JH_1_Collective Bargaining Agreement (CBA).pdf

AGREEMENT

BETWEEN

Defense Base Services Inc. (DBSI) (Housing Operations and Maintenance Services - NAVFAC Marianas, Guam)

AND

LOCAL UNION 1260

INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS

February 1, 2022 - January 31, 2026

TTABLE OF CONTENTS

PREAMBLE

AGREEMENT

ARTICLE I - RECOGNITION

ARTICLE II – NON-DISCRIMINATION

ARTICLE III – MANAGEMENT RIGHTS

ARTICLE IV – UNION ACCESS TO OPERATIONS

ARTICLE V – GRIEVANCE PROCEDURE

ARTICLE VI – ARBITRATION PROCEDURE

ARTICLE VII – NO STRIKE/NO LOCKOUT

ARTICLE VIII – BULLETIN BOARDS

ARTICLE IX – BARGAINING UNIT WORK

ARTICLE X - SENIORITY

ARTICLE XI – FILLING OF VACANCIES

ARTICLE XII – HOURS OF WORK

ARTICLE XIII - OVERTIME

ARTICLE XIV – LEAVE OF ABSENCE

ARTICLE XV – UNION SECURITY

ARTICLE XVI – CHECK OFF

ARTICLE XVII – SHOP STEWARDS

ARTICLE XVIII – SUCCESSORS AND ASSIGNS

ARTICLE XIX – SUBSTANCE ABUSE POLICY

ARTICLE XX – WAGES

ARTICLE XXI – HOLIDAYS

ARTICLE XXII - VACATION

ARTICLE XXIII – JURY DUTY

ARTICLE XXIV – BEREAVEMENT LEAVE

ARTICLE XXV – SICK LEAVE

ARTICLE XXVI - OVERCLASSIFICATION

ARTICLE XXVII - INSURANCE

ARTICLE XXVIII – 401K

ARTICLE XXIX - MISCELLANEOUS

ARTICLE XXX – TOTAL AGREEMENT

ARTICLE XXXI -TERMS AND NOTICE OF CHANGE OR TERMINATION

PREAMBLE

The Parties have entered into this Agreement for the purpose of setting forth in writing the understandings they have reached with respect to wages, work hours, and working conditions of the employees covered hereby, as well as to the rights of the Company and the Union, and to provide a peaceful means for the settlement of any disputes which may arise with respect to the interpretation or application of their understandings and agreements as set forth herein.

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

AGREEMENT

This Agreement made and entered into this February 1, 2022 to be effective through January 31, 2026 by and between Defense Base Services Inc. Inc. (hereinafter referred to as the Company) and Local Union 1260 of the International Brotherhood of Electrical Workers (hereinafter jointly and severally referred to as the Union).

This agreement shall remain in effect until 11:59 p.m. on January 29, 2026 without reopening rights for any purpose by either party. This agreement shall automatically renew itself from year to year thereafter unless written notice of desire to terminate the Agreement is given by either party at least sixty (60) calendar days prior to any annual expiration date thereafter. If such written notice of desire to terminate is given, the parties may nevertheless mutually agree in writing to extend this Agreement for a specified length of time beyond the expiration date.

ARTICLE I - RECOGNITION

Section 1. The Company recognizes the Union as the sole and exclusive bargaining representative for all hourly employees excluding administrative assistant, material coordinator, confidential employees, guards, managers, professional employees, supervisors, are excluded as defined in the Act located at Naval Facilities Guam, Andersen Airforce Base, and various locations on Guam under Contract N62742-19-D-3700 (or future assigned contract number).

Section 2. Nothing in this agreement shall be construed as waiving any rights or protection granted to the employees, the Company, or the Union under any applicable federal or territory law. It is understood and agreed that if any part of this Agreement shall be construed by any court or tribunal of competent jurisdiction or as a result of arbitration pursuant to the grievance procedure hereunder, to be in conflict with any law or executive order, then such part shall, to that extent, be deemed to be null and void from the date hereof without, however, affecting the balance of this Agreement. At the request of either the Company or the Union the parties will meet within thirty days of such change to discuss any issues arising from said legal requirement.

ARTICLE II – NON-DISCRIMINATION

This Agreement shall be applied fairly and shall not in any way be used to discriminate against employees on account of race, color, religious affiliation, sex, age, national origin, veteran or disability status. It is understood that wherever in this Agreement employees or jobs are referred to in the male or female gender, it shall be recognized as referring to both male and female employees.

The Company agrees not to interfere with the rights of its employees to become members of the Union, and there shall be no discrimination, interference, restraint, or coercion, by the Company or any of its agents against any employee because of Union membership or because of acting as an officer of or in any other bona fide activity on behalf of the Union.

ARTICLE III – MANAGEMENT RIGHTS

Section 1. The Company retains, solely and exclusively, all the rights, powers and authority exercised or possessed by it prior to the execution of this Agreement and shall have the exclusive right to exercise all said rights, powers, and authority in the management of the facility and the direction of the working force, except as otherwise specifically provided in this agreement. Said rights include, but are not limited to the right to employ, assign, transfer, promote, reclassify, layoff, discipline, and discharge employees for just cause; to determine staffing levels, employees' duties, and the number of hours to be worked; including the quality and quantity of output and the work methods for achieving same; to establish standards of performance and to maintain the efficiency of employees; to create, modify, combine or abolish job classifications, departments and facilities in whole or in part; to determine work schedules, starting and stopping times, and overtime; to promulgate and enforce reasonable work rules, policies and standards, to close or relocate its operations and facilities in whole or in part; to make technological changes as it deems appropriate; to contract out services as necessary; and to take such other methods as management may determine to be necessary for the orderly, efficient and economical operation of the business.

Section 2. The Union shall promptly and formally (in writing) be notified at least two weeks prior to the enforcement of new work rules or changes in existing work. The Company will promptly notify the union and give the union opportunity to comment and/or bargain if needed, within the notification period.

Section 3. The foregoing enumeration of the Company's rights shall not be deemed to exclude other preexisting rights which do not conflict with the provisions of this Agreement, and nothing in this article shall be deemed to limit the Company in the exercise of customary and recognized functions and prerogatives of management.

ARTICLE IV – UNION ACCESS TO OPERATIONS

Section 1. The Company agrees that the business representative will be allowed to visit employees while they are on the job in the Company's operations for the sole purpose of investigating specific grievances or complaints related to the provisions of this Agreement, subject to the customer’s rules and regulations regarding base access.

Prior approval must be obtained from the Project Manager of his designee and such visits shall not interfere with any work being performed. The business representative shall notify the Project Manager of his designee when he is leaving the Company's operations.

Section 2. The Company, if it desires, may have a Company representative accompany the business representative or his designee while he is visiting its operations.

Section 3. The Company will request from the Government Contracting officer base access for the Union Business Representative when needed, for the sole purpose of site visits, representation, and good faith bargaining. The Union recognizes, however, that base access is determined by the base commander and the Company cannot guarantee its Union Business Representative will be granted such access.

ARTICLE V – GRIEVANCE PROCEDURE

Section 1. "Grievances" shall mean and be limited to disputes of differences between the Company and the Union, or employees so represented, with respect to the interpretation or application of any specific provision of this agreement. Both parties agree to use their best efforts, including informal meetings involving management, supervision, shop steward, and the grievant, to resolve matters without resorting to the grievance procedure except that any such meetings shall not extend the time limits set forth in this Article. In the event such informal methods do not resolve the grievance, all grievances shall be reduced to writing and processed in accordance with the following steps:

Section 2. All grievances beyond Step 1 involving employee claims shall be in writing on grievance forms and shall be signed by all employees claiming rights hereunder. Such grievances must state the facts, identify the appropriate article, and state the remedy requested.

In an effort to adjust employee grievances by mutual agreement, they shall be presented in the following order and within the following time limits:

Step 1: The employee(s), with or without their steward, shall promptly bring a grievance to their supervisor within five (5) working days following the event or discovery of the event giving rise to the grievance. In the event an employee is unavoidably absent due to illness or injury, or unavailable due to vacation or other approved reasons, the employee's shop steward may bring the grievance to the supervisor. If such grievance is not settled within ten (10) working days, then:

Step 2: Within ten (10) working days following the event or discovery of the event giving rise to the grievance a written grievance containing the article or section which is claimed to be violated and the remedy requested must be signed by the employee and submitted by the Shop Steward and taken up with the Department Manager or his designee. A meeting will be scheduled within five (5) subsequent working days. If no agreement has been reached within fifteen (15) working days, the Company will reply in writing. If the written reply is not satisfactory, it may be moved to Step 3.

Step 3: Within five (5) working days of the Step 2 reply, the grievance may be moved to Step 3 by written appeal to the company Project Manager or designee.

The Company Project Manager or designee and the Business Representative of the Union shall meet either in person or by telephone within fifteen (15) working days after receipt of the grievance into a third step. A written reply from the Company Project Manager or designee will be given to the Union within fifteen (15) working days after the meeting. If no agreement has been reached within thirty (30) working days from the Step 3 meeting, either party may submit the grievance or dispute to arbitration as covered in the "Arbitration Procedure" article.

Section 3. Any aggrieved employee and their Union representative shall have the right to be present at any stage of the grievance procedure in which the grievance is being considered. No employee may leave the job, take up, or settle a grievance without requesting permission from the immediate supervisor. Such permission will be granted provided it does not retard or interfere with operations, customer commitments or create a hazardous condition. If permission cannot be granted, time limits will be waived until permission is granted. Witnesses called by either party may attend the grievance meeting at any step, subject to the same provisions outlined above.

Section 4. The company will grant the Union reasonable and relevant requests to examine time sheets and other records pertaining to the computation of compensation of any individual or individuals whose pay is in dispute or other relevant records pertaining to a specific grievance.

Compensation will be paid for reasonable time spent discussing or investigating grievances during normal work schedules, barring special circumstances in no event will the time paid per steward paid by the Company for union business exceed 2 hours per week. Under special circumstances additional time may be granted by mutual consent of the business representative and the Company Project Manager or designee.

Section 5. It is understood that the time limits specified herein may be extended by mutual agreement of the parties hereto.

Section 6. Nothing in this Agreement precludes the Union Shop Steward or Business Representative from filing a grievance on behalf of an employee in the event of unusual or unforeseen circumstances.

Section 7. Final decision made with respect to any grievances in first or second step shall apply to that grievance only and shall not become a binding precedent in the case of other grievances, nor a precedent which shall bind the parties as an interpretation of the agreement. All settlements must be consistent with the terms and conditions of this Agreement.

ARTICLE VI – ARBITRATION PROCEDURE

Section 1. The party choosing to arbitrate shall give written notice to the other party setting forth the matter to be arbitrated. If said notice is not served within the thirty (30) working day period specified in Step 3 of the "Grievance Procedure" Article, it shall be deemed that the grievance has been satisfactorily adjusted and the right to arbitrate waived.

Section 2. In the event the Union or the Company submits a grievance to arbitration, a representative selected by the Union shall meet with DBSI Human Resources/Labor Relations Manager within five (5) business days of receipt of the above notice to mutually agree on an arbitrator.

In the event the parties cannot agree on an arbitrator at the meeting with Companies Human Resources/Labor Relations Manager, within (5) business days following the meet and conference meeting, the parties shall submit the dispute to Pacific Arbitration and Mediation Services on Guam (PAMS) or as a mutually agreed to alternative the Federal Mediation and Conciliation Service (FMCS).

The parties shall request that PAMS submit a list of five (5) qualified arbitrators to preside over the dispute. The parties shall meet within ten (10) business days to select one of the arbitrators provided by PAMS. If an agreement cannot be reached, the arbitrator shall be determined by alternate preemptory strikes. The petitioner has the first right to strike a name; the other party shall then strike a name. This procedure shall continue alternately until one (1) name remains. Should FMCS be agreed to in lieu of PAMS, a panel of seven (7) arbitrators will be requested with the above timing and striking process followed. The cost of the arbitrator shall be borne equally by the parties. Each party shall bear their own respective attorney’s fees and costs of arbitration. Location can be mutually agreed to and can include the IBEW 1260 Hawaii office.

Section 3. The decision of the arbitrator shall be final and binding on all parties. However, the arbitrator shall not have jurisdiction or authority to add to, subtract from, modify or in any way change the provisions of this agreement. The expense and fees of the arbitrator will be shared equally by the parties.

Section 4. An arbitrator may not review any matter which is not a grievance alleging violation of a specific provision as written and expressed in this Agreement. Further an arbitrator shall not review more than one grievance on the same hearing date or series of hearing dates except by agreement between the parties.

Section 5. The employer or union shall be free to seek appropriate relief for any alleged violation of the No Strike/No Lockout provisions in a court of competent jurisdiction and shall not avail themselves of the grievance and arbitration provisions of this Agreement.

ARTICLE VII – NO STRIKE/NO LOCKOUT

Section 1. The Union agrees that neither it nor any of the employees in the bargaining unit covered by this Agreement will collectively, concertedly, or individually engage in or participate directly or indirectly in any strike, slowdown, or stoppage of work during the term of the Agreement and the Company agrees that during the term of this Agreement it will not lock out any of the employees covered by the Agreement.

Section 2. In the event of any violation of Section 1 of this Article, it shall be the duty and obligation of the Union, its officers, agents, or representatives (employee or non-employee) to immediately take all reasonable steps required to bring an end to such misconduct.

ARTICLE VIII – BULLETIN BOARDS

The Company agrees to provide a reasonable number of bulletin boards for the posting of legitimate Union notices pertinent to the Union at the facility. Only notices concerning Union meetings, Union elections, results of Union elections, etc., will be posted. The Union's business representative or his designee shall sign all such notices. The Project Manager or designee shall receive a copy of all Union postings.

ARTICLE IX – BARGAINING UNIT WORK

Company employees in job classifications not covered by this Agreement shall not perform work normally performed by employees in the bargaining unit, except in cases of emergency, research work, audit, experimental, or work of a special mechanical nature, (e.g., installation of modifications, when necessary), special training of employees from other locations, or to instruct employees properly. The term "Emergency" is defined to mean an unforeseen combination of circumstances. This Article shall not be construed to prevent employees outside the bargaining unit from performing work normally within their regular duties. It is not the intent of the Company to expand the current subcontracted areas. The company will notify the Union with concerns mentioned above.

ARTICLE X - SENIORITY

Section 1. Probationary Period: Any employee who has been in the employment of the Company for ninety (90) consecutive calendar days shall be considered a seniority employee of the Company.

During the probationary period, the employee shall be subject to layoff, discipline, or discharge at the sole discretion of the Company, and such action shall not be subject to the grievance procedure.

Section 2. Definitions:

a) Seniority is defined as including the whole span of continuous service with contractors or successor contractors in the performance of all work performed at Naval Facilities on the island of Guam.

b) Seniority will not be broken for: (1) periods of approved absence with leave, (2) periods of layoff due to lack of work, (3) periods of absence due to injury or illness.

Periods of absence set forth in (2) and (3) shall not exceed 18 months. In the case of occupational injuries, continuous employment will be for the length of the disability or 24 months whichever is less.

c) Part-time employees are not eligible for any contractual seniority rights as specified.

d) When two or more employees are hired on the same day, the last four digits of their

Social Security number shall then be used for purposes of layoff, recall and promotion, i.e., if two employees have the same seniority date, the employee that has the lowest number shall be the most senior of the employees hired on the same day.

Section 3. Loss of Seniority: All seniority of any employee shall terminate if the employee:

a) Voluntarily resigns.

b) Is discharged.

c) Is on layoff status in excess of 18 months.

d) Exceeds 18 months absence for sickness or injury, and 24 months in the case of occupational injury.

e) Is barred by the customer's written order or whose security clearance has been revoked and is not legally reinstated. This paragraph is subject to the conditions noted in the "Security" Article.

f) Fails to respond to or refuses recall rights or fails to report on deadline established for reporting.

Section 4. Seniority List: A seniority list will be maintained by the Company and will be made available to the Union quarterly or upon union's request. The Company will also furnish a list to the Union reflecting new-hires or rehires, their classification, their date of hire, and termination or layoff dates.

Section 5. Layoff: It is recognized that applying straight seniority in a layoff situation is not practical in all situations. It may be necessary for the Company to deviate in order to retain or recall employees of exceptional qualifications or who may be considered essential because of the nature of the operations involved. Therefore, layoffs occurring in this agreement will be based on seniority within job classification. It is understood that the Company shall not act arbitrarily, whimsically, capriciously, or otherwise abuse the rights entailed in this paragraph.

The company shall notify affected employees and union as soon as practicable, of upcoming layoffs, but not less than two (2) weeks’ notices. Failure to do so shall be subject to the grievance procedure.

At point of layoff, employees will be provided the option of being paid out their vacation or have it retained by the company until recall.

Section 6. Recall: Employees will be recalled in reverse order of layoff. The Company will call the employee, or if there is no answer after two (2) calls on consecutive days, the Company shall send a recall notice to the employee's last official address and copy the local Union office. The employee has five (5) working days to return to work after the Company sends the written notice. Failure to do so shall be considered a refusal of recall. It shall be the responsibility of the employee to keep the company notified of their correct address and telephone number.

Section 7. Shop stewards will have super seniority over other members for the sole purpose of furloughs or layoffs.

ARTICLE XI – FILLING OF VACANCIES

Section 1. When the Company determines to fill a new or existing job within the bargaining unit, the Company will post a notice of vacancy or job opening for a period of not less than ten working days.

Subject to the provisions of Section 3, any employee may submit a bid for the job to the Human Resource Office, in writing, during the posting period. The notice posted declaring that such vacancy or job opening is to be filled shall contain at least the following information:

a) The date the notice is posted and the date and time the notice will be removed.

b) The job to be filled and the classification

c) Job Specifications.

d) Rate of Pay.

e) Effective date the job is to be filled.

The Union's Steward will be furnished a copy of any bid upon request.

Section 2. The Company will award the job on a promotional basis to the most senior qualified employee, as determined by management, with respect to include the following:

a) Length of service

b) Must meet minimum qualifications for the position

c) Lateral and downward job applicants will be considered for the position after applicants seeking promotions.

If two or more employees bidding the job are equally qualified with respect to 1 and 2, then the most senior employee will be awarded the job. The Company retains the discretion to utilize external sources to staff unit positions when qualified individuals do not respond to the job posting during the posting period or are found to not exist within the bargaining unit employees that respond to the job posting.

Section 3. Restrictions on Bidding. An employee who is awarded a job for which he bid must accept it providing the award is made within fifteen (15) workdays of the effective date that the job is scheduled to be filled as provided in Section 1.e of this Article, otherwise the employee shall have the option of withdrawing his bid. An employee accepting a job transfer under this article may not bid for another job for a period of ninety (90) days after being awarded the job, unless agreed upon by both parties.

Section 4. Disqualification of Bidder. An employee who is unable to perform the job to which he bid to the satisfaction of the Company within thirty (30) calendar days after being awarded the job shall be returned to the job classification, he held at the time of submitting the bid, provided an opening exists in that classification otherwise the employee will be put on recall status to that classification.

The employee will be told the reasons for such disqualification.

Section 5. An internal candidate who was not selected after applying for a posted position shall be informed in writing of his non-selection within ten (10) working days.

ARTICLE XII – HOURS OF WORK

Section 1. The normal workday consists of eight (8) consecutive hours, exclusive of a lunch period.

Section 2. No provision of this Agreement shall be construed as a guarantee of any specified number of hours of work either per day or per week; however, it is the intent of the Company that a full-time employee's workweek consists of five (5) eight (8) hour workdays and two (2) consecutive days off.

There are limited situations in which contract requirements may dictate alternate arrangements.

Employees required by the Company to attend trainings, or meetings, before/after scheduled work periods, or on scheduled days off, shall be compensated accordingly.

Section 3. It is understood and agreed that the Company reserves the right to require employees covered herein to perform overtime in accordance with the provisions of this Agreement. When such overtime is required, employees involved shall be given as much advance notice thereof as is reasonably practicable.

Section 4. A full-time employee's workweek normally consists of five (5) eight (8) hour consecutive days and two consecutive days off; however, the two (2) days off may fall into different established work weeks.

Section 5. Employees will be allowed one (1) scheduled fifteen (15) minute rest period before lunch and one (I) fifteen (15) minute rest period after lunch in each workday. Said rest periods are to be taken when work permits. Employees scheduled to work four (4) or more hours of overtime shall be entitled to a fifteen (15) minute rest period as the regularly scheduled rest period on the shift the overtime is worked, after working the second hour of overtime.

Employees shall work up to the start of the rest period and be at their place of work at the end of the rest period.

Section 6. An employee who is scheduled and reports for work at the scheduled time without an attempt by the Company to notify them not to so report, shall be given two (2) hours work of any type which is available, or if no such work is available, he shall be given two (2) hours pay at the applicable rate; provided, however, that if work is not available as a result of circumstances beyond the control of the management, the Company shall not be so obligated.

Section 7. An employee who is called and reports back for work after he has completed his regularly assigned shift and departed from the premises shall receive a minimum of two (2) hours work or two

(2) hours pay at one and one half (1 ½) times his regular rate of pay.

Section 8. When an employee is not scheduled, and is called and reports for work, outside his scheduled workweek he shall receive a minimum of two (2) hours work or two (2) hours pay at one and one half (1½) times his regular rate of pay.

Section 9. An employee's normal work schedule is his/her five (5) scheduled workdays within his/her established workweek, such schedule to be posted by the Company at least 72 hours prior to the start of next workweek.

Section 10. Determination of starting time and hours of work shall be made by the Company and such schedules may be changed from time to time to suit varying conditions of business.

Section 11. Standby Pay. Employee will be paid two hours of pay per twenty-four (24) hour period for being on standby at the direction of the company. Should the employee be called in during standby, the employee will be paid the higher of the applicable worked pay or the standby pay. Employees failing to respond when on standby will lose the standby pay for that day and be subject to progressive discipline.

a) Employees receiving standby pay must:

Remain fit-for duty during the standby period Acknowledge immediately a call in Be on job-site within 1 hour Coordinate with Supervisor if becoming unavailable due to unforeseen circumstances

Section 12. Company payroll will be biweekly (every two weeks) with 26 pay periods annually.

Section 13. Weekend Work Notification. Weekend work notification will be posted by close of business on Thursday of workweek provided adequate notification of requirements are provided by the Government.

Section 14. Direct Deposit. Employees are required to use Direct Deposit for their pay.

ARTICLE XIII - OVERTIME

Section 1. When the Company determines that an employee must perform work on an overtime basis, the following shall apply:

Overtime will be paid at one and one-half (1½) times the regular rate of pay for all authorized hours worked in excess of forty (40) hours in the employee's normal workweek. No pyramiding of overtime will be allowed.

Section 2. Holidays will be included as actual hours worked in the week for purposes of computing overtime.

ARTICLE XIV – LEAVE OF ABSENCE

Section 1. Personal Leave. The Company may approve a leave of absence without pay or benefits up to thirty (30) calendar days for personal reasons. Such leave must be requested in writing and approved by the Project Manager or designee through the employee's supervisor. Said request must also state the reason for the unpaid leave. Employees must request such leave at least ten (10) calendar days prior to the date the leave would commence, except in cases of emergency.

Section 2. Benefit Date Adjustment. Additional personal leave requests will be reviewed on a case-by-case basis depending on workloads and management discretion.

Section 3. Failure to Return to Work from Leave of Absence. Failure to return from a leave of absence on the first scheduled workday following the expiration date of said leave, will result in termination of the employee, except in extenuating circumstances involving reasons acceptable to the Company.

Section 4. Leave for Union Activities

a) Other Union Leave - Permission for occasional additional Union Business leaves of absence without pay or on vacation paid time off, shall not be unreasonably withheld by the Company on seven (7) days written request of the Union, to Union shop stewards, unit officers, Executive Board members, and negotiating committee representatives for the negotiation and administration of this Agreement depending on workloads and job impact.

b) Obligation to complete contractual tasks must be considered before leave is granted.

Section 5. The Union and the company will follow Defense Base Services Inc. with regard to military leave of absence policy.

ARTICLE XV – UNION SECURITY

Section 1. Each current employee covered by this Agreement, and who is not a member of the Union, immediately following thirty (30) days after execution of this Agreement, as a condition of continued employment, shall become member of the Union.

Section 2. All other employees hired after the execution of the Agreement shall, immediately following thirty (30) days after their date of hire, or effective date of this Agreement, whichever is later, become members of the Union as a condition of employment, provided that nothing herein shall be interpreted to cause a violation of the Labor Management Relations Act (LMRA), as amended, or any other applicable law, regulation, Executive Order or Federal court ruling.

Section 3. The Union agrees to consider for membership all present and future employees who apply for membership. If an applicant is denied membership by the Union, that applicant shall not be required to comply with the provisions of this section.

Section 4. All new employees covered by this agreement will be provided a copy of this agreement on their date of hire.

Section 5. The Union agrees to indemnify and hold the Company harmless for any and all claims for damages made by employees or former employees relating to enforcement of this Article.

ARTICLE XVI – CHECK OFF

During the existence of the Agreement, the Company, in so far as permitted by Territory and Federal law, shall deduct out of the current net earnings payable biweekly to an employee covered by the Agreement, applicable service fees or Union dues, initiation fees and reinstatement fees, upon receipt of and in accordance with a deduction authorization, duly executed by the employee, on a card as agreed upon between the Company and the Union and shall continue deductions until such authorization is duly revoked by the employee.

ARTICLE XVII – SHOP STEWARDS

The Union will submit to the Company a list of accredited shop stewards who will be recognized by the Company as the people to present the employee's grievance to the supervisor. The shop steward may speak with the employee on Company time. The Union agrees that the time will be held to a minimum of interference to Company operations. The ratio of stewards to employees shall not exceed 1:25, unless mutually agreed upon by the Union Business Representative and the Project Manager.

Section 1. The Union and the Company agree to hold monthly shop steward meetings for up to 1 hour per month if either side indicates that there are matters to discuss and provided that the agenda is mutually agreed upon in advance. A local union representative and the Project Manager will attend and facilitate these meetings. The Company and the Union agree that meetings may be held during normal work hours at the end of the workday. If there is a requirement for more than one hour in a month, the meetings(s) will be held after hours.

Section 2. The Company is willing to allow Union Shop Stewards up to two hours of unpaid time off per month to attend local union business.

ARTICLE XVIII – SUCCESSORS AND ASSIGNS

This Agreement shall be binding upon and shall inure to the benefit of the parties hereto, their successors and assigns; but in the event the Company ceases to perform on the contract as identified in Article I, the Company shall be released from all obligations under this Agreement.

ARTICLE XIX – SUBSTANCE ABUSE POLICY

The Company will follow its Substance Abuse Policy with regard to substance abuse.

ARTICLE XX – WAGES

Section 1. Due to the requirements of Executive Order (EO) 14026 and the current issues with limited labor availability in the Guam market, the Company and Union have agreed to a 3 tiered approach for classification increases in the CBA. Category I classifications are those being adjusted to the level required by EO 14026. Category II classifications encompasses those employees receiving a regular annual increase. Category III classifications encompasses those employees receiving a market adjustment increase plus the regular annual increase.

CAT I Chart:

Section 2. A new classification of QC Specialist/Planner will be added to the CBA effective 11/1/22 at a rate of $24.00 per hour provided a Position Description is agreed to by the Company and Union.

Section 3. The following hourly wage increases apply to all classifications not listed above: They will be Identified as Category II classifications in wage exhibit and chart below:

CAT II Chart:

11/01/2022 11/01/2023 11/01/2024 11/01/2025 2.5% 2.5% 3.0% 3.0%

Section 4. The following classifications will receive an additional increase over and above the increase in Section 3 above and will be identified as CAT III Classifications in wage exhibit:

Appliance Mechanic Carpenter Maintenance Electrician Maintenance HRAC Mechanic Motor Vehicle Mechanic Painter Maintenance Production Control Clerk/Dispatcher Plumber Maintenance Quality Control Specialist Quality Control Specialist/Planner Warehouse Specialist

CAT III Chart:

11/01/2022 11/01/2023 11/01/2024 11/01/2025

11/01/2023 11/01/2024 11/01/2025 2% 2% 2%

2% 0.5% .0.5% 0.5%

Note – the percent will be added to the general wage percent increase and then applied to the existing rate and Identified as category III Classifications in wage exhibit:

POSITION/TITLE CATEGORY

Current Rates 11/1/2021

11/1/2022 11/1/2023 11/1/2024 11/1/2025

ACCOUNTING CLERK I II $17.84 $18.29 $18.75 $19.31 $19.89

ACCOUNTING CLERK II II $18.79 $19.26 $19.74 $20.33 $20.94

ACCOUNTING CLERK III II $20.30 $20.81 $21.33 $21.97 $22.63

ACCOUNTING CLERK IV II $23.92 $24.52 $25.13 $25.88 $26.66

AIR TRAF CONT SPEC TERM

(MTC)

II $35.93 $36.83 $37.75 $38.88 $40.05

APPLIANCE MECHANIC III $20.16 $21.07 $21.70 $22.46 $23.25

AUTOMOTIVE WORKER II $20.14 $20.64 $21.16 $21.79 $22.44

BUILDING INSPECTOR II $29.05 $29.78 $30.52 $31.44 $32.38

BUS DRIVER II $15.30 $15.68 $16.07 $16.55 $17.05

CARPENTER MAINTENANCE III $22.08 $23.07 $23.76 $24.59 $25.45

CASHIER I $11.98 $15.00 $15.30 $15.61 $15.92

CHILD CARE ATTENDANT I $14.17 $15.00 $15.30 $15.61 $15.92

CHILD CARE CENTER CLERK II $17.65 $18.09 $18.54 $19.10 $19.67

CLEANER, VEHICLES I $11.44 $15.00 $15.30 $15.61 $15.92

COMPUTER OPERATOR III II $24.13 $24.73 $25.35 $26.11 $26.89

COMPUTER OPERATOR IV II $26.34 $27.00 $27.68 $28.51 $29.37

COMPUTER OPERATOR V II $29.52 $30.26 $31.01 $31.94 $32.90

COMPUTER PROGRAMMER

II

II $26.71 $27.38 $28.06 $28.90 $29.77

COMPUTER PROGRAMMER

III

II $32.72 $33.54 $34.38 $35.41 $36.47

COMPUTER PROGRAMMER

IV

II $40.01 $41.01 $42.04 $43.30 $44.60

COMPUTER SYSTEM

ANALYST II

II $40.05 $41.05 $42.08 $43.34 $44.64

COOK I I $13.04 $15.00 $15.30 $15.61 $15.92

COOK II II $17.82 $18.27 $18.73 $19.29 $19.87

DECK HAND II $15.43 $15.82 $16.22 $16.71 $17.21

DESK CLERK (*Note III) I $14.17 $15.85 $16.25 $16.74 $17.24

DISPATCHER, MOTOR

VEHICLE

II $19.96 $20.46 $20.97 $21.60 $22.25

DRAFTER III II $29.37 $30.10 $30.85 $31.78 $32.73

DRAFTER IV II $36.36 $37.27 $38.20 $39.35 $40.53

ELEC. TEC II, MAINTENANCE II $23.29 $23.87 $24.47 $25.20 $25.96

ELEC. TEC III,

MAINTENANCE

II $28.35 $29.06 $29.79 $30.68 $31.60

ELECTRICIAN,

MAINTENANCE

III $23.72 $24.79 $25.53 $26.42 $27.34

ENGINEERING TECHNICIAN

III

II $25.05 $25.68 $26.32 $27.11 $27.92

ENGINEERING TECHNICIAN

IV

II $31.02 $31.80 $32.60 $33.58 $34.59

ENVIRONMENTAL

TECHNICIAN

II $28.80 $29.52 $30.26 $31.17 $32.11

ESTIMATOR II $27.89 $28.59 $29.30 $30.18 $31.09

FIELD MAINTENANCE

TECHNICIAN

II $24.28 $24.89 $25.51 $26.28 $27.07

FIRE ALARM SYSTEM

MECHANIC

II $23.33 $23.91 $24.51 $25.25 $26.01

FOOD SERVICE WORKER I $11.51 $15.00 $15.30 $15.61 $15.92

FORKLIFT OPERATOR II $20.77 $21.29 $21.82 $22.47 $23.14

FUELS DISTR. SYSTEMS

OPERATOR

II $22.02 $22.57 $23.13 $23.82 $24.53

GARDNER II $15.84 $16.24 $16.65 $17.15 $17.66

GENERAL CLERK I I $13.78 $15.00 $15.30 $15.61 $15.92

GENERAL CLERK II (GATE

GUARD)

I $15.46 $15.85 $16.25 $16.74 $17.24

GENERAL CLERK III II $16.94 $17.36 $17.79 $18.32 $18.87

GENERAL CLERK IV II $18.50 $18.96 $19.43 $20.01 $20.61

GENERAL MAINTENANCE

WORKER

II $18.34 $18.80 $19.27 $19.85 $20.45

HAZMAT STORAGE

SPECIALIST

II $27.93 $28.63 $29.35 $30.23 $31.14

HEAVY EQUIPMENT

MECHANIC

II $25.16 $25.79 $26.43 $27.22 $28.04

HEAVY EQUIPMENT

OPERATOR

II $23.33 $23.91 $24.51 $25.25 $26.00

HOUSING REFERRAL

ASSISTANT

II $22.63 $23.20 $23.78 $24.49 $25.22

HRAC MECHANIC III $24.17 $25.26 $26.02 $26.93 $27.87

INSTRUMENT MECHANIC II $23.33 $23.91 $24.51 $25.25 $26.01

JANITOR I $13.40 $15.00 $15.30 $15.61 $15.92

LABORER I $12.11 $15.00 $15.30 $15.61 $15.92

LIBRARIAN II $25.99 $26.64 $27.31 $28.13 $28.97

LIFEGUARD II $15.83 $16.23 $16.64 $17.14 $17.65

LINE HANDLER II $23.81 $24.41 $25.02 $25.77 $26.54

LOCKSMITH II $22.08 $22.63 $23.20 $23.90 $24.62

MACHINERY MAINT.

MECHANIC

II $24.07 $24.67 $25.29 $26.05 $26.83

MACHINIST. MAINTENANCE II $23.33 $23.91 $24.51 $25.25 $26.00

MAID or HOUSEMAN I $11.37 $15.00 $15.30 $15.61 $15.92

MAINTENANCE TRADES

HELPER

I $14.91 $15.00 $15.30 $15.61 $15.92

MATERIAL EXPEDITOR II $26.58 $27.24 $27.92 $28.76 $29.62

MATERIAL HANDLER

LABORER

I $14.87 $15.00 $15.30 $15.61 $15.92

MILL WRIGHT II $23.33 $23.91 $24.51 $25.25 $26.01

MOTOR VEHICLE

MECHANIC

III $21.73 $22.71 $23.39 $24.21 $25.06

MOTOR VEHICLE

MECHANIC HELPER

I $14.91 $15.00 $15.30 $15.61 $15.92

ORDER CLERK I II $16.04 $16.44 $16.85 $17.36 $17.88

ORDER CLERK II II $17.51 $17.95 $18.40 $18.95 $19.52

PAINTER, AUTOMOTIVE II $20.60 $21.12 $21.65 $22.30 $22.97

PAINTER, MAINTENANCE III $22.08 $23.07 $23.76 $24.59 $25.45

PEST CONTROLLER I II $18.10 $18.55 $19.01 $19.58 $20.17

PEST CONTROLLER II II $21.73 $22.27 $22.83 $23.51 $24.22

PHOTOGRAPHER IV II $24.50 $25.11 $25.74 $26.51 $27.31

PIPEFITTER MAINTENANCE II $23.90 $24.50 $25.11 $25.86 $26.64

PLUMBER, MAINTENANCE III $22.64 $23.66 $24.37 $25.22 $26.10

PNEU DRAULIC SYSTEMS

MECHANIC

II $23.33 $23.91 $24.51 $25.25 $26.01

PRODUCTION CONTROL

CLERK/DISPATCHER

III $24.61 $25.72 $26.49 $27.42 $28.38

QUALITY CONTROL

SPECIALIST

III $20.13 $21.04 $21.67 $22.43 $23.22

QUALITY CONTROL

SPECIALIST/PLANNER

III

New $24.00 $24.72 $25.59 $26.49

RECREATION SPECIALIST II $21.02 $21.55 $22.09 $22.75 $23.43

RENTAL CLERK II $18.87 $19.34 $19.82 $20.41 $21.02

REPORTER/WRITER II $21.65 $22.19 $22.74 $23.42 $24.12

SALES CLERK I $13.17 $15.00 $15.30 $15.61 $15.92

SAFETY INSPECTOR II $29.07 $29.80 $30.55 $31.47 $32.41

SECRETARY II II $21.37 $21.90 $22.45 $23.12 $23.81

SECRETARY III II $21.89 $22.44 $23.00 $23.69 $24.40

SHEET METAL WORKER,

MAINTENANCE

II $24.16 $24.76 $25.38 $26.14 $26.92

SHIPPING PACKER II $20.22 $20.73 $21.25 $21.89 $22.55

SHIPPING/RECEIVING CLERK II $20.22 $20.73 $21.25 $21.89 $22.55

SPORTS OFFICIAL II $15.83 $16.23 $16.64 $17.14 $17.65

STEVEDORE I II $22.66 $23.23 $23.81 $24.52 $25.26

STEVEDORE II II $24.93 $25.55 $26.19 $26.98 $27.79

STOCK CLERK II $23.92 $24.52 $25.13 $25.88 $26.66

SUPPLY TECHNICIAN II $24.33 $24.94 $25.56 $26.33 $27.12

TEST EXAMINER II $21.37 $21.90 $22.45 $23.12 $23.81

TOOLS AND PARTS

ATTENDANT

II $20.77 $21.29 $21.82 $22.47 $23.14

TRUCK DRIVER, LIGHT (SML

CFT OPR)

II $17.14 $17.57 $18.01 $18.55 $19.10

TRUCK DRIVER, HEAVY

TRUCK

II $18.32 $18.78 $19.25 $19.83 $20.42

TRUCK DRIVER, MEDIUM

TRUCK

II $17.38 $17.81 $18.26 $18.81 $19.37

TRUCK DRIVER, LIGHT

TRUCK

II $14.74 $15.00 $15.30 $15.61 $15.92

VENTILATION EQUIPMENT

TENDER

II $15.46 $15.85 $16.25 $16.74 $17.24

WAITER/WAITRESS I $11.15 $15.00 $15.30 $15.61 $15.92

WAREHOUSE SPECIALIST III $20.77 $21.70 $22.35 $23.13 $23.94

WELDER, COMBINATION,

MAINT.

II $22.29 $22.85 $23.42 $24.12 $24.84

WORD PROCESSOR III II $22.64 $23.21 $23.79 $24.50 $25.11

Exhibit Notes:

Note I: Lead Pay. Lead pays $1.00 differential. Shops requiring a lead to be designated by management. At the inception of this agreement includes janitorial, and HRAC, Warehouse.

Note II: Night Shift Differential. Persons assigned to either the swing shift or the night shift will receive a $1.00 per hour shift differential.

Note III: Desk Clerk. The rate of Desk Clerk will become that of General Clerk II.

ARTICLE XXI – HOLIDAYS

Section 1. The Company will observe the following SCA holidays and a floating holiday with pay:

New Year’s Day Labor Day Martin Luther King’s Birthday Floating Holiday President’s Day Veteran’s Day Memorial Day Thanksgiving Day Independence Day Christmas Day

*Juneteenth Day

Floating Holiday. Qualifies as an additional Vacation Day and/or Day off with pay for that physical year. Floating Holiday must be used once a year and does not qualify for sick leave. Approval by

Management for use of the floating holiday will be on a first come/first served basis and based on operational needs.

*Juneteenth. Will be considered a Holiday upon inclusion into the service contract.

Section 2. When a holiday falls on an employee’s first designated day off in the workweek, the preceding scheduled workday shall be observed as the holiday.

Section 3. When a holiday falls on an employee's second designated day off in the workweek, the following scheduled workday shall be observed as the holiday.

Section 4. All employees whose work schedules permit will be entitled to have the day off and shall receive their regularly scheduled straight time pay as holiday pay.

Section 5. In case the Company requires an employee to work on a designated holiday, the employee will receive the applicable holiday pay, and, in addition, the work performed by such employee shall be paid for at their regular straight time rate.

Section 6. An employee, who has been notified at least twenty-four hours in advance to work on a holiday and who does not work without a valid excuse, shall receive no holiday pay for that day.

Advance notice may be less than twenty-four hours in case of an emergency.

Section 7.

a) An employee, who has an unexcused absence on a scheduled workday immediately preceding or immediately following a holiday, will receive no holiday pay for such holiday unless the employee has notified the supervisor in writing, prior to the holiday, that the employee will be absent.

b) If an employee calls in sick on a scheduled workday immediately preceding or immediately following a holiday, they must provide a doctor's note to receive holiday pay.

ARTICLE XXII - VACATION

Section 1. Allowances. The vacation year for eligibility and service credit shall be from the employee's seniority date (as defined in Article X, Section 2a [definitions]). Paid vacation will be awarded as follows:

a) An employee with one (1) year of service, but less than three (3) years of service will be awarded up to 10 days (2 weeks) vacation annually.

b) An employee with three (3) years of service will be awarded up to 20 days (4 weeks) of vacation annually.

c) An employee with nine (9) years of service will be awarded up to 25 days (5 weeks) of vacation annually.

d) Earned vacation hours shall be calculated in accordance with Company Policy.

e) Vacation benefits will not be computed on overtime hours.

f) It is the intent and desire of both parties that all employees take vacation time for their own health and well-being. Consequently, the employee and the company will work diligently to schedule vacation time to be utilized during the course of the any year.

g) Monthly accruals of vacation time can be used by the employee after the ninety

(90) day probation period. Up to eighty (80) hours shall be allowed to carryover year to year. In the event that there is an excess of eighty (80) hours of leave accumulated in any given year, a minimum of eighty (80) hours must be carried over and the balance paid out on the date of seniority at the employee's current rate of pay.

h) Pay in advance will not be provided for vacation periods.

i) Employees leaving the Company will be paid for all fully earned unused vacation upon termination.

Section 2. Scheduling. Vacation requests must be made in writing to their supervisor ten (10) calendar days prior to the vacation start date. The Company reserves the right to approve or deny vacation requests based on business operations. Vacation may be used in increments of no less than one (1) hour.

ARTICLE XXIII – JURY DUTY

Regular employees will be granted time off to serve on jury duty when summoned to do so. Employees must give a copy of the jury duty summons to their supervisor as soon as possible so that the supervisor will be able to make arrangements to accommodate their absence. Employees may request paid time off or leave without pay for such purposes.

Of course, employees are expected to report for work whenever the court schedule permits or when you are relieved of jury duty, even if this is earlier than originally anticipated.

When you return from jury duty leave, you must also be prepared to provide proof from the court of your actual attendance as a juror.

ARTICLE XXIV – BEREAVEMENT LEAVE

Section 1. An employee with the Company shall be given up to three (3) paid workdays off to attend the funeral of his immediate family.

"Immediate family" shall be considered as follows:

Spouse, parents, children, siblings, grandparents, and grandchildren and in-laws and step relationships to the same degree. Special consideration will also be given to the death of any other person whose association with the employee is similar to any of the above relationships.

Section 2. Employee may be required to provide proof of claim.

ARTICLE XXV – SICK LEAVE

Section 1. The use of sick leave is provided to cover paid time away from work in the event that an employee is ill or injured and unable to work in accordance with the employee's terms and conditions of employment.

a. Absences for illnesses for three (3) or more consecutive working days require a doctor's note. The Company reserves the right to reasonably request a medical examination if it is apparent the employee may have a medical issue that may affect safety or work performance. Hospitalization of any duration, absence for workers compensation or FMLA require a physician's release for work statement.

b. Employees who become ill or injured during working hours must report to their supervisor before departing, except during a medical emergency.

c. Sick leave will be awarded per the terms of the Health and Welfare Plan.

d. Sick Leave will not be computed on overtime hours.

e. Sick leave is accrued during probationary periods. However, it may not be used until the employee has passed their 90-day probationary period.

f. Payment of unused sick leave is not allowed.

g. Sick Leave may be accumulated up to a total of 160 hours. Earning potential will cease at 160 hours.

h. Sick Leave is accrued at the rate of 6.67 hours per month.

ARTICLE XXVI - OVERCLASSIFICATION

All employees who perform work in a higher job classification will receive the applicable rate of pay for such classification while engaged in such work.

ARTICLE XXVII - INSURANCE

Section 1. Defense Base Services, Inc. will pay into the IBEW 1260 members health and welfare plan the rates listed below per hour for all regular hours worked for health insurance. The health fund will provide health benefits via the Guam insurance carrier. Should the Health &Welfare cost be less than the per hour rate, the difference will be placed as a part of the employee’s taxable earnings. Hours capped at 40 paid hours per week.

11/01/22 11/01/23 11/01/24 11/01/25 $6.50 $7.00 $7.25 $7.50

Section 2. With adequate notice to the company, and in compliance of all sections of this article, the Union will have the option before the annual open enrollment period, to provide a group benefits plan package for all members once annually and 30 days before open enrollment.