2. Basic AD&D Plan premiums shall be paid by the Company; Optional AD&D Plan premiums shall be paid by the pilot. Premium amounts for the optional coverage are provided in the AD&D Plan and the PBB.

3. The life insurance benefit provided under the basic portion of the AD&D Plan shall be fifteen thousand dollars ($15,000). The life insurance benefit available under the optional portion of the AD&D Plan shall be available in increments; the first increment shall be thirty-five thousand ($35,000) and all additional increments shall be fifty thousand dollars ($50,000), up to a maximum optional benefit of two hundred thirty-five thousand dollars ($235,000).

4. Eligibility for coverage under the optional portion of the AD&D Plan begins for a pilot upon his date of hire. Coverage under the optional portion of this plan shall begin on the first day of the month following the pilot's completion of the application procedure described in the PBB and upon the payment of the required premium. If Optional AD&D coverage is elected during the Annual Enrollment period, coverage is effective January 1 of the following year. Coverage under the basic portion of this plan shall begin upon a pilot's date of hire, or if later, the first day he is actively at work.

5. Coverage under the AD&D Plan shall end as provided in the policy and the PBB.

6. Other restrictions, requirements and limitations of the AD&D Plan are described in the AD&D policy and the PBB.

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E. Business Travel Accident Insurance Plan and CRAF Accident Insurance Plan 1. E. The Company shall continue the Business Travel Accident Insurance

Plan on the following terms: a. 1. The Company shall continue the Business Travel Accident

Insurance Plan. A pilot must comply with the requirements of the planPlan or lose or risk losing coverage.

b. 2. Business Travel Accident Insurance Plan premiums shall be paid by the Company.

c. 3. The life insurance benefit provided under the Business Travel Accident Insurance Plan shall be $150,000 if a pilot is traveling on Company business, including: (i) flying a Company aircraft as part of his occupation, or (ii) while traveling on Company business on any aircraft that is owned, rented, chartered or leased by the Company, even if the travel is for pleasure. The dismemberment provisions of the Travel Accident Plan are described in the PBB. They provide for a percentage ranging from 25% to 100% of the death benefit under the Travel Accident Plan to be paid upon a covered loss. Covered losses and the applicable dismemberment coverage amounts are listed in the Travel Accident Plan, policy, certificate, and the PBB.

d. 4. Coverage under the Business Travel Accident Insurance Plan begins for a pilot upon his date of hire.

e. 5. Coverage under the Business Travel Accident Insurance Plan shall end as provided in the policy and the PBB.

f. 6. A pilot shall be covered from the time he starts a business trip from either work or home, whichever occurs last, and shall be covered throughout the business travel until returning to work or home, whichever occurs first. A pilot shall not be covered while commuting to and from work. For purposes of this paragraph, “work” shall include the airport in which deadhead or deviation travel originates or terminates, as applicable. A pilot who deviates is considered to be on business travel while traveling pursuant to the provisions of Section 8. 8 of this Agreement. Other restrictions, requirements and limitations are described in the Business Travel Accident Insurance Plan, policy, and the certificate, and the PBB.

F. Survivor Income Benefit Plan 2. 1. The terms and conditions of the survivor benefit provided byCompany

shall continue the CRAF Accident Insurance coverage under the Federal Express Corporation Survivor Income Benefit Plan (the "FedEx SIB"), as described in the FedEx SIB policy and the PBB, shall continue with

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respect to pilots who die prior to January 1, 2007. Pilots who die on or after January 1, 2007, shall not be covered by the FedEx SIB.Business Travel Accident (BTA) Plan on the following terms: a. 2. SIBCRAF Accident Insurance Plan premiums shall be paid by the

Company. b. In the event of a pilot’s death while performing a CRAF mission

(defined as a trip(s) that qualifies for the CRAF premium), the coverage shall provide an additional $200,000 of benefits to the surviving beneficiaries up to an aggregate limit of $2,000,000 per aircraft in accordance with Paragraph D. of the CRAF LOA executed July 10, 2003.

c. Coverage under the CRAF Accident Insurance Plan begins and ends as set forth in the CRAF LOA executed July 10, 2003 in Paragraph D.

d. A pilot shall be covered from start through the conclusion of the flight sequences that qualify him for the CRAF premium. Other restrictions, requirements and limitations are described in the CRAF Accident Insurance Policy.

F. Life Insurance RFPs

1. Within 12 months following DOS, the Company will commence a Request for Proposals (RFP) among insurers, to bid on the Basic and Optional Life, Basic and Optional Accidental Death and Dismemberment (AD&D), Business Travel Accident (BTA) Insurance and CRAF Accident Insurance Plans with the intent that insurer(s) be selected and new group policies be effective no later than the January 1 immediately following 18 months from DOS. The Company and the Association will establish an Optional Life Working Group (OLWG), consisting of two members appointed by the Company and two members appointed by the Association (who, in either case, may be accompanied by individuals they deem appropriate), to perform the following duties with respect to the RFP for the Optional Life and Optional AD&D: development of plan design components and RFP criteria, identification and interviewing of candidates, receipt and review of candidates’ presentations, discuss RFP results and make recommendations to the Company (recommendations may be made by the OLWG as a whole or by individual members or groups of members of the OLWG.). The coverage amounts of Optional Life insurance available shall be no less than the coverage amounts currently available, although the OLWG may consider terms of coverage that differ from the terms currently available. All material terms of coverage for Basic Life, Basic AD&D, BTA, CRAF Accident Insurance and Optional AD&D shall be no less favorable than terms of coverage currently available. The Company

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shall pay the full cost of the RFP process, other than the expenses of the OLWG members appointed by the Association. Promptly following the RFP process, and taking into account the OLWG’s recommendations regarding Optional Life and Optional AD&D, the Company shall select the insurers for all coverages included in the RFP. The Company will first notify and consult with the Association regarding such intended action as soon as practical and explain to the Association the reasons that the vendor is being chosen to better support the Insurance Plans.

2. In the event a new Basic and Optional Life, Basic and Optional AD&D, BTA or CRAF Plan is established under Section 27.F.1., the Company and the Association shall modify Section 27 to the extent necessary to conform to the terms of the Plan.

G. Group Health Plan for Pilots

1. The Company shall provide to domestic based pilots and pilots based in FDAs (and their eligible covered spouses and dependents) medical benefits (including pharmacy and behavioral, mental health/ and substance abuse benefits), dental benefits and vision benefits, in accordance with the terms of the Federal Express Corporation Group Health Plan, as amended effective January 1, 2006. for Pilots. A pilot must comply with the requirements of the Plan, as in effect on January 1, 2006, orGroup Health Plan for Pilots or will lose or risk losing coverage. Any changes to the Group Health Plan or the PBB regarding the Group Health Planfor Pilots can only be made as provided in Section 27.A.3.

2. [RESERVED]. 3. For domestic based pilots, the Company shall provide medical benefits

(including pharmacy, mental health and substance abuse benefits) under the Group Health Plan for Pilots, administered by Anthem. The Health Savings Account (HSA), as described in Section 27.N, and the Health Reimbursement Account (HRA), as described in Section 27.O. shall be administered by HealthEquity. Effective January 1, 2017, the Company shall provide the Plan options as described in Section 27, Appendix A. For domestic based pilots, effective January 1, 2017, the Company shall provide dental and vision benefits as described in Section 27, Appendix A (except as modified pursuant to Section 27.G.13.).

4. 2. In 2007, the Company shall provide the same group health benefit options as those provided in 2006, and will also provide (except in California) open access under the CIGNA POS and CIGNA Network Plans. For coverage in 2007, the amounts of the monthly premiums payable by participants will be the same as the amounts payable for coverage in 2006.For pilots based in FDAs, the Company shall provide

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medical benefits (including pharmacy, mental health and substance abuse benefits) under the Group Health Plan for Pilots through a fully insured International Plan administered by GeoBlue. Effective January 1, 2017, the International Plan option is described in Section 27, Appendix C. Dental benefits and vision benefits are the same as those provided to domestic based pilots, unless different dental and vision benefits are implemented pursuant to Section 27.G.13.

5. 3. Effective January 1, 2008, the Company shall provide the Base and Buy-Up group health benefit options, through Wellpoint/BCBS, as described in Section 27, Appendix A. A pilot may elect coverage for medical/ benefits only (including pharmacy/, mental health and substance abuse benefits only (through WellPoint/BCBS), dental benefits only, vision benefits only, or any combination. For 2008 and beyond, monthly premiums will be based on four separate coverage tiers.4. The amounts of the monthly premiums payable for all group health benefits will be as follows:Monthly premiums/contributions will be determined separately for each of the following tiers: pilot only, pilot and child(ren); pilot and spouse; and pilot and family. a. Monthly premiums for 2008 are as follows:

i. For all coverages (medical/pharmacy, dental and vision):

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6. The Company will provide the Association with the initial monthly

contributions/premiums for all Group Health Benefits at DOS, or as soon as practicable thereafter. Beginning in 2017, in accordance with Section 27.A.11., those monthly contributions/premiums for each tier of each plan shall be as follows:

Plan Options

Pilot Cost Share

Buy Up

18% (as of January 1, 2017)

19%

(as of January 1, 2018)

20%

(as of January 1, 2019 and thereafter)

CDHP Purple with HSA/HRA

CDHP Orange with

HSA/HRA

International*

16%

15%

17%

Dental, Vision and HMO 17%

* For pilots based in FDAs, the monthly premium/contribution shall not exceed the amount of the monthly premium/contribution for the same coverage tier in the plan option with the highest monthly contribution offered to domestic-based pilots

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Base Plan

Buy-Up Plan

Pilot $20.00 $50.00

Pilot + Child(ren)

$80.00 $120.00

Pilot + Spouse $95.00 $140.00

Pilot + Family $120.00 $190.00

Note: If dental coverage is not elected, subtract from the above premium the applicable amount from Section 27.G.4.a.ii. below, and if vision coverage is not elected, subtract from the above premium the applicable amount from Section 27.G.4.a.iii. below.

ii. For dental coverage only:

Base Plan

Buy-Up Plan

Pilot $3.00 $5.00

Pilot + Child(ren)

$12.00 $15.00

Pilot + Spouse $13.00 $16.00

Pilot + Family $14.00 $19.00

iii. For vision coverage only:

Pilot $2.00

Pilot + Child(ren)

$4.00

Pilot + Spouse $4.00

Pilot + Family $6.00

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b. Monthly premiums for coverage in 2009 and 2010 may increase, but

not by more than 10% over the monthly premiums for the immediately preceding year; provided, however, the sum of the increases for both 2009 and 2010 may not exceed 15%. For example, if the monthly premiums for 2009 are 8% higher than the monthly premiums for 2008, then the monthly premiums for 2010 can be no more than 7% higher than the monthly premiums for 2009.

c. For 2011 and beyond, the monthly premiums may increase, but not by more than 6% over the monthly premiums payable for the immediately preceding year.

The total projected costs for 2017 and each calendar year thereafter will be determined by an actuary selected by the Company and will be developed from the experience of all pilots and eligible dependents participating in medical, dental and vision coverage, excluding fully-insured options. The Company’s actuary will use reasonable actuarial assumptions and methods that are designed to determine such total projected costs in the actuary’s best professional judgment. By June 15th of each year, the Company will provide to the Association the actuary’s detailed preliminary determination of what the total projected costs will be in the following calendar year. At the Association’s request, the Company and the Company’s actuary will meet with the Association and the Association’s actuary to present and review the Company actuary’s detailed analysis. The Association may provide comments on such analysis by July 7th, and the Company’s actuary will consider such comments in making its final determination of total projected costs. For example, by June 15, 2016, the Company will provide to the Association the actuary’s detailed preliminary determination of the total projected costs for 2017, and the Association may provide comments on such analysis by July 7, 2016. As soon as practicable following the end of 2017 and each calendar year thereafter, the total projected per capita costs for all pilots and survivors paying active rates for that calendar year will be compared to the actual costs for that calendar year. This comparison will be performed in the aggregate for the Buy Up and CDHP options, and separately for dental benefits and vision benefits. The Company will meet with the Association to present these results. If the actual costs are more or less than the total projected costs (outside a corridor of +/- 3%), the difference times the year’s contribution percentage shall be applied to each coverage tier for the next year’s contributions for all pilots and survivors paying active rates participating in that coverage tier in the next calendar year; provided, however, that total monthly contributions for any coverage tier will be not

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more than 10% over the monthly contributions payable for such coverage tier for the immediately preceding calendar year. Example: As soon as practicable in 2018, the total projected per capita costs for all pilots and survivors paying active rates for 2017 will be compared to the actual costs for 2017, and if the actual costs are more or less than the total projected costs (outside a corridor of +/-3%), the difference times the 2017 contribution percentage shall be applied to 2019’s contributions for all pilots and survivors paying active rates participating in 2019; provided that the total monthly contributions for any coverage tier will not be more than 10% over the monthly contributions payable for such coverage tier for 2018.

7. 5. The Company will offer to pilots (and their covered spouses and dependents) coverage under any HMO that the Company offers to any other employee, on terms no less favorable than the terms offered to any other employee. It is understood that the Company may discontinue coverage under any HMO.plan options for those pilots and eligible dependents living in Hawaii on terms no less favorable than the terms offered to any other employee, as required by state law.

6. As of October 30, 2006, but prior to January 1, 2008, coverage under the Group Health Plan for pilots and their eligible spouses and eligible dependents shall be as described in the Plan and the PBB. The Group Health Plan shall continue to provide that the spouse and eligible dependents of an active pilot who dies while an active employee will remain in the Company’s Group Health Plan for 24 consecutive months following the pilot’s death at the employee dependent coverage premium. Thereafter, the spouse/dependents shall be eligible to begin their period of COBRA coverage, which is 36 months. Effective January 1, 2008, the Group Health Plan shall continue to provide that the spouse and eligible dependents of an active pilot who dies while an active employee will remain in the Company’s Group Health Plan for 24 consecutive months following the pilot’s death at the employee dependent coverage premium. Thereafter, the spouse/dependents shall be eligible to begin their period of COBRA coverage, which is 36 months. Effective as of October 30, 2006, the Group Health Plan and the Retiree Group Health Plan shall be amended to provide that when an active employee age 55 or older dies after satisfying the eligibility requirements for Retiree Health Coverage, eligible dependents can participate in the Retiree Group Health Plan for two years at the cost in effect before the employee’s death and, after two years, eligible dependents can continue coverage by paying the full cost, including the part that was paid by the Company until: (1) with respect to a dependent who is a surviving spouse, the date on which such dependent attains age 65 (or becomes Medicare

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eligible), or (2) with respect to a dependent who is a child of the pilot, the date on which such child no longer satisfies the definition of “dependent” as set forth in the Plan. Eligible dependents must decide if they wish to elect coverage under the Retiree Group Health Plan, but if they obtain or retain coverage under a Company-sponsored health plan (as the dependent of an active employee, or as an active employee, or by electing COBRA), they may elect coverage under the Retiree Group Health Plan but defer participation in that plan until the other coverage terminates. Eligible dependents may continue to participate in the Group Health Plan for the 36-month COBRA continuation period, subject to payment of the COBRA coverage rate (102% of cost) for the applicable coverage tier.

8. In the case of death of a pilot while on the seniority list, the pilot’s eligible surviving spouse and eligible surviving dependents will be eligible for coverage under the Group Health Plan for Pilots and/or the Retiree Group Health Plan for Pilots.

9. 7. Coverage under the Group Health Plan for Pilots ends for a pilot and his eligible, covered dependents as provided in the Group Health Plan and the PBBfor Pilots.

10. 8. Payment of benefits from the Group Health Plan for Pilots is subject to the Plan’s right to reimbursement/subrogation, as described in the reimbursement/subrogation provisions of the Plans and as administered by the Company's agent for all other employees of the Company.

11. 9. Other restrictions, requirements and limitations on each ofin the Group Health Plan optionsfor Pilots described above are set forth in the Group Health Plan and the PBB, and, effective January 1, 2008, Section 27, Appendix Afor Pilots.

12. On January 1, 2017, the Company will offer Anthem’s Health Rewards program (wellness program) for pilots and eligible spouses enrolled in the CDHP Purple and Orange options. After completing a Health Assessment and participating in two (2) wellness programs, the pilot and the pilot’s eligible spouse will each earn $300 to be deposited in the HSA (or credited to the HRA as applicable) annually (as soon as practicable after January 1). All information and data submitted by a pilot or a pilot’s spouse related to Health Assessments and wellness programs shall be protected health information that shall not be used by the Company or Anthem for any purpose other than administration of the Group Health Plan for Pilots. The entire cost of amounts earned under this Section 27.G.12. shall be borne by the Company and shall not be included in total projected costs or actual costs under Section 27.G.6.

13. Within six months following DOS, the Company will commence a Request for Proposal (RFP) among vendors, to bid on the dental and vision

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benefits for domestic based pilots and pilots based in FDAs, with the intent that any change(s) in vendor(s) be effective as soon as practicable following [DOS]. Except for monthly premiums/contributions, the material terms of dental and vision benefits shall be no less favorable than the terms in effect before DOS, including the modifications described in Section 27, Appendix A. The RFP will seek fully insured and self-insured bids. The RFP for dental benefits will inquire whether the vendor is able to administer the FAIR Health benchmarks, in lieu of R&C, with respect to out-of-network dental benefits. The Company and the Association will establish a Dental and Vision Working Group (DVWG), consisting of two regular members appointed by the Company and two regular members appointed by the Association. The DVWG will perform the following duties with respect to the RFP: development of plan design components and RFP criteria, identification and interviewing of candidates, receipt and review of candidates’ presentations, discuss RFP results, and make recommendations to the Company (which recommendations may be made by the DVWG as a whole or by individual members or groups of members of the DVWG). The Company shall pay the full cost of the RFP process, other than the expenses of the DVWG members appointed by the Association. Following the RFP process, and taking into account the DVWG’s recommendations, the Company will select new vendors for the dental and vision benefits or will retain the current vendors, and first notify and consult with the Association regarding such intended action as soon as practical and explain to the Association the reasons that the vendor is being chosen to better support the dental and vision benefits for pilots. The dental and vision vendors chosen will be implemented no later than January 1 immediately following 12 months from selection.

14. The Group Health Plan for Pilots shall be amended effective January 1 following six months after [DOS], to provide for the following: a. Provide coverage for:

i. A pilot’s spouse who is in U.S. military service. ii. A pilot’s spouse who is an employee of the Company (or an affiliate

of the Company). However, the spouse cannot be covered both as an employee and as a dependent.

b. Hearing aids, repairs, batteries and appliances, up to $5,000 every three years (per participant).

c. Acupuncture based on Anthem’s or GeoBlue’s guidelines, as applicable.

d. Dental implants for non-accidents as Class IV service and eliminate the lifetime dental benefit.

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e. The following new vision benefits: (i) one routine eye exam once every calendar year (rather than every 12 months), (ii) one pair of frames every two calendar years (rather than every 24 months), one pair of lenses every calendar year (rather than every 12 months), and (iv) contact lenses every calendar year (rather than every 12 months).

15. The Company will facilitate transparency in the pricing and quality of health care providers (including facilities) by continuing to provide access to a rating system/solution provided that such a system is offered by Anthem (unless the Company and the Association agree upon a different or supplemental system).

16. The Group Health Plan for Pilots shall provide that determination of the premiums/contributions to be paid by a pilot’s survivors for health coverage (assuming the survivors are eligible for survivor health coverage under the foregoing provisions of Section 27.G.) shall be as follows, where the pilot’s survivors, prior to the pilot’s death, were covered, along with the pilot, as a single group under a single coverage tier. The Company will provide survivor health coverage, under the foregoing provisions of Section 27.G. to all of the eligible survivors as a single group under a single coverage tier. The Company will send one information packet to the surviving spouse; if there is not a surviving spouse, the packet will be sent to the oldest child. If all survivors agree on a single coverage tier, only one survivor (the surviving spouse if there is one, otherwise the oldest child) will be charged for the coverage. If all the survivors cannot agree on a single coverage tier, then the survivors will divide themselves into as many separate groups as desired, with the goal of having the least number of coverage groups possible. Each coverage group will be charged for coverage at the applicable rate for that group’s coverage tier. For each coverage group, only one survivor (the surviving spouse if there is one, otherwise the oldest child in the coverage group) will be charged for the coverage. An adult survivor may elect to leave a coverage group and elect either to maintain coverage at the rate applicable to the survivor as an individual (assuming the survivor continues to be eligible for survivor health coverage) or to maintain no coverage, but once an adult survivor elects to leave a coverage group, he or she may not elect to return to that coverage.

H. Retiree Group Health Plan for Pilots (Coverage for Retirees and Eligible

Survivors) 1. The Company shall provide medical benefits (including pharmacy,

behavioral, and mental health and substance abuse benefits), dental benefits and vision benefits to pilots who have retired on or after February 4, 1999, and their eligible covered spouses and dependents, and their

464


eligible survivors, in accordance with the terms of the Federal Express Corporation Retiree Group Health Plan, as amended effective January 1, 2005. for Pilots. A pilot must comply with the requirements of the Retiree Group Health Plan, as in effect on January 1, 2005, for Pilots or lose or risk losing coverage. Any changes to the Retiree Group Health Plan or the PBB regarding the Group Health Plan for Pilots can only be made as provided in Section 27.A.3.

2. A retiring pilot is eligible for retiree coverage under the Retiree Group Health Plan for Pilots if he: a. was hired before January 1, 1988, is at least 55 years old, and has 10

years of permanent continuous service with the Company after age 45;

b. was hired on or after January 1, 1988, or was a Flying Tiger employee who began to work for the Company on August 7, 1989, and is at least 55 years old, and has 20 years of continuous service after age 35 (Flying Tiger continuous service plus FedEx permanent continuous service); or

c. is at least age 60 with at least five years permanent continuous service immediately prior to age 60..

For purposes of this paragraph, “continuous service” means service that begins on the first day of employment with the Company in a permanent full-time or permanent part-time position and which is uninterrupted by resignation, retirement, discharge, reduction in force of more than two years, or reversion to a nonpermanent position.

3. Coverage under the Retiree Group Health Plan for Pilots for a retired pilot and for the eligible survivors of active and retired pilots shall be as set forth under Section 27 Appendix B and the plan document, except as followswhich includes the following: a. With respect to (i) pilots who retire on or after February 4, 1999, but

prior to January 1, 2008, after having satisfied the eligibility requirements for coverage under the Retiree Group Health Plan, and their eligible spouses and dependents, (ii) survivors of active and retired pilots who died on or after February 4, 1999, but prior to January 1, 2008, after having satisfied the eligibility requirements for coverage under the Retiree Group Health Plan, coverage under the Retiree Group Health Plan is as set forth in the Retiree Group Health Plan and the PBB, except that on or after January 1, 2008, such pilots may, if eligible:

465


i. make a one-time election to receive pre-Medicare coverage under the terms of the Company’s Retiree Medical Plan for its non-pilot retirees; or

ii. make a one-time election to receive or continue to receive coverage under the terms of the Federal Express Corporation Retiree Group Health Plan; or

iii. make a one-time election to receive coverage under the Post-Medicare Plan described in Section 27.I. below.

a. b. Pilots who retired on or after February 4, 1999, but prior to January 1, 2008, and who opted out of coverage under theThe Retiree Group Health Plan prior to January 1, 2008, shall be given a one-time opportunity to elect among the coverage options described in Section 27.H.3.a. above, if they are eligible.c. With respect to pilots who retire on or after January 1, 2008, and their eligible spouses and dependents, the Retiree Group Health Plan shall provide solely for coveragefor Pilots shall provide coverage solely for the retiring pilot and/or his eligible spouse and dependents for the period prior to their attaining Medicare eligibility age. Pilots retiring on or after January 1, 2008,Retiring pilots who have attained Medicare eligibility age may, if eligible, elect coverage under the Post-MedicarePremium Reimbursement Plan described in Section 27.I. below.

b. d. Effective as of October 30, 2006, theThe Retiree Group Health Plan for Pilots shall be amended to provide that the following individuals are eligible for coverage: i. Retired Pilots. A retired pilot, and the retired pilot’s eligible

spouse and eligible dependents, are eligible for coverage if the pilot retires on or after February 4, 1999,1999 after having satisfied the age and service eligibility requirements for retiree health coverage under the plan provisions in effect on the date of the pilot’s retirement.

ii. Retired Pilot’s Eligible Surviving Spouse and Eligible Surviving Dependents. AIn the case of death of a retired pilot', the retired pilot’s eligible surviving spouse and eligible surviving eligible dependents (as determined under the plan provisions in effect on the date of the pilot’s retirement) will be eligible to continuefor coverage under the Retiree Group Health Plan as provided below. Except for the COBRA period, the eligibility of a surviving dependent other than a surviving spouse will end no later than the date the individual no longer meets the definition of an eligible dependentfor Pilots, as specified in the Plan.

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(a) Death of Pilot While Retired (Pilot Dies On or After October 30, 2006). The following provision applies to the eligible surviving spouse and eligible surviving dependents of pilots who retired on or after February 4, 1999, and died on or after October 30, 2006. (1) For the first 24 months after the retired pilot's death (or until

such survivors are no longer eligible dependents under the terms of the retiree health plan), such eligible survivors may continue in the retiree health plan subject to making a monthly contribution in the amount a retired pilot would pay for the applicable coverage tier.

(2) After the first 24 months and until eligibility for Medicare (or until such survivors are no longer eligible dependents under the terms of the Retiree Group Health Plan), such eligible survivors may continue participation in the Retiree Group Health Plan, subject to making a monthly contribution equal to 100% of the cost of the applicable coverage tier.

(3) After eligibility for Medicare (or after such date as the survivors are no longer eligible dependents under the terms of the retiree health plan), such eligible survivors may continue participation in the Retiree Group Health Plan for 36 months subject to paying the COBRA rate (102% of cost) for the applicable coverage tier. (Note: Such survivors may also be eligible to participate in the retired pilot Post-Medicare VEBA.)

(b) Death of Pilot While Retired (Pilot Dies Prior to October 30, 2006). This provision applies to the eligible surviving spouse and eligible surviving dependents of pilots who retired on or after February 4, 1999, and died prior to October 30, 2006. (1) For the first 12 months after the retired pilot's death (or until

such survivors are no longer eligible dependents under the terms of the retiree health plan), such eligible survivors may continue in the retiree health plan subject to making a monthly contribution in the amount a retired pilot would pay for the applicable coverage tier.

(2) After the first 12 months and until eligibility for Medicare (or until such survivors are no longer eligible dependents under the terms of the retiree health plan), such eligible survivors may continue in the retiree health plan subject to making a monthly contribution equal to 100% of the cost of the applicable coverage tier.

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(3) After eligibility for Medicare (or after such date as the survivors are no longer eligible dependents under the terms of the Retiree Group Health Plan), such eligible survivors may continue in the Retiree Group Health Plan for 36 months subject to paying the COBRA rate (102% of cost) for the applicable coverage tier. Such eligible survivors may also be eligible to participate in the retired pilot Post-Medicare VEBA described in Section 27.I. below.

(c) Death of Pilot While on Seniority List, After Meeting Age and Service Eligibility Requirements for Retiree Health Coverage. This provision applies to the eligible surviving spouse and eligible surviving dependents of pilots who died while on the seniority list, on or after October 30, 2006, and after meeting the age and service eligibility requirements for coverage under the Retiree Group Health Plan. (1) For the first 24 months after the pilot's death (or until such

survivors are no longer eligible dependents under the terms of the Retiree Group Health Plan), such eligible survivors may continue in the Group Health Plan subject to making a monthly contribution in the amount an active pilot would pay for the applicable coverage tier.

(2) After the first 24 months following the pilot's death, such eligible survivors may elect coverage under the Retiree Group Health Plan but defer commencement of coverage in the Retiree Group Health Plan and continue in the Group Health Plan for 36 months subject to paying the COBRA rate (102% of cost) for the applicable coverage tier (At any time during the 36-month COBRA period, the eligible survivors may request commencement of coverage under the Retiree Group Health Plan).

(3) In lieu of the option described in paragraph (2) (above), after the first 24 months and until eligibility for Medicare (or until such survivors are no longer eligible dependents under the terms of the Retiree Group Health Plan), such eligible survivors may participate in the Retiree Group Health Plan, subject to making a monthly contribution equal to 100% of the cost of the applicable coverage tier.

(4) After eligibility for Medicare (or after such date as the survivors are no longer eligible dependents under the Retiree Group Health Plan), such eligible survivors may continue in the Retiree Group Health Plan for 36 months subject to paying the COBRA rate (102% of cost) for the

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applicable coverage tier. Such eligible survivors may also be eligible to participate in the retired pilot Post-Medicare VEBA described in Section 27.I. below.

(d) Death of Pilot While on Seniority List, Before Meeting Age and Service Eligibility Requirements for Retiree Health Coverage. This provision applies to the eligible surviving spouse and eligible surviving dependents of pilots who die while on the seniority list and on or after October 30, 2006, but before meeting the age and eligibility requirements for retiree health coverage. (1) For the first 24 months after the pilot's death (or until such

survivors are no longer eligible dependents under the terms of the Group Health Plan), such eligible survivors may continue in the Group Health Plan subject to making a monthly contribution in the amount an active pilot would pay for the applicable coverage tier.

(2) For the next 36 months, such eligible survivors may continue in the Group Health Plan subject to paying the COBRA rate (102% of cost) for the applicable coverage tier.

c. e. Any Company cost for providing prePre-Medicare coverage which is in excess of one and one-half times the Company’s fiscal 1993 per capita projected cost ($4,813 annually for each Pre-Medicare eligible retired pilot, spouse or surviving spouse) shall be paid by the retired pilot (or survivor).

d. f. Prior to January 1, 2008, theThe monthly premium /contribution for a retired pilot and his eligible spouse and dependents and for eligible survivors is as follows:

Pre-Medicare

Plan Option Retiree Spouse Child

CIGNA POS $273 $284 $60*

CIGNA Network $273 $284 $60*

Retiree Basic $273 $284 $60*

Puerto Rico PPO $273 $284 $60*

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*$62 if child is disabled and eligible for Medicare.g. On and after January 1, 2008, the monthly premium for a retired pilot and his eligible spouse and eligible dependents and for eligible survivors is as follows: i. The Company will pay the first $401.08 per month ($4,813

annually) of the total projected cost of health coverage for each Pre-Medicare eligible retired pilot and the same amount for each eligible spouse and the same amount for each eligible surviving spouse (i.e., the Company’s fiscal 1993 per capita cap is maintained). The remainder of the total projected cost for each pilot and for each spouse will be paid by the covered individual, either from the assets in the individual’s Health Reimbursement Account (HRA), or if administratively feasible, the individual’s Health Savings Account (HSA), if any, or from the individual’s other assets.

ii. For all dependent children and all surviving dependent children (not per child), effective January 1, 2017, the participant’s monthly contribution for coverage will be $45/month for the Base Plan, $55/month for the Buy-Up Plan, and $25/month for the high deductible plan.as follows: a) $62.00 for the Buy Up Plan, $28.00 for the CDHP Purple

option without HSA/HRA, $28.00 for the CDHP Orange option without HSA/HRA, $62.00 for the HMSA $62.00, Health Plan Hawaii and $26.00 for the High Deductible option; and

b) effective January 1, 2018 dependent children and surviving children rates will increase annually by the same percentage increase as retiree and spouse rates.

Notwithstanding the annual increase, for calendar year 2018 and beyond, the dependent children and surviving children rate will be the same for both the CDHP Purple (without HSA/HRA) and CDHP Orange (without HSA/HRA) options.

For this purpose, “total projected cost” will be determined by the actuarial firm selected by the Company, exercising its best professional judgment, based on the total blended cost of all retired pilots and non-pilot retirees (and spouses, other dependents and survivors) participating in Pre-Medicare health benefits. Such determination (and supporting data) regarding the pilots' costs will be shared with the Association in advance of each open enrollment period (Note: The Company and Association will consult regarding the legality and

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appropriateness under generally accepted accounting principles of blending the experience of retirees and actives for this purpose.). If the Retiree Group Health Plan for Pilots is projected to generate an Excise Tax, the Excise Tax will be added to the premiums/contributions and will be paid by the participant. The Company’s actuary will use reasonable actuarial assumptions and methods that are designed to determine such total projected costs in the actuary’s best professional judgment. By September 15th of each year, the Company will provide to the Association the actuary’s detailed determination of what the total projected costs will be in the following calendar year. e. h. Eligible spouses and dependents on the date that a pilot

commences coverage under the Retiree Group Health Plan for Pilots, and eligible survivors of retired pilots, are eligible for coverage under the Retiree Group Health Plan and the PBBfor Pilots, subject to the provisions in effect on the date of the pilot’s retirement.

f. i. A retired pilotcovered individual shall have the option of having his monthly Retiree Group Health Plan for Pilots premiums/contributions deducted from his monthly pension check, or his Health Reimbursement Account (HRA) or if administratively feasible, his Health Savings Account (HSA), if applicable. He may also have the option of paying these premiums/contributions by check on a monthly basis.

4. Coverage under the Retiree Group Health Plan for Pilots a. With respect to a pilot who retires on or after February 4, 1999, but

prior to January 1, 2008, such retiring pilot can elect any coverage option available in his geographic area, as described herein. If the retiring pilot fails to make an election, he will be automatically enrolled in the default option selected by the Company's Employee Benefits Department for similarly situated retirees of his age and in his geographic location, and at the same level (employee only, employee + spouse, etc.) at which he was covered immediately prior to his retirement, based on his eligible dependents, if he has remitted payment within 31 days of notification. He shall remain covered by that option unless and until he fails to remit the required monthly premium. During the next annual enrollment period, he may change to any coverage option available to retirees in his geographic area. For retired pilots and other eligible individuals, the Company shall provide medical benefits (including pharmacy, mental health and substance abuse benefits) under the Retiree Group Health Plan for

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Pilots, administered by Anthem. The Plan options are described in Section 27 Appendix B.

5. b. Effective January 1, 2008, coverage options available to pilots who retired on or after February 4, 1999, and who are not eligible for Medicare, such pilots' eligible spouses and dependents and eligible survivors, and the eligible survivors of active pilots, shall be the Base and Buy-Up options provided through Wellpoint/BCBS, as described in Section 27, Appendix A, and a separate high-deductible option, asThrough December 31, 2016, medical benefit options (including pharmacy, mental health and substance abuse benefits), dental benefit options and the vision benefit option under the Retiree Group Health Plan for Pilots are the same as those in effect for retired pilots on the day before DOS. Effective January 1, 2017, medical benefit options (including pharmacy, mental health and substance abuse benefits) under the Retiree Group Health Plan for Pilots consist of the following, as further described in Section 27, Appendix B: Buy Up Option, CDHP Purple Option (Without HSA/HRA), CDHP Orange Option (Without HSA/HRA), High Deductible Option and Retiree HRA Only Option. Additionally, self-insured or fully-insured dental and vision coverage shall be offered separately from medical/ (including pharmacy/, mental health-substance abuse-EAP. Effective January 1, 2008, the monthly premium contribution for a retired pilot's dependent children or for all surviving dependent children is as follows: $45/month for the Base Plan, and $55/month for the Buy-Up Plan. The premium contributions for the High Deductible Option are as set forth and substance abuse benefits). The Company will offer plan options for those retired pilots and eligible dependents living in Hawaii on terms no less favorable than the terms offered to any other employee, as required by state law. Dental and vision benefits are the same as those for active pilots as described in Section 27, Appendix BA.

6. 5. Payment of benefits from the Retiree Group Health Plan for Pilots is subject to the Plan’s right to reimbursement/subrogation, as described in the reimbursement/subrogation provisions of the Plan and as administered by the Company's agent for all other employees of the Company.

7. 6. Other restrictions, requirements and limitations on each ofin the Retiree Group Health Plan optionsfor Pilots described above are set forth in the Retiree Group Health Plan and the PBBfor Pilots, and as described herein.

8. 7. Health Reimbursement Accounts. In accordance with the following, theThe Company will establish, fund, invest andcontinue to administer

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a Voluntary Employees Beneficiary Association (VEBA) with individual Health Reimbursement Accounts (HRAs) for the following individuals: a. For each eligible pilot who retired after May 31, 2004,2004 but

before August 26, 2006, the Company will deposit the signing bonus otherwise to be provided to these pilots into an individual HRA in the same amount as they would have received under the signing bonus program. A retired pilot is eligible to receive such contribution if he met the age and service requirements for coverage under the Retiree Group Health Plan at his retirement. The Company will make the payment to the HRAs under the VEBA upon establishment of the VEBA, to occur not later than January 28, 2007 (90 days after October 30, 2006).

b. For each eligible active pilot (i) having a seniority list number on August 25, 2006, (ii) who has attained at least age 53 before January 1, 2007, (iii) who is expected to meet the age and service requirements for coverage under the Retiree Group Health Plan as of his attainment of age 60 or older, and (iv) who retires on or after August 26, 2006, the Company will make a one-time cash payment of restricted signing bonus to the VEBA equal to $25,000. Such contributions shall be made no later than January 28, 2007 (90 days after October 30, 2006). The contribution and interest attributable thereto shall be transferred to the HRA established with respect to that pilot upon the date that the pilot attains age 59, or if earlier, as soon as practicable after the pilot dies. If a pilot attains age 59 or dies prior to the date that the Company funds the VEBA pursuant to this Section 27.H.7.paragraph b., the contribution and interest attributable to such pilot shall be transferred to the HRA as soon as possible after the date on which the Company funds the VEBA. c. HRA contributions will not be reduced for a pilot who continues as an active employee past age 60. d. There is no requirement that a pilot participate in a Company-sponsored Pre-Medicare health care plan when he retires in order to use his HRA or to receive an HRA contribution.

c. e. A pilot’s HRA may be used for reimbursement of any qualified medical expenses while retired, including participant premium premiums/contributions, whether before or after Medicare eligibility. Any unused amounts in the HRA at the time of the pilot’s death (whether before or after retirement) may be used for reimbursement of any qualified medical expenses of the eligible surviving spouse and any other eligible surviving dependents. Any unused amounts

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in the HRA at the last to die of the pilot, eligible surviving spouse and eligible surviving dependents will be forfeited to the VEBA.

d. f. Accounts with minimal balances ($10.00 or less) shall be forfeited after six months of account inactivity. Amounts forfeited to the VEBA will be applied to pay the reasonable administrative expenses of the VEBA.

e. g. The Company will pay all administrative expenses of the VEBA in excess of administrative expenses paid out of forfeitures pursuant to the above paragraph.

f. h. Participants will be allowed to access their HRA by using a debit card.

I. Post-Medicare Retiree Health 1. With respect to any pilot retiring on or after February 4, 1999, but prior to

January 1, 2008, who attains Medicare eligibility age prior to January 1, 2008, such retired pilot and the eligible dependents of such pilot, if any, shall continue to participate in the Retiree Group Health Plan, subject to the terms and conditions of that Plan. Any Company cost for providing pre-Medicare coverage or post-Medicare coverage which is in excess of one and one-half times the Company's fiscal 1993 per capita projected cost for each pre-Medicare eligible or Medicare-eligible retired pilot, eligible spouse or eligible surviving spouse shall be paid by the retired pilot.

For the period beginning January 1, 2007, and ending December 31, 2007, the monthly premium contribution for a retired pilot and his eligible spouse and other eligible dependents is as follows:

Medicare Eligible

Plan Option Retiree Spouse Child

CIGNA POS N/A N/A N/A

CIGNA Network N/A N/A N/A

Retiree Basic $349 $360 $60*

Puerto Rico PPO $349 $360 $60*

*$62 if child is disabled and eligible for Medicare.

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9. The Retiree Group Health Plan for Pilots shall be amended to provide changes consistent with the changes to the Group Health Plan for Pilots provided in Section 27.G.14 (regarding benefit modifications), Section 27.G.15. (regarding transparency systems), and Section 27.G.16. (regarding survivors’ premiums/contributions). In addition, the Buy Up Option, CDHP Purple Option (Without HSA/HRA) and CDHP Orange Option (Without HSA/HRA) under the Retiree Group Health Plan for Pilots shall be amended to provide the same changes as are made to the Buy Up Option, CDHP Purple Option and CDHP Orange Option under the Group Health Plan for Pilots pursuant to Section 27.A.11., whether or not such changes affect application of the Excise Tax to the options under the Retiree Group Health Plan for Pilots.

10. 2. With respect to pilots who retire on or after January 1, 2008, and their eligible dependents,An HRA shall be established for each eligible pilot and eligible spouse who elects the HRA Retiree Only Option under the Retiree Group Health Plan for Pilots. The Company shall credit $4813.00 annually in a separate HRA account for each eligible pilot and eligible spouse. The amount will be prorated in the pilot’s year of retirement. The HRA account is a notional account held in a non-interest bearing account. Any unused amounts in the HRA at the last to die of the pilot, eligible spouse and eligible surviving dependents will be forfeited. Accounts with minimal balances ($10 or less) shall be forfeited after six months of account inactivity, once the pilot and the eligible spouse attain Medicare eligibility. Once an eligible pilot or eligible spouse elects the HRA Retiree Only Option, that participant is not allowed to elect any other option under the Retiree Group Health Plan shall provide solely for coverage for the retiring pilot and/or his eligible dependents for the period prior to their attaining Medicare eligibility age. for Pilots.

I. Premium Reimbursement Plan (Post-Medicare)

1. [RESERVED] 2. The Association shall establish,continue to sponsor and maintain a

Postpost-Medicare Retiree Health Plan ("Post-Medicare Plan")retiree health plan and Voluntary Employees' Beneficiary Association (“VEBA”), to be effective January 1, 2008. Pilots retiring prior to January 1, 2008, who have attained Medicare eligibility age may, if eligible, elect coverage under the Post-Medicare Plan described in this Section 27.I., below. The Post-Medicare Plan. Effective January 1, 2014, the plan shall be known as the Premium Reimbursement Plan (PRP). The PRP and VEBA are collectively bargained for purposes of Internal Revenue Code Sections (“Code”) §§419 and 419A.

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3. The Company will make a lump sum contribution to the VEBA of $3.2 million, payable no later than November 30, 2006, with an additional $40 million contribution to be made to the VEBA no later than June 1, 2007.

3. As soon as practicable after October 30, 2006, but not later than January 1, 2007,Effective with respect to credit hours paid on or after DOS, the Company will contribute to the VEBA 50 cents of$1.00, plus an additional $0.05 on each November 1st thereafter [note: assuming this is the DOS anniversary], for each paid credit hour for each pilot having a seniority list number (which would otherwise be paid to the pilot in cash) as the pilot's ongoing monthly contribution to the Post-Medicare PlanPRP/VEBA. The Company shall remit such contributions to the VEBA no later than the 15th day of the calendar month following the calendar month during which the credit hours were actually paid. On the effective date of the Company’s contribution of 50 cents$1.00 (increased, as provided above) per paid credit hour, the hourly pay rates agreed upon for pilots will be established as book rates. Actual pay rates will be 50 cents lessdecreased by the per hour contribution specified above. All retirement and welfare benefits based on pay will be based on pay determined under the book rates. The purpose of this provision is to allow the ongoing monthly VEBA contributions of 50 cents per paid credit hour to be funded out of compensation that would otherwise be paid directly to pilots in cash. Lump sum and monthly contributions will be placed in an interest-bearing escrow account until the VEBA is established.

4. The Post-Medicare Plan/PRP and VEBA will be administered by the Administrative Board (Board), which will be composed of three regular members and twoor four members, as determined by the Association. If the Board is composed of three members, each member will be a regular voting member. If the Board is composed of four members, three will be regular voting members and one will be an alternate member who will be a voting member in the absence of one of the regular members. The President of the Association will appoint and remove all members, based on the recommendations of the FedEx MEC. Two regular members and one alternate member will be retired pilots, and one regular member and one alternate member will be active pilots. Regular and alternate members may attend all meetings of the Board. Each regular member has one vote. The alternate member who is a retired pilot may vote in the absence of a regular member who is a retired pilot, and the alternate member who is an active pilot may vote in the absence of the regular member who is anAny member may be an active pilot or a retired pilot; however, there must be at least one active pilot. A quorum is established by two retired pilotthree members and one active pilot member. Decisions of the Board will be made by majority of the three members voting. The

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Board will select, monitor and replace all vendors and other providers of services to the Post-Medicare Plan (e.g., medical plan administrator(s), trustee(s), investment manager(s))PRP and VEBA. The Board will determine the Post-Medicare Plan’s investment policy and will have full responsibility for investment of the VEBA funds. The Board will determine benefits to be provided under the Post-Medicare Plan, as provided below. Board members are fiduciaries subject to ERISA’s standards of conduct for fiduciaries. The Administrative Board will determine the reasonable administrative expenses which may be paid by the Post-Medicare PlanPRP/VEBA.

5. The Association will prepare and adopt the Post-Medicare PlanPRP and VEBA documents. The Association shall have the sole power to amend the Post-Medicare PlanPRP and VEBA at any time, without the Company’s consent, provided that no modification (i) shall conflict with the terms of this Agreement, or (ii) shall increase the obligations of the Company under this Agreement without the Company’s consent.

6. The Administrative Board will determine all medical, pharmacy, dental and vision benefits under the Plan. After the Plan’s inception, the Administrative Board may modify benefits provided under the Plan, subject to MEC approval; provided, however, that MEC approval is not required for changes that are consistent with the Pre-Medicare plan options, or are de minimus. The Administrative Board is obligated to seek modifications to the Plan (subject to MEC approval) that the Board reasonably determines are necessary or appropriate to maintain the viability of the Plan. All individual benefit claims and appeals of individual benefit claims under the Plan will be filed with and decided by the vendors hired by the Administrative Board, pursuant to such vendors’ standard proceduresPRP will provide a retired pilot, and the retired pilot’s spouse or surviving spouse and the retired pilot’s eligible child with reimbursement of the amount incurred by the individual to obtain coverage under a Medicare Supplemental policy, a Medicare Advantage Plan, Medicare Part D, and/or Tricare, or other available post-Medicare coverage as determined by the Board, up to a maximum monthly reimbursement as determined by the Board. The CBA’s grievance procedures will not apply to any individual benefit claims or appeals of individual benefit claims under this Planthe PRP.

7. The Administrative Board will determine the amount of participant contributions required to maintain coverage under the Post-Medicare Plan. Participant contributions may be made by automatic deduction from the pension payment, or by automatic bank draft, or automatic payment from the participant's Health Reimbursement Account ("HRA") if any.

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7. 8. Any assets remaining in the VEBA in the event of termination of the PlanPRP will be distributed to the following individuals, in such shares as determined by the Administrative Board: a. Retired pilots participating in the PlanPRP upon Plan termination of the

PRP; b. Retired pilots who would have participated in the PlanPRP but who, as

of Plan termination of the PRP, have not yet attained Medicare eligibility age;

c. Pilots on whose behalf the Company has remitted any monthly contributions of $.50 of such pilot’s hourly book rate;

d. Survivors participating in the PlanPRP upon Plan termination of the PRP.

8. 9. The following retired pilots, eligible spouses and eligible dependents, and eligible survivors, shall be eligible to participate in the Post-Medicare PlanPRP ("Eligible Individuals"): a. A retired pilot who has attained Medicare eligibility age, and the retired

pilot’s eligible spouse who has attained Medicare eligibility age, are eligible for coverage under the Post-Medicare PlanPRP if the pilot retires on or after February 4, 1999,1999 after having satisfied the age and service eligibility requirements for retiree health coverage under the Retiree Group Health Plan for Pilots. The retired pilot’s eligible spouse and eligible dependents who are not eligible for Medicare will remain in the Retiree Group Health Plan for Pilots until they are either eligible for Medicare, then enter the Post-Medicare PlanPRP, or in the case of a dependent child, cease to be eligible for coverage under the Retiree Group Health Plan for Pilots. b. Pilot’s Eligible Surviving Spouse and Eligible Surviving

Dependents. A pilot’s eligible surviving spouse or eligible surviving dependent who has attained Medicare eligibility age is eligible for coverage under the Post-Medicare PlanPRP if the pilot: i. Retired on or after February 4, 1999,1999 after having satisfied

the age and service eligibility requirements for coverage under the Retiree Group Health Plan for Pilots; or

ii. Died on or after October 30, 2006, while on the seniority list, after having satisfied the age and service eligibility requirements for coverage under the Retiree Group Health Plan; oriii. Died on or after February 4, 1999, but before the October 30, 2006, while on the seniority list, after having satisfied the age and service eligibility requirements for coverage under the Retiree Group Health Plan, if such pilot had elected coverage under the

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Retiree Group Health Plan, pursuant to the one-time election made available under that plan, referenced in Section 27.H.3.a. and b. above. for Pilots.

c. The eligibility of a retired pilot or such pilot’s eligible spouse or eligible dependent for coverage under the Post-Medicare PlanPRP will begin when that individual attains Medicare age. An Eligible Individual may defer or suspend coverage, and in such event, may commence or resume coverage at a later date, in accordance with procedures determined by the Board.

d. No individual may be covered under the Post-Medicare Plan unless, immediately prior to coverage under the Post-Medicare Plan, the individual was covered under either the Group Health Plan or the Retiree Group Health Plan, except as follows: As soon as possible after establishment of the Post-Medicare Plan, the Administrative Board will conduct a single open enrollment period allowing retired pilots who are otherwise eligible for coverage (and their eligible spouse and eligible dependents) to elect coverage under the Post-Medicare Plan even though, at that time, they are no longer covered under the Group Health Plan or the Retiree Group Health plan because they had previously “opted out” of such coverage. The Company will use its best efforts to determine who is eligible for coverage under the Post-Medicare Plan pursuant to this provision, and will so inform the Board.Effective for pilots who retire after DOS, or for a surviving spouse or surviving dependent of a pilot who dies after DOS, it is not necessary for an individual to be covered under a Company-sponsored health plan immediately prior to coverage under the PRP.

e. An Eligible Individual becomes a participant in the Post-Medicare Plan unless he opts out. Once an individual opts out of Plan coverage, the individual cannot return to Plan coverage. The AdministrativeThe Board will establish guidelines for opt-out and, deferral, suspension and termination of enrollment. An individual’s participation will terminate at the earliest of the following events:

i. Failure to pay premium; ii. Death; iii. Individual first opts out of coverage under the Post-Medicare Plan.

9. 10. With the exception of the remittance of contributions on behalf of pilots as described in Section 27.I.3. above, the Company will have no administrative responsibility for the Post-Medicare Plan/PRP and/or VEBA. However, the Company will provide to the Administrative Board such relevant data as is readily available from the Company’s records

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(or its vendors’ records) and which is necessary or appropriate for the Administrative Board's proper administration of the Post-Medicare PlanPRP. The Company agrees to provide towill make its best efforts to inform the Administrative Board an initial file of Eligible Individuals and thereafter a weekly file containing new Eligible Individuals.of the death of any retired pilots, spouses and authorizes the Board to make requests of the Plan administrator of the FedEx Corporation Employees’ Pension Plan. The Company shall have no further responsibility regarding the determination of an Eligible Individual’s eligibility for coverage under the Post-Medicare PlanPRP.

10. 11. The parties agree that at the time this Agreement becomes amendable, the Association and the Company will negotiate further with respect to appropriate future contributions to the VEBA. Ninety days prior to the amendable date, the Association agrees to provide (or have the vendor provide) relevant data, information, claim experience, etc. to the Company in anticipation of and solely with respect to these negotiations.

J. Disability Plan

1. Except as provided herein, the terms and conditions of the Federal Express Corporation Long Term Disability Plan for Crew MembersPilots (the "LTD Plan") shall remain the same and shall not be amended without the consent of the Association, which consent shall not be unreasonably withheld.

2. A pilot shall be eligible for LTD Plan benefits upon exhaustion of his regular and disability sick accountaccounts, as described in Section 14, or upon his experiencing a seat change or upon moving to a non-pilot position because of disability, as described in the LTD plan document and the PBBPlan. Except as provided in Sections 27.J.6.7. and 27.J.7. below,12., disability benefits paid to pilots who are disabled prior to October 30, 2006,2006 shall be governed by the terms of the disability plans in effect on the date of commencement of the disability. Pilots who become disabled on or after October 30, 2006,2006 shall be governed by the provisions below.

3. LTD Plan benefits payable to a pilot whose disability commences on or after October 30, 2006 shall equal 60% of monthly earnings, as described in Section 27.J.6., for the first 24 months that a pilot is eligible to receive benefits under the LTD plan.Plan, subject to the limits in Section 27.J.7. Thereafter:a. Benefits, benefits payable to a captain or first officerpilot who becomes disabled and continues to have an occupational disability

480


through the earlier of the date on which such pilot (1) ceases to be disabled, or (2) attains age 65 (or, if the Company no longer employs second officers, regulated age), shall equal 50% of monthly earnings, as described in Section 27.J.5. herein.b. Benefits payable to a second officer (while the Company employs second officers) who becomes disabled and who continues to have an occupational disability6., and subject to the limits in Section 27.J.7. Such benefits shall be paid through the earlier of the date on which such pilot (1) ceases to be disabled, or (2) the later of the date on which the pilot attains age 65 or receives benefits under the LTD Plan for 5 years, shall equal 50% of monthly earnings, as described in Section 27.J.5. herein.65.

4. In order for a pilot to continue to be eligible for a disability benefit under the LTD Plan, the pilot must fully cooperate with the Claims Paying Administrator, in coordination with the Aeromedical Advisor, and must diligently seek restoration of any required license or medical certificate to allow the pilot to return to work.

5. 4. The Company shall pay the full cost of such coverage. 6. 5. Monthly earnings shall continue to be defined as a pilot's basic monthly

compensation, i.e., the 12 highest consecutive months out of the 36 consecutive months preceding the disability period.

7. 6. As of June 1, 2006, aA pilot’s monthly LTD Plan benefit during the first 24 months of disability may not exceed $11,000 per month, subject to the limitations60% of the monthly compensation limit set forth in Code § 401(a)(17). As of June 1, 2006, aA pilot's monthly LTD Plan benefit following the first 24 months of disability may not exceed $9,166.66 per month, subject to the limitations50% of the monthly compensation limit set forth in Code § 401(a)(17). Increases to this limit shall be indexed based on periodic adjustments to the limitations of Code § 401(a)(17).7. The provisions of Section 27.J.6. above notwithstanding, on and after October 30, 2006, the monthly benefits of pilots in pay status, which are capped by the limitations of Code § 401(a)(17), will be adjusted, up to the 60% or 50% level, as applicable, but not to exceed the amount permitted pursuant to the limitations of Code § 401(a)(17) at the time of such adjustment. The benefit amount adjustments made under this Section 27.J.7. are not intended to be one-time adjustments; rather, adjustments will continue to be made in the future, for benefits paid thereafter, at the time of future adjustments to the limitations of Code § 401(a)(17). This Section 27.J.7. shall apply to all pilots, whether their benefits began before or after the signing of this Agreement. In the event the limit set forth in Code § 401(a)(17) is decreased legislatively, the Company shall establish a VEBA to cover pilots in the LTD Plan only. Compensation used to calculate benefits to be paid from the newly established VEBA shall be limited

481


annually to the greater of (1) the highest limit under Code § 401(a)(17) in effect at any time prior to it being decreased or (2) the current limit in effect under Code § 401(a)(17).

8. Current LTD Plan provisions concerning the offset for wages earned by a pilot who experiences a disability related seat change or disability related move to a non-pilot position shall remain in effect as provided in the LTD plan document and the PBBPlan.

9. After completion of the LTD's 24-month occupational disability period at 60% of monthly earnings, a pilot shall be eligible to receive occupational disability benefits thereafter at 50% of monthly earnings until he is no longer entitled to disability benefits, as provided in Section 27.J.3. If, after the 24 month period, such pilot continues to be unable to hold a 2nd class medical certificate at any time from the date of his attainment of the regulated age through the date of his 65th birthday, he shall be eligible to receive occupational disability benefits equal to the lesser of (1) 50% of such pilot's projected monthly earnings as a Second Officer, or (2) his occupational disability benefit immediately prior to his attainment of the regulated age. A pilot's projected monthly earnings as a Second Officer shall be determined by multiplying the credit hours used in calculating his Basic Monthly Compensation (as defined in the LTD Plan) by the rate of pay in effect for Second Officers at the time that such pilot attains the regulated age. The "pay rate in effect for Second Officers" shall mean, with respect to any pilot whose benefit is calculated pursuant to this provision, the hourly pay rate in effect on the date that the pilot attains the regulated age for the highest second officer position that the pilot could hold as of the date he attained the regulated age.[Reserved]

10. Pilot disabilityThe duration of the LTD Plan benefits for mental disorders, as currently defined in the LTD Plan, shall remain at a maximum of 60 months.

11. Pilot disabilityEffective on DOS, the duration of LTD Plan benefits for alcohol and substance abuse shall be at a maximum of 18 months (up to 12 months, plus, for pilots seeking medical recertification, up to an additional 6 months). For pilots whose disability commencement date is before DOS, the duration of LTD benefits for alcohol and substance abuse shallwill remain at a maximum of 26 weeks.

12. Payment of benefits from the LTD Plan is subject to the LTD Plan’s right to reimbursement/subrogation, as described in the reimbursement/subrogation provisions of the LTD Plan and as administered by the Company's agent for all other employees of the Company.

482


13. An LTD Plan reduction arising out of other employment or self-employment during the term of a pilot’s disability shall be applicable to a pilot only after the disability payments plus the outside income earned by the pilot exceed the pilot’s pre-disability income. For purposes of this provision, a pilot’s pre-disability income shall be measured as the average earnings (Company and outside earned income) over the 12 months immediately preceding the pilotspilot’s disability. For example, a pilot programs software as a side business in addition to flying. He breaks his arm on July 1, 1998,2016 and goes on LTD disability after his sick leave runs out on September 1, 1998.2016. Between July 1, 1997,2015, and July 1, 1998,2016, the pilot made $100,000 as a FedEx pilot and $25,000 in his software business, for a monthly average total of $10,416.66. While on disability, the pilot continues to program software and makes $4,000 per month in addition to drawing a monthly disability of $5,000.00 (for the first 24 months; $4,166 thereafter) from the Company. The $9,000.00 monthly average income is below the $10,416.66 he earned before his disability, so no offset is required. If however, the pilot earned $7,000 per month in the software business, then his total monthly earnings ($12,000.00) would exceed his combined predisabilitypre-disability monthly income ($10,416.66) by $1,583.34. In this situation, a monthly disability reduction of 50% of the $1583.34, or $791.67 per month would be required.

14. Disability benefit payments under the LTD Plan shall end as described in the LTD plan document and PBBPlan.

15. LTD benefits shall be reduced by other benefits and income received during the disability period, as described in the LTD plan document and the PBB,Plan except: (i) as provided in Section 27.J.13. (13 above), and (ii) the amount of a pilot's Social Security Disability Income which shall be offset from his LTD benefits shall be in an amount equal to 70% (100% with respect to disabilities commencing prior to October 30, 2006) of the Social Security Disability Income payable to the pilot (excluding any amount payable to the pilot on account of any member of the pilot’s family).

16. A pilot claiming LTD benefits shall not receive such benefits unless his claim is substantiated by significant objective findings of disability as defined in the LTD plan document and the PBBPlan.

17. A pilot shall be subject to restrictions on recurring disability periods as described in the LTD plan document and the PBBPlan.

18. LTD benefits shall not be paid for a disability caused by an excludable condition listed in the LTD plan document and the PBBPlan.

483


19. During the period that a pilot is on disability, the pilot shall have access to Company communications systems including pilot.fedex.com, PRISM and Company E-mailemail.

20. The Company’s agreement with the current administrator (Aetna Life Insurance Company) of LTD Plan benefits under Section 27.J. will provide that at any time such entity is also the administrator of benefits under any FDX MEC-sponsored disability plan, a pilot may elect to direct the administrator in writing to share amongst the Federal Express Corporation LTD Plan for Pilots and the FDX MEC-sponsored disability plan any and all medical records or medical reports received from any current treating providers, with respect to any one of such plans. Regardless of the sharing of information, each plan shall be administered independently according to its specific plan provisions and procedures and there shall be no collaboration between the Federal Express Corporation LTD Plan for Pilots Plan Administrator and the FDX MEC-sponsored Disability Plan Administrator in claims payment decisions under each plan. The pilot must sign and date an Authorization to Share Information Form, approved by both FedEx and the FDX MEC. The pilot is required to provide an updated Authorization to Share Information Form as required by Aetna Life Insurance Company. At any time such entity is not Aetna Life Insurance Company for both the Federal Express Corporation LTD Plan for Pilots and the FDX MEC-sponsored disability plan, information will not be shared unless the Company is able to negotiate the same arrangement with the new vendor.

21. Recovery of overpayments under the LTD Plan will be subject to the Settlement Agreement between the Company and the Association, concerning the Overpayment Recovery Process, dated February 7, 2013.

K. Dependent Care ReimbursementFlexible Spending Account Plan

Pilots shall continue to be permitted to participate in the Federal Express Corporation Dependent Care ReimbursementFlexible Spending Account Plan, under the same terms and conditions as other employees of the Company., until December 31, 2016. Thereafter, pilots shall be permitted to participate in a Dependent Care Flexible Spending Account Plan up to the maximum amount allowed by law. As soon as practicable after DOS, such plan will be administered by HealthEquity.

L. Health Care Contribution Plan

Pilots shall continue to be permitted to participate in the Federal Express Corporation Health Care Contribution Plan, under the same terms and conditions as other employees of the Company.

484


M. Health Care ReimbursementFlexible Spending Account Plan for Pilots

Effective as of January 1, 2007, pilots90 days following DOS, the Health Care Savings Account Plan for Pilots shall be renamed as the Federal Express Corporation Health Care Flexible Spending Account for Pilots (FSA). Pilots shall be permitted to participate in the Federal Express Corporation Health Care Reimbursement Plan, under the same terms and conditions as other employees of the Company, except that the maximum contribution/reimbursementFSA up to the maximum amount for pilotsallowed by law, which shall not be less than $3,000, and pilotsbe amended to comply with HSA compatibility rules. Pilots will be able to use a debit card to access their accounts under the Plan. As soon as practicable after DOS, such plan will be administered by HealthEquity. Before 2017, the FSA Plan shall permit a pilot to participate in a Full Purpose Health Care FSA. For 2017 and beyond, the FSA Plan shall permit a pilot to participate only in a Limited Purpose FSA if he participates in a CDHP option for medical benefits, and shall permit a pilot to participate in a Full Purpose FSA if he participates in any other health plan option (including a CDHP option with HRA). In the case of a pilot who participates in a Full Purpose FSA in one calendar year and switches to a CDHP option with HSA in the next calendar year, the Full Purpose FSA will be converted to a Limited Purpose FSA for the grace period.

N. Health Savings Account (HSA) for Pilots

The Company shall contribute in cash to an HSA for each participant who establishes an HSA with HealthEquity (or successor vendor) and who is covered under a CDHP Option with HSA. HSA contributions shall be in the amount specified in Section 27, Appendix A. The CDHP Options shall meet the requirements of Code §223. With the exception of investment related expenses, the Company shall pay all administrative costs of the HSAs. If federal law is amended to reduce the maximum amount that may be contributed to an HSA below the amounts specified in Section 27, Appendix A, then the Company shall pay such remaining amount in cash to the participant pursuant to the schedule in Appendix A, if administratively feasible, or as soon as possible. Pilots will be able to make HSA contributions up to the limits established by law. HSAs established under Section 27 shall allow for participant-directed investment to the maximum extent allowed under HealthEquity’s (or any successor vendor’s) guidelines.

485


O. Health Reimbursement Arrangement (HRA) for Pilots

The Company shall credit to an HRA account for each pilot who elects a CDHP Option with HRA. HRA credits shall be in the amount specified in Section 27 Appendix A. The Company will credit each pilot’s account monthly with interest at an annual rate of 4%. HRA plan options will be administered by HealthEquity (or successor vendor). The Company shall pay all administrative costs of the HRAs. When an active pilot’s participation in the Plan ends due to death or termination from the Company, accounts with minimal balances ($10.00 or less) shall be forfeited after six months of account inactivity.

If federal law is amended to limit the maximum amount that may be credited to an HRA below the amounts specified in Section 27, Appendix A, then the Company shall pay such remaining amount in cash to the participant pursuant to the schedule in Appendix A, if administratively feasible, as soon as possible. This Section 27.O. shall not apply to any HRA established prior to DOS under Section 27.H.8.

P. N. Long Term Care Plan Pilots shall continue to be permitted to participate in the Federal Express Corporation Long Term Care Plan, under the same terms and conditions as other employees of the Company. Effective January 1, 2013, this Plan was closed to new enrollees. If the Plan is reopened to new enrollees, pilots shall be permitted to participate under the same terms and conditions as other employees of the Company.

Q. O. Group Legal Services Plan

Pilots shall continue to be permitted to participate in the Federal Express Corporation Group Legal Services Plan, under the same terms and conditions as other employees of the Company.

P. Metpay

R. MetPay Pilots shall continue to be permitted to participate in the MetPay program, under the same terms and conditions as other employees of the Company.

486


S. Adoption Program Pilots shall be permitted to participate in the Adoption Program, under the same terms and conditions as other employees of the Company.

T. Q. Pilot Benefit Review Board 1. A Pilot Benefit Review Board (PBRB) shall be established for the

Insurance Plans and the Retirement Plans described in Section 28. The Company and the Association shall agree to a Charter for the PBRB, to govern the procedures of the PBRB. The Charter shall not be inconsistent with the provisions of this Agreement and shall comply with ERISA §503, “Claims Procedure,” and regulations of the Department of Labor thereunder.

2. The Pilot Review Board (“Review Board”)PBRB shall consist of an equal number of members appointed by the Company and members appointed by the Association. Each party shall appoint up to three members. Vacancies in the membership of the Review BoardPBRB shall be filled by appointment of the respective parties. At any meeting of the PBRB, the Company and Association members may be accompanied by HIPAA trained individuals who the Company or Association members may deem appropriate. A claimant may not attend the PBRB sitting without a neutral member but may attend the PBRB sitting with a neutral member.

3. The Review BoardPBRB may convene meetings at its discretion, or whenever a majority of the members of the Review BoardPBRB make a written request for a meeting at least fourteen days prior to the meeting date.

4. The Review BoardPBRB may convene meetings in person, by telephone conference, or by other electronic means as mutually agreed upon.

5. Any pilotA claimant (pilot, former pilot, retired pilot, spouse, child or beneficiary) or authorized representative may appeal a claim which is denied through the claims and appeals process established by the claims paying administrator. Any claimant who seeks review by the BoardPBRB must make a request in writing no later than one hundred twenty (120) days following the date on which a decision is rendered on appeal. The Review BoardPBRB may, in its discretion, waive the one hundred twenty day period if circumstances warrant, in order to insure a full and fair review of a pilotclaimant’s claim. A pilotclaimant who requests a review by the Review BoardPBRB shall have at least thirty (30) days from the date of his request to submit any written statement or other documentation for the Review BoardPBRB’s consideration during its review. The Review

487


BoardPBRB is not required to conduct a formal hearing with respect to the review of any claim presented by a pilotclaimant.

6. A majority of the Review BoardPBRB, sitting without a neutral member, shall constitute a quorum. Each member of the Review BoardPBRB shall have one vote. In the event that one member is absent from a meeting, such member may give his proxy to another member. Proxies must be in writing.

7. A decision by majority vote shall be final and binding on all parties, and the Review BoardPBRB shall issue a written decision within thirty (30) days after the vote.

8. In the event of a deadlock vote, the Review BoardPBRB shall convene a meeting, which shall be chaired by a neutral arbitrator, to render its decision. The neutral arbitrator shall be selected from a panel of arbitrators designated jointly by the Company and the Association. Such panel shall be comprised of members of the National Academy of Arbitrators and experienced in both airline arbitration and pension or other relevant employee benefit issues. A decision by majority vote shall be final and binding on all parties, and the Review BoardPBRB shall issue a written decision within thirty (30) days after the vote.

9. Should vacancies occur on the panel of neutral arbitrators, the parties shall attempt to agree on a replacement within thirty (30) days after the vacancy occurs. If the parties are unable to agree on a replacement, the vacancy shall remain unfilled unless there are too few arbitrators to preside over required meetings, in which case the parties may select an arbitrator by the alternative strike method from a list of arbitrators provided by the National Mediation Board who are members of the National Academy of Arbitrators to preside over scheduled meetings on an ad hoc basis.

488

Appendices27

Section 27: Appendix A Federal Express Corporation Group Health Plan for Pilots

Pilot BlueCard Plan Provided through Wellpoint/BCBS

MEDICAL BENEFITS (INCLUDING PHARMACY, MENTAL HEALTH AND SUBSTANCE ABUSE BENEFITS

1. MEDICAL AND PHARMACY BENEFITS

BENEFIT

Buy Up Option Base OptionCDHP Purple with

HSA CDHP Purple with HRA

In- Network Provider NonOut-of-Network Provider

In-Network Provider

Non

Out-of-Network Provider

Coinsurance 100% 70% after deductible 90% after deductible

70% after deductible

DeductibleCompany HSA and HRA Funding (applies to all coinsurance except Pharmacy)Wellness rewards, contributions/credit to HSA or HRA in lump sum as soon as practicable after January 1; other HSA and HRA contributions/credit will be 1/12 each month.)

No annual deductible $0

• $250 per individual

• $750 family

•$250 per individual •$750 family Starting 2017 and beyond: Pilot Only-

$2,000* Pilot Plus-

$4,000* *Plus: $300 wellness reward for each covered pilot and covered spouse

• $250 per individual

• $750 family

Deductible** (pilot only/pilot plus) (includes all copays, medical and pharmacy coinsurance for CDHP Purple Plan)

$0 $250/$750

Pilot Only $2,500 Pilot Plus $2,600

per individual (after 2016,

minimum allowed by law, but not

below $2,500) or $5,000 family

Pilot Only $5,000

Pilot Plus $5,000

per individual

or

489

Appendices 27

BENEFIT




In-Network Provider

Non


$10,000 family

Maximum Out-of-Pocket **(pilot only/pilot plus) (includes Deductibledeductible, copays and all pharmacy and medical coinsurance)

N/A except California (subject to change by California Mandates, if

applicable):

•$1,150 per individual

• $3,450 family

All copayments apply to California out-of- pocket maximum except prescription drug copayments

$3,250/$9,750

• $3,250 per individual

• /$9,750 family

Pilot Only $4,250

•$2,000Pilot Plus $4,250 per individual

• $6,000 or $8,500 family

Pilot Only $9,000

•$3,250Pilot Plus

$9,000 per individual

• $9,750 or $18,000 family

PCP Office Visit

$20 Primary Care copay (Internal

Medicine, Pediatrician, General

Practice, Family Practice)


$20 Primary Care copay (Internal

Medicine, Pediatrician, General Practice, Family Practice)


Specialist Office Visit (PCP/Specialist) $20/$40 copay 70% after deductible $40 copay90% after

deductible 70% after deductible

Preventive Services 100% (based on vendor standard

guidelines) 70% after deductible

100% (based on vendor standard

guidelines)


Lab and Xx-ray

100%

If services performed in

physician office, may be subject to



If services

performed in physician office,

may be subject to


490

Appendices27

BENEFIT




In-Network Provider

Non


office visit payment.

office visit payment.

Chiropractic Services ($1,750 annual maximum benefit)

$20 copay each visit 25 annual visits

maximum

70% after deductible 25 annual visits maximum



Physical Therapy, Speech Therapy, Occupational Therapy

Inpatient: 100% coverage

Outpatient: $20 copay

(based on vendor standard

guidelines)

70% after deductible (based on vendor standard

guidelines)

Inpatient: 90% after deductible

Outpatient: $20 copay(based on

vendor standard guidelines)

70% after deductible (based on

vendor standard

guidelines)

Inpatient Hospital Services*

$150 copay, then 100%

$150 copay, then 70% after deductible


$150 copay, then 70%

after deductible

Maternity Office Visits

$20 copay @for 1st visit; then 100% 70% after deductible

$20 copay each visit90% after deductible


Outpatient Surgery* Copayment

$50 copay then 100%

$50 copay then 70% after deductible


$50 then 70% after deductible

Emergency Services

•$75 copay, (waived if admitted), then 100% in an emergency.

• If not a true emergency, services are covered at the out-of-network level (70% after deductible)

$500 copay for the 3rd and any subsequent ER visits for an individual, waived

•$75 copay, (waived if admitted), then 100% in an emergency .


$500 copay for the 3rd and any subsequent ER visits for an individual, waived if admitted, then 70% Any ER visit which results in hospital admission will not count towards total visits.

• 90% after deductible $75500 copay (for the 3rd and any subsequent ER visits for an individual, waived if admitted), then 90% after deductible in an emergency


• 90% after deductible.

$75500 copay (for the 3rd and any subsequent ER visits for an individual, waived if admitted), then 90% after deductible if an emergency 70%

491

Appendices 27

BENEFIT




In-Network Provider

Non


if admitted, then 100% Any ER visit which results in hospital admission will not count towards total visits.

•Ambulance: 100%

•Ambulance: Covered at the in-network level100%, if an emergency. If not a true emergency, 70% after deductible

Any ER visit which results in hospital admission will not count towards total visits. •Ambulance: Covered at 90% after deductible.


Any ER visit which results in hospital admission will not count towards total visits.

•Ambulance: Covered at the in-network level90%, if an emergency.

If not a true emergency, 70% after deductible

492

Appendices27

BENEFIT




In-Network Provider

Non


Urgent Care Facility $35 copay, then 100%



$35 copay then 70%

after deductible

Skilled Nursing Facility 100% 70% after deductible 90% after


In-Patient Rehabilitation 100% 70% after deductible 90% after


Home Health Care Services 100% 70% after deductible 90% after


Hospice* 100% 70% after deductible Inpatient: 90% after deductible

Outpatient: 100%


Durable Medical Equipment (DME)/ External Prosthetic Devices

100% 70% after deductible 90% after deductible


Hearing Aids, repairs, batteries and appliances

100% up to $5,000 per participant every 3 years

70% after deductible, up to $5,000 per participant every 3

years

90% after deductible, up to

$5,000 per participant every 3

years

70% after deductible,

up to $5,000 per participant

every 3 years

Acupuncture 100% (based on

vendor’s guidelines)

70% after deductible (based on vendor’s guidelines)

90% after deductible (based

on vendor’s guidelines)

70% after deductible (based on vendor’s

guidelines)

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Appendices 27

BENEFIT




In-Network Provider

Non


PHARMACY BENEFITS

Preventive Drugs 100% coverage 70% after deductible 100% coverage 60% after deductible

Pharmacy: Retail (30 day)

$7.50/$35/$55

Generic- $10 copay

Brand Preferred- 60% coinsurance, $60 max to be increased $10 Plan Year following DOS+2; $10 Plan Year

50% coinsurance

(Inin no case can the 50% insurancecoinsurance be less than what would have been

paid in-network.)

$10/$25/$50; may be increased by the Company up to $4 annually for second and third tiers

(Covered individual pays the cost of the drug if less than the copayment.)90%

coinsurance after deductible

5070%

(In no case can the 50% insurance be

less than what would have been

paid in-network.)

coinsurance

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Appendices27

BENEFIT




In-Network Provider

Non


following DOS+4; and $5 Plan Year following DOS +5

(Covered individual

pays the cost of the drug if less than the copayment.)Brand Non-Preferred – 50% coinsurance, $90 max to be increased $10 Plan Year following DOS+2; $10 Plan Year following DOS+4; and $5 Plan Year following DOS+5

after deductible

Pharmacy: Mail Order (90 day)

$7.50/$65/$115Generic- $20 copay

Brand Preferred- 70% coinsurance, $120 max to be increased $10 Plan Year following DOS+2; $10 Plan Year following DOS+4; and $5 Plan Year following DOS+5

Brand Non-Preferred – 60% coinsurance, $180 max to be

Not covered

$10/$60/$110;

may be increased by the Company up to $2

annually for second and third tiers90%

coinsurance after deductible

Not covered

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Appendices 27

BENEFIT




In-Network Provider

Non


increased $10 Plan Year following DOS+2; $10 Plan Year following DOS+4; and $5 Plan Year following DOS+5

Specialty Drugs 50% coinsurance ($200 max)

Not covered

50% coinsurance after deducible ($200 max)

Not covered

Pharmacy Out-of Pocket Limit

Combined with Medical



Combined with

Medical

Mental Health/Substance Abuse*

90%Outpatient Visit: $20 copay

(must be preauthorized)Inpatient:

100%

5070% (must be preauthorized)after deductible

90% (must be preauthorized)after

deductible

5070% (must be

preauthorized)after

deductible

Substance Abuse ($50,000 lifetime benefit maximum)

90% (must be preauthorized)

50% (must be preauthorized) 90% (must be preauthorized)

50% (must be preauthorized)

Employee Assistance Program (EAP) (available to covered pilot and any person living in household)

100% up to 8 visits; must be

preauthorized 0%Not covered

100% up to 8 visits; must be preauthorized

0%Not covered

*Member responsible for preauthorization, see Note 5 below. ** The in-network and out-of-network deductibles are separate and do not cross

accumulate. The same applies to in-network and out-of-network out-of-pocket maximums. In Pilot Plus coverage, the individual deductible and out of pocket maximum applies to each individual covered until the family deductible and out of pocket maximum are reached.

496

Appendices27

2. DENTAL BENEFITS Section 27: Appendix A Federal Express Corporation Group Health Plan for Pilots

BENEFIT

CDHP Orange with HSA CDHP Orange with HRA

In-Network Provider

Out-of-Network

Coinsurance 80% after deductible 60% after deductible

Company HSA and HRA Funding (Wellness rewards contributions/credit to HSA or HRA in lump sum as soon as practicable after January 1; other HSA and HRA contributions/credit will be 1/12th each month.)

Starting 2017 and beyond:

Pilot Only- $1,200* Pilot plus- $2,400*

*Plus: $300 wellness reward for each covered pilot and covered spouse

Deductible** (pilot only/pilot plus) (includes all copays, medical and pharmacy coinsurance for CDHP Orange Plan)

Pilot Only $2,500 Pilot Plus $2,600 per individual (after 2016, minimum allowed by law, but not below $2,500) or $5,000

family

Pilot Only $5,000 Pilot Plus $5,000 per

individual or $10,000 family

Maximum Out-of-Pocket** (includes deductible, copays and all pharmacy and medical coinsurance)

Pilot Only$4,500 Pilot Plus $4,500 per individual or $9,000

family

Pilot Only $9,000 Pilot Plus $9,000 per

individual or $18,000 family

Office Visit (PCP/Specialist) 80% after deductible 60% after deductible

Preventive Services 100% (based on vendor standard guidelines) 60% after deductible

Lab and x-ray

80% after deductible If services performed in

physician office, may be subject to office visit

payment.


Chiropractic Services 80% after deductible 60% after deductible

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Appendices 27

BENEFIT


In-Network Provider

Out-of-Network

Physical Therapy, Speech Therapy, Occupational Therapy

80% after deductible (based on vendor

standard guidelines)

60% after deductible (based on vendor standard

guidelines)

Inpatient Hospital Services* 80% after deductible 60% after deductible

Maternity Office Visits 80% after deductible 60% after deductible

Outpatient Surgery* 80% after deductible 60% after deductible

Emergency Services

80% after deductible $500 copay for the 3rd and any subsequent ER visits for an individual, waived if admitted, then 80% Any ER visit which results in hospital admission will not count towards total visits. Ambulance: Covered at 80% after deductible if an emergency

80% after deductible $500 copay for the 3rd and any subsequent ER visits for an individual, waived if admitted, then 60% Any ER visit which results in hospital admission will not count towards total visits. Ambulance: Covered at 80% after deductible if an emergency

If not a true emergency, covered at 60% after deductible

Urgent Care Facility 80% after deductible 60% after deductible

Skilled Nursing Facility 80% after deductible 60% after deductible

In-Patient Rehabilitation 80% after deductible 60% after deductible Home Health Care Services 80% after deductible 60% after deductible

Hospice* 80% after deductible Outpatient: 100% 60% after deductible

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Appendices27

BENEFIT


In-Network Provider

Out-of-Network

Durable Medical Equipment (DME)/ External Prosthetic Devices

80% after deductible 60% after deductible

Hearing Aids, repairs, batteries and appliances

80% after deductible, up to $5,000 per

participant every 3 years

60% after deductible, up to $5,000 per participant every 3

years

Acupuncture 80% after deductible (based on vendor’s

guidelines)

60% after deductible (based on vendor’s guidelines)

PHARMACY BENEFITS

Preventive Drugs 100% coverage 60% coinsurance after deductible

Pharmacy: Retail (30 day)

80% coinsurance after deductible

60% coinsurance after deductible

Pharmacy: Mail Order (90 day)

80% coinsurance after deductible Not covered

Specialty Drugs 50% coinsurance after deductible

($250 max) Not covered

Pharmacy Out-of Pocket Limit Combined with Medical Combined with Medical

Mental Health/Substance Abuse*

80% after deductible 60% after deductible

Employee Assistance Program (EAP)* (available to covered pilot and any person living in household)

100% up to 8 visits; must be preauthorized Not covered

*Member responsible for preauthorization, see Note 5 below. ** The in-network and out-of-network deductibles are separate and do not cross

accumulate. The same applies to in-network and out-of-network out-of-pocket maximums. In Pilot Plus coverage, the individual deductible and out of pocket maximum applies to each individual covered until the family deductible and out of pocket maximum are reached.

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Appendices 27

2. DENTAL BENEFITS

BENEFIT Buy Up OptionDENTAL PLAN Base Option

Dental Benefit Deductibles

$50/ Per individual

$100 Family

$100/$300

Dental Services ($2,750 annual benefit limit; $30,000 lifetime benefit limit)

Class I (Preventive) Services: 90100%

•dentalDental x-rays, •sealantsSealants (permanent molars

only), •preventivePreventive care (first two

checkups in calendar year are not subject to deductible)

Class II Services: 80% after deductible •Restorations (fillings), including amalgam,

silicate, plastic and composite restoration •Endodontics •Oral Surgery •Extractions •Other services Class III Services: 80% after deductible

•Crowns and/or replacement crowns when medically necessary

Class IV Services: 50% after deductible

•Orthodontics •Full or partial denture or bridgework if

replaces natural teeth extracted while individual is covered or if replaces another denture or bridge that is at least five years old when individual has been covered under the plan for at least six months

Dental Implants for non-accidents

Class I (Preventive) Services: 80%

• dental x-rays,

• sealants (permanent molars only),

• preventive care (first two checkups in calendar year are not subject to deductible)

Class II Services: 80%

• Restorations (fillings), including amalgam, silicate, plastic and composite restoration

• Endodontics

• Oral Surgery

• Extractions

• Other services

Class III Services: 75%

• Crowns and/or replacement crowns when medically necessary

Class IV Services: 50%

• Orthodontics

• Full or partial denture or bridgework if

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Appendices27

replaces natural teeth extracted while individual is covered or if replaces another denture or bridge that is at least five years old when individual has been covered under the plan for at least six months

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Appendices 27

3.

3. VISION BENEFITS

BENEFIT In-Network Provider NonOut-of-Network Provider

Vision Benefit: •Preventive Services (one

routine eye exam, including dilation when indicated by provider, once every 12 monthscalendar year)

•One pair of frames every 24

months2 calendar years •One pair of standard glass,

plastic or safety lenses every 12 months calendar year (single vision, bifocals, trifocals, and lenticular lenses)

•Contact lenses every 12

monthscalendar year (based on vendor’'s guidelines)

•100% •100% coverage

up to $115 after $15 copay

•100% after $15 copay

•100% coverage

up to $110

•Up to $50 reimbursed

•Up to $120

reimbursed •Single vision: up to

$35 reimbursed; Bifocal: up to $50 reimbursed; Trifocal: up to $65 reimbursed; Lenticular: up to $90 reimbursed

•Up to $135 reimbursed for exam, fitting, follow-up and materials; up to $55 reimbursed for materials only

Notes:

1. All medical and mental health services are subject to $3,000,000 lifetime maximum benefit and determination of medical necessity based on vendor’s guidelines.

2. Medical out-of-network covered charges are limited to 90th percentile Reasonable and Customary (R&C). A covered individual who is out-of-network is responsible for any balance above R&C.

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Notes to Appendix A:

1. An out-of-network expense shall be processed as an in-network expense where there is no in-network provider within 30 miles of the member’s residence or inadequate availability of an in-network provider, based on the vendor’s standard guidelines.

2. Out-of-network claims processed by Anthem will be determined in accordance with the agreements between the Company and the Association dated December 9, 2011 (with respect to out-of-network professional services) and September 26, 2012 (with respect to out-of-network facility services).

3. 3. Members shall have the ability to self-refer to any in-network provider (including any medical specialist) without any penalty or reduction in benefits.

4. 4. Preventive care benefit is subject to vendor’s standard guidelines.Preventive care benefit is subject to vendor's standard guidelines.

5. Subject to vendor capabilities, the member is not responsible for obtaining preauthorization for any in-network services, with the exception of mental health, substance abuse and EAP services. The member is responsible for obtaining out-of-network preauthorization for in-patient hospital services, outpatient surgery, skilled nursing facility services, in-patient rehabilitation services, home health services, hospice, mental health and substance abuse services. While on Company business (domestic and international), pilots are covered under in-network provisions for all urgent or emergency benefits.

5. Preauthorization is required for EAP services and hospice. Preauthorization is recommended for in-patient hospitalizations and certain diagnostic procedures and outpatient surgeries. Members are responsible for ensuring that preauthorization is completed. If preauthorization is required but not completed prior to services rendered and claims submission, claims will be denied until preauthorization is completed and the services are determined medically necessary. Failure to obtain any recommended preauthorization of specific services will result in denial of benefits determined not medically necessary. This process applies for in-network and out-of-network services.

6. 6. If not on Company business, whileWhen traveling outside of the United States, members are covered under in-network provisions and out-of-network provisions the same as if they were in the United Statesthe U.S., all medically necessary care that is deemed to be emergent or urgent will be covered at the in-network benefit level. If care is deemed not urgent or emergent, services will be covered as out-of-network benefits.

7. 7. Dental and vision benefits are unbundled from medical/mental health/substance abuse/EAP. Pilots may (i) opt out of dental and/or vision coverage, or (ii) elect dental and/or vision coverage for themselves and eligible dependents.

8. 8. Dental and vision services subject to vendor’s guidelines. Covered individuals may not receive benefits for spectacle lenses and contact lenses

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Appendices 27

during the same 12-month period.Dental and vision services are subject to vendor's guidelines.

9. Vision benefit: Lens options include: oversized, PGX (sun-sensitive glass), progressive addition multifocal, blended bifocal, polycarbonate, solid, gradient, or sun-tinted plastic, UV and scratch-resistant coatings, quadrifocal (safety glasses only), full-spectrum, faceted, ski-type, low-power aspheric, and intermediate. Conventional bifocals will be supplied for anyone who is unable to adapt to progressive addition multifocal lenses up to 60 days from the date the eyewear is dispensed.

10. Vision benefit: Covered individual may choose from vendor’s collection of standard soft daily wear, planned replacement and disposable lenses or 100% coverage up to $110, which includes lenses, care kit for proper cleaning and sterilization, and related expenses (e.g., fitting fee). Contact lenses are dispensed subject to vendor’s requirements, including but not limited to separate fitting exam and follow-up care from the routine eye exam for new (to the provider or first time) wearers. First time wearers must pay $10 fee toward the cost of professional fitting.

11. In-network buy-up option in California is subject to the California rules for buy-up plans.

9. The Company will offer plan options for those pilots and eligible dependents living in Hawaii on terms no less favorable than the terms offered to any other employee, as required by state law.

10. 12. Covered non-network dental charges processed by MetLife are limited to 90th percentile R&C. (FAIR Health will be substituted for R&C if replacement dental vendor is capable of processing dental charges using FAIR Health.)

13. Should the co-pays not be increased to the maximum allowed for a particular calendar year for the prescription drug benefit, the balance shall not carryover to the next year but be limited to the remaining increases allotted for each subsequent year.

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Appendices27

Section 27 Appendix B

FEDERAL EXPRESS CORPORATION RETIREE GROUP HEALTH PLAN FOR PILOTS EFFECTIVE JANUARY 1, 20XX (TBD)

1. MEDICAL BENEFITS (INCLUDING, PHARMACY, MENTAL HEALTH AND SUBSTANCE ABUSE BENEFITS) A. Buy Up Option. Terms for the Buy Up Option are the same as the terms of

the Buy Up Option for active pilots as described in Section 27, Appendix A. B. CDHP Options (Without HSA or HRA). Terms of the CDHP Options are the

same as the terms of the CDHP Options for active pilots, as described in Section 27 A, except that there is no Company contribution to an HSA or HRA.

C. The Company will offer plan options for those pilots and eligible dependents living in Hawaii on terms no less favorable than the terms offered to any other employee, as required by state law.

D. Pre-Medicare Retiree HRA Only option. $4,813 for pilot and $4,813 for covered spouse or domestic partner per year credited to an HRA. The $4,813 will be prorated in the year of retirement. Once this option is elected, the pilot and covered spouse or domestic partner are not allowed to elect any other Company Health Plan.

E. High Deductible Option. Terms of the High Deductible Option are summarized below:

Estimated Initial Contribution: $85 retiree, $85 spouse, $25 child/children

Estimated Annual Increase: $30-$45/yr.

In-Network Out-of-Network

Deductible $500/ per individual

$1,500 family

$1,000/ per individual

$3,000 family

Out-of-Pocket Maximum (including deductible)


$9,000 family

(no copayments & no prescription drug copayments/coinsurances apply to the out-of-pocket maximum)


$15,000 family

(no copayments & no prescription drug copayments/coinsurances apply to the out-of-pocket maximum)

Office Visits $70 copayment PCP/$100 Specialistspecialist


Preventive Care 100% coverage Not covered

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Appendices 27

In-Network Out-of-Network

$70 copayment applies if PCP bills for an office visit

Inpatient Hospital* 80% after deductible


Outpatient Surgery* $250 copayment, then 80% coverage after deductible


Emergency Room $150 copayment, then 80% coverage after deductible


Urgent Care Facility $70 copayment, then 80% coverage after deductible


Outpatient Lab, Radiology, and Diagnostic

$250 copayment, then 80% coverage after deductible


Lab/X-rayChiropractic Services

$250 copayment, then 80% coverage after deductible, 25 annual visits maximum

60% after deductible, 25 annual visits maximum

SNFSkilled Nursing Facility*

$250 copayment, then 80% coverage after deductible


Prescription Drug Retail

Mandatory Generic: $10

Preferred Brand: 50% ($50/ Minimum; $150/Maximum)

Non-Preferred Brand: 50% ($75/ Minimum; $175/ Maximum)

Specialty Tier: 50% coinsurance, ($200 Maximum)

50% coverage

Specialty Tier- Not Covered

Prescription Drug Mail Order

Mandatory Generic: $10

Preferred Brand: 50% ($100/ Minimum; $300/Maximum)

Non-Preferred Brand: 50% ($150/Minimum; $350/ Maximum)

No coverage

*Member Responsible for Preauthorization as stated in Appendix A, Note 5.

2. DENTAL BENEFITS

Dental benefits are the same as those for domestic based active pilots, as described in Section 27, Appendix A.

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Appendices27

3. VISION BENEFITS

Vision benefits are the same as those for domestic based active pilots, as described in Section 27, Appendix A.

4. NOTES Benefits described in this Appendix B are subject to the Appendix A Notes (set forth at the end of Section 27, Appendix A).

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Appendices 27

Section 27: APPENDIX C

FEDERAL EXPRESS CORPORATION GROUP HEALTH PLAN FOR PILOTS

PILOTS BASED IN FDAs

1. MEDICAL BENEFITS (INCLUDING PHARMACY, MENTAL HEALTH AND SUBSTANCE ABUSE BENEFITS) Medical benefits for pilots based in FDAs are provided under the Federal Express Corporation Group Health Plan for Pilots through the International Plan administered by GeoBlue, summarized as follows:

International Plan-Administered by GeoBlue (Available to Internationally-based Pilots only)

Outside the United

States In the United States

In-Network Out-of-Network Lifetime Maximum Benefit N/A N/A N/A Annual Deductible $0 $0 $0 Out-of-Pocket Maximum (includes deductible, copays, coinsurance and pharmacy)

$1,650 per individual $4,125 family



Coinsurance 100% 90% 70% Preventive Care (Based on Vendor Standard Guidelines)

100% 100% 70%

Office Visit $0 $30 copay 70% Inpatient Hospital Services (Semiprivate Room)

100% 90% 70%

Outpatient Lab, Radiology, Diagnostic and Pre-Admission Testing

100% 90% 70%

Maternity 100% $30 copay for prenatal visits 90% coverage for delivery

70%

Emergency Services 100% coverage Ambulance coverage: 100%

$50 copay (waived if admitted) then 90% $500 copay for the 3rd and any subsequent ER visits for an individual, waived if admitted, then 90%

$50 copay (waived if admitted) then 90% $500 copay for the 3rd and any subsequent ER visits for an individual, waived if

508

Appendices27

Any ER visit which results in hospital admission will not count towards total visits.

Ambulance: 90%

admitted, then 70% Any ER visit which results in hospital admission will not count towards total visits. Ambulance: 90%

Urgent Care Facility 100% 90% 70% Outpatient Surgery 100% 90% 70% Chiropractic Care and Acupuncture

100% up to 20 visits annual maximum benefit



Physical, Speech and Occupational Therapy

100% based on vendor standard guidelines



Skilled Nursing Facility 100% up to 120-day limit annually

90% up to 120-day limit annually

70% up to 120 day limit annually

Inpatient Rehabilitation 100% 90% 70%

Home Health Care 100% up to 30 visits annual maximum

90% up to 30 visits annual maximum

70% up to 30 visits annual maximum

Hospice 100% Inpatient 90% Outpatient 100%

Inpatient 70% Outpatient 70%

Durable Medical Equipment (DME/External Prosthetic Devices)

100% 90% 70%

Hearing Services, Hearing Aids, Repairs, Batteries and Appliances (based on vendor’s guidelines)

100%, $5,000 per covered individual every 3 years



Prescription Drugs (Retail) for 1-Month Supply

90% coinsurance 70% coverage for injectables

Generic (30 day)- $10 copay

Brand Preferred- 60% coinsurance, $60 max to be increased $10 Plan Year following DOS+2;

50% coinsurance

In no case can the 50% coinsurance be less than what would have been paid in-network

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Appendices 27

$10 Plan Year following DOS+4; and $5 Plan Year following DOS+5

Brand Non-Preferred – 50% coinsurance, $90 max to be increased $10 Plan Year following DOS+2; $10 Plan Year following DOS+4; and $5 Plan Year following DOS+5

Prescription Drugs (Mail Order) for 3-Month Supply

Generic: $10 copay Brand: $60 copay Non-Preferred

Brand: $60 copay 70% coverage for

injectables

Generic- $20 copay

Brand Preferred- 70% coinsurance, $120 Max to be increased $10 Plan Year following DOS+2; $10 Plan Year following DOS+4; and $5 Plan Year following DOS+5

Brand Non-Preferred – 60% coinsurance, $180 Max to be increased $10 Plan Year following DOS+2; $10 Plan Year following DOS+4; and $5 Plan Year following DOS+5

No coverage

Specialty Drugs 50% coinsurance ($200 max)

50% coinsurance ($200 max)

Not covered

Employee Assistance Program (EAP) Anthem EAP

100% coverage for short-term counseling sessions up to 8 visits All services must be preauthorized.

100% coverage for short-term counseling sessions up to 8 visits All services must be preauthorized.

No coverage

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Appendices27

Mental Health/Substance Abuse

Inpatient: 100% coverage Outpatient: 100% coinsurance

Inpatient: 90% Outpatient: $30 copay

70%

511

Letter—Process for Handling Potential Onset of Excise Tax

27

[Date] Captain Charles W. Dyer Chairman, FedEx Master Executive Council Air Line Pilots Association, International 1770 Kirby Parkway, Suite 300 Memphis, TN 38138 RE: Process for Handling Potential Onset of Excise Tax Captain Dyer: While bargaining the 2015 Collective Bargaining Agreement, the parties had considerable discussions regarding the excise tax provided for in the Patient Protection and Affordable Care Act (hereinafter Excise Tax and PPACA). The parties agreed to certain measures designed to address the possible imposition of an Excise Tax which are memorialized in the CBA at Section 27.A.11. The parties have further agreed that, in the event that those measures are insufficient to avoid an Excise Tax, additional changes shall be made to the pilot health plan(s) that are projected to incur an Excise Tax so that the tax is avoided. Correspondingly, the pilot group shall receive the value that it otherwise would have received had the Excise Tax ceiling not forced plan reductions. (See attached example.) In order to accomplish these goals, the parties specifically agree to the following:

Data sharing and joint review as soon as practicable prior to the first possible plan year that implicates the Excise Tax. Based on the parties’ current estimates, a preliminary Excise Tax estimate will be available sometime in the first half of the year prior to the year in which the Excise Tax could be implicated. (e.g., a preliminary estimate of any potential Excise Tax for 2018 would be available in the first half of 2016.) The parties currently anticipate that this preliminary data would be shared no later than June 1.

Updated data sharing and joint review as soon as practicable after the initial meeting in the event that updated projections become available.

A projection due date wherein the parties will receive a final projection concerning the Excise Tax implications for the following plan year. Unless otherwise agreed upon by the parties, the projection due date shall be no later than January 15 of the year prior to the plan year at issue. (e.g., January 15, 2017 for the 2018 plan year.)

A “meet and confer” period wherein the parties attempt to reach a mutually acceptable means of reducing plan value to the extent necessary to avoid the Excise Tax and returning value to the pilot group. The parties agree that such meetings shall occur during the month of February.

In the event that the parties fail to reach a mutually acceptable solution by March 1, a Mediation/Arbitration shall follow.

512


27

The parties shall select a neutral arbitrator using the process set forth at Section 27.T.8. The parties recognize that this selection may need to occur prior to some or all of the deadlines referenced above.

The Mediation/Arbitration shall commence by April 1. The Mediation/Arbitration shall be scheduled for a total of 5 days. The parties

agree to mediate on Days 1 and 2, and arbitrate on Days 3, 4, and 5. The arbitrator shall determine the need for post-hearing briefs.

The arbitration shall be “baseball” style with each side submitting one proposal and the arbitrator adopting one or the other as the decision of the System Board.

The issue to be decided shall be: “Which proposal avoids the Excise Tax and returns lost value to the pilot group in the most appropriate manner?”

The arbitrator shall render the decision no later than April 30 of the year preceding the Plan Year for which an Excise Tax has been projected.

In addition, the parties fully recognize that future regulations and government guidance as well as the availability of pertinent data may require modifications to the above process. Deadlines contained in this agreement may therefore be modified, orally or in writing, by agreement of the parties. Modifications to the process itself may be implemented if agreed upon by the Vice President, Labor Relations Law and the Association’s MEC Chairman. If this reflects your understanding, please indicate your agreement by signing below. Sincerely, FEDERAL EXPRESS CORPORATION John D. Maxwell Vice President, Labor Relations Accepted and agreed to on behalf of the Air Line Pilots Association: _________________________________ Captain Charles W. Dyer Chairman, FedEx ALPA MEC

Dated this _____ day of ____ 2015

513


27

Excise Tax Example: If health benefits are reduced in order to avoid an excise tax, the lost value to pilots shall be determined using the following methodology. Assume that the cost of the Pilot Plus tier of the baseline Purple CDHP Plan is projected to be $30,000 in 2022 and that the “Excise Tax Limit” is $27,500 for that Plan year. In order to avoid the Excise Tax, plan design changes (e.g., changes in deductibles, out of pocket maximums, coverage levels, etc.) are made which reduce the cost of that Plan from $30,000 to $27,500, thereby avoiding the Excise Tax. The difference in plan cost is $2,500 and the lost value to the pilots is the Company share of that cost, which is 84% of $2,500 or $2,100 ($2,500 x 0.84 = $2,100). As a result, the Company will return $2,100 (for each affected pilot) back to the pilot group in a manner agreed upon by the parties and in a tax efficient manner where practicable or, in the absence of an agreement, by the means selected by the arbitrator in the arbitration described in this letter.

514

Letter—Optional Life Working Group (OLWG)27

[Date] Captain Charles W. Dyer Chairman, FedEx Master Executive Council Air Line Pilots Association, International 1770 Kirby Parkway, Suite 300 Memphis, TN 38138 RE: Optional Life Working Group (OLWG) – Plan Changes for OLWG Consideration Captain Dyer: The purpose of this letter is to set forth potential changes in the Optional Life Plan to be considered by the Optional Life Working Group (OLWG) in developing Request for Proposals (RFP) criteria and making recommendations for replacing the current insurance carrier and insurance policy(ies) for Optional Life and Optional AD&D under Section 27.F. of the collective bargaining agreement. These potential changes may include (but are not limited to) the following:

Establishment of new active and port rates Addition of smoker/non-smoker rates Increase in optional coverage of pilot to $1.5 million Increase in optional coverage of spouse or domestic partner to $500,000 Increase in optional coverage of spouse or domestic partner, without evidence of

insurability, to $75,000 Increase in optional coverage of child to $15,000 Reduction in optional coverage of new hire pilots, without evidence of insurability, for pilots

hired after effective date of new policy Extension of open enrollment offer, without evidence of insurability, for optional coverage

of pilot and spouse or domestic partner, in connection with establishment of new policy Increase in maximum amount of portability coverage

If this reflects your understanding, please indicate your agreement by signing below. Sincerely, FEDERAL EXPRESS CORPORATION John D. Maxwell Vice President, Labor Relations

Accepted and agreed to on behalf of the Air Line Pilots Association:


Dated this _____ day of ____ 2015.

515

Letter—Status of Insurance Plans Listed in Section 27.A.1., Footnote 1

27

[Date] Captain Charles W. Dyer Chairman, FedEx Master Executive Council Air Line Pilots Association, International 1770 Kirby Parkway, Suite 300 Memphis, TN 38138 RE: Status of Insurance Plans Listed in Section 27.A.1., Footnote 1 Captain Dyer: The purpose of this letter is to identify, with respect to each of the Insurance Plans listed in Footnote 1 of Section 27.A.1. of the collective bargaining agreement, the plan statements and plan amendments that are adopted and in effect as of [the day before DOS]. It is acknowledged that the new collective bargaining agreement requires some of the Insurance Plans to be further amended in accordance with Section 27. Following are the plan statements and plan amendments in effect as of [the day before DOS]:

(a) Federal Express Corporation Basic Life Insurance Plan, effective as of January 1, 2008, as amended through the tenth amendment;

(b) Federal Express Corporation Optional Life Insurance Plan, effective as of January 1, 2003, as amended through the fifteenth amendment;.

(c) FedEx Corporation Accidental Death and Dismemberment Insurance Plan effective January 1, 2003, as amended through the eighteenth amendment;

(d) FedEx Corporation Optional Accidental Death and Dismemberment Plan, effective as of January 1, 2003, as amended through the twenty-first amendment;

(e) FedEx Corporation Business Travel Accident Insurance Plan, effective as of January 1, 2003, as amended through the thirty-first amendment;

(f) Federal Express Corporation CRAF Insurance Policy, effective as of March 10, 2003, as amended through the eighteenth amendment;

(g) Federal Express Corporation Survivor Income Benefit Plan, effective as of January 1, 2002, amended October 1, 2005 and closed as of December 31, 2006;

(h) Federal Express Corporation Group Health Plan for Pilots, effective as of January 1, 2008, as amended through the fifth amendment; including GeoBlue plan, effective as of January 1, 2008, as amended through the second amendment;

(i) Federal Express Corporation Retiree Group Health Plan for Pilots, effective as of January 1, 2008, as amended through the fifth amendment;

(j) Federal Express Corporation Dependent Care Reimbursement Plan, effective as of January 1, 2009, as amended and restated effective January 1, 2015;

(k) Federal Express Corporation Health Care Contribution Plan, effective as of January 1, 2003;

(l) Federal Express Corporation Long Term Disability Plan for Pilots, as amended and restated effective as of October 30, 2006, as amended through the first amendment;

(m) Federal Express Corporation Health Care Savings Account Plan for Pilots, effective as of January 1, 2007, as amended through the third amendment;

(n) Federal Express Corporation Health Reimbursement Arrangement for Retired Pilots, effective as of January 22, 2007, as amended through the second amendment;

516

Letter—Status of Insurance Plans Listed in Section 27.A.1., Footnote 1

27

(o) Group Legal Services Plan for Federal Express Corporation and Affiliated Employers, as effective October 1, 2001, as amended through the second amendment; and

(p) Federal Express Corporation Group Long-Term Care Insurance Plan, as effective May 1, 2001; and closed as of January 1, 2013.

If this reflects your understanding, please indicate your agreement by signing below. Sincerely, FEDERAL EXPRESS CORPORATION John D. Maxwell Vice President, Labor Relations




517

Letter—Medical Benefit Tiers 27 [Date] Captain Charles W. Dyer Chairman, FedEx Master Executive Council Air Line Pilots Association, International 1770 Kirby Parkway, Suite 300 Memphis, TN 38138 RE: Medical Benefits Tiers Captain Dyer: The purpose of this letter is to memorialize our agreement regarding monthly premiums/contributions for four tiers under Section 27.G. with respect to the Group Health Plan for Pilots and Section 27.H. with respect to the Retiree Group Health Plan for Pilots. Until 2017, monthly premiums/contributions for medical benefits will be based on four separate coverage tiers. Beginning in 2017, monthly premiums/contributions for medical benefits will be based on two separate coverage tiers, pilot-only and pilot-plus. The pilot-plus coverage tier will be divided into three sub-tiers (pilot + child(ren), pilot + spouse, and pilot + family). The amount of premiums/contributions for a sub-tier will be the percentage of total projected costs for such sub-tier that is actuarially determined to achieve the same amount of premiums/contributions that would have been required had the premiums/contributions been based on four coverage tiers. If this reflects your understanding, please indicate your agreement by signing below. Sincerely, FEDERAL EXPRESS CORPORATION John D. Maxwell Vice President, Labor Relations Accepted and agreed to on behalf of the Air Line Pilots Association:



518

Retirement 28

SECTION 28 RETIREMENT (Pension Benefits) Note: This Section 28 is reprinted verbatim from the negotiated Agreement of October 30, 2006. Some details have changed, however, through processes other than subsequent negotiations [e.g., by operation of the Agreement itself (for instance, contractually prescribed premium increases), vendors ceasing to exist, legally mandated changes, etc.]. Please consult the 2011 Pilot Benefit Book (“PBB”) for the most up-to-date information. A. General

1. The Company shall continue to provide retirement and related benefits through the Retirement Plans1 and under the terms and conditions of the Retirement Plans, as in effect as of the date of signing of this Agreement, except as specifically provided herein. The terms and conditions of the Retirement Plans, insofar as they affect pilots, shall not be changed, except as provided in this Agreement or by the written agreement of the Association. The Pilot Benefit Book ("PBB") shall be updated in accordance with Section 28.A.7. to reflect changes made by this Agreement and any other changes made pursuant to Section 28.A.5.

2. TheExcept as otherwise provided in this Section 28, the Company shall be responsible for the establishment, control, management, administration and attendant expenses of the Retirement Plans and all disputes concerning those claims for benefits shall be settled as described in Section 28.A.3.4.

1 The following Retirement Plans are effective as of the date of this Agreement:in effect as of [DOS]: NOTE- Parties to agree upon a separate letter documenting the most recent restatement and amendment for each plan as of DOS. (a) The FedEx Corporation Employees’ Pension Plan, effective as of May 31, 2001; (b) The Federal Express Corporation Pilots' Retirement Savings Plan, effective as of June 1, 2002; (c) The Flying Tiger Line Inc. Variable Annuity Pension Plan for Pilots, effective as of January 1, 1997; (d) The Federal Express Corporation Pilots' Money Purchase Pension Plan, effective as of June 1, 2002; (e) The Federal Express Corporation Non-Qualified Pension Plan for Pilots, effective as of June 1, 1999; and (f) The Federal Express Corporation Non-Qualified Section 415 Excess Pension Plan for Pilots, effective as of June 1,

1999..

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Retirement 28

3. In order that the Association may have the most current information regarding the funded status of the FedEx Corporation Employees Pension Plan (the Pension Plan), the Company agrees that Association's designee will receive electronic (email) notification of FedEx Corporation's securities filings (e.g., 10-K, 10-Q) which addresses the funded status of the Pension Plan as those filings are released. In addition, the Company, through its vendors willRetirement Plans, the Company shall provide the Association with copies of the annual reports of the investment options in the pilots' defined contribution plans as those reports are released in order that the Association may review the performance of those investment options.the following documents: a. Actuarial Valuation Report for Funding Purposes along with

accompanying Data, Assumptions, Methods and Provisions, annually, on or about April 30;

b. PRSP and PMPPP Financial Reports, quarterly; c. 408(b)(2) Reports for PMPPP and PRSP (Vanguard All-In-Fee

Disclosure), annually, on or about August 31; d. Notice of Qualified Default Investment Alternative for the PRSP and

PMPPP, annually, on or about November 30; e. Annual Funding Notice, annually, on or about September 30; f. Participant Fee Disclosure, annually, on or about July 31; g. Summary Annual Reports, annually; and h. AFTAP Certification for Pension Plan, annually, on or about March 31. The distribution schedule may be modified as agreed upon by the parties. The Association, and its designees, shall keep this information confidential, in accordance with the parties’ Confidentiality Agreement.

4. Review of benefit denials shall be as described in this Agreement, the Retirement Plans and the PBB. Benefit denials shall be reviewed by the Federal ExpressFedEx Corporation Benefit ReviewRetirement Appeals Committee (“BRCRAC”) or the appropriate claims-paying administrator. If the pilot is not satisfied with the decision regarding a Retirement Plan benefit, the pilot may either seek review of the decision in accordance with the provisions of Section 28.FG. within 120 days of the CommitteeRAC’s decision or opt to pursue a judicial remedy available under ERISA. A pilot’s request for judicial review of a benefit decision under the Employee Retirement Income Security Act of 1974, as amended from time to time (“ERISA”) shall be reviewable by a court of competent jurisdiction under ERISA, and such review shall not be barred by the Railway Labor Act (“RLA”)..

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Retirement 28

5. All of the Retirement Plans’ terms and conditions shall remain unchanged insofar as they affect pilots, except as specifically provided for herein or except as required by law. If an amendment to the Retirement Plans or the PBB is required by law, if there is more than one alternative available under the law with respect to such required amendment(s), and if the effectuation of either alternative would result in similar cost to the Company, the consent of the Association to one of the alternatives shall be required for such plan amendment. Such consent shall not be unreasonably withheld. The Association’s consent shall not be required for any amendment described in this paragraph if more than one alternative is available under the law but the effectuation of one or more of the alternatives would result in increased cost to the Company over the other available alternatives.

6. The Company reserves the right to select the trustees, record keepersrecordkeepers and other vendors it believes necessary to administer the Retirement Plans. The Company shall first notify and consult with the Association before changing a recordkeeper.

7. No later than April 28, 2007 (180 days after October 30, 2006, the date of signing), theThe Company shall promptly provide the Association with proposed updates to the PBB reflecting changes made as part ofby this Agreement. No later than 60 days after receipt of the proposed updates, theThe Association shall promptly meet with the Company and provide comments. As soon as practicable thereafter, a PBB that is mutually satisfactory to the Company and the Association shall be distributed to the pilots. The Association’s approval shall not be unreasonably withheld. The foregoing to the contrary notwithstanding, the failure of the Association to timely approve such updates shall not prevent the Company from distributing the updates to the pilots in accordance with the provisions of 29 U.S.C. §1104(b). The parties acknowledge that updates pertaining to benefit changes that are scheduled to take effect on January 1, 2008, may not be available for inclusion in the 2007 update to the PBB.1024(b). With respect to any future updates to the PBB, the Company shall prepare and distribute to the pilots updates to the PBB, as required by 29 U.S.C. §11041024(b). The Association shall be given the opportunity to review and approve such updates; the Association's approval of such updates shall not be unreasonably withheld. The foregoing to the contrary notwithstanding, the failure of the Association to timely approve such updates shall not prevent the Company from distributing the updates to the pilots in accordance with the provisions of 29 U.S.C. §11041024(b).

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8. The Company shall maintain records for a sufficient time and in sufficient detail to be able to confirm all data necessary for the calculation of any benefit payable under the Retirement Plans.

B. Pension Plan

1. The terms and conditions of the FedEx Corporation Employees' Pension Plan ("Pension Plan") as affectaffecting pilots, the Federal Express Corporation Non-Qualified Pension Plan for Pilots ("Compensation Limit Plan"), and the Federal Express Corporation Non-Qualified Section 415 Excess Pension Plan for Pilots ("415 Limit Plan") shall be as provided in the Pension Plan, the Compensation Limit Plan, and the 415 Limit Plan and the PBB except as provided in this Agreement.

2. A pilot's retirement benefit at his normal retirement date (the “Pension Plan Formula”) shall be equal to the greatest of: (i) his final average earnings x 2% x credited years of service with the Company (Max. 25 years) for benefit accrual, (ii) with respect to any pilot having a seniority number as of the date of this Agreement, the benefit described in Section 28.B.44. below, or (iii) with respect to any pilot having a seniority number as of the date of this Agreement, a flat dollar benefit based upon a pilot’s flight hours, equipment flown, and seat position during a plan year. The accrued benefit for a pilot who, prior to the merger of The Flying Tiger Line, Inc. (“FTL”) with the Company, was a participant in any of the FTL pension plans which were merged into the Pension Plan is determined as provided under the terms of the Pension Plan.

3. Final average earnings will be defined as the average of the highest five calendar years of compensation while working for the Company. In no event shall total final average earnings taken into account under the Pension Plan, the Compensation Limit Plan and the 415 Limit Plan exceed $260,000.

4. With respect to any pilot having a seniority number as of the date of signing of this Agreement,October 30, 2006, the benefit set forth in Section 28.B.2.2(ii) of the Agreement shall be the sum of the amounts derived under the computations set forth in Section 28.B.4.a. and, Section 28.B.4.b. (and Section 28.B.4.c., below): a. For pilotsa pilot who had a seniority number as of June 1, 1999,1999

and who also havehad a seniority number as of the date of signing of this Agreement, such pilots'October 30, 2006, such pilot’s final average earnings shall be multiplied by past years of credited service with the Company as of June 1, 1999 (not to exceed a maximum of twenty-five years), multiplied by a multiplier from the following table based on such pilot's years of vesting service with the Company:

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Years of Vesting Service as of June 1, 1999

Multiplier

less than 10 2.00%

10 2.05%

11 2.06%

12 2.07%

13 2.08%

14 2.09%

15 2.10%

16 2.11%

17 2.12%

18 2.13%

19 2.14%

20 2.15%

21 2.16%

22 2.17%

23 2.18%

24 2.19%

25 or more 2.20%

With respect to pilots who performed years of service with The Flying Tiger Line Inc. (“FTL”) prior to August 7, 1989, such pilot’s years of service with FTL shall be taken into account solely for purposes of determining the multiplier described herein, but shall not be taken into account for

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purposes of determining past years of credited service with the Company as of June 1, 1999. The multiplier described above shall be added to the amount described below with respect to any pilot having a seniority number as of the date of this Agreement,October 30, 2006, who, as of June 1, 1999,1999 had attained age 50 and completed fifteen (15) years of vesting service with the Company, (including such pilot’s years of service with FTL):

Age at 6/1/99 Increase

59 and above 0.12%

58 0.11%

57 0.10%

56 0.09%

55 0.08%

54 0.07%

53 0.06%

52 0.05%

51 0.04%

50 0.02%

With respect to Section 28.B.2.(ii), b. The Pension Plan Formula shall multiply final average earnings by 2%

for all years of credited service completed by such pilots on or after June 1, 1999 (which, when added to years of credited service completed prior to June 1, 1999, shall not exceed a maximum of twenty-five (25) years of credited service for benefit accrual), the Pension Plan Formula shall multiply final average earnings by 2%.

For pilots who have a seniority number as of the date of signing of this Agreement but did not have a seniority number as of June 1, 1999, such pilotsA pilot’s final average earnings shall be multiplied by 2% and by years of credited service with the Company (maximum of 25 years) for benefit accrual. for pilots

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Retirement 28

who had a seniority number as of October 30, 2006 but did not have a seniority number as of June 1, 1999.

c. b. For pilots who, as of date of signing of this Agreement,October 30, 2006, have a seniority number, have attained age 50, and who have completed ten (10) or more years of vesting service with the Company, such pilots' final average earnings shall be multiplied by past years of credited service with the Company as of the date of signing of this AgreementOctober 30, 2006 (not to exceed a maximum of twenty-five years), multiplied by a multiplier from the following table based on such pilot's age and years of vesting service with the Company at the date of signing of this Agreementon October 30, 2006:

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Additional Benefit Percentage based on Age/Service

Years of Vesting Service as of

Date of SigningOctober

30, 2006

Age

59 or older

50 51 52 53 54 55 56 57 58

Less than 10 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

10 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01%

11 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01%

12 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01%

13 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01%

14 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01%

15 0.02% 0.02% 0.02% 0.02% 0.02% 0.03% 0.03% 0.03% 0.03% 0.03%

16 0.02% 0.02% 0.02% 0.02% 0.03% 0.03% 0.03% 0.03% 0.03% 0.03%

17 0.02% 0.02% 0.02% 0.03% 0.03% 0.03% 0.03% 0.03% 0.03% 0.04%

18 0.02% 0.02% 0.03% 0.03% 0.03% 0.03% 0.03% 0.03% 0.04% 0.04%

19 0.02% 0.03% 0.03% 0.03% 0.03% 0.03% 0.03% 0.04% 0.04% 0.04%

20 0.02% 0.03% 0.03% 0.03% 0.03% 0.03% 0.04% 0.04% 0.04% 0.04%

21 0.03% 0.03% 0.03% 0.03% 0.03% 0.04% 0.04% 0.04% 0.04% 0.04%

22 0.03% 0.03% 0.03% 0.03% 0.04% 0.04% 0.04% 0.04% 0.04% 0.04%

23 0.03% 0.03% 0.03% 0.04% 0.04% 0.04% 0.04% 0.04% 0.04% 0.05%

24 0.03% 0.03% 0.04% 0.04% 0.04% 0.04% 0.04% 0.04% 0.05% 0.05%

25 or more 0.03% 0.04% 0.04% 0.04% 0.04% 0.04% 0.04% 0.05% 0.05% 0.05%

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With respect to pilots who performed years of service with The Flying Tiger Line Inc. (“FTL”) prior to August 7, 1989, such pilot’s years of service with FTL shall be taken into account solely for purposes of determining the multiplier described herein, but shall not be taken into account for purposes of determining past years of credited service with the Company as of date of signing of this Agreement.October 30, 2006.

d. d. The Pension Plan shall bewas amended to incorporate the provisions of Section 28.B.4.a., Section 28.B.4.b. and Section 28.B.4.bc. The parties agree that the provisions of Section 28.B.4.a., Section 28.B.4.b. and Section 28.B.4.b. arec were one-time amendments to the Pension Plan and those provisions will applyapplied only to the pilots entitled to a benefit under such provisions as of the date of signing of this Agreement.October 30, 2006. Notwithstanding any other provision of this Agreement, including the duration provisions contained in Section 31, Section 28.B.4.c. shall becomed. became effective on the date of signing of the basic Agreement and shall haveOctober 30, 2006 and has permanent duration, and neither the provisions of Section 28.B.4.cd. nor the related provisions of the Pension Plan referenced herein may be altered without the written consent of both parties.

5. A pilot shall receive credited service for benefit accrual while on disability and while eligible for benefits, including PSDPilot Supplemental Disability benefits, pursuant to the terms of the LTD Plan.

6. For benefit commencement dates occurring on or after 90 days following [DOS], the following actuarially equivalent optional forms of benefit distributions shall also be available under the Pension Plan: Joint and 50% Survivor Pop-Up Annuity; Joint and 75% Survivor Pop-Up Annuity; and Joint and 100% Survivor Pop-Up Annuity.

7. The Pension Plan shall be amended effective 90 days following [DOS], to allow a participant to elect different forms of benefit payment for his FTL benefit and for the remainder of his benefit under the Pension Plan.

8. The Pension Plan shall be amended effective 90 days following [DOS] to provide that if: a. prior to his death, a pilot has retired and submitted a valid unexpired

election to commence retirement benefits (within 90 days of the benefit commencement date (BCD)) as of the first day of the month following his retirement, and

b. the pilot fails to survive until his elected BCD, then the pilot shall be deemed to have survived until his elected BCD and benefits shall commence on the elected BCD, in the form elected by the pilot,

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Retirement 28

provided, however that the first benefit payment shall be paid to the pilot’s joint annuitant, beneficiary or estate, as applicable, pursuant to the form elected by the pilot. An election shall be determined to have been submitted prior to the pilot’s death, if there is proof that the election confirmation was mailed, emailed, faxed, posted or received by the administrator prior to the pilot’s death.

9. Effective [DOS], the Pension Plan shall be amended to provide that spousal consent is not required if the participant is legally separated from the spouse as evidenced by a court decree.

C. Pilots’ Money Purchase Pension Plan

1. The terms and conditions of the Pilots’ Money Purchase Pension Plan (the "Money Purchase Pension Plan" or “PMPPP”) shall be as provided in the Money Purchase Pension Plan and the PBBPMPPP and shall remain unchanged except as specifically provided for herein.

2. Effective on the date of signing of this Agreement, the Company shall continue to contribute monthly for each pilot plan participant in the prior month an amount equal to 6.0% of that pilot’s eligible prior monthly earnings, subject to the Code §401(a) (17) compensation limit. Effective as of the first anniversary of the date of signing of this Agreement, theThe Company shall contribute monthly for each pilot plan participant in the prior monththe following amounts: a. On and after January 1, 2016 and until the date of the merger of the

PMPPP into the PRSP, an amount equal to 7.08% of that pilot's eligible prior monthly earnings, subject to the Code §401(a)(17) compensation limitlimitations.

b. On or after the date of the merger of the PMPPP into the PRSP, all non-elective Company contributions shall be made to the PRSP under Section 28.D.4. and shall cease to be made to the PMPPP.

3. The eligibility age and service requirements, and the vesting requirements

of the Money Purchase Pension Plan shall remain unchanged.PMPPP shall be amended effective [TBD], to provide that a pilot shall be eligible for non-elective Company contributions based on eligible earnings on the first day of the month coincident with or next following one month of service from date of hire as a pilot. Company contributions will begin in the month the pilot first participates in the PMPPP, based on the pilot’s eligible monthly earnings in the month prior to participation, in the same manner as described in Section 28.D.6.

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Retirement 28

4. The investment fund options available to the pilots participating in the Money Purchase Pension Plan as of the date of signing of this Agreement shall continue to be available. In addition, as soon as administratively feasible after the date of signing of this Agreement, the following additional funds shall be made available to the pilots participating in the Money Purchase Pension Plan: Vanguard Retirement Savings Trust, Vanguard LifeStrategy Conservative Growth Fund, Vanguard LifeStrategy Moderate Growth Fund, Vanguard Small-Cap Index Fund, Vanguard Mid-Cap Index Fund, and Vanguard Inflation-Protected Securities Fund. The Company shall continue to maintain fiduciary responsibility for the investment options made available under the Money Purchase Pension Plan, except as provided in the next sentence. Any expanded opportunities for greater investment choices via the Vanguard Group or its successors shall be determined by a Pilot Investment Committee, which shall consist of up to six members, equal numbers of whom shall be appointed by the Company and the Association. The Pilot Investment Committee’s duties and responsibilities shall be limited to the selection of expanded investment choices.On and after [DOS], the investment fund options available to participants in the PMPPP will be the same as those available in the PRSP.

5. The PMPPP shall be amended effective 90 days following [DOS] to allow a participant to make an in-service withdrawal of all or any portion of his account at or after age 62 under the PMPPP, subject to spousal consent as required by applicable law.

6. Effective [TBD], the PMPPP shall be merged into the Pilots’ Retirement Savings Plan (PRSP). Each participant’s PMPPP account shall be separately accounted for within the PRSP, and such account (as adjusted for gains and losses thereafter) shall remain subject to the distribution requirements applicable under the PMPPP.

7. Effective [DOS], the PMPPP shall be amended to provide that spousal consent is not required if the participant is legally separated from the spouse as evidenced by a court decree.

D. Pilots' Retirement Savings Plan

1. The terms and conditions of the Pilots' Retirement Savings Plan (“Pilots’ Retirement Savings Plan” or “PRSP”) shall be as provided in the Pilots' Retirement Savings Plan and the PBBPRSP and shall remain unchanged except as specifically provided herein.

2. The investment fund options available for Participant-direction of amounts allocated to a pilot's accounts within the Pilots' Retirement Savings Plan as of the date of signing of this Agreement shall continue to be available.

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Retirement 28

In addition, as soon as administratively feasible after the date of signing of this Agreement, the following additional funds shall be made available to the pilots participating in the Pilots’ Retirement Savings Plan: Vanguard Retirement Savings Trust, Vanguard LifeStrategy Conservative Growth Fund, Vanguard LifeStrategy Moderate Growth Fund, Vanguard Small-Cap Index Fund, Vanguard Mid-Cap Index Fund, and Vanguard Inflation-Protected Securities Fund. The Company shall continue to maintain fiduciary responsibility for the investment options made available under the Pilots’ Retirement Savings Plan, except as provided in the next sentence. Any expanded opportunities for greater investment choices via the Vanguard Group or its successors shall be determined by the Pilot Investment Committee (described in Section 28.C.4.).to participants in the PRSP as of [DOS] shall continue to be available, except as otherwise agreed to by the parties. Notwithstanding the foregoing, effective no later than 90 days following [DOS] each investment fund option available to the participants shall be the lowest cost share class for that investment fund option for which the PRSP qualifies, with the exception of the brokerage window.

3. The PRSP shall be amended effective [TBD], to provide that the Company shall make matching contributions equal to 50% of the first $1,000 of employee pre-tax and Roth contributions (in the aggregate) per plan year.

4. Beginning on the date of the merger of the PMPPP into the PRSP, the Company shall contribute monthly for each eligible pilot an amount equal to 8% of that pilot's eligible prior monthly earnings, to a non-elective Company contribution account for the participant under the PRSP, subject to the Code limitations. Effective January 1, 2020, the Company shall contribute monthly for each eligible pilot an amount equal to 9% of that pilot's eligible prior monthly earnings, to a non-elective Company contribution account for the participant under the PRSP, subject to the Code limitations.

5. Roth Contributions. Effective [TBD], the PRSP shall be amended to allow a participant: a. to elect to make Roth contributions and, to the maximum extent

permitted by law, Roth catch-up contributions; and b. following the merger of the PMPPP into the PRSP, to elect to make an

in-plan conversion to a Roth account of all or any portion of his PRSP account(s), to the maximum extent permitted by law.

6. The PRSP shall be amended effective [TBD], to provide that a pilot shall be eligible to participate in the PRSP for all purposes on the first day of the month coincident with or next following one month from date of hire as a pilot. Following the merger of the PMPPP into the PRSP, non-elective

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Retirement 28

Company contributions will begin in the month the pilot first participates in the PRSP, based on the pilot’s eligible monthly earnings in the month prior to participation.

Example: For a pilot who is eligible to participate in the PRSP on July 1, 2017, the Company shall make a non-elective Company contribution to the PRSP on behalf of the pilot in July 2017, based on the pilot’s eligible monthly earnings for June, 2017.

7. 3. The Company shall maintain records for a sufficient time and in sufficient detail to be able to confirm all data necessary for the calculation of any benefit payable under the Retirement Plans.All participants shall always be 100% vested in their accounts under the PRSP.

8. 4. A pilot shall have allocated to his PRSP accounts such amounts as are attributable to unused sick leave, in accordance with the provisions of Section 14.E. of this Agreement.

9. The PRSP shall be amended effective not later than 90 days following [DOS] to provide that, in the case of a participant’s retirement or other termination of employment, a participant’s accounts shall be distributed (or shall commence to be distributed, in the case of distribution in installments) as soon as practicable, as elected by the participant in his completed application for benefits (including spousal consent if required). An application for benefits shall be made available at any time and may be filed at any time at or after the participant’s retirement or other termination of employment. Any contribution received after a participant receives a distribution of his entire account shall be distributed in accordance with the recordkeeper’s procedures.

10. Effective [TBD], as long as Vanguard remains the recordkeeper and subject to its guidelines, a pilot shall be allowed to access the Vanguard Financial Planning Services, Vanguard Managed Account Program, and the Vanguard Personal Online Advisor to the extent that the pilot is a participant in the PRSP. In the event Vanguard is replaced as recordkeeper, a pilot shall be allowed access to similar account management services, to the extent offered by the successor recordkeeper, at a comparable cost to the Company, unless the Company determines allowing such access would result in a breach of fiduciary duty.

11. Effective not later than the first day of the month following the 90th day after [DOS], the PRSP shall be amended to allow a participant to elect automatic rebalancing of his investments, subject to the recordkeeper’s policies.

12. Effective [TBD], the PRSP shall be amended to provide for automatic enrollment for both existing pilots contributing less than 3% and new hire

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Retirement 28

pilots. A pilot to whom the arrangement applies shall be deemed to have elected to make pre-tax contributions to the PRSP at the level of 3% of eligible earnings in the first year, 6% in the second year, 9% in the third year, and 10% in the fourth and subsequent years, subject to the pilot’s right to affirmatively opt out of the arrangement or to affirmatively elect a different percentage.

13. Effective not later than 90 days following [DOS], the PRSP shall be amended to allow a participant to elect to make pre-tax and/or Roth contributions to the PRSP up to 50% of his eligible earnings, subject to applicable law.

14. Effective not later than 90 days following [DOS], the PRSP shall be amended to allow all participants to elect to make after-tax contributions to the PRSP, by payroll deduction, up to 20% of his eligible earnings, subject to applicable law.

15. Brokerage Accounts: a. Effective [TBD], the PRSP will be amended to provide that a participant

may, to the extent permitted by ERISA, transfer all or a portion of his account balance and direct future contributions to be invested in an individual brokerage account under the PRSP, subject to the recordkeeper’s guidelines and commission schedules.

b. Any participant who elects an individual brokerage account must sign an agreement to hold harmless the PRSP, the Company, the Association and any committee established by the Company or the Association, for any losses resulting from the participant’s investments in the individual brokerage account.

c. Any fees associated with an individual pilot’s brokerage account will be charged directly to the individual’s account.

d. The individual brokerage account shall permit any investments permitted for a qualified plan under ERISA and allowed by the recordkeeper, excluding stock of FedEx Corporation.

16. Effective concurrent with the engagement of a new recordkeeper (or retention of the current recordkeeper), as described in Section 28.M., the PRSP shall be amended to provide that a participant may engage a third party financial advisor to manage his account (including his individual brokerage account) under the Plan. A participant who engages a third party financial advisor must sign an agreement to hold harmless the PRSP, the Company, the Association and any committees established by the Company or the Association, for any losses resulting from such engagement.

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Retirement 28

17. Effective not later than 90 days following [DOS], the PRSP shall be amended to provide that participants may elect from the following additional distribution options on a manual basis or electronically to the extent automated by the recordkeeper: (i) partial lump sum, in the amount specified by the participant, and as often as requested by the participant; and (ii) periodic distributions in the amount and frequency specified by the participant, which may be stopped and restarted at any time as elected by the participant. Partial distributions and periodic distributions shall be made pro rata from all investment funds (excluding the brokerage account), unless the participant specifies a different allocation for the distribution(s).

18. Effective [DOS], the PRSP shall be amended to provide that spousal consent is not required if the participant is legally separated from the spouse as evidenced by a court decree.

E. Federal Express Corporation Pilot Non-Qualified Plans 1. The terms and conditions of the Federal Express Corporation Non-

Qualified Section 415 Excess BenefitPension Plan for Pilots ("“415 Limit Plan"”) and the Federal Express Corporation Non-Qualified Pension Plan for Pilots ("“Compensation Limit Plan"”) shall be as provided in the 415 Limit Plan, and the Compensation Limit Plan and the PBB. In no event shall final average earnings taken into account under the Pension Plan, the 415 Limit Plan and the Compensation Limit Plan exceed $260,000.

2. In the event the compensation limit of Code § 401(a)(17) and/or the annual addition limit of Code § 415(c) is decreased legislatively, the Federal Express Corporation PRSP Non-Qualified Plan for Pilots (“PRSP Non-Qualified Plan”) shall be established. Under the PRSP Non-Qualified Plan, a Pilot shall be entitled to an amount equal to: a. the PRSP non-elective contribution that would have been contributed

to the PRSP without applying the decreased Code §401(a)(17) and/or Code §415(c) limit(s) but in no event greater than the amount that would have been contributed to the PRSP under these Code limitations in effect at any time prior to it being decreased or the current limit in effect under Code § 401(a)(17), minus;

b. the amount contributed to the PRSP. Amounts shall be paid from the PRSP Non-Qualified Plan in no event later than 2½ months after the year in which such amounts would have been contributed to the PRSP.

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Retirement 28

F. End of Career Sick Leave/Advance Notice of Planned Retirement Bonus

1. A pilot who reaches age 60 prior to his last day of employment, and who provides at least 12 months advance written notice that his last day of employment will be either during the month in which he turns the regulated age or on December 31 of a specified year, shall be eligible for the End of Career Sick Leave/Advance Notice of Planned Retirement Bonus (Bonus).

2. Such pilot’s Bonus shall be based on the sum of his eligible earnings, as defined in Section 28.F.3., in the 24 calendar months immediately preceding his last day of employment as a pilot, including the month containing the pilot’s last day of employment.

3. Eligible earnings shall include all pensionable earnings during that 24 calendar month period, except earnings attributable to sick leave (DSA, RSA).

4. A pilot’s Bonus shall be the lesser of: a. 50% of the pilot’s eligible earnings in excess of $520,000; or b. 50% of the pilot’s closing DSA bank balance, multiplied by his last

hourly rate, or c. $110,000.

PLUS For those who are at least age 54 at [DOS] and have at least 10 years of

Vesting Service in the Pension Plan as of [DOS], a lump sum based on the pilot’s age as of [DOS] and Vesting Service in the Pension Plan as of [DOS] as outlined in the following chart:

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Retirement 28

Age at [DOS] Years of Vesting Service at [DOS] 54 55 56 57 58

59 or older

<10 -

-

-

-

-

-

10

10,000

10,000

10,000

10,000

10,000

10,000

11

10,000

10,000

10,000

10,000

10,000

10,000

12

10,000

10,000

10,000

10,000

10,000

10,000

13

10,000

10,000

10,000

10,000

10,000

10,000

14

10,000

10,000

10,000

10,000

10,000

10,000

15

15,000

20,000

20,000

20,000

20,000

20,000

16

20,000

20,000

20,000

20,000

20,000

20,000

17

20,000

20,000

20,000

20,000

20,000

30,000

18

20,000

20,000

20,000

20,000

30,000

30,000

19

20,000

20,000

20,000

30,000

30,000

30,000

20

20,000

20,000

30,000

30,000

30,000

30,000

21

20,000

30,000

30,000

30,000

30,000

30,000

22

30,000

30,000

30,000

30,000

30,000

30,000

23

30,000

30,000

30,000

30,000

30,000

40,000

24

30,000

30,000

30,000

30,000

40,000

40,000 25 or more

30,000

30,000

30,000

40,000

40,000

40,000

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Retirement 28

5. A pilot may submit only one advance written notice of planned retirement

month under this program. A pilot may revoke his submitted advance written notice at any time; however, he will not again be eligible for the Bonus. There is no change in a pilot’s right to retire without giving any advance notice to the Company.

6. Any pilot entitled to a Bonus shall be paid in a lump sum as soon as administratively feasible but in no event later than 2½ months after the year in which termination of employment occurs.

7. Pilots who are terminated for just cause shall not be eligible for a Bonus. 8. Any Bonus paid to the pilot shall not be considered pensionable earnings

under any Retirement Plan.

G. F. Pilot Benefit Review Board 1. A Pilot Benefit Review Board (PBRB) shall be established for the

Retirement Plans and the Insurance Plans described in Section 27. [Note: incorporate new PBRB provisions from Section 27] 2. The Pilot Review Board (“Review Board”) shall consist of an equal number

of members appointed by the Company and members appointed by the Association. Each party shall appoint up to three members. Vacancies in the membership of the Review Board shall be filled by appointment of the respective parties.

3. The Review Board may convene meetings at its discretion, or whenever a majority of the members of the Review Board make a written request for a meeting at least fourteen days prior to the meeting date.

4. The Review Board may convene meetings in person or by telephone conference.

5. Any pilot who seeks review by the Board must make a request in writing no later than 120 days following the date on which a decision is rendered on appeal. The Review Board may, in its discretion, waive the one hundred twenty day period if circumstances warrant, in order to insure a full and fair review of a pilot’s claim. A pilot who requests a review by the Review Board shall have at least 30 days from the date of his request to submit any written statement or other documentation for the Review Board’s consideration during its review. The Review Board is not required to conduct a formal hearing with respect to the review of any claim presented by a pilot.

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Retirement 28

6. A majority of the Review Board, sitting without a neutral member, shall constitute a quorum. Each member of the Review Board shall have one vote. In the event that one member is absent from a meeting, such member may give his proxy to another member. Proxies must be in writing.

7. A decision by majority vote shall be final and binding on all parties, and the Review Board shall issue a written decision within 30 days after the vote.

8. In the event of a deadlock vote, the Review Board shall convene a meeting, which shall be chaired by a neutral arbitrator, to render its decision. The neutral arbitrator shall be selected from a panel of arbitrators designated jointly by the Company and the Association. Such panel shall be comprised of members of the National Academy of Arbitrators and experienced in both airline arbitration and pension or other relevant employee benefit issues. A decision by majority vote shall be final and binding on all parties, and the Review Board shall issue a written decision within 30 days after the vote.

9. Should vacancies occur on the panel of neutral arbitrators, the parties shall attempt to agree on a replacement within 30 days after the vacancy occurs. If the parties are unable to agree on a replacement, the vacancy shall remain unfilled unless there are too few arbitrators to preside over required meetings, in which case the parties may select an arbitrator by the alternative strike method from a list of arbitrators provided by the National Mediation Board who are members of the National Academy of Arbitrators to preside over scheduled meetings on an ad hoc basis.

10. Should a pilot elect to pursue his dispute via the Pilot Benefit Review Board process as outlined above, the Retirement Plans, trust agreements and to the extent applicable and consistent with this Agreement, the PBB, shall be considered incorporated by reference into the Agreement solely for purposes of providing sufficient documentation for the resolution of that particular dispute only.

H. G. Employee Stock Purchase Plan The terms and conditions of the Federal Express Corporation Employee Stock Purchase Plan shall remain the same and pilots shall remain covered by that plan under the same terms and conditions as other employees of the Company.

I. H. FTL Variable Annuity Plan

The terms and conditions of The Flying Tiger Line Inc. Variable Annuity Pension Plan For Pilots (the "Variable Plan") shall be as stated in the plan

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Retirement 28

document effective as of January 1, 1997.1997, as amended thereafter. Nothing in this Agreement shall reduce pilots’ accrued benefits under the Variable Plan.

J. Investment Committee 1. An Investment Committee shall be established for the PRSP. The

Company and the Association each may appoint up to three (3) members to the Investment Committee. The parties need not appoint an equal number of members, provided, however that the Company members and the Association members each collectively have one (1) vote. Individual votes on a particular issue may be recorded in the minutes at the request of any member. Each party may appoint alternates. A quorum shall consist of two (2) Company members/alternates and two (2) Association members/alternates. At any meeting of the Investment Committee, each party may be accompanied by individuals the party deems appropriate.

2. The Investment Committee shall meet at least semi-annually, unless otherwise agreed by the Company and the Association.

3. The benefits specialists for the Company and the Association shall agree on an agenda for each meeting, and shall notify the Company of any agenda items which need to be addressed at the meeting so that the Company may designate the appropriate individuals to attend; notice shall be provided at least two weeks in advance of the meeting if the attendance of only Company personnel is appropriate and shall be provided at least one month in advance if the attendance of outside service-providers is also required. Should the meeting be scheduled to cover multiple agenda items, the parties shall exchange a list of attendees based on the agenda items.

4. The Investment Committee shall make recommendations to the Fiduciary regarding investment choices for pilots.

5. The Investment Committee shall: a. receive from the recordkeeper semi-annually reports regarding the

Plans, one of which shall include a market and economic overview; and receive live review of the reports by the account representative of the recordkeeper semi-annually, including the more detailed annual report.

b. review service provider disclosures received pursuant to Section 28.A.3.

c. review any newly available Eligible Investment Advice Arrangement (EIAA).

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Retirement 28

K. Retirement Board

1. A Retirement Board shall be established to review and discuss the status and administration of the Retirement Plans, including the implementation of any changes, and seek to resolve any problems or issues related to the administration of the Retirement Plans (including, e.g., service-provider service problems). De-identified information may be used when necessary to discuss systemic issues.

2. The Company and the Association each may appoint up to three (3) members to the Retirement Board. At any meeting of the Retirement Board, each party may be accompanied by individuals the party deems appropriate. The Retirement Board shall meet at least semi-annually, unless otherwise agreed by the Company and the Association.

3. The benefits specialists for the Company and the Association shall agree on an agenda for each meeting, and shall notify the Company of any agenda items which need to be addressed at the meeting so that the Company may designate the appropriate individuals to attend; notice shall be provided at least two weeks in advance of the meeting if the attendance of only Company personnel is appropriate and shall be provided at least one month in advance if the attendance of outside service-providers is also required. Should the meeting be scheduled to cover multiple agenda items, the parties shall exchange a list of attendees based on the agenda items.

4. Neither the Company members nor the Association members of the Retirement Board shall have the power to modify or interpret the terms of any Retirement Plan. However, either the Company members or the Association members may suggest modifications to the Retirement Plans to the Company and the Association.

L. Expenses of the Defined Contribution Plans Expenses related to annual fund operating expenses, brokerage window expenses, third-party investment advisory and third party investment manager expenses, hardship withdrawal fees, loan fees, third-party Qualified Domestic Relations Order expenses and other third-party expenses shall be paid by the individual participant’s account. All other expenses of the PMPPP and PRSP, including but not limited to recordkeeping administration and audit expenses, shall be paid by the Company.

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Retirement 28

M. Selection of a Recordkeeper for the PRSP The Company shall issue a request for proposals (RFP) for the selection of a recordkeeper for the PRSP, in accordance with Section 28.A.6, as soon as administratively practicable following the effective date of the merger or later if agreed by the parties. The Association members of the Investment Committee shall have an opportunity to review and comment on the RFP during its development and to hear presentations by each vendor who submits a qualifying response to such RFP.

N. Overpayments from Retirement Plans

In the event of an overpayment to a participant from a Retirement Plan, the Company shall notify the Association and the participant of the circumstances resulting in the overpayment and the amount of the overpayment. Consistent with IRS correction methods, and if required, IRS approval, the Company will take appropriate steps to recoup the overpayments. A participant shall not be asked to repay any overpayment made before the date that is 48 months before the date the Company gives the notice of the overpayment period, unless required by the IRS.

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Letter—NRA Under the Plans28

[Date] Captain Charles W. Dyer Chairman, FedEx ALPA MEC 1770 Kirby Parkway, Suite 300 Memphis, TN 38138 RE: Normal Retirement Age under the Pension Plan, Pilot Money Purchase Pension Plan (PMPPP) and the Variable Annuity Pension Plan for Pilots (VAPPP) Dear Captain Dyer: During recent contract negotiations, Federal Express Corporation (herein referred to as the “Company”) and The Air Line Pilots Association (herein referred to as the “Association”) agreed to make an amendment to change the normal retirement age under the Pension Plan, PMPPP and VAPPP. The Company and the Association agree that:

1.) If the Company determines in good faith that the normal retirement age under the Pension Plan, the PMPPP and the VAPPP must be increased to comply with Section 401(a) of the Internal Revenue Code, of 1986, as amended, and the regulations thereunder, the Company shall amend each such plan to change to age 62 for the plan’s current normal retirement age (age 60); provided however, that the total amount of benefits payable under the plan shall not be reduced as a result of such amendment.

2.) In the event a plan is amended to increase the normal retirement age from age 60 to age 62, total benefits under such plan shall continue to be provided in the same amount at each age as would have been provided under the plan without regard to the amendment to increase the normal retirement age from 60 to 62. To the maximum extent legally permissible, the plan shall be amended to provide such benefits directly by the plan (and the Compensation Limit Plan and 415 Limit Plan); otherwise, such benefits shall be provided directly by the Company. This paragraph shall apply to benefits earned before and after the effective date of an amendment to increase the plan’s normal retirement age from age 60 to age 62.

3.) For example, in the event the Pension Plan is amended to increase the normal retirement age from 60 to 62:

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Letter—NRA Under the Plans 28

a. The total amount of early retirement benefits payable at age 55 or older shall be no less than the amount of early retirement benefits that would have been payable if the normal retirement age had remained at age 60: and

b. The total amount of retirement benefits payable at age 60 or older shall be no less than the amount of retirement benefits that would have been payable if the normal retirement age had remained at age 60.

Sincerely, FEDERAL EXPRESS CORPORATION John D. Maxwell Vice President, Labor Relations



Dated this _____ day of ______, 2015

Attachments cc: Scott Larsen

Kenneth Binder Elizabeth Koby

Terrence McTigue Eric Iverson Sue Kramer William Johnsen Kelly Romito

542

Letter—End of Career Sick Leave/Advance Notice of Planned Retirement Bonus

28Tentative Agreement re ECSL/ANPR Letter August 26, 2015

[Date] Captain Charles W. Dyer Chairman, FedEx Master Executive Council Air Line Pilots Association, International 1770 Kirby Parkway, Suite 300 Memphis, TN 38138 RE: End of Career Sick Leave/Advance Notice of Planned Retirement Bonus Captain Dyer: During our negotiations for a new collective bargaining agreement, the parties agreed upon provisions designed to incentivize a pilot to give the Company advance notice of his planned retirement date (ref. Section 28.F.). Under this provision, the pilot is eligible for certain payments as long as he gives the Company 12 months’ advance written notice of his retirement date and his retirement date is either the date he reaches age 65 or December 31 of a specified year.

During the negotiations leading up to our agreement on this incentive, the Association expressed concerns regarding those pilots who would retire before they could give 12 months’ of advance notice necessary to be eligible for the payments described in Section 28.F. The purpose of this letter is to confirm our understanding of how these pilots will be treated under Section 28.F.

As we have agreed, a pilot who is otherwise ineligible for the Section 28.F. payment if he retires between November 2, 2015 (the first day of the November 2015 bid period) and November 1, 2016 (due to the fact that he would be not be able to give the Company 12 months’ advance notice of his retirement) will nevertheless be eligible for the Section 28.F. payment, as long as he:

1. Will reach the regulated age between November 2, 2015 and November 1, 2016; 2. Notifies the Company, in writing, between November 2, 2015 and November 29,

2015, that he will retire during the month he reaches age 65; and 3. Actually retires during the month he reaches age 65.

A pilot who satisfies these criteria will additionally have his unused 2015 vacation bought back at 100% (in accordance with Section 7.G.6.b.) on a non-precedential basis.

We have additionally agreed that a pilot who will reach age 65 more than 12 months after the effective date of the contract but prior to December 31, 2017 will be treated in a similar

543

Letter—End of Career Sick Leave/Advance Notice of Planned Retirement Bonus

28Tentative Agreement re ECSL/ANPR Letter August 26, 2015

fashion (i.e., have his unused 2016 vacation bought back at 100% on a non-precedential basis), provided he also complies with the criteria listed above.

If this reflects your understanding, please indicate your agreement by signing below.

Sincerely, FEDERAL EXPRESS CORPORATION John D. Maxwell Vice President, Labor Relations Accepted and agreed to on behalf of the Air Line Pilots Association: _________________________________ Captain Charles W. Dyer Chairman, FedEx ALPA MEC

Dated this _____ day of ______, 2015

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Letter—Section 28 Plan Amendment Timetable28

[Date] Captain Charles W. Dyer Chairman, FedEx Master Executive Council Air Line Pilots Association, International 1770 Kirby Parkway, Suite 300 Memphis, TN 38138 RE: Section 28 Plan Amendment Timetable Captain Dyer: During our negotiations for a new collective bargaining agreement, the parties agreed new Retirement Plan features that will necessitate amendments to the plan document prior to implementation of those new features. The Company will prepare plan amendments required by the 2015 Agreement as soon as administratively feasible in accordance with the following timetable:

Section Short Description Target Deadline 28.B.6 Add J&S Pop-Up Annuities to Pension

Plan DOS + 90 days

28.B.7 Allow separate pension elections for Express and FTL benefits

DOS + 90 days

28.B.8 Pension elections for deceased pilots DOS + 90 days 28.B.9 Pension Plan spousal consent no longer

required after legal separation DOS

28.C.2 PMPPP increase from 7% to 8% 01/01/2016 28.C.3 PMPPP one month eligibility DOS + 90 days DOS + 120 days 28.C.4 Investments in PMPPP same as PRSP DOS 28.C.5 PMPPP in-service withdrawals at 62 DOS + 90 days 28.C.6 Merger of PMPPP into PRSP 01/01/2017 28.C.7 PMPPP spousal consent no longer

required after legal separation DOS

28.D.2 Lowest share class in PRSP DOS 28.D.3 Match on Roth in PRSP 01/01/2017 28.D.4 Company contribution to PRSP rather

than PMPPP 01/01/2017

28.D.5 Roth contributions in PRSP 01/01/2017 28.D.6 PRSP one month eligibility DOS + 90 days DOS + 120 days 28.D.9 PRSP distributions as soon as possible

following termination DOS + 90 days

28.D.10 Advice programs available (VFP, VMAP, POA) in PRSP

DOS + 90 days DOS + 120 days

28.D.11 Auto rebalancing in PRSP DOS + 90 days

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Letter—Section 28 Plan Amendment Timetable 28

28.D.12 Auto enrollment and auto increases in PRSP

DOS + 3 months DOS + 6 months

28.D.13 Pre-tax/Roth limit of 50% in PRSP DOS + 90 days 28.D.14 After-tax contribution limit to 20% in

PRSP DOS + 90 days

28.D.15 PRSP Brokerage accounts DOS + 90 days DOS + 120 days 28.D.17 Additional PRSP distribution Options DOS + 90 days

Sincerely, FEDERAL EXPRESS CORPORATION John D. Maxwell Vice President, Labor Relations

546

Union Security and Checkoff29

SECTION 29 UNION SECURITY AND CHECKOFF A. Conditions

1. As limited by the letter regarding Transition to Union Security dated August 26, 2006, each pilot covered by the Agreement who fails to acquire and maintain membership in the Association will be required, as a condition of continued employment, beginning 60 days following the completion of his probationary period, to pay to the Association each month a service charge as a contribution for the administration of the Agreement and the representation of the pilot. The Association has established that the service charge shall be an amount equal to the Association’s regular dues and periodic assessments. In calculation of each non-member’s monthly obligation, the Association will allocate and adjust charges in the same manner it followed with respect to its members.

2. The provisions of this Section will not apply to any pilot covered by the Agreement to whom membership in the Association is not available upon the same terms and conditions as are applicable to any other pilot, or to any pilot to whom membership in the Association was denied or terminated for any reason other than the failure of the pilot to pay initiation (or reinstatement) fee, dues and assessments uniformly required.

3. If a pilot covered by this Agreement is delinquent, or becomes delinquent in the payment of fees, dues and assessments or the service charge as stated in Section 29.A.1., the Association will notify him with a copy to the Vice President, Flight Operations, or his designee, and the designated Company official in Labor Relations, that the pilot is delinquent and not complying with contract requirements and may be subject to separation from employment. Such letter will also notify the pilot that he must remit the required payment within a grace period of 15 days or risk being separated from employment.

4. If, upon the expiration of the 15 day grace period, the pilot remains delinquent, the following procedure shall be followed: a. The Association will give written notification to the Vice President, Flight

Operations, or his designee, and the designated Company official in Labor Relations, with a copy to the pilot, that the pilot has failed to remit payment within the grace period and may be subject to separation from employment as a pilot. The Association’s notice will be accompanied by a packet of the letters sent to the pilot regarding the dues delinquency, and pilot responses to same, and along with all other relevant documentation in its possession regarding the delinquency matter.

b. Upon receipt of such notification, the Vice President, Flight Operations, or his designee, and the designated Company official in Labor Relations, may require a meeting with the pilot and a representative of the

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Union Security and Checkoff 29

Association. The Vice President, Flight Operations, or his designee, shall determine whether there was a compelling reason why the pilot remains delinquent in his dues. If no such reason exists, then the Vice President, or his designee, shall separate the pilot from employment. The existence of a compelling reason for the delinquency does not excuse the pilot from the obligation to rectify the delinquency; rather the Vice President, or his designee, shall propose a dues reconciliationan arrangement plan tailored to the specific situation, and if the pilot fails to agree to such plan, he shall be separated from employment.

c. Within 30 days of receipt of such notification the Vice President, Flight Operations, or his designee, and the designated Company official in Labor Relations, will give the pilot written notification of his employment status as a pilot. Any separation will automatically be held in abeyance for 10 days from the postmark date of mailing of the notification. If the pilot files an appeal in accordance with Section 29.A.4.d.i., the separation will be further held in abeyance pending the exhaustion of the appeal process in this Section. A pilot who is sent a separation notice will be placed on an unpaid personal leave of absence until the appeal process is final.

d. If the decision regarding the pilot’s employment status, including any separation from employment, is not satisfactory to either the pilot or the Association’s Vice President-Finance/Treasurer, either may file an appeal. Such appeal will be subject to the following procedure, which will be exclusive of the provisions of Sections 19, 20, and 21. i. The appeal shall be sent to the Company, to the other party and to

the National Mediation Board (NMB) within 10 days of the receipt of the decision and must contain a request for the NMB to provide a list of 7 neutral referees.

ii. A neutral referee may be agreed upon by the pilot and the Association’s Legal Department Director within 20 days following the date of the NMB list of neutral referees. If the parties cannot agree on a neutral referee, within the same 20 day period, a neutral referee shall be chosen from the panel supplied by the NMB using the alternate strike method with the pilot initiating the first strike. If the parties have not reached a selection using the alternate strike method within the same 20 day period, the first name listed on the 7 name panel provided by the NMB shall be deemed the neutral referee.

iii. The decision of the neutral referee will be requested within 30 days after the hearing of the appeal unless otherwise agreed by the pilot and the Association’s Legal Department Director and will be final and binding on all parties to the dispute. The fees, charges and other reasonable expenses of such neutral referee will be paid equally by the pilot and the Association.

548


5. The Company will be considered to have satisfied the requirements and standards for just cause discharge under this Agreement when a pilot is separated from employment under the provisions of this Section.

6. The Association agrees to indemnify, defend, and hold the Company harmless from any claims filed in any forum by or on behalf of any pilot relating to or arising out of any action taken by the Company pursuant to the terms of this Section.

7. Time limits and meeting dates set forth in this Section may be modified, orally or in writing, by agreement of the Company and ALPA. Oral agreements will be confirmed in writing as soon as practicable. Requests for modification of time limits or meeting dates will not be unreasonably denied.

8. The Association will provide the Company with written notice of any change in dues or assessment amounts as soon as practicable after such change is known.

9. Delivery of all notices, letters, decisions and appeals pursuant to Section 29 shall be made in person, by Federal Express Overnight Letter, by certified mail, return receipt requested or by other methods which provide verification of receipt. Notice to the Company shall be sent to the Company’sVice President, Flight Operations, or his designee, and the designated representativeCompany official in Labor Relations, as set forth in the provisions of this Agreement. Notice to ALPA shall be sent to the Vice President - Finance, 535 Herndon Parkway, Herndon, VA 20170. Notice to pilots shall be sent to a pilot’s permanent, primary address. As provided in Section 26.N.2., a pilot must keep his permanent, primary address current. Such information shall be shared electronically with the Association pursuant to Section 26.R. and will be used for correspondence under this section. The notice of delinquency under this paragraph will be deemed to be received by the pilot on the fifth day after its postmark date of mailing, when mailed by the Association by Certified Mail, Return Receipt Requested, or by FedEx Overnight Letter, to such pilot’s permanent, primary address.

B. Check Off 1. The Company agrees to deduct from the pay of each employee covered by

the Agreement, and remit to the Association promptly upon such deduction, membership dues, assessments by the Association, assessments by the FedEx MEC, insurance premiums, and service charges uniformly levied, in accordance with the Constitution and By-Laws of the Association, all as prescribed by the Railway Labor Act, as amended, provided such employee voluntarily executes authorization on a form (checkoff form) supplied by the Association. An example of such checkoff form is provided below. If technical or space limitations preclude a complete listing of all the itemized deductions on a pilot’s payroll stub, some Association deductions may be combined on the stub entry, if and where possible, or the parties may meet

549


and consult to determine the appropriate method to satisfy the limitation problem.

2. All checkoff forms shall be submitted to the Association'’s Membership and Council Services Department, which shall forward the original to the Company'’s designated representative. Checkoff forms so received by the Company’s designated representative shall be stamp-dated on the date received and shall constitute notice to the Company on the date received and not when mailed. A properly executed checkoff form shall become effective as of the first payroll period of a calendar month commencing 15 days following its receipt by the Company. In accordance with applicable law, the Association will conform requests for payroll deductions to valid checkoff forms.

3. Any notice of revocation as set forth in the checkoff form must be in writing, signed by the pilot, and submitted to the Association'’s ManagerSupervisor, Membership and Council Services Department by Certified Mail, Return Receipt Requested, with a copy to the FedEx MEC Secretary-Treasurer. The Association'’s Membership and Council Services Department shall forward the original to the Company’s designated representative. Notices of revocation are effective as of the first payroll period of a calendar month commencing 15 days following receipt of such revocation by the Association.

4. At the endThe Company shall collect dues and assessments from pilots who elected dues and assessments checkoff in the paychecks issued on the 15th and last day of each month and any “off-cycle” paychecks. Following the processing of payroll on the 15th and last day of each month, the Company shall remit to the Association the funds collected pursuant to this Section during that periodprovision since the previous remittance. [Note: remittance of funds collected to be addressed in a technical specifications document to be discussed/agreed-upon following technical summit mentioned below]

5. The Company shall forward an electronic record of the pilotseach deduction type (dues, assessments, service charges (not including assessments), insurance premiums, and arrangement plans). The record shall identify the date of the covered payroll period, each pilot for whom an Association-related deduction was made, each pilot'’s employee number, and the amount of each pilot's deduction, separately showing dues, Dues Reconciliation amounts, specific insurance premiums, service charges, and specific assessments, along with the date of the covered payroll period’s deduction. The electronic record for dues and service charge deductions shall also include the amount of a pilot’s earnings during the current payroll cycle that are subject to dues.

6. A pilot'’s checkoff form shall be deemed to have been revoked effective upon:

550


a. such pilot'’s resignation or termination from Company employment as a pilot; or

b. such pilot'’s furlough pursuant to Section 23; or c. the Company'’s receipt of a pilot’s written notice of revocation as

provided in Section 29.B.3. Further deductions for such pilot, if any, shall be made only upon execution and receipt of another checkoff form, except that a furloughee shall have deductions begin again upon his return to active service, unless he provides written notice of revocation as provided above.

7. This Agreement shall not be construed to revoke or cancel any FedEx checkoff form executed prior to the effective date of the Agreement.

8. Collection of any back dues owed at the time of starting deductions for any employee, collection of dues missed because the employee’s earnings were not sufficient to cover the payment of dues in the specified pay period and dues owed because of errors by ALPA in the accounting procedure will be the responsibility of the Association and not the Company. The Association will make every effort to verify apparent errors with the individual Association member or pilot employee before contacting the Company’s designated representative for dues and service charge deduction issues. In cases where a deduction is made which duplicates a payment already made to the Association by an employee, or where a deduction is not in conformity with the provisions of the Association’s Constitution and By Laws or Section 29 of this Agreement, refunds to the employees will be made by the Association.

C. Annual Income On an annual basis and within 45 days of the end of each calendar year, the Company will furnish the FedEx MEC Secretary-Treasurer and the Association'’s ManagerSupervisor, Membership and Council Services Department with an electronic compilation of the annual income for each pilot who, as limited by the letter regarding Transition to Union Security dated August 26, 2006, and Section 29.A.2., is subject to this provision.

Parties to conduct “techie” summit to discuss automation timeline and IT requirements Parties to develop process for pilots currently on dues check off to authorize dues withholding 2x/month and from off-cycle checks (one time event)

551


ASSIGNMENT AND AUTHORIZATION FOR CHECK OFF OF DUES, ASSESSMENTS BY THE ASSOCIATION AND THE FEDEX MEC, INSURANCE PREMIUMS, AND SERVICE CHARGES TO: Federal Express Corporation I, ____________________________, hereby authorize and direct Federal Express Corporation to deduct from my earnings for the first payroll period in each calendar montheach regular and “off cycle” paycheck a sum equal to the current standard membership Association dues (or such standard membership dues as may hereafter be established by the Association), assessments by the Association, assessments by the FedEx MEC, service charges, insurance premiums, and service charges (deducted once per month) and arrangement plan payments, as are now or may hereafter be established in accordance with the Constitution and By-Laws of the Association and as defined in Section 29 of the Agreement for remittance to the Air Line Pilots Association, International. I agree that this authorization shall be effective until revoked or until termination of the check off agreement between Federal Express Corporation and the Association, whichever occurs sooner. Signature of Pilot _______________________________________________________________ Employee No. _______________________________________________________________ ALPA No. (if applicable) ______________________________________________________ Permanent Primary Address _______________________________________________________________ City __________________________________ State _____ Zip ____________ Date ____________________

Disclosure Statement Required by Federal Tax Law Dues, contributions, and gifts to the Air Line Pilots Association are not tax deductible as charitable contributions. However, they may be tax deductible as ordinary and necessary business expenses.

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ALPA-PAC Checkoff30

SECTION 30 ALPA-PAC CHECKOFF

A. The Company will monthly check off and transmit to the Treasurer of the Air Line Pilots Association Political Action Committee (ALPA-PAC) voluntary contributions to ALPA-PAC from the earnings of those pilots who voluntarily authorize such contributions on forms provided by ALPA-PAC for that purpose. The amount of such monthly checkoff deductions and the transmittal of such voluntary contributions shall be as specified in such forms. All ALPA-PAC checkoff authorization forms (current or revised) shall be in conformance with any applicable state or federal statute.

B. The current ALPA-PAC checkoff authorization form in use is reprinted

below. ALPA shall notify the Company of changes to the ALPA-PAC checkoff authorization form.

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ALPA-PAC Checkoff 30

ALPA-PAC CHECKOFF AUTHORIZATION CARD

TO: ___________________ (Airline Name) I hereby authorize and direct the above named company to deduct the indicated amount of my gross earnings per month and to remit that amount to the Air Line Pilots Association Political Action Committee (ALPA-PAC).

Name __________________________________________ (Please Print) Last First MI ALPA No.________________ Employee No.___________ Begin Deductions of $___________ Per Month (Whole Dollars) Change Deductions to $___________ Per Month (Whole Dollars) Terminate Deductions of $_________ Per Month

Signature ____________________Date _______________

Authorized by Air Line Pilots Association, International on behalf of a fundraising effort for Air Line Pilots Association Political Action Committee. Contributions to ALPA-PAC are not tax deductible, nor a condition of membership of ALPA.

This authorization is voluntarily made based on my specific understanding that: - the signing of this authorization card and the making of these voluntary contributions are not conditions of membership in the union or of employment by my employer; - any guideline amount suggested by ALPA-PAC or its representatives is only a suggestion and I may contribute more or less and will not be favored or disadvantaged by the union for doing so; - I may refuse to contribute without reprisal; and - ALPA-PAC, which is connected with the Air Line Pilots Association, International may use the money it receives for political purposes including but not limited to making contributions to and expenditures for candidates for federal elected offices. I further certify that I am either a United States citizen or a foreign national lawfully admitted to the United States for permanent residence as defined by section 101(a)(20) of the Immigration and Nationality Act (8 U.S.C. 1101(a)(20)). This authorization shall remain in full force and effect until revoked in writing by me.

554

Effect on Prior Agreements, Effective Date, and Duration31

SECTION 31 EFFECT ON PRIOR AGREEMENTS, EFFECTIVE DATE AND DURATION A. Effect on Prior Agreements

This Agreement is the full and complete agreement between the parties concerning rates of pay, rules and working conditions of the pilots. Except as set forth in Section 31.A.1.,Section 31.A.1. and 2.,A.2., (below), this Agreement supersedes and renders null and void the Flight Crewmembers’' Handbook and all agreements with respect to rates of pay, rules, or working conditions, entered into prior to the execution of this Agreement between the Company and the Association, or between the Company and any individual in the craft or class which the Association represents. 1. The following Letters of Agreement or Memoranda of Understanding

entered into by the parties during the term(s) of the parties’ predecessor agreement(s) remain in effect as part of this Agreement: a. Line Operations Safety Audit (LOSA) (2010)Aviation Safety Action

Program for Flight Deck Crewmembers (ASAP) (2014) b. Additional Fund Options Relative To The Federal Express Corporation

Pilots’ Money Purchase Pension Plan And The Federal Express Corporation Pilots' Retirement Savings Plan (2008)Introduction of B767F Aircraft (2013)

c. Special Provisions Related to Anchorage Domicile Moves for Pilots (2006)Flight Operational Quality Assurance Program (FOQA) (2011)

d. Civil Reserve Air Fleet LOA (2003) e. Pilots Defined Contribution Plan Changes (2003) f. Professional Standards Letter of Agreement (2000) g. Letter of Agreement on Safety (2000) h. Maximum Open Time (1999) i. Certain Retirement Provisions (1999)

d. j. Anchorage and Subic Return Moves (1999)Iraq and Afghanistan Flying (2011)

e. Collection of Human Performance/Alertness Data (2011) f. Line Operations Safety Audit (LOSA) (2010) g. Special Provisions Related to Anchorage Domicile Moves for Pilots

(2006) h. Civil Reserve Air Fleet LOA (2003) i. Professional Standards Letter of Agreement (2000)

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Effect on Prior Agreements, Effective Date, and Duration 31

j. Letter of Agreement on Safety (2000) k. Maximum Open Time (1999) l. Anchorage and Subic Return Moves (1999)

2. An interpretation of a term of the parties’ predecessor collective bargaining agreement (including the Letters of Agreement and Memoranda of Understanding listed in Section 31.A.1. (above)) remains in effect as part of this Agreement (subject to the durational terms, if any, of the document(s) memorializing such interpretation(s)) if (i) such term is not materially changed in this Agreement and (ii): a. The interpretation was set forth in, and was necessary to the holding of,

a grievance award; or b. A mutually agreed interpretation was set forth in a written grievance

settlement to which the Company and Association are parties; or c. A mutually agreed interpretation was set forth in a written agreement to

which the Company and the Association are parties. B. Effect on Prior Negotiations

Upon the effective date of this Agreement, all outstanding notices of reopening exchanged between the parties pursuant to Section 6, Title I of the Railway Labor Act, as amended, are fully resolved. This resolution of outstanding Section 6 notices of reopening shall be without prejudice to either party serving future Section 6 notices of reopening on the same or similar topics, pursuant to the schedule set forth in Section 31.D. of this Agreement (below), and without prejudice to voluntary discussions between the parties outside of the procedures of Section 6, Title I of the Railway Labor Act, as amended, during the term of this Agreement with respect to topics raised in the parties’ prior notices of reopening.

B. C. Subsequent Agreements An agreement between the Company and Association entered into after execution of this Agreement affecting rates of pay, rules, or working conditions of a pilot will be effective only if in writing and signed by authorized representatives of the Company and the Association.

C. D. Effective Date and Duration 1. Except as expressly provided below or elsewhere in this Agreement or in

the Implementation and Transition Letter of Agreement, this Agreement shall become effective on February 28, 2011,November 2, 2015 (the first day of the November 2015 bid period), and shall continue in full force and effect through the last day of the February 2013October 2021 bid period and shall renew itself without change through the end of each FebruaryOctober bid period thereafter, unless written notice of intended change is served in accordance with Section 6, Title I of the Railway Labor

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Effect on Prior Agreements, Effective Date, and Duration31

Act, as amended, by either party hereto at least 30 days but not more than 60180 days prior to the last day of the February 2013October 2021 bid period or the last day of the FebruaryOctober bid period in any year thereafter.

2. Notwithstanding the duration clause set forth immediately in Section 31.C.1. (above), the Associationeither party may, at its election, exercise early reopening of this Agreement so that it becomes amendable on the first day of the March 2012 bid period. If the Association exercises this option, Section 3.C.2. of the Agreement shall become null and void. if, during the term of this Agreement, the Company becomes subject to Federal Aviation Administration (FAA) flight and duty time regulations that have a material, adverse impact on the Company’s costs. a. In order for the Company to reopen the Agreement early,Agreement

early pursuant to Section 31.C.2., the Company must deliver written notice of early reopening to the Association’s MEC Chairman. In order for the Association to reopen the Agreement early pursuant to Section 31.C.2., the Association must deliver written notice of early reopening to the Vice President, Labor Relations no later than 5:00 pm (CST) on Tuesday, January 24, 2012. . In no event, however, shall either party deliver a written notice of early reopening pursuant to Section 31.C.2.a. to the other party during the October or November bid periods.

b. If either party elects to exercise early reopening of this Agreement pursuant to Section 31.C.2., the Agreement shall become amendable on the 180th day following the delivery of a party’s written notice of early reopening to the other party.

c. The parties shall initiate negotiations required by Section 6, Title I of the Railway Labor Act, as amended, within 4030 days of the Company’s receiptdelivery of sucha notice of early reopening from the Association, but in no event shall such negotiations begin prior to February 1, 2012.in accordance with Section 31.C.2.a.

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Lump Sum Payment Distribution (2015)

[Date] Captain Charles W. Dyer Chairman, FedEx Master Executive Council Air Line Pilots Association, International 1770 Kirby Parkway, Suite 300 Memphis, TN 38138 RE: Lump Sum Payment Distribution Captain Dyer: The purpose of this letter is to confirm the details of the lump sum payment, which is part of the tentative agreement and is, of course, subject to member ratification and the ALPA Lump Sum Allocation Policy (“Policy”), found in ALPA Administrative Manual Section 40.3.J, which is referred to below, and incorporated by reference herein. Eligibility A pilot employed by the Company between February 25, 2013 and August 19, 2015 (“the amendable period”) shall be eligible to receive a lump sum payment as set forth below. The use of the term “pilot” in this letter is as defined by the Basic Agreement, and shall include pilots described in Section 10 of the Basic Agreement. Amount of Lump Sum Payment The estimated amount of a pilot’s total lump sum payment will be based on the following chart:

Wide Body Captain $35,000 Narrow Body Captain $30,000

Wide Body First Officer $23,500 Narrow Body First Officer $20,000 Wide Body Second Officer $20,000

Narrow Body Second Officer $20,000

Each pilot’s lump sum payment category shall be determined by the highest crew status in which he was active during the amendable period. Pilots who received passover pay during the amendable period will receive a lump sum payment based on their highest active crew status or the crew status to which they received passover pay.

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Proration of Lump Sum Payment A pilot who was employed by the Company on August 19, 2015, and who was in an active status throughout the amendable period shall receive the full amount of the appropriate lump sum payment shown in the table above. A pilot who was employed by the Company on August 19, 2015, but was not in an active status throughout the entire amendable period (e.g., a pilot hired during the amendable period or a pilot on a leave of absence, other than a long-term military leave of absence, during some portion of the amendable period) shall receive a prorated lump sum payment based on the number of months that he was in active status during the amendable period. This shall include a pilot who incurred a disciplinary suspension during the amendable period. Unless otherwise excluded, a pilot hired during the amendable period shall be deemed active on his Date of Hire as a pilot. For purposes of the proration, a pilot who was in an inactive status during the amendable period due to a long-term military leave of absence shall be treated as if he were in an active status during his long-term military leave of absence. If the position selected by the pilot upon his return from long-term military leave of absence (consistent with the process described in Paragraph 1.a. and b. of the Settlement Agreement regarding the Effect of Potential Crew Status Changes on Imputed Earnings and Signing Bonus Calculation, dated December 9, 2008) represents the highest crew status the pilot would have held on a Posting conducted during the amendable period, that crew status shall be the pilot’s lump sum payment category. A pilot who was employed by the Company on August 19, 2015, but who had not yet activated in his first crew position with the Company, i.e., a “student,” shall receive a prorated lump sum payment taking into account the pilot’s active service from his Date of Hire as a pilot to August 19, 2015 (e.g., a pilot hired on July 1, 2015 who activates in his first crew position on October 31, 2015 will have two months credit toward his prorated bonus). A pilot who died, voluntarily resigned from his employment with the Company, or retired between February 25, 2013 and August 19, 2015 shall receive a prorated lump sum payment based on the number of months that he was in active status during the amenable period. A pilot who was terminated for “just cause” between February 25, 2013 and August 19, 2015 shall not be eligible for a lump sum payment. In the event that such a pilot is reinstated, he shall be entitled to a lump sum payment per the terms of this agreement. Data Verification Pursuant to ALPA Policy Section 40.3.J.3.e, an expedited data verification process will be created by the FedEx Express Master Executive Council (MEC) to help ensure that

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the relevant pilot data necessary for the calculations in the table above is as accurate as possible. The Company agrees to cooperate with the relevant MEC representatives in providing necessary data to accomplish this expedited data verification process. Disputes Any disputes by pilots concerning the allocation methodology, or amount of payments they are to receive thereunder, as described above, shall be subject to the mandatory, expedited dispute resolution procedures set forth in ALPA Policy, Section 40.3.J.4-9 and 11. Timing, Procedures for Payments, and Holdback Amount The lump sum payment shall be distributed in two primary installments, consistent with the requirements of ALPA Policy. The first installment shall represent 55% of the estimated lump sum payment and shall occur no later than December 15, 2015. The second installment shall represent 40% of the estimated lump sum payment and shall occur no later than June 15, 2016. The Association shall provide direction to the Company for the distribution of these payments pursuant to the procedures of ALPA Policy Section 40.3.J.10.a-b. Notwithstanding the distribution dates listed above, in the absence of such direction, the Company shall not make any distribution. There will be retained from the total estimated payment, a sufficient reserve holdback, as required by ALPA Policy Section 40.3.J.3.f, of five percent (5%) of the total estimated payment. These holdback funds will be retained by the Company and distributed after direction from the Association, pursuant to the procedures of ALPA Policy Section 40.3.J.10.b-c. Excess residual holdback funds that remain which are not needed for corrective purposes or otherwise under the terms of this letter and ALPA Policy shall be allocated and distributed at the direction of the Association in the same manner and with the same payment ratios and allocation terms as above. Retirement Plan Treatment of Lump Sum Payment The lump sum payment will be paid in cash and will be treated as pensionable wages for the year in which it was paid. The lump sum payment will also be eligible for B-plan contributions, subject to applicable contractual and Internal Revenue Code limitations. Sincerely, FEDERAL EXPRESS CORPORATION John D. Maxwell Vice President, Labor Relations

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FDA LOA—EMEA/HKG (2015)

LETTER OF AGREEMENT

between FEDERAL EXPRESS CORPORATION

and THE AIR LINE PILOTS

in the service of FEDERAL EXPRESS CORPORATION

as represented by THE AIR LINE PILOTS ASSOCIATION, INTERNATIONAL

Foreign Duty Assignments in the EMEA and HKG

This Letter of Agreement (“LOA”) is made and entered into in accordance with the provisions of Title II of the Railway Labor Act, as amended, by and between FEDERAL EXPRESS CORPORATION (hereinafter referred to as the “Company”) and the pilots in the service of FEDERAL EXPRESS CORPORATION, as represented by the AIR LINE PILOTS ASSOCIATION, INTERNATIONAL (hereinafter referred to as the “Association”). WHEREAS, the Company and the Association are parties to a collective bargaining agreement setting forth the rates of pay, rules, and working conditions for the Company’s pilots (hereinafter referred to as the “Basic Agreement”), effective on February 28, 2011,[TBD], and WHEREAS, the Company and the Association agree that the following terms and conditions shall govern Foreign Duty Assignments (hereinafter referred to as “FDAs”) in the Europe, Middle East, and Africa Region (hereinafter referred to as “EMEA”) and Hong Kong (hereinafter referred to as “HKG”). NOW, THEREFORE, the parties agree as follows: A. Authorized FDAs and Establishing a New FDA in the EMEA

1. This LOA authorizes the Company to center FDAs in: a. Hong Kong (HKG); b. Cologne, Germany (CGN); and c. Paris, France (CDG), provided, however, that if the Company

establishes an FDA in CDG under this LOA, the housing allowance shall be determined in accordance with Paragraph A.2.d., of this LOA (below).

2. The Company may establish a new FDA in the EMEA, if agreed upon in writing by the Association’s MEC Chairman and the Vice President of Flight Operations under the following conditions:

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a. The Company shall notify the Association’s MEC Chairman, in writing, of the location and anticipated date the Company plans to begin staffing the FDA.

b. The FDA is centered at an airport located in Switzerland, Germany, Great Britain, Ireland, Spain, the Netherlands, or Belgium.

c. The location is determined to be acceptable from a safety, security, and accessibility standpoint.

d. A housing allowance is provided to pilots assigned to the FDA that is not less than $3,500, which shall be adjusted for the difference in the cost-of-living between CGN and the location of the new FDA, as follows: i. The Baseline Maximum Per Diem Rate (BMPDR) for the CGN FDA

(as defined in paragraphParagraph C.2.d.i.(c) of this LOA (below)) and the Maximum Per Diem Rate (MPDR) for the new EMEA FDA location shall be sampled on the date the Company notifies the Association that it plans to establish a new EMEA FDA.

ii. The initial housing allowance in the new EMEA FDA location shall be based on the ratio between the most recent housing allowance in the CGN FDA and the corresponding BMPDR for CGN, when compared to the MPDR for the new EMEA FDA location (rounded to the nearest whole dollar).

iii. The minimum monthly housing allowance for the new EMEA FDA location shall be based on the ratio between the MPDR in the CGN FDA and the MPDR in the new EMEA FDA location, when compared to $3,500 (rounded to the nearest whole dollar).

e. The terms and conditions of this LOA applicable to the FDA centered in CGN shall apply to a new EMEA FDA.

3. Provided that the prerequisites of paragraphParagraph A.2. of this LOA (above) are satisfied, the Association’s agreement shall not be unreasonably withheld. The Company shall have the burden of proof and persuasion in a proceeding in which this provision is contested.

4. Nothing in this LOA shall be construed to limit the Company’s ability to establish an FDA in accordance with Section 6 of the Basic Agreement.

B. Permanent Vacancies in FDAs Permanent vacancies for FDAs in the EMEA or in HKG shall be posted, bid upon and awarded as provided in Section 24 of the Basic Agreement with the following modifications: 1. Under the crew position posting as provided under Section 24.B.1.b.vi.In

any notification of a System Bid, the Company shall also include any known restriction related to the EMEA or HKG FDAs.

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2. The 18 month bidding restrictiondown/lateral bid restrictions set forth in Section 24.EF.1.b. of the Basic Agreement shall be waived with respect to pilots bidding for permanent vacancies in FDAsFDA crew positions.

3. In order to be awarded a permanent vacancy inlist an FDA crew position on his standing bid, a pilot must agree to sign aan FDA Personal Agreement (hereinafter “Personal Agreement”), agreed upon by the parties (Attachment A), which provides, in part, that, if the pilot’s is awarded an FDA crew position, the terms and conditions of his employment arewhile assigned to the FDA will be governed by the Basic Agreement and applicable laws of the United States, and not by the laws of the country where the FDA is located. a. In order to bid on an FDA vacancy, a pilot must first indicate, via VIPS,

his commitment to sign the Personal Agreement. a. b. Pilots awarded vacancies atlisting an FDA crew position on their

standing bid will be provided with paper copiesan electronic copy of the Personal Agreement and shall sign and return such signed copies to the System Chief Pilot prior to the start of any training for the FDA vacancy, or, if no training is required, then prior to the distribution of any benefits stemming from the pilot’s FDA vacancy award (e.g., seed money), which the pilot must sign and submit electronically to the Company.

c. Absent extenuating circumstances, if a pilot later fails or refuses to sign the Personal Agreement in the required time frame, he shall be restricted from participating in a vacancy bid for 2 years. Such restriction shall not preclude the pilot from being involuntarily excessed from his currently awarded/assigned crew position, nor shall such bid restriction result in passover pay for any pilot.

b. d. If aan FDA pilot violates any aspect of the FDA Personal Agreement: i. The pilot may, at the Company’s option, be required to

transferassigned to a non-FDA crew position consistent with the pilot’s seniority. Such pilot’s reassignment shall not generate passover payassignment (as that term is defined in Section 24) to a non-FDA crew position and/or his assignment (as that term is defined in Section 24) to an IT/U training date/slot (if any such training is required) shall not generate an SDP or an inverse SDP for any pilot.

ii. Nothing in this paragraphParagraph shall be construed so as to limit any action the Company might take under Sections 19, 20, and 21 related to a pilot’s violation of the Personal Agreement.

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4. Visas and Other Required Credentials a. The Company shall cover the cost of obtaining visas and other official

credentials that are required for thean FDA pilot (i.e., a pilot activated in an FDA crew position) to live and/or work in the FDA (e.g., residence and work visas, HKHKG Identification Card, etc.). i. To the extent that a pilot’s family relocatesmembers of the pilot’s

immediate family (as that term is defined in Section 6 of the Basic Agreement) relocate with him to the FDA, the Company shall also cover the cost of such visas and other official credentials that are required for those members of the pilot’s immediate family to live in the FDA. Absent extenuating circumstances, if the Company obtains such visas and credentials for members of the pilot’s immediate family who do not relocate to the FDA thereafter, the pilot shall reimburse the Company for the cost of obtaining such visas and credentials.

ii. Pilots shall coordinate and cooperate with the Company’s designated representatives for the purpose of securing said visas and credentials.

b. If, having been awarded a permanent vacancy in an FDA crew position, a pilot is unable to secure or maintain any required visa or credentials for himself, he shall contact his Chief PilotFleet Captain immediately and shall be released from his FDA vacancycrew position award.

c. If a member of the pilot’s spouse or childimmediate family is unable to secure or maintain the required visas or credentials, the pilot may elect to be released from his FDA obligationcrew position award by submitting an appropriate explanation to the System Chief Pilot (or his designee). The timing of the release shall be determined by the System Chief Pilot (or his designee), after consultation with the pilot, and shall balance the pilot’s desires with the Company’s operational requirements.

d. The crew position of a pilot who was released from his FDA vacancycrew position award as described in Paragraph B.4.c. of this paragraphLOA (above) shall be determined as provided in Section 13.A.6.b.ii. of the Basic Agreement as if the pilot had been on a leave of absence when the postingSystem Bid on which he was awarded the FDA vacancy closedhis FDA crew position closed. Such pilot’s assignment (as that term is defined in Section 24) to a new crew position and assignment (as that term is defined in Section 24) to IT/U training date/slot (if any such training is required) shall not generate an SDP or an inverse SDP for any pilot.

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e. The pilot’s inability to secure or maintain required visas or credentials shall not, by itself, constitute grounds for penalty or discipline.

C. Relocation Package Options in the EMEA and HKG FDAs Except as provided in paragraph LParagraph O. of this LOA, below (“Crew Position Changes to Different FDAs in the Same Geographic Location”), within 15 days after being awarded a permanent vacancycrew position in an FDA, a pilot shall choose from either the “Existing CBA Option” or the “Enhanced Option” set forth in paragraphsParagraphs C.1. and C.2. of this LOA (below), respectively. 1. Existing CBA Option (3 year commitment)

Pilots who choose the Existing CBA Option shall be entitled to the following: a. Relocation benefits as described in Section 6 of the Basic Agreement,

except that Section 6.E.1.e. (FDA Bonus) shall be inapplicable. b. Tax equalization as provided in paragraph DParagraph E. of this LOA

(below). 2. Enhanced Option (2 year commitment)

Pilots selecting the Enhanced Option shall be entitled to the following benefits, in lieu of the benefits available under Section 6 of the Basic Agreement:. Unless specifically provided for below, provisions in Section 6 of the Basic Agreement shall not be applicable to HKG and EMEA FDA pilots who elect the Enhanced Option. a. Seed Money

Pilots who select the enhanced option shall be entitled to a one -time payment of $10,000 which shall be paid upon: i. a pilot’s activation into his FDA crew position, and ii. the Company’s receipt of all required documentation, including

documentation required for the processing of the tax equalization program and all necessary immigration paperwork.

b. Four Year Service Credit If a pilot completes 48 months as an active pilot in the same FDA, he shall receive an additional payment of $5,000. This payment shall be made within 30 days after the pilot completes his 48th month as an active pilot in the FDA. If a pilot upgrades within the FDA, time spent in ITU training will not be counted toward the 48 months. A pilot may receive more than one 48 month service credit payment during his assignment to the FDA (e.g., if a HKG FDA pilot completes 96 months as an active pilot in the HKG FDA, he shall receive a second payment of $5,000, etc.).

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c. Storage i. A pilot shall be entitled to expenses associated with the storage of

his household goods in the location of his pre-FDA domestic residence (i.e., his permanent, primary residence immediately preceding his assignment to the FDA) or, if approved in advance by the Relocation Department, a different domestic location involving no greater cost to the Company (using the cost of storage in the pilot’s pre-FDA domestic location as the reference point). Reimbursement shall not exceed $4,000 per year and the storage must be at a commercial storage provider. In addition, the Company will assume the cost of packing such goods (subject to the standard limitations regarding the types of goods to be shipped/stored, (which are catalogued in Section 6.C.1.b.)), and the cost of transporting them to and from the storage facility (local transportation only). Requests for reimbursement of storage fees must be submitted within 90 days of the date the expense was incurred, in accordance with the Company’s standard procedures concerning expense reporting.

ii. A pilot may elect to waive reimbursement of domestic storage expenses and instead elect to ship up to 2,000 additional pounds of household goods in his initial and return household goods shipments, pursuant to Paragraph C.2.h. of this LOA (below). This election shall be made during the pilot’s “FDA Assignment Window” (i.e., the period beginning 60 days prior to his activation in his FDA crew position and ending 6 months after his activation in his FDA crew position) and shall apply for the duration of the pilot’s assignment to the FDA.

d. Housing Allowance. i. Rental Allowance

Pilots shall be entitled to a rental allowance as set forth below to offset the cost of rental housingrenting a permanent, primary residence in the FDA location. (a) The monthly rental allowance in the HKG FDA shall be a

minimum of $4,500 beginning with the first full bid period after ratification of this LOA. 4,500.

(b) The monthly rental allowance in the FDA centered in CGN shall be a minimum of $3,500.

(c) Cost of Living Protection for EMEA FDA Rental Allowance 1. The U.S. Department of State Foreign Maximum Per Diem

Rate (MPDR) for eachthe CGN FDA location shall bewas sampled on March 1, 2011, which will establishestablished

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the Baseline Maximum Per Diem Rate (BMPDR). On the first business day of each subsequent calendar quarter, the MPDR for each FDA shall be sampled. If the applicable MPDR on that day varies from the BMPDR by more than 10%, the Company shall adjust the applicable rental allowance by the percentage change in the MPDR. The adjustment shall be effective beginning with the first full bid period that begins at least 15 days after the sampling. Any adjustment shall be announced via FCIF. of 388.

2. Beginning on January 1 and July 1 of each calendar year following the effective date of this Agreement, the MPDR shall be sampled. If the sampled MPDR varies from the BMPDR by more than 5%, the Company shall adjust the EMEA FDA Rental Allowance by the percentage change in the MPDR (rounded to the nearest whole dollar). If the EMEA FDA Rental Allowance is changed pursuant to this mechanism, the MPDR on which the new housing allowance was based shall constitute the new BMPDR, which shall be published on the EUR FDA page of pilot.fedex.com.

3. Any adjustment to the EMEA FDA Rental Allowance by operation of this paragraph shall be effective beginning in February and/or August, and shall be announced via FCIF at least 15 days prior to the first business day of February and/or August.

4. In no event, however, shall the application of this paragraph result in a monthly rental allowance for the EMEA FDA of less than that set forth in Paragraph C.2.d.i.(b) of this LOA (above).

(d) Cost of Living Protection for HKG FDA Rental Allowance 1. On the effective date of this Agreement, the Company shall

calculate a baseline Currency Exchange Rate Adjusted Rental Index (CERARI), as follows: a. The most recent, non-provisional Private Domestic –

Class C Rental Index (prepared by the Rating and Valuation Department of the Government of the Hong Kong Special Administrative Region) (RI) shall be sampled. This shall be the “baseline RI.”

b. The “Average Buying Rate in Hong Kong Dollars” (published by the Inland Revenue Department of the Government of the Hong Kong Special Administrative Region) (ABR) for the month used to determine the baseline RI shall also be sampled. This shall be the “baseline ABR.”

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c. The baseline RI shall be divided by the baseline ABR to determine the baseline CERARI, which shall be published on the HKG FDA page of pilot.fedex.com.

2. Beginning on January 1 and July 1 of each calendar year following the effective date of this Agreement, the Company shall calculate a new CERARI using the same methodology set forth in Paragraph C.2.d.i.(d).1. (above). If the calculated CERARI on that day varies from the baseline CERARI by more than 5%, the Company shall adjust the HKG FDA Rental Allowance by the percentage change in the CERARI (rounded to the nearest whole dollar). If the HKG FDA Rental Allowance is adjusted pursuant to this mechanism, the CERARI on which the adjusted HKG FDA Rental Allowance was based shall constitute the new baseline CERARI, which shall also be published on the HKG FDA page of pilot.fedex.com.

3. Any adjustment to the HKG FDA Rental Allowance by operation of this paragraph shall be effective beginning in February and/or August, and shall be announced via FCIF at least 15 days prior to the first business day of February and/or August (as appropriate).

4. (d) If the rental allowance is changed pursuant to this mechanism, the MPDR on which the new housing allowance was based shall constitute the new BMPDR.In no event, however, shall the application of this paragraph result in a monthly rental allowance for the HKG FDA of less than that set forth in Paragraph C.2.d.i.(a) of this LOA (above), nor shall the application of this paragraph result in a CERARI less than the baseline CERARI determined on the effective date of this Agreement.

ii. Home Ownership Allowance. Pilots A pilot who choosechooses to own rather than rent their housinga permanent, primary residence in the FDA shall be entitled to a monthly home ownership allowance of $1,300 per month50% of the minimum FDA rental housing allowance listed in Paragraph C.2.d.i.(a) and (b) of this LOA (above).

iii. To be eligible for the housing allowance, pilotsa pilot must establish and maintain a permanent, primary residence in the country containing the airport at which the FDA base is centered . (For purposes of this paragraph, HKG shall be considered part of China). Additionally, the pilot must occupy the housing for which an allowance is being paid. Standards for determining whether a pilot has relocated his permanent, primary residence under this paragraph shall be the same as for full relocations under Section 6

568


of the Basic Agreement. The housing must be located within 100 nautical miles of the base airport. A larger radius may be approved on a case -by -case basis by the System Chief Pilot, if the proposed residence affords access to the hub airport that is at least as expeditious and reliable as comparable residences inside the 100 nm radius and is within the same country in which the FDA crew base airport is located.

Note: The requirement that pilots establish and maintain a permanent, primary residence in the country containing the airport at which the FDA base is located shall not apply to pilots who elected the Enhanced Option prior to the effective date of this LOA.and who relocated their permanent, primary residence to within 100 nm of the FDA base airport prior to February 28, 2011.

iv. The housing allowance shall be paid the first month in which the pilot is assigned to the FDA and has secured a permanent, primary residence pursuant to paragraphParagraph C.2.d.iii. of this LOA (above). In the first and last month of a pilot’s assignment to the FDA, if the pilot is assigned to the FDA for less than a full month, his housing allowance for that month(s) shall be prorated. The Upon request, a pilot must provide adequate substantiation that he has established and maintained his permanent, primary residence in the FDA, including, but not limited to, a lease agreement, canceled checks, or receipts, to his Chief Pilot.

v. In cases of a pilot’s persistent failure to maintain timely contact and completion of required documentation pertaining to the tax equalization program, the Company may suspend the pilot’s housing allowance, provided however that the Company gave the pilot prior notice of his delinquency and the pilot was given at least 60 days to rectify that delinquency.

vi. The pilot shall receive a pro-rated FDA housing allowance for 30 days after the date on which: (a) the pilot’s lease on his permanent, primary residence in the FDA

expires (or is not renewed within 15 days of its expiration) or is terminated prior to its expiration date by the pilot or the pilot’s landlord;

(b) the pilot ships his household goods from the FDA to his next residence in accordance with Paragraph C.2.h.ii. of this LOA (below); or

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(c) the pilot uses or members of his immediate family use the Company-provided de-positioning tickets to travel to the pilot’s next residence in accordance with Paragraph C.2.f. of this LOA (below).

A pilot is not eligible for FDA housing allowance payment(s) (full or pro-rated) after his activation in his new crew position.

e. Tax equalization as provided in paragraph DParagraph E. of this LOA (below).

f. Airline Tickets. The pilot shall be entitled to one set of round-trip business class tickets to position himself and his dependents from his permanent residence to the FDA at the beginning of his assignment and from the FDA to his next base at the conclusion of his assignment. For each year a pilot completes in the FDA location as an active pilot after the end of his two year commitment, the Company shall provide one set of coach class round-trip tickets for the pilot and his dependents living with him at the FDA back to the location of his permanent residence (or a destination of similar cost).All airline tickets authorized by this paragraph shall be purchased exclusively through the Company’s travel vendor in coordination with the Relocation Department. i. The Company shall provide business class air travel to the pilot and

the members of his immediate family relocating to the FDA with him: (a) to the FDA base airport from his pre-FDA domestic residence

during his FDA Assignment Window (“positioning air travel”); and (b) from the FDA base airport (or a commercial passenger airport

within 100 nm of the FDA base airport) to one of the following locations during his “FDA Transition Window” (i.e., the period beginning 6 months prior to his activation into his post-FDA crew position and ending upon either his activation in his new crew position or 60 days after termination of his employment, whichever is earlier) (“de-positioning air travel”): 1. his pre-FDA domestic residence; 2. his new base, if the pilot is relocating his permanent, primary

residence to his new base; or 3. his new residence if located in a different location in the US

involving no greater cost to the Company (using his pre-FDA domestic residence as the reference point).

ii. After the completion of his commitment period in the FDA, the Company shall provide the pilot and the members of his immediate family who relocated to the FDA and have been living with the pilot in the FDA during his commitment period with economy class round

570


trip air travel once per calendar year from the FDA base airport (or a commercial passenger airport within 100 nm of the FDA base airport) to one of the following locations (“annual home visit air travel”): (a) his pre-FDA domestic residence; or (b) a different domestic location involving no greater cost to the

Company (using the pilot’s pre-FDA domestic residence as the reference point).

iii. The Company shall establish a separate FDA air travel expense bank for each pilot entitled to airline tickets authorized by Paragraph C.2.f. The value of the pilot’s FDA air travel expense bank shall be equal to the reference fare quote obtained by the Company’s travel vendor pursuant to Paragraph C.2.f.iii.(b) (below). (a) A pilot shall submit his positioning or de-positioning air travel

request to the Relocation Department at least 21 days prior to the requested travel date. A pilot shall submit his annual home visit air travel request as far in advance as is practicable under the pilot’s circumstances (e.g., requesting travel following bid period schedule awards or secondary line construction).

Note: The Company currently requires, and may continue to require, the pilot to submit an air travel request form to the Relocation Department in order to access this benefit.

(b) Within 3 days of the Relocation Department’s receipt of the pilot’s request for air travel authorized by this paragraph, the Company’s travel vendor shall obtain a fare quote (“reference fare quote”) for the total cost of business class (for positioning/de-positioning tickets) or economy class (for annual home visit tickets) air travel for the pilot’s entire traveling party between the reference destinations listed in Paragraph C.2.f.i. and ii. (above) respectively. The Company’s travel vendor shall transmit the reference fare quote electronically to the Company’s Relocation and Crew Travel Audit Departments and to the pilot.

(c) Within 3 days of the pilot’s request for air travel authorized by this paragraph, the Company’s travel vendor shall also obtain a fare quote (“requested fare quote”) for the total cost of air travel for the pilot’s entire traveling party on the requested itinerary. The Company’s travel vendor shall transmit the requested fare quote electronically to the pilot, at which time the pilot may purchase tickets for his requested itinerary (as quoted) or make alternative arrangements with the Company’s travel vendor.

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(d) If the pilot elects to travel on the “reference” itinerary, the pilot must purchase tickets from the Company’s travel vendor within 3 days of the pilot’s receipt of the reference fare quote.

(e) Any air travel expenses in excess of the balance of the pilot’s FDA air travel expense bank shall be remitted to the Company by payroll deduction, as provided in Section 3.E.1.a.vi., from the pay check on the 15th of the month following the pilot’s purchase of air travel tickets authorized by this paragraph.

g. Commitment Period i. A pilot must complete two years as an active pilot in the FDA, unless

released from his obligation due to extenuating circumstances by the Vice President, Flight Operations.

ii. If a pilot fails to complete his commitment period without a release from the Vice President, Flight Operations, he shall be obligated to repay his seed money and any money paid by the Company for storage.

iii. If a pilot changes or attempts to change his crew status within his FDA (e.g., upgrades from F/O/HKG to CAP/HKG), his original commitment period shall be extended by twelve12 months plus the time spent in training. In the EMEA FDA, however, a pilot may change his crew status in this manner only if the pilot can activate to the new seat and actually perform revenue operations in that seat for at least 12 months prior to the end of his EMEA FDA assignment. This restriction may be waived by the Vice President, Flight Operations, in extenuating circumstances.

iv. Furlough or ExcessAssignment In the event that a pilot assigned to an FDA pilot is furloughed or excessed and that pilot has a lease/rental obligation in the FDA that extendsassigned (as that term is defined in Section 24) to a crew position and that pilot has contractual obligations associated with his rented permanent, primary residence (e.g., lease, utilities, mobile phone, internet, cable/television, and telephone) in the FDA that extend beyond his furlough date or his projected activation into his new crew statusposition, the Company shall assume responsibility for reasonable and customary lease termination fees,; provided, however, that the pilot previously providedprovides the Company with a copy of the leaseany relevant agreement pursuant to paragraph C.2.d.iv. of this LOA(s), has taken reasonable steps to mitigate or reduce the termination fees, and has fully cooperated with the Company in this regard.

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In addition, the Company shall reimburse educational expenses that the furloughed pilot is responsible for beyond the furlough date. Educational expenses for an FDA pilot assigned (as that term is defined in Section 24) to a crew position are subject to the provisions in Paragraph G.2. of this LOA (below). In the event that aan FDA pilot assigned to an FDA is furloughed or excessedassigned (as that term is defined in Section 24) to a crew position in a different geographic location, he shall be entitled to the relocation benefits set forth in Section 6.E.2.b.ii. or iii. of the Basic Agreement (as appropriate).

h. Household Goods Shipments i. Initial Household Goods Shipment

During an FDA pilot’s FDA Assignment Window, he shall be entitled to a household goods shipment of 2,000 lbs. (or 4,000 lbs. if the pilot elected to waive reimbursement of domestic storage expenses pursuant to Paragraph C.2.c. of this LOA (above)) from his pre-FDA domestic residence to his permanent, primary residence in the FDA. A pilot’s initial household goods shipment shall be via FedEx Express International Economy (IE) service (or the most comparable such service if IE is discontinued).

ii. v. Return Household Goods Shipment Upon successful completion of his commitment period, a pilot is entitled to household goods shipments viaDuring an FDA pilot’s FDA Transition Window, he shall be eligible for a household goods shipment of 4,000 lbs. (or 6,000 lbs. if the pilot elected to waive reimbursement of domestic storage expenses pursuant to Paragraph C.2.c. of this LOA (above)). A pilot’s return household goods shipment shall be via either FedEx Express, on a space available basis, of up to a total of 3,000 pounds. This benefit shall include the cost of packing such goods (subject to the standard limitations regarding the types of goods to be shipped/stored (which are catalogued in Section 6.C.1.b. of the Basic Agreement)), and the cost of transporting them as described above. or by surface transportation if surface transportation offers more expeditious transit times than shipment by FedEx Express on a space available basis. Unless different locations are authorized by the Managing Director, Human Resources Operations Support,Company’s Relocation Department, return household goods shipments shall be, at the pilot’s option, from the pilot’s permanent, primary residence in the FDA base where he served his commitment to:

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(a) his lastpre-FDA domestic pre-FDA residence,residence; (b) his new base, if the pilot is relocating his permanent, primary

residence to his new base; or (c) his new residence if located in a different location in the US

involving no greater cost to the Company; or(b) his new base. (using his pre-FDA domestic residence as the baseline).

If a pilot chooses a location which exceeds the cost to the Company described above, his return household shipment benefit shall apply provided he pays the difference in costof shipping the pilot’s household goods from his permanent, primary residence in the FDA to his pre-FDA domestic residence, the pilot shall be responsible for the additional cost of shipping to that location. This provision shall not limit or abridge any relocation rights which accrued to the pilot prior to his FDA assignment (e.g., rights accrued by SFS and ANC pilots under 1999 and 2006 FDA LOAs).Agreements).

iii. For all household goods shipments, this benefit shall include the cost of packing such goods, subject to the standard limitations regarding the types of goods to be shipped/stored, which are catalogued in Section 6.C.1.b. of the Basic Agreement, and the cost of transporting them as described above.

iv. For shipments of household goods by air, the pilot shall be responsible for the cost of shipping any excess dimensional weight if the dimensional weight exceeds both the actual weight and the maximum weight allowance. The dimensional weight for such shipments is calculated by multiplying the actual volume of the shipment (in cu. ft.) by 4.0 lbs./cu. ft.

v. Payment for any excess weight over the applicable weight limits or additional shipment costs associated with the destination of his household goods shipment shall be the sole responsibility of the pilot and shall be paid at the time of the move.

vi. Delayed household goods shipments shall be handled in accordance with Section 6.C.1.a. of the Basic Agreement.

vii. Regardless of whether the pilot elected the Enhanced Option or the Existing CBA Option, the Company shall reimburse the pilot for the cost of a shipment of personal items (up to 100 lbs., but no more than $500) after the pilot’s household goods are shipped from the FDA; provided, however, that the pilot ships his personal items using his FedEx employee discount/reduced-rate shipping account and submits a receipt/invoice within 30 days of the date of the shipment.

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i. h. In the event the Company closes an FDA, pilots who have not met their commitment period shall not be required to repay any seed money or monies paid by the Company for storage and shall be permitted to a return up to a total of 3,000 pounds of household goods as provided under paragraph C.2.g.v. shipment in accordance with Paragraph C.2.h.ii. of this LOA (above).

i. Upon a pilot’s activation into an FDA crew position, he shall be entitled to a household goods shipment to his FDA location via FedEx Express, using international economy (IE) service (or the most comparable such service if IE is discontinued), not to exceed a total of 1,000 pounds. This benefit shall include the cost of packing such goods (subject to the standard limitations regarding the types of goods to be shipped/stored (which are catalogued in Section 6.C.1.b. of the Basic Agreement)), and the cost of transporting them to the pilot’s residence in the FDA. If the pilot’s shipment exceeds 1,000 pounds, the pilot shall be responsible for paying the cost of the excess.

j. Orientation and Housing Search Services i. During the first 30 days of a pilot'’s assignment to the FDA, the

Company shall make available to FDA pilots local real estate and orientation assistance. This shall be provided through individuals who are fluent in the local language and who are familiar with the FDA location. This service may last up to four days and may be provided individually or in small groups.

ii. In extraordinary circumstances, an additional day(s) may be approved by the Vice President, Flight Operations, or his designee. Any additional daysday(s) not approved by the Company shall be at the pilot’s expense. A pilot may use his Company credit card to pay for any additional daysday(s) and the amount of the expenditure will be recovered through payroll deduction as provided in Section 3.E.1.a.iv. of the Basic Agreement.

iii. The Company shall provide 6 months of ongoing telephonic support beginning the first day of onsite housing assistance provided to the pilot. This shall be provided through individuals who are fluent in the local language and who are familiar with the FDA location.

k. iii. Initial Residence upon Arrival. i. (a) During the first 30 days of a pilot’s assignment to the EMEA FDA,

he may be required to stay, at the Company’s expense, in an extended stay hotel that has been jointly approved by the Company and the Association. To the extent that the daily cost of the hotel stay is less than $250, the Company will pay the pilot the difference between the cost of the hotel stay and $250.

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ii. (b) Pilots assigned to the HKG FDA (or the EMEA FDA if the pilots are not so required pursuant to paragraphParagraph C.2.j.iii.(a)k.i. of this LOA (above)) may elect to live in a local hotel for up to 30 nights in the first 60 days of his assignment. The Company will reimburse pilots making this election for the cost of hotel arrangements up to $250 per night.

iii. (c) In extraordinary circumstances, the Vice President, Flight Operations, or his designee, may approve additional days of hotel usage for pilots in the FDA.

iv. (d) Payments for hotel stays pursuant to these provisions are in lieu of the housing allowance set forth in paragraphParagraph C.2.d. of this LOA (above).

l. Deposit Assistance i. iv. The Company will provide one holding deposit per pilot per

assignment to an FDA, arranged through the Company’s vendor for facilitating relocations in the FDA. The holding deposit shall be offset against the pilot’s deposit assistance benefit in Paragraph C.2.l.ii of this LOA (below), or his housing allowance in Paragraph C.2.d. of this LOA (above), as applicable. In the event a rental agreement is not consummated and the holding deposit, or portion thereof is forfeited, the Company may seek reimbursement from the pilot, unless the deposit was forfeited due to circumstances beyond the pilot’s control. If a holding deposit is forfeited for reasons beyond a pilot’s control, another holding deposit may be provided at the Company’s discretion.

v. The Company shall provide four months of ongoing telephonic support measured from the first day of onsite housing assistance provided to the pilot. This shall be provided through individuals who are fluent in the local language and who are familiar with the FDA location.

k. Deposit Assistance ii. i. If a landlord/lessor requires an advance deposit(s) as a

requirement of leasing a residential propertypermanent, primary residence in the FDA, the Company shall provide deposit assistance up to a maximum of $10,000 per pilot. The purpose of the deposit assistance is to mitigate the financial burden placed upon pilots who are required to supply advance deposits. The provision of the deposit assistance shall be on a tax -free basis to the pilot.

iii. ii. In the event that a pilot is transitioning from one FDA rentalpermanent, primary residence in the FDA to another, the

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Company shall provide deposit assistance for the rental of the second residence. When the Company renders deposit assistance for a second property without first receiving a refund of monies deposited on the first rental, the total deposit assistance outlay shall not exceed $20,000 between the two deposits,; provided, however, that deposit assistance for a second property is available only if the pilot has made reasonable and timely efforts to obtain the return of his deposit by the landlord/lessor of the first property and has fully cooperated with the Company in this regard.

iv. iii. This deposit shall be paid directly to the landlord/lessor, as applicable, once the pilot supplies documentation establishing the existence of the deposit requirement.

v. iv. At the conclusion of the pilot’s lease, the refundable portion of the deposit for which the assistance was provided shall be returned to the Company within 60 days after the pilot receives the funds.

vi. v. The pilot/lessee shall manage his rental property in such a way as to minimize the amount, if any, withheld by the landlord/lessor. Absent extraordinary circumstances (e.g., failure to pay rent, photographically documented damage beyond normal wear and tear), the Company shall not seek reimbursement from the pilot with respect to deposit funds withheld by the pilot’s landlord/lessor. Any reimbursements due from the pilot to the Company owing to reduced deposit assistance refunds shall be treated as adjustments or reimbursements as provided in Section 3.E.1.a.vi. of the Basic Agreement. The Company shall not discipline or counsel the pilot with respect to deposit funds withheld by the pilot’s landlord/lessor.

m. l. Realtor’s Fee If there is a customary, contractual realtor’s fee associated with a pilot’s rental of ahis permanent, primary residence, the Company shall cover the cost of up to two such fees per pilot per assignment to an FDA,during the pilot’s initial commitment period in the FDA. For each additional 2 years of active service as a pilot in the FDA, the Company shall cover the cost of an additional realtor’s fee; provided, however, that the Company’s vendor for providing local real estate and orientation assistance reviews and approves the pilot’s lease(s).

n. m. Early Relocations Limitations i. A pilot may elect to relocate to the FDA up to 60 days before his

projected activation date. ii. If the pilot elects to relocate prior to his activation date, upon his

relocation, he shall be entitled to benefits associated with visas and

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other required credentials, seed money, storage, tax equalization, airline tickets, household goods shipment, orientation and housing search services, deposit assistance, and the realtor’s fee assistance.

iii. Requests to access the relocation benefits listed in Paragraph C.2.n.ii. of this LOA (above) more than 60 days before a pilot’s projected activation date shall be at the Company’s discretion. If such a request is granted, it shall be on a non-precedential basis.

iv. Section 6.A.8. of the Basic Agreement shall apply to pilots who relocate prior to activation.

v. A pilot may be required to sign a confirmation letter acknowledging his early relocation benefits and responsibilities.

o. n. Habitation Tax To the extent that If a pilot lives’s permanent, primary residence is within the acceptable radius of his base, as provided in paragraphParagraph C.2.d.iii. of this LOA (above), and he incurs a habitation taxHabitation Tax during his assignment to the EMEA FDA, such tax shall be covered by the Company on a tax free basis to the pilot.

p. Relocation Upon Termination of Employment An FDA pilot whose employment with the Company is terminated due to retirement, voluntary resignation, or disciplinary discharge (for misconduct other than that described in Section 6.E.2.b.iv. of the Basic Agreement) shall be eligible for the same return relocation benefits that he would be eligible for if he was relocating from the FDA as a result of an award to a new crew position. If an FDA pilot’s employment with the Company is terminated due to misconduct described in Section 6.E.2.b.iv. of the Basic Agreement, the terms and conditions of that section shall apply, regardless of whether the pilot elected the Enhanced Option or the Existing CBA Option at the beginning of his assignment to the FDA.

q. Miscellaneous Expense Reimbursements The Company shall reimburse an FDA pilot for the following miscellaneous expenses (receipts or other documentation required, regardless of amount), provided that such reimbursement requests are submitted within 90 days of the date the expense was incurred, in accordance with the Company’s standard procedures concerning expense reporting:

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i. Wire transfer fees (up to a total of $600/calendar year but not more than 3 such wire transfers, or $50, per month) (Note: reimbursement requests shall be made on a quarterly basis only);

ii. Ground transportation expenses (up to a total of $600 each way per assignment to an FDA) for the pilot and the members of his immediate family who are relocating with him to the FDA, as follows: (a) from his pre-FDA domestic residence to the domestic departure

airport; (b) from the FDA arrival airport to the initial stay hotel and/or the

pilot’s permanent, primary residence in the FDA; (c) from the pilot’s permanent, primary residence in the FDA to the

exit transition hotel in the FDA and/or the FDA departure airport; and

(d) from the domestic arrival airport to the exit transition hotel and/or his post-FDA domestic residence.

In appropriate circumstances (e.g., size of pilot’s traveling party, excess luggage, distance traveled, etc.) and on a case-by-case/non-precedential basis, the Company may reimburse ground transportation expenses in excess of $600. Requests for such reimbursements shall not be unreasonably denied.

D. FDA Transition Procedures 1. Entry Transition to an FDA Crew Position from a Non-FDA Crew Position

a. A pilot who, at the beginning of his assignment to the FDA, elects to relocate his permanent, primary residence to the FDA rather than commute shall be subject to the following: i. Upon activation in an FDA crew position, the Company shall create

a 21 consecutive day “relocation” footprint during which no flight activities will be assigned.

ii. During his relocation footprint, the pilot shall relocate his permanent, primary residence to the FDA and shall complete the required immigration, visa, work/residence permit paperwork necessary for the pilot to live and work in the FDA.

iii. The pilot shall be positioned in the FDA, with all immigration, visa, and work/residence permit paperwork complete, and available for flight assignments no later than the 22nd day after the pilot’s activation in the FDA crew position.

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iv. The pilot may elect not to utilize the entire relocation footprint in the event that he has obtained all the necessary work/residence permits prior to the end of his relocation footprint.

b. A pilot who elects to commute to the FDA rather than relocate his permanent, primary residence to the FDA shall request and coordinate with his Fleet Captain any schedule adjustments that involve dropping activities without pay to facilitate his transition to the FDA.

c. Every new FDA pilot may be required to operate theatre familiarization flights, which shall be scheduled to occur as soon as operationally feasible after his arrival in the FDA (subject to the relocation footprint above).

2. Exit Transition from an FDA Crew Position to a Non-FDA Crew Position a. Beginning no earlier than 120 days prior to an EMEA FDA pilot’s

anticipated departure date and upon written request by the pilot, the Company shall provide local assistance on the following: sending lease cancellation notice, accompanied property walk-through, documentation of property condition, negotiation of any “dilapidations,” recovery of security deposit, mail forwarding, bank account closings, utilities closings, local residency registration (notice of departure). Such assistance is not currently necessary in Hong Kong. In the event the parties agree that such assistance has become necessary in Hong Kong, the parties agree to revisit this issue.

b. Hotel Use During Exit Transition Following the earlier of the date the pilot vacates his permanent, primary residence in the FDA or the end of his housing allowance, as provided in Paragraph C.2.d.vi. (above), and prior to his activation in his next crew position, an exiting FDA pilot may elect to stay in a hotel for up to 15 nights in either: i. a location within 100 nm of the FDA base airport; ii. the location of the pilot’s pre- or post-FDA domestic residence;

and/or iii. the pilot’s new base, if he is relocating his permanent, primary

residence to his new base. The Company shall reimburse the pilot up to the contract hotel rate for such location, but in no event shall the Company reimburse the pilot more than $250/night. An exiting FDA pilot may receive the “full” or 30-day pro-rated housing allowance (as provided in Paragraph C.2.d.vi. of this LOA) and reimbursement of hotel expenses under this paragraph at the same time. An exiting FDA pilot may also receive the “transition

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allowance” as provided in Paragraph D.2.c. of this LOA (below) and reimbursement of hotel expenses under this paragraph at the same time.

c. Early Exit Option Prior to an FDA pilot’s IT/U training start date or his base transfer date, the pilot may elect to exercise an “Early Exit” option as follows: i. At a time jointly selected by the pilot and his Fleet Captain, the

Company shall designate a 7 consecutive day “transition” footprint during which no flight activities will be assigned. To the extent that conflicts with the transition footprint exist, activities removed shall be pay protected. A pilot awarded a secondary line shall have 42 CH credited towards the pilot’s BLG. The pilot’s transition from the FDA must take place during the remaining bid periods prior to his IT/U training start date or his base transfer date. The pilot shall use this “transition footprint” to relocate his permanent, primary residence from the FDA.

ii. The Company shall provide the pilot with 2 monthly “transition allowance” payments, which payments shall be equal to one-half (½) of the pilot’s FDA’s monthly housing allowance (i.e., a total of 1 month of the pilot’s FDA’s monthly housing allowance). A pilot may not receive the transition allowance and the housing allowance (full or pro-rated) in the same month, nor may the pilot receive the transition allowance after the month in which he activates in his new crew position.

iii. If the pilot withdraws from IT/U training for his new crew position and returns to his FDA crew position, he shall reimburse the transition allowance.

iv. The Company shall assume responsibility for lease termination fees (up to 2 months of rental/lease payments, but not more than 2 months of housing allowance payments) incurred by the pilot as a result of his transition from the FDA; provided, however, that the pilot has taken reasonable steps to minimize such early lease termination fees (e.g., bidding for an IT/U training date/slot or base transfer date so as to minimize lease termination fees, etc.).

d. An FDA pilot transitioning to a non-FDA crew position who does not elect the “Early Exit Option” (above) shall be entitled to “relocation days off” following his activation date in his new crew position in accordance with the provisions of Section 6.F. of the Basic Agreement.

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3. Transition Between FDA Crew Positions A pilot who is transitioning between FDA crew positions in different geographic locations shall be subject to all the provisions in Paragraph D.1. and D.2. of this LOA (above), except for Paragraph D.2.d. A pilot who is transitioning between FDA crew positions in the same FDA (e.g., an upgrade from 30FH to 30CH) shall not be subject to any of the provisions of Paragraph D. of this LOA. A pilot who is transitioning between crew positions in different FDAs but in the same geographic location shall be subject to the provisions of Paragraph O. of this LOA (“Crew Position Changes to Different FDAs in the Same Geographic Location”) (below).

E. H. Federal Tax Equalization Services 1. Pilots accepting permanent vacancies in an FDA areAn FDA pilot who

relocates his permanent, primary residence to the FDA and receives the FDA housing allowance is required to use the tax equalization procedures and tax return filing services (US Federal, State, and foreign) offered by the Company through its tax equalization vendor. a. The purpose of tax equalization is to ensure that a pilot bears

approximately the same US Federal tax burden as he would pay if he were assigned to a domestic base rather than the FDA.

b. To facilitate accurate tax computations and reporting, pilots will be required to provide all necessary tax information to the appointed tax provider. A pilot’s persistent failure to maintain timely contact and completion of required documentation pertaining to the tax equalization program may result in suspension of the pilot’s FDA housing allowance pursuant to the provisions of Paragraph C.2.d.v. of this LOA (above).

2. PilotsA pilot eligible for tax equalization services shall be entitled to any accrued tax benefits based on the enrollment of dependent children in private schools located in the country in which the FDA is centered (e.g., German tax deduction for children enrolled in private schools). Any taxes based on personal or religious choices (e.g., church tax, pet tax) are not covered by the tax equalization program and are the responsibility of the pilot.

3. If a pilot is not entitled to tax equalization services and his situation results in a foreign tax filing obligation in the country where the FDA airport is located, the Company shall provide foreign tax filing services through its tax equalization vendor.

4. In order to facilitate tax compliance in the country where the pilot’s permanent, primary residence is located, and consistent with Section 26.N.2. of the Basic Agreement, FDA pilots shall update their permanent,

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primary residence address in the applicable Company computer system as necessary.

F. I. FDA Re-mail Program 1. On a weekly basis, the Company shall forward a pilot’s first class mail

received at the Company’s Memphis hub to the pilot’s permanent, primary residence in the country containing the airport in which the FDA base is centered.

2. a. A HKG FDA pilot residing in the HKG Special Administrative Region (“HKG SAR”) may elect to receive such mail at the designated HKG FedEx facility (currently the Mody Rd., Kowloon, World Service Centerlocated at 63 Mody Road, Tsim Sha Tsui East, Hong Kong) instead of his permanent, primary residence in the HKG SAR.b. A HKG FDA pilot who does not reside in the HKG SAR will receive such mail at the Company’s Guangzhou, China (CAN) hub.

3. 2. For purposes of this provision, “first class mail” shall include, but not be limited to, personal correspondence mail and cards, credit card statements, bills, tax returns and notifications, mail order prescriptions, and documents issued by state and/or federal governments, that could otherwise be sent directly to the pilot at his permanent, primary FDA residence address in the FDA pursuant to local governmental regulations.

4. 3. In the event the Company-provided health plan allows mail order prescriptions to be delivered directly to the pilot’s permanent, primary FDA residence in the FDA, mail order prescriptions shall not be forwarded to the pilot pursuant to the re-mail program.

5. 4. To the extent practicable, pilots assigned to FDAs must minimize the need for first class mail to be forwarded to them pursuant to the re-mail program by, for example, updating their address for first class mail to their permanent FDA, primary residence address in the FDA.

6. 5. In the event that a pilot will be absent from the FDA location for an extended period of time and elects to temporarily suspend the re-mail service during his absence, upon his return, the pilot must collect his mail from the designated FedEx facility and notify the Flight Operations Administrator for the FDA of his desire to restart the re-mail service.

G. J. Education Expense Reimbursement 1. The Company shall reimburse documented educational expenses for an

FDA-based pilot’s child(ren) between the ages of 53 and 19, which are incurred in the location of the FDA (including but not limited to reservation fees, application fees, tuition, capital expenses, books and supplies, school provided transportation, deposits, technology fees, uniform fees and other

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expenses related to the child(ren)’s education), up to $5,000 per child (but not to exceed $10,00015,000 per family) per school year.

2. Education Conflicts with IT/U Training or Base Transfers The following applies to a pilot, who has completed his applicable commitment period, and who desires to minimize conflicts between IT/U training or base transfers and their dependents’ enrollment in school in the FDA location. a. During the IT/U and base transfer monthly bidding process, an FDA pilot

shall have the ability to designate his request to defer an IT/U training date or base transfer date to which the pilot would have otherwise been assigned. The pilot shall have the ability to designate a preferred exit date. For FDA pilots based in an FDA centered in a European Union (“EU”) country, the preferred exit date shall comply with the time limit in Paragraph N.1. of this LOA (below).

b. The granting of a deferral request shall not result in an SDP or Inverse SDP for any pilot. If granted, the pilot shall then be assigned to start training for his awarded/assigned crew position within 60 days of his preferred exit date. The pilot shall be given at least 60 days’ notice of his assigned IT/U training start date or his base transfer activation date (as applicable).

c. If the FDA pilot’s request is denied and the pilot is assigned to a IT/U training date or base transfer date that conflicts with the pilot’s dependent’s enrollment in school in the FDA location, the Company shall reimburse the pilot for any educational expenses that the pilot is responsible for beyond the pilot’s activation date; provided however, that the pilot has taken reasonable steps to mitigate the need for the Company to reimburse the educational expenses.

d. This paragraph shall not apply to an FDA pilot transitioning between crew positions in the same FDA or an FDA pilot subject to Paragraph O., Paragraph P., or Paragraph N. of this LOA (below).

H. K. Special Temporary Vacancies for FDAs In lieu of Section 24.B.2. of the Basic Agreement, theThe following rules shall apply to Special Temporary Vacancies (STVs) in the FDA. STVs shall only be available for the first two years after each FDA opens. Thereafter, if the Company advises the Association in writing of its intent to close the FDA, the STV rules contained in this paragraph shall once again become available in the FDA that is closing, when the Company is regularly operating fewer than 50% of the aircraft which it regularly operated in that base at the time of the notification of its intent to close. The use of STVs in conjunction with a base

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closure is limited to 540 days from the Company’s first use of the STV application rule in that context. 1. STV awards shall have a duration between one and three bid periods. 2. STV awards shall begin and end concurrent with a bid period. 3. A STV posting shall specify the crew position(s) from which bids will be

accepted and, if applicable, the number of bids which will be awarded at each domicile from which bids are accepted.

4. A pilot shall be entitled to one business class ticket positioning him to the STV location at the beginning of his assignment and back to his permanent base at the conclusion of his assignment. The Company shall also provide a pilot’s dependents with one round-trip coach class ticket from the pilot’s permanent, primary residence to the FDA location during the assignment.

5. The pilot shall be entitled to per diem for the duration of his STV assignment, when the pilot is not otherwise being paid per diem (e.g., on a trip). This shall be accomplished by the submission of a pay log unless pay automation eliminates the necessity for a pay log.

6. The pilot shall be entitled to Company paid lodging in accommodations of quality similar to that of the local contract hotels.

I. L. Pilots Relocating from SFS to the EMEA or HKG FDAs Provided he otherwise qualifies, a pilot formerly assigned to the SFS FDA may elect to take his FDA move back provided in Section 6.E.2.b. of the Basic Agreement, prior to his activation into the FDA. Once moved back to the United States, a pilot who selects the “Enhanced Option” may take advantage of the household goods storage provided in paragraphParagraph C.2.c. of this LOA (above).

J. M. Pilots Relocating from ANC to the EMEA or HKG FDAs For an ANC pilot who is entitled to a "“return move"” relocation package from ANC, the pilots may elect to be treated in the same fashion (except that their base is in ANC and not SFS) as the SFS pilots in paragraph HParagraph I. of this LOA, above (“Pilots Relocating from SFS to the EMEA or HKG FDAs”) (above).

K. N. Deadhead by Surface Transportation in the EMEA and HKG FDAs 1. Trains

a. Pilots may be scheduled to deadhead on trains in FDAs to the same extent as airplanes or ground transportation provided that, measured from scheduled departure time to scheduled arrival, trains may only be used on a scheduled basis for deadheads of less than 4 hours, with the following limitations:

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i. Train travel shall only be scheduled between the following city pairs: (a) CGN-FRA (b) CGN-CDG (c) CDG-FRA (d) CAN-HKG

ii. Trains must have a minimum two class configuration, and the Company shall book the highest class of service that is readily accessible to the public (unless otherwise authorized by the SIG).

iii. Train travel shall not be scheduled to occur between the hours of 0200-0459 LBT.

b. Trains may be used in FDAs under Section 8.A.3.c. of the Basic Agreement (“Operational Deadheads”) to the same extent as other modes of transportation mentioned therein, not to exceed 7 hours measured from scheduled departure time to scheduled arrival. Such train travel shall be booked in the highest class of service that is readily accessible to the public. If the train lacks the minimum two class configuration or a higher class is not available, train travel may be used only less than 4 hours, measured from scheduled departure time to scheduled arrival, unless waived by the pilot.

c. Train deadheads shall create a deviation bank in the same manner as airline tickets. In no event shall the deviation bank credit for such train deadheads be less than $150 per deadhead.

d. Train deadheads shall include a one-hour showtime prior to scheduled departure, which shall not count toward the hour limit set forth in paragraph JParagraph K.1.a. and b. of this LOA (above).

e. A pilot scheduled to deadhead by train shall receive pay and credit as if the pilot had traveled by air.

f. If any FDA trip includes scheduled train travel, a pilot who operates the trip on a scheduled basis shall be able to expense up to $40.00 for each occurrence for surface transportation costs in order to position to and/or from the train station (i.e., at the beginning and/or end of a scheduled trip).

2. Deadhead by Surface Transportation Other Than Train a. With respect to ground transportation between HKG-CAN and CGN-

FRA, Section 8.B.1.b. of the Basic Agreement is waived. b. With respect to ground transportation in the HKG bid period package(s)

between HKG-CAN, the following additional limitations apply:

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i. Pick-ups for scheduled ground transportation deadheads must be prior to 2000 LBT.

ii. There will be no ground transportation scheduled in the bid period package that occurs between the hours of 2331 to 0459 LBT.

c. With respect to ground transportation between HKG-CAN, deadheads by surface transportation other than a train shall create a deviation bank in the same manner as airline tickets. In no event shall the deviation bank credit for such surface transportation deadheads be less than $150200 per deadhead.

d. Section 8.B.2. of the Basic Agreement shall be amended to read as follows:

The surface transportation shall be provided on a non-public commercial operator; provided, however, that between international locations specifically approved by the SIG, (e.g., HKG-CAN and CGN-FRA), a pilot may be scheduled for ground transportation on a public commercial operator (e.g., train, hydrofoil)

L. Reimbursement of Ground Transportation Expenses in Lieu of Airport Parking (EMEA FDA Only) A pilot activated in an EMEA FDA crew position shall have the ability to expense up to $40/trip for ground transportation expenses (e.g., public train/subway/bus/taxi) to/from CGN in lieu of airport parking in accordance with Section 5.F. of the Basic Agreement. Reimbursement shall be limited to the pilot’s actual cost (receipt(s) required) of ground transportation to/from the FDA base airport in conjunction with a trip.

M. O. Scheduling Provisions for the EMEA and HKG FDAs 1. Reserve pilots shall have a report status of R-3 for the HKG FDA or future

CDG FDA, and R-2 for the CGN FDA. 2. There shall be no co-terminals associated with the HKG or CGN FDAs. 3. In accordance with Section 25.A.2. of the Basic Agreement, the CGN FDA

local base day shall begin at 0215 LBT. 4. Training conducted outside of 100 nautical milesnm of the Hong KongHKG

Special Administrative Region (“HKG SAR”) shall be considered and treated as off-site training in accordance with Section 11.E.7. of the Basic Agreement. If a pilot is assigned to a training event in Zhuhai, China, the pilot may expense the reasonable and customary cost of transportation between Hong KongHKG and the training location in Zhuhai, as well as hotel accommodations at the contract hotel in Zhuhai. The number of nights shall be at least equal to the number of day(s) of training.

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5. FDA trips shall begin and end at the airport upon which the FDA is centered (i.e., the FDA base airport).

6. The Company shall not schedule, in the HKG FDA bid period package(s), surface transportation deadheads between HKG-CAN that precede flight-deck duty in the same duty period unless: a. a day room is provided between the deadhead portion of the duty period

and the flight-deck duty portion of the duty period; or b. the revenue departure is scheduled to occur between 1000 and 2000

LBT. 7. No more than 50% of trips in the HKG bid period package shall have front-

end surface transportation deadheads to CAN (unless otherwise authorized by the SIG).

N. P. Maximum Duration of Assignment to an FDA in a European Union Country and Subsequent Bidding Limitations 1. The maximum duration of assignment to an FDA centered in a European

Union (“EU”) country shall be 4 years, 911 months as measured from the earlier of the pilot’s activation date in his FDA crew position or his registration with local immigration authorities.

2. A pilot who has been stationed in an FDA centered in an EU country for 4 years and 3 months shall have the ability to be awarded or assigned anya crew position in another geographical location which he is able to hold. This shall not constitute an excess assignment.geographic location without a System Bid as follows: a. The pilot shall notify his Fleet Captain (or his designee) in writing of the

election under this paragraph at least 90 days prior to the pilot’s 48th month in his FDA crew position, as measured from the earlier of the pilot’s activation date in his FDA crew position or his registration with local immigration authorities. The pilot’s notice shall include: i. The selection by the pilot of a crew position in a different geographic

location in which he would not be the junior awarded/assigned pilot in that crew position.

ii. The pilot’s preferred exit date (i.e., the date upon which the pilot desires to start IT/U training for or base transfer to his selected crew position), which shall be no earlier than 4 years and no later than 4 years and 11 months following the earlier of the pilot’s activation date in his FDA crew position or his registration with local immigration authorities. The Company shall assign the pilot to an IT/U training start date or a base transfer activation date (subject to the applicable contractual provisions concerning the timing of base transfers, e.g.,

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Section 25.C.6.) which shall not be less than 90 days from the date of the pilot’s election.

iii. The Company shall provide the pilot with a minimum of 60 days’ notice of his assigned IT/U training start or base transfer activation date, which date shall be no earlier than the pilot’s preferred exit date and no later than 21 days after the pilot’s preferred exit date.

b. 3. If the pilot does not make this election, the Company shall assign the pilot to a crew position in a different geographic location in which he would not be the junior awarded/assigned pilot in that crew position. This shall occur at 4 years and 3 months following the earlier of the pilot’s activation date in his FDA crew position or his registration with local immigration authorities. A pilot awarded or assigned to another crew position pursuant to this paragraph may be assigned a training datesubparagraph may be assigned an IT/U training start date or a base transfer activation date (subject to the applicable contractual provisions concerning the timing of base transfers, e.g., Section 25.C.6.) consistent with Company staffing requirements. The Company shall provide the pilot with a minimum of 60 days’ notice prior to the ITUIT/U training start date or base transfer activation date. A pilot trained

c. The exercise of this paragraph shall not be considered an assignment pursuant to Section 24.C.2. A pilot assigned to an IT/U training date/slot pursuant to this paragraph shall not generate passover payan SDP or an inverse SDP for any pilot.

3. 4. After a pilot leaves an FDA centered in an EU country, he may not be activated in that crew base for at least 1 year after the last day of his previous assignment, provided that he activates in another crew position based outside of the country in which the FDA is centered and he establishes a permanent, primary residence outside of the country in which the FDA is centered. This limitation shall not apply if the subsequent crew base toat which the pilot is assignedstationed is centered in a country in which the pilot has never been based as a FedEx Express employee.

4. 5. If the Company establishes a new FDA in an EU country that requires a maximum duration different than the limit specified above, the Company shall publish that limit as provided in paragraphParagraph B.1. of this LOA (above). All other provisions of this paragraph shall apply to such FDA.

O. Q. Crew Position Changes to Different FDAs in the Same Geographic Location If the Company opens multiple FDAs in the same geographic location (e.g., MD-11 MEM/HKG; A300 MEM/HKG), the following shall apply to pilots who activate into a different FDA within the same geographic location (e.g., an MD-11 F/O MEM/HKG upgrades to an A300 CA MEM/HKG).

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1. The following shall apply to pilots who chose the Enhanced Option as part of their original award: a. Such pilots shall be eligible for the benefits described in

paragraphParagraphs C.2.a. (Seed Money) and C.2.b. (Four Year Service Credit) of this LOA (above), treating their new award as a completely separate award to an FDA in the EMEA or HKG.

b. A pilot’s activation into a different FDA in the same geographic location as his current FDA award restarts that pilot’s service commitment under paragraphParagraph C. of this LOA (above) (i.e., the pilot’s service in his prior FDA does not “count” toward his service commitment in the new FDA).

c. The benefits described in paragraphParagraphs C.2.c. (Storage), C.2.d. (Housing Allowance), C.2.e. (Tax Equalization), C.2.f. (Airline Tickets), C.2.g.v. (Return Household Goods Shipment), and C.2.i. (1,000 lb. household goods shipmenth. (Household Goods Shipments) of this LOA shall be administered as if the pilot had not changed FDAs, but rather had been on one continuous assignment in the same FDA.

d. If a pilot’s crew position changes to a different FDA in the same geographic location and the pilot has not completed his original commitment period, the pilot shall not be eligible to receive the seed money otherwise provided by paragraph LParagraph O.1.a. of this LOA (immediately above).

2. Pilots who chose the Existing CBA Option as part of their original award shall continue to receive tax equalization benefits provided by paragraph DParagraph E. of this LOA (above).

P. R. FDA Exit in Lieu of Normal System Bid Award The following procedures shall apply to aA pilot without a bid award to anotheractivated in a crew position who is assigned toin an FDA without a maximum service limit as described in paragraph LParagraph N. of this LOA (“Maximum Duration of Assignment to an FDA in a European Union Country and Subsequent Bidding Limitations”), above. (above) shall have the ability to select a new non-FDA crew position award without a System Bid award/assignment as follows: 1. The pilot shall notify his Chief PilotFleet Captain (or his designee) in writing

of the election under this paragraph, which shall include: a. The selection by the pilot of a non-FDA crew position that ain which he

would not be the junior awarded/assigned pilot is activated in and currently holdsin that crew position; and

b. The pilot’s preferred exit date (i.e., the date upon which the pilot starts ITUdesires to start IT/U training for or when the pilot base transfersbase

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transfer to his desired crew position), which shall not be less than 6 months from the date of the notice. The preferred exit date must be after the completion of the pilot’s commitment period, plus 12 months.

2. The Company shall notify the pilot if it requires a replacement pilot and shall post a vacancy for the positionconduct a System Bid within 30 days of the pilot’s notice perin accordance with Section 24 of the Basic Agreement.

3. In the event the FDA vacancy is filled or a replacement pilot was not required, the Company shall provide the pilot with a minimum of 60 days’ notice of the ITUhis assigned IT/U training start or base transfer activation date, and such date must be within 75 days of the pilot’s preferred exit date.

4. In the event that the posted vacancy is not filled, the Company may post the vacancy at least once moreconduct another System Bid within 30 days of the closing of the postingfirst System Bid. a. If the vacancy is filled or if the Company elects not to post the

vacancyconduct a second timeSystem Bid, the Company shall provide the pilot with a minimum of 60 days’ notice of the ITUhis assigned IT/U training or base transfer date, and such date must be within 75 days of the pilot’s preferred exit date;.

b. If the postingCompany conducts a second System Bid and the vacancy is not filled for a second time, the Company shall provide the pilot with a minimum of 60 days’ notice for the ITUof his assigned IT/U training or base transfer date, and such date must be no later than 180 days beyond the preferred exit date.

5. The operation of this provision shall not generate passover for any pilot. 5. 6. Pilots employing this paragraph shall be restricted from participating

in postingsSystem Bids until the pilot is transferred to his selected crew position or begins ITUIT/U training for his selected crew position, unless waived by the VPVice President of Flight Operations.

6. The exercise of this paragraph shall not be considered an assignment pursuant to Section 24.C.2. A pilot assigned to an IT/U training date/slot pursuant to this paragraph shall not generate an SDP or an inverse SDP for any pilot.

Q. S. Unexpected Unavailability In FDA 1. If a pilot assigned to an FDA pilot becomes unavailable for line flying in his

FDA(e.g., due to long-term sick leave, loss of medical, LTD, leave of absence, etc.) and the absence is expected to last longer than one year, then the affected pilot may request that he and his dependents be returned from his FDA to his previous permanentpre-FDA residence in the U.S. without penalty. Requests for such a returnwithout penalty, pursuant to

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Paragraph C.2.f.i.(b). (Airline Tickets) and Paragraph C.2.h.ii. (Return Household Goods Shipment), Paragraph C.2.q.ii. (Reimbursement for Ground Transportation Expenses), and Paragraph D.2.a. and b. (Exit Transition Procedures). Such requests shall not be unreasonably denied. If the pilot does not make such a request, he shall be eligible to continue receiving the FDA housing allowance, provided that he maintains his permanent, primary residence in the FDA during the period of his unavailability.

2. If no request is made by the pilot after one year or more of absence (e.g., loss of medical, LTD, extended LOAs, etc.), his circumstances shall be reviewed to determine if he is expected to be available to return to active flying within two years from the date of his first absence. If the pilot’s absence is the result of a medical condition, the Company may have the pilot’s medical condition reviewed by the Company’s aeromedical advisor. The Company’s aeromedical advisor may have the pilot examined for purposes of determining how much longer the pilot is expected to continue to be absent from active flying. The Company’s aeromedical advisor shall advise both the pilot and the Company of his findings. If the pilot disagrees with the Company’s aeromedical advisor’s finding, the pilot may enlist the Association’s aeromedical department at his own expense for a second opinion. If the physicians agree on the determination, the Company and the pilot will act accordingly. If the physicians disagree, the findings and recommendations of each physician shall be submitted to a mutually acceptable third physician who shall make a determination as to the pilot’s anticipated return to active flying. The third physician’s decision shall be binding on both parties.In the event the decision is that the pilot will not be able to return to active flying during the two2 year period, then the pilot will be given the option to either return home to his U.S. permanentpre-FDA residence without penalty or lose his monthlyFDA housing allowance for the period of his continued absence. In no event shall the Company be obligated to provide a housing allowance to an absent pilot for longer than 26 monthsunavailability.

3. Regardless of which of these options the pilot elects, he may also request to be released from his FDA crew position and assigned (as that term is defined in Section 24) to another crew position in accordance with Paragraph B.4.d. of this LOA (above). Such requests shall not be unreasonably denied and shall be granted on a non-precedential basis.

4. In no event, however, shall the Company be obligated to provide more than a cumulative total of 26 months of housing allowance continuation pursuant to Paragraph Q. (this paragraph) during an assignment to an FDA.

5. If the pilot’s unavailability for line flying is the result of a medical condition, the Company may direct the pilot to be evaluated by the Company’s

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aeromedical advisor, in accordance with Section 15.D., but only to determine the expected duration of the pilot’s unavailability. Referrals to the Company’s aeromedical advisor pursuant to this paragraph shall not be considered a violation of Section 15.D.1. of the Basic Agreement.

R. T. Line of Credit Facilitation The Company shall negotiate with a reputable local bank in the city in which the FDA is centered in an attempt to reduce or eliminate any minimum deposit requirements such bank may require to open a local bank account. The purpose of this provision is to attempt to provide at least one bank in each FDA where minimum deposits, beyond those customarily found in U.S. banks, are either not required, or at least minimized.

U. Amendments to Section 6.E.2.b.i., of the Basic Agreement Section 6.E.2.b.i. of the Basic Agreement shall be amended as follows:

i. A pilot who remains at the FDA location in the same crew position for a minimum of 3 years shall be eligible to receive a relocation package #2 when leaving the FDA location, provided he relocates, at his option to:

(a) his last domestic pre-FDA residence, or a different location involving no greater cost to the Company; or

(b) his new base, at his option.

However, if he upgrades to a new crew status at the same FDA location, his 3 year commitment shall be increased by the period of time the pilot is unavailable for line flying due to his training for the new crew status. If a pilot chooses a location which exceeds the cost to the Company described above, his relocation benefit shall apply provided he pays the difference in cost.

S. V. Timing of Recurrent Training Pay/Adjustments For FDA Assigned Pilots If an FDA pilot’s recurrent training award creates a phase-in conflict as provided in Section 25.C.11.f.under the terms of the Basic Agreement, the pay deduction for the trip(s) and/or R-day(s) dropped shall be delayed by one month from the standard schedule for phase-in conflict deductions.

T. Recurrent and IT/U Training Deviation Travel Notwithstanding the provisions of Sections 8.C.2.a. and 8.C.4.d. of the Basic Agreement to the contrary: 1. For a pilot activated in a HKG or EMEA FDA crew position, the pilot shall

have a separate deviation bank established for the value of any scheduled deadhead travel to recurrent or IT/U training in Memphis or another location within the contiguous 48 states, should such location be used for recurrent or IT/U training.

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2. The pilot may expand the current 3-day window in Section 8.C.4.d. in the manner below, during which the pilot may use the recurrent or IT/U training deviation bank (“expanded window”). a. The expanded window shall begin at the end of the last scheduled

activity prior to training and end at the beginning of the first scheduled activity following training.

b. A “scheduled activity” ends at the conclusion of the last duty period for a trip, the conclusion or release from a standby period, or upon release from, or at the conclusion of, a reserve period.

c. A “scheduled activity” starts at the showtime of the first duty period for a trip, the showtime for an airport standby period, or the beginning of the notification window for a reserve period.

d. For the purposes of this paragraph, a substitution window is a “scheduled activity.”

3. A pilot may create an expanded window through any, or all, of the following means: a. monthly bid awards for the recurrent or IT/U training month, as well as

those months prior to and following recurrent or IT/U training; b. provisions of Section 25.L. (e.g., dropping a trip(s) or R-day(s), or trading

with open time or another pilot); and/or c. the use of scheduled vacation, including permissible vacation

adjustments (e.g., exchange, trade, slide, expansion, or extension). 4. During the expanded window, the delay en-route limits identified in Section

8.C.4.d. are waived, except as provided below. 5. Two series of flights for each deviation from a scheduled front- or back-end

deadhead shall be allowable/reimbursable air travel deviation expenses from the separate recurrent or IT/U training deviation bank. a. A series of flights is continuous air travel that is not interrupted by a

layover of more than 24 hours, and may begin or end with jumpseat travel on Company aircraft.

b. Front-end Deviation(s): i. The first series of flights must begin at an airport in the FDA theatre

of operations that is served by Company trunk aircraft or at a commercial passenger airport within 100 nm of the FDA base airport and end at a location in: (a) The contiguous 48 United States; or (b) Another location if pre-approved, in writing (e-mail is sufficient),

by the pilot’s Fleet Captain (or his designee).

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ii. The second series of flights must begin at one of the locations described by Paragraphs T.5.b.i.(a) or (b) of this LOA (above) and end at the location of the pilot’s recurrent or IT/U training. The second series of flights is not required to begin at the same location in which the first series of flights ended.

c. Back-end Deviation(s): i. The first series of flights must begin at the location of the pilot’s

recurrent or IT/U training and end at a location described by Paragraphs T.5.b.i.(a) or (b) of this LOA (above).

ii. The second series of flights must begin at a location described by Paragraphs T.5.b.i.(a) or (b) of this LOA (above) and end at an airport in the FDA theatre of operations that is served by Company trunk aircraft or at a commercial passenger airport within 100 nm of the FDA base airport. The second series of flights is not required to begin at the same location in which the first series of flights ended.

For purposes of this Paragraph T. of this LOA only, the phrase “FDA theatre of operations” refers to the sum of the lane segments typically operated as part of the EMEA network (for the EMEA FDA) or the APAC network (for the HKG FDA). The phrase “FDA theatre of operations” does not refer to the “European theater” in Section 12.D.1.c.ii. of the Basic Agreement.

U. Deferral of Obligation to “Protect” New Hire Junior Activation Compensation If an FDA pilot is entitled to New Hire Junior Activation Compensation (Section 24.F.7.) and would otherwise be required to bid to a crew position in a different geographic location in order to “protect” his entitlement, the pilot may defer his obligation to protect his entitlement by electing to remain in his current FDA crew position: 1. until he is required to be awarded or assigned (as those terms are defined

in Section 24) to a new crew position pursuant to Paragraph N. of this LOA (for EMEA FDA pilots), or

2. for at least an additional 2 years beyond the pilot’s commitment period (for HKG FDA pilots),

at which time his New Hire Junior Activation Compensation repayment obligations, if any, shall be determined in accordance with Section 24.F.8. of the Basic Agreement. [Note: current Oct 2013 OIM provision on this issue to be included in passover pay/FEPP transition agreement]

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V. Local Telephone Access to Contact the Company The Company agrees to provide “local” and/or “toll-free” telephone access for FDA pilots to contact the Company for business or operational purposes only (e.g., operational check-in(s) with CRS; contact Global Travel, Crew Audit, Training, Fleet Captain/Manager, Pilot Administration Center, etc.). Information concerning this telephone access and its use shall be posted on the FDA page of pilot.fedex.com.

W. Language Lessons The Berlitz online language courses taught through the Berlitz Virtual Classroom (BVC) will continue to be eligible through the Tuition Assistance program provided the approved courses are paid for and receipts issued in US dollars (and subject to the overriding provisions of Section 26.I.)

X. W. Ongoing Implementation Measures The parties recognize that the details involved in opening and operating foreign pilot bases are varied and fluid. Other measures facilitating the operation of the pilot bases in the EMEA and in HKG and supporting the pilots based there may be implemented if agreed upon in writing by the Vice President, Labor Relations Law and the Association’s MEC Chairman.

Y. X. Effective Date and Duration This LOA is effective on the date signed and shall remain in full force and effect concurrent with the Basic Agreement.

[SIGNATURE PAGE TO FOLLOW]

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Implementation of a Secondary Line Replacement System LOA (2015)

LETTER OF AGREEMENT between

FEDERAL EXPRESS CORPORATION and

THE AIR LINE PILOTS in the service of

FEDERAL EXPRESS CORPORATION as represented by

THE AIR LINE PILOTS ASSOCIATION, INTERNATIONAL Implementation of a Secondary Line Replacement System

This Letter of Agreement (hereinafter “LOA”) is made and entered into by and between FEDERAL EXPRESS CORPORATION (hereinafter referred to as the “Company”) and the pilots in the service of FEDERAL EXPRESS CORPORATION, as represented by the AIR LINE PILOTS ASSOCIATION, INTERNATIONAL (hereinafter referred to as the “Association”).

WHEREAS, the Company and the Association are parties to a collective bargaining agreement setting forth the rates of pay, rules, and working conditions for the Company’s pilots (hereinafter referred to as the “Basic Agreement”), effective on [DOS]; and

WHEREAS, the parties have agreed to replace the automation used to construct Secondary Lines with new automation (hereinafter referred to as the “Secondary Line Replacement”); and

WHEREAS, the SIG and the Company agree to work jointly (e.g., review of vendor requirement documents, and participation in vendor meetings and acceptance testing) to upgrade the current Secondary Line Generator automation prior to the Secondary Line Replacement described above; and

WHEREAS, the parties believe it is in their mutual best interest to establish a Secondary Line Replacement (SLR) Working Group (SLRWG) to develop the processes and procedures necessary to implement the SLR in a timely and efficient manner; and

WHEREAS, the parties also believe the SLRWG can provide oversight of the implementation of the SLR to ensure that it is developed in compliance with applicable provisions of the Basic Agreement, while also taking into account the parties’ mutual interest in appropriate fatigue risk management, enhancing pilots’ quality of life, efficient monthly schedule construction, operational integrity, and system reliability; and

WHEREAS, the parties desire to memorialize their agreements and understandings concerning the scope of the SLRWG’s duties and responsibilities during and after the Development and Implementation Periods (as defined below);

NOW, THEREFORE, the parties agree as follows:

A. Secondary Line Replacement Working Group. 1. The parties shall create a Secondary Line Replacement (SLR) Working Group (SLRWG),

which shall be comprised of the Company SIG representatives (or their designees), the Association SIG representatives (or their designees), and 2 additional

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representatives designated by the Company and 2 additional representatives designated by the Association. Additional Company and/or Association representatives may be designated by the parties as determined necessary by the agreement of the SLRWG. During the Implementation Period, SLRWG meetings shall consist of 4 members (2 representatives designated by the Company and 2 representatives designated by the Association).

2. The Company shall designate a Secondary Line Administrator, who shall be an ex officio member of the SLRWG. Subordinates of the Secondary Line Administrator may also attend SLRWG meetings, if their presence is deemed appropriate by the Secondary Line Administrator.

3. A representative of the SLR automation vendor shall be an ex officio member of the SLRWG.

4. The SLRWG will meet as required during the Development Period. During the Implementation Period, the SLRWG shall meet as it determines is necessary, but not less than monthly. During the Implementation Period, SLRWG meetings shall consist of 4 members (2 representatives designated by the Company and 2 representatives designated by the Association). Thereafter, the duties of the SLRWG shall be transitioned to the SIG.

5. Removal and compensation for the Association representatives on the SLRWG shall be handled as follows: a. Removal. Association representatives on the SLRWG shall be removed from flying

as provided in Section 25.BB.H.1.b. b. Compensation. The Association representatives on the SLRWG shall be

compensated by the Company 6 CHs for each day that they participate in SLRWG activities.

B. Duties of the SLR Working Group.

The SLRWG shall be responsible for the development, implementation, and initial oversight and administration of the SLR as set forth in this LOA. 1. During the Development Period, the SLRWG shall (in no particular order):

a. Evaluate potential SLR automation vendors and make recommendations to the Company regarding the selection of the SLR automation vendor;

b. Determine the business requirements for the SLR automation, in conjunction with the SLR automation vendor, which shall include such requirements as pilot interface, secondary line construction logic, secondary line construction parameters, reasons reporting/preferences analysis requirements, hardware/software requirements, database specifications, etc.;

c. Establish system acceptance and testing criteria, including beta, end-user, and parallel testing and validation;

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d. Develop the processes and procedures for identifying and resolving unforeseen or unanticipated secondary line construction anomalies and errors;

e. Design appropriate methods and means for training pilots in the use of the SLR (e.g., “train the trainer,” CBT modules, recurrent training curriculum, self-study, etc.), including recommendations concerning the timing and content of training provided to pilots by the Company;

f. Determine the processes and procedures for final acceptance of and transition to the SLR; and

g. Publish an initial SLR User Guide, which shall incorporate a complete description of the SLR operating system, including every schedule construction parameter, rule and procedure used in the operation of the SLR award logic.

2. During the Implementation Period, the SLRWG shall (in no particular order):

a. Monitor Secondary Line Construction; b. Audit and verify the accuracy of Secondary Line Construction results, including

the resolution of unforeseen or unanticipated bidding anomalies and errors; c. Oversee the Secondary Line Construction error resolution process; d. Review, modify, and update, as needed, training materials concerning the use of

the SLR; e. Review, modify, and update, as needed, the SLR User Guide; and f. Recommend desirable system enhancements, including evaluation of

new/replacement hardware, software, and/or vendor(s) to support such enhancements.

3. In carrying out these responsibilities, the SLRWG shall strive to reach consensus on all

decisions, determinations, and recommendations while also taking into account the parties’ mutual interest in appropriate fatigue risk management, enhancing pilots’ quality of life, efficient monthly schedule construction, operational integrity, and system reliability.

4. If the SLRWG is unable to reach consensus, the SLRWG shall meet with the System Chief Pilot (or his designee), who shall use his best efforts to broker a consensus among the members of the SLRWG. In the event consensus cannot then be reached, the matter will be referred to the Vice President, Flight Operations, who shall make a recommendation to the SLRWG, taking into account the views and opinions of all the members of the SLRWG on the appropriate resolution of the issue. If the Association representatives on the SLRWG disagree with the recommendation, the Association may appeal the matter to the Senior Vice President, Flight Operations who will render a final decision after meeting with the Association MEC Chairman or his designee.

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C. SLR Vendor Selection. The Company shall select an SLR automation vendor, based on the recommendations from the SLRWG. Once an SLR automation vendor is selected, the Company shall not change the SLR automation vendor without the consent of the Association.

D. Development and Implementation Periods. The Development Period shall commence upon implementation of the Company’s upgrade to its current Secondary Line Generator automation and shall continue until no later than 3 months after the final acceptance of and transition to the SLR. The Implementation Period shall commence upon the final acceptance of and transition to the SLR and shall continue for 12 months thereafter. Otherwise, the development and implementation timeline and procedures necessary to comply with the provisions of this LOA shall be established by agreement of the SLRWG.

E. Final Acceptance and Transition The MEC Chairman and the Vice President of Flight Operations must meet and agree on the final acceptance of the SLR prior to its implementation. In the absence of agreement, the SLR shall not be implemented.

F. On-Going Implementation Measures. The parties recognize that the issues associated with the implementation and subsequent operation of the SLR are varied and fluid. Other measures facilitating the implementation and subsequent operation of the SLR may be implemented if agreed upon in writing by the Vice President, Labor Relations Law and the Association’s MEC Chairman.

G. Effective Date and Duration This LOA is effective on the date signed and shall remain in full force and effect concurrent with the Basic Agreement.

[SIGNATURE BLOCK TO FOLLOW]

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Implementation LOA & Appendix (2015)

LETTER OF AGREEMENT Between

FEDERAL EXPRESS CORPORATION and

THE AIR LINE PILOTS in the service of

FEDERAL EXPRESS CORPORATION as represented by

THE AIR LINE PILOTS ASSOCIATION, INTERNATIONAL

IMPLEMENTATION AND TRANSITION 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 FEDERAL EXPRESS CORPORATION (hereinafter referred to as the “Company”) and the pilots in the service of FEDERAL EXPRESS CORPORATION, as represented by the AIR LINE PILOTS ASSOCIATION, INTERNATIONAL (hereinafter referred to as the “Association”). WHEREAS, the Company and the Association wish to provide for orderly implementation of the basic Agreement. NOW, THEREFORE, the Company and the Association agree as follows: The basic Agreement shall have a general effective date of November 2, 2015. The Association and the Company shall work together to develop necessary provisions for transitioning from the current work rules to the basic Agreement. Items described in the attached appendices, (i.e., General Implementation Appendix and Timeline, Automation Appendix), shall be implemented on the schedule set forth therein. This Letter of Agreement shall become effective when signed by both parties and shall remain in full force and effect concurrent with the basic Agreement or until amended or revoked by written agreement of the Company and the Association, or by operation of the Railway Labor Act, as amended. IN WITNESS WHEREOF, the parties hereto have signed this Letter of Agreement this __ day of _______, 2015. FOR THE COMPANY FOR THE ASSOCIATION

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General Implementation Appendix and Timeline

2015 FedEx Pilot Collective Bargaining Agreement

This appendix sets out the timeline upon which each of the already-identified changes in the Tentative Agreement will be implemented following ratification. Items which are specifically referenced in the contract as having a later implementation date are not repeated in this appendix and will be implemented on the date specified in the Agreement. In the main table, all dates indicate that the particular provision will be implemented not later than the date stated. In the programming sub-appendices for work rules, (Sections 4, 12, and 25), deadheading (Section 8), filling of vacancies (Section 24), and retirement and insurance (Sections 27 and 28), two dates are indicated – a target date, by which the Company intends to implement each particular change, and a delivery date, beyond which the Company would be in violation of the Agreement if it has not implemented the change. Under the letter of agreement entitled, “Implementation and Transition,” the parties may, by mutual agreement, alter the timelines set forth in this appendix to achieve a smooth transition into the new Agreement.

Section: Provision Implementation Date 1: Recognition, Successorship, and Scope DOS 2: Definitions DOS 3: Compensation DOS, except for ULR override. See Automation

Appendix. 4: Minimum Guarantees and Other Pay Provisions

See Automation Appendix

5: Traveling Expenses DOS 6: Relocation Expenses DOS. Relocation packages to which pilots

became entitled under postings that closed prior to DOS shall be handled under the provisions in effect at the time the posting closed.

7: Vacation DOS 8: Deadheads and Deviations See Automation Appendix 9: Miscellaneous Flying DOS, except for PDH (9.A.7., see automation

appendix). 9.E.6. (FTPA) is tied to Section 11.Q. (CIPPA).

10: Pilots Transferred to Management or Other Duties

DOS

11: Training See Automation Appendix (Pending) 12: Hours of Service See Automation Appendix 13: Leaves of Absence DOS, except as related to System Bids. See

Section 24. 14: Sick Leave DOS 15: Medical Standards DOS 16: Workers’ Compensation Benefits DOS 17: Prisoner of War or Hostage Benefits DOS 18: Witnesses and Representatives DOS 19: Investigation and Discipline DOS

602


20: Grievances: Administrative DOS 21: System Board of Adjustment DOS 22: Seniority DOS 23: Furlough and Recall DOS 24: Filling of Vacancies See Automation Appendix 25: Scheduling See Automation Appendix 26: General DOS, except for 26.B. (uniforms, see automation

appendix). 27: Insurance Benefits See Retirement and Insurance Appendix (to be

delivered) 28: Retirement See Retirement and Insurance Appendix (to be

delivered) 29: Union Security and Check-Off DOS 30: ALPA-PAC Check-Off DOS 31: Duration DOS

603


[Date] Captain Scott Larsen FedEx ALPA MEC Negotiating Committee Chairman 1770 Kirby Pkwy, Suite 300 Memphis, TN 38138 Dear Captain Larsen: Please find attached the proposed implementation schedule of the automation requirements of the new TA Sections 4, 8, 11, 12, 24, and 25. The secondary line enhancements (other than the post-View/Add window “refresh”) and eventual secondary line replacement system are not covered by this letter, as they are addressed in a separate Letter of Agreement included in the 2015 CBA.) The deliverables are divided into four phases and timelines are by bid period. Rows highlighted in green indicate provisions the Company can and will apply manually until programming is complete. All non-highlighted provisions require automation before they can be implemented. Lastly, while not an exhaustive list of all required changes, we believe this proposed schedule remains faithful to the parties’ efforts to note important features. We will work diligently to finish an exhaustive list of all required changes, with no deadline later than that associated with Phase 4 (except where otherwise specifically discussed via “TBD” discussions, e.g. SLR LOA, Section 24, etc.). I trust you will advise if you find a substantial matter unaccounted for here in this list. Phase 1 – Date of Signing: These items are primarily parameter changes that can be tested and implemented quickly. Additionally, pay rates, per diem, and international override are of course included. Phase 2 – March, 2016 (2/29/16): These are items that will require additional development and/or testing beyond the November, 2015 bid period. Therefore, due to corporate standards which prevent most moves to production during PEAK, implementation of these items will be scheduled for the first day of the March, 2016 bid period. Phase 3 – June, 2016 Target/September, 2016 Deadline: Items included in this phase require considerable development and testing effort, and coordination between many departments. Also, these items have a higher priority than those included in Phase 4. Phase 4 – November, 2016 Target/May, 2017 Deadline: Items included in this phase also require considerable development and testing effort, and coordination between many departments.

604


FOCUS is a SOX404 compliant system. As a result, we are obligated by regulation to follow GDP procedures as we make modifications. It also means that user testing is mandatory and documentation is required. The Company’s negotiating team asked for, and I believe we have received, an aggressive schedule for automation. If the Association would like to validate these timelines by discussion between ALPA’s automation experts and the programming experts that will be handling this transition, the Company is willing to arrange that contact. Very Truly Yours, FEDERAL EXPRESS CORPORATION John D. Maxwell Vice President, Labor Relations Law (901) 434-8596

605


Automation Appendix to 2015 Pilot Collective Bargaining Agreement

See attached Excel Spreadsheet, titled “Copy of CBA Implementation Worksheet 8-25-15”

606


CBAOrder Section Reference Summary Phase Project

1 CBA None Pilot Selection: Hard Copy of Contract DOS Miscellaneous

2 4 Defintions System Average Metric (SAM) Calculation 4 Miscellaneous3 4 4.E.2 Removal of Conversion Line Guarantee Bid Award

4 4 4.F.2.v Additional Cities Designated as Sort Facilities DOS Miscellaneous5 4 4.G.2 Carryover R-days into Secondary Line TBD Secondary Lines

6 4 4.G.3.b.ii.b Removal of Paragraph - Pay Calculation Chg 3 Pay

7 4 4.G.3.b.iii Non RSV Trips: Designate Carryover Hours TBD Secondary Lines

9 4 4.G.3.b.v RSV Trips: Designate Carryover Hours TBD Secondary Lines

10 4 4.H.2 Rday /Leveling Credit on 1st Day of Bid Period 2 Pay & Leveling

11 4 4.H.3 Credit both Leveling and RLG 2 Pay & Leveling

12 4 4.H.4.b Additon of 2 Hour Limit for R-2 Period 3 Pay

13 4 4.H.4.c Additon of '2 hours or less' for R-2 period 3 Pay

14 4 4.I.3.a Jury Duty: Credit RLG and Leveling 2 Pay & Leveling

15 4 4.I.4.a.i Recurrent Training Credit when Scheduled 2 Pay

16 4 4.I.4.a.ii Training Conflict drops entire R-Day Block TBD R-Day Block

17 4 4.I.4.b Sec Line Holder - Designate Rec Training Hours TBD Secondary Lines

18 4 4.I.4.d Distance Based Learning Credit Hours 3 Pay

19 4 4.I.5.b Sec Line Holder - ITU Partial Bid Month TBD Secondary Lines

20 4 4.I.5.e Bid Period Compensation when OE is complete 4 Pay

21 4 4.I.8.a Bereavement Leave: Credit RLG and Leveling 2 Pay & Leveling

22 4 4.I.9.a Training Support Pay 4 Base Simulator Support Event

23 4 4.N.1 PMU - OTP Pay Protection DOS Pay

24 4 4.P.2.b.i-ii Make-up - Removal Limits (1:30hrs to 3:00 hrs) 3 Pay

25 4 4.Q.1.a-b VOL,DRF,CMU - Removal Limits (1:30-3:00Hrs) 3 Pay

26 4 4.T Priority Non Premimum (PNP) 3 Priority Non-Premium

27 4 4.U.2 Taxi Pay 4 Pay

28 4 4.W Disruption Compensation via Paylog DOS Disruption Pay

29 4 4.W Disruption Compensation 4 Disruption Pay

30 4 4.W.1.d. New Disruption Pay Type: Crew Designation 4 Disruption Pay

31 4 4.W.1.e. New Disruption Pay Type: Out and Back 4 Disruption Pay

32 4 4.W.f New Disruption Pay Type: Single Layover 4 Disruption Pay

33 4 4.CC Only Capts Eligible for Weather Disruption Pay DOS Pay

34 4 4.EE.1.e GPE: 30in120 Nonconformance Penalty 4 Grid Penalty Events

35 4 4.EE.3.c,d GPE: Add 30in120 to multipe GPE rule 4 Grid Penalty Events

36 4 4.GG.2 Critical Period Departures: 1.5 CH 4 Pay - Critical Duty Period

37 4 4.GG.3 Pay 1.5 CH for each landing in excess of 2 4 Pay - Critical Duty Period

38 4 4.GG.4 Pay 1.5 CH for departing & landing in base.. 4 Pay - Critical Duty Period

39 4 4.GG.5 Pay 3 CH for flight in excess of 4:30 Block hrs 4 Pay - Critical Duty Period

40 4 4.HH Intermediate Stop Pay 4 Disruption Pay

41 5 5.B.7 Provide Cancellation Credit for hotel rooms 2 Services

42 5 5.E.1.a, b, d Catering DOS Services

43 8 Definitions Intercontinental Deadhead 3 Trip

44 8 8.A.3.a. Domestic Deadheads DOS Trip

45 8 8.A.3.b.v DH Limited to 22 consecutive hours on duty DOS Trip46 8 8.A.3.e.i.(a) Fly Window Limits Trip47 8 8.A.4.b Completion of F/O Bid Awards 2 Bid Award48 8 8.A.4.c Add Baseline/ Established fares to Trip display 2 Deviation49 8 8.A.5 Obtain the class of service from PiLOTS DOS Deviation50 8 8.A.5.b.iv,v Higher class of service: Int'l DH DOS Services51 8 8.C.1.a.iv Deviation Bank Charges 4 Deviation52 8 8.C.1.a.v Allow 2 active airline reservations 3 Services53 8 8.C.1.b Trip Trade restrictions after deviation Deviation54 8 8.C.1.c Initial Deviation Check in Window DOS Deviation55 8 8.C.1.d.i.a-c Final deviation Check In Deviation56 8 8.C.1.d.iv Final deviation Chk-In between Commercial flts Deviation (Discuss pre-auto app)57 8 8.C.1.d.v Pilot Contact Numbers 2 Pilot Contact Numbers58 8 8.C.1.f.i Priority Non-Premium (PNP) 3 Priority Non-Premium59 8 8.C.2.a.ii Deviation Bank Allowance(DBA) 3 Deviation60 8 8.C.2.b.i-ii Bank Credit for Baseline vs Established fare 3 Deviation61 8 8.C.2.c,d DH Banks: FrontEnd/BackEnd and Mid Trip 2 Deviation62 8 8.C.2.e Sick call on Deviating Trip: Partial Pay Pay63 8 8.C.2.h.i-vi New concept: HRC bank 2 Deviation64 8 8.C.2.h.iv Show HRC balance to pilot via VIPS 2 Deviation

CBA 2015 Implementation Worksheet

607


65 8 8.C.3.a.iii Expenses for seat selection fees 2 Expenses66 8 8.C.3.a.vi 130% allowance for upgrade 3 Expenses67 8 8.C.3.b.i.(a)(3) Reimbursement for Surface Transportation DOS Expenses68 8 8.C.3.b.ii Approval via PiLOTS required >$100 Expenses69 8 8.C.3.d.i,ii Non-Intercontinental /Intercontinental 3 Expenses70 8 8.C.3.d.iii Check into contract hotel early DOS Expenses71 8 8.C.3.f Change in allowed parking expenses 2 Expenses72 8 8.C.4.c Deadhead ticket fees 3 Expenses73 8 8.C.5.b Payroll deduction for excess expenses DOS Expenses74 12 12.A.3 View a Pilot's Applicable Duty Limits DOS Duty Limits75 12 12.A.5.b Limit of 4 Landings: duty period touches critical DOS Duty Limits76 12 12.A.8. a-b Extend Pilot:Chg Domestic & Int'I limits DOS Duty Limits77 12 12.A.9.a Fatigue: drop Rdays w/o pay, eligible for makeup 2 Reserves78 12 12.A.10.a-g FRMS trips will be flagged. VOL Asg Only Trip79 12 12.B.3.b.ii Base Hotel Stdby: Apply 4:30 hrs to Int'l Duty Limits80 12 12.B.3.d.iv Field Hotel Stdby : Apply 4:30 hrs to Int'l Duty Limits81 12 12.C.2.d.i-ii New rules: trip w/ no duty in Critical Duty Period 3 8 in 2482 12 12.C.4.e.ii. Duty Period w/ 2 Trips:Day/Night Duty limits 3 Duty Limits83 12 12.C.4.j NonBlend Duty:Chg Night Duty limits (parameter) DOS Duty Limits84 12 12.C.6.b.i-ii Exceeds 8 ABH in 24 hours. Two rest options 3 8 in 2484 12 12.D.1.c.ii Change in the latitude of the European Theater DOS European Theater86 12 12.D.1.c.ii.b Trip Revision: Operates inside & outside EU 4 European Theater87 12 12.D.1.g International Alert Calls: More cities - CRS Only DOS International Alert Calls88 12 12.D.1.g International Alert Calls: Expand Current Scope 4 International Alert Calls89 12 12.D.1.h New Enhanced Sleep Opportunity (ESO) Miscellaneous90 12 12.D.2.c Int'l Grid: Chg 3 to 4 non adjusted rests in a row DOS Trip91 12 12.D.2.g Layovers when crossing 5 time zones 2 Trip92 12 12.D.10.a.iii GPE:Change of 4 non-adjusted rests to 3. DOS Grid Penalty Events93 12 12.D.10.a.v Nonconform Penalty: Chg 34n168 to 30n120 DOS GPE: Non Conformance Penalty94 12 12.D.10.c.iii GPE violation: Change 34 in 168 to 30 in-120 DOS GPE: Non Conformance Penalty95 12 12.E Ultra Long Range Flying Miscellaneous96 Reserved97 13 13.D MLA: Uniformed Services >30 Days 2 Military Leave98 24 24 New System Bid Award Process 4 System Bidding99 24 24.A.4.a Reset Pilot System Bids 4 System Bidding100 24 24 Bidding for ITU Training including SDP ISDP 4 System Bidding101 25 Definitions Standing Monthly Secondary Line Preferences TBD Secondary Lines102 25 Definitions Default Secondary Line Preferences TBD Secondary Lines103 25 25.A.4 RDay Blocks Available in View Add Window TBD R-Day Block104 25 25.A.7.d Pilot's ablity to view the reserve forecast 2 Reserves105 25 25.B.1.o Bid Pack: List of Non-Consolidated Pilots DOS Bid Pack106 25 25.B.1,q Bid Pack: List of ITU Training Slots 4 System Bidding107 25 25.B.3 New Bid pack publication dates DOS VIPS calendar108 25 25.B.4 Add Sec lines if not enough lines exist Bid Award109 25 25.C.4 Change date/time when the bids are awarded DOS VIPS calendar110 25 25.C.5 Phase In Conflict: Drop trip w/ lowest CH value 2 Phase In Conflict111 25 25.C.10 Award Restrictions on Non-Consolidated Pilots Bid Award

Reserved113 25 25.C.12.f Rec Trn conflicts w/ Rdays, drop entire block TBD R-Day Block114 25 25.D.2.b Construct Secondary Lines in Seniority Order TBD Secondary Lines

115 25 25.D.2.d Sec line construction Include rday blocks BSSE TBD R-Day Block116 25 25.D.2.g Secondary Lines - Generation of PNP bank hours 3 Priority Non-Premium117 25 25.D.2.i Entry of Standing Monthly Sec Line Preferences TBD Secondary Lines

118 25 25.D.2.j Use of Default Standing Monthly Bid Preferences TBD Secondary Lines

119 25 25.D.2.k Additon of Secondary Working Window (SWW) TBD Secondary Lines

120 25 25.D.4 Eliminate Concept of Conversion Lines TBD Secondary Lines

121 25 25.E.4 Change the time of the View Add Window DOS VIPS Calendar122 25 25.E.4.a.ii-iii Allow entry of Rday Block Label and BSSE TBD R-Day Block123 25 25.E.4.b.i.1-4 Sec Line Holder designate number of vac days TBD Secondary Lines124 25 25.E.4.b.i.4 Vacation Extensions Limitations TBD Miscellaneous125 25 25.E.4.b.iii Sec Line Holder: Designate carryover CH TBD Secondary Lines126 25 25.E.4.b.iv Sec Line Holder: Designate rec training CH TBD Secondary Lines127 25 25.E.5 Implement Secondary Working Window TBD Secondary Lines

128 25 25.F.2 Conflict Resolution: Scheduled not Operational DOS Phase In Conflict129 25 25.F.3 C/O rdays takes precedence over new bid period 2 Phase In Conflict130 25 25.F.3.a Trip >120 TAFB CIC: drop 3day Rday block TBD R-Day Block

608


131 25 25.F.6 Vacation conflict with an Rday Block TBD R-Day Block132 25 25.G.2.a Need Writing Committee Direction DOS VIPS Calendar133 25 25.G.3.a Time change on the assignment window DOS VIPS Calendar134 25 25.G.3.b Open Time Assignment Priority Trip Assignment135 25 25.G.3.c Assign base airport standby's to reserves 2 Trip Assignment136 25 25.H.3.d Define when pilot not available during IAP Trip Assignment137 25 25.H.3.e.i Pilot Contact Numbers 2 Pilot Contact Numbers138 25 25.H.5.f Minimum Report Times DOS Reserves139 25 25.K.1.a Advance Reserve Assignment 2 Reserves140 25 25.K.1.d.ii BSSE Assignment: 'pass down' option 4 Base Simulator Support Event141 25 25.L.1.b Trades entered NLT 9 LBT day before 1st Rday DOS Trip Trades142 25 25.L.1.g. Trip Trade: Non-currency for Landings DOS Trip Trades143 25 25.L.1.i Trip Trade:Assignment codes restricted DOS Trip Trades144 25 25.L.1.j Allow PDO assignment outside base DOS Trip Assignment145 25 25.L.3.d Contingent Bid Line Adjustment 2 Trip Trades 146 25 25.L.5 Make Up Priority Non Premium Hours 3 Priority Non-Premium147 25 25.L.6.b.ii Make Up: No Critical Duty Limitation DOS Trip Trades148 25 25.L.6.b.iv Pilot Availabliity time based on RSV Rept Status Trip Assignment149 25 25.L.8 Similar Footprint Trades 2 Trip Trades 150 25 25.L.11.b.vi PDO activities won't remove new activities.. Trip Trades151 25 25.L.14 Can Proffer trips Can be picked up by other pilots 2 Trip Trades 152 25 25.L.15 Simulator Support events will be in open time 4 Base Simulator Support Event153 25 25.M.1.e Removal of Pilot from base sim support event 4 Base Simulator Support Event154 25 25.M.1.g Notification window for release to a legal rest 2 Reserves155 25 25.M.1.g.iii Limitation on the Notification Window requirements 2 Reserves156 25 25.M.2.c Insufficient lines at bid award: secondary lines Bid Award157 25 25.M.3.a.vii. New Automation: R24 Base Hotel Stby TBD Reserves158 25 25.M.3.a.iv New Automation: Notice of Assignment:BSSE 4 Base Simulator Support event159 25 25.M.3.b Assignment of Report Status rules DOS Reserves160 25 25.M.3.d.vii Changing reserve period generates disruption pay 4 Disruption Pay161 25 25.M.3.f.i-ii Assignment after a base sim support event 4 Base Simulator Support Event162 25 25.M.4 First Fly:Exclude BSSE & base standbys 4 Base Simulator Support Event163 25 25.M.6.a.i Reserve Assignment Rules 2 Reserves164 25 25.M.6.b.i Match availabillty with duration of assignment 2 Reserves165 25 25.M.6.d Reserve pilot can 'pass down' BSSE 4 Base Simulator Support Event166 25 25.M.6.f Exception: BSSE when removing pilot after show 4 Base Simulator Support Event167 25 25.M.6.h Rday Block Change: Disruption pay via Paylog 4 Disruption Pay168 25 25.M.6.h Rday Block Change: Generate disruption pay 4 Disruption Pay169 25 25.M.6.i Indicate days to allow rday block to extend 2 R-Day Block170 25 25.N.1.b New limitation VOL - no critical duty period DOS Trip Assignment171 25 25.S.2 Disruption Compensation Codes 2 Disruption Pay172 25 25.S.2.d.e.f. Disruption Pay 4 Disruption Pay173 25 25.U.2 Trip Bump: Hotel Deviation Expense Deviation174 25 25.X MLA: Language changes 2 Military Leave175 25 25.Y Pay Protection for Jury duty Pay176 25 25.V Extra Duty Period Automation 4 Miscellaneous177 25 25.BB.C.1.c.iv Bid Pack Publication Timeline DOS VIPS Calendar178 25 25.BB.D.1.j Specific trip revisions to be viewable by SIG Trip179 26 26.B.3 New Hire Uniforms 2 Expenses180 26 26.B.4 Uniform Replacements 2 Expenses181 26 26.B.8 Maternity Uniforms DOS Expenses182 26 26.M.3 Pilot removal for no passport Miscellaneous183 FDA B.3 FDA Personal Waiver 4 System Bidding184 FDA G.2.a Deferral of Training Date 4 System Bidding185 FDA K.2.c Deviation Bank for non Train Travel HKG-CAN DOS Deviation186 FDA L. Reimbursement: GT in Lieu of Airport Parking 2 Expenses187 FDA T Recurrent and ITU Training Deviation Travel 2 Expenses188 FDA FDA.V Local Telephone access PFC Webpage Update189 FDA B.4.d. Return Due to Family Visa Issue TBD Coordinate w/ Section 24190 FDA C.2.f.ii. Annual Home Visit Travel Calendar Year Basis 1Jan'16191 FDA C.2.f.iii. Air Travel Expense Bank 3 Linked to 8.C.2.b.192 FDA N.2.c. Max Duration FDA Assignment TBD Coordinate w/ Section 24193 FDA P. HKG Pilot "Make Your Own Vacancy" TBD Coordinate w/ Section 24194 FDA U. Deferral of New Hire Junior Activation Pay TBD Coordinate w/ Section 24

Misc 25.D.3. Reserve Block Construction/Distribution DOSMisc 25.L. Open Time Display - Ident Subm in queue. Trip Trades

609


200 No Automation Changes Needed

201 4 4.E.1.d BLG spread will not exceed 13 CH Manual Process202 4 4.G.3.b.iv.b Removal of Paragraph - Pay Calculation Chg Current Practice

203 4 4.I.5.d Pilot in ITU: credit CH flown, remaining C/O MKU Current Practice204 4 4.I.8.c.iii Bereavement:Pay remainder of trip guarantee Current Practice205 4 4.Q.7 Compensatory Makeup pay rate Current Practice206 4 4.S Pay rate change from $20 to $100 Payroll207 4 4.Y.1 New pay codes eligible for Extra Duty Period pay Manual Process208 4 4.EE.3.D Pay GPE on the 15th of the month Current Practice209 8 8.A.4.a.i-iii Publication of Baseline Fare Current Practice210 8 8.C.3.a.v.b Reimbursement for DH tickets Procedural211 12 12.A.9.g FERC deduct hours from pilot's sick bank Automation Already Exists212 12 12.C.3.b.iv Anchor Zone reset w/in trip requires SIG approval Procedural85 12 12.D.1.c.ii.a Non FDA pilot in EU schedule to domestic rules Current Practice213 25 25.H.6.a Accept/Reject Sub assignment Current Practice214 25 25.L.1.d Determination of Rday conflicts Current Practice215 25 25.M.3.a.vii Base Hotel Standby Assignment rules Procedural216 25 25.O.3 Accept/reject draft provided viewable in VIPS Current Practice217 26 26.M.1 Passport Notificationss Current Practice218 26 26.M.2 Pilot Entry of Pasports, Visas Current Practice219 26 26.AA KCM: Send pilot Names to A4A Current Practice220 FDA FDA.T.1 Training Deviation Travel Current Practice221 FDA FDA.V Local Telephone access PFC Webpage Update

2015

TA

Documents

2015 Between FEDERAL EXPRESS CORPORATION and THE AIR …fdx.alpa.org/portals/26/docs/2015_TA_Docs/FDX Tentative Agreemen… · Implementation LOA & Appendix (2015) ..... 600 Table