ARTICLE 21. SYSTEM BOARD OF ADJUSTMENT

A. SYSTEM BOARD

In compliance with Section 204, Title II of the Railway Labor Act, as amended, a System Board of Adjustment is established for the purpose of adjusting and deciding disputes which may arise under, and involve the interpretation and application of the terms of this Agreement and any amendments or additions hereto. The Board shall be known as the Emery Worldwide Airlines Pilots System Board of Adjustments (hereinafter referred to as the “Board”).

B. COMPOSITION OF THE BOARD

1. The Board shall consist of three (3) members, one selected by the Company, one selected by the Association, and one neutral member.

2. Each party shall advise the other, in writing, of the names of its appointees and such designation shall continue in effect until successors are appointed. Association members shall be selected and appointed by the President of the Association and Company members shall be selected and appointed by the Chief Operating Officer. In the same manner, the Association and Company shall each designate one or more alternates, and in the event of unavailability of a Board Member, an alternate of that party shall act as a Board Member in place of the absent Board member. Either party shall have the right to change its representative periodically, provided that notification of such representation for any particular dispute must be made prior to the start of the scheduled hearing.

3. Original Company and Association Board Members and alternates shall be appointed within thirty (30) days of the date this Agreement shall become effective. Vacancies shall be filled in the same manner as is provided herein for the selection and appointment of the original Board members and the original alternates.

4. The neutral member of the Board shall preside at meetings and hearings of the Board and shall be designated as Chairman of the System Board of Adjustment. It shall be the responsibility of the Chairman to guide the parties in the presentation of testimony, exhibits and arguments at hearing to the end that a fair, prompt and orderly hearing of the dispute is afforded. The Board shall meet in Dayton, Ohio unless another location is previously agreed to by the parties.

C. JURISDICTION OF THE BOARD

1. The Board shall have jurisdiction over disputes between any employee covered by the Pilot’s Agreement and the Company growing out of grievances or out of the interpretation or application of any of the terms of the Pilot’s Agreement.

2. The jurisdiction of the Board shall not extend to proposed changes in hours of employment, rates of compensation, or working conditions covered by existing Agreements between the parties, or as subsequently executed. The jurisdiction of the Board shall not extend to discipline or discharge grievances filed by probationary Pilots.

3. The Board shall consider any dispute properly submitted to it by the President of the Association or by the Chief Operating Officer of the Company, when the dispute has not been previously settled in accordance with the terms and within the time limits provided for in Articles 19 and 20 of this Agreement.

4. The Board's decision shall be final and binding and conclusive on the Company and the Association.

D. PROCEEDINGS BEFORE THE BOARD

1. All disputes properly submitted to the Board for consideration shall be addressed to the Members of the Board, including all papers and exhibits. When possible, joint submissions should be made, but, if the parties are unable to agree upon a joint submission, then either party may submit the dispute and its position to the Board.

Each case submitted shall include:

a. Question or questions at issue

b. Statement of facts with supporting documents

c. Position of employee or employees

d. Position of the Company

2. Upon receipt of the submission, the responding party will have fifteen (15) calendar days to submit its position to the Board.

3. No matter shall be considered by the Board, except by mutual agreement of the parties, which has not first been handled in accordance with the provisions of Articles 19 or 20 of this Agreement.

E. CALENDAR AND PANEL

1. Prior to the start of each calendar year, the panel of arbitrators provided in Paragraph 2, (below), shall be contacted and secured to serve as neutral members of the Systems Board of Adjustment. The result shall be the tentative scheduling of twelve (12) days of arbitration, i.e., four (4) three-day sessions with one (1) session in each calendar quarter. The parties shall alternate in the administrative process of securing and coordinating dates with the arbitrators and each other. In the event the quarterly sessions are insufficient to provide for the hearing, without unreasonable delay, of all cases properly submitted, additional dates will be scheduled with the existing quarterly neutral on an as needed basis. Only on the occurrence of no case being pending before the System Board or by mutual agreement of the parties, shall the arbitrator be released.

2. The parties shall establish and maintain a panel of five (5) neutrals to serve as arbitrators and neutral Members of the System Board of Adjustment. In the event of a vacancy on the panel during the term of this Agreement, the parties will consult and agree upon a replacement neutral. If the parties are unable to agree within thirty (30) days of the initial consultation, either party may request that the National Mediation Board to provide a panel of arbitrators from which a replacement neutral will be selected.

3. No later than thirty (30) calendar days prior to the scheduled quarterly session, each party shall advise the other of which case or cases from those it has submitted to the Board it intends to present at the session. At the same time, copies of submissions filed in accordance with Paragraph D., (above), concerning the cases to be heard shall be forwarded by the Association to the Chairman. Not later than fifteen (15) calendar days prior to the scheduled quarterly session, each party shall advise the other of the witnesses it expects to call for each case to be presented to the Board.

4. The number of witnesses summoned at any time shall not be greater than the number which can be spared from the operation without interference with the service of the Company. If a witness necessary to the hearing cannot be released without interference to operational requirements, the hearing will be recessed until such time as that witness is available. The Board may utilize alternative means of taking testimony such as telephone and videotaped testimony, depositions, etc.

5. The Board shall meet with the purpose of hearing and deciding the case to be determined. The Board will render its decision in writing as promptly as possible.

F. GENERAL

1. Pilots covered by this Agreement may be represented at Board hearings by an Association representative or, with the approval of the Association, by a person or persons they may choose and designate, and the Company may be represented by a person or persons it may choose and designate. Evidence may be presented either orally, or in writing, or both. All witnesses testifying shall do so under oath.

2. The expenses and reasonable compensation of the neutral selected as provided herein shall be borne equally by the parties. Each of the parties will assume the compensation, travel expense and other expenses of the Board Member selected by it. Similarly, each party shall be responsible for the compensation, travel expense and other expenses of witnesses called by it. In the case of Company employees other than Pilots, the Association shall not be required to compensate such employees if called to testify in cases where their actions or duties within the scope of their employment are the subject matter of the grievance. In any event, when non-pilot employees are called, every effort shall be made to minimize interruption to their service with the Company.

3. It is understood and agreed that each and every Board Member shall be free to discharge his duty in an independent manner, without fear that his individual relations with the Association, the Company or with the employees may be affected in any manner by any action taken by him in good faith in his capacity as a Board member.

4. The expense of stenographic services, when used by mutual agreement to transcribe Board proceedings, shall be borne equally by the parties.

5. Board Members, witnesses, representatives, and grievants shall be granted sufficient time off as reasonably necessary for the performance of their duties, including preparing for and presenting cases.

6. The time limits specified in this Article may be extended by mutual agreement of the Company and the Association.

7. Nothing herein shall be construed to limit, restrict or abridge the rights or privileges accorded either to the employees or to the employer, or to their duly accredited representatives, under the provisions of the Railway Labor Act, as amended.

8. The Board shall, for a minimum period of five (5) years, maintain a complete record of all matters submitted to it for its consideration and of all their findings and decisions.

9. A copy of all minutes, correspondence, decisions and membership changes of the System Board of Adjustment shall be furnished to the ALPA designated Contract Administration Office, MEC Chairman, and Director of Operations.

10. The Chairman of the Board, on the request of either party or any individual Board Member, may summon any witnesses who are employed by the Company who may be deemed necessary to the dispute.

11. The Board shall have the authority to incur other expenses as in their judgment may be deemed necessary for the proper conduct of the business of the Board, and these expenses shall be borne one-half (.5) by each of the parties.

12. The Board shall have the authority for the administration and interpretation of this Article of the Agreement.