Collective Bargaining Agreement
2005-2010
2008 Early Out Questions and Answers
- Who is eligible for the Early Out Program, and how many will be awarded?
Both active Flight Attendants and Flight Attendants on leaves of absence are eligible to bid on the Early Out Program. You must be at least age 45 with 15 years of service as of 8/1/2008. Early Out packages will only be awarded to 600 Flight Attendants, based on system seniority.
- Are the years of service counted as Company or Flight Attendant Years of service?
You must have completed 15 years of Flight Attendant service.
- Is the severance pay based on Company or Flight Attendant seniority?
The severance is also based on completed Flight Attendant years of service.
- When will bids open, close and be awarded?
Bids will open Monday, June 9th at 0800 Central Time and they will close Monday, July 7th at 0800 Central Time. Awards will be announced by Tuesday, July 15th at 1730 Central Time.
- How can I submit a bid?
Bids may be submitted in two ways:
- Unimatic via DIS*48805 - Early Out Display Page
- Fax an Early Out bid sheet to the Flight Attendant Service Center.
- May I rescind my bid?
Yes, you may rescind your bid. The Unimatic page DIS*48805 will have a way to retract your bid. If you do not have access to Unimatic, re-fax your form to the Service Center and indicate you want to retract your bid. In either case make sure you follow the process and retain a receipt that confirms your bid is rescinded. The last bid on file will be used for the award.
- If I am awarded the Early Out what is my last day of employment?
The last day of employment is July 31, 2008.
- If I am awarded the Early Out when will my payments start?
The severance payments will be divided and paid out in 12 monthly installments beginning January 2009. Payments will be made on or about the first business day of the month.
- How will I receive my severance check and accrued vacation pay?
The payment will be received in a check mailed to your home.
- Will the payments be taxed?
Yes, taxes and withholding will apply to the monthly severance payments.
- If I am based in an International domicile will I be protected by the floor exchange rates outlined in our Contract on page 302?
No, the floor exchange rates are utilized for Flight Attendant compensation purposes and are not applicable to the early out payments.
- May I apply for unemployment?
The Company has stated they will contest unemployment claims.
- What is the current retiree pass policy?
Passes are unlimited and include other travel programs such as United Express, Retiree Interline Travel, Companion Travel, Discount 20 Positive Space Travel and Emergency Travel on United. Your boarding priority is based on your years of service. Review the United “Travel Summary” document
for full details.
Eligible dependents include:
- spouse or qualified domestic partner,
- financially dependent unmarried children, stepchildren and approved “other” dependents under the age of 25;
- approved disabled children regardless of age;
- parents.
- When may I start using my retiree travel passes?
August 1, 2008.
- If I am eligible for retirement may I retire and be awarded the Early Out Package?
You may retire, with passes and retiree medical, and be awarded the Early Out with the severance pay only if you are 55 and have at least 15 years of service.
Please note: Retirement eligibility has not changed. Flight Attendants may still choose to retire with 10 years of company service and 55 years of age. The qualification of 15 years of Flight Attendant service is specific to the Early Out Program.
- If I’m 55 with 15 years of service and leave as part of the Early Out Program will I be able to delay my pension payment from the PBGC until I am 60?
Yes, since the PBGC has taken over and is administering our retirement plan, you communicate directly with the PBGC. You decide, perhaps with the assistance of a financial consultant, when to notify them to begin payments.
- Was there any consideration of medical benefits for this program?
The Company would only entertain a program that was not cash negative in the short term. Medical benefits would add considerable cost, however, if you are eligible for retirement and the Early Out Program you would be able to receive retiree medical as outlined in our Contract Section 33.A.3.v. on page 212.
If you are not eligible for retirement you may chose to continue medical for eighteen (18) months if you make COBRA payments (full cost of the insurance plus administrative fee).
- Will I receive the value of my vacation?
Yes, you will receive the value of any unused vacation for 2008 and accrued vacation for 2009 per our Contract Section 18.J. on page 144.
Return to 2008 Early Out Letter of Agreement
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