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Voluntary Furlough Update

As a result of changes to United’s projected Flight Attendant needs over the next few years, the Company will adjust and reallocate the voluntary furlough periods that are currently in effect. As defined in Section 21.A.4.a. of the Agreement, this will require the Company to conduct a complete furlough rebid. United anticipates that the number of Flight Attendants to be furloughed during the rebid will be at minimum equal to the number (around 4900) currently on voluntary furlough status. All current voluntary furloughs will end on Aug. 31, 2003. If you do not wish to remain on voluntary furlough, you do not have to participate in this rebid.

The new furlough will run in increments of 7, 14, 19, 26, 31, and 43 month periods, with a start date of Aug. 31, 2003. The maximum allocation for each of these periods will be determined once the total number of Flight Attendant retirements is known, on or about July 3, 2003.

Section 21.A.3. of the Collective Bargaining Agreement provides that those on voluntary furlough will accrue seniority and maintain the same medical and on line travel benefits as active employees. The voluntary furlough bid period will open July 3, 2003, and close at 1700 CDT July 23, 2003. Voluntary furloughs will be awarded July 25, 2003, by 1700 CDT. United will provide a revised voluntary furlough information packet, which will be available on our website, in the domiciles and on SkyNet.

Items to Consider

• On July 1, 2003, Flight Attendants with PPO medical and traditional dental insurance (including those on voluntary furlough) will be responsible for 10% of the Company premium for medical and dental insurance, and these medical and dental contributions will increase as follows:

The Flight Attendant medical contributions are based on the medical premiums the Company must pay for each employee or family. These contributions cannot be based on more than a 7% increase to the Company’s medical premiums per year.

• Once awarded, hardship requests for return to work will not be considered based on the Flight Attendant contribution to the cost of these benefits.
• The years used in a multiplier for retirement is based on “participation” (which begins after the first year of service with United) not “service.” Participation means the total number of calendar months during which a Flight Attendant accrues a benefit under the plan. There must be earnings to receive credit for participation. Time spent on furlough will not be counted, as there is no “participation” in the plan.
• Voluntary furloughed Flight Attendants will no longer be allowed to attend training during the course of the furlough due to government regulations requiring Flight Attendants to hand in their ID badge. It’s important to note that before returning from different furlough durations, Flight Attendants may be required to complete different emergency and service training programs. Currently, Flight Attendants are required to attend initial Flight Attendant training after a leave from flying in excess of 60 months. This policy could change.

Eligibility

Flight Attendants on medical leave are also eligible for voluntary furlough provided they have medical clearance that documents a return to work date effective before the furlough start date. This documentation must be provided to Company medical for clearance prior to the bid period closing. Upon clearance, contact your domicile supervisor. Your supervisor will ensure that you are returned to active status for bidding purposes. If a medical condition exists that prevents you from returning to work, you will continue your leave status in accordance with Section 23 of the Collective Bargaining Agreement.

If you are ineligible to bid for voluntary furlough due to issues concerning your fingerprinting, a United representative will contact you.

Voluntary Furlough Options

Voluntary furloughs will be offered and awarded in system seniority order. All active and inactive Flight Attendants may bid for this voluntary furlough. If an insufficient number of Flight Attendants volunteer, then involuntary furloughs will be imposed using inverse system seniority order. Flight Attendants who volunteer, but are junior to the most junior voluntary award, will not be awarded a voluntary furlough and will be placed on involuntary furlough status. The new voluntary furlough periods begin August 31, 2003.

Flight Attendants currently on voluntary furlough who do not bid for, or are not awarded a new furlough, will be expected to return to work effective August 31, 2003.

Involuntary Furloughs

Every effort will be made to limit or avoid involuntary furloughs. If it is necessary to involuntarily furlough Flight Attendants, the furlough period will begin August 31, 2003. The recall date will be based on operational need. Section 21.G. of the Agreement governs recall procedures from involuntary furlough.

Timeline

On or before July 3, 2003, instructions for bidding will be placed in Flight Attendant company mailboxes, as well as mailed to the homes of Flight Attendants on inactive status. Contact the Furlough Call Center at (866) 825-5444 or FLT-LINE (option 7, 7) if you have additional questions.