11A_Dare County CBA.pdf

AGREEMENT

BETWEEN

AHNTECH INC

AND

INTERNATIONAL ASSOCIATION OF MACHINISTS

AND AEROSPACE WORKERS

DISTRICT LODGE 110

LOCAL LODGE 1859

USAF DARE COUNTY BOMBING RANGE

6 APRIL 2011 THRU 5 APRIL 13

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, benefits, 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.

Neither party shall be required to reopen this Agreement during its term. This agreement can be changed or modified only by a document in writing, signed on behalf of both parties hereto by their duly authorized representatives; provided, however, that written agreements regarding particular matters or understandings may be made between the Company and the Union and will be binding upon the employee or employees concerned, the Company and the Union.

AGREEMENT

This Agreement is made this 6th day of April 2011 by and between AHNTECH Inc. (hereinafter referred to as the Company or Employer) and the International Association of Machinists and Aerospace Workers District Lodge 110, Local Lodge 1859, AFL-CIO, (hereinafter referred to as “the Union).

This agreement shall remain in effect until midnight on April 5, 2013, without reopening rights for any purpose by either party except by mutual consent. This agreement shall automatically renew itself from year to year thereafter unless written notice of desire to terminate the agreement is given by either party at least sixty (60) calendar days prior to any annual expiration date thereafter. If such written notice of desire to terminate is given, the parties may nevertheless mutually agree in writing to extend this agreement for a specified length of time beyond the expiration. All economic improvements will be implemented effective October 1, 2011 and respectfully there after.

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 employees of the PTR program at Dare County Air Force Range as certified by the National Labor Relations Board in Case Number 11-RC-6515 and such other programs, tasks as may hereafter be added by mutual agreement of the parties hereto. 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 decree of a court of competent jurisdiction, such those remaining portions will remain in full force and effect.

Section 3. The Company and the Union, within thirty (30) days of knowledge of such an occurrence will 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 will be in writing and signed by the parties.

ARTICLE 2

SUCCESSORSHIP

The Agreement shall be binding upon and shall insure of the parties hereto, their successors, administrators, executors and assigns until its expiration or until it is changed by mutual agreement of the parties. It is the expressed intent of the parties that the agreement shall remain for its full term. 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 3

NONDISCRIMINATION

The Company and the Union separately and jointly recognize their obligation to abide by those state and federal laws relating to Equal Employment Opportunity, OSHA, nondiscrimination on account of veteran, disability status, Union activity, or other labor laws that may apply to this location. 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. The provisions of this Agreement and conditions of employment shall be applied among all employees in a fair and equitable manner.

ARTICLE 4

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, 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 Company agrees to meet and confer with the Union prior to the implementation of new policies or changes in the existing policies that directly effect the Agreement.

Section 3. The Company will post a copy of all policies in the work area and provide the Union with a copy of changes to its policies within thirty (30) days of the date of change.

ARTICLE 5

UNION ACCESS TO OPERATIONS

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

Section 2. The Company, if it desires, may have a Company Representative accompany the Union Representative while they are visiting its operations recognizing that the Union Representative is entitled to private conferences with any represented employee.

ARTICLE 6

UNION SECURITY

Section 1. Agency Shop. As a condition of employment, all present bargaining unit employees shall become members of the Union or pay an agency fee to the Union equal to the amount of monthly dues (but not both) within thirty (30) days of execution of this Agreement and all new employees shall become and remain members of the Union or pay an agency fee no later than ninety (90) calendar days of their date of hire or transfer. The Company will within ten (10) working days after receipt of notice from the Union, discharge any Bargaining Unit employee who is not in good standing with the Union or paying any applicable agency service fees, initiation fees and reinstatement fees. Any employee so discharged shall be deemed discharged for “just cause”. “Good Standing” is defined as in compliance with standards permitted by NLRB and court decisions relating to Union agency shop requirements.

Section 2. Check-off. Upon receipt of a signed authorization of the employee involved, the Company will deduct from the employee’s pay the initiation fee, if any, and dues payable by the employee to the Union during the period provided for in said authorization.

Deductions will be made on account of dues and/or fees, if appropriate, from each paycheck in each month of the employee after receipt of the authorization. Employees working less than 15 Days per month may pay dues directly to the Union.

The parties agree that check-off authorizations shall be on a form approved by the Union.

Section 3. The sums deducted as stated above will be forwarded to the designated financial officer of the Union no later than the fifteenth (15th) day of the month following the month in which deductions are made.

Section 4. The Union will indemnify and hold the Company harmless from and against any and all claims, demands, charges, complaints or suits instituted against the Company which are based on or arise out of any action taken by the Company in accordance with or arising out of the foregoing provisions of this Article, or in reliance on any list, notice or assessment furnished under any of such provisions.

ARTICLE 7

ASSIGNMENT OF SHOP STEWARDS

Section 1. It is hereby understood and agreed that the Union may assign one shop steward per shift (1st and 2nd). Each shop steward will act as the alternate shop steward in his absence. To the greatest extent possible the stewards will be scheduled on opposite shifts. The Union shall notify the Company in writing 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. A steward shall notify and obtain permission from their supervisor before leaving their work assignment. If a steward is not released, they shall be notified as to the nature of the delay and the expected time in which they may leave. Time limits as specified in the grievance procedure elsewhere in this agreement shall be extended in relation to any delay.

ARTICLE 8

SUBSTANCE ABUSE POLICY

Section 1. 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 to protect the reputation of the Company, Union and employees.

Section 2. The unauthorized use, sale, transfer, or possession of alcohol, drugs, controlled substances and/or “mood altering” substances, (except the possession or use of prescribed medication, verifiable by a current, properly issued prescription) during work hours (including meals and rest periods), on Company premises, in Company vehicles, or in personal vehicles while conducting Company business is prohibited.

Section 3. Employees may be scheduled for random alcohol and drug testing as directed or required. Employees will also be tested for alcohol and drug use upon reasonable probable cause, and work related accidents or injuries.

Section 4. The Company considers any violation of drug use, possession, distribution, or sale of drugs, drug paraphernalia a serious matter that will result in immediate termination of the employee regardless if it is identified on Company premises, through random sampling on or off work. The Company also considers any violation of alcohol on Company premises or in a Company Vehicle, a serious issue that will warrant immediate termination of the employee.

Section 5. Pre-employment drug testing is a condition of employment.

ARTICLE 9

NO STRIKE/NO LOCKOUT

Section 1. For the duration of this Agreement, the Procedures described herein, for settlement of grievances will serve as the means for peaceful settlement of all disputes that may arise between the parties. During the life of the Agreement, no work stoppages, slow downs, or strikes (including sympathy strikes) shall be caused or sanctioned by the Union. This clause also specifically prohibits any employee from refusing to report to work or refusing to work due to the existence of a picket line.

Section 2. In the event of any violation of Section 1 of this Article, the Union, within Forty-eight (48) hours following written notice from the Company, will take all reasonable steps required to bring an end to such action and advise the employees to return to work.

The Union shall be limited to the performance of the actions as stated above and upon compliance the Union and its officers, agents and non-striking members shall have no further liability during the term of the Agreement or thereafter for any damages suffered by the Company arising from or out of any stoppage or strike.

Section 3. If the reasonable steps attempted in Section 2 do not return the striking employee(s) to work then the employee(s) may be subjected to immediate discharge or other disciplinary action by the Company. Any such disciplinary action shall be subject to the grievance and arbitration procedures of this Agreement.

Section 4. The Company agrees that for the duration of the Agreement there shall be no effort to lockout or in any way deny access or work for employees covered by the Agreement.

ARTICLE 10

SECURITY

Section 1. The Union recognizes that the Company may now have, or may incur in the future, obligations with respect to the security of information and materials under contract with the Government.

Section 2. The Union agrees that nothing contained in this Agreement shall place the Company in violation of security agreements with the Government.

Section 3. It is understood by and between the parties hereto that, as a necessary condition of continued employment, employees shall be subject to investigation for security clearance or national agency check and/or unescorted entry authorization under regulations prescribed by the Department of Defense, or any other agencies of the United States Government on governmental work, and that denial or withdrawal of such clearance and/or unescorted entry authorization by such governmental agency shall be cause for release from the Company due to inability to meet job requirements. All security clearance and background checks will be at the expense of the Company.

Section 4. In the event an employee’s security clearance is found by appeal to have been incorrectly revoked, the Company shall reinstate the seniority of the employee and reinstate them to their previously held occupational title.

ARTICLE 11

NEW JOBS

Section 1. When new jobs are required that cannot be properly encompassed within an existing job classification, the Company will notify the Union in writing of the requirements. The Union will have thirty (30) days from the date of receipt of notice in which to request collective bargaining regarding the rate of pay and benefits. If necessary, this matter is subject to the grievance procedure up to and including arbitration.

Section 2. When a new job is required, all bargaining unit employees, inclusive of laid-off employees, will be notified and given the opportunity to apply for the position before new hiring consideration.

ARTICLE 12

PROMOTIONS

Section 1. The Company will upgrade employees to any open position(s) from within the bargaining unit. If two (2) or more employees are eligible and express an interest, seniority based on minimal qualifications will be the determining factor. If no employee within the bargaining unit expresses interest in the the position, the Company may use other means of filling such vacancies and will notify the Union of such intent.

Section 2. RCO Waivers and Exemptions. It is understood by the parties to this agreement that individuals seeking RCO waivers or exemptions under the AFI’s will be responsible to submit their own Electronic Staff Summary Sheet (ESSS) to the Range Operating Authority. Requests for Waivers and Exemptions will not be tied to the seven (7) day notice contained in ARTICLE 12 Promotions Section 2. A courtesy copy may be submitted to the Company Site Manager.

Section 3. The Company will notify all bargaining unit employees of any openings to be filled by posting such openings on Company bulletin boards at least seven (7) calendar days prior to filling such vacancies. The posting will contain the position(s) open and the method that employees may apply for such openings. The Company will notify all employees not present when openings occur in order for those employees not to be bypassed for promotion consideration.

Section 4. Upgraded employees will be considered on probation in the new position for thirty

(30) days after upgrading. During this period, the Company may, at its discretion, reclassify the employee(s) to their former occupations if it is determined by the Company that the employee(s) are not meeting the minimum qualifications for that job classification.

Section 5. The Company may temporarily upgrade an employee to a higher paid classification.

The employee shall receive the pay rate for the classification of work that they are performing.

Promotion and Seniority rules apply to all promotions to a higher paid classification. Temporary Promotions shall not be used to circumvent promotion to any regularly permanent position and shall not be used in excess of thirty (30) days.

ARTICLE 13

SENIORITY

Section 1. Probationary Period. New employees shall be on probation for ninety (90) calendar days from the initial hire date during which time they may be discharged at the sole discretion of the Company. If retained after the probationary period, their names shall be placed on the Seniority List as of their date of hire.

Section 2. Definitions. Seniority is defined as including the whole span of service with the present contractor, or successor, and with predecessor contractors, in the performance of the PTR Program.

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 workers compensation injury or illness for the duration of the injury or illness.

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 purposes of lay off, recall and promotion, i.e., if two employees have the same seniority date, 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. Seniority List. A seniority list for the employees at each location will be maintained by the Company and will be made available to the Union upon request. The Company shall also furnish a list to the Union reflecting new hires or rehires, their classification, their date of hire, and termination or layoff dates. Employees transferring from other sites within the company retain their original seniority date for benefit and vacation purposes only.

Section 4. Personnel Actions. Seniority will be the governing factor in all layoffs; recalls, promotions decisions and personnel actions so long as the minimal qualifications to perform the work are met.

Section 5. Employee Transfers. An employee who has established seniority rights within the bargaining unit and who is transferred to a position not covered by this Agreement shall retain seniority rights for a period of ninety (90) days. After which time their seniority shall be frozen and if returned to the unit they shall have their previous seniority reinstated.

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 or work in classifications to which they have a displacement right is available, and so long as the official’s duties would permit such seniority preference under existing law.

ARTICLE 14

LAYOFFS, RECALL AND REALIGNMENTS

Section 1. Layoff Notice. When it becomes necessary to reduce the number of employees at the work site employees will be laid off in accordance with their seniority. Employees will be entitled to bump and retreat rights. The Company will notify the union and affected employees as soon as the facts are known to the Company of any potential layoffs.

Bump and Retreat means within a Job classification (ET) , or a job classification series (i.e. ET I, ET II, ET III) directly related or job qualifications wherein an employee is capable of performing to the minimum qualifications.

Section 2. Recall. The Company shall recall employees by seniority so long as they meet the minimal requirements of the work to be preformed in accordance with their seniority within their shop, and labor classification. If attempts to contact the employee via telephone, in the presence of a Union official, are unsuccessful the Company will send recall notices by certified mail to the employee’s last known official address. The notice will instruct laid off employees when to report to work. If the employee does not report to work within ten (10) working days, the employee will be deemed to have abandoned their job and will be removed from the Seniority List. The Company agrees that an Employee may request a later return to work date for extenuating circumstances.

Section 3. Severance. In the event that a successor contractor assumes the contract between themselves and the Customer, the Company will provide all employees not offered employment with either AHNTECH (in the Dare County vicinity) or the successor contractor at the location of the Agreement a severance package as specified below:

Years of Company Seniority Severance Pay from 91 days to completion of year 1 80 hours From start of year 2 to completion of year 5 120 hours From the start of year 6 160 hours

Employee declining a job offer with either AHNTECH or successor contractor at the Dare County Bombing Range DCBR will not receive any severance pay.

Section 4. Realignment. All employees that are being realigned or bumped will at a minimum retain their current rate or the higher rate of pay for the new position. That pay rate will be frozen for a period 60 days and will not be subject to annual increases until such time as the realignment rate meets and/or exceeds their original pay rate. The employee however, will still receive annual Health and Welfare Benefit increases.

ARTICLE 15

DISCIPLINE

Section 1. The Company will only initiate disciplinary action for just and sufficient cause. Any penalty imposed will be consistent with proven offenses, and the principles of progressive discipline will be adhered to, as set forth below.

Section 2. With the exception of suspensions, there will be a nine (9) months reckoning period for any disciplinary action taken, after which all reference to the matter will be removed from the employee’s record, provided the employee has not committed any infraction of the same rule for which they were disciplined during the reckoning period. Suspensions will remain in the employee’s record for twelve (12) months at which time removal will be made under the same conditions as stated for other disciplinary actions.

Section 3. For infractions of Company rules, such as, but not limited to, absenteeism, tardiness, and poor work performance, a four (4) step procedure will be followed of oral reprimand, written reprimand, suspension and finally discharge. However, at the final step of the procedure the Company may elect to enforce another suspension rather than a discharge without prejudice to any other incident.

Section 4. In cases involving serious misconduct, such as, but not limited to; major violation of law, aggravated violence, theft, or drug/alcohol abuse, and the supervisor may suspend the employee immediately and, if appropriate, recommend termination of the employee. An investigation of the incidents leading up to the suspension will be conducted to determine what further action, if any, should be taken. Employees whose suspension from work is upheld will not receive or accrue any employee benefits during the suspension.

Section 5. Employee(s) will have the right to Union representation during any interview that may be disciplinary in nature or lead to any discipline. Employee(s) will be notified of these rights prior to any such interview taking place. The Steward will be notified and be given the opportunity to attend such interviews.

ARTICLE 16

GRIEVANCE PROCEDURE

Section 1. Grievances or complaints arising between the Company and its employees subject to this Agreement, or the Company and the Union, with respect to the interpretation or application of any of the terms of this Agreement, will be settled according to the following procedure.

Section 2. Employee Grievance: All grievances beyond step 1 below, involving employee claims shall be in writing on grievance forms provided by the Union and shall be signed by all employees claiming rights there under. In an effort to adjust employee grievances by mutual agreement, they shall be presented in the following order and within the following time limits;

Step 1: Written: Within ten (10)working days following the event or discovery of the event giving rise to the grievance, 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 steward and taken up with the Site Manager or designee. A grievance meeting will be scheduled within (5) working days. Within five (5) working days following the grievance meeting, the Site Manager will reply in writing. If the written reply is not satisfactory then:

Step 2: Appeal to the Company: Within ten (10) working days of step 1 reply, the grievance may be moved to Step 2 by written appeal to the PTR Program Manager or designee. The PTR Program Manger or designee, and the Business Representative or designee of the Union, will meet within ten (10) working days after receipt of the grievance into a third step. A written reply from the PTR Program Manager or designee will be given to the Union within Ten (10) working days after the meeting.

If no agreement has been reached after the Step 2 meeting, the Union may submit the grievance or dispute to arbitration as covered in the Arbitration Procedure; Article 17.

Section 3. Union Grievance: Processing of grievances, which the Union may have against the Company, will begin at Step 2 Section 2 of this Article and will be limited to matters dealing with the interpretation or application of terms of this agreement. Such grievance shall be submitted in writing to the designated representative of the Company.

The grievance shall be in writing and signed by the designated representative of the Union and submitted within fifteen (15) working days from the date of the event or discovery of event giving rise to such grievance. The PTR Program Manager or designee, and the Business Representative or designee of the Union, will meet within ten (10) working days after receipt of the grievance into a third step. A written reply from the Company PTR Program Manager or designee will be given to the Union within ten (10) working days after the meeting. If no agreement has been reached the Union may submit the grievance or dispute to arbitration as covered in the “Arbitration Procedure” Article 17.

Section 4. A settlement made with respect to any grievance in the first or second step shall apply to that grievance only and shall not become a binding precedent in the case of other grievances nor a precedent, which shall bind the parties as an interpretation of the Agreement.

All settlements must be consistent with the terms and conditions of the Agreement.

Section 5. Any aggrieved employee and Union representative will have the right to be present at any stage of the grievance procedure in which the grievance is being considered.

Section 6. The Union or its authorized representative will have the right to examine time sheets and other records pertaining to the computation of compensation of any individual or individuals whose pay is in dispute or other records pertaining to a specific grievance. Compensation will be paid for reasonable time spent discussing or investigating grievances during normal work schedules.

Section 7. It is understood that the time limits specified herein may be extended by mutual agreement of the parties hereto.

Section 8. Nothing in this Article precludes the Union from filing, a general grievance on behalf of an employee(s) in the event of unusual or unforeseen circumstances.

ARTICLE 17

ARBITRATION PROCEDURE

Section 1. The Union shall give written notice to the Program Manager setting forth the matter to be arbitrated. If said notice is not served within a thirty (30) calendar day period following the Step 3 decision of the “Grievance Procedure” Article 16, it shall be deemed that the grievance has been satisfactorily adjusted and the right to arbitrate waived.

Section 2. In an effort to solve grievances short of using arbitration, and upon agreement between the company and the Union, grievance mediation using mediators provided by Federal Mediation and Conciliation Service will be attempted. Grievance mediation will not impact any time limits imposed by the arbitration procedure of this article. If the grievance cannot be successfully mediated, the parties will proceed to arbitration.

No bargaining unit employees participating in the mediation process will lose pay. This excludes suspended or terminated employees subject to final resolution.

Section 3. In the event the Union submits a grievance to arbitration and the parties cannot mutually agree to the selection of an arbiter, a panel of seven (7) arbitrators will be requested from the Federal Mediation and Conciliation Service. The parties will meet within fifteen (15) days from receipt of such list in order to strike for arbitrator. Lot will determine the right to first strike a name; the other party shall then strike a name. This procedure shall continue alternately until one (1) name remains.

Section 4. The decision of the arbitrator shall be final and binding on all parties. However, the arbitrator will not have jurisdiction or authority to add to, subtract from, modify or in any way change the provisions of this agreement. The expense and fees of the arbitration will be borne equally by both parties.

ARTICLE 18

HOURS OF WORK

Section 1. The normal workweek for will consist of five (5) consecutive eight (8) hour days or four (4) consecutive ten (10) hour days. Employees will be scheduled a minimum of forty (40) hours per workweek. Workweek will be from 12:01 AM Saturday through midnight the following Friday.

A.) A daily schedule may begin on one calendar day and end on another.

B.) Determination of starting time and hours of work shall be made by the

Company based on business requirements. For scheduled shift rotation, a one-week notice will be provided. The starting time of the various shifts will normally be as follows:

First shift: Beginning at or after 6:00 AM but before 8:00 AM.

Second Shift: Beginning at or after 10:00 AM but before 4:00 pm

C.) The Company agrees to follow its historical practice of paid rest break and meal periods.

D.) Schedules will not be altered in order to evade the payment of overtime.

E.) RCO and Computer operator days off will be consecutive and in conjunction with a weekend.

Section 2: The Union agrees that from time to time the shift start times may need to be modified for a temporary basis in order to accommodate the Customers requirements and health and safety of the employees. The Company shall notify Employees and their Steward as to such need as soon as possible but in no case less than twenty-four 24 hours. If an employee has less than twenty-four 24 hours notice they will receive one an a half (1 ½) times normal pay until the twenty-four (24) hour notice has been complied with.

Section 3. There will be a minimum of ten (10) hours between the end of an employee’s work shift and the start an employee’s next work shift. This policy may be overridden if required to accommodate high priority or time sensitive Range schedules. In the event this turnaround is overridden, employees will be paid at one and one half (1&1/2) times their regular straight time rate for hours worked until the ten (10) hours is reached.

ARTICLE 19

OVERTIME

Section 1. Overtime at one and one-half (1 ½) times the employees pay rate will be paid for all hours paid in excess of forty (40) hours in a workweek, and all non-scheduled hours worked on Saturdays and Sundays.

Work on holidays will be paid at the straight pay rate in addition to the holiday pay.

Overtime over forty (40) hours in a workweek: Employees may choose to take either payment or compensation time at the applicable rate for all hours worked in excess of forty (40) hours in a workweek. If the employee chooses compensation time for hours worked in excess of forty (40) hours in a workweek, the employee will be credited with one and one-half (1 ½) hours for each hour worked in excess of forty (40) hours in a workweek. Accrued Compensation Time shall be used within sixty (60) days. Comp time which has not been used by day 60 will be paid out in the pay period following the 60th day.

Section 2. There will be no duplication or pyramiding of overtime payments.

Section 3. Available overtime will be rotated and equalized among qualified volunteers in order of seniority.

Section 4. An employee who is scheduled to work an overtime day and reports to work as scheduled and there is no longer work available, the employee will be compensated with a minimum of four (4) hours work or overtime pay.

Section 5. Overtime requests will be posted on official company bulletin boards not later than the beginning of the shift the day preceding the overtime day except for unforeseen emergencies or circumstances.

If employees are required to work the overtime, the Company will first ask for volunteers starting with the most senior qualified employees. If unable to get enough volunteers, the least senior employee shall work the required overtime.

Once the least senior qualified employee has been drafted for overtime, they will not be drafted for overtime again until each successive senior qualified employee has been drafted.

Employees may be excused from the draft procedure for bona fide reasons; however, no employee will be consistently excused from such overtime.

ARTICLE 20

LEAVE OF ABSENCE

Section 1. Personal Leave. The Company may at its sole discretion approve a leave of absence without pay up to forty five (45) calendar days for personal reasons. The forty five (45) day limit may be extended by agreement of the Company at its sole discretion. Such leave must be requested in writing and approved by the Site Manager through the employee’s supervisor. Said request must also state the reason for the unpaid leave. Employees must request such leave at least five (5) calendar days prior to the date the leave would commence, except in cases of emergency.

Employees may exercise their rights under the Family Medical Leave Act in which case the forty-five (45) day limit may be waived.

Section 2. Failure to return to work from Leave of Absence. Failure to return from leave of absence on the first scheduled work day following the expiration date of said leave without prior approval, may result in disciplinary action being imposed by the Company.

Section 3. Military Leave. Annual military leave of absence for training purposes or activation for a state emergency will be granted to the employees in the U.S. Military Reserve, National Guard or organized military reserve units. Upon request, eligible employees will be paid the difference between their military pay and their company pay rate, inclusive of all benefits. The employee(s) must furnish the Company a copy of their military orders at the time the leave is requested and a copy of the Leave and Earnings Statement to support the difference in pay.

Payment of this differential will not exceed 15 working days for Annual military leave and 10 working days for cases of state of emergencies in a calendar year.

In the Event that a mobilization of an employee’s unit is enacted, or a training regiment is required, their seniority will continue to accrue. Upon their release from such mobilization the employee will be reinstated to their previously held occupation and title.

Section 4 Jury Duty. An employee who has been called to jury duty or jury service will be paid their regular base rate, inclusive of benefits, for the time lost from regularly scheduled hours of work because of jury duty for a maximum of twenty working days per calendar year. Notice of jury duty must be given to the Company upon receipt of a jury summons, and proof of such service must be submitted to the satisfaction of the Company before this Article shall apply.

Employees required to work shift work will be considered as assigned to day shift for the duration of the jury duty and will receive payment as outlined above.

Section 5. Union Business. Bargaining unit employees that are required to travel for official Union business or attend official Union functions will be granted a leave of absence for performing such business. While on such leave, employees will not lose any benefit of seniority.

Such request will not be unreasonably withheld.

Employees shall submit such request for leave accompanied by official Union communication authorizing them to travel or act in such capacity. These requests shall normally be made at least five (5) calendar days in advance of such requirement.

Stewards will have their schedule modified, when requested, in order to attend a minimum of twelve (12) Local Lodge meetings per calendar year.

Section 6. Official Time. The Company agrees to provide forty-eight (48) hours of paid time off to bargaining unit employees designated as representatives for official Union Business during the term of this agreement. Such leave requests will be accompanied by official notice authorizing such employees to act in this capacity.

Section 7. Elected Union Official Leaves of Absence. Upon request, an employee elected to an office of Local Lodge 1859, District 10, International Association of Machinists and Aerospace Workers, will be granted a leave of absence for such Union service not to exceed 3 years. Such leaves may be renewed with Company approval. An employee returning to work from such leave will be returned to the job classification and labor grade previously held provided qualifications are still current, or to a similar job classification, subject to this Agreement. Employee’s will be allowed reasonable time to become re-qualified.

ARTICLE 21

HOLIDAYS

Section 1. The following ten (10) Holidays will be provided with pay:

New Years Day Martin Luther King Jr.’s Birthday Presidents’ Day Memorial Day Independence Day Labor Day Columbus Day Veterans’ Day Thanksgiving Day Christmas Day

Section 2. Any holiday falling on a Saturday or Sunday will be observed on the day set by the Federal Government.

Section 3. At the discretion of the Company, employees will be allowed to “float” a holiday to another day in the same calendar year.

Section 4. In addition to the holidays listed above, the Company will observe any days declared as a legitimate government down day by Congress, The President or any Department of Defense Authority provided authorization is received from the PTR Contracting Officer. Such a day’s observance will be handled the same as a Range Closure Day. In the event that the Federal Government and its authorized departments establishes any new recurring holiday which is incorporated into the PTR contract, it will be conveyed to the employees and be incorporated into this Agreement.

Section 5. Holiday pay will be consistent with regularly scheduled hours pay at the employees’ straight time base rate, inclusive of all benefits.

ARTICLE 22

PERSONAL TIME OFF

Personal Time Off will consist of vacation time and sick leave as specified below:

Section 1. The vacation year for eligibility and service credit will be from employee’s Company benefit date to Company benefit date. Upon ratification of this Agreement, for purpose of application of this section the seniority date in Memorandum of Agreement Number 1 will be used as the Company Benefit Date. Paid vacation will be awarded as follows:

A.) From the start of employment an employee will be awarded 104 hours of vacation annually.

B.) An employee with five (5) years of service will be awarded 144 hours of vacation annually.

C.) An employee with ten (10) years of service will be awarded 184 hours of vacation annually.

D.) An employee with fifteen (15) years of service will be awarded 224 hours of vacation annually.

E.) An employee with twenty (20) years of service will be awarded 8 hours each consecutive year onto their normal leave.

F.) Employees will be allowed to carry over from one benefit year to the next 80 unused hours of vacation. Vacation taken will be paid at the employee’s current rate of pay, inclusive of benefits, at the time the vacation is taken. The employee may choose to cash in the hours in full, inclusive of benefits, rather than carry over at the rate of pay.

G.) Vacation time will be accrued and vested from the employee’s benefit date at a rate of 1/26 of their entitlement each pay period and reflect the annual rate for each employee

H.) In the event of a change of contractors AHNTECH will be responsible for the payout of unused vacation inclusive of all benefits.

Section 2. Vacation requests shall be made in writing to an employee’s supervisor normally seven (7) calendar days prior to the vacation start date, except for extenuating circumstances in which the seven (7) day requirement will be waived. The Company reserves the right to approve or deny vacation requests based on business operations. A copy of all vacation requests will be returned, approved and/or denied, to the employee for retention. Once an employee’s vacation is approved it will not be altered by either party without mutual consent. Vacation may be used in increments of no less than one-half (½) hour unless approved by management.

Section 3: Sick Leave. Effective 1 Oct 11, each employee will be allocated 42 hours of sick leave per year. If more than 16 consecutive hours of sick leave is used, a doctor’s note will be required. Sick leave will be deposited into the employees account on Oct 1 each year Leave will be accumulated and carried forward indefinitely to a maximum of 200 hours. Sick leave balances may not be cashed out.

ARTICLE 23

BEREAVEMENT

Section 1. In the event of a death of an employee’s immediate family member, the employee will be granted up to three (3) days bereavement leave with pay, inclusive of all benefits, and will be granted further leave of choice for extenuating circumstances in accordance with the schedule below;

A.) Three (3) workdays in the event of death of a member of the employee’s

“immediate family”.

B.) If an employee must attend services, which include travel greater than four hundred (400) miles, two (2) additional days or a total of five (5) days will be granted.

Section 2. “Immediate Family” will be considered as follows: Spouse, Children, Stepchildren, Brother, Sister, Father, Mother, Grandfather, Grandmother, uncle, aunt, nephew, niece, grandchildren, father-in-law, mother-in-law, sister-in law, brother-in-law, daughter-in-law, son-in-law, and legal guardians.

ARTICLE 24

WAGE RATE DETERMINATION

Section 1. The wage rates listed below will be effective for the term of this Agreement and apply to all Bargaining Unit employees. Employees will be compensated at the wage rate for the highest classification of work being performed and at no time will they be compensated at any rate below the classification that they are normally assigned work. This straight time hourly rate will be increased annually as designated below. These increases will be effective on the dates indicated. In order to meet classification demands the QCI is exempt from the scheduling requirements of Article 18 Section 1 by self direction.

Effective Classification Current 10-01-11

Electronics Tech III $32.47 $32.79 Electronics Tech II $28.81 $29.10 Electronics Tech I $25.12 $25.37 Range Control Officer $30.10 $30.40 Computer Operator II $20.09 $20.29 Heavy Equipment Operator $20.23 $20.43 Water Treatment Operator $22.78 $23.00 HVAC Technician $23.90 $24.14 Electrician $27.43 $27.70 Quality Control Inspector $27.58 $27.85

Classification descriptions will follow those established by the U.S. Department of Labor for the Service Contract Act.

An employee’s classification will not be changed without mutual consent of the parties so long as there are same/similar tasks available to be performed at the site.

Section 2. Shift Work. Employees who work between the hours of 6:00 PM and 6:00 AM Monday through Friday, or 12:01 AM Saturday through 11:59 PM Sunday will receive a shift differential pay of One Dollar ($1.00) per hour for all hours worked.

Section 3. Closures Employees will be compensated for lost time in the event of a temporary base closure by the Company or customer for inclement weather, security reasons or the command post determines closure.

Section 4. Call Back Pay. If an Employee has left the worksite and is called back for work and returns to the worksite, they will receive a minimum of four (4) hours pay for returning to work.

Section 5. Short Term Reclassification. If an employee performs a duty outside their normal job classification they will be paid the higher wage rate in hourly increments for the first six (6) hours. If an employee performs said duty for more than six (6) hours in a single shift they will be paid at the higher of the two rates for their entire scheduled shift.

Section 6 Hazardous Pay: Employees will be paid a hazardous pay differential of 4% of the base wage for each hour of work in the following situations:

a. Working on target pads where ordinance not certified as clean are located

b. Handling, loading, or transporting of Smokey Sams.

ARTICLE 25

HEALTH AND WELFARE BENEFITS

Section 1. Health and Welfare Benefit Rate. The Company will pay each employee the amount specified below per hour paid for the purchase of Health and Welfare Benefits.

Current 10/01/11 $6.22 $6.50

Section 2. Health and Welfare Benefit Coverage The Company will make available Health and Welfare benefits to all bargaining unit employees desiring to accept said benefits. Employees may retain any coverage they maintain at the time of ratification. Upon ratification of this agreement, employees may choose from those plans, which are made available by the Company.

Health and Welfare Benefits will include Life, accident, and health insurances, and long/short term disability plans. In the event an employee opts to participate in any plan, the cost of coverage will be withheld via payroll deduction. In the event that an employee elects to take no coverage the employee will be paid the Health and Welfare Benefit Rate for all hours paid. In the event an employee elects to accept coverage and the coverage cost is less then the cash value of the Health and Welfare Benefit as defined in Section 1, the difference will be paid to the employee.

Section 3. During the term of this agreement the Union may present to the Company an alternative for consideration concerning employee health and welfare benefits which is cost neutral. The Company and the Union will meet to discuss possible alternatives to the current employee health and welfare benefits and will amend the contract if the costs are neutral and the majority of the employees approve the change.

Section 4. PENSIONS

A. The Employer shall contribute to the I.A.M. National Pension Fund, National Pension Plan for each day/hour or portion thereof for which employees in all job classifications covered by this Agreement are entitled to receive pay under this Agreement to a maximum of forty (40) hours per week for each employee as follows:

$.80 per hour

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

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 upon the completion of the employee's probationary period, but no later than ninety (90) calendar days after date of hire

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.

EMPLOYER'S IRS IDENTIFICATION NO. 33 01022321

Address 3333 Camino Del Rio South, Suite120 San Diego, CA 92108

ARTICLE 26

SAVINGS

Section 1. The Company’s master Savings Plan (401K) will be made available to those eligible employees covered by this agreement in accordance with the provisions of the plan

A.) Employees may elect…