September 18, 2008
Revised United Airlines Early Out Package for Ramp, Stores and PCE Members

Printable Version of Agreement

Early Out Package Request Form

Early Out Package Q&A

                             LETTER OF AGREEMENT                                

BETWEEN

UNITED AIRLINES, INC

AND

THE RAMP and STORES EMPLOYEES

IN THE SERVICE OF

UNITED AIRLINES, INC.

AS REPRESENTED BY

THE INTERNATIONAL ASSOCIATION OF
MACHINISTS and AEROSPACE WORKERS

THIS LETTER OF AGREEMENT is made and entered into in accordance with the Railway Labor Act by and between UNITED AIRLINES, INC. (hereinafter referred to as the “Company”) and the INTERNATIONAL ASSOCIATION OF MACHINISTS and AEROSPACE WORKERS (hereinafter referred to as the “IAM”.)

The Company shall offer certain eligible full-time Ramp and Stores employees a one-time opportunity to separate voluntarily from the Company with a severance payment and full retiree pass travel benefits (hereinafter referred to as the “Early Out Program” or “Early Out Package”) as set forth below:

1.         Eligibility:  Up to the number of full-time Ramp Servicemen and Lead Ramp Servicemen identified on Attachment A (the “Attachment A Number(s)”) who satisfy the following conditions:  a) are eligible to be furloughed, without regard to one’s seniority and whether or not the individual actually will be subject to an imminent furlough, and b) as of September 7, 2008, will be at least 45 years of age with at least 15 years of service to the Company.  If the number of eligible applicants exceeds the Attachment A Number(s), Early Out Packages will be awarded by Company seniority to the senior eligible applicants at the particular named location and within the named job classification.  Additionally, the Company reserves the right to award Early Out Packages in excess of the Attachment A Number(s) if the number of eligible applicants exceeds the stated number at a location and within a job classification.

2.         Subsequent Early Out Offer:  The Company also may make an Early Out Program available to mitigate the impact of schedule changes planned for an early November implementation.  If the Company offers a subsequent Early Out Program, the Company will provide an updated Attachment A and the Company will provide the IAM with an updated date for benefit commencement/employment separation in early November 2008, as well as new dates for determining eligibility and application processing timelines.  All other terms of this Early Out Program will remain unchanged in a subsequent program offering.   

3.         Pass Travel Benefit:  Commencing September 7, 2008, participants in the Early Out Program shall be entitled to retiree pass travel benefits on the same terms and subject to the same conditions, present and future, as retirees.

4.         Severance Payment:  Participants in the Early Out Program shall receive a severance payment of $500.00 per full year of service to the Company, up to a maximum of $12,500.00.  Severance payments shall be divided into 12 equal installments.  Participants shall be paid one installment on or about the first business day of each calendar month of 2009.  All payments will be subject to applicable taxation and withholding.

6.         Separation from Employment:  Participants in the Early Out Program shall terminate their employment with the Company effective September 7, 2008 (i.e., last day of employment shall be September 6, 2008).

7.         Application Process:  Participation in the Early Out Program is voluntary.  Applications for Early Out Packages must be received on or before 8:00 a.m. Central Time on July 25, 2008, and applicants will be notified of their inclusion or exclusion in the program on or before August 1, 2008.  The Company will meet and confer with the IAM regarding other details of the application process.

8.         Forfeiture for Conduct:  If an eligible employee is awarded an Early Out Package, but before September 7, 2008, is charged with conduct that could lead to discharge, the employee’s Early Out Package shall be held in abeyance pending an investigative review hearing pursuant to the provisions of Article XVII of the Ramp and Stores Agreement.  If the outcome of the investigative review hearing is anything other than termination of employment, the employee retains the Early Out Package.  If the outcome of the hearing is termination of employment, the employee forfeits the Early Out Package.  In a case of termination, if the System Board of Adjustment orders reinstatement, the employee shall have the option of receiving the Early Out Package in lieu of reinstatement

9.         No Implied Changes to the Ramp and Stores Agreement: This Letter of Agreement does not modify the Ramp and Stores Agreement except as specifically provided herein.

IN WITNESS WHEREOF, the parties have signed this Letter of Agreement this 11th day of July 2008.

FOR UNITED AIRLINES, INC.                  FOR THE RAMP AND

STORES EMPLOYEES

                                                                        IN THE SERVICE OF UNITED

                                                                        AIRLINES, INC.

_/s/  Thomas M. Sullivan_________               _/s/ S.R. Canale________________

Thomas M. Sullivan                                        S.R. (Randy) Canale

Managing Director Labor Strategy                 President and Directing General Chairman

International Association of Machinists

                                                                        And Aerospace Workers – District 141