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Insurance

Letter of Understanding #02-01

Re: Insurance

January 22, 2002

Randy Canale
President and Directing General Chairman
District 141 – I.A.M.A.W.

Dear Randy,

This letter will confirm our conversation regarding the Company’s agreement to enhance the benefits offered in Article 22, B.1.c regarding family medical and dental coverage for employee displaced from full-time Fleet Service positions to part-time positions.

Full-time employees working in Fleet Service on the effective date of the collective bargaining agreement, who are subsequently affected (from a non-closed station) will be eligible for family medical and dental coverage upon recall to part-time only if they listed part-time within their location on their displacement bid form at the time of their displacement but were not awarded part-time during the displacement exercised based on their relatively junior classification date. Full-time employees (except those in closed stations) who did not elect to list part-time in their location on their displacement bid form will not be eligible for family medical and dental coverage upon recall to part-time.

Full-time employees working in Fleet service on the effective date of the collective bargaining agreement, who are subsequently affected as a result of the closure of their station, will be eligible for family medical and dental coverage upon recall to part-time in their new location.

In no cases are employees on furlough who transfer to part-time positions eligible for family medical and dental coverage. Additionally, pursuant to Article 22, B.1.c, employees who turn down recall to a full-time position in Fleet Service will not be eligible for family medical and dental insurance coverage.

Sincerely,

(Signed) E. Allen Hemenway Director – Labor Relations Ground

Accepted and agreed:

(Signed) Randy Canale
President and Directing General Chairman
District 141 - I.A.M.A.W.