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T-38C Avionics Post-Production Support (CLS), COMBS/FSR Personnel

COLLECTIVE BARGAINING

AGREEMENT

BETWEEN

BOEING AEROSPACE OPERATIONS

AND

INTERNATIONAL ASSOCIATION OF

MACHINISTS AND AEROSPACE WORKERS,

AFL-CIO

District Lodge 75: Local Lodge 50 (Columbus AFB, MS);

District Lodge 171: Local Lodge 898 (Vance AFB, OK);

District Lodge 776: Local Lodge 36 (Randolph AFB, TX), Local Lodge 776A (NAS Patuxent River, MD), Local Lodge 2341

(Laughlin AFB, TX), and Local Lodge 2771 (Sheppard AFB, TX)

Effective Date: January 30, 2015

TABLE OF CONTENTS

ARTICLE TITLE PAGE

Preamble 1

1 Recognition 1 2 Rights of Management 2 3 Union and Company Relations 2 4 Grievance Procedure and Arbitration 5 5 Seniority 8 6 Workweek, Hours of Work 10 7 Overtime 10 8 Leave of Absence 10 9 Safety 12

10 Separability 12 11 Miscellaneous 12 12 Workforce Administration 13 13 Jury and Witness Duty 14 14 Short-term Military Duty 15 15 Rates of Pay 15 16 Vacations 16 17 Bereavement 18 18 Holidays 18 19 Group Benefits 19 20 Savings Plan 21 21 Duration 22 Letters of Understanding Joint Company - Union Alcohol and Drug 24 Dependency Program Special Benefit Allowance 25 Machinists Custom Choice Benefits Program 26 Sick Leave

Holidays Probationary Employees

T-38 – 2015 NEGOTIATIONS January 15, 2015 [1]

COLLECTIVE BARGAINING AGREEMENT

BETWEEN

BOEING AEROSPACE OPERATIONS

INTERNATIONAL ASSOCIATION OF MACHINISTS

AND AEROSPACE WORKERS,

AFL-CIO

AND ITS

District Lodge 75: Local Lodge 50 (Columbus AFB, MS);

District Lodge 171: Local Lodge 898 (Vance AFB, OK);

District Lodge 776: Local Lodge 36 (Randolph AFB, TX), Local Lodge 776A (NAS Patuxent River, MD), Local Lodge 2341 (Laughlin AFB, TX), AND Local Lodge

2771 (Sheppard AFB, TX)

THIS AGREEMENT, dated as of the 30th day of January 2015, by and between Boeing Aerospace Operations (hereinafter referred to as “the Company”) and the International Association of Machinists and Aerospace Workers, AFL-CIO, District Lodge 75 and its Local Lodge 50 at Columbus AFB, MS; District Lodge 171 and its Local Lodge 89 at Vance AFB, OK; District Lodge 776 and its Local Lodge 36 at Randolph AFB, TX, Local Lodge 776A, NAS Patuxent River, MD, Local Lodge 2341 at Laughlin AFB, TX and Local Lodge 2771 at Sheppard AFB, TX (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 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

ARTICLE 1

RECOGNITION

Section 1.1 Recognition. The Company recognizes the International Association of Machinists and Aerospace workers, AFL-CIO, District Lodge 75 and its Local Lodge 50 at Columbus AFB, MS; District Lodge 171 and its Local Lodge 89 at Vance AFB, OK; District Lodge 776 and its Local Lodge 36 at Randolph AFB, TX, Local Lodge 2341 at Laughlin AFB, TX, District Lodge 776A at NAS Patuxent River, MD, and Local Lodge 2771 at Sheppard AFB, TX 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.

[2]

Section 1.2 Bargaining Unit. The Company and the Union agree that the employees covered by this agreement shall consist of the following: All employees employed by Boeing Aerospace Operations on the T38C Avionics Post-Production Support, under the United States Air Force Contract Number FA8211- 12-C-0001 at Columbus, Vance, Randolph, Laughlin and Sheppard AFB’s, and other locations covered under this contract including: Field Service Reps, Material Coordinator, excluding supervisors and managers, professional employees, administrative assistants, and guards as defined by the National Labor Relations Act.

ARTICLE 2

RIGHTS OF MANAGEMENT

The management of the Company and the direction of the work force is 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.

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 where no rare or unusual physical hazard is involved in proceeding to such location. 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 lockout of employees covered by this Agreement. Any claim by either party of a violation of this Section

3.2 shall not be subject to the grievance procedure or arbitration provisions of this Agreement and the party shall have the right to submit such claim 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 notice to the Company, and a copy sent by certified mail, return receipt requested, to the Union within such ten (10) day period.

[3]

3.3(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) As allowed 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(d) As allowed by law, 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 but 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 (15th) 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 (15th) day of that month.

3.3(e) As allowed by law, 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(f) 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 the employee’s 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(g) 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(h) The Company shall issue all Union payments such as Union dues, Initiation Fees, Political Action Contributions, etc. via electronic funds transfer process only (Direct Deposit). The Union shall ensure the company has been provided with a valid Bank Account and Routing number to set up the process. It will be the responsibility of the Union to submit all changes in Bank information to the Company immediately.

3.3(i) The Company shall issue all reports distributed to the Union electronically. Accounts will be established for a focal designated by the Union. It will be the responsibility of the Union to submit all changes in focals to the company.

3.3(j) Explanation to employees. Either the Company or the Union may explain to any employee or call to his attention, at any time, his rights and obligations under any or all provisions of this Article 3, Union and Company Relations.

[4]

Section 3.4 Payroll Deduction for Union Dues and Initiation Fee. The Company shall make payroll deductions for the Union's dues upon receipt by the office designated by the Company of a voluntary written assignment covering such deduction on a form mutually agreed to by the Union and the Company.

The deduction list will include each such employee's social security number or permanent employee number, name, and amount of deduction and such itemization will be forwarded to the Union. The Union dues shall be in an amount specified on such assignment and the amount will have been approved by the Company in advance as being administratively practicable.

Section 3.5 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, Union and Company Relations.

Section 3.6 Business Representative/Grand Lodge Representatives - Access to Work Site. The Business Representative/Grand Lodge Representative of the Union shall have access to the Company work sites 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 the Company will not impose regulations which will render the intent of this provision ineffective. The necessary Company badges and credentials will be available to the Business Representative/Grand Lodge Representative during working hours. The Union shall keep the Company Manager of Human Resources currently informed in writing of the name of the accredited Business Representative/Grand Lodge Representative.

Section 3.7 Shop Stewards. The Union may select not to exceed, except by mutual agreement, one employee as shop steward for each program at each location. The Union may also select one (1) alternate for each steward, but the alternate shall not function as a steward except in the absence of the regular shop steward. The Union shall keep the Company Manager of Human Resources currently informed in writing of the names of the accredited shop stewards. An employee while serving as a shop steward shall not be surplussed, transferred or loaned from his job classification so long as other employees remain in his job classification and on the shift he is designated shop steward.

Section 3.8 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/Grand Lodge 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/Grand Lodge Representative, or his designee, relating to a complaint or grievance. Discussions of the type described in Section 3.10 shall be conducted without requiring the employee or steward to clock out provided the discussion does not extend beyond the time that the supervisor considers reasonable under the circumstances.

Section 3.9 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/Grand Lodge Representative, or his designee, authorized in writing by the Union and approved by the Company may be placed on the bulletin boards.

[5]

Section 3.10 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 work place, including but not limited to, the employee's job performance.

Section 3.11 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 Company 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. Grievance or complaints arising between the Company and its employees subject to this Agreement, or the Company and the Union, with respect to the interpretation or application of any of the terms of this Agreement, 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 procedure.

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 of 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. Handling at Supervisory Level. If no settlement is reached in Step 1, the Steward, if he considered the grievance to be valid, may at any time 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.

The Steward shall sign and submit the written statement of grievance to the supervisor for his consideration, with a copy to the designated representative of the Company. After such submission, the supervisor and the Steward may, within the next five (5) workdays, unless mutually extended, settle the written grievance and, over their signatures indicate the disposition

[6] made thereof. Otherwise, promptly after the expiration of such five (5) day period, or agreed extension thereof, the supervisor 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/Grand Lodge Representative/Company Representative Level. If no settlement is reached in Step 2 within the specified or agreed time limits, the Business Representative/Grand Lodge Representative or his designee may at anytime thereafter submit the grievance to the designated representative of the Company. After such submission, the designated representative of the Company and the Business Representative/Grand Lodge 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/Grand Lodge 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. Arbitration. If no settlement is reached in Step 3 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.

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 ten (10) workdays after the date of layoff dismissal, or suspension for cause, or involuntary resignation, or within ten (10) 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)

[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 first name shall be determined by lot. The remaining person shall be the arbiter.

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/Grand Lodge Representative, When Not Available May Authorize Designee. For any period that the Business Representative/Grand Lodge Representative is unavailable to serve in that capacity under this Article 4, he may designate an accredited Steward or another accredited Business Representative/Grand Lodge 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/Grand Lodge Representative informing the appropriate Company representative of the expected period of the Business Representative/Grand Lodge 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.

[8]

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 procedure under the terms of this Article.

ARTICLE 5

SENIORITY

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. Both parties further agree, that the principle of seniority, where qualifications, productivity and dependability are reasonably equal, shall be used for promotion or for retention in case of a reduction in force.

Section 5.1 Probationary Employees.

5.1(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.

5.1(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 5.2 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, Recognition, 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 service records. The seniority date of each employee, who, subsequent to the effective date of this agreement is hired or rehired into the unit shall be the effective date of such hire or rehire.

Section 5.3 Employees With Identical Seniority Dates. When two or more employees have the same seniority date as herein provided, the employee having the lowest last four (4) digits of one's social security number shall be considered as having the least seniority for tie breaking purposes.

Section 5.4 Accumulation Seniority. Seniority shall accumulate to:

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

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

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

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

5.4(e) Time lost by reason of industrial injury, or industrial illness not to exceed the time limits on

[9] layoff statue provided in Section 5.4(h);

5.4(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;

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

5.4(h) Time spent on layoff for a period not to exceed (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 5.5 Loss of Seniority. An individual shall lose seniority rights for the following reasons:

5.5(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;

5.5(b) Discharge for cause;

5.5(c) Failure to respond with an acceptance within seven (7) calendar days after receipt of a recall from layoff notice by certified mail (unless such period is extended by the Company);

5.5(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;

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

5.5(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);

5.5(g) Retirement;

5.5(h) Absence in excess of three (3) consecutive working days without notice, either by telephone or written message by messenger to his immediate supervisor shall constitute resignation as in 5.5(a) above, unless satisfactory evidence of inability to report for work is shown.

Section 5.6 Transfers To and From the Bargaining Unit.

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

5.6(b) Employees transferring to salaried positions other than that described in Section 5.4(b), shall retain their bargaining unit seniority but shall not accumulate additional seniority while they remain in such salaried positions.

5.6(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 5.2 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, Workforce Administration.

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ARTICLE 6

WORKWEEK, HOURS OF WORK

The workweek will run concurrently with the pay week. Employees will receive two (2) consecutive days off during this seven (7) day workweek period. The Company will attempt to meet its non-regular workweek assignments on a voluntary basis among the employees. In the event there are insufficient volunteers to meet the requirement, the supervisor may designate and require the necessary number of employees to work the non-regular workweek. Each employee will be assigned to a shift with designated start times for beginning and ending. The normal shift is 8:00 a.m. to 5:00 p.m.

For those employees designated by the company, on the T-38 program the designated beginning time for each shift during the scheduled work week shall be: First shift-between 5:00 a.m. and 11:59 a.m.; second shift- 12:00 p.m. and 9:29 p.m.; third shift 9:30 p.m. and 4:59 a.m. the following day.

The normal workweek shall be forty (40) hours consisting of five (5) days of eight (8) hours per day Monday to Friday.

The Company will not change an employees posted work schedule solely to avoid the payment of overtime.

ARTICLE 7

OVERTIME

Section 7.1 Overtime. The Company will attempt to meet its overtime requirements on a voluntary basis among the employees by seniority who normally perform the work on a straight time basis;

however, in cases of selective overtime, new hires or rehires may be excluded for the first ninety (90) calendar days of their employment. In the event there are insufficient volunteers to meet the requirement, the supervisor may designate and require the necessary number of employees to work the overtime. A reasonable effort will be made to equalize overtime between employees within a work group, such work groups to be determined by the Company.

Section 7.2 Time worked within an assigned shift period shall be compensated at straight time rates.

Section 7.3 Overtime shall be paid at one and one-half (1.5) times an employee’s base rate, for all hours in excess of forty (40) compensated hours in the workweek.

Section 7.4 Wage Payment Basis. Employees shall be paid for time worked computed to the nearest one-tenth hour.

ARTICLE 8

LEAVE OF ABSENCE

Section 8.1 Authorized Leaves of Absence. For the time period indicated in each instance, not to exceed 30 months except for sub paragraph 8.1(c) and (d) 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.

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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.

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.

Section 8.3 The Company agrees that it will administer time away from work for Leave of Absences in accordance with its companywide policy, including benefit continuation. Because that policy may be changed from time to time, the Company agrees to notify the Union of any changes to the policy.

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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 returning to work following a Medical Leave of Absence or extended medical leave or documented substantial inability to perform the majority of the employees assigned duties and responsibilities, may be required through Government regulations or by the Company to undergo a medical examination by a doctor of the Government's or 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 acquired for his analysis. If the mutually agreed upon doctor's diagnosis agrees with the employee's doctor, the Company shall only 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 parties agree that they will meet and discuss any part or any provision of this agreement declared invalid as described above within thirty (30) calendar days.

ARTICLE 11

MISCELLANEOUS

Section 11.1 Inventions. Employees shall be permitted to retain ownership of inventions conceived or developed by them while performing work on any of the represented projects as an employee for the Company providing, however that the Government and the Company shall have shop rights extending to all such inventions, which rights shall include the non-exclusive royalty-free rights on the part of the Company, to use such inventions and to make, have made, and sell products, parts or tools incorporating such inventions; and on the part of others making products parts or tools for the Company (to be by the Company or in its products), to incorporate or use such inventions In such products, parts or tools, on in the manufacture thereof

Section 11.2 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 11.3 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 11.4 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

[13] 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 fide 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 11.4.

Notwithstanding any other provision of Section 11.4 of this Agreement, a grievance alleging a violation of this Section 11.4 shall be subject to the grievance procedure and arbitration of Article 4, Grievance Procedure and Arbitration, only if it is filed on behalf of and pertains to a single employee. Class grievances based on alleged violation of this Section 11.4 shall not be subject to the grievance procedure and arbitration under this Agreement

Section 11.5 Successor and Assigns. This Agreement shall be binding upon and shall insure 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, Recognition, the Company shall be released from all obligations on the project(s) so affected under this Agreement

Section 11.6 Travel Reimbursement. The Company will furnish, to the Union, copies of the present published Company policies relating to reimbursement of travel

Section 11.7 Bargaining Unit Status Report. A quarterly seniority list will be provided to the Union.

The report will include the following information:

(a) Employee name

(b) BEMS ID #

(c) Job title and number

(d) Seniority date

Section 11.8 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 11.9 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 11.10 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.

ARTICLE 12

WORK FORCE ADMINISTRATION

Section 12.1 Surplus Action.

12.1(a) In effecting a reduction in force within a job classification, at a site identified in Article 1, the following procedure shall be followed. The first selection would be probationary employees, followed by part time employees, followed by full time employees in reverse seniority order subject to the use of retentions as defined in Section 12.2. It is further recognized that the principle of seniority, where qualifications, productivity and dependability are reasonably equal, shall be considered in case of a reduction in force.

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12.1(b) Return To Formerly Held Job. Affected full time employees referenced in 12.1(a), will be offered the job classification held immediately prior to their present job classification if their seniority permits.

Section 12.2 Retentions. A retention is the retaining, in a job classification in which the surplus has been declared by the Company, of an individual whose seniority position would have caused him to have been surplussed while some other employee or employees with greater seniority are surplussed. In each instance, the retained employee will be designated, at the time the retention is used, to be retained in the job classification rather than to have him affected by the surplus action.

12.2(a) In determining the number of allowable retentions, calendar six-month periods shall be used. The first period in each year shall be from January 1 to June 30, inclusive, and the second period shall be from July 1 to December 31, inclusive.

12.2(b) For each period, the allowable number of retentions applicable shall be the number resulting from applying 4% of the total number of employees in each classification in the bargaining unit at the beginning of each six-month period. The number of allowable retentions shall be computed to the nearest whole number and a fraction shall be treated as one.

12.2(c) The Company's use of retentions in the number allowed or the surpluses resulting from the application and use of such retentions shall not be subject to challenge or to grievance procedure.

Section 12.3 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 recertification for that job.

Section 12.4 Temporary Assignment. The Company may temporarily assign employees to perform work assignments described for other job classifications. No overtime will be offered to temporarily assigned employees until the provisions of Section 7.1 of this Agreement are met.

Section 12.5 Performance of Work. Supervisors and other non-bargaining unit employees will not normally perform the duties of employees in the bargaining unit, except in emergency situations, for currency, or for the purpose of instructing employees. The parties further agree that the present practice will continue during the term of this agreement.

Section 12.6 Part Time Employment. 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.

The present practice of using part time employees will continue for the duration of this agreement. Part time employees will not be used to offset the payment of overtime or to displace a full time employee.

Section 12.7 The Company will maintain an environment in which employees can make known their interest in transferring to other positions which they are qualified to perform, in accordance with established company procedures.

Section 12.8 Layoff and recall will be conducted by job classification at the site where the surplus action took place.

ARTICLE 13

JURY AND WITNESS DUTY

Section 13.1 An employee absent from work due to required jury duty will be paid for such lost hours at his current straight time base rate, including…

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