HICKAM_F-22A_18FEB16.pdf

COLLECTIVE BARGAINING

AGREEMENT

BETWEEN

CHEN EGA FEDERAL SYSTEMS (CFS), LLC

And

THE INTERNATIONAL ASSOCIATION OF

MACHINISTS AND AEROSPACE WORKERS, AFL-CIO

HAWAII FEDERAL AND AMALGAMATED LOCAL LODGE 1998

F-22A DISTRIBUTED MISSION OPERATIONS {DMO}

PILOT INSTRUCTOR, SECURITY MANAGEMENT

AND ACADEMIC SUPPORT SERVICES

Joint Base Pearl Harbor Hickam, Hawaii

Effective

January 29, 2016 - July 22, 2018

COLLECTIVE BARGAINING AGREEMENT

BETWEEN

CHENEGA FEDERAL SYSTEMS (CFS), LLC

AND

THE INTERNATIONAL ASSOCIATION OF MACHINISTS

AND AEROSPACE WORKERS,

AFL-CIO

HAWAII FEDERAL AND AMALGAMATED LOCAL LODGE 1998

AGREEMENT

This AGREEMENT is made and entered into this 9th day of February, 2016, by and between Chenega Federal Systems, LLC ("CFS"), an Alaskan company, located, hereinafter referred to as the "Company", and the International Association of Machinists and Aerospace Workers (!AM), AFL-CIO, Hawaii Federal and Amalgamated Local Lodge 1998 hereinafter jointly and severally referred to as the "Union".

ARTICLE 1

RECOGNITION

Section 1.1. The Company recognizes The International Association of Machinists and Aerospace workers, AFL-CIO, Local 1998, as the sole and exclusive representative and bargaining agent for the purposes of collective bargaining with respect to rates of pay, wages, hours, and other conditions of employment for all full-time and regular part-time Mission Training Center employees, employed by the Company on contract #FA5215-13-C-7008, successor contracts at its facility located at Joint Base Pearl Harbor Hickam, Hawaii; but excluding all office clerical employees, exempt employees, confidential employees, technical employees, professional employees, managerial employees and guards and supervisors as defined in the Act, and all other employees, as voluntarily agreed by the company to in response to NLRB 20-

RC-166277.

ARTICLE 2

MANAGEMENT'S RIGHTS

The Company has and will retain the right to manage the organization of work and employees except for those items expressly covered by the language of this agreement.

ARTICLE 3

UNION AND COMPANY RELATIONS

Section 3.1 Business Representatives - Access to Site. Portions of the site where bargaining unit employees are normally assigned during business hours is a government classified facility that might limit I restrict access to non-contract employees. Subject to such government facility restrictions, the Company will not impose regulations which will render the intent of this provision ineffective. The Union shall be allowed access for purposes including but not limited to visiting the membership, investigating specific grievances or complaints related to the provisions of this Agreement or insuring the terms and conditions of the Agreement are being complied with. The Union shall keep the Company VP of Human Resources currently informed in writing of the name of the accredited Business Representative or other designated Union Representative. The Business Representative shall notify the Human Resources Manager or his designee prior to any visit to the various locations or site. The necessary Company badges and credentials will be given to the Business Representative. Visits shall be made subject to such regulations as maybe made from time to time by the Company and the Client.

Section 3.2 Shop Stewards. The Union may select not to exceed, except by mutual agreement, two employees as Shop Stewards. The Union may designate one Steward to act as Chief Steward. An employee while serving as a steward shall not be surplused, unless the employee is the only employee in the surplused classification. Stewards shall be authorized to participate in new employee orientation and shall be authorized to collect membership forms while in a paid status.

Section 3.3 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 legitimate reason for delaying the contact or the investigation due to safety conditions or the fact that the employee is needed to perform an operation in progress. 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 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 3.4 Bulletin Boards. The Company will provide bulletin boards for the use of the Union at locations mutually agreed to and government approved if on government worksite. 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. Notices may not disparage the Company, the Client or other employees, Section 3.5 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

NON-DISCRIMINATION

Section 4.1: Neither the Company nor the Union shall discriminate against, or in favor of any employee in the bargaining unit on the basis of race, religion, color, sex, sexual orientation, national origin, age, military veteran status, marital status, or disability with respect to the application of the terms of this Agreement. If administration and application of the contract is not in contravention of Federal laws, such administration shall not be considered discrimination under this Section 4.1.

Section 4.2: Neither the Company nor the Union shall interfere with the right of employees covered by this Agreement to become or refrain from becoming members of the Union, and neither the Company nor the Union shall discriminate against any such employee because of membership or non-membership in any employee organization.

Section 4.3: All such claims under this Article 4 may be submitted to the grievance and arbitration procedures of this Agreement as the sole and exclusive remedy for violations. Arbitrators shall apply appropriate law in rendering decisions based upon claims of discrimination. Any employee who elects to use a remedy at law or agency to seek a remedy outside the grievance and arbitration procedures of this agreement will not be entitled to Arbitration within the context of this provision, and the Union agrees that such matters shall not be pursued through the grievance and arbitration procedures on behalf of the employee.

ARTICLE 5

UNION SECURITY

Section 5.1: Insofar as permitted by state and federal law, all employees covered by this Agreement shall within thirty-one (31) calendar days of employment either become and remain a member of the Union or tender to the Union a fair share equivalent to regular union dues and initiation fees as a condition of continued employment.

Section 5.2: Union dues, initiation fees, and reinstatement fees shall be deducted out of current net earnings payable to an employee upon receipt of and in accordance with a voluntary deduction authorization. The Company shall remit payroll deductions to the Union by the fifteenth (15'h) day of each month. Authorizations shall be duly executed by the employee on a card provided by the Union and shall continue deductions until such authorization is duly revoked by the employee. In the event part time employees are working, the company shall up to the 2Q'h day of the month.

The Company is entitled to rely upon notification from the Union, of the amount of money due to the Union by an employee.

Section 5.3: Insofar as permitted by state and federal law, any employee who fails to tender the agency fee or periodic dues uniformly required shall be notified in writing of the employee's delinquency. A copy of such communication shall be provided to the Company not later than fifteen (15) days prior to a request that the Company terminate the employee. In the event termination of such employee would cause the Company to not be able to fulfill its obligations to the Client, the Company shall have up to 60 days in order to hire a qualified replacement employee. Terminations of this nature are not subject to the grievance procedure.

Section 5.4: The Union agrees to and does hereby hold the Company harmless from any and all liability, responsibility, or damage for deduction, payment, authorization, or notification as provided for in this Article. The Union assumes full responsibility for the disposition of the funds so deducted when turned over to the General Secretary-Treasurer of the Union.

ARTICLE 6

STRIKES AND LOCKOUTS

So long as this Agreement is in effect, the Union will not engage in, authorize, or recognize any strike, picketing, sympathy strike, slowdown, stoppage of work, planned inefficiency or any other curtailment of work or restriction or interference with production, for any reason whatsoever.

Employees who violate the provisions of this section shall be subject to discharge or any lesser disciplinary action the Company shall impose. Upon learning of any unauthorized strike, picketing, sympathy strike, slowdown, stoppage of work, planned inefficiency or any other curtailment of work or restriction or interference with production, the Union shall take all necessary steps to avert or bring such activity to a prompt termination. So long as this Agreement is in effect the Company shall not cause or engage in any lockout.

ARTICLE 7

GRIEVANCE PROCEDURE AND ARBITRATION

Section 7.1: A grievance is (1) a dispute regarding the interpretation, application, or alleged breach of any of the terms of this Agreement; or (2) an alleged improper discipline or discharge of an employee. All grievances shall be submitted by the employee, the Union, or the Company in accordance with the grievance procedure set forth herein.

Section 7.2: Grievances shall only be recognized or processed based upon facts or events which occurred within seven (7) calendar days of when the employee, the Union, or the Company knew or by reasonable diligence should have known of the occurrence. All grievances shall state: 1) the nature of the grievance, 2) the article(s) of the Agreement alleged to have been violated by appropriate reference, and 3) the remedy requested. These steps and time limits shall be followed in all cases unless modified in writing by the Company and the Union. Failure by the grieving party to follow the procedural steps herein and time limits set forth shall cause the grievance to be dismissed, and cannot be re-filed for the current offense. Failure by the responding party to follow the procedural steps herein and the time limits Set forth shall permit the grieving party to proceed to the next Step. Any time limits may be extended for up to seven (7) calendar days by the written mutual agreement of the parties.

The Steward and grievant shall be on paid time to attend any grievance related meeting or to consult with the Union's Representative. The Union's Representative will have the right to attend any grievance meeting, discussion or investigation with the Steward, employee and/or Company Representative.

Section 7.3: Grievances shall be resolved in the following manner:

(a) Step One -- Between the Employee and the Employee's immediate supervisor/designee. The responding party shall answer within seven (7) calendar days.

(b) Step Two -- Between the Chief Steward and the next higher level of management or designated representative. Appeal to Step Two must be submitted in writing within seven (7) calendar days of the Step One response. The Step Two grievance shall be reduced to writing by the grieving party and shall state: 1) the nature of the grievance, 2) the article(s) of the Agreement alleged to have been violated by appropriate reference, and 3) the remedy requested. A meeting shall be held within seven (7) calendar days of the appeal, and the responding party shall give his/her written answer within seven (7) calendar days thereafter. Company initiated grievances shall begin at Step 2. Either party may require the grievant's attendance at such meeting.

(c) Step Three -- Between the Chief Steward, District Business Rep and/or International Representative and the Sr. VP of Operations and/or his HR designee

(see below). Appeal to Step Three must be submitted in writing within seven (7) calendar days of the Step Two response. A meeting shall be held within fourteen

(14) calendar days of the appeal, and the responding party shall answer in writing within seven (7) calendar days thereafter.

VP Human Resources Sr VP of Operations

Sandi York Kenneth M. Buggs

Sandi.york@chenega.corn Mike.buggs@chenega.corn

703.493.9880 ext 108 703.493.9880 ext 122

(d) Step Four -- The grieving party may submit its written intent to arbitrate within thirty

(30) calendar days following the disposition of the Step Three response. Failure to do so shall constitute a waiver of the right of the appealing party to resort to the arbitration process in which case the grievance shall be deemed resolved with the Step 3 disposition and the matter shall be considered to be non-precedent setting.

Section 7.4: Any grievance not conforming to the provisions herein or not filed within the prescribed time limit or not advanced to the next step within the time limit in that step, shall be considered waived and non-precedent setting. Any grievance certified to arbitration which is not scheduled within one year months of the certification of the arbitration will be considered closed and is ineligible for arbitration consideration.

Section 7.5: The Party moving to arbitration shall immediately request, from the Federal Mediation and Conciliation Service, a list of at least seven (7) arbitrators located in Honolulu, Hawaii. Upon receipt of the FMCS panel of arbitrators listing, the parties shall meet within seven

(7) calendar days and shall alternatively strike a name from the list until only one (1) name remains and, that person shall be designated by the parties as the arbitrator. The party first to strike shall be decided by lot and alternate thereafter.

Section 7.6: The arbitrator shall not have the power to add to, subtract from, or modify any of the terms of this Agreement, nor to substitute his/her discretion for that preserved in the Agreement.

The arbitrator shall be bound entirely by the records presented in the form of evidence presented at the hearing and this Agreement. The decision of the arbitrator shall be final and binding upon the parties, and shall be rendered within ninety (90) days of the hearing.

Section 7.7: Any award of back wages shall be limited to the amount of wages (including

Health and Welfare) the employee would have otherwise earned from his straight time employment (regular overtime pay at the appropriate overtime rate of pay also included would the grievant have worked overtime within that time period) with the Employer minus any earnings from any source during the backpay period including unemployment compensation.

In the event the Client states in writing they will not allow the employee to return to the site, the

Company will take all reasonable steps to rectify the situation with the Client. If there is no resolution, the Company will offer the employee a position at another site within 90 days for which the employee is qualified and backpay will cease. If no such position is available, the Company's obligation to reinstate the employee or pay back pay will cease.

Section 7.8: The compensation and expenses of the arbitrator and meeting room costs shall be borne equally. Costs incurred by the respective parties for their witnesses, other than bargaining unit employees shall be borne by the respective party, and the cost of any report or transcript shall be divided equally only if furnished by mutual consent.

ARTICLE 8

SENIORITY

Section 8.1 :

Seniority shall be the length of continuous service from the employee's last date of hire by the Company and any predecessor Contractors on contract #FA5215-13-C-7008 and any predecessor contracts at the Hickam location. Where qualifications, productivity and dependability are substantially equal, seniority shall be the deciding factor in determining the order of layoff and recall as provided for in this Agreement.

Section 8.2: New employees and those hired after a break in continuity of service shall be regarded as probationary employees for the first sixty (60) days and shall not accrue seniority under this Agreement. The Company shall have the sole right to discipline, layoff, suspend or terminate probationary employees without limitation by the provisions of this Agreement. Upon successful completion of the probationary period, the employee shall be placed on the seniority list and shall be given a seniority date which is retroactive 60 days days from the date seniority is acquired.

Section 8.3 Accumulation Seniority. Seniority shall accumulate for:

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

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

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

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

(e) Time lost by reason of industrial injury, or industrial illness not to exceed the time limits on layoff statue provided in 8.3(h);

(f) Time spent on authorized leave of absence granted because of FMLA or authorized medical leave, not to exceed time limit permitted by law;

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

(h) Time spent on layoff for a period not to exceed three (3) 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 8.4 If there is a tie in seniority date, 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.

A seniority list will be maintained by the Company and shall be made available to the appropriate Union officials upon request.

Section 8.5: The seniority of an employee shall be terminated for any of the following reasons:

(a) the employee quits or retires;

(b) the employee is discharged for just cause;

(c) the employee is absent from work for three (3) consecutive working days without properly notifying the Company with a sufficient justification prior to the end of the employee's shift on the third day;

(d) the employee fails to return within three (3) consecutive working days after being notified to report for work following a layoff;

(e) the employee gives false information on the employment application, a false reason for obtaining a leave of absence, is gainfully employed elsewhere during the period of any leave of absence(subject to discussion with the Union), or fails to report to work upon the termination of any leave of absence;

(f) the employee is laid off for a continuous period in excess of three (3) years (or for employees with less than one (1) year seniority, layoff in excess of one (1) year).

Section 8.6: Transfers To and From the Bargaining Unit.

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

8.6(b) Employees transferring to salaried positions other than that described in Section 8.5, shall retain their bargaining unit seniority but shall not accumulate additional seniority while they remain in those salaried positions.

Section 8. 7: Employees shall notify the Company in writing of their proper address and phone number or any change of name, phone number or address. All notices given under this Article by the Company shall be by registered mail. The Company shall be entitled to rely upon the last known address and phone number shown in the Office records.

ARTICLE 9

TRANSFERS, LAYOFF AND RECALL

Section 9.1: Whenever the Company finds it necessary to reduce the work force, probationary employees and then part-time at that location in the classification from which the layoff occurs shall be laid off first.

Section 9.2: Whenever the Company finds it necessary to further reduce the work force in any classification at that location, the employee in such classification having the least seniority shall be displaced first.

Section 9.3: Except in the case of a temporary layoff, which will not exceed thirty (30) consecutive calendar days, any seniority employee who is displaced due to a reduction in the work force, may, if he/she has greater seniority, displace the employee having the least seniority at that location in an equal or lower rated classification provided the employee has previously worked in the classification and is able to satisfactorily perform the work of the new classification.

Section 9.4: Employees, who have been laid off will be recalled into the classification previously held in the reverse order in which they were laid off.

Section 9.5: Employee(s) placed into a lateral or lower rated Job due to displacing a less senior employee shall receive the rate of pay assigned to the lateral or lower rated Job.

Section 9.6: The Chief Steward shall be deemed to have seniority over all employees covered by this Agreement.

Section 9. 7: In the event the Company determines that there is a need for temporary layoffs and/or furloughs, the Union will be advised of such fact and provided with information regarding the Company's staffing requirements. After such notification, the Company will be permitted to take necessary actions to implement such layoffs/furloughs. The decision to implement such layoffs/furloughs shall not be subject to the grievance/arbitration provisions of this Agreement.

Seniority employees displaced due to temporary layoffs and/or furloughs may not displace less senior employees in equal or lower rated classifications. Temporary layoffs and/or furloughs shall not exceed thirty (30) calendar days. When the Employer is reimbursed by the government after a temporary layoff or furlough, the employees shall also be paid their lost wages, or the difference if they received unemployment benefits for any lost time.

Section 9.8: The Company may reassign an employee to another job classification in accordance with the following procedure.

A. When employees are absent from work due to vacations, leaves of absence, or for any other reason, the Company may reassign an employee to fill such Job for a period not to exceed the length of the absence unless extended by agreement between the

Company and the Union. The employee will continue to receive his/her regular rate of pay while on temporary assignment.

B. Where a vacancy in a Job exists, the Company may reassign an employee to fill such Job tor a period not to exceed thirty (30) consecutive calendar days, unless such period of time is extended by agreement between the Company and the Union. The employee will continue to receive his/her regular rate of pay while on temporary assignment.

ARTICLE 10-

WORKWEEK, HOURS OF WORK, SHIFTS

Section 10.1 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, Sunday through Saturday. The normal work week shall be a minimum of forty (40) hours consisting of five consecutive (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 shifts in which the employee is assigned will be a continuous 8.5 hour window within the availability period of 0600-2200 Monday through Friday excluding federal legal holidays. The company will provide a minimum of 24-hours notice for a change of shift in this training window.

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 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 7.

Section 10.2 Lunch 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. The Company will ensure that each employee has the opportunity to take one thirty (30) minute unpaid lunch period during each shift.

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 10.3 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 and take them at a later or earlier time during the shift.

Section 10.4 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.

ARTICLE 11 -

OVERTIME

Section 11.1 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 100 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 11.2 Overtime shall be paid in accordance with state law at one and one-half (1.5) times an employee's base rate, plus shift differential and lead pay if applicable. Overtime shall also be paid for hours worked outside of the established availability window. All worked hours shall be credited as hours worked for the purpose of overtime calculation.

Section 11.3 Wage Payment Basis. Employees shall be paid for time worked computed to the nearest one-tenth hour.

Section 11.4 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 11.5 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.

ARTICLE 12

LEAVES OF ABSENCE WITHOUT PAY

Section 12.1:

All leaves of absence shall be processed in the following manner:

12.1 (a) Leaves of absence without pay may be requested and shall be subject to approval based on operational requirements for reasons such as but not limited to:

12.1 (b) 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.

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

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

12.1 (e) For Union Business.

12.1 (f) 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.

Requests shall be submitted in writing at least seven (7) calendar days prior to the date such desired leave shall take effect, except in cases of emergency. It is understood by the parties that management is under no obligation to approve such requests, except as required by law or due to medical emergency. Requests shall include:

1. Reasons for such leave;

2. Effective date of such leave;

3. Date of-return to work;

The written request for a leave of absence shall be submitted, in the first instance to the Program Manager.

If the request for leave of absence is approved, a copy of the approved leave of absence will be given to the employee involved prior to leave.

Section 12.2: All leaves of absence shall be subject to the following general provisions:

12.2(a) Seniority shall accumulate during the period of any approved leave of absence subject to the provisions of this Agreement.

12.2(b). Any employee who receives a leave of absence for a definite period of time shall not be entitled to return to work until the expiration of such leave unless the Company elects to waive this provision.

12.2(c). An employee must exhaust vacation or personal time off prior to a leave of absence, but shall be able to retain a maximum of forty (40) hours of vacation or personal time off whichever the employee prefers.

Section 12.3: Any employee may be granted a leave of absence without pay for a specific period not exceeding thirty (30) calendar days if, in the opinion of the Company, good and sufficient reasons exist to warrant such leave.

Section 12.4: Employees are eligible for a Family/Medical Leave (FML) in accordance with Federal and State law and the conditions of any applicable company policy in effect at the time of leave.

Section 12.5: The Company will comply with all Federal and State posting requirements and responsibilities under the Family and Medical Leave Act.

ARTICLE 13

SAFETY

Section 13.1 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. Employees agree to comply with all Company health and safety regulations and applicable health and safety laws and regulations.

Section 13.2 Requirement of Medical Examination. In the interest of continued safety of individuals and their fellow employees, 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.

Section 13.3. If personal protective equipment is necessary for the mission, the requests for purchase shall be made of the Program Manager. It is understood any related personal protective equipment that is necessary shall be obtained at the expense of the company.

ARTICLE 14

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 15

SECURITY CLEARANCE

Section 15.1: It is understood by and between the parties that, as a necessary condition of employment, employees shall be subject to investigation for security clearances, special access requests, national agency check and/or unescorted entry authorization under regulations prescribed by the Department of Defense, Department of Homeland Security, or other agencies of the United States Government. Failure to apply, maintain or gain a security clearance and/or the denial or loss of required clearances and unescorted entry authorization by such governmental agency shall be just cause for release from the Company due to inability to meet job requirements. If an employee is appealing the denial of a security clearance the Company will reassign the employee to an appropriate set of duties not requiring security clearance, if available. Terminations of this nature shall not be subject to the grievance procedures.

Section 15.2: The Company will reinstate the seniority of an employee whose denied security clearance and/or unescorted entry authorization is reinstated by the U.S. Government, while the employee is still subject to recall, where a vacancy exists. An employee whose security clearance and/or unescorted entry authorization is denied or revoked shall be solely responsible for initiating and fulfilling all actions associated with the appeal process per guidance and direction provided by the Customer. The employee may seek the assistance of the Union in the appeal process.

Any employee whose seniority is reinstated under this provision will be reinstated in his previously held job classification where a vacancy exists. If a vacancy does not exist in the employee's previously held classification, he may be reinstated into any lower classification where a vacancy exists and the employee is qualified to perform the required job duties without training.

ARTICLE 16

SUBSISTENCE WHEN TRANSFERRING OR NEW HIRE TO HICKAM

When an employee is to be relocated I transferred to Hickam, the Company will provide a travel allowance and subsistence to include:

• Lowest cost, non-refundable airfare tickets for the employee, spouse, children, and up to two pet(s),

• Hotel accommodation until a home can be located up to thirty days (30) days,

• A maximum relocation of a total of 10,000 lbs. of House Hold Goods and Vehicle (vehicle weight is included in the total max weight of 10,000 lbs.')

• Car rental for up to 30 days

• Per Diem for the employee in accordance with the Joint Travel Regulations (JTR) for maximum of 30 days

ARTICLE 17

JURY AND WITNESS DUTY

Employees summoned to serve as a juror or as a witness for a case in which he/she is not a party, shall be paid at the regular rate for absences during the normally scheduled workday.

Employees shall provide a copy of the summons for Jury duty to the Company within one (1) working day of receipt in order to be eligible for payment under this Article. The prorated basis will be established based on the normal work schedule of the part time employee. Proof of jury service must be submitted to the Company upon return to work. Employees summoned to jury duty that are released by the Court with less than four (4) hours of jury duty service shall return to work, so long as they can travel to work and perform a minimum of four (4) hours of work before the end of their shift. Employees scheduled to work on an off shift will be moved to first shift for the duration of the jury duty.

ARTICLE 18

SHORT-TERM MILITARY DUTY

An employee who is a member of a reserve component of the Armed Forces, who is required to enter active annual training duty or temporary special services should promptly notify their supervisor and provide necessary documentation to the HR Department. The Company will provide payment for the amount of straight-time earnings actually lost, which is the difference between normal gross wages based on the employee's regular rate and the amount actually received. Timecards will be coded to LWOP noting in timecard military leave and dates. Payment of up to 1 O days per calendar year will be made on the next normally scheduled pay cycle following the LES being submitted to HR. Such items as subsistence (does not include allowance for quarters}, uniform and travel allowance shall not be included in determining pay received from state or federal government.

Section 19.1 Base Rate Structure.

Job Classification Current Wages

Pilot Instructor $57.69

Security $36.06 Manager/Scheduler

ARTICLE 19

RATES OF PAY

Equity Adjustment 3/1/2016* 3/1/2016* $11.81 $69.50

$13.94 $50.00

1/1/2017 1/1/2018 GWI 3% GWl3%

$71.58 $73.73

$51.59 $53.14

*Equity adjustment is a one-time adjustment effective upon contract modification expected to be March 1, 2016.

**A retention bonus $1,000 after taxes shall be paid to each employee within 30 days of contract modification date.

Section 19.2 Reassignments. When an employee is downgraded for any reason their hourly rate will be reduced to the hourly rate of the employee's classification.

Section 19.3 Paydays. Paydays for employees under this agreement on all shifts shall be paid bi-monthly on or before the1 Oth and the 251

" of the month, at which times they will be paid through the following days: hours worked from the 1st of the month through the 151" of the month will be paid on the 251

" of the month; hours worked from the 161 " through the last day of the month will be paid on the 101" of the following month.

Section 19.4 Report Time/Call-In Time. If an employee reports for work in accordance with instructions he shall receive a minimum of four (4) hours pay at his base rate. Report time will not apply in case of emergency shutdown arising out of any condition beyond the Company's control.

An employee who leaves work of his/her own volition, or because of incapacity (other than industrial injury}, or is discharged or suspended after beginning work, will be paid only for the number of hours actually worked during that day. An employee that leaves work because of incapacity due to industrial injury will be paid eight hours pay at this base rate.

Section 19.5 The decision to apply a pay additive shall be at the sole discretion of the company and such rights shall not be subject to the grievance procedure. An employee assigned in writing by the company for a period of 40 consecutive hours to any of the additives shall be paid a premium as identified below.

PROGRAM SUPPORT ADDITIVES

LEAD $3.00 per hour

Section 19.6 Effective Date of Increases. The actual date of all increases as identified in this Article will be the beginning of the first pay period following the effective date of change as shown in the wage rate tables.

Section 19. 7 Establishment of New Jobs. When new bargaining unit jobs are required that cannot be properly encompassed within an existing job classification or level within a classification, the parties agree to negotiate over the wage.

ARTICLE 20

VACATIONS

Section 20.1 General. It is the policy of the Company to grant vacation to employees. It is believed that a reasonable period of time away from the job is conducive to good health and well being and can have a refreshing effect that is to the advantage of the Company as well as the employee. Accordingly, it is management's responsibility to give each eligible employee the opportunity to take a vacation each year. Every effort will be made to ensure that each employee uses all his vacation credits for time off within the period of time available to him.

20.1(a) Vacation Accrual Schedule

Years of Hours

Increment I pay period Service: earned:

Oto 4 80 3.33 5 to 10 120 5.00 11 + 160 6.67

*May carry over 300 hours.

20.1 (b) A prorated award of vacation hours are made to employees at the completion of each pay period in accordance with the schedule as listed in 20.1 (a) of this Article. Credit will be given for the employee's total length of service which is continuous with the Company, and other predecessor contractors who performed similar work, and was determined to be a predecessor to the Company under the Service Contract Act.

Vacation hours will accrue from date of hire and be available for use upon accrual, 20.1(c) A maximum of 300 vacation hours may be carried forward each year, measured at the employee's anniversary date. Any vacation hours in excess of 300 hours in an employee's vacation account on the employee's anniversary date shall be paid out to the employee at the current wage rate.

20.1(d) Vacation hours shall not accrue during period on layoff, strike, or after the first thirty (30) calendar days of a leave of absence.

Section 20.2 Eligibility Conditions. The vacation eligibility date will be the later of last hire by the Company or predecessor contractor when service was continuous, or the most recent rehire date following a termination.

Section 20.3 Use of Vacation Credits. An employee shall use his accumulated vacation credit with pay at the rate in effect at the time his vacation begins, including shift differential where applicable, subject to the following conditions:

20.3(a) He shall request vacation dates on forms provided by the Company and the Company will endeavor to schedule his vacation as requested.

20.3(b) In instances where Company management believes the awarding of vacations as requested would interfere seriously with production requirements, the scheduling of vacations shall be as near to the dates requested as possible.

20.3(c) In scheduling vacations, the Company will attempt to meet its production requirements by use of employees on a voluntary basis, and, failing in this, the seniors will be given their preference of available vacation dates to the extent established vacation schedules will permit.

20.3(d) Termination Employees who terminate from the company will be paid out at the employee's base rate for all the vacation in their bank at the time of termination.

Section 20.4 Successor and Assigns. All employees have union seniority defined as his/her length of service to include the whole span of continuous service with the present contractor or successor and with the predecessor contractors in the performance of similar work at the same facility. Vacation and administrative actions will recognize the longevity based on the date of hire.

This Article shall be binding upon and shall inure to the benefit of the parties hereto, their successors and assigns.

ARTICLE 21

PERSONAL TIME OFF {PTO)

Section 21.1 Accumulation of Personal Time Off.

21.1 (a) Employees, on the active payroll shall earn personal time off at the rate of 3.33 hours per pay period not to exceed a maximum of 80 hours/year.

21.1 (b) An employee who cycles on his personal time eligibility date with unused personal time off available will continue to accumulate such credits from year to year to a maximum of one hundred and twenty (120) total hours.

21.1(c) Personal time off will not be accrued during period on layoff, strike, or after the first thirty calendar days of a leave of absence.

Section 21.2 Eligibility conditions.

21.2(a) The personal time off eligibility date of an employee shall be the date of last hire by the Company, which the exception of former employees who are rehired with reinstatement rights following military service or recalled from active layoff status, which will retain their previous personal time off eligibility dates.

21.2(b) An employee's personal time off eligibility date will not be affected by time spent on an approved leave of absence or other payroll classification.

Section 21.3 Use of Personal Time Off.

21.3(a) An employee shall be eligible to use personal time off credits as soon as credits have been awarded during his first year of employment. Payment for personal time off shall be at the employee's straight time base rate, including shift differential where applicable, not to exceed a maximum of eight (8) hours pay for any one day of absence.

21.3(b) All personal time off must be approved by the employee's supervisor.

21.3(c) When personal time off cannot be charged because the employee has exhausted all personal time off credits and he is not yet eligible for an award of his next personal time off credits, the employee may use available vacation credits or be granted leave without pay.

21.3(d) Personal Time Off will not be paid out upon termination, for any reason, by the employer.

Section 21.4 It is expressly agreed between the parties that the terms of this Agreement, and any accrual benefits, are binding on any successor contractor or successor employer whether said successor takes over all or part of the operation. Specifically, but without limitation, accrued, but untaken personal time off shall continue as an obligation of any successor contractor or successor employer, and the employees covered by the collective bargaining agreement shall continue to have their individual credit with said successor the full amount of personal time off accrued, and shall continue to accrue benefits of this article.

Section 21.5 Bereavement Leave. Up to five (5) days of Bereavement Leave with pay will be granted to an employee on the active payroll who, because of death in his immediate family, takes time off from work during his normal work schedule as such term is defined in Article 6 of this Agreement. Such pay shall be for eight (8) hours at his straight time base rate, including any applicable shift differential, for each such day off; however, such pay will not be applicable if the employee received pay for such days off under any other provision of this Agreement.

Bereavement leave must be taken within the thirty (30) days following the death, funeral or service. For the purpose of this section, the "immediate family" is defined as follows: spouse, mother, father, mother-in-law, father-in-law, sister-in-law, brother-in-law, children, brother, sister, son-in-law, daughter-in-law, grandparents, spouse's grandparents, grandchildren, stepmother, stepfather, stepchildren, stepbrother, stepsister, half-brother, and half-sister. The Company will require proof of death. In addition, an employee will be granted bereavement leave for a stillborn child if the employee provides a certificate of fetal death which has been certified by the state or attending physician.

ARTICLE 22

HOLIDAYS

Section 22.1 The following holidays shall be observed by the bargaining unit personnel:

New Years Day Martin Luther King Day

Presidents' Day Memorial Day

Independence Day Labor Day

Columbus Day Veterans' Day

Thanksgiving Day Christmas Day

1 Floating Holiday

The actual date of observance will be determined by the customer.

Any other day designated by Federal Statute, Executive Order and/or Presidential Proclamation.

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

Employees may elect to take the floating holiday, pending management approval, any day during the fiscal year. Employees shall also receive six paid "PACAF Down Days" to use on days when the customer declares a PACAF Down Day. An employee's request to use a PACAF Down Day may be denied if Mission requirements necessitate work be performed on that day.

Section 22.2 Unworked Holidays. Eligible employees shall receive eight (8) hours pay for unworked holidays (those holidays designated above), at their base rate in effect at the time the holiday occurs, plus shift differential and lead pay, if applicable.

Section 22.3 Worked Holidays. Employees who are required to work on the above named holidays shall receive the pay due them for the holidays plus their base rate for all hours worked on such holiday, plus shift differential and lead pay, if applicable, Section 22.4 Holidays During Vacation. Should a holiday occur while an employee is on vacation, the employee shall be allowed to claim Holiday Pay on the Holiday instead of using a vacation day.

Section 22.5 Employees on Non-Regular Workweek. For those employees who regularly work Saturday and/or Sunday, receiving two (2) consecutive days off during the week, the two (2) days off shall be treated as "Saturday" and "Sunday", in that order, for the purpose of this Article 18.

Should any of the holidays observed by the company occur on such a "Sunday", the following day shall be considered as a holiday for such employees.