�
Related today’s CAL ALPA to the past
history of the Continental pilots. This week marks the 20-year anniversary of
the seniority integration of the Texas Air pilots with the Continental pilots,
flying on one seniority list as one pilot group, aircraft ranging from 69 seats
to 250 seats. More important, this week represents the 10-year anniversary of
the Continental pilot group’s vote to return to union representation. We
are also observing the two-year anniversary of our affiliation with ALPA.

�
Called for a focus on the future and the
negotiation of Contracts ’02. Outlined the work before the MEC this week.

[Attachment #1]

1315�� VICE
CHAIRMAN’S REPORT�– Capt. Mike Bowen

�
Recognized pilots serving in military and
furloughed pilots. Did a quick wrap-up of recent grievances resolved by the
CALEX Contract Enforcement Committee without arbitration. Reviewed activities
and contributions made recently by CAL MEC Committees: Human Performance, Pilot
Assistance, Jumpseat, Legislative Affairs, Strategic Preparedness, Safety and
Training.

�� [Attachment
#2]

1325�� SECRETARY-TREASURER’S
REPORT�– F/O Nick Tulloh

�
Noted recent problems with calalpa.org e-mail
communications. The MEC IT department is working with ALPA Int’l and
reports that the problem has been identified and should be repaired soon.
Captains Jay Panarello and Jeremie Brown were recognized for work that went
into getting changes in Policy Manual ready for review and discussion by MEC.

�
Budget is available for MEC member review in the
MEC agenda manual. Adjustments have been made to the 2003 budget to reflect the
status of various committees and reduced spending levels. The 2003 budget has
been reduced by approximately $416,000. The expenses incurred by all areas of
negotiations continue to result in a deficit. Quickly went over available
charts and tables for flight pay loss. Discussed LC budget statements that had
been distributed and urged quick review. He noted one accounting error of
double billing by ALPA Int’l in the amount of $395,000 that will be
corrected in July.

�
Currently, the CAL MEC is in the midst of
reviewing all contracts with vendors to identify savings where possible to
ensure the most productive use of membership dues dollars (for example,
changing phone service providers, negotiating national account with Enterprise
car rental, etc.). [As a side note, calling the CAL ALPA 800 number from a
pay-phone results in an additional 50 cents per call charge to CAL ALPA. Please
use the IAH phone number if possible – 281-449-5033 or 281-987-3636.]

0307-57R, Approval of CAL MEC
Consultants, presented by F/O
Marty Shupp and seconded by Capt. Bob Klumb.

No discussion.

�� 0307-57R was adopted unanimously.

0307-58M,
Approve Investment Banking Firm for a Budget Item, presented by F/O
Marty Shupp and seconded by F/O Nick Bonacci.

I move to approve the budget
item for the JP Solomon, Investment Banking Firm.

�� Discussion.

�� 0307-58M
was adopted unanimously.

�
Furlough assistance program currently provides
assistance to a total of 42 pilots. Just over $100,000 in the day-to-day
account, this should cover projected expenses to the conclusion of program.
Slightly over $1 million from this program remains segregated for future
refunding to the membership. The CAL ALPA Merger account has recovered from
stock market declines and stands at slightly more than $1 million.

1410�� Request by
Chairman Prater that the MEC consider a Speaker’s Corner �� at 1600 to accommodate members unable to
attend later in the week.

1411�� EXECUTIVE
ADMINISTRATOR’S REPORT�– Capt. Mark Leneski

�
Reviewed ExpressJet management’s
contribution to cover the flight pay costs of CALEX Negotiating Committee.
Described recent meetings with the Teamsters and IAM. CommutAir ALPA
representation vote closes Aug. 11 and all pilots are encouraged to recommend
to their friends and fellow ExpressJet pilots on furlough at CommutAir to cast
their ballots.

�
The company has contacted all furloughed pilots
twice to provide them with an opportunity to fly for CommutAir or SkyWest. As
of last Thursday, July 17, 89
of our pilots were flying or in training with these carriers. The ExpressJet
COLA program has generated 88 pilot requests for COLAS, six of whom are
captains; it is hoped that this will mitigate the need for any further
furloughs in the fall. Negotiation pace has slowed down a bit as talks have
entered the economic items.

1420�� EXECUTIVE
VICE PRESIDENT’S REPORT

�
Capt. Pat Burke was unavailable today
(participating out of town with ALPA Int’l President to recruit new pilot
groups) and will present his report when he arrives at the meeting.

1430�� POLICY
MANUAL REPORT�– Capt. Jay Panarello and
Jeremie Brown, F/O Nick
Tulloh

�
F/O Tulloh reviewed the revisions with the MEC.
Corrections consisted of:�

o The
addition of several standardized forms– MEC Resolution Template, MEC
E-mail Proxy Form, MEC Proxy Form

o
Amendments,
many of which were to bring the Policy Manual more inline with ALPA Int’l
policy and terminology; update data and wording corrections, and bring the
document inline with Robert’s Rules. Other changes included modification
to proxy voting on financial issues, detailing who is responsible for
advertising committee openings, restrictions on the cost and distribution of
laptop computers, formation of committees,

o
Some proposed
amendments were sent to committee with instructions to return with
recommendations later in the MEC meeting, including those amendments dealing
with strike balloting, flight pay loss and consideration of the reimbursement
policy for alcohol consumed during group meals.

�� Motion #1 – Add
Speaker’s Corner to today’s agenda – passed.

1600�� SPEAKER’S
CORNER

�
Speaker #1:� Capt. Doug Schull announced his transfer to
the Houston domicile and candidacy
for LEC 171 CA Rep.

�
Speaker #2:� Capt. Kip Wintenberg spoke to the MEC on the
topic of the Age 60 issue, focusing on the economic issues and its importance
to the younger pilots. Encouraged young pilots to consider the changes that
have taken place during his career and realize that they are likely to
experience unexpected changes to theirs. Noted that they should take the long view
and that ALPA should take a proactive role in the process of considering future
changes to control it and get something in return. Allowing outside interests
to dictate change with no input by ALPA could result in changes detrimental to
all pilots.

1630�� RETIREMENT
& INSURANCE COMMITTEE�– Capt. Steve
Pacelli

�
In response to the MEC directive at the May MEC
meeting, provided an overview of pilot age limited retirement history in the
airline industry since first proposed in 1938 (FAA initially proposed age 48).
ALPA brought suit against FAR 121.383(c) in the 1960s, taking the case to the
U.S. Supreme Court, which refused to hear the case, allowing the FAR to stand.
Until the current ALPA BOD position was taken in 1980, ALPA was opposed to any
age limitations not supported on a scientific basis.

�
The R&I Committee only provided information
for consideration by the MEC on the possible impact of an Age 60 rule change on
medical insurance, pilot medical examination standards, disability insurance
costs, and retirement funding for defined benefit or contribution plans. He
projected possible negative results (i.e., flat spots beyond age 60) in
retirement annuity incomes for pilots at various ages. The impact would be
greater for those selecting the lump sum option (since the expected remaining
lifespan is lower). Correction of these problems, since any changes in the
retirement funding requirements, would more than likely be ones that would be
the least costly to the company and would require contractual negotiations.

�
The
R&I Committee provided NO
recommendations to the MEC – for or against changes to the Age 60 rule.
In discussion, Chairman Prater reminded the MEC that the
Continental/Continental Express pilot group had never taken an official
position about the Age 60 Rule during the last 10 years of union
representation.

�
The R&I Committee’s goal is to be
prepared for all eventualities in today’s dynamic economic environment.
The Committee continues to operate on three parallel tracks: (1) defensive
planning and alternative options to protect current benefits, (2) utilizing
current funding and assets levels to provide improved benefits, and (3)
offensive planning to provide industry standard benefits.

�
Current status of pension reform was reviewed,
with an overview of the legislation now under consideration. Capt. Rick
Muir, CAL Negotiating Committee, went into more depth on the
legislation and noted the “Call to Action” currently on the ALPA
website in support of H.R. 2719 introduced by Congressman Camp. A provision of
this bill would extend the time period for companies to correct under-funding
problems from the current 3-5 years to 15 years (this is similar to refinancing
your house mortgage). This would have the effect of reducing the negative
impact of stock market swings and reduce annual funding requirements by
hundreds of millions of dollars. ALPA President Duane Woerth will testify
before the Department of Labor Working Group on Pension Reform in Washington,
D.C.

�
This legislation is a product of ALPA’s
Retirement & Insurance and Government Affairs Departments and is critical
to the protection of CAL’s
Defined Benefit Retirement Plan.

�
Legislation proposals by the Bush
administration, being considered by Congress, would ELIMINATE payment of the lump sums and freeze benefit improvements for plans rated below investment grade
(i.e., the Continental CARP, along with most airline plans). If any doubts existed of the need to support
the ALPA PAC, this type of legislation should persuade every pilot of the need
to initiate payroll deductions immediately, and send a message to management
and Congress!

1730�� Motion #2 – Executive Session – passed.

�
The MEC moved into Executive Session devoted to
discussion of planned changes in the CAL
medical insurance plan scheduled for next year.�
(Information is not yet available for CALEX 2004 changes.) More
information will be forthcoming when the enrollment window begins this Fall.

1800�� Motion #3 –
Return to Open Session – passed.

Recess until
Tuesday morning.

TUESDAY, JULY
22, 2003

0900�� Meeting called to order by Chairman John
Prater. Roll taken by Secretary Treasurer Nick Tulloh
and the meeting was properly convened.

0910�� STRATEGIC PREPAREDNESS
COMMITTEE�– Capt. Ed Neffinger, Bret Hinkie,
Chris Girgis, Rob Galbraith, Stan Ledford

�
Neffinger discussed CAL
activities, noting that expenses and day-to-day system-wide activities have
slowed down due to the reduced pace of CAL Negotiations. Following the recent
super-servicing and road shows, polling shows an improvement in pilot
group’s approval of communications. Face-to-face contact with the
membership from all levels of the union’s leadership is essential. Will
continue various aspects of super-servicing. Plan a phone tree campaign to call
and talk to every member during the August/September timeframe. In addition,
P2P volunteers will be placed in the crew rooms on a weekly basis this fall to
answer questions.

�
Bret Hinkie, SPC
Vice Chairman and CALEX Negotiating Communications Coordinator, said that
polling indicates that the CALEX pilot group’s outlook is still very
positive. After the hiatus while negotiations proceeded, are working to
reinvigorate CALEX P2P volunteer training program and get the volunteers back
on point now that negotiations are entering the economics phase.

�
Chris Girgis, CALEX P2P Coordinator, said that a
P2P Summit had been held to review the P2P program and tune up for the final
push to Contract ’02. This included identifying active volunteers,
getting a recommitment, and recruiting and training a proactive group. The P2P
database is being updated, the phone tree is being revamped and updated, the
Union Messenger Q&A feedback page on the CAL ALPA website has been opened
to P2P for beta testing. Have had two P2P volunteers in all crew rooms every
Friday with updated information provided by the Union
via a P2P base coordinator conference call.

�
Rob Galbraith, CALEX Strike Coordinator, said a
software package has been identified that will track pilots and do what is
needed in case of a job action. A proposal is out for the needed telephone
system. Was able to visit strike center in MSP of Mesaba pilots. Asked that the
MEC help identify people for key positions in manning the strike centers. Hopes
to identify those individuals by September.

�
Stan Ledford,
CALEX Family Awareness, said that the third issue of the new Family Awareness
newsletter, For the Family, has just
been distributed. It will continue to be issued on a monthly basis. The web
page is being updated with new contact information and additions to the Photo
Album section of photos from Family Awareness events. The two recent events in Cleveland
and Newark have gone well, with
some 70 participants in CLE. Attendance in the EWR area was hampered by the
weather and location. Complemented coordination with P2P to advertise the
events, noting that additional smaller more personal events (such as a
neighborhood barbecue) are being planned for this fall. Currently, getting
videos of events for showing to members and encourage attendance.

�
Bret Hinkie
added his thanks to Stan for taking up when Dan Gronstal had to leave the
position, noting that Stan has been doing all the work on his free time. He
said that they are beginning to discuss possible participation in Labor Day
events in Cleveland and New
York.

�
Ed Neffinger
asked the MEC for recommendations for events, ideas of ways to further involve
the pilot group.

�
Bruce Stone recalled the successful events
attended by political figures who demonstrated support.

�
Marty Shupp suggested earlier advanced spool-up
for the Labor Day event(s) to improve participation. Suggested joint pilot
group picnics in the fall in Cleveland
under Family Awareness; feels Union needs to have more interaction between CAL
and CALEX pilot groups.

�
Randy Newman suggested that airport information
events should be held in conjunction with Labor Day events, although he
expressed concern that two simultaneous events might dilute the impact; supported
longer planning period for events and raised concerns about logistics of
getting large group of pilots to downtown New York City
for event.

�
Jay Panarello said the pilot group should pay
more attention to making a public show to the company, keeping track of events
attended by Bethune and BOD, showing up for informational picketing to discuss
issues, including CEO compensation.

1025�� Executive Summary of CAL
polling distributed.

1030�� Break

1045�� Meeting called to order and in regular session.

�� CAL
CONTRACT ENFORCEMENT�– Capt. Chris Lynch, F/O Jim Kingman

�
Recent road shows went very well, with the most
successful part being the time spent in the crew rooms. The Contract
Enforcement web page has been extensively updated with new information being
added regularly. Now all the articles and clarifications on various sections of
the contract are available via the >UPDATES< link under each section of
the electronic copy of Contract ’97 posted in >DOCUMENTS< on the
website.

�
Noted that, although things are changing daily,
the best guess today calls for an August Continental system bid that is likely
to be flat, with no reductions or recalls.

�
Currently, major issues working on include:

o
Reserve scheduling and posting of 1500 reserve
lines.

o
Staffing review/CMPOOL issues (forthcoming
detailed report to the pilots)

o
Certain international flights routinely
exceeding 8-hours without an IRO

o
Pay protection issues – have reached a
framework for resolution with the company; did not get everything we wanted
monetarily or contractually, but this will resolve the issue to enable moving
forward in negotiations with a clean slate and will provide a benefit to over
500 additional pilots rather than possibly being limited to the fewer than 100
pilots with grievances currently filed.

�
Lynch then went through the grievance
resolutions in the eight pay categories covered in the tentative settlement to
resolve this large group of grievances. Under the agreement, as many as 700
pilots identified from various system bids are expected to receive checks. In
contrast, continuing the arbitration process might yield a higher dollar return
to fewer individuals, albeit possibly years down the road.

�
Pilots may receive pay protection for only one
category of pay protection each month (however, they are now eligible for all
pay categories rather than the one specific category related to their
individual grievance). A pilot cannot receive compensation from two different
categories during the same month (no double-dipping). He can receive money from
one pay category one month and another the next and subsequent months. The
company agreed to fix the FAE calculations (and lump sum payout if applicable)
for the pilot who retired while this Group Grievance was being disputed.

�
Positives for the settlement include:

o We
have a clean slate on which to negotiate Contract ’02.

o Pilots
affected get the money now, not years down the road after lengthy arbitration
decisions. (First arbitrated case took almost three years from when first filed
to reach a decision.)

o Provides
the most money for the most pilots (more than 500 versus fewer than 100).

o No
more secret age 58 bid awards, clearly defines the age 58 pay protection
process and provides an opportunity to fly new equipment if desired by the
individual pilot.

o Pay
protected pilots treated as if actually staffed.

o Retirement
FAE recalculation approved.

o Saved
cost of arbitration (single arbitration costs approximately $35,000).

o Opens
four arbitration dates so that other Continental disputes can be resolved
(CRAF, trip rig).

o May
lead to more settlements of Group Grievances with the company.

�
Cheri Mohr, Kim Nichols, Ken Cooper and Mike
Welsh, CAL ALPA Representation, were recognized for their extraordinary support
efforts in bringing this issue to settlement.

1215�� Lunch

1300�� Meeting called
to order and in regular session.

�� SPEAKER’S
CORNER

�
Speaker #1:�
Houston Capt. Jimmy Tripson read a statement voicing dissatisfaction
with the current MEC Chairman, the current single MEC structure, the
MEC’s pursuit of enhanced flow-through and the MEC’s failure to
spend time in the crew room listening to the pilots. He detailed the reasons
for his opposition of having Bonderman on the CAL Board of Directors that he
brought forth at the recent CAL
stockholders meeting in Houston.�

1305�� CALEX
CONTRACT� ENFORCEMENT�– Capt. Mark Leneski for Capt. Steve
Curry

�
Capt. Leneski provided an overview of recently
resolved CALEX grievances prior to arbitration. This resolves all outstanding
Level II contractual grievances. The grievances included:

o 80-hours
pay for full month of training (Any training which starts within the first
seven days or ends within the last seven days will now be considered a full
month for pay purposes.)

o Various
moving issues for pilots within 300 miles of domicile

o Duty
period minimum pay credit will now be applied to reserve pilots

1330�� CAL NEGOTIATING COMMITTEE BRIEFING�– Capt. Tom Stivala, Capt. Rick Muir, F/O Bill Karnes

�
The Committee provided a review of Contract
Sections on which the Committee and company have reached tentative agreements:

�� Section 19 – Discipline &
Discharge

�� Section 20 – Non-Disciplinary
Grievances

�� Section 21 – System Board of
Adjustment

�
Objectives were to address problems, including
clarity of language, in Contract ’97 and achieve industry standard.
Researched six peer carriers’ contracts to determine industry standard.

�
Karnes went over the specific changes and
additions to the sections and explained what each was designed to address
before opening the floor for questions.

�
Motions to approve the Tentative Agreements for
the listed sections and to formally implement these sections as soon as
possible will be taken up on Thursday. TAs will be posted on the CAL ALPA
website after this action.

�
The committee reviewed in Executive Session the
current status of negotiations on Section 13 – Leaves of Absences and
Section 15 – Physical Examinations. Each of these sections is 95%
complete with the exception of various wording changes yet to be agreed upon
with the Company.

1600�� Break

1615�� Meeting
called to order and in regular session.

��

CAL NEGOTIATING COMMITTEE BRIEFING
cont’d.

�� Motion #4 – Executive Session
– passed.

1735�� Motion #5 – Return to Open Session –
passed.

1745�� AI #9 – Authorization to Prevent
Seniority Integration Proceedings

�
Prior to concluding the day’s business,
MEC Chairman Prater reviewed an new attempt by two groups, the Eastern Pilots
Merger Committee (EPMC) and the Eastern Arbitration Group (EAG), to again
request from the National Mediation Board an arbitration to determine if the
Eastern Labor Protection Provisions (LPP’s) should have triggered a
merger of Eastern and Continental.

�
This issue has been legally resolved (no merger
integration) as part of various bankruptcy proceedings, and has been affirmed
by various Federal District courts. These groups have been admonished in the
past for filing frivolous lawsuits. However, since the Company is the named
defendant, the MEC approved taking all appropriate legal steps by retaining Dan
Katz in order to prevent the convening of a seniority integration proceeding,
as requested by the plaintiffs.

�
0307-59R, Authorization to Prevent Seniority
Integration Proceeding, moved by F/O Marty Shupp
and seconded by Capt. Jay Panarello.

�
Discussion.

�
0307-59R was adopted 14/0/1.

1812�� Recess
until 9:00 A.M Wednesday.

0900�� Meeting called to order by Chairman John
Prater. Roll taken by Secretary-Treasurer Nick Tulloh
and the meeting was properly convened. Chairman Prater called for any new
business. None was brought up so a call for approval of the agenda was made and
approved.

0905�� OPENING
REMARKS – MEC Officers�

�
Informed the MEC that the ongoing election for
Secretary-Treasurer of LEC 173 would have to be re-run because of an error in
the ballot printing by ALPA-N.

Motion #6 – Close Agenda
to Late Agenda Items – passed.

0910�� EXECUTIVE
VICE PRESIDENT’S REPORT�– Capt. Pat Burke

�
Report originally scheduled for Monday but
delayed because of recruiting efforts for ALPA Int’l. Updated MEC on
efforts to recruit American pilots into ALPA, current status of Eastern pilot
litigation.

0920�� CHAIRMAN’S
UPDATE�– Capt. John Prater

Noted that Scheduling lines are
expected to be flat for the next few months, with a seesawing of 737 every
month. Company seeking new uses for 777.

�
Speaker #1:�
Capt. John Prater declared his candidacy for MEC Chairman.

�
Speaker #2:�
Capt. Mike Hynes stated his support for the current MEC Officers and
related his experiences during 10 years working on behalf of the Union
that prompted him to do so.

�
Speaker #3:�
Mike Bowen declared his candidacy for MEC Vice Chairman.

1315�� MEC COMMITTEE CAUCUS REPORTS

�
Committee One:�� Completed

�
Committee Two:�� Discussions
in progress

�
Committee Three:�� Discussions
in progress

1320�� Motion #8
– Recess until 1400 – passed.

1400 �� Meeting called
to order.� S/T Nick
Tulloh conducted Roll Call.

�� MEC
OFFICER ELECTIONS

�
Secretary/Treasurer – F/O Nick
Tulloh reviewed election procedures.

�� MEC
Chairman Nominations

Capt. John Prater – nominated
by F/O Marty Shupp

Capt. Jay Panarello –
nominated by F/O Randy Newman

��

Motion #9 – Close
Nominations for Chairman – passed.

�� Nominating
Speeches and Candidate Speeches

�
The representatives who nominated the candidates
were allowed three (3) minutes, any seconders were allowed two (2) minutes and
the candidates were allowed five (5) minutes each for speeches followed by a
ten (10) minute question and answer period.

1447�� Motion #10
– Recess for 5 minutes – passed.

1503�� Meeting called
to order and in regular session.

�� Balloting
for Chairman

�� Election
results:�� Capt. Jay Panarello�� 11

�� Capt.
John Prater �� 5��

1503�� Motion #11
– Recess for 5 minutes – passed.

1512�� Meeting called
to order and in regular session.

��

�� MEC Vice
Chairman Nominations

��

�� Capt. Steve
Pacelli – nominated by F/O Randy Newman

�� Capt. Mike
Bowen – nominated by F/O Marty Shupp

Motion #12 – � Close nominations for Vice Chairman –
passed

�� Nominating
Speeches and Candidate Speeches

�� Balloting
for Vice Chairman

�� Election
results:�� Capt. Mike Bowen�� 9

�� Capt.
Steve Pacelli�� 7��

1540�� Motion #13
– Recess for 10 minutes – passed.

1552�� Meeting called
to order and in regular session.�

�� MEC
Secretary-Treasurer Nominations

1553�� Motion #14
– Recess for 10 minutes – passed.

1603�� Meeting called
to order and in regular session.

�� MEC
Secretary-Treasurer Nominations cont’d.

�� F/O Nick
Tulloh – nominated by F/O Randy Newman

�� Capt. Steve
Pacelli – nominated by Capt. Bruce Stone�

Motion #15 – Close
nominations for Secretary-Treasurer – passed.

1620�� Motion #16
– Recess for 5 minutes – passed.

1630�� Meeting called
to order and in regular session

�� Nominating
Speeches and Candidate Speeches

1623�� Motion #17
– Recess for 5 minutes – passed.

1632�� Meeting called
to order and in regular session.

��

Balloting for
Secretary-Treasurer

�� Election
results:�� Capt. Steve
Pacelli�� 11

�� F/O
Nick Tulloh�� 4��

�� Abstention�� 1

1640�� Motion #18
– Recess for 5 minutes – passed.

1650�� Meeting called
to order and in regular session.

�� MEC
Executive Administrator Nominations

��

�� Capt. Mark
Leneski – nominated by Capt. Stephen Day

�� Capt. Dave
Vick seconded the nomination of Capt. Mark Leneski.

Motion #19 – � Close nominations for Executive
Administrator- passed

Nominating Speeches and
Candidate Speeches

�� Balloting
for Executive Administrator

�� Election
results:�� Capt. Mark Leneski� 10

�� Abstentions�� 5��

1707�� 0307-60M, Acclamation for Elected MEC
Officers and Executive Administrator, presented by
Capt. Dave Vick and seconded by F/O Jeremie Brown.

I move for a vote of acclamation
for the elected MEC Officers and Executive Administrator.

0307-60M failed 15/1/0 due to EWR F/ O
Rep. Randy Newman’s Nay vote, so unanimous support did not pass.

1708�� Discussion on
the agenda for the remainder of the day.

Motion #20 – Recess for
remainder of the day – failed.

��

1718�� MEC
COMMITTEE REPORT UPDATES

�� Committee
One:

�� AI
#5 – Awaiting discussion with Counsel.

�� AI
#6� – In process of reworking resolution

�� Policy
Manual discussion to be held on Thursday, July 24

�� Committee
Two:�

�� AI
#4 – Recommendation that item be withdrawn

�� AI
#7� – Presented resolution with
incorporated changes.

�� Committee
Three:

�� AI
#3 – Recommendation that agenda item be withdrawn�

�� AI
#1 – Recommendation that agenda Item be withdrawn

AI #2 – Recommendation that
resolution be passed with incorporated changes.

1730�� Recess until
Thursday 0900

��

THURSDAY,
JULY 24, 2003

0905�� Meeting called to order by Chairman John
Prater. Roll taken by Secretary-Treasurer Nick Tulloh
and the meeting was properly convened.

0907�� OPENING
REMARKS

�
Chairman Prater allowed 10 minutes for the MEC
to review daily updates for Tuesday and Wednesday sessions. Changes provided to
F/O Mike Hynes.

CAL
NEGOTIATING COMMITTEE BRIEFING�– Capt. Tom Stivala, David Kreiger
(ALPA National E&FA), Seth Rosen (ALPA Representation), Brad Dietz and Ken
Baronoff (Peter J. Solomon Company)

��

�� Motion
#21 – Executive Session – passed.

Due to the confidential nature of
the financial and business plan presented, the briefing was conducted in closed
session.

1005�� Break

�� CAL
NEGOTIATING COMMITTEE BRIEFING cont’d.�
– Closed session

1215�� Lunch

1320�� Meeting called
to order and in regular session

�� SPEAKER’S
CORNER

Speaker #1: Capt. Alan Fishback,
IAH Captain, addressed the MEC on the issue of the Age 60 rule, detailing his
investigation of the rule through the years and some of his findings. Capt.
Fishback concluded the Age 60 rule should be changed and urged pilot group to
support change.� [Attachment #3]

��

�� CAL
NEGOTIATING COMMITTEE BRIEFING cont’d.��

1335�� Motion #22
– Executive Session – passed.

�
Capt. Stivala reviewed what is going on in
negotiations and provided a projection of steps to be taken in the near future
and a tentative timeline.

1545�� JOINT
NEGOTIATIONS UPDATE�– Capts. Curtis Ripple, Tom Stivala

�
Ripple reviewed status of contract sections
relevant to both pilot groups:�
Flow-through, transition, seniority/longevity.

1755�� Motion #23
– Return to Open Session – passed.

CAL
TENTATIVE AGREEMENTS

�
MEC voted to approve an LOA allowing immediate
implementation the five CAL Contract Sections for which Tentative Agreements
have been reached in Contract ’02. These Sections are:

17 – Missing, Internment,
Hostage or POW

19 – Discipline &
Discharge

20 – Non-Disciplinary
Grievances

21 – System Board of
Adjustment

22 –
Seniority

�
0307-61R, CAL Tentative Agreements, presented
by F/O Randy Newman and seconded by Capt. Bruce Stone.

�
Discussion.

�
0307-61R was adopted 8/0/7.

��

1814�� Motion #23
– Reorder the agenda – passed.

1822�� Motion #24
– Executive Session – passed.

CALEX Negotiations Update�– Curtis Ripple, Wayne Lilly, Neal
Schwartz, �� Brett Hinkie, Bruce York
(Representation)

��

Due to the sensitive nature of the
material presented, the briefing was conducted in closed session.

1930�� Recessed until 9
a.m. Friday, July 25, 2003.

0900�� Meeting
called to order by Chairman John Prater. Roll taken by Secretary-Treasurer Nick Tulloh and the meeting was properly convened.

OPENING REMARKS

�
At Capt.
Prater’s request, a motion was made to request that the ALPA Executive
Council delay consideration until the Council’s September meeting of the
CAL MEC flight pay loss request for Capt. Phil Nash or until after arbitration
on the anti-union animus case against Continental over Capt. Phil Nash’s
termination from the Training Department. Approved.

�
0307-62M,
Delay Consideration of Capt. Phil Nash’s Issue, presented by F/O Bill Sutherland and seconded by F/O Randy Newman.

I move that the CAL Executive Vice President requests that the ALPA
Executive Council delay Capt. Phil Nash’s issue until after arbitration.

0307-62M was adopted.

�
Executive
Vice President Pat Burke expressed his thanks to Capt. John Prater and F/O Nick Tulloh for their exceptional work for the
Association during their tenures, including the transition to ALPA.

�
Capt.
Prater updated the MEC on search for an additional Contract Administration and
Representation attorney. He said a candidate has been identified and will be
interviewed next week.

0915�� REPRESENTATIONAL PROTOCOL COMMITTEE�– Capt. Bruce Stone, Capt. Mark Meyer

�
Capt.
Bruce Stone reviewed the limitations faced by the RPC in its efforts to
formulate a plan that meets the pilots’ needs and at the same time fits
within the framework of ALPA policy.

�
Capt.
Mark Meyer addressed how the MECs would separate. To provide for this
transition, he recommended that the MEC be placed under the custodianship of
ALPA Int’l.

�
One of
the problems is that the ExpressJet pilot group does not want to be left
financially wanting with no backup in any separation.� Capt. Meyer explained that his plan allotted
no funds to the new XJT MEC, but $2 million was set aside to be used by a Joint
Standing Committee Subgroup (JSCS) and the balance of the current CAL MEC
account would remain with the CAL MEC.

�
Capt.
Bruce Stone asked for careful review of the proposal by the MEC, noting that
the proposal placed before the MEC was essentially the RPC protocols on MEC
separation prepared for presentation to the ALPA Executive Council.

�
Capt.
Mark Leneski suggested that the proposal be shown to other ALPA small-jet
carriers to get their reaction. He also asked questions about the funding of
the MECs. Meyer said that XJT would maintain its current office space and
equipment. Leneski said the XJT pilots were against this plan, saying it went
back to a form already rejected.

�
Capt.
Stephen Day asked if the proposal has been reviewed by Legal.� Capt, Meyer answered that it had not.

�
F/O Nick Tulloh noted that, as proposed, everything that
goes on in the JSCS would be purely voluntary, so a project could be approved
and, once begun, one of the MECs could withdraw support by refusing to provide
funding. He saw this as a major flaw.

�
F/O
Marty Shupp suggested that the RPC be allowed to carry the proposal to the
Executive Council and get its take on the proposal before the MEC take it apart
detail by detail, noting that it is likely to be changed from its current form
by the Executive Council.

�
Capt.
Meyer asked that all MEC members read the proposal carefully and submit
questions to him so that he can answer them in the document before taking it to
the Executive Council.

�
Capt.
Tom Howard asked about ALPA Constitutional separation questions and if the proposal
would face a stiff fight at the national level.�
Capt. Prater noted that the charge of the RPC was to develop the how,
not the why. Capt. Howard said that, even so, the need was great to educate the
pilot group about the reasons to separate the MEC. �He did not believe this proposal could be sold
to the MEC, much less the pilot group.

�
Capt.
Meyer said that, in his opinion, ALPA Int’l has been hesitant to move
forward because it saw a divided MEC that had not come up with a concrete plan
for separation and now we have the opportunity to provide one.

�
F/O Bill
Sutherland recalled that Capt. Duane Woerth has said several times that if
separation is what the pilot groups want, ALPA Int’l will support
it.� He also expressed concern about the
custodianship and inquired about other methods of separation.� F/O Sutherland also questioned funding,
noting that he thinks the detail in the proposal was premature and the MEC
needed to focus on broader issues at this point.

�
Capt.
Jay Panarello said he thought input from the national level would bring some
insight into the issue that is much needed if a viable proposal is to be
produced.

�
Capt.
Andy Bjorn noted that he had not had the opportunity to read the proposal but
he hoped the document itself would be a little less passionate about viewpoints
than the ensuing MEC discussion.

�
Capt.
Stone repeated his request that the MEC review the proposal and submit
questions.

�
F/O A.J.
Bertulli recommended that the RPC be released to go complete the proposal as it
was charged.

�
Capt.
Panarello made a motion to add F/O Nick Tulloh to the RPC as F/O Tulloh has been involved
in the financial discussions of this issue.

�
John
Prater questioned the MEC on the intent of a resolution passed at the last MEC
meeting to poll the membership about separation of the MEC. He asked if, since
the MEC decided not to address the separation issue until after the contracts
are completed, whether the issue should be the focus of any polling at this
point in negotiations.

�
Bruce
Stone said the intent was to get a clear answer about the interest of the pilot
group in moving forward with consideration of MEC separation.

�
Randy
Newman said he strongly suggested that direct polling on separation be delayed
to wait for the pilots to tell the MEC when to move forward. He said current
polls indicated it was not a priority of pilots right now.

�
Bruce
Stone said that a general priority question did not sufficiently address the
separation issue and some direction from the pilot group via direct polling
questions is needed.

�
Nick Tulloh reminded the MEC of the resolution passed at the last MEC meeting to
table discussion about separation of the MEC until after the contracts were
achieved.

�
Bill
Sutherland advocated asking the pilots three direct questions to determine
pilot interest in the issue:

o
Do they
want two separate MECs?

o
If so,
do they want to separate them now?

o
Do they
want to remain a single MEC?

�
Jay
Panarello noted that if it ever comes about that the pilot group decides to
separate, a plan needs to be in place to accomplish that separation. He
advocated placing Nick
Tulloh on the
RPC to help vet questions about the RPC proposal and that the result be brought
back to the MEC for consideration. He noted that the polling questions can be
done afterwards. He submitted that as a motion.

�
Bruce
Stone spoke against the motion, wishing to start the polling so that he can
take the information to the Executive Council in September.

�
Nick
Bonacci spoke against the motion, saying the MEC should back away from the
issue right now to give some time for consideration.

�
Bill
Sutherland spoke in favor of the motion.

�
A.J.
Bertulli brought forward a motion to table the motion to add Nick Tulloh to the RPC.

�
Randy
Newman asked that the motion be withdrawn because the RPC Chairman can appoint Nick Tulloh to the committee at his discretion.

�
Nick Tulloh asked that the decision to add him to the RPC be made by the MEC one
way or the other.

�
0307-63M,
Add F/O Nick
Tulloh
to RPC, presented by Capt.
Jay Panarello and seconded by Capt. Dave Vick.

I move to add F/O Nick Tulloh to the RPC Committee.

Discussion

1117�� 0307-64M,
Table Motion to Add Tulloh to RPC, presented by F/O A.J. Bertulli and seconded by F/O Nick Bonacci.

I move to table this motion
until the chairman of the RPC has time to review.

Discussion.

0307-64M was passed 13/0/3.

1120�� Break

1142�� Meeting called
to order and in regular session.

0307-65M, MEC Endorsement of the
Appointment of F/O Nick Tulloh, presented by Capt. Bruce
Stone and seconded by F/O Randy Newman.

I
move that the MEC endorse the RPC Chairman’s appointment of Nick Tulloh to the RPC.

�� 0307-65M
was adopted unanimously. 16/0/0.

1145�� MEC
COMMITTEE APPOINTMENTS

�
Prater
introduced F/O Chris Baur, a candidate for the position of Security Committee
Chairman.

�
Baur
took the opportunity to meet the MEC and introduce himself, his qualifications
and his interest in the position. A former officer of the U.S. Treasury
Department, Customs Service, he expressed his interest in representing the
pilots in the “cloudy pond” that TSA has made of national security.� He hopes to focus on education of pilots
about how to vet individuals coming on board carrying firearms, to act as an
advocate for security rights of pilots, and to represent air crews, acting as a
liaison to focus security efforts on prevention.� Using examples from his experience, he
explained the need for increased surveillance by and training for flight crews.

�
Resumes
of candidates for all vacant committee chairs were provided to the MEC.

1215�� Lunch

�� SPEAKER’S CORNER

Speaker #1:� F/O Brian Bagenski announced his candidacy
for LC 171 Secretary-Treasurer. Suggested that the regular agenda be firmed up
prior to beginning the MEC meeting and that changes to the agenda be updated
daily during the meeting on the CAL ALPA website.

Speaker #2:� F/O Nick Tulloh expressed his feelings upon leaving the
position of CAL MEC Secretary-Treasurer. F/O Tulloh requested that his written
statement be part of the written record of the MEC Meeting.� [Attachment #4]

�� COMMITTEE CHAIRMAN NOMINATIONS

�
Capt.
John Prater listed his proposed nominations for Chairmen of several committees,
asking for feedback from the MEC. Prater stated that MEC elections for
permanent Chairman positions should be held after the new MEC officers take
office Sept. 1. Local Council Representatives nominated no other candidates for
consideration. Prater said he was unwilling to allow these important committees
to remain without chairmen and appointed the following members as Interim
Committee Chairmen:

o
Jumpseat
– F/O Jill Clark

o
Merger
– Capt. Jim Brucia

o
Retirement
& Insurance – Capt. Dave Earnest

o
Security
– F/O Chris Baur

�� CALEX
NEGOTIATING SESSION�cont’d.

�� Motion
#25 – Executive Session – passed.

Due to the confidential nature of
the material presented, the briefing was conducted in closed session.

�1345�� Motion #26- Return to Open Session–
passed.

Committee 1 –�� F/O Bill Sutherland, as proxy for Capt. Jay
Panarello

�
Recommended
No Action on Resolution AI #5-0307 – Support and Guidance for the
Negotiating Committee.

0307-66M, Take on Action on AI #5-0307, presented by F/O Bill Sutherland and seconded by F/O Randy Newman.

I move we take
no action on this agenda item.

�� 0307-66M
passed.

�
Recommended
approval as rewritten of Resolution AI #6-0307 – CAL ALPA Communications
– 0305-46R. Nick
Tulloh
suggested that the resolution be attached to the Policy Manual as a standing
resolution.

0305-46R, CAL ALPA Communications, presented by F/O Bill Sutherland and
seconded by F/O A.J. Bertulli.

Discussion.

0305-46R was adopted.

0307-67M, Add 0305-46R to Policy Manual, presented by F/O Randy Newman and seconded
by F/O Jeremie Brown.

I move to implement this change to the Policy Manual.

0307-67M was adopted.

�
Recommendation
made by Jeremie Brown that the five open issues on recommended changes to the
Policy Manual be sent to the Policy Manual Committee.� Chairman Prater said that will be done.

Committee 3 –
Capt. Bruce Stone

�
Resolution
AI #1-0307 – Nomination of Randy Warren to CAL Negotiating Committee was
withdrawn by the source, Marty Shupp.

�
Recommended
approval as rewritten of Resolution AI #2-0307 – Pilots Seeking
Management Jobs to be Prevented from Immediate Return to ALPA Committees.

0307-68R, Pilots Seeking Management Jobs, presented by Capt. Bruce Stone and seconded
by F/O Randy Newman.

Discussion.

0307-69M, Table 0307-68R, presented by F/O Randy Newman and seconded
by F/O Bill Sutherland.

I move to table until the next regularly scheduled meeting.

0307-69M passed 14/1/0.

�
Resolution
AI #3-0307 – Retirement Concerns Regarding Flying Past Age 60 was
withdrawn by the source, A.J. Bertulli (addressed by previous resolution).

Committee 2 – Randy
Newman

�
Resolution
AI #4-0307 – Clarification of Committee Formation, Structure and Policy
was withdrawn by the source, A.J. Bertulli.

�
Recommended
approval as rewritten of Resolution AI #7-0307 – P2P Election
Participation Clarification. Inquiry raised about approval by Legal.

0307-70R, P2P Election Participation Clarification, presented by F/O Randy Newman and seconded by F/O Bill Sutherland.

Discussion.

0307-71M, Table 0307-70R, presented by F/O Jeremie Brown and seconded
by Capt. Andy Bjorn.

I move to table until the next meeting until we can have a review by
Legal.

0307-71M was adopted 10/3/1.

1428�� Adjournment
until the next regularly scheduled meeting of the CAL Master Executive Council.

RESOLUTIONS/MOTIONS

CAL MEC

July
21-25, 2003

0305-46R�� CAL ALPA Communications, presented by F/O Bill Sutherland and
seconded by F/O A.J. Bertulli.

WHEREAS CAL ALPA has a
newly implemented communication policy in place; and

WHEREAS the mass communication tools used have not been
defined; �

THEREFORE BE IT RESOLVED that methods of communications used by
Union personnel and volunteers under the CAL ALPA Policy Manual be clearly
defined; and

BE IT FURTHER RESOLVED
that this information be disseminated to Union personnel and volunteers via
e-mail.

0305-46R was adopted unanimously.

0307-57R�� Approval of CAL MEC Consultants, presented
by F/O Marty Shupp and seconded by Capt. Bob Klumb.

WHEREAS the MEC, in
compliance with the above cited section of the MEC Policy Manual, has
determined that it is necessary to contract the services of three outside
consultants, and

WHEREAS those
consultants will be required in the ongoing Section 6 negotiations, and

WHEREAS the
identification, vetting and contracts for those consultants have been
coordinated with ALPA International,

THEREFORE BE IT RESOLVED that the CAL MEC approves the hiring of
the following three consultants:

1)
PJ Solomon, Investment Banker

2)
Dan Katz, Merger Attorney

3)
Krista Fogelman, ERISA specialist

0307-57R was adopted
unanimously.

0307-58M�� Approve Investment Banking Firm for a
Budget Item, presented by F/O Marty Shupp and seconded by F/O Nick Bonacci.

I move to approve the budget
item for the JP Solomon, Investment Banking Firm.

�� 0307-58M
was adopted unanimously.

0307-59R�� Authorization to Prevent Seniority
Integration Proceeding, moved by F/O Marty Shupp and seconded by Capt. Jay
Panarello.

Whereas the Eastern
Pilots Merger Committee, Inc. (EPMC) and the Eastern Arbitration Group, Inc.
(EAG), have requested the National Mediation Board to provide a list of
arbitrators to select one to replace Arbitrator Richard R. Kasher with a new
arbitrator to address a dispute concerning seniority integration they allege
stems from the Labor Protective Provisions of the EAL CBA dated February 23, 1986;
and,

Whereas the
Continental Master Executive Council desires to exert full and complete efforts
to protect our seniority list from this improper attempt by the EPMC and EAG to
convene a seniority integration arbitration;

Therefore let it be resolved
that the MEC directs the MEC Chairman to authorize Merger Counsel Dan Katz, in
conjunction with the Merger Committee, to take all appropriate steps, including
the MEC’s initiation of or participation in litigation, in order to
prevent the convening of a seniority integration proceeding.

0307-59R was
adopted 14/0/1.

0307-60M�� Acclamation for Elected MEC Officers and
Executive Administrator, presented by Capt. Dave Vick and seconded by F/O
Jeremie Brown.

I move for a vote of
acclamation for the elected MEC Officers and Executive Administrator.

0307-60M failed
15/1/0.

0307-61R�� CAL Tentative Agreements, presented
by F/O Randy Newman and seconded by Capt. Bruce Stone.

WHEREAS the CAL MEC has previously approved tentative
agreements amending Section 11 – Seniority; and Section 19 – Missing,
Internment, Hostage or Prisoner of War Benefits of our current collective
bargaining agreement (CBA), commonly referred to as Contract ’97, and

WHEREAS the
Continental Airlines Pilot’s Negotiating Committee has recently reached
tentative agreement with CAL management regarding amendments to Section 20 –
Resolution of Disputes, of our current CBA, and

WHEREAS the
CAL MEC has carefully reviewed and considered the tentative agreement, which
includes new Section 19 – Discipline and Discharge; Section 20 –
Non-Disciplinary Grievances; and Section 21 – System Board of Adjustment, and

WHEREAS the CAL MEC
has determined to approve the tentative agreement amending Section 20 of our
current CBA, and

WHEREAS CAL
management has committed to implement the tentatively agreed to amendments to
Sections 11, 19, and 20 of Contract ’97 upon approval by this MEC, and

WHEREAS the
MEC has also reviewed and considered Article XVIII of the Air Line Pilots
Association’s Constitution and By-Laws as well as this MEC’s Policy
Manual regarding the requirements for membership ratification of agreements,

THEREFORE BE IT RESOLVED that the MEC concludes that the
amendments to Sections 11, 19 and 20 of Contract ‘97 do not require
membership ratification, and

BE IT FURTHER RESOLVED that the MEC hereby ratifies the
amendments to Sections 11, 19 and 20 of Contract ‘97, and

BE IT FURTHER RESOLVED that the CAL Pilots’ Negotiating
Committee is hereby directed to embody the amendments to Sections 11, 19 and 20
of Contract ’97 in a Letter of Agreement (LOA), and

BE IT FURTHER RESOLVED that the LOA be effective and
implemented upon signing.

0307-61R was
adopted 8/0/7.

0307-62M�� Delay
Consideration of Capt. Phil Nash’s Issue, presented by F/O Bill Sutherland and seconded
by F/O Randy Newman.

I move that the CAL Executive Vice President requests that the ALPA
Executive Council delay Capt. Phil Nash’s issue until after arbitration.

0307-62M was adopted.

0307-63M�� Add
F/O Nick
Tulloh
to RPC, presented by Capt.
Jay Panarello and seconded by Capt. Dave Vick.

I move to add F/O Nick Tulloh to the RPC Committee.

�� 0307-63M was tabled by 0307-64M

0307-64M�� Table
Motion to Add Tulloh to RPC, presented
by F/O A.J. Bertulli and seconded by F/O Nick Bonacci.

I move to table this motion
until the chairman of the RPC has time to review.

0307-64M was passed 13/0/3.

0307-65M�� MEC Endorsement of the Appointment of F/O
Nick Tulloh, presented by Capt.
Bruce Stone and seconded by F/O Randy Newman.

I move that the MEC endorse the RPC Chairman’s� appointment of Nick Tulloh to the RPC.

�� 0307-65M
was adopted unanimously. 16/0/0.

0307-66M�� Take
on Action on AI #5-0307, presented
by F/O Bill Sutherland and seconded by F/O Randy Newman.

I move we take
no action on this agenda item.

�� 0307-66M
passed.

0307-67M�� Add
0305-46R to Policy Manual,
presented by F/O Randy Newman and seconded by F/O Jeremie Brown.

I move to implement this change to the Policy
Manual.

0307-67M was adopted.

0307-68R�� Pilots
Seeking Management Jobs,
presented by Capt. Bruce Stone and seconded by F/O Randy Newman.

0307-68R tabled by 0307-69M

0307-69M�� Table
0307-68R, presented by F/O
Randy Newman and seconded by F/O Bill Sutherland.

I move to table until the next regularly
scheduled meeting.

0307-69M passed 14/1/0.

0307-70R�� P2P
Election Participation Clarification, presented by F/O Randy Newman and seconded by F/O Bill Sutherland.

�� 0307-70R was tabled by
0307-71M.

0307-71M�� Table
0307-70R, presented by F/O
Jeremie Brown and seconded by Capt. Andy Bjorn.

I move to table until the next meeting until
we can have a review by Legal.

0307-71M was adopted 10/3/1.

Attachment #1

MEC Chairman’s Report

CAL Master Executive Council

July 2003 Meeting

�Good Afternoon,

Ten years ago, on July
13, 1993, the pilots flying in the service of Continental Airlines,
Continental Express Airlines and Air Micronesia
voted to organize for the purpose of collectively bargaining contracts with
management. These contracts would define our wages, define our retirements and
secure our jobs through scope clauses. These contracts would protect our
seniority list rights during mergers, acquisitions or asset sales. These
contracts would define our seniority rights by establishing status, aircraft
and monthly schedules.� These contracts
would detail our rights, not only during company expansions and pilot upgrades,
but during cutbacks and furloughs as well.

Twenty years ago, July 1983, the seniority lists of
Continental and Texas International were merged into a single list. Pilots who
flew 69-seat DC-9s were merged into a single list with pilots who flew 250-seat
DC-10s; the emotions of joy and bitterness were tempered only by a fatalistic
acceptance.�

A combined MEC was formed and immediately confronted with
management’s new demands for concessions to the merged contract — a
contract that had already been pared by concessions titled Prosperity I and
Prosperity II during the preceding two years.

Twenty years ago, our Union leaders and negotiators were
locked in a struggle to bargain a third series of contract concessions to save
the combined Continental and Texas International and, with it, the jobs of the
2,025 Continental pilots.

Twenty years ago this September 23rd, management of
Continental Airlines declared bankruptcy, unilaterally abrogated all labor
contracts, instituted the Pilot Emergency Work Rules, changed the seniority
system by refusing to use pilots system seniority for recalls, and Frank
Lorenzo uttered his infamous words, “Labor was my only problem.”

Twenty Years ago, on October 1st, a pilot strike began. The
pilots became divided. Management won.�

Ten Years ago this pilot group responded. A new pilot union,
the IACP, was created by a group of Continental and Continental Express pilots
spearheaded by Capt. Rene Minjares. It was supported by pilots from across the
ranks of merged and associated carriers, ranging from pilots who commanded
19-seat turboprops to those flying Boeing 747s. Another group, with support
across the same ranks of pilots, led by pilots like Capt. Richard Smith,
desired to re-form a union under the collective banner of ALPA.� The pilots of Continental, Continental
Express and Air Micronesia
responded to 10 years of mismanagement and voted by a greater than 90 percent
majority to organize into a Collective Bargaining Unit under the Railway Labor
Act.

In the last 10 years, our predecessors negotiated and
defended two contracts for Continental and Continental Express pilots.
Agreements were reached establishing rules for operating Manila
freighters, Micronesian Island Hoppers, Military and CRAF charters, and new
equipment; for pilots’ rights in codeshares and alliances, expanded
Employment Opportunities and Furlough Protections, and two Bridge Agreements
for our Flight Instructors. All of these are among the myriad of contractual
benefits that did not exist during the non-union days of the Lost 10 Years.

At times, we can be severely critical of our own history and
of our efforts.� I tell you today that
airline pilots and their reps from other Unions — ALPA and Independents — not
only respect our members but admire our pilots’ determination and your
efforts to not allow our divisive history to shackle us to the bottom. We
should be proud to have overcome tremendous odds and be in a position to
negotiate new contracts to place us at the top of our profession.

Today, we are here with an opportunity to debate and set our
priorities for new contracts while providing for the defense of our current
contract. We have this opportunity because of the men and women who were strong
enough to stand up and fight by organizing individual pilots into a Union—Our
Union. Some of you have been here for all of that history and some of you have
joined more recently, enthusiastically contributing your wholehearted
effort.�

Hundreds of our members’ names are honored on the
plaques just outside this meeting room. Hundreds more today volunteer thousands
of their personal and family hours to support your efforts to produce solid
contracts upon which industry leading careers are built.� These are Proud and Professional Air Line
Pilots who deserve not only our best efforts, but who have earned and deserve
honest respect and true dignity from this management — Dignity and Respect for
past sacrifices and future hard work that can only truly be recognized by
addressing our members’ concerns and issues in new contracts.

I ask you to stand with me and recognize the efforts of all
of these men and women — our friends, our peers, our fellow trade unionists,
our members.

It would be easy to dwell in the past or even wallow in it,
be it from 20 years ago, from the Lost 10 Years or from more recent slights in
caustic debates. Our Union has successfully looked
backward in an effort to heal some of the worst wounds inflicted by previous
managements. We have committed to review and address other recognized
injustices stemming from the past.

But today, it is the future we must focus upon.

Whether that future is measured by months remaining until a
last flight, by the 15 years of a B-737 Captain forced back to a right seat, by
a four-year Embraer First Officer struggling to survive while his future is
threatened by new corporate restructuring shenanigans or by a furloughed pilot
looking to resume his or her career with our airline, it is the future of our
members, our airline and our Union we must concentrate on.

This week we will put the past aside and concentrate on the
negotiations for Contracts ’02. You, the elected representatives of our
pilot group acting as the Continental Master Executive Council, will:

�
Review and vote on the sections completed by our
Negotiating Committees.

�
Review the plans for the next round of
negotiations and the “pace” of management responses to our
proposals.

�
Review Issues of Airline System Scope and
Enhanced Flow-Through and Furlough Protection.

�
Review the financial status of our company and
management’s business plan with our Investment Bankers and ALPA’s
E&FA.

�
Review and modify the SPC plans for future
domicile events and strike preparations.

�
Review the status of tentative agreements on
Group Grievances and the plan for arbitration of other disputes.

�
Review the Executive Summaries of polling data
and consider the current position of our membership on contract issues and
strike preparation.

This week you will elect MEC Officers and fill Committee
Chairman vacancies.

This week you will receive updates on the status of
litigation against the Association and receive a written legal update from our
Merger Counsel Dan Katz on the latest permutation in the saga of litigation
filed more than a decade ago to force Continental into a seniority arbitration
with pilots from Eastern Air Lines.

This week you will consider modifications to our MEC Policy
Manual, ranging from minor clean up items to the required annual review of
Union Flight Pay Loss, and debate setting policy addressing Union committee
members applying for a position in Flight Ops management.

You will review the Budget and vote on proposed
modifications, primarily to properly fund our Investment Banker advisors and
the Retirement and Benefits Committee.

You will receive the report you directed the R&I
Committee to complete on the CARP and related issues as they pertain to any
future change of the Age 60 rule. You will debate several proposed resolutions
revolving around the Age 60 FAR.

You will receive updates on proposed Congressional
retirement legislation. If there was a ever a doubt that you should leave here
and recruit each and every one of our members to join and support ALPA PAC via
a dues check-off of $10 to $20 per month, the threat to continuation of our
Lump Sum and Defined Benefit Plan should convince even the most suspicious to
do it today for his or her family’s future. I know exactly what signal it
would send to management if our members send in their voluntary PAC Check-off
cards.

You will receive updates on system staffing and the issue of
IRO augmentation on international flights that exceed 8 hours.

You will receive a briefing from Ad-Opt on
management’s request to our CALEX Negotiating Committee to consider a change
to a Preferential Bid System from our current Line and Pairing system in the
new CBA.

This week we begin the second decade of the continuation of
our Pilot Union history at Continental, Air Micronesia
and Continental Express. Our members who have been here since 1993 will receive
a Ten-Year ALPA pin to honor their contributions and sacrifices. You will
deliberate and debate and set a course for our members’ future.� You will continue the hard work of those
Union activists before you and establish the foundation for those who succeed
you.

Many times it has been stated that this contract will be a
marathon. It is turning into a triathlon, but I am positive that our MEC and
our members are up to the trial.

In the spirit of the Olympics, Let the Games…that is,
the July Continental MEC Meeting… Begin.

Thank You.

Capt. John H. Prater

CAL MEC Chairman

Attachment #2

MEC
Vice Chairman’s Report

CAL Master Executive
Council

July 2003 Meeting

The following
is a thumbnail sketch of committee activity and reports submitted for this
meeting.

COLA & Furlough Coordinators

The
coordinators handled numerous calls relating to the furloughs and flow-downs
that occurred in the May-June time frame. In addition, assistance was provided
for our military leave pilots and their families, as needed. I want to thank
and recognize the efforts of Bill Sablesak, Rick Beatty and Carl Valeri, who
assisted many of the 1,004 pilots who are involuntarily furloughed from CAL and
CALEX. All three of these pilots are on furlough or COLA themselves.

Contract Enforcement

The CALEX
Contract Enforcement Committee has been quite busy on a number of fronts. Steve Curry joined the CALEX Negotiating
Committee during June domicile road shows and provided grievance updates to the
pilots.

The following
are just a few of the issues that have been resolved or are in discussion:

�
Trip
Trades being erroneously denied based on the 2:30 drop criteria (Section 21G)
using soft time – Resolved.

�
Base
Advancement Pay Protection Issue – Resolved on a one-for-one basis.

�
Voluntary
Displacement Issues.

�
Trip
Trade Issue on a day(s) off regarding minimum pay. Resolved by clarifying the company’s
application of minimum pay if the trip is subsequently traded.

�
Flight
Ops Attendance and Reliability Program FIL 03-048 – While the company has
not changed the A&R policy, it have changed its enforcement. Previously,
the policy was not strictly enforced. The company has begun a comprehensive
review of each pilot’s A&R and initiated meetings to document and
serve warning letters. The company has yet to initiate any further discipline
as outlined in the FIL.

�
Flow-back
Issues such as hotel rooms, vacations, providing copies of the CBA and
hotel/expenses after commencing training were resolved in the favor of the
pilots.

Refer to the
committee report in your binder for more detailed information.

Late last
week, the framework for settlement of a number of outstanding grievances was
achieved and will be briefed later this week.

Grievance

The Grievance
Committee and the Representation Department has been involved in coordinating a
response with the crew members of the NRT flight that diverted into ANC in
February 2003. All four crewmembers were subject to discipline. However, one
was terminated and one other is grieving management’s disciplinary
action.

The Committee
also participated in the quarterly Grievance Review Panel via conference call.
The quarterly Grievance Review Panel reviews all outstanding grievances that
are Level 2 or Level 3. The panel consists of the MEC Officers, members of the
Representation Department and MEC Grievance Committee members.

Hotel

The Hotel
Committee continues to conduct on-site inspection of current and potential
hotel properties throughout the CAL and CALEX systems. Thus far, the industry
downturn has not had a negative effect on the quality or selection of hotels
because the hotel industry is experiencing the same economic pressures as the
airlines. The Committee continues to coordinate with the Security Committee in
efforts to deal with the potential geopolitical hot spots abroad.

Human Performance

Currently,
there is an effort to raise member awareness about the services that Pilot
Assistance and Professional Standards can provide. The Committee Vice Chairman
and ProStan volunteer, CLE F/O Scott Stuetzer, has been developing posters to
advertise the committees’ services and personnel.

Pilot
Assistance has been quite busy handling not only substance abuse related
issues, but other personal issues such as family problems and health issues. If
you become aware of pilots in your domicile who have ongoing personal issues
that might impact their performance or employment, it might be helpful to refer
them to Pilot Assistance to help head off trouble before it starts.

A number of
the Professional Standards members attended an ALPA Professional Standards
conference the week following the May MEC meeting. In addition, F/O Gwen
Schallow, from ProStan, and F/O Joseph Goldwasser, from Pilot Assistance, have
developed and led training classes with members of the IAM, the Flight
Attendants’ Union, to provide a new avenue to resolve pilot/FA conflict
without resorting to management intervention. More classes are scheduled in the
future.

The HUPER
Group will be coordinating with the CAL EAP department to train pilots to
handle aviation trauma issues in accordance with the company’s SAFE
program. This is in addition to the similar CIRP training available through
ALPA.

Jumpseat

The Jumpseat
Committee has been quietly active while we have been waiting for the TSA to act
on the Off-line Jumpseat proposal that was developed jointly by ALPA and the
ATA. It appears that the restoration of the off-line jumpseat will occur in the
near future.

Legislative Affairs

Mike Coffield
has been very active on Capitol Hill recently, as potential legislation for
company-funded defined benefit pension plan relief develops. The Committee has
been coordinating with ALPA’s Legislative Affairs Department on this and
other issues circulating in Congress. There has been some activity on the
pension fund front and you have been briefed by Capt. Woerth regarding the
status of the legislation currently progressing through Congressional
committee.

Strategic Preparedness

CAL:� SPC planned and supported the “super
servicing” road show to all of the CAL domiciles. We want to thank each
of you for your assistance and participation in the planning and execution of
the effort. The Committee is still in somewhat of a holding pattern as the
current round of negotiations unfolds. Once there is a clear picture of where
those sessions are headed, the Committee will be able to determine what type of
communications and education programs will be necessary.

CALEX:� The Committee has been very busy providing
the educational support for their negotiations efforts in the form of road
shows and using all of the tools available to keep the pilots up to date on
progress at the table. The Committee continues to refine the plan to inform and
prepare the pilots for negotiation of the major economic sections that will
complete the open items remaining to be placed on the table.

Training

CAL:� With little training occurring other than
annual and re-current training, there has been little activity regarding
individual pilots. The Committee has been following the development of new
scenarios and focuses. One is the B-737 LOFT involving ETOPS procedures.
Another is the B-756 LOFT with segments into Bogota. The Company maintains that
neither LOFT scenario is an attempt to qualify pilots in these operations. The
Committee will monitor these issues.

The Committee
is working with the Communications staff to put the final touches on a training
survey to be conducted in the near future.

CALEX:� The Committee members were very active in the
training syllabus overhaul that was precipitated by the safety audit performed
by the Central Air Safety Committee (CASC) in the first quarter of 2003. The
company was very receptive to the recommendations and there is a renewed focus
on standardization across the system. Committee members Mike Milton and Brian
Stronach are working with Frank Pizzonia of the CASC on a project to improve
training and classification of international and challenging domestic
destinations. They will report as their work develops.

If we have
any other new reports from the MEC committees, we’ll pass them along as
they are received.

Attachment #3

My
name is Alan Fishback, I am a reserve 737 Capt in Houston. I am here to talk
about the Age 60 Rule. Thank you for this opportunity to be here in
Speaker‘s corner.

I am
56 years old, about 3 l/2 years from retirement. I have been interested in
changing the Age 60 Rule for many years, beginning when I was a F /0 at
Frontier in 1978.� By the early 1980s I
was seeing many Captains being forced to retire when they didn’t really want to
or just weren‘t ready. They were mostly healthy, happy in their work, and
I enjoyed sharing the cockpit with them. It seemed a shame to lose their
valuable experience for no justifiable reason other than the Age 60 Rule. For
some of them, they said they were going to miss flying, and others were faced
with a financial challenge.

Most
importantly, I thought, “Some day that could be me”. So I began my
own journey on the path of opposition to the Age 60 Rule. I started with my
district Congressman in Colorado where I lived. When I went to see Congressman
Joel Hefley and explained my reason for seeing him, the Age 60 rule, he pointed
his finger at me and said, “You know, my brother-in-law is an airline
pilot, and every time he comes over to my house he gives me a hard time about
that Age 60 rule. I’ll tell you what, we are going to change that rule.”
Well, of course he didn’t know what he was up against. Today, Cong. Hefley is
still in the House of Representatives, and the Rule still hasn’t changed. But
to his credit, Joel Hefley has tried to overturn the Age 60 rule many times,
and has been a cosponsor of legislation for this purpose every time it has been
proposed right up to today. HR 1063, to change the retirement age for pilots to
65, is in the US House of Representatives in the 108th Congress, and
Congressman Joel Hefley of Colorado is a proud cosponsor once again.� S 959 is the companion bill in the Senate,
proposed by Senator Inhofe of Oklahoma.

At
the most fundamental level, at the very core of the Age 60 Rule, there is for
me the wrongfulness of what is forced on all of us, good citizens, responsible,
patriots, some of us military veterans, being forced to obey a government
regulation that was not justified on any credible medical or scientific basis.

I
have learned that the Age 60 Rule was to a great extent based on an act of
personal favoritism. In 1959 the FAA Administrator, Elwood Quesada, did a favor
for his WW II fellow Army staff officer, CR Smith, who at the time was the
Chairman of American Airlines. Through the Freedom of Information Act, the Professional
Pilots Federation obtained, among other many other documents, a personal letter
from CR Smith to “Dear Pete” Quesada asking the FAA Administrator to
establish a regulatory retirement age for pilots because of Smith’s inability
to conclude a satisfactory labor negotiation with American’s pilots.� CR’s�
more expensive senior pilots were ungraciously refusing to retire from
the cockpit. Two months after CR ‘ s letter to “Dear Pete”, the FAA
issued a Notice of Proposed Rulemaking indicating that all US airline pilots
would be terminated from employment on their 60th birthday for “safety
reasons”.� Ten months later, the Age
60 Rule became final. And not too long after the Rule became law, Pete Quesada
left his position as FAA Administrator and took his place on the Board of
Directors at American Airlines.

For
more than 40 years, the FAA has defended the Age 60 Rule on the basis of
statistically flawed and misconstrued medical reports that today no respected
medical professional will recognize. Indeed, just this year, 2003, a study by a
research team at the Johns Hopkins School of Medicine concluded that there is
simply NO medical or statistical safety basis for the Age 60 Rule. And the
actual safety record of airlines around the world who have for years been
allowed by their governments to continue to employ pilots past the age of 60
demonstrates that an excellent safety record has been maintained.

So
if we conclude that Age 60 is not appropriate for airline pilots to retire,
what age is appropriate? It is true that any chronological age limit would be
arbitrary. Removing the upper age limit completely, however, does not have
support in the Congress, and the European regulatory standard of 65 seems
acceptable, has been shown to be safe, and is a fair and reasonable, but
significant, improvement over the present Age 60 Rule.

What
would happen to us if the retirement age went to 65? A lot of things would
certainly change. Consider that your lifetime earnings would increase
substantially. Multiply your expected annual salary in the year prior to age 60
by five if you worked to 65. Add to that the increase in Social Security
benefits at 65 versus reduced benefits at 62. Add the effect of NOT beginning
to immediately draw down your retirement funds at 60 and instead adding to them
and allowing them to grow for five more years. Do your own math. Clearly there
are some significant numbers here.

Consider
what if, God forbid, CAL goes broke again like it did in 1983 when our pilot
retirement plan was terminated, or even worse, like US Airways is experiencing
today, a takeover of the plan by the Pension Benefit Guarantee Corporation.
Those pilots are looking at a maximum benefit of $28,000 per year, and many
will get less. If those pilots were allowed to work to age 65, the PBGC maximum
becomes $44,000 per year. That’s a nearly 40% whack courtesy of the Age 60
Rule.

Lets
take a look at some of the most worrisome potential effects of changing the Age
60 Rule. Some of the questions that come up are these:

Would
an already retired pilot be able to return to work and reclaim his previous
position and seniority number?

In
my view, NO. There is no provision in our pilot employment contract for a pilot
who has terminated his employment at the airline by retirement, has accepted
his retirement benefit as a settlement for his years of employment, and whose
name is no longer on the CAL System Seniority List, to assert that he has a
right to return to his previous position. There is no reason to think that
anyone attempting to assert such a position would be successful.� A change to the Age 60 Rule WOULD, however,
allow a retired pilot to exercise his fundamental right to seek employment in
his profession, to apply the skills he has acquired over a lifetime, at ANY
airline as a new employee. A 60+ pilot could perhaps find employment at an
expanding carrier like Jet Blue or Southwest and perhaps see the left seat
again, or perhaps even see it for the first time.

Would
I have to work past 60 if I didn’t want to?

NO.
Even if the retirement age is moved to 65, when you decide to retire before
that point, no one is going to come to your neighborhood, knock on your door
and tell you, “You have to come to work now.”

How
would our present retirement plan be affected? Would a pilot who wanted to
retire at 60 be penalized?

Under
our present contract, the specified retirement age for a pilot is 60. So a
change to the regulation would require a renegotiation of this and other
provisions of the retirement plan. There are several ways we may choose to
re-engineer our plan. The important thing to keep in mind is that the end
product will be achieved through a negotiation process that is driven by our
prioritizing our needs and wishes. For example, we may choose to specify that pilots
who still want to retire at 60 may do so and receive the same benefit that they
do today under the Age 60 Rule. At TWA,�
the specified retirement age was 65 for all employees. Since pilots were
required to terminate at 60, they had a provision in their contract called
“Subsidized Early Retirement”, allowing a pilot to retire at 60
without an “early retirement” reduction. So there are ways around the
early retirement reduction that have been used in the past at other airlines.
And, as we know from recent history right here at Continental, Second Officers
were able to continue working past 60 with no great upheaval in the CARP.� By using our resources and some innovative
thinking we can achieve a desirable result.

What
about furloughed pilots?

In
my view, this is the only serious reason why you would want not want to change
the Age 60 rule at this time. I had this experience, twice, at Frontier, and it
was no picnic. My wife took a job at the school cafeteria at $400/mo and I got
a job as a car salesman. It was not pretty. Two things come to mind about this
problem. In some cases today, the greater harm is being experienced by pilots,
especially those at a bankrupt carrier, who have reached age 60 and are going
to get a max of $28,000 for the rest of their life. There will be no
“recall” from that “furlough”.�� It is a life sentence.� And no adjustment for inflation, which
diminishes PBGC payments even further in the years ahead.

Secondly,
if you expected to be recalled from furlough at age 40, under the Age 60 rule
you would have 20 years remaining on your career, working from 40 to 60. If the
retirement age changed to 65 and in the worst case you were now recalled at 45
instead of 40, you could work to age 65. From 45 to 65 you would still have the
same 20 years remaining in your career. A “neutral” effect in the
number of pilot career earning years.� I
really believe most pilots would not work to the maximum retirement age if it
is moved to 65.� Most would choose to
retire before that time, at 62 perhaps, when they can receive at least a
reduced Social Security benefit.� As you
may already know, if you do not work at all between 60 and 62 you will receive
a further reduction from the already reduced benefit at 62.

To
me, with the exception of the hardship at this time on furloughed pilots, this
is almost a no brainer. Yes, there are some uncertainties about how it would
all work out, uncertainties that would persist through a transition period of a
few years. And pilots hate uncertainty. But the potential benefits outweigh the
drawbacks and uncertainties.

If
you agree with me but are thinking “yes the Age 60 Rule should be changed,
but not right now, I want to wait a few years, see some retirement off the top,
move up a little, THEN I would like to see the Rule changed. . . . “, you
must realize that strategy won’t work. Because when you get close to retirement
you will be standing here in Speaker’s Corner where I am, addressing a
new group of skeptical younger pilots who will be saying to themselves, “Yes
the Age 60 Rule should be changed, but not right now, I want to wait a few
years,� etc..”. And the cycle will
continue and the Rule will remain. The Rule will only change if enough of us
are willing to step up and conclude that we will have to accept some discomfort
for awhile, in order to make a better day down the road.

How
do you go about making a change? We must get ALPA national to change its
official policy on Age 60. The movement within our union to do just that is
under way, led by airlines such as America West and American Trans Air, whose
MECs have already taken an official position in opposition to the Age 60 Rule.
We must talk� to our elected ALPA
representatives, both here at CAL and at the national level, and express our
views. Outside ALPA, Southwest Airlines (SWAPA)�
has taken a position opposing the Rule, with unrestricted support from
Herb Kelleher and the rest of their management.

We
can also join with other pilots in organizations that are active in this
effort, such as the Professional Pilots Federation ( www.ppf.org) and Air Line
Pilots Against Age Discrimination (www.alpaad.com). These are grass roots pilot
groups that travel to Washington, lobby Congress, write letters, etc. Pay a
personal visit to your Congressman and your Senators. Get your family involved
writing letters – your sister, your mom, your neighbor.

At
present we are flying to a destination, the Age 60 International Airport. We
have no weather forecast, and no�
alternate. If you have add fuel in your 401 k, check the gages, you may
have a fuel leak.� Another terrorist
attack, a war with North Korea, a prolonged economic decline or ill timed stock
market collapse, a divorce, kids entering college, a parent with catastrophic illness
– – you could arrive at the Age 60 outer marker like many of our colleagues
today, with weather below minimums, no alternate, no ideas, and not much extra
gas.

Changing
the Age 60 Rule is about gaining a choice for yourself and other pilots, giving
all of us an alternate. Land if you can, use the alternate if you need it.

The
Age 60 Rule should be changed for many reasons. But it will never change until
enough of us convert our desire into action, and create the change for
ourselves.

Thanks
for your time.

Attachment #4

Address by
Secretary-Treasurer Nick Tulloh

Gentlemen,

This is my second
time to address the MEC as a line pilot, and my last meeting as an MEC Officer.

There are a lot of
things about this job that I’m not going to miss, but I’m going to
miss the staff. You guys better take care of them.

I’m not going
to miss Captain Tripson telling me he hopes I die in a motorcycle accident and
that the truck accident that nearly killed my wife was my fault. Incidentally,
we were parked at the time. I’m not going to miss the e-mail invective
and inane profanity from FO Bertulli. I’m not going to miss the long
hours and time away from my family and hobbies, though I’ve never
complained about it. Some have said that FTFPL pilots need to fly more to get
in touch with the life of the line pilot. In my estimation, it’s going to
be like an extended vacation.

I want to say just a
few words about the elections on Wednesday.

John Prater is a
better man than I. Pat Burke is a better man than I. Both were magnanimous in
defeat. I find myself taking it personally, maybe because I take the job so
personally. I always tried to do the right thing, either black or white. I
burned a company-paid move from HNL to IAH rather than have the union pay
because I thought it was the right thing. When my insurance company gave me a
$2700 check for lost wages after my truck accident last year, I signed it over
to the union because I thought it was the right thing.

As HNL SO Rep, my
constituents were the most senior, over-60 pilots in the company, and the brand
new, just-off-furlough guys scraping the bottom of the seniority list. I was
elected three times so I guess I managed to find some sort of acceptable
balance representing them. I had at least one flaw as a Rep. I wasn’t
very politically astute. Occasionally I could have represented them better if
I’d participated in the back room BOD wheeling and dealing instead of
just meeting issues at the BOD head on. That was also a flaw in dealing with
the CPO and Lex Oakes is probably still carrying around a few extra blood
pressure points because of that.

I guess I’m no
more politically astute now than I was then because I truly didn’t
anticipate the results of the elections on Wednesday. We’re accustomed to
bad news in this business; most of us stipulate that bad news is easier to take
if you understand the reasons for it. Perhaps one of my good friends around
this table might one day explain to me the groupthink that set up the
elections, which in my view were bad news for our pilots. They were clearly
preplanned and I just don’t get it.

Perhaps the split-the-MEC crowd thinks they have a better shot with Jay and Steve. They probably do. I thought it interesting
that the only candidate that Bill queried about the issue was John. Perhaps the CALEX Reps believed the one
side of the stories they were fed about unjust expense denials for their guys. Perhaps I chose the wrong meeting to
raise the issue of the excessive amount of dues money being spent on alcohol at
union group dinners.

The only person at
this table that ever raised a competence issue with me was FO Bertulli and, as
Captain Westcot said when FO Bertulli tried to Article VIII him, I consider
that a badge of honor. Speaking as a line pilot, I hope that the IAH pilots
will unite behind Chris Dowell if FO Bertulli has the audacity to run again
this fall. It’s my belief that there is a sub-group on the pro-split-MEC
side whose goal is to remove ALPA from the Continental property. Those who have
a sincere wish to split, for whatever legitimate reason they may have, are
being used by those who believe a decertification effort only has a chance for
success if we cut the CALEX pilots loose.

Maybe I should have immediately authorized new laptops for all the Local Council
Secretary-Treasurers instead of asking what they planned to do with them. Maybe I should have paid those expense
reports that claimed more than the receipts totaled. Maybe I shouldn’t have been concerned about the liabilities
connected with Reps unilaterally incurring expenses for potentially illegal
political activities. Maybe it
shouldn’t have bothered me when Reps intentionally circumvented ALPA
policy to get expenses approved. Maybe
I shouldn’t have questioned the $360 cell phone bills from the subcommittee
members or the dinner at the strip club. Maybe
then my good friends around the table, who have never indicated any
dissatisfaction with my performance, who in fact have indicated complete
satisfaction, would have voted for me on Wednesday.

But you know what, I
was doing the job that I was unanimously elected to do as best I could. I
wouldn’t change a thing. I still wouldn’t authorize one
questionable expense if it meant a hundred more votes.

No one here is
irreplaceable. When you start to think that you are, it’s time to move
on. I’ve accepted the fact that I’m moving on and that the man
replacing me is more than capable of doing the job if he commits to putting in
the time. The knowledge that I’m leaving the finances of the union in
good hands is a small consolation.

While no one is
irreplaceable, some are uniquely qualified and incredibly valuable to our
pilots. In my humble opinion, your decision to replace John Prater ranks as
the single most ill-considered action I have seen this body take in the last
seven years, and I’ve seen some doozies.

There’s a
standing joke about being plaqued when your service to the union ends. I
request that you save the cost of a plaque for me and leave it in the MEC
account.

I’ve already
talked to Steve about a schedule for a complete handoff. I
intend to fly back as much as possible.

AIR LINE PILOTS ASSOCIATION

Master
Executive Council Members:

CAL
MEC Committees:

0930�� Motion #7 – Recess to Committee Caucus
– passed.

1305�� Meeting called to order and in regular session.

SPEAKER’S CORNER

1347�� MEC COMMITTEE REPORTS

F/O Jeremie
Brown�� – CLE�� CA Kevin Richardson�� – FI

MEC Committee Agenda Item
Assignments

Committee 1:

Committee 2:

Committee 3:��

WEDNESDAY,
JULY 23, 2003

FRIDAY,
JULY 25, 2003

MINUTES

F/O Bill
Sutherland�� – GUM

Master Executive Council Members:

CAL MEC Committees:

0930��� Motion #7 – Recess to Committee Caucus – passed.

1305��� Meeting called to order and in regular session.

SPEAKER’S CORNER

1347��� MEC COMMITTEE REPORTS

F/O Jeremie Brown����������������� – CLE������������������������� CA Kevin Richardson�������������� – FI

MEC Committee Agenda Item Assignments

Committee 1:

Committee 2:

Committee 3:����

WEDNESDAY, JULY 23, 2003

FRIDAY, JULY 25, 2003

MINUTES

F/O Bill Sutherland������������������ – GUM

Master
Executive Council Members:

CAL
MEC Committees:

0930�� Motion #7 – Recess to Committee Caucus
– passed.

1305�� Meeting called to order and in regular session.

1347�� MEC COMMITTEE REPORTS

F/O Jeremie
Brown�� – CLE�� CA Kevin Richardson�� – FI

MEC Committee Agenda Item
Assignments

Committee 3:��

WEDNESDAY,
JULY 23, 2003

FRIDAY,
JULY 25, 2003

F/O Bill
Sutherland�� – GUM