INTERNATIONAL SCOPE (Flights occurring totally outside of the U.S.-foreign point to foreign point)

• UPS can no longer subcontract flying in international operations if "not economically feasible." (Article 1.D.2.a) (Art. 1.D.3.)
• All international flying with payload weight limit of 19,000 lbs. or more covered by scope language. This eliminates UPS argument that no weight limit applies. (Art. 1.C.2.)
• Scope protection against multiple feeder aircraft now applied to international operations for the first time to protect IPA flying. (Art.1.C.2.)
• All current international flights flown by UPS crewmembers will continue to be flown by UPS crewmembers and the Company has legal obligation to pursue additional route authority to grow IPA international flying. (Art. 1.D.2.b.)
• New routes will routinely be transitioned to IPA crewmembers within two (2) bid periods of the date new route authority granted. (Art. 1.D.2.b.)
• For the first time, UPS has legal obligation keep IPA international flying free of cabotage unless there are legitimate reasons. No obligation existed before. (Art. 1.D.2.c.)
• It is jointly agreed that the scope clause covers the carriage express freight domestically and internationally including but not limited to the business associated with the purchase of Menlo. (Art. 1.D.1.a.) " International Common Carriage-Current contract contains no limits. TA limits to maximum ten (10) containers unless flights are into or out of an international sort in which case the limit is reduced to a maximum of five (5) containers. Company cannot use common carriage to create an alternative transportation network to deprive IPA members of flying. Same definition applies to carriage of express freight. (Art. 2)
• UPS cannot subcontract out flying because of security risks without first getting agreement with Association. Neutral third party arbitrator would make final decision if parties have a dispute and cannot reach agreement. Protects all IPA flying-especially international flying-from the Company doing what they did with subcontracting out the TLV-IST route following 9/11. (Art. 1.D.6.)
• UPS continues to use subcontractor to fly TLV-IST until parties otherwise mutually agree and management cannot use any of the 4,000 block hours of flying contained in Article 13.M. without displacing IPA crews. (Art. 1.D.6.)

DOMESTIC SCOPE (Flights into or out of U.S. and all flights within U.S.)

• It is jointly agreed that the scope clause covers the carriage express freight domestically and internationally including but not limited to the business associated with the purchase of Menlo. (Art. 1.D.1.a.) " Common carriage (Express Freight) limited to maximum of five (5) containers provided route has been in operation for one year independent of business from UPS. If not, the limit is one (1) container. (Art. 2) " Domestic Common carriage-no change. Same five (5)/one (1) container limit as in current book. (Art. 2)