Nellis_CBA_and_WD.pdf

COLLECTIVE BARGAINING

AGREEMENT

BETWEEN

DELAWARE RESOURCE GROUP OF OKLAHOMA LLC

And

THE INTERNATIONAL ASSOCIATION OF

MACHINISTS AND AEROSPACE WORKERS,

AFL-CIO

LOCAL 845

F-16 USAF Aircrew Training

Nellis AFB, Nevada

MAY 1, 2014

TABLE OF CONTENTS

ARTICLE TITLE PAGE

Preamble 3

1 Recognition 4 2 Rights of Management 4 3 Union and Company Relations 4 4 Grievance Procedure and Arbitration 6 5 Seniority 9 6 Workweek and Hours of Work 11 7 Overtime 12 8 Leave of Absence 12 9 Safety 13

10 Separability 14 11 Miscellaneous 14 12 Workforce Administration 15 13 Jury and Witness Duty 16 14 Short-term Military Duty 16 15 Rates of Pay 17 16 Vacations 17 17 Bereavement Leave 19 18 Holidays 19 19 Group Benefits 20 20 Savings Plan 20 21 Duration 22

LETTERS OF UNDERSTANDING

#1 Relating to Drug and Alcohol Testing 23

#2 Machinists Custom Choice Worksite Benefits Program

#3 Part Time Employee 25 #4 Holiday & Suspension of Operations 26 #5 Changes in Health Care 27

Appendix A 28

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Nellis AFB, NV

COLLECTIVE BARGAINING AGREEMENT

BETWEEN

Delaware Resource Group of Oklahoma LLC

AND

THE INTERNATIONAL ASSOCIATION OF MACHINISTS

AND AEROSPACE WORKERS,

AFL-CIO

LOCAL 845

THIS AGREEMENT, dated as of the 1 st day of May, 2014, by and between Delaware Resource Group of

Oklahoma LLC (DRG) (hereinafter referred to as The Company) and The International Association of Machinists and Aerospace Workers, AFL-CIO, Local 845 (hereinafter referred to as "the Union").

WITNESSETH that

WHEREAS, the Union is the exclusive bargaining agent of certain employees of the Company, and

WHEREAS, the Union and the Company have negotiated a Collective Bargaining Agreement covering wages, hours and other conditions of employment, and

WHEREAS, the parties desire to reduce the Agreement to writing, NOW, THEREFORE, in consideration of the mutual promises hereinafter set forth, the parties hereto agree as follows:

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ARTICLE 1

RECOGNITION

Section 1.1 Recognition. The Company recognizes The International Association of Machinists and Aerospace workers, AFL-CIO, Local 845, as the sole and exclusive bargaining agent with respect to rates of pay, wages, hours of work and all other conditions of employment for all employees covered by this Agreement.

Section 1.2 Bargaining Unit. The Company and the Union agree that the employees covered by this agreement shall consist of the following: designated employees of Delaware Resource Group of Oklahoma LLC (DRG), F-16 Mission Training Center Instruction, United States Air Force Contracts FA4890-12-C-0004, and its successor contracts located at Nellis AFB. Excluded from the unit are all, supervisors and managers, office clerical employees, professional employees and guards as defined by the National Labor Relations Act, and all other employees of DRG, including those employees on contracts other than those identified above.

ARTICLE 2

RIGHTS OF MANAGEMENT

The management of the company and the direction of the work force are vested exclusively in the company subject to the terms of this Agreement. All matters not specifically and expressly covered or treated by the language of this Agreement may be administered for its duration by the company in accordance with such policy or procedure as the company from time to time may determine. The company does have the right to subcontract work and designate the work to be performed by the company and the places where it is to be performed, which right shall not be subject to arbitration. The company agrees that no bargaining unit employees will be laid off as a direct result of subcontracting bargaining unit work.

ARTICLE 3

UNION AND COMPANY RELATIONS

Section 3.1 Union Activity During Working Time. Solicitation of Union membership, collection or checking of dues, will not be permitted during working hours. The Company agrees not to discriminate in any way against any employee for the filing of complaints or grievances or for Union activity. Any employee engaged in unsanctioned Union activity during working time, except as specifically allowed by the provisions of this Agreement, or by other agreement between the Company and the Union, is subject to disciplinary action.

Section 3.2 Strikes and Lockouts. The Union agrees that during the terms of this Agreement and regardless of whether an unfair labor practice is alleged (a) there will be no strike, slow-down, sit-down, or walk-out and (b) the Union will not directly or indirectly authorize, encourage or approve any refusal on the part of employees to proceed to the location or normal work assignment. Any employee who violates this clause shall be subject to discipline. The Company agrees that during the term of this Agreement there will be no lock-out of employees covered by this Agreement. Any claim by either party that the other has violated this Section 3.2 shall not be subject to the grievance procedure or arbitration provisions of this Agreement and either party shall have the right to submit such claim(s) to the courts.

Section 3.3 Union Payroll Deduction. It is agreed between the Company and the Union that any employee in the bargaining unit defined in Article 1 of this Agreement, who is or may hereafter become a member of the Union, or pays an agency fee, may authorize the collection of Union dues or agency fees by the signing of a payroll deduction form. The employee's authorization shall be irrevocable for a period of one year from the date they are signed or until this agreement expires whichever occurs sooner, irrespective of their membership status in the Union.

3.3(a) This authorization and assignment shall continue in full force and effect for yearly periods beyond the irrevocable period set forth above, and such subsequent yearly period shall be similarly irrevocable unless revoked within ten (10) calendar days nor less than three (3) days prior to the date of termination of any irrevocable period hereof. Such revocation shall be affected by written

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notice to the Company, and a copy sent by certified mail, return receipt requested, to the Union within such ten (10) day period.

3.3(b) Collection of any back dues or agency fees owed at the time of starting deductions for any employee and collection of dues or agency fees missed because the employee's earnings were not sufficient to cover the payment of dues for a particular pay period will be the responsibility of the Union and will not be the subject of payroll deductions.

3.3(c) Deduction of membership dues or agency fees shall be made in a flat sum provided there is a balance in the paycheck sufficient to cover the amount after all other deductions authorized by the employee or required by law have been satisfied. In the event of termination of employment, the obligation of the Company to collect dues or agency fees shall not extend beyond the pay period in which the employee's last day of work occurs.

3.3(d) As permitted by law all employees in the bargaining unit must as a condition of continued employment be either a member of the Union and pay union dues or pay an agency fee to the Union, but not both.

3.3(e) All employees within the bargaining unit on the effective date of this agreement who are not

Union members must, as a condition of continued employment, pay to the Union while on the active payroll, an agency fee equal in amount to monthly membership dues, beginning with the month following the month in which they accumulate thirty (30) days’ continuous service in the bargaining unit since their last date of hire or rehire. Employees entering the bargaining unit or employees who are rehired with seniority or transferred with seniority into the bargaining unit after the effective date of this agreement who do not become union members, or having become do not remain union members, must, as a condition of employment, while on the active payroll, pay such fee to the Union commencing the month following the month in which they accumulate thirty (30) days’ continuous service in the bargaining unit if such entry is prior to the fifteenth (15 th ) day of that month or commencing with the month following the month of such entry into the bargaining unit if such entry is on or after the fifteenth (15 th ) day of that month.

3.3(f) Employees who are union members on the effective date of the agreement shall continue to pay membership dues to the union as a condition of continued employment while in the bargaining unit and on the active payroll as long as they remain members of the union; employees within the bargaining unit who after the effective date of this agreement become members of the union shall pay, while on the active payroll, an original initiation fee and membership dues to the union, as a condition of continued employment while in the bargaining unit and while remaining a union member;

provided that in no event shall the initiation fee and membership dues exceed the amount specified in the Constitution and/or by-laws of the union.

3.3(g) Any employee required to pay an agency fee, membership dues, or initiation or reinstatement fee as a condition of continued employment who fails to tender the agency fee or initiation, reinstatement, or periodic dues uniformly required, shall be notified in writing of his delinquency. A copy of such communication shall be mailed to the Company not later than fifteen (15) days prior to such request that the Company take final action on a delinquency.

3.3(h) When a system is developed and agreed to by the parties, the Company shall issue all union payments such as union dues, initiation fees, etc. via an electronic funds transfer process only.

3.3(i) All dues increase or change letters must be received a minimum of thirty (30) days prior to implementation.

3.3(j) All dues deduction changes must be received by the company by the third Monday of the month in order to be processed during the following month.

Section 3.4 Indemnity. 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 3.

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Section 3.5 Business Representatives - Access to Site. The Business Representative of the Union shall have access to the Company facilities where bargaining unit employees are normally assigned during working hours for the purpose of conducting legitimate Union Business pertaining to this Agreement including, but not limited to, the investigation and advising in the handling of grievances, and will not interfere with the normal conduct of the Company’s operation. The Company will not impose regulations which will render the intent of this provision ineffective. The Union shall keep the Company Manager of Human Resources currently informed in writing of the name of the accredited Business Representative. The business representative shall notify the human resources manager or his designee prior to any visit to the site. The necessary Company badges and credentials will be given to the business representative. Visits shall be made subject to such regulations as may be made from time to time by the Company.

Section 3.6 Shop Stewards. The Union may select one employee as a Shop Steward. An employee while serving as a Steward shall not be surplused, unless the employee is also the only employee in a classification subject to a surplus action.

Section 3.7 Departure from Work Assignment by Stewards to Investigate Complaints or Claims of Grievance. Each steward shall notify and obtain permission from his supervisor before leaving his work assignment for the purpose of investigating complaints or claims of grievance on the part of employees or the Union or contacting the business representative in regard to such claim or grievance. Such permission shall be granted except where there is a substantial reason for delaying the contact or the investigation due to safety conditions or the fact that a critical operation is in process. The supervisor may be present during any discussion relating to any complaint or grievance. However, upon the request of an employee or steward, the supervisor shall authorize a steward to participate in a private discussion with an employee, business representative, or his designee, relating to a complaint or grievance. Discussions of the type described in this Section 3.7 shall be conducted without requiring the employee or steward to be on unpaid time provided the discussion does not extend beyond the time that the supervisor considers reasonable under the circumstances.

Section 3.8 Bulletin Boards. The Company will provide bulletin boards for the use of the Union at locations mutually agreed to. Their use will be restricted to the following.

(a) Notices of Union meetings;

(b) Notices of Union elections and results thereof;

(c) Notices of Union recreational and social affairs;

(d) Such other notices as are mutually agreed upon.

Only notices approved by the Business Representative, or his designee, authorized in writing by the Union and approved by the Company may be placed on the bulletin boards.

Section 3.9 Nothing in this Agreement is intended to abridge the right of a supervisor to privately discuss with any employee under his or her supervision topics pertinent to the workplace, including but not limited to, the employee's job performance.

Section 3.10 Joint Meetings. Should either party desire to discuss with the other any matter affecting generally the relationship of the parties, a meeting of Union and Management representatives shall be arranged upon request of either party. Such meeting shall take place at a time mutually convenient to both parties. Any use of Company time for attendance at such meetings shall be arranged in advance by mutual agreement.

This Section is intended to provide a free avenue of communication between the Union and the Company, and suggestions, complaints, or other matters may be presented by either party, provided that neither party shall be required to discuss any item brought up by the other party nor be bound to act upon any item presented. However, both parties agree to discuss informal grievances and complaints.

ARTICLE 4

GRIEVANCE PROCEDURE AND ARBITRATION

Section 4.1 Establishment of Grievance and Arbitration Procedure. Grievances or complaints arising between the Company and its employees subject to this Agreement, or the Company and the Union, with

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respect to the interpretation or application of any of the terms of this Agreement, shall be settled according to the following procedure. Subject to the terms of this Article relating to cases of dismissal or suspension for cause or of involuntary resignation, only matters dealing with the interpretation or application of terms of this Agreement shall be subject to this grievance machinery.

Section 4.2 Employee Grievances. In the case of grievances on behalf of employees and subject to the further provisions of Section 4.3 below, relating to cases of layoff or dismissal or suspension for cause or involuntary resignation:

STEP 1. Oral Discussion. The employee first shall discuss his grievance with the Steward and if the Steward considers the grievance to be valid then the employee and the Steward will contact the employee's supervisor and will attempt to effect a settlement of the complaint. This procedure, however, will not prevent an employee from contacting his supervisor if he so chooses. If the purpose of the employee's contacting his supervisor is to adjust the grievance, the Steward shall be given an opportunity to be present and such adjustment shall be in conformity with this Agreement.

STEP 2. Grievance Reduced to Writing. If no settlement is reached in Step 1, the Steward, if he considers the grievance to be valid, may reduce to writing a statement of the grievance or complaint which the grievant must sign and it shall contain the following:

(a) The facts upon which the grievance is based.

(b) Reference to the section or sections of the Agreement alleged to have been violated (this will not be applicable in cases of dismissal or suspension for cause or of involuntary resignation).

(c) The remedy sought.

If any of the criteria listed above are not met, the grievance will be considered invalid, and the clock will not re-start for a timely filing of a competent grievance.

The Steward shall sign and submit the written statement of grievance to the manager for consideration, with a copy to Human Resources within five (5) work days after the oral discussion in Step 1 has taken place. After such submission, the manager and the Steward may, within the next five (5) workdays, unless mutually extended, settle the written grievance and, over their signatures indicate the disposition made thereof. Otherwise, promptly after the expiration of such five (5) day period, or agreed extension thereof, the manager and the Steward shall sign the grievance and their signatures will indicate that the grievance has been discussed and reconsidered by them and that no settlement has been reached.

STEP 3. Written Grievance Handling at Business Representative/Company Representative Level. If no settlement is reached in Step 2 within the specified or agreed time limits, the Business Representative or his designee may initiate Step 3 by submitting the grievance to the Program Manager or the designated representative of the Company within five (5) work days after the signature of the written grievance as required in Step 2 has occurred. Failure to submit the written grievance in accordance with the terms and within the five (5) work day deadline will automatically initiate Step 4. After such submission, the designated representative of the Company and the Business Representative or his designee may, within the next ten (10) workdays, unless mutually extended, settle the grievance and, over their signatures, indicate the disposition made thereof.

Otherwise, promptly after the expiration of such ten (10) day period, or agreed extension thereof, the designated representative of the Company and the Business Representative, or his designee, shall sign the grievance and their signatures will indicate that the grievance has been discussed and reconsidered by them and that no settlement has been reached.

STEP 4. Mediation. If resolution of the grievance is not reached under Step 3 above, the Union or the Company wishing to take the grievance to Step 4 must notify the other party in writing of their desire to proceed to mediation and must formally request mediation in writing from the office of the Federal Mediation and Conciliation Service located nearest to the worksite. This request for

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Mediation and notice of request to the other party must be provided within five (5) work days after the signature of the written grievance as required in Step 3 has occurred. Failure to submit the request for mediation and notice of request for mediation in accordance with the terms and within the five (5) work day deadline of this Step 4 will be deemed an abandonment of the grievance, and the matter will be closed, except when an extension is agreed to. The above limit starts after the notice of this Step is received by the IAM local 845 office from the company. Mediation under this section is required before arbitration. The request for mediation must be served in writing by the party requesting it simultaneously on the Federal Mediation and Conciliation Service and the other party within this time period as a condition for processing the grievance up to and including arbitration. The mediation must be scheduled at a time and location mutually agreeable to the parties within thirty

(30) calendar days of the request for mediation and notice of request for mediation, unless the parties mutually agree in writing to an extension of the 30 day period. If the Shop Steward’s presence is requested by the Union, such request for time off without pay to attend the mediation will not be unreasonably denied.

STEP 5. Arbitration. If no settlement is reached in Step 4 within the specified or agreed time limits, then either party may in writing, within ten (10) workdays thereafter, request that the matter be submitted to an arbiter for a prompt hearing as hereinafter provided in Sections 4.6 to 4.7, inclusive.

Failure to submit the request for arbitration in accordance with the terms and within the ten (10) work day deadline of this Step 5 will be deemed an abandonment of the grievance, and the matter will be closed.

Section 4.3 Dismissals, Suspensions, Layoff, etc. In cases of layoff or suspension for cause, or of involuntary resignation, the employee shall be given a copy of the layoff, suspension or termination of service slip, as the case may be, if he is available to be presented with such copy. If he is not available, copies of the slip will be sent to the employee and to the Union office. The employee shall have the right to appeal the action shown on the slip providing the Union files a written grievance with the designated representative of the Company within seven (7) workdays after the date of layoff dismissal, or suspension for cause, or involuntary resignation, or within seven (7) workdays after the date of the mailing of the copy of the slip. The written grievance then may be processed through subsequent steps.

Section 4.4 Union Versus Company. Processing of grievances which the Union may have against the Company shall begin with step 3 and shall 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, and shall contain the following:

(a) Statement of the grievance setting forth the facts upon which the grievance is based.

(b) Reference to the section or sections of the Agreement alleged to have been violated.

(c) The correction sought.

The grievance shall be signed by the designated representative of the Union. If no settlement is reached within ten (10) workdays (unless mutually extended) from submission of the grievance to the designated representative of the Company, both shall sign the grievance and indicate that it has been discussed and reconsidered by them and that no settlement has been reached. Within ten (10) workdays thereafter the Union may in writing request that the matter be submitted to an arbiter for a prompt hearing as hereinafter provided in 4.6 to 4.7, inclusive.

Section 4.5 Retroactive Compensation. Grievance claims involving retroactive compensation shall be limited to thirty (30) calendar days; prior to the written submission of the grievance to Company representatives, provided, however, that this thirty (30) day limitation may be waived by mutual consent of the parties.

Section 4.6 Selection of Arbiter - From Federal Mediation and Conciliation Service. The parties shall jointly request the Federal Mediation and Conciliation Service to submit a panel of seven (7) arbiters. Such requests shall state the general nature of the case and ask that the nominees, be qualified to handle the type of case involved. When notification of the names of the panel of seven (7) arbiters is received, the parties in turn shall have the right to strike a name from the panel until only one name remains. The right to strike the

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first name shall be determined by lot. The remaining person shall be the arbiter. The parties agree to strike the panel three (3) days after receipt of such panel.

Section 4.7 Arbitration - Rules of Procedure. Arbitration pursuant to Step 4 shall be conducted in accordance with the following

4.7(a) The arbiter shall hear and accept pertinent evidence submitted by both parties and be empowered to request such data as he deems pertinent to the grievance and shall render a decision in writing to both parties within thirty (30) days, unless mutually extended, after the completion of the hearing.

4.7(b) The arbiter shall be authorized to rule and issue a decision in writing on the issue presented for arbitration which decision shall be final and binding on both parties.

4.7(c) The arbiter shall rule only on the basis of information presented in the hearing before him and shall refuse to receive any information after the hearing except when there is a mutual agreement, in the presence of both parties.

4.7(d) Each party to the proceedings may call such witnesses as may be necessary in the order in which their testimony is to be heard. Such testimony shall be limited to the matters set forth in the written statement of grievance. The arguments of the parties may be supported by oral comment and rebuttal. Either or both parties may submit written briefs with a time period mutually agreed upon.

Such arguments of the parties, whether oral or written, shall be confined to and directed at the matters set forth in the grievance.

4.7(e) Each party shall pay any compensation and expenses relating to its own witnesses or representatives.

4.7(f) The Union or the Company, whichever is ruled against by the arbiter, shall pay the compensation of the arbiter including his necessary expenses.

4.7(g) The total cost of the stenographic record (if requested) will be paid by the party requesting it.

If the other party also requests a copy, that party will pay one half of the stenographic costs.

Section 4.8 Extension of Time Limits by Agreement. Time limits designated in this Article for processing grievances and for bringing a matter to arbitration may only be extended by mutual written consent.

Section 4.9 Agreement Not to be Altered. In arriving at any settlement or decision under the provisions of this Article, neither the parties nor the arbiter shall have the authority to alter this Agreement in whole or in part.

Section 4.10 Conference During Working Hours. All conferences resulting from the application of provisions contained in this Article shall be held during working hours.

Section 4.11 Business Representative, When Not Available May Authorize Designee. For any period that the Business Representative is unavailable to serve in that capacity under this Article 4, he may designate an accredited Steward or another accredited Business Representative to act for him, as his designee. As to each such period of unavailability, authorization of the designee will be accomplished by the Business Representative informing the appropriate Company representative of the expected period of the Business Representative's unavailability to perform his duties under this Article 4, he shall promptly notify the Company representative of the fact and such notice will terminate the period during which the designee is authorized to act.

Section 4.12 Signing Grievance Does Not Concede Arbitrable Issue. The signing of any grievance by any employee or representative either of the Company or of the Union shall not be construed by either party as a concession or agreement that the grievance constitutes an arbitrable issue or is properly subject to the grievance machinery under the terms of this Article.

ARTICLE 5

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SENIORITY

Section 5.1 Purpose and Definition. Both parties hereto agree that continued service over a period of time should, and in most cases does, increase the worth of an employee to his employer, and that length of service should receive recognition in case of promotion, and therefore agree:

That the principle of seniority, where qualifications, productivity and dependability are substantially equal, shall be the determining factor and shall apply upon a company-wide basis in accordance with the specific application provisions of this agreement.

Section 5.2 Probationary Employees.

5.2(a) For the first ninety (90) days of employment, employees shall be considered as on probation and without seniority. However, if a probationary employee is laid off and rehired within a period of time not in excess of the time he had previously spent as a probationary employee, he will be credited with the time previously worked toward the completion of his probationary period. Upon the completion of his probationary period, his seniority date will then be established as of ninety (90) days prior to the completion date of his probationary period.

5.2(b) During such ninety (90) day period, probationary employees may be laid off or terminated at the discretion of the Company. Such layoffs or terminations during the probationary period shall not be subject to the grievance and arbitration procedure.

Section 5.3 Establishment of Seniority. The seniority date of each employee, who, as of the effective date of this agreement, is in the unit defined in Article 1, on authorized leave of absence from the unit, or acting in a supervisory capacity over employees in the unit, shall be in conformance with the date carried on the Company's records, and agreed on the date of ratification (see Appendix A). The seniority date of each employee, who, subsequent to the effective date of this agreement is hired, rehired, or transferred into the unit shall be the effective date of such hire, rehire, or transfer.

Section 5.4 Employees With Identical Seniority Dates. When two or more employees have the same seniority date as herein provided, the employee having the lowest number (the last four (4) digits of one's social security number) shall be considered as having the least seniority for tie breaking purposes.

Section 5.5 Accumulation Seniority. Seniority shall accumulate to:

5.5(a) Employees who are on the active payroll of the Company and in the bargaining unit defined in Article 1 of this Agreement:

5.5(b) Employees who are promoted to non-represented positions supervising bargaining unit employees, shall retain seniority while they remain in such supervisory position;

5.5(c) Employees while on active military service and reinstated in compliance with applicable law;

5.5(d) Time spent on authorized leave of absence for Union business in accordance with Article 8;

5.5(e) Time lost by reason of industrial injury, or industrial illness not to exceed the time limits on layoff statue provided in 5.5(h);

5.5(f) Time spent on authorized leave of absence granted because of pregnancy or to cover periods of non-industrial injury or illness, not to exceed 12 months during any such period;

5.5(g) The first 30 days of any other authorized leave of absence;

5.5(h) Time spent on layoff for a period not to exceed five (5) years, or for employees with less than one (1) year seniority, time spent on layoff for a period not to exceed one (1) year;

Section 5.6 Loss of Seniority. An individual shall lose seniority rights for the following reasons:

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5.6(a) Resignation. In addition to normal resignations, an individual who, while on leave of absence, engages in other employment without prior written approval by the Company, or fails to report for work or to obtain renewal of his leave on or before its expiration, will be considered as having resigned;

5.6(b) Discharge for cause;

5.6(c) Failure to respond with an acceptance within three (3) working days after receipt of a recall from layoff notice by certified mail (unless such period is extended by the Company);

5.6(d) Failure to report for work within fourteen (14) calendar days after acceptance or on such later date as may be designated by the Company;

5.6(e) Failure to keep the Company advised of any changes in current mailing address, while on layoff. The Company will fulfill its obligation for notice of recall by mailing a certified notice to the employee's last address of record;

5.6(f) Layoff for a period in excess of five (5) years (or for employees with-less than one (1) year seniority, layoff in excess of one (1) year);

5.6(g) Retirement;

5.6(h) Absence in excess of three (3) consecutive working days, or failure to return for leave of absence within three work days, without notification shall constitute RESIGNATION as in 5.6(a) above, unless satisfactory evidence of inability to report for work is shown.

Section 5.7 Transfers To and From the Bargaining Unit.

5.7(a) The Company may transfer or promote employees covered by this Agreement to supervisory positions.

5.7(b) Employees transferring to salaried positions other than that described in Section 5.5(b), shall retain their bargaining unit seniority but shall not accumulate additional seniority while they remain in such salaried positions.

5.7(c) The Company at any time may transfer or demote to positions within this unit those employees who have accumulated or are accumulating seniority under Section 5.3 of this Article 5.

Such transfers or demotions may be made subject only to the job return rights of others to the extent provided in Article 12.

ARTICLE 6

WORKWEEK and HOURS OF WORK

Section 6.1 Workweek: The purpose of this Article is to define the normal hours of work, but nothing in this Agreement shall be construed as a guarantee of specified numbers of hours of work either per day or per week. The work week shall consist of a period of seven (7) consecutive twenty-four (24) hour periods.

The normal work week shall be a minimum of forty (40) hours consisting of five (5) days of eight (8) hours per day, Monday through Friday. Each employee will be assigned to a shift with designated times for beginning and ending. The shift shall be an eight hour and thirty minute period which shall include a thirty minute unpaid lunch period.

Normal shifts are:

First Shift Beginning at or after 4:00 a.m. but before 12:00 p.m.

Second Shift Beginning at or after 12:00 p.m. but before 8:00 p.m.

Third Shift Beginning at or after 8:00 p.m. but before 4:00 a.m.

Determination of starting time and hours of work, shall be made by the Company and such schedules may be changed from time to time to suit varying conditions of business. The Company will provide as much

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advance notice to the employees as possible. Employees posted shifts shall not be changed to avoid the payment of overtime. This Section is not subject to Article 4.

Section 6.2 Rest Periods. Employees will be allowed one scheduled fifteen (15) minute rest period before and one fifteen (15) minute rest period after lunch in each complete scheduled work day, the time will be established by the Company. Determination of starting time and hours of work shall be made by the Company and such schedules may be changed from time to time to suit varying conditions of business.

Section 6.3 Employees shall work up to the start of the rest and lunch periods and be at their place of work at the end of their rest and lunch periods. Depending on operations and schedules, employees may be required to work through their rest and/or lunch periods. Employees required to work through their break or lunch period shall with mutual agreement with site manager have the option to take the break/lunch later or leave work early.

Section 6.4 The Company may, providing there are no employees on active layoff status in the classification, to accommodate schedule requirements, hire employees specifically to work a daily or weekly work schedule which is less than the current regular normal workday or workweek.

Section 6.4. (a) It is not the company’s intent to employee more part time workers than full time workers in any job classification at any particular site.

Section 6.5 Non Standard Work Week. It is agreed that the company may schedule employees to work a non-standard work schedule consisting of shifts of longer duration than those specified, work weeks of less than five full consecutive days, or non-consecutive days off, for a total work week of 40 hours. By way of illustration, but not in limitation, a non-standard work schedule could be four 10-hour days. Any other matters relating to non-standard work schedules will be subject to mutual agreement by the parties.

ARTICLE 7

OVERTIME

Section 7.1 Overtime. In order for the Company to meet its support obligations, certain employees from time to time will be required to work overtime as well as shift work during the week, on holidays and weekends. When it becomes necessary to schedule overtime, it will first be offered to qualified employees on a voluntary basis within the work group/work area where the overtime requirement exists. The Company will attempt to equalize overtime among those qualified employees. If management fails to obtain a sufficient number of volunteers to meet the overtime requirement(s), then qualified employees may be directed to work the necessary overtime within the work group/work area where the overtime requirement exists, in reverse seniority order. The Company will provide as much advance notice of overtime requirements as possible.

The Company shall not require an employee to work overtime who has worked, three consecutive weekends (either Saturday or Sunday), or 160 overtime hours in the calendar quarter, except in extraordinary circumstances mandated by the customer. Hours worked on any off-site assignment shall not be included in this provision.

Section 7.2 Overtime shall be paid at one and one-half (1.5) times an employee’s base rate plus lead pay if applicable, for all hours worked in excess of forty (40) hours in the workweek, including Saturday and Sunday.

Section 7.3 Wage Payment Basis. Employees shall be paid for time worked computed to the nearest one-tenth hour.

Section 7.4 There shall be no pyramiding of overtime and/or other premium payments. No overtime shall be worked except by direction of the Company’s appropriate management.

Section 7.5 In any dispute regarding any claim that an employee was not given an opportunity to work overtime, the only award, if any, will be that the employee shall be provided an opportunity to work such overtime at the next overtime opportunity.

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ARTICLE 8

LEAVE OF ABSENCE

Section 8.1 Authorized Leaves of Absence (not to exceed 30 months). For the time period indicated in each instance, leaves of absence (without pay except to the extent vacation credit or sick leave credit can be used and is used under and in accordance with Articles 16 and 17) shall be granted to an employee on the active payroll:

8.1(a) In case of accident or illness, for the period of time the injury or illness requires that the employee be absent from work. The Company may require satisfactory proof of such injury or illness.

8.1(b) In pregnancy cases, upon request of the employee or at such time as leave shall be mandatory under any applicable law.

8.1(c) For the period of time necessary to serve in the Armed Forces of the United States.

8.1(d) When he is appointed by the President or Directing Representative of the Union representing the particular unit, or selected to a full-time Union position, for the period of time necessary to fill such position.

8.1(e) The Company may grant leaves of absence without pay for other reasons that the Company considers valid. Should the request for Leave of Absence be rejected by the Company, the reason will be discussed with the employee.

8.1(f) Requests for leaves of absence must be made in writing to the Company and specify the reason for the absence.

Section 8.2 Return from Leave of Absence. An employee who applies for return from leave of absence on or before the expiration date of his leave will be returned in accordance with the following:

8.2(a) When an employee returns from a leave of absence that was granted due to industrial injury or industrial illness and is medically able to perform the job which was last held, 8.2(a)(1) The employee will be returned to that job if this does not conflict with Article 12, 8.2(a)(2) If this does conflict with Article 12, the employee will be considered for any job that he is qualified and able to perform, or (if a surplus occurred that would have affected him during such leave) be subjected to surplusing procedures with Article 12.

8.2(b) When an employee returns from a leave of absence described in paragraph 8.2(a) and is not able to perform the job last held due to medical limitation, he will be considered for any job that he is qualified and able to perform, or (if a surplus occurred that would have affected him during such leave) be subjected to surplusing procedures, all in accordance with Article 12

8.2(c) When an employee returns from a leave of absence that was granted due to non-industrial injury or illness, and the period of the leave has not exceeded one year, and the employee is able to perform the job last held, the steps and procedures of subparagraphs 8.2(a)(1) and 8.2(a)(2), limitation will apply.

8.2(d) When an employee returns from a leave of absence described in paragraph 8.2(c) and is medically not able to perform the job which he last held due to medical limitation, he will be considered for any job which he is qualified and able to perform; otherwise, he may be placed on layoff, in accordance with Article 12.

8.2(e) If leave was granted due to non-industrial injury or illness and the period of leave is in excess of one year, the employee may be returned to the job title / classification last held providing there is an opening in such job title and placement in such opening is not inconsistent with Article 12;

otherwise, he may be placed on layoff.

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8.2(f) If leave was granted for military service, the provisions of applicable laws shall apply.

8.2(g) If leave, irrespective of length, was granted for any reason other than those stated in paragraphs 8.2(a) to 8.2(f) inclusive, the employee will be returned to the job title last held providing there is an opening in such job title and placement in such opening is not inconsistent with Article 12;

otherwise, the employee may be placed on layoff.

ARTICLE 9

SAFETY

Section 9.1 Health and Safety. The Company will continue to make reasonable provisions for the safety and health of employees. The Union shall have the right to confer with the Company on matters pertaining to safety of the employees.

Section 9.2 Requirement of Medical Examination. In the interest of continued safety of individuals and their fellow employees, any applicant for employment or any employee may be required through Government regulations or by the Company to undergo a medical examination by a doctor of the Company's selection. If the diagnosis or examination results furnished by the Company doctor are not satisfactory to the employee, he may obtain an opinion from his own doctor. If a disagreement still exists, an additional doctor, mutually agreed upon by the Company and the Union, will be retained for his opinion. The Company shall pay for the services of the mutually agreed upon doctor. The cost incurred for services of all other non-Company physicians shall be the sole responsibility of the employee who gave rise to the dispute.

ARTICLE 10

SEPARABILITY

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

The Company and the Union shall meet as soon as possible after the enactment of such legislation or decree to reestablish compliance.

ARTICLE 11

MISCELLANEOUS

Section 11.1 Sabotage. The Union agrees to report to the Company when it has knowledge of any acts of sabotage or damage to or the unauthorized or unlawful taking of Company, Government, customer or any other person's or employee's property. The Union further agrees, if any such acts occur, to use its best efforts in assisting to identify the guilty person or persons and notify the Company of its investigation.

Section 11.2 Security Clearance. Nothing in this Agreement shall require the Company to employ or continue to employ or give access to any of its facilities or work locations, any person or persons to whom the cognizant Security Agency, in the interest of security against espionage or subversive activity, refuses to give access to classified information and/or work. However, the Company will give consideration to assigning an employee in his job title to an area for which he is qualified and a clearance is not required.

Section 11.3 Non-Discrimination. All terms and conditions of employment included in this Agreement shall be administered and applied without regard to race, color, religion, national origin, status as a disabled or Vietnam era veteran, age, sex, or the presence of a handicap except in those instances where age, sex or the absence of a handicap may constitute a bona ride occupational qualification. If administration and application of the contract is not in contravention of Federal laws, such administration shall not be considered discrimination under this Section 11.3.

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Notwithstanding any other provision of Section 11.3 of this Agreement, a grievance alleging a violation of this Section 11.3 shall be subject to the grievance procedure and arbitration of Article 4 only if it is filed on behalf of and pertains to a single employee. Class grievances based on alleged violation of this Section 11.3 shall not be subject to the grievance procedure and arbitration under this Agreement.

Section 11.4 Successor 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.

Section 11.5 Performance of Work. Managers may perform the duties of employees in the bargaining unit, in emergency situations, or for the purpose of instructing employees. Supervisors or other non-represented employees are not to perform any unit work solely to prevent a unit employee from earning overtime. The present practice of managers performing bargaining unit work will continue. It is further agreed that this provision is not intended to displace any full time bargaining unit employee.

Section 11.6 Bargaining Unit Status Report. A seniority list will be provided to the Union Steward by the Company upon request. The report will include the following information:

(a) Employee name

(b) Identification Number

(c) Job number and title

(d) Seniority date

(e) Employee’s on active layoff

Section 11.7 Masculine - Feminine References. In construing and interpreting the language of this Agreement, reference to the masculine such as “he”, “him”, or “his” shall include reference to the feminine.

Section 11.8 Contributions to Machinists Nonpartisan Political League. Upon receipt by the Company of a signed voluntary authorization by an employee, on a form approved by the Company, requesting that there be deductions made from his wages, in a monthly amount designated by the employee, such deductions to be forwarded to the Union for use by the Machinists Nonpartisan Political League, the Company will thereafter make such deductions and forward them to the Machinists Nonpartisan Political League, in care of the Union. Such authorization will remain in effect for the duration of this Agreement, unless earlier canceled in writing by the employee.

Section 11.9 Contributions to Guide Dogs of America. Upon receipt by the Company of a signed voluntary authorization by an employee, on a form approved by the Company, requesting that there be deductions made from his wages, in a monthly amount designated by the employee, such deductions to be forwarded to the Union. Such authorization will remain in effect for the duration of this Agreement, unless earlier canceled in writing by the employee.

Section 11.10 The Company will continue its present practice of providing apparel and required safety equipment for employees.

ARTICLE 12

WORK FORCE ADMINISTRATION

Section 12.1 Surplus Action.

12.1(a) In effecting a reduction in force within a job classification, the following procedure shall be followed. The first selection would be probationary employees, followed by part time employees, followed by voluntary layoff in the classification, followed by full time employees in the classification in reverse seniority order.

12.1(b) Affected full time employees referenced in 12.1(a), will be offered a lateral or lower job classification providing they have the required qualifications and certifications on the date of the surplus notification for that job if their seniority permits.

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Section 12.2 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 and are eligible for re-certification for that job.

12.2(a) Employees will be notified of recall in writing by certified mail to their last known address on the Company’s records, with a copy to the Union, and the employee will be required to report to work within fourteen (14) calendar days following receipt of the written notice. Failure to do so will result in automatic loss of seniority and the employee will be terminated. It is the sole responsibility of the employee to keep the Company properly informed of his/her address and telephone number.

Section 12.3 Temporary Layoffs. When the Company determines it is necessary to reduce the number of employees working within a job classification, employees may be temporarily laid-off for not more than 14 calendar days within a 60 calendar day period. Such layoff shall be in the reverse order of seniority. The

Company agrees that the union will be notified when possible in advance.

Section 12.4 Temporary Assignment. The Company may temporarily assign employees to perform work assignments described for other job classifications.

Section 12.5 Temporary Transfer The parties agreed that the Company maintains the right to assign employees on a temporary basis to assignments…