PBGC Policy Change

Technicians Update

May 17, 2021

Re: PBGC Policy Change

Dear Brothers and Sisters,

This email is for our Sub-UAL members who participated in the United Airlines Pension that was taken over by the PBGC in May of 2005. I talked with a PBGC representative yesterday and as of June 1, 2021, the long-standing requirement for the employee to terminate or separate their employment with United to start receiving early age retirement benefits will be eliminated. You will want to be aware of tax consequences and the effects of early age penalties on the benefit you will receive.

There is a lot of work going on at the PBGC including website redesign and messaging tools to manage this change. As such they expect a back log of requests and for some time, however they plan on paying the benefit retro to June 1st for those delayed by the process. The PBGC has agreed to keep us informed so we can pass the information on to you and we have shared the same with United Company Benefits/Pension representatives.

This is yet in its infancy so please allow the work that the PBGC is doing behind the scenes to materialize.

Fraternally,

Bob Clever
IBT Airline Division Benefits Coordinator

Technicians Update

Technicians Update

April 23, 2021

Re: Aviation Week Article on UA Outsourcing

Dear Brothers and Sisters,

Yesterday, along with many of you, we saw the article in Aviation Week regarding the awarding of MRO work to AAR in Illinois. To clarify, NO additional work is being contracted out to AAR. This awarding of work is simply work that AAR has historically performed in Miami and which will now be moved to AAR in Illinois.

We will continue to closely monitor the outsourcing of our work and if a violation occurs, we will aggressively defend this membership’s rights, whether through arbitration, litigation, or in the halls of Congress via the Cares Act.

In solidarity,

Vinny Graziano

National Coordinator, Airline Division

International Brotherhood of Teamsters

Technicians Update

Technicians Update
March 5, 2021
United 328

Brothers and Sisters,

Attached is the link to the latest update from the NTSB on the incident involving United 328.
https://www.ntsb.gov/investigations/Pages/DCA21FA085.aspx

 As a reminder; while this is public information from the NTSB, if you are approached by anyone asking for your opinion or views; you should not to make any statements or comments that could be misconstrued as an official position by you or the company. Additionally; you should not make any statements or comments on any social media platforms.

We will continue to keep you updated as information becomes available.

 
In Solidarity,

 
Chris Moore
International Representative, Airline Division
International Brotherhood of Teamsters

Re: UAL Technicians Dispatch Update #2- UA 328- February 23, 2021

Technicians Update

February 23, 2021

UA328 Update

Brothers and Sisters,

We know that many of you have questions regarding UA 328. The IBT has been granted party status to the investigation and therefore cannot share any of the details. For those of you interested in following the UA328 investigation we are sending you this link to the NTSB investigation page. This link will allow you to get the most up to date information on the investigation. It is a public page and contains information, pictures, and videos that the NTSB has approved for distribution.

Currently the Teamsters Airline Division has UAL members participating on the following working groups; Structures, Powerplant, Materials and Records.

DCA21LA085 (ntsb.gov)

Finally, if you are approached by anyone from the media advise them that per the work rules you are not permitted to speak with them regarding UAL or the incident. Refer them to either UAL or the NTSB.

Fraternally,

Chris Moore

International Representative, Airline Division

HRA/RHA VEBA

Dear Brothers and Sisters,

In the 2016 agreement the Health Reimbursement Account (HRA) and Retiree Health Account (RHA) Plans VEBA trust, 74-2099724, was established (see article 16G). In reviewing the HRA/RHA VEBA Trust, I found that interest was not distributed to the employees from the trust but was held in it. Working with the company and our actuaries we agreed on a methodology to use to distribute these funds. Over the next month you will see adjustments made to your account.  

Fraternally,

Ken Meidinger
International Representative-Airline Division
UAL Benefits Coordinator

UAL Technicians Dispatch Update - UA 328- February 22, 2021

 UA 328 UPDATE

 Brothers and Sisters,

On Saturday, February 20 United Airlines Flight 328 suffered an uncontained engine failure while departing Denver International Airport (DEN). The aircraft returned to DEN and landed safely, there were no injuries to passengers or crew. This is the third PW 4000 engine failure of this type in recent years and it is being investigated by the National Transportation Safety Board (NTSB). The IBT Airline Division requested and has been granted “Party Status” to the investigation by the NTSB. We have assigned a party coordinator and have members working with the NTSB on the Structures and Powerplant groups.

Due to the nature of the Party Status Agreement with the NTSB we cannot share details of the investigation, but we can provide you with general updates on the progress of the investigation. As part of the investigation, the NTSB is the only entity that can release its details to the public and will do so through press briefings. Below is a link to an article driven by an NTSB briefing. 

FAA orders emergency PW4000 inspections as airlines ground 777s | News | Flight Global

The IBT Airline Division provides “Go Team” training for our local unions and represented airlines on an annual basis. We hope never to have to use it but are prepared when these types of events occur. We are proud that our Go Team training has put us in a position to respond to this accident and assist the NTSB with their investigation.

Fraternally,

Vinny Graziano
Coordinator Technician and Related
Airline Division
International Brotherhood of Teamsters

Mechanics' Dispatch -- Career Moves

Technicians Update

December 14, 2020

Career Moves

Dear Brothers and Sisters,

As many of you know, there have been grievances filed over the one-time career move utilization during a RIF. We have been working with the Company to remedy this situation. We are happy to report that individuals that have been RIFed can now use the career move if they are planning on staying at their new location. This information was relayed on the town-hall call on Friday night.  

No one ever wants to be affected by a furlough, but in these difficult times, this contract provision will provide a better economic outcome for those going through this.

In Solidarity,

Vinny Graziano
Coordinator Technician and Related
Airline Division
International Brotherhood of Teamsters 

Industry Reset -- Technician's Update

Technicians Update
November 20, 2020
Industry Reset


Dear Brothers and Sisters,

It is time again for the application of the Industry Reset as set out in LOA #29. The good news for this year's measurement is that the TWU-IAM Alliance at American was able to achieve a rich package of wages and benefits that was used in the model to determine our outcome.

I can report today that the model worked as designed and each of you will be getting a 7.06% increase above the 1% Basic Hourly Rate in Appendix A of Article 15. The additional increase at the top of scale Technician rate is approximately $2.94/hour.

I would like to thank our economist Dan Akins and Actuary Peter Hardcastle for their work ensuring that the formula was applied correctly. You should see the increase in pay shortly. During these difficult times it is certainly welcome news that the Reset worked exactly as intended to make sure this group never falls behind the industry.


In Solidarity,


Vinny Graziano
International Representative
Airline Division
International Brotherhood of Teamsters

Mechanics' Dispatch — WARN Notices

Mechanics Update

July 7, 2020

WARN Notices

Dear Brothers and Sisters,

Please click on the link below to download and read a letter regarding the pending WARN notices that will be issued by United.

https://teamsterair.org/sites/default/files/uploads/warn_ltr-_7.6.2020.pdf

In Solidarity,

Vinny Graziano

Mechanics Dispatch - Special Update -- March 25, 2020

SPECIAL UPDATE
March 25th, 2020

COVID-19 Fatality in Newark 

Brothers and Sisters, 

It was confirmed that Brother Carlos Consuegra from the IAM passed away yesterday from complications of COVID-19. Our deepest sympathies go out to his family and friends. 

My recommendations to those that worked near him, or with anyone else that has tested positive, are as follows. If you had direct contact within the last 14 days, please self-quarantine. If you are feeling ill, please self-quarantine. If you have an underlying condition such as diabetes, asthma, or heart disease please self-quarantine.  

Now is not the time to be a hero and report to work sick. Infecting others and potentially spreading this disease will kill our more compromised members. 

If you have no sick time left, we'll try to help you out when this situation is contained. There are also services that can help through EAP. To be clear however, it is better to take off a few days with no pay than to die or potentially kill others.

Sincerely, 

Vincent Graziano
Airline Division Representative
International Brotherhood of Teamsters

UAL Mechanics Dispatch SPECIAL - March 20, 2020

Special Update
March 20, 2020

Dear United Airlines Brothers and Sisters,

Recently an email from a mechanic in Newark was disseminated system wide that gave an inaccurate overall picture of what has been transpiring. This situation is changing rapidly. I want to be clear; the most accurate and concise updates will come in the form of the Mechanics Dispatch to all members. 

While the airline industry bailout is starting to take shape, no one can predict what the final package will entail. With the current cash burn each airline is experiencing right now, most of them will need assistance just to survive. As in each legislative matter affecting airline employees, the IBT is continuing to lobby on your behalf for this relief. A joint Labor/Management letter was sent to Secretary of Treasury Steven Mnuchin, House of Representatives Speaker Pelosi, Minority Leader McCarthy, Senate Majority Leader McConnell and Senate Minority Leader Schumer outlining the dire need of such action.

The company approached all the Unions on the property about what they believed was necessary for survival. One of the key requests was a 50% reduction in payroll liabilities. To be clear, that does not mean a 50% reduction in employees pay. Other means of reducing payroll include, cutting out all overtime, not backfilling current open positions, accelerating retirements and offering flexible leaves. We requested economic data from the company before so there is a clear understanding of what the company actually needs. Please remember that it has been made clear that we are not willing to entertain such a request while federal bailouts loom. No change to the economic terms and conditions of the CBA can be made without a membership vote. Our position with the company is that any relief agreed upon would only be temporary in nature and that relief would be returned to the members in full. In other words, we are not willing to agree to any permanent changes to the agreement and 50% is an unreasonable request and will not be entertained.

In the worst case scenario bankruptcy does not mean the CARP pension plan automatically disappears. There are current funding level requirements to maintain the “Lump Sum” option. What would possibly be in jeopardy is the continued infusion of money by the company to maintain the plan above those levels. If the funding levels dip below the requirements that would trigger a change in our benefit options and the overall health of the plan. At this moment however the company is working on surviving without entering bankruptcy. As stated above that could change and you need to be aware of the possibility.

This situation is extremely fluid; changing daily and sometimes, hourly. The Administration has been discussing suspending domestic air travel for a period of time. That hasn't happened yet, but it is a possibility. If it does happen it will make a dire situation worse and will increase pressure for a bailout. 

Updates will continue through the Dispatch as this situation unfolds. Don't fall victim to rumors or speculation. Reach out to your respective Business Agents for updates they will be able to help you.

In conclusion the best thing we can do is provide the same great service as we do every day for United Airlines. This is critical; take care of each other. If you're ill don't come to work. If your coworker is sick, call and check on them. Through generations we are defined by how well we face adversity such as this. All of us will come out of this much stronger and closer than ever before and we will do it together. 

In Unity,

Vincent Graziano
Local 210, Business Agent
IBT National Coordinator, Airline Division

Mechanics' Dispatch -- March 16, 2020

Special Update

March 16, 2020

Brothers and Sisters,

Last evening, (March 15th)  the company held a conference call with leaders of each union. The outlook has degraded considerably over the last couple of days and looks to continue to get worse for months to come. 

The company laid out their plan for officer and management compensation and asked that we all share in helping the company through this unprecedented rough period. However, many of us have been through tough times in the airline industry. The nature of the industry has always been cyclical. Recession, terrorist attacks and disease are always waiting around the corner. 

At this time, to even enter discussions designed to ensure the company's survival, there must be commitments made that any sacrifice will be repaid when this pandemic passes. Until there are such commitments, we are not prepared to discuss amendments to the collective bargaining agreement.  

In Solidarity,

Vincent Graziano
Local 210, Business Agent
IBT National Coordinator, Airline Division

Mechanics Dispatch - Special - March 13, 2020

Special Update
March 13, 2020

Brothers and Sisters,

Today after discussions with the company, I was able to achieve an agreement that no one affected by COVID-19 virus will be disciplined for using their sick leave. In addition, that company will also work with you if you are the sole caregiver as a result of a school closure due to the COVID-19 virus. 

If you are taking time to quarantine or recover and discipline is issued, reach out to your Stewards or Business Agents and we will hold the company to their agreement. 

Please use common sense and don't come to work with flu like symptoms. 

Vincent Graziano
Local 210, Business Agent
IBT National Coordinator, Airline Division

Mechanics Dispatch - Special Update - March 12, 2020

Special Update
March 12, 2020

Brothers and Sisters,

Yesterday the Airline Division leadership met with Oscar Munoz and his team in Washington D.C. to discuss the ongoing crisis surrounding the COVID-19 pandemic. To say the situation is dire is an understatement. With that said, the company is doing everything in its power to avoid layoffs.

To help understand the economic situation, the company held an investor call on Tuesday, which was attended by the Airline Division. The company believes a worst case projection is for a 70% reduction in revenue over a two-month period that would gradually decrease to a 20% reduction by December. For those that have been through other industry crises there is at least some good news. The company starts with a healthy balance sheet, and they are making decisions quickly to end discretionary spending.  

During the meeting with Oscar there was no discussion regarding relief from the CBA. The only thing requested was ideas for how to weather the storm. We brought forward the idea to temporarily bring outsourced work back in house to keep the membership busy with work that would need to be accomplished regardless of a reduced schedule. In addition, we are still trying to work with the Company to amend their Company offered Leave of absence so it reflects the Collective Bargaining Agreement. Let me reiterate, the Airline Division did not participate in the construction of the leave and will continue to ensure that the company institutes leaves of this nature in accordance with the agreement. 

As the meeting was wrapped there was a joint commitment to discuss additional ideas to help keep our members employed.

Last night, after our meeting with Oscar, the Administration took the extraordinary measure of shutting down travel to Europe for thirty days. This action will most likely impact the company's broader decisions regarding spending and employment. 

As with other crises in the past, no one can predict how long the coronavirus will impact travel demand, but the chances of the virus tipping our economy into a longer-term recession are much greater now. The industry and the economy will recover from this event, but it will take time.

To end on a better note, while we don't know the duration of this crisis, all airlines are projecting that recovery will take place sometime in 2021 meaning it will eventually subside and there will be a return to normal. For now, take the precautions laid out by the CDC and keep yourself safe. 

We will continue to meet with the Company to develop solutions to mitigate any impact on our members. This is an unprecedented crisis for our industry and we will update you as this situation unfolds.

Vincent Graziano
Local 210, Business Agent
IBT National Coordinator, Airline Division

Mechanics Dispatch - March 6, 2020

Technicians Update
Special
March 6, 2020

Dear Brothers and Sisters, 

The corona virus is spreading rapidly around the world which is having a serious negative effect on air travel. We don't yet know the extent of this industry shock, but we will continue to monitor the situation.

In the meantime, our safety department has shared recommendations from the CDC to protect yourself as best as possible. If you haven't seen the information, it is available at:
https://teamster.org/sites/default/files/coronavirus_flier.pdf 

As for job security, while no layoffs are seen near term, the company is offering voluntary leaves of absence in order to try to mitigate unforeseen losses due to the coronavirus. Let me reassure you that all of your contractual guarantees remain in place and will be protected. 

The company has invited labor leaders to participate in ongoing, twice weekly calls to discuss the impacts of the virus. We have accepted the invitation and will be participating in those calls. 

If anything changes regarding the above, we will inform you as soon as possible.  

Please watch for symptoms and stay home if you are sick. We are prepared to defend anyone that makes the very rational choice of staying home as opposed to spreading this disease. 

In Solidarity,

Vincent Graziano
Airline Maintenance Coordinator
Airline Division
International Brotherhood of Teamsters

Mechanics Dispatch - January 30, 2020

Brothers and Sisters,

Following the recent outbreak of respiratory illness caused by the coronavirus that originated in Wuhan, Hubei Province, China in December 2019, your union is working closely with the IBT Safety and Health Department and the UAL Safety Department to ensure the safety of all Teamster members who work with the traveling public and provide cleaning or maintenance on aircraft. For now, our recommendation is that you take the same basic precautions you would when cleaning or working in the interior of aircraft that you would normally take: wash and disinfect your hands frequently, use protective gloves whenever there is a possibility of coming in contact with infectious agents and use surgical masks to cover your nose and mouth if you believe it is necessary. United Airlines will be posting updates on the Flying Together Tech-Ops Home Page as they become available. We will post updates on the Teamster Airline Division as they become available.

As OSHA has noted, “There is much more to learn about the transmissibility, severity, and other features associated with 2019-nCoV as the outbreak investigation continues[1].”

At this writing the Coronavirus (2019-nCoV) is a biosafety level two (BSL-2) virus. Employers and workers should consult interim guidance[2] from the CDC specific to 2019-nCoV, along with existing resources for other coronaviruses like Middle East Respiratory Syndrome (MERS) for precautions appropriate for this similar virus. You should also be aware that level three guidance has been issued for travel to China.

OSHA’s National Office,[3] State OSHA Plans and state and local health departments have current info about the virus as well.

Quick Facts

Coronaviruses are part of a large family of viruses that circulate in animals and occasionally cross species and infect humans. Human coronaviruses commonly cause mild to moderate illness in people worldwide. Two newer examples of coronaviruses include ‘Severe Acute Respiratory Syndrome’ (SARS-CoV) and ‘Middle East Respiratory Syndrome’ (MERS=CoV).

Without sustained human-to-human transmission, most American workers are not at significant risk of infection. However, workers involved in airline operations (including cabin crewmembers), healthcare (including clinical laboratory personnel), and border protection may have exposure to travelers infected with the virus in China or other affected areas.

[4]

• Five cases of the coronavirus infection in the U.S. have been confirmed in the U.S. have been confirmed in Arizona, California, Washington and Illinois.

• The 2019-nCoV can cause pneumonia, which may be severe.

• Signs and symptoms of infection include fever, cough, and shortness of breath. People infected with the virus may have these, as well as other symptoms.

Hazard Control and Prevention 

Per OSHA and CDC, all workers who may be exposed:

• Frequently wash your hands with soap and water for at least 20 seconds.

• Avoid touching your eyes, nose, or mouth with unwashed hands.

• Avoid close contact with people who are sick.

• Stay home when you are sick. 

• Cover your cough or sneeze with a tissue, then throw the tissue in the trash.

• Use the proper disinfectant that is approved for use on the aircraft or ground facilities and follow the directions as most disinfectants require a dwell time on the surfaces to be effective prior to wiping off.

• Existing OSHA standards[1] apply to protecting workers from 2019 novel coronavirus (2019-nCoV).

In addition to the above, please read any bulletins or notifications your employer has issued about the Coronavirus. 

REFERENCES:

[1] https://www.osha.gov/SLTC/novel_coronavirus/index.html

[2] https://www.cdc.gov/coronavirus/2019-ncov/index.html

[3] https://www.osha.gov/SLTC/novel_coronavirus/index.html

[4] https://www.osha.gov/SLTC/novel_coronavirus/index.html

[5] https://www.osha.gov/SLTC/novel_coronavirus/standards.html

Mechanics Dispatch - December 10, 2019

This time of year brings out all kinds of emotions that can be difficult to process. Family get-togethers, perhaps the loss of a close family member and this being the first holiday without them, maybe you or a family member realizes their drinking is out of control – all these things cause stress around the holidays. This is why the Teamsters’ Member Assistance Program (TMAP) representatives are here to help you and your family.

What is TMAP? The Teamsters offer a free, confidential program designed to help members and their families identify and resolve personal problems or concerns. Our trained TMAP peer coordinators are union members helping union members. We all have ups and downs, it’s not always easy deciding when to ask for help. Your TMAP Coordinator will respectfully listen to your problem and assist you in developing a plan of action that will meet your needs. If necessary, you will be referred to a qualified service provider in your community. The TMAP Coordinator will also follow up with you to ensure that you are both getting the help you need and are satisfied with the referral. How do you know if you really do have a problem? Ask yourself these questions:

• Do I think about a problem frequently, or am I always worried about the same thing?

• Am I telling myself the problem “isn’t that bad and will just go away,” although it doesn’t?

• Do I feel tired, depressed, frustrated, angry or sick?

• Is my job performance or dependability being affected?

• Do I feel like giving up?

What Kind of Problems Can the Teamsters’ Member Assistance Program Help With? Depression and/or anxiety, debt management, grief and loss, alcohol and drug dependency, gambling dependency, relationship problems, divorce, stress related to parenting, domestic violence, elder care and trauma reactions are a few of the issues TMAP can help with.

Is the Union’s TMAP Really Confidential? Yes, the program is highly confidential. We will not discuss your problem with anyone without your written consent. The only limits by law are the intent to harm yourself, harm others, child abuse and/or elder abuse.

What Will It Cost? TMAP services are free. Your TMAP representative will work with you to make effective use of your health insurance benefits and community resources.

What is the Next Step? To get started, call or visit a Teamsters TMAP Representative to begin the process. TMAP is voluntary, so you need to take the first step. A TMAP Representative can help you determine whether you need to take action.

Remember, it’s better to deal with the problem before it becomes overwhelming.

Your TMAP Representatives are:

CALEB GOOD
Chairman, Eastern Region Coordinator
ATL BOS CLE EWR IAD LGA ORD PHL
(630) 485-0227

MIKE BROOKS
Central Region Coordinator
DEN FLL TPA PHX MCO
(303) 335-6540

STEVE LOONE
Western Region Coordinator
GUM HNL LAS LAX KOA LIH OGG PDX SAN SEA SFO SNA
(650) 745-5864

STEVE CRUMMEY
Western Region Coordinator
GUM HNL LAS LAX KOA LIH OGG PDX SAN SEA SFO SNA
(650) 745-5867

DOMINIC FIERO
Southern Region Coordinator
IAH HOU AUS DFW MSY
(832) 443-6599

Sincerely,

Ken Meidinger
International Representative-Airline Division
UAL Benefits Coordinator

Mechanics Dispatch - October 7, 2019

SFO Teamsters:

Be on the lookout for the Aflac reps for the next couple of weeks. Contact your shop stewards for more info.

---

BENEFIT UPDATE

Dear Members:

As many of you are aware the Airline Division has built a mutually beneficial relationship with Aflac Insurance in this last few years and this relationship has helped our membership with affordable coverage for their families that offers whole life, accident, critical illness and short-term disability coverage. We are pleased to announce that as a result of the Airline Division and AFLAC we have added a Hospital Indemnity Program (HIP) as part of this program which will be available starting January 1, 2020.

The hospital indemnity policy will pay you cash for any hospitalization with at least one overnight stay, including those related to workers’ compensation claims. You will have a choice of two plans, a high or low option based upon the medical plan you have, so that you can select a plan you can comfortably afford.

The HIP will have guarantee issue, including:

• no exclusions for pre-existing conditions (including pregnancy);

• guaranteed issue coverage for all family members, including children up to age 26;

• a policy that is fully portable when you leave United Airlines

I am also pleased to announce that because of the relationship we have built with Aflac all four of the current policies rates will remain unchanged through 2022. This is your union working for you and giving you choices of coverage that meet you and your family's individual needs.

The Airline Division will continue explore different areas of volunteer benefits that meet the members’ needs at a reasonable cost.

Open enrollment

With open enrollment right around the corner, October 7th-27th  for employees and October 28th -November 8th for retirees, it is important that you are aware of changes to your benefit choices. The Company flyer is in the mail or you have already received it.

If you have vision coverage this year and you do not actively enroll, you will be automatically enrolled into one of the new plans as shown below:

IMPORTANT UPDATES FOR HEALTHY REWARDS PPO PARTICIPANTS:

$4,800 cap on hopw much you can accumulate in your HRA goes into effect January 1, 2020 - be sure your HRA balance is below $4,800 so you don't miss out on wellness incentive dollars from United Airlines.

As announced during last year’s Annual Enrollment, starting on January 1, 2020, there will be a limit on how much you can accumulate in your Health Reimbursement Account (HRA) — $4,800.

If you participate in the Healthy Rewards PPO plan, you can earn wellness incentive dollars from United in the form of an HRA contribution when you complete your annual physical prior to the end of the year. HRA funds carry over year after year, as long as you remain enrolled in the Healthy Rewards PPO plan.

However, beginning on January 1, 2020, the amount that you can accumulate in the Healthy Rewards HRA will be capped at $4,800. If your HRA balance is at or above the $4,800 cap on January 1, 2020, you will not be eligible to earn your wellness dollars from United for 2020 (even if you complete your physical by year‑end). Eligibility for the wellness incentive will be determined in December for the upcoming incentive year.

In order to earn the full incentive amount from United in 2020, you will need to ensure you have completed your annual physical and your HRA balance is at or below the following amount by December 31, 2019:

The Healthy Rewards Program, HRA, should not be confused with the Health Reimbursement account, VEBA HRA. These are two separate programs with no relationship to each other. There is no cap on the VEBA

Fraternally,

Ken Meidinger
International Representative
Airline Division
UAL Benefits Coordinator

Look for this new coverage the next time the Aflac team visits your station in 2020. For more information, click here or contact Ken Meidinger at kenmeidinger@aol.com.

Mechanics Dispatch - October 1, 2019

The IBT Airline Division has built a mutually beneficial relationship with Aflac Insurance. This relationship has helped our membership with affordable coverage that offers whole life, accident, critical illness and short-term disability coverage. We are pleased to announce that we have added a Hospital Indemnity Program (HIP). This program will be available starting January 1, 2020.

The hospital indemnity policy will pay you cash for any hospitalization with at least one overnight stay, including those related to workers’ compensation claims. You will have a choice of two plans, a high or low option based upon the medical plan you have, so that you can select a plan you can comfortably afford.

The HIP will have guarantee issue, including:

• no exclusions for pre-existing conditions (including pregnancy);

• guaranteed issue coverage for all family members, including children up to age 26;

• a policy that is fully portable when you leave United Airlines, and

• benefits paid that are never treated as taxable income.

I am also pleased to announce that because of the relationship we have built with Aflac all four of the current policies rates will remain unchanged through 2022. This is your union working for you and giving you choices of coverage that meets you and your family's individual needs. 

Look for this new coverage the next time the Aflac team visits your station in 2020. For more information, click here or contact Ken Meidinger at kenmeidinger@aol.com.

Mechanics Dispatch — December 13, 2018

Dear Members,

LOA #29 – Industry Reset, the first update of the Reset Cost Model has just been performed, comparing updated pay and other economic items for technicians at United Airlines, Delta Airlines and American Airlines. Financial and actuarial analysts from both the IBT and United Airlines recently met to review data, update the cost model and to calculate a new relative value. The updated output from the cost model indicates that the overall value of United Airlines technician’s contract items remains well above the two percent minimum advantage over Delta and American, as required in LOA #29. As shown below, the cost model analysis indicates that the overall value of United Technician’s selected contract items is 7.7 Percent above the average value of those items at Delta and American.

This result is not surprising considering two main factors affecting the updated valuation:

• No significant change for American Airlines’ technicians since 2016, and

• A material increase in United technicians’ retirement benefit costs.

While there have been some significant improvements in Delta technicians’ pay and profit-sharing since 2016, the value of these improvements was undermined by the stagnant value of the technicians contract at American Airlines, where they have not yet reached a new Joint Collective Bargaining Agreement (JCBA). In addition, the relative value of the United technicians’ contract has increased due to a large increase in the valuation of the defined benefit plan, CARP, which now includes UA technicians. The improvements in United technicians’ retirement plan and pay rates combined with the lack of progress at American have resulted in the value of United technicians’ contract items to remain well above the minimum two percent threshold compared to Delta and American (as required in LOA #29). Therefore, no pay increase is due from the first round of the reset analysis that was performed in December of 2018.

However, the Reset Cost Model would have determined that a 1.4 percent pay increase was due to United technicians if technicians at American Airlines (and former US Airways) were able to reach a JCBA in the past two years that contained improvements equivalent to those in the United JCBA. These would include a base pay increase, A&P license pay, line pay, VEBA, vacation hours, medical cost sharing, retirement pay and profit sharing. If American technicians agree to a JCBA over the next two years, in addition to reaching wages and other improvements that are equivalent to or better than those contained in the current UA JCBA, the reset evaluation in 2020 will most likely provide an improvement to United technician pay rates.

The data, methodology and results of the 2018 reset evaluation were calculated, evaluated and assessed by IBT’s external financial analyst Dan Akins and by IBT’s external actuary, Peter Hardcastle. The data, methodology and results of the 2018 reset evaluation have been deemed to be reasonable and accurate. The large increase in the cost of United’s retirement plan was reviewed by Mr. Hardcastle, who states the following:

“I met with United's external actuary to discuss the methodology and assumptions behind the calculation of the cost of CARP. The methodology used by United's actuary considers the market value of the accruals and is consistent with U.S. accounting standards. The cost is based solely on the population of United mechanics and only relates to the cost of benefit accruals for the year. I am in agreement with the methodology used, and I know from experience that the results lie within the range of my expectations. The increase in United's service cost for CARP since 2016, as applied in the cost model, is consistent with my expectation given the increase in benefit population due to the inclusion of the larger and more senior UA Mechanics group, as well as a further drop in the discount rate since 2016.”

Both Mr. Akins and Mr. Hardcastle agree that the relative value of the items as calculated by the cost model indicate a 7.7 percent relative advantage of the United technicians’ contract items compared to the average value of those same items at Delta and American. The next update of the cost model will be undertaken in early December of 2020, when the then current values of the five contract items will be recalculated and assessed.

In Solidarity,

Vinny Graziano