Mechanics Dispatch

Negotiations Update

July 10, 2015

Sub UA Medical Arbitration Update

As many of you are aware, the 60 days time frame prescribed by the arbitrator in this decision has passed. The arbitrator contacted the parties for a status update and she was informed that an information request was made by the Division, that the Company had provided information and that the Division's actuary, Gaelle Gravot, was digging through the data. The arbitrator then suggested since it appeared the parties were making progress she would not immediately reconvene the panel. If however it looks like the parties are unable to come to agreement she would quickly schedule the remedy hearing.

JFK Update

The Airline Division informed the Company, without prejudicing its position in the current RUL arbitration, that the Company was in violation of the resource utilization letter. The Company disagreed and per the terms of the letter a summit meeting will take place. If the matter cannot be resolved then the issue will move forward to arbitration. Copies of the letters between the Division and the Company can be found on the Airline Division website (www.teamsterair.org) or by clicking the links below:

http://teamsterair.org/sites/teamsterair.org/files/uploads/pdm-bourne2015-07-

06ltrrejfkredeployment.pdf http://teamsterair.org/sites/teamsterair.org/files/uploads/07915bourneltr_tomckeen.pdf

FST Committee Meets in Chicago

On Thursday, Gene Bray, Randall Overstreet, Don Ramsey, Bob Fisher, led by Bob Clever, had an opportunity to meet and discuss, with Company representatives, objectives and processes for furthering our goal in reaching an amalgamated agreement. The open discussions included maintaining our current process and supplementing our time spent in the Technician negotiations in sub-committee meetings with the Company, addressing issues and language concerns from both sides. To better facilitate these discussions we are going to bring the full committee back together the last week of this month. Depending on the progress made,