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Page 2 Eastern's method, which is now standard in the industry, and we agreed as long as it could be made to work so that no pilot now flying DC-3 equipment would lose any money. This was accomplished on page 5 paragraph (f) by increasing the speed for mileage pay computation from 150 mph to 155 mph. 8. Paragraph (g) on page 5 fixes the guarantee for Transoceanic First Pilots in lieu of the fixed salary. [[left margin]] RFS. Capt [[/left margin]] 9. Section 4 (a) on page 5 Minimum Pay Reserve Pilots states thoroughly a new method of computing Reserve Pilots pay. It simply means that a Reserve Pilot will now get his copilot pay and in addition will get any hourly pay, gross weight pay, mileage pay, and Transoceanic pay for every hour flown as Captain beginning from the first hour flown each month, but no case will he get more than what he would get were he assigned as a regular First Pilot. This eliminates the situation which we had previously where a Reserve Captain working to make up his minimum guarantee was not paid any more money than the pilot flying along side of him. Also, the Reserve pilot is now compensated for all the hardships of reserve duty ontailed as part of his job. 10. Page 6 Section 5 (a) gives domestic copilots a salary increase and it also foresees the possibility of six year copilots in Colonial Airlines. It provides for regular increases up to and including six years. Transoceanic copilots are given an increase accordingly as indicated in this section. 11. Page 9 Section 10 sets up a new vacation pay scale for First Pilots and Reserve Pilots. Briefly, it means vacation at no loss in pay. The method of computing is outlined in (B) of this section. A practical example is shown indicating how a regularly assigned First Pilot will be paid during the month he takes his vacation. This section also shows how Reserve Pilots get paid in the month he takes his vacation. The method for determining vacation pay for Transoceanic First Pilots is also shown. 12. Page 11 Section 15 (A) entitled "Sickness and Injury". This is something entirely now in our contract for the domestic operation, and it is very important to all pilots. It provides for sick leave at no loss in pay. Sick leave is earned at the rate of one day for each month of service and is cumulative for a period of 60 days, and according to the other provisions of this contract it means that this section is retroactive to the date of employment of each individual as a pilot with the Company. The Contract Committee is very proud of this particular section and it is intended to ease the financial burden of anybody who is unfortunate enough to be distressed. Since it is a new section the company has accepted this is in the spirit in which it was offered by the Contract Committee, principally that it be used just for the purpose it is intended, i.e. sickness or injury. It can readily be seen that any abuse of this section on the part of the pilots could be a reason for the Company desiring to "bargain out" this section in future contract negotiations. 13. Page 12 Section 16 entitled "School or Qualifying Compensation" you find a new section. This section was referred to before in this report and it was intended to provide for training while free