W911SA-15-R-0014_Attachment12_Exhibit8_FHL-CBA.pdf

COLLECTIVE BARGAINING

AGREEMENT

between

PrimeTech International Inc. (PTi)

Contract Field Services Ft. Hunter Liggett, CA and

THE INTERNATIONAL ASSOCIATION OF

MACHINISTS

AND

AEROSPACE WORKERS, AFL-CIO

LOCAL LODGE 93

Effective:

June 12, 2014 to September 30, 2015

TABLE OF CONTENTS

PREAMBLE 3

ARTICLE 1 Intent & Purpose 4

ARTICLE 2 Management Rights 5

ARTICLE 3 Union Recognition 6

ARTICLE 4 Representation/Stewards 7

ARTICLE 5 Deduction of Union Fees and Procedure 8

ARTICLE 6 Non-Bargaining Unit Personnel 11

ARTICLE 7 Seniority 12

ARTICLE 8 Leaves of Absence 14

ARTICLE 9 Holidays 16

ARTICLE 10 Vacations 17

ARTICLE 11 Hours of Work/Overtime 18

ARTICLE 12 Government Security/Responsibility 20

ARTICLE 13 No Strike – No Lockout 21

ARTICLE 14 Benefit Plans 22

ARTICLE 15 Retirement 24

ARTICLE 16 Grievance and Arbitration Procedure 25

ARTICLE 17 Discharge and Discipline 28

ARTICLE 18 Training 29

ARTICLE 19 Bereavement Leave and Jury Duty 30

ARTICLE 20 General 31

ARTICLE 21 Wage Rules 32

ARTICLE 22 Temporary Duty Assignments 33

ARTICLE 23 Health and Safety 34

ARTICLE 24 Temporary Alternate Work 35

ARTICLE 25 Duration 36

APPENDIX A Wage Rates 37

MEMORANDUM OF UNDERSTANDING 38

TA

PREAMBLE

This Agreement is made and entered into effective as of this 12th day of June 2014, by and between PTi and its Contract Field Services operation at Fort Hunter Liggett, California

(hereinafter referred to as the Company) and the International Association Of Machinists And

Aerospace Workers, Local Lodge 93 (hereinafter referred to as the Union).

Article 1.00 INTENT AND PURPOSE

1.01 It is the intent and purpose of the Company and the Union to set forth herein the entire

Agreement with respect to wages, hours, and working conditions as relates to the government contract covered by this Agreement.

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

1.03 It is recognized by the Agreement to be the duty of the Company, the Union and the employees to cooperate fully, both individually and collectively, for the advancement of said conditions; and to provide a grievance procedure for the settlement of the employee’s grievances; and to provide that there shall be no interruptions and/or impeding of operations during the term of this Agreement.

1.04 The Union recognizes that the Company is a sub-contractor to VSE Corporation in a contract with the Federal Government through a U.S. Army contract and that the Company is required at all times to meet its contractual obligations. Nothing in this Agreement will prevent the Company from meeting its obligations and responsibilities as a Government contractor. The Union and the Company agree to comply with the requirements that VSE and the Federal Government, through a U.S. Army contract, may impose on the Company and its employees to the degree necessary, subject to rebuttal by either or both parties through the grievance and arbitration procedures and/or the courts, if deemed necessary.

Article 2.00 MANAGEMENT RIGHTS

2.01 Except as otherwise specifically provided in this Agreement, the Union recognizes and agree that the management and control of the Company's business, operations, work force and facilities are exclusively vested in the management of the Company. The Company has the right to plan, direct and control the Company's business, methods, operations and work force; to hire, promote, transfer, and layoff employees and demote, discipline, suspend or discharge employees; and the right to determine the work to be performed, size of the workforce, schedules of work, and all services, processes and standards required by the customer or other Government agencies; and the right to make reasonable rules not in conflict with this Agreement. It is not intended by the above recitation to limit any of the usual functions of management or to define all such functions. All matters which are not specifically covered by this Agreement are solely functions and responsibilities of management. The Union will be given notice of new or amended rules and be given an opportunity to meet and confer concerning said rules, which the Company may implement within ten (10) days of the notice to the Union.

2.02 Employees covered by this Agreement shall be governed by all Company rules, regulations and policies (including the Company’s substance abuse policy) which are not in conflict with the terms and conditions of this Agreement. 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.

Article 03.00 – UNION RECOGNITION

3.01 The Company recognizes the Union certified by the National Labor Relations Board in case no. 32-RC-5324 as the exclusive representative of all Production and Maintenance employees as follows:

a. Included: All full-time and regular part-time Maintenance Administrative employees including Supply Technician I, Heavy Equipment Mechanic, Production Controller

Clerk, Gunsmith II, Warehouse Specialist I, Tool and Parts Attendant, Mobile

Equipment Servicer, and Inspectors and other positions listed in Appendix A employed by the employer at its Ft. Hunter Liggett, California facility.

b. Excluded: All mechanic team leaders, inspector team leaders, office clerical employees, guards, managers and supervisors as defined by the Act.

3.02 The Company acknowledges the Union’s rights specially designated by the terms of this

Agreement, as the employees representative, the Union recognizes its duty to cooperate in any reasonable manner with the Company to support its efforts to assure a fair day’s work by each employee, to cooperate in combating any practices, which decrease efficiency and to maintain standards of quality and service.

3.03 Union Bulletin Board. The Company will provide a bulletin board (or part of a bulletin board) for the Union to post official business of the Union. No notice may disparage the

Company or any of its employees or supervisors, or otherwise contain any inappropriate language. Legitimate Union notices are defined as:

a. Meeting notices

b. Official Union election results

c. Notices of Union appointments

d. Union social events

e. All notices not listed above must be approved by the Employer.

3.04 Additions to the work force, in accordance with Article 3.01, (to include new or revised classifications) will become bargaining unit employees, provided such jobs are within the bargaining unit.

3.05 During the in process or orientation day of a new hire, Company will permit the shop steward a fifteen (15) minute period to talk to the new hire.

Article 4.00 - REPRESENTATION/STEWARDS

4.01 The Union will select four (4) Shop Stewards from among the full-time employees within the bargaining unit who have completed their probationary period with the Company.

4.02 Upon execution of this Agreement, the Union shall promptly furnish the Site Manager in writing, the names of the Stewards and shall thereafter promptly advise the Company, in writing, of any change. No Steward will be recognized by the Company prior to receipt of such written notice of appointment.

4.03 Reasonable time off from work, determined by the Site Manager, shall be authorized to permit the Steward to carry out his/her responsibilities under the grievance procedure to employees in his/her area of representation, providing such time off will not unduly interfere with the assigned work duties of the Steward or the employee involved. Such time from work during straight-time work hours shall be authorized without loss of pay or benefits.

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

4.05 The Company will excuse the Union negotiators from their normal work duties for a reasonable amount of time off without pay to prepare for negotiations and for actual negotiations, with reasonable notice from the Union.

4.06 Subject to existing security regulations, the Business Representative or other authorized

Representatives of the Union shall have access to the Company’s work areas during working hours for the purpose of investigating grievances that have arisen, attending meetings in accordance with the grievance procedure, and ascertaining whether or not the Agreement is being observed. Before doing so, he/she shall provide as much advance notice as possible to the Site Supervisor or other authorized representative, to obtain facility access. The Union representative will then report to the Site Supervisor or other authorized Company

Representative. Such rights shall be exercised reasonably and will not interfere with the normal conduct of the Company’s operations.

4.07 It is agreed that Union activities will not be carried out on the Employer's premises during working hours except the activities of administering this contract in non-work areas at non-work times or with the agreement of the Employer. Unless specifically authorized by the

Employer, all other Union activities will be held off-site and not on the Employer’s premises.

Article 5.00 - DEDUCTION OF UNION FEES AND PROCEDURE

5.01 Fees Deduction. The Employer will deduct an amount equivalent to Union monthly membership dues, initiation fees, and reinstatement fees from the wages of employees provided the employees have executed a written authorization provided by the Union. The authorization and assignment is voluntarily made in consideration for the cost of representation and collective bargaining and is not contingent upon present or future membership in the Union.

5.02 Effective October 1, 2008, as a condition of employment, all present bargaining unit employees shall become members of the Union or pay an agency fee to the

Union equal to the amount of monthly dues (but not both) within thirty (30) days of execution of this Agreement and all new employees shall become and remain members of the Union or pay an agency fee not later than thirty (30) calendar days of their date of hire or transfer.

NAME _________________________________________________________________________

DEPARTMENT AND PAYROLL NO. _______________________________________________

SOCIAL SECURITY NO. __________________________________________________________

FEES DEDUCTION

AUTHORIZATION AND ASSIGNMENT

TO: PTi (Herein called the "Employer")

You are hereby authorized:

1. To deduct from my wages $______ each month such sum as shall have been certified by_________________, International Association of Machinists and Aerospace Workers (herein called the "Union") as is equivalent to the Union's regular monthly membership dues, including initiation fee and/or reinstatement fee if payable. Such deduction shall be made in accordance with the provisions of the Collective Bargaining Agreement between the Employer and the Union.

2. To remit all sums so deducted to the Secretary- Treasurer of the Union.

This authorization and assignment shall be irrevocable for a period of one (1) year from the date hereof, or until the termination date of the applicable Collective Bargaining Agreement, whichever occurs sooner, and shall automatically be renewed as an irrevocable assignment and authorization for successive yearly or applicable

Collective Bargaining Agreement periods thereafter, whichever is the lesser unless I give written notice, by certified mail, of revocation to the Company and to the Union not more than twenty (20) and not less than five (5) days prior to the expiration of each yearly period or of each applicable Collective Bargaining Agreement, whichever comes sooner. I expressly agree that this authorization shall continue in full force and effect even if I resign my Union membership, except if properly revoked in the manner prescribed above.

DATE __________________________________________________________________________

EMPLOYEE SIGNATURE _________________________________________________________

WITNESS SIGNATURE __________________________________________________________

5.03 Current Authorizations

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

5.04 Deduction Procedure

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

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

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

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

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

5.05 Pick-up Deduction

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

Employer will deduct the amount owing from the next payroll period in which wages due are sufficient, after mandatory and other authorized deductions are made unless advised in writing by the Union not to make such Pick-up Deduction. The Employer will only make Pick-up

Deductions for any unpaid fees up to but not exceeding the eight- (8) payroll deduction periods immediately preceding the date the Pick-up Deduction is attempted in accordance with this provision.

5.06 Remittance and Statement to the Union

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

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

Total amount of fees deducted; Name and payroll number of employees from whose wage, deductions have been made; Name and payroll number of employees from whose wage, no deductions were made; The Employer shall, at the same time, remit to the Union

Secretary-Treasurer its check for the amounts so deducted.

5.07 Cancellation of Deduction Authorizations

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

1. Not less than five (5) calendar days nor more than twenty (20) calendar days prior to the yearly anniversary date of the authorization they have on file with the Company.

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

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

Company and the Union.

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

Article 6.00 – NON-BARGAINING UNIT PERSONNEL

6.01 Non-bargaining unit personnel may temporarily perform the work of, or work with, unit employees, provided such work does not result in the layoff, reduction of hours or earning opportunities or benefits of unit employees. Such temporary work may be performed under the following conditions:

a. For the purpose of instructing and training employees.

b. Under emergency conditions. The term “emergency” as used in this provision is defined to mean any unforeseen combination of circumstances, which would require immediate action. (Such as MOU #1)

c. Up to two (2) hours on any shift when an employee fails to report to work, and other qualified employees are not available in the classification on the shift in the overtime group.

The two (2) hour time limitations may be extended by mutual agreement of the parties.

d. Up to two (2) hours on any shift when supervising three or less employees (limited to the work that is performed by the employees being supervised). The two (2) hour time limitations may be extended by mutual agreement of the parties.

e. Lack of necessary skills required to complete a specific task.

f. Work normally performed by Team Leaders.

Article 7.00 - SENIORITY

7.01 Seniority is defined as the length of continuous service on the Contract. In the event that employees begin their employment on the same day, the employee having the social security number with the lowest last four (4) numbers shall be considered as having the most seniority for tie breaking purposes.

7.02 Employees shall be considered probationary for a period of ninety (90) calendar days of active employment from date of hire on the Contract. During this period, the Company may release such probationary employee as it finds advisable and such action shall not constitute a grievance or otherwise be subject to the grievance and arbitration procedure of this Agreement.

a. Employees who may be transferred onto the contract will have their seniority based upon their date of hire onto the contract or their most recent date of hire with the Company, whichever is lesser. It is agreed and understood that such an employee shall retain the earlier date of hire with the Company only for the purpose of benefit accruals.

If Team Leaders at Ft. Hunter Liggett are moved into the bargaining unit, they will be considered as new hires for the purpose of seniority, but will retain their benefit accrual rights.

b. The Company will post a seniority list at least once every twelve (12) months, (once a year).

7.03 It is the intention of the Company to maintain the most productive, qualified workforce at all times. Therefore, in the event of a layoff, the senior most qualified employee in the affected classification will be kept, unless a less senior employee is clearly more qualified. In the event that a more senior employee, who is scheduled to be laid off, may bump a less senior employee in a lower classification provided they performed the lower classification job while working on the Contract, and there is no less senior employee that is clearly more qualified.

Recall will be conducted in reverse order of the layoff. The employee must have the fitness and ability to perform the work needed for the position sought to be filled, for an employee that may have a medical limitation they shall not forfeit their recall position. If the employee at the top of the recall list has a medical limitation they will stay at the top of the recall list, but the company may go to the next employee that is physically able to perform work needing to be done.

7.03 example:

A) There are two technicians, Technician “A” has worked in the mechanical shop for four years and employed for four years. Technician “B” has worked in the mechanical shop two years and employed for 10 years, with eight years as a Supply Tech. For lay off purposes Tech “A” would be the most senior qualified and would be retained in the mechanical shop. Tech “B” would be able to bump back to the Supply Tech Dept., if Tech “B” has more seniority then other Supply Technician in that Dept.

B) There are two technicians, Technician “A” has worked in the mechanical shop for five years and employed for five years. Technician “B” has worked in the mechanical shop Four years and employed for 10 years, with six years as a Supply Tech. For lay off purposes Tech “A” would be the most senior qualified and would be retained in the mechanical shop. Tech “B” would be able to bump back to the

Supply Tech Dept.

7.04 An employee loses seniority when he/she:

a. Is discharged for cause and is not reinstated.

b. Voluntarily resigns from the Company.

c. Is laid off for a period greater than twelve (12) months.

d. Fails to report within five (5) workdays after receipt of a registered recall notice from lay-off. If the employee being recalled is currently employed by another employer the employee will be allowed to give a courtesy two weeks notice to the other employer before being required to return to work. Also, if the employee fails to notify the

Company of a change of address or telephone number while on layoff.

e. Is absent three (3) consecutive work days without reporting or contacting the Company with a reason sufficient to justify the absence.

f. Fails to report upon expiration of an approved leave of absence.

g. Accepting other employment while on approved leave of absence without prior written permission of the Company.

7.05 The Company will post all job openings, (promotions/transfers). Selection among internal and external applicants will be based on seniority and qualifications, with qualifications being the determining factor. An employee who is denied a bid will be given the reason for such denial in writing. The company will make all efforts possible to promote/transfer current employees first.

Article 8.00 - LEAVES OF ABSENCE

8.01 MILITARY LEAVE: Military leaves of absence will be granted to employees covered by this

Agreement for periods of short term active duty when called to active duty for service with a reserve unit of the Armed Forces or the National Guard. Such short-term active duty (30 days or less) shall include annual active duty training. Such employees shall receive differential pay between their military base rate and their Company base rate of pay exclusive of any premiums for up to ten (10) scheduled working days per calendar year. Employees must present a copy of their orders to the Company as soon as possible. Upon return from active duty, employees shall immediately, upon receipt of the military pay statement, provide to the Company a copy to serve as the basis for compensation. Employees required to report for military active duty in excess of thirty (30) consecutive days shall be reinstated in accordance with current applicable state and federal law concerning active military service.

8.02 PERSONAL MEDICAL LEAVE (FMLA): Leave of absence for a serious health condition for the employee, or for the employee to care for a spouse, child or parent with a serious health condition will be granted to an employee, who has worked at least 1250 hours within the twelve

(12) month period prior to the date of requested leave commencing, for a period of up to a maximum of twelve (12) work weeks when supported by medical certification provided by the employee’s physician. While on such leave of absence for personal medical reasons, the employee shall notify the Company as to his/her potential of returning to work following each visit to the physician of record. All such leave paid and unpaid shall be considered part of the twelve (12) weeks in compliance with the Family Medical Leave Act and Company policy. All leaves of absence will be in accordance with applicable state and federal laws. No employee shall be required to use more than 40 hours vacation time to cover periods of leave under

FMLA, however, employees with vacation entitlement may request vacation pay concurrent with time off work under FMLA.

8.03 Limited unpaid personal leaves of absence, for medical purposes only, may be granted by the

Company upon request of employees who have completed their probationary period. Such leaves shall not be for more than two (2) workdays within a thirty (30) day period provided the work schedule is a five (5) day, eight (8) hour a week work schedule.

8.04 Request for unpaid personal leave of absence must be made in writing and must receive prior approval by the Company. Accrued vacation must be used before any leave will be approved.

The Company may approve a maximum of two (2) extensions. However, if the employee does not return to work after the personal leave of absence, the employee shall be terminated.

a. Vacation credits are not earned while on a leave of absence under the provisions of this

Article.

b. Health insurance may continue for a maximum of sixty (60) days provided the employee pays his/her portion of the premium at least ten (10) days prior to the next month’s insurance coverage.

8.05 Leaves of absence without pay for Union business will be granted to Bargaining Unit employees of the Company, not to exceed two (2) weeks in a given year, who are elected or appointed by the Union, to attend such functions as conferences, conventions, and Union educational courses, provide at least five (5) workdays advance noticed is given in writing to the Company, if possible to do so. However, not more than one (1) employee may be on such leave at any time.

8.06 Employees are eligible for two (2) sick days, sixteen (16) or twenty (20) hours depending on if the employee is working a 5-8 or 4-10 work schedule, per year earned on their anniversary date with the company. Sick days will be use or lose and not roll over year to year. Sick pay will not be paid out at termination. Sick pay accrual will not begin until

1 October 2014.

Article 9.00 - HOLIDAYS

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

New Year's Day Labor Day

Martin Luther Kings Day Columbus Day

Presidents Day Veteran's Day

Memorial Day Thanksgiving Day

Independence Day Christmas Day

The Company observes any National Day of Mourning declared by the Federal Government, unless required to work by the customer.

9.02 An employee who is not required to work on one of the designated holidays mentioned above will be compensated for the holiday at his straight time rate for eight (8) hours or ten (10) hours based on an employee schedule, provided he is on the active payroll on the day of the holiday and has worked his last scheduled work day before the holiday and his next scheduled work day after the holiday, except an employee off on such day or days with prior permission of the employer, will be compensated for the holiday.

In the event an employee cannot work the day before and/or after the holiday due to circumstances out of their control, the employee must provide documentation to the Site

Supervisor upon their return to work to support the loss work days. Approval to provide the employee with the holiday pay in this situation will be at the Site Managers discretion.

9.03 Any additional holiday designated by Federal Government mandate or Presidential Executive

Order that is observed at the base will be observed in addition to the above provided the Company is reimbursed by the Government for the holiday.

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

9.05 Any employee required to work on any of the above holidays will be paid for hours worked at his normal straight time rate, plus eight (8) hours or ten (10) hours straight time for the holiday dependent on the hourly work schedule.

Article 10.00 – VACATIONS

10.01 Each employee shall be entitled to vacation as follows:

112 hours after one (1) year of service.

128 hours after three (3) years of continuous service.

144 hours after seven (7) years of continuous service.

168 hours after twelve (12) years of continuous service.

10.02 Employees are requested to make their vacation request as far in advance as reasonable. The Company will continue to respond to such requests as quickly as reasonably possible.

10.03 Employees transferring to the bargaining unit after the date of ratification of this Agreement shall retain their original date of hire with the Company for the purpose of accrual of vacation credits.

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

10.05 Vacation pay shall be computed at the employee's straight time hourly rate.

10.06 Employees must use vacation time in increments of no less than one (1) hour a day.

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

10.08 Any accrued vacation time not taken at the employee’s anniversary date, will be paid back to the employee

10.09 Employees will be paid out the balance of any vacation time earned upon termination of employment, or being laid off.

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

10.11 Vacation time will not be utilized during the calculation of overtime.

Article 11.00 - HOURS OF WORK/OVERTIME

11.01 The Company shall determine shift assignments based on business needs of the organization.

Shift starting times are as follows:

a. 1st Shift starting time will be between 0400 and 1200

b. 2nd Shift starting will be between 1300 and 2100

Note: Shift premiums shall be paid at a rate of five (5) percent of the employee’s regular base wage rate per hour for employees assigned to and working on 2nd shift.

The Company and Union recognize the principle that shift preference and work schedule (days off on the 4/10 schedule) preference consideration for available jobs should be given to the senior most qualified employee in each classification. It is recognized, however, that it may not be possible to operate a facility efficiently with only senior employees in a particular classification in any one shift or work schedule. Accordingly, efficiency permitting, senior qualified employees who have made written application for transfer to another shift or work schedule shall have preference to available openings. However, in the absence of written applications, the Company shall transfer the least senior qualified employees in a given classification to the available openings.

Forty (40) hours shall constitute a week’s work, to be performed in either eight (8) hour days or ten (10) hour days, Monday through Friday. The days off shall be consecutive.

The work day shall consist of either eight (8) hour days or ten (10) hour days, with no split shifts (for the purpose of this Article, the term, “shifts”, shall mean eight (8) or ten (10) hours’ work). The Employer shall post the hours of work, and days of the work schedule, and Site

Manager shall select their schedule by seniority. The work week shall be Monday through Friday

11.02 The working hours at the facility shall be properly posted on the bulletin board by the Site

Manager. The starting time for any shift shall not be changed without forty-eight (48) hours notice. Such notice shall be deemed to have been given to employees by posting it on the bulletin board. However, some situations may require a shorter notice dependent on the customer needs. In the event a shorter notice is required to support the mission, the times will be posted and briefed to all employees affected. Furthermore, it is understood that if employees have prearranged commitments and/or cannot be contacted they will not be forced to change their schedule until they have been given forty-eight (48) hours’ notice and shall not be disciplined.

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

11.04 The Company will permit all employees to take a fifteen (15) minute paid rest period the first half of their shift and a fifteen (15) minute paid rest period during the second half of their shift.

An employee who is required to work overtime will be allowed a fifteen (15) minute break for every two (2) hours of overtime worked in a day. This break will occur at the beginning of the overtime period if at least two (2) hours of overtime is anticipated.

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

11.05.a Lunch periods shall begin not earlier than four (4) hours after the start of each shift, and not later than six (6) hours after the start of each shift. If the employer requests the employee to work through such lunch period, the employee shall be paid for the time worked. An employee who is required to work overtime will be allowed a one-half (½) hour lunch break after four

(4) hours of overtime worked in a day.

11.06 Management reserves the right to use overtime to meet business objectives or production needs. Seniority by classification shall have preference for Overtime Assignments. The parties recognize two different overtime situations for the purpose of determining who to ask.

The types are: 1. Holdover Overtime and 2. Scheduled Overtime. Holdover Overtime is work in progress at the end of the shift wherein the person working the job will be allowed to complete the job that day. Scheduled Overtime is where an additional day is needed and overtime can be scheduled by seniority.

11.07 If the normal schedule includes four, ten-hour days, Overtime shall be paid for hours worked in excess of ten (10) hours per day or forty (40) hours per week at one and one-half (1½) times the employees straight time hourly rate as required by law. If the normal schedule includes five, eight-hour days, overtime shall be paid for hours worked in excess of eight (8) hours per day or forty (40) hours per week at one and one-half (1½) times the employees straight time hourly rate as required by law. Overtime shall be calculated in accordance with

California state law.

11.08 It is the duty of every employee who, for any reason, will be absent from work for a scheduled work shift or who expects to report for work late to notify their supervisor or Site

Manager of the reasons for such absence or tardiness within 30 minutes past the start of their shift, indicating when they expect to report for work.

If unable to talk with his supervisor or Site Manager, the employee shall leave a message on his Site Mangers voice mail or text the Site Manager stating the date, time of call, and reason for his absence/tardiness.

11.09 Holiday, vacation, and sick time shall not be considered time worked for the purpose of overtime calculation. Overtime pay shall not be pyramided, compounded or paid twice for the same hours worked.

11.10 The payroll work week begins at 12:01 am on Monday and ends at 12:00 midnight on Sunday.

11.11 The workday and the workweek may fluctuate according to the needs of the contract. Forty

(40) hours of work shall be the goal for a regular work week for a regular full time employee, however, hours of work in any one day or in any one week are not guaranteed for any employee.

The employer will not pay the employee for any non-work hours.

11.12. Overtime will only be directed and approved, in advance, by a member of PTi management or other Authorized Company Representative. Employees are not permitted to work Overtime unless they are directed by a member of PTi management or other Authorized Company

Representative.

11.13. The Employer at its sole discretion may make schedule accommodations.

Article 12.00 – GOVERNMENT SECURITY/RESPONSIBILITY

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

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

12.03 Each employee shall be responsible for the reasonable care of the customer and/or Company furnished property or material and will notify the Company of any sabotage, or willful damage to Company, customer or employee property or material.

Article 13.00 - NO STRIKE – NO LOCKOUT

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

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

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

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

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

c. Any employee or employees, individually or collectively, who shall cause, encourage, or take part in any violation of this Article, or any activities prohibited by this Article, may be immediately discharged, or subject to other disciplinary actions as the

Company may unilaterally consider appropriate. Any such disciplinary action shall be subject to the grievance procedure and arbitration procedure as defined herein. If it is determined under the established grievance/arbitration procedure that such an employee(s) did participate in such an action, in violation of this provision, the disciplinary action taken shall not be altered. If the decision under the grievance and arbitration procedure is that such an employee or employees did not participate in such acts, the redress shall be as determined by the grievance/arbitration procedure and limited to “making whole” the individual employee involved, if warranted.

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

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

Article 14.00 - BENEFIT PLANS

14.01 Effective on the effective date of these Agreement employees may choose from various health and welfare plans that are offered by the PTi and the cost of some plans will be off-set by a health and welfare benefit credit paid to the bargaining unit member employee. The health and welfare Benefit

Credit will be $4.25 for all employees, except those employees electing the family medical coverage

(3 or more individuals). These employees will receive a $5.25 health and welfare Benefit Credit for the duration of the time they are enrolled in family medical coverage. For all eligible employees, any excess health and welfare benefit credit above the cost of the employee elected benefits will be paid in wages to the employee. If an employee ops-out of the health & welfare benefit plan the employee will have $4.25 Health & Welfare benefit credit add to their wages rate. The increase of $0.25 to the Benefit

Credit will not begin until 1 October 2014.

14.02 Other benefits as outlined in the PTI Benefits Booklets to

Include:

1. Voluntary Dental

2. Voluntary Employee Assistance Program

3. Voluntary Life Insurance

4. Voluntary vision

Union proposes the company use the Union’s Short Term Disability Plan through Automotive

Industry’s current cost of $16.00 per employee, per month. This cost will be at the employee’s expense and not have any financial burden to the company. This deduction will not begin until 1

October 2014.

14.03 The Employer reserves the right to change carriers and benefit plans in its discretion with written notice to the Union, provided that the new plans and/or carriers provide at least substantially similar benefits on an overall basis.

Article 15.00 – RETIREMENT

15.01 The Company will provide all full-time employees covered by this Agreement with an IRS approved savings plan and in accordance with the Plan document. The Company will match a portion of the employee contributions of the employee gross wages per calendar year paid by the Company. The Company will match employee contributions 100 per cent up to the first 3 per cent and 50 per cent of the next 2 per cent. This equates to a maximum of a 4 per cent

Company match.

15.02 Employee will be 100% vested with all Company contributions.

15.03 The employee may also contribute up to the maximum amount allowed by law of their earnings into the 401 (k) and take advantage of the associated income tax deferment.

Article 16.00 - GRIEVANCE AND ARBITRATION PROCEDURE

16.01 The procedure provided herein for the settlement of grievances shall serve as a means for the settlement of all disputes that may arise out of the interpretation and application of expressed provisions of this Agreement.

16.02 Nothing in this Agreement shall prevent an employee, individually or through his Steward, from discussing any problem with his supervisor, or other Company official, but there shall be no formal grievance until it has been reduced to writing as provided in Step II below. The

Union agrees that neither the Steward nor other Union officials shall solicit grievances.

16.03 A formal grievance must be filed by an employee with or through his Steward, within five (5) work days after the occurrence which is being grieved, otherwise, it may not be further processed in the grievance procedure and will be considered forever waived. Claims for money shall not be valid, for a period of more than twenty (20) workdays prior to the date of filing such grievance, or the date on which the grievance arose, whichever is most recent. For the presentation and adjustment of formal grievances in this Agreement, the following procedure is established.

16.04 STEP I

An employee having a formal grievance shall present such grievance to his Steward. The

Steward will then request a meeting between the Site Supervisor, Employee and Steward to discuss the grievance and attempt to resolve the matter. A formal grievance may not be filed unless an attempt is first made to solve the matter verbally.

16.05 STEP II

If the matter is not resolved in Step I, a formal grievance may be filed in writing with the Site

Supervisor. Such written grievance shall state the specific issue in question and the Article of the Agreement in dispute and the remedy sought. The supervisor and the Steward shall endeavor to arrive at a satisfactory adjustment of the grievance. The supervisor shall render his decision, in writing, within ten (10) working days after receipt of the formal written grievance.

16.06 STEP III

If the decision of the supervisor in Step II is not satisfactory or is not received on a timely basis, the grievance may then be appealed, in writing, and sent to the Program Manager or his designee by certified mail. Such appeal is to be filed no later than ten (10) workdays after receipt of the decision rendered in Step II hereof, or the last day on which such decision was due, whichever is sooner, otherwise such decision shall be final and the employee shall have no further recourse under this Agreement and the grievance will be considered forever waived.

The Program Manager or designee shall provide a written decision within fifteen (15) work days after receipt of such appeal.

16.07 STEP IV

If a satisfactory resolution cannot be reached as provided under Step III or if an answer has not been received under Step III within fifteen (15) workdays, the Union Business Representative, or designee, may submit the grievance to the Human Resources Director by certified mail within ten (10) working days. If it is not submitted within said time period, the grievance will be considered forever waived.

A meeting/telephone conference shall be scheduled by the Human Resources Director or designee to discuss the grievance with the Union Business Representative, or designee, within ten (10) workdays following submission of the grievance by the Steward. The Human

Resource Manager shall submit a written answer to the Union Business Representative or designee within fifteen (15) workdays after the meeting/telephone conference is held.

16.08 STEP V

If no satisfactory adjustment or settlement is reached according to the procedure herein established, such grievance may then be appealed to arbitration. Such appeal to arbitration must be filed by the Union with the Company's Human Resources Director or her designee within fifteen (15) workdays after receipt of the Company's Step IV grievance answer. Failure to file such appeal within the stated time shall result in the Company's Step IV answer being accepted and the grievance shall be forever waived.

16.09 The parties shall have the authority to resolve the grievance or appeal it to arbitration, providing such appeal to arbitration is submitted to the Company by rejection of the answer as provided under Step IV within fifteen (15) work days following receipt of this answer.

a. The parties, within ten (10) work days of receipt of the notice of desire to arbitrate, will request the Federal Mediation and Conciliation Service (FMCS) to submit a list of seven (7) arbitrators. Such request to the FMCS shall be originated by the party requesting arbitration. Within ten (10) workdays of receipt of the list of arbitrators, the parties shall select one (1) of the seven (7) as an arbitrator. Failing to mutually agree to an arbitrator, each party shall alternately strike off a name until one (1) name remains on the list.

b. The written decision of the arbitrator shall be final and binding on all parties. The expense of the arbitrator shall be paid by the losing party. The Company and the Union shall each pay its own fees, costs and expenses incidental to the arbitration.

c. The arbitrator's powers shall be limited to the application and interpretation of this

Agreement and he shall have no authority to add to, subtract from, modify or amend in any way, the terms or conditions of this Agreement.

16.10 The Company and Union agree that the parties may, by mutual written agreement, waive any step(s) of the grievance and arbitration procedure and/or extend any of the time limits by mutual written agreement of the parties.

16.11 It is understood and agreed that an employee covered hereby may be represented by the

Steward, or another authorized Union official, at any and all conferences with the Company arising from the processing of any formal grievance, provided, however, that such representation shall be limited at any one time to no more than (1) Steward who is employed by the Company.

16.12 Nothing in this Agreement shall prevent supervisory or other Company officials from discussing any matter with an employee. However, if disciplinary action is to be taken, the employee shall have the right to Union representation.

16.13 For any grievance which proceeds beyond Step 2 of this Section, the grieving party, the

Union and company must share all known evidence bearing on the grievance. This includes, but is not limited to, a description of the subject matter giving rise to the grievance, relevant dates and all witnesses, along with the specific contract clause that has allegedly been violated, a full explanation of the Union's position, and alleged inconsistent past practice, if any. Failure to comply with this Section will serve as a bar to the introduction of the evidence by the grieving party or the Union at arbitration. Evidence that is discovered at a later date may be introduced at hearing only if Union provides the

Employer with written notice of its existence at least five (5) days prior to the arbitration.

Nick LaPorta Highlight

Article 17.00 - DISCHARGE AND DISCIPLINE

17.01 It is understood and agreed the Company may only discipline or discharge any employee covered hereby for just cause. Should an employee feel such action improper and in violation of the employee’s rights under this Agreement, the employee shall be extended all the rights and privileges accorded by the Grievance and Arbitration procedures contained herein, provided the employee has completed the probationary period defined in the seniority Article of this Agreement.

17.02 A letter of warning or reprimand shall no longer have any future effect after a period of one year and, a suspension shall no longer have any effect after a period of two (2) years.

17.03 It is understood and agreed that any disciplinary action issued to an employee by the Company shall be issued within twenty (20) calendar days following knowledge by the Company of…