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THE a G R E E M E N T by and Between NORTHERN AIR CARGO

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THE a G R E E M E N T by and Between NORTHERN AIR CARGO DocuSign Envelope ID: 7A46D395-CB86-4F80-B6A9-EE3300CB9708 THE A G R E E M E N T By and Between NORTHERN AIR CARGO, INC. and THE PILOTS OF NORTHERN AIR CARGO, INC. as represented by THE INTERNATIONAL BROTHERHOOD OF TEAMSTERS TEAMSTERS AIRLINE DIVISION July 24, 2018 – July 23, 2023 TABLE OF CONTENTS Page SECTION 1 RECOGNITION, PURPOSE, SCOPE, AND MERGERS ...................... 1 SECTION 2 DEFINITIONS ..................................................................................... 10 SECTION 3 COMPENSATION/APPENDIX A ........................................................ 47 SECTION 4 NEW AIRCRAFT ................................................................................ 64 SECTION 5 RETIREMENT AND INSURANCE...................................................... 68 SECTION 6 EXPENSES, TRAVEL, AND LODGING ............................................. 94 SECTION 7 DEADHEADING ............................................................................... 105 SECTION 8 LEAVES OF ABSENCE ................................................................... 109 SECTION 9 PHYSICAL STANDARDS ................................................................. 118 SECTION 10 SICK LEAVE .................................................................................... 125 SECTION 11 PAID TIME OFF (PTO) ..................................................................... 132 SECTION 12 TRAINING ........................................................................................ 137 SECTION 13 HOURS OF SERVICE ...................................................................... 148 SECTION 14 SCHEDULING .................................................................................. 157 SECTION 15 RESERVE ........................................................................................ 190 SECTION 16 SENIORITY ...................................................................................... 198 SECTION17 FURLOUGH AND RECALL .............................................................. 201 SECTION 18 FILLING OF VACANCIES ................................................................ 206 SECTION 19 GRIEVANCES .................................................................................. 213 SECTION 20 SYSTEM BOARD OF ADJUSTMENT .............................................. 220 SECTION 21 DOMICILES ...................................................................................... 226 SECTION 22 CHECK AIRMEN AND INSTRUCTORS ........................................... 228 SECTION 23 MANAGEMENT AND NON-FLYING PILOTS .................................. 232 SECTION 24 UNION REPRESENTATION ............................................................ 235 SECTION 25 UNION SECURITY ........................................................................... 236 SECTION 26 NON-DISCRIMINATION ................................................................... 239 SECTION 27 UNIFORMS ...................................................................................... 240 SECTION 28 CRAF AND HOSTILE AREA OPERATIONS .................................... 242 SECTION 29 MISSING IN ACTION, INTERNMENT, PRISONER OF WAR .......... 246 SECTION 30 MANAGEMENT RIGHTS ................................................................. 251 SECTION 31 GENERAL CONDITIONS ................................................................. 252 SECTION 32 DURATION ....................................................................................... 261 LETTERS OF AGREEMENT LETTER OF AGREEMENT #1 RE: Human Intervention Motivation Study Committee 263 LETTER OF AGREEMENT #2 RE: Union Professional Standards Committee .......... 266 LETTER OF AGREEMENT #3 RE: Flight Operational Quality Assurance Program ... 269 LETTER OF AGREEMENT #4 RE: Aviation Safety Action Program........................... 278 LETTER OF AGREEMENT #5 RE: Section 14 Implementation Schedule .................. 285 LETTER OF AGREEMENT #6 RE: Joint Implementation Resolution Committee ....... 287 LETTER OF AGREEMENT #7 RE: Parent and Affiliates ............................................ 290 LETTER OF AGREEMENT #8 RE: SCOPE 1-002 ..................................................... 295 LETTER OF AGREEMENT #9 RE: SCOPE 1-003 ..................................................... 298 LETTER OF AGREEMENT #10 RE: SCOPE 1-004 ................................................... 301 LETTER OF AGREEMENT #11 RE: Temporary B737/B767 Fence Agreement………304 LETTER OF AGREEMENT #12 RE: Flight Pay Loss…………………………………….309 LETTER OF AGREEMENT #13 RE: B767 Retroactive Pay.…………………………….312 LETTER OF AGREEMENT #14 RE: NAC, Aeko Kula and NAS Name Change………315 MEMORANDUMS OF UNDERSTANDING MEMORANDUMS OF UNDERSTANDING………………………………………………..317 i DocuSign Envelope ID: 7A46D395-CB86-4F80-B6A9-EE3300CB9708 SECTION 1 RECOGNITION, PURPOSE, SCOPE, AND MERGERS A. RECOGNITION Pursuant to the certification by the National Mediation Board in Case Number R-7166, Northern Air Cargo (“Company” or “NAC”) recognizes the International Brotherhood of Teamsters, Airline Division (IBT or “Union”) as the duly designated and authorized representative of the Pilots in the employ of the Company for the purposes of the Railway Labor Act, as amended (“RLA”). B. PURPOSE OF AGREEMENT. In the mutual interests of the Pilots, the Union and the Company, the purpose of this Agreement is to provide for orderly collective bargaining relations between the Company and the Union, a method for the prompt and equitable disposition of Grievances, and a method for the establishment of rates of pay, rules and working conditions for the Pilots. In making this Agreement, it is recognized to be the duty of the Union, the Pilots and the Company to cooperate fully for the advancement of the purpose of this Agreement. C. SOLE AGREEMENT. This Agreement supersedes all existing or previously executed agreements between the Company and the Union or any other labor organization or individual with respect to the rates of pay, rules, or working conditions covered by this Agreement in accordance with the provisions of the RLA. Any and all subsequent modifications to this Agreement will be reduced to writing, signed by their authorized representatives, and become a part of this Agreement. D. SCOPE. 1. Flying Performed by Pilots. All present and future flying performed by or on behalf of the Company, its Parent or their Affiliates will be performed by Pilots on the NAC Seniority List (hereinafter, “Seniority List”) in accordance with the terms and conditions of this Agreement and associated Letters of Agreement. a. It shall not be a violation of this Agreement if the Company subcontracts flying to an air carrier that is not an Affiliate and conducts the flying exclusively under Part 135 of the Federal Aviation Regulations (FAR’s); provided, this exception applies only when aircraft of the kind operated by the Company cannot be used to perform the flying and the volume of cargo transported is de minimus; and provided, further, the Page 1 of 333 DocuSign Envelope ID: 7A46D395-CB86-4F80-B6A9-EE3300CB9708 subcontracting shall not directly or indirectly: (1) cause the Furlough or prevent the Recall of Pilots, (2) reduce the compensation or benefits of Pilots; (3) reduce the number of Pilots in any Position; or (4) slow the growth of the craft or class of Pilots. b. It shall not be a violation of this Agreement if the Company subcontracts a de minimus amount of flying to an air carrier that is not an Affiliate and conducts flying under Part 121 of the FAR’s; provided, this exception applies only when extreme weather conditions, aircraft maintenance requirements or temporary, unforeseen, extraordinary circumstances affecting Pilot availability prevent the Company from utilizing Pilots on the Seniority List and/or aircraft operated by the Company to perform the flying; and provided, further, the subcontracting shall not directly or indirectly: (1) cause the Furlough or prevent the Recall of Pilots, (2) reduce the compensation or benefits of Pilots; (3) reduce the number of Pilots in any Position; or (4) slow the growth of the craft or class of Pilots. c. It shall not be a violation of this Agreement if the Company subcontracts a de minimus amount of flying to an air carrier that is not an Affiliate pursuant to a contract with the United States Postal Service for domestic mail movement provided, further, the subcontracting shall not directly or indirectly: (1) cause the Furlough or prevent the Recall of Pilots, (2) reduce the compensation or benefits of Pilots; (3) reduce the number of Pilots in any Position; or (4) slow the growth of the craft or class of Pilots. d. It shall not be a violation of this Agreement if the Company subcontracts a de minimus amount of flying to an air carrier that is not an Affiliate pursuant to a block space or brokerage agreement; provided, further, the sub-contracting shall not directly or indirectly: (1) cause the Furlough or prevent the Recall of Pilots, (2) reduce the compensation or benefits of Pilots; (3) reduce the number of Pilots in any Position; or (4) slow the growth of the craft or class of Pilots. e. The operation of turboprop aircraft that are less than seventy-five thousand pounds (75,000lbs) (Maximum Gross Take Off Weight) on behalf of the Company, its Parent or their Affiliates is not covered by the Agreement; provided, the Company, its Parent and their Affiliates shall not operate more than one excepted aircraft between the same city pairs within a twelve (12) consecutive hour period; and provided, further, this
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