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August 18, 1949

Report on the New Contract Signed August 16, 1949. Effective August 1, 1949, As Stipulated in Section 39 of this Agreement, with Respect to the Major Changes Incorporated.

Attached please find a mimeographed copy of our new agreement. The copies were very graciously offered to us by the Company so that the information contained will be available to the pilots forthwith. They will adequately serve the purpose for the time being.

The "Contract" just agreed to is without any doubt the longest negotiated contract, in point of time taken to conclude these negotiations, in the history of Colonial Airlines and the pilots covered under this "Agreement". It is evident that any contract negotiated to improve the rates of pay, working conditions, working rules, etc., of such a group as the pilots are economically, is difficult. Obviously, any future contractual gains made by the pilots of this Company will become increasingly difficult as our working conditions improve.

The purpose of this report is to point out the major changes to be found in this contract. In the first place you will notice that we have gone back to one signed "agreement". This "agreement" incorporates both the "Transoceanic Operation" (Bermuda Operation) and the Domestic Operation. This was accomplished by inserting paragraphs in the pertinent applicable Sections entitled "Transoceanic Operation".

The following are the other major changes:

1. On page 2 paragraph (h) "Flying Pay Purposes" the term Transoceanic pay was added.

2. On page 2 paragraph (i) the definition for Transoceanic Operations was added.

3. On page 3 paragraph (b) entitled "Hourly Pay" the increments were brought up to 325 MPH as outlined.

4. Paragraph 2 the Transoceanic pay differential of $1.50 per hour was included.

5. Paragraph 3 was changed so as to give us the right to initiate negotiations with the Company at any time an aircraft is procured with a speed in excess of 325MPH.

6. On page 4 paragraph 6 line 3 after "on new routes" the words "or new equipment" was left out for the reason that it is now covered on page 12 Section 16 paragraph (a) entitled "School or Qualifying Compensation".

7. The method for computing mileage pay has been changed. Paragraph (e) of the same page outlines the same method as used in the Eastern contract since the method for mileage pay computation used by Colonial was the only one in the business. The Company asked for the right to use