Attachment V CBA-WD.pdf

REGISTER OF WAGE DETERMINATIONS UNDER | U.S. DEPARTMENT OF LABOR

THE SERVICE CONTRACT ACT | EMPLOYMENT STANDARDS ADMINISTRATION

By direction of the Secretary of Labor | WAGE AND HOUR DIVISION

| WASHINGTON D.C. 20210

| Wage Determination No.: 2022-0071 Daniel W. Simms Division of | Revision No.: 2 Director Wage Determinations | Date Of Last Revision: 12/27/2022

Note: Contracts subject to the Service Contract Act are generally required to pay at least the applicable minimum wage rate required under Executive Order 14026 or Executive Order 13658.

|If the contract is entered into on or |Executive Order 14026 generally applies to | |after January 30, 2022, or the |the contract. | |contract is renewed or extended (e.g., |The contractor must pay all covered workers | |an option is exercised) on or after |at least $16.20 per hour (or the applicable | |January 30, 2022: |wage rate listed on this wage determination, | | |if it is higher) for all hours spent | | |performing on the contract in 2023. |

|If the contract was awarded on or |Executive Order 13658 generally applies to | |between January 1, 2015 and January 29, |the contract. | |2022, and the contract is not renewed |The contractor must pay all covered workers | |or extended on or after January 30, |at least $12.15 per hour (or the applicable | |2022: |wage rate listed on this wage determination, | | |if it is higher) for all hours spent | | |performing on the contract in 2023. |

The applicable Executive Order minimum wage rate will be adjusted annually. Additional information on contractor requirements and worker protections under the Executive Orders is available at www.dol.gov/whd/govcontracts.

State: Oklahoma Area: Oklahoma County of Oklahoma

Employed on Defense Logistics Agency contract for fuel management services.

Collective Bargaining Agreement between TK&K Sesrvice, LCC and Teamsters Local

Union 866, affiliated with International Brotherhood of Teamsters, effective October

1, 2021 through September 30, 2024.

In accordance with Sections 2(a) and 4(c) of the Service Contract Act, as amended, Attachment V CBA

SPE603-24-R-0510

Tinker AFB, OK employees employed by the contractor(s) in performing services covered by the

Collective Bargaining Agreement(s) are to be paid wage rates and fringe benefits set forth in the current collective bargaining agreement and modified extension agreement(s).

Note: Executive Order (EO) 13706, Establishing Paid Sick Leave for Federal

Contractors, applies to all contracts subject to the Service Contract Act for which the contract is awarded (and any solicitation was issued) on or after January 1, 2017. If this contract is covered by the EO, the contractor must provide employees with 1 hour of paid sick leave for every 30 hours they work, up to 56 hours of paid sick leave each year. Employees must be permitted to use paid sick leave for their own illness, injury or other health-related needs, including preventive care; to assist a family member (or person who is like family to the employee) who is ill, injured, or has other health-related needs, including preventive care; or for reasons resulting from, or to assist a family member (or person who is like family to the employee) who is the victim of, domestic violence, sexual assault, or stalking. Additional information on contractor requirements and worker protections under the EO is available at www.dol.gov/whd/govcontracts.

Attachment V CBA

COLLECTIVE BARGAINING

AGREEMENT

BETWEEN

TEAMSTERS LOCAL UNION 886

AND

TK&K SERVICES, LLC

EFFECTIVE DATE:

1 October 2021 Through

30 September 2024

Attachment V CBA

PREAMBLE

This agreement, made and entered into this 1st day of October 2021, by and between TK&K Services, LLC, (hereafter referred to as “The Company”) and Teamster’s Local 886, affiliated with International Brotherhood of Teamsters (hereafter referred to as “The Union”), as representative of the employees located at Tinker Air Force Base, Midwest City, Oklahoma, in the mutual interests of the employees and the Company to promote and further the efficiency and economy of operations, to provide orderly collective bargaining relations, a method for the prompt and equitable disposition of grievances, and a method for the establishment of fair wages, hours and working conditions for the employees covered hereunder. In making this Agreement, it is recognized to be the duty of the parties to cooperate fully with each other, both individually and collectively, for the total support of the Company’s Government Contract SP0600-14-C-5415 and for the advancement of the purpose of this Agreement.

ARTICLE 1

RECOGNITION

Section 1.0 The Company recognizes and acknowledges that the Local Union is the sole and exclusive representative of all employees in the classifications of work as certified in the petition for the purpose of collective bargaining as provided by the National Labor Relations Act. The Unit certified by the National Labor Relations Board as Case No. 17-RC-10612, is as follows: Included: All full time and regular part-time lead fuel operations specialists, FISC lead, fuel operation specialists, dispatchers/controllers, expeditors, accounting employees and laboratory technicians. Excluded: Office clerical employees, professional employees, guards and supervisors as defined in the Act.

ARTICLE 2

SUCCESSORSHIP

Section 2.0 The provisions of the Agreement shall be binding upon the Union and the successors and assigns of The Company in the event of a merger, consolidation or similar transaction involving The Company.

Section 2.1 The Union expressly acknowledges and agrees that The Company is performing its services at Tinker Air Force Base, Oklahoma, under a government contract with the United States Government, and that in the event The Company’s contractual relationship with the United States Government at said base should terminate, The Company shall be relieved of all further obligations under this Agreement.

ARTICLE 3

MANAGEMENT RIGHTS

Section 3.0 The Management of the operations and direction of the working forces, including the right to hire, suspend or discharge for just cause, transfer, layoff due to lack of work or other legitimate reasons, and in general all other functions of management are reserved to and are vested in The Company, provided however, that this right shall not be used for the purpose of discrimination against any employee or for the purpose of invalidating the terms and conditions of the Agreement.

Section 3.1 The Union acknowledges and agrees that the Company shall have the exclusive right and authority to administer and/or manage The Company’s business, and that all rights and prerogatives of management are retained exclusively by The Company, without limitation, except as specifically modified by valid, applicable law or by the express and clear terms of this Agreement.

Attachment V CBA

Section 3.2 Without attempting to list herein all The Company’s rights as management, the right and authority of The Company shall include, among other rights, the right to exclusively direct the employees; the right to assign and transfer employees; the right to determine the starting and quitting times; number of hours to be worked and the right to assign and require that overtime and/or call back be worked; the right to make, promulgate, change and enforce employee work and safety rules, regulations, policies and practices; the right to discipline and discharge employees for cause; the right to expand, sell, transfer and/or terminate all or part of its operation; the right to determine the number of employees needed at any time, and the number of employees who shall perform any given job; the right to plan, direct and control operations; and the right to judge each employee’s ability, fitness, competence and overall contribution to The Company’s operation.

Section 3.3 This Agreement is the entire and complete agreement between The Company and The Union, and any prior oral or written understanding, whether by past custom and practice or otherwise, which is not incorporated in this written Agreement, shall be null and void and shall be of no effect and shall not be binding on either The Company or The Union.

Section 3.4 The Union agrees that it has no right to arbitrate The Company’s decision or actions which are consistent with this provision unless such decision or action is reasonably subject to the claim that is in direct conflict with another specific provision of this Agreement.

ARTICLE 4

HARMONIOUS RELATIONS

Section 4.0 In their institutional relationships, The Company and The Union pledge themselves:

a) To abide by all procedures mutually agreed upon.

b) To give each other fullest cooperation to the end those harmonious relations may be maintained in the interest of both The Company and The Union.

c) On the part of The Union to discipline any Union Steward and on the part of The Company to discipline any supervisor, foreman or other of its representatives who shall conduct themselves in such manner as to bring upon The Union or The Company, respectively, the proper reproach of the other that it has violated any of the terms of the Agreement.

d) It is mutually agreed that the Union and The Company in harmonious cooperation will abide by all contracts, operating checklists, government regulations, government technical orders, any other government contract publications, other Company rules and publications, and all safety standards as established by The Company and/or the U.S. Government with respect to the contract between TK&K Services, LLC and the Defense Logistics Agency for services performed at Tinker AFB, and will maintain the highest standards of maintenance, safety serviceability, and readiness as governed by such rules and regulations.

e) The Company will provide a copy of the TK&K Services Employee Handbook to The Union.

f) The following is a result of a clear and unambiguous understanding for the collective bargaining process. The Company agrees to notify and discuss with the Union Steward and/or alternates, excluding the safety rules, all disciplinary action pertaining to any new rule, policy or procedure prior to imposing new disciplinary action.

ARTICLE 5

NON-DISCRIMINATION

Section 5.0 Whenever any words are used in the Agreement in the masculine gender, they shall be construed as they were also used in the feminine gender.

Attachment V CBA

ARTICLE 6

UNION SECURITY AND CHECK-OFF

Section 6.0 All present employees, who are members of The Union on the date of the signing of this Agreement, shall remain members of The Union in good standing as a condition of employment. All present employees who are not members of The Union and all employees who are hired hereafter shall become members and remain members in good standing of The Union as a condition of employment on and after the thirty-first (31st) day following the employee date of hire, whichever is the later. The provision shall be made and become effective under the provisions of the Act, but not retroactively.

Section 6.1 The Company agrees to deduct from the pay of all employees covered by this Agreement, the dues, initiation fees, and/or uniform assessments of The Union having jurisdiction over such employees and agrees to remit to said Union all such deductions, no later than the 15th day of the month following the month for which the deduction is made. Where laws require written authorization by the employee, the same is to be furnished in the form required. No deduction shall be made which is prohibited by applicable law. Where an employee who is on the check-off is not on the payroll during the week in which the deduction is to be made or has no earnings or insufficient earnings during that week or is on leave of absence, the employee must make arrangements with The Union to pay such dues in advance.

Section 6.2 The Company will recognize authorization for deduction from wages, if in compliance with State law, to be transmitted to The Union or to such other organizations as The Union may request if mutually agreed to.

No such authorization shall be recognized if in violation of state or federal law, and no such deductions shall be made which are prohibited by applicable law. The Union Steward will obtain check-off authorization from new employees. After obtaining the authorization, the Steward will give the authorizations to the Terminal Manager.

Section 6.3 DRIVE Language – The Company agrees to deduct from the paycheck of all employees covered by this Agreement, voluntary contributions to DRIVE. DRIVE shall notify the Employer of the amounts designated by each contributing employee that are to be deducted from his paycheck on a pay period basis for all weeks worked. The phrase “weeks worked” excludes any week other than a week in which the employee earned a wage. The Company shall transmit to DRIVE National Headquarters on a monthly basis, not later than the 15th day of the month following the month in which the deduction was made, in one check the total amount deducted along with the name of each employee on whose behalf a deduction is made, the employee’s social security number and the amount deducted from the employee’s paycheck.

Section 6.4 The Union shall indemnify and save The Company harmless against any and all claims, demands, suits or other forms of liability that shall arise out of or by reason of action taken or not taken by The Company for the purpose of complying with any of the provisions of this Section, or in reliance on any list, notice or assignment furnished under any such provision.

ARTICLE 7

STEWARDS

Section 7.0 The Company recognizes the right of The Union to designate Union Stewards and alternates from The Company’s seniority list. The authority of Union Stewards and alternates so designated shall be limited to the following duties and activities:

a) Investigation and presentation of grievances to the Company or the designated bargaining unit.

b) The transmission of such messages and information which shall originate with and are authorized by

The Union or its officers, provided such messages and information:

Attachment V CBA

1. Have been reduced to writing, or

2. If not reduced to writing, are of a routine nature and do not involve work stoppages, slow downs, refusal to handle goods, or any other interference with the Company’s business.

Section 7.1 Union Stewards and their alternates have no authority to take strike action, or any other action interrupting The Company’s business, except as authorized by official action of The Union. The Company, in so recognizing such limitations, shall have the authority to impose proper discipline, including discharge, in the event the Union Steward has taken unauthorized strike action, slow down or work stoppage in violation of the Agreement.

Section 7.2 Union Stewards, or one (1) designated alternate per shift, shall be permitted time to investigate, present, and process grievances on government property under the control of the Company in a private area during their normal working hours without loss of time or pay. Time spent investigating grievances on company time shall not exceed approximately ten (10) to fifteen (15) minutes, unless otherwise agreed by The Company. If not during Steward’s normal working hours, Stewards will not be paid by The Company. The Union will supply a list of the Stewards and alternates as changes occur.

Section 7.3 The Union reserves the right to remove the Steward at anytime for the good of the Union.

ARTICLE 8

BULLETIN BOARDS

Section 8.0 The Union may post notices on authorized bulletin boards. All such notices are to be confined to official business of The Union. These notices must be provided to the Terminal Manager or the Assistant Terminal Manager prior to posting. Outdated materials must be promptly removed from the bulletin board.

Section 8.1 The Company will provide an additional bulletin board for employee notices. These notices must be approved by the Terminal Manager or the Assistant Terminal Manager prior to posting. Outdated material must be promptly removed from the bulletin board.

ARTICLE 9

INSPECTION PRIVILEGES

Section 9.0 The Business Agent, or other authorized representatives of The Union, shall be permitted, subject to governmental security regulations, and with at least 24 hour advanced notice, to enter the facility, when necessary, upon application to the Company Terminal Manager or Assistant Terminal Manager.

ARTICLE 10

UNION ABSENCE

Section 10.0 The Company agrees to grant the necessary time off, in its discretion, without discrimination or loss of seniority rights and without pay, to any employee designated by The Union to attend a labor convention or serve in any capacity on other official Union business, provided one (1) week written notice is given to the Employer by The Union, specifying length of time off. The Union agrees that, in making its request for time off for Union activities, due consideration shall be given to the number of employees affected in order that there shall be no disruption of The Company’s operation due to lack of available workforce.

ARTICLE 11

HOURS OF WORK

Section 11.0 The Company will schedule hours of employment to ensure the Government Contract is satisfied provided that a normal work week for full-time employees shall consist of forty (40) hours. Shifts for full-time employees may be scheduled in increments of eight (8), ten (10), or twelve (12) hours, or any combination thereof.

Regardless of the number and type of shifts scheduled, a minimum of two (2) consecutive days off will be scheduled for full-time employees in each seven-day period. The above may not be applicable during unexpected workloads, emergencies (i.e., Act of God, Act of War, medical condition of an employee, late notification of absence and until employee is available to fill position, contingencies, large scale operations, and mobility situations related to the Government’s contract with TK&K Services, LLC.).

An employee who is asked to arrive for a scheduled shift early, or to work beyond his scheduled shift’s end time, will not have his regularly scheduled shifts adjusted as a result of the additional time worked. The additional hours will be considered overtime if the conditions of Section 12.0 apply. The employee may request compensatory time within the same workweek in lieu of overtime, subject to Management approval.

Section 11.1 Part-time employees must complete a statement of availability to work upon hire and may provide updates as necessary each quarter on 1 December, 1 February, 1 May, and 1 August using the PART TIME AVAILABILITY WORKSHEET at Addendum C. Changes to availability are subject to review by Management and may result in a reduction in scheduled work hours. Part-time personnel may be scheduled to fill known shift vacancies based on their availability and group seniority.

(a) Part-time personnel may also be used to fill vacant shifts on an as-needed call-in basis. A Manager will determine when a part-time employee is required and initiate a call-in log by recording the details for the position to be filled, i.e. operator, controller, etc., and the date and beginning/ending times of the shift. A Manager will prepare a call-in roster using the information from the PART TIME AVAILABILITY WORKSHEETs. The roster will list all part-time employees and will be ranked in two categories in seniority order. Category 1 consists of employees with stated availability during the shift vacancy. Category 2 consists of employees who did not project availability during the shift vacancy. A Manager will begin the call process, starting with Category 1 employees. The person making the calls will use the phone number provided on the PART TIME AVAILABILITY WORKSHEET. If the call is not answered, the next person in line will be called. Should an employee, who didn’t answer his or her original call, return the call within 5 minutes, he or she will receive the shift. If the call is answered via a voicemail system, a message will be left indicating the time and date of the call and the details of the shift to be filled. The next employee on the roster will be called and the process will continue until an employee accepts the shift. If no one in Category 1 accepts the shift, the employees in Category 2 will be called and offered the opportunity to work. The person making the calls will document the call log listing the date, time, name of person called, phone number called, and the results of the call. The log will be signed by the person(s) making the calls, attesting to its accuracy and completeness. The Union Steward may observe the call process upon request and will review and sign the call logs after completion. If no one in either Category accepts the shift a full-time employee may be offered overtime following the guidelines in Section 12.0. to cover the shift.

(b) If the available shift begins within twelve (12) hours of the start of the notification process described in (a) above, the first employee to accept the shift will be scheduled and no employee can replace them. If the available shift begins twelve (12) or more hours after the start of the notification process, an employee has four (4) hours to accept the position. After 4 hours have

Attachment V CBA elapsed, the most senior employee who has accepted the shift shall be scheduled and no employee can replace them. If a more senior employee replaces an employee within the time frames identified above a Manager will immediately notify the employee being replaced that a more senior employee accepted the work and document the call log with the time notified.

If no Category 1 employee accepts the shift within the appropriate time frame, the first Category 2 employee to accept the shift will be scheduled to work without regard to the timeframes noted above.

(c) Managers may prepare a call-log and roster in advance to cover potential call-ins for after-hours and week-end/holiday shifts. In these cases, execution of the call-in process will be performed by the Lead Operator or on-duty Dispatcher. A Manager will be contacted whenever no one in either Category accepts the shift.

(d) If a Category 1 employee fails to answer their phone or return the call within the four-hour period (4) hours, they will be deemed unreachable.

(e) Part-time employees who have previously accepted available, call-in shifts for the applicable week and are scheduled for forty (40) hours cannot accept the work unless approved by a Manager.

Section 11.2 Part-time employees as defined in Category 1 (Section 11.1(a) above) refusing or declining to accept work or deemed unreachable per Section 11.1 during a period in which they stated their availability will be charged with an unexcused absence. Part-time employees who accumulate four unexcused absences within a sixty (60) day period will be subject to the disciplinary process, to include discharge; however, no employee will be assessed more than one unexcused absence in a twenty-four (24) hour period or if they have reported to work within the last 72 48 hours. The Union Steward will be notified whenever an employee with stated availability declines to accept work or is deemed unreachable. The Union Steward will sign and date the call log acknowledging he received the required notification.

The discipline process for unexcused absences will normally follow a progressive process. The first instance will result in a verbal warning. A second instance will result in a written warning. The third instance will result in a loss of seniority. A fourth instance may result in termination of employment.

Section 11.3 The Company may, at its discretion, establish the position of “unassigned employee” which is defined as an employee who is guaranteed a work schedule of between 32 and 40 hours per week, but is not assigned to a specific shift or work assignment. If the Company opts to establish such position, the Company and Union will negotiate a Memorandum of Understanding to establish specific working conditions and scheduling protocols.

ARTICLE 12

OVERTIME

Section 12.0 The Company agrees to pay time and one-half for all hours paid in excess of forty (40) hours per week. Employees will not be forced to work more than twelve (12) hours in a 24-hour period except in the case of emergencies (i.e. Act of God, Act of War, medical condition of an employee, late notification of absence and until employee is available to fill position, contingencies, large scale operations, and mobility situations related to the Government’s contract with the Company. Any work over 12 hours will be at the discretion of the Employee, except in cases of emergency as defined above. All overtime, whether daily or scheduled, will be offered in accordance with seniority, by shift qualification. Scheduled overtime is defined as when the Company

Attachment V CBA receives at least twenty-four (24) hours advance notice from the Government that significant additional resources will be required for a previously unanticipated requirement.

Section 12.1 Rest periods will not be designated by this Agreement, but will be given to the employee as appropriate.

Section 12.2 Call In or Call-back – When an employee is called in to work an unscheduled shift, he/she will receive not less than four (4) hours pay at the applicable rate for the work performed. When an employee is called back to work after he/she has left the Company’s premises at the completion his/her shift, he/she shall receive not less than four (4) hours of work or pay at the applicable rate. The applicable rate includes shift differential and classification base rate. An employee called into work who is denied access and is unable to be signed onto the base through no fault of their own will receive four (4) hours pay.

ARTICLE 13

HOLIDAYS

Section 13.0 The parties recognize the following paid holidays:

New Year’s Day Columbus Day Martin Luther King’s Birthday Veteran’s Day President Day Thanksgiving Day Memorial Day Christmas Day Independence Day Floating Holiday Labor Day Birthday Holiday

This holiday list will be updated to include any new national federal holidays established by the government and subsequently incorporated into our contract with the Government.

Section 13.1 Employees working on the holidays listed in paragraph 13.0 above shall be paid wages for a maximum of eight (8), ten (10), or twelve (12) hours, as applicable at the applicable rate of pay in addition to the holiday pay, unless the employee exceeds his normal forty (40) hour work week when working the holiday.

Employees required to work on a holiday will receive holiday pay for all hours worked.

Section 13.2 The Union recognizes that the Company’s business may require employees to work on holidays.

The Company will seek qualified part time and full time volunteers by seniority on the affected shift for such work, and if there are not enough volunteers, the Company will choose the least senior qualified employees to work on such holiday. Any employee who is forced to work such holiday will be allowed to reschedule their holiday to a mutually agreed upon day not later than 30 days after the holiday. For the purpose of this section, eligibility will not apply in circumstances wherein the Company would be obligated to pay time and one-half for hours worked in addition to holiday pay, unless deemed necessary for the purpose of fulfilling the Government contract.

Section 13.3 If a holiday falls on an employee’s regularly scheduled day off, his next regularly scheduled workday, or a mutually agreed upon day before or after said holiday, shall be considered his holiday. The alternative date must be agreed upon prior to the posting of the holiday work schedule.

Section 13.4 In order to be eligible to receive pay for a holiday not worked, an employee must have worked his regularly scheduled workday before and after the day on which the holiday is observed, unless late (no more than one (1) hour) or absent for reasonable cause, such as jury duty, funeral leave, vacation, or sickness verified by the Company. Employees receiving workman’s compensation are not eligible for holiday pay.

Section 13.5 When an employee is scheduled to work on the final holiday schedule, the employee must work in order to receive holiday pay.

Section 13.6 Employees required to work on unscheduled base closures established by executive order and observed by the military will be paid at their normal rate of pay and will receive compensatory time off equal to the number of hours worked at a time mutually agreed upon by the employee and the Terminal Manager.

ARTICLE 14

VACATIONS

Section 14.0 All full-time active employees shall receive paid vacations as follows:

a) Employee with one (1) year, but less than seven (7) years service, shall receive two (2) weeks vacation.

b) Employee with seven (7) years but less than fourteen (14) years service shall receive three (3) weeks vacation.

c) Employees with fourteen (14) years but less than twenty-one (21) years of service shall receive four (4) weeks vacation.

d) Employees with twenty-one (21) or more years of service shall receive five (5) weeks vacation.

Section 14.1 If a holiday occurs during an employee’s approved vacation period, the employee will receive holiday pay for the holiday and not charged a vacation day or paid vacation for that day. A vacation period includes all consecutive days of the authorized absence from work.

Section 14.2 All vacation shall be credited as of the employee’s vacation anniversary date and must be taken prior to the following anniversary date, unless mutually agreed between the Company and employee. An employee can take vacation pay in lieu of vacation time off at the Company’s discretion.

Section 14.3 Vacation Forecast: A quarterly semi-annual vacation bid sheet will be posted on 1 January and 1 July each year to coincide with the shift bid and remain posted until the end of the bidding period. Request for vacation on the bid sheet will be granted on the basis of seniority and employees may forecast vacation in a minimum of (1) week segments. Any employee wanting to take vacation in the following quarter shall forecast their vacation on the bid sheet. Shift Seniority shall prevail on the bid sheet and is subject to management approval.

a) Employees with two weeks or more of vacation on the books shall forecast their remaining vacation on the bid sheet prior to their vacation anniversary date, and use said vacation.

b) After the bid sheets have come down, employees desiring to take vacation may do so by filling out the appropriate Company forms. These un-forecasted vacations will be granted on a first come first serve basis, subject to management approval. Employees may take un-forecasted vacation time in a minimum of one (1) day segments.

Section 14.4

a) Vacations shall be scheduled in advance at a time subject to workload requirements that is convenient to the Company and the employee.

b) Employees with vacation time in excess of two (2) weeks may take no more than two (2) consecutive weeks between June 1 and September 30, except with the Employer’s specific approval.

Section 14.5 Once a requested vacation period has been approved, employees must follow instructions in the current Employee Handbook to process their vacation request in the payroll system.

Section 14.6 If an employee’s vacation period spans the effective start date of a change in shift schedule which existed at the start of the vacation period, said employee shall start the new schedule on the employee’s first scheduled workday of the first full Pay Week following the employee’s return from vacation.

Section 14.7 For the purpose of paid vacation time, an employee’s continuous service includes the whole span of continuous service with the present contractor or successor, wherever employed, and with the predecessor contractors in the performance of similar work at the same Federal facility.

ARTICLE 15

SICK LEAVE/PERSONAL TIME

Section 15.0 For the term of this contract, employees will be credited with sick leave as shown in the attached “addendum ‘A’.” Sick leave will be granted in increments in full hours, but not less than one (1) hour.

Section 15.1 Sick leave allowances shall be paid at the employee’s hourly base rate and shall not exceed the number of hours in his regularly scheduled day. Sick leave pay shall include shift differential pay. Permanent Leads shall also receive lead pay.

Section 15.2 Sick leave allowances may be paid only when the employee notifies the Company of his absence because of personal illness or injury. A doctor’s notice will be required after the third (3rd) consecutive day of illness or injury for the purpose of determining sick pay allowance and determining the employee’s ability to return to work. Otherwise the absence will be considered an unexcused absence. If an employee calls in sick and does not have sufficient sick leave available to cover the absent period, the time will be automatically charged as vacation time. If the employee does not have any vacation time, the absence will be considered unexcused (unless a doctor’s note is provided) and the employee will not be paid for the time missed.

Section 15.3 Sick leave shall be paid to each employee at the end of the sick leave year, up to a maximum payment of one-hundred four (104) hours per sick leave year. In lieu of payment, an employee may carry over up to one-hundred (104) hours of sick leave into the next year; however, the maximum bank accumulated sick leave may not exceed two-hundred and eight (208) hours at any time. The entire accumulated sick leave shall be paid out upon retirement, quit, or discharge and at the end of the contract.

Section 15.4 An employee may use sick leave time as personal time if scheduled two weeks in advance and approved by management. For instances when less than two weeks’ notice is provided approval will be given on a case by case basis depending on mission/schedule. Employees who develop a pattern of calling in sick the day before or the day after their scheduled days off will be subject to disciplinary action under Article 20 of this Agreement, unless a doctor’s note is provided.

ARTICLE 16

FUNERAL LEAVE

Section 16.0 In case of death of a member of the immediate family, set forth below, the employee shall be paid for a maximum of three (3) days absence during the normal work week, if the death occurred in the State of Oklahoma, and four (4) days if the death is out of state. For the purpose of determining eligibility for the foregoing benefit, an immediate family member of the employee shall be limited to the employee’s father, mother, foster

Attachment V CBA parent(s), mother-in-law, father-in-law, spouse, children, grandchildren, great grandchildren step-children, brother, sister, step-brother and step-sister, grandparents, spouses’ grandparents, great-grandparents, spouse’s great-grandparents, step-parents, brother-in-law and sister-in-law.

ARTICLE 17

JURY DUTY

Section 17.0 Each employee covered by this Agreement who is called for service on any Jury shall, after furnishing to the Office of the Company, a certificate in evidence of jury service, be paid for the duration of one continuous jury duty each anniversary year, which he serves upon said jury, a sum equal to his straight time earnings for eight (8) hours if he is regularly scheduled to work eight (8) hours on such day. No such payment will be made to any employee for jury service on any day, which in accordance with his regular work schedule;

he would not have worked for the Company. If the employee is scheduled for ten (10) hours shifts, the ten (10) hours replaced eight (8) hour increments set forth above.

ARTICLE 18

MILITARY LEAVE

Section 18.0 The re-employment of personnel returning from the United States Military Service shall be in accordance with applicable Acts of Congress governing the same. The vacancy resulting from a military leave of absence will be made available for bid to part-time employees when the Company receives notice the time off will exceed 30 days.

Section 18.1 Full-time employees who are ordered into active military service will be paid the difference, if any, between his or her military pay and his regular pay had they remained on the regular payroll, up to a maximum of eighty (80) hours per contract year.

ARTICLE 19

GRIEVANCE PROCEDURE

Section 19.0 For the purpose of this Agreement, the term “Grievance” means any dispute between the Company and the Union concerning the meaning, interpretation or application of the provisions of the Agreement.

Section 19.1 The Company recognizes the right of the Union to designate Union Stewards and alternates from the Company’s seniority list. Grievances shall be settled in accordance with the following procedure, to include the use of a TEAMSTERS LOCAL 886 MEMBER’S GRIEVANCE FORM (Addendum B):

Step 1. An employee with a grievance shall first take it up with the Assistant Terminal Manager. The first step must be taken within five (5) working days after the alleged violation(s) from which the grievance arises. The employee may request the Union Steward, or his alternate, to be present when his grievance is presented to the supervisor.

Step 2. If the Assistant Terminal Manager does not settle the grievance to the satisfaction of the Employee, the Union Steward can present the grievance in writing, signed by the employee and by the Union Steward, to the Company’s Terminal Manager. This second step must be taken within five (5) working days following the answer to Step 1.

Step 3. If not settled in either of the preceding steps, the Union Steward may advance the grievance to the Union Business Agent upon written notification to the Company’s Terminal Manager within 5 working days following completion of Step 2. The grievance will be discussed in this Step 3 between the Terminal Manager, the Union Steward and the Union Business Agent. This discussion may take place in the form of an in-person meeting or via conference call on a day and time selected by mutual agreement. The Company’s Operations Manager may take part in this meeting at the Company’s discretion.

In cases involving the discharge of an employee, the Company and the Union agree to waive Step 1 and Step 2 of the procedure and proceed directly to Step 3.

Step 4. If not settled in either of the preceding steps, the grievance may be advanced by the Union Business Agent to a Corporate Representative within five (5) working days following the response in Step 3. This step will be held via teleconference with the above parties. The Company will provide a written response within five (5) working days following this teleconference.

Step 5. If not settled in preceding steps, the Union may process the grievance to arbitration by giving the Company notice of its intent within ten (10) working days following completion of Step 4.

All grievance settlements shall be reduced to writing and signed by the Company Representative and employee with a copy to the Union Steward. The Company will use the Texas Conference Joint Transfer Cartage and Garage Grievance Committee on a trial basis. After the first case presented to the committee, the Company and the union will mutually determine whether to retain this Committee process for future grievances, or agree to an alternative arbitration source, after which this Agreement will be changed to reflect the correct arbitration agreement at that time.

Grievances not processed within the guidelines above, including the specified time limits for advancing from step-to-step, shall be considered withdrawn. It is understood and agreed the parties may extend any such time limits by mutual written agreement, signed by both parties.

Section 19.2 It is agreed that the Company and Union will make every effort to keep to a minimum the actual time spent in disposing of grievances. When a Union Steward is required to leave a contract work area (not the base) for the purpose of investigating, presenting or adjusting grievances, he will obtain the permission of his immediate supervisor before leaving and will report to him upon his return.

Section 19.3 In the event the Union or the Company processes a grievance to arbitration, an impartial arbitrator shall be selected according to and shall be governed by the following procedure: Within ten (10) days from the date the grievance is denied at the 4th step, either party may submit the grievance to the Federal Mediation and Conciliation Service for proceedings in accordance with the rules of the Association. The grievance shall be presented to the Arbitrator and his decision shall be final and binding upon the parties hereto and employees covered by this Agreement. It is understood and agreed that the Arbitrator shall have jurisdiction and authority only to interpret, apply or to determine compliance with the provisions of this Agreement, including the right to award back pay, seniority rights and the like as a remedy whenever he deems such relief appropriate, but the Arbitrator shall have no power to add to, detract from or alter in any way the provisions of this Agreement.

Attachment V CBA

Section 19.4 All costs and fees in connection with the arbitration proceeding will be shared equally by the Company and the Union. Either party shall have the right to reject an entire panel of arbitrators, in which case selection shall be made from the second panel.

Section 19.5 The Union’s Business Manager shall have the right, upon proper written request, to examine time sheets and other records pertaining to the computation of compensation of any individual(s) whose pay is in dispute by a grievance procedure. Any costs arising from such examination will be at the Union’s expense.

ARTICLE 20

DISCIPLINE AND DISCHARGE

Section 20.0 The Company retains the management right to discipline an employee for just cause.

Section 20.1 Before disciplinary layoff or discharge of an employee is made final, the employee and his Union representative will be advised of the charges against the employee. The employee and his Union representative will be given the full opportunity promptly to present any defense to such charges. An employee may be temporarily suspended from work pending the completion of the investigation, but if upon completion of investigation, it is determined that no layoff or discharge penalty should be imposed, the employee will be paid for any time lost from regular work during such suspension.

Section 20.2 The Company will make discipline effective without delay and by written notice to the employee with a copy promptly furnished to the authorized Union steward and with a certified copy to be received within five (5) days at the office of the employee’s union. If the employee or the Union feels that the action is not justified, claim for unjust discipline may be made and appealed in the manner proposed in the grievance and arbitration articles of this collective bargaining agreement.

Section 20.3 An employee proven to have been suspended from work or discharges without just cause will be returned to his former position and will be paid for all time lost or granted such other relief as may be agreed upon by the employees Unions and the Company or determined by an arbitration procedure under this collective bargaining agreement.

Section 20.4 Dishonesty, gross insubordination, being under the influence of alcoholic beverages or drugs while on duty or Company or Government property, sleeping on the job, recklessness resulting in an accident, loss of required security clearance status or base access privileges, willingly and knowingly circumventing a safety device, creating a hostile or unsafe working environment for fellow coworkers or Government personnel, use of derogatory language or gestures and fraud or abuse of Company or Government assets shall be cause for immediate dismissal.

Section 20.5 The Company will furnish to each employee and to the Union, a copy of the current Rules of Conduct for Employees and/or TK&K Services Employee Handbook. The Company considers that none of the provisions of such Rules of Conduct are in conflict with any of the provisions of this Agreement and that such Rules are reasonable and necessary for a safe, effective and efficient operation. The Company reserves the management’s rights to amend such Rules of Conduct or Handbook in the future upon the Company’s determination that such amendments are reasonable and necessary for the safe, effective and efficient operation of the Company’s Government contract, but no such amendment may be contrary to any of the terms or provisions of this Agreement. The contracting Union reserves the right to protest through the Grievance and Arbitration

Attachment V CBA

Procedure in this Agreement the reasonableness, the interpretation or the application of such Rules of Conduct or policies contained in the Handbook. By executing this Agreement, the contracting Union does not waive its right to contest that a provision in such revised Rules of Conduct or Handbook, or any amendments thereto, is contrary to this Agreement, that it is unreasonable, that the Company has improperly interpreted such provision or that the Company has applied such provision in an arbitrary or unreasonable manner. In no case shall imposition of penalty provided in written Company rule be deemed arbitrary or capricious.

Section 20.6 The Company needs every employee each working day to insure that production and customer service are maintained. All efforts shall be made to provide the Company a minimum of 4 hours notice when an employee finds it necessary to be absent from work, but no later than one (1) hour notice shall be provided before the scheduled shift. If an employee repeatedly provides less than 4 hours notice there may be cause for disciplinary action under Article 20 of this Agreement. Employees who develop a pattern of calling in sick the day before or the day after their scheduled days off will be subject to disciplinary action under Article 20 of this Agreement, unless a doctor’s note is provided. An employee must report and state the reason for, and duration of, his absence each day that he is absent. In the event the supervisor is not available, the employee will contact the Fuels Service Center. The Fuels Service Center must notify the supervisor or on-call supervisor as soon as possible.

Section 20.7 Unless the Company reinstates the employee for good cause, the employee will be disciplined for unexcused or excessive absences as follows:

a. Unexcused absences on (3) consecutive work days, in which the employee will be deemed to have voluntarily resigned and employment terminated.

b. Unexcused absences on (4) work days during any four (4) month work period; or

c. Excessive tardiness, where, in the Company’s opinion, such tardiness interferes with the orderly operation of the Company’s business if such employee has been previously warned in writing.

The discipline process for unexcused absences will normally follow a progressive process. The first instance will result in a verbal warning. A second instance will result in a written warning. The third instance will result in a minimum 40-hour suspension from work. A fourth instance may result in termination of employment.

Section 20.8 An employee is required to give prior written notice of absence whenever possible. When circumstances beyond the employee’s control preclude advance written notice, the employee is required to telephone the supervisor on duty each work day he scheduled, but unable, to work. Such contacts will not excuse an absence from possible disciplinary action. In the event the supervisor is not available, the employee will contact the Fuel Service Center.

Section 20.9 All instances of unexcused absence or tardiness will be documented in the employee’s personnel record. It is agreed by the Union and the Company, that even though an employee does not have sufficient absences or tardiness to merit termination or discipline, the Company will be entitled nevertheless to consider the employee’s current attendance and overall work record for the purpose of administration of other disciplinary action or promotion.

Section 20.10 Discipline notices will be removed from an employee’s record after 12 months, unless a pattern of disciplinary action is present.

ARTICLE 21

SENIORITY

Section 21.0 Seniority shall be accrued from the date of employment except as otherwise provided for in this agreement. All employees hired from the date of this agreement, will work on a sixty (60) calendar day probationary period. After their sixty (60) day probationary period, their seniority date will be the employee’s date of hire.

a. The seniority list shall be updated December 1st of each year, and posted on January 1st of each year. Employees shall have thirty (30) days after posting to advise the Employer of proposed corrections required thereon. Errors are to be given to the Company in writing and the error to be amended on the current list and the final correction to be entered on subsequent lists.

b. Disputes as to seniority listing may be processed under the Grievance Procedure.

c. The Union Steward and Union Business Agent shall each be given a copy of the current seniority lists, and a certified copy will be received within five (5) days at the union office.

The day Union Stewards and Union Business Agent will be notified of any changes on the seniority list.

Section 21.1 The employee shall lose his seniority and have his employment terminated under the following conditions:

a. He quits or resigns.

b. He is discharged for just cause.

c. He does not return to work within fourteen (14) days after the date of receipt of certified notice recalling him from layoff.

d. He fails to return to work at the end of an authorized leave-of-absence.

e. Is on a layoff status for eighteen (18) months.

f. Is off work due to illness or injury for twelve (12) consecutive months.

Section 21.2 If employees have the same date of hire, their position on the Seniority List shall be established by a coin flip.