UPS(Compensation comparison)

UALTrade ya some apples for some of your

oranges…For those who've asked…. That’s a joke :-)

REVISED 09-14-02

Originally posted 12-08-01

This is NOT to be misconstrued as an attempt to attack, smear or demoralize any individual or group at UPS or the IPA. Contract data is publicly available to all of us. I have just collated

it to make it easily digestible.

It is not intended to divide our group but strengthen it.

Please note:

Bar graphs and pie charts usually have tabulated data that follow.

(In other words… click ahead if you are confused or want more

specific data.)

Prior to “9-11”, what could a less profitable company like UAL afford to pay their less flexible pilot group?

End of contract CPT HOURLY ratesAmendable dates: UPS 12-31-03 vs. UAL 09-01-04

$130$150$170$190$210$230$250$270

UPS CPT UAL 767 CPT

UAL pays 39% to 85% more thanmore than UPS’ HOURLY rates.

CAPTAIN HOURLY RATES(END of contract)

Years ofService

UPSCaptain12-31-03

UnitedB-76709-01-04

UnitedB-72709-01-04

% INCREASEneeded to attainUAL B767 Pay.(UPS + “%” = UAL)

2nd yr3rd yr4th yr

131.69/hr136.83147.67

243.79/hr245.72247.67

219.69/hr221.57223.47

+ 85.12%+ 79.58+ 67.71

5th yr6th yr7th yr

154.09159.22164.36

249.63251.48253.15

225.47227.29229.16

+ 62.00+ 57.94+ 54.02

8th yr9th yr

10th yr

169.50175.92183.62

255.28256.96259.62

231.08232.83235.45

+ 50.60+ 46.06+ 41.39

11th yr12th yr

185.00190.00/hr

262.41264.87/hr

238.07240.67/hr

+ 41.84+ 39.40%

How it affects Captain pay.YEARLY Base Pay (End of contract)

$120,000

$140,000

$160,000

$180,000

$200,000

$220,000

$240,000

UPS Captain UAL 767 Captain

30% difference between 12th and 2nd year HOURLY rates at UPS.

CAPTAIN HOURLY RATES(END of contract)

Years ofService

UPSCaptain12-31-03

UnitedB-76709-01-04

UnitedB-72709-01-04

2nd yr3rd yr4th yr

131.69/hr136.83147.67

243.79/hr245.72247.67

219.69/hr221.57223.47

5th yr6th yr7th yr

154.09159.22164.36

249.63251.48253.15

225.47227.29229.16

8th yr9th yr

10th yr

169.50175.92183.62

255.28256.96259.62

231.08232.83235.45

11th yr12th yr

185.00190.00/hr

262.41264.87/hr

238.07240.67/hr

% spread12th to 2nd 30.69% 7.96% 8.72%

Roughly…..At UPS, 12th year minus 30% equals

2nd year CPT HOURLY rate.

$190.00-30.69%

=$131.69

8% difference between 12th and 2nd year HOURLY rates at UAL.

CAPTAIN HOURLY RATES(END of contract)

Years ofService

UPSCaptain12-31-03

UnitedB-76709-01-04

UnitedB-72709-01-04

2nd yr3rd yr4th yr

131.69/hr136.83147.67

243.79/hr245.72247.67

219.69/hr221.57223.47

5th yr6th yr7th yr

154.09159.22164.36

249.63251.48253.15

225.47227.29229.16

8th yr9th yr

10th yr

169.50175.92183.62

255.28256.96259.62

231.08232.83235.45

11th yr12th yr

185.00190.00/hr

262.41264.87/hr

238.07240.67/hr

% spread12th to 2nd 30.69% 7.96% 8.72%

Roughly…..At UAL, 12th year minus 8% equals

2nd year CPT HOURLY rate.

$264.87-7.96%

=$243.79

How does that affect you or me?

Well, if you’re an FO...

How it affects FO pay.YEARLY Base Pay (End of contract)

$70,000$80,000$90,000

$100,000$110,000$120,000$130,000$140,000$150,000$160,000$170,000

UPS FO UAL 767 FO

3rd year UAL 767 FO exceeds our 12th year FO…base

UPSFO12-31-03

UnitedB767 FO09-01-04

UnitedB-727 FO09-01-04

2nd yr3rd yr4th yr

74,471K/yr 80,047 89,271

91,494K/yr132,687140,652

82,449K/yr119,646126,909

5th yr6th yr7th yr

94,653 99,353104,160

143,901147,573151,164

129,969133,380136,845

8th yr9th yr

10th yr

109,074114,923119,955

155,079156,564158,769

140,382141,867143,991

11th yr12th yr

120,852124,118K/yr

161,082162,819K/yr

146,133147,942K/yr

4th year UAL 727 FO exceeds our 12th year FO…base

UPSFO12-31-03

UnitedB767 FO09-01-04

UnitedB-727 FO09-01-04

2nd yr3rd yr4th yr

74,471K/yr 80,047 89,271

91,494K/yr132,687140,652

82,449K/yr119,646126,909

5th yr6th yr7th yr

94,653 99,353104,160

143,901147,573151,164

129,969133,380136,845

8th yr9th yr

10th yr

109,074114,923119,955

155,079156,564158,769

140,382141,867143,991

11th yr12th yr

120,852124,118K/yr

161,082162,819K/yr

146,133147,942K/yr

It takes a UPS FO 7 years to attain a

“six figure” BASE salary -vs- UAL’s 3 years.UPSFO12-31-03

UnitedB767 FO09-01-04

UnitedB-727 FO09-01-04

% INCREASEneeded to attain UAL

767 Yearly base.(UPS + “%”= UAL)

2nd yr3rd yr4th yr

74,471K/yr 80,047 89,271

91,494K/yr132,687140,652

82,449K/yr119,646126,909

+22.85%+65.76+57.55

5th yr6th yr7th yr

94,653 99,353104,160

143,901147,573151,164

129,969133,380136,845

+52.03+48.53+45.12

8th yr9th yr

10th yr

109,074114,923119,955

155,079156,564158,769

140,382141,867143,991

+42.17+35.36+32.35

11th yr12th yr

120,852124,118K/yr

161,082162,819K/yr

146,133147,942K/yr

+33.28+31.18%

UAL pays 22% to 65% more thanmore than UPS’ Base Salary.UPSFO12-31-03

UnitedB767 FO09-01-04

UnitedB-727 FO09-01-04

% INCREASEneeded to attain UAL

767 Yearly base.(UPS + “%”= UAL)

2nd yr3rd yr4th yr

74,471K/yr 80,047 89,271

91,494K/yr132,687140,652

82,449K/yr119,646126,909

+22.85%+65.76+57.55

5th yr6th yr7th yr

94,653 99,353104,160

143,901147,573151,164

129,969133,380136,845

+52.03+48.53+45.12

8th yr9th yr

10th yr

109,074114,923119,955

155,079156,564158,769

140,382141,867143,991

+42.17+35.36+32.35

11th yr12th yr

120,852124,118K/yr

161,082162,819K/yr

146,133147,942K/yr

+33.28+31.18%

“What If…”

“What If scenario…” If we only had an 8 % difference from the

12th year CPT to the 2nd year 767 CPT HOURLY rates, like at most major airlines, FO pay at UPS

would resemble this... BTW at UAL, the percentages used against CPT hourly rates to produce FO hourly

rates are similar to ours.

2nd year we get more - 3rd year we break even - 4th year & on we make 1% less.

Current FO HOURLY rate -vs-

“What If” 8% scenario

70

80

90

100

110

120

130

UPS now ups "WHAT IF"

Using today's 12th year CPT rate --7/13/02 to 12/31/03--

Current FO HOURLY rate -vs-

“What If” 8% scenarioUPS FO

07/13/02 to12/31/03

UPS FO“What If”scenario

1yr xx.xx xx.xx2yr 76.38/hr 101.41/hr3yr 82.10 105.824yr 91.56 110.295yr 97.08 113.026yr 101.90 115.787yr 106.83 118.588yr 111.87 121.409yr 117.87 124.2610yr 123.03 125.2611yr 123.95 126.2912yr 127.30/hr 127.30/hr

Current FO YEARLY BASE -vs-

“What If” 8% scenario

70,000

80,000

90,000

100,000

110,000

120,000

130,000

UPS now ups "WHAT IF"

If you are an FO, you could have made “X %” more under the “What If” scenario.

UPS FO12/30/00 to07/12/02

UPS FO“What If”scenario

Percentage MOREyou could have made.Current + % = “What If ”

2yr 74,471 K/yr 98,874 K/yr 32.763yr 80,047 103,174 28.894yr 89,271 107,532 20.455yr 94,653 110,194 16.416yr 99,353 112,885 13.627yr 104,160 115,615 10.988yr 109,074 118,365 8.519yr 114,923 121,153 5.4110yr 119,955 122,128 1.8111yr 120,852 123,132 1.8812yr 124,118 K/yr 124,118 K/yr 0.0

The old saying…

“our 727 guys make more than the other 727 guys in the

industry…”

doesn’t hold water anymore.

727 Captain HOURLY Rates End of Contract dates: UPS 12-31-03 -vs- UAL 09-01-04

$120$140$160$180$200$220$240$260$280

UPS CPT UAL 767 CPT UAL 727 CPT

Captain YEARLY Base Pay.End of Contract

$120,000

$140,000

$160,000

$180,000

$200,000

$220,000

$240,000

UPS CPT UAL 767 CPT UAL 727 CPT

Captain YEARLY Base Pay.End of ContractUPSCPT12-31-03

UnitedB76709-01-04

UnitedB-72709-01-04

2nd yr3rd yr4th yr

128,398K/yr133,409143,978

219,411K/yr221,148222,903

197,721K/yr199,413201,123

5th yr6th yr7th yr

150,238155,240160,251

224,667226,332227,835

202,923204,561206,244

8th yr9th yr

10th yr

165,263171,522179,030

229,752231,264233,658

207,972209,547211,905

11th yr12th yr

180,375185,250K/yr

236,169238,383K/yr

214,263216,603K/yr

% spread12th to 2nd 30.69% 7.96% 8.72%

A 2nd year UAL B-727 CPT made more than our 12th year CPT (End of Contract)

UPSCPT12-31-03

UnitedB76709-01-04

UnitedB-72709-01-04

2nd yr3rd yr4th yr

128,398K/yr133,409143,978

219,411K/yr221,148222,903

197,721K/yr199,413201,123

5th yr6th yr7th yr

150,238155,240160,251

224,667226,332227,835

202,923204,561206,244

8th yr9th yr

10th yr

165,263171,522179,030

229,752231,264233,658

207,972209,547211,905

11th yr12th yr

180,375185,250K/yr

236,169238,383K/yr

214,263216,603K/yr

% spread12th to 2nd 30.69% 7.96% 8.72%

If you wanted to look at it from another angle...

Captain YEARLY Base Pay (END of Contract)

How much more UAL makes per YEAR. CAPTAIN YEARLY BASE(END of Contract)

UPSCA12-31-03

UnitedB76709-01-04

UnitedB-72709-01-04

% INCREASE neededto attain UAL B767

YEARLY Base.

(UPS + “%”=UAL)

2nd yr3rd yr4th yr

128,398K/yr133,409143,978

219,411K/yr221,148222,903

197,721K/yr199,413201,123

+ 70.88%+ 65.76+ 54.81

5th yr6th yr7th yr

150,238155,240160,251

224,667226,332227,835

202,923204,561206,244

+ 49.54+ 45.79+ 42.17

8th yr9th yr

10th yr

165,263171,522179,030

229,752231,264233,658

207,972209,547211,905

+ 39.00+ 34.83+ 30.51

11th yr12th yr

180,375185,250K/yr

236,169238,383K/yr

214,263216,603K/yr

+ 30.93+ 28.67%

What does the yearly MIN guarantee look like for other airplanes at UAL?

DIFFERENTIAL

PAY

What does the 737 (the least paid) or 727

FO seat pay?

• Even though we don’t have differential pay, let’s subscribe to the differential pay variable for the sake of discussion.

Should we…? Maybe. The issue appears unresolved.

– Excerpt from the “Guide to the IPA Negotiation Team” (page 3 -- bullet 3)• “[We’ll come to an] Agreement on a methodology of comparing our pay

with that of the other major airlines.”

– Arguments have been made that if you were at UAL/etc:

• “You’d have to be there more years to reach their top pay” and that

• “We make more here than there without differential pay.”

– We’ve also heard that ALL of us are being paid 767 pay.

FO HOURLY RatesEnd of Contract

$80

$100

$120

$140

$160

$180

3rd year 6th year 12th year

UPS FO UAL 737 UAL 727 UAL 767

Whoa cowboy!

IF we’re going to discuss variable pay, we shouldn’t forget

the “top end” guys.

If we do not include them, then the company is the ONLY one to benefit from our discussion.

Do you think it’s a valid argument when half of the equation is discarded?

Do you think we should look at the whole package or

should we concentrate on 767 pay alone?

The other half of the equation...

• MD-11’s (UAL’s DC-10F)

• 747-Classics

• AND since the company wanted a 747-400 clause in the TA….

Yep, 747-400 rates. (Only fair if they want to explore -400 IRO options.)

FOFO HOURLY Rates End of Contract

$80$100$120$140$160$180$200$220$240

3rd year 6th year 12th year

UPS FO UAL DC-10F UAL 747 UAL 74-400

What about Captains?

End of Contract CPT HOURLY Rates

$150$180$210$240$270$300$330$360

6TH YR 12TH YR

UPS CPT UAL 737 UAL 727

UAL 767 UAL DC-10F UAL 747

UAL 74-40012th year Hourly Rates

UPS = $190.00, UAL 737= $226.58, UAL 727= $240.67, UAL 767= $264.87, UAL DC-10-F= $314.56, UAL 747-Classic= $326.45, UAL 747-400= $355.82

If it was hard to read the fine print, here are those 12th year CPT rates again.

12th yr Hourly Rates

• UPS = $190.UPS = $190.0000

• UAL 737 = $226.58

• UAL 727 = $240.67

• UAL 767 = $264.UAL 767 = $264.8787

• UAL DC-10-F = $314.56

• UAL 747Classic = $326.45

• UAL 747-400= $355.82

What about Second Officers?

They draw a smaller percentage of the CPT’s hourly rate in comparison to an FO.

But the high hourly rates take care of that...

SO Hourly RateEnd of Contract

$60$80

$100$120$140$160$180$200

3rd year 6th year 12th year

UPS SO UAL 727 UAL DC 10UAL DC-10-F UAL 747 Classic

SO MIN YearlyYearly GuaranteeEnd of Contract

$60,000$80,000

$100,000$120,000$140,000$160,000$180,000

3rd year 6th year 12th year

UPS SO UAL 727

UAL DC 10 UAL DC-10-F

UAL 747 Classic

Additional Night Time Override/Incentive HOURLY Rate• Captain…..$15.00/hr

• First Officer…..$10.00/hr

• Second Officer…….$5.00/hr

• Flights between 2300 and 0659 Domicile time (Section 3, pgh. 3-B-7-a through 3-B-7-a-(3), pg. 107. )

Additional Night Time Override/Incentive HOURLY Rate

• Captain…..$15.00/hr

• First Officer…..$10.00/hr

• Second Officer…….$5.00/hr

• Flights between 2300 and 0659 Domicile time (Section 3, pgh. 3-B-7-a through 3-B-7-a-(3), pg. 107. )

If you are going to run the engine hotter and under more strenuous conditions, shouldn’t you consider the toll it takes on it.

Once your engine falls apart, you’re done.

Almost finished…A couple of slides still in development….

(please continue forward)

If you wanted to do extra math...

*PLEASE NOTE*

• The B-727 numbers reflect the 18 airplanes to be parked as per the company’s Realignment Bid 01-105.

• The number of airplanes used for pie charts and other slides are based from the “tail numbers” data given in our bid packets. (747 bid 0201, pg. 17)

• yadda yadda yadda

UPS fleet composition

4151

105

3

21

18B-727

DC-8

B-757/767

A-300

MD-11

B-747

UPS fleet composition by percentage

17%

44%

21%

8%

9%

1%

B-727

DC-8

B-757/767

A-300

MD-11

B-747

Comparing airplanesusing weights...

• UPS

• B-727• DC-8• B-757/767• A-300• B-747• MD-11

• UAL

• B-727• Close to757/767• B-757/767• Close to757/767• B-747• DC-10F

END OF CONTRACT UAL HOURLY

12th year rates per AC type

• B-727………. $240.67/hr

• B-757/767…. $264.87

• DC-10-F…… $314.56

• B-747-200.... $326.45/hr

For those of you who like averages...

The next slide looks at the percentage each AC represents in the total fleet at UPS. It then multiplies that percentage to a specific UAL HOURLY rate for an AC that is similar

in weight.

I.e...The 21 B-747’s at UPS represent 9% of our total fleet. 9% of UAL’s B-747 HOURLY rate is

twenty-nine dollars and thirty-eight cents.

$326.45x 9%

= $29.3805

Add up the sum of for each AC type and you get an AVERAGE HOURLY rate.

Average HOURLY rate.

Based on UAL’s 12th year End of Contract ratesmultiplied by

aircraft type….(its percentage at UPS)(Work from the bottom up.)

17% of

B-727$240.67/hr

21% of

DC-8$264.87/hr

44% of

B-757/767$264.87/hr

8% of

A-300$264.87/hr

1% of

M D-11$314.56/hr

9% of

B-747$326.45/hr

Average 12th year HO URLY rate$266.80/hr

Oh…and don’t forget the Night Time Override/Incentive pay.

266.80+ 15.00$281.80

What’s our bottom line versus the other airlines?

“Just the facts ma’am...”

Did you know that UPS’ NET Profit for the year 2000 exceeded that

of UAL, DAL, AAL and NWA combined?combined?

2000UAL

+ 271 Million

NWA+

290 Million

DAL+

897 Million

AMR 752 Million

= 2 .210 B illion

UPS 2 .795 B illion

When United, Delta and American/etc were profitable, they paid their crewmembers

“Top Wages.”

At this time, they are still paying them the same

“Top Wages”/HOURLY Rates.

That may not last, but we are notnot in the same financial position.

********* NOTE *********

UAL voting on concessionaire contract.

How did UPS stack up against some of those top

paying carriers?The following slides are based upon data compiled from UPS’ website, http://moneycentral.MSN.com

and The Value Line (available at your local library).

UPS, UAL, DAL and FDX Revenue ($Billions)

$11.0

$13.0

$15.0

$17.0

$19.0

$21.0

$23.0

$25.0

$27.0

$29.0

1997 1998 1999 2000

UPSUALDALFDX

UPS, UAL, DAL and FDXOperating Profit Margins

7.0%8.0%9.0%

10.0%11.0%12.0%13.0%14.0%15.0%16.0%17.0%18.0%19.0%20.0%

1997 1998 1999 2000

UPSUALDALFDX

UPS, UAL, DAL and FDXNET Profit Margins

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

1997 1998 1999 2000

UPSUALDALFDX

Bottom line… What is our bottom line?

UPS, UAL, DAL and FDXNET Profit ($Billions)(UPS has been in the Billions since 1998)

$0.10

$0.40

$0.70

$1.00

$1.30

$1.60

$1.90

$2.20

$2.50

$2.80

1997 1998 1999 2000

UPSUALDALFDX

2001 Net Profit or Loss.

First three quarters of 2001 atUPS, UAL, DAL and FDX

NET Profit or (Loss) ($Billions)

($2.00)

($1.50)

($1.00)

($0.50)

$0.00

$0.50

$1.00

$1.50

$2.00

UPS

UAL

DAL

FDX

UPS, UAL and DAL Reference: The Value Line

(Note: I added the “B” for Billions. ie. In 1997 at UPS, REV = 22.458 Billion)

UPS1997 1998 1999 2000

$ 22,458 B 24,788 B 27,052 B 29,771 B Revenues ($ Million)12.3% 17.0 19.0 19.9 Operating Profit Margins (%)

4.0% 7.0 8.6 9.4 NET Profit Margins (%)$ 909 1,741B 2,332 B 2,795 B Net Profit ($ Million)

UAL1997 1998 1999 2000

$ 17,378 B 17,561 B 18,027 B 19,352 B Revenues ($ Million)17.1% 17.7 11.9 8.0 Operating Profit Margins (%)

4.2% 4.7 4.3 1.4 NET Profit Margins (%)$ 728 827 775 271 Net Profit ($ Million)

DAL1997 1998 1999 2000

$ 13,590 B 14,138 B 14,711 B 16,741 B Revenues ($ Million)16.5% 18.1 19.2 17.5 Operating Profit Margins (%)

6.3% 7.1 7.5 5.4 NET Profit Margins (%)$ 854 1,001 B 1,101B 897 Net Profit ($ Million)

Results for 2001(Estimates for 2002 and 2003) atUPS, UAL, DAL, FDX & AMRNET Profit or (Loss) ($Billions)

($2.00)

($1.50)

($1.00)

($0.50)

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

2001 TTL 2002 EST 2003 EST

UPSUALDALFDXAMR

Data obtained via “The Value Line”. Available in your local libraries for free.

**NOTE** ESTIMATES were made in the 1st quarter & are just that…estimates.

$ 2.950

Do you think

HOURLY pay parity

and or

an 8% spread

(from 12th year to 2nd year CPT HOURLY rates)

seem fair or unfair for a profitable airline with a flexible work force like

us?

What is fair and equitable under the current conditions/profits?

It’s your call...

• Do you think your hour of work is worth less than theirs?

• Are you content knowing that it’ll take you more hours of credit to achieve the same or even less pay?

• I’m just providing BASE-LINE

contractual data with NO variables.

• Again, UAL is ONLY the 2nd best paid airline.– UAL is also in worse financial position than AAL, NWA and the

#1 paying airline, DAL.

• If UAL figures appear too daunting, we could always compare ourselves to the 4th, 5th, or 6th best paid airlines & or use concessionaire rates.

Oh wait…that’s on the next several slides. :-)

Again, it’s Your call…..

• The following three slides rank airlines by hourly rate ALONE.

It does NOT take into account pay period/ MIN guarantees.

Therefore, other than for UAL & DAL, hourly rate alone does not always mean a greater pay period.

• UPS has the highest --yearly-- min guarantee in the industry. – Up to 200 hours more in one case.

• UPS also has the highest yearly Max credit pay model.

– E.g. Open Time (Up to 348 hours more in another example.)

• The US Airways’ rate on next slide is the pre-concessionaire rate. The reduction is shown a few slides later.

767 or Equivalent AC 2004 Hourly Rates (Before USAir concessions)

CAPTAINS3rd year rate 6th year rate 12th year rate

Ranking1st Delta Delta Delta2 UAL UAL UAL4 US Airways US Airways US Airways4 NWA (757only) NWA(757 only) NWA(757 only)5 FDX (Wide Body ) AAL AAL6 AAL FDX (Wide Body ) FDX (Wide Body )7 DHL(DC8/A300) DHL(DC8/A300) DHL(DC8/A300)8 UPS UPS UPS

FIRST OFFICERS3rd year rate 6th year rate 12th year rate

Rank1st Delta Delta Delta2 UAL UAL UAL3 US Airways USAirways US Airways4 NWA (757only) NWA (757only) NWA (757only)5 FDX (Wide Body ) FDX (Wide Body ) FDX (Wide Body )6 AAL AAL AAL7 DHL(DC8/A300) DHL(DC8/A300) DHL(DC8/A300)8 UPS UPS UPS

I would like to thank those pilots at the carriers listed who helped me attain data.

What about concessions?

• US Airways is the ONLY airline to make concessions thus far.

• UAL is voting on a reduction with snap backs, stock options & reserve work rule improvements.

(As it stands, the real poison is the scope & grievance concessions.)

• NWA has extended their contract with no reduction in hourly rate

ConcessionaireConcessionaire 767 Ranking(Possible UAL reduction included)

CAPTAINS Concessionaire Rates3rd year rate 6th year rate 12th year rate

Ranking1st Delta Delta Delta2 UAL UAL UAL4 NWA (757only) NWA (757only) NWA (757only)4 FDX (Wide Body ) AAL AAL5 AAL FDX (Wide Body ) FDX (Wide Body )6 US Airways US Airways DHL(DC8/A300)7 DHL(DC8/A300) DHL(DC8/A300) UPS8 UPS UPS US Airways

FIRST OFFICERS Concessionaire Rates3rd year rate 6th year rate 12th year rate

Rank1st Delta Delta Delta2 UAL UAL UAL3 NWA (757only) NWA (757only) NWA (757only)4 FDX (Wide Body ) FDX (Wide Body ) FDX (Wide Body )5 AAL AAL AAL6 DHL(DC8/A300) DHL(DC8/A300) DHL(DC8/A300)7 US Airways US Airways US Airways8 UPS UPS UPS

I would like to thank those pilots at the carriers listed who helped me attain data.

For those that do not believe in educating themselves today…

think about this.

The industry average of renegotiating a contract is 2-years

after it’s amendable date.

We start our “early” negotiations roughly two-months shy of 2003...

UPS amendable date: 2003

Avg.2-yrs to renegotiate: +2

Hypothetical new contract: 2005

The industry average contract is 3-years long.

Hypothetical new contract: 2005

Industry average contract: +3

Hypothetical amendable date:2008

After you sign up for the new deal, you find out that it’s not exactly what you expected.

How long will it take to renegotiate changes?

Let’s say it takes another 2-years to renegotiate that contract.

Hypothetical amendable date: 2008

Avg. 2-yrs to renegotiate: +2

Hypothetical new contract: 2010

Hypothetically, it could be 2010 before we can fix anything we did not educate ourselves about

today.

Do you think we owe it to our families and ourselves to do the

homework?

Again, something to think about…..

Hypothetically, 2010may be the first chanceof seeing changes to any

misunderstandingsresultant from

misinformation or lackof education today.

Amendable date: 2003

2-yrs to renegotiate: +2

2005

Industry average: +3

Amendable date: 2008

2-yrs to renegotiate: +2

2010

• This is only one piece to the puzzle.

• The attention and priority it receives is up to you.

• As they say, one man’s trash is another man’s treasure.

• Also note that almost all the passenger airlines are having financial woes regardless of what their hourly rates are.

IMHO, contracts like UAL’s & DAL’s are a good example of what IMHO, contracts like UAL’s & DAL’s are a good example of what can be achieved when the financial health of the company is can be achieved when the financial health of the company is strong and the group is focused and motivatedstrong and the group is focused and motivated.

With the financial strength of UPS and the uncertainty of the passenger airlines, IPA members have been afforded a unique opportunity to negotiate an industry-leading contract.

This group, like those who’ve forged the path before us will have to decide the road we choose. We have before us three roads to choose from. One that would lead to what parity would have been if the countries’ recession, 9-11 and other factors (not pay related) had not degraded the passenger flying industry’s profit. Another that would raise the bar one step further and lastly a mediocre one that reaches for parity based on concessions.

Let wisdom be our strength and unity our spirit.

Again, this comparison is not intended Again, this comparison is not intended to divide our group but strengthen it.to divide our group but strengthen it.

Author’s final thoughts...Author’s final thoughts...

I recommend reading the Expanded Work Rules in conjunction with the use of the interactive Software to get a better grasp on what UAL pilots have to do to earn their money.

Interactive SoftwareCompare your SKD to UAL’s base-line provisions (The worst-case scenarios for pilots.) Answer YES/NO questions and know quickly if your flight is illegal and why. Power Point and Adobe Acrobat Expanded WORK RULES comparison

Word Doc and Adobe AcrobatOVERVIEW of base pay and work rules (Printer friendly). UAL Section & page references are included on several summary pages.

Under Construction & Coming Soon…Retirement, Scope, & Medical Benefits comparisons w/UAL & others.

For the above BASE-LINE comparisons, please visit: http://IPAontop.org NO passwords required.NO union money was used to produce this site or the presentations.

For those who want variables…Information I could not attain prior to posting & am

still working on.

* 757/767 Specific757/767 Specific *• Avg. 12th year 757//767 CPT & FO pre-taxed wages

• Avg. 12th year 757/767 CPT & FO days off per year

• Avg. seniority of a 12th year 757/767 CPT & FO

* Overall non-fleet specificOverall non-fleet specific *• Avg. 12th year CPT & FO pre-taxed wages

• Avg. 12th year CPT & FO days off per year

• Avg. overall seniority of a 12th year CPT & FO

Hours of Service (Work Rules) will be visited next time…..

Our flexibility pays big dividends to UPS.

PLEASE let me know if there are ANY errors. Thanks!