Incumbent Current Summary Collective Agreement 2009.pdf

Collective Agreement for the Employees of ITT Federal Services GmbH

Union Ver.di Page 1

Collective Agreement for the Employees of ITT Federal Services GmbH of 6 December 1997 effective from 15 January 1998 changed thru collective agreement No 3 from 05 June 1998, effective 01 July 1998 changed thru collective agreement No 6 from 10 August 1999, effective 15 August 1999 changed thru collective agreement No 10 from 11 January 2001, effective 01 February 2001 changed thru collective agreement No 11 from 13 June 2001, effective 01 January 2002 changed thru collective agreement No 13 from 10 October 2007, effective 01 October 2007

Between

ITT Federal Services GmbH represented by the management of ITT Federal Services International Corporation on the one hand and

United Services Union Ver.di represented by the Regional Department for Special Services – Regional District of Rhineland- Palatinate on the other hand agree on the following collective agreement:

Art. 1 Scope

This collective agreement applies to liable German pension Insurance contributions of ITT Federal Services GmbH (ITT-FS GmbH) employed subject to the legal relationships of compulsory insurance to German Federal Pension in the Kaiserslautern Project.

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Art. 2 Employment Contract, Medical Examination

(1) Employment Contract

a) The employment contract will be concluded in writing. The employed person will be furnished a copy.

b) Collateral agreements will be valid only if made in writing.

(2) The period of temporary employment aligns with the act on part time and fixed work– TzBFG

a) The time limitation of a contract of employment is permitted in the case of a factual reason. A factual reason is especially then at hand, if

- the requirement of workmanship is only temporary

(seasonal accruing work, irregular accruing additional work due to military requirements of the U. S. Forces);

- the employment is for the substitution of another employee (e.g. maternity periods, parental leave, considerable down-time

- the time limitation is used as a trial measure).

b) The time limitation of a contract of employment without a factual reason is permitted up to a period of two years.

The term of employment relationship shall not be less than twelve months. Up to an overall duration of two years the time limitation of employment may be extended for two times at the most.

c) The employment with time limitation for factual reason ends with the expiration of the specified period of time. An employment, which is limited until the intended purpose is achieved, ends by the advent of the previously determined event or purpose, however at the earliest four weeks after receipt of the written information of the employee about the point in time of the purpose achievement thru the employer.

d) The time limitation is not permitted if a timely limited or unlimited employment according to letter b) existed with the employee before.

Provided that a timely limited employment according to letter a) did exist; a period of at least four months has to be elapsed before a new employment can be contracted.

e) If the employment is continued with the knowledge of the employer after the expiration of the term or after the achievement of the purpose, for

Union Ver.di Page 3 which it was entered, it is considered extended for an indefinite period.

f) A temporary employee has to be treated just like a comparable permanent employee. This especially applies to all divisible payments of kind, which have to be granted in the minimum scope that corresponds to the proportion of the length of employment.

g) Temporary employees have to be informed by the employer about the vacancy of applicable permanent employments.

h) Temporary employees can take part in basic and advanced training measures in the same scope as permanent employees.

i) The Works Council has to be informed about the number of temporary employments and their proportion to the total workforce.

(3) Before the expiration of the employment relationship the employer has to check whether the employment of the employee can be continued for an indefinite or a temporary period.

(4) Permanent Employment Apart from employment relationships stipulated under a), employment contracts will be concluded for an indefinite period.

(5) Personal Questionnaire, Employment Records

The employed person is obliged to

a) complete a personal questionnaire including a resume on the vocational career in addition to any personal data which are essential for the employment relationship;

b) submit employment records upon reporting to work - including annual leave statement(s)-;

c) inform the employer on any changes concerning entries made in the personal questionnaire without delay.

(6) If the employed person has to submit employment records upon request of the employer and in addition to those records submitted upon taking up work, the employer will bear the substantiated expenses.

(7) Medical Examination

a) If, upon engagement, the employer requires an employee to submit a certificate concerning the physical fitness (state of health and ability to

Union Ver.di Page 4 work) from a physician designated by the employer, the employer will bear the expenses for the examination.

b) The employer will also bear the costs for medical certificates required from the employee during the employment period on.

Art. 3 Probationary Period

(1) The employment relationship starts with a probationary period of six months.

(2) In case of work time loss or illness of the employed person, the probationary period may be extended by the corresponding period.

Art. 4 Personal Records

(1) a) The employed person is entitled to view his/her complete personal records.

This right may be exercised by a person holding a written power of attorney.

This power of attorney must be filed in the personal records.

b) The employer may reject an authorized representative if imperative due to operational reasons.

c) The right to inspect personal records includes the right to make copies on the spot.

(2) The employed person will be heard on complaints and assertions de facto which are derogatory to the employee or may have a negative effect if such information is included in the personal records.

(3) If the employer intends to give a reprimand to an employed person, the employee has to be heard before the reprimand is issued and asked for an opinion within five work days. The rights of the works council pursuant to the Works Council Constitution Act remain unaffected.

(4) Personal records are personal questionnaires, letters of reference, medical reports, classification records, performance appraisals, petitions and written statements of the employed person.

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Art. 5 Professional Discretion

(1) The employee will observe secrecy on all administrative or operational matters which are for official use only.

(2) a) Upon termination of the employment, the employed person will return to the employer, without delay and special request, all documents, drawings, graphs, etc. which are still in his/her possession, as well as all notes taken on administrative or operational procedures.

b) After termination of the employment, the employed person has to observe secrecy on matters which are subject to professional discretion.

Art. 6 Period of Employment

(1) The period of employment is the time which the employed person completed in an employment relationship with the employer.

(2) A creditable period of employment within the meaning of par. 1 is the time completed for the same employer if the employment relationship has not been interrupted for a period of more than four months between the termination and the resumption of the employment relationship.

(3) A creditable period of employment within the meaning of par. 1 is also the time which the employee has completed for the Armed Forces of the United States of America (USA) as a civilian employee, if the employment relationship has been continued with the employer without interruption within the meaning of this collective agreement and if it is based on a transfer of business in compliance with Art. 613a of the German Civil Code [BGB].

(4) A creditable period of employment for technical experts within the meaning of Article 73 Supplementary Agreement –SOFA starts from the date of the conversion to an employment relationship in accordance with German law, if the employed person enters into an employment relationship with the employer without any interruption pursuant to Art. 1 of this collective agreement.

(5) A suspension of the employment relationship will not interrupt the creditable period of employment (Art. 21, par. 5 subpar. c).

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Art. 7 Transfers

(1) The employed person may be transferred or delegated due to urgent operational needs.

(2) The employed person cab be transferred or delegated for a period of three months outside the former place of employment. If the employed person is going to be transferred or delegated, employee has to be heard first.

The rights of the works council as per Works Council Constitution Act) remain unaffected.

(3) In case of a timely limited delegation outside of the constant place of employment, the employer will grant compensation pursuant to par. 15 of this tariff agreement.

Art. 8 Working Hours

(1) Regular working hours amount to an average of 38.5 hours per week without breaks. The calculation of the average regular weekly working hours is based on a period of 26 weeks.

(2) The regular working hours will be distributed from Monday through Friday.

(3) If tasks are required in departments of the company which have to be Performed regularly on weekends (Saturdays and Sundays), the performance of work has to be guarantied on these days also. Details have to be agreed between the respective management and the works council.

Art. 9 Exceptions to Regular Working Hours

(1) Non-Duty Hours on Call

a) On-ca 11duty hours may only be performed if experience shows that work will occur in exceptional cases only.

b) On the order of the employer, the employed person is obliged to be available after regular working hours at a location designated by the employer to be able to take up work upon call (on-call duty).

c) For purposes of pay calculation, on-call duty will be calculated as work time

Union Ver.di Page 7 with one (1) hour per day and will be paid with an additional lump sum of

10.25 €.

d) For work performed, including possible travel times, additional payment for excess hours is made. At least three hours will be assessed for being called in to perform work outside the place of residence.

e) If an employed person is enlisted to service in the time between 22:00 and 05:00 hours, this person is granted a rest period of nine hours so that work can be taken up like scheduled in the tenth hour. If this rest period falls into the scheduled working hours, it will be rated as paid working time.

f) Further details on standby can be regulated in shop agreements.

(2) Night Work

a) Night work is work performed between 21:00 and 06:00 hours.

b) For night work a wage supplement of 25% of the regular hourly grass pay will be paid.

(3) Work on Weekends

a) Weekend work is any work time which starts on Saturday 06:00 hours and ends by Monday 06:00 hours.

b) For weekend work a wage supplement will be paid. It will amount to the following percentage of the regular hourly pay:

- 50 per cent for work on Sunday

- 100 per cent for work on a weekend day which is a holiday under German law.

c) If employees are called for weekend services regularly the employed person is entitled to two work-free Sundays per month.

(4) Work on Holidays

a) Holiday work is work performed on German legal holidays - even when falling on a Sunday - as well as any work performed on Easter Sunday and Whit Sunday between 00:00 and 24:00 hours.

b) If necessary due to operational needs, the performance of holiday work has to be guarantied.

c) Additional pay for work done on a holiday will be 100% of the regular hourly

Union Ver.di Page 8 grass pay. In case the employee opts to have a day off instead of being paid for work done on a holiday, he/she will receive a supplement pay of 50% to the regular hourly grass pay in addition to the normal hourly grass pay. The day off must be taken within 30 days following the holiday unless in conflict with compelling operational or personal needs.

d) For off-schedule occasional holiday work remuneration is granted for at least three working hours in addition to the supplement pay of subpar. c).

(5) Shift and Rotating Shift Work

a) Shift work is work exceeding eight hours and complying with a shift schedule (duty raster) which schedules a regular change of daily working hours in intervals not exceeding one month.

b) Rotating shift work is work up to eight hours per shift where the start of work of the employee changes in time intervals not exceeding one month according to the shift roster between three or more shifts, one shift thereof being a night shift.

c) Employees working on shift and rotating shift according to work schedule will receive a bonus. The bonus for normal shifts amounts to 26.50 €, the bonus for rotating shift to 46.00€ for the month in which the respective work has been performed.

d) When rotating shift is ceased (in a project or work center) due to organizational reasons, a standard shift bonus of 30.70 € is paid.

Art. 9a Part-time employment

(1) Part-time employment exists, when the working time of an employee is

- shorter than the regular weekly working time pursuant to par. 8, subpar.1

- or shorter than the regular working time on the average of an employment period of one year

- and shorter than the working time of a full-time employee.

(2) The employer has to enable part-time employment to the employees unless in conflict with justified operational needs.

(3) A part-time employee may not be treated any different than a comparable full-time employee due to his/her part-time work.

The part-time employee has to be granted his/her remuneration pursuant to the Tariff Agreement on Remuneration or any other divisible payment of kind according to his/her length of working time in comparison with the working

Union Ver.di Page 9 time of a full-time employee.

Excluded from this regulation are benefits pursuant to par. 11, 12, 18 of this Collective Agreement.

(4) Employments suitable for part-time work have to be announced as such.

(5) The employer has to inform an employee, who has announced his/her wish for a change in length of time and placement of his/her contracted working time, about vacancies of applicable employments.

(6) The employer has to inform the Works Council about all part-time employments, the part-time employees and the intentions on scheduled part-time work or the converting of full-time employments into part-time employments and vice versa.

(7) An employee, whose employment has existed for more than six months, can demand a reduction of his/her contracted working hours. Therefore he/she has to indicate the desired arrangement of the working hours. A period of at least three months is needed between the application and the converting of work hours.

This period may deviates, if urgent reasons on the part of the employed person would justify it. The employer in mutual agreement with the employee will finalize and arrange the working hours of the employee.

(8) The reduction of the working hours can be rejected by the employer, if the reduction of the working hours would have a lasting negative effect on the organization, the workflow or the safety of the operation or would lead to a disproportional increase in costs.

(9) The change of working time has to be stipulated by side-agreements.

(10) If the employer denies the employee’s application for reduction of working hours, he has to communicate this at the latest four weeks after the application was filed. If the employer does not deny the intended reduction of working hours until one month before its start, the reduction and arrangement of working hours according to the employees’ application become valid.

(11) A renewed reduction of the working time can be demanded two years after the previous application by the employee.

(12) The employer has to preferentially consider part-time employees, who wish to return to a full-time employment and indicate this, when applicable employments become vacant. Not affected are part-time employments that

Union Ver.di Page 10 were contracted due to the German Federal Educational Allowances Act (BErzGG).

(13) Part-time employees can take part in basic and advanced training measures in the scope that is granted for full-time employees. The employer has to involve part-time employees in training measures for their advancement of occupational development and mobility.

(14) Full particulars about the configuration of part-time employment can be regulated by company agreements.

Art. 10

Excess Hours (Overtime)

(1) Excess hours are working hours on the order of the employer which exceed The average weekly scheduled working hours or working hours which are common company practice as established in Art. 8.

(2) In regard to part-time employees excess hours are working hours ordered by the employer which exceed the individually agreed regular weekly working hours or the working hours established in the weekly roster.

(3) Excess hours must be limited to unforeseen operating requirements and essentially are distributed equally among the employees.

(4) a) Excess hours will be remunerated with an additional payment. The additional payment for excess hours amounts to 25 per cent of the remuneration per hour.

b) The basic remuneration for excess hours is - unless in conflict with urgent operating requirements - compensated by release from work (compensatory time).

c) Excess hours performed are compensated either by compensatory time equal to the scope of excess work performed plus the additional payment pursuant to paragraph 1 or by granting the respective remuneration.

Art. 11 Loss of Working Hours

(1) Any loss of working time during the employee's regular working hours for reasons which the employee is not responsible for is considered performed working time within the meaning of Art. 8.

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(2) If a loss of working hours occurs due to temporary interruption of operations an activity ranking on the same level may be assigned to the employee on a short-term and limited basis.

(3) If effects of Force Majeure (Acts of God)

- at the place of residence, or

- on the way between the place of employment and the place of Residence prevent an employed person from performing work, a claim to continued remuneration exists for the period of being prevented from work, but not exceeding a period of one working day.

Art. 12 Release from Work

(1) Upon request and production of evidence (e. g. certificate, medical certificate) the employee will be released from work with continued pay of wages/ salaries which the employee would have received for scheduled regular working hours, in the following events:

a) up to three work days in the case of

- death of spouse

b) up to two work days in the case of

- confinement of wife

- death of a family member (children - foster, adopted or step children -; parents – foster adoptive or step parents -; brothers, sisters)

Certificate of death has to be provided within a period of two weeks after paid absence was granted. Additionally an English or German translation of certificates in a foreign language must be provided within a period of six weeks after paid absence was granted.

c) up to a maximum of one work day in the case of

- marriage of employee

- change of employee's residence on the occasion of change of place of employment

- change of employee's residence with own household (maximum one time a year to register and deregister)

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- summons to appear before an authority unless caused by the employee's fault and loss of earnings are compensated by the authority

- performance of general civic duties under German law and of public honorary functions, i.e. honorary judge, lay judge in criminal cases, polling clerk, member of a decentralized public corporation, unless the loss of earnings is compensated accordingly.

- death of a family member (grandparents and parents-in-law)

d) up to a maximum of three work days per year for the time which is absolutely necessary

- for consulting a doctor for the first time

- as well as for ordered medical examinations or treatments which cannot be done after working hours

- in case of serious illness of children up to an age of 12 years for single parents

The employer has the right to request a supporting document concerning the consultation. If costs incur, these will be borne by the employer.

(2) Upon request of the contracting labor union, a maximum of two employed persons shall be granted release from work in order to attend meetings of the union board members affiliated with the employed person, with continued payment of those earnings which the employed person would have received for the established regular working hours, but not exceeding a total period of six working days per calendar year, unless in conflict with operating requirements.

(3) Upon request of the contracting labor union, the employed person shall be granted release from work to participate in union contract negotiations, with continued payment of those earnings which the employed person would have received for the established regular working hours, but not exceeding ten working days.

(4) a) When an employee is given time off for performing obligations and functions as specified in paragraph 1 c) third dash and receives full reimbursement tor the loss of pay from another agency, the earnings will be calculated as it work has been performed.

b) The employee will be furnished a certificate showing the total amount of earnings lost, including the employer's share of statutory social insurance, for the presentation to the agency responsible for reimbursement.

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c) A sum in the amount calculated under b) may be withheld from the earnings.

(5) a) On 24 December, release from work will be granted from 12:00 hours on and on 31 December from 14:00 hours on, unless the Contracting Officer in charge of the project orders attendance.

b) If release is approved according to a) but cannot be granted due to operational needs, equivalent release will be granted on another work day. If this is impossible also, an additional payment in accordance with Art. 9 par. 5 will be made tor work performed after 12:00 hours on 24 December and after 14:00 hours on 31 December.

c) For the regular working hours lost due to release from work as per par. a) or par. b) subpar. 1, those earnings will be paid which the employee would have received for the scheduled regular working hours.

Art. 13

Disability and Sick Pay

(1) If an employee is prevented from work because of sickness, he/she is entitled to

- continued remuneration in accordance with par. 2, There will be no entitlement to continued remuneration if disability is caused by the employee's fault.

(2) a) For the time of absence due to disability the employee is entitled to the payment of earnings for a period not exceeding six weeks, as far as the employment exists after a biweekly period.

b) If an accident at work or an occupational disease is involved which the employed person sustained in connection with the occupation carried on for the employer, as defined by the collective agreement, the employee will be entitled to continued remuneration for a period not exceeding six weeks.

Exempted here from are sicknesses as a result of accidents on the way to or from work; in those cases, the entitlement to remuneration is limited to six weeks.

c) Earnings as defined by par. a) and b) mean regular earnings.

(3) a) The employee is obligated to notify the employer of any disability without undue delay latest with start of work and the probable duration

Union Ver.di Page 14 thereof.

b) If the disability lasts longer than three calendar days, the employee has to provide a medical certificate on his/her disability and its prospective duration no later than the third day.

c) In justified cases the employer is entitled to request earlier submittal of the medical certificate.

d) In justified eases, during a period of disability, the employer may request that a medical certificate on incapacity for work from a physician of mutual trust is submitted.

(4) Within the meaning of par. 1 disability not caused by the employed person's fault also comprises being prevented from work because of measures of prophylactic medical care or rehabilitation, granted by institutions of the pension scheme, health or accident insurance and taking place in an institution for prophylactic medical care or for rehabilitation as in-patient treatment.

(5) a) If due to legal provisions the employee may claim damages from a third party because of loss of earnings due to his/her disability, the employee is obligated to

- refrain from disposing of his/her claim to damages

- all claims to damages to the employer and state that he/she did not yet dispose of his/her claims.

b) The employer is entitled to refuse payment of sick pay as long as the employee does not meet his/her obligations stipulated under a) above.

This does not apply if the employed person is not liable for the infringement of this obligation.

c) The assignment of claims in accordance with a) second dash above cannot be asserted to the prejudice of the employee.

When asserting the assigned claim to damages, any claim of the employed person which obviously is not unjustified but exceeds the claim of the employer may not be neglected.

If recovered damages exceed the payments to be made by the employer, the employed person shall receive the difference.

Art. 14 Annual Leave

(1) a) The annual leave of an employee whose average regular weekly work time is distributed over five work days in a calendar week (five-day week) amounts to

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25 working days.

b) After two years of service with the company the entitlement to annual leave increases by 1 work day.

c) As of the third year of service with the company the entitlement to leave is increased by one day per each year of employment up to a maximum of 30 work days.

(2) a) After six months from the start of the employment relationship (waiting period) leave can be taken for the first time, unless the employment relationship ends before that date.

b) Employment periods pursuant to Art. 6 par. 2, 3, and 4 will be credited for the waiting period.

c) Vacation days which have been granted or paid for by a former employer for the current calendar year or which still have to be paid for will reduce the entitlement to leave accordingly when Art. 6 par. 3 and 4 applies.

(3) a) If the employment relationship does not exist for a complete calendar year, the employee is entitled to a twelfth part of the annual leave for each full calendar month; each calendar month in which the employment relationship existed for a minimum of 15 working days is counted as a full calendar month.

b) If an employee, upon termination of the employment relationship, has already been granted leave beyond the extent which he/she is entitled to, the paid vacation pay cannot be claimed back.

c) If an employee leaves due to inability to practice the profession or incapacity for employment or due to the receipt of retirement benefits, the leave entitlement amounts to

- six twelfth, if the employment relationship ends in the first half

- twelve twelfth, if the employment relationship ends in the second Half of the vacation year.

(4) a) Leave is to be granted and taken coherently unless in conflict with urgent operational requirements or grounds on the part of the employed person.

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b) If leave is granted, one part of the leave has to comprise at least continues work days of the leave entitlement for the current calendar year.

c) When granting leave, the requests of the employee must be taken into account unless in conflict with urgent operational needs or leave requests of other employees take precedence because of social aspects.

(5) a) Leave is to be granted and taken in the current calendar year.

A transfer into the next calendar year is only permissible if justified by urgent operational needs or grounds on the part of the employed person.

b) If leave is transferred into the next calendar year, this leave must be taken until 31 March.

If the employee cannot take his/her leave due to illness during the time of the complete year, vacation must be taken no later than the 31 March of the following year without expiration.

If the employee cannot take his/her leave until 31 March due to protection

Periods or maternity leave pursuant to the Maternity Protection Act, the leave must be granted and taken within two months after the expiration of the protection periods or the maternity leave.

c) If leave is not started by the date taken into consideration - but no later than the expiration of the calendar year following the vacation year

- it will be forfeited.

(6) a) On principle, leave is granted as paid release from work.

b) If the employment relationship is terminated, the leave due to the employee has to be granted during the notice period.

c) If urgent operational needs or compelling personal reasons do not permit the granting of leave until the termination of the employment relationship, the remaining entitlement to vacation will be paid for in cash.

(7) If an employee falls ill during leave, the work days for which the employee can prove by a medical certificate that he/she was unfit for work, will not be credited against the annual leave unless the employer is notified about the disability immediately.

In such case the employee has to take up work again on the initially

Union Ver.di Page 17 scheduled day or in case the unfitness for work lasts longer, immediately after the recovery of the ability to work.

(8) The regularly accruing earnings will be paid as vacation pay.

(9) a) The work days taken as a basis for the calculation of the entitlement to leave are calendar days on which the employee has to or would have to work regularly or according to a duty roster, excepting legal holidays for which no compensatory time off is granted.

If a work shift does not end on the same calendar day on which it began, the calendar day on which the shift began is considered a work day.

b) If the average regular weekly work time (38.5 hours) is spread regularly or according to a duty roster over more than five work days in a calendar week, the leave entitlement per vacation year is increased for each additional work day by 1/250 of the leave pursuant to par. 1.

If this calculation results in a fractional part of a leave day, it will be disregarded.

c) If the average regular weekly work time (38.5 hours) is spread regularly or according to a duty roster over less than five work days in a calendar week, the leave entitlement per vacation year is decreased for each additional work-free day by 1/250 of the leave pursuant to par. 1.

If this calculation results in a fractional part of a leave day, it will be rounded up to a full leave day.

d) If the distribution of work time during the vacation year is changed permanently or temporarily, that number of work days which would accrue if the distribution of working hours decisive for the leave period was applicable to the entire vacation year has to be taken as a basis.

(10) If the distribution of the regular weekly work time differs from the work time pursuant to Art. 8 par. 2 because of normal or rotating shifts, the entitlement to leave is to be calculated as follows:

Entitlement to leave x shifts per year 250 = rounded up work days

(per hourly shift)

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Art. 15 Compensation

(1) The employee will receive reimbursement of costs for additional expenses incurred as a result of an occupation directed outside his/her regular place of employment.

(2) a) Employees will receive compensation for additional expenses if distances are traveled with the valid blanket rate by the regulation of travel expenses in range of the rules of taxation if supporting documentation is provided.

Employees will receive compensation for additional boarding expenses incurred as a result of an occupation directed outside his/her regular place of employment with the valid blanket rate by the regulation of travel expenses in range of the rules of taxation if supporting documentation is provided.

As far as compensation for boarding expenses is granted by the employer, the blanket rates for boarding expenses according to par. 2 will be reduced for the particular amounts pursuant to the Ordinance Concerning Remuneration in Kind

b) Apart from that reimbursement of costs is granted in compliance with the respective applicable version of the Joint Travel Regulation.

The employer will compensate proved cost for boarding and per diem in case of instructed absence from the permanent place of employment.

(3) a) If there is a legal requirement to wear safety clothing for the performance of tasks, the employer will make it available free of charge.

b) If special working clothes or a special equipment are required by the employer for the performance of tasks, the employer will bear the costs incurred.

Art. 16 Death Benefit

(1) a) Upon the employee's death the beneficiaries will receive death benefits.

b) Beneficiaries within the meaning of paragraph a) are in the ranking given:

I. Family members entitled to maintenance not paying consideration

Union Ver.di Page 19 to neediness, II. Persons with whom the deceased lived in common household before death, III. Persons who paid the funeral expenses.

(2) a) Death benefit is paid on the condition that the employed person had completed a creditable period of employment of at least 3 months within the meaning of Art. 6 at the day of death.

b) If death results from an accident at work the condition stipulated in paragraph a) is void.

(3) Death benefits will be based on the regular monthly grass pay; if death results from an accident at work, the double amount will be paid.

(4) a) For the payment of death benefits a death certificate issued by a registrar's office has to be submitted.

b) The payment of death benefits to a beneficiary (subpar. 1 b» causes the claims of other beneficiaries to become extinct.

(5) Death benefits will not be paid if the death

a) resulted from a sideline employment which was not approved by the employer, or

b) occurred because of the impacts of a simultaneously existing further employment relationship.

Art. 17 Company Pension Scheme

Remains vacant at the time being.

Art. 18 Capital Accumulation Benefits

(1) In accordance with the provisions of the Capital Accumulation Act the employed person is entitled to monthly capital accumulation benefits upon production of supporting documents of the respective government sponsored form of investment

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(2) The monthly capital accumulation benefit amounts to 26.59 € gross and will be paid together with the monthly pay.

(3) Upon the termination of the employment the entitlement to the benefits pursuant to par. 1 will end.

Art. 19 Vacation Allowance

(1) The employee will be paid a vacation allowance in each calendar year provided that a period of employment of at least twelve months has been accomplished without interruption on 01 April.

(2) For employees hired after 01 October 1995 the vacation allowance amounts to:

- 1% of the annual gross earnings after two years of employment

- 2% of the annual gross earnings after four years of employment

(3) For employees who were hired prior to 01 October 1995 as well as employees who were taken over according to Art. 613a German Civil Code before coming into effect of this collective agreement the acquired possessive rights will still be valid.

Art. 20 Gratuity

(1) From the second year of employment the employee receives a gratuity in Each calendar year if employed with the company on 31 October.

(2) The gratuity amounts to

* 2 per cent after 2 years of employment as per Art. 6

* 3 per cent after 3 years of employment as per Art. 6

* 4 per cent after 4 years of employment as per Art. 6

* 5 per cent after 5 years of employment as per Art. 6

* 6 1/3per cent after 6 years of employment as per Art. 6 of the total annual gross income of the employed person.

(3) For employees who were hired prior to 01 October 1995 as well as employees who were taken over according to Art. 613a German Civil Code before coming into effect of this collective agreement the acquired possessive

Union Ver.di Page 21 rights will still be valid.

(4) The payment of the gratuity pursuant to par. 2 will be effected together with the payment of the earnings made for the month of November.

(5) The gratuity will not be paid if the employment relationship of the employee is in the process of being terminated on 31 October because of a fault attributable to the employed person or on the request of the employed person.

Employees whose employment relationship is suspended on 31 October are considered as employed.

(6) a) The creditable earnings on which the calculation of the gratuity is based Comprise the following:

- the basic pay

- other compensation components

- sick pay (Art. 13)

- vacation pay (Art. 14)

- vacation allowance (Art. 19)

- compensation for loss of working hours (Art. 11)

- compensation for release from work (Art. 12)

b) The earnings settled until the deadline of 31 October will be calculated according to subpar. a) and will be paid pursuant to par. 2.

Parts of the earnings which the employee was entitled to, but was not able to dispose of by 31 October will be added to the creditable earnings of the gratuity of the following year.

(7) a) An employee who is entitled to the payment and whose employment Relationship ends before 1 April of the following year through own fault or at own request after the receipt of the gratuity is obligated to reimburse that amount of the gratuity which exceeds 52.00 € if he/she did not attain an uninterrupted employment period (Art. 6) of 36 months on the day of leaving.

b) The repayable amount may be withheld from the final earnings of the employed person.

(8) If an employee who fulfills the conditions of par. 1 dies before the gratuity is paid, payment will be made to the surviving dependants.

Union Ver.di Page 22

Art. 21 Termination of Employment

(1) During the probationary period the employment relationship can be terminated by either party with a period of notice of two weeks to the end of a calendar month.

(2) In consideration of the employment period as per Art. 6 and in compliance with the terms stipulated below the employment relationship can be terminated as follows (due notice):

a) By both the employee and the employer from the 1st year to the 5th year 1 month to the end of a calendar month

b) By the employer after 5 years 2 months after 8 years 3 months to the end of a calendar month after 10 years 5 months after 12 years 6 months to the end of a quarter

(3) Claims of the employee effective under this collective agreement remain Unaffected until expiry of the period of notice.

(4) a) The employment relationship may be terminated by either party to the employment contract for good cause without observing the period of notice (exceptional dismissal).

b) A good cause within the meaning of subpar. a) is only given if facts are present on grounds of which it would be unreasonable to require the terminating party - taking into account all circumstances of the particular case and balancing the interests of the parties - to continue the employment relationship until the expiry of the period of notice or until the agreed termination of employment by expiration.

c) An exceptional dismissal is no longer permitted if the underlying facts have been established and have been known to the person entitled to give notice for more than two weeks.

(5) Termination of Employment without Notice

a) Without a notice of termination being required, the employment contract

Union Ver.di Page 23 will expire with the entitlement for retirement by the valid statutory pension insurance.

b) If a notification of a social security insurance authority establishes that an employee is incapable of gainful employment, the employment contract will expire at the end of the month during which the notification was served without a notice of termination being necessary. The employed person has to inform the employer of the receipt of the notification immediately.

c) The employment relationship will not end if disability insurance benefits are granted on a temporary basis after the notification of the social security insurance.

In such case the employment relationship is suspended (with all rights and obligations) effective the day following receipt of the notification until the end of the last day of the period for which disability insurance benefits have been granted, however, no longer than the end of the day on which employment ends due to any other reasons.

(6) The termination has to be in writing while indicating reasons. Reasons must not be indicated for terminations during the probationary period.

Art. 22 Protection against Dismissal

(1) After a period of employment (Art. 6) of 25 years the employment relationship of an employee who has completed the 50th year of age can no longer be terminated on due notice.

(2) The protection against dismissal does not apply to

- terminations in case of the dissolution of the project

- exceptional dismissal (Art. 21 par. 4)

- termination with the option of altered conditions of employment

Art. 23 Testimonials and Certifications

(1) In case of termination, the employee is entitled to a certification of the kind and duration of his employment.

(2) Upon retirement a letter of reference has to be issued immediately on the request of the employee. This letter of reference has to cover the performance and the conduct of the employee as well as the reason for the termination.

Union Ver.di Page 24

(3) The employee is also entitled to request an interim letter of reference during the employment.

(4) Upon retirement the employee will be handed out the employment records, including a vacation statement. If this is not possible immediately, a written confirmation will be issued.

Art. 24 Preclusive Periods

(1) Either party can only assert claims arising from the employment relationship if the agreed preclusive periods were observed.

(2) The preclusive period for all claims derived from this collective agreement is three months.

(3) For wrong calculations of earnings the preclusive period starts from the day the pay slip was handed to the employee.

(4) The assertion of claims within the meaning of par. 1 must be made in writing.

Art. 25 Principles of Remuneration, Regulations on Grading, Wage and Salary Rates; other Tariff Regimes

(1) Principles of remuneration, regulations on grading as well as wage and salary rates will be stipulated in a separate collective agreement.

(2) Other collective regulations particularly in regard to

- the improvement of health care within the company will be stipulated in a separate collective agreement.

Art. 26

Enforcement

This collective agreement will come into force as of 15 January 1998.

Union Ver.di Page 25

Art. 27 Termination

(1) This collective agreement can be terminated in compliance with the set period, but not before 30 September 1999.

The period of notice is three months to the end of a quarter.

(2) Termination must be made in writing.

Frankfurt am Main, 6 December 1997

Union Ver.di Page 26

Notes to the Minutes to the Collective Agreement for the Employees of ITT Federal

Services GmbH of 6 December 1997 effective as of 15 January 1998

Note to the minutes no. 1: The Rhein Main Project comprises all tasks performed by ITT FS GmbH on US Air Base Rhein Main as a result of contracts with the US Air Force.

The Kaiserslautern Project comprises all tasks performed by ITI FS GmbH as a result of contracts with the US Air Force and which are organizationally assigned to the project as a Work Center (five work centers: ROB, Kaiserslautern, Miesau, Landstuhl, Pirmasens).

Note to the minutes no. 2: The parties to this collective agreement agree that in good time before the assumption of further projects by ITI FS GmbH discussions will be taken up without delay to check a possible extension of the scope of the collective agreement. An extension of the scope by mutual agreement does not presuppose the termination of the collective agreement.

Note to the minutes no. 3: u n o c cu p i e d

Note to the minutes no. 4: u n o c cu p i e d

Note to the minutes no. 5: Existing company agreements on the handling and administration of United States holidays remain unaffected by the stipulations of this collective agreement.

Note to the minutes no. 6: Existing company agreements concerning arrangements on excess hours will be applied accordingly.

Note to the minutes no. 7: To bring about measures in order to reduce the number of employees absent from work owing to sickness and for internal health care, the parties to the collective agreement will conclude a separate stipulation.

Note to the minutes no. 8: The parties to this collective agreement agree to enter into negotiations on a company pension scheme for the employees; a respective agreement may only be concluded in connection with the termination and enforcement of the remuneration of salaries and wages pursuant to Art. 3 of the collective agreement on remuneration.

Note to the minutes no. 9: u n o c cu p i e d

Union Ver.di Page 27

Note to the minutes no. 10: The parties to this collective agreement agree to conclude a separate agreement on the regulation of procedures in case of disputes/conciliation.

Note to the minutes no. 11: u n o c cu p i e d

Note to the minutes no. 12: Pursuant to Art. 2 par. 9 of the collective agreement there is no requirement for the employer to bear the costs for a Police Good Conduct Certificate (PGCC) for applicants applying for a job.

Pursuant to Art. 15 par. 3 a) the employee is entitled to be provided with safety boots which the employer has to hold available and free of charge by bearing 100 % of the particular purchasing price. The safety boots will be centrally purchased by the employer in accordance with the particular works councils.

Frankfurt am Main, 6 December 1997