CBA_13350_Effective_Date_1_Aug_12.pdf

COLLECTIVE BARGAINING AGREEMENT

Between

EXELIS SYSTEMS CORPORATION

MAXWELL INFRASTRUCTURE SUPPORT

And

UNITED STEEL, PAPER AND FORESTRY, RUBBER,

MANUFACTURING, ENERGY, ALLIED lNDUSTRIAL AND

SERVICE WORKERS INTERNATIONAL UNION

AFL-CIO-CLC

LOCAL UNION 13350

Effective August 1, 2012

TABLE OF CONTENTS

PREAMBLE

ARTICLE I UNION RECOGNITION 2

ARTICLE II UNION MEMBERSHIP -CHECKOFF 3

ARTICLE III MANAGEMENT RIGHTS 4

ARTICLE IV VISITATION 5

ARTICLE V BULLETIN BOARDS 5

ARTICLE VI WAGES 5

ARTICLE VII HOURS OF WORK AND OVERTIME 7

ARTICLE vm JURY DUTY 8

ARTICLE IX UNIFORMS 9

ARTICLEX PROBATIO;..IARY PERIOD 10

ARTICLE XI SPLIT AND IRREGULAR SHIFTS 10

ARTICLE XII HOLIDAYS 11

ARTICLE XIII CALL-IN - REPORTING 13

ARTICLE XIV NON-DISCRIMINATION 13

ARTICLE XV AIR FORCE REGULATIONS 13

ARTICLE XVI SENIORITY 14

ARTICLE XVII INTERRUPTION OF WORK 16

ARTICLE XVIII GRIEVANCE PROCEDURE AND ARBITRATION 16

ARTICLE XIX EMPLOYEE ADDRESS AND TELEPHONE 19

ARTICLE XX LEA YES OF ABSENCE 19

ARTICLEXXI VACATION 20

ARTICLE XXII SICK LEAVE 21

ARTICLE XXIII BEREAVEMENT LEAVE 22

ARTICLE XXIV UNION OFFICIALS 23

ARTICLEXXV EMPLOYEE BENEFITS 23

ARTICLE XXVI SEVERANCE PAY 26

ARTICLE XXVII SEPARABILITY 27

ARTICLE XXVIII TRAFFIC VIOLATIONS 27

ARTICLE XXIX DRUG & ALCOHOL TESTING 27

ARTICLE XXX SCHEDULING PART-TIME VEHICLE OPERATORS 28

ARTILCE XXXI FULL-TIME FLEX EMPLOYEES WORK

SCHEDULE PARAMETERS 30

AR T I CLE XXXII DURATION 30

Signature Page 31

APPENDIX A WAGES 32

PREAMBLE

This AGREEMENT is entered into as of this lstday of August, 2012 by and between, Exelis

System's Corporation, Maxwell Infrastructure Support, hereinafter referred to as the

"Company", and the UNITED STEEL, PAPER AND FORESTRY, RUBBER, MANUFACTURING, ENERGY, ALLIED INDUSTRIAL AND SERVICE WORKERS

INTERNATIONAL UNION, AFL-CIO-CLC, on behalf of Local Union 13350, hereinafter referred to as the "Union", as representatives of its employees who are engaged in the performance of services relating to the Company's contract with the Department of the Air Force for vehicle operations and vehicle maintenance services at Maxwell-Gunter Air Force Base, Alabama; and, in the mutual interest of the employees and the Company to promote and further efficiency and economy of operations, to provide orderly collective bargaining relations between Company and its employees and a method for 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

Union and the employees to cooperate fully with the Company, both individually and collectively, for the advancement of the purpose of this Agreement.

Anytime the masculine gender is used in this Agreement, the provision shall also apply to the female gender. All provisions of this Agreement shall apply equally to male and female employees alike.

ARTICLE I - UNION RECOGNITION

SECTION A.

The Company hereby recognizes the Union as the sole bargaining agent for its employees employed in the Motor Pool Operation and Vehicle Maintenance at Maxwell

Gunter Air Force Base, Alabama. The Company recognizes the Union as the sole and exclusive collective bargaining agent in regards to wages, hours, and other terms and conditions for employment, for the employees in the employer's motor pool operations and vehicle maintenance at Maxwell-Gunter Air Force Base, Montgomery, Alabama. The

Company and the Union will negotiate wage rates, fringe benefits and/or terms and conditions for any new job that might be established.

SECTION B.

This Agreement shall be binding upon the successors and assignees of the parties hereto and shall not be affected by any change in the regular status, ownership or management of either party hereto. The Union expressly acknowledges and agrees that the Company is performing its transportation services at Maxwell-Gunter Air Force

Base, Alabama, under contract with the United States Air Force, and that in the event the Company's contractual relat ionship with the United States Air Force at said bases should terminate, the Company shall be relieved of all other obligations under said

Agreement.

SECTION C.

The Company will allow at least one employee working on the evening shift to attend union meetings at Maxwell in a non-pay status, provided that the employee carries a hand-held radio to the meeting and promptly responds to any requirements directed by the dispatcher. Such responses to the Company's business, if any, will be in a pay status.

SECTIOND.

All present and future job classifications covered by the terms of this Agreement shall be performed only by employees within the bargaining unit except in cases where reasonably necessary for efficient operations or in case of emergency or military exercises, management will be allowed to perform duties if time does not permit the call-in of additional qualified employees to fulfill the Company's obligation to the Air

Force.

SECTIONE.

The employer shall provide new hires with an orientation of the Company's procedures and policies to enable the employee to perform their duties. The Local

Union President shall have the right to meet with new hires at the conclusion of their orientation to discuss the collective bargaining unit agreement. All such time spent meeting with new employees during orientation shall be unpaid by the Company. The Company will notify the local union when new hire orientation is complete.

ARTICLE II - UNION MEMBERSHIP - CHECKOFF

The Company will deduct from the pay of each employee covered by this

Agreement, the Union initiation fee of Ten Dollars ($10.00), and regular monthly dues as prescribed by the International Secretary-Treasurer of the Union. Such deductions, accompanied by an itemized statement showing the name of each such employee who is employed on the date such deductions are made and the amount of initiation fee dues, and/or lawful assessments deducted from each, shall be remitted by the Company to the

International Treasurer, United Steelworkers, AFL-CIO-CLC, Five Gateway Center, Pittsburgh, Pennsylvania, 15222, within ten ( 10) days after the month in which such deductions are made. A copy of the itemized statement shall be forwarded to the assigned Staff Representative at 919 Sharit Avenue, Ste. 213, Gardendale, AL 35071.

The Union will identify and provide employee authorizations for each deduction required by this agreement. The Union hereby indemnifies the Company and agrees to hold harmless and free from any loss and/or liability arising at any time by virtue of the making of any deduction in accordance herewith.

All employees, not members of the Union, (including part-time employees who average working more than 32 hours per month) receiving benefits under this

Agreement shall pay to the Union, commencing thirty (30) days after employment and continuing during the terms of this Agreement, and so long as they remain non members, as a condition of employment, a service charge as a contribution towar.d the cost of administration of the Agreement and the representative of such employees. The amount of this service charge shall be equivalent to the amount required to be paid as

Union initiation fees and dues by those employees who become members of the Union.

SECTION B.

The provisions of this Article, Section A, shall be deemed to be of no force and effect in any state whose law governs this Agreement to the extent to which the making or enforcement of such provisions is contrary to statutes, constitutional amendment, or law is declared by the Court of last resort having jurisdiction of such questions to be invalid, the provisions of Section A above shall immediately thereupon be deemed to cover the bargaining unit of employees directly affected by such declaration of invalidity.

ARTICLE III - MANAGEMENT RIGHTS

The Company shall remain vested with all management functions, including the full and exclusive control, direction but not limited to the right to hire, suspend, or discharge for just cause, to assign to jobs, to increase and decrease work force, to determine services to be performed, and the schedule of work, and the methods, processes of means of performing the services, to promote, demote, or transfer, to maintain discipline of employees and to make reasonable rules and regulations for the purpose of maintaining efficiency and discipline which do not conflict with the terms of this Agreement and the contract with the Government. The Company further shall have the right to establish reasonable standards relating to the performance of the job functions and to be the judge of an employee's ability to perform work according to the standards so set. Should an employee be unable to perform work according to the

Company's standards, the Company shall have the right to terminate and discharge that individual from employment, subject to the provisions of this Agreement. Jn the event of a conflict in interpretation by any arbitrator or court of competent jurisdiction as against any other provision of this Agreement, this section shall prevail.

ARTICLE IV - VISITATION

Authorized representatives of the International Union shall be permitted to visit the operations to the Company at Maxwell-Gunter Air Force Base, Alabama, during working hours for the purpose related to the administration of this Agreement, provided further that such visit shall not interfere with the normal business operations of the

Company or of the work of its .employees.

ARTICLE V - BULLETIN BOARDS

The Company shall permit the posting of official Union Notices, which shall be submitted to the Company in advance for approval before posting. This article is subject to the rules and regulations of Maxwell-Gunter Air Force Base, Alabama, regarding the posting of notices.

ARTICLE VI - WAGES

SECTION A.

The schedule of effective hourly wage rates for employees are set forth in the

Appendix A attached. All fringe and other pay is set forth in this Article VI. Job descriptions will be furnished to the Steward upon request. All wages and fringe benefit payments, including increases, are subject to approval of the contracting officer and incorporation of the collective bargaining wages and fringe terms into a wage determination applicable to the Company's contract with the Department of the Air

Force at Maxwell-Gunter Air Force Base for vehicle operations and maintenance services. Unless otherwise specified, all economic improvements are effective October

1, of each calendar year.

SECTION B.

All employees of this contract will be paid biwweekly, every other Thursday.

SECTION C.

Temporary Assignment - Employees temporarily assigned to job classifications paying a higher rate of pay than their regular rate, shall receive the higher rate while performing work in such classifications for a continuous period of forty-five (45) minutes or more. Employees temporarily assigned to a job classification paying a lower rate of pay than their regular rate, shall retain their regular rate of pay. When there is insufficient work for an employee in his/her regular job classification, the Company may offer the employee work in another classification.

SECTION D.

A tool allowance of thirty cents ($.30) per hour shall be paid for hours worked by mechanics who are required as a condition of employment to provide their own tools.

SECTION E.

Any employee who works any hours between 1700 hours to 0559 hours shall be paid a differential pay of thirty cents ($.30) per hour shift premium for such hours, in addition to the employee's regular rate of pay.

SECTION F.

An environmental payment of sixty cents ($.60) per hour shall be paid for hours worked by employees working in the hazardous material areas of the Automotive Body and Paint Shop, Refueling Maintenance Facility, Welding Shop, Wrecker service and

Tire Shop; when handling hazardous material on the flight line; or when transporting hazardous material in addition to the employee's regular rate of pay.

SECTION G.

Should a vehicle operator be required by the Company to stay overnight at a location more than 50 miles from the Company's offices at Maxwell-Gunter AFB, then the employee will receive a per diem payment for meals and lodging in accordance with the most recent per diem schedule applicable to Federal Employees as set forth in the

Joint Travel Regulations.

SECTION H.

The Company will reimburse the fee to renew a Commercial Drivers License for those employees required by the Company to possess such license.

SECTION I.

The Company shall provide a differential of fifty cents ($.50) per hour to employees who conduct any training as the trainer when specifically assigned to such training by management. Such differential shall be paid only for those hours worked performing the assigned training duties and must be approved by management. Such differential shall also be provided to employees who are specifically assigned by management to perform weekend training (Unit Training Assembly, or UTA) supporting the 908th Airlift Wing. Such differential shall be paid only for those hours worked performing the assigned duties and must be approved by management.

SECTION J.

The company may establish a 2°d shift for vehicle operators which can start between

12:00 pm and 2:00 pm. Employee start times can vary between 12:00 pm and 2:00 pm.

Once a start time is established, the employee must receive a one (I) week notice of any change to his/her start time.

ARTICLE VII - HOURS OF WORK AND OVERTIME

SECTION A.

The normal work day shall consist of eight (8) hours , excluding meal periods, and the normal work week shall consist of forty ( 40) hours; provided, the Company shall have the right to schedule such shifts and hours as are necessary or advisable in the conduct of its business. Without compromising this right, the regular shift schedule is from 7:00 a.m. until 4:00 p.m. daily, during the workweek.

SECTION B.

Employees shall be paid One and One-Half (1.5) times their regular rate for all hours worked in excess of forty ( 40) hours per week; provided, there shall be no duplication of overtime hereunder, and employee's work day shall be the twenty-four

(24) hour period commencing with the start of the particular employee's work shift, and the work week shall be the seven day period beginning at 00:01 a.m. on Monday and extending to 12:00 p.m. on Sunday.

SECTION C.

Nothing in this Agreement shall be construed or considered as a guarantee by the

Company to provide employees with any particular number of hours of work during the course of their employment.

SECTION D.

Overtime, as between qualified employees, shall be distributed as equally as practicable. A qualified employee shall mean an employee that has the ability, skills, experience, physical fitness and/or required license(s) to perform the required job. If the employees ' qualifications are equal, the most senior qualified employee will be offered the overtime work first.

SECTION E.

Qualified fuJI-time employees of this Company will be afforded the opportunity to work forty ( 40) hours in a workweek before part-time employees are used. All employees of the Company covered by this Agreement shall be classified as either full time employees or part-time employees.

SECTION F.

The Company shall not schedule a full-time employee time off to avoid paying overtime, except where such scheduling is required to meet surges in workload, recall, emergency or disaster. However, this should not be misconstrued to suggest that the

Company does not have the right to plan and manage its operations to accomplish the objectives of the Government and of the Company, or abrogate any management function.

ARTICLE VIII - JURY DUTY

The Company will pay to a full-time employee summoned to perform jury duty, requiring absence from the regular scheduled work, the employee's regular rate of pay during such absence. It will be the employee's responsibility to present the summons and the certificate of jury service to the Company.

ARTICLE IX - UNIFORMS

When employees are required to wear uniforms such as trousers, shirts, ties, badges, caps and blazers in the performance of their duties, the cost of furnishing such uniforms and maintaining (by laundering or dry cleaning) is an expense which may not be borne by an emp1oyee where such costs reduces the hourly rate below that required by the wages set forth herein. The Company will furnish each employee who is required to wear a uniform a basic issue of eleven sets of shirts and trousers. When an employee is required to wear, as a condition of his/her employment, any specific shoes, the

Company will bear the cost of one hundred dollars ($100.00) per pair for said shoes per calendar year. Required footwear damaged due to a catastrophic event as determined by the Company, such as a fuel spill, will be replaced not to exceed the cost of one hundred dollars ($100.00).

The Company is required to furnish all employees with an adequate number of uniforms without costs or to reimburse employees for the actual cost of the uniforms. In addition, where uniform cleaning and maintenance is made the responsibility of the employee, the Company shall reimburse employees for such cleaning and maintenance at a rate of $4.25 per week (or $.85 per day). However, in those instances where the uniforms furnished are made of "wash and wear" materials, may be routinely washed and dried with other personal garments, and do not require any special treatment such as dry cleaning, daily washing, or commercial laundering in order to meet the cleanliness or appearance standards set by the terms of the Government contract, by the contractor, by law, or by the nature of the work, there is no requirement that employees be reimbursed for maintenance costs.

The employee will notify the uniform coordinator of any misplaced, damaged or lost uniforms. In the event the employee's work status is terminated the employee must return all uniforms prior to receiving his/her final paycheck. The employee will not be responsible for any misplaced, lost or damaged uniforms reported to the uniform coordinator due to a vendor error prior to his/her termination. If the employee cannot produce all the uniforms furnished, the employee will be responsible for the cost of the items not returned. The cost will be deducted from the employee's last pay check.

When an employee is required to wear, as a condition of his/her employment, any speci fie safety glasses, and the employee's vision is impaired and a doctor prescribes glasses in order to correct the employee's vision to 20/20, the Company will reimburse the employee for those prescription glasses not to exceed $150.00 per calendar year. The employee must produce a receipt for the prescription glasses purchased to be eligible for reimbursement. A calendar year is 1 January through 31

December. Required eyewear damaged due to a catastrophic event as determined by the

Company, will be replaced not to exceed the cost of $150.00.

ARTICLE X - PROBATIONARY PERIOD

SECTION A.

Every new employee shall be on probation for the first ninety (90) days of employment, and every rehired employee shall be on probation for the first sixty (60) days of re employment. A part-time employee who has worked on a part-time basis shall serve a sixty (60) day probationary period if hired in a full-time position, provided the employee has worked part-time for a minimum period of ninety (90) days.

SECTION B.

At any time during the ninety (90) day, or sixty (60) day probationary period specified above, any employee may be discharged for any bona fide reason, and any such employee so discharged shall not have the right to file or have other recourse to the grievance procedure.

ARTICLE XI - SPLIT AND IRREGULAR SIDFTS

When the work schedule requires split shifts or irregular working hours, the

Company will endeavor to man the period with available qualified part time employees.

If the scheduling of full time employees is required to meet the Company's manning requirements, reasonable efforts will be made to schedule the least senior qualified employees before scheduling more senior qualified employees.

ARTICLE XII - HOLIDAYS

All full-time employees shall receive holiday pay of eight (8) hours at their straight- time hourly wage rate for each of the following designated holidays:

1) New Year' s Day

2) Martin Luther King 's Birthday

3) President's Da y

4) Memorial Day

5) Independ e nce Day

6) Labor Day

7) Veteran's Day

8) Columbus Day

9) Thanksgiving Day

I 0 ) Christmas Day

The Company may substitute for any of the main holidays another day off with pay in accordance with a plan communicated to the employee(s) involved.

SECTIONB.

In the event that one of the holidays shall occur during an employee's vacation period, that day will be recognized as a paid holiday and will not be charged as vacation.

SECTIONC.

When the work schedule requires work on weekends or holidays, the Company will endeafor to staff the holiday or weekend period with available qualified part time employees. If the scheduling of full time employees is required to meet the Company's staffing requirements, the Company will first ask for volunteers by seniority. If there are not enough volunteers to satisfy the staffing requirements, then the least senior full time employee(s) will be required to work.

SECTION D.

All holidays shall be celebrated on the day designated by Maxwell-Gunter Air

Force Base as outlined in Section A above.

Any holiday declared by the President of the United States will be observed by the contract personnel and will be paid at the regular rate of pay, providing the holiday falls on a work day and the Government pays the contractor for that day's work.

SECTION E.

On a rotating seniority basis, full-time employees will be given preference twenty- four (24) hours in advance in scheduling on holidays and weekends to make a full work week (40 hours) if the reasons caused by the Company or the Air Force that the full-time employee could not otherwise get a full regular forty ( 40) hours.

SECTION F.

To be eligible for holiday pay, an employee must work his/her regularly scheduled shift both the day before the holiday and the day after the holiday or provide proof of a bona fide reason acceptable to management. Pre-approved vacation, approved sick leave, as well as approved Leave Without Pay (L WOP), are considered the same as working a regularly scheduled shift for purposes of eligibility for holiday pay.

SECTION G.

Part-time personnel will receive pro-rated holiday pay in lieu of time off with pay. Pay will be pro-rated based on the number of hours the employee works during the work week prior to the work week in which the holiday occurs divided by forty hours times eight. In no event will a part-time employee be eligible for more than eight (8) hours of holiday pay per holiday. The employee must work at least five hours during the workweek in which the holiday occurs to receive holiday pay. (Example: Total hours worked (20) divided by hours in work week f 40) x hours in work day [8] = Number of holiday hours earned (4).)

ARTICLE XIII - CALL IN - REPORTING

Any full-time employee who reports for work at his/her regular starting time and who has not been given at least six (6) hours previous notice not to report shall receive a minimum of four ( 4) hours straight time pay. A minimum of four ( 4) hours will be paid to each full-time employee when called in to work when not scheduled. A minimum of four ( 4) hours will be paid to each part-time employee when called in or scheduled to work. All mechanics that are required in writing, to standby in cases of emergency, on weekends, and/or holidays, will be paid $10.00 per day, plus time required to perform work. All employees on call-in or standby status shall locate themselves at a point that will provide telephone and/or beeper contact with the work performance area.

ARTICLE XIV - NONDISCRIMINATION

The parties to this Agreement agree not to discriminate against any employee or applicant for employment with the Company, any member of the Union, or applicant for membership in the Union, because of race, creed, color, sex, age, national origin, disability, or veteran status and in particular, to comply with the applicable provisions of Title VII of the Civil Rights Act of 1964, as amended, the Age Discrimination in

Employment Act, the American's with Disabilities Act, and/or the Veteran's Re

Adjustment Act.

The parties to this contract agree not to discriminate based on sexual orientation.

ARTICLE XV - AIR FORCE REGULATIONS

The union acknowledges that the operations of the Company are subject to the rules and regulation of Maxwell-Gunter Air Force Base and the United States Air Force.

Any action taken by the Company in an effort to comply with such rules and regulations shall not be construed as a violation this Agreement.

ARTICLE XVI - SENIORITY

Seniority of employees shall mean the length of continuous, uninterrupted service of any employee. Seniority shall be established by the date of hire/re-hire with the current contractor or predecessor contractor, whichever is earlier, provided that the employee shall have first completed his/her probationary period. In the event that two or more individuals have the same date of hire, seniority shall be determined by the earliest date of birth in the calendar year hired, beginning with the m onth of January through December not the year of birth. A seniority list shall be established and shall be revised at least annually with a copy furnished to the Steward of the local union. This list shall be posted. A seniority list will be kept for employee's desiring to work the available overtime.

SECTION B.

Promotions and assignments for job openmgs shall be made by the Company based on qualification, ability, physical fitness, job performance, and seniority. All other factors being equal, seniority shall govern. Layoffs and recalls of employees shall be made by the Company on the basis of seniority subject to the right of the Company to maintain a qualified work force.

SECTION C.

The Company retains the right to assign available work to employees, and to transfer qualified workers to and among jobs where need for such work arises within the same contract. In the event there is a question of shift assignments and other factors such as qualifications, ability, physical fitness, and job performance being equal, seniority shall prevail.

SECTION D.

In the event of a job opening, the Company will post said job for bid for a period of three (3) days. If no then-qualified employee bids on said job, the Company may hire an outsider. The requirement of being "then-qual ified" may be waiv·ed in any and all instances by the Company without establishing a precedent or requirement that the

Company waive the "then-qualified" provision in the future.

SECTIONE.

An employee will lose his/her seniority standing in the event that he/she, (1) resigns, (2) is discharged for cause, (3) is laid off for twelve (12) consecutive months, ( 4) is absent due to illness certified by a physician for twelve ( 12) consecutive months,

(5) fails to return from written leave of absence at the end of such leave, and (6) is absent for three (3) consecutive working days without a bona-fide excuse.

SECTIONF.

Notice of recall from layoff shall be by telegram or certified mail, to the employee's last known address filed with the Company. The employee has three (3) days to notify the Company that he/she will return to work and he/she must return to work within seven (7) days from date of mailing. An employee failing to abide by these conditions shall forfeit his/her seniority rights.

SECTIONG.

Any reprimand shall be in writing and a copy shall be provided to the Local

Union President. Reprimands more than 12 months old may not be used for future progressive disciplinary purposes. Any reprimand is subject to grievance procedures.

SECTION H.

In the event of a job position which is created by the Company and not listed in the Wage Determination of this Agreement, the Company will negotiate for a minimum hourly wage rate for this job classification within fifteen ( 15) days from the date such position is created.

SECTION I.

An employee who successfully bids on a position within the bargaining unit or out of the bargaining unit will be granted a thirty (30) day probationary period. If the employee does not, or cannot perform his/her job adequately, he/she will be allowed to return to the previous position with no loss in seniority. Any person who bid or filled the position during the 30-day period will also return to his/her former position.

SECTION J.

Any person who has bid or filled the injured person's position will return to his/her previous position, or if hired to fill a vacancy, will be laid off.

SECTION K.

The Company will provide the Union with the name, position, and date of hire of any new employees subject to the Collective Bargaining Agreement within one week after hire. The Company shall provide the Union a timely notice of employee status change, such as: position, part-time to full-time, resignations, terminations, etc.

SECTION L.

Selection of employees for training, when offered by the Company, shall be made by the Company based on qualification, ability, physical fitness, job performance, and seniority. All other factors being equal, seniority shall govern.

SECTION M.

Any employee has the right to bump up or down to a different position or classification when the employee's position is eliminated or the employee is laid off, based on seniority and ability to perform the position.

ARTICLE XVII - INTERRUPTION OF WORK

During the terms of this Agreement, or any extension thereof, no employee shall engage in a strike, slow down, refusal to work, or any other disruption of work, nor shall the Union or its representatives or members cause, authorize, pay, condone, or participate in any strike, stoppage of work, boycott, or other work interruption or interference with the Company's operation. Should any employee engage in any of the above listed activities he/she shall be subject to discharge or other disciplinary action as may be determined by the Company. There shall be no lockout by the Company. The provisions of this Article shall not come within the grievance and the arbitration procedures for the purpose of assessing damages or securing specific performance of the terms hereof, such matters shall be solely determined in the appropriate Court.

When the Company and/or the Union fails to abide by the grievance and the arbitration procedures of this contract, the 'Union and/or the Company has the right to appeal to the appropriate Court.

ARTICLE XVIII - GRIEVANCE PROCEDURE AND ARBITRATION

Should differences arise between the Company and the Union as to the meaning and application of this Agreement, or should differences arise about matters directly connected with this Agreement, there shall be no suspension of work or slow down by the employee, nor any lockout by the Company, but such differences shall be settled in the following manner:

Step 1 will be between the employee, steward, Local Union President, Human

Resources Manager and the supervisor of the section involved. The Steward and the

Local Union President will accompany the aggrieved employee. All such matters must be presented within three (3) working days after the occurrence giving rise thereof;

otherwise, the grievance will be waived by the aggrieved party. Should the grievance not be satisfactorily resolved within the prescribed time limit, the party may advance the grievance to the next step.

Step 2 will be between the aggrieved employee, Local Union President, Logistics

Manager and Human Resources Manager. If the grievance is not resolved by the Local

Union President, Management and the Human Resources Manager, then this will be put into writing within three (3) working days. The written statement should be specific as to the incidcnt(s) and or violation(s) giving rise to the grievance.

Step 3 will be between the Representative of the International Union, the Local

Union President, Vice President and the representatives of the Company, who may be the Company's Deputy Program Manager and Human Resources Manager. The matter must be presented in writing at this stage within ten (I 0) working days after receipt of the answer at the second stage hereof; otherwise, the grievance will be waived.

Step 4, In the event the matter shall not have been satisfactorily settled by the foregoing procedure, either party may submit it to arbitration by serving written notice of the desire to arbitrate upon the other party within the five (5) working days after the conclusion of the third stage hereunder. Service of such notice within such period of time shall be a condition precedent to arbitration. The time period herein may be extended by expressed mutual agreement of the parties.

In the event any matter is submitted to arbitration, the parties shall promptly endeavor to appoint an impartial arbitrator. If they are unable to agree upon the arbitrator, they shall jointly request the Federal Mediation and Conciliation Service to submit a panel of five (5) arbitrators. The Company and the Union shall each alternately strike twice and the remaining panel member shall be appointed as an impartial arbitrator.

The fee and expense of the arbitrator shall be borne equally by the Union and the

Company. The arbitrator's decision shall be final and binding upon both parties. The arbitrator shall be bound by the exact terms of this Agreement and shall have no power to amend, vary, add to, or subtract from the provisions thereof.

Step 5, Grievances involving discharge or suspension shall begin by the aggrieved employee filing a written notice on management within forty-eight (48) hours of the discharge or suspension, said notice stating the grievance. In the event that said written notice is filed, management shall, within five (5) working days, set up a review hearing with said hearing being held before a representative of management, the Local

Union President and the aggrieved employee. Should the employee and the Union be aggrieved following this hearing, said matter shall be immediately referred to the third .

step of the grievance procedure. This will be the exclusive remedy in the event of suspension and/or discharge cases.

The parties hereto expressly agree that neither party shall bring or cause to be brought any Court or other legal or administrative action against the other until the dispute, claim, or grievance shall have been brought to the attention of the party against whom it shall be made and after said party has had a reasonable time to correct the cause or circumstances giving rise. to such dispute, claim or grievance, provided that where Article XVIII is violated, the Company shall have the right to go directly into

Court for appropriate relief.

ARTICLE XIX - EMPLOYEE ADDRESS AND TELEPHONE

Every employee shall report and assure that his or her personnel records are updated with their most recent home address, mailing address and home telephone number within fifteen ( 15) working days (excluding weekends and holidays) of any such change. In the event the employee does not have a home telephone number, the employee is required to provide a telephone number where a message can be left for the purposes of recall, call in and reporting pay, or emergency. The employee must notify the Company within fifteen (15) working days (excluding weekends and holidays) of any such change of their new home telephone number and mailing address.

ARTICLE XX - LEAVES OF ABSENCE

A leave of absence without pay will be granted an employee when such leave will not impair the normal operations. Application for leaves of absence of less than one

(1) week shall be made to the Logistics Manager. Applications for leaves of absence for longer periods of definite duration shall be made in writing to the Deputy Program

Manager. Leaves may be granted for or extended to a maximum of not more than ninety

(90) days and approval will not be arbitrarily withheld. Any employee absent on leave, who engages in other gainful employment, shall lose his/her status as an employee of the Company unless special permission is obtained in advance.

Any employee on leave of absence without pay is subject to pay those insurance premiums which are regularly paid by the Company; provided, that the Company will pay up to one hundred eighty (180) days of the employee's insurance premiums if the employee is absent due to his/her own injury or illness.

Any employee who appears to be physically or mentally incapable of performing his/her assigned duties may be required by the Company to have a physical examination or to present a statement from a doctor to his/her supervisor stating that he/she is able to continue to perform his/her assigned duties.

Any person, regardless of medical release, who is found to be unable to perform his/her assigned duties, or otherwise be unable to perform to the standards of the

Company due to any medical condition, will be placed on disability leave without pay.

The period of leave shall be such as is reasonable for rehabilitation, but in no event longer than twelve (12) months from the date of the commencement of the leave.

During the period of leave, the employee's seniority will not be affected. In the absence of a reasonable medical basis for disability leave, the Company will not be obligated to reinstate the employee. Where practical and reasonable, the Company will modify the position or reassign the individual to an alternate position.

An employee suffering injury arising out of and m the course of his/her employment who is required to leave the job will be paid from the time of the injury to the end of the normal shift on the day of such injury. Payment will be at the employee's regular rate of pay. Employee's on leave because of injury on or off the job, or because of illness, shall accrue seniority while on leave for a period not to exceed twelve (12) months for injuries occurring on the job and not to exceed twelve ( 12) months for injuries occurring off the job; and shall be reinstated to his/her former position upon his/her return to work, provided the position is still in existence. Any person who has bid or filled the injured person's position will return to his/her previous position, or, if hired to fill a vacancy, will be laid off.

The Company will not provide or cause general knowledge of reasons why any employee is absent from work nor his I her pay status I type except to the Local Union

President.

ARTICLE XXI - VACATION

All fuJl-time employees who have been employed at Maxwell-Gunter Air Force

Base, Alabama with the present Company, or its predecessor or successor, will after one

( l) year of continuous service receive two (2) weeks paid vacation, three (3) weeks vacation after three (3) years of continuous service, four (4) weeks vacation after ten

( 1 O) years of continuous service and five (5) weeks vacation after twenty (20) years of continuous service. One ( 1) week of vacation pay, when earned, may be paid in lieu of time off, provided the Company is notified at least two weeks in advance. Vacation time will not carry over from year to year. Earned vacation which the employee has been prevented from using due to operational requirements will be paid to the employee at the end of his/her vacation year.

Vacation will, in-so-far as possible, be granted at a time most desired by the employee's, however advance vacation scheduling is required in order to insure a normal operation. Workload permitting, vacation may be taken: a day at a time

(providing that advance notice is given at least two (2) working days prior to vacation);

or one week at a time. Vacation time taken may not exceed ten ( 10) days over a twelve

( 12) month period after two years, and fifteen (15) days over a twelve ( 12) month period after three (3) years, and twenty (20) days over a twelve (12) month period after ten (10) years.

Vacation pay for part-time personnel will be pro-rated based on the number of hours the employee works during the anniversary year divided by 2,080 hours. No vacation pay will be granted until the employee completes one year of continuous service.

Any employee who is terminated, resigns or loses his/her job due to the expiration of this agreement or the government contract shall receive pro-rated vacation pay for which he/she is entitled through the last day of employment; provided that no vacation pay will be granted unless the employee has completed at least one year of continuous employment.

Emergency vacations, minimums of four (4) hours, will be approved - however, the employee may be required to show proof of the emergency.

ARTICLE XXII - SICK LEA VE

SECTION A.

An employee shall be entitled to sick leave with pay following one (1) month of service. Sick leave shall be accrued in the following manner - only full-time employees and full time/flex employees (those averaging 32-40 hours) shall be eligible for 3.69 hours of sick leave per bi-weekly pay period. An employee shall not be paid for unus·ed sick leave; however, sick leave may be carried over from year to year, provided that no employee shall be allowed to accumulate more than two hundred and forty (240) hours of sick leave.

SECTION B.

If any employee is absent for two (2) days or more due to illness, the employer may require a doctor's certificate. The employer may require a medical certification of illness for one (1) day of absence if the employee is absent on a Monday or Friday.

Employees may also use their sick leave for their spouse's or child(ren)'s illness on the same terms and conditions of an employee's use of sick leave for his/her own illness.

SECTION C.

In order to receive payment of sick leave benefits, it is the employee's respons ibility to do the following: ( 1) Specifically request payment of sick leave from immediate supervisor; (2) Comply with the reporting procedures set forth in Section D below.

SECTION D.

It shall be employee's responsibility to notify the employer if he/she will be absent. Employees that will be absent shall have the responsibility of giving management notification at least two (2) hours before the shift they are scheduled to work.

SECTION E.

In the event that the employer has reasonable grounds to believe that an employee is abusing sick leave, the employer may require a doctor's certificate from the employee.

ARTICLE XX.III - BEREAVEMENT LEA VE

A full-time employee who has completed the probationary period and has a death m their immediate family shall be given three (3) work days off with pay at their regularly straight-time hourly rate. For purpose of this Article, "immediate family" shall mean legal spouse, brother, sister, child, parents, parents-in-law, grandchildren, brother in-law, sister-in- law, grandparents-in-law, step children and/or grandparents. Upon request, the Company shall be furnished proof of such death.

ARTICLE XXIV - UNION OFFICIALS

Upon proper notice, employees elected or appointed as officers or representatives of the Union, local or International, may be granted leave of absence without pay for official Union business at any time and shall retain and accumulate seniority while on leave. They shall be reinstated to their former positions. Any leave subject to this section shall be of short duration, temporary in nature, and shall not exceed six weeks in any federal fiscal year. The senior Union representative employed by the Company shall have seniority over all other employees in cases of layoffs and/or cutbacks of personnel.

It shall be the duty of the Union to give the Company a notice of any proposed leave of absence for official Union business as soon as is practical after determining that said leave will be necessary; preferable, at least two (2) weeks in advance of the proposed leave; and said leave will be granted upon proper notice.

ARTICLE XXV - EMPLOYEE BENEFITS

The Company reserves the right to modify or replace the following benefit plans.

However, should such action be planned, the Company will notify the Union in advance and meet with the Union as soon as possible after such notification to negotiate modifications to Sections A and B below.

SECTION A.

The Company will provide group insurance plans for each full-time employee under the Exelis Systems Corporation Flexible Benefits Program. A full-time employee is one who was not hired as a part-time employee and whose average weekly hours worked and/or paid is at least thirty- two (32) hours. Under this program, the Company will provide each covered full-time employee with Flexible Benefits Credits in the amount shown below each bi-weekly pay period in which the employees work or receive paid time off. These credits will be prbvided on a pre-tax basis under Internal

Revenue Code Section 125. Employees may use these credits to purchase coverage for themselves and eligible dependents from any of the group insurance plans offered under the Company Flexible Benefit Program including Medical, Dental, Vision, Short Term

Disability and Long Term Disability Insurance, Supplemental Life Insurance, Flexible

Spending Account, Cancer Plan, Accident Plan, and Medical Bridge Plan. Pre-tax credits may not be used to purchase Dependent Life Insurance Coverage which is offered with after-tax payroll deductions. Any coverage costs in excess of the Company provided credits will be paid by the employees via pre-tax payroll deductions. Any excess credits will be paid to the employee as additional taxable income each pay period. In addition to the aforementioned benefits, the Company will provide each employee with Basic Life Insurance, Accidental Death and Dismemberment Insurance, and Short Term Disability Insurance at no cost to the employee.

Flexible Benefits Credits

Effective

08/01112

01 /01 / 13

01101114

01101115

Bi-weekly Credits

$480.00

$480.00

$482.50

$487.50

Part-time employees will receive $3.21 per hour worked to a maximum of forty

( 40) hours per week in lieu of the above benefits program.

SECTION B.

All eligible employees in the bargaining unit may participate m the Exelis

Systems Corporation Retirement/Savings Plan, a defined contributions retirement plan with pre-tax savings ( 401 K) provisions. Participation may begin on July 1, 2009 for employees hired from the predecessor contractor. The provisions of this program are as stated in the Summary Plan Description to be provided to all eligible employees.

Effective July 1, 2009, the Company will make matching contributions as outlined below:

Eligibility

New employees will be eligible the first of the month after completing 30 days of employment.

Employee Contributions

Employees may save from 1 % to 25% of pretax base salary up to the limits set by the IRS. For employees turning age 50 (or older) by December 31st of each calendar year of the agreement, age 50 catch-up contributions are allowed in accordance with the limits set by the IRS.

Fund Options

Seventeen ( 17) Fund options are available for investment.

Exelis Systems Corporation Contributions

The company will contribute a match of fifty (50) cents on the dollar up to three percent (3%) of the employee's base wages to the employee's 40lk account.

Vesting

Vesting means that you have rights to all or portion of the money in your account. These rights cannot be forfeited or otherwise taken away. You are always 100% vested in the value of your account. Predecessor contract service counts towards vesting.

SECTION C.

The company will offer a Roth 40 I (k) after tax option to all employees. Employees may elect to make contributions through payroll deductions to this plan in accordance with all applicable IRS rules and regulations.

SECTION D.

The company promotes and encourages education and training as a means of increasing employee productivity and expanding career potential. Employees under this agreement are eligible for these benefits. Contact the Human Resources office for further information.

ARTICLE XX.VI - SEVERANCE PAY

SECTION A.

Any employee covered by this Agreement who loses his/her job because the position is eliminated or who otherwise losses his or her job by reason of a reduction in the work force caused by the Company or by reason of changes in the contract requirements caused by the Government, shall receive severance pay in accordance with

Section B and/ or Section C of this Article.

SECTION B. (Full Time Employees)

Severance pay, under Section A of this Article, shall be based at the rate of one and one half ( l.5%) percent of the full time employee's gross hourly rate times actual hours worked. The minimum severance will be based on 32 hours per week and the maximum will be 40 hours per week to a maximum of 2080 hours per each year of continuous service in the bargaining unit, (i.e., 4 years of service at $5 .00 per hour shall be compensated at the rate of .015 x $5.00 x 2080 x 4; or if hours worked were 32 hours per week for 52 weeks; .015 x $5.00 x 1664).

SECTION C. (Part Time Employees)

Part time employees' severance pay under Section A of this Article shall be based at the rate of one and one half (l.5%) of actual hours worked in last anniversary year of employment.

Employees who at any time have held "full time positions" will receive severance pay computed under Section B of this Article. (This applies only to a full time employee whose status changes to part time or a part time employee whose status changes to full time and back again to part time . . . but not, for example, to a part time employee, recently hired, who may have been a full time employee in with a previous contractor.)

Employees who have held "part time positions" only, will receive severance pay computed in accordance with Section C of this Article.

SECTION D.

Employees will not be eligible for severance pay under this Article in th~ event the Company's contract with the U.S. Air Force is terminated in full or in part, and the employee, within thirty (30) days after termination of his/her employment is employed by, or accepts employment, or enters into an agreement for employment with a successor contractor under a…