LETTER OF AGREEMENT

between

EMERY WORLDWIDE AIRLINES, INC.,

EMERY AIR FREIGHT CORPORATION, d/b/a EMERY WORLDWIDE

and

THE AIR LINE PILOTS

in the service of

EMERY WORLDWIDE AIRLINES, INC.

as represented by

AIR LINE PILOTS ASSOCIATION, INTERNATIONAL

 

 

SUBCONTRACTING

 

 

THIS LETTER OF AGREEMENT is made and entered as amended into by and between EMERY AIR FREIGHT CORPORATION, d/b/a EMERY WORLDWIDE, EMERY WORLDWIDE AIRLINES, INC., (hereinafter referred to as the “Company”) and the AIR LINE PILOTS in the service of EMERY WORLDWIDE AIRLINES, INC. as represented by the AIR LINE PILOTS ASSOCIATION INTERNATIONAL, (hereinafter referred to as the “Association”).

 

It is agreed and understood by the Company, Emery Worldwide and the Association by this Letter of Agreement that:

 

1.     In recognition of the increased productivity and efficiency that EWA and the Association are expected to achieve as a result of reaching this Agreement, Emery Air Freight Corporation d/b/a Emery Worldwide, (“EWW”) agrees that it will reduce the proportion of scheduled block hours flown by airline contractors (other than EWA and Ryan) in EWW’s Prime Time Operations. In 1999, the last year for which complete data is available, the proportion of scheduled block hours flown by such airline contractors was 34.9%.

 

a.     During the calendar year commencing 2001, EWW will, subject to the conditions and circumstances described in Article 1.C.7.a of the Pilots’ Agreement, reduce the maximum proportion of block hours flown by airline contractors (other than EWA and Ryan) by four (4) percentage points, compared with 1999 (from 34.9% to 30.9%).

 

b.     During the calendar year 2002, EWW will, subject to the conditions and circumstances described in Article 1.C.7.a of the Pilots’ Agreement, reduce the maximum proportion of block hours flown by airline contractors (other than EWA and Ryan) by an additional three (3) percentage points, to 27.9%.

 

c.       During the calendar year 2003, EWW will, subject to the conditions and circumstances in Article 1.C.7.a of the Pilots’ Agreement, reduce the maximum proportion of block hours flown by airline contractors (other than EWA and Ryan) by an additional two (2) percentage points, to 25.9%.

 

d.     During the calendar year 2004, EWW will, subject to the conditions and circumstances in Article 1.C.7.a of the Pilots’ Agreement, reduce the maximum proportion of block hours flown by airline contractors (other than EWA and Ryan) by an additional two (2) percentage points, to 23.9%.

 

2.     The parties shall meet to exchange data needed for the calculation of block hour totals, percentages and proportions as well as to establish procedures to verify compliance with this Letter of Agreement. In the event the parties are unable to agree upon procedures or if a dispute arises, all such matters, including remedy, shall be referred to Permanent Umpire, Richard Kasher, who shall promptly hear and resolve the dispute. In the event that Umpire Kasher shall become unwilling or unable to continue in this capacity, the parties will agree upon Umpire George Nicolau.

 

3.     Should EWW, in any calendar year, reduce the proportion of block hours flown by airline contractors by a larger amount than that required for that calendar year by subparagraphs A-D above, any excess in the percentage required for that calendar year shall be considered a credit against the obligation of subsequent year(s).

 

4.     Notwithstanding EWW’s agreement to this paragraph, ALPA recognizes that EWW and EWA are separate employers for purposes of the nation’s labor laws and remain so, provided the character and nature of EWW’s business operations and its relationship to EWA remain substantially unchanged. Subject to that proviso, ALPA agrees that it will not assert, contend or allege in any administrative, legal, or contractual forum that EWW and EWA are single employers, joint employers, a single enterprise or alter egos, nor assist others in such assertions, contentions, or allegations.

 

5.     Should EWW or EWA establish a daytime sort, the Company may use its discretion to allocate the flying between EWA and other airline contractors for up to one (1) year. The Association and the Company will meet at least thirty (30) days prior to the end of the year and agree upon the proportion of scheduled block hours to be flown thereafter by EWA and by the other airline contractors. In the event that agreement cannot be promptly reached, the matter will be referred to the Umpire for resolution in accordance with paragraph 2, above.

 

 

This Letter of Agreement shall become effective upon date of signature and shall remain in effect concurrently with the Collective Bargaining Agreement.

 

 

 

 

IN WITNESS WHEREOF, the parties hereto have signed this Letter of Agreement this __________ day of ____________________, 2000.

 

 

 

 

WITNESS:                                                     FOR EMERY WORLDWIDE AIRLINES, INC.

 

______________________________            ____________________________________

 

 

WITNESS:                                                     FOR EMERY AIR FREIGHT CORPORATION

                                                                        d/b/a EMERY WORLDWIDE

 

______________________________            ____________________________________

 

 

WITNESS:                                                     FOR THE AIR LINE PILOTS IN THE SERVICE OF EMERY WORLDWIDE AIRLINES, INC.

 

______________________________            ____________________________________