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United Airlines Early Out Package - Questions and Answers

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1.    Who is eligible for the Early Out Program?

a.    Active full time IAM represented Ramp and CSR employees at the stations and job classifications listed in Attachment A

b.    As of September 7th, 2008 you must be at least 45 years of age with a minimum of 15 years of Company service

 

2.    How do I submit my information for consideration?

You may submit for the Early Out Program one of two ways:

·         Online:  SKYNET Main Page > DEPARTMENTS > AIRPORT OPERATIONS > IAM EARLY OUT

·         Fax the early out option form to 847.700.3690

 

3.     How do I know if my submission form was received?

You will receive a confirmation email to the email address provided on your online or faxed submission form.

 

4.    How many employees will be awarded an Early Out Package?

Early Out packages will be awarded to the number of eligible IAM represented employees listed in Attachment A.  However, the Company does reserve the right to award Early Out Packages in excess of the numbers listed in Attachment A if there are more eligible applicants.

 

5.    May an employee who has submitted retirement paperwork rescind his/her retirement and apply for the Early Out Program?

Yes, the employee must rescind his/her retirement prior to the original retirement effective date.  You may call the United Benefit Service Center at 888.825.0188

 

6.    Are the required years of service based on Company or Classification seniority?

The required years of service is based on the employee company seniority.

 

7.    Why is the Early Out Program limited to employees who are age 45 & older and who have at least 15 years of service?

The company designed the program to comply with IRS rules regarding tax-advantaged retirement benefits.

 

8.    If the employee is eligible for retirement outside of the Early Out Program (i.e., 55 years old with minimum 10 years of service) may he/she be awarded the Early Out Package?

The employee may retire, with passes & retiree medical, and be awarded the Early Out with pay provided under the terms of the Early Out Program only if he/she is 55 and has at least 15 years of service.  Note:  Normal retirement eligibility (age 55 and at least 10 years of service) has not changed.

 

9.    Why is the program only offered to full time and not part time employees?

The company has designed the program for full time employees only in order to keep the program aligned with our current financial circumstances.  Offering the program to both full time and part time employees would have increased the cost of the program beyond the point at which it fell within our current financial constraints.

 

10. Why is the program not offered to all classifications represented by the IAM?

The decision to not offer the program to all classifications is one reason United is able to offer an Early Out program.  Offering the program to all groups would have increased the cost of the Early Out program beyond the Company’s current financial limitations.

 

11. When will I be allowed to submit my election for the Early Out Program?

Submissions will be accepted starting at 1600 CDT on Friday July 11th, 2008.  Submissions will not be accepted after 0800 CDT Friday July 25th, 2008.

 

12.  When will I know if I am awarded an Early Out Package?

You will be notified of your award on or before August 1, 2008.

 

13.  May I rescind an Early Out Program Submission?

Yes, an employee may rescind their submission online or via fax.  Simply complete the submission form again and select the rescind option prior to 0800 CDT Friday July 25th, 2008.

 

14.  Is an employee currently on a level of discipline or pending discipline eligible for the Early Out Program?

An employee who is currently on discipline is eligible to apply for the Early Out Program.  However, if an employee has been issued a Letter of Charge that may result in termination, the Early Out Program award will be held in abeyance until the outcome of the hearing.  If the hearing decision results in the employee’s termination, the employee’s Early Out Program award will be revoked.

 

15.  If I am awarded an Early Out Package, what is my last day of work?

The employee’s last day of work will be September 6th, 2008.

 

16.  When will I receive my severance payment(s)?

The severance payments will be divided equally and paid out once a month for 12 months.  Each payment will be made on or about the first business day of the month.  The payments will be mailed to your home.  Note:  Please ensure your mailing address in Sky Net is correct.  Questions on how to verify or change your mailing address can be handled via the HR Ops Call Center:  877.825.4767

 

17.  Why is the severance made in payments rather than a lump sum?

The decision to pay severance in payments is a key component to making the Early Out Program a financially affordable option for United Airlines.

 

18.  Will my severance be taxed?

Yes, taxes and withholding will apply to the monthly severance payments.

 

19.  What happens if an employee dies before receiving all twelve severance payments?

The remaining payments will be made to the IAM represented employee’s heir(s)/estate according to the same rules that United follows when paying out final pay for a deceased employee.

 

20.  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.  You may access a summary listing of retiree pass benefit programs and policies on Sky Net at TRAVEL > TRAVEL PRIVELEDGE SUMMARY > RETIREE

 

21.  May I still use Performance Incentive Passes if selected for the Early Out Program?

Employees that elect Early Out will be able to use the incentive passes until their expiration date.

 

22.  Is the “survivor” privilege included in the Early Out program pass travel benefit?

Participants in the Early Out program shall be entitled to the same retiree pass travel benefits on the same terms and subject to the same conditions, present & future, as retirees.  Therefore survivor privileges will be the same.

 

23.  Was there any consideration of medical benefits for this program?

Yes, the decision to not offer medical benefits is one reason United is able to offer an Early Out program.  Offering any continuation of medical benefits would have increased the cost of the Early Out program beyond the Company’s current financial limitations.  However, an employee who is eligible for the Early Out program and who is also eligible for retirement will be eligible for retiree medical benefits under our current retirement policy.  If an employee is not eligible for retirement he/she may chose to continue medical benefit coverage for 18 months under COBRA.

 

24.  If I accept the Early Out program offer, will I qualify for unemployment?

United reserves the right to contest unemployment claims.

 

25.  Can I apply to work for United after I accept the Early Out Package?

An employee who elects and is awarded the Early Out Package may reapply for employment with United.  If selected, he/she would be considered a new hire. 

 

26.  Where can I get additional information if I have questions about the Early Out program not answered here?

You may contact the HR Operations Call Center @ 847.700.3172 (unitel 700.3172) or toll free @ 877.242.0075.