Re: Interim Dispute Resolution Procedures and Mechanism for Association Leave

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1 TENT A TIVE AGREEMENT LETTER OF AGREEMENT between JETBLUE AIR WAYS CORPORATION and the AIR LINE PILOTS in the service of JETBLUE AIRWAYS CORPORATION as represented by the AIR LINE PILOTS ASSOCIATION, INTERNATIONAL Re: Interim Dispute Resolution Procedures and Mechanism for Association Leave THIS LETTER OF AGREEMENT (hereinafu:r referred to as the "Agreement") made and entered into in accordance with the provisions of the Railway Labor Act, as amended, is by and between JetBlue Airways Corporation (hereinafter referred to as "the Company" or "JetBlue") and the airline pilots in the service of JetBlue, as represented by the Air Line Pilots Association, International (hereinafter referred to as "ALP A" or "the Association"). WITNESSETH WHEREAS the Company and the Association recognize the need to provide for a procedure to resolve disputes that arise under the JetBlue pilots individual Pilot Employment Agreements (PEAs) pending the negotiation and ratification ofa collective bargaining agreement; and WHEREAS, ALPA has furnished evidence that in conformity with the provisions of the Railway Labor Act, as amended, it has been duly certified as the exclusive representative of pilots employed by the Company, and is authorized to negotiate and conclude agreements on their behalf with respect to rates of pay, rules, and working conditions. The parties recognize that there are applicable agreements with respect to rates of pay, rules, and working conditions of JetBlue pilots. During the interim between the certification of ALPA and the ratification of a collective bargaining agreement covering JetBlue pilots, the parties seek to implement an efficient procedure for resolving disputes over agreements which remain in effect. All such disputes will be subject to the "Settlement of Disputes" procedure described below. The principles of flight pay loss and release of pilots to perform service for ALP A are also covered below: A. SETTLEMENT OF DISPUTES A pilot, or a group of pilots, covered by individual PEAs and this LOA who have a dispute concerning any action of the Company affecting them, or who believe they have been disciplined or discharged in violation of an applicable agreement, which dispute has

2 6/5114 not been settled or resolved in conference with Company officials, shail use the dispute resolution procedures as established herein. J. Investigative Hearing -Discipline and Discharge a. A pilot who has completed Initial Operating Experience (LO.E) shall not be disciplined or discharged without proof of misconduct justifying discipline and without previously being afforded an investigatory meeting with the pilot's Chief Pilot, or designee, provided that the pilot has made himself available for the meeting. b. The pilot shall be notified in writing (including ) of the time and place of the investigatory meeting and the nature of the matter to be discussed. The notice must specifically reference that discipline may be assessed. Concurrently, the Association shall be notified. c. The pilot shall have the right to be accompanied to the investigatory meeting by a JetBlue pilot of the pilot's choice, provided the choice is reasonably available. In no case will an investigatory meeting be held without representation, if such representation is requested and reasonably available. d. When a pilot is disciplined or discharged, the Company shall furnish the pilot with a written statement of the precise charge(s), with a copy to the Association. e. Nothing herein shall prevent the Company from holding a pilot out of service with pay pending investigation. 2. Discipline and Discharge Grievance Procedure a. A grievance challenging discipline or discharge shall be in writing and shall state the relief sought, and must be submitted to the Vice President of Flight Operations within 15 days after the pilot is notified of his discipline or discharge. b. A hearing will be held by the Vice President of Flight Operations or his designee within 15 days after receipt of the grievance. c. Within 15 days after the close of the hearing, a written decision will be issued and sent to the grievant. A copy wiil also be provided to the Association. 2

3 d. Further appeal of the matter may be filed by the Association to the Pilots' System Board of Adjustment. The appeal will be in writing and submitted to the Board within 30 days after the Association's receipt oftbe Company's decision. 3. Non-Disciplinary Grievance Procedure a. A pilot, or an authorized representative of the Association on behalf of a group of pilots, may file a grievance concerning any action of the Company affecting him or them alleging a violation of an applicable agreement. Prior to filing a grievance, the matter should be discussed with a Chief Pilot in an effort to resolve the matter. b. Grievances concerning matters other than discipline or discharge shall be in writing and shall state in reasonable detail the facts upon which the claim is based and the relief sought. The grievance must be submitted to the Vice President of Flight Operations or his designee within 30 days from the time the pilot knew, or reasonably should have known, of the event(s) giving rise to the grievance, whichever is earlier. c. An investigation and hearing shall be held by the Vice President of Flight Operations or his designee, within 30 days after receipt of the grievance. Within 15 days after the close of the investigation and hearing, the Company shall announce its decision in writing to the grievant. A copy will also be provided to the Association. d. If the decision by the Vice President of Flight Operations or his designee is not satisfactory to the pilot, or group of pilots, the Association may appeal the decision to the Pilots' System Board of Adjustment by submission to the Board within 30 days after the Association's receipt of that decision. 4. System Board of Adjustment In the interest of establishing an efficient and effective method of resolving disputes related to an applicable agreement pending negotiation of a collective bargaining agreement between the parties, the parties hereby establish a System Board of Adjustment for the purpose of adjusting and deciding such disputes which are properly submitted to it, which Board shall be known as the JetBlue Pilots' System Board of Adjustment, hereinafter referred to as the "Board." a. Composition of the Board 3

4 I)A Four Member Board will consist off our (4) members, two (2) selected by the Company and two (2) selected by the Association. All members of the Board must be employees of the Company. 2) A Three Member Board shall be comprised of3 members, I selected by the Association, I selected by the Company, and I neutral Chair member. Members of the Board, except the neutral Chair member, must be employees of the Company. 3) The Company and the Association will attempt to select the neutral Chair of the 111Iee Member Board from the panel of arbitrators listed below by mutual agreement. If the Company or Association cannot agree upon the neutral Chair or a method for selecting him or her within 30 days of the System Board filing, the neutral Chair will be selected from the panel by the alternate strike method. 4) Jurisdiction I. Mark Burdette 2. Joshua Javitts 3. Richard Kasher 4. Bonnie Weinstock 5. Carol Wittenberg The Board shall have jurisdiction over disputes between any pilot and the Company growing out of grievances or out of interpretation or application of any of the terms of an applicable agreement; provided, however, such jurisdiction is without prejudice to the right of any pilot, who is a party to a PEA to pursue the matter individually under this Letter of Agreement without ALPA representation including an appeal and presentation to the full Three Member System Board of Adjustment. A pilot who elects to pursue such procedure individually in lieu of ALP A Representation will be required to pay the costs of the pilot's attorney or other representative, applicable transcript or witness expenses, and similar associated costs. The Board shall consider any dispute properly submitted to it by the President of the Association or the Vice President of Flight Operations if the dispute has not been previously settled in accordance with the terms provided for in this LOA. The jurisdiction of the Board shall not extend to changes in hours of employment, rates of compensation or working conditions covered by the agreements within its jurisdiction. 4

5 TENT A TIVE AGREEMENT 6/5114 c. Preexisting Filed Disputes. Any pilot, who is a party to a PEA and who has a dispute previously submitted under the procedures of Paragraph 12 of the PEA or the Dispute Resolution Manual before April 23, 2014, may conclude that dispute pursuant to the procedures set forth in the PEA or the DRM. Should a pilot choose to use the process in effect prior to certification of ALP A and this agreement, the responsibility for the pilot's representation, witness expenses and associated fees will be governed by paragraph L., below, and the pilot shall not have access to the System Board for such dispute. d. Grievance Review by Four Member Board The Four Member Board will meet quarterly to review and attempt to resolve all pending grievances. By mutual agreement, the Company and Association may bypass the Four Member Board and submit a grievance directly to the Three Member Board. A pilot who has been disciplined or discharged will be afforded the opportunity to appear in person before the Four Member Board and to present evidence on the pilot's behalf. The jurisdiction of the Four Member Board shall not extend to proposed changes in hours of employment, rates of compensation or working conditions covered by existing agreements between the parties. Absent a deadlock (defined as (i) two members of the Four Member Board declaring a deadlock or (ii) the Four Member Board not distributing a written resolution within 60 days of hearing the evidence), the resolution of the grievance by the Four Member Board shall be final and binding upon the parties. The Four Member Board shall distribute its written resolution to all interested parties and monitor the implementation of the resolution. B. Submission of Disputes to the Three Member Board All disputes not resolved by the Four Member Board may be submitted to a Three Member Board. All submission of disputes properly referred to the Three Member Board for consideration shall be addressed to the Board with I copy each to the Company and the Association, and I copy for each member. I copy of the submission shall be submitted to the neutral member. The submission shah show: 5

6 1) question or questions at issue; 2) statement of facts; 3) position of the Association; 4) the understood position of the Company; and 5) the relief sought. C. Documents, Witnesses, Evidence and Representation TENT A TIVE AGREEMENT 6/5114 1) The Association will designate its representative and the Company will designate its representative. Evidence may be presented either orally, in writing, or both. 2) The System Board shall, when requested by a member of the Board, summon any witnesses who are employed by the Company and who may be deemed necessary by either party to the dispute or by a System Board member. 3) In disputes involving discipline, the Association will be allowed to review all documents relied upon by the Company in issuing the discipline. Access to documents or evidence in non-disciplinary matters will be governed by the System Board. 4) The number of witnesses summoned at anyone time shall not be greater than the number that can be spared from the Company's operation without interference with the services of the Company. D. Decisions Final A majority vote for all members of the Board shall be competent to make a decision. Decisions of the Board in all cases properly referred to it shall be final and binding upon the parties. Board findings and decisions shall be in writing and shall be rendered within 45 days from the close of the hearing, or as soon as practicable thereafter. E. Location of Board Hearings The Board shall meet in_new York City, unless the parties mutually agree that a different location would be preferable. F. Rights and Privileges of Parties 6

7 Nothing herein shall be construed to limit, restrict, or abridge the rights and privileges accorded to either the Association or the Company under provisions of the Railway Labor Act, as amended or other applicable federal and state laws. G. Expenses of Board Members and Witnesses I) The expenses of the Board and the expenses and reasonable compensation of the neutral member will be borne equally by the parties. Each of the parties will assume the compensation, travel expense, and other expenses of their Board Members, witnesses, and representatives. 2) The grievant, employee witnesses, and representatives who are employees of the Company shall receive free space available transportation on the lines of the Company and on other carriers subject to interline agreements to the point at which they must appear as witnesses or representatives and return. 3) Employee Board members shall, when attending meetings or hearings of the Board, receive Company business positive space passes for transportation over the lines ofthe Company. 4) Should a hearing be postponed or canceled without mutual consent of the Company and the Association, the party requesting postponement or cancellation shall bear any and all expenses assessed by the neutral member. H. Stenographic Report When it is mutually agreed that a stenographic report is to be taken of a Three member System Board hearing, the cost will be borne equally by both parties to the dispute. In the event it is not mutually agreed that a stenographic report of proceedings will be taken, any transcripts made by either party shall be furnished to the other party upon request, provided that the stenographic costs shall be borne equally by both parties. No stenographic reports or other recordings are pennitted of other hearings. I. General a. Participants in the grievance and System Board proceedings shall be free to discharge their duties in an independent manner without fear that their individual relations with the Company or with the Association may be affected by any action taken by them in good faith in their capacity as participants. 7

8 6/5114 b. After a grievance has been filed, a pilot shall be entitled to have an Association representative present at any step of the grievance procedure. c. Any time limits prescribed in this Section may be waived by mutual consent. In the absence of an agreement, the failure of a pilot to grieve, or to appeal any grievance decision by the Company within the prescribed time limits, or to make the pilot and any desired representative available for a properly scheduled hearing shall cause the action or decision of the Company challenged in the grievance to become final and binding. If any hearing or decision required of the Company under the provisions of this LOA is not provided within the time limits prescribed herein, or any extension mutually agreed upon, the pilot may consider the grievance denied and appeal it to the next step in the grievance procedure as specified in this LOA. d. The periods of time for hearings, decisions, and appeals established in this LOA shall be considered as maximum periods. When hearings, decisions, and appeals can be handled in a period ofless than the maximum time stipulated, every effort will be made so as to expedite such cases. 1. Copies of all notices and decisions shall be delivered to the grievant and the Association. For the purposes of this LOA, "notice" or "delivery" may be by certified mail, return receipt requested, express delivery, hand delivery, fax or . K. Disputes resolved prior to the filing of a grievance shall be nonprecedential and nonreferable. L. ASSOClA non LEAVE J. Unpaid National Association Leave Up to 3 pilots at anyone time shall be granted unpaid leaves of absence to accept a full time (30 continuous days or more) position with the Association. Unless the Association advises the Company of its need for full time Association Leave by the ) st of the month preceding the month in which the leave of absence is to begin, the granting of such leave is not guaranteed but will be granted if staffing needs permit. 2. Seniority and Longevity A pilot will retain and continue to accrue seniority and longevity during the leave. 8

9 TENT A TIVE AGREEMENT 3. Subject to the needs of the operation, the Company will grant Association leave for pilots on the Association's Board of Directors and Negotiating Committee as follows: a. Board of Directors - 2 pilots per LEC, 3 MEC officers and the Merger Committee, if necessary, will be granted leave to attend meetings of the Association's Board of Directors (BOD). The Association will notify the Company as far in advance as possible but at least prior to the [ILIW] for the affected month. The Company will grant additional pilots leave to attend the BOD meeting, when possible. b. Negotiating Committee - 3 pilots shall be granted leave for the purpose of preparing for and conducting negotiations and concluding any agreement with the Company covering rates of pay, rules, or working conditions. 4. The three (3) MEC officers will submit their needs for Association leave on a monthly basis prior to the pre-blocking deadline and will bid in accordance with normal bidding procedures for any remaining availability, and will maintain currency. For pay purposes, the MEC Officers will ghost bid. 5. Subject to the needs of the operation, the Company wiil grant Association Leave for a maximum of five (5) days to up to 2 pilots each month for the purpose of conducting Association business. The Association will give tbe Company at least 10 days notice of the need for such leave. The Company will make every effort to grant the leave but the leave may be denied if staffing needs make the leave impracticable. 6. For purposes of this Section L, "Subject to the needs of the operation" shall mean as follows: a. For leaves requested prior to the pre-blocking deadline, such leaves will be granted unless the requested leave would cause the bid divisor for the equipment, seat and domicile to exceed 87 hours. If such leave would cause the bid divisor to exceed 87, the leave requests will be granted or denied at Company discretion. b. For leaves requested after the pre-blocking deadline, such leaves will be granted if the reserve grid for the equipment, seat and domicile is green at the time of the request (or during the next normal business hours ET if submitted outside of normal business hours). If such reserve grid is not green, the leave requests will be granted or denied at Company discretion. 7. Requests for Association Leave will be made in writing by the MEC Chairman or his designee to the Vice President of Flight Operations. 9

10 8. A pilot granted paid Association Leave will be paid and credited with five (5) hours per day of such Leave if requested sufficiently far enough in advance to be entered as a planned absence on his schedule or, if not requested sufficiently in advance, trips missed and 5 hours per day of authorized Association business on scheduled days off. For the purposes of this paragraph "sufficiently far enough in advance" is defined as pre-blocked ALP A business during the monthly line and reserve bidding cycle. To be pre-blocked, leave requests must be submitted by the 25 th two (2) months prior to the month in which the leave is requested to be taken. 9. The Association will reimburse the Company for all Association Leave paid to pilots as follows: a. For Leaves entered as planned absences during the monthly line and reserve bidding cycle, five (5) hours per day of such leave paid by the Company multiplied by the applicable hourly rate for each pilot plus 28 percent (30% for MEC officer leave) to cover the cost of fringe benefits; or b. For Leaves not entered as planned absences, the number of hours ofleave paid by the Company multiplied by the applicable hourly rate for each pilot plus 28 percent (30% for MEC officer leave) to cover the cost of fringe benefits. c. The Association will reimburse the Company within 30 days after receipt of the Company's invoice. The invoice shall be submitted to the Association no later than 45 days following the month in which the flight pay loss was incurred. d. A pilot will retain and continue to accrue vacation and sick leave while on Association Leave-MEC. JIt1. Special Provision on Attorney's Fees The parties recognize that under the individual PEAs and the DRM, PPA, Governance Process and the PVC Charter, there were provisions and practices for payment by the Company of attorney's fees and other professional costs associated with presentation of complaints and claims under the dispute resolution procedures outlined in those agreements. In addition, the Company also committed to pay professional fees associated with FAA enforcement and other similar matters. The parties agree that, on a prospective basis, costs associated with pilot representation in the dispute resolution procedures set forth in this Agreement or with respect to FAA enforcement will be borne by the Association or, if the pilot chooses his or her own representation, by the individual pilot.. However, professional fees and costs incurred prior to the certification of the Air Line Pilots Association on April 23, 2014, or professional fees and 10

11 costs associated with procedures, hearings, or submission deadlines set prior to certification of ALP A will be the responsibility of the Company if the Company had previously represented to the pilot that it would pay such costs or fees. 11

12 TENTATIVE AOREEMENT 615/14 IN wrrness WHEREOF, the parties have signed This Let1crof Agrwmenton the,,/,1"( j j day of JWlC for JetBlue Airways Corporation For Air Line Pilots AssociatiCH'l, lnt'l. 12

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