ATCH_18_CBA_23_July_-15_Apr_19.pdf

AGREEMENT

BETWEEN

PRIME CONTACTOR

BEARING SEA ENVIROMENTAL TO INCLUDE

SUBCONTRACTOR DIVERSE TECHNOLOGY KORPS

AND

INTERNATIONAL ASSOCIATION OF MACHINISTS

AND AEROSPACE WORKERS

Local Lodge 519

LUKE AFB & GILA BEND AFAF, ARIZONA

23 July 2016 to 15 April 2019

FA3002-18-R-0010, Air Combat Training System Attachment 18

TABLE OF CONTENTS

ARTICLE SUBJECT PAGE

Preamble and Agreement 3

Article 1 Recognition 3 Article 2 Non-Discrimination 3 Article 3 Management Rights 4 Article 4 Union Access to Operations 4 Article 5 Grievance Procedure 4 Article 6 Discharge and Discipline 5 Article 7 Arbitration Procedure 6 Article 8 No Strike/No Lockout 6 Article 9 Bulletin Boards 7 Article 10 Bargaining Unit Work 7 Article 11 Seniority 7 Article 12 Business Travel 8 Article 13 Filling of Vacancies 8 Article 14 Hours of Work 9 Article 15 Overtime 9 Article 16 Differential 10 Article 17 Leave of Absence 10 Article 18 Assignment of Shop Stewards 10 Article 19 Check Off 11 Article 20 Employee Rules of Conduct and Performance 11 Article 21 Safety 11 Article 22 Successors and Assigns 12 Article 23 Substance Abuse Policy 12 Article 24 Wages 12 Article 25 Holidays 13 Article 26 Vacation 13 Article 27 Jury Duty 14 Article 28 Bereavement Leave 14 Article 29 Education Reimbursement 15 Article 30 Insurance 15 Article 31 Installation of New and Revised Job Classifications 15 Article 32 Savings Plan 15 Article 33 Specific Performance 16 Article 34 Term and Notice of Change or Termination 16

PREAMBLE

The Parties have entered into this Agreement for the purpose of setting forth in writing the understandings they have reached with respect to wages, work hours, and working conditions of the employees covered hereby, as well as to the rights of the Company and the Union, and to provide a peaceful means for the settlement of any disputes which may arise with respect to the interpretation or application of their understandings and agreements as set forth herein.

AGREEMENT

This Agreement is made and entered into this 27th day of April, 2016 to be effective by and between Bering Sea Environmental, LLC to include all applicable subcontractors (hereinafter referred to as the Company) and the International Association of Machinists and Aerospace Workers and its Local Lodge 519 (hereinafter jointly and severally referred to as the Union).

This agreement shall remain in effect until midnight on 15 April 2019. This agreement shall only be modified by negotiation and mutual agreement of the parties. Written notice of desire to modify the Agreement must be given by either party at least sixty (60) calendar days prior to commencement of negotiations.

ARTICLE 1 - RECOGNITION

Section 1. The Company hereby recognizes the Union, its designees and representatives, its successor and/or assigns, as the sole and exclusive bargaining representative for all full time and regular part-time personnel (as certified by the National Labor Relations Board) to include electronic technicians, quality control inspectors, computer operators, pod loaders, supply technicians, radar operators, range control officers and computer system analysts at Luke AFB and Gila Bend AFAF in performance of operation, maintenance and mission support for Air Combat Training System (ACTS) program for the United States Air Force under contract FA3002-14-D-0002. This agreement excludes office clerical employees, professional employees, managerial employees, and supervisors as defined in the act.

Section 2. Should any part of this agreement or any provision herein contained be rendered or declared illegal by reason of any existing or subsequently enacted legislation or a decree of a court of competent jurisdiction, such invalidation of any such part or portion of this agreement shall not invalidate the remaining portions herein and those remaining portions shall remain in full force and effect.

The Company and the Union, within thirty (30) days of knowledge of such an occurrence shall discuss the impact of such actions. If either party desires to negotiate a new provision regarding the affected portion, then that party may serve notice upon the other, in writing, of its desire to negotiate the provision of the Agreement affected by such legislation or court decree. The parties shall meet within thirty (30) days of the presentation of the written notice to negotiate changes to the Agreement. Any mutually agreed upon modifications or changes to this Agreement brought about by the above negotiations shall be in writing and signed by the parties.

ARTICLE 2- NON-DISCRIMINATION

Section 1. This Agreement shall be applied fairly and shall not in any way be used to discriminate against employees on account of race, color, religious affiliation, sex, age, national origin, veteran or disability status. It is understood that wherever in this Agreement employees or jobs are referred to in the male or female gender; it shall be recognized as referring to both male and female employees.

Section 2. There shall be no discrimination, interference, restraint, or coercion, by the Company or any of its agents against any employee because of Union membership or because of acting as an officer of or in any other bona fide activity on behalf of the Union. There shall also be no discrimination, interference, restraint or coercion, by the Union, its agents or members, against any Company employee not in the bargaining unit who is not a member of the Union.

ARTICLE 3- MANAGEMENT RIGHTS

Section 1. Except as specifically limited by this Agreement, the management of the Company and the direction of the work force, including but not limited to the service performed, the location of the work force, the schedules and fair standards of employee performance, the schedules and hours of shifts, the methods, processes, and means of providing services, materials to be purchased, determination of staffing levels, the right to hire, promote, demote, transfer, assign and reclassify employees (to include designation of leads), the establishment of reasonable rules of conduct, the discharge or discipline of employees for just cause, and the management of efficiency of employees, are the sole and exclusive rights and responsibilities of the Company.

Section 2. The Union and employees shall be notified prior to the enforcement of new work rules or changes in existing work rules. The Union reserves the right to pursue through the Grievance and Arbitration procedures, as spelled out in this Agreement, rules which it believes to be unreasonable.

ARTICLE 4- UNION ACCESS TO OPERATIONS

Section 1. The Company agrees that the Union Representative will be allowed to visit employees while they are on the job in the Company's operations for the sole purpose of investigating specific grievances or complaints related to the provisions of this Agreement or insuring the terms and conditions of the Agreement are being complied with. Prior approval must be obtained from the Site Manager (or designee) and such visits shall not interfere with production of work being performed. Such approval shall not be unreasonably withheld. The union representative shall notify the Site Manager (or designee) when leaving the Company's operations.

Section 2. The Company, if it desires, may have a Company representative accompany the business representative, recognizing that the Union Representative is entitled to private conferences with any represented employee.

ARTICLE 5 - GRIEVANCE PROCEDURE

Section 1. "Grievances" shall mean, and be limited to disputes or differences between the Company and the Union, or employees so represented, with respect to the interpretation or application of any specific provision of this agreement. Both parties agree to use their best efforts, including informal meetings involving management, supervision, Shop Steward, and the grievant, to resolve matters without resorting to the grievance procedure. All grievances shall be processed in accordance with the following steps:

Section 2. All grievances involving employee claims beyond Step 1 below shall be in writing and shall be signed by all employees claiming rights hereunder. In an effort to adjust employee grievances by mutual agreement, they shall be presented in the following order and within the following time limits;

Action Recipient Claimant Time

Step 1 Verbal Site Manager Employee or Steward 5 working days Resolution 5 working days

Step 2 Written Program Manager Employee & Steward 5 working days Resolution 15 working days

Step 3 Appeal President (or designee) Union Business Rep 5 working days

Resolution 20 working days

Step 1: In the event an employee is unavoidably absent the employee's shop steward may bring the grievance to the supervisor.

Step 2: A written grievance containing the article or section which is claimed to be violated and the remedy requested, must be signed by the employee and submitted by the Shop Steward.

Step 3: Written appeal by the Business Representative of the Union with a written reply from the Company. If no agreement has been reached the grievance or dispute may be submitted to arbitration as covered in the "Arbitration Procedure" article.

Section 3. A final decision made with respect to any grievance in the first or second step shall apply to that grievance. All settlements must be consistent with the terms and conditions of the Agreement.

Section 4. Any aggrieved employee and Union representative shall have the right to be present at any stage of the grievance procedure. No employee may leave their duties without permission, such permission shall not be unduly withheld. Witnesses called by either party may attend the grievance meeting at any step, subject to the same provisions outlined above.

Section 5. The authorized Union representative shall have the right to examine records pertaining to the dispute.

Section 6. It is understood that the time limits specified herein may be extended by mutual agreement of the parties hereto.

Section 7. Nothing in this article precludes the union from filing, a general grievance on behalf of an employee or employees in the event of unusual or unforeseen circumstances.

ARTICLE 6 – DISCHARGE AND DISCIPLINE

Section 1. Disciplinary action and termination decisions shall only be initiated by the Company for just cause. The Company will provide the Steward, (or designee), and the Directing Business Representative of the Union with a copy of all written disciplinary notices. In the event of a suspension pending discharge, the Company will immediately notify the Steward (or designee), the Directing Business Representative, and the employee. Once the Company has made a final decision, it shall notify in writing the steward, the directing Business Representative, and the employee.

The purpose of the following procedure is to provide a fair system of administering progressive corrective discipline throughout the bargaining unit. It should be noted that although this system is intended to be progressive and corrective, the Company may determine that certain infractions or conduct (or a documented history of various infractions or conduct) may justify skipping or accelerating certain steps or levels of discipline.

The progressive disciplinary process will involve a four step procedure as follows:

Step 1: Verbal warning with documentation to the employee's file;

Step 2: Written warning with copy to employee and employee's file;

Step 3: Three (3) day suspension without pay;

Step 4: Suspension pending discharge.

Depending on the nature and severity of the offense, discipline can start at any point in the process and need not follow each step in succession.

Section 2. Notwithstanding the above, the Employer shall have the right to immediately discharge an employee for any of the following reasons:

Theft;

Use, possession or impairment of alcohol and/or drugs at work;

Insubordination;

Fighting;

Willful, wanton or malicious conduct which causes or is likely to cause personal injury to the employee, to other employees, or to third parties, or which causes or is likely to cause damage to property;

Falsification of time records including entering data into another employee's time record;

Willful violation of the Company's safety rules;

Sexual harassment and/or any other act of discrimination prohibited by applicable federal and/or state law which was determined to have occurred by virtue of the Company having conducted a good faith investigation and having arrived at a reasonable conclusion;

Disseminating or misappropriating the Company’s confidential or proprietary information or trade secrets;

Conviction of a felony;

Failure to possess a valid driver's license or in a class necessary to perform the employee's duties; or Inability to obtain or maintain a government security clearance if required by the government.

Section 3. Records of verbal discipline will not be used against the employee for progressive discipline after six (6) months from the date issued. Written records of discipline will not be used against the employee for progressive discipline after one (1) year from the date issued. Suspensions will not be used for the purpose of progressive discipline following eighteen (18) months from the date issued.

Section 4. Employees may request to review their own Personnel File (to include disciplines) maintained by the Company with reasonable notice. Request shall be fulfilled in a reasonable period of time. Review will be conducted under the supervision of the contract Site Manager (SM) or designee. Employees are not permitted to remove any documents from the personnel file but may provide a written response to any document contained therein. Written responses will be attached to the original document in the personnel file.

ARTICLE 7- ARBITRATION PROCEDURE

Section 1. The party choosing to arbitrate shall give written notice to the other party setting forth the matter to be arbitrated.

Section 2. In the event the Union submits a grievance to arbitration, a panel of seven (7) arbitrators will be requested from the Federal Mediation and Conciliation Services. The parties shall alternately strike an arbitrator until one (1) name remains.

Section 3. The decision of the arbitrator shall be final and binding on all parties. The expense and fees of the arbitrator will be borne equally by both parties.

ARTICLE 8- NO STRIKE/NO LOCKOUT

Section 1. The Union agrees that neither it nor any of the employees in the bargaining unit, covered by this Agreement will collectively or individually engage in or participate in any strike, slowdown or stoppage of work during the term of the Agreement and the Company agrees that during the term of this Agreement it will not lock out any of the employees covered by the Agreement.

ARTICLE 9 -BULLETIN BOARDS

Section 1. The Company agrees to allow one (1) bulletin board for each site for the posting of legitimate Union notices pertinent to the Union at the facility. Only notices concerning Union meetings, Union elections, results of Union elections, etc., which a representative of the Union has authorized, will be posted.

The Union agrees that all notices will be submitted to the Site Manager, or his designee, for review and approval prior to their posting.

ARTICLE 10 - BARGAINING UNIT WORK

Section 1. Company employees not covered by this agreement shall not perform work performed by employees in the bargaining unit, except in cases of emergency. The term “emergency” is defined to mean an unforeseen circumstance or combination of circumstances. The Company agrees that none of the above circumstances will cause a bargaining unit employee to be laid off, replaced or displaced from the bargaining unit.

ARTICLE 11 – SENIORITY

Section 1. Probationary Period: Any employee who has been in the employment of the Company or the predecessor contractor for ninety (90) consecutive calendar days shall be considered a Seniority Employee of the Company and shall not be subject to a probationary period.

New employees shall be subject to a ninety (90) day probationary period. During the probationary period the employee shall be subject to layoff, discipline, or discharge at the sole discretion of the Company, and such action shall not be subject to the grievance procedure. Except as specifically mentioned in this section, the employer is required to maintain all provisions of this agreement for probationary employees.

Section 2. Definitions:

a) Seniority is defined as including the whole span of continuous service with the present contractor, or successor, and with predecessor contractors, in the performance of the ACTS Program at the Luke Air Force Base facility and Gila Bend AFAF. Employees hired on or after the date of contract ratification will establish their seniority from date of hire. Personnel transferred from other Company locations will vest in benefits in accordance with their years of service to the Company, however, for the purpose of this agreement their Seniority date shall be their date of hire under the ACTS Program at Luke AFB and/or Gila Bend AFAF.

b) Seniority will not be broken for: (1) periods of approved absence with leave, (2) periods of layoff due to lack of work, (3) periods of absence due to injury or illness. Periods of absence set forth in

(2) and (3) shall not exceed 12 months in order to maintain seniority. In the case of job related injuries, continuous employment will be for the length of the disability.

c) When two or more employees are hired on the same day, the last four digits of their Social Security number shall then be used for determining their seniority. The employee that has the lowest number shall be considered to be the most senior of the employees hired on the same day.

Section 3. Loss of Seniority: All seniority of any employee shall terminate if the employee:

a) Voluntarily resigns;

b) Is discharged for cause;

c) Is on layoff status in excess of 12 months;

d) Has their security clearance has been revoked and is not legally reinstated within six (6) months;

e) Refuses recall

Section 4. Seniority List: A seniority list by job classification will be maintained by the Company and will be made available to the Union upon request. The Company will also furnish to the Union the names of all new-hires or rehires/recalled, their classification, their date of hire, and termination or layoff dates or other dates of leaving the bargaining unit as they occur.

Section 5. Layoff: In any layoff, probationary employees shall be the first to be subject to layoff action. If no probationary employees are currently employed, the least senior qualified employee in the affected classification shall be laid off first. The company shall notify affected employees as soon as the facts are known to the Company of upcoming layoffs but not less than two (2) weeks’ notice. All layoff decisions are subject to the provisions of Article 5 of this agreement.

Section 6. Steward Seniority. Shop Stewards shall be given seniority over all employees whom they represent during reduction in forces, provided work in their classification(s) is available and provided that the employee who they would supplant does not have at least five more years of seniority then the Shop Steward.

Section 7. Recall: Employees shall have recall rights for up to twelve (12) months following layoff.

Employees in layoff status will be recalled in reverse order of layoff for any classification to which they are qualified. Qualified is defined as any employee that has worked successfully in a classification as defined in this agreement. The Company will send recall notices, by certified mail, to employee's last official address. The employee has five (5) working days after receipt is received but no later than fifteen

(15) calendar days from the date of receipt to accept reemployment.

ARTICLE 12 - BUSINESS TRAVEL

Company directed mandatory travel will only be applicable in support of the AETC ACTS Luke AFB AZ contract. All other travel shall be strictly on a voluntary basis. For travel in support of the AETC ACTS Luke AFB AZ contract, the following will apply:

Section 1. All qualified senior employee(s) will be asked to volunteer for temporary assignments.

The most qualified senior volunteer shall be given the travel assignment. If no volunteers are available, the Company shall assign the employee(s) best suited to take the temporary assignment.

Section 2. Employees who travel more than 25 miles from the work site to perform work for the Company will be furnished transportation as designated by the Company. Air travel will be on the carrier designated by the Company. All air travel will be coach/economy/tourist class.

Employees may be authorized to use their personal cars (POV) and will be reimbursed for travel at the appropriate government rate. All travel expenses shall be preapproved and will be reimbursed on the next regularly scheduled payroll run in accordance with Company procedures.

Section 3. Employees traveling on days other than their regularly scheduled work days or on the same day after working their regularly scheduled workday will document time and be paid for all time traveled up to eight (8) hours per day unless otherwise approved in advance by the Company.

ARTICLE 13 - FILLING OF VACANCIES

Section 1. If the Company determines to fill a new or existing vacancy or job within the bargaining unit, the Company will post a notice of vacancy or job opening for a period of not less than five

(5) working days prior to filling the vacancy or job opening. Any employee may submit a bid for the job in writing, during the posting period. The notice posted declaring that such vacancy or job opening is to be filled shall contain at least the following information:

a) The date the notice is posted and the date and time the notice will be removed;

b) The job to be filled and the classification;

c) Job Specifications;

d) Effective date the job is to be filled.

The Union's Steward will be furnished a copy of any bid upon request, as long as the individual submitting the bid agrees to provide personal information to the union.

Section 2. The Company will award the job to the most qualified senior employee. Qualified as it is used in this article shall mean the employee meets the qualifications of the job specifications and has the physical ability to perform the work. Qualifications shall not be applied in an arbitrary or capricious manner, but shall be based upon reasonable expectations for the work performed.

ARTICLE 14 - HOURS OF WORK

Section 1. Workday: The workday shall consist of a 24-hour period beginning at the start of their assigned shift and a regular day’s work shall consist of eight hours.

Section 2. The workweek shall consist of seven (7) consecutive days beginning at 12:01 a.m.

Sunday and the regular weekly work schedule shall consist of five (5) consecutive eight (8) hour workdays starting on Monday and ending on Friday or other schedules as mutually agreed to.

Section 3. Determination of starting time and hours of work shall be dictated by the Air Force flying schedule.

Section 4. Shifts: First Shift: The Company shall be responsible for establishing shift schedules and shall have the final determination in resolving any conflict(s) in the shift schedules as established. Shift schedules shall be established based on the needs of the Air Force flying schedule. Second shift shall be defined as all personnel who are scheduled in relief of first shift personnel. In the event a third shift is required by the customer the party’s will meet and negotiate the hours. Work schedules shall not be developed with the purpose of avoiding second shift differentials. Work shift may be changed with a minimum of one-week notice or not later than 4:00 pm the day prior at the direction of the customers flying schedule if less than one (1) week.

Section 5. When an employee is called and reports back for additional work after he has completed his regularly assigned shift and departed from the premises, he shall receive a minimum of 4 hours pay at the applicable working rate.

Section 6. When an employee is not scheduled, and is called and reports for work, outside his scheduled work-week, he shall receive a minimum of 4 hours work or 4 hours pay at the applicable working rate unless the employee opts to leave when the work is completed.

Section 7. If an employee is specifically notified and scheduled to start work 4 hours or less before the starting time of his regularly scheduled shift, within his assigned work-week as set forth in Section 4, he shall be given the opportunity to remain at work until the end of his regular shift with the approval of the site manager.

Section 8. Changes to shift scheduling practices shall only be made by the Site Manager and deviations in the facility shift scheduling process shall take into consideration comments from the Union. Employees may trade shifts with other qualified employees with prior approval.

ARTICLE 15 - OVERTIME

Section 1. When operations dictate that overtime is necessary, and approved by management, the following shall apply:

Overtime will be paid at the rate of one and one-half times the regular rate of pay for all hours paid in excess of 40 hours per week. The overtime rate will include lead and shift differentials as applicable.

Section 2. There shall be no pyramiding of overtime pay, and nothing in this Agreement shall be considered to require the payment of overtime pay more than once for the same hours worked.

Section 3. Available overtime shall be rotated and equalized among qualified volunteers. If no volunteers are available to work the necessary overtime, it will become mandatory and assignment shall be made by management.

Section 4. Notice for mandatory scheduled weekend work will be given as soon as the customer informs site management that weekend work will be required. Employees will be paid a minimum of 4 hours if required to work on Saturday, Sunday, or any Holiday as defined in Article 24.

ARTICLE 16 - DIFFERENTIAL

Section 1. All second shift employees will be paid a $.50 cent per hour shift differential. If additional shifts are needed they will be agreed upon by mutual agreement of the Company and the Union before implementation. Shift differential will be paid for holidays, vacation, bereavement leave and jury duty if they occur during the work week the employee is on second shift.

ARTICLE 17 - LEAVE OF ABSENCE

Section 1. Personal Leave. The Company may approve a leave of absence without pay for personal reasons. Such leave must be requested in writing at least five (5) calendar days prior to the date the leave would commence except in cases of emergency.

Section 2. Failure to Return to Work from Leave of Absence. Failure to return from a leave of absence on the first scheduled workday following the expiration date of said leave, will result in termination of the employee, except in extenuating circumstances involving reasons acceptable to the Company.

Section 3. Short Term Military Annual Leave.

BSEn has a great deal of respect for those in the Armed Forces. Leaves of absence without pay for approved military leave will be handled in accordance with applicable laws. Leaves of absence without pay for military or reserve duty are granted to full-time regular and part-time regular employees.

Section 4. Family Medical Leave Act: The Company agrees to extend the benefits of the Federal Family Medical Leave Act to bargaining unit employees.

ARTICLE 18 - ASSIGNMENT OF SHOP STEWARDS

Section 1. It is hereby understood and agreed that the Union may assign one (1) Shop Steward for each site to represent Bargaining Unit employees. The Union shall notify the Company in writing on Union letterhead of the individuals so selected in this capacity.

Section 2. It is agreed that Stewards have full-time job duties to perform as employees and that they shall keep time spent in handling grievances to a minimum. Time spent performing Union business shall not interfere with normal operations.

Section 3. Should a Steward be required to leave the job to handle a grievance, he shall first request and receive the permission of the Site Manager (or designee), and shall report to his Supervisor upon returning to work. Permission to leave the job to handle a grievance shall not be unreasonably withheld.

Section 4. No Union Representative will be restrained, coerced, intimidated or discriminated against because of activities preformed on behalf of the Union nor will Union Representatives be denied any rights or privileges otherwise entitled to him for serving as a Union Representative.

Section 5: Leaves of absence without pay for Union Representative(s) to participate in official Union business or to attend conventions, educational or other functions of the Union will be granted by the Company. Such leaves of absence will be approved if submitted no less than two weeks in advance and with Company’s acceptance of Union Representative’s plan for coverage of duties and responsibilities during their absence. Such leaves of absence shall be limited to no more than two weeks in any contract year. Seniority and benefits will accumulate during such leave. Not more than one (1) employee shall be on such leave at any one time, unless prior consent of management is obtained.

ARTICLE 19 - CHECK OFF

During the existence of the Agreement, the Company, insofar as permitted by State and Federal law, shall deduct out of the current net earnings payable biweekly to an employee covered by the Agreement, applicable service fees or Union dues, initiation fees and reinstatement fees, upon receipt of and in accordance with a deduction authorization, duly executed by the employee. The Company shall continue deductions until such authorization is duly revoked by the employee, notice of which is to be provided to the Company by the Union. The Company shall make such remittance to the Union in one lump sum within ten (10) days after the end of the month in which said deductions are made.

ARTICLE 20 - EMPLOYEE RULES OF CONDUCT AND PEFORMANCE

All employees are expected to conform to all policies and procedures of the Company. Employees shall have access to all Company policy and procedures. The Company agrees that this agreement overrides any policy and procedure that is in conflict with this agreement. The Union has the right to meet and confer on any policy and procedure it considers to be unreasonable. Employees are expected to perform the duties assigned to them promptly and satisfactorily, to conduct themselves at all times in a businesslike and professional manner, to refrain from taking any action which would be detrimental to the business interest of the Company, and exhibit a high degree of personal integrity at all times.

ARTICLE 21 - SAFETY

BSEn is committed to providing a safe and healthful working environment. BSEn believes that people are its most important asset and that our greatest responsibility is for their safety. The Company will provide safe working equipment, necessary personnel protection, and, in case of injury, the best available first-aid and medical services. BSEn policy is aimed at minimizing the exposure of our employees, customers, and others visitors to Company facilities and worksites to health or safety risks. Operations which cannot be conducted safely with loss control measures, either with respect to injury or to long term health and environmental damage, will not be tolerated. Upon initial employment all employees are required to acknowledge that they have read and understand the Environmental, Health and Safety (EHS) program, Site Safety Plan and/or client safety policies. This is a condition of employment.

While supervisors have the primary responsibility for ensuring overall safe work practices in the workplace, the employees share a responsibility for following all safety practices and maintaining a safe workplace.

The Company expects each employee to accept safety as a personal responsibility, to cooperate and participate in the Company's Environmental, Health and Safety (EHS) program. BSEn complies with all field operators’ safety guidelines as a provision of its contracts. Failure to comply with the Environmental, Health and Safety (EHS) program and policy will subject the employee to disciplinary action, up to and including involuntary termination.

The Company will comply with the applicable State and Federal OSHA requirements and make reasonable provisions for the comfort, safety and health of employees. The Union shall have the right to confer with the Company regarding these matters. The Company will provide such tools and personal protection equipment as required to perform daily operations in a safe manner.

Except for shoes, all safety wearing apparel, safety equipment, and/or protective devices shall be provided by the Company and remain property of the Company and are intended solely for the use of employees during working hours. Once every two years (or “as needed”) the company will provide funds for the replacement of safety shoes for flight-line personnel and any other personnel who are required by OSHA regulations to wear steel toe boots in the performance of their job duties. The Company will pay a maximum of $100.00 toward the purchase of safety shoes. Employees who receive payment for the purchase of safety shoes shall be required to wear safety shoes while performing work for the Company. The Company shall furnish safety and protective equipment to employees as required by industry standards established by Occupational Safety and Health Administration (OSHA) and the United States Air Force.

ARTICLE 22 - SUCCESSORS AND ASSIGNS

This Agreement shall be binding upon and shall inure to the benefit of the parties hereto, their successors and assigns; but in the event the Company ceases to perform on the contract as identified in Article 1, the Company shall be released from all obligations on the project(s) so affected under this Agreement.

ARTICLE 23 - SUBSTANCE ABUSE POLICY

The Company and the Union are committed to providing employees with a drug-free and alcohol-free workplace. It is our goal to protect the health and safety of employees and to promote a productive workplace, and protect the reputation of the Company, Union and employees.

Consistent with these goals, the Company prohibits the use, possession, distribution or sale of drugs, drug paraphernalia or alcohol while on Company business. A program of testing to comply with Federal or State regulations is established and all personnel will comply with the established policy.

ARTICLE 24 – WAGES

The wage rates listed below apply to all non-exempt employees at the Company's ACTS Luke Air Force Base and Gila Bend AFAF facility. An employee's regular rate of pay shall be defined as his Base Rate.

This Base Rate will be increased annually as designated below. These increases will be effective on the dates indicated in this Agreement.

Classification Current 1/15/17 1/15/18 1/15/19

Electronic Technician I $23.17 $23.63 $23.87 $24.11

Electronic Technician II $32.63 $33.04 $33.37 $33.70

Electronic Technician III $35.23 $35.67 $36.03 $36.39

Quality Control Inspector $35.76 $36.21 $36.57 $36.94

Computer Operator I $17.10 $17.44 $17.62 $17.79

Computer Operator II $21.44 $21.71 $21.93 $22.15

Computer Operator III $24.27 $24.57 $24.82 $25.07

Supply Technician $29.00 $29.36 $29.65 $29.98

Radar Operator $26.25 $27.64 $27.92 $28.20

RCO $28.23 $29.73 $30.03 $30.33

Computer Systems Analyst $34.81 $35.16 $35.51 $35.87

Section 2. Pay Differentials

A differential of $1.25 per hour will be paid to the designated Assistant Site Manager on all hours worked performing the additional responsibilities in the absence of the site manager. Lead pay shall not be applicable to paid time off.

A differential of $1.05 per hour will be paid to the designated Lead RCO and designated Lead Radar Operator on all hours worked performing additional responsibilities involving scheduling, training and acting as the point of Contact for RCO or LRO specific issues.

Management shall designate an Alternate Lead, as necessary, to cover lead responsibilities during the absence of the designated lead. The Alternate Lead shall receive the lead differential for all hours worked for acting as the point of contact for RCO or LRO specific issues.

Lead pay shall not be applicable to paid time off.

ARTICLE 25 - HOLIDAYS

Each year the following ten (10) days will be guaranteed paid holidays:

New Year's Day Labor Day

Martin Luther King, Jr.'s Birthday Columbus Day

President’s Day Veteran's Day

Memorial Day Thanksgiving Day

Independence Day Christmas Day

Any holiday falling on a Saturday or Sunday will be celebrated on the day set by the Federal Government.

If an employee is on an approved vacation in a week in which a Holiday falls, time will be charged to Holiday rather than vacation. Based on Government training requirements, Holidays may be otherwise arranged by mutual agreement.

Holiday pay will mean the employee’s regular rate multiplied by the number of hours that would otherwise have been scheduled to work, not to exceed eight (8) hours, on such day if it had not been observed as a holiday. Employees required to work on days designated as a holiday will be compensated at 1.5 times the employee’s rate of pay for all hours of work performed on the holiday in addition to his holiday pay.

ARTICLE 26 - VACATION

The vacation year for eligibility and service credit shall be from employee's Company benefit date to Company benefit date. Paid vacation for full time employees will be awarded as follows:

Years of Service (Continuous) Annual Hrs Biweekly rate

From Start of Year 1 through end of Year 4 114 4.385

From Start of Year 5 through end of Year 9 154 5.923

From Start of Year 10 through end of Year 15 194 7.462

From Start of Year 16 or More 234 9.000

All vacation will be paid at the working rate of pay. The Company shall provide accrued vacation on employee’s payroll report on a biweekly basis. Employees shall be allowed to take vacation as time permits, with management approval, and may carry a negative balance of accrued vacation of up to forty

(40) hours during the first year of service under this agreement only. Terminating employees will be paid accrued vacation.

Vacation scheduling requests must be made in writing to their supervisor fourteen (14) calendar days prior to the vacation start date. The Company reserves the right to approve or deny vacation requests based on business operations. Vacation requests will be approved based on date request received. Of the vacation hours indicated above, twenty-four (24) hours will be designated as “personal time” and requires site manager notification but not advance approval.

Employees may rollover up to eighty (80) hours of vacation accrued in the previous year and hours over eighty shall be paid out at their current hourly rate. The Company reserves the right to require employees to take vacation when operations allow in lieu of paying out excess vacation. Employees shall use Leave without Pay (LWOP) for days which are designated as “no-fly” days by the Government if the employee does not have accrued vacation available. Employees will not be required to use accrued vacation if they have less than 40 hours available.

Active employees are allowed to donate up to a maximum of forty (40) vacation hours per year to another active employee(s) for the purpose of addressing an urgent personal medical and/or immediate family emergency. The recipient of the donation may not have any vacation hours available in order to utilize donations(s) and any unused donation shall be returned to the donor(s) on a proportional basis. Donation of vacation hours shall be in increments of not less the whole days (8 hours). Donated hours may not be cashed out.

Sick leave provisions (REF pending Executive Order 13706) if implemented by the Government shall be negotiated by the Parties within sixty (60) days of implementation and shall take effect as mandated by regulation or upon mutual agreement of the Parties.

ARTICLE 27 - JURY DUTY

Absences from work in response to a summons for jury duty are excused absences. Nonexempt employees may receive up to 14 days of paid jury duty leave in a calendar year. Jury service leave is paid at the employee’s base rate at the time leave is granted. It does not include overtime or any special form of compensation such as incentives, commissions, or bonuses. Health benefits and paid time off will continue to accrue during jury service leave.

Employees who are a witness on behalf of BSEn are compensated at their regular rate of pay including overtime, if applicable. Employees do not receive paid witness leave to attend trials in which they are plaintiffs or defendants, or in which they are testifying for a fee as expert witnesses. In such cases, the employee must take paid time off or leave without pay. An employee is not eligible for jury duty pay if the employee is on leave of absence.

Upon receipt of the notice to serve, employees are required to provide a copy of the summons to their supervisor in order that arrangements may be made to accommodate their absence. If the jury duty falls at a time when the absence will cause serious adversity to BSEn, the Company may request that the employee request service be postponed to another time. Supervisors must grant leave to an employee summoned for jury service.

While on jury duty, employees will be required to check-in daily with their supervisor. Employees who are excused or dismissed from jury duty more than two hours before their work shift normally ends must report to work, unless their supervisor releases them from this obligation. Jurors dismissed later in the day must report to work at their normal time on their next regularly scheduled day.

ARTICLE 28 - BEREAVEMENT LEAVE

Full time employees with the Company shall be given up to three (3) paid workdays off to attend the funeral of a member of their immediate family. In the event the funeral is in excess of 250 miles from the employee’s residence, then an additional two days can be taken from either the employee’s accrued leave or the site manager can authorize a leave advance. "Immediate family" shall be considered as follows:

Spouse, parent, parent of spouse, legal guardian, child, son-in-law, daughter-in-law, brother, sister, stepparent, stepparent of spouse, stepchild, stepbrother, stepsister, grandchild, grandparent, and grandparent of spouse, brother and sister of spouse and guardian of spouse. Employee may be required to provide proof of claim.

ARTICLE 29 - EDUCATION REIMBURSEMENT

The Company will provide employees reimbursement of approved educational expenses to a maximum of $2500 per year for classes which are job related. A minimal acceptable grade of “C” or better for Undergraduate courses or a “B” for Graduate degree courses is mandatory. Education request for reimbursement must be approved prior to class start date.

The Company recognizes the importance of a well-trained workforce to successfully support the Customer’s Training Missions and will work with the employees to identify areas where training is necessary or beneficial. Those requirements will be presented to the Customer, and if approved and funded, employees whose job duties would benefit from training will receive it.

ARTICLE 30 - INSURANCE

The Company will pay each employee the amount specified in the table below per hour paid to be used for the purchase of Health and Welfare benefits. Health and welfare benefits shall include life, accident and health insurance plans. The Company’s benefit plan(s) will be offered to employees for consideration, in accordance with the Company's plans for the duration of this agreement.

Current $6.30 1/15/17 $6.35 1/15/18 $6.40 1/15/19 $6.45

ARTICLE 31 -INSTALLATION OF NEW AND REVISED JOB CLASSIFICATIONS

When new Bargaining Unit jobs are required that cannot be properly encompassed within an existing job specialty, the Company will notify the Union of the requirements and will negotiate with the union the rate of pay and job duties prior to the Company establishing the new classification and rate of pay. Implementation of such jobs and their rates of pay shall be mutually agreed to prior to filling any such positions.

ARTICLE 32 –SAVINGS PLAN

Section 1. All employees covered under this agreement shall be eligible to participate in the company sponsored 401(k) Savings Plan. Employees will be permitted to contribute their own monies via payroll deduction up to the maximum allowable by IRS regulations. Contribution shall be based on a percentage of the employee’s gross wage. The Company will match $.50 on the dollar up to a six percent (6%) employee contribution. The match shall commence according to the schedule as specified in the plan documents and will occur on a biweekly basis. Employees shall be vested in the Company matching contributions on the first anniversary date of employment with the company.

Section 2. The plan document(s) will be made available to the Union and employees.

Section 3 Pensions

A. The Employer shall contribute to the I.A.M. National Pension Fund, National Pension Plan for each hour or portion thereof for which employees in all job classifications covered by this Agreement are entitled to receive pay under this Agreement as follows:

Current $.90 per hour 1/15/17 $.95/hour 1/15/18 $1.00/hour 1/15/19 $1.05/hour

If the employee is paid only for a portion of an hour, contributions will be made by the Employer for the full hour.

B. The Employer shall continue contributions based on a forty (40) hour work week while an employee is off work due to paid vacations or paid holidays. The Employer shall also make contributions whenever an employee receives severance pay, vacation pay at termination, or vacation pay in lieu of time off.

C. Contributions for a new, temporary, probationary, part-time and full-time employee are payable from the first day of employment.

D. The I.A.M. Lodge and Employer adopt and agree to be bound by, and hereby assent to, the Trust Agreement, dated May 1, 1960, as amended, creating the I.A.M. National Pension Fund and the Plan rules adopted by the Trustees of the I.A.M. National Pension Fund in establishing and administering the foregoing Plan pursuant to the said Trust Agreement, as currently in effect and as the Trust and Plan may be amended from time to time.

E. The parties acknowledge that the Trustees of the I.A.M. National Pension Fund may terminate the participation of the employees and the Employer in the Plan if the successor collective bargaining agreement fails to renew the provisions of this pension Article or reduces the Contribution Rate. The parties may increase the Contribution Rate and/or add job classifications or categories of hours for which contributions are payable.

F. This Article contains the entire agreement between the parties regarding pensions and retirement under this Plan and any contrary provisions in this Agreement shall be void. No oral or written modification of this Agreement shall be binding upon the Trustees of the I.A.M. National Pension Fund. No grievance procedure, settlement or arbitration decision with respect to the obligation to contribute shall be binding upon the Trustees of the said Pension Fund.

ARTICLE 33 SPECIFIC PERFORMANCE

Either party hereto shall be entitled to require specific performance of the provisions of this agreement.

There shall be no individual arrangements or agreement made covering any part or all of this Agreement contrary to the terms herein provided, and it is distinctly understood and agreed that all previous agreements, whether oral or written, by and between the Company and the Union are superseded by this agreement, and subject to any amendment that is agreed upon by both parties.

ARTICLE 34 - TERM AND NOTICE OF CHANGE OR TERMINATION

This Agreement shall be effective 23 July 2016 and shall continue in full force and effect through midnight on 15 April 2019 and therefore be automatically renewed from year to year unless the party desiring termination or modification of the agreement serves written notice, by certified mail, upon the other party at least sixty (60) days prior to the expiration date of the agreement.

In witness whereof, the parties ~ve caused this agreement to be executed by their authorized representative on2 May2016

For tlle Uaion:

Steven Nickel Grand Lodge Representative

PauJ Shepherd Oireeting Business Representati\te l I.

For the Company Bearfna Sea Eulronmeotal rJQ_~ ·1 ·c.....~~ R. Dean Hughes President

Sr. Vice President

For tile Subc:oatraetor Divene TecbllOloSY Korpe

- -JJ~!?r;;O DcMisKrupp President