DLM Attachment 11 - CBA Yuma 12-15-2017 to 12-14-2022.pdf

COLLECTIVE

BARGAINING AGREEMENT

between

AFFORDABLE ENGINEERING SERVICES, INC.

and

THE INTERNATIONAL ASSOCIATION OF

MACHINISTS AND AEROSPACE WORKERS, AFL-CIO

LOCAL LODGE SC 310

YUMA, AZ

Effective:

December 15, 2017 to December 14, 2022

CBA between AES and IAM&W

AFL-CIO, Local Lodge SC 310

Yuma, AZ i

Table of Contents

Preamble

Article 1.00 - Intent And Purpose

Article 2.00 – Management Rights

Article 3.00 – Union Recognition

Article 4.00 – Representation / Stewards

Article 5.00 – Deduction of Union Fees And Procedure

Article 6.00 – Non-Bargaining Unit Personnel

Article 7.00 – Seniority

Article 8.00 – Promotions / Bidding / Transfers

Article 9.00 – Leaves Of Absence

Article 10.00 – Holidays

Article 11.00 – Vacation

Article 12.00 – Overtime

Article 13.00 – Absence From Work

Article 14.00 – Hours Of Work

Article 15.00 – Government Security / Responsibility

Article 16.00 – No Strike / Lockout

Article 17.00 – Employee Benefits

Article 18.00 – The 401(k) Retirement Plan

Article 19.00 – Safety Items

Article 20.00 – Temporary Duty Assignments

Article 21.00 – Discharge And Discipline

Article 22.00 – Grievances And Arbitration

Article 23.00 – Paid Personal Time

Article 24.00 – Installation Of New And Revised Job Classifications

Article 25.00 – Bereavement

Article 26.00 – Wage Rules

Article 27.00 – Safety Equipment

Article 28.00 – Temporary Alternate Work

Article 29.00 – General

Article 30.00 – Training

Article 31.00 – Duration

Appendix A ................................................................................................................................. A-1

PREAMBLE

This Agreement is made and entered into upon ratification by and between Affordable Engineering

Services, Inc. (hereinafter referred to as “the Company”), and the International Association of

Machinists and Aerospace Workers, and Local Lodge SC 310 (hereinafter referred to as “the

Union”) with respect to work performed at the Marine Corps Air Station, MCAS Yuma, Arizona.

ARTICLE 1.00 - INTENT AND PURPOSE

1.01 This Agreement is made and entered into by and between Affordable Engineering Services, Inc. hereinafter referred to as “the Company" and the International Association of Machinists and

Aerospace Workers, AFL-CIO, Local Lodge SC 310 hereinafter referred to as “the Union" with respect to Government Contract Number N68936-17-C-0081 and any subsequent modification, alteration, award or successor award at the contracted operation between or with the Contract Field

Service Contract at MCAS Yuma, Arizona.

1.02 It is the intent and purpose of the parties to set forth herein the entire Agreement with respect to wages, hours and working conditions as covered by this Agreement.

1.03 It is recognized by this Agreement to be the duty of the Company, the Union and the employees to cooperate fully, both individually and collectively, to perform faithfully the obligations imposed by this Agreement.

1.04 There shall be no discrimination by the Company or the Union against any employee because of race, color, sex, creed, religion, national origin, age, disability, veteran status or other status protected by applicable federal, state or local law or regulations.

1.05 There shall be no discrimination, 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 authorized activity on behalf of the Union.

1.06 Nothing in this agreement shall prohibit the Union from fulfilling its legal obligation of representation.

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

1.08 The Union recognizes that the Company is a contractor to ARA and is by that relationship a Federal Government Contractor to the Department of the U.S. Navy, and is required at all times to meet contractual obligations. Nothing in this Agreement will prevent the Company from meeting its obligations and responsibilities as a Government contractor. The Union and the

Company agree to comply with the requirements that the U.S. Navy may impose on the Company and its employees to the degree necessary, subject to rebuttal by either or both parties through the grievance and arbitration procedures and/or the courts, if deemed necessary.

ARTICLE 2.00 – MANAGEMENT RIGHTS

2.01 Except as otherwise specifically provided in this Agreement, the Union recognizes and agrees that the management and control of the Company's business, operations, work force and facilities are exclusively vested in the management of the Company. The Company has the right to plan, direct and control the Company's business, methods, operations and work force; to hire, promote, transfer, and lay off employees and demote, discipline for just cause, suspend or discharge employees; and the right to determine the work to be performed, size of the workforce, schedules of work, and all services, processes and standards required by the customer or other

Government agencies; and the right to make reasonable rules not in conflict with this agreement.

It is not intended by the above recitation to limit any of the usual functions of management or to define all such functions. All matters which are not specifically covered by this agreement are solely functions and responsibilities of management. The Company will confer with the Union on effects as required.

Temporary Surge Accommodation: Due to the nature of the contractual work to be performed, employees may be brought in from other locations to perform specific assignments at Yuma

MCAS as the need arises, so long as there are no employees in the classification in which the work is to be performed on layoff, who are qualified to perform the assignments. Such action shall not cause the layoff any employee within the classification in the bargaining unit who is qualified to perform the work. The Company shall meet with the Union and inform them of the reasons for such work and expected duration. The use of this provision will be limited to specific documentable needs as directed by the customer and will be kept to a minimum. Bargaining unit employees will be offered first right of refusal for any weekend overtime offered, except as directed by the customer.

ARTICLE 3.00 – UNION RECOGNITION

3.01 The Company recognizes the Union certified by the National Labor Relations Board in

Case No. 28-RC-6621 as the exclusive representative. That Union is the International Association of Machinists and Aerospace Workers, AFL-CIO, Local Lodge SC 310

Included are: All full-time and regular part-time employees including Aircraft Mechanics, Sheet

Metal Mechanics, Aircraft Electricians employed by the Employer at its CFS Marine Corp Air

Station, Yuma, Arizona facility.

Excluded are: All other employees including Team Leads, Office Clerical Employees, Professional Employees, Management Employees, Guards, Watchmen and Supervisors as defined in the Act.

Previously, the list of excluded personnel had been: all other employees including Team Leads, Office Clerical employees, Professional employees, Management employees, Guards, Watchmen, and Supervisors as defined in the Act. However, under the current agreement, effective December

15th 2017, the Company and the Union recognize that when a bargaining employee is identified as a Team Leader, temporarily or permanently, that does not change their identification as included in the bargaining unit.

3.02 Union Bulletin Boards. The Company will provide Union bulletin boards (or part of a bulletin board) parallel to the Company bulletin boards for the Union to post official business of the Union. Legitimate Union notices are defined as:

a. Meeting notices

b. Official Union election results

c. Notices of Union appointments

d. Union social events

e. Notices not listed above must be approved by management

3.03 Additions to the work force, in accordance with Article 03.01, (to include new or revised classifications) will become bargaining unit employees, provided such jobs are within the bargaining unit.

ARTICLE 4.00 – REPRESENTATION / STEWARDS

4.01 The Company agrees and it is hereby understood that the Union shall designate and the

Company shall recognize one (1) Shop Steward and one (1) alternate Shop Steward. The Union shall notify the Company in writing on Union letterhead of the individuals so selected. The alternate Shop Steward shall act in the capacity of the Shop Steward in the event the Shop Steward is absent from the facility.

4.02 Subject to other provisions of this Agreement, reasonable and necessary time off from work during work hours, for the conduct of representational business, shall be authorized without loss of pay or benefits to permit the Steward to carry out his responsibilities under the grievance procedure to employees in their area of representation, providing the carrying out of these responsibilities will not unreasonably interfere with the assigned work duties of the Steward or the employee involved. The Union will ensure that the Steward engages only in those activities, which are authorized by this Agreement. Instances of alleged abuse or misuse of time by the Steward shall be brought to the attention of the Union, who shall take the action necessary to correct the problem.

4.03 The Steward shall secure the permission of his/her supervisor before leaving his/her work station for purposes of processing grievances, reporting back to his/her supervisor upon return to his/her work station. The Steward shall not be denied such permission without good cause. If permission is denied, the supervisor and steward will mutually establish an alternate time at which the Steward can carry out his/her processing of grievances.

4.04 The scope of the Steward's activities on company time is as listed, but shall not be limited to the following:

a. To consult with an employee regarding an alleged grievance or the presentation of a grievance.

b. To investigate an alleged grievance or a grievance of record before presentation to supervision.

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

d. To meet with the supervisor or other designated representative of the Company when necessary to adjust grievances in accordance with the grievance procedure.

e. To meet with company officials at the Company’s request to discuss issues of concern to the parties, or to discuss changes to past practices.

f. The Company shall, before any investigational proceeding or disciplinary proceeding, notify employees of their right to Union representation. If the employee requests Union representation, access to a Union Representative will be provided prior to continuing with such action.

4.05 Subject to existing security regulations, the Business Representative, his designee and the assigned IAM Aerospace Coordinator of the Union shall have access to the Company's work areas during working hours for the purpose of investigating grievances that have arisen, attending meetings in accordance with the administration of this agreement. Before doing so, he/she shall provide ample notice to the Supervisor or other authorized Company Representative, who shall permit said Representative to enter the Company's work areas, provided that such rights shall be exercised reasonably and will not interfere with the normal conduct of the Company's operations.

The Union Representative may be accompanied by the Site Manager or his designee while in the actual work area. If requested the management escort will allow the Union Representative and the bargaining unit employee to communicate privately.

4.06 It is agreed that the Company shall not be required to pay an employee for any time taken away from work to serve the Union in any official capacity or to serve on any Union committee, except as provided in the Agreement.

4.07 The Steward shall be empowered to adjust employee grievances as provided for in the grievance procedures, so long as such adjustments are not in conflict with the Agreement.

ARTICLE 5.00 – DEDUCTION OF UNION FEES AND PROCEDURE

5.01 Fees Deduction:

The Employer will deduct an amount equivalent to Union monthly membership dues, provided the employees have executed a written authorization provided by the Union.

5.02 Current Authorizations:

Subject to the foregoing, any deduction authorizations executed by employees prior to the effective date of this agreement which are on that date current and in effect, shall be considered valid and in full force and affect under and subject to the terms and provisions of this agreement.

5.03 Deduction Procedure:

Deductions will be made from an employee's wages each monthly pay period, provided:

a. That the Union has delivered to the Company not later than the 24th day of the preceding month the written authorization provided above.

b. The employee is on the Company payroll on the first day of the month.

c. That the employee is in the bargaining unit on the first day of the month.

d. That the Union has certified to the Company in writing not later than the 24th day of the preceding month the dollar amount to be deducted from each employee's wages.

5.04 Pick-up Deductions:

In the event an employee's wages earned during a payroll period in any month, after mandatory and other authorized deductions, are insufficient to cover the authorized fees deduction, the

Company will deduct the amount owing from the next payroll period in which wages due are sufficient, after mandatory and other authorized deductions are made unless advised in writing by the Union not to make such Pick-up Deduction. The Company will only make Pick-up Deductions for any unpaid fees up to but not exceeding the eight- (8) payroll deduction periods immediately preceding the date the Pick-up Deduction is attempted in accordance with this provision.

5.05 Remittance and Statement to the Union

The Company shall, on or before the 10th day of the following month, furnish to the Union

Secretary-Treasurer a written statement for the preceding month covering the following:

a. Total amount of fees deducted

b. Name and payroll number of employees from whose wage, deductions have been made

c. Name and payroll number of employees from whose wage, no deductions were made

The Company shall, at the same time, remit to the Union Secretary-Treasurer its check for the amounts so deducted.

5.06 Cancellation of Deduction Authorizations:

Employees wishing to cancel their individual dues deduction authorization and assignment may do so at the following times:

1. In the year the current Labor Agreement expires, not less than five (5) calendar days nor more than twenty (20) calendar days prior to the expiration date of the contract.

2. Cancellation to become effective as of the first day of the calendar month following the end of such irrevocable period of the dues deduction authorization and assignment on file with the Company and the Union.

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

5.08 During the "in process" or “orientation day,” for each new hire, the Company will permit the Union Steward, a 15-minute period to talk to the new hire.

ARTICLE 6.00 – NON-BARGAINING UNIT PERSONNEL

6.01 Non-bargaining unit personnel shall not normally perform the work of, or with, unit employees, but may perform bargaining unit work under the following conditions:

a. For the purpose of instructing and training employees.

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

c. Up to four (4) hours in any shift until management can secure an available qualified employee in the classification when an employee fails to report to work and sufficient qualified employees are not available at the site.

d. In order to prevent injury to employees or damage to property.

e. Where technical qualifications and training requirements make it more efficient to bring in outside personnel for a specific test.

f. When necessitated by documented security requirements.

g. Work normally performed by team leader. The ratio shall normally no more than be one

(1) team lead for every fifteen (15) employees. Further, in overtime situations, any bargaining unit work performed by the team lead shall be kept to a minimum, if possible.

6.02 The Company has the right to subcontract out work where the Company determines that such work cannot be performed by employees covered by this Agreement due to lack of skills, tools, equipment or availability of manpower, or as required by its contract.

6.03 Due to the nature of the work to be performed, personnel from other locations may be brought in to perform short term specific assignments, when there are no qualified employees on lay-off in the classification(s) of work affected and so long as such action does not cause the lay-off of any qualified employees from the affected classification. This Section will not be used to circumvent the need for overtime.

6.04 People who accompany aircraft brought into the Marine Corps Air Station Yuma, Arizona location for a particular short-term exercise or operation will not be covered hereunder and will not perform duties that are regularly assigned to the employees covered hereunder, to the extent such employees are displaced. Further, in the event the work load exceeds (including normal overtime needs) the capacity of the regular work force for a period in excess of thirteen (13) weeks, the Company may farm-in Affordable Engineering Services, Inc. employees or other personnel to meet business requirements. In the event the manning needs exceed thirteen (13) weeks.

6.05 The Company will meet with the Union to explain the reasons and discuss any impact.

When TDY personnel are required to perform functions at the Marine Corps Air Station Yuma, Arizona, the TDY personnel will not be allowed to perform overtime labor on Yuma CFS equipment unless no Yuma CFS personnel volunteer.

ARTICLE 7.00 – SENIORITY

7.01 The term "seniority" is defined as including the whole span of continuous service with the present contractor, or successor, and with predecessor contractors, in the performance of this contract at the Marine Corps Air Station Yuma, Arizona.

7.02 Employees transferring into this contract and into the bargaining unit from another company location, will retain their company service date of hire for vacation entitlement and fringe benefits, they will establish their seniority date, for all other purposes, as their date of hire at the

Marine Corp Air Station Yuma, Arizona.

7.03 It is the intention of the company to maintain a productive, qualified workforce at all times, even throughout periods of reduction in force. Therefore, the senior qualified employee, by job classification, will be kept. Recall will be conducted in reverse order of the layoff by most senior qualified employee, according to customer requirements. It is understood that the Company shall not act arbitrarily, whimsically, capriciously or otherwise abuse the rights entailed in this paragraph.

7.04 If a new shift is to be started the Company will ask for volunteers among the qualified employees commencing with the most senior. If no employee volunteers then the least senior qualified employee will be assigned to the shift.

7.05 A new employee shall be in a probationary status until he has completed ninety (90) calendar days from the last date of hire. During the first ninety (90) calendars day period, the

Company may transfer, layoff or discharge such employee at will and such action shall not be reviewable through the grievance procedure. After ninety (90) calendar days, the employee will be placed on the seniority roster and his seniority date will revert to the hire date referenced above.

Seniority order for employees with common hire dates will be determined by the social security number with the highest last four digits being the most senior.

7.06 Loss of seniority will result under the following conditions:

a. Resignation or quit

b. Retirement

c. Discharge for just cause

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

e. Failure by the employee to notify the Company of the employee's intention to return to work in response to a recall notification via certified mail within seventy-two (72) hours after the receipt of such recall notice, and of the employee's return to work within fourteen (14) calendar days following the receipt of such notice, unless a longer period is authorized by the Company

f. Transfer or promotion out of the bargaining unit in excess of ninety (90) calendar days

g. Absence from work for three (3) consecutive working days with no contact with the

Company, except for circumstances beyond the control of the employee or excused by the Company

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

7.07 The Company will post a seniority list at beginning of each six (6) months, when changed or requested. The list will show each employee's name, hire date and classification.

7.08 When reducing the workforce, the Company will lay off in reverse order of seniority by classification. The most junior is laid off first. The last employee laid off will be the first recalled.

Employees who are currently qualified or require a minimum of re-familiarization who have held a lateral or lesser classification, have a right to displace a less senior employee in that classification.

7.09 The Company will notify the Union and the employees affected of pending layoffs, as soon as possible, but no later than at least five (5) calendar days, prior to layoff. Affected employees will be given a layoff notice and will be responsible for notifying the Company of their current address or any address change.

ARTICLE 8.00 – PROMOTIONS / BIDDING / TRANSFERS

8.01 A bargaining unit employee who bids and is promoted or transferred and who fails to satisfactorily perform the duties of the new job, within a period of up to thirty (30) work days unless extended by mutual written agreement of the parties, will:

a. If the position is filled internally, the employee will move to the position of the person who takes the promotion; or

b. If the position is filled from outside the bargaining unit, the employee will be returned to his prior position and any employees who had filled positions as a result of the original promotion will be returned to their prior positions.

8.02 When a bargaining unit job vacancy occurs within the Company at the Marine Corps Air

Station Yuma, Arizona, the vacancy shall be posted for five (5) work days. The notice will contain:

1. Job title and wage rate

2. Qualifications required

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

4. Work schedule, if known

5. Effective date

8.03 Job bids must be in writing and sent to the Team Leaders office, which will affix the date and time to validate a timely filing. Bids received after the closing date will not be considered.

8.04 The employee awarded the bid will be notified and will report for work on the new bid as of the effective date stated by the Company. The senior most qualified employee who bids will be awarded the bid. Job bids will be awarded on or before the effective date, as referred to in Section

08.02 (5).

8.05 If a more senior employee's promotion is rejected by the Company, it will be responsible to inform the individual of the reasons. Rejection of a more senior employee will be subject to the grievance procedure.

ARTICLE 9.00 – LEAVES OF ABSENCE

9.01 Limited unpaid personal leaves of absence will be approved at the discretion of the

Company upon request of employees who have completed their probationary period. Such leaves shall be not more than thirty (30) calendar days. Requests for unpaid personal leave of absence must be made in writing and must receive approval by the Company. Extensions may be approved by the Company.

9.02 Health insurance will be continued during such leave provided the employee pays his/her portion of the premium at least ten (10) days prior to the next month's insurance coverage.

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

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

a. While on leave of absence for personal health reasons, the employee shall notify the

Company as to his/her potential of returning to work on a monthly basis, except in those cases where the employee's physician has provided an expected date of return.

b. An employee may be returned to restricted duty provided the Company is able to accommodate said restrictions.

9.05 Leaves of absence without pay for Union business not to exceed two (2) weeks, will be granted to Bargaining Unit employees of the Company, who are elected or appointed by the Union, to attend such functions as conferences, conventions, and union educational courses, provided at least Ten (10) work days advance notice is given in writing to the Company, if possible to do so.

However, not more than one (1) employee may be on such leave at any time.

9.06 Leaves of absence without pay in worker's compensation injury and legal occupational disease cases will be granted automatically for the full period of legal temporary disability, and seniority will accumulate for the full period of such leave.

9.07 An employee who has completed his/her probationary period, who is called to and performs short term active duty of thirty (30) days or less, including active duty training as a member of the United States Armed Forces Reserves or National Guard, shall be paid the difference between the employee's military rate and the employee's straight time hourly rate of pay for a period of up to ten (10) scheduled working days per calendar year. The employee must present a copy of the employee's order to the Company as soon as they are received by the employee.

Upon return from active short-term duty, the employee must present pay vouchers so that the calculation of the difference in pay may be computed. The employee will be given a leave of absence for, and will accumulate seniority during such period of service. Employees required reporting for military training in excess of thirty (30) consecutive days or those called to active duty shall be reinstated in accordance with the Uniformed Service Employment and

Reemployment Rights Act. The parties to this Agreement shall comply with current applicable state and federal legislation regarding military service.

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

9.09 When an employee fails to return to work at the expiration of an approved leave of absence, that employee may be disciplined up to and including discharge at the option of the Company.

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

ARTICLE 10.00 – HOLIDAYS

10.01 The Company observes the ten (10) holidays listed below:

New Year’s Day Labor Day

Martin Luther King Day Columbus Day

Presidents Day Veterans Day

Memorial Day Thanksgiving Day

Independence Day Christmas Day

10.02 An employee who is not required to work on one of the designated holidays mentioned above will be compensated for the holiday at their straight time rate, provided they are in a pay status the last scheduled day before the holiday and the next scheduled work day after the holiday, except when an employee is off on such day with an excused absence or with prior permission of the Company, will be compensated for the holiday.

10.03 Government declared down days will go as unpaid time on employee timesheets unless the employee chooses to use their earned vacation or PTO.

10.04 Any additional holiday (or official day of mourning) designated by Federal Government mandate or Presidential Executive Order that is observed at the MCAS Yuma, AZ base will be observed in addition to the above.

10.05 Any observed holiday stated above that falls on a Saturday or Sunday, will be observed under the same schedule observed by the Federal Government.

10.06 Any employee required to work on any of the above holidays will be paid for hours worked at their straight time rate, plus eight (8) hours straight time for the holiday. No holiday will be counted as overtime whether worked or not.

10.07 When a holiday, as defined in this agreement, falls within an employee's vacation period, such holiday shall not be charged as vacation hours. However, the employee may elect to take an additional day off.

ARTICLE 11.00 – VACATION

11.01 For vacation purposes, all employees will be entitled to paid vacation which will be based upon years of service on this FRC-SW contract at Marine Corps Air Station, Yuma, California.

Paid vacation entitlement will be as follows:

a. 2 weeks’ vacation after one (1) year of service. Weekly accrual rate of 1.54 hours.

b. 3 weeks’ vacation after four (4) years of continuous service. Weekly accrual rate of

2.308 hours.

c. 4 weeks’ vacation after fifteen (15) years of continuous service. Weekly accrual rate of

3.077 hours.

Employees can take vacation as soon as it accrues.

11.02 Employees are requested to make their vacation request as far in advance as reasonable.

The Company will continue to respond to such requests as quickly as possible.

11.03 Employees hired under the Service Contract Act (SCA), transferring to the bargaining unit after the date of ratification of this Agreement shall retain their original date of hire with the

Company for the purpose of accrual of vacation credits.

11.04 It is understood and agreed that final approval of vacation requests rests exclusively with the Company to assure orderly operation of work schedules.

11.05 Vacation pay shall be computed at the employee's straight time hourly rate including appropriate premiums.

11.06 Employees must use vacation time in increments of no less than one hour.

11.07 Employees will be reimbursed for vacation time anytime during the year, when it is taken, provided such time has been accrued.

11.08 Any vacation time not taken at the employee's anniversary date will be paid back to the employee after 240 hours accumulation. Employees may carry over and accumulate up 240 hours.

Vacation carried over in excess of the 240 hours will be paid out.

11.09 All unused earned vested vacation shall be paid out to the employee upon termination from the Company.

11.10 When a holiday, as defined in this agreement, falls within an employee's vacation period, such holiday shall not be charged as vacation hours. However, the employee may elect to take an additional day off.

ARTICLE 12.00 – OVERTIME

12.01 Notice for mandatory scheduled overtime will be given as soon as practical after site management deems that overtime work will be required.

12.02 The Company shall determine when and by whom overtime, as requested by Customer, will be worked. No overtime will be assigned without the approval of proper supervisory personnel of the Company. Before requiring employees to work overtime, the Company will request volunteers from among the employees holding the designated job classification and qualifications in which the overtime is to be worked. If an insufficient number of volunteers are obtained, the

Supervisor shall make the decision of who works overtime based operational requirements.

Overtime will be distributed as equally as possible.

12.03 Overtime shall be paid for hours worked in excess of forty (40) hours per week at one and one-half (1 and 1/2) times the employees straight time hourly rate as required by law.

12.04 Nothing in this Agreement shall be construed as to require the payment of overtime on overtime or compounding of overtime as a result of computing hours in accordance with this

Article.

12.05 All employees’ time worked shall be considered time worked for the purpose of overtime calculation. Overtime shall be paid for hours worked in excess of forty (40) hours per work week at one and one-half (11/2) times the employees straight time hourly rate.

12.06 The Company will attempt to schedule overtime so that employees shall not be required to work more than two (2) consecutive Saturdays or Sundays.

12.07 An employee who has not completed their probationary period, will not be assigned any overtime, unless all qualified senior employees have had an opportunity to work the overtime, and it is determined by the Supervisor that the probationary employee is qualified to carry out the responsibilities to be assigned to the overtime.

ARTICLE 13.00 – ABSENCE FROM WORK

13.01 Employees, on paid time, shall not leave work prior to the completion of their scheduled hours without prior permission from their Supervisor.

13.02 Employees shall not be absent from work without prior permission from their Supervisor, except in cases of illness, injury or reasons beyond the control of the employee.

13.03 It is the duty of every employee who, for any reason, will be absent from work on a scheduled workday, or who expects to report for work late, to notify their Supervisor or designee in accordance with the procedures outlined by the Company. Except for extenuating circumstances beyond the control of the employee, such notice shall be given at least 30 minutes prior to the start of the shift if possible.

ARTICLE 14.00 – HOURS OF WORK

14.01 The Company shall determine shift assignments based on business needs of the organization. Shift starting times are as follows:

a. 1st Shift start time is between 4:00am and 10:00am

b. 2nd Shift start time is between 10:00am and 8:00pm

c. 3rd Shift start time is between 8:00pm and 4:00am

14.02 Shift premiums shall be paid at a rate of:

a. 2nd Shift will be paid an additional $0.35 per all hours worked

b. 3rd Shift will be paid an additional $0.40 per all hours worked

14.03 Employees will work Monday through Friday, with Saturday and Sunday as their 2 normally scheduled consecutive days off. During the course of this labor agreement, the Company may request from the Union consideration for a four, ten-hour day schedule.

14.04 The working hours at the facility shall be properly posted on the bulletin board. The starting time for any shift shall not be changed without forty-eight (48) hours' notice. Such notice shall be given to the affected employees.

14.05 When employees are changed from one shift to another, they shall be notified by properly posted bulletins at least seven (7) calendar days in advance of the starting time of the new shift to which they are assigned. Such notice shall be given to the affected employee. However, if it becomes necessary to change an employee from one shift to another or the starting time of a shift due to operating conditions, or for an employee out due to illness or injury, the employee shall be given as much notice as possible.

14.06 The Company will permit all employees to take a fifteen (15) minute paid rest period the first half of their shift and a fifteen (15) minute paid rest period during the second half of their shift. Breaks may be extended as directed by the customer. An employee who is required to work overtime will be allowed a fifteen (15) minute break for every two (2) hours of overtime worked in a day. This break will occur at the beginning of the overtime period.

14.07 Each employee shall have an unpaid lunch period of thirty (30) minutes during his shift.

14.08 Lunch periods shall begin not earlier than four (4) hours after the start of each shift, and not later than five (5) hours after the start of each shift. If the Company requests the employee to work through such lunch period, the employee shall be paid for the time worked. An employee who is required to work overtime will be allowed a one-half (1/2) hour lunch break after four (4) hours of overtime worked in a day.

14.09 The Company will make every effort to deliver paychecks to employees by noon on Friday under normal circumstances. The Company and Union agree to encourage employees to take advantage of direct deposit of their paychecks.

14.10 Employees are paid Weekly. The workweek begins at 12:01 am on Sunday and ends at

12:00 midnight on Saturday.

ARTICLE 15.00 – GOVERNMENT SECURITY / RESPONSIBILITY

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

15.02 The Union and the Company recognize that employees covered hereby are performing services for the U.S. Government in U.S. Government facilities and by use of U.S. Government equipment. The Company is not authorized to maintain, modify or repair such government facilities and equipment, except as contractually directed. It shall be the site supervisor's responsibility to work with the proper base personal to ensure a safe and healthful environment.

15.03 Each employee shall be responsible for the reasonable care of the customer and/or

Company furnished property or material and will notify the Company of any sabotage, or willful damage to Company, customer or employee property or material.

15.04 It is understood by and between the parties hereto that, as a necessary condition of employment, employees shall be subject to investigation for security clearances, special access requests, national agency check and/or unescorted entry authorization under regulations prescribed by the Department of Defense, or other agencies of the U.S. government on government work.

Failure to apply, maintain or gain a security clearance and/or the denial or permanent loss of required clearances and unescorted entry authorization by such governmental agency may be cause for release from the Company, due to inability to meet job requirements.

15.05 The Company will reinstate the seniority of an employee whose denied security clearance is reinstated by the U.S. government provided, such reinstatement occurs within ninety (90) days from the original date of denial. Any employee whose seniority is reinstated under this provision will be reinstated in his previously held occupational title. In those cases where reinstatement occurs later than ninety (90) days, the employee will be reinstated to the previously held occupational title where a vacancy exists, or any lower classification he/she is qualified in where there is a vacancy so long as such reinstatement does not occur more than six (6) months from the date the employee left the Company. It is understood and agreed that determinations by the

Government as to an individual's suitability for access due to security reasons are not reviewable via the Grievance/Arbitration procedures provided in this Agreement.

ARTICLE 16.00 – NO STRIKE / LOCKOUT

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

a. The procedure provided for herein, for the settlement of grievances arising under this

Agreement, may serve as the means for the settlement of disputes that may arise between the Parties. However, nothing in this section, or any other section of this

Agreement, limits the Company's or the Union's right to seek and receive legal and equitable relief in the event of the breach of the no strike - no lockout provision, including but not limited to, injunctive relief prohibiting any lockout, strike, sympathy strike, sit down, work stoppage, stay in, slow down, refusal to work, picketing, or any other action which would interfere with any of the operations of the Company.

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

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

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

1. Requesting through personal contact or meeting with employees

2. That they comply with the Agreement and not take part in any such prohibited conduct.

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

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

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

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

ARTICLE 17.00 – EMPLOYEE BENEFITS

17.01 The Company will, beginning December 15th 2017, maintain and contribute to the cost of health care insurance coverage for full-time bargaining unit personnel. Such health care insurance coverage will be first effective January 1st 2018.

17.02 It is agreed that the Company may change insurers, vendors, or plan design of medical, dental, vision, life insurance, AD&D, long term disability and short-term disability coverage for employees and their covered dependents during the life of this Agreement. The reason or reasons for such changes will be explained to the Union by the Company. Except as otherwise provided herein, any such benefit change will provide the same coverage/design as the incumbent plan or as close thereto as possible. Except as otherwise provided herein, any significant change in the plan benefits or increase in the rates will be made by mutual agreement of the Company and the

Union.

17.03 The health care insurance coverage described above includes medical, dental, and vision coverage to be provided under the Contractors Plan for Internal Employees ("Employee Benefits").

Employees are eligible for Health and Welfare Contributions towards their Employee Benefits as of their date of hire. An employee will be eligible for their Benefits on the first day of the month following the employee's first 30 days of employment.

17.04 The Company anticipates that certain legal changes provided for under the Patient

Protection and Affordable Care Act of 2010 may have a material impact on Employee Benefits.

As a result of these anticipated changes, the Company has reserved the right to modify, rescind or revoke the health care insurance arrangement (including the products, services, rates and fees) pursuant to which the health care insurance coverage under this Agreement is provided. Any such change will apply to all similarly situated employees of the Company covered by the Contractors

Plan. In the event this right is exercised, the Company and the Union will renegotiate this Article

17.00.

17.05 If an employee opts-out of their Benefits, the Total Health and Welfare Contribution (total

H&W, as defined in Section 17.12) made on their behalf will be directed to the 401(k)-retirement plan on behalf of the employee.

17.06 If an employee elects to enroll in any voluntary Benefits, or add dependents to their

Employee Benefits coverage (considered to be a “Buy Up”), they will pay a post-tax contribution

(“Employee Premiums") equal to the premium costs set forth below in Paragraph 17.09 for the particular benefits elected within the Employee Benefits plan.

17.07 As an offset to the post-tax premium, the employee will receive an H&W contribution equal to no more than the Employee Premium. This will appear on the employee's paystub as

"H&W". If the Employee Premiums are less than the total H&W contribution, then any remainder will be directed first to a Premium Reserve account to offset any premium shortages that may occur, then to the employee’s 401(k)-retirement plan.

17.08 If any deficit in Employee Premiums is more than their H&W contribution after the premium reserve has been used, the employee is responsible for the difference between the

Employee Premium and the H&W contribution.

17.09 The Weekly Employee Premiums under the Employee Benefits coverage as of January 1st

2018 are as follows:

Coverage Medical Dental Vision

Employee $0.00 $0.00 $0.00

Employee + Spouse $2.01 $11.13 $1.79

Employee + Children $0.00 $15.35 $1.24

Employee + Family $81.38 $26.47 $3.19

17.10 Employees will be eligible to participate in elective benefits available through Guardian.

These benefits include Voluntary Employee Life, Voluntary Spousal Life, and Voluntary Child

Life Insurance plans, as well as AD&D, Short-Term Disability and Long-Term Disability.

Employees will be responsible for paying the premiums for these coverages at the rates set by the insurer. All applicable laws, limits, and restrictions apply.

17.11 The Company will make H&W Contributions (as defined below) on behalf of each employee which will be applied towards Employee Benefits and/or the 401(k)-retirement plan under this Agreement.

The H&W rates as of December 15th, 2017 are:

Effective Date H&W Amount

December 15th 2017 – December 14th 2018 $6.75

December 15th 2018 – December 14th 2019 $7.00

December 15th 2019 – December 14th 2020 $7.25

December 15th 2020 – December 14th 2021 $7.50

December 15th 2021 – December 14th 2022 $7.75

17.12 The H&W Contribution made on behalf of each employee will equal the H&W rate times the number of hours worked (or for which an employee is entitled to paid time-off), up to a maximum of 40 hours per week (except as otherwise required by law) (the "total H&W

Contribution"). The H&W Contribution may be adjusted to offset Employee Premiums at the

Company’s discretion.

17.13 In the event that Affordable Engineering Services, Inc. is not awarded the contract in the future, the Company will continue to provide Employee Benefits to the extent that premiums for such coverage have been prepaid.

ARTICLE 18.00 – THE 401(K) RETIREMENT PLAN

18.01 Employees will be automatically enrolled in a 401(k)-retirement plan (“401(k)”).

18.02 The Company will direct the difference between the total H&W contribution for each employee and the Benefits Premium for Employee Benefits coverage selected by the employee.

18.03 The Company will contribute 3.25% of the employee’s weekly compensation towards their

401(k).

18.04 Employees are eligible to make deferred contributions to their 401(k) plan at their own discretion.

18.05 Benefits, terms, and conditions as set forth in the plan document for the 401(k) plan shall apply.

ARTICLE 19.00 – SAFETY ITEMS

19.01 Each calendar year the Company will reimburse per invoice each unit employee up to

$150.00 for the purchase of safety shoes

19.02 Every 2 calendar years the Company will reimburse per invoice each unit employee up to

$250.00 for the purchase of safety glasses.

19.03 Each calendar year the Company will provide shirts to each unit employee. Employees may wear dark blue IAM&AW Machinist Union shirts and caps. Employees must be identifiable to the government as contract workers. The company’s method of acquiring and distributing shirts may change at any time.

ARTICLE 20.00 – TEMPORARY DUTY ASSIGNMENTS

20.01 Bargaining unit employees on temporary duty assignment will be covered under the current

Collective Bargaining Agreement as if working at Yuma, AZ,

20.02 Employees on temporary duty assignment will be paid as per FRC-SW contract with customer. Travel receipts may be required to ensure compliance with reimbursement procedures.

ARTICLE 21.00 – DISCHARGE AND DISCIPLINE

21.01 It is understood and agreed the Company may only discipline or discharge any employee covered hereby for just cause.