Attachment_01_Cherry_Point_CBA_Final_2017-2020.pdf

Collective Bargaining Agreement

Agreement Between

Logistics Solutions Group, Inc. / LBM, Inc.

AND

District Lodge 110 Local Lodge 2296

International Association of Machinist and Aerospace Workers

Naval Air Depot Transportation Services MCAS Cherry Point, North Carolina

January 1, 2017 – December 31, 2020

Union CBA

Effective 1 January 2017 i.

Contents

Preamble

Article 1 Recognition

Section 1

Section 2

Article 2 Non-Discrimination

Article 3 Management Rights

Section 1

Section 2

Section 3

ARTICLE 4 UNION ACCESS TO OPERATIONS

Section 1

Section 2

ARTICLE 5 UNION MEMBERSHIP

Section 1

Section 2

Section 3

Section 4

ARTICLE 6 ASSIGNMENT OF SHOP CHAIRMAN

Section 1

Section 2

ARTICLE 7 SUBSTANCE ABUSE POLICY

ARTICLE 8 NO STRIKE/NO LOCKOUT

Section 1

Section 2

Section 3

Section 4

ARTICLE 9 SECURITY

Section 1

Section 2

Section 3

Section 4

ARTICLE 10 NEW JOBS

Section 1

ARTICLE 11 PROMOTIONS

Section 1

Section 2

Section 3

Section 4

ARTICLE 12 SENIORITY

Section 1

Section 2

Section 3

Section 4

Section 5

Section 6

ARTICLE 13 LAYOFFS AND RECALL

Section 1

Section 2

Section 3

ARTICLE 14 DISCIPLINE

Section 1

Section 2

Section 3

Section 4

ARTICLE 15 GRIEVANCE PROCEDURE

Section 1

Section 2

Section 3

Section 4

Section 5

Section 6

Section 7

Section 8

ARTICLE 16 ARBITRATION PROCEDURE

Section 1

Section 2

Section 3

Section 4

ARTICLE 17 HOURS OF WORK

Section 1

Section 2

ARTICLE 18 OVERTIME

Section 1

Section 2

Section 3

Section 4

Section 5

ARTICLE 19 LEAVE OF ABSENCE

Section 1

Section 2

Section 3

Section 4

Section 5

ARTICLE 20 HOLIDAYS

Section 1

Section 2

Section 3

Section 4

ARTICLE 21 VACATION

Section 1

Section 2

Section 3

ARTICLE 22 SICK LEAVE

Section 1

Section 2

Section 3

ARTICLE 23 BEREAVEMENT

Section 1

Section 2

Section 3

ARTICLE 24 WAGE RATE SCHEDULE

Section 1

Section 2

Section 3

ARTICLE 25 HEALTH & WELFARE

Section 1

Section 2

ARTICLE 26 PENSION & SAVINGS

Section 1

Section 2

ARTICLE 27 TRAVEL

Section 1

Section 2

ARTICLE 28 MISCELLANEOUS PROVISIONS

Section 1

Section 2

Section 3

Section 4

Section 5

Section 6

Section 7

Section 8

Section 9

Section 10

ARTICLE 29 EFFECT OF LAW

ARTICLE 30 SUCCESSORS AND ASSIGNS

ARTICLE 31 TERM AND NOTICE OF CHANGE OR TERMINATION

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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, benefits 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.

This agreement is dated the 1 st day of July 2016, by and between Logistics Solutions Group

(LSG) Inc. and all Sub Contractors (hereinafter referred to as the Company or Employer) and

The International Association of Machinists and Aerospace Workers District Lodge 110, Local

Lodge 2296, AFL-CIO, (hereinafter referred to as "the Union"). This agreement is effective the st day of January 2017.

Article 1 Recognition

Section 1 The Company recognizes the Union, its designated agents and representatives, its successors and/or assigns, as the sole and exclusive collective bargaining agent on behalf of all of the employees of the Company within the bargaining unit as hereinafter defined, with respect to wages, benefits, and all other terms or conditions of employment.

Section 2 All Employees of the Company at its Naval Air Depot location performing transportation services at Marine Corps Air Station, Cherry Point, North Carolina, as certified by the National

Labor Relations Board in Case Number ll-RC-6491 for the purpose of collective bargaining with respect to wages, hours of work and other conditions of employment for all full time and regular part-time employees in the bargaining unit as herein defined, and hereinafter referred to as

"Employees," excluding all salaried employees, technical/professional employees, office clerical employees, guards and supervisors as defined in "The Act."

Article 2 Non-Discrimination

The Company and the Union separately and jointly recognize their obligation to abide by those state and federal laws relating to equal employment opportunity, OSHA, nondiscrimination, or other labor laws that may apply to this location. 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 provisions of this agreement shall be applied among all employees in a fair and equitable manner.

Article 3 Management Rights

Except as modified by a specific provision of this Agreement, the Company reserves and retains all of its normal and inherent rights with respect to the management of the business, including

(without limiting the generality of the foregoing) its right to establish or continue policies, practices, and procedures for the conduct of the business; to select and direct the working force, P a g e | 2 to establish, eliminate, change, or combine work schedules and work assignments; to transfer, promote or demote employees, or to lay off, terminate or otherwise relieve employees from duty for lack of work or other legitimate reasons; to subcontract work which is not intended to result in the permanent displacement of current bargaining unit employees; to make and enforce rules for the maintenance of discipline; to suspend, discharge or otherwise discipline employees for just cause; to establish the methods, processes and means of providing services; and otherwise to take such measures as management may determine to be necessary to the orderly, efficient or economical operation of the business. It is understood and agreed that any of the powers and authority which the Company had prior to the signing of this Agreement are retained by the

Company except those specifically modified, delegated or granted by this Agreement.

The Company agrees to meet and confer with the Union prior to the implementation of new policies or changes in existing policies.

Section 3 The Company shall post a copy of all policies in the work area and provide the Union with a copy of its policies.

ARTICLE 4 UNION ACCESS TO OPERATIONS

The Company agrees that the Grand Lodge Representative and/or Business Representative shall be allowed to visit employees while they are on the job in the Company’s operations for the sole purpose of investigating grievances or complaints related to the provisions of this Agreement or insuring the terms and conditions of the Agreement are being complied with.

Prior approval will be obtained from the Project Manager or his designee and such visits shall not interfere with production of work being performed. Such approval shall not be unreasonably withheld. The Representative shall notify the Project Manager or his designee when they are arriving and leaving the Company’s operations.

The Company, if it desires, may have a Company Representative accompany the Union

Representative while they are visiting its operations recognizing that the Union Representative is entitled to private conferences with any represented employee.

ARTICLE 5 UNION MEMBERSHIP

Agency Shop - As a condition of employment, all present bargaining unit employees shall become members of the Union or pay an agency fee to the Union equal to the amount of monthly dues (but not both) within thirty (30) days of execution of this Agreement. All new employees shall become and remain members of the Union or pay an agency fee not later than ninety (90) calendar days of their date of hire or transfer.

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Check-off- Upon receipt of a signed authorization of the employee involved, the Company shall deduct from the employee's pay, the initiation fee, if any, and dues payable by him to the Union during the period provided for in said authorization. Deductions shall be made on account of dues and/or initiation fees, if appropriate, from each paycheck in each month of the employee after receipt of the authorization. Employees working less than 15 days per month may pay dues directly to the Union. The parties agree that check-off authorizations shall be on a form as approved by the Union.

The sums deducted as stated above shall be forwarded to the designated financial officer of the

Union no later than the fifteenth (15th) day of the month following the month in which deductions are made.

Section 4 The Union will indemnify and hold the Company harmless from and against any and all claims, demands, charges, complaints or suits instituted against the Company which are based on or arise out of any action taken by the Company in accordance with or arising out of the foregoing provisions of this Article, or in reliance on any list, notice or assessment furnished under any of such provisions.

ARTICLE 6 ASSIGNMENT OF SHOP CHAIRMAN

It is hereby understood and agreed that the Union may assign one (1) Shop Chairman/Steward on each shift and up to 2 stewards on day shift to represent bargaining unit employees on the first shift and one (1) Steward on the second shift. The alternate Shop Chairman/Steward shall only act in the absence of the Shop Chairman. The Union shall notify the Company in writing on

Union letterhead of the individuals so selected in this capacity.

It is agreed that Stewards have full-time job duties to perform as employees and that they shall keep time spent in handling grievances to a minimum. A steward will notify and obtain permission from their supervisor before leaving their work assignment. If a steward is not released, they shall be notified as to the nature of the delay and the expected time in which they may leave. Time limits as specified in the grievance procedure elsewhere in this agreement shall be extended in relation to any delay.

ARTICLE 7 SUBSTANCE ABUSE POLICY

The Company and the Union are committed to providing employees with a drug-free and alcohol-free workplace. It is the goal of both parties to protect the health and safety of employees and to promote a productive workplace, as well as to protect the reputation of the Company, the

Union, and the employees. Consistent with these goals, the Company prohibits the use, possession, distribution, or sale of drugs, drug paraphernalia, or alcohol on Company premises.

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The Company also prohibits an employee from being under the influence of illegal drugs or alcohol while at work. Bargaining unit employees may be subject to drug and alcohol testing under the Company’s substance abuse policy. The Company agrees that any such testing will be conducted in compliance with applicable federal or state regulations. All drug and alcohol testing will be at the expense of the company.

ARTICLE 8 NO STRIKE/NO LOCKOUT

The Union agrees that neither it nor any of the employees in the bargaining unit covered by this

Agreement will collectively engage in or participate in an strike, slowdown or stoppage of work during the term of the Agreement.

In the event of any violation of Section 1 of this Article, the Union, within forty-eight (48) hours following written notice from the Company, will take all reasonable steps required to bring an end to such action and advise the employees to return to work.

The Union shall be limited to the performance of the actions as stated above and upon compliance the Union and its officers, agents and members shall have no further liability during the term of the Agreement or thereafter for any damages suffered by the Company arising from or out of any stoppage or strike.

If the reasonable steps attempted in Section 2 do not return the striking employees to work then the employees may be subject to discipline or discharge by the Company.

The Company agrees that for the duration of the Agreement there shall be no effort to lockout or in any way deny access or work for employees covered by the Agreement.

ARTICLE 9 SECURITY

The Union recognizes that the Company may now have, or may incur in the future, obligations with respect to the security of information and materials under contract with the Government.

The Union agrees that nothing contained in this Agreement shall place the Company in violation of security agreements with the Government.

It is understood by and between the parties hereto that, as a necessary condition of continued employment, employees shall be subject to investigation for security clearance or national agency check and/or unescorted entry authorization under regulations prescribed by the

Department of Defense, or other agencies of the United States Government on governmental

P a g e | 5 work, and that denial or withdrawal of such clearance and/or unescorted entry authorization by such governmental agency shall be cause for release from the Company due to inability to meet job requirements. All security clearance and background checks will be at the expense of the company.

The Company shall reinstate the seniority of an employee who was denied security clearance if reinstated by the Federal Government. Any employee whose seniority is reinstated under this provision will be reinstated in his previously held occupational title.

ARTICLE 10 NEW JOBS

When new jobs are required that cannot be properly encompassed within an existing job classification, the Company shall notify the Union in writing of the requirements. The Union shall have thirty (30) days from the date of receipt of notice in which to request collective bargaining regarding the rate of pay and benefits. If necessary, this matter is subject to time grievance procedure up to and including arbitration.

ARTICLE 11 PROMOTIONS

The Company shall transfer employees to any open position(s) from within the bargaining unit if employees have the skill and ability necessary to do the work. If two (2) or more employees are eligible and express an interest, seniority shall be considered if qualifications are substantially equal. If no employee within the bargaining unit possesses the skills and abilities to fulfill the open position, the Company may use other means of filling such vacancies and shall notify the

Union of such intent.

The Company will notify bargaining unit employees of any openings to be filled by posting such openings on Company bulletin boards at least seven (7) calendar days prior to filling such vacancies. The postings shall contain the position(s) open and the method that employees may apply for such openings. The Company will notify all employees not present when openings occur in order for those employees not to be bypassed for promotion considerations.

Upgraded employees will be considered on probation in the new position for thirty (30) days after upgrading. During this period, the Company may, at its discretion, reclassify the employees to their former occupations if it is determined by the Company that the employee is not fully meeting the qualifications for that job classification.

The Company may temporarily upgrade an employee to a higher paid classification. The employee shall receive the pay rate for the classification of work that they are performing and for duration period work is performed, as long as work is performed for a minimum of two (2) hours

P a g e | 6 or more. Promotion and Seniority rules apply to all promotions to a higher paid classification.

Temporary Promotions shall not be used to circumvent promotion to any regularly permanent position and shall not be used in excess of thirty (30) days.

ARTICLE 12 SENIORITY

Probationary Period- New employees shall be on probation for ninety (90) calendar days from the initial hire date during which time they may be discharged at the sole discretion of the

Company. If retained after the probationary period, their names shall be placed on the Seniority

List as of their date of hire.

Definitions- Seniority is defined as including the whole span of continuous service with the present contractor, their successors and assigns, in the performance of transportation services at the Cherry Point facility. Seniority will not be broken for:

1. periods of approved absence with leave.

2. periods of layoff due to lack of work less than eighteen (18) consecutive months.

3. periods of absence due to workers comp injury or illness less than eighteen

(18)consecutive months.

Seniority List- A seniority list will be maintained by the Company and will be made available to the Union semi-annually or upon 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. Employees transferring from other sites within the company retain their original seniority date for benefit and vacation purposes only.

Personnel Actions- Seniority will not be used as a factor in personnel actions; provided however, that seniority will be considered by the Company in making layoff, recall and promotion decisions depending on time requirements of the Company’s contract with the Government; and if all other, including but not limited to qualification, skills, and ability are equal.

Section 5 Employee Transfers- An employee who has established seniority rights within the bargaining unit and who is transferred to a position not covered by this agreement shall retain seniority rights for a period of ninety days.

Section 6 Steward Seniority- A Steward shall not have their shop, shift or other working conditions changed by the Company for any reason except by mutual agreement of the parties.

ARTICLE 13 LAYOFFS AND RECALL

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Layoff Notice- When it becomes necessary to reduce the number of employees in a classification and or job specialty, the employees in a job specialty shall be laid off in accordance with their seniority. Employees with Seniority who are qualified to perform the work in a lower paid classification can bump/retreat into the position if the employee in the lower classification has less seniority. The company shall notify the Union and affected employees as soon as the facts are known to the Company of upcoming layoffs.

Recalls- Employees laid off will be recalled as follows:

In accordance with their seniority, the Company shall recall employees who have been laid off for less than 18 months. If attempts to contact the employee via telephone, in the presence of a

Union official, are unsuccessful the company shall send recall notices by certified or signature receipt mail, to employees last known official address. The notice will instruct laid off employees when to report to work. The employee has ten (10) working days after receipt of the notice to report to work. If the employee does not report to work within ten (10) working days, the employee will be deemed to have abandoned their job and will be removed from the

Seniority List. The Company agrees that an employee may request a later return to work date for extenuating circumstances.

Change of Contract- The Company shall notify the Union as soon as the facts are known that there may be a change in the status of the Company’s contract with the Customer to include contact information for any successor contractors.

ARTICLE 14 DISCIPLINE

Disciplinary action shall only be initiated by the Company for just and sufficient cause, and any penalty imposed will be consistent with proven offenses, and with the exception of egregious acts such as drug use, fighting, gross insubordination or abandonment of job, the principle of progressive discipline shall be adhered to, as set forth below.

There shall be a six (6) month reckoning period for any verbal disciplinary action taken. There shall be an 18 month reckoning period for any mishap that results in personal injury or property damage when the employee is at fault and disciplinary actions have been recorded. A one (1) year reckoning period for other disciplinary action taken, after which all reference to the matter shall be removed from the employee’s record, provided the employee has not committed and been counseled for any infraction of the same rule for which they were disciplined during the reckoning period.

For minor infractions of Company rules, such as, but not limited to, absenteeism, tardiness, and poor work performance. A four (4) step procedure will be followed of oral reprimand, written reprimand, suspension and finally discharge. However, at the final step of the procedure the

Company may elect to enforce another suspension rather than a discharge without prejudice to any other incident.

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Employee(s) shall have the right to Union representation during any interview that may be disciplinary in nature or lead to any discipline. Employee(s) shall be notified of these rights prior to any such interview taking place. The Steward shall be notified and the Union shall be given the opportunity to attend such interviews.

ARTICLE 15 GRIEVANCE PROCEDURE

Grievances or complaints arising between the Company and its employees subject to this

Agreement, or the Company and the Union, with respect to the interpretation or application of any of the terms of this Agreement, shall be settled according to the following procedure

Employee Grievance: All grievances beyond Step 1 below, involving employee claims shall be in writing on grievance forms provided by the Union and shall be signed by all employees claiming rights thereunder. 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 their Steward, shall promptly bring a grievance to their supervisor within five (5) calendar 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 employees shop steward may bring the grievance to the supervisor. If a satisfactory decision is not reached within five (5) calendar days then:

Step 2: Within ten (10) calendar days following the Step 1 decision, 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 Steward and taken up with time Project

Manager. A grievance meeting will be scheduled within five (5) working days. Within five (5) calendar days following the grievance meeting, the Company will reply in writing. If the written reply is not satisfactory then

Step 3: Within ten (10) calendar days of the Step 2 reply, the grievance may be moved to Step 3 by written appeal to the Company President or designee. The Company President or designee, and the Business Representative or designee of the Union shall meet within ten (10) calendar days after receipt of the grievance into a third step. A written reply from the Company President will be given to the Union within ten (10) calendar days after the meeting. If no agreement has been reached after the Step Three meeting, the Union may submit the grievance or dispute to arbitration as covered in the "Arbitration Procedure" Article 16.

Union grievance- Processing of grievances which the Union may have against the Company shall begin at Step 3, Section 2 of this article and shall be limited to matters dealing with the interpretation or application of terms of this Agreement. Such grievance shall be submitted in writing to the designated representative of the Company. The grievance shall be in writing and signed by the designated representative of the Union and submitted within fifteen (15) working

P a g e | 9 days from the date of the event or discovery of event giving rise to such grievance. The

Company President or designee, and the Business Representative or designee of the Union, shall meet within ten (10) working days after receipt of the grievance into a third step. A written reply from the Company Labor Relations Representative will be given to the Union within ten (10) working days after the meeting. If no agreement has been reached the Union may submit the grievance or dispute to arbitration as covered in the "Arbitration Procedure" Article 16.

A settlement made with respect to any grievance in the 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 the Agreement.

Any aggrieved employee and Union representative shall have the right to be present at any stage of the grievance procedure in which the grievance is being considered.

The Union or its authorized representative shall have the right 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 records pertaining to a specific grievance. Compensation will be paid for reasonable time spent discussing or investigating grievances during normal work schedules.

Section 7 It is understood that the time limits specified herein may be extended by mutual agreement of the parties hereto.

Section 8 Nothing in this article precludes the union from filing a general grievance on behalf of an employee(s) in time event of unusual or unforeseen circumstances.

ARTICLE 16 ARBITRATION PROCEDURE

The Union and the Company agree to mediation prior to submitting any matter for Arbitration.

The Federal Mediation and Conciliation Service will administer this mediation as long as;

a) There is no cost to the parties.

b) Such decisions shall not be final and binding unless specifically agreed to.

c) Neither party may use said mediator, findings or opinion for arbitration.

The Union shall give written notice or email notice to the Company setting forth the matter to be arbitrated. If said notice is not served within ten (10) working day period following the Step 3 decision of the Grievance Procedure, it shall be deemed that the grievance has been satisfactorily adjusted and the right to arbitrate waived.

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In the event the Union submits a grievance to arbitration, a panel of seven (7) arbitrators will be requested from the Federal Mediation and Conciliation Service. The right to first strike a name will be determined by lot; the other party shall then strike a name. This procedure shall continue alternately until one (1) name remains.

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 arbitration will be borne equally by both parties.

ARTICLE 17 HOURS OF WORK

The normal workweek will begin at 12:01 a. m. Saturday and end at 12:00 midnight the following Friday. A normal work schedule will consist of five (5) consecutive eight-hour days.

a) A daily work schedule may begin on one calendar day and end on another.

b) Employees shall be given a period for lunch mid shift between thirty (30) minutes and one (1) hour in duration.

c) Determination of starting time and hours of work shall be made by the Company based on business requirements. For scheduled shift rotation, a one week notice will be provided. The starting time of the various shifts will be as follows:

First Shift: Beginning at or after 5:00AM but before ll:00AM

Second Shift: Beginning at or after l:00PM but before 8:00PM

After Hours work- For all hours worked before 5:00 AM and after 1:00 AM (0100) Monday thru

Friday, and weekends and holidays, employees shall receive $2.75 per hour as after hour differential for all hours worked during after hour’s periods as defined above. This differential shall be applied in addition to an overtime premium if overtime is applicable.

ARTICLE 18 OVERTIME

Overtime, at one and one-half (1-1/2) times the employees pay rate, shall be paid for all hours worked in excess of forty (40) hours in a work week.

There shall be no duplication or pyramiding of overtime payments.

Available overtime shall be rotated and equalized among qualified volunteers in order of seniority.

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An employee who is scheduled to work an overtime day and reports to work as scheduled and there is no longer work available, shall be compensated with a minimum of two (2) hours work or overtime pay.

Overtime requests shall posted on official company bulletin boards not later than the beginning of the shift the day preceding the overtime day. If employees are required to work the overtime, the Company shall first ask for volunteers starting with the most senior qualified employees. If unable to get enough volunteers the least senior qualified employee shall work the required overtime. Once the least senior qualified employee has been drafted for overtime, he shall not be drafted for overtime again until each successive senior qualified employee has been drafted.

Employees may be excused from the draft procedure for bona fide reasons, however, no employee will be consistently excused from such overtime.

ARTICLE 19 LEAVE OF ABSENCE

Personal Leave- The Company may in its sole discretion approve a leave of absence without pay up to ninety (90) calendar days for personal reasons. The 90 day limit may be extended by agreement of the Company in its sole discretion. Such leave must be requested in writing and approved by the Project Manager through the employee’s supervisor. Said request must also state the reason for the unpaid leave. Employees must request such leave at least five (5) calendar days prior to the date the leave would commence, except in cases of emergency.

Employees may exercise their rights under the Family Medical Leave Act.

Failure to Return to Work from Leave of Absence- Failure to return from leave of absence on the first scheduled work day following the expiration date of said leave without prior approval may result in disciplinary action being imposed by the Company.

Military Leave- Employees ordered to active duty for annual training with the National Guard or

Reserve component of organized military reserve units, shall be granted a leave of absence not to exceed a maximum of ten (10) working days each fiscal year. The employee must furnish the

Company a copy of their military orders at the time the leave is requested. Such leave of absence shall be referred to as military leave. Employees may request vacation pay while on an approved military leave.

Jury Duty- Bargaining unit Employees who are required by proper court order or summoned to be absent from work in connection with jury duty will be paid up to six (6) hours of attendance per day at their regular pay rate with certified proof of jury service and time from the clerk of court. If the court is located outside of their county of residence they will receive eight (8)hours of pay. If an employee is called for jury duty, they shall promptly notify the Employer in order

P a g e | 12 that arrangements may be made for their absence. Receipt of a jury summons and proof of such service must be submitted to the Company. The Employee shall present to the Employer a signed jury card or other satisfactory evidence of the time served on such duty. Any employee scheduled to work third shift when he is called for duty shall not be requested to work the night before he is required to report for jury duty, and shall receive payment as outlined above.

Union Business- Bargaining unit employees that are required to travel for official Union business or attend official Union functions shall be granted a leave of absence for performing such business. While on such leave employees shall not lose any benefit of seniority.

Employees shall submit such requests for leave accompanied by official Union communication authorizing them to travel or act in such capacity. These requests will normally be made at least fourteen (14) calendar days in advance of such requirement.

ARTICLE 20 HOLIDAYS

The following ten (10) holidays will be provided with pay;

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

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

Government.

Employees shall be entitled to all holiday benefits now prescribed by Federal law and any that may later be added by law or executive order not to exceed eleven (11) holidays per year.

Employees who are required to work on a Holiday listed above will be paid 1 ½ times their rate of pay.

ARTICLE 21 VACATION

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The vacation year for eligibility and service credit shall be as established by the seniority date of each employee. Paid vacation will be awarded as follows;

a) An employee with one (1) year of service, but less than seven (7) years of service will be awarded two (2) weeks of vacation annually.

b) An employee with more than seven (7) years of service, but less than fifteen (15) years of service will be awarded three (3) weeks of vacation annually.

c) An employee with fifteen (15) or more years of service will be awarded four (4) weeks of vacation annually.

d) Employees may carry over a maximum of 40 hours from one benefit year to the next with approval of management. There will be no pay in lieu of time off for vacation except in cases of extenuating circumstances where employee’s vacation requests have been denied for business operations/circumstances. The intent of this provision is to cause each employee to use the vacation awarded for time off.

Vacations shall be paid at the employee’s working rate of pay at the time the vacation is taken.

e) Vacation time will be earned on the employee’s seniority date to reflect the annual rate for each employee.

Vacation requests must be made in writing to an employee’s supervisor fourteen (14) calendar days prior to the vacation start date, except that the supervisor may wave the fourteen (14) day requirement. The Company reserves the right to approve or deny vacation requests based on business operations. Once an employee's vacation is approved it shall not be altered by either party without mutual consent. Vacation may be used in increments of no less than eight (8) hour increments unless approved by management. The employer will allow an employee to use vacation leave in the event of an extended illness: cancer, heart condition, etc.

Leave Without Pay (LWOP) - In recognition of the need for a flexible and compassionate leave policy to assist employees to blend their work life and their family responsibilities, the Employer shall consider all reasonable and timely request from employees that meet the criteria. LWOP is a temporary non-pay status and an authorized absence from duty, which may be granted upon timely employee request. It should not be confused with absence without leave, which is charged for unauthorized absence, absence for which the employees’ leave request was denied or unjustified. The granting of LWOP is a matter of administrative discretion (not to exceed 10 days per calendar year), LWOP may only be requested after accrued leave (excluding sick leave) is expended. The Employer will grant LWOP for situations beyond the employees’ control:

Act of God (Weather Events resulting in Base Closure)

Government shut down of Facility

Personal reasons such as medical or personal business that cannot be scheduled outsides of business hours that are less than 2 hours not to exceed three incidents per year.

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ARTICLE 22 SICK LEAVE

In Accordance with Executive Order 13706 to be effective 1 January 2017 employees shall earn

Sick Leave at a rate of one (1) hour for every thirty (30) hours of paid time not to exceed 56 hours. Sick Leave may be used in increments of no less than four (4) hour unless approved by management. Sick Leave shall be paid at the employee’s current hourly rate.

Employees shall be allowed to carry over up to eight (8) hours of sick leave per year. Any other unused sick leave shall not be carried over and shall be paid out as cash in lieu of at the end of the calendar year. A calendar year for the purposes of this article shall be from January 1 to

December 31.

No medical evidence shall be required for any absences due to injury or sickness that does not exceed three (3) consecutive working days unless the employee has had three (3) undocumented sick day related absences within previous 90 calendar days.

ARTICLE 23 BEREAVEMENT

In the event of death of an employee’s immediate family, the employee shall receive three (3) day’s bereavement leave with pay and shall receive two (2) additional day with pay for travel over 250 miles. Proof of attendance to services with location must convey to receive approval for additional bereavement leave.

"Immediate family" shall be considered as follows; Spouse, parent, parent of spouse, legal guardian, child, dependent stepchildren, brother, sister, grandchild, or grandparent.

Employees will be required to give proof of attendance to services to include, a note from clergy or funeral director, service bulletin or related print.

ARTICLE 24 WAGE RATE SCHEDULE

The wage rates listed below will be effective for the term of this Agreement and apply to all

Bargaining Unit employees. An employee’s regular rate of pay shall be defined as their straight time hourly rate. Employees shall be compensated at the wage rate for the classification of work being performed. Employees will be classified in the position where they perform greater than

70% of their duties and will be compensated accordingly. Qualified employees who are temporarily assigned above their classification will accurately record that time and be compensated at the higher wage determination.

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This straight time hourly rate will be increased 2.5% annually as designated below. These increases will be effective on the dates indicated in this Agreement.

2017 2018 2019

Light Truck Driver 17.10 17.52 17.96

Mule Train Driver 17.10 17.52 17.96

Forklift Operator 18.94 19.42 19.90

Heavy Truck Driver 21.05 21.58 22.12

Tractor Trailer Driver 21.05 21.58 22.12

Bus Driver 21.05 21.58 22.12

Secretary II 21.78 22.33 22.88

Dispatcher 21.78 22.33 22.88

Lead Dispatcher 24.06 24.66 25.27

Automotive Worker 23.30 23.88 24.48

Truck Driver/Fuel Specialist 23.30 23.88 24.48

Section 2 Shift Work- Employees who are assigned to work second shift shall be paid an additional twenty-five (.25) cents per hour for all hours worked during the assigned shift. When assigning employees to other than first shift the Company agrees to utilize qualified volunteers to the greatest extent possible. Assigned for the purposes of this section means forced.

Hazardous Pay- Employees who transport ordnance materials shall receive one dollar (1.00) per hour pay differential paid in hourly increments.

ARTICLE 25 HEALTH & WELFARE

Insurance- The Employer will continue to provide a Health and Welfare Benefit for Health

Insurance through its current healthcare provider for all full time employees covered under this

Agreement as specified in the table below for all hours paid up to forty (40) hours per week. This benefit will be provided for new hires upon completion of thirty (30) days of employment. The

Parties agree to abide by the terms as set forth by the plan. Any unused monies from the benefit table below will be paid to the employees in accordance with the company’s current payroll policy.

The parties agree to make changes in Health and Welfare benefits in the event that changes can be found that are of increased benefit to employees and in conformance with the other provisions of this article.

Benefit Effective $4.75 Per Hour 01/01/2017

$5.25 Per Hour 01/01/2018 $5.75 Per Hour 01/01/2019

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Part-time employees-

a) Part-time employees shall be compensated at the same base wage rate as full-time employees at the current Health and Welfare Benefit rates per hour worked. Part-time employees shall be paid 6% of the base pay as compensation for holiday, sick, jury, and vacation for each hour worked.

Benefit Effective $4.75 Per Hour 01/01/2017

$5.25 Per Hour 01/01/2018 $5.75 Per Hour 01/01/2019

b) Part-time employees shall not be used in any way to circumvent the use of or replace any regularly held permanent position of a full time employee from being scheduled a 40-hour work week. Part time employees may be used to fulfill after hours work, may be scheduled during regular work hours if it does not effect permanent full time employees hours worked, and may be used to fulfill Company mission requirements in extreme cases and on an irregular basis.

ARTICLE 26 PENSION & SAVINGS

Pensions Plan-

a) The Company shall contribute to the I.A.M. National Pension Fund, National

Pension Plan for each hour for which employees in all job classifications covered by this Agreement are entitled to receive pay under this Agreement:

Company Contribution Effective $1.00 Per Hour 01/01/2017

$1.00 Per Hour 01/01/2018 $1.00 Per Hour 01/01/2018

b) The Employer shall continue contributions based on a forty (40) hour work week while an employee is off work due to paid vacations, paid holidays, paid sick leave or other paid time off, not to exceed 40 hours per week.

c) Contributions for a new, temporary, probationary, part-time and full- time employee are payable from the first day of employment.

d) The I.A.M. Lodge and Employer adopt and agree to be bound by, and hereby assent to, the Trust Agreement, dated May 1, 1960, as amended, creating the I.A.M.

National Pension Fund and the Plan rules adopted by the Trustees of the I.A.M.

National Pension Fund in establishing and administering the foregoing Plan pursuant to the said Trust Agreement, as currently in effect and as the Trust and

Plan may be amended from time to time.

e) The parties acknowledge that the Trustees of the I.A.M. National Pension Fund may terminate the participation of the employees and the Employer in the Plan if the successor collective bargaining agreement fails to renew the provisions of this pension Article or reduces the Contribution Rate. The parties may increase the

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Contribution Rate and/or add job classifications or categories of hours for which contributions are payable.

f) This Article contains the entire agreement between the parties regarding pensions and retirement under this Plan and any contrary provisions in this Agreement shall be void. No oral or written modification of this Agreement shall be binding upon the

Trustees of the I.A. M. National Pension Fund. No grievance procedure, settlement or arbitration decision with respect to the obligation to contribute shall be binding upon the

Trustees of the said Pension Fund.

Section 2 Savings Plan-

a) The Employer will make authorized weekly/biweekly pre-tax deductions of a percentage of the employee's current earnings for each pay period for any employee covered by this Agreement who has requested that such a payroll deduction be made.

b) All such deductions shall be remitted to the Fund two business days after the end of each pay period for which the deductions are made but in no event later than the tenth (10th) day of the month following the pay period for which the deductions are made.

c) Such deductions are required to be remitted to the Plan by the Employer and must be sent to:

I.A.M. National Pension Fund

IA.M.National401-K Plan

P.O. Box 64341 Baltimore.MD21264-4341

(or such other address as the Trustees may require)

d) The Employer agrees to make further deductions from the employee’s wages of any monthly amount required by the Plan to pay back a loan taken from the Plan by the employee if applicable. Such amounts will be deducted and remitted to the Plan in accordance with paragraphs (A), (B) and (C).

e) The Employer agrees to maintain and abide by any deferral election form provided by the employee to the Employer and to provide the Trustees of the Fund with all compensation and other data needed for the Trustees to administer the Plan in accordance with the terms of time lA. M. National 40l(k) Plan and applicable law.

f) The Employer agrees to be bound by, and hereby assents to, the Amended and

Restated Trust Agreement for the I.A. M National Pension Fund and by the terms of the I.A.M. National 40l(k) Plan currently in effect and as the Trust and Plan may be amended from time to time.

g) This Agreement contains the entire agreement between the Employer and the I.A.

M. National Pension Fund, IAM National 401(k) Plan for the participation of this group of employees. No oral or written modification of this agreement shall be binding unless agreed to in writing by the Trustees of the IAM National Pension

Fund. No grievance procedure, settlement, or arbitration shall be binding on the

Trustees of the IAM National Pension Fund.

h) This Agreement shall become effective upon its acceptance by the Trustees of the

IAM National Pension Fund. No employee deductions shall be remitted until notification of acceptance by the Trustees of the I.A. M. National Pension Fund.

i) The Employer understands that the participation in the Plan of its employees is

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Employer’s compliance with Sections 40l(a) (4), 410 (b) and 401(k) of the Internal

Revenue Code. Participation in the I.A.M. National 401(k) Plan is further conditioned upon the Plan not being a top-heavy Plan under Section 416 of the

Internal Revenue Code with respect to the Employer's non-bargaining unit employees.

j) The Employer agrees to provide the information and certifications required by the

Trustees to monitor compliance with the Plan and the Internal Revenue Code, including compensation and other information regarding all employees of the

Employer, If the Employer fails to comply' with Sections 40l(a) (4), 410 (b) or

401(k) of the Internal Revenue Code, or if the Plan is top-heavy with respect to the

Employer's employees, or if the Employer fails to provide information, certifications or additional sums required by the Trustees, the participation of the

Employer's employees shall terminate. In addition, the Trustees may in their discretion terminate this agreement at any time by 60 days' written notice.

ARTICLE 27 TRAVEL

Employees will be paid in accordance with a) and b) below when they are required to travel more than 25 miles from the normal work place to perform duties for the Company.

a) An employee, while on travel status, will be paid for:

1) All actual work time when such work has been assigned and approved in advance; and

2) Actual travel time by any conveyance; provided, however, that hours paid under 1) and 2) of this paragraph shall not be duplicative.

b) On the days of travel to and from a temporary work site the travel time shall commence when the employee departs home/hotel and cease when the employee reaches home/hotel. Should travel be necessary outside an employee’s normal daily work shift, the employee shall be paid in accordance with overtime rules as though they were at their normal duty location.

Over Night Travel. The company shall provide its employees that perform over the road driving that requires an overnight stay the following,

a) $100.00 cash advance for food and tolls for every day of travel.

b) A company credit card for lodging.

c) A customer credit card for repairs and fuel for customer equipment.

Employees shall provide all receipts to the Project Manager upon their return, at which time there will be a reconciliation of expenditures and the employee provided with a copy of all related documents. The amounts stated above shall be revised if it is found that they are not sufficient and cause an employee to incur undue personal expenses while performing such services.

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ARTICLE 28 MISCELLANEOUS PROVISIONS

Safety- The Company and the Union recognize the importance of safety in the workplace. The

Company will provide to bargaining unit employees with such safety items to include the following: $100.00 for the purchase of one (1) pair of safety shoes annually, ear plugs, safety glasses and gloves. The safety glasses and gloves will be provided to employees on a one for one exchange. Employees will be required to comply with all safety rules, and failure to do so may result in discipline up to and including discharge. The Company agrees to request from the customer any repairs or changes to the workplace if it is not in compliance with applicable safety standards.

Change of Address- Employees are responsible for notifying the Company of their proper mailing address and current telephone number. Laid off employees are also responsible for notifying the Company of their proper mailing address and current telephone number to maintain recall rights. The Company shall be entitled to rely upon its records and shall be held harmless for any action that may arise out of said reliance.

Bulletin Board- Subject to approval of the Customer, the Company will provide bulletin board space on a standard company bulletin board, located in the Company's facility and approved by the Union. The bulletin board space will be used by the Union solely for the purpose of conveying official information from the Union to bargaining unit employees.

Bargaining Unit Work- Non -bargaining unit employees in job classifications not covered by this

Agreement shall not perform work typically performed by employees in the bargaining unit except in cases of emergency. 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. The company agrees that none of the above circumstances as listed above will cause a bargaining unit employee to be laid off, displaced or excluded from overtime if they are willing to work.

Contributions to Machinists Nonpartisan Political League. Upon receipt by the Company of a signed voluntary authorization by an employee, on a form approved by the Company and the

Union requesting that there be deductions made from their wages, in a monthly amount designated by the employee, such deductions to be forwarded to the Union for use by the

Machinists Nonpartisan Political League. Such authorization will remain in effect for the duration of this…