Atch_03_-_CBA_-_Indyne_and_IAM.pdf

Attachment 3

COLLECTIVE BARGAINING AGREEMENT

BETWEEN

INDYNE, INC.

AND

INTERNATIONAL ASSOCIATION OF MACHINISTS

AND

AEROSPACE WORKERS

AFL-CIO

MISSILES AND ELECTRONICS DISTRICT LODGE #166

AND

LOCAL LODGES 2061

CAPE CANAVERAL AIR FORCE STATION

1 APRIL 2012 – 31 MARCH 2015

TABLE OF CONTENTS

TABLE OF CONTENTS

PREAMBLE

ARTICLE 1 RECOGNITION AND SCOPE

ARTICLE 2 MANAGEMENT’S RIGHTS

ARTICLE 3 COMPANY RULES, POLICIES, AND PROCEDURES

ARTICLE 4 UNION SECURITY AND CHECKOFF

ARTICLE 5 NO STRIKE OR LOCKOUT

ARTICLE 6 NONDISCRIMINATION

ARTICLE 7 GRIEVANCE PROCEDURE

ARTICLE 8 ARBITRATION

ARTICLE 9 DISCIPLINE AND DISCHARGE

ARTICLE 10 SAFETY AND HEALTH

ARTICLE 11 GOVERNMENT SECURITY

ARTICLE 12 MISCELLANEOUS PROVISIONS

ARTICLE 13 WORKWEEK, HOURS OF WORK, WORK SHIFTS

ARTICLE 14 LEAVES OF ABSENCE

ARTICLE 15 SICK LEAVE

ARTICLE 16 UNION REPRESENTATIVES AND UNION ACTIVITIES

ARTICLE 17 SENIORITY

ARTICLE 18 SHIFT CHANGE AND SHIFT DIFFERENTIAL

ARTICLE 19 OVERTIME

ARTICLE 20 WAGE RATES FOR NEW OCCUPATIONAL CLASSIFICATIONS

ARTICLE 21 RATES OF PAY

ARTICLE 22 VACATIONS

ARTICLE 23 HOLIDAYS

ARTICLE 24 GROUP INSURANCE

ARTICLE 25 RETIREMENT

ARTICLE 26 SAVINGS AND SEPARABILITY

ARTICLE 27 DRUG FREE WORK PLACE

ARTICLE 28 DURATION

SCHEDULE A JOB CLASSIFICATIONS

SCHEDULE B HOURLY WAGE RATES

ADMINISTRATIVE LETTER IOMS-IAM #1

ADMINISTRATIVE LETTER IOMS-IAM #2

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PREAMBLE

This Agreement entered into this 1st day of April, 2012 by and between InDyne, Inc. (InDyne or Company) and the International Association of Machinists and Aerospace Workers AFL-CIO, Missiles and Electronics District Lodge #166 and Local Lodges 2061 (the Union).

ii

ARTICLE 1

RECOGNITION AND SCOPE

1.1 The Company recognizes the Union as the exclusive collective bargaining agent and representative, with respect to rates of pay, hours of work, and other conditions of employment for employees on the IOMS contract at the Cape Canaveral Air Force Station, (CCAFS) or other locations in Florida, in the classifications as set forth in the attached Schedule A and made part of this Agreement, or while on TDY assignments while performing work under the IOMS contract.

1.2 Bargaining unit work awarded to InDyne under the IOMS contract or by the acquisition of new work at CCAFS and other Florida locations, which involves the performance of tasks the same or similar to existing bargaining unit employees, shall be included in the appropriate unit for which the Unions are recognized subject to the terms of this agreement, unless required otherwise by the NLRA. If there is a dispute between two or more affected Unions over the unit placement of new work, the affected Unions shall attempt to resolve it. Failing agreement, the Company agrees to an expedited election, conducted by a qualified neutral, to resolve the dispute.

1.3 Any employee hired or transferred into the unit covered by this Agreement to replace a departing employee will become a part of the same unit as the employee replaced. Employees who transfer into this unit from another position within the IOMS contract without a break in service shall retain uninterrupted service for benefits eligibility.

1.4 The Company and its subcontractors will conduct work force reductions within the Union’s historical bargaining unit as specified in Article 17.3.

1.5 Supervisors will not perform the duties of employees in the bargaining unit other than in emergency situations or for the purpose of instructing employees. Such assistance shall not deprive a bargaining unit employee from earning overtime.

1.6 The Company and the Union agree that non-bargaining unit employees will not perform the work within any populated classification covered by this Agreement.

1.7 When work is performed on site pursuant to the terms of a basic warranty or lease, vendor/lessor mechanics may supervise and perform actual work on the equipment, machinery or materials under lease or warranty and shall be assisted by Bargaining Unit personnel.

1.8 Bargaining unit work shall be assigned to employees within traditional unit lines except that if such work is classified as Emergency or Urgent and traditional bargaining unit employees are not available for immediate assignment, either within classification or on a qualification basis, and cannot practically be reassigned to the higher priority task, such emergency or urgent work may be covered by other bargaining unit employees within their regular classifications until such time as the special need category has been lifted. Shop employees may be designated in advance for priority response, as needed.

1.8.1 The Company agrees that any assignment of work across bargaining unit lines shall not be for the purpose of causing layoff or depriving represented employees of recall or an overtime work opportunity.

1.8.2 During the term of this agreement, the Company may propose the establishment of a mixed Union work team for special assignments. The proposal must be supported by valid and substantial business reasons. Employees on such teams must work within existing classifications. There shall be no cross craft assignments. The Union affected will be notified in writing sufficiently in advance to allow for meaningful negotiation of any mixed team proposal. If no agreement is achieved in negotiations, management will not unilaterally implement its proposal but either party shall submit the issue to expedited final arbitration.

ARTICLE 2

MANAGEMENT’S RIGHTS

2.1 The Union recognizes that it is the right and responsibility of the Company to maintain discipline and efficiency and agree that Management shall have the freedom of action necessary to discharge its responsibility for the successful execution of the IOMS contract. Except as expressly limited by other provisions of this Agreement, the Company retains the right to direct the working force, including the hiring, promotion, transfer, discipline or discharge of its employees; the assignment and scheduling of work, the requirement of overtime work and the determination of when it shall be worked; the right to promulgate fair and reasonable rules and regulations and to amend or modify such rules from time to time with prior notice to the Union;

and the right to direct the workforce and execute the requirements of the IOMS contract in a safe and effective manner. Assignment of work will normally be in accordance with established job classifications. However, when fluctuations in workloads occur in a particular classification, work can be assigned to non-affected classifications within the unit, providing the employees have the qualifications to do the work. No assignment out of classification under this section shall be made without prior notice to the Union and will be subject to any conditions negotiated by the parties of the assignment.

2.2 The foregoing enumeration of Management’s Rights shall not be deemed to exclude other rights of Management, not specifically set forth, provided that no supplementary right of Management may abridge any specific term of this agreement. In addition, the foregoing enumeration of Management’s Rights and functions is without prejudice to the Union’s duty and responsibility for the representation of employees covered by this agreement and its rights, in accordance with the law and the terms of this agreement, to process grievances, disputes or differences as to the interpretation or application of any provisions of this agreement.

2.3 The parties recognize that the use of new technology, equipment, machinery, tools, computers, process assignment practices or labor saving devices and methods of performing work may be initiated by the Company from time-to-time on the IOMS contract. Such technology, and training in the use of such tools, devices or methods shall be provided by the Company at no cost to the employee. Appropriate bargaining unit employees will continue to perform such work provided they are or become qualified and unless the technical alterations change the nature of the work in a way that removes it from the scope of the bargaining unit. The Company will notify the Union of any such change and will be prepared to discuss the impact on the respective bargaining unit prior to implementation. Such initiatives will be implemented only for valid business purposes and shall not be a subterfuge for reducing bargaining unit work. The Union agrees that it will not impede the implementation of legitimate new devices or work methods. If there is any disagreement between the Union and the Company concerning the legitimacy of implementation of such devices or methods of work, the implementation will proceed as directed by the Company and the Union shall have the right to arbitrate the dispute as set forth in Article 7 herein.

ARTICLE 3

COMPANY RULES, POLICIES, AND PROCEDURES

3.1 Except as modified by the Agreement, InDyne’s existing work rules, policies, and procedures as published, shall apply as long as they are fair and reasonable. These rules, policies and procedures may be fairly and reasonably modified from time-to-time and the Union will be notified.

3.2 Any rules, regulations, which are now or which may hereafter be imposed on the Company by federal or state laws, shall apply with equal force and effect to the employees covered under this Agreement. The Company shall provide to the Union a copy of any new rules or regulations and shall meet with the Union to discuss the impact, if any, prior to implementation. The Union shall have the right to grieve the reasonableness of such rules and/or regulations.

ARTICLE 4

UNION SECURITY AND CHECKOFF

4.1 Upon receipt of an employee's written authorization, which shall be irrevocable for a period of one year, or beyond the termination date of this Agreement, whichever occurs sooner (when revocation is not otherwise provided by local law), the Company shall deduct from such employee's wages, in accordance with this Agreement, such employee's initiation fee and the Union dues and remit same to the duly authorized representative of the Union, together with a list of the names of the employees from whose pay deductions were made. Such written authorization may be revoked by the employee by written notice to the Company and the Union at least thirty (30) days and not more than forty-five (45) days prior to the expiration of such yearly period, or of each applicable Collective Bargaining Agreement, whichever occurs sooner. The employee must notify the Union and the Company during one of these periods by written notice sent by certified mail.

In the absence of such notice of revocation, the authorization shall be renewed for an additional yearly period, or until the end of the Collective Bargaining Agreement, whichever occurs sooner.

Where monies have been deducted from the pay of an employee who does not owe such monies, it shall be the responsibility of such employee to obtain a refund from the local Union.

4.2 A properly executed Payroll Deduction Authorization Form for each employee for whom Union check-off is required shall be delivered to the office of the Labor Relations Representative before any deductions are made. Deductions shall be made, thereafter, only if the authorization forms have been properly executed. Any authorization which is incomplete or in error, will not be activated by the Company.

4.3 Deductions for Union Membership Dues (with a maximum pickup of one month) shall be resumed by the Payroll Accounting Department in the following situations unless written revocation notice from the employee has been received by the Company in accordance with Paragraph 4.1 of this Section:

4.3.1 Upon recall from layoff.

4.3.2 Upon return from prolonged Leave of Absence.

4.4 Deductions for other Union membership dues shall be made from the employee's paycheck bi-weekly for twenty-six (26) pay periods. Such deductions shall be in the amount certified to the Company by the Union. Any change in the amount of deductions for such Union membership dues shall be made effective for the next full month after written notice of such change by the Union to the Company. In the event a deduction for such dues is not made from one or more consecutive monthly paychecks due to insufficient earnings by the employee, then on the next paycheck that the employee has sufficient earnings, a retroactive deduction shall be made.

4.5 The Union agrees to hold the Company harmless against any and all complaints, claims, judgments, or demands that may arise out of, or in any way be related to, compliance by the Company with the terms of this Section or in reliance by the Company upon any document furnished to the Company by the Union pursuant to the provisions of this Section.

4.6 The Company agrees that any bargaining unit employee working under this Agreement on or after the effective date of this Agreement shall, within thirty (30) calendar days, assume and continue financial core membership in the Union as a condition of employment. This obligation shall be effective only on those sites of employment designated as a federal enclave or where otherwise permitted by law.

4.6.1 The Union will notify the Company of any non-compliant bargaining unit employee. The employee shall be provided not less than two weeks to cure the arrearage. If the employee does not establish or regain financial membership in good standing, the employee will be subject to termination at the request of the Union.

4.7 Where permitted by law, all employees of the employer subject to the terms of this Agreement shall, as a condition of a continued employment, become and remain members in the Union, and all such employees subsequently hired shall become members of the Union within thirty-one (31) calendar days, within the requirements of the National Labor Relations Act. Union membership is required only to the extent that employees must pay either, 1) the Union’s initiation fees and periodic dues, or 2) service fees, which in the case of a regular service fee payer shall be equal to the Union’s initiation fees and periodic dues, or in the case of an objecting service fee payer, shall be the proportion of the initiation fees and dues corresponding to the proportion of the Union’s total expenditures that support represented activities.

The Company will, within three (3) working days after receipt of notice from the Union, discharge any employee who is not in good standing in the Union as required by the preceding paragraph.

INTERNATIONAL ASSOCIATION OF MACHINISTS AND AEROSPACE WORKERS

MEMBERSHIP APPLICATION AND/OR CHECK-OFF AUTHORIZATION

Name _Date Card No.

(Mailing) Address M F Date of Birth

City State/Province _Zip/Postal Code

SS# _Email _Phone Hire Date_

Employer Hourly Wage

Class or work _Years Experience Shift 1 2 3

Membership Application: Check here: To the Officers and Members of Lodge No.2061 (the “Lodge” or “Union”). I hereby tender my application for membership in the International Association of Machinists and Aerospace Workers (IAM). I understand that while I may be required to tender monthly fees to the Union, I am not required to apply for membership or be a member as a condition of employment and that this application for membership is voluntary. As a member, I agree to obey the Constitution of the IAM and the by-laws of my Lodge and to support the principles of trade unionism, and I authorize the IAM and/or its designated affiliate to act as my representative for collective bargaining.

If former member of IAM: Card no. Lodge No. Location Last dues paid

Check-Off Authorization. Check here: I authorize my Employer to deduct from my wages and forward to the Union: (1) monthly membership dues or an equivalent service fee; and (2) any required initiation or reinstatement fee as set forth in the collective bargaining agreement between the Employer and the Union and the by-laws of the Lodge. This authorization shall be irrevocable for one (1) year or until the termination of the collective bargaining agreement between my Employer and the Union, whichever occurs sooner. I agree that this authorization shall be automatically renewed for successive one (1) year periods or until the termination of the collective bargaining agreement, whichever is the lesser, unless I revoke it by giving written notice to my Employer and Union not more than twenty (20) and not less than five (5) days prior to the expiration of the appropriate yearly period or contract term. I expressly agree that this authorization is independent of, and not a quid pro quo, for union membership, but recognizes the value of the service’s provided to me by the Union. It shall continue in full force and effect even if I resign my Union membership, except if properly revoked in the manner prescribed above.

Important Notice: I have examined and acknowledge receipt of the attached “Notice to Employees Subject to Union Security Clauses” (on back of pink sheet). I also understand that IAM members have certain rights and privileges as set forth in the IAM Constitution and in various Federal laws, like the Labor Management Reporting and Disclosure Act (LMRDA). Copies of the IAM Constitution and the LMRDA may be obtained by contacting the IAM General Secretary-Treasurer, 9000 Machinists Place, Upper Marlboro, MD 20772. Union membership dues and agency fees are not deductible as charitable contributions for Federal income tax purposes. Dues and agency fees, however, may be deductible in limited circumstances subject to various restrictions imposed by the Internal Revenue Code.

(Your signature) (Date)

FORM NO. MR0001-12 This copy to be retained by Local Union Number

ARTICLE 5

NO STRIKE OR LOCKOUT

5.1 The Union hereby agrees that during the term of this agreement, whether an unfair labor practice is alleged or not, there will be no strike, sympathy strike, slow down, walk out or any other interruption or stoppage of work on the IOMS contract against the Company, including a failure to report for work over another Union’s picket line. This prohibition does not extend to informational activity away from the worksite.

5.2 The Union also agrees that it will not directly or indirectly authorize, encourage, support or otherwise approve employee refusal to report to the location of normal work assignment and to commence regular work as scheduled, where no rare or unusual physical hazard is involved in proceeding to such location or performing such work. The Union commits that the officers and agents of the Union will take immediate, good faith, and reasonable action to either prevent the occurrence or the continuation of impermissible conduct or activities set forth in this article.

5.3 The Company agrees that there will be no lockout of employees covered by this Agreement.

Nothing in this clause shall prevent the Company from implementing a layoff of employees or any other reduction in the workforce for valid business reasons.

ARTICLE 6

NONDISCRIMINATION

6.1 To the same extent dictated by applicable laws, the Company and the Union agree that there shall be no discrimination by the Company or the Union, either separately or collectively, against any employee or prospective employee because of sex, race, color, national origin, religion, age, disability, veteran status or because of Union activity, membership, non-membership or refraining from engaging in Union activity. Whenever the male gender is used in this agreement as a frame of reference, it shall mean either male or female without distinction.

6.2 The Company and the Union acknowledge the reasonable accommodation obligations of the Americans with Disabilities Act and the protected status of qualified applicants and employees with mental or physical disabilities. Nothing in this Agreement shall expand upon either party’s statutory obligation nor shall be construed as intending to foreclose reasonable accommodation to qualified persons with a statutory disability, provided that the Company must give the Union advance notice of any accommodation inconsistent with the terms of this Agreement and bargain with the Union in such cases to ensure that the proposed accommodation is required by law and does not unreasonably usurp the seniority rights of other employees covered by this agreement.

6.3 Any employee or the Union may file a grievance under Article 7 alleging discriminatory application of this agreement. Such grievances are encouraged and may be processed through Step 3 of the grievance procedure. Any grievance not resolved at Step 3 may be submitted by the Union to final and binding arbitration as specified in Article 8.

6.4 Any aggrieved employee who alleges discrimination in violation of any federal or state statute or regulation may opt at his sole discretion to pursue arbitration provided that the employee acknowledges in writing on a form prescribed by the Company, that the decision of the arbitrator shall be final and binding with respect to the claim of the employee and the defenses of the Company, that the employee voluntarily waives litigation of such discrimination complaint in any other forum and that the employee holds the Union harmless from any claims associated with the employee’s decision to proceed independently. Unless the Union is a party to the arbitration, the arbitrator’s award shall not constitute a precedential interpretation of the Collective Bargaining Agreement.

ARTICLE 7

GRIEVANCE PROCEDURE

7.1 The Union and any IOMS employee covered by this Agreement shall have the right to present to the Company, and the Company to the Union, complaints or grievances pertaining to any matter involving interpretation or application of this agreement. Employees shall have the right to present complaints and grievances to the immediate supervisor/manager either personally or through the designated Union steward. Where employees choose to file a grievance personally, the Union will be notified (by the employee) and will have the opportunity, at its sole discretion, to attend each of the three meetings called for the purpose of discussing and adjusting the grievance. Any such adjustment must be consistent with the terms of this Agreement. The parties commit to a good faith effort to resolve complaints informally before invocation of the grievance procedure.

7.2 All grievances shall be presented as soon as practicable after the occurrence of the event on which it is based, but in no event later than ten (10) working days if it is a dismissal grievance, or if the grievance arises from any other cause, no later than twenty (20) working days from the date the Union knew or reasonably should have known of the events giving rise to the grievance.

7.3 Time limits for grievances at any step, or for any response, may be extended by mutual agreement between the Union and the Company’s Labor Relations Representative. If it is determined under the grievance procedure, including arbitration, that any adjustment in wages is appropriate, such adjustment shall be based upon existing wage rates and shall be applied retroactively to the date of the occurrence, at the discretion of the arbitrator, provided that such date is not more than twenty (20) working days prior to the date upon which the grievance was presented.

7.4 Grievances shall be processed as follows:

The Union steward, or designee, shall reduce the grievance to writing on a form developed mutually by the Company and the Union and submit it to the appropriate supervisor/manager. A copy must be forwarded to IOMS Labor Relations. The written grievance must specify (1) the facts upon which the grievance is based; (2) the section or sections of the agreement claimed to have been violated; and (3) the resolution requested.

Step 1: BETWEEN THE SUPERVISOR AND THE STEWARD.

A Step 1 meeting shall be held within ten (10) workdays from the date the grievance is filed with the Company. The supervisor shall give the steward his written reply to the grievance within five

(5) workdays after the meeting. If the reply is unsatisfactory, the steward, or designee, may appeal the decision to Step 2, provided such appeal is made in writing within ten (10) work days after receipt of supervisor’s reply. Any final resolution reached with respect to any grievance at Step 1 shall only apply to that grievance and shall not become a precedent binding on other grievances in the future.

Step 2: BETWEEN THE NEXT LEVEL OF SUPERVISION/MANAGEMENT AND THE

DESIGNATED UNION REPRESENTATIVE.

A Step 2 meeting shall be held within ten (10) working days after the Union files the written notice of appeal. The written decision at Step 2 shall be presented to the Union within ten (10) work days after the meeting. If this reply is unsatisfactory, the grievance may be appealed to Step 3, provided such appeal is made in writing within five (5) work days following receipt of the second step reply.

Step 3: BETWEEN THE COMPANY’S PROGRAM AND BUSINESS MANAGEMENT OFFICE

REPRESENTATIVE OR HIS DESIGNEE AND THE UNION’S BUSINESS REPRESENTATIVE

OR DESIGNEE.

A meeting at Step 3 shall be held within fifteen (15) work days after receipt by the Company of the written notice of appeal. The Management Representative shall make a reply in writing not later than ten (10) work days after meeting with Union’s Business Representative or his designee.

The Step 3 decision shall be final and binding on all parties concerned unless the Union informs the Company in writing within thirty (30) calendar days from the date of such final Company decision, that it desires to submit the matter to arbitration.

7.5 In certain circumstances, the Union may wish to file a grievance against the Company and the

Company may wish to file against the Union. In either case, the process shall begin at Step 3 and may be initiated only by the Labor Relations Representative or the Union Business Representative or their designees. Such grievances shall be limited to issues dealing with the unit-wide interpretation or application of the agreement or to a class-wide complaint. Such grievances shall be submitted in writing and shall contain the elements set forth for individual grievances in Section 7.4.

ARTICLE 8

ARBITRATION

8.1 Any grievance which has not been finally settled or disposed of in accordance with the steps for the grievance procedure may be submitted to arbitration by filing a timely demand with the Company Labor Relations Representative. The parties will confer promptly upon receipt of the demand to commence the process.

8.2 The parties shall promptly endeavor to select an arbitrator by mutual agreement within fifteen (15) working days of commencement. If they are unsuccessful within the time allotted, either party may request that the Federal Mediation Conciliation Service (FMCS) provide a panel of nine arbitrators from which the designated arbitrator shall be chosen either by mutual agreement or, failing that, by the alternate strike method. Each party shall bear its own costs in the arbitrator selection process. Selection must be made within fifteen (15) working days following receipt of the FMCS list by the parties.

8.3 Arbitration proceedings shall be conducted pursuant to the Rules and Regulations of the Federal Mediation Conciliation Service. The arbitrator may consider only the particular issue or issues presented to him in writing by the Union and the Company. The authority of the arbitrator is strictly limited to the interpretation or application of the existing terms of this agreement and any appended Union Schedule Agreement. All other matters are expressly excluded from arbitration unless mutually presented to the arbitrator. The submission to the arbitrator shall be limited to one grievance unless otherwise agreed by the Company and the Union. The arbitrator shall have no power to add to, subtract from or modify any of the terms of this Agreement. Except for resolving disputes pertaining to wage rates for new classifications, as set forth in Article 21, the arbitrator shall have no power to establish wage rates, job classifications, fringe benefits of any kind or any other economic or working conditions.

8.4 The decision of the arbitrator shall be in writing and the arbitrator shall endeavor to render the decision within thirty (30) days after the conclusion of the hearing and the parties' submission of the record. The decision of the arbitrator, when so made, shall be final and binding on all parties provided it complies with the terms of federal and state law.

8.5 The cost and expenses of the arbitrator shall be born equally by the parties. The Union assumes the responsibility for paying employees, who are called by the Union or an employee to participate in an arbitration hearing, for the time spent testifying or awaiting testimony. Time spent by the grievant in other than termination cases, or time spent participating in the arbitration hearing awaiting testimony at the request of the Company, shall be treated as time worked.

ARTICLE 9

DISCIPLINE AND DISCHARGE

9.1 The parties agree that the Company has the right to discipline or discharge an employee, for just cause. Any employee who has been terminated or suspended shall have the right to expedite the filing of a grievance as set forth in Article 7.2 of the grievance procedure. Except as otherwise provided in this agreement, all other employee grievances shall be processed consistent with the contractual grievance procedure.

9.2 It is understood that an employee subjected to disciplinary action will be entitled, upon his request, to representation by a designated Union representative.

9.3 An employee subjected to lost time discipline (suspension or termination) shall be furnished with a statement in writing setting forth the conduct or circumstances upon which such action is based.

9.4 The provisions of this Article do not apply to any employee still in the probationary period.

9.5 All letters regarding an employee’s discipline (warning or suspension) will cease to have effect, for progressive disciplinary purposes, after a period of one (1) year from date of issuance, provided that there has been no related repetition of such conduct or circumstances during the applicable one year period except that records relating to vehicular accidents in government vehicles or equipment or in a work status shall have an effective period of two (2) years.

Employees must request (Human Resources) the disciplinary letter be removed from their file after the effective period.

ARTICLE 10

SAFETY AND HEALTH

10.1 The Company recognizes its responsibility to provide a safe and healthful working environment for employees. The Union also recognizes its responsibility to cooperate with the Company in maintaining and improving a safe and healthful working environment. The parties agree to confer and use their best efforts to achieve these objectives. Both parties agree that reasonable safety rules of the Company, which are not inconsistent with Federal or state law, shall be complied with by all employees.

10.2 In the interest of continued safety of individuals and their fellow employees, any applicant for employment or any employee may be required through Government (USAF) regulations or by the Company to undergo a medical examination by a doctor of the Government’s (USAF) or the Company’s selection. If the diagnosis or examination results furnished by the Company doctor are not satisfactory to the employee, he may obtain an opinion from his own doctor. If a disagreement still exists, an additional doctor, mutually agreed upon by the Company and the Union, will be acquired for his analysis. If the mutually agreed upon doctor’s diagnosis agrees with the employee’s doctor, the Company shall only pay for the services of the mutually agreed upon doctor. The cost incurred for services of all other non-Company physicians shall be the sole responsibility of the employee who gave rise to the dispute.

10.3 Where employees are required by the Company to wear specialized work clothing, such clothing shall be furnished by the Company. Where it is a requirement of the job, the Company will reimburse the employee up to a total of one hundred and fifty dollars ($150.00) for one pair of protective footwear that complies with OSHA standard 1910.136(b)(1) requirements every 365 days from date of last purchase. Employees may utilize an IOMS-sponsored vendor to obtain safety shoes to avoid incurring a personal expense in purchasing the protective footwear. If an employee purchases safety shoes from a non-IOMS sponsored vendor, he must submit an IOMS Safety Shoe Authorization Form, valid receipt, written documentation that the shoes meet OSHA Standard 1910.136(b)(1), and an IOMS Expense Report with appropriate signatures from their Supervisor, Department Manager, and Director of Program & Business Management Office in order to be reimbursed. If an employee’s safety shoes are damaged and/or destroyed through no fault of his own, an additional pair may be approved by the employee’s supervisor. Where it is a requirement of the job, the company will reimburse the employee up to a total of two hundred twenty-five dollars ($225.00) for prescription safety glasses every 365 days from date of last purchase. Any amount in excess of $150.00 for safety shoes and $225.00 for safety glasses shall be the responsibility of the employee. Employee must provide a valid receipt, to the Logistics Department, in order to be reimbursed. If an employee’s safety shoes are damaged and/or destroyed through no fault of his own, an additional pair may be approved by the employee’s supervisor.

10.4 Employees taken ill or injured on the job will be assisted to receive appropriate medical attention.

If such medical attention is rendered during regular working hours, the time spent during that work day shall be treated as time worked.

10.5 In accordance with the Drug-Free Workplace Act of 1988, the Civil Space Employees Drug Testing Act, and the other Federal regulations, The Company and the Union agree to exercise their best efforts to provide a workplace that is free from the illegal use, possession, or distribution of drugs or other controlled substances or the misuse of prescription drugs, and that is free from the influence of alcohol. The Union agrees to implementation of the Company published Drug Policy dated October 1, 2008.

ARTICLE 11

GOVERNMENT SECURITY

11.1 The Union acknowledges that the Company has certain security obligations in its contracts with the Air Force and the Department of Defense and that industrial and governmental security is vital to the IOMS program. The Union agrees that in the event that representatives of the appropriate governmental agency concerned with security, advise or have advised the Company, in writing, that any employee in the bargaining unit covered by this agreement is denied work on or access to classified information, material, restricted areas or an employment related clearance, that such employee shall be immediately removed from that position. The Company shall endeavor to locate an alternative position consistent with the security restriction, provided that if no such position is available, the employee may be released for just cause.

11.1.1 For purposes of this Section, employees who are permitted access with an authorized escort shall not be removed provided there are personnel available to serve as escort without additional time requirements and within the scope of the employee's regular job duties.

11.2 It is understood that there shall be no liability, financial or otherwise, on the part of the Company for any suspension, change in status, or transfer growing out of a denial of work on or access to classified information, material or restricted areas for any unallowable expenses incurred by the Company as a result of the Company’s compliance with Government Security directives. Lost work time because of a denial or withdrawal of security clearance by the appropriate governmental agency shall not be subject to the grievance and arbitration procedures, except for issues pertaining to the Company’s receipt of documentation from the Government or the Company’s efforts to locate alternate employment.

11.2.1 Nothing in this Agreement shall preclude the employee from pursuing any legal remedy he may have against any agency, organization, or person outside the Company by virtue of any suspension, termination, or change in status under this Article.

11.3 InDyne agrees that if the employee’s security clearance is reinstated within one year of withdrawal, the employee will be restored to his former position consistent with principles of seniority. Any such reinstated employee shall accrue uninterrupted seniority.

11.4 InDyne, Representatives of the Union having access to the premises, and all employees are required to comply with the applicable government security regulations on the IOMS contract. The Company and the Union agree that security information will be revealed only to persons properly cleared and required to have the information by the government. If an employee has not been granted necessary security clearances in all work areas required to perform the employee’s job duties within one year from the date of employment, or the date of request, the employee may be released for just cause.

11.5 Any Security rules, regulations or directives imposed on the Company by the United States Government, which apply to the IOMS contract activities, shall be provided to the Union and apply with equal force and effect to the employees covered by this agreement.

ARTICLE 12

MISCELLANEOUS PROVISIONS

12.1 The Company will provide bulletin boards for the use of the Union at mutually agreed locations.

Their use will be restricted to the following:

12.1.1 Notices of Union recreational and social affairs

12.1.2 Notices of Union elections and their results

12.1.3 Notices of Union meetings

12.1.4 Notices regarding Union business signed by the President or Principal Officer.

12.1.5 Any other information which is mutually agreed to by the Company Labor Relations Representative or his designee and the Union Representative.

12.2 Any inventions or other intellectual property developed during the course of an employee’s duties on the IOMS contract or otherwise relating to work performed on IOMS shall be owned by the Company or the appropriate governmental agency.

12.3 The Union agrees to report to the Company when it has knowledge of any threats or acts of sabotage or damage to, or the unauthorized or unlawful taking of, InDyne, government, or other employee property. The Union further agrees, if such acts occur, to use its best efforts in assisting to identify the person or persons responsible and to cooperate with InDyne or government investigation.

12.4 Lead Employees: On occasion, Management may determine that it is necessary to delegate Lead responsibilities to the employees under his direction. Employees so selected shall be expected to:

12.4.1 Make detailed work allocations as instructed by the supervisor.

12.4.2 Be responsible for furnishing sufficient and accurate information to employees working under his direction.

12.4.3 Interpret information, answer questions, review, check work, and eliminate ordinary difficulties.

12.4.4 Perform other duties and responsibilities necessary to accomplish work assignments.

Employees selected to perform Lead responsibilities will not appraise the work of other employees or make, as a result of solicitation by the supervisor, recommendations concerning employment, release, transfer, upgrading or disciplinary action relative to other employees, or to be directly responsible for the quality or quantity of work produced by other employees.

12.5 Limited Duty

The Company may provide limited duty assignments to employees with a disability subject to job/position availability. Such assignments shall be for an initial duration of up to ninety (90) days but may be extended by mutual agreement between the Company and the Union. Such assignments must be within the scope of the employee’s job qualifications and medical limitations. Employees on limited duty will receive full benefits while on active pay status but will earn vacation and sick leave credits only if they work at least 50% during each calendar month.

Normally, limited duty employees will be excluded from overtime; however, if the limitations do not impact his normal job duties, he will be eligible for overtime.

12.6 All employees shall have access to and the right to inspect his/her personnel record in the presence of a Company representative during normal business hours. An employee will not be entitled to remove or photocopy any portion of the personnel file, except for the employee’s own application and résumé.

12.7 Travel Reimbursement

Travel reimbursement will be in accordance with established Company Policy.

12.8 Contributions to Machinists’ Nonpartisan Political League

Upon receipt by the Company of a signed voluntary authorization by an employee, on a form approved by the Company, requesting that there be deduction made from his wages, in a monthly amount designated by the employee, such deductions to be forwarded to the Union for use by the Machinists’ Nonpartisan Political League, the Company will therefore, make such deductions and forward them to the Machinists’ Nonpartisan Political League, in care of the Union. Such authorization will remain in effect for the duration of this Agreement, unless earlier canceled in writing by the employee.

12.9 Training

The Company shall make a reasonable effort to conduct ongoing training within each classification. Such training shall be given on the basis of seniority within the affected job classification and may include training in specialized job functions to assure continuity of operations. Training assignments may not deprive any regularly assigned employee of a work or overtime opportunity without agreement with the Union. Training costs will be paid by the Company.

12.10 The Union shall have the right to confer with the Company on matters pertaining to training.

ARTICLE 13

WORKWEEK, HOURS OF WORK, WORK SHIFTS

13.1 The Company agrees that consistent with meeting the requirements of the IOMS contract, every reasonable effort will be made to arrange work schedules so that a maximum number of employees will be assigned to shifts Monday through Friday. Each employee shall have two (2) consecutive scheduled days off in each workweek. The Company shall have the right to assign employees to a non-regular workweek when necessary. This Agreement shall not be construed as guaranteeing any employee a specific number of hours of work per day or per week. The Company shall not be limited to any exercise of its right to require an employee to work overtime.

13.2 Normal Workweek

The normal workweek for employees covered by this Agreement shall consist of not less than forty (40) hours in five (5) consecutive days. Each work day shall consist of eight (8) consecutive hours, exclusive of meal times. Once an employee’s workweek is established, it will remain fixed but may be changed for valid business reasons with a minimum of five (5) days prior notice.

13.3 Absent mutual agreement, workweeks will not be scheduled back to back to require more than five (5) consecutive days of work. Employees shall not be required to suspend work during regularly scheduled hours to avoid overtime.

13.4 Payroll Workweek

The payroll workweek for all employees shall begin at 12:00 midnight Friday and end at 12:00 midnight the following Friday (i.e., seven (7) consecutive calendar days, Saturday through Friday, inclusive).

13.5 Regular Shifts

Each employee shall be assigned to a shift with designated times of beginning and ending. The designated time for beginning each shift shall be a period of time within the following schedule:

13.5.1 First shift shall commence between 6:00 a.m. and 9:00 a.m.

13.5.2 Second shift shall commence between 2:00 p.m. and 5:00 p.m.

13.5.3 Third shift shall commence between 10:30 p.m. and 1:30 a.m. the following day.

13.5.4 Non-regular work week shall be considered a shift and shall comply with regular shift time schedules.

13.6 For first and second shifts, the unpaid meal periods shall be within the timeframe of three and one half (3 ½) hours after each shift begins and three (3) hours before the end of the shift. For third shift, the paid meal period shall be within the timeframe of three (3) hours after the start of the shift and two (2) hours before the end of the shift. Meal periods may be changed by mutual agreement. Rest periods will be designated by the Company before and after the scheduled meal period on each shift.

13.6.1 Employees in designated work locations, at the discretion of Management and with the concurrence of the Union and the Labor Relations Representative, will be allowed to combine their lunch and rest periods for the purpose of extending their lunch period to a time frame not to exceed fifty (50) minutes. In the event an employee is required to work through lunch, he shall only be paid for a thirty (30) minute period of time. It is further understood that in consideration of this combination of time, employees will not take or be given additional rest periods.

13.7 Any employee assigned to work on a non-regular workweek (other than Monday through Friday) shall have a premium of one dollar ($1.00) per hour added to his base rate and made a part thereof while so assigned. In scheduling a non-regular workweek, the Company will first attempt to meet its non-regular workweek assignments on a voluntary basis among the employees regularly performing the work. The most senior qualified volunteer will be given preference from among the volunteers. In the event there are insufficient volunteers to meet the requirement, the supervisor may designate and require the necessary number of employees to work the non-regular workweek in inverse order of seniority, among the qualified workforce.

13.7.1 The maximum number of employees assigned to a non-regular workweek shall not exceed nineteen percent (19%) of the respective bargaining unit, without Union agreement. If additional employees are needed to meet operational requirements, then the Company shall inform the Union and the parties will meet promptly to discuss the reasons for increasing the percentage. The Union agrees that such approval will not be unreasonably withheld.

13.8 Any employee who reports for work during a base closure shall receive a special pay differential of seven dollars and fifty cents ($7.50) per hour in addition to any other pay entitlement they may have for such an assignment.

13.9 The Company may elect to have an employee report to his next regular shift of work later than normal, or send that employee home prior to the end of his regular shift of work. If that occurs, then the Company will pay the employee for his regular shift of work at straight time. This shall be charged against Report Time.

13.10 For critical operations (launch operations and critical range operations), any employee working fourteen (14) consecutive days, shall receive one (1) full day off with pay on the next scheduled work day. In the event mission impacts or operational requirements necessitate 12-hour shifts, employees shall be provided one (1) day off with pay on the next scheduled work day following six (6) consecutive 12-hour shifts. Deviations from this policy will require approval by the Contract Manager or his designee.

13.11 For non-critical operations, any employee that works fourteen (14) consecutive days shall receive on (1) full day off with pay on the next scheduled work day. In the event operational requirements necessitate 12-hour shifts for non-critical operations, employees shall be provided one (1) day off with pay on the next scheduled work day following seven (7) consecutive 12-hour shifts.

Deviations from this policy will require approval by the Contract Manager or his designee.

13.12 Waiver authority to deviate from any maximum work hour restrictions, based upon mission requirements, must be approved by the Contract Manager or his designee.

ARTICLE 14

LEAVES OF ABSENCE

14.1 Application for Leaves of Absence

14.1.1 No application for leave of absence will be considered unless it is applied for in writing on forms provided for that purpose. Whenever practicable, all leaves except Death in the Immediate Family, should be requested one (1) week prior to leave or as soon as the Employee has notice of the need for leave. The request form will specify the type of leave and the dates of start and return from leave, and will be signed by the employee or someone acting on his behalf. The Company’s response to the leave application will be provided in writing.

14.2 Leaves of absence shall be granted at the discretion of the Company except for those categories of leave mandated in this Agreement or as required by law. The Company reserves the right to investigate and request from the employee, documentary proof of the conditions verifying the basis for the leave.

14.2.1 Eligibility for Leave of Absence: Employees who have completed ninety (90) days of satisfactory service are considered eligible for consideration for leaves of absence as hereinafter defined.

14.3 Leave of Absence

14.3.1 Except as described below, a leave of absence is time off without pay for an amount of time appropriate to the circumstances. The leave may be with or without benefits, depending on the circumstances and applicable law. Employees on leave without pay for the entire pay period shall not accrue time off benefits (i.e., vacation, sick leave) while on leave. Leave accruals for employees on partial weeks of leave without pay will be prorated. Any extension in approved leave must be by mutual written agreement.

14.3.2 Any employee on a leave of absence for thirty (30) days or more shall, not later than two

(2) weeks prior to his scheduled date of return, confirm to the Human Resources Representative the date of his intended return to active employment. Any request to change the scheduled date of return or intention to resign should be reported as soon as known.