Attachment__11_CollectiveBargainingAgreement.doc

Attachment 11

AGREEMENT

BETWEEN

PKL SERVICES, INC.

AND

INTERNATIONAL ASSOCIATION OF MACHINISTS

AND AEROSPACE WORKERS AFL-CIO

DISTRICT LODGE 725

LOCAL LODGE 1125

Marine Corps Air Station (MCAS) Miramar

SAN DIEGO, CALIFORNIA

VMFAT-101 FA-18 Maintenance

Effective May 15, 2013 to May 14, 2016

TABLE OF CONTENTS

Page

1Article 01.00 Intent and Purpose

2Article 02.00 Management Rights

2Article 03.00 Union Recognition

3Article 04.00 Shop Stewards

5Article 05.00 Union Security/Agency Shop

7Article 06.00 Non‑Bargaining Unit Personnel

8Article 07.00 Seniority

10Article 08.00 Promotions, Bidding / Transfers

11Article 09.00 Leaves of Absence

12Article 10.00 Holidays

13Article 11.00 Vacation

15Article 12.00 Overtime

16Article 13.00 Absence from Work

16Article 14.00 Hours of Work

18Article 15.00 Government Security / Responsibility

18Article 16.00 No Strike ‑ No Lockout

20Article 17.00 Benefit Plans

20Article 18.00 401(k) Plan

21Article 19.00 Uniforms

21Article 20.00 Off Site Detachment

22Article 21.00 Disciplinary Action

25Article 22.00 Grievance and Arbitration

27Article 23.00 Sick Leave

28Article 24.00 Job Classifications

28Article 25.00 Bereavement Leave/Jury Duty

28Article 26.00 Wages

29Article 27.00 Safety/Safety Equipment

29Article 28.00 Temporary Alternate Work

29Article 29.00 General

30Article 30.00 Duration

32APPENDIX A (Rev 1)

34MEMORANDUM #1 TO CBA

PREAMBLE

This Agreement is made and entered into this 27th day of May, 2013 by and between PKL Services, Inc., (hereinafter referred to as the Company) and the International Association of Machinists and Aerospace Workers, District Lodge # 725, Area 1, Local Lodge 1125 (hereafter referred to as the Union).

It is understood wherever in this Agreement the masculine gender is used, it shall be recognized as referring to both males and females.

Article 01.00 Intent and Purpose

01.01 It is the intent and purpose of the Company and the Union to set forth herein the entire Agreement with respect to wages, hours, and working conditions as relates to the government contract covered by this Agreement.

01.02 It is the intent of the parties to provide for the efficiency of the operations and maximum production of the employees under methods, which further the safety of all affected parties, the efficiency and economy of operations and the continued employment under conditions of reasonable hours, compensation and working conditions as contained herein so that operations will be uninterrupted and duties faithfully performed in order for the Company and its employees to fulfill their mutual and vital responsibilities to both the public and to the Government with due regard to competitive conditions.

01.03 It is recognized by the Agreement to be the duty of the Company, the Union and the employees to cooperate fully, both individually and collectively, for the advancement of said conditions; and to provide a grievance procedure for the settlement of the employee's grievances; and to provide that there shall be no interruptions and/or impeding of operations during the term of this Agreement.

01.04 The Union recognizes that the Company is a contractor to the U.S. Marine Corps and that the Company is required at all times to meet its contractual obligations. Nothing in this Agreement will prevent the Company from meeting its obligations and responsibilities as a Government contractor. The Union and the Company agree to comply with the requirements that the U.S. Marine Corps may impose on the Company and its employees.

Article 02.00 Management Rights

02.01 The Company shall retain the exclusive authority, rights and powers to manage its business and direct the workforce. Such authority, rights and powers include, but are not limited to, the right to hire, assign, transfer, promote, reclassify, layoff, discipline for cause (including suspension and discharge); determine work schedules, the qualifications of employees; to establish and modify rules and regulations not in conflict with the terms of this Agreement; to close down, curtail, or move the business or any part thereof, to discontinue its business in whole or in part; to sell or dispose of any part of the business, to introduce new or changed methods; to determine the means of service or production; and to otherwise manage the operations and direct the workforce.

02.02 Except as expressly modified by a specific provision of this Agreement or except as such rights are specifically relinquished herein, all rights, powers or authority, which the Company had prior to the signing of this Agreement are retained by it. No relationship between the parties shall be construed to create any implied limitation on the Company's authority, rights or powers.

02.03 The Union recognizes that the Company maintains work rules in its Employee Handbook and has other work rules and policies for the direction of the work force, including a drug and alcohol policy. The Union agrees that the Company can maintain and enforce these rules and policies, provided that they do not expressly contradict any provision in this Agreement.

Article 03.00 Union Recognition

03.01 The Company recognizes the Union certified by the National Labor Relations Board in case no. 21‑RC‑21167 as the exclusive representative of the following employees:

a. Included: All full-time and regular part-time hourly employees employed by the Company and any of its Subcontractors on the VMFAT-101 FA-18 Maintenance Program at Marine Corps Air Station (“MCAS”), Miramar, San Diego, CA

b. Excluded: All office clerical employees, professional employees, managerial employees, quality assurance employees, guards and supervisors as defined by the Act.

03.02 The Company acknowledges the Union's rights specifically designated by the terms of this Agreement, as the employees representative, the Union recognizes its duty to cooperate in any reasonable manner with the Company to support its efforts to assure a fair days work by each employee.

03.03 Union Bulletin Boards. The Company will provide and pay for one Union bulletin board, the placement of which is (1) easily accessible to bargaining unit members, and (2) is subject to the approval of the AMO, to be used by the Union to post official business of the Union. Legitimate Union notices are defined as:

a. Meeting notices

b. Official Union election results

c. Notices of Union appointments

d. Union social events

e. All notices not listed above must be approved by Management.

03.04 Additions to the work force, in accordance with Article 03.01, (to include new or revised classifications) will become bargaining unit employees.

Article 04.00 Shop Stewards

04.01 The Company agrees and it is hereby understood that the Union may designate and the Company shall recognize two (2) day crew Shop Stewards and one (1) alternate day crew Shop Steward, and two (2) night crew Shop Stewards and one (1) alternate night crew Shop Steward. The Union shall notify the Company in writing on Union letterhead of the individuals so selected. The alternate Shop Steward shall act in the capacity of the Shop Steward in the event the Shop Steward is absent from the facility. The Union shall designate one Shop Steward as the Chief Shop Steward. Stewards shall have top seniority on their shift in their area of jurisdiction during the time they officially remain in that capacity and shall not be laid off without prior approval of the Union, provided that work is available on their shift in their area of jurisdiction which they capable of performing. If the Company moves a Steward to another shift, the Union can appoint another Steward to the shift being vacated by the first Steward.

04.02 Subject to other provisions of this Agreement, the Shop Steward shall be authorized to take reasonable and necessary unpaid time off of work, not to exceed one hour per week, to permit the Steward to carry out his responsibilities under the grievance procedure to employees who request his assistance, providing the carrying out of these responsibilities will not interfere with the assigned work duties of the Steward or the employee involved, or adversely impact the maintenance workload. The Steward must request permission from the Project Manager before taking such time off work. The Union will ensure that the Steward engages only in those activities, which are authorized by this Agreement. Instances of alleged abuse or misuse of time by the Steward, shall be brought to the attention of the Union, who shall take the action necessary to correct the problem.

04.03 Recognizing the mutual benefit of resolving problems at the lowest level, an employee who has an alleged grievance may discuss the matter with the employee's Steward. The necessary time away from the Steward's official work assignment shall be arranged in a manner to minimize interruption of work flow. When the Steward finds it necessary to discuss a problem or labor‑management disagreement with a unit employee and/or management official, the Steward shall request permission to leave his/her work assignment from the Project Manager. The Project Manager's permission will be granted unless he determines that work commitments dictate otherwise. If permission is initially denied, the supervisor shall establish an alternate time, which shall be no later than the end of the employee's next work day, at which time the Steward can contact the employee.

04.04 The scope of the Steward's activities (which shall be done on unpaid time) shall be limited to the following:

a.

To consult with an employee regarding an alleged grievance or the presentation of a grievance for which the employee desires the Steward to be present.

b.

To investigate an alleged grievance or a grievance of record before presentation to the Project Manager.

c.

To present a complaint or a grievance to the Project Manager in an attempt to settle the matter for the employee or group of employees who may be similarly affected.

d.

To meet with the Project Manager or other designated representative of the Company when necessary to adjust grievances in accordance with the grievance procedure of this Agreement.

e.

During an investigation in which it is determined by the Project Manager that an employee may be subject to discipline, said employee shall be advised of his right to Union representation. If requested, his Steward shall be provided.

04.05 Subject to existing security regulations, the Business Representative or other authorized Representatives of the Union shall have access to the Company's work areas during working hours for the purpose of investigating grievances that have arisen, attending meetings in accordance with the grievance procedure, and ascertaining whether or not this Agreement is being observed. Before doing so, he/she shall report to the Project Manager or other authorized Company Representative, who shall permit said Representative to enter the Company's premises, provided that such rights shall be exercised reasonably and will not interfere with the normal conduct of the Company's operations. Authorized Representatives of the Union may be escorted by a Company Representative at all times they are on Company premises.

04.06 It is agreed that the Company shall not be required to pay an employee for any time that he/she is taken away from his/her work to serve the Union in any capacity or to serve on any Union committee.

04.07 The Shop Steward shall be empowered to adjust employee grievances occurring under his/her jurisdiction as provided for in the grievance procedure, so long as such adjustments are not in conflict with the provisions of this Agreement.

Article 05.00 Union Security/Agency Shop

05.01 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.

05.02 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 to the amount of monthly membership dues, beginning with the month following the month in which they accumulate thirty (30) days continuous service in the bargaining unit since their last date of hire or rehire. Employees entering the bargaining unit or employees who are rehired with seniority or transferred with seniority into the bargaining unit after the effective date of this Agreement who do not become Union members, or having become do not remain Union members, must, as a condition of employment, while on the active payroll, pay such fee to the Union commencing a 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.

05.03 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, but not both.

05.04 Upon receipt of a signed authorization from the employee involved, the Company shall deduct from the employee’s pay an amount necessary to satisfy the financial obligation to the Union for dues or agency fees during the period provided for in said authorization. Deductions shall be made one half of the total amount of dues/fees from the first pay of the employee and one half of the total amount of dues/fees from the second pay of the employee after receipt of the authorization and monthly thereafter from the first pay of the employee in each month.

05.05 Deductions provided in Section 05.04 shall be remitted to the District Lodge #725 no later than the tenth (10th) day of the month following the month in which the deduction was made and shall include all deductions made in the previous month. The Company shall furnish District Lodge #725 monthly, with a record indicating payroll ending date and names of those for whom deductions have been made and the amounts of the deduction, and the names of those employees from whom deductions were not made and the reasons they were not made.

05.06 The Union shall indemnify and hold harmless the Company from any and all claims, demands, suits, or forms of liability that shall arise out of or by reason of action taken, or not taken, by the Company for the purpose of complying with any provisions of this article.

05.07 The parties agree that the Union will use a check-off authorization in the following form:

INTERNATIONAL ASSOCIATION OF MACHINISTS AND AEROSPACE WORKERS, AFL-CIO

MEMBERSHIP APPLICATION AND/OR CHECK OFF AUTHORIZATION

Name________________________________________ Date______________ Card No.______________

Address__________________________________________________ M__ F__ Date of birth___________

City___________________ State______ ZIP__________ Phone________________ Birthplace__________

SS No.__________________________ Employer___________________________ Hourly Wage________

Hire Date_______________ Class of work_________________ Years experience_____ Shift: 1__ 2__ 3__

Membership Application. Check here: __ To the Officers and Members of Lodge No. _____ (the “Lodge” or “Union”), I hereby tender my application for membership in the International Association of Machinist and Aerospace Workers, AFL-CIO (IAM). I understand that while I may be required to tender monthly fees to the Union, I am not required to sign a membership application as a condition of employment and that this application for membership is voluntary. I agree to obey the laws of the IAM and to support the principles of trade unionism, and I authorize the IAM and/or its designated affiliate to act as my representative for collective bargaining.

If former member of IAM: Card No._________ Lodge No.______ Location___________ Last dues paid____

Check-Off Authorization. Check here: ___ I authorize my Employer to deduct from my wages and forward to the Union: (1) monthly membership dues or an equivalent service fee; and (2) any required initiation or reinstatement fee as set forth in the collective bargaining agreement between the Employer and the Union and the by-laws of the Lodge. This authorization shall be irrevocable for one (1) year or until the termination of the collective bargaining agreement between my Employer and Union not more than twenty (20) and not less than five (5) days prior to the expiration of the appropriate yearly period or contract term. I expressly agree that this authorization is independent of, and not a quid pro quo for, union membership, but recognizes the value of the services provided to me by the Union. It shall continue in full force and effect even if I resign my Union membership, except if properly revoked in the manner prescribed above.

The following information is strictly voluntary and is requested for the sole purpose of providing improved services to our membership:

I am __Caucasian __ African American ___ Asian __Hispanic__Pacific Islander__Native American __Other.

Important Notice. I have examined and acknowledge receipt of the attached “Notice to Employees subject to Union Security Clauses” (on back of pink sheet). I also understand that IAM members have certain rights and privileges as set forth in the IAM Constitution and in various Federal laws, like the Labor Management Reporting and Disclosure Act (LMRDA). Copies of the IAM Constitution and the LMRDA may be obtained by contacting the IAM General Secretary-Treasurer, 9000 Machinists Place, Upper Marlboro, MD 20772. Union membership dues and agency fees are not deductible as charitable contributions for Federal income tax purposes. Dues and agency fees, however, may be deductible in limited circumstances subject to various restrictions imposed by the Internal Revenue Code.

YOUR SIGNATURE

DATE

Article 06.00 Non‑Bargaining Unit Personnel

06.01 Non bargaining unit personnel may temporarily perform the work of or with unit employees, provided such work does not result in layoff, reduction of hours or earning opportunities or benefits. Such temporary work may be performed under the following conditions:

a. For the purpose of instructing and training employees.

b. Under emergency conditions. The term "emergency" as used in this provision is defined to mean any unforeseen combination of circumstances, which would require immediate action.

c. Up to two (2) hours on any shift when an employee fails to report to work, and other qualified employees are not available in the classification.

d. Supervisor may perform Bargaining Unit work when a temporary increase in workload or employee absences may cause the work schedule to be delayed, causing operational problems.

e. Lack of necessary skills required to complete a specific task.

Article 07.00 Seniority

07.01 On the date of contract ratification, seniority within each job classification on Appendix “A” will be established as the employee's date of hire by the Company or its subcontractors that is continuous service with the Company or its subcontractors working on the VMFAT-101 FA-18 program in the bargaining unit. (See Memorandum # 1 attached.) Any employee hired after ratification of this agreement will have their classification seniority date established as their date of hire on the VMFAT-101 FA-18 Program at MCAS Miramar, San Diego CA. Seniority order for employees with common hire dates will be determined by the social security number with the lowest last five digits being the most senior.

07.02 Employees who work in a lower rated classification on a temporary basis will continue to be compensated at the wage rate of their higher rated classification.

07.03 Employees transferring into the VMFAT-101FA-18 Program at MCAS Miramar, San Diego CA and into this bargaining unit from Company management or another Company location, will retain their Company date of hire for vacation and fringe benefit purposes, but their seniority date for classification seniority and all other purposes, will be their date of transfer into the bargaining unit on the VMFAT-101 FA-18 Program at MCAS Miramar, San Diego CA.

07.04 The first ninety (90) days of regular employment shall be considered a probationary period with the Company. During the probationary period, an employee may be terminated without notice and without recourse through the grievance and arbitration procedure. The probationary period may be extended by mutual written agreement between the Company and Union. During the first 90 days of regular employment, the employee does not accrue benefits. However, after completion of the first 90 days of regular employment, an employee’s benefits shall be deemed to have commenced from his/her hire date, and the employee will be placed on the seniority roster within his/her classification based on date of hire with the Company or Sub-Contractor.

07.05 Loss of seniority and termination of employment will result under the following conditions:

a. Resignation or quit;

b. Retirement;

c. Discharge for cause;

d. Failure to return from leave granted with a Leave of Absence;

e. Layoff in excess of twelve (12) months;

f. Failure by the employee to notify the Company of the employee's intention to return to work in response to a recall notification within forty eight (48) hours after the receipt of such recall notice, and of the employee's return to work within fourteen (14) calendar days following the receipt of such notice;

g. Transferred or promoted out of the bargaining unit in excess of ninety (90) calendar days (termination will not occur in this event, only loss of seniority);

h. Absence from work for three (3) consecutive working days with no contact with the Company, unless excused by the Company;

i. Acceptance of employment with another employer while on an approved leave of absence;

j. Employees absent from work due to a workers’ compensation claim in excess of twelve (12) months, unless prohibited by law.

07.06 The Company will post a seniority list at least once every three (3) months. The list will show each employee's name, last hire date and classification. The list shall be arranged by classification seniority.

07.07 When reducing the workforce, the Company will layoff in reverse order of seniority within each job classification. The most junior is laid off first by job classification. The last employee laid off will be the first recalled with each job classification. In order to avoid layoff, an employee in a higher classification can bump an employee in a lower classification, provided the employee in the higher classification has greater seniority. For example, an Airframes/Hydraulics Technician III could bump an Airframes/Hydraulics Technician II, provided he has more seniority. The Airframes/Hydraulics Technician II could then bump an Airframes/Hydraulics Technician I, provided he has more seniority.

07.08 The Company will notify the Union and the employees affected of pending layoffs at least five (5) work days prior to layoff, if possible to do so. Affected employees will be given a layoff notice and will be responsible for notifying the Company of their current address or any address change.

07.09 The Company and Union may mutually agree on seniority dates for individual employees because of unique and special circumstances.

Article 08.00 Promotions, Bidding / Transfers

08.01 In the case of a bargaining unit employee who bids and is promoted or transferred and such employee fails to satisfactorily perform the duties of the new job within a period of up to thirty (30) work days, unless extended by mutual written agreement of the parties, the employee will be returned to the classification last held prior to the award of such promotion, provided the classification has not been unpopulated.

08.02 When a bargaining unit job vacancy occurs within the Company at the VMFAT-101 FA-18 Program MCAS Miramar, San Diego, CA the vacancy will be filled by the Company with an internal candidate, provided that the internal candidate is qualified for the position, as determined in the sole but reasonable discretion of the Company. If there are two equally qualified internal candidates, the senior employee shall be selected for the position. If there is no qualified internal candidate, as determined in the sole but reasonable discretion of the Company, then the Company can hire an external candidate. The vacancy shall be posted on the Union Bulletin Board for three (3) work days. The notice will contain:

1. Job title and wage rate.

2. Qualifications required.

3. Date and time after which bids will no longer be accepted.

4. Work schedule.

5. Effective date.

08.03 Bids from internal candidates must be in writing and hand delivered to the Project Manager or his designee, who will affix the date and time to validate a timely filing. Bids received after the closing date will not be considered.

a. Due to the nature of the contractual work to be performed, if available, employees may be brought in from other locations to perform specific short‑term assignments at MCAS Miramar, San Diego CA as the need arises, not to exceed forty‑five (45) calendar days, so long as there are no employees in the classification on layoff who are qualified to perform the assignments. Such actions shall not cause the layoff of any employee within the classification in the bargaining unit who are qualified to perform the work. The Company will inform the Union of the reason such assignments are necessary.

08.04 If an internal candidate is selected for the vacancy, the employee awarded the bid will be notified and will report for work on the new bid as of the effective date stated by the Company.

Article 09.00 Leaves of Absence

09.01 Limited unpaid personal leaves of absence may be granted by the Company upon request of employees who have completed their probationary period. The Company shall have sole discretion as to whether to grant such a leave, and shall grant such requests on a case by case basis. Such leaves shall be for not less than five (5) work days and not more than fifteen (15) work days. Requests for unpaid personal leave of absence must be made in writing and must receive approval by the Company. Vacation must be used before any leave will be approved. A maximum of one extension may be approved by the Company. However, if the employee does not return to work after the personal leave of absence, the employee shall be terminated.

a. Vacation credits are not earned while on a leave of absence under the provisions of this article.

b. If the employee is covered by the health insurance plan, coverage shall continue provided the employee pays his/her portion of the premium.

09.02 Seniority shall continue to accumulate during the approved leave of absence. When an employee has been granted a leave of absence for a specified period of time, it will be the employee's responsibility to request an extension of such leave prior to expiration if additional time is required. All such extensions must have prior Company approval.

09.03 Leave of absence for legitimate personal health reasons shall be according to the provisions of the federal Family and Medical Leave Act (“FMLA”).

09.04 An employee on leave of absence for personal health reasons may return to work prior to or at the expiration of such leave upon the written release of a licensed physician provided the employee is able to perform his/her assigned duties safely.

While on leave of absence for personal health reasons, the employee shall notify the Company as to his/her potential of returning to work on a biweekly basis, except in those cases where the employee's physician has provided an expected date of return.

An employee may be returned to restricted duty at the sole discretion of the Company, provided the Company is able to accommodate said restrictions.

09.05 Leaves of absence without pay for Union business will be granted to Bargaining Unit employees of the Company, not to exceed one week, who are elected or appointed by the Union, to attend such functions as conferences, conventions, and union educational courses, provided at least five (5) work days advance notice is given in writing to the Company, and provided that the leave would not interfere with customer operations. However, not more than two employees may be on such leave at any time.

09.06 Employees required to report for military training in excess of thirty (30) consecutive days or those called to active duty shall be reinstated in accordance with the Uniformed Service Employment and Reemployment Rights Act. The parties to this Agreement shall comply with current applicable state and federal legislation regarding military service.

09.07 When leaves of absence are granted, the employee, upon return to active employment, will be returned to his/her classification based upon seniority and qualifications.

09.08 When an employee fails to return to work at the expiration of an approved leave of absence, or accepts gainful employment during a leave of absence without the approval of the Company, that employee shall be disciplined up to and including discharge at the option of the Company.

09.09 The granting or disallowance of Personal/Medical Leaves of Absence for employees within the probationary period will be at the discretion of the Company.

Article 10.00 Holidays

10.01 Holiday pay is eight (8) hours pay, which is payable at the employee's straight time rate of pay. The eight (8) hours pay will be considered as time worked for all purposes of this Agreement. The following holidays will be observed:

New Year's Day

Martin Luther King’s Birthday

President's Day

Memorial Day

Independence Day

Labor Day

Columbus Day

Veteran’s Day

Thanksgiving Day

Christmas Day

10.02 If the customer will close the base for a day on a day other than the above listed holidays, and advance notice of such closure is provided to the Company, the Project Manager will ask the customer for an alternative work schedule (e.g. 4 day week/10 hour days) for that week in order to try to get the employees 40 hours of work for that week. If the customer agrees to an alternative work schedule for that week, the Company will provide that work schedule to the employees, and the Union agrees that the Company is not required to pay daily overtime in the event of implementation of a voluntary alternative work schedule.

10.03 Any observed holiday stated above that falls on a Saturday or Sunday, will be observed under the same schedule observed by the U.S. Marine Corps VMFAT-101 FA-18 at MCAS Miramar, San Diego, CA.

10.04 Any employee required to work on any of the above holidays will be paid for hours worked at straight time and shall also receive eight (8) hours straight time for the holiday

10.05 An employee who performs any work during the workweek in which a named holiday occurs is entitled to the holiday pay, regardless of whether the named holiday falls on a Sunday, another day during the workweek on which the employee is not normally scheduled to work or on the employee’s day off. An employee cannot be denied holiday pay because the employee did not work the day before or the day after the holiday.

10.06 All employees are eligible to receive holiday pay on or after the date of hire.

10.07 Any additional holiday designated by the Federal Government mandate or Presidential Executive Order that is observed by VMFAT-

101, MCAS Miramar will be observed in addition to the above.

Article 11.00 Vacation

11.01 Each employee covered hereby shall accrue vacation credits as follows:

A.

For vacation purposes, all employees will be entitled to paid vacation which will be based upon years of service on VMFAT-101 FA-18 Contract at Marine Corps at MCAS Miramar, San Diego, CA. The employee’s anniversary date shall be the reference point for accrual of vacation. Paid vacation entitlement will be as follows:

1. New hires must complete six months of continuous service before becoming eligible for vacation pay. At the completion of six months, employees will receive vacation accrual retroactive to date of hire. Vacation shall accrue on a per pay period basis and is available for use on the first day of the following pay period after completing the eligibility.

Pay Period Rate of Accrual

2. 0-4.99 years

80 hours

3.33 hours

3.

5.00-14.99 years 120 hours

5.0 hours

4. 15.00 years 160 hours

6.66 hours B. Effective July 1, 2013, employees shall accrue vacation each pay period in accordance with the above entitlement schedule.

11.02 Vacation pay shall be computed at the employee's straight-time hourly rate at the time of vacation.

011.03 Vacation must be requested no less than seven (7) days in advance and will, insofar as practical, be granted as requested by eligible employees. When conflicts in requested vacation periods arise, the employees having the greater seniority shall be given the preference. However, an employee who has requested and had scheduled vacation approved, will not be displaced by a more senior employee within sixty (60) calendar days of the scheduled start of the approved vacation.

A. Vacation may only be scheduled on the employee's regularly scheduled workdays and only for the amount of hours regularly scheduled on that day to a maximum of eight (8) hours per day.

B. Vacation hours may be used in increments of no less than one (1) hour and must be requested and approved in advance.

C. Employee's request for vacation leave must be approved by the employee's Project Manager before such leave is taken. Employees failing to secure such approval, who subsequently fail to report to work as scheduled, will be subject to appropriate disciplinary action, up to and including termination, for unexcused absence.

D. The maximum allowable length of vacation will be the amount of the employee's vacation according to Company records at the end of the payroll period immediately preceding the vacation period requested.

E. Employees may maintain up to the equivalent of two times their annual vacation entitlement

11.04 Employees transferring into the Project after the date of ratification of this Agreement shall retain their original date of hire with the Company for purposes of determining their vacation credits.

11.05 For the purposes of establishing service for vacations, employees transferred from the Bargaining Unit to another Company unit, and then return to the Bargaining Unit, shall receive service credit for such time outside the Bargaining Unit.

Article 12.00 Overtime

12.01 Section 1: It is understood and agreed that the Company reserves the right to require employees covered by this Agreement to perform overtime work. When such overtime is required employees in the classification involved will be given as much advance notice as practical, but at least thirty (30) minutes notice prior to commencement of the overtime.

Section 2: In the event overtime is required on the employee's scheduled days off, the Company will give the employee four (4) hours notice prior to the end of their previous shift.

12.02 When the Company is provided with advance notice by the customer that overtime work is required, the overtime will be offered to the most senior employee in the classification and in the work area in which the overtime work is needed. Should that employee decline, the overtime work will be offered to the next most senior employee, and so forth. The Company can require the junior employee in that classification and work area to perform the overtime work if the senior employees decline the work. This paragraph shall not apply to deployments, and shall not apply to overtime assignments at the end of a shift where an employee is already working on a project and overtime is needed to finish the project.

12.03 When the Company is provided with advance notice by the customer that overtime work is required, that work will not be assigned to an employee who is still on his/her probationary period, unless all qualified senior employees in that classification and work area have been given the opportunity to work that overtime.

12.04 Section 1: The overtime rate will be one and one half (1 1/2) times the standard straight time rate of pay for any work in excess of eight (8) paid hours in one workday but less than twelve (12) hours.

Section 2: The overtime rate will be one and one-half (1 1/2) times the employee's standard straight time rate of pay for any work in excess of forty (40) paid hours in any one workweek.

Section 3: All hours worked in excess of twelve (12) per day will be paid at double times the standard straight time rate of pay.

All other overtime payments will be in accordance with applicable Federal law.

12.05 The Company will attempt to schedule overtime so that employees shall not be required to work more than two consecutive 6th and/or 7th days in a row.

12.06 No provision of the Article shall be construed as a guarantee of any specific hours or overtime hours per week. Any overtime authorized will be in the sole discretion of the contract officer’s representative.

Article 13.00 Absence from Work

13.01 Employees shall not leave work prior to the completion of their scheduled hours without prior permission from their supervisor.

13.02 Employees shall not be absent from work without prior permission from their Supervisor, except in cases of illness, injury or reasons beyond the control of the employee. Giving a false reason for an absence shall be cause for disciplinary action up to and including discharge.

13.03 It is the duty of every employee who, for any reason, will be absent from work on a scheduled workday, or who expects to report for work late, to notify the Company of the reasons therefore, in accordance with the procedures outlined by the Company. Such notice shall be at least thirty (30) minutes prior to the start of the shift.

13.04 Should an employee not have proper cause for failing to report for work or failing to report on time or for failing to report the reason, therefore as provided herein, such failure shall be considered cause for disciplinary action up to and including termination of employment.

Article 14.00 Hours of Work

14.01 No provision of this Agreement shall be considered as a guarantee of any specified number of hours of work, either per day or per week.

14.02 Eight (8) consecutive hours, exclusive of a meal period of thirty (30) minutes, shall constitute a normal work shift.

14.03 The work week for payroll purposes shall consist of seven (7) consecutive calendar days. The normal work schedule shall be five days per week with two consecutive days off. Unless changed by the customer, the Company will have three shifts, as follows: (1) a day crew working Monday through Friday, whose work week for payroll purposes begins at 1:00 a.m. on Monday; (2) a night crew working Sunday through Thursday, whose work week for payroll purposes begins at noon on Sunday, and (3) a mid crew working Sunday through Thursday, whose work week for payroll purposes begins at 8:00 p.m. on Sunday. The Company reserves the right to change the work week for payroll purposes based on scheduling changes required by the customer.

14.04 All employees will receive two (2) uninterrupted paid fifteen (15) minute breaks per day. One (1) to be taken during the first half of their work day and one (1) to be taken during the second half of their work day.

14.05 In the event any employee is required to work overtime at the end of his/her 8 hour day, the affected employee will receive an additional paid 15 minute break prior to commencing the additional work and during each additional four hour period of additional work. This shall not apply if the employee is on an alternative work schedule (e.g. 4 day week/10 hour days).

14.06 Determination of daily starting time shall be in the sole discretion of the Company as specified by the customer. Except for unusual circumstances where it is not practicable to provide such notice, the Company will provide seven (7) days notice of shift changes.

14.07 Employees reporting for their regular scheduled work shift shall be provided a minimum of four (4) hours work or pay at their regular rate of pay except in cases where work is unavailable due to acts of God, national emergency or circumstances beyond the control of the Company. If an employee reports and requests to leave work prior to completing the available four (4) hours of work and the Project Manager approves such request, the employee will be paid for only for hours actually worked.

14.08 Employees required to work on an unscheduled basis will be guaranteed four (4) hours work or pay at their regular rate of pay, including the appropriate overtime premium if applicable.

14.09 Employees shall be contacted for changes in their shifts, hours, assignments or report times during their normal work hours, whenever possible.

14.10 Both the Company and the Union recognize that some employees, due to domestic reasons, health, extended service with the Company, child and elder care or for other reasons may desire to transfer to another shift. The Company will make every effort to accommodate these requests.

14.11 Shift Differential

Effective on July 1, 2013, employees assigned to the second or third shift shall be paid a shift differential that will be added to his/her base rate of pay. Second Shift, beginning at or after 12:00 p.m. but before 8:00 p.m., the pay differential shall be $0.35 per hour paid in addition to their base rate of pay and third shift, beginning at or after

8:00 p.m. but before 4:00 a.m., the pay differential shall be $0.50 per hour paid in addition to their base rate of pay.

Article 15.00 Government Security / Responsibility

15.01 The Company and all representatives of the Union having access to the premises and all employees are required to comply with applicable Government security regulations when performing work for the Government. The Company and the Union agree that security information will be revealed only to persons properly cleared and required by the Government to have the information.

15.02 The Union and the Company recognize that employees covered hereby are performing services for the U.S. Government in U.S. Government facilities and by use of U.S. Government equipment. The Company is not authorized to maintain, modify or repair such government facilities and equipment, except as contractually directed.

15.03 Each employee shall be responsible for the reasonable care of the customer and/or Company furnished property or material and will notify the Company of any sabotage, or willful damage to Company, customer or employee property or material.

Article 16.00 No Strike ‑ No Lockout

16.01 It is expressly understood and agreed that the business of the Company is directly related to the important and vital work of the United States Government and that efficient and uninterrupted services must be furnished by those agencies who have need of and make use of the capabilities of the Company. Therefore, the parties agree that during the term of this Agreement:

a. The procedure provided for herein, for the settlement of grievances arising under this Agreement, may serve as the means for the settlement of disputes that may arise between the Parties. However, nothing in this section, or any other section of this Agreement, limits the Company's or the Union's right to seek and receive legal and equitable relief in the event of the breach of the no strike ‑ no lockout provision, including but not limited to, injunctive relief prohibiting any lockout, strike, sympathy strike, sit down, work stoppage, stay in, slow down, refusal to work, picketing, or any other action which would interfere with any of the operations of the Company.

b. The Union (its officers, and/or agents and/or members) shall not authorize, encourage, sanction, or take part in any strike, sympathy strike, sit down, work stoppage, stay in, slow down, refusal to work, picketing or any other action which deliberately interferes with any of the operations of the Company.

c. Any employee or employees, individually or collectively, who shall cause, encourage, or take part in any violation of this article, or any activities prohibited by this article, may be immediately discharged, or subject to other disciplinary actions as the Company may unilaterally consider appropriate. Any such disciplinary action shall be subject to the grievance procedure and arbitration procedure as defined herein. If it is determined under the established grievance/arbitration procedure that such an employee(s) did participate in such an action, in violation of this provision, the disciplinary action taken shall not be altered. If the decision under the grievance and arbitration procedure is that such an employee or employees did not participate in such acts, the redress shall be as determined by the grievance/arbitration procedure and limited to "making whole" the individual employee involved, if warranted.

d. In the event of a violation of this article, the Union (its officers, agents and members) individually and collectively agree that it will use its best efforts and end such prohibited conduct, taking actions including:

1. Requesting through personal contact or meeting with employees that they comply with the Agreement and not take part in any such prohibited conduct.

2. Immediately notify all employees in writing that such prohibited conduct is in violation of the Agreement,

3. Requesting those employees violating this Agreement to return to work and/or otherwise fully comply with the terms of this Agreement.

4. Make every other reasonable effort to have employees cease such acts as prohibited.

e. The Company agrees that it will not engage in any lockout of employees during the term of the Agreement.

Article 17.00 Benefit Plans

17.01.

Full-time employees may elect to enroll in the Company’s medical insurance plan. The employee will pay the full cost of participation in the plan. The employee can use the Company’s Section 125 plan in order to pay on a pre-tax basis.

Employees shall be entitled to sign up for the Company’s medical insurance plan to be effective on the first day of the month following their date of hire.

The Company maintains the right to make improvements, modifications, changes, benefit reductions or eliminate benefit plans at its sole discretion, and to make changes to employee premiums to its benefit plans at any time.

17.02 Health & Welfare. Full-time employees will receive Health & Welfare payments as shown below for all straight time hours paid (not to exceed 2080 hours paid per year).

Current:

$3.75/hr for all straight time hours paid (maximum of 40 hours/week)

Effective 7/1/13 $3.90/hr for all straight time hours paid (maximum of 40 hours/week)

Effective 7/1/14:

$4.05/hr for all straight time hours paid (maximum of 40 hours/week)

Effective 7/1/15:

$4.15/hr for all straight time hours paid (maximum of 40 hours/week) 17.03 The Company will offer group medical insurance for full-time employees and their dependents, which provides the same coverage and benefits as the insurance plans provided to non-bargaining unit employees. Issues such as enrollment, and claims will be as specified in the plan documents. Bargaining unit employees may elect at his/her cost to enroll in additional benefits offered by the Company such as dental insurance, life insurance, accident and disability plans.

17.04 The Company will continue to participate in the State Disability Plan offered by the State of California.

Article 18.00 401(k) Plan

18.01.

The Company will provide a 401(k) Retirement Savings Plan for bargaining unit employees. Eligible employees may elect to defer compensation within the limitations provided by the Plan. All conditions of participation will be governed by the Plan document(s). Plan administration costs will be paid for by the Company.

18.02 The Company will match employee contributions on the following basis: the Company will match up to one percent (1%) of the employee’s gross wages or 100% of the employee deferral to the 401(k) plan, whichever is less.

Article 19.00 Uniforms

19.01 Each employee will be required to wear the uniforms designated by the Company. The Company will provide the following uniforms to the employees: 5 long sleeve shirts, 5 short sleeve shirts, 5 pairs of long pants, 1 all weather jacket, and one rain coat.

19.02 In August 2013, the Company will provide each employee with a set of the uniforms specified in Article 19.01. In August 2014 and August 2015, the Company will provide each employee with a new set of shirts and long pants as set forth in Article 19.01.

19.03 When an employee’s uniform becomes soiled or damaged such that it is no longer usable, an employee can obtain a replacement from the Company, but any items replaced will be subtracted from the uniforms issued in August of each year as provided in Article 19.02. Employees who damage Company uniforms through misuse may be subject to disciplinary action.

Article 20.00 Off Site Detachment

20.01 Selection of an employee to be assigned to off-site work (except deployments) shall be done by classification seniority within a work center on the affected shift. The most senior qualified employee in the classification and work center will be asked first, and if he/she declines, the next senior qualified employee is asked, and so forth.

20.02 Bargaining unit employees on temporary detachment assignment performing bargaining unit work retain their rights under the Collective Bargaining Agreement as if working at MCAS Miramar, San Diego, CA.