1999 AMENDMENT

TO THE WORKING

AGREEMENT

between

ALASKA AIRLINES, INC.

and

Hereinafter, ALASKA AIRLINES, INC., will be referred to as the "Company," and the AIRCRAFT MECHANICS FRATERNAL ASSOCIATION will be referred to as the "Union" or "Association".

A. The purpose of this Agreement is, in the mutual interest of the Company and of the employees, to provide for the operation of the services of the Company under methods which will further, to the fullest extent possible, the safety of air transportation, the efficiency of operation, and the continuation of the employment under conditions of reasonable hours, proper compensation, and reasonable working conditions. It is recognized by this Agreement to be the duty, of the Company and of the employees, to cooperate fully both individually and collectively, for the advancement of that purpose. The Company recognizes the employees covered by this Agreement to be highly skilled individuals who are dedicated to the progress of commercial aviation and to the safety of flight by the practice of quality aircraft maintenance.

B. No employee covered by this Agreement will be interfered with, re-strained, coerced, or discriminated against by the Company, its officers or agents because of membership in or lawful activity on behalf of the Union.

C. It is understood wherever in this Agreement employees or jobs are referred to in the male gender, it shall be recognized as referring to both male and female employees.

D. Alaska Airlines and the Aircraft Mechanics Fraternal Association hereby agree that neither the Company nor the Union will discriminate against any employee because of race, color, religion, national origin, disability, or veteran status, sex or age.

A. In accordance with the National Mediation Board certification in Case No. R-6572, March 30, 1998, the Company recognizes the Aircraft Mechanics Fraternal Association as the sole and exclusive bargaining agent for all employees of Alaska Airlines, Incorporated, composing the class and craft as covered under this Agreement.

B. The Company's General Policy, Operating, Maintenance Manuals and the Company's System Regulation, Customer Service, and General Maintenance Manuals shall be made available to all employees. Each employee shall be responsible for knowledge of their location and contents. The Company shall advise all employees of changes in rules and/or regulations that could result in disciplinary action. Employees covered by this Agreement shall be governed by such Manuals and by all applicable rules, regulations and orders issued by properly designated authorities of the Company which are not in conflict with the terms of this Agreement. The Company shall have the right to modify these manuals, policies, System Regulations during the term of the Agreement. The Company will insure that these rules, regulations and orders, together with such amendments or changes as may be made from time to time, are made available to all employees.

C. The Company agrees that all work normally performed by the employees covered by this Agreement in its Maintenance Shops, Airport Stations, or other facilities is recognized as coming within the jurisdiction of the Aircraft Mechanics Fraternal Association and is covered by this Agreement. The parties agree that the Company may (1) continue to contract out work heretofore customarily farmed out; (2) return equipment, parts, or assemblies to the manufacturers or to a manufacturer-approved repair station for repair or replacement; (3) purchase necessary parts, equipment or facilities including but not limited to the installation of fixed equipment and new facilities construction; (4) contract out any work when the Company's facilities, equipment or personnel are not sufficient or available or where employees covered by this Agreement do not have the experience and ability to satisfactorily perform the work required or warranty agreements exist; (5) contract out any work for which the Company's cost exceeds the vendors charges, less material; (6) reserve the right to contract out other work with the approval of the Union.

A. The Union is recognized by the Company as its sole and exclusive collective bargaining agent for those employees of Alaska Airlines employed in Alaska and the United States of America, and composing the class and crafts of airline technicians and ground service employees, whose classifications are covered by this Agreement, and in the event the Company opens a new base such base shall be considered the same as a new department of the Company and shall come under the Agreement. / /

B. The right to hire, promote, discharge or discipline for cause and to maintain discipline and efficiency of employees is the sole responsibility of the Company, provided it is not in conflict with any paragraph in this Agreement. In addition, it is agreed upon and understood that the routes to be flown, the equipment to be used, the location of plants, hangars, facilities, stations, and offices; the scheduling of airplanes, the scheduling of overhaul, repair and servicing of equipment; and methods to be followed in the overhaul, repair and servicing of airplanes are the sole and exclusive function and responsibility of the Company.

C. It is the intent of the parties of this Agreement that the procedures herein shall serve as a means of peaceful settlement for all disputes that may arise between them. During the life of this Agreement the Company will not lock out any employee; the Union will not cause or permit its members to cause nor will any member of the Union take part in any sit-down, stay-in, or slow-down in any plant, hangar or facility of the Company, or in any curtailment or restriction of operation, overhaul, repair or servicing of airplane, or any work of the Company. The Union will not cause or permit its members to cause, nor will any member of the Union take part in any strike or stoppage of any of the Company's operations, or picket any of the Company plants or premises until the bargaining procedures outlined in this Agreement and provided for in the Railway Labor Act have been exhausted; and in no case where a grievance or dispute comes under the jurisdiction of the System Board of Adjustment as provided for herein. The Company reserves the right to discipline any employee taking part in any violation of this provision of the Agreement.

D. No employee covered by this Agreement shall in any way cause malicious damage to either the property or the reputation of the Company. Any such action shall be cause for immediate discharge. The Union agrees that it will cooperate in preventing such actions.

A. Lead Inspector

The work of a Lead Inspector will consist of supervising, leading and directing the work of other Inspectors and performing such inspection work as may be required, including handling Company paperwork and FAA liaison. A Lead Inspector must have a valid A & P license and have had at least six (6) years of aircraft experience. Whenever more than three (3) A&P Inspectors are assigned to a shift, one shall be lead.

B. Inspector

The work of an Inspector will consist of the overall inspection of Company aircraft (including powerplant) in connection with minor or major repairs and/or overhaul at any point of the Company's system. The work of an Inspector may also include the inspection of materials, parts and sub-assemblies as necessary. Inspectors must be capable of performing the inspection work assigned to the satisfaction of the Company and must hold such licenses as are required by the Company to fulfill their duties as Inspectors. Persons employed as inspectors shall have had at least six (6) years experience on aircraft, and shall have had inspectional experience. When it is necessary to temporarily upgrade to the classification of inspector, the senior qualified technician shall be upgraded. A lead technician shall not be eligible for such appointments unless no qualified technicians are present or the lead who is present is not required by the minimum set forth in Article 5.D. and E. For example, if only two (2) technicians are on duty, one may be a lead although not required; he shall perform the inspection function. With two (2) or more leads on duty with fifteen (15) or less technicians, the leads may be assigned to perform the inspections functions.

C. The Lead will be a working member of the group. The work of the Lead shall consist of all of the duties and responsibilities of the working members of that group. In addition, the Lead is tasked with leading, directing and approving the work of the other members of the group including, but not limited to, assigning tasks to individual members of the group, interfacing between the supervisors and/or managers and the group members, coordinating with production control and the maintenance coordinator(s), providing technical support and advice to the group members, coordinating with management on staffing and overtime, checking and updating progress on tasks and ready times, researching technical issues for the group and expediting parts availability. If requested, Leads will conduct periodic reviews of employees during probation periods. I n addition to the description in this paragraph, the Lead position for each of the classifications will be further defined below.

D. Lead Aircraft Technician

A Lead Aircraft Technician shall be a licensed A & P Technician who, as a working member of the group is charged with the responsibility of leading, directing and approving the work of other employees not exceeding a group totaling more than fifteen (15) other employees. At all locations where five (5) or more aircraft technicians are assigned to work on the same shift within a bid location or shop, one shall be a lead. / /

E. Lead Avionics Technician

A Lead Avionics Technician shall hold a valid General Radio-Telephone Operators License and, as a working member of the group, shall be charged with the responsibility of leading, directing, and approving the work of avionics technicians not exceeding a group totaling more than fifteen (15) other avionics technicians. Where five (5) or more avionics technicians are assigned to work on a shift, one (1) shall be lead.

F. Lead Automotive Technician

A Lead Automotive Technician shall be a journeyman in the automotive trade and, as a working member of the group, shall be charged with the responsibility of leading, directing, and approving the work of automotive technicians not exceeding a group totaling more than fifteen (15) other automotive technicians. Where five (5) or more automotive technicians are assigned to work on a shift, one (1) shall be lead.

G. Lead Facilities Technician

A Lead Facilities Technician shall be a journeyman in one of the building trades, who, as a working member of the group, is charged with the responsibility of leading, directing and approving the work of facilities technicians not exceeding a group totaling more than fifteen (15) facilities technicians. At all locations where five (5) or more facilities technicians are assigned to work on a shift, one (1) shall be a lead.

H. Lead Aircraft Machinist

A Lead Aircraft Machinist shall be a journeyman machinist who, as a working member of the group, is charged with the responsibility of leading, directing and approving the work of aircraft machinists not exceeding a group totaling more than fifteen (15) other aircraft machinists. At all locations where five (5) or more aircraft machinists are assigned to work on the same shift within a bid location or shop, one (1) shall be a lead.

I. Technician

The work of Technicians shall consist of any and all work generally performed by the Company in and about shops, maintenance bases, Company buildings or equipment. In addition, when performed by the Company and not contracted to an outside contractor, the work of a Technician shall include the dismantling, repairing, assembling and erecting of machinery and mechanical devices and automotive and building maintenance and repair work. Technicians must be capable of performing their work satisfactorily and hold valid licenses as required by Federal Law for specific jobs. Technicians may be required to inspect and test parts in the shop to which they are assigned and the work they perform. The above is not a classification, simply a description of the basic functions of the various technician classifications (i.e., Avionics, Aircraft, Facilities and Automotive).

1. Aircraft Technician

Aircraft Technicians’ work shall consist of all phases of repair and maintenance of aircraft and the dismantling, repairing, assembly, and erection of machinery and mechanical devices and may also include minor building maintenance, automotive repair, and the exchange replacement of electronics or electrical components. Technicians entering the classification of Aircraft Technician shall hold valid A & P licenses; this requirement may be waived by the Company.

2. Avionics Technician

The work of Avionics Technician shall consist of the repair and maintenance of aircraft electrical and electronic equipment, maintenance of the work area. Technicians entering the classification shall possess a valid General Radio-Telephone Operators License or, acquire them within two (2) years if the Company waives the entry requirement.

3. Facilities Technician

The work of a Facilities Technician shall consist of the alteration, maintenance, modification and repair of Company facilities. A Facilities Technician shall have at least 30 months experience working in an applicable building trade, a working knowledge and capability to perform a wide range of construction and repair work, and the ability to secure all necessary licenses within a six (6) month period.

4. Automotive Technician

The work of an Automotive Technician shall consist of all work generally recognized as that of an automotive technician including the maintenance, service, repair, assembly, erection and overhaul of automotive and other ground handling equipment including passenger loading bridges.

5. Aircraft Machinist

The work of an Aircraft Machinist shall consist of all phases of machining, including reading of blueprints, layout and setup; may also consist of all phases of repair and maintenance of aircraft; and the dismantling, repairing, assembly, and erection of machinery and mechanical devices. A minimum of two (2) years experience on machining of aircraft parts and tooling is required as a qualification. Machinists shall also hold a valid airframe and powerplant license. However, this requirement may be waived by the Company.

J. Lead Fleet Service

A Lead Fleet Service employee shall, as a working member of the group, be responsible for leading, directing, and approving the work of other Fleet Service employees not exceeding a group totaling more than fifteen (15) other Fleet Service employees. Where five (5) or more Fleet Service employees are assigned to work on a shift, one (1) shall be a lead. In addition, a Lead may perform coordinating functions which will include coordinating the daily workload on the shift with those employees scheduled on duty for that shift. He will coordinate with a manager or supervisor on coverage and overtime assignments. Assignment of overtime will be at the specific direction and be the sole responsibility of the supervisor or manager. These Leads will not perform management functions such as applying discipline or signing of timecards.

K. Fleet Service

The work of Fleet Service shall include the cleaning and polishing of the interior of the aircraft, including the cabin, buffets, lavatories, and cockpit area. Cleaning and arranging, in the aircraft, passenger service equipment. In addition they may be assigned other general cleaning and preparation of passenger service items, including changing of seat covers and rug sections, servicing the aircraft lavatory and water systems. It is understood by the parties that for purposes of the NMB certification of this class and craft the word Fleet Service is synonymous with the word Cleaners.

L. Janitor

The Company may, at its option, either utilize janitors or subcontract the function. At locations where the Company elects to hire Janitors such classifications will come under this Agreement. The Janitor work will consist of cleaning the inside and outside of buildings and hangars, hangar equipment, sweeping floors and other work generally performed by janitors.

The work of a Technician Helper shall include the washing, paint stripping, cleaning or polishing of the interior and/or exterior of an aircraft, aircraft parts, engine or engine parts, ramp, shop and hangar equipment and the performing of miscellaneous unskilled duties in and about shops, hangars, and buildings, and operating and servicing the equipment used in the performance of their work.

1. Supervisors and higher ranking officials of the Company shall not be permitted to perform work on an hourly rated job covered by this Agreement except in emergencies or instructions or training of employees. It is agreed that the servicing of late flights where qualified personnel are not available and the performance of necessary work caused by unusual circumstances at line service stations in order to maintain flight schedules, or the protection of Company property against the elements may be considered an emergency. Each emergency will be reported in writing to the local union shop representative or local airline/area representative when there is no shop representative, upon receipt by the Company of a request in writing. The Company will respond in writing within twenty-four (24) hours of the written request, excluding Saturdays and Sundays.

O. All employees shall pass an applicable trade test as a condition of advancement into any bid classification of Lead Technician or above. The current trade tests as mutually agreed upon by the Union and the Company shall be applicable to all Company locations. A minimum passing grade is 70%. Prior to implementation, any changes in the current tests shall be agreed to by Aircraft Mechanics Fraternal Association and the Locals for local equipment variations.

P. Employees may request and take the tests in advance of bidding on a job, however, should the test be changed prior to their bidding, they shall pass the revised test prior to being awarded a bid.

Q. Employees under this agreement may be cross-utilized in other classifications for which they are qualified provided they are paid their normal wage or the wage of the classification in which they are working, whichever is greater. (see Article 23.G.)

A. Work Day

1. Employees at all locations will be assigned a specific shift and days off schedule. The required schedule shall be established by the Company. Selection of shifts and days off shall be by classification seniority. Eight (8) consecutive hours of service exclusive of meal periods will constitute a work shift, except as otherwise specifically provided for herein.

B. Work Week

1. A standard work week consists of a seven (7) day period with five (5) consecutive work days and two consecutive days off and two (2) consecutive days off and shall commence with the first day of work following the scheduled days off, except where it is necessary to rotate scheduled days off in order to repeat the schedule.

C. All Employees covered by this Agreement scheduled to work five (5) hours or more will be scheduled to have a meal period of not less than one-half (1/2) hour, nor more than one (1) hour.

1. If the lunch period is one-half (1/2) hour, it will be scheduled within one (1) hour before and one (1) hour after the middle of the shift.

2. If the lunch period is one (1) hour, it will be scheduled within one and one-half (1-1/2) hours before or one and one-half (1-1/2) hours after the middle of the shift.

3. a. Late Lunch

If because of the operation, the employee receives his lunch after the period as set forth above, he will be entitled to straight time pay, not to exceed thirty (30) minutes, for the late lunch period, and will be permitted to receive his full lunch period as soon as possible. The Company may direct the employee to leave work thirty (30) minutes early, without loss of pay, in lieu of pay for the lunch period.

4. Eight (8) hours inclusive of meal period not to exceed thirty (30) minutes, shall constitute a full day of work on the graveyard or third shift which shall be defined as any shift commencing subsequent to 9:00 p.m. and prior to 5:00 a.m.

D. A bid location is any work group established by the Company wherein the employees perform a similar function (e.g., Hangar, Engine Build-up, Line Maintenance, Line Ramp, Air Freight, etc.). All employees will be assigned a specific bid location.

E. Days off for Maintenance / / employees in Seattle shall be either fixed or rotated depending upon the desire of the majority of the employees affected. Each shift within a bid location may petition the Airline Contract Committee in January or July to determine whether they shall be fixed or rotated. Upon receipt of a petition from the employees, the Airline Contract Committee will conduct a vote to determine the desire of the majority of the employees within the bid location on each shift petitioned. Rotated days off shall be rotated each six (6) weeks with the change occurring midnight Sunday. All other employees under this Agreement, except for those work groups listed above, shall be on fixed shifts/days off.

F. For realignment of the work force due to changes in starting times, number of employees on a shift, or days off, the following procedure will apply:

A notice of shift alignment shall be posted a minimum of fourteen (14) calendar days for the purpose of bidding in advance of any change of the number of employees on a shift; shift starting time of more than two (2) hours; or days off. All days off, shifts and starting times will be posted for the employees in the bid location as follows: The bulletin shall be posted a minimum of seven (7) calendar days which will be utilized for bidding purposes, and the results of the bidding will be posted a minimum of seven (7) calendar days prior to placing the schedule into effect. If there are insufficient bidders to complete the required schedule, the junior employees in the bid location shall be assigned. The new schedule shall not be placed into effect and employees shall not be required to change days off or shifts without such notice. If fourteen (14) days notice of shift or days off change is given and this results in an employee working more than five (5) consecutive days or more than one (1) shift within a twenty-four (24) hour period, such excess days and/or shifts shall be paid at the straight time rate.

G. 1. All shifts and days off will be rebid as set forth in F. above at least every one hundred eighty-five (185) calendar days from the effective date of the last rebid. Except, only shifts will be rebid at any bid location where rotating days off exist on all shifts. No employee covered by this Agreement shall be denied the right to select his shift and days off except as otherwise provided for in this Article.

2. All bidding provisions of these Paragraphs E., F. and G. apply only to days off and shifts and specifically do not provide for change in a bid location or filling of a vacancy.

H. When employees realign as set forth in E., F. and G. above, the bidding may be restricted so that there is an even distribution of probationary employees on each shift, in a classification at a bid location, at a station, for the first sixty (60) calendar days during their probationary period. "Probationary" shall be defined as set forth in Article 9, Paragraph C.

I. 1. The Company may, from time to time, establish or eliminate bid locations. The Union may request in writing, the reason(s) for changes in bid locations. The Company will respond in writing within three (3) days excluding Saturday, Sunday and holidays.

2. Employees affected by the elimination of a bid location which does not result in a reduction of employees at the station, will be permitted to exercise their seniority in their classification(s) at their station.

3. When a new bid location is established by the Company, the positions within it will be bulletined as set forth in Article 10, Paragraph B. Only bids from employees at the new bid location's station and currently within the classification bulletined will be accepted unless there is an increase of positions within the classification at the station. If there is an increase, the increased position(s) will be available for bid systemwide.

J. For shift differential purposes, the three shifts shall be defined as follows:

First Shift 0500 - 1159 Local Time

Second Shift 1200 - 2059 Local Time

Third Shift 2100 - 0459 Local Time

K. The starting time for shifts shall be established in accordance with the needs of the services at each station. A split shift may be scheduled when the work load at a line station is not sufficient to warrant more than one shift, yet does not fall within any eight consecutive hour periods.

L. Except as may be provided in Paragraph K. above or Article 7.D., no full-time employee will be called to work or required to report to work for less than eight (8) hours of work or pay therefore, except when recalled on overtime. All employees in the service of the Company will be provided with a minimum of forty (40) hours of work each week, except for part-time employees:

M. Part-Time Employees

1. Part-time employees can be utilized for overtime coverage.

2. Part-time employees may be placed in permanent full time positions by preference bidding or may be assigned full time temporarily. Preference bids will be used to fill vacancies to and from full time and part time positions. Movement between full time and part time positions within a bid location, will also be allowed on a shift realignment, however, such movement will not require use of a preference bid.

3. Part-time employees may be utilized in any classification covered by this agreement for holiday coverage.

4. Full-time employees shall have the right to replace part-time positions in the event of lay-off but shall not be required to do so.

5. Part-time employees shall accrue seniority as if they worked full-time and shall accrue all benefits the same as full-time based upon number of hours worked.

6. Part-time employees may be utilized in any classification covered by this Agreement.

7. No more than 30% of the employees on the system in each classification covered by this Agreement may be employed for less than forty (40) hours per week. A standard work week for part-time employees will consist of a seven (7) consecutive day period with a minimum of two (2) consecutive days off. Part-time employees will be scheduled to work no less than sixteen (16) hours per week.

8. Leads and part-time employees shall be included in the classification in determining the allowable number of part-time employees. The calculation shall be made using whole numbers only.

N. The regular starting and stopping time for work shifts, days off, will be scheduled and posted at all locations. The notice will include the effective date of the last rebid.

O. All employees covered by this Agreement will be granted a ten (10) minute rest period during the first half of a work shift and a ten (10) minute rest period during the second half of a work shift without loss of time, for the purpose of relaxation. The time of the rest periods will be regularly scheduled insofar as possible and posted by the Company at all locations.

P. Notwithstanding other seniority provisions within the Agreement, during each shift realignment, each of the three (3) members of the Airline Contract Committee (consisting of the Airline Representative and two [2] elected members from the Association) at Seattle, Oakland and Anchorage will, if there are sufficient positions, be assigned to day shift by displacing the most junior employee on day shift at his bid location in his classification. The employee thus displaced will be permitted to exercise his seniority in accordance with this Agreement. The Airline Representative will at his option, if a position is available, be allowed to displace the most junior employee in his classification on day shift with a Saturday and/or Sunday off for the purposes of conducting Union business.

A. Overtime

Overtime rate for overtime shall be time and one-half (1 ½) and shall be paid for all work performed in excess of eight (8) hours in any one twenty-four (24) hour period commencing with the scheduled starting time either in advance of or after regularly scheduled hours. The hours of the working day shall be divided into ten (10) periods of six (6) minutes each for the purpose of computing the pay of the employees. For employees assigned to ten (10) hour shifts, an overtime rate of time and one-half (1 ½ ) shall be paid for hours in excess of ten (10) hours up to fourteen (14 hours).

B. Double Time

1. For employees assigned to eight (8) hour shifts, the rate of double time (2X) shall be paid for all time worked in excess of twelve (12) hours in any twenty-four (24) hour period. For double time (2X) purposes the twenty-four (24) hour period shall begin with the starting time of the employee's regularly assigned shift and shall continue until the employee has completed his tour of duty and had at least eight and one-half (8-1/2) consecutive hours of rest. For the purpose of achieving the eight and one-half (8-1/2) hour rest period, an employee's release or next reporting time may be altered by direction of the Company prior to the beginning of the rest period. However, he shall receive his regular pay starting with the beginning of his regular shift.

2. For employees assigned to eight (8) hour shifts, the first scheduled day off worked shall be at overtime (time and one-half) for any hours in excess of forty (40) regular hours during the work week for the first eight (8) hours worked, at double time (2X) thereafter and the second day off worked shall be double time (2X).

All employees in the classification at the bid location may be utilized at the overtime rate (1-1/2X) before utilizing employees at the double time (2X) rate.

D. On rotating and relief shifts, work in excess of eight (8) hours in any twenty-four (24) hour period as a result of rotation of shifts shall be paid for at straight time rates for the second eight (8) hours or portion thereof worked during such twenty-four (24) hour period, provided that not less than seven and one-half (7-1/2) hours shall have elapsed between the quitting time of the first shift and the starting time of the second shift, if it has not, the applicable overtime rate shall apply. For the purpose of achieving this seven and one-half (7-1/2) hour rest period, an employee's release or next reporting time may be altered by the Company.

E. On fixed shift operations, if as a result of a shift change by the Company, an employee does not receive seven (7) hours of rest, the applicable overtime rate will apply until such rest is obtained, unless the employee changes shifts/days off and his seniority would have allowed him to remain on his existing shift, no overtime will apply. To obtain the seven (7) hours rest the Company may adjust the employee's release or next reporting time. This paragraph does not apply to the schedule changes as set forth in Article 5.E.

F. 1. When an employee covered by this Agreement has been relieved for the day and is recalled to work, he will be paid not less than two (2) hours pay at the applicable overtime rate, unless the employee agrees to work less than two (2) hours.

2. When an employee covered by this Agreement works on one of his two regularly scheduled days off, he will be paid not less than four (4) hours pay at the overtime rate applicable unless the employee elects to work less than four (4) hours.

G. 1. Employees held in continuous service for more than three and one-half (3-1/2) hours before or after their regular working hours, will not be required to work more than three and one-half (3-1/2) hours without being granted a lunch period and such employees will then be allowed a thirty (30) minute paid lunch period.

2. Employee(s) held in continuous service more than four (4) hours after the first lunch period in F.1. above, will be granted an additional paid lunch period of thirty (30) minutes and an additional lunch period of thirty (30) minutes for each succeeding four (4) hours.

A list of volunteers shall be maintained by classification / / seniority date, for each shift and bid location. Overtime will be offered to qualified volunteers in the classification who have the ability to perform the work, by classification seniority. If an insufficient number of employees accept the overtime, the Company will award the overtime to the required number of employees from the employees on the volunteer list in reverse seniority. Once an employee posts his name, it will remain current until he removes it. An employee may add or delete his name at any time, except that he may not remove his name if it is on the current list and he has been selected for overtime.

A list of volunteers shall be maintained by basic classification / / seniority date, for each shift and bid location. Overtime will be offered to qualified volunteers who have the ability to perform the work, by basic classification seniority. If an insufficient number of employees accept the overtime, the Company will award the overtime to the required number of employees from the employees on the volunteer list in reverse seniority. The Leads of each classification will be combined with their basic classification for distribution of overtime. Example: Lead Fleet Service and Fleet Service classifications at the bid location will be combined on one list in determining who should receive the voluntary overtime which will then be assigned by basic classification seniority. Lead overtime is from the same combined group, going to the most senior qualified volunteer by basic classification seniority. Once an employee posts his name, it will remain current until he removes it. An employee may add or delete his name at any time, except that he may not remove his name if it is on the current list and he has been selected for overtime.

2. Employees on lay off status and not employed by the Company in another capacity may advise the Company that they are available to be called in for work when volunteers for overtime are not available. The Company may, at its option, utilize these laid off volunteers to cover mandatory overtime at their normal straight time rate without regard to any minimum recall provisions or resumption of fringe benefits except for sick leave and vacation. No payroll deductions will apply outside of taxes and F.I.C.A.

3. Overtime shall be offered/awarded as follows:

a. Post-Shift:

Overtime work at the end of the shift anticipated to be four (4) hours or less shall be offered/awarded in accordance with paragraph H. above to those volunteering at the bid location on that shift, or to the individual performing the actual work during the shift, if it is impractical to break the continuity of work.

b. Pre-Shift:

Overtime work prior to the beginning of a shift, anticipated to be four (4) hours or less, shall be offered/awarded in accordance with paragraph H. above by call-in of the volunteers on that shift in the bid location required.

c. Entire Shift:

Overtime for an entire shift, anticipated to be more than four (4) hours, shall be offered/awarded in accordance with paragraph H. above to those employees on their day off who would normally work that shift. In the event none can be contacted, any qualified employee from another shift on their day off who is on the volunteer list for the shift requiring the overtime shall be awarded/offered the overtime by seniority. An employee from another shift may be bypassed if it would result in an insufficient rest situation. If the overtime is not filled, it may be offered/awarded in accordance with 3.a. and b. above.

4. When the Company is aware of a requirement for overtime two or more hours before the end of a shift, employees should be given at least two (2) hours notice of the contemplated overtime.

5. In the event there are insufficient volunteers available to work the overtime, an emergency may be declared by the company. Such emergency shall be stated in writing prior to the employee beginning the overtime assignment. The company may assign any qualified employee to perform the work utilizing the order as set forth below in inverse seniority order:

6. In the event an employee is by-passed / / for overtime, he will be given the opportunity to work overtime, at the applicable rate of pay, in a like amount as he originally would have received, at the time of his choice / / during the next thirty (30) calendar days by coordinating the scheduling with his supervisor at least twenty-four (24) hours in advance, provided it does not conflict with rest and hours of work provisions and result in any penalties to the Company beyond what he would have originally received.

I. No overtime shall be worked except by direction of the proper supervisory personnel of the Company, or his designee.

J. There shall be no pyramiding of the overtime rates provided for in this Agreement and no employee shall receive more than double the straight time rate for any hours worked.

K. An employee who is required to report to work after traveling will have his travel time considered as time worked and will be paid the overtime rate applicable, except employees assigned to Prudhoe Bay.

A. Employees covered by this Agreement will observe the following holidays on the actual day, or at the Company's option, on the day designated as such by the Federal Government: New Year's Day, Washington's Birthday, Memorial Day, Independence Day, Labor Day, Veteran's Day, Thanksgiving Day, the day after Thanksgiving Day, Christmas Day, and Employee's Birthday. Any employee whose birthday falls on a holiday will observe his birthday on the day after the holiday. Any employee whose birthday falls on February 29, will observe his birthday on February 28, except during the leap year. If an employee does not wish his birthday to be a holiday, he may, with the mutual agreement of his supervisor, select another scheduled work day as a holiday within that calendar year. He shall notify his supervisor of his desire to utilize an alternate day no later than seven (7) days prior to his birthday.

B. In order to provide time off on holidays, the Company will no later than seven (7) calendar days in advance, post a sign up sheet requesting the required number of volunteers to not work on the holiday. The sign up sheet shall remain posted for a minimum of three calendar days and all volunteers accepted and others assigned to not work on a holiday shall be notified at least three (3) calendar days in advance. Volunteers shall be selected on the basis of their classification seniority commencing with those employees who would have worked on the shift and day were it not a holiday. If no volunteers are available, those not necessary to fulfill the needs will be selected commencing with the employee with the lowest classification seniority who would normally work on the shift and day not requiring coverage.

C. 1. Full time employees will be compensated with eight (8) hours pay at the straight time rate for each day observed as a holiday. Any employee who works on a day observed as a holiday will be compensated at the double (2) time rate for the first eight (8) hours worked except when the work is immediately preceding or following a regular shift which is not on the holiday, in which case it shall be at the applicable overtime rate. Employees shall be compensated at the triple (3) time rate for all hours worked in excess of eight (8) hours on a holiday and for all hours worked on a holiday which falls on a regular day off.

4. Part-time employees observing the holiday shall receive the straight time rate for the hours they were scheduled to work on the holiday. If a holiday falls on a part-time employees day off, such part-time employee shall be paid holiday pay at the straight time rate for the daily average number of hours the employee was scheduled to work during the week. To calculate this daily average, the employee’s total scheduled hours during the work week will be divided by five (5). Part-time employees who work on a day observed as a holiday will be compensated at the double (2) time rate for all hours worked for the first eight (8) hours. After eight (8) hours the employee will be compensated at the triple (3) time rate on a holiday.

5. Any employee scheduled to work on any of the foregoing holidays who fails to report shall be subject to immediate dismissal, unless such employee was unable to work because of illness.

D. When an employee covered by this Agreement is called out to work on a holiday, he will be paid not less than four (4) hours pay at the applicable overtime rate unless the employee elects to work less than four (4) hours. Holiday work may be scheduled for less than four (4) hours but an employee may not be paid for less than four (4) hours work at the applicable overtime rate in addition to holiday pay.

E. A holiday which falls during an employees vacation period will be compensated as a holiday. The employees vacation credits will not be charged for the holiday, however, his vacation period will not be extended because of the reduced number of vacation days charged.

A. When employees covered by this Agreement are required to engage in field or emergency work away from their base station to restore airplanes or equipment to service, they shall be paid for such work on the same basis as at their base station.

B. Upon completion of a field or emergency work assignment an employee shall return to his home station in accordance with the orders received at the time he left his home station, or in accordance with the orders he received from the person to whom he was ordered to report in the field, and shall be compensated for the return trip in accordance with the provisions of paragraph A. above.

C. All time spent in traveling or waiting in connection with field service will be paid at the applicable straight time and overtime rates of pay. If such travel is interrupted or delayed for any reason and the employee is released by an agent of the Company for a period of five (5) consecutive hours or more, he shall not be paid for the time released but in no event shall any employee receive less than eight (8) hours' pay at straight time rates for any twenty-four (24) hour period while away from his base station on emergency field service. When two (2) or more Technicians / / are assigned to a field service trip, the most senior qualified employee will be appointed as Lead if no Lead is available at the Station.

D. Each employee covered by this Agreement shall receive, when away from his regular base on regular or special duty, actual and reasonable expenses as defined in Systems Regulations. The employee shall be entitled to draw an expense advance to be accounted for in accordance with Company policy. The advance, however, is not to exceed the allowance for the estimated number of days he will be away from his home base. Employees will not be required to use their personal automobile for Company business.

E. When an employee is away from his home station on a field assignment he shall be paid straight time and overtime in accordance with the provisions of this Agreement but in no event shall he receive less than eight (8) hours pay for each day; provided, however, that the Company may schedule him to take his regular day off without compensation except for the reasonable and necessary expenses provided for in this Article.

F. An employee having completed a field assignment away from his base Station, beyond his regular shift, shall have at least eight (8) hours rest before being required to report for work. An employee having completed a field assignment shall not be paid less money, exclusive of expenses, then he would have received had he worked his regular shift at his home base.

G. When employees are required to engage in field or emergency work, their tool boxes, tools and luggage will be protected by the Company at a full dollar value against fire, theft or damage at base or bases or during shipment. / / The Company may require the valuation to be certified in advance of the employee departing.

H. Employees traveling or waiting in pay status are prohibited from partaking of alcoholic beverages.

I. Any employee covered by this Agreement required by properly designated Company authority to participate in test flights or to travel in connection with his job for all hours away from his base or station shall be covered by standard travel accident insurance policy with a death benefit of $100,000 at no cost to the employee. The Group Insurance beneficiary will apply unless the employee designates a beneficiary in a letter to the Personnel Office.

g. Unless released by the Manager/Supervisor in charge, field trip assigned personnel will stay with the task until it is completed.

2. Personnel desiring to be considered for Special Projects must indicate their preference by signing on one (1) or more of the four (4) volunteer lists: Major Structures, Avionics, A & P Base and A & P Line. The volunteer lists will be posted and maintained in classification seniority order at each station. Technicians will have the option to add or delete their names at any time prior to the selection process.

2) All other qualified volunteers

A. / / Company seniority of present employees will include total length of continuous service with the Company or any of its predecessor companies / /. Classification seniority shall be by work classification and shall accrue from the date of entering such classification after passing his probationary period as provided for in Article 9.C. or 10.D. The date of entering a classification shall be established as of the date the bid was awarded or the employee was hired. The work classifications to be recognized for seniority purposes shall be as ranked below:

1. Lead Inspector

2. Inspector

3. Lead Technician (Aircraft, Machinist, Avionics, Facilities, Automotive)

4. Technician (Aircraft, Machinist, Avionics, Facilities, Automotive)

5. Lead Fleet Service

6. Fleet Service

7. Technician Helper

8. Janitor

B. Classification seniority system-wide shall be recognized at all points where persons hereunder are employed, in all reductions of force and recall after layoff, in bidding for vacancies or new jobs, for preference of shift assignment when a vacancy occurs and in all promotion, layoff, or transfers involving classification covered by this Agreement.

C. 1. New employees shall be regarded as probationary employees for the first 1,040 hours worked during their employment. Prior to the completion of his probationary period, the Company may administer a written and/or practical trade test to help measure the probationary employee’s skills and abilities. The Company shall have the right to unilaterally terminate any employee during the probationary period.

2. If retained in the service of the Company after the probationary period, the names of such employees shall then be placed on the Seniority List in the order of the date of their original hiring. To decide the position of two or more employees on the Seniority List, whose hiring date or date of entering a classification is the same, the following procedure will be used in sequence as outlined:

a. Date of entering classification

b. Hiring date

c. Chronological age

3. Any employee who has had a break in service during his probationary period and who is re-employed within 365 days from the last day worked prior to his break in service will be credited with previous Company service in the classification and his seniority date will be adjusted by excluding the break in service time. All hours worked by a probationary employee in a temporary position will count towards completion of the probationary hours.

D. Seniority lists, showing the classification and company seniority of all employees covered by this Agreement are made a part of this Agreement, corrected to December 1 and June 1 will be posted by January 1 and July 1 of each year at all locations where employees covered by this Agreement are employed. Such lists will show employee's name and classification, seniority date and will be subject to correction upon protest, if complaint is filed within thirty (30) calendar days after the Local Contract Committee or Local designated Shop representative and the Company Supervisor have signed for receipt of the Seniority List. Protests shall be filed through the Local Contract Committee and directed to the Airline Representative and the Company Personnel Department. The Airline Representative and the Company shall meet within ten (10) calendar days of receipt of the protest resolve the protest and reply to the Local Contract Committee. If no protest is filed within the aforementioned thirty (30) calendar days, from the initial time the employee's name appears on a particular list, such list shall be presumed beyond question to be correct; and no protest, grievance suit, or other means shall thereafter be commenced or entertained to change said date for any employee unless a subsequent list alters his seniority date. The Company will supply two (2) copies of the Seniority List to each Airline Representative and one (1) copy to the AMFA Administrative Office.

E. 1. Employees promoted to positions within the Company not covered by the Agreement will retain and continue to accrue seniority in classifications from which promoted for a period of ninety (90) calendar days from the time of the promotion, during such time he shall have the option of returning to his former position under the Agreement. After completion of the aforementioned ninety (90) day period, he shall retain former seniority for a period not to exceed five (5) years on an accumulative basis. If during the aforementioned five (5) year period, he is laid off as a management employee, he will be permitted to exercise his retained seniority to bid a vacancy, or to displace the most junior employee in the highest classification in which he holds seniority at the location from which promoted. After the five (5) year period his name will be removed from all seniority lists.

F. Employees covered by this Agreement shall lose their seniority status and their names will be removed from the seniority list under the following conditions:

1. He quits or resigns.

2. He is discharged for cause.

3. He is absent from work for two (2) consecutive work days without properly notifying the Company for the reason of his absence and not then if a satisfactory reason is given for not so notifying the Company.

4. He does not inform the Company in writing or by telegraph of his intention to return to service within seven (7) calendar days of receipt of notice offering to re-employ him.

5. He does not return to the service of the Company on or before a date specified in the notice from the Company offering him re-employment which date shall not be prior to fifteen (15) calendar days after sending such notice. The date or re-employment may be earlier if mutually agreed by the employee accepting recall and the Company. However, this paragraph will not apply to work offers of less than ninety (90) calendar days.

6. All notices required to be sent under this section shall be sent by registered mail, return receipt requested, to the employee at the last address filed by him with the Personnel or Maintenance Department; provided however, there shall be no duty on the part of the Company to send a notice to a laid off employee unless said employee shall, when laid off, file his address with the Personnel or Maintenance Department of the Company and shall there-after promptly advise the Company of any change of address.

G. Any employee holding seniority in classifications higher than his present classification and failing to bid on a bulletined job in such higher classification for which he has previously qualified, shall lose all seniority in such classification, except, at no time shall an employee be compelled to bid on a vacancy at another station. The same shall apply if his bid is withdrawn prior to the bid award or failure to accept after the award. This provision may not apply for a period of six (6) months after an employee has been transferred to his present station if he receives an exemption from the local Airline Representative. The Airline Representative shall advise the Company in writing of such exemptions prior to the awarding of the bid. When an employee success-fully bids from a higher classification to a lower classification, he shall lose his seniority in all classifications which are rated higher than the one to which he has successfully bid.

H. Employees who have given long and faithful service in the employ of the Company and who, because of their age, have become unable to handle their normal assignments, will be given preference for such other available work as they are able to handle.

I. Employees successfully bidding on higher classifications shall retain and accrue seniority in classifications from which promoted.

J. In the event of a vacancy in one of the technician classifications (Aircraft, Machinist, Automotive, Avionics, Facilities) as set forth on the seniority lists as referenced in "D" above, those employees at that station having the proper qualifications whose names appear on the various other technician seniority lists shall be allowed to bid on that job before a new employee is hired into that vacancy. If an employee thereby fills such a vacancy, he will begin to accrue seniority on the appropriate seniority list and shall retain and continue to accrue seniority on his former seniority list unless the change is to a lower classification, and then he would lose seniority in the higher classification.

K. When it becomes necessary to reduce the number of employees in any classification covered by this Agreement, the Company will reduce the employees in that classification with the least seniority at the affected station in any given shop or bid location. In the event of the lay off of employees who have completed their probationary period, two (2) calendar weeks' notice shall be given by the Company, or pay in lieu thereof, with a copy of such notice furnished to the Local / / and to the AMFA Administrative Office. If employment is temporarily interrupted because of a strike or picketing of Company premises, an act of God, a national war emergency, revocation of the Company's operating certificate(s), or grounding of the carrier's aircraft by government order, the two week notice will not apply. The employee affected must within seven (7) calendar days give written notice to the Company and the Union exercising his seniority in the following manner or his name shall be stricken from all seniority lists.

1. He must displace the most junior employee in his classification in any bid location at his station.

2. If unable to exercise his seniority in his own station, he must further exercise his seniority by one of the options outlined below.

a. Displace the most junior employee at any station in his own classification on the System. However, in the event of a lay off involving forty (40) or more employees, the employees affected must displace the most junior employee in his own classification on the system. He shall have first rights to fill the first vacancy in his classification at the station where he was placed on layoff status.

b. Displace the most junior employee in any lower classification in which he holds seniority at his station.

c. Provided the employee is unable to exercise seniority in b. above, he may displace the most junior employee on the system in any lower classification in which he holds seniority.

d. Go on layoff status at the station where affected by a reduction in force, providing he has exercised seniority to fullest extent possible in any classification of technician or higher. An employee who is unable to exercise seniority in a technician classification and holding seniority in a lower classification may elect to go on a layoff status rather than exercise seniority in a lower classification, in which event he shall lose severance pay and seniority in all classifications lower than that of technician.

e. An employee electing to go on layoff status at his station may, at the time of layoff, designate the stations not available at the time of his furlough to which he will accept recall. Failure to accept recall at his home station or at any of the designated stations will cause him to lose his seniority in accordance with paragraph G. above.

f. Employees given layoff notice and accepting a layoff at their station will be required to inform the Company and the Union in writing if they will accept re-employment of less than ninety (90) calendar days. An employee will be allowed to change his intentions with another letter mailed prior to the mailing date of the letter from the Company offering re-employment.

3. An employee electing options b. or c. above shall retain and accrue seniority in all classifications from which laid off or displaced, but will be required to accept recall in his classification at the station from which he was laid off or displaced. An employee electing d. above shall accrue seniority in all classifications in which he retains seniority.

4. Employees electing to exercise the above options will not be permitted to displace a junior employee at some later date.

5. Employees laid off will continue to accrue seniority in all classifications from which laid off up to two (2) years provided he abides by Paragraph 2. above.

L. In the event of the geographical relocation in whole or in part of any of the work performed by any of the employees covered by this Agreement, the employees affected will have the option of following the work or exercising their seniority rights as provided for in Paragraph K. above. If, in the event of a geographical relocation, insufficient people transfer to such jobs, the remaining vacancies will be bulletined in accordance with the Agreement.

A. Employees under this Agreement who desire to move to another station, bid location, or classification will place a preference bid on file with the Company. The employee may specify part-time, full-time, shift and days off. An employee filing a preference bid for a position in which he holds seniority is not required to list any qualifications. The preference bid may be submitted at any time to the local manager or his designee at which time the bid will be time/dated and shall become effective five (5) days after the time/date.

1. Preference bids may be withdrawn at any time. The procedure for withdrawal will be the same as for filing in A. above. The withdrawal will be effective immediately when submitted to the local manager or his designee, at which time the withdrawal will be time/dated. Employees with bids on file must renew them by January 15 of each year to keep them valid. If an employee refuses to accept a preference bid award, he will not be awarded another preference bid for a period of six (6) months.

2. Preference bids shall be utilized for bidding station to station (e.g., Anchorage Technician to Seattle Technician, Anchorage Technician Helper to Seattle Technician); within same station between classifications (e.g., Seattle Technician Helper to Seattle Technician); between bid locations within the same classification at the station (e.g., Seattle Hangar to Seattle Line); and from furlough to a vacancy. Preference bids will be used to fill vacancies to and from full time and part time positions. Movement between full time and part time positions within a bid location, will also be allowed on a shift realignment, however, such movement will not require use of a preference bid. Preference bids shall not be used for bidding days off, shifts or starting times within a bid location.

3. If an employee is not awarded an upgrade to a higher classification due to a lack of qualifications (not seniority), the company shall, within seven (7) days of the award, give the reason(s) in writing to the employee not receiving the award.

4. Vacancies projected to be ninety (90) days or longer in the classifications covered by this Agreement shall be awarded to those employees who have a valid preference bid on file for the vacancy.

5. "Vacancy" for purpose of this Article 10 shall be defined as an open position established by the Company which resulted from either an employee leaving a bid location or an increase in the number of employees at a bid location.

6. New employees may not submit preference bids during their probationary period / /.

7. Preference bids shall be made out in triplicate, on a standard form supplied by the Company, signed by the employee, time-stamped and initialed by the receiving Company representative. The original of the preference bid and the duplicate will be retained by the Company, the triplicate retained by the employee. The employee may give a copy to his local Airline Representative. If the Union questions a bid award, it may review all preference bids on file for that position.

8. No bid on file shall be altered in any way. Changes shall be made by submitting a new bid.

9. If an employee is, on the same day, awarded two (2) or more awards by preference bid and accepts a vacancy and thereby rejects other bid awards, he will not be restricted from filing additional preference bids as set forth in A.1., above.

10. Within ten (10) days, the Company shall post at each job location a notification showing the name and seniority date of the employee awarded the preference bid. The award shall remain posted for five (5) days.

B. All vacancies in classifications covered by this Agreement at any new station, or classifications not currently utilized at a station, shall be bulletined at all stations where employees covered by this Agreement are employed. The bulletin shall state the number of vacancies to be filled, the classification of the job, the station, the qualifications for the job, duties to be performed, the place where bids are to be sent, and the last date on which they will be submitted. Such date will be a minimum of seven (7) days after the bulletin is posted. Any employee selected to fill such a vacancy shall be available to begin the assignment within the maximum of ten (10) days after being released from his job. An employee may, at his option, utilize earned vacation (excluding Article 13, paragraph C.5. to defer loss of pay during the ten (10) days). Employees who are on vacation when a job is bulletined will be allowed to bid on the position within three (3) days after their return to work.

C. Ability, plus classification seniority shall govern when filling vacancies.

D. 1. An employee who does not hold seniority in the classification or who does hold seniority but has not demonstrated his ability to perform the work on the present type of equipment or present methods of work will be permitted to hold the job for a minimum of 120 hours worked and no more than 480 hours worked on a trial basis in order to demonstrate his ability to perform the work required by the job. Classification seniority shall not accrue for employees filling temporary vacancies pursuant to Article 10.G. During such period if the employee is unable to demonstrate his ability to perform the work required by the job, he may be returned to his previous assignment but he shall not, for a period of six (6) months be permitted to bid for vacancy in the same or a higher classification of work in which he was unable to demonstrate his ability; provided, however, that the return to his former station shall be without expense to the Company except that the Company will furnish NRSA air transportation on its system for the employee and his immediate family to the extent permitted by law, and the employee will be allowed a reasonable period from the time he is relieved of his duties until he is required to report for work at this previous station established as aforementioned.

2. A successful bidder entering into a classification, whose employment in that classification is interrupted because of reasons other than an inability to demonstrate the "ability to perform the work," as provided in paragraph D.1., will retain, but not continue to accrue this classification seniority for a period of eighteen (18) months. However, such seniority accrual will not be awarded until he has successfully completed the accumulative 480 hours worked for this trial period, at which time his classification seniority will be adjusted to reflect all hours worked.

E. During the interim required to fill a vacancy, the Company may select an employee to fill the vacancy temporarily. Employees temporarily transferred from their regular work to the work of any other classification covered by this Agreement shall receive their regular rate of pay or the minimum rate of the classification, whichever is higher, for performing such work.

F. In the case of vacancies not expected to exceed ninety (90) calendar days or vacancies of less than ninety (90) calendar days when an employee will not accept recall as provided in Article 19.F., the Company may select an employee to fill this vacancy on a temporary basis. The selection will be based on seniority and ability insofar as practical. At the end of ninety (90) calendar days the vacancy will be awarded in accordance with Paragraph A.4. above.

G. An employee under this Agreement assigned to a temporary job under Paragraphs E. and F. of this Article shall, upon such discontinuance of such temporary job, be returned to the job in his former classification and bid location that his seniority entitles him.

H. In the event a vacancy in a classification covered by this Agreement exists at any location on the Company's system and no qualified employees bid, the Company may, at its discretion, hire a new employee or offer the position to any existing employee.

I. When an employee has been transferred (not furloughed) or hired to fill a vacancy, he shall not be entitled to receive an award of a preference bid to a different station for a six (6) month period, unless he is bidding into a higher classification or a newly opened station.

A. All Leaves of Absence shall be without pay.

B. All requests for Leave of Absence must be made through employee's immediate supervisor. After his initial probation period, Leave may be granted upon written request, such request being made at least fifteen (15) calendar days prior to commencement of desired Leave, except in an emergency. An employee on Leave of Absence (LOA) desiring to return prior to the expiration of such LOA must give 14 days written notice and may return with Company approval.

C. Where a justifiable reason exists and requirements of the service will permit, an employee shall be granted a Leave of Absence in writing for a period not in excess of ninety (90) days. Under such Leaves the employee shall retain and continue to accrue seniority. Copies of the approval shall be forwarded to the Personnel Department and the Airline Representative of the Union. Such Leaves may be extended for additional periods not to exceed thirty (30) days when approved in writing by both the appropriate supervisor and the Airline Representative. During such extension the employee will retain, but not continue to accrue seniority except where the Leave of Absence has been granted because of health, injury, or special assignment by the Company, in which case seniority shall accrue during the entire period of the Leave. No Leave for sickness or injury may exceed a total continuous period of five (5) years. Military, Maternity and Medical Leave shall be excluded from the ninety (90) day limitation as set forth above.

D. Maternity Leaves of Absence will be granted for pregnancy. Employees not in the public eye will be allowed to work through their seventh (7) month and may be allowed to work further with the Company's and the Employee's physician's consent. Employees who are required by their physicians not to work will be considered on Medical Leave of Absence during pregnancy. Employees who are granted Leave will be required to return to work within sixty (60) days after the birth of the child, or of a miscarriage, unless an extension is granted. Said extensions may not exceed an additional thirty (30) days. At the conclusion of her Leave the employee will be returned to her former position unless it has ceased to exist or is filled by a more senior employee who has exercised displacement rights, in which case the employee will exercise her seniority in accordance with the terms of the Agreement. Employees who are granted maternity leave shall retain but not accrue seniority for the period of her Leave in excess of ninety (90) days.

E. When more than one employee requests Leave of Absence over the same period of time and the reasons for requesting the Leaves are similar, company seniority shall apply. Once granted, the leave of absence will not be rescinded due to a request by a more senior employee.

F. The Company and the Union will abide by the Selective Service Act of 1950 as amended for any employees who serve in Active and Reserve Armed Forces.

G. 1. Employees elected to positions in the service of the Government of the United States or any political subdivision thereof, shall be granted an indefinite Leave of Absence by the Company. An employee on Leave of Absence for this purpose shall retain and continue to accrue seniority but shall have no other employee benefits. The employee will be compensated for any accrued vacation and will retain whatever sick and occupational injury leave he had at the time the Leave of Absence began. Thirty (30) days after the expiration of his term of Government office, the employee shall report to work or forfeit his seniority.

2. Employees accepting full time employment with the Union as representatives of employees covered by this Agreement shall be granted an indefinite Leave of Absence by the Company. Any employee on Leave of Absence for this purpose shall retain and continue to accrue seniority and other employee benefits as provided herein.

The employee will continue to receive pass privileges, as provided for all other employees covered by the Agreement.

The employee will be permitted to continue in the group hospitalization, dental and life insurance programs providing the employee reimburses the Company for the actual premium cost.

The employee will retain all accrued sick and occupational injury time which he has in accrual at the commencement of the Leave of Absence.

The employee will be permitted to continue in the Pension Plan and the following shall apply:

a. Seniority for vesting purposes shall continue.

b. The employee will be permitted to contribute to the Plan on a yearly basis in an amount which would continue his benefits at the same rate as if he were not on Leave of Absence.

All vacation in accrual at the time of Leave of Absence commences will be paid to the employee, at his rate of pay, on a special check issued within two (2) weeks after the Leave commences. Upon the employee's return to the service of the Company, the employee will accrue vacation credit in accordance with his length of service.

Thirty calendar days after termination of the employment with the Union, the employee shall report for work or forfeit his seniority.

H. Employees covered by this Agreement shall, upon returning from an authorized Leave of Absence or extension thereof, be returned to the bid location from which they left and to the position (shift and days off) they held at the time they left on Leave of Absence. If there is a shift realignment during the time of the employee’s Leave of Absence, it is the obligation of the employee to keep his manager/supervisor informed of his preference for position(s). Failure to do so will result in the employee, upon return, being assigned to a position (shift and days off) until the next shift realignment.

I. Any employee covered by this Agreement who engages in gainful employment while on Leave of Absence without prior written permission from the Company and Union, except employees on special assignments in the interests of the Company, shall be deemed to have resigned from the Company's service and his name will be stricken from the seniority roster.

J. Employees who lose time due to being released from duty for authorized Association business will be paid for the time lost for which they had been scheduled to work and the Company will bill the Association for the time lost as a result of such release.

K. During periods of furlough, consideration will be given to requests for leaves of absence from senior employees, when granting such leaves will result in the retention of qualified junior employees.

A. Hours spent in training, or in traveling to and from training, shall be treated the same as hours spent at work for all purposes under the Agreement. Travel time will be based on published travel time plus one (1) hour.

B. / / Employee may, with Company approval, volunteer to attend non-required training without pay.

C. When any new equipment is put into service by the Company, employees covered by this Agreement will be given an opportunity to become familiar with such new equipment without change in classification or rate of pay; provided, however, that the Company may fix a reasonable time within which such employees must become familiar with such new equipment. All employees assigned to work in the ramp work area will receive proper training in ramp safety and the use of equipment they are required to operate as set forth in Company regulations.

D. The Company may train students and prospective employees on the job site if it does not prevent or take work away from regular employees.

A. The calendar year will be used to compute vacation allowances. Employees shall accrue vacation credits based on their length of service with the Company under this Agreement on the basis of the scale set forth in "B" below. Vacation credits shall be accrued for each month of employment prorated on the basis of the number of straight time hours worked. No vacation credits may be earned in other ways except that the Company may, at its discretion, approve personal leaves of absence up to eighty (80) hours per month with accrual for those hours not worked. Vacation credits will be compensated for at the employee's base rate of pay.

B. 1.

2. Employees who have completed thirty (30) years of service as of March 31, 1985, shall continue to accrue vacation at a rate of 23.33 hours per month.

3. No vacation shall be accrued in any calendar month that an employee is on layoff, work stoppage, personal leave of absence, extended military leave or suspension for a period exceeding fifteen (15) calendar days. Vacation shall continue to be accrued for periods of up to ninety (90) consecutive calendar days when an employee is absent due to sick leave, workmen's compensation, medical leave of absence, union leave of absence and special leaves granted by the Company in cases of death, serious illness or emergency conditions within an employee's immediate family or in the special interest of the Company; further provide that such periods will be treated individually and shall not be accrued as a total in regard to the ninety (90) days limitations.

4. Employees shall accrue no more than three (3) years annual vacation subject to the provisions of Paragraphs D.1. and D.2. of this article.

C. Vacation Scheduling/Bidding

1. On October 1 of each year, employees will be notified of the amount of vacation they should be entitled to bid during the forthcoming calendar year, and all employees will bid for their vacation preference in weekly increments during the months of October and November according to their Company seniority, by classification at each bid location, on each shift, at each station. The shift for bidding purposes will be determined based on the employee's shift on October 1. Leads will bid vacation separately from the basic classification, and all Lead shifts will be bid together by bid location, at each station. An employee shall make his selection in person or by proxy within two (2) calendar days, or he shall forfeit his right to select in turn and shall follow the last employee who has selected. In each classification, if there are four (4) or less on a shift, all shifts may be combined for the bidding of vacation. / / Approved vacation selections will be posted at the various stations by December 21, and once posted a senior employee will not be permitted to take a vacation already assigned a junior employee. Ten (10) hour shift employees shall take their vacation in four (4) day increments and the employee shall be charged ten (10) hours for each vacation day paid.

2. Vacation will be granted at time most desired by employees, based on Company seniority by classification, but the right of allotment of any vacation period is reserved to the Company in order to insure the orderly operation of its business. For allotment purposes, when a work group, which bids in common for vacation periods totals twelve (12) or more employees, at time of bidding, no month within the year will be blocked from vacation selection. Whenever a work group totals less than twelve (12) employees at time of bidding, the months of July and August will not be blocked, but may be restricted so that no employee will be allowed to select more than two (2) weeks vacation.

3. No more than five (5) vacation periods may be taken in a calendar year nor may a vacation period include less than five (5) days unless extenuating circumstances exist and supervisory approval is given or as set forth in Paragraph C.5. of this Article. Employees electing to split their vacation will be permitted a second, third, fourth or fifth vacation period choice only after all other employees have had an opportunity to file their first choice. The five (5) vacation period limitation does not apply to paragraph D.4. below.

4. An extra day will be added to an employee's vacation accrual if a paid holiday falls within his vacation period.

5. Vacation shall commence with shift change closest to twelve (12) midnight Sunday, an employee may take any odd days of vacation he holds so that he may add his days off to the end of his vacation period. Employees / / may use / / day at a time vacation, subject to the approval of their supervisor. Requests for DAT vacation will be on a first-come, first-served basis, and no request may be made more than fourteen (14) calendar days in advance of the day requested. The supervisor shall notify the employee if he can have the day off no later than four (4) calendar days prior to the day requested unless mutual consent by both parties. If two employees request the same day off on the same day, Company seniority shall govern.

D. Cancellations

1. If any employee changes shifts, bid locations or classifications, and his previous vacation period selection conflicts with the interest of the service in connection with his new position he shall select a new vacation period or with Company approval place his vacation in accrual even though it may exceed the three (3) year limit.

2. If a vacation period is cancelled, in writing by the Company, the employee may select an open vacation period which shall not be cancellable or may place his vacation in accrual even though it exceeds the two year limit, however, it must be taken prior to the end of the following calendar year. If a vacation period is cancelled in writing by the Company, at least two (2) weeks notice must be given, except in the case of an emergency as set forth in Article 4.N.1. The employee must submit his time card(s) covering his vacation period at least two (2) weeks in advance of the start of the vacation period.

3. Employees will, with Company approval, be allowed to cancel their vacation periods provided they give notice in writing to their supervisor at least fourteen (14) days prior to the beginning of their vacation period.

4. When an employee vacates his vacation period as set forth in D.1., D.2., or D.3. above, employees in the same bid group, commencing with those junior to the employee vacating his vacation period and those transferring into the bid group subsequent to the original vacation bidding, will be allowed to bid for the vacated period, in order of Company seniority. A notice of the vacated period will be posted and employees must notify their supervisor of their desire for the vacated period within seven (7) days of the posting. If not selected within seven (7) days, it will be considered an open period available to the first employee who requests it within the bid group. Vacation periods which in turn are vacated by this procedure will become open periods.

E. Employees shall receive, on the day prior to the commencement of their vacation, the pay which would normally be payable on paydays falling within the employee's vacation period provided that the employee make a written request fifteen (15) days prior to the commencement of his vacation.

F. In the event of death of an employee who has completed twelve (12) months of service, payment will be made to his estate for all accrued vacation.

G. At the time the employee is given a lay off notice, he or she may notify the Company, in writing, within seven (7) calendar days if he desires to receive his vacation pay. If no notice is given he will receive payment for accrued vacation at the first pay period occurring 90 days after the last day worked.

A. Accrual

1. All employees will be credited with eight (8) hours of sick leave for each month of their employment prorated on the basis of the number of straight time hours worked under this Agreement. No sick leave credits may be earned in other ways except that the Company may, at its discretion, approve personal leaves of absence of up to eighty (80) hours per month with accrual for those hours not worked. Probationary employees may not utilize sick leave, however, they will accrue during this period and will be credited retroactively after completion of their probation. Sick leave may be accrued at the rate of eight (8) hours per month as set forth above up to a maximum of sixteen hundred and fifty (1,650) hours.

2. Sick leave, with pay, will be granted up to the number of days credited to the employee at that time, except that the first day of absence due to illness shall not be compensated if the employee is on "sick leave watch" as set forth in Article 14, paragraph C.2. unless the employee is hospitalized. When such sick leave is granted, the number of days paid for by the Company will be charged against the number of days credited to an employee. Once the employee returns to work, one (1) day for each month of continuous service shall again be credited to the employee until the total credit again equals sixteen hundred and fifty (1,650) hours.

3. Sick leave may be retained but not accrued during layoff or leave of absence providing such layoff or leave of absence does not exceed two (2) years.

4. On October 1, when vacation accrual is posted, the amount of sick leave accrued shall also be posted.

B. Sick Leave Pay

1. Payment for sick leave shall be based on the employees' regular straight time rate multiplied by the number of hours he is scheduled to work each day. However, there shall be deducted from such payment weekly indemnity available under the Company Group Insurance Plan, or in the case of injury on duty under Workers’ Compensation Insurance, applicable to the same period of absence. Workers’ Compensation will be charged against sick leave on a prorata basis.

2. All sick leave time granted shall be considered the same as time worked for the purpose of overtime pay.

3. Employees will be required to request payment for sick leave or injury in writing on a form provided by the Company. Such sick leave with pay will be granted only in case of actual sickness or injury. No paid sick leave will be granted for injury or sickness resulting from attempted suicide, the use of alcoholic beverages (except for a Chemical Dependency Program) or venereal disease.

4. Routine dental / / and / / physical examinations will not be considered a basis for paid sick leave. However, one (1) day per twelve (12) month period will be granted for an annual physical examination, provided the employee substantiates the usage with a doctor's slip, and has given at least five (5) days advance notice to his immediate supervisor. Annual physical examination time off will be granted subject to the needs of the operation. Routine dental examinations mean checkups, cleanings, fillings, x-rays, etc. Emergency dental needs shall be considered for paid sick leave. Urgent and/or emergency dental treatment which results in the employee being impaired and unable to return to work and perform the duties of his job will be considered non-routine and eligible for paid sick leave.

5. Only days absent due illness of the employee shall be paid for from such allowed sick leave, except that sick leave of up to four (4) days in each calendar year will be allowed an employee due to serious illness or hospitalization of his or her spouse or dependent child where he can show that such leave is necessary. Serious illness shall be defined as those situations where the spouse or dependent child is medically incapacitated and shall be considered to mean time for the employee to care for the spouse or dependent child. The Company may require verification in writing of such incapacitation. The four (4) days in each year for children may be expanded by Company policy or law. (For current information on Company policy, please contact Employee Benefits-SEAHB.)

C. Sick Leave Reporting

1. Employees shall report to their supervisor that they are ill and unable to work at least two (2) hours prior to the start of their shift, if at all possible (i.e. employee injured on way to work, unable to communicate).

2. For any absence due to illness for a period of three (3) or more days, the employee may be required to furnish the Company a doctor's verification in writing. Any employee, who has used seven (7) or more days of absence, due to illness, not including hospitalization, within a twelve (12) month period may then be required to substantiate any further absence, due to illness, with a doctor's verification in writing of treatment. For the purpose of accruing the seven (7) days, set forth above, an absence three (3) or more days, due to illness which has been substantiated by a doctor's verification in writing shall be counted as a single day. The notice of the requirement for a doctor's verification in writing must be on an individual basis prior to further sick leave. A doctor's verification shall be accepted as justification for sick leave usage.

3. The Company shall have the privilege of investigating the circumstances of any absence due to illness or injury. Any fraudulent absence shall be cause for discipline up to and including dismissal. Any employee remaining at his residence or a hospital during the period shall be deemed to be sick unless found otherwise by registered medical personnel.

D. Occupational Injury Leave

1. Each employee covered by this Agreement shall, on an annual non-cumulative basis, be awarded twelve (12) days of occupational injury leave to be utilized in the event of absence due occupational injury or illness during that calendar year.

2. The leave shall be expended on the basis of one day for each day absent from work and shall compensate the individual for the difference between Workmen's Compensation and regular straight time rate (including licenses and longevity, but excluding overtime).

3. After the exhaustion of said leave, an employee may utilize accumulated sick leave on a prorate basis.

E. The employee and the Union recognize their obligations to prevent absence for other reasons than illness and injury or other abuses of sick leave

privileges, and pledge their wholehearted cooperation to the Company to prevent abuse.

F. If the Company, at any time at its discretion, grants additional sick leave or assistance to any employee, it shall not constitute a precedent requiring additional sick leave or assistance in any other case.

G. Employees will be allowed to use forty (40) hours sick leave with pay or, for part time employees, the number of hours in their current scheduled work week, when it is necessary for the employee to be absent due to a death in the immediate family. Immediate family shall be defined as father, mother, spouse, sister, brother, child, mother-in-law or father-in-law of the employee.

A. Employees covered by this Agreement will be granted the same transportation privileges on the Company system as may be established by Company regulations for all personnel. The service charge will be the same as for other employees of Alaska Airlines.

B. The Airline Representative and National Officers of the Union will be furnished with free annual positive space over the Company’s system during their term of office for use when needed in connection with Union business related to this Agreement. The Local Executive Councils of the Union will be furnished with space available transportation. Employees officially representing the Union as a member of the contract negotiating committee shall receive on-line, company business, positive space (without displacing a revenue passenger), service charge waived passes for the purpose of traveling to and from negotiating sessions.

C. 1. Employees transferring to another location at their own request due to bidding or exercise of seniority shall be provided with service charge waived, space available transportation for self and family.

a. Employees bidding to another station shall be provided with on-line, space available transportation of personal effects up to 4,000 pounds at no cost to the employee.

b. Employees transferring to another station to avoid furlough resulting from a reduction in force shall be provided with on-line space available transportation of personal effects up to 4,000 pounds at no cost to the employee.

c. All shipments under either a. or b. above shall be limited to size by the type of aircraft normally operated between the two locations and shall be on an airport to airport basis. All other expenses shall be borne by the employee.

2. Employees will be allowed a reasonable period, not to exceed 10 working days, between the time they are relieved of their duties until they are required to report at the new location. Such period shall be without pay and shall be established in advance and be dependent upon the means of travel.

A. In order to properly administer this Agreement and to dispose of all disputes or grievances which may arise under this Agreement or between the parties, the following procedure shall be followed:

1. The Association will be represented by not more than one (1) properly designated Shop Representative in each department or shop at each point on the system on each shift where necessary.

2. The Association will be further represented at each point where a Local / / exists by an Airline Contract Committee, consisting of the Airline Representative and two (2) members elected by the local membership. This committee will deal with / / officials of the Company.

3. The Company will designate a representative at each location where persons covered by this Agreement are employed who is empowered to settle all local grievances.

4. The Association and Company, will, at all times, keep the other party advised through written notice of any change in authorized representatives.

5. The Airline Representative(s) of the Association or his designee shall be permitted at any time, to enter shops and facilities of the Company for the purpose of investigating grievances and disputes arising under this Agreement after contacting the Company supervisor in charge and advising him of the purpose of his visit. Such visits shall not be used to call meetings during work periods that interfere with routine production of employee.

B. For the presentation and adjustment of disputes or grievances not involving discipline (covered by Paragraph C. of this Article) or discharge of employees, the following procedures will apply.

Step 1: Any employee or employees having a complaint or grievance in connection with the terms of this Agreement shall within fourteen (14) calendar days of the occurrence, or fourteen (14) calendar days of reasonable first knowledge thereof, present his claim or grievance to his Shop Representative and local manager, or in his absence a designee, on a standard grievance form. The Shop Representative and manager, or in his absence a designee, shall meet within seven (7) calendar days from the day the manager, or designee, receives the grievance, and every effort shall be made to arrive at a satisfactory adjustment of same. The manager or designee will give his decision in writing to the Shop Representative and Grievant, with a copy to the Airline Representative, within five (5) calendar days after the meeting. / /

Step 2. If the Shop Representative or employee is not satisfied with the decision rendered in Step 1 above, the Airline Representative / / may appeal the decision to the Vice President of his division or his designee within twenty (20) calendar days of the date of the decision rendered in Step 1. A meeting will be held within ten (10) calendar days and a decision rendered by the / / Vice President or his designee within five (5) calendar days. In the event the issue(s) is not settled satisfactorily the grievance may be appealed to the System Board of Adjustment for determination as provided in Article 17.

C. In the case of action involving discharge, suspension, or discipline to the extent of loss of pay, the following procedure shall apply:

1. No employee who has completed his probationary period will be disciplined to the extent of loss of pay, suspended or discharged without first being advised of the charges and extent of discipline, in writing with a copy to the Airline Representative within fourteen (14) calendar days of the alleged incident or fourteen (14) calendar days of reasonable first knowledge of the incident. The fourteen (14) calendar days does not include days in which the employee is not available due to vacation, Workers’ Compensation time off, leave of absence, sickness, etc. Not later than five (5) calendar days after receipt of the above notice, the employee may request a hearing and such hearing will be conducted not later than five (5) calendar days after the employee's request. The employee may be represented at such hearing by the Airline Contract Committee and/or the Airline Representative. The Company representative conducting such hearing shall not be the person preferring the charges. Oral and written evidence may be introduced at such investigations and hearings and witnesses may be required to testify under oath. In case of a hearing involving an employee's past record, the employee and the Association may examine the employee's personnel record prior to such hearing. During the above procedure the employee may be held out of service pending the decision of the hearing. With the exception of investigations of potential unlawful activity (for example, theft, intoxication, fighting, etc.) or situations that pose a threat to the safety of the workplace, an employee held out of service by the Company will be withheld without loss of pay pending completion of the hearing.

2. Within five (5) calendar days after the close of such hearing, the Company shall render its decision in writing and shall furnish the employee and his accredited Airline Representative a copy thereof. If the decision reached as a result of the hearing is not satisfactory or if the decision is not forthcoming within the five (5) calendar day period, the case may then be / / appealed to the System Board of Adjustment for determination as provided in Article 17.

3. If, as a result of any investigation, hearing or appeals therefrom it is found the suspension or discharge was not justified, the employee shall be reinstated without loss of seniority and made whole for any loss of pay he suffered by reason of his suspension or discharge and his personnel records shall be corrected and cleared of such charge. If the decision rendered by the hearing results in the removal of the employee from the payroll such removal shall begin immediately after the decision. The time an employee may have been held out of service prior to the decision will be considered as part of the discipline. In determining the amount of back wages due an employee who is reinstated as a result of the procedures outlined in this Agreement, the maximum liability of the Company shall be limited to the amount of normal wages he would have earned at straight time pay in the service of the Company had he not been discharged or suspended.

D. If any dispute is settled in any of the steps as outlined in Paragraphs B. or C. above, the Association shall so advise the Company, in writing, within five (5) calendar days of the receipt of said decision.

E. When it is mutually agreed that a stenographic report is to be taken by a public stenographer of any investigation or hearing provided for in this Agreement the cost will be borne equally by both parties to the dispute. When it is not mutually agreed that a stenographic report of the proceedings be taken by a public stenographer, the stenographic record of any such investigation or hearing may be taken by either of the parties to the dispute. A copy of such stenographic record will be furnished to the other party to the dispute upon request at pro rata cost. The cost of any additional copies requested by either party shall be borne by the party requesting them whether the stenographic record is taken by mutual agreement or otherwise.

F. / /The time limits set forth in this Article may be extended by mutual agreement.

G. Non-compliance with the time limits set forth in the grievance procedure as outlined shall result in the granting of the grievance, if by the Company, and the denial of the grievance if by the Association or the aggrieved / /.

H. Shop Representatives and local Airline Contract Committeemen will be permitted, after reporting to their foreman or supervisor, a reasonable amount of time during working hours to investigate or present grievances without loss of pay. In the event it is necessary to go to another shop they will report in with the foreman or supervisor of the other shop.

I. Necessary hearings and investigations called by the Company shall, insofar as possible, be conducted during regular business hours and all Shop Representatives, local Airline Contract Committeemen and witnesses necessary for a proper hearing or investigation will be compensated at straight time rate for all time spent attending such hearing or investigation.

J. Disciplinary letters not involving a suspension in an employee's personnel file will be removed from the personnel file and will not be utilized for the basis of further disciplinary action if there have been no further discipline letters within one (1) year. All letters of discipline in an employee’s personnel file will become null and void and removed from the personnel file if a two (2) year period has passed during which the employee receives no additional disciplinary letters.

K. No employee will be discharged, suspended or disciplined without just cause.

L. 1. Rejected offers made by the Company or the Association for settlement of employee complaints and grievances will be of no value and will be inadmissible in any grievance or System Board of Adjustment hearing.

2. Settlements of complaints and grievances will not, unless expressly so stated in writing and approved by the Aircraft Mechanics Fraternal Association and the Company, be of any value in the interpretation of this Agreement, nor will they set or be of any value as precedent for the handling of other similar matters, and they will be without prejudice to either the position of the Company or the Association on the issues raised.

3. This paragraph, "L.", shall not apply to System Board decisions.

A. In compliance with Section 204, Title 2 of the Railway Labor Act, as amended, there is hereby established a System Board of Adjustment, hereinafter referred to as "The Board," for the purpose of adjusting and deciding disputes or grievances which may arise under the terms of this Agreement, and which are properly submitted to it after exhausting the procedure for settling disputes, as set forth in Article 16 "Grievance Procedure."

B. The Board shall be composed of a Company member, an Association member and a neutral referee selected by the Company and the Association. Unless the Company and Aircraft Mechanics Fraternal Association agree upon a combination of cases to be presented, each case presented to the Board shall be treated as a separate case.

C. The Board shall have jurisdiction over disputes between any employee or employees covered by this Agreement and the Company growing out of grievances or out of interpretation or application of any of the terms of this Agreement. The jurisdiction of the Board shall not extend to proposed changes in hours of employment, basic rates of compensation or working conditions covered by this Agreement or any Amendment hereto.

D. The Board shall consider any dispute properly submitted to it by the authorized representative of the Association, or by the Representative of the Company. Disputes introduced by the Association shall have been processed in accordance with the terms provided for in this Agreement, under Grievance Procedure, Article 16.

E. All disputes properly referred by the Association to the Board for consideration shall be filed with the Company's Vice President in charge of Labor Relations by a Notice of Appeal which must be postmarked within thirty (30) days after final decision in the last step of the grievance procedure set forth in Article 16. A copy of the submission as defined below will be included with the notice of appeal sent to the Company’s Vice President in charge of Labor Relations. All disputes properly referred by the Company to the Board for consideration shall be filed with the Aircraft Mechanics Fraternal Association Airline Representative of the Local by a Notice of Submission which must be postmarked within thirty (30) days after the Vice President in charge of Labor Relations knew or should reasonably have been expected to know of the cause giving rise to the dispute. At the time of the / / Three (3) Person Board hearing, the party referring the dispute will submit to the Board a statement of the case which shall include:

1. Question or questions at issue.

2. Statement of facts.

3. Position of employee or employees and relief requested.

4. Position of Company and/or Association.

F. Employees covered by this Agreement may be represented at Board hearings by such person or persons as they may choose and designate, in conformance with the constitution of the Association. The Company may be represented by such person or persons as they may choose and designate. Evidence may be presented either orally or in writing, or both.

G. A majority vote of all members of the Board shall constitute a decision which shall be final and binding on the parties. The decision of the Board shall be rendered within sixty (60) days of the close of the hearing, or if briefs are filed, within sixty (60) days of receipt of briefs.

H. 1. The Board shall meet and consider each Grievance properly appealed to it at a time and place set by mutual agreement of the parties no later than one hundred twenty (120) days subsequent to the proper submission of a case to the Board as set forth in paragraph E. above. If either the Company or the Union consider the matter of sufficient urgency and importance, the Board shall meet not more than sixty (60) days after request of either party in accordance with the provisions of paragraph E. above. If either party fails to appear, the grievance shall be deemed settled in favor of the other party.

2. The neutral member of the Board shall preside at meetings and hearings of the Three (3) Person Board. It shall be the responsibility of the neutral to guide the parties in the presentation of testimony, exhibits and argument at hearings to the end that a fair, prompt and orderly hearing to the dispute is afforded. The Board shall meet in the city where the general offices of Alaska Airlines are maintained unless a different place of meeting is agreed upon by the Board and the parties.

3. a. The Company and the Association shall meet periodically to agree upon the selection of neutral members to sit with the Board in the consideration and disposition of pending cases and to establish mutually agreeable hearing dates. If by the time a case is scheduled for hearing date(s) no agreement has been reached on the neutral member, then either the Company or the Association may direct a request to the Chairman of the National Mediation Board for the appointment of a panel of five (5) neutral members from which the parties shall select.

b. Effective (date of signing), it is agreed that the following panel shall be utilized:

4. The selection of a neutral shall be by alternately striking nominees from the panel. The initial strike shall be determined by flipping a coin. If the neutral thus chosen is not available during the 120-day period set forth in H. above, the neutral next below him on the list shall be contacted, in turn, until an available neutral is secured (bottom rotates to top). If no neutral is available in the 120-day period, the first available shall be selected.

5. Upon the selection or the appointment of a neutral member, the appealing party shall forward a copy of the submission to the neutral member. All subsequent documents to be filed with the Board shall be addressed to all three (3) members of the Board.

6. No matter shall be considered by the Board which has not first been fully processed in accordance with the grievance and appeal provisions of this Agreement.

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

J. The Board shall maintain a complete record of all matters submitted to it for its consideration and of all findings and decisions made by it.

K. Each of the parties hereto will assume the compensation, travel expense and other expenses of the Board members selected by it.

L. Each of the parties hereto will assume the compensation, travel expense and other expenses of the witnesses called or summoned by it. Witnesses who are employees of the Company shall receive positive space transportation over the lines of the Company from the point of duty or assignment to the point at which they must appear as witnesses and return, to the extent permitted by law.

M. The Company Board member and the Association Board member, acting jointly, shall have the authority to call witnesses and to incur such other expenses as in their judgment may be deemed necessary for the proper conduct of the business of the Board, and such expense shall be borne one-half (½) by each of the parties hereto. Board members who are employees of the Company shall be granted necessary time for the performance of their duties as Board members. Board members shall be furnished positive space transportation over the lines of the Company for the purpose of attending meetings of the Board, to the extent permitted by law.

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

O. Either party may withdraw a grievance at any time, and this shall not set a precedent on the merits of grievances filed in the future on a similar matter.

P. All time limits in this Article may be extended due to a substantiated emergency such as an accident, death or serious illness, or by mutual agreement.

1. Company and Association representatives will meet quarterly to identify specific cases which the parties agree to arbitrate under the expedited rules contained in this Article.

A. Employees entering the service of the Company may be required to take a physical examination specified by the Company. The cost of such examination will be paid for by the Company. Thereafter the Company may request an employee to submit to further physical examination during the course of his employment or recall to service after a lay-off due to reduction in force. The cost of such further examination shall be paid by the Company. If it becomes necessary to hold an employee out of service due to his physical condition, the Union will, on the employee's request be fully informed of the circumstances and every effort will be made to return the employee to service at the earliest possible date.

B. The Company hereby agrees to maintain safe, sanitary and healthful conditions in all plants, and to maintain on all shifts emergency first aid equipment. It is understood that this does not require the Company to maintain a nurse or doctor to fulfill the requirements of the foregoing clause.

C. The Company agrees to furnish good drinking water and sanitary fountains; the toilets and washrooms will be kept in good repair and in a clean, dry, sanitary condition. Employees will cooperate in maintaining the foregoing conditions. Shops and washrooms will be lighted and heated in the best manner possible consistent with the source of heat and light available. Individual lockers will be provided for all employees where space is available.

D. No employee will be required to work under unsafe or unsanitary conditions. In order to eliminate as far as possible accidents and illness, a joint safety committee composed of an equal number of Union representatives and Company representatives will be established at each location on the system, where employees covered by this Agreement are employed. It shall be the duty of the Safety Committee to determine if applicable State and Municipal safety and sanitary regulations are complied with, and to make recommendations for the maintenance of appropriate safety and sanitary standards. The committee members shall receive and investigate complaints regarding unsafe and unsanitary working conditions, and shall meet on a monthly basis to make recommendations concerning such complaints.

E. The Company shall furnish all necessary safety devices for employees working on hazardous or unsanitary work, and employees will be required to wear such devices in performing such work. The Company will make / / knee pads available to all employees, and the Company will pay for one-half (1/2) the cost. Replacements will be provided at one-half (1/2) cost to the employee upon his turning in the worn out or damaged equipment. The Company will make hearing protectors available to all employees.

F. The Company will furnish appropriate aprons, overshoes and gloves to all employees required to work with acids and chemicals that are injurious to clothing while such employees are engaged in such activities, and employees will be required to wear such equipment.

G. Employees injured while at work shall be given medical attention as promptly as reasonably practical.

H. The Company will have the following cold weather clothing available to all employees required to go on emergency winter field trips:

In Seattle:

3 Arctic Parkas - two large, one medium

3 Pair Insulated Boots - one large, two medium

In Anchorage:

3 Arctic Parkas - two large, one medium

The above items will be maintained in stockroom, and no employee will be required to go on such trips if the above equipment is needed and not available. The Company shall provide other protective clothing from time to time as mutually agreed upon between the Union and the Company for protection against the elements and shall meet with the Local Committee periodically to review the condition of such clothing. The employees may be required to sign receipts for such items of Company protective clothing as are drawn.

I. All employees will be required to wear a standard uniform, which may vary from station to station and between job classifications. The Company will furnish the uniforms at no cost to the employee and provide either all cleaning of required items, or a cleaning allowance of $5.00 per month per employee, at the option of the Company.

J. The Company will provide parkas and gloves for all Alaska based employees on an individual basis. Such clothing shall remain the property of the Company and shall be of a quality equal to that in use on the effective date of this Agreement. The Company will meet with the local Airline Representative to review the condition of the parkas prior to each winter's operation.

K. When employees work on, load, unload or examine aircraft in the presence of dangerous materials or devices (e.g. bomb threats, hijackings), the Company shall provide hazardous duty life insurance. The insurance coverage shall be up to $100,000 per life with a maximum of $500,000 total coverage per accident, (e.g. if five (5) lives are lost in a single accident, the coverage is $100,000 per life; if ten (10) lives are lost, the coverage is $50,000 per life).

L. The Company may establish reasonable personal standards for appearance and safety.

A. Any employee with two (2) or more years of service under this Agreement whose employment is involuntarily interrupted while he is in a position covered by this Agreement shall be paid the severance allowance provided in paragraph B. following, subject, however, to the limitations and qualifications and in accordance with the terms set out in paragraphs B. through F.

B. Service Requirement

C. Computation and method of payment -- A week of severance allowance shall be computed on the basis of the employee's regular straight time hourly rate at the time of his employment interruption multiplied by forty (40) hours. Severance allowances shall be paid at the successive payroll periods immediately following the date employment is interrupted and shall continue to be paid until the employee is recalled or the severance allowance entitlement is exhausted, whichever occurs sooner. Holiday pay, as outlined in Article 7 of this Agreement, shall not apply when computing severance pay.

D. Disallowance -- Severance allowances shall not be paid when the employee:

1. is discharged for just cause, retires or resigns.

2. has his employment temporarily interrupted because of a strike or picketing of Company premises, an act of God, a national war emergency, revocation of the Carrier's operating certificate(s) or grounding of the Carrier's aircraft by governmental order.

3. fails to exercise any seniority, bumping, or transfer rights afforded him under this Agreement to remain in active service with the Carrier, or accepts other employment offered by the Carrier.

E. The severance allowances provided herein shall be in addition to any or all other benefits provided under this Agreement.

F. An employee who has received a severance allowance under this Article and who has been recalled to work under the provisions of this Agreement and whose employment is again involuntarily interrupted under conditions which entitle him to severance allowance shall be paid the amount specified for his total years of service with the Carrier. For any employee accepting a recall to a temporary job (less than sixty (60) calendar days) this paragraph will not apply.

The Company shall provide a Retirement Plan for employees covered by this Agreement. The Plan, which became effective September 1, 1962, is amended as follows:

A. Effective March 1, 1978 and applicable only to employees retiring after this date:

1. Employees participate after one (1) year of service, retroactive to date of hire. / /

2. Effective (Date of Signing), for active plan participants, benefits paid at retirement age shall be as follows:

b. Effective January 1, 1999, benefits paid at retirement age shall be one and four-tenths percent (1.4%) of the employees basic monthly average wage, multiplied by the number of years of service, per month / /.

d. "Basic Monthly Wage" shall be defined as the employee's basic hourly rate of pay (including longevity and license premiums) multiplied by 173. "Basic Monthly Average Wage" shall be defined as the average of the employee's basic monthly wages during his active service with the Company after January 1, 1999.

3. Former Alaska Coastal and Cordova employees shall commence their years of service effective March 1, 1968.

4. Retirement Age shall be:

a. Normal - 62 (not actuarially increased for later retirement)

b. Early - 60 (actuarially reduced below 62)

c. Early with 6 months written notice - 55 (actuarially reduced below 62)

5. Under no circumstances shall an employee receive a benefit under this plan that is less than that he would have received under the Agreement dated March 25, 1974.

B. A participant whose employment terminates for reasons other than death or retirement after completion of five (5) years vested service, shall be entitled to a deferred pension at retirement age.

C. It is hereby agreed that the full text of the Plan dated October 1, 1962 will incorporate the basic provisions herein outlined. A copy of the / / Plan Document will be furnished to the Aircraft Mechanics Fraternal Association Administrative offices, who will be furnished with a copy of the annual actuarial report covering the plan. It is understood that AMFA shall bear no fiduciary responsibility under the plan.

D. Booklets explaining the plan will be distributed to all eligible employees.

E. Employees retiring may continue participating in the Group Medical Plan under this Agreement for themselves and their dependents at their own expense until they are eligible for Medicare.

F. Employees required to terminate their employment with the Company due to physical disability shall be eligible for retirement benefits on an actuarially reduced basis subject to the following requirements:

1. Mental or psychological disorders, alcoholism, self-inflicted injuries, or injuries sustained in the commission of a crime shall not qualify.

2. The employee must be adjudged to be permanently disabled from performing his job or any similar job within the Company. If there is a dispute concerning validity of the disability claim, such disability to be determined by majority vote of a panel of three medical doctors; one physician to be appointed by the Company, one by the Union, and the third to be jointly selected by the two aforementioned physicians. The expense of the third physician shall be jointly borne by the parties.

3. The employee must be fully vested as of the first day of his disability. To be fully vested, an employee shall have completed ten (10) years of credited service under the plan

4. The employee shall be forty (40) years of age or older as of the first day of his disability.

G. Effective August 1, 1999, employees / / shall be entitled to participate in a 401(k) plan established by the Company subject to the terms and conditions of such plan. The Company will match the participant’s pre-tax contribution to the 401(k) Plan maintained by the Company, at the rate of fifty cents ($.50) for each one dollar ($1.00) contributed by the employee, up to a maximum employee contribution of six percent (6%). All Company matching contributions will be used to purchase shares of Alaska Air Group Common Stock.

A. If there is any change during the life of this Agreement in the license(s) employees covered by this Agreement are required to have, all employees affected shall be given three (3) months from date of such change to obtain such licenses and there shall be no change in their status or pay during said three (3) months period.

B. Service records shall be maintained for all employees by the Company which may be reviewed by the employee upon request. Nothing of a derogatory nature shall be entered into an employee's personnel file without first giving the affected employee the opportunity to sign such material and provide a copy of the material to the employee. When an employee covered by this Agreement leaves the Company for any reason, he will, upon request, be furnished with a copy of his service record. In case of investigations or hearings involving an employee's past record, the employee shall be furnished, on request, a copy of his record prior to such investigations or hearings.

C. All orders or notices to an employee covered by this Agreement involving a transfer, promotion, lay-off or leave of absence shall be given in writing. In the event of the lay-off of employees who have completed their probationary period, two (2) weeks notice shall be given by the Company and a copy of such notice shall be furnished to the Union Airline Contract Committee(s). In addition, each month the Company will furnish AMFA with a list showing the employees at each location in each classification.

D. Bulletin Boards will be provided by the Company in the vicinity of each time clock card rack assigned to employees covered by this Agreement at all Maintenance Bases for posting notices restricted to:

1. Notices of Union Recreational and social affairs;

2. Notices of Union elections;

3. Notices of Union appointments and results of Union elections;

4. Notices of Union meetings;

5. Notices from Aircraft Mechanics Fraternal Association specifically designated to be posted;

6. There shall be no posting of material derogatory or detrimental to the Company or of a political, or personal nature;

7. There shall be no other general distribution or posting by the Union or employees of advertising or political matter, notice, or any kind of literature upon the Company's property other than herein provided.

E. Employees shall not be required to pay damages or repairs occasioned by any cause beyond their control.

F. No employee shall reveal, except to proper representatives of the Company, any confidential matter of the Company, or give any information concerning business of the Company, which he may acquire on account of his position or the nature of his employment.

G. Employees shall notify the Company in writing of their current address and phone number and notify the Company of any change within ten (10) days of such change.

H. Each employee covered by this Agreement shall be issued a printed, pocket-size copy of this Agreement. The booklet shall be printed and distributed within sixty (60) days of the signing of the contract. Each employee will be required to sign a receipt for his copy of the Agreement.

I. For security reasons, the Company may issue and require employees to carry or wear Company provided identification cards or badges.

J. The Company agrees to pay employees on jury duty the difference between the jury pay actually received, exclusive of travel expense, and normal straight-time pay which would have been earned during the period of such duty. Employees selected for jury duty will be assigned to day shift with Saturday and Sunday off. Employees agree to return to work on those days when excused from jury duty prior to 12:00 noon.

K. Except in the case of unusual work loads, no more than eight (8) individuals from the following list of elected Association officials may attend regular monthly Local meetings which occur at their station while such officials are on shift: President, Vice President, Treasurer, Secretary, Airline Representative, Safety and Standards Chairman and Shop Representative(s). Such attendance shall be without loss of pay for a period of up to two (2) hours.

L. Employees' tools and tool boxes will be protected by the Company at full dollar value against fire or catastrophe while on Company premises, providing the employee has a current inventory of tools on file with the Company.

M. Company selected free parking will be provided for employee's car while at work or on field trips.

N. The Company shall have the right to establish and revise minimum required tool list for technicians.

O. The Company shall have the right to inspect an employee's tool box and contents from time to time.

P. The Company may utilize Vendor fueling at all present and future locations to perform all fueling functions. At location where Vendor fueling is not used the fueling may be done by Technicians personnel.

Q. The first of the month following the signing of this Agreement, employees covered by this Agreement stationed at Ketchikan who must commute to work by ferry from Revillagigedo Island to the Airport Terminal on Gravina Island will receive twenty-two dollars ($22.00) per month to defer the cost of the ferry passes.

A. Group Insurance Plan - Effective October 1, 1999 (immediately following the open enrollment period)

1. All employees under this Agreement shall be offered health care coverage to be effective on the first of the month following one (1) month of active service and, if they accept, employees will be offered the same plans as are available to management employees and at the same monthly contribution amounts as management employees. Short Term Disability coverage will be provided by the Company in the amount of forty percent (40%) of weekly basic earnings / / up to a maximum of five hundred dollars ($500.00) per week. The Company shall offer an Optional Short-Term Disability Plan. The cost to the employee of optional short-term coverage will be determined by the Company and this amount may change from year to year. The optional short-term disability plan will provide benefits equal to twenty percent (20%) of the weekly basic earnings up to a maximum benefit of two hundred dollars ($200.00) a week. All terms and conditions which apply to the Basic Short-Term Disability Plan shall apply to the Optional Short-Term Disability Plan.

2. The Major Medical provision within the Group Insurance Plan shall be $1,000,000.

3. Co-Insurance: Plan pays different coinsurance rates depending in which plan the employee participates.

5. When both a husband and wife work for the Company, there shall be coordination of medical insurance benefits for the spouses / / and other dependents (e.g. children), when both have elected coverage for each other and dependents.

6. Employees covered by this Agreement shall be offered a "Group Dental Plan" as part of the group Insurance Plan. Such plan is to be based on the following provisions:

a. $25 calendar year deductible per individual with a maximum of $50 per family;

b. 80% of usual and customary charges;

c. 80% of usual and customary charges on prosthetics;

d. $1,500 per calendar year maximum.

Eligible dependents shall include dependent children through age 18 and if a full time student, through age 23, and spouse as defined by the Group Insurance Plan.

7. The Dental Plan shall include orthodontics for employees and dependents at 80% of usual and customary charges with a $2,000 lifetime maximum.

8. Life and A.D. & D. Insurance

An employee may, at his option, increase his life insurance coverage by purchasing / / at group rates / /, supplemental life and A.D. and D. insurance coverage. He may also purchase life insurance coverage for his spouse and children.

9. Vision Care for employees and dependents. Employees covered by this Agreement shall be offered a "Group Vision Plan" as part of the Group Insurance Plan. Such plan is to be based on the following provisions:

One examination and one pair of lenses in a twelve (12) month period. One frame in a twenty-four (24) month period.

The plan is to provide up to forty-five dollars ($45.00) per examination.

B. Employees on leave of absence (including medical leave) or layoff may elect to continue their Group Medical, life and dental insurance coverage by paying to the Company a monthly fee covering the cost of such coverage according to COBRA but not less than a period of up to three (3) months. Employees on Workman's Compensation who have expended all injury leave and sick leave as set forth in Article 14, Paragraph D., shall have their group insurance (life, medical, dental) premiums paid by the Company for a period of ninety (90) days subsequent to the expiration of their injury and sick leave benefits. After the above coverage has been expended, the medical and life insurance may be converted to individual plans within thirty (30) days.

C. Employees retiring may continue participating in the Group Medical Plan under this Agreement for themselves and their dependents at their own expense until they are eligible for Medicare.

D. The amount of employee contributions required of part-time employees for the Health Plan will be as follows:

B. No employee shall suffer any reduction in hourly rate as a result of this Agreement, and nothing in this Agreement shall be construed to prevent increases in individual rates or classifications over and above the minimum specified.

C. Employees shall be paid on alternate Fridays during their regular working hours. The payment on such Fridays shall include all wages due through the second preceding Sunday. Swing shift employees shall receive their pay at the end of their shift which commences on Thursday.

D. Should the regular payday fall on a holiday recognized by this Agreement, employees will be paid on the day preceding such holiday.

E. Pay checks will include a statement of all wages and deductions made for the pay period. All retroactive Cost of Living or general wage increase adjustments reflected in a paycheck will be accompanied by an explanatory sheet giving description, hours and rate applied to the adjustment.

F. Employees leaving the service of the Company will be given their final check within forty-eight (48) hours after final clearance at points where payroll offices are located or mailed within seventy-two (72) hours at other points, or earlier when possible, exclusive of Saturdays, Sundays and holidays.

G. Employees working in a higher classification shall be paid the rate of pay for that classification for all time worked and when on a regular shift will be paid as such for the entire shift. Employees temporarily upgraded to a higher classification may be returned to work in the lower classification when no longer required in the higher classification. Employees working in a lower classification will continue to receive their higher rate of pay unless demoted through a force reduction as set forth in Article 9, Paragraph K. Technicians upgraded for limited Required Inspection Authorization (R.I.I.) shall be paid a differential over and above their normal rate of pay of one dollar and twenty-five cents ($1.25) per hour.

H. 1. Employees in the Technician and higher classifications who hold, and thereafter continue to hold, a valid, applicable Airframe License, Powerplant License; / / General Radio-Telephone Operators License / / shall be paid one dollar and ten cents ($1.10) per hour for each such license with a maximum of two dollars and twenty cents ($2.20) per hour. Those employees as of (date of signing) currently receiving a premium for a Repairman’s certificate will continue to receive that premium.

3. License and skill premiums will be added to the employee's base rate and are, therefore, subject to multiplication. In order to be eligible for license and skill premium pay such license and skill certificate must be registered with the Maintenance Department. Notwithstanding any of the foregoing, no one shall be entitled to more than two dollars and twenty cents ($2.20) in combination of license/skill premiums.

I. Where there is a shortage equal to one-half day's pay or more in the pay of an employee, and such shortage is the result of a Company error, a special check will be issued at the Company's General Offices by the Company within four (4) accounting working days after notification to the Company regarding the shortage.

J. Employees in the Technician and higher classifications who hold a permanent bid position within line maintenance shall be paid fifteen cents ($.15) per hour as a line differential. The line differential shall be added to the employee’s base rate and are, therefore, subject to multiplication. If an employee is assigned to line maintenance for less than four (4) hours in a work day, he shall not be entitled to the line differential. If the employee is assigned to line maintenance for four (4) hours or more in a work day, he shall be paid the line differential for the entire shift if worked.

K. When an employee under this Agreement moves from a lower classification to a higher classification, the employee shall be assigned the base hourly rate of pay in the higher classification which is equal to his rate of pay in the lower classification. If no such equal rate exists, the employee shall receive the next higher rate in the higher classification. Thereafter, the employee will progress on the pay scale accordingly.

L. Effective date of signing, leads / / will be paid / / a premium of one dollar and twenty-five cents ($1.25) per hour.

Date of Signing

Except as otherwise specifically provided, this Agreement shall become effective (Date of Signing) 1999, and shall remain in full force and effect through (DATE-Date of Signing plus 42 months) and shall renew itself without change through each succeeding (Date of Signing date) unless written notice of intended change is served in accordance with Section 6, Title I, of the Railway Labor Act, as amended, by either party to this Agreement on or before (DATE-no earlier than 150 days and no later than 120 days preceding amendable date, or (DATE-) of any year thereafter; specifically mentioning any amendments or modifications desired, and no other provisions of this Agreement shall be affected by such notice, except to the extent that other provisions must be revised to conform with the amendments or modifications agreed upon. When any notice of desired amendment or modifications of any provisions hereof is served, the parties hereto shall meet within thirty (30) days from receipt of said notice to negotiate concerning such desired amendments or modifications.

IN WITNESS WHEREOF, the parties hereto have signed this Amendment to Agreement this day of , 1999.

WITNESS: FOR ALASKA AIRLINES, INC.

________________________ _________________________

Thomas R. O’Grady

________________________ Assistant V.P., Labor Relations

________________________

WITNESS: AIRCRAFT MECHANICS FRATERNAL

ASSOCIATION

_________________________ _________________________

O. V. Delle-Femine

_________________________ National Director

_________________________ _________________________

Kevin F. McCormick

_________________________ National Administrator

Effective Date of Signing (DOS)

Lead Inspector Inspector + 1.25 Hourly
Inspector Techncian + 1.25 Hourly
Lead Technician Technician + 1.25 Hourly