How to use this slide show: Please Press the

1
How to use this slide show Please Press
the F5 key on your computer now. This
will enlarge the screen to full screen mode if
it isnt there already.
If nothing happens, then just start clicking
away enjoy gt Turn up your speakers
volume as several slides are narrated. Click
on the speaker symbol depicted here to test and
adjust volume Use your computers arrow keys
to advance the slide or to backup.
13 A -- Part III
Is it loud enough? TURN it up the narration
audio is week.

07-27-06
2
About the presentation

• This presentation is an overview of how our new
  TAed rules apply on building future pairings.
• In this presentation, actual pairings will have
  the new TAed rules applied to demonstrate the
  direct impact to the pilot group.
• You do not need to understand the rules for this
  presentation nor for the actual pairings used in
  the examples.
• If a pairing could not have been built using the
  new rules, I have flagged it as an illegal trip,
  one that has busted. Please note that
  Pairing and trip mean the same thing.
• I.e. If the new rules say you cant exceed 4-legs
  and the pairing has 5-legs, its illegal to
  build its a bust. The trip busted
  because of the new rule, whatever it may be.
• Since this is an overview I generally will not
  focus on specific rules, some have already been
  explained and others (i.e. Intl) will be
  explained in the near future.
• The more you know about how the rules work, the
  easier it is to compare and weigh trades with
  other areas of the contract.
• I will show actual trips when it may make a point
  easier to understand.
• This is only part three of a multi-part
  presentation.

3
FDX The next two slides

• FDX limits are sometimes inserted for comparison.
• Limits related to building schedules (trips) will
  normally be referenced.
• Building schedules is where safety, health,
  quality of life, upgrade and staffing issues are
  initially dealt with your initial safety valve.
• Trips built with safety in mind from the
  beginning will dampen execution problems (actual
  operations) in the real world thus, rules
  related to building schedules are essential.
• If youre running your engine at redline all the
  time, it will eventually want to blow up.
  When that starts to happen, you will have no more
  oomph or slack to Get-R-Done before it
  finally shuts down dies.
• FDX didnt ask for as many changes in work rules
  or hourly rate in their negotiations. WHY?
• Later, if you want to see how FDX builds their
  trips under their current language (their
  bare-bone minimums), please refer to my FDX Flow
  Chart under the Pre-Bankruptcy Comparisons tab
  at http//IPAonTop.org or simply click here
  to go directly to the FDX flow chart now.

4
Upgrades at FDX in a nutshell

• Hire date of FDXs most Jr CPT is March of 2001
  (727 CPT)
• Looking at 5th year base salaries
• FDXs 5th year 727 CPT is at least..144,000
  again per year.
• versus
• UPS 5th year FO is roughly.. 94,000 again
  per year.
• That FDX pilot will make at least an additional
  250,000 before one of our 2001 hires sees a CPT
  slot.
• This does NOT include the current yearly raises
  at FDX it does NOT include the raise in the next
  FDX contract.
• It also raises issues about pension and the
  compounding interest lost in a 15 to 30-year
  career (B-plan, 401k, etc)..

• FDX announced hiring up to 70 pilots per month in
  2006
• At FDX, even with better work rules, a higher
  hourly rate and a better pension, it sure seems
  like FDX pilots are upgrading faster while
  enjoying the aforementioned.
• They even have a Scope article that supposedly
  has no teeth, no Hard Cap per se and a huge
  emergency FAR work-rule loophole, but they still
  get all the above, with more pilots and with much
  faster upgrades by years. Whats going on? It
  appears that 4th year CPT upgrades are just
  around the corner at FDX (2002 hires).
• Other issues that influence staffing
• FDX does have a pseudo-Hard Cap (see FDX 25.D.1.f
  -- page 166 of PDF doc).
• They use a TAFB limit of 313-hrs in a 4-week
  period that equates to a 78-credit hour Hard Cap.
  
• Another Capping tool at FDX is their 8.5-hr
  leveler rule (see FDX 25.D.1.b -- page 167 of
  PDF doc)
• The difference between the highest hard line and
  lowest hard line cannot be greater than 8.5-hrs.
• Example IF the lowest line is 69-hrs, you could
  only build the highest line to 77.5-hrs (69 8.5
  77.5).

Sound clip
5

• For those that have asked me to boil it down to
  as few slides as possible with as little detail
  as possible, I give you the next several slides.
  More detailed slides follow that.
• My research, thoughts and opinions do NOT
  reflect that of any individual or group Im not
  speaking for anyone. There is no direct or
  indirect attack of any individual or group by any
  presentation.
• On the contrary, I fully support and am thankful
  for the efforts of our past, present and future
  EB, NC, volunteers and staff. They cant be
  thanked enough for what they do.
• I also am very grateful and proud to be part of
  the UPS team. We are all in this together!

6
The Good, The Bad The plain ole UGLY!
Intentionally left blank

• Junior pilots in every bid package and RESERVE
  crewmembers in general Please pay attention,
  this will affect you most.
• Actually, it can affect everyone.

• Has the IPA given UPS the ability to build trips
  to FAR limits after a bid package is
  constructed?
• Could UPS build to their idea of limits if no FAR
  limit applies?
• Article 13A page 157 (PDF p.152) (vii) The
  trip construction rules provided in this article
  shall only apply to construction of flying lines
  unless expressly stated to the contrary

• Trips left in Open-time could be rebuilt/abused
  by UPS to FAR limits or to UPS imposed limits.
• If thats not what UPS intends, then why would
  UPS ask for it?
• All it would take is UPS interpretation to be
  different than ours.
• Weve been down that path many times already.
  You know the drill. Fly it now grieve it
  later. See ya in 6 to 12-months.
• Our last arbitration was around 10-YEARS ago?
• Whatever trips UPS cant cover during the
  construction of bid packages could be ripped
  apart and that portion could be dumped into
  open-time. Then UPS can rebuild trips to FAR
  limits (domestically 16-hrs duty, 8-hrs rest,
  8-hrs block, etc international rules can be more
  ugly yet).
• This would be highlighted during summers
  vacation peak, Christmas peak and understaffing
  situations.
• Mixing more day with night could be fair game..
• Basically, almost all of Article 13A could be up
  for grabs every Bid Period (Duty, rest, circadian
  issues, leg limits).
• FDX currently has a similar rule, BUT it was
  their 1st contract --and they are negotiating
  its
  removal now (see next slide). This is our 4th
  contract.

7
From FDXs last proposal(Proposals through the
course of negotiations have been shared with
their pilots, just like at some other Legacy
carriers.)
Intentionally left blank
FDX language

• As you can see, FDX is making steps to remove
  loopholes as we the IPA accept concessionary
  language.
• Do you think this is acceptable for the trades
  made with our management?
• Is this what you consider significant gains in
  scheduling?
• Are WE holding back FDX pilots from advancing or
  are they slowing us down???
• In this case, it appears we are dragging our FDX
  brothers sisters down.
• Other airlines, when financially strong
  growing, didnt wait for someone else to lead
  they believed enough in themselves and their
  families to lead.

8
Bottom Line

• In relation to surveys and your schedules, did
  you want
• significant but reasonable reductions in duty for
  flying at night --/or internationally?
• significant but reasonable increases to your
  layovers (rest periods)?
• reduced exposure to domestic coast-to-coast
  flying (8-hr block nights)?

• reduced exposure to domestic or international
  4-leg nights with long duty periods?
• reduced international block-hour and leg limits?
• to maintain city purity within a trip (multiple
  layovers in the same city) and within a line?

• to maintain our circadian purity philosophy (NOT
  mixing day with night flying in a line or during
  a trip)?
• to not be financially penalized if you commuted
  into position off-schedule and didnt meet UPS
  min rest requirement or their qualifiers?
• maintain or increase the amount of vacation slots
  in the summer (a reduction in summer vacation
  causes less staffing and upgrade needs for UPS)?

• to ensure UPS contract compliance by using
  financial incentives (i.e. premiums, etc.) when
  abusing loopholes in scheduled duty /or rest,
  etc?
• to secure a high percentage of true week-on
  week-off flying for late night schedules all
  year long?
• to at least be on par with FDXs scheduled duty,
  rest, leg, block-hour, deadheading limits and
  other circadian/scheduling issues domestically
  and internationally?

• to maintain our contractual right of not allowing
  system-wide reserve (757 pilots all bases most
  affected more work with less staffing Every
  future multi-domicile fleet will need less pilots
  overall compared to current operating
  philosophy)?
• to maintain and NOT lessen the strength of our
  conflict rules (This affects vacations and
  training).
• to eliminate any chance of UPS rebuilding trips
  to FAR limits after the bid packages are built?
• In real world improvements, we didnt get these
  gains or maintain our current contract pearls
  in this TA.

9
What was derived after looking at all the trips
in every fleet and the entire network?

• Other than deadhead issues and their associated
  layovers, the majority of our current trips will
  not change significantly because of the new
  rules the core/heart wont change much.
• There are improvements, but these new rules
  barely lock in what has being scheduled these
  last several years (I.e return to 2003
  schedules).
• The lines may look cleaner, but weve all heard
  or experienced a line that looked great on paper,
  but killed you when flying it.
• Please think Outside the Box and into the
  future because UPS is doing just that.
• The network and business model you see today is
  not what you are going to see in the next three
  years.
• UPS is always trying to become more efficient.
• They will adjust their business model network
  to mitigate increases in costs and staffing
  created by the new rules.
• Theyve already proven they can do that in the
  last few contracts.
• There is no reason they wont do it again.

10
More to think about.

• We may want to scrutinize any TA language that
  produce gains only on paper.
• What do I mean about gains only on paper?
• In other words, does the new language actually
  change improve your schedule?

• HYPOTHETICAL example
• If the current contract required a minimum of
  9.5-hrs on every layover and the new contract
  language requires 12-hrs, you would think weve
  increased the rest dramatically. a gain an
  improvement.
• Shortly after the champagne and noise makers,
  someone points out that UPS normally schedules us
  with 12-hrs rest ---almost every time If not
  more rest.
• That gain was really only on paper.
• The question that follows should be What did we
  give UPS for this gain?

• NOT hypothetical
• Every time we give something to UPS, we have
  reduced UPS need for staffing.
  
• A crumb here a crumb there and voila! A loaf of
  bread.
• It all adds up and reduces the need to hire and
  slows down or eliminates upgrades.
• This would be even more noticeable if we werent
  growing in almost ALL markets

11
Remove emotions, politics and personalities

• Please dont take anyones word on it either way.
  Read and apply the new language to pairings and
  lines.
• Do you see any significant improvements to the
  heart of your schedule (not just the DHs the
  adjoining L/O)?
• How would our new expansion/growth compound or
  interface with the new rules?
• Would new business opportunities compound,
  exacerbate or compliment the situation?
• The UPS Dispatch and Link UPS state
• new U.S. zips added for earlier deliveries and
  at least double digit growth in Europe, Asia and
  the Americas/Mexico.
• CFO Davis Our U.S business is strong and we see
  great opportunities internationally and
• CEO Eskew Our U.S. domestic volume climbed well
  above expectations

• Would some or all of those scheduling
  improvements be negated with (abbreviated list)
• Hub 2000 efficiency and/or network changes
  (think Teamster team-drivers and 4-sort result)?
• The loss of city purity and/or the migration of
  flying from one base/fleet to another (ONT to
  SDF, etc)?
• New extended Intl duty deadhead rules in
  addition to the normal Intl domestic ones?
• Double crews and Turns w/IROs (FDX usually more
  restrictive)?
• UPS ability to mix day with night flying? (FDX
  pilots build their own lines Mgt builds
  pairings)
• Reduced vacation slots in the summer?
• Unrestrictive block-hour limit (compared to FDX
  standards)?
• Allowing multiple nights with 4-legs (FDX is
  3-legs one night followed by 2-legs the following
  night repeat pattern)?
• Other new rules (IPA quote WEve...added
  layers of flexibility in addition to enormous
  efficiencies they currently enjoy)?
• Unforeseen loopholes or holes created by UPS at a
  later date?
• Reprogramming of UPS million dollar scheduling
  software and usage of the OPTIMIZER feature?
• New domestic or international bases and/or the
  combination of the bullet points above?
• UPS creating another sort in a 24-hr day to
  change everything?
• Are the tradeoffs appropriate, a good return on
  investment, now or in the future?
• Is scheduling one of your top priorities?

12
0505 and Other Examples

• Examples I use are usually from the 0505 bid
  period.

• Why use 0505?
• Because thats what UPS demanded we use for
  rebuilding bid packages the IPA agreed and we
  rebuilt that bid period.
• The xx05 bid period of any year is what UPS
  considers to be their true PEAK season in regards
  to vacations, staffing, and schedules for the
  757/767 fleet. UPS in turn optimizes our
  schedules by scheduling more work (stuffers, less
  rest, more legs, etc).
• 0505 is also closer to the 2002 survey, but still
  favors UPS.
• xx02 (I.e. 0602) is also a restrictive period
  especially on the A300.

• This raises many issues, but one thing it clearly
  means is that using the most restrictive bid
  period is the worst case scenario for UPS.
• It would create the largest impact to crews and
  schedules using new rules.
• Other bid periods would have a lesser impact.
• In other words, using the most restrictive bid
  period(s) and applying the results to all bid
  periods could create an erroneous and exaggerated
  overall impact. This muddies up the water in
  relation to staffing, upgrades and other quality
  of life issues.
• This is exactly what UPS has done thus, a
  comparison of rebuilt bid packages is not always
  the best measurement of true gains. Especially
  since we do not know the future network,
  including the affect of new flying (Postal
  contract, etc.) domiciles.
• 2006 bid periods are close to if not the most
  optimized schedules to date.
• Impact is the increase in cost related to changes
  using the new rules.
• Less impact equals less change and cost. Less
  change may mean less quality of life changes.

13
Proof is in the puddingPercentage impact w/new
rules to 0505 pairings is13.7 when ALL bid
packages (Incl. Open-Time) are combined (see ALL
notes below)
Sound clip
Deadheads and the subject. There are good
improvements in regards to most deadheading
issues, but nonetheless, these changes do not
take care of the core of the trip thats when
you are in the heat of the battle. Furthermore
deadhead issues for international, open-time and
reserve pilots have not improved as compared to
domestic LINE holders. Although, some of the EB
have publicly stated that over 80 of the
domestic trips are already built with commercial
tickets. Therefore, the figures presented here
are hard busts encountered predominantly during
the core of the trip. You be the judge of how
much additional weight youd place on deadhead
issues.
0505 Bid Package Number Number of Busted Trips unable to be built using new rules Hard Busts Impact (Possible Change)
SDF 757 158 22 13.92
A300 182 14 07.69
MD11 176 30 17.05
Z 767 294 44 14.97
ONT 102 28 27.45
DC8 80 0 0
B727 30 1 03.33
MIA 88 1 01.14
B747 78 23 29.49
of Trips per Bid PKG Open-Time

• Hub 2000 efficiency, a new Asian or ANC base,
  network changes, new IRO language, lack of city
  purity, mixing day and night flying, etc will
  negate some of this impact to UPS (reduce the
  cost staffing requirements driven by the new
  rules).
• On some fleets (i.e. Z) the majority of the trips
  that would be illegal to build, busts, were due
  to the SAME flight repeating itself in multiple
  trips. In other words, when UPS adjusts their
  network for that one FLIGHT and associated duty
  period, they will fix a majority of the busts.
  I.e. The Z bid package (EU Asia theaters)
  had only 5 flights that affected 32 trips.
• Moving flying (migration) from ONT to SDF, was
  the easy fix for almost all of ONT trips that
  busted. Swapping trips out at a mutual gateway
  like RFD is another option, while just breaking
  others in domicile would make them legal.
• POINT IS that the ONT busted trips moved to SDF
  thus, the impact in ONT is misleading and the
  overall impact of 13.7 is
  very conservative. Add the fact that the 747 is
  a dying fleet the real overall impact is a
  single digit figure.

14
Proof is in the puddingPercentage impact w/new
rules to 0505 pairings is13.7 when ALL bid
packages (Incl. Open-Time) are combined (see ALL
notes below)
Printable copy of previous slide.
Deadheads and the subject. There are good
improvements in regards to most deadheading
issues, but nonetheless, these changes do not
take care of the core of the trip thats when
you are in the heat of the battle. Furthermore
deadhead issues for international, open-time and
reserve pilots have not improved as compared to
domestic LINE holders. Although, some of the EB
have publicly stated that over 80 of the
domestic trips are already built with commercial
tickets. Therefore, the figures presented here
are hard busts encountered predominantly during
the core of the trip. You be the judge of how
much additional weight youd place on deadhead
issues.
0505 Bid Package Number Number of Busted Trips unable to be built using new rules Hard Busts Impact (Possible Change)
SDF 757 158 22 13.92
A300 182 14 07.69
MD11 176 30 17.05
Z 767 294 44 14.97
ONT 102 28 27.45
DC8 80 0 0
B727 30 1 03.33
MIA 88 1 01.14
B747 78 23 29.49
of Trips per Bid PKG Open-Time

• Hub 2000 efficiency, a new Asian or ANC base,
  network changes, new IRO language, lack of city
  purity, mixing day and night flying, etc will
  negate some of this impact to UPS (reduce the
  cost staffing requirements driven by the new
  rules).
• On some fleets (i.e. Z) the majority of the trips
  that would be illegal to build, busts, were due
  to the SAME flight repeating itself in multiple
  trips. In other words, when UPS adjusts their
  network for that one FLIGHT and associated duty
  period, they will fix a majority of the busts.
  I.e. The Z bid package (EU Asia theaters)
  had only 5 flights that affected 32 trips.
• Moving flying (migration) from ONT to SDF, was
  the easy fix for almost all of ONT trips that
  busted. Swapping trips out at a mutual gateway
  like RFD is another option, while just breaking
  others in domicile would make them legal.
• POINT IS that the ONT busted trips moved to SDF
  thus, the impact in ONT is misleading and the
  overall impact of 13.7 is
  very conservative. Add the fact that the 747 is
  a dying fleet the real overall impact is a
  single digit figure.

15
What I did not count MIA 0505 example of the
5-minute rule that UPS admitted they could
tweak their network by.

• This rule was agreed to by UPS the IPA for
  rebuilding domestic trips DURING negotiations.
  NOT using this rule while rebuilding trips would
  produce a false impact (more trips would bust).
  This false impact would create an erroneous
  increase in cost an exaggerated increase in
  crews needed because of the new rules. This in
  turn would lead to a false sense of security
  understanding of how the new rules would affect
  our lives. I have to give UPS credit for
  agreeing to such a rule.
  
• I do not know if the rebuilt bid packages adhere
  to this rule. If not, it will break up more
  trips including this one.

This 4-leg night is an EDW (NDA) duty period.
This duty period exceeds the max EDW scheduled
limit of 11-hrs by only 4-minutes.
The 5-minute rule would allow both parties to
leave this duty period and the core of this trip
alone even though it exceeded a specific EDW
rule. In the real world, both
parties know that UPS would shave off those
4-minutes.
Please note This trip would
require an increased layover rest period on the
first layover, but thats a simple fix that does
not alter the heart/core of the trip
Or COULD trips like this be corrected by simply
flying out of SDF on SA, then rejoin the 1st half
of the trip later /or be tagged onto another
trip out of MIA, SDF /or ONT? How do you
think it could affect your ticket bank?
16
What I did not countAn example of what I
considered an easy fix for UPS

• Two Rules apply
• Need 15-hr L/O rest prior to Crossing, and
• 18-hrs L/O rest before the operating leg.
• The longer rest applies.

Crossing 1 PHL - EMA
Crossing 2 CGN - SDF

• Biggest Problem-Bust Need a minimum of 18 hours
  before an operating leg. First layover is only
  1405.
• Fix Need block-in at or before 1320z (120pm)
  in PHL on the first duty period to receive 18-hrs
  rest.
• UPS could easily adjust the commercial flight in
  the 1st duty period for an earlier arrival.
• I found at least 4 commercial flights that would
  make this trip legal to build (block-in at/before
  120 pm in PHL).

As an aside, under the new rules, HNL to
SYD and CGN to BOM are not crossings.
17
Although an improvement, here is an example of
what I did not count as a bust on the 727
CML flights based on Oct. 24 28 Pax SKDs
Requires at least 18-hrs rest because this is an
EDW trip. FIX SU Flight DL 5323/4983. New
Show time of 2038 local domicile time for a 2138
departure. Release at 0410 Zulu on MO -Click
ahead to see animation
1115
BUT it exceeds 2-segments after the 2-hr TOG
trigger FIX 1115 layover in LAN on FR
followed by flights NW 650 655 on FR afternoon.
This creates a release at 2050 on FR in SDF.
650 655
LAN (16) 2058 DTW (xx) xxxx
DTW (xx) xxxx SDF (20) 0035
SU
452
This trip its fix is typical of ALL domestic
trips and most bid packages. Please note that

with the new commercial flights,
this specific trip would be away from base
12012-hrs (tafb).


This increases
the credit to 3232-hrs (originally 2629-hrs).
Week-on/off flying would only create 6504-hrs
credit with a 3.75 Trip Rig. With a 3.6 Trip
Rig 6648-hrs credit and with a 3.5 Trip Rig
6842-hrs credit. As an aside When UPS
figures out how to drop the credit of this or any
other trip below 110-hrs TAFB, they can build
this 3-times per
PPD and/or mix it with day flying. It could also
be 4-leg nights instead of 2-legs. UPS can build
them to 8-weeks straight per BP.
18
What I DID count as a bust

• This is Trip 331 from the 757 SDF 0505 bid
  package.

• Notice that on the 6th duty period (SA) that a P3
  DH is used. I could not find a commercial flight
  that could easily fix this trip and still use
  the same crew. Therefore, this may increase the
  number of crews to cover it.

19
But wait a minute.

• We may want to ask?
• Could UPS simply change/re-arrange the entry and
  exit points to use the same crew (no increase in
  staffing)?
• In other words, instead of commercialling into
  the trip on Sunday and exiting (de-positioning)
  the following Sunday, couldnt UPS just make you
  operate on Saturday and rejoin the same trip on
  Tuesday (click for animation)? Could the Postal
  or other new contracts create more flying on the
  weekend or other days not normally flown at UPS?
  By the way, SUNDAY commercials are NOT mandatory
  to build.

• The changes I made below would remove 2 out of
  the 5 original NON-positioning legs from this
  trip. In other words,
  UPS will reduce staffing increases domestic
  commercial gains by simple fixes like this.
• What OTHER trips can be adjusted to save adding
  crews and/or commercial costs (think Teamster
  Team Driver problem --again)?
• That could eliminate or at least strongly reduce
  the commercial costs for UPS.
• Did you notice that I was also able to slightly
  reduce tafb and credit for this trip?

... reduce your Ticket bank.
NEW 331 SA NEW Report at (03) 728
SDF 0505 (same trip as previous slide)
1047
SU CML 8686 CML ALB (19) 2330 MHT
(20) 0015 045
MO Layover




SU CML 8686 CML ALB (19) 2330 MHT
(20) 0015 045

MO Layover
959
FR CML 5373 CML MHT (16) 2009 DTW
(18) 2243 105 204 FR CML 5374
CML DTW (19) 2335 SDF (20)
0035 Credit 4302 blk 1217

ldgs 14 tafb 16122
CML flights based on Oct 23rd
28th Pax SKD.
FR CML 5373 CML MHT (16) 2009 DTW
(18) 2243 105 204 FR CML 5374
CML DTW (19) 2335 SDF (20) 0035
20
That leads us to another thoughtNot all trips
are created equal.
SDF 757 domestic SDF 757 domestic
TRIP Effective date
236 9/06/05 only
237 8/28/05 only
238 8/21/05 only
239
244 9/06/05 only
258 9/03/05 only
263
290 9/06/05 only
291
293
310 9/05/05 only
312 9/05/05 only
314
315
316 8/28/05 only
318
319
320 8/14/05 only
328
329
331
339 9/04/05 only

• A good number of trips that busted in some bid
  packages where only effective on one or two days
  out of the bid period.
• That drops the percentage impacted on those bid
  packages and the system overall.
• Example SDF 757
• Of the 22 trips that busted (hard busts) on the
  757 SDF, 11 are only effective on a specific
  date.

Side note I wrote earlier that The Z bid
package (EU Asia theaters)
had only 5 flights that affected 32 trips. Of
those 32 trips, 20 were effective only 1-day out
of the bid package.
21
Numbers can be twisted. That is NOT my
intention.

• Using only the trips as depicted and NOT counting
  for occurrences, the SDF 757 bid package had
  about 13.72 of their trips bust this is what I
  presented earlier (Includes Open-Time).
• If we DID count the occurrence of each trip and
  the total number of 757 trips, roughly only 9 of
  the trips busted.
• This INCLUDES Open-Time.

• We could apply similar concepts related to busts
  using block hours, but what gets dropped out and
  what stays in?
• I.e. Do we drop all the credit of a 40-hr
  domestic or 82-hr Intl trip when only the last
  12-hrs is the problem, etc?
• Can that last 12-hrs be attached to a shorter
  trip?
• Reference slide 18 the 757 example (trip 331).
  Would you drop all 4439-hrs of credit into the
  pot?
• To be conservative, if we drop ALL the credit
  associated with those SDF 757 busted trips and
  the number of times they operate (occurrences),
  the impact is roughly 16.99.... This includes
  Open-Time.
• But is that realistic? Would UPS drop the entire
  trip?

• System-wide figures in 0505 (the real impact
  Including Open-Time)
• 13.7 as published in bid packages open-time
  (mentioned above in slides 13, 14)
• 9.0 based on the number of times they
  operated (occurrences)
• 16.9 based on ALL Block Hours dropped the
  number of times they operated
• I believe we have to ask ourselves, can trips or
  duty periods be spliced together when we depart
  from the city purity philosophy or take the
  other factors Ive mentioned earlier into account
  to create new legal trips?
  In conjunction with that, will trip
  migration from one fleet /or base to another
  compound or help the situation?
  Weve already seen that
  moving ONT flying to SDF in the 0505 rebuilt
  package reduces the impact and cost to UPS.

Most realistic impact???
Again, please dont take anyones word on it
either way. Read and apply the new language to
pairings and lines.
Apply them to OLD trips too 2000, 2001, 2002,
2003, etc.
Trust but verify...!
22
You should also know that

• When one trip busts, it usually needs a different
  trip that was legal (not touched) to fix the
  busted trip. As a result, a partial trip may be
  left over thus, another trip may be needed to
  mend the legal trip that was taken apart to fix
  the busted trip. This situation could repeat
  itself and snowball until just about everything
  is affected (increasing the percentage of trips
  affected by the new rules).
• Thats unless UPS decides to dump only the broken
  trips, or just the busted parts, into open time
  and then break them apart later after bids are
  complete. Then depending on interpretation, UPS
  could rebuild the leftovers to FAR limits and
  disregard circadian rules, etc per the new TAed
  13A language 13A (vii) The trip construction
  rules provided in this section shall only apply
  to bid line construction unless expressly stated
  to the contrary
• Again System-Wide
• Built There were 1,188 trips in the entire 0505
  system they operated (occurred) 5,039 times.
• Busted There were 163 trips in the entire 0505
  system that occurred 454 times.
• Those trips busted they
  would be illegal to build today using the TAs
  new rules.
• Total system-wide impact is roughly 9.0
• 454 / 5,039 9.0

23
Safety in scheduling

• The only real safety nets are solid rules (duty,
  rest, block-hr, circadian, etc) with solid limits
  associated with those rules.
• After that, our next best bet is the correct
  combination of Min Guarantee, Hard Cap
  (Construction Cap), Rigs (Trip, Duty, MPDP, etc.)
  and maybe a Soft Cap in addition to the Hard Cap.
  
• Some would even say that the Min Guar, Caps and
  Rigs are the foundation to good trips and lines,
  but the devil is in the detail (13A in
  particular) since UPS owns the network and
  airplanes.
• Since we have not really fixed the Min Guar, Caps
  or rigs The devil is all we have left to deal
  with (the details).

• If anyone tells you that UPS cannot tweak their
  network to negate/beat our rules, remember that a
  similar statement was made during the 1998
  contract negotiations.
• Thats when Teamster Team Driving wasnt even on
  the radar as it hit us directly between the eyes.
• Combined with our unusually HIGH Min Guarantee
  Caps, Teamster Team Driving created 3 4-weeks
  of night flying per PPD (stuffers, etc) and
  negated some safety nets/rules.
• This comment is not an attack on the previous
  team, but a reality of what UPS can will do to
  their network to avoid playing by the new rules.
  UPS WILL negate the impact/cost as much as they
  can.
• "Those who do not remember the past are condemned
  to repeat it." George Santayana
• SOLID limits and rules are the only way to
  avoid changing networks the Teamster Team
  Driver scenario again.

Also keep in mind . . .

• Our vote will affect our families -- influence
  our schedules for a long time This TA is longer
  than some think
• Remember to add at least 2-years in addition to
  the contracts length for future negotiations.
• Then add that number to the date of signing (DOS)
  for this new contract.
• We will not likely see another TA signed until
  Dec of 2013 this makes this contract actually
  10-years long.

24
Since many have asked My personal thoughts

• I believe that most of the 13A scheduling
  CONCEPTS are sound (EDW rule, Shift rule,
  Crossing rule, Rest Patterning, etc.), but they
  usually arent strong or limiting enough to make
  a significant difference the limits are not
  correct. This means that
  your schedules, other than some deadheads, may
  not improve much now or as the network changes.
  Most gains will be
  reduced in about two years. The network will
  change.
• I feel that these limits do not serve the
  memberships best interest, our future, or what I
  believe to be the groups bottom line. Even with
  gains elsewhere, the return on investment to me
  is poor but, Im only 1 of 2,700 voices.
• I also believe UPS is capable of providing the
  work rules and limits we need and want while
  maintaining flexibility and reasonable staffing
  levels. Again, our network will change to
  mitigate the new rules predicted staffing
  increases.

• The Good
• Commercial tickets for Domestic only trips
  (although roughly 80 of DHs already have
  tickets)
• Most philosophies and concepts behind the rules.
• The Bad
• The LIMITS within the rules and what
  activates/triggers each rule.
• Scheduled jumpseat Matrix ( P3 on a Dom leg
  during an Intl trip is legal the use of P3s in
  general).
• Operational Jumpseat Matrix and the triggers
  allowing its use.
• FDXs ability to use FDX aircraft to schedule a
  pilot to DH in an emergency is much different in
  concept, its rules and its triggers.
• The Ugly
• Giving UPS FAR limit capabilities after a bid
  package is built.
• Combine that with the loss of CPTs authority
  (either Jumpseat Matrix).and ouch!

• The Bottom Line
• Even if with gains in other areas, I will vote NO
  on a TA that have these exact scheduling limits
  triggers.
• Why? Because living a long and healthy life is
  important to me and the ROI (Return On
  Investment) is poor.
• Arent you tired of being forced by UPS to sleep
  on the floor like some vagrant or saddle-tramp?
• Arent you offended that UPS DEMANDS you show up
  rested for work, but also demands to get you off
  the clock as quickly as possible? Reduced rest
  on the last layover /or a P3 home saves UPS
  money via less credit also reduces staffing
  upgrades.
• Doesnt your family hate your Zombie look?
  Arent circadian/rest issues important to you?
  Does this seem fair?
• What trade-offs are OK with you? What is your
  lifes energy worth? Its your call.

25
Other related information(Hang in there only
three more slides to go.)
26
Net Profit or loss
B I L L I O N S


2006 2007 data is estimated per The Value
Line DAL and NWA data missing for 06 07
27
What the IPA and UPS think of the new scheduling
rules

• Our IPA spokesperson in the media (Reuters)
• He Brian Gaudet added that the union is
  pleased with the progress the two sides have made
  on the scheduling issue.
• Page 12 of the IPA Highlights July 2005
  document
• In summary, while the new scheduling article is
  a significant improvement over the current
  article.
• UPS
• Fair Proposals per Rick Barrs video to
  shippers, media and you.

Article UPS, pilots wary as mediation round set
to end Wed May 25, 2005 0747 PM ETSAN
FRANCISCO, May 25 (Reuters)
Do you think this is progress, significant
improvements or fair? Are the gains worth a
10-yr contract?
28
The End for now
By the way, UPS has made a NET PROFIT of roughly
500,000 in the time it took you to read this
presentation. Good for
them/us!!!!!!
Another presentation will follow
shortly. Knowledge is our strength unity, our
spirit.
INTERNATIONAL Rules simplified using actual
bid package examples