Special Update
March 20, 2020

Dear United Airlines Brothers and Sisters,

Recently an email from a mechanic in Newark was disseminated system wide that gave
an inaccurate overall picture of what has been transpiring. This situation is changing
rapidly. I want to be clear; the most accurate and concise updates will come in the form
of the Mechanics Dispatch to all members.
While the airline industry bailout is starting to take shape, no one can predict what the
final package will entail. With the current cash burn each airline is experiencing right
now, most of them will need assistance just to survive. As in each legislative matter
affecting airline employees, the IBT is continuing to lobby on your behalf for this relief. A
joint Labor/Management letter was sent to Secretary of Treasury Steven Mnuchin,
House of Representatives Speaker Pelosi, Minority Leader McCarthy, Senate Majority
Leader McConnell and Senate Minority Leader Schumer outlining the dire need of such
action.
The company approached all the Unions on the property about what they believed was
necessary for survival. One of the key requests was a 50% reduction in payroll
liabilities. To be clear, that does not mean a 50% reduction in employees pay. Other
means of reducing payroll include, cutting out all overtime, not backfilling current open
positions, accelerating retirements and offering flexible leaves. We requested economic
data from the company before so there is a clear understanding of what the company
actually needs. Please remember that it has been made clear that we are not willing to
entertain such a request while federal bailouts loom. No change to the economic terms
and conditions of the CBA can be made without a membership vote. Our position with
the company is that any relief agreed upon would only be temporary in nature and that
relief would be returned to the members in full. In other words, we are not willing to
agree to any permanent changes to the agreement and 50% is an unreasonable
request and will not be entertained.
In the worst case scenario bankruptcy does not mean the CARP pension plan
automatically disappears. There are current funding level requirements to maintain the
“Lump Sum” option. What would possibly be in jeopardy is the continued infusion of
money by the company to maintain the plan above those levels. If the funding levels dip
below the requirements that would trigger a change in our benefit options and the
overall health of the plan. At this moment however the company is working on surviving
without entering bankruptcy. As stated above that could change and you need to be
aware of the possibility.
This situation is extremely fluid; changing daily and sometimes, hourly. The
Administration has been discussing suspending domestic air travel for a period of time.
That hasn't happened yet, but it is a possibility. If it does happen it will make a dire
situation worse and will increase pressure for a bailout.
Updates will continue through the Dispatch as this situation unfolds. Don't fall victim to
rumors or speculation. Reach out to your respective Business Agents for updates they
will be able to help you.
In conclusion the best thing we can do is provide the same great service as we do every
day for United Airlines. This is critical; take care of each other. If you're ill don't come to
work. If your coworker is sick, call and check on them. Through generations we are
defined by how well we face adversity such as this. All of us will come out of this much
stronger and closer than ever before and we will do it together.

In Unity,
Vincent Graziano
Local 210, Business Agent
IBT National Coordinator, Airline Division