Mechanics Dispatch - April 13, 2014

Resource Utilization Arbitration

The presentation of the union’s case began on Wednesday the 9th however it was not
completed. The hearing session concluded late that day with the parties reviewing calendars to
schedule future dates. As with the two subsidiary medical grievances, when the schedule is
known it will be reported in the Dispatch.

Negotiations Update

In late February and early March the economists from both sides met to thoroughly review the
respective terms of the last table positions of the parties. Those two meetings produced a
better understanding of the valuation of each side’s position. The result of the analysis was that
while much progress was made in the expedited portion of bargaining there are still significant
issues to overcome. Following these meetings, mediator Gerry McGuckin called the parties
together for a meeting of the principals. That meeting was originally scheduled for April 11th in
Chicago but was moved to Newark on the 10th.

Mediator McGuckin laid out the ground rules for going forward and informed the two sides that
they had now lost control of the pace of negotiations; the parties will now be bound by his
schedule availability. With twenty one open, active cases, the first date available in his schedule
was the week of August 18th through the 22nd.

The parties agreed that there would be an additional meeting for the leadership on May 7th
and 8th in Las Vegas, NV following the IBT Unity conference. The time from May to August will
be used to reconvene the steering committee to discuss the current state of negotiations and
to seek input for the full rank and file committee moving forward.

MRO Conference

The annual Aviation Week MRO conference was held in Phoenix last week. Attending for the
Division were Representative Chris Moore and Local 986 Business Agent Dave Saucedo. Chris
and Dave are working on a report which will be shared when complete. Two continuing trends
brought up at the conference that affect our craft are the limited number of people entering
the field and the rising rates in Asia which are increasing costs for widebody overhauls in that
region. Both of these trends will continue to be a tailwind for this craft for the foreseeable
future.