CBA.pdf

COLLECTIVE BARGAINING

AGREEMENT

Between

Crew Training International, Inc. (CTI) and

The Offutt Aircrew Training Employees Association (OATEA)

Effective September 1, 2013

RC/OC/WC -135/E4B CAT/CWD Contract Offutt AFB, NE

TABLE OF CONTENTS

TITLE

Preamble Article 1 - Recognition

Section 1.1 - Recognition and Bargaining Unit Section 1.2 - Association Rights

Article 2 -Management Rights Section 2 .1 - Responsibilities of Company Section 2 .2 - Waiver of Rights

Article 3- Association Business During Normal Operations Article 4 - Association President Article 5 - Grievance Procedures

Section 5.1 - Definition Section 5.2 - Procedures Section 5.3 - Cases of Suspension or Discharge Section 5.4 - Waiver of Time Limits Section 5.5 - Grievance Content

Article 6 - Arbitration Procedures Section 6.1 - Notice Section 6.2 - Arbitrator Selection Section 6.3 - Arbitrator 's Authority Section 6.4 - Arbitrator's Decision Section 6.5 - Arbitrator's Fees and Costs

Article 7- No Strike/Lockout Section 7.1 -Strikes Section 7.2 - Lockouts

Article 8 - Bulletin Board Article 9- Bargaining Unit Work Article 10- Part-time Employees

Section 10.1 - Definition Section 10.2 - Compensation Section I 0.3 - Reporting Pay Section I 0.4 - Benefits

Article 11 - Dues Check-off Section 11 .1 - Employee Authorization and Deductions Section 11.2 - Payment of Dues to the Association Section 11 .3 - Indemnification

Article 12 - Seniority Section 12.1 - Definitions Section 12.2 - Personnel Actions Section 12.3 - Loss of Seniority Section 12.4 - Seniority Termination Notification

Article 13 - Reduction in Force Section 13.1 - Reduction in Force Section 13.2 - Recall from Layoff Section 13.3 - Recall Procedures Section 13.4 - Part-time Employment Section 13.5 - Several Pay Section 13.6 - Years of Service Section 13 .7 - Affect of Contract Turnover Section 13 .8 - Employee Eligibility

PAGE

5-6 6-8

10-11 10 - 11

11-12

12-13

Section 13.9 - Terminated Employees Section 13 . I 0 - Payment Calculations

Article 14- Hours of Work Section 14.1 - Workweek Section 14.2 - Hours of Operation

Article 15 - Classification and Pay Section 15.1 - Temporary Assignments Section 15.2 - Pay Frequency and Method

Article 16 - Compensation Section 16. 1 - Rates of Pay Section 16.2 - Definition Section 16.3 - Lead Pay Section 16.4g- Reporting Pay

Article 17 - Holidays Section 17 .I - Holidays Section 17.2 - Holiday Designation Section 17.3 - Wing Down Days

Article 18 - Vacation Section 18.1 - Qualifying Period Section 18.2 - Vacation Hours Section 18.3- New Employees Section 18.4 - Carryover Section 18.5 - Payment in Lieu of Vacation Sect ion 18.6 - Requesting Vacation Section 18.7 - Vacation Payout Section 18.8 -Leave Without Pay Section 18.9 - Leave of Absence Section 18.10- Donation of Leave to another Employee

Article 19- Bereavement Leave Section 19 .I - Notice Section 19.2 - Criteria for Five (5) Days of Leave Sect ion 19.3 - Criteria for Three (3 ) Days of Leave

Article 20 - Health and Welfare Benefits Article 21 - 401(k) Plan

Section 2 1.1 - Notice Section 2 1.2 - Tier I Employer Contributions Section 21.3 - Tier 2 Employer Contributions

Article 22 - Leaves of Absence Section 22.1 - Non-Medical Leave Section 22.2 - FMLA Section 22.3- Seniority Rights Section 22.4 - Extension of a Leave of Absence Section 22.5 - Legal Compliance

Article 23 -Education/Tuition Plan Section 23. 1 - Education Assistance Section 23.2 - Minimum Grade Requirement Section 23.3 - Payback Provision Section 23 .4 - Contract Turnover

Article 24 -Substance Abuse Policy Section 24. 1 - Drug and Alcohol Free Workplace Section 24.2 - Employee Drug Testing Program Section 24.3 - Pre-Employment Drug Testing

PAGE

13-14 13-14

15-16 15-16

17-18

Article 25 -New Jobs Section 25.1 - Notification Section 25 .2 - Job Qualifications

Article 26 - Effect of Law Section 26.1 - Invalidation of a CBA Provision Section 26.2 - Clause Replacement

Article 27 - Successor and Assigns Article 28 - Non-Discrimination Article 29 - Insurance Plans

Section 29.1 - Benefit Participation Section 29.2 - Medical Insurance

Article 30 - Promotions Section 30.1 - Notice Section 30.2 - Open Positions Section 30.3 - Probationary Period

Article 31- Security Section 31.1 - Association Recognition Section 31.2 - Security Clearances Section 31.3 - Release of Liability Section 31.4 - Seniority Reinstatement Section 31 .5 - Status of Employee A waiting Appeal

Article 32 - Duration and Termination Section 32.1 - Expiration Date Section 32.2 - Notice to Modify or Terminate Automatic Renewal Section 32.3 - Waiver of Bargaining During Contract Term

Article 33 - Changes to the CTI Employee Manual Employee Benefits Summary

PAGE

23-29

Collective Bargaining Agreement Effective September 1, 2013

AGREEMENT

This Agreement made and entered into this 6th day of July 2013, to become effective September 1, 2013, by and between CTI. Inc, (hereinafter referred to as Company) and the Offutt Aircrew Training Employees Association, (hereinafter referred to as the Association).

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, hours and working conditions of the Pilot Instructors, Instructors and Technical Employees covered hereby, as well as to the rights of the Association and the Company, and to provide a peaceful means for the settlement of any disputes that may arise with respect to the interpretation or application of their understandings and agreements as set forth herein.

For purposes of simplicity, the masculine gender is used throughout this Agreement although it is understood that all references to gender include both sexes.

ARTICLE 1

RECOGNITION

Section 1.1- Recognition and Bargaining Unit. The Company hereby recognizes the Association as the sole and exclusive bargaining representative of the employees at Offutt AFB who perform work for the Company under the RC/OC/WC-135 & E-4B CAT/CWD contract, excluding the Site Manager and the Courseware Manager for the purpose of collective bargaining with respect to wages, hours of work and other conditions of employment of employees in the bargaining unit as herein defined.

Section 1.2- Association Rights. The specific terms of this contract shall be the sole source of any rights that may be asserted by the Association against the Company.

ARTICLE2

MANAGEMENT RIGHTS

Section 2.1 -Responsibilities of Company. Except as modified by a specific provision of this Agreement, the Company reserves and retains all of its normal and inherent rights with respect to the management of the business, including (without limiting the generality of the foregoing) its right to establish or continue policies, practices, and procedures for the conduct of the business;

to select and direct the working force, to establish, eliminate, change or combine work schedules and work assignments, which are not in conflict with the terms of this Agreement; to transfer, promote or demote employees, or to lay off, terminate or otherwise relieve employees from duty for lack of work or other legitimate reasons; to make and enforce reasonable rules for the maintenance of discipline; to suspend, discharge or otherwise discipline employees for just cause; to establish the methods, processes and means of providing services; and otherwise to take such measures as management may determine to be necessary to the orderly, efficient or economical operation of the business. It is understood and agreed that any of the powers and authority which the Company had prior to the signing of this Agreement are retained by the Company except those specifically modified, delegated or granted by this Agreement.

Section 2.2 -Waiver of Rights. The Company's failure to exercise any right, prerogative, or function hereby reserved to it, or the Company's exercise of any such right, prerogative, or function in a particular way, shall not be considered a waiver of the Company's right to exercise such right, prerogative, or function or preclude it from exercising the same in some other way not in conflict with the express provisions of the Agreement.

ARTICLE3

ASSOCIATION BUSINESS

DURING NORMAL OPERATIONS

The Association will be allowed to conduct Association Business during normal operations on a limited basis with approval from the Site Manager. Prior to conducting any Association business during normal operations, the Association will notify the Site Manager or his/her designee as to the purpose of such business and the length of time required to conduct such business. Association business shall not unduly interfere with production or work being performed.

ARTICLE 4

ASSOCIATION PRESIDENT

The Company shall recognize one (1) employee to act as Association President. The President shall be duly selected by the Association. The Association will notify the Company of the elected President. When elections for President are held, the Company, with concurrence of the Air Force, will allow the election on Company used office space. Elections for President held in Company used office space shall take place outside of normal work hours and shall not interfere with the operations ofthe Company. The Company shall recognize one (1) employee designated by the Association as a Vice President. The Vice President shall act in the place of the President during his absence.

ARTICLE 5

GRIEVANCE PROCEDURE

Section 5.1- Definition. For purposes of this Agreement, a grievance is defined as a dispute between the Company and the Association or between the Company and any non-probationary bargaining unit employee covered hereby, with respect to the alleged violation of a specific provision of this Agreement during the term hereof, and includes disputes over whether an employee has been disciplined for just cause. Grievances as herein defined shall be processed in keeping with the following procedure, which shall be the exclusive remedy for alleged violations of this Agreement by the Company:

Section 5.2 - Procedures.

Section 5.2(a)- Step 1. Both parties encourage the verbal resolution of disputes as quickly as possible. An aggrieved employee, with the Association President shall discuss the dispute with the Site Manager or, in his absence, with the Vice President of Human Resources. If the grievance has not been satisfactorily resolved within three (3) working days following its presentation to the Site Manager, then;

Section 5.2(b) - Step 2. The grievance may be submitted in writing on a form mutually agreed to by the Company and the Association, containing information set out in Section

5.5. If filed by the Association or a bargaining unit employee, a grievance may be submitted to the Site Manager, within five (5) working days following the occurrence, or the constructive knowledge thereof, which caused the grievance. However, no grievance may be submitted later than thirty (30) days after its occurrence. The Site Manager shall give his written answer to the grievance within three (3) working days after its submission to him in Step 2. If filed by the Company, a grievance may be submitted to the President of the Association by hand carrying or mailing the grievance by certified mail within five (5) working days following the occurrence, or the constructive knowledge thereof, which caused the grievance. However, no grievance may be submitted later than thirty (30) days after its occurrence. The Association President shall give his written answer to the grievance within three (3) working days after its submission to him in Step 2. Either side may request a meeting to discuss the details of the grievance and attempt to reach a resolution prior to the issuance of the written answer.

Section 5.2(c)- Step 3. The Association or the Company may appeal the grievance to arbitration by making a written request for such action not more than twenty (20) working days following the written answer of the Site Manager or the Association Representative, as the case may be in Step 2, or lack thereof.

Section 5.3. - Cases of Suspension or Discharge. The parties understand and agree that the time limits set forth in the various steps of the grievance procedure are essential to the prompt resolution ofthe grievances. Accordingly, if such time limits are not abided by in filing a written grievance in Step 2 or in requesting arbitration in Step 3, except in those instances where the parties mutually agree in writing to extend such time limits, the grievance shall be waived. In cases involving suspension or discharge, Step 1 will be waived and the matter taken up with the Site Manager within five (5) working days following such action by the Company. A final decision made with respect to any grievance in the first or second step of the grievance procedure 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 in interpretation of this Agreement. All settlement of grievances in step 1 or step 2 must be consistent with the terms and conditions of this Agreement.

Section 5.4- Waiver of Time Limits. No employee may leave the job, take up, or settle a grievance without requesting permission from the Site Manager. Such permission will be granted provided it does not retard or interfere with operations or create a hazardous condition.

If permission cannot be granted, time limits will be waived until permission is granted. Any other employees in the bargaining unit attending a grievance meeting at any step are subject to the same provisions.

Section 5.5- Grievance Content. The written grievance shall contain the following information:

1. Name(s) ofthe employee(s) involved;

2. Approximate date of alleged grievance;

3. Date of first discussion of the grievance with the Site Manager;

4. Nature ofthe grievance;

5. Current date;

6. Article/Section of Agreement violated;

7. Requested remedy.

ARTICLE 6

ARBITRATION PROCEDURES

Section 6.1- Notice. Upon receipt of a notice to take a grievance to arbitration, the Parties shall jointly request the Federal Mediation and Conciliation Service to furnish a panel of seven (7) arbitrators for the purpose of selecting an arbitrator. Only the Association or the Company may invoke arbitration on the other.

Section 6.2 -Arbitrator Selection. Upon receipt of the panel, the Parties shall make mutually satisfactory arrangements for the purpose of selecting an arbitrator by the process of alternately striking the names from the list until only one (1) remains. The last remaining member shall serve as arbitrator. The Party initiating the grievance shall strike the first name from the panel.

Either Party may reject one (1) panel. Upon such rejection, an additional panel shall be requested in writing from the Federal Mediation and Conciliation Service by the party rejecting such panel with a copy of such request to the other Party.

Section 6.3- Arbitrator's Authority. The arbitrator's authority shall be limited to disposition of the grievance arising under the contract, and he may only interpret and apply the Contract provisions to the facts of the particular grievance. The arbitrator shall have no power or authority to change, alter, modify, detract from or add to the terms of this Agreement. No award shall have retroactive effect prior to the date of the occurrence, which led to the filing of the grievance upon which the arbitrator's award is based.

Section 6.4- Arbitrator's Decision. The arbitrator's award shall be final and binding upon the Company, the Association and the bargaining unit employees. As such, no additional legal remedy may be brought against the Company by the Association or a bargaining unit employee based on an allegation that a violation of this Agreement has occurred, and the Company can bring no legal action against the Association or individual employee alleging a violation of this Agreement after a decision from an Arbitrator has been received on the specific issue.

Section 6.5 -Arbitrator's Fees and Costs. The fees and costs of the arbitrator shall be borne equally by the Parties. Each Party shall otherwise pay its own costs and expenses.

ARTICLE7

NO STRIKE/NO LOCKOUT

Section 7.1- Strikes. During the term of this Agreement, the Association, its officers, agents, representatives and members covered by this Agreement, agree that there shall be no strikes, concerted failure to report for duty, concerted absence of employees from their positions, concerted stoppage of work, concerted submission of resignations, concerted abstinence in whole or in part by any group of employees from the full and faithful performance of their duties of employment or acts of a similar nature which would interfere with production. Concerted, for purposes of this Article, shall mean two or more employees. Should the Association or employees covered hereunder breach this Article, the Company may discipline the employees involved up to and including discharge. In such event, the Association or affected employee may grieve disciplinary actions taken against any such employee only with regard to a question of an employee's participation in any of the above described activities. However, once participation has been established, management's actions are no longer subject to the grievance procedure. In the event that employees cease work in violation of this Article, such employees shall not be entitled to any benefits or wages while they are engaged in such cessation of work.

Section 7.2- Lockouts. The Company agrees that for the duration of this Agreement there shall be no lockouts. A lockout as mentioned herein shall not be construed as the closing down of the operation or any part thereof or curtailing any operations for business reasons.

ARTICLE 8

BULLETIN BOARD

The Company agrees to provide bulletin board space in the working area for the purpose of posting legitimate Association notices. This bulletin board may be used by the Association for the purpose of conveying official information from the Association to bargaining unit employees. The Association shall be the sole user of the bulletin board and only documents which constitute official Association business will be posted. The Association will not use the bulletin board to criticize the Company or its agents in any respect. All information to be posted is subject to advance approval of the Site Manager for compliance with the standards set forth in this Article. The Company will not remove information, which it has approved for posting on the bulletin board.

ARTICLE9

BARGAINING UNIT WORK

The Company shall retain the right to determine the number of employees necessary to accomplish the work called for in providing services under its contract with the Air Force. In the event that the Company decides to use part-time workers, currently employed bargaining unit employees will be offered the opportunity to voluntarily switch to part-time status. Qualified employees who were previously laid off or retired will be given first right of refusal for such part-time positions in the event that no current bargaining unit employees switch to part-time status. In that event, laid off employees will be given the first opportunity, using the recall procedures specified in Article 13.

ARTICLE 10

PART-TIME EMPLOYEES

Section 10.1- Definition. Part-time employees are those employees who normally work less than 32 hours per week and work on an "on call" basis to meet the requirements of the daily schedule. Part time status is conveyed in the Company's offer letter. Changes from part-time to full-time status are made through a formal offer letter.

Section 10.2- Compensation. Part-time employees are compensated at the same wage rate as full-time employees and are paid for each hour worked. Part-time employees are compensated for benefits on a "cash in lieu" basis for each hour worked in accordance with Article 20, Health and Welfare Benefits and are compensated on a pro-rata basis for holiday and vacation pay for each hour worked. Holiday and vacation pay calculations for part-time employees will be based on the formula specified:

Under 5 years (59 months or less) - hourly rate times 160 divided by 2080:

Example: Pay rate - $28.99 * 160/2080 = $2.23

Total= $28.99 + $ 3.41 + $2.23 = $34.63

Over 5 years, (60 months or more)- hourly rate times 200 divided by 2080

Section 10.3- Reporting Pay. In the event a part-time employee reports to work and is unable to perform his or her duties as a result of an operational schedule change or trainer failure, he or she will be compensated a minimum of two (2) hours pay.

Section 10.4- Benefits. Part-time employees are eligible to participate in the Company's benefit program as outlined in the Employee Benefit Summary.

ARTICLE 11

DUES CHECKOFF

Section 11.1 -Employee Authorization and Deductions. Upon receipt of a signed authorization of the employee involved, the Company shall deduct from the employee' s pay, the initiation fee, if any, and dues payable by him to the Association during the period provided for in said authorization. Deductions shall be made on account of dues and/or initiation fees, if appropriate, from each paycheck of the employee.

Section 11.2 - Payment of Dues to the Association. The sums deducted, as stated above, will be forwarded to the designated officer of the Association, no later than the 151 h of each month following the month in which they were deducted.

Section 11.3 - Indemnification. The Association 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.

Section 12.1 - Definitions.

ARTICLE 12

SENIORITY

Section 12.1(a)- Seniority. Seniority shall mean an employee's length of continuous service on current or predecessor contract(s). If application of the preceding sentence results in two (2) or more employees having the same seniority date, the employee with the earliest date of birth shall be deemed most senior. Seniority shall be applicable only as expressly provided in this Agreement.

Section 12.1(b) - Seniority List. The Company will publish and display a seniority hire list for all employees, by classification, within sixty (60) days of the effective date of this Agreement and, subsequently, when a change in the Seniority Jist occurs.

Section 12.1(c)- New Hires. New employees shall be on probation for 90 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 12.2 -Personnel Actions. Seniority shall not be used as a factor in personnel actions, provided however, that seniority will be considered by the Employer in making layoff, recall and promotion decisions depending on the requirements of the Company's contract with the Air Force and if all other factors, including but not limited to qualification, skill and ability, are equal.

Section 12.3- Loss of Seniority. An employee shall lose seniority rights for the following reasons:

Section 12.3(a) - Discharge for just cause, retirement, or resignation (quitting for whatever reason);

Section 12.3(b) - Failure to give notice of intent to return to work after recall within the time period specified in Section 13.2(a) ofthis Article, or failure to return to work on the date specified for recall, as set forth in the written notice of recall;

Section 12.3( c) - Time lapse of six (6) months, or for a period equal to the employee's seniority (whichever is less), since the last day of actual work for the Company, regardless of reason;

Section 12.3( d) - Failure to return to work upon expiration of a leave of absence, unless the Company, in its sole discretion, determines that it is legally obligated to extend the leave of absence.

Section 12.4- Seniority Termination Notification. The Company shall notify the employee and the Association, in writing, of the reason for termination within five (5) working days of such action.

ARTICLE 13

REDUCTION IN FORCE

Section 13.1 -Reduction in Force. In effecting a reduction of force within a job classification, the following procedure shall be followed. The first selection will be part-time employees, followed by probationary employees, and then full-time employees in reverse seniority order. It is further recognized that the Company retains the authority to use performance as the overriding factor in cases of reductions in forces, as set forth in Section 12.2 of this Agreement.

Section 13.2 - Recall from Layoff. Employees who are on active layoff status from job classifications having job openings will be recalled in order of seniority, providing they have the required qualifications for that job.

Section 13.3 - Recall Procedures. The Company will forward notice of recall by certified mail to the last known address of the employee reflected on Company records. A laid off employee shall promptly notify the Company of any change of address. The employee must, within three

(3) business days of delivery or attempted delivery of the notice of recall, notify the Company of his intent to return to work on the date specified for recall and thereafter return to work on such date. It is agreed that, when possible, the Company will allow recalled employees up to two (2) weeks to return to work. Employees who fail to properly notify the Company of their intent to work or fail to return to work as scheduled will be considered a voluntary quit.

Section 13.4- Part-time Employment. The Company may, providing there are no employees on active layoff status in the classification, to accommodate schedule requirements and to satisfy the requirements of the customer, hire employees specifically to work a daily or weekly work schedule which is less than the current regular workday or workweek. Part-time employees will not be utilized in a classification where it would result in a full-time employee working less than his regular scheduled work week.

Section 13.5- Severance Pay. Employees subject to a reduction in force will be eligible for severance pay in accordance with the following schedule:

Y rs of Service

More than 90 days, but less than 1 year More than 1 year, but less than 3 years More than 3 years

Severance Amount

1 week of standard hourly wage rate 3 weeks of standard hourly wage rate 5 weeks of standard hourly wage rate

Section 13.6- Years of Service. Years of Service will be based upon the employee' s seniority as defined in Section 12.1(a) ofthis agreement.

Section 13.7- Affect of Contract Turnover. Severance Pay does not apply if the Company loses the contract for any reason.

Section 13.8 -Employee Eligibility. Severance Pay applies to employees involuntarily separated only.

Section 13.9- Terminated Employees. Employees terminated for cause are not eligible to receive severance pay.

Section 13.10- Payment Calculations. Severance pay will be calculated on the standard hourly wage rate as defmed in Section 16.1.

ARTICLE 14

HOURS OF WORK

Section 14.1- Workweek. The normal workweek governed by the CTI employee manual, will begin at 12:01 a.m., Monday, and end at 12:00 midnight the following Sunday. The normal but not guaranteed workweek for each employee shall consist of five (5) days per week from Monday through Friday. An instructor schedule will be one in which the employee's normal but not guaranteed work week is a forty (40) hour, five (5) day per week schedule.

Section 14.2- Hours of Operation. The hours of operation are defined in the Company's contract with the Air Force. The Association acknowledges the responsibilities of the Company's operation as they are related to the support of the United States Air Force (USAF) objectives.

The parties realize the USAF may, from time to time, make unusual and immediate demands in conjunction with support requirements. Consequently, all personnel may be called upon to perform whatever duties are required for adequate performance of support requirements for the mission and operational capabilities for RCOCWC-135/E-4B Aircrew Training.

ARTICLE 15

CLASSIFICATION AND PAY

Section 15.1 -Temporary Assignments. The Company may temporarily upgrade an employee to a higher paid classification. An employee will receive the higher classification rate for the time he works in the higher paid classification.

Section 15.2 -Pay Frequency and Method. All wages payable to employees hereunder shall be paid semi-monthly. Automatic Deposit of payroll checks is required lAW the CTI Employee Manual.

ARTICLE 16

COMPENSATION

Section 16.1- Rates of Pay. The current wage rates, as identified in the graph below, of the bargaining unit employees will remain in effect until September 30, 2013. The following wage rates will be effective on the dates shown below, for the period of this Agreement and apply to all bargaining unit employees:

Current 10/01113 10/01114 Instructor Pilot 40.46 41.27 42.10 Education Technolo~ist 36.41 37.14 37.88 Instructor 36.41 37.14 37.88 Computer Pro~rammer II 31.58 32.37 33.18 Graphic Artist 26.24 26.90 27.57 Administrative Assistant 26.24 26.90 27.57

Section 16.2- Definition. Standard hourly wage rate when used throughout this Agreement shall mean the hourly wage rate paid in each respective classification for the relevant time period set forth in Section 16.1 above.

Section 16.3- Lead Pay. The Instructor Pilot Lead and Instructor Lead positions will be paid an additional $3.00 per hour for additional lead duties.

Section 16.4 -Reporting Pay. Full-time employees reporting for work will receive a minimum pay guarantee of four ( 4) hours work.

ARTICLE 17

HOLIDAYS

Section 17.1- Holidays. In accordance with the CTI Employee Manual, the following ten (10) days each year shall be paid holidays. Employees will receive eight (8) hours pay at their standard hourly wage rate of pay plus insurance payment.

New Year's Day Martin Luther King Day Veterans ' Day Thanksgiving Day Independence Day

Labor Day Presidents' Day Memorial Day Day after Thanksgiving Christmas Day

Section 17.2- Holiday Designation. Any Holiday falling on a weekend day will be celebrated on the day set by the Air Force. Employees will not be required to work on a holiday except where dictated by the operational needs of the Air Force or the Company.

Section 17.3 -Wing Down Days. Employees will be provided 8 hours of Company Paid Time Off (CPTO) for Wing Down Days designated by the 55th Wing Headquarters at Offutt AFB. A maximum of four ( 4) days per calendar year will be designated as Wing Down Days. Approval for this time off will be contingent upon the completion of all contract requirements and approval ofthe Site Manager.

Section 17.4- Eligibility. Employees must be on a paid status the day before and the day after a holiday in order to receive holiday pay. Employees will not receive holiday pay if they are on a leave of absence (unpaid leave status) when the holiday occurs.

ARTICLE 18

VACATION

Section 18.1 - Qualifying Period. The qualifying period for vacations shall commence with the original date of employment of the respective employee, as outlined in the Federal Government's Wage Determination, and shall be measured on the basis of an employee's anniversary date.

Section 18.2- Vacation Hours. Paid vacation will be awarded as follows:

Years of Service

1-5 yrs 5- 10 yrs 10 -20 yrs Over 20 yrs

Total Vacation Hours

112 hours 152 hours 192 hours 232 hours

Section 18.3 - New Employees. New employees will be permitted to take up to 40 hours of vacation in advance of their first anniversary date upon completion of their introductory period.

Section 18.4 - Carryover. In accordance with Nebraska Law, employees will not be subject to carryover limits. Employees whose carryover balance exceeds 60 hours at the end of the anniversary year will be required to take vacation during the first 90 day of the new anniversary year in order to reduce their carryover balance to 60 hours. The Site Manager will have full authority and responsibility for insuring employees take vacation for the purpose of reducing their vacation balance each anniversary year.

Section 18.5 - Pay in Lieu of Vacation. There will be no pay in lieu of time off for vacation.

Vacations shall be paid at the employee's standard hourly wage rate at the time the vacation is taken.

Section 18.6- Requesting Vacation. Leave Requests must be submitted at least two (2) days prior to the commencement of the leave to the supervisor or the Site Manager for approval.

Section 18.6(a) - Written approval may be waived ifleave is required due to illness or an emergency. The Site Manager may provide verbal approval for these types of situations.

Section 18.6(b)- Vacations shall be taken at such time as designated by mutual agreement between the Company and employee and shall not be canceled unless required by the operational needs of the Air Force or the Company. The minimum period of time an employee may request vacation is in one-half hour increments.

Section 18.7- Vacation Payout.

Terminating employees will be paid on their final paycheck for all unused vacation.

Section 18. 7(a)- A terminating employee will not be permitted to take vacation during their notification period. This period is needed to facilitate a smooth transition of work lead/projects from the terminating employee to the Company or to the departing employee's replacement.

Section 18.8 - Leave Without Pay. All vacation time must be exhausted before leave without pay may be approved.

Section 18.8(a)- All leave without pay must be approved in writing by the Site Manager prior to taking Leave Without Pay.

Section 18.8(b) - Leave without pay approved at least 24 hours in advance will not be considered an absence for punitive reasons.

Section 18.9- Leave of Absence. Employees who take a leave of absence of six months or less and who return within a single anniversary year will be awarded vacation on a pro rata basis for that year as of their next anniversary date. Employees who take a leave of absence of six months or less that extends beyond their anniversary date and who return will be awarded vacation on a pro rata basis for the year of departure upon their return, and on a pro rata basis for the year of return on their next anniversary date.

Section 18.10- Donation of Vacation to Another Employee. An employee may donate up to 40 hours of vacation in a 12 month period to another employee who is on FMLA. An employee who is on FMLA may not receive more than 120 hours of donated vacation in a 12 month period.

Section 18.10(a)- The company will utilize a "rolling year" method in determining the 12-month period for purposes of donating leave. This method requires a backward look from the date an employee last donated or received donated leave.

ARTICLE 19

BEREAVEMENT LEAVE

Section 19.1- Notice. Effective the date of this Agreement, employees are eligible for paid leave to bereave and attend the funeral of a family member.

Section 19.2 -Criteria for Five (5) Days of Leave. Employee will be provided up to five (5) days of leave for the death of a spouse, child or biological/adoptive parents.

Section 19.3- Criteria for Three (3) Days of Leave. Employees will be provided up to three

(3) days ofleave for the death of a brother, sister, mother-in-law, father-in-law, son-in-law, daughter-in-law, sister-in-law, brother - in-law, grandparents or grandchildren.

ARTICLE20

HEALTH AND WELFARE BENEFITS

The following health and welfare rates will be effective October 1, 2013 for the period of this Agreement and apply to all bargaining unit employees:

I $3.95

The above rate will be paid on all hours not to exceed forty ( 40) hours per week for the Employee to purchase health and welfare benefits. Any unused monies will remain with the Employee, unless otherwise required by law. All issues such as eligibility, enrollment, and claims will be as specified in the Plan documents.

ARTICLE21

401(k) PLAN

Section 21.1- Notice. The Company will provide a 401(k) Savings Plan for employees, to which plan eligible employees may defer compensation within limitations provided by law and the plan document. All conditions of participation, eligibility, vesting, and distribution of benefits will be governed by the plan document.

Section 21.2 - Tier 1 Employer Contributions. The company will match employee contributions on a semi-monthly basis 50% of the employee's contributions to a maximum of $2,000 per calendar year.

Section 21.3 - Tier 2 Employer Contributions. Employees who have been employed on the contract for four (4) or more years will receive a dollar for dollar employer match for contributions over $4,000 to a maximum of $1,000. Employees must be employed on the last day of the calendar year in order to receive Tier 2 matching. Tier 2 matching will be paid the first week in January of each year following the end of the calendar year.

ARTICLE22

LEAVES OF ABSENCE

Section 22.1 -Non-Medical Leave. Leaves of absence (non-medical) without pay for more than five ( 5) days may be granted at the sole discretion of the Company upon request by an employee, for a period not to exceed thirty (30) calendar days .. Employees must request such unpaid leaves to the Site Manager, in writing, at least five (5) calendar days prior to the date the unpaid leave would begin. Under extenuating circumstances, the five (5) day notice may be waived upon approval of the Site Manager and the Senior Vice President of Human Resources

Section 22.2 - FMLA. Employees will be allowed to take up to take up to 12 weeks of paid/unpaid family/medical leave within any 12-month period and be restored to the same or an equivalent position upon return from leave providing:

1. The employee has worked for the Company for a least 12 months (need not be consecutive), and for at least 1,250 hours in the last 12 calendar months; and

2. The worksite maintains 50 or more employees within a 75-mile radius for each working day at least 20 workweeks in the current or the preceding year.

Additional information regarding FMLA is located in the Employee Manual under "Other Leaves of Absence."

Section 22.3 -Seniority Rights. Employees on unpaid leaves of absence shall retain seniority while on leave, consistent with Article 12, Section 12.3(d). An employee shall lose his seniority and be terminated for the following:

Section 22.3(a)- Failure to return from a leave of absence on the agreed upon date;

Section 22.3(b)- Falsifying a reason for a leave of absence; and/or

Section 22.3(c)- Becoming gainfully employed during a leave of absence without prior approval from the Company.

Section 22.4 - Extension of a Leave of Absence. Any requests for extensions past the thirty

(30) days may be granted at the sole discretion of the Company.

Section 22.5 -Legal Compliance. The Company agrees to follow the State and Federal disability statutes.

ARTICLE23

EDUCATION/TUITON PLAN

Section 23.1 - Education Assistance. Full-time employees, who have completed 90 days of employment with the Company, may continue their education in a job related field. The Company will reimburse the employee 75% of registration and tuition fees. All courses must be approved in advance by the Site Manager and the Vice President of Human Resources.

Section 23.2- Minimum Grade Requirement. A grade ofB or numeric equivalent in each course is required in order for the employee to receive reimbursement.

Section 23.3- Payback Provision. If an employee terminates employment within one (1) year after completing a course, they will be required to repay the Company for any reimbursements they received for that course.

Section 23.4- Contract Turnover. If the Company loses the contract, for any reason, an employee will not be required to repay the Company for any tuition re-imbursement that occurred within one (1) year of contract end.

ARTICLE24

SUBSTANCE ABUSE POLICY

Section 24.1- Drug and Alcohol Free Workplace. The Company and the Association are committed to providing employees with a drug-free and alcohol free workplace. It is the goal of both parties to protect the health and safety of employees and to promote a productive workplace, as well as to protect the reputation of the Company, the Association and the employees. Consistent with these goals, the Company prohibits the use, possession, distribution or sale of drugs, drug paraphernalia or alcohol on Company premises. The Company also prohibits an employee from being under the influence of illegal drugs or alcohol while at work.

Section 24.2- Employee Drug Testing Program. If a program of employee testing is necessary to comply with Federal and State regulations, the RCOCWC-125/E-4B Contract, or similar requirements, a program of testing will be instituted subject to mutual consent of the Company and the Association to allow Company compliance with those regulations.

Section 24.3- Pre-Employment Drug Testing. Pre-employment drug testing will be a condition of employment.

ARTICLE25

NEW JOBS

Section 25.1- Notification. When new bargaining unit jobs are required that cannot be properly encompassed within an existing job specialty, the Company will notify the Association of the requirements. The Association shall have thirty (30) days from the date of establishment of the new job in which to request collective bargaining regarding the rate of pay. If necessary, this matter is subject to the grievance procedure up to and including arbitration.

Section 25.2- Job Qualifications. The Company has the right to determine the job qualifications. Copies of job descriptions and required qualifications shall be retained by the Site Manager and shall be made available to employees upon request. The Association shall be advised, in writing, of any revisions or modifications of job descriptions or qualifications.

ARTICLE26

EFFECT OF LAW

Section 26.1- Invalidation of a CBA Provision. In the event that any Federal or state legislation, governmental regulations or court decisions cause invalidation of any article or section of this Agreement, all other articles and sections not so invalidated shall remain in full force and effect.

Section 26.2 - Clause Replacement. Within thirty (30) calendar days, the Company and the Association shall meet to attempt to negotiate new contract language to replace the particular clause(s), which was invalidated by Federal, or state legislation, governmental regulations or court decisions.

ARTICLE27

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.

ARTICLE28

NON-DISCRIMINATION

The Company and the Association agree not to discriminate against any employee covered by this Agreement because of race, color, religion, sex, age, national origin, marital status or against any qualified individual with a disability with respect to all terms and conditions of employment.

Claims of such discrimination will be subject to the grievance and arbitration provisions of this Agreement. The Company and the Association agree not to unlawfully discriminate against or harass any employee because of membership in or non-membership in the Association.

ARTICLE29

INSURANCE PLANS

Section 29.1 -Benefit Participation. Employees may participate in company sponsored health and welfare plans. CTI' s "Employee Benefit Summary" is attached to this document.

Section 29.2 -Medical Insurance. The Company will offer group medical insurance for employees and their dependents which provides the same coverage, benefits and employee costs as the medical insurance provided to non bargaining unit employees on a company-wide basis.

The Company will pay 80% of the medical premiums for employees and their dependents in addition to the Health and Welfare benefits outlined in Article 20. All issues such as eligibility, enrollment, and claims will be as specified in the Plan documents, and will not be subject to the grievance or arbitration procedures of this Agreement. Bargaining unit employees may use some or all of their "insurance payment" (as defined in Article 20) to purchase medical insurance.

ARTICLE30

PROMOTIONS

Section 30.1- Notice. The Company will endeavor to transfer employees to higher paid positions from within the bargaining unit if available employees have the skill and ability necessary to do the work. If two or more employees are eligible and express an interest, seniority shall govern if qualifications are substantially equal.

Section 30.2 - Open Positions. The Company will notify the bargaining unit employees of any openings to be filled within the bargaining unit, three (3) business days prior to filling the position.

Section 30.3 -Probationary Period. Upgraded employees will be considered on probation in new positions for ninety (90) calendar days after upgrading. During this period, the Company may, at its discretion act to reclassify the employee to their former occupation if determined, by the Site Manager or his designee, that the employee is not meeting the qualifications for that upgraded job classification.

ARTICLE31

SECURITY

Section 31.1- Association Recognition. The Association 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 31.1(a)- The Association agrees that nothing contained in this Agreement shall place the Company in violation of security agreements with the government.

Section 31.2- Security Clearances. 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 other agencies of the United States government on government work, and that denial 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.

Section 31.3- Release of Liability. It is understood that there shall be no liability on the part of the Company for any release growing out of the denial of clearance and/or unescorted entry authorization by the United States government.

Section 31.4 -Seniority Reinstatement. The Company will reinstate the seniority of an employee whose denied security clearance is reinstated by the federal government. A non probationary employee who loses his security clearance or site access for any reason will not lose his seniority until final adjudication of his appeal. Any employee whose seniority is reinstated under this provision will be reinstated in his previously held occupational title.

Section 31.5- Status of Employee Awaiting Appeal. An employee who is awaiting final adjudication of his appeal, will be allowed to continue to perform duties that does not require a security clearance, if such duties are available. Otherwise, the employee will be treated as on lay off status until his security clearance has been reinstated.

ARTICLE32

DURATION AND TERMINATION

Section 32.1 - Expiration Date. This Agreement shall continue in full force and effect through August 31,2015.

Section 32.2- Notice to Modify or Terminate Automatic Renewal. This Agreement shall continue in effect for successive yearly periods after August 31,2015 unless notice is given in writing by either the Association or the Company to the other party at least sixty (60) days and not more than ninety (90) days, prior to subsequent renewal dates after August 31 , 2015. If such notice is given, this Agreement shall be open to modification, amendment, or termination, as such notice may indicate, on September 1, 2013 or the subsequent anniversary date, as the case maybe.

Section 32.3 -Waiver of Bargaining During Contract Term. The Association and the Company, for the life of this Agreement, each voluntarily and unqualifiedly waives the right and each agrees that the other shall not be obligated to bargain collectively with respect to any subject or matter referred to in this Agreement, or with respect to any subject or matter not specifically referred to or covered in this Agreement, even though such subjects or matters may not have been within the knowledge or contemplation of either or both of the parties at the time they negotiated or signed this Agreement

Section 32.3(a)- The Association may request a review of selected wage rates by providing written notice at least sixty (60) days and not more than ninety (90) days prior to any anniversary date of this Agreement of their desire to do so. In the event the parties do open discussions, all other provisions of this Agreement shall remain in full force and effect, including the no strike and no lockout provisions. The Company will give serious consideration to this request but is not obligated to enter into negotiations.

ARTICLE33

CHANGES TO THE CTI EMPLOYEE MANUAL

Employees will have 3 0 days to object to any changes. If no objection is made during this 30 day period, any changes to the CTI Employee Manual will be automatically included in this agreement.

IN WITNESS WHEREOF, the parties have executed this Agreement by their respective representatives duly authorized on August 31 , 2013.

Crew Training International, Inc.

(CTI)

UJ;Jd:

Brian Tingstad Site Manager

Offutt Aircrew Training Employees Association (OATEA)

~ t¥.).

David Wellons Vice President

CTI~ EMPLOYEE BENEFITS

SUMMARY

Crew Training International is pleased to offer full-time employees a comprehensive benefit package. Unless specified otherwise, full-time employees become eligible for participation the first of the month following 90 days of employment.

• Medical

• Dental

• Tricare Supplement

• Vision

• Life…