(5)_CBA_-_CGD,_Ft._Irwin,_CA_CBA_(23_Jan_16_-_22_Jan_19).pdf

IAM&AW WFF - Ft. Irwin Effective 23 January 2016 085/15

Collective Bargaining Agreement

Between

Cubic Global Defense, Inc.

And

International Association of Machinists and Aerospace Workers, AFL-CIO

District Lodge 725

Local Lodge 25

TAF Specialists

Warfighter FOCUS (WFF) Program

Fort Irwin National Training Center (NTC), CA.

Effective from 23 January 2016 to 22 January 2019

IAM&AW WFF, Ft. Irwin

TABLE OF CONTENTS

PREAMBLE 1

ARTICLE 1 – INTENT AND PURPOSE 1

ARTICLE 2 – RECOGNITION 1

ARTICLE 3 – BARGAINING UNIT 1

ARTICLE 4 – MANAGEMENT RIGHTS 1

ARTICLE 5 – SENIORITY 2

ARTICLE 6 – UNION MEMBERSHIP / DUES CHECK-OFF 3

ARTICLE 7 – UNION ACCESS 3

ARTICLE 8 – STEWARDS 4

ARTICLE 9 – DISCHARGE AND DISCIPLINE 4

ARTICLE 10 – GRIEVANCE PROCEDURE AND ARBITRATION 5

ARTICLE 11 – HOURS OF WORK AND OVERTIME 7

ARTICLE 12 – HOLIDAYS 9

ARTICLE 13 – PAID TIME OFF (PTO) 9

ARTICLE 14 – SICK LEAVE 10

ARTICLE 15 – JURY DUTY 10

ARTICLE 16 – BEREAVEMENT LEAVE 10

ARTICLE 17 – WAGES AND JOB CLASSIFICATION 11

ARTICLE 18 – HEALTH AND WELFARE 11

ARTICLE 19 – 401K PLAN 12

ARTICLE 20 – LEAVES OF ABSENCE 12

ARTICLE 21 – NO STRIKES OR LOCKOUTS 13

ARTICLE 22 – BULLETIN BOARDS 14

ARTICLE 23 – SAFETY AND EQUIPMENT 14

ARTICLE 24 – GENERAL PROVISIONS 14

ARTICLE 25 – EFFECT OF LAW 15

ARTICLE 26 – SCOPE OF AGREEMENT 16

ARTICLE 27 – NON-DISCRIMINATION 16

ARTICLE 28 – DURATION 16

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PREAMBLE

This Agreement is made and entered into January 23, 2016 by and between Cubic Global

Defense, Inc. (Hereinafter referred to as the Company) and the International Association of

Machinists and Aerospace Workers, District Lodge 725 and Local Lodge 25 (hereafter referred to as the Union) with respect to work performed at the Fort Irwin NTC, California.

ARTICLE 1 - INTENT AND PURPOSE

In setting forth certain provisions pertaining to wages, hours of work and working conditions, the

Company and the Union have agreed to cooperate in establishing and maintaining a harmonious relationship and have provided procedures for the peaceful settlement of all grievances that may arise.

ARTICLE 2 – RECOGNITION

The Company herein recognizes the Union as the sole and exclusive bargaining agent as certified by the National Labor Relations Board Case No. 31-RC-148434 for the purpose of collective bargaining with respect to rates of pay, wages, and hours of employment and other conditions pertaining to employment for all of the employees in the bargaining unit hereinafter set forth.

ARTICLE 3 – BARGAINING UNIT

The Bargaining Unit shall consist of the following classifications: All full-time TAF Specialists

(Computer Operator IVs) employed by the Company on the Warfighter FOCUS contract at Fort

Irwin, CA.

Excluding all other employees, office clerical employees, guards and supervisors as defined by the Act, as amended.

ARTICLE 4 – MANAGEMENT RIGHTS

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

(without limiting the generality of the foregoing) its right to establish or continue policies, practices, and procedures for the conduct of the business; to select and direct the working force, to establish, eliminate, change or combine work schedules and work assignments and collateral duties, which are not in conflict with the terms of this Agreement; to transfer, promote or demote employees, or to lay off, terminate or otherwise relieve employees from duty for lack of work or other legitimate reasons; to make and enforce reasonable rules for the maintenance of discipline;

to suspend, discharge or otherwise discipline employees for just cause; to establish the methods, processes and means of providing services; and otherwise to take such measures as management may determine to be necessary to the orderly, efficient or economical operation of the business.

It is understood and agreed that any of the powers and authority, which the Company had prior to the signing of this Agreement, are retained by the Company except those specifically modified, delegated or granted by this Agreement.

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ARTICLE 5 – SENIORITY

Section 1. 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 the

Warfighter FOCUS Program at Fort Irwin. The Company agrees to the seniority dates of the existing employees. Employees hired on or after the date of contract ratification will establish their seniority from date of hire on the Warfighter FOCUS program.

“Benefit Eligibility Date” of an employee is the length of his/her continuous service on the Government contract at Ft. Irwin, including time spent with predecessor Companies on the Government contract.

Bargaining Unit Seniority Dates and Benefit Eligibility Dates of current employees will be provided to the Union annually on 1 July or upon written request.

Employees transferring into the bargaining unit will retain their Company date of hire for vacation and fringe benefit purposes only, but their bargaining unit seniority date will be their date of transfer into the bargaining unit.

Section 2. In cases of layoff, the employee with the least seniority shall be laid off first. The

Company shall notify affected employees as soon as the facts are known to the Company of upcoming layoffs, but not less than two (2) weeks of notice or two (2) weeks of pay in lieu thereof. All affected employees shall be given notice in writing.

Section 3. An employee shall lose his/her seniority and his/her continuous employment shall be broken for the following reasons:

a) Resignation.

b) Discharge for just cause.

c) Layoff in excess of twenty-four (24) months.

d) Failure to return to work within five (5) business days at the expiration of a leave of absence.

e) Failure to return to work within five (5) business days after being recalled. If the employee being recalled is currently employed by another employer the employee will be allowed to give a courtesy two weeks of notice to the other employer before being required to return to work.

f) Absence of three (3) consecutive work days without reporting to the Company, unless it is later proven that the employee was incapacitated and unable to contact the employer by phone due to circumstances out of the control of the employee, or the employee is on

FMLA/CRFA/Industrial Leave.

g) Retirement.

Section 4. Each new employee shall serve a probation period of ninety (90) days. If during the ninety (90) day period it is found that the new employee is not suitable for the job, his/her

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085/15 employment may be terminated at the Company’s sole discretion, without recourse to the grievance procedure.

Section 5. In recall back to work, the employee with the most seniority shall be recalled first.

An employee subject to recall shall be sent a certified or registered letter to the employee's address given at the time of his/her layoff or the last address provided by the employee after layoff.

ARTICLE 6 – UNION MEMBERSHIP / DUES CHECK-OFF

All employees covered by this agreement shall, as a condition of continued employment, become and remain members of the Union in good standing during the term of this agreement. All new employees covered by this agreement shall, as a condition of employment, become members of the Union immediately after thirty (30) calendar days of employment, and remain members in good standing during the term of this agreement.

The Union will make membership in the Union available to all employees covered by this agreement on the same terms and conditions as are generally applicable to other members of the

Union, and further, demands for termination of employment will not be made for reasons other than failure of an employee to tender the periodic dues and fees uniformly required as a condition of acquiring or retaining membership in the Union. Upon receipt of authorization signed by the employee, the Company shall deduct from the employee's pay the initiation or reinstatement fee and monthly dues payable by him to the Union, in an amount as directed by the

Union for the period specified, so long as he remains in the bargaining unit.

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

Such payroll deductions shall be remitted to the location as designated by the District Lodge 725 by the fifteen (15th) of the month following the month the payroll deductions are made. The

Company shall furnish to the Financial Officer of the Union monthly, a record of those from whom deductions have been made and the amounts of the deduction.

ARTICLE 7 – UNION ACCESS

Accredited representatives of the Union shall have the maximum access permissible under applicable security regulations to the appropriate areas of the installation during working hours for the purpose of conducting Union business pertaining to the provisions of this agreement. All facility access is subject to Government approval.

Prior to a Union Representative visiting the location, the Union will notify the Site Manager or his/her designee 24 hours prior to the visit. Such visits shall not unduly interfere with production or work being performed.

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ARTICLE 8 – STEWARDS

Section 1. The Company recognizes the right of the Union to designate three (3) Shop

Stewards, from the Company’s seniority list, one (1) of which will be designated by the Union as the Chief Shop Steward. The authority of the Shop Stewards and Chief Shop Steward so designated by the Union shall be limited to, and shall not exceed, the following duties and activities:

a) The investigation and presentation of grievances to the Company or the designated

Company representative in accordance with the provisions of the labor agreement.

b) The transmission of such messages and information, which shall originate with, and are authorized by the Union or its Officers, provided such message and information have:

Been reduced to writing, or when not reduced to writing, are of routine nature and do not interfere with the

Company’s business.

Section 2. Before a Steward conducts Union business as described above, they will contact their Team Lead or his/her designee and explain the nature of the problem they will be discussing and the identity of the aggrieved employee. If the contract work would be hindered at that time, the Team Lead or his/her designee and the Steward will mutually agree on another time for the required meeting, but in no event later than twenty-four (24) regular working hours after the initial request was made.

Section 3. Stewards will continue to perform their normal work assignments when not conducting Union business under this Section.

ARTICLE 9 - DISCHARGE AND DISCIPLINE

Section 1. The parties agree that they will cooperate to foster a motivated and efficient workforce. Maintaining discipline is an essential element of this effort. The Company will retain the right to discipline employees by discharge, suspension, or other action. No disciplinary action will be taken without just cause.

Section 2. In all cases of written counseling, the Site Manager will notify the Steward in advance of the action and meet with him. Consistent with appropriate policies and procedures, the Site Manager will advise the Steward of the reason the action is being taken. The Site

Manager or the Employee may request to have the employee’s Steward present at the meeting, whenever practical. The Steward will be given time to meet with the employee prior to meeting the Site Manager.

Section 3. When an employee is to be given corrective discipline, the principles of progressive discipline will be applied, unless the offense is so egregious that it may require an advance in step (with “Just Cause”) as follows:

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Step 1 Verbal Counseling Documentation. Shall be made void and removed from consideration in the employee’s personnel record after twelve (12) months.

Step 2 Written Warning. Shall be made void and removed from consideration in the employee’s personnel record after twelve (12) months.

Step 3 Termination.

Section 4. Administrative Leave/Suspension. An employee may be placed on paid or unpaid administrative leave to allow the Company to conduct an investigation into a complaint or incident involving the employee. An employee may be suspended in accordance with the standard remedies used for documented security violations. Additionally, a suspension may be used in conjunction with a written warning when the situation so warrants following an investigation of wrongdoing.

Section 5. It is understood and agreed that any disciplinary action issued to an employee by the Company shall be issued within ten (10) work days following knowledge by the Company of the occurrence of the alleged violations. The above specified time limit may be extended by written mutual agreement of the parties.

ARTICLE 10 – GRIEVANCE PROCEDURE AND ARBITRATION

Section 1. It is the intent of this Article to establish a means for prompt adjustment of working problems and personal grievances at the job level by conference between the Team

Leads and the employee involved. The Team Lead or employee may request that the Steward be present during their meeting.

Prior to filing a grievance, the employee involved shall first confer with his/her Team Lead in order to amicably settle the matter, provided the Steward has been given an opportunity to be present. Any and all grievances shall be handled during normal working hours without any unnecessary interruption of work.

Section 2. If not resolved at this informal level, a formal written grievance shall be filed. The grievance shall contain a full statement of the grievance and the facts upon which it is based, the section of this Agreement alleged to have been violated and the action, remedy or adjustment sought. In grievances filed on behalf of individual employees, the grievance shall be signed, by the affected employee or by a Steward. A grievance may be filed by the Business Representative in the absence of the Steward. Grievances filed for suspensions or termination will be automatically initiated at Step 2 of the grievance procedure.

No grievances shall be filed or processed based on facts or events, or omissions within the employee's knowledge which have occurred more than ten (10) calendar days before such

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085/15 grievance is filed, except for a bona fide pay discrepancy. Both parties agree to exert an earnest effort to settle such grievance promptly through the following steps:

Step 1 The grievance shall be submitted to the Site Manager. The Site Manager and the steward shall meet in person within ten (10) workdays after the receipt of the grievance and attempt to resolve the grievance. If unable to resolve the grievance, the Site Manager shall submit a written answer to the Business Representative within ten (10) workdays after the meeting.

Step 2 If not settled/resolved at Step 1, the Union may submit the grievance to the

Program Manager within ten (10) workdays after receipt of the Site Managers written response. The Program Manager and the Union's Business Representative will meet, in person or by telephone conference, within ten (10) workdays and attempt to resolve any grievance. If unable to resolve the grievance, the Program

Manager shall submit a written answer to the Union Business Representative within ten (10) workdays after the meeting.

Step 3 The Union's Business Representative may submit, within thirty (30) workdays following the Company's Step 2 answer, written notice to the Company Vice

President of Human Resources of its intent to arbitrate. The Business

Representative and the Vice President of Human Resources will meet, in person or by telephone conference, and attempt to resolve the issue. If unable to resolve, the Union will request arbitration.

Section 3. Arbitration. The Union will request the Federal Mediation and Conciliation

Service (FMCS) to submit an arbitration panel of seven (7) names to each party. The Union and the Company shall alternately strike one name from such list (the Company and Union shall alternate which party shall make the first strike, Company to make initial strike) until only one name remains and that person shall be the arbitrator. The Parties will notify the Arbitrator of their selection and will coordinate schedules between the Company, Arbitrator and Union. The cost of the Arbitrator will be shared equally among the parties. The Company and the Union will continue to attempt to resolve the grievance prior to arbitration.

Section 4. The arguments before the Arbitrator will be oral, written or both. The Arbitrator shall not have the authority to add to, subtract from, modify, alter or change any of the terms of this Agreement. The Arbitrator's authority is to interpret and apply provisions of this Agreement.

The Arbitrator shall be bound entirely by the records presented in the form of evidence presented at the hearing and the Collective Bargaining Agreement.

Section 5. The parties may file post hearing briefs. The Arbitrator shall render his/her decision within thirty (30) days of the close of the hearing or receipt of the briefs (unless otherwise agreed upon). The Arbitrator's decision shall be in writing. The award shall be delivered or mailed to each party. The decision of the Arbitrator shall be final and binding on all parties.

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Section 6. In cases of cancellation, the party requesting cancellation shall pay all fees and costs of the Arbitrator. In cases where the cancellation is the result of a compromise settlement, fees or costs of the Arbitrator shall be shared equally by the parties (unless otherwise agreed upon). No more than one (1) grievance shall be submitted to the same Arbitrator, unless mutually agreed to. All time limits shall be strictly adhered to and may only be extended by mutual agreements of the parties.

Section 7. A final decision made with respect to any grievance in Step 1 or Step 2 of the grievance procedure shall apply to that grievance only and shall not become a binding precedent in the case of other grievances, or a precedent which shall bind the parties in interpretation of this

Agreement. All settlements of grievances in Step 1 or Step 2 must be consistent with the terms and conditions of this Agreement.

Section 8 Failure of an employee or the Union to meet any deadline at any step of the grievance or arbitration procedure shall constitute a waiver of the grievance and/or right to proceed to arbitration and no further action may be taken on it. Failure of the Employer to meet any deadline at any step of this grievance or arbitration procedure shall be considered forfeiture of the right to deny the grievance remedy requested. Although time shall be of the essence, the time limits set forth in this Article can be extended only by mutual written agreement between the Company and Union.

ARTICLE 11 – HOURS OF WORK AND OVERTIME

Section 1. Eight (8) consecutive hours, exclusive of a meal period of a minimum of thirty

(30) minutes, shall constitute a normal work shift.

Section 2. The workweek for payroll purposes shall consist of seven (7) consecutive calendar days beginning on Saturday and running through the following Friday.

The normal work schedule when not in rotation shall be five (5) working days, with two (2) consecutive days off in a workweek. During rotation, the normal work schedule shall consist of six (6) working days in a workweek. Work schedules are as determined by the Company and the operational needs of the customer. Nothing in this Article shall be construed as a guarantee of any specific number of hours of work per day or per week.

Section 3. All employees will receive two (2) uninterrupted paid fifteen (15) minute breaks per day. One (1) to be taken during the first half of their work day and one (1) to be taken during the second half of their work day.

In the event any employee is required to work beyond any eight (8) hour work day, the affected employee will receive an additional paid fifteen (15) minute break prior to commencing additional work. The Company shall follow all state and federal laws.

Meal 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. An employee who is required to work overtime will be allowed a one-half (½) hour lunch break after four (4) hours of overtime worked in a day.

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In accordance with California state law, if the Company fails to provide the employee with the statutory meal period, the employee shall be paid for the time worked and a one-hour missed meal period penalty. It is the employee’s responsibility to record his/her rest period(s) and meal period(s) on his/her timesheet in accordance with Company policy.

Section 4. Shifts will be defined by their start times in the following windows:

1st Shift: Beginning at or after 0400 but before 1200

2nd Shift: Beginning at or after 1200 but before 2000

3rd Shift: Beginning at or after 2000 but before 0400

Section 5. Shift Premium. Employees covered by this agreement assigned to the second or third shift shall receive a shift differential of $0.50 per hour for all hours paid.

When an employee’s shift assignment is rotated from one shift to another, all affected employees will be notified in writing at least seven (7) days in advance of the starting time of the new shift to which they are assigned. Should an employee be required to work the new shift prior to the seven (7) days of notification, they will receive overtime at the rate of one-and-one half (1.5) times their working rate for all hours worked until seven (7) days’ notice is achieved

Section 6. An employee who is scheduled and reports for work at the scheduled time without having been notified not to report, shall receive not less than four (4) hours pay at his/her working rate. If more than four (4) hours are worked, the employee shall receive pay for actual hours worked.

Section 7. The Company will distribute planned overtime as equitably as possible amongst employees.

Overtime at the rate of one-and-one half (1.5) times the working rate will be paid for hours worked over eight (8) in a day and over forty (40) in a workweek. Overtime at the rate of double (2) times the working rate, will be paid for hours worked in excess of 12 hours per day.

Overtime at the rate of one-and-one half (1.5) time the working rate will be paid for the first eight (8) hours of work on the seventh (7 th

) consecutive day of work; and double time will be paid for all hours worked in excess of eight (8) hours on such day.

Section 8. During the course of this labor agreement, the Company may request from the

Union consideration for a four, ten-hour days schedule.

Section 9. There shall be no pyramiding of overtime. Nothing in this Agreement shall be construed as to require the payment of overtime on overtime, or the compounding of overtime as a result of computing hours in accordance with this Article.

Section 10. If the Government notifies the Site Manager that access to the work site is barred to “non-essential personnel” due to severe weather, natural disaster, or base/worksite closure for

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085/15 any reason, the employees will be paid for their regular scheduled workday not to exceed eight

(8) hours. If this occurs during working hours all non-essential employees will be sent home.

Employees must verify management concurrence by calling the Site Manager. The Site Manager will notify employees scheduled to work on the day of the base/worksite closure not to report to the worksite.

ARTICLE 12 – HOLIDAYS

Section 1. Holiday pay is eight (8) hours pay, which is payable at the employee's working rate of pay.

Section 2. The following ten (10) holidays will be observed each calendar year:

New Year's Day Martin Luther King’s Birthday

President's Day Memorial Day

Independence Day Labor Day

Veterans Day Columbus Day

Thanksgiving Day Christmas Day

Section 3. Any employee required to work on any of the above holidays will be paid for all hours worked at his/her working rate. Full-time employees should record eight (8) hours of holiday pay on their timesheet in accordance with the dates that the holiday is observed for their site.

Section 4. Any federally observed holiday, stated above, will be observed under the same schedule observed by Ft Irwin, CA. The holiday schedule will be aligned to best meet the rotational mission and provide pay continuity when the customer is on opportunity leave (twice per year). When a holiday falls during an employee’s vacation, the holiday will not be charged as vacation.

ARTICLE 13 – PAID TIME OFF (PTO)

Section 1. Each employee shall be entitled to accrue PTO each pay period in accordance with the below table:

Years of Service Annual Amount Pay Period Accrual

Hire thru 4 years 80 hours 3.08 hours

5+ thru 14 years 120 hours 4.62 hours

15+ thru 20 years 160 hours 6.15 hours

Over 20 years 180 hours 6.92 hours

Section 2. Employees are requested to make their written PTO request as far in advance as reasonable. It is understood and agreed that final approval of PTO requests rests exclusively with the Company and an employee’s request will not be unreasonably denied.

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Section 3. PTO pay shall be paid at the employee’s base working rate. Employees must use vacation time in increments of no less than one half (.5) hour a day.

Section 4. Employees may carry over a maximum of 120 hours from one benefit year to the next.

Section 5. Employees will be paid out the balance of any PTO time earned, but unused, upon termination of employment or being laid off.

ARTICLE 14 – SICK LEAVE

Section 1. Effective with the first pay period following 1 May 2016, full-time employees will receive a deposit of five (5) days paid sick leave. Each subsequent year of this Agreement, they will receive an additional five (5) days sick leave in the pay period following 1 May.

Unused amounts will roll over from one year to the next to a maximum of ten (10) days.

Employees will be required to utilize sick time in 0.5 hour increments.

The use of sick leave will be in accordance with federal and state provisions and per Company policy. In the event of future changes to sick leave laws, the Company agrees to discuss with the

Union its steps to implement new procedures in order to comply with these law revisions.

Section 2. There will be no pay out of unused sick leave each fiscal year. Unused sick leave amounts will not be paid out upon termination of employment.

ARTICLE 15 – JURY DUTY

An employee required to be absent from his/her employment to serve on a jury shall be paid his/her working rate of pay for all regular scheduled straight time hours for each day of jury service to a maximum of ten (10) days or in accordance with state law (if greater). Such absences shall be supported by a statement signed by the Clerk of Court certifying as to each day of jury duty.

An employee who is subpoenaed to court as a witness at the request of the Company shall be eligible to receive jury duty pay under the same conditions as outlined in this Article.

ARTICLE 16 – BEREAVEMENT LEAVE

Employees shall receive five (5) days of bereavement leave, of which three (3) days will be paid, when a death occurs in their immediate family. Immediate family is defined as parent, grandparent, spouse, child, grandchild, brother, sister, mother-in-law, father-in-law, step-parent, step-children, brother-in-law, sister-in-law, domestic partner and foster children.

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ARTICLE 17 – WAGES AND JOB CLASSIFICATION

The following hourly rates of pay shall prevail during the term of this Agreement.

Job Classification 05/01/2016 05/01/2017 05/01/2018

TAF Specialist $27.02 $27.56 $28.11

Wage increases will become effective the first full pay period following the effective date shown.

ARTICLE 18 – HEALTH AND WELFARE

Section 1. The Company will offer voluntary insurance benefits (life, accident, and disability). All existing Cubic Worldwide benefits plans will be offered to employees for their consideration, in accordance with the Company's plans for the duration of this agreement.

Section 2. Health & Welfare. All bargaining unit employees will receive bona-fide fringe benefits at the rate stipulated in the table below. All employees receive H&W benefits for all hours paid (maximum of 40 hours per week).

Effective 5/1/16 Effective 5/1/17 Effective 5/1/18

$5.25 $5.50 $5.75

A portion of these Health & Welfare benefits will be paid to The Boon Group, the Company’s third-party SCA administrator. The Boon Group will provide employees with a health insurance program (medical, dental, and basic life) and/or a non-elective 401(k) plan deferral (if the employee executes a waiver form with proof of other eligible group medical coverage). The amount assigned to The Boon Group will be established annually in accordance with the local

Wage Determination incorporated for the work. The difference between The Boon Group contribution and the hourly value of the employee’s H&W will be paid on a cash-in-lieu of benefits basis in the employee’s paycheck. Should there be a significant change in the plan benefits or rise in the rates, the Company and Union will meet to bargain any resulting issues.

Section 3. In the event that legislation is enacted that invalidates Section 2 of this Article, the parties mutually agree to negotiate any required changes to this Article.

Section 4. Dental and Vision. Employees may elect to enroll in the Company’s optional dental and/or vision plans.

Section 5. Life Insurance. Effective 1 January 2016, the Company will provide full-time employees with term life insurance equal to 1.75 times their annual base pay, rounded to the next highest $1,000 (up to a maximum of $50,000) at no cost to the employee. Employees may elect to purchase Optional Life Coverage, Spousal Life Coverage, Dependent Life Coverage, and

Additional Accidental Death & Dismemberment insurance by enrolling in the Company’s benefit plan offerings. The employee will pay for coverage elected via payroll deduction.

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ARTICLE 19 – 401K PLAN

Section 1. All employees covered under this agreement are eligible to participate in the

Company’s 401(k) Savings Plan. Employees may contribute their own monies via payroll deduction up to the maximum allowable by IRS regulations.

ARTICLE 20 – LEAVES OF ABSENCE

Section 1. Limited unpaid personal leaves of absence may be granted by 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 on a Leave of Absence Request form at least fourteen (14) days in advance. All unpaid personal leaves of absence must receive approval by the Program Manager. PTO will not accrue during a personal leave of absence and the employee shall not be eligible for holiday pay.

Section 2. Seniority shall continue to accumulate during an 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. The employee may submit an extension through his/her Team Lead.

Section 3. All leaves of absence will be in accordance with applicable state and federal laws.

When an employee is on an approved/designated Family & Medical Leave (FMLA) or

California Family Rights Act (CFRA) leave, the Company may require the employee to use accrued PTO hours down to forty (40) hours.

Health, Dental and Vision insurance, if elected, in addition to any optional benefits elected by the employee will continue for the duration of an approved leave of absence, as described above, as long as the employee continues to pay his/her portion of the premiums at least ten (10) days prior to the next month’s insurance coverage.

Section 4. 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. 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 bi-weekly basis, except in those cases where the employee's physician has provided an expected date of return.

Section 5. Leaves of absence without pay for Union business will be granted to Bargaining

Unit employees of the Company if mission allows in order that they are able to attend such functions as conferences, conventions, and Union educational courses. Employees must provide at least ten (10) days advance notice in writing to the Company. However, not more than three

(3) employees may be on a short leave of absence with the Union at any given time. Employees on such leave shall continue to accrue seniority.

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Section 6. Leaves of absence without pay in worker's compensation injury and legal occupational disease cases will be granted automatically for up to a twelve (12) month period of legal temporary disability. Seniority will accumulate for the full period of such leave.

Section 7. 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 fifteen (15) scheduled working days per fiscal year. The employee must present a copy of his/her orders 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 to report for military training in excess of thirty (30) consecutive days or those called to active duty shall be reinstated in accordance with the Uniformed Services Employment and Reemployment

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

Section 8. 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, in accordance with

Article 9.

Section 9. 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 21 – NO STRIKES OR LOCKOUTS

Section 1. During the term of this Agreement, the Union, its officers, agents, representatives and members covered by this Agreement, agree that there shall be no strikes, concerted failure to report for duty, concerted absence of employees from their positions, concerted stoppage of work, concerted submission of resignations, concerted absence in whole or in part by any group of employees from the full and faithful performance of their duties of employment or acts of a similar nature which would interfere with production. Should the Union or employees covered hereunder breach this Article, the Company may discipline the employees involved up to and including discharge for just cause as it pertains to this Article. In such event, the Union or affected employee may grieve disciplinary actions taken against any such employee only with regard to a question of an employee’s participation in any of the above described activities.

However, once participation has been established, management’s actions are no longer subject to the grievance procedure. In the event that employees cease work in violation of this Article, such employees shall not be entitled to any benefits or wages while they are engaged in such cessation of work.

Section 2. The Company agrees that for the duration of this Agreement there shall be no lockouts. A lockout as mentioned herein shall not be construed as the closing down of the operation or any part thereof or curtailing any operations for business reasons.

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Section 3. Bargaining Unit employees will not be requested or required to cross sanctioned

IAMAW picket lines at any other Cubic Facility/Location to perform work of other striking

IAMAW members. If an employee encounters a picket line, the employee should contact their supervisor. This Section 3 is the only exception to the prohibition against strikes or work stoppages for any reason during this contract.

ARTICLE 22 – BULLETIN BOARDS

The Company shall provide one (1) bulletin board for the Union to post official Union information for their membership. Where there is insufficient room for a bulletin board, the union may utilize a binder to contain the same information for employees to review.

The Union will not use the bulletin board or binder to criticize the Company or its agents in any respect. All information to be posted is subject to advance approval by the Site Manager for compliance with the standards set forth in this Article. The Company will not remove information which it has approved for posting on the bulletin board. The Union recognizes that the Government must approve the location of the bulletin board if displayed in any location other than Building 563.

ARTICLE 23 - SAFETY AND EQUIPMENT

Section 1. It is the intent of the Company to maintain safe and healthy conditions as is necessary to protect employees from injury. It is the desire of the parties to this Agreement to have a site “Joint Safety Committee”, to promote and maintain high standards of safety for the operations of the Company, in order to eliminate, as far as possible, industrial accidents and illness.

The Joint Safety Committee will be made up of an equal number of employees from the

Company and the bargaining unit employees. The Committee will meet not less than quarterly.

Section 2. The Company shall provide OSHA-compliant safety gear as required for use in the performance of work. Protective gear must meet applicable safety standards and be worn by the employee at work at all times as required.

Section 3. The Customer shall furnish all special tools and equipment necessary for the performance of work.

ARTICLE 24 – GENERAL PROVISIONS

Section 1. The Company agrees that it will not discriminate against any employee because of his/her membership in the Union.

Section 2. Team Leads. The Company employs Team leads to act as managerial employees and they may perform the work of, or work with, bargaining unit employees, provided such work does not result in the layoff or reduction of hours of bargaining unit employees. When a Team

Lead performs bargaining unit work will it shall not be for a period longer than 49% of a shift.

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Section 3. Part Time On Call (PTOC) Employees. The Company shall retain the right to determine the number of employees necessary to accomplish the work under its Warfighter

FOCUS subcontract at Fort Irwin (Contract # W900KK-07-D-0001). Service contract work on this subcontract will be performed by bargaining unit personnel, PTOC employees, and Team

Leads. PTOC employees working as “Surge” on a separate task order will not displace full time bargaining employees.

Section 4. The Union will be given notice of new or amended rules or policies and given an opportunity to meet and confer concerning said rules or policies.

Section 5. Tuition Reimbursement. The Company will provide a tuition assistance program that grants educational financial assistance to employees that enroll in and successfully complete accredited courses with a satisfactory grade according to current Company policy. Educational reimbursement is limited to $2,500.00 per calendar year in accordance with Company policy.

Educational reimbursement will include any classes taken at Trade Schools and accredited institutions such as ITT Tech, National University, Coleman University or National Labor

College.

The Company agrees to reimburse all costs associated with successfully obtaining Government required certifications. The Company will allow time off without loss of wages and compensation when testing and licensing is necessary. The Government required IA certification will be made available to all employees of the bargaining unit.

Section 6. Bargaining unit employees on TDY assignment will be covered under the current

Collective Bargaining Agreement as if working at Fort Irwin, CA.

Employees on TDY assignment will be paid in accordance with the Government’s Joint Travel

Regulations (JTR). Travel receipts are required to ensure compliance with reimbursement procedures. Reimbursements will be paid on the following pay period after timely submission of properly executed expense reports and receipts.

ARTICLE 25 – EFFECT OF LAW

Should any part of this Agreement or any provision herein contained be rendered or declared by reason of any existing or subsequently enacted legislation or a decree of a court of competent jurisdiction, such invalidation of any such part or portion of this Agreement shall not invalidate the remaining portions herein and they shall remain in full force and effect.

The Company and the Union, within thirty (30) days of knowledge of such an occurrence shall meet to discuss the impact of such actions. If either party desires to negotiate a new provision regarding the affected portion, then that party may serve notice upon the other, in writing, of its desire to negotiate the provision of the Agreement affected by such legislation or court decree.

The parties shall meet within thirty (30) days of presentation of the written notice to negotiate changes to the Agreement. Any modification or changes to this Agreement brought about by the above negotiations shall be in writing and signed by the parties hereto.

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ARTICLE 26 – SCOPE OF AGREEMENT

Should the Company establish any new facilities that result in work or services presently performed under this Agreement being transferred, the Company agrees to consult with the

Union and make available job opportunities at the new facility(ies) wherever possible.

This Agreement shall be binding upon the parties hereto, their successors, administrators, executors, and assigns. On the sale, transfer or lease of any facility and/or equipment only the specific provisions of this Agreement, including supplements or other conditions shall prevail.

The Company shall give notice of the existence of this Agreement to any purchase, transferor, lessee, assignee, etc., of the operation covered by this Agreement or any part thereof. Such notices shall be in writing with a copy to the Union at the same time the seller, transfer, lessors executes a contract of transaction as herein described.

ARTICLE 27 – NON-DISCRIMINATION

Section 1. The Company and the Union agree to observe all applicable Federal and State laws regarding non-discrimination against any employee or applicant for employment because of race, color, religious creed, national origin, disability, veteran status, age, gender identity/expression, sexual orientation, or preference, citizenship status, medical condition or sex.

Section 2. The use of personal pronouns of masculine gender is for grammatical purpose only, and the terms of the Agreement shall apply equally to persons of either sex.

ARTICLE 28 – DURATION

Upon ratification, this Agreement will be in full force and effect January 23, 2016, to and including January 22, 2019 and will continue from year to year thereafter unless written notice of desire to negotiated changes or revisions or terminate this Agreement is served by either party shall, no more than ninety (90) days and least sixty (60) days prior to anniversary date hereof, notify the other party of a desire to negotiate the current contract. The parties shall mutually agree to meet within fifteen (15) days after receipt of such notice for the purpose of negotiating a new agreement.

No agreement, wavier, alteration, understanding, variation or modification of any terms or conditions contained herein shall be made by an employee, or group of employees with the

Company, and in no case shall it be binding upon the parties hereto unless such Agreement is made and executed in writing between the parties hereto, and the same has been ratified by the

Union.