Collective Bargaining Agreement

EXHIBIT 10.13


COLLECTIVE BARGAINING AGREEMENT


between


ALLIED TECHNOLOGY GROUP, INC.


and


INTERNATIONAL UNION OF OPERATING ENGINEERS #280


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TABLE OF CONTENTS


PAGE Article 1 - Preamble 4 Article 2 - Union Recognition 4 Article 3 - Union Security 4 Article 4 - Payroll Deduction 5 Article 5 - Business Representative Access 5 Article 6 - Bulletin Board 5 Article 7 - Non-Discrimination 6 Article 8 - Management Rights 6 Article 9 - Due Process in Discipline 6 Article 10 - Seniority/Reduction in Work Force 7 Article 11 - Jury Duty 8 Article 12 - Funeral Leave 8 Article 13 - Hours of Work and Overtime 8 Article 14 - Vacation 10 Article 15 - Holidays 11 Article 16 - Compensation for Travel Time 12 Article 17 - Tuition Assistance/Commercial Driver's License (CDL)
Miscellaneous Facilities 12 Article 18 - Sick Leave 13 Article 19 - Health and Welfare Programs 14 Article 20 - Pensions 14 Article 21 - Performance of Duty, Strikes and lockouts 14


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Article 22 - Grievance Procedure 15 Article 23 - Savings Clause 16 Article 24 - Entire Agreement 16 Article 25 - Probation 17 Article 26 - Substance Abuse 17 Article 27 - Health and Safety 17 Article 28 - Appendices Incorporated into Agreement 18 Article 29 - Term of Agreement 18 Article 30 - Subcontracting 18 Signature Page 19 Appendix A 20


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Article 1 Preamble
This mutual Agreement is entered into by the International Union of Operating Engineers Local #280 (hereinafter referred to as the Union) and Allied Technology Group, Inc., Richland, WA (hereinafter referred to as the Employer). The purpose of this Agreement is the promotion of harmonious relations between the Company and the Union; the establishment of equitable and peaceful procedures for the resolution of differences; and the establishment of rates of pay, hours of work, and other terms and conditions of employment.


Article 2 Union Recognition


The Employer recognizes the Union as the sole and exclusive bargaining agent for all employees employed at its Richland, Washington facility in the job classifications set forth in Appendix A of this Agreement. Excluded are all Office Clerical Employees, Managerial Employees, Confidential Employees, Guards, and Supervisors as defined by the National Labor Relations Act. Unit certification is granted to the Union per National Labor Relations Board certification case 19-CR-l3183. If the Company establishes a new operation in Richland, Washington, the Company and the Union agree to discuss whether or not the employees in the operation should be included in the bargaining unit. Absent agreement on this subject; either party may petition the NRLB to determine whether or not the employees should be included in the bargaining unit.


Article 3 Union Security


Section 1. All regular full-time employees hired after the effective date of this Agreement shall become members of the Union within thirty (30) days following the signing of this Agreement and shall remain members in good standing during the life of this Agreement as a condition of continued employment.


Section 2. The Employer shall discharge non-complying employees upon receipt of a written request to the Plant Manager from the Union.


Section 3. The Union agrees to defend at its own expense and hold the Employer harmless in the administration of Article 3 and Article 4.


Section 4. The Employer shall notify the Union of any changes to the bargaining unit.


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Article 4 Payroll Deduction


The Employer agrees to deduct from the paycheck of each employee covered by this Agreement, who has so authorized it by signed notice submitted to the Employer, the initiation fee and regular monthly dues. The Employer shall transmit such fees to the Union once each month on behalf of the employees involved.


The Union shall provide at least thirty (30) calendar days written notice in advance of a change in either initiation fees or dues.


Employees who authorize deduction of dues may cancel this authorization once annually on the anniversary date of contract or at the expiration of the Agreement upon thirty (30) days written notice to the Employer and the Union.


Article 5 Business Representative Access


The Employer agrees to allow reasonable access to Company facilities for business representatives who have been properly authorized by the Union. The Union shall notify the Plant Manager in writing of the name(s) of such representatives. Such access shall be permitted in a manner as not to in any way interfere with the work of employees of the functions of the Company. This Article shall apply within the constraints of federal or state regulations and statutes.


Such business representatives shall in each case obtain prior permission from the Plant Manager or his designated representative of their presence on the property prior to contacting employees. Such access shall not be unreasonably denied. Nothing in this Article shall be construed as entitling the business representative to talk to the employees during their work hours. Lunch and break periods are not considered work time.


Article 6 Bulletin Board


A bulletin board found to be acceptable and in compliance with the needs or limited use by the Union shall be provided by the Employer. This bulletin board shall be used, maintained, and controlled exclusively by the Union members. It is understood and agreed to that no material shall be posted which is obscene, defamatory, or libelous.


The location of this bulletin board shall be out of public view and in the lunch room.


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Article 7 Non-Discrimination


It is mutually agreed between the Employer and the Union that there shall be no discrimination against any employee because of race, color, creed, national origin, sex, age, disability or Vietnam-era status. Military leaves shall be administered in conformance with Title 38 of the Revised Codes of Washington.


Normally, discrimination issues that arise in the work place will be handled by the proper agency. However, with an appropriate waiver, an employee may elect to use the grievance and arbitration procedure to finally resolve the issue.


Article 8 Management Rights


Except as otherwise specifically stated elsewhere in this Agreement, the Employer has the sole right and discretion to operate and run its business as it sees fit. By way of example, and not limitation, the Employer shall have the exclusive right and power to set work schedules; determine the products to be manufactured; determine production levels, quality and quantity standards, sales methods, prices, types of equipment, tools and machinery to be used; determine when employees should be promoted or demoted; determine when layoffs tire necessary; subcontract part or all of its operations or work; determine the number of employees to be employed, including the number of employees to be assigned to any particular machine or shift; fill openings; establish work rules; direct and supervise all of its employees; evaluate the performance and capabilities of its employees; assign employees to various machines, jobs, and shifts; determine when overtime must be worked (nothing in this Agreement shall be read to preclude supervisors or management employees from performing bargaining unit work when reasonably necessary and when such work does not permanently displace regular full-time employees); determine when temporary employees must be utilized, providing that temporary employees will not be utilized at a time that regular employees are on layoff (aside from layoffs due to medical, disability, or voluntary absences from work); determine the skills, abilities, and competency of its employees; and determine whether or not to terminate or shut down its operations in Richland, Washington.


Article 9 Due Process in Discipline


The Employer may discipline employees for just cause. In any meeting between representatives of the Employer and an employee in which disciplinary action is to be taken, the employee shall be entitled to have present, the Union's business representative or steward. Any disciplinary action involving a written reprimand, suspension, demotion, or discharge shall be subject to the grievance and arbitration procedure set forth in this Agreement. Copies of all documented disciplinary action taken against an employee shall be provided to the Union upon employee request.


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Article 10 Seniority / Reduction in Force


Section 1. The decision to reduce the work force shall be the exclusive authority of the Employer.


Section 2. Layoffs will occur according to seniority within the applicable job classification to which individuals are assigned only if skills, performance, and abilities are equal. The Employer will have sole discretion to determine skills, performance, and abilities of its employees so long as such determinations are not arbitrary or capricious.


Section 3. Employees laid off in accordance with the provisions of this Article will be eligible for rehire in the inverse order or layoff for a period of eighteen (18) months following layoff.


Section 4. Except in cases or emergencies, power failure, or Acts of God, written notice shall be provided to each employee scheduled for layoff at least ten (10) work days prior to layoff.


Section 5. In the event an employee is eligible for recall as in Section 3, above, the Employer will notify the employee by certified mail, return receipt requested, at the last address provided in writing by the employee. The employee must accept the recall within two weeks of notification. Failure either to respond or to accept the recall releases the Employer from all further obligation to the employee. The Employer may use temporary employee(s) until such time as the employee accepts or rejects the recall.


Section 6. A seniority roster will be provided annually to the Union.


Section 7. The parties recognize the necessity for the Company to employ temporary employees to augment the regular full-time work force during periods of increased production. Temporary employees are not covered by this Agreement. Temporary employees may be employed for up to (180) days in a twelve (12) month period. If a temporary employee is employed for more than 180 days in a 12 month period without mutual agreement by the parties, such employee shall become a regular full-time employee of the Company.


Section 8. As regular full-time vacancies occur, regular full-time employees shall be given first consideration to fill vacancies that constitute a promotion within the bargaining unit. Following first consideration of regular full-time personnel, should a vacancy remain, next consideration to fill such a vacancy will be given to temporary employees. Upon acceptance to full-time positions and following successful completion of the ninety (90) day probationary period, temporary employees shall be credited seniority from the first day of their most recent continuous employment as a temporary employee.


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Article 11 Jury Duty


The Employer will giant employees time off for mandatory jury duty. Employees who have successfully completed their probationary period will receive full pay less witness fees received for up to 40 hours. Employer compensation for service as a subpoenaed witness (not Employer related) or on jury duty only applies to absence from regularly scheduled work hours.


For service required by the Employer as a witness, Employer compensation outside of regularly scheduled work hours is payable at the overtime rate if such service is in excess of the normal daily or normal weekly working hours' schedules.


Employees who are involved in suits against the Employer as plaintiffs or c ...