Negotiations Update
October 5, 2015
UAL Medical Arbitration Update

Earlier this summer, a neutral arbitrator held that United violated the s-UAL Collective Bargaining Agreement by imposing a 90% co-insurance obligation on employees who participate in the HMOs, Aetna Select Plans and HMSA. The arbitrator directed the Company and the Union to negotiate an appropriate remedy, and she retained jurisdiction over the case in the event the parties were unable to reach an agreed-upon remedy. Recognizing the great length of time that it would take to secure an arbitration award if the parties had to go back to the arbitrator for a second hearing to determine the appropriate remedy, the Union entered into settlement negotiations with the Company. The Union’s objective was to ensure that: (1) the 100% co-insurance is restored; and (2) the employees who incurred costs on account of the Company’s violation of the CBA’s 100’s co-insurance obligation are fully reimbursed. After numerous meetings and discussions with the Company, the Union has secured both of those objectives.

The Company will soon be issuing a direct communication to the employees advising that the HMO/HMSA/Aetna Select 100% co-insurance obligation is being restored and that the employees who incurred costs having to pay 10% co-insurance will be fully reimbursed. The timing in which the various HMOs/HMSA/Aetna Select Plans restore the co-insurance, and the process by which the employees will be reimbursed does somewhat differ, however, depending on which Plan you were in.

Specifically: please note the following:

Aetna Select Participants
Beginning with claims for services incurred after October 1, 2015, the Aetna Select Plans’ 100% co-insurance will be reinstated. You will not be charged coinsurance for services received after October 1, 2015.
If you participated in an Aetna Select plan in 2014 or 2015 and paid coinsurance expenses to your medical provider, you will automatically receive a reimbursement for
coinsurance expenses paid in 2014 and/or 2015. You do not have to submit any receipts substantiating your coinsurance expenses. Initial reimbursements will be made within the next several weeks. You may receive multiple reimbursements as medical claims are processed and finalized.

Kaiser and Anthem HMO Colorado Participants
Beginning with claims for services incurred after January 1, 2016, the Kaiser and Anthem HMO Colorado 100% coinsurance will be reinstated. You will not be charged coinsurance for services received after January 1, 2016

If you participated in an Anthem HMO Colorado or Kaiser HMO plan in 2014 or 2015 and paid coinsurance expenses to your medical provider, you will automatically receive a reimbursement for coinsurance expenses paid in 2014 and/or 2015. You do not have to submit any receipts substantiating your coinsurance expenses. Initial reimbursements will be made within the next several weeks. You may receive multiple reimbursements as additional medical claims are processed and finalized.

Group Health Cooperative, HealthSpan Integrated Care and HMSA Participants
Beginning with claims for services incurred after January 1, 2016, the 100% coinsurance for these plans will be reinstated. You will not be charged coinsurance for services received after January 1, 2016

If you participated in one of the HMO plans mentioned above in 2014 or 2015 and paid coinsurance expenses to your medical provider, you must submit a reimbursement request to receive payment.

To process your reimbursement request, we will need the following:
1. A copy of your Explanation of Benefits (EOB) from your HMO showing the charges you were responsible for paying
2. Name
3. Employee ID
4. e-mail address
You will be asked to submit this information to:
United Airlines
Attn: H&W Finance – Willis Tower
233 S. Wacker Drive, 25th Floor – WHQHR
Chicago, Illinois 60606
You will also be advised that you can submit your reimbursement request via e-mail to HWFinance@united.com.
Please look for the Company’s direct communication for more details regarding this matter.

Resource Utilization Arbitration Update

Briefs from the IBT and the Company have been submitted to the Arbitrator. After the Arbitrator reviews the case he will set up an executive session of the tripartite panel. After the executive panel meets the Arbitrator will issue the ruling.

UNITED AIRLINES FAILS TO REACH AGREEMENT

WITH TEAMSTER AVIATION MAINTENANCE TECHNICIANS

Technicians Call on Company to Stop Dragging its Feet on a Contract



(CHICAGO) – United Airlines’ [NYSE: UAL] labor woes continue as talks with International Brotherhood of Teamsters-represented aviation maintenance technicians and related workers stalled today.

“Delta and American are setting the pace and United is dragging its feet,” said Clacy Griswold, lead negotiator for the Teamsters. “Our hardworking aviation professionals deserve industry- leading pay and benefits and will settle for nothing less.”

The union has been in negotiations with the company since November 2012 and under the guidance of a federal mediator since November 2013.

The company continues to trail the industry standard in compensation after having the most profitable quarters in its history.

“We hoped to see a change in the airline’s attitude toward its workers under the new leadership of CEO Oscar Munoz, but that has yet to be seen,” Griswold said.

The Teamsters Airline Division represents 9,000 aircraft maintenance technicians and related workers at United Airlines, and over 80,000 workers in the aviation industry.

Negotiations Update Week 2 October 1, 2015

Meetings were held through the weekend (12 hour sessions) and into this week in an effort to conclude the bargaining and reach an equitable deal for the membership. United passed a comprehensive proposal to the union on Saturday. The committee at-large and various sub-committees spent Sunday in discussions to develop a comprehensive counter proposal.
We presented the counter on Monday and spent the next day’s waiting on response from the company. While waiting, sub-committees continued working out the final remaining open issues.
Both parties’ proposals included the “four corners” needed to achieve an agreement: wages, healthcare, scope, and pension, but the final vision of the two sides remains drastically different. We had hoped that the change in leadership at United would create a more realistic direction in finally fulfilling their long standing promise to technicians. We had also hoped that the new regime would recognize our sacrifices and hard work in helping to create the most profitable quarters ever enjoyed by this company. Unfortunately, the new direction that has been advertised to the public has not yet made its way down to the company negotiators and we are stuck with more of the same.
Although both parties worked long hours throughout the two weeks, it became clear that we would not conclude bargaining and come to an agreement in principal during this session. The direction of the company made it evident to us that they would need to expand their economic platform if they intend to come close to our member’s expectations.
With that realization, we suspended talks for this session. Our desire is that the company representatives go back to their leadership and discuss the current situation. We are prepared to continue towards reaching an agreement that will satisfy the membership or the union will move to the next step of bargaining process. Hopefully the company will recognize the opportunity that is now available to them and make some real efforts to create a fix.
Additional sessions have been scheduled in mid-October to continue towards our goal of an industry leading agreement.